The Political Environment 2

8/8/2019 The Political Environment 2

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NONDEPARTMENTAL PUBLIC BODY1

In the United Kingdom, a non-departmental public body (NDPB) or QUANGO is aclassification applied by the Cabinet Office, Treasury, Scottish Government and NorthernIreland Executive to certain types of public bodies. They are not an integral part of a

government department and carry out their work at arm's length from Ministers, althoughMinisters are ultimately responsible toParliament for the activities of bodies sponsoredby their department.

NDPB differ from executive agencies as they are not created to carry out ministerial orders orpolicy, instead they are more or less self-determining and enjoy greater independence. They arealso not directly part of government like a non-ministerial government department being at aremove from both ministers and any elected assembly or parliament. Typically an NDPB wouldbe established under statute and be accountable to Parliament rather than to Her Majesty'sGovernment. This arrangement allows more financial independence since the government isobliged to provide funding to meet statutory obligations.

NDPBs are commonly referred to as quangos2. However, this term originally referred to bodiesthat are, at least ostensibly, non-government organisations, but nonetheless performgovernmental functions.

The term includes the four types of NDPB (executive, advisory, tribunal and IndependentMonitoring Boards) but excludes public corporations, National Health Service (NHS) bodies andpublic broadcasting authorities.

Types of body

There are four main types of body.

Advisory NDPBs

These bodies consist of boards which advise ministers on particular policy areas. They are oftensupported by a small secretariat from the parent department and any expenditure is paid for bythat department.

Executive NDPBs

These bodies usually deliver a particular public service and are overseen by a board rather thanministers. Appointments are made by ministers following the Code of Practice of the

Commissioner for Public Appointments. They employ their own staff and are allocated their ownbudgets.

1en.wikipedia.org/wiki/Non-departmental_public_body

2QUANGOsare quasi-autonomous non-governmental organizations, such as theInternational Organization for

Standardization(ISO). (The ISO is actually not purely an NGO, since its membership is by nation, and each nation is

represented by what the ISO Council determines to be the 'most broadly representative' standardization body of a

nation. That body might itself be a nongovernmental organization; for example, the United States is represented in

ISO by theAmerican National Standards Institute, which is independent of the federal
http://en.wikipedia.org/wiki/Cabinet_Officehttp://en.wikipedia.org/wiki/HM_Treasuryhttp://en.wikipedia.org/wiki/Scottish_public_bodieshttp://en.wikipedia.org/wiki/Northern_Ireland_Executivehttp://en.wikipedia.org/wiki/Northern_Ireland_Executivehttp://en.wikipedia.org/wiki/Parliament_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Executive_Agencyhttp://en.wikipedia.org/wiki/Non-ministerial_government_departmenthttp://en.wikipedia.org/wiki/Statutehttp://en.wikipedia.org/wiki/Parliament_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Her_Majesty%27s_Governmenthttp://en.wikipedia.org/wiki/Her_Majesty%27s_Governmenthttp://en.wikipedia.org/wiki/Non-government_organisationshttp://en.wikipedia.org/wiki/National_Health_Servicehttp://en.wikipedia.org/w/index.php?title=Commissioner_for_Public_Appointments&action=edit&redlink=1http://en.wikipedia.org/wiki/QUANGOhttp://en.wikipedia.org/wiki/QUANGOhttp://en.wikipedia.org/wiki/QUANGOhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/American_National_Standards_Institutehttp://en.wikipedia.org/wiki/American_National_Standards_Institutehttp://en.wikipedia.org/wiki/American_National_Standards_Institutehttp://en.wikipedia.org/wiki/American_National_Standards_Institutehttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/International_Organization_for_Standardizationhttp://en.wikipedia.org/wiki/QUANGOhttp://en.wikipedia.org/w/index.php?title=Commissioner_for_Public_Appointments&action=edit&redlink=1http://en.wikipedia.org/wiki/National_Health_Servicehttp://en.wikipedia.org/wiki/Non-government_organisationshttp://en.wikipedia.org/wiki/Her_Majesty%27s_Governmenthttp://en.wikipedia.org/wiki/Her_Majesty%27s_Governmenthttp://en.wikipedia.org/wiki/Parliament_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Statutehttp://en.wikipedia.org/wiki/Non-ministerial_government_departmenthttp://en.wikipedia.org/wiki/Executive_Agencyhttp://en.wikipedia.org/wiki/Parliament_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Northern_Ireland_Executivehttp://en.wikipedia.org/wiki/Northern_Ireland_Executivehttp://en.wikipedia.org/wiki/Scottish_public_bodieshttp://en.wikipedia.org/wiki/HM_Treasuryhttp://en.wikipedia.org/wiki/Cabinet_Office


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Tribunal NDPBs

(Tribunals in the United Kingdom)

These bodies have jurisdiction in an area of the law. They are co-ordinated by the Tribunals

Service, an executive agency of the Ministry of Justice, and supervised by the AdministrativeJustice and Tribunals Council, itself a NDPB sponsored by the Ministry of Justice.

Independent monitoring boards

These bodies were formerly known as "boards of visitors" and are responsible for the state ofprisons, their administration and the treatment of prisoners. The Home Office is responsible fortheir costs, and has to note all expenses.

In Philippine Government, there are several government agencies/offices which their function

and purposes of existence are vital in the delivery of government services. They are not linedepartment but their mandate is to deliver services to the public. Their existence are created

either thru executive order or as the laws requires.

National Statistics Office (NSO) - http://www.census.gov.ph/The primary statistical arm of the Philippine government. Agency information, statistical figures, census

services, publications, and technical papers.

National Statistical Coordination Board (NSCB) - http://www.nscb.gov.phPhilippines' policy-making and coordinating body on statistical matters. Source of official Philippine social

and economic statistics.

Intellectual Property Office of the Philippines - http://www.ipophil.gov.ph/

Responsible for ensuring that intellectual property (IP) is used as an effective tool for national

development. With organizational profile, downloadable forms, IP laws, trademark search, IP

enforcement, IP adjudication, and technology transfer resources.

National Computer Center (NCC) - http://www.ncc.gov.phMandated to develop the Master Plan for Electronic Data Processing in the government that includes a

national program for computer education and training, information processing and national information

systems development. Features organizational profile, developed systems and websites, plans, policies

and services, list of ICT Associations, publications, training schedules, reports, and forum.

Professional Regulation Commission (PRC) - http://www.prc.gov.ph/Agency responsible for regulating and supervising the practice of professional individuals according to

knowledge base and practice. Full details available, including exam applications, exam results, and

registration / renewal of professional licenses.
http://en.wikipedia.org/wiki/Tribunals_in_the_United_Kingdomhttp://en.wikipedia.org/wiki/Tribunals_in_the_United_Kingdomhttp://en.wikipedia.org/wiki/Tribunals_in_the_United_Kingdomhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Tribunals_Servicehttp://en.wikipedia.org/wiki/Tribunals_Servicehttp://en.wikipedia.org/wiki/Executive_agencyhttp://en.wikipedia.org/wiki/Ministry_of_Justicehttp://en.wikipedia.org/wiki/Administrative_Justice_and_Tribunals_Councilhttp://en.wikipedia.org/wiki/Administrative_Justice_and_Tribunals_Councilhttp://en.wikipedia.org/wiki/Home_Officehttp://www.census.gov.ph/http://e/MBA/Business%20Environment/National%20Statistical%20Coordination%20Board%20(NSCB)http://www.ipophil.gov.ph/http://www.ncc.gov.ph/http://www.prc.gov.ph/http://www.prc.gov.ph/http://www.ncc.gov.ph/http://www.ipophil.gov.ph/http://e/MBA/Business%20Environment/National%20Statistical%20Coordination%20Board%20(NSCB)http://www.census.gov.ph/http://en.wikipedia.org/wiki/Home_Officehttp://en.wikipedia.org/wiki/Administrative_Justice_and_Tribunals_Councilhttp://en.wikipedia.org/wiki/Administrative_Justice_and_Tribunals_Councilhttp://en.wikipedia.org/wiki/Ministry_of_Justicehttp://en.wikipedia.org/wiki/Executive_agencyhttp://en.wikipedia.org/wiki/Tribunals_Servicehttp://en.wikipedia.org/wiki/Tribunals_Servicehttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Tribunals_in_the_United_Kingdom


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Philippine Institute for Development Studies (PIDS) - http://www.pids.gov.ph/A nonstock, nonprofit government research institution engaged in long-term, policy-oriented research.

Includes organizational profile, research programs and publications, seminar schedules, and socio-

economic search portal.

Commission on Information and Communications Technology (CICT) - http://www.cict.gov.ph/The primary agency tasked to promote, develop, and regulate integrated and strategic ICT systems and

reliable and cost-efficient communication facilities and services. Includes agency profile, news and

activities, and legal mandates.

Civil Service Commission (CSC) - http://www.csc.gov.ph/Mandated to promote morale, efficiency, integrity, responsiveness, progressiveness, and courtesy in the

Civil Service. Includes agency information, news, issuances, examination results, programs and projects,

and downloadable forms.

Commission on Audit (COA) - http://www.coa.gov.phThe Supreme State Audit Institution of the Philippines, tasked with the audit of all government revenues,

resources and other expenditures. Includes agency information, issuances (circulars, memorandas, andresolutions), annual financial reports, policy decisions, and audit alerts for reporting allegations of fraud,

waste, abuse, or mismanagement of funds.

Securities and Exchange Commission (SEC) - http://www.sec.gov.phResponsible for securities laws and regulating the securities industry. With agency profile, investor

information, archives and publications, downloadable forms, procedural requirements, and Financial

Statement reports.

Commission on Population - http://www.popcom.gov.phThe advocating arm of the Philippine government's Population Program. Includes agency information,

news, programs and projects, resource materials for population management programs, and

demographics.

National Telecommunications Commission (NTC) Web Portal - http://portal.ntc.gov.ph/wps/portalRegulatory agency providing an environment that ensures reliable, affordable and viable infrastructure

and services in information and communications technology (ICT) accessible to all. With news, laws and

regulations, procedures for applications of franchises and accreditation, verification and accreditation list

of personnel, operators, and suppliers, and complaint form for consumers and the general public.

National Printing Office (NPO) - http://www.ops.gov.ph/npo/Mandated to have exclusive printing jurisdiction over the printing of accountable forms, ballots, and other

public documents. With agency profile, programs and projects, and directory.

National Anti-Poverty Commission (NAPC)- http://www.napc.gov.ph/

The implementing arm for the Social Reform and Poverty Alleviation Act (RA 8425) institutionalizing the

processes of the Social Reform Agenda. Features organizational profile, news, programs and projects,

photo gallery, and accreditation procedures for basic sector organizations.
http://www.pids.gov.ph/http://www.cict.gov.ph/http://www.csc.gov.ph/http://www.coa.gov.ph/http://www.sec.gov.ph/http://www.popcom.gov.ph/http://portal.ntc.gov.ph/wps/portalhttp://www.ops.gov.ph/npo/http://www.napc.gov.ph/http://www.napc.gov.ph/http://www.napc.gov.ph/http://www.ops.gov.ph/npo/http://portal.ntc.gov.ph/wps/portalhttp://www.popcom.gov.ph/http://www.sec.gov.ph/http://www.coa.gov.ph/http://www.csc.gov.ph/http://www.cict.gov.ph/http://www.pids.gov.ph/


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National Youth Commission (NYC)- http://www.youth.net.ph

A proactive authority in youth development. Includes agency profile, policies and programs, articles,

photo gallery, downloadable presentations, Sanggunian Kabataan (SK) By-Laws, and application forms

Revenue Integrity Protection Service- http://www.rips.gov.ph/

The anti-corruption arm of the Department of Finance, mandated to monitor and report corruption in allrevenue generating departments and agencies of the government. Includes principles, mandates,

resources and contact information.

National Council on Disability Affairs (NCDA)- http://www.ncda.gov.ph

The national government agency mandated to formulate policies and coordinate the activities of all

agencies, whether public or private, concerning disability issues and concerns. With agency profile,

downloadable forms, publications, and disability-related laws.

National Commission on Indigenous Peoples (NCIP)- http://www.ncip.gov.ph/

The primary government agency that formulates and implements policies, plans and programs for

indigenous persons and the recognition of their ancestral domains and their rights thereto. With agencyprofile, mandate, resources on indigenous persons, ancestral domains, and projects, and inquiry form.

National Book Development Board- http://www.nbdb.gov.ph

Tasked to implement the national book policy and development of the Philippine book publishing industry.

Features agency profile, news, publications, downloadable forms, book club, forum, gallery, and blogs.

Civil Aeronautics Board (CAB)- http://www.cab.gov.ph/

Tasked to regulate, promote and develop the Philippine air transportation system. With organizational

information, mandates, board resolutions, and downloadable application forms.

Office on Muslim Affairs- http://www.oma.gov.phThe main government institution tasked to uplift and improve the conditions of the Muslim Filipinos, and toaddress the various issues facing Muslim Communities. With organizational structure, programs, projects,

and activities, community history, and offices directory.

Privatization and Management Office (PMO)- http://www.pmo.gov.ph/

Evaluates and reviews issues involved in the prospective privatization or disposal of government

corporation assets. Includes legal mandate, investment opportunities, information on assets for

disposition, and procedural flow of transactions.

Presidential Anti-Graft Commission (PAGC)- http://www.pagc.gov.ph/

Mandated to conduct the task of investigating and hearing administrative cases and complaints against

erring presidential appointees as well as assist the President in the campaign against graft and

corruption. With agency information, programs and projects, news archive, publications, and issuances.

Comprehensive Tax Reform Program- http://www.oocities.com/ifuntok/ctrp/

Reforms aimed to establish an economically efficient tax system. Details, rules and FAQs available.
http://www.youth.net.ph/http://www.youth.net.ph/http://www.youth.net.ph/http://www.rips.gov.ph/http://www.rips.gov.ph/http://www.ncda.gov.ph/http://www.ncda.gov.ph/http://www.ncip.gov.ph/http://www.ncip.gov.ph/http://www.nbdb.gov.ph/http://www.nbdb.gov.ph/http://www.cab.gov.ph/http://www.cab.gov.ph/http://www.oma.gov.ph/http://www.oma.gov.ph/http://www.pmo.gov.ph/http://www.pmo.gov.ph/http://www.pagc.gov.ph/http://www.pagc.gov.ph/http://www.oocities.com/ifuntok/ctrp/http://www.oocities.com/ifuntok/ctrp/http://www.oocities.com/ifuntok/ctrp/http://www.pagc.gov.ph/http://www.pmo.gov.ph/http://www.oma.gov.ph/http://www.cab.gov.ph/http://www.nbdb.gov.ph/http://www.ncip.gov.ph/http://www.ncda.gov.ph/http://www.rips.gov.ph/http://www.youth.net.ph/


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European Union3

The European Union (EU) is an economic and political union of 27 member states which arelocated primarily in Europe. Committed to regional integration, the EU was established by theTreaty of Maastricht in 1993 upon the foundations of the European Communities. With over

500 million citizens, the EU combined generated an estimated 28% share (US$ 16.5 trillion) ofthe nominal and about 21% (US$14.8 trillion) of the PPP gross world product in 2009. The EUhas developed a single market through a standardised system of laws which apply in allmember states, and ensures the free movement of people, goods, services, and capital,including the abolition of passport controls by the Schengen Agreement between 22 EU states.It maintains common policies on trade, agriculture, fisheries and regional development. Sixteenmember states have adopted a common currency, the euro, constituting the eurozone.

As a legal personality the EU is able to conclude treaties with countries and enacts legislation in justice and home affairs. It has devised the Common Foreign and Security Policy, thusdeveloping a limited role in European defense and foreign policy. Permanent diplomaticmissions of the EU are established around the world and representation at the United Nations,

WTO, G8 and G-20 is maintained.

The EU operates through a hybrid system of supranationalism and inter-governmentalism. Incertain areas, decisions are taken by independent supranational institutions, while in others,they are made through negotiation between member states. Important institutions of the EUinclude the European Commission, the Council of the European Union, the European Council,the Court of Justice of the European Union, and the European Central Bank. The EuropeanParliament is elected every five years by EU citizens .

The EU traces its origins from the European Coal and Steel Community formed among sixcountries in 1951 and the Treaty of Rome formed in 1957 by the same states. Since then, it hasgrown in size through enlargement, and in power through the addition of policy areas to itsremit. The last amendment to the constitutional basis of the EU came into force in 2009 and wasthe Lisbon Treaty, by virtue of which the Charter of Fundamental Rights of the European Unionwas elevated to legally binding status.

History of the European Union

After World War II, moves towards European integration were seen by many as an escape fromthe extreme forms of nationalism which had devastated the continent. One such attempt to uniteEuropeans was the European Coal and Steel Community which, while having the modest aim ofcentralised control of the previously national coal and steel industries of its member states, wasdeclared to be "a first step in the federation of Europe". The originators and supporters of the

Community include Jean Monnet, Robert Schuman, Paul Henri Spaak, and Alcide de Gasperi.The founding members of the Community were Belgium, France, Italy, Luxembourg, theNetherlands, and West Germany.

In 1957, these six countries signed the Treaties of Rome, which extended the earliercooperation within the European Coal and Steel Community and created the EuropeanEconomic Community, (EEC) establishing a customs union and the European Atomic Energy

3en.wikipedia.org/wiki/European_Union
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pedia.org/wiki/Inner_Sixhttp://en.wikipedia.org/wiki/European_Coal_and_Steel_Communityhttp://en.wikipedia.org/wiki/Citizenship_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/European_Parliamenthttp://en.wikipedia.org/wiki/European_Central_Bankhttp://en.wikipedia.org/wiki/Court_of_Justice_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Councilhttp://en.wikipedia.org/wiki/Council_of_the_European_Unionhttp://en.wikipedia.org/wiki/European_Commissionhttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/Intergovernmentalismhttp://en.wikipedia.org/wiki/Supranationalismhttp://en.wikipedia.org/wiki/G-20_major_economieshttp://en.wikipedia.org/wiki/European_Union_and_the_G8http://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/European_Union_and_the_United_Nationshttp://en.wikipedia.org/wiki/List_of_diplomatic_missions_of_the_European_Unionhttp://en.wikipedia.org/wiki/List_of_diplomatic_missions_of_the_European_Unionhttp://en.wikipedia.org/wiki/Foreign_relations_of_the_European_Unionhttp://en.wikipedia.org/wiki/Military_of_the_European_Unionhttp://en.wikipedia.org/wiki/Common_Foreign_and_Security_Policyhttp://en.wikipedia.org/wiki/Interior_ministryhttp://en.wikipedia.org/wiki/Treatyhttp://en.wikipedia.org/wiki/Legal_personalityhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Regional_policy_of_the_European_Unionhttp://en.wikipedia.org/wiki/Common_Fisheries_Policyhttp://en.wikipedia.org/wiki/Common_Agricultural_Policyhttp://en.wikipedia.org/wiki/Schengen_areahttp://en.wikipedia.org/wiki/Schengen_Agreementhttp://en.wikipedia.org/wiki/Four_Freedoms_(European_Union)http://en.wikipedia.org/wiki/Single_markethttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/European_Communitieshttp://c/Users/Marlon%20D.%20Jaranilla/MBA/RMTU%202010%20-%202011/Business%20Enviroment/The%20Political%20Environment/The%20Maastricht%20Treaty.pdfhttp://en.wikipedia.org/wiki/European_integrationhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Member_State_of_the_European_Unionhttp://en.wikipedia.org/wiki/Member_State_of_the_European_Unionhttp://en.wikipedia.org/wiki/Economic_and_monetary_union


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Community (Euratom) for cooperation in developing nuclear energy. In 1967 the Merger Treatycreated a single set of institutions for the three communities, which were collectively referred toas theEuropean Communities(EC), although commonly just as the European Community.

In 1973, the Communities enlarged to include Denmark, Ireland, and the United Kingdom.Norway had negotiated to join at the same time but Norwegian voters rejected membership in a

referendum and so Norway remained outside. In 1979, the first direct, democratic elections tothe European Parliament were held.

Greecejoined in 1981, and Spain and Portugal in 1986. In 1985, the Schengen Agreement ledthe way toward the creation of open borders without passport controls between most memberstates and some non-member states. In 1986, the European flag began to be used by theCommunity and the Single European Act was signed.

The Iron Curtain's fall enabled eastward enlargement.(Berlin Wall)

In 1990, after the fall of the Iron Curtain, the former East Germany became part of theCommunity as part of a newly united Germany. With enlargement towards Eastern and CentralEurope on the agenda, the Copenhagen criteria for candidate members to join the EuropeanUnion were agreed.

The European Union was formally established when the Maastricht Treaty came into force on 1November 1993, and in 1995 Austria, Sweden, and Finlandjoined the newly established EU. In2002, euro notes and coins replaced national currencies in 12 of the member states. Since then,the eurozone has increased to encompass sixteen countries. In 2004, the EU saw its biggestenlargement to date when Malta, Cyprus, Slovenia, Estonia, Latvia, Lithuania, Poland, theCzech Republic, Slovak Republic, and Hungaryjoined the Union.

On 1 January 2007, Romania and Bulgaria became the EU's newest members. In the sameyear Slovenia adopted the euro, followed in 2008 by Cyprus and Malta, and by Slovakia in2009. In June 2009, the 2009 Parliament elections were held leading to a renewal of Barroso's

Commission Presidency, and in July 2009 Iceland formally applied for EU membership. On 1December 2009, the Lisbon Treaty entered into force after a protracted and controversial birth.This reformed many aspects of the EU but in particular created a permanent President of theEuropean Council, the first of which is Herman van Rompuy, and a strengthened HighRepresentative, Catherine Ashton.
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rwayhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Republic_of_Irelandhttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/European_Communitieshttp://en.wikipedia.org/wiki/Merger_Treatyhttp://en.wikipedia.org/wiki/Nuclear_power


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Member states

The European Union is composed of 27 sovereign Member States: Austria, Belgium, Bulgaria,Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary,Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal,

Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.

The Union's membership has grown from the original six founding statesBelgium, France,(then-West) Germany, Italy, Luxembourg and the Netherlandsto the present day 27 bysuccessive enlargements as countries acceded to the treaties and by doing so, pooled theirsovereignty in exchange for representation in the institutions.

To join the EU a country must meet theCopenhagen criteria, defined at the 1993 CopenhagenEuropean Council. These require a stable democracy that respects human rights and the rule oflaw; a functioning market economy capable of competition within the EU; and the acceptance ofthe obligations of membership, including EU law. Evaluation of a country's fulfilment of thecriteria is the responsibility of the European Council.

No member state has ever left the Union, although Greenland (an autonomous province ofDenmark) withdrew in 1985. The Lisbon Treaty now provides a clause dealing with how amember leaves the EU.

There are four official candidate countries, Croatia, Iceland, Macedonia, and Turkey.Albania,Bosnia and Herzegovina, Montenegro, and Serbia are officially recognised as potentialcandidates. Kosovo is also listed as a potential candidate but the European Commission doesnot list it as an independent country because not all member states recognise it as anindependent country separate from Serbia.

Four Western European countries that have chosen not to join the EU have partly committed to

the EU's economy and regulations: Iceland, which is a candidate country, Liechtenstein andNorway, which are a part of the single market through the European Economic Area, andSwitzerland, which has similar ties through bilateral treaties.The relationships of the Europeanmicrostates, Andorra, Monaco, San Marino and the Vatican include the use of the euro andother areas of co-operation.

Governance

The institutions of the EU operate solely within those competencies conferred on it upon thetreaties and according to the principle of subsidiarity (which dictates that action by the EUshould only be taken where an objective cannot be sufficiently achieved by the member states

alone). Law made by the EU institutions is passed in a variety of forms, primarily that whichcomes into direct force and that which must be passed in a refined form by national parliaments.

Competencies in scrutinising and amending legislation are divided equally, with someexceptions, between the European Parliament and the Council of the European Union whileexecutive tasks are carried out by the European Commission and in a limited capacity by theEuropean Council (not to be confused with the aforementioned Council of the European Union).The interpretation and the application of EU law and the treaties are ensured by the Court of
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eria.docxhttp://en.wikipedia.org/wiki/Institutions_of_the_European_Unionhttp://en.wikipedia.org/wiki/Treaties_of_the_European_Unionhttp://en.wikipedia.org/wiki/West_Germanyhttp://en.wikipedia.org/wiki/Inner_Sixhttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Slovakiahttp://en.wikipedia.org/wiki/Romaniahttp://en.wikipedia.org/wiki/Kingdom_of_the_Netherlandshttp://en.wikipedia.org/wiki/Maltahttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Lithuaniahttp://en.wikipedia.org/wiki/Latviahttp://en.wikipedia.org/wiki/Estoniahttp://en.wikipedia.org/wiki/Kingdom_of_Denmarkhttp://en.wikipedia.org/wiki/Cyprushttp://en.wikipedia.org/wiki/Bulgariahttp://en.wikipedia.org/wiki/Sovereign_state


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Justice of the European Union. There are also a number of ancillary bodies which advise the EUor operate in a specific area.

European Council

President of the European Council, Herman Van Rompuy

The European Council gives direction to the EU, and convenes at least four times a year. Itcomprises the President of the European Council, the President of the Commission and onerepresentative per member state; either its head of state or head of government. The EuropeanCouncil has been described by some as the Union's "supreme political authority". It is activelyinvolved in the negotiation of the treaty changes and defines the EU's policy agenda andstrategies.

The European Council uses its leadership role to sort out disputes between member states andthe institutions, and to resolve political crises and disagreements over controversial issues andpolicies. It acts externally as a "collective Head of State" and ratifies important documents (e.g.international agreements and treaties).

Commission

The European Council should not be mistaken for the Council of Europe, an internationalorganisation independent from the EU.

Commission President Jos Manuel Barroso

The European Commission acts as the EU's executive arm and is responsible for initiatinglegislation and the day-to-day running of the EU. The commission is also seen as the motor ofEuropean integration. The Commission operates as a cabinet government, with 27Commissioners for different areas of policy, one from each member state, though
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Commissioners are bound to represent the interests of the EU as a whole rather than theirhome state.

One of the 27 is the Commission President (currently Jos Manuel Duro Barroso) appointed bythe European Council. The other 26 Commissioners are subsequently appointed by the Councilof the European Union in agreement with the nominated President, and then the 27

Commissioners as a single body are subject to a vote of approval by the European Parliament.After the President, the most prominent Commissioner is the High Representative of the Unionfor Foreign Affairs and Security Policy who isex-officioVice President of the Commission.

Parliament

The seat of the European Parliament in Strasbourg

The European Parliament (EP) forms one half of the EU's legislature (the other half is theCouncil of the European Union, see below). The 736 (soon to be 751) Members of theEuropean Parliament (MEPs) are directly elected by EU citizens every five years. AlthoughMEPs are elected on a national basis, they sit according to political groups rather than theirnationality. Each country has a set number of seats and in some cases is divided into sub-national constituencies.

The Parliament and the Council of the European Union pass legislation jointly in nearly all areasunder the ordinary legislative procedure. This also applies to the EU budget. Finally, theCommission is accountable to Parliament, requiring its approval to take office, having to reportback to it and subject to motions of censure from it. The President of the European Parliamentcarries out the role of speaker in parliament and represents it externally. The EP President andVice Presidents are elected by MEPs every two and a half years.

The ordinary legislative procedure of the European Union
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Council

The Council of the European Union (also called the "Council" and sometimes referred to as the"Council of Ministers") forms the other half of the EU's legislature. It consists of a governmentminister from each member state and meets in different compositions depending on the policyarea being addressed. Notwithstanding its different compositions, it is considered to be onesingle body. In addition to its legislative functions, the Council also exercises executive functionsin relations to the Common Foreign and Security Policy.

Courts

The judicial branch of the EUformally called the Court of Justice of the European Unionconsists of three courts: the Court of Justice, the General Court, and the European Union CivilService Tribunal. Together they interpret and apply the treaties and the law of the EU.

The Court of Justice primarily deals with cases taken by member states, the institutions, andcases referred to it by the courts of member states. The General Court mainly deals with cases

taken by individuals and companies directly before the EU's courts, and the European UnionCivil Service Tribunal adjudicates in disputes between the European Union and its civil service.Decisions from the General Court can be appealed to the Court of Justice but only on a point oflaw.

Competences

The member states of the EU retain all powers not explicitly handed to the Union, as in mostfederations. However in some areas the EU does not have exclusive competence, it only playsa supporting role. In such middle ground member states may enact legislation only where theEU has not, or they may elaborate the laws of the EU. Different competencies may also be usedin different ways. For example, on foreign and defence issues the Parliament has a smaller roleand the Council decides by unanimity rather than by majority. The distribution of competencesin various policy areas between Member States and the Union is divided in the following threecategories:

Exclusive competence Shared competence Supporting competence

The Union has exclusive competence to

make directives and conclude

international agreements when

provided for in a Union legislative act.

Member States cannot exercise

competence in areas where the Union

has done so.

The Union can carry out actions to

support, coordinate or supplement

Member States' actions.

the customs union the establishing of the

competition rules necessary

for the functioning of the

internal market

monetary policy for theMember States whose

currency is the euro

the conservation of marinebiological resources under the

the internal market social policy, for the aspects

defined in this Treaty

economic, social andterritorial cohesion

agriculture and fisheries,excluding the conservation of

marine biological resources

environment consumer protection

the protection andimprovement of human health

industry culture tourism education, youth, sport and

vocational training

civil protection (disasterprevention)
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common fisheries policy

common commercial policy transport trans-European networks energy the area of freedom, security

and justice

common safety concerns in

public health matters, for theaspects defined in this Treaty

administrative cooperation

Legal system

The Court of Justice in Luxembourg can judge member states over EU law.Further information:EU Law, EU treaties, andCharter of Fundamental Rights of the European Union

The EU is based on a series of treaties. These first established the European Community andthe EU, and then made amendments to those founding treaties. These are power-giving treatieswhich set broad policy goals and establish institutions with the necessary legal powers toimplement those goals. These legal powers include the ability to enact legislation which candirectly affect all member states and their inhabitants. Under the principle of supremacy,national courts are required to enforce the treaties that their member states have ratified, andthus the laws enacted under them, even if doing so requires them to ignore conflicting nationallaw, and (within limits) even constitutional provisions.

National courts within the member states play a key role in the EU as enforcers of EU law, anda "spirit of cooperation" between EU and national courts is laid down in the Treaties. Nationalcourts can apply EU law in domestic cases, and if they require clarification on the interpretationor validity of any EU legislation related to the case it may make a reference for a preliminaryruling to the Court of Justice. The right to declare EU legislation invalid however is reserved tothe EU courts.

Justice and home affairs

Area of freedom, security and justice

The Schengen Area comprises most member states ensuring open borders.

Since the creation of the EU in 1993, it has developed its competencies in the area of justiceand home affairs, initially at an intergovernmental level and later by supranationalism. To this
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end, agencies have been established that co-ordinate associated actions: Europol for co-operation of police forces, Eurojust for co-operation between prosecutors, and Frontex for co-operation between border control authorities. The EU also operates the Schengen InformationSystem which provides a common database for police and immigration authorities. Thiscooperation had to particularly be developed with the advent of open borders through theSchengen Agreement and the associated cross border crime.

Furthermore, the Union has legislated in areas such as extradition, family law, asylum law, andcriminal justice. Prohibitions against sexual and nationality discrimination have a long standingin the treaties. In more recent years, these have been supplemented by powers to legislateagainst discrimination based on race, religion, disability, age, and sexual orientation. By virtue ofthese powers, the EU has enacted legislation on sexual discrimination in the work-place, agediscrimination, and racial discrimination.

The 2009 Treaty of Lisbon regrouped all the matters concerning justice and home affairstogether under the newly shaped area of freedom, security and justice. The EuropeanParliament and the Court of Justice gained a say over the whole area, while the EuropeanCouncil adopted the Stockholm Programme to provide EU action on developing the area over

the following five years.

Foreign relations

Catherine Ashton

High Representative of the Union for Foreign Affairs and Security Policy

Foreign policy cooperation between member states dates from the establishment of theCommunity in 1957, when member states negotiated as a bloc in international tradenegotiations under the Common Commercial Policy.

Steps for a more wide ranging coordination in foreign relations began in 1970 with the

establishment of European Political Cooperation which created an informal consultation processbetween member states with the aim of forming common foreign policies. It was not, however,until 1987 when European Political Cooperation was introduced on a formal basis by the SingleEuropean Act. EPC was renamed as the Common Foreign and Security Policy (CFSP) by theMaastricht Treaty. The aims of the CFSP are to promote both the EU's own interests and thoseof the international community as a whole, including the furtherance of international co-operation, respect for human rights, democracy, and the rule of law. The CFSP requiresunanimity among the member states on the appropriate policy to follow on any particular issue.
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The unanimity and difficult issues treated under the CFSP makes disagreements, such as thosewhich occurred over the war in Iraq, not uncommon.

The EU participates in all G8 and G20 summits. The co-ordinator and representative of theCFSP within the EU is the High Representative of the Union for Foreign Affairs and SecurityPolicy who speaks on behalf of the EU in foreign policy and defence matters, and has the task

of articulating the positions expressed by the member states on these fields of policy into acommon alignment. The High Representative heads up the European External Action Service(EEAS), a unique EU department that is being established following the entry into force of theTreaty of Lisbon. The EEAS will serve as a foreign ministry and diplomatic corps for theEuropean Union.

Besides the emerging international policy of the European Union, the international influence ofthe EU is also felt through enlargement. The perceived benefits of becoming a member of theEU act as an incentive for both political and economic reform in states wishing to fulfil the EU'saccession criteria, and are considered an important factor contributing to the reform of formerCommunist countries in Central and Eastern Europe. This influence on the internal affairs ofother countries is generally referred to as "soft power", as opposed to military "hard power".

In the UN, as an observer and working together, the EU has gained influence in areas such asaid due to its large contributions in that field. In the G8, the EU has rights of membershipbesides chairing/hosting summit meetings and is represented at meetings by the presidents ofthe Commission and the Council. In the World Trade Organisation (WTO), where all 27 memberstates are represented, the EU as a body is represented by Trade Commissioner Karel DeGucht.

Military and defence

The Eurofighter is built by a consortium of four EU countries.

The European Union does not have one National army. The predecessors of the EuropeanUnion were not devised as a strong military alliance because NATO was largely seen asappropriate and sufficient for defense purposes. Twenty-one EU members are members of

NATO while the remaining member states follow policies of neutrality. However the compatibilityof their neutrality with EU membership is questioned and with mutual solidarity in the event ofdisasters, terrorist attacks and armed aggression covered by TEU Article 42 (7) and TFEUArticle 222 of the EU treaties; the Western European Union, a military alliance with a mutualdefense clause, was disbanded in 2010 as its role had been transferred to the EU. In 2000,France, the UK, Spain, and Germany accounted for 97% of the total military research budget ofthe then 15 EU member states.
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Economy

Economy of the European Union

The EU and the next seven largest economies in the world by nominal GDP. (IMF, 2009)

Since its origin, the EU has established a single economic market across the territory of all itsmembers. Currently, a single currency is in use between the 16 members of the eurozone. If

considered as a single economy, the EU generated an estimated nominal gross domesticproduct (GDP) of US$16.45 trillion (14.794 trillion international dollars based on purchasingpower parity) in 2009, amounting to over 21% of the world's total economic output in terms ofpurchasing power parity, which makes it the largest economy in the world by nominal GDP andthe second largest trade bloc economy in the world by PPP valuation of GDP. It is also thelargest exporter, and largest importer of goods and services, and the biggest trading partner toseveral large countries such as China and India.

EU unemployment stood at 7% while investment was at 21.4% of GDP, inflation at 2.2% andpublic deficit at 0.9% of GDP. There is a great deal of variance for annual per capita incomewithin individual EU states, these range from US$7,000 to US$69,000.

Note: 161 of the top 500 largest corporations measured by revenue(Fortune Global 500in 2010) havetheir headquarters in the EU.

Single market

Single market of the European Union

The European Central Bank in Frankfurt governs the eurozone's monetary policy.
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Two of the original core objectives of the European Economic Community were thedevelopment of a common market, subsequently renamed the single market, and a customsunion between its member states. The single market involves the free circulation of goods,capital, people and services within the EU, and the customs union involves the application of acommon external tariff on all goods entering the market. Once goods have been admitted intothe market they cannot be subjected to customs duties, discriminatory taxes or import quotas,

as they travel internally. The non-EU member states of Iceland, Norway, Liechtenstein andSwitzerland participate in the single market but not in the customs union. Half the trade in theEU is covered by legislation harmonised by the EU.

Free movement of capital is intended to permit movement of investments such as propertypurchases and buying of shares between countries. Until the drive towards Economic andMonetary Union the development of the capital provisions had been slow. Post-Maastricht therehas been a rapidly developing corpus of ECJ judgements regarding this initially neglectedfreedom. The free movement of capital is unique insofar as it is granted equally to non-memberstates.

The free movement of persons means citizens can move freely between member states to live,

work, study or retire in another country. This required the lowering of administrative formalitiesand recognition of professional qualifications of other states.

The free movement of services and of establishment allows self-employed persons to movebetween member states in order to provide services on a temporary or permanent basis. Whileservices account for between sixty and seventy percent of GDP, legislation in the area is not asdeveloped as in other areas. This lacuna has been addressed by the recently passed Directiveon services in the internal market which aims to liberalise the cross border provision of services.According to the Treaty the provision of services is a residual freedom that only applies if noother freedom is being exercised.

Monetary union

Economic and Monetary Union of the European Union

16 EU countrieshave introduced the euro as their sole currency.

The creation of a European single currency became an official objective of the EU in 1969.However, it was only with the advent of the Maastricht Treaty in 1993 that member states were
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Supranational Governmental Organization

Definition:

4Extending beyond or transcending established borders or spheres of influence held by

separate nations. An international organization, or union, whereby member statestranscend national boundaries or interests to share in the decision-making and vote on

issues pertaining to the wider grouping.

5Describing an organization that exists in multiple countries. While, theoretically,

supranational could refer tomultinational corporations, the term most often describes an

international government or quasi-government organization. Examples include the

United Nations and the International Monetary Fund. Supranational organizations

often have a direct role in regulation. For example, an international treaty may set up

certain standards for international trade. It is important to note, however, that

enforcement of these provisions is left to individual, sovereign governments

6Organization that is founded and operates, at least in part, on the idea that internationalorganizations can or should have authority higher than individual states and that thosestates should be subordinate to the supranational organization.

Supranational aspects of international organizations

Definition of Supranationality7

Supranationality can be thought of as "a composite of several elements." These elements canbe present alone or all together. The three elements of supranationality are defined as follows:

1. Making of significant decisions by a body that is not made of national representativesand that does not receive instructions from national governments. (Though such a bodyis frequently elected by national authorities or their constituents. Frequently such a bodyis made up of officials acting in an individual capacity.)

2. The subjects or participants (national governments or individuals) are legally obligated tocomply with the decisions of the body.

3. Individuals or other private parties may interact directly with the body and/or have legalobligations as stated above.

Examples of Supranational Elements

European Court of Human Rights Founded 1950,Reformed 1998

4www.thefreedictionary.com

5by: financial-dictionary.thefreedictionary.com

6www.politicalglossary.net

7Political Unification Revisited: On Building Supranational Communities by Amitai Etzioni
http://financial-dictionary.thefreedictionary.com/Multinational+Corporationhttp://financial-dictionary.thefreedictionary.com/Multinational+Corporationhttp://financial-dictionary.thefreedictionary.com/Multinational+Corporationhttp://en.wikipedia.org/wiki/European_Court_of_Human_Rightshttp://en.wikipedia.org/wiki/European_Court_of_Human_Rightshttp://en.wikipedia.org/wiki/European_Court_of_Human_Rightshttp://financial-dictionary.thefreedictionary.com/Multinational+Corporation


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AspectSupranational

Element

Judges of the Court serve in an individual capacity. Though elected by the ParliamentaryAssembly of the Council of Europe, they receive no instructions from States or any entityoutside the court and cannot be dismissed but by a vote of two thirds of their owngrouping.

[2]

1

The Court can rule against the government of the offending States Parties. Judgementsof the Court as to remedies for rights violations are binding on States Parties.

[3]

2

The jurisdiction of the Court is automatically compulsory. The statute of the Court is apart of the European Convention on Human Rights and thus states party to theConvention are party to the Court. While not having initial jurisdiction over complaints,there is no provision for refusal by States brought before the Court.

[4]

2

Citizens of States Parties to the European Convention on Human Rights may bring theirhuman rights grievances directly to an international body of judges (the Court), albeitonly when all domestic remedies have been exhausted.

[5]

3

Inter-American Court of Human Rights Founded 1979

AspectSupranational

Element

The Court can rule against the government of a State Party it finds has violated theAmerican Convention on Human Rights. Judgements of the Court as to remedies forrights violations are binding on States Parties.

[6][7]

2

States may accept compulsory jurisdiction of contentious cases through declaration. Thismeans any other State Party accepting compulsory jurisdiction may bring a case againstit before the Court. Alternatively the state declaring compulsory jurisdiction may bebrought before the court by the Inter-American Commission on Human Rights over acomplaint

Documents

The Political Environment 2