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Institutions' Mechanisms:

Some background information on the EU Institutions (for more information see the ‘Europa’ server from which the following information is drawn)

In a nutshell the inter-institutional decision-making process is as follow :

The Commission has the power of initiative in relation to :

  • legislation : the Council and the Parliament can act only on a proposal from the Commission, except in rare cases; other institutions have to or can be consulted (depending on the legal basis —Treaty article— of the proposal);
  • the budget : it establishes the preliminary draft budget; de decision-making power is shared between the Council and the Parliament; the Parliament adopts the final version;
  • international agreements : the Council, on a Commission recommendation, adopts directives allowing the Commission to negotiate an agreement of the Community; at the end of the negotiations, the Commission lays a proposal before the Council on behalf for a decision concluding the agreement.

Several legislative procedures are provided by the Treaties :

procedure without consultation : the Commission transmits its proposal to the Council, which adopts the act by qualified or unanimous majority, depending on the legal basis;

simple Parliamentary consultation procedure : the Commission transmits its proposal both to the Council and to Parliament. The official consultation of Parliament and of the other bodies concerned, if any, is made by the Council.

Procedure of assent by the Parliament : the procedure is the same as in the case of simple consultation. Parliament's approval requires an absolute majority of the vote cast, or absolute majority of its members for accession of the uniform electoral procedure. Failing that, the act cannot definitively be adopted by the Council.

Cooperation procedure : this procedure requires two readings in Parliament and in the Council; the first is similar to the simple consultation; the second has a time-limit.
The common position of the Council is transmitted to Parliament. The Council and the Commission fully inform Parliament of their respective positions.
The Parliament can adopt, amend or reject the common position. If not adopted by the legislative body, the Council can unanimously decide to adopt the proposition.

Codecision procedure : In this procedure, Parliament shares the legislative power with the Council.
The codecision procedure can comprise up to three readings in Parliament and in the Council and require a Conciliation Committee in the event of disagreement between the two institutions. This Committee is composed of the members of the Council or their representatives and as many representatives of Parliament.
The Commission is involved and takes all the necessary initiatives. The proposal is sent formally to European Parliament and to the Council. For the first reading, the procedure is identical to the others. After opinion of Parliament in first reading, the Council, by an absolute majority adopt the proposal, adopt it with amendments, or adopt a common position.
In second reading, Parliament may not decide within the time allowed or approve the common position (the proposal is adopted), reject the common position (the proposal is not adopted), or amend the common position (then the Commission has to deliver an opinion and can amend the proposal).
In this last case the Council can approve all the amendments proposed by the Parliament, thus adopting the proposition, or not approve all the amendments in which case a Conciliation Committee is convened.
If it cannot reach an agreement the proposal is not adopted, or else the joint text has to be approved both by the Council and the Parliament.

A more detailed and graphically illustrated description of these mechanisms can be found in the "pre-lex" server from which this text is taken.