Árpád Duka-Zólyomi

Codecision procedure

The codecision procedure was introduced in the Treaty on European Union (Maastricht, 1992) and strengthened by the Treaty of Amsterdam. It makes provision for a division of legislative power between Parliament and the Council of the European Union. In practice, codecision has become the most important legislative procedure.

The codecision procedure and its scope

The codecision procedure, which is based on Article 251 of the EC Treaty (formerly Article 189b), is central to the Community decision-making system.

In this procedure, the European Parliament and the Council seek to reach agreement so the legislative process can be brought to a successful conclusion.

It applies to legislation governing a large range of sectors, such as the internal market, free movement of workers, education and culture, where the Council takes a decision by qualified majority.

The Constitution makes provision for strengthening Parliament’s co-legislative powers by extending the codecision procedure to areas where it does not yet act jointly with the Council, such as the EU’s agricultural policy, research policy and regional and social development policy (Structural Funds).

The machinery of the codecision procedure

The codecision procedure is in three stages and gives Parliament a right of veto.
The general outline of this procedure is as follows:

A Commission proposal is presented to the European Parliament and the Council

First reading

Parliament adopts or does not adopt amendments to the Commission proposal.

• If it does not adopt amendments and if the Council also accepts the Commission proposal, the act is adopted by the Council by qualified majority
• If Parliament adopts amendments:
  • If the Council approves all the amendments and does not change the Commission proposal otherwise, the act is adopted by the Council by qualified majority
  • If the Council does not approve all the amendments or rejects them, the Council adopts a common position by qualified majority, which is forwarded to Parliament. It must provide a full explanation of its reasons for adopting its common position. The Commission informs Parliament of its opinion.

Second reading

Parliament has three possibilities for action within three months:

• if it approves the Council’s common position or if it does not deliver an opinion within that period, the act is deemed adopted in accordance with the common position.
• if it rejects the common position by an absolute majority of its Members, the act is deemed not to have been adopted.
• if it adopts amendments to the common position by an absolute majority of its Members, the text is forwarded to the Council and Commission for their opinion on the amendments. In the last case:
  • either the Council approves all Parliament’s amendments by an absolute majority of its members, in which case the act is deemed adopted and signed by the Presidents of Parliament and the Council
  • or the Council informs Parliament that it does not approve all its amendments to the common position, in which case the President of the Council and the President of Parliament agree on a date and place for a first meeting of the Conciliation Committee within a six-month period.

Third reading

The Conciliation Committee, which comprises members of the Council and an equal number of MEPs, considers the common position voted at second reading on the basis of Parliament’s amendments. It has six weeks to draw up a joint text.

• If the Conciliation Committee does not approve the joint text within the agreed time period, the act is deemed not to have been adopted and the procedure is terminated.
• If the Conciliation Committee approves the joint text, it is presented to the Council and Parliament for approval. The Council and Parliament have six weeks to approve it; the Council takes a decision by qualified majority and Parliament by an absolute majority of the votes cast. The act is adopted if the Council and Parliament approve the joint text.

Consultation procedure

In the consultation procedure, Parliament is asked for its opinion on proposed legislation before the Council adopts it under Article 192 of the EC Treaty.

Background

In the beginning, the 1957 Treaty of Rome gave Parliament an advisory rôle in the legislative process; the Commission proposed and the Council adopted legislation.

The Single European Act (1986) and the Treaties of Maastricht, Amsterdam and Nice successively extended Parliament’s prerogatives. It can now amend legislative texts in a large number of areas.

Parliament thus shares decision-making power with the Council.

The consultation procedure and its scope

The procedure may be:

• obligatory, if required under the Community Treaties - the legislative proposal acquires the force of law only if Parliament delivers an opinion
• optional, if the Commission asks the Council to consult Parliament.

This procedure is applicable in various areas, such as agriculture, competition, tax . and in the revision of the Treaties.

The machinery of the consultation procedure

The European Parliament may approve, reject or ask for amendments to the Commission’s legislative proposal.

In the cases laid down by the Treaty, the Council consults Parliament before taking a decision on the Commission’s proposal and makes sure that its opinion is taken into account. The Council is not legally obliged to take account of Parliament’s opinion but cannot take a decision without having seen it.

Consultation on proposals on the initiative of a Member State

Proposals on the initiative of a Member State under Article 67(1) of the EC Treaty or Articles 34(2) and Article 42 of the EU Treaty in the area of police and judicial cooperation in criminal matters are considered in the light of Rules 41 and 34-37, 40 and 51 of the Rules of Procedure.

Parliament’s committee responsible can invite a representative of the initiating Member State to present the proposal. The Member State representative may be accompanied by a representative of the Presidency of the Council. Before voting, the committee asks the Commission whether it has taken a position on the initiative and, if so, invite it to present its views. If two or more legislative initiatives with a common objective are presented to Parliament simultaneously they will be covered in the same report.

Budget procedures

The European Union’s budget is voted for one year. Estimates must balance expenditure. The budget is drawn up jointly by the European Parliament and the Council of the European Union. Parliament is therefore responsible, with the Council, for budget policy.

Development of Parliament’s budget powers

Parliament’s budget powers have been considerably strengthened since the treaties of 22 April 1970 and 22 July 1975, which have enabled it to play a key rôle in budget decision-making.

The European Parliament lays down budget guidelines and draws up the budget after dialogue with the other institutions.

It monitors implementation of the budget and grants an annual discharge to the Commission.

Division of budget powers between the European Parliament and the Council

A distinction is made between compulsory and non-compulsory expenditure in the European Union’s budget.

For compulsory expenditure, which is basically agricultural expenditure and expenditure arising directly from application of the Treaties, Parliament can only propose amendments to the draft budget drawn up by the Council. The Council has the final say on this type of expenditure.

Parliament takes decisions on non-compulsory expenditure (which covers other areas such as education, social welfare programmes, regional funds, training, etc.) in close cooperation with the Council.

The phases of the budget procedure

Parliament now has the final say in the budget adoption procedure described in Article 272 of the Treaty establishing the European Community.

The budget procedure laid down in Article 272 begins at the latest on 1 September in the year preceding implementation of the budget.

Each institution draws up estimates of its expenditure for the following budget year. These comprise an estimate of revenue and an estimate of expenditure.

First phase:

The Commission presents a preliminary draft budget to the Council, taking account of guidelines laid down by Parliament and the Council at a trialogue on budget priorities and an ad hoc conciliation procedure on compulsory expenditure. The preliminary draft budget may later be modified by the Commission by a letter of amendment to take account of new aspects.

Second phase:

After consultation with a Parliament delegation, the Council of the European Union adopts a draft budget by qualified majority. This is then forwarded to the European Parliament.

Third phase:

At first reading, Parliament may vote, by a majority of the votes cast, for proposed modifications to compulsory expenditure and, by an absolute majority, for amendments to non-compulsory expenditure.

Fourth phase:

At second reading, the Council of the European Union adopts compulsory expenditure and can modify non-compulsory expenditure.

The draft is returned to Parliament, which adopts the non-compulsory expenditure.

Fifth phase:

Parliament may reject the budget by an absolute majority of its members and three-fifths of the votes cast. If this happens, the budget procedure must begin again on the basis of a new draft. Until this is adopted, the Community operates on the basis of monthly appropriations equal to one twelfth of the previous budget (known as provisional twelfths). Otherwise Parliament adopts the budget. The President of Parliament declares the budget finally adopted.

The Commission is responsible for implementing the annual general budget.

The Court of Auditors studies the implementation of the previous year’s annual budget and publishes its annual report.

The Council studies the Court of Auditors’ observations and proposes a recommendation to Parliament.

The European Parliament grants a discharge to the Commission on the basis of a recommendation by its Committee on Budgetary Control that it is satisfied with the Court of Auditors’ annual report. The discharge contains recommendations for improving the implementation of the future budget. Parliament may also refuse to give a discharge. A refusal is equivalent to a motion of censure.

Assent procedure

In certain legislative areas, the European Parliament can give its assent under Article 192 of the EC Treaty. The assent procedure gives Parliament the right of veto. Parliament’s role is thus to approve or reject the legislative proposal and the Council cannot overrule Parliament’s opinion. The assent procedure usually applies to the ratification of certain agreements negotiated by the European Union.

The assent procedure and its scope

The 1986 Single European Act introduced the assent procedure into two sectors: association agreements and agreements governing accession to the European Union.

The scope of this procedure has been extended by the Maastricht Treaty (1992). It applies in several legislative fields in which the Council takes a unanimous decision. Since the Treaty of Amsterdam these have been reduced to the Structural Funds and cohesion (Article 161 of the EC Treaty). Since the Treaty of Amsterdam, Parliament’s assent is necessary when the Council notes there is a risk of a serious breach of fundamental rights by a Member State. The assent procedure has been replaced by the codecision procedure for provisions relating to the rights of movement and residence for EU citizens.

The European Parliament has the power to block legislation in these various areas and the Council cannot adopt the act without Parliament’s assent. However, Parliament has not obtained the power to give its assent to a new revision of the treaties.

The machinery of the assent procedure

The European Parliament gives its assent to a draft act forwarded by the Council. It accepts or rejects the act adopted by the Council by the majority required under Article 192 of the EC Treaty. It gives or does not give its assent. In this procedure, Parliament cannot put forward amendments to the text proposed by the Council.

When Parliament’s assent is required for a legislative proposal, the committee responsible can try to encourage a positive outcome by tabling an interim report on the Commission proposal. This contains a motion for a resolution putting forward recommendations for amendment or implementation of the legislative proposal in question. If Parliament adopts at least one recommendation, the President will ask for further discussion with the Council. The committee responsible draws up its final recommendation for Parliament’s assent in the light of the discussion with the Council.

Enhanced cooperation procedure

The enhanced cooperation procedure was introduced under the Amsterdam Treaty. It enables Member States who so wish to establish closer cooperation with one another.

General provisions for enhanced cooperation in the Community area

EU Member States may request enhanced cooperation but can enter into it only with the Commission’s agreement. If the Commission decides not to present a proposal, it will explain its reasons to the Member States concerned.

When enhanced cooperation relates to an area coming within the remit of the codecision procedure (Article 251 of the EC Treaty), the Treaty of Nice requires Parliament’s assent. This ensures that Parliament’s rights are respected.

In other cases, the request is also forwarded to Parliament, but it has only advisory powers.

General provisions applicable to enhanced cooperation in justice and home affairs

Enhanced cooperation envisaged between the Member States must :

• fit in with the Commission’s responsibilities and objectives as laid down in the provisions on police and judicial cooperation in criminal matters
• and aim to further the objective of more rapid development of the EU as an area of freedom, security and justice.

Member States that wish to set up enhanced cooperation, in accordance with Articles 43 and 44 of the Treaty on European Union, send a request to the Commission, which may then submit a legislative proposal to the Council. Authorisation to set up enhanced cooperation is granted by the Council by qualified majority on a proposal by the Commission or on the initiative of at least eight Member States.

Appointment procedures

The European Parliament exercises democratic control over the full range of Community activities. Appointment procedures enable Parliament to exercise its supervisory powers over certain European institutions.

Parliament’s influence over the composition and nomination of the Commission

The procedure to nominate the President of the Commission has been modified by the Treaties of Amsterdam and Nice. These treaties have given Parliament more weight by giving it powers of investiture in the procedure to appoint the Commission. Article 214 of the Treaty establishing the European Community states that the Council of the European Union, acting by qualified majority, appoints the President of the Commission and this appointment must be approved by the European Parliament. Parliament is thus closely associated with the appointment of the President of the Commission.

All Members of the Commission are approved by Parliament by simple majority, after hearings of each Commissioner before the committees responsible. At the end of the process, the Council appoints the Commission as a whole by qualified majority.

Motion of censure against the Commission

The European Parliament has the power to adopt a motion of censure against the Commission as a whole. The power of censure means Parliament can exert democratic control in the European Union. To be admissible, a motion of censure must be tabled by at least one tenth of the MEPs. It must state the reasons for the motion.

During the Commission’s term of office, Parliament has the power to dismiss the Commission by a two-thirds majority of the votes cast, representing a majority of the component Members of Parliament.

Appointment of the Members of the Court of Auditors

Members of the Court of Auditors are chosen from former or present members of national external audit bodies or because they have particular qualifications for the task.

Members of the Court of Auditors are appointed for six years by the Council of the European Union acting by qualified majority, after consultation of the European Parliament.

If Parliament’s opinion on a particular candidate is negative, the President of Parliament asks the Council to withdraw the nomination and submit a new one.

Appointment of the Members of the Executive Board of the European Central Bank

The European Central Bank is the supreme decision-making body that defines European monetary policy and establishes interest rates.

The Executive Board consists of the President, a Vice-President and four other members, appointed by common agreement by the heads of state or government of the Member States in the euro area. They are appointed for a non-renewable term of eight years.

The members of the Executive Board are appointed by the Member States following a recommendation by the Council of the European Union and consultation of the European Parliament and the European Central Bank’s Governing Council.

Appointment of the Ombudsman

The office of Ombudsman is defined in the Treaty of Maastricht. It was introduced to provide greater democracy and administrative transparency. After each election of the European Parliament, the Ombudsman is appointed by MEPs by a majority of the votes cast in a secret ballot, for the duration of the parliamentary term.

The Ombudsman acts completely independently and impartially. He cannot exercise any other professional activity, paid or otherwise, during his term of office. His task is to consider complaints from any EU citizen or any natural or legal person residing in or having his registered office in an EU Member State concerning maladministration by the Community institutions or bodies.

On the Ombudsman’s initiative, Parliament has adopted the European Code of Good Administrative Behaviour, which informs the public of what they are entitled to expect from Community administration and informs officials how they should behave in their relations with the public.

Legislative initiative procedure

The Commission has the legislative initiative. However, under the Treaty of Maastricht, the European Parliament has a right of legislative initiative that allows it to ask the Commission to submit a proposal.

The Commission’s legislative and work programme

The European Parliament is significantly involved in the procedure for drawing up the Commission’s legislative programme. The President of the Council of the European Union is invited to take part in this procedure on behalf of the Council. In preparing the Commission’s legislative and work programme, the European Parliament and the Commission follow the timetable and procedures set out in Annex XIV of the Rules of Procedure.

Parliament adopts a resolution on the Commission’s strategic guidelines. The President asks the Council to deliver an opinion on the Commission’s annual legislative programme and Parliament’s resolution. After Parliament’s debate and vote on the Commission’s annual programme, the Presidents of Parliament and the Commission agree, on behalf of their institutions, upon an annual legislative programme covering the legislative measures envisaged.

Initiative under Article 192 of the Treaty establishing the European Community

On the basis of a report by one of its committees, under Article 192, second paragraph, of the EC Treaty, Parliament, acting by a majority of its Members, may request the Commission to submit any appropriate legislative proposal. The Parliament committee responsible must first ask the Conference of Presidents for authorisation. The Commission may agree or refuse to submit the proposal requested. Before opening the procedure, the committee responsible must check that no legislative proposal of the same type is in preparation.

Own-initiative reports

In the areas where the treaties give the European Parliament the right of initiative, its committees may draw up a report on a subject within its remit and present a motion for a resolution to Parliament. They must request authorisation from the Conference of Presidents before drawing up a report.

Other legislative procedures

Procedures for the consideration of voluntary agreements

The Commission informs Parliament when it intends to make use of voluntary agreements rather than legislation. The committee concerned may draw up an own-initiative report under Rule 45. The Commission informs Parliament when it intends to conclude a voluntary agreement. The committee responsible may table a motion for a resolution recommending adoption or rejection of the proposal and under what conditions.

Codification

Official codification means the procedure to repeal the acts being codified and replacing them by a single act. The consolidated version includes all modifications since the act first came into force. It does not contain any modification to the substance of the act. Codification helps to clarify EU legislation that has undergone frequent modifications. Parliament’s legal staff examine the Commission’s proposal for codification. If there is no modification of substance, the simplified procedure for adoption of a report under Rule 43 applies. All aspects of the Commission proposal will be considered under an accelerated procedure within Parliament and the Council.

Implementing provisions

The Commission may introduce implementing provisions for existing legislation. These provisions are presented to committees of experts from the Member States and forwarded to Parliament for information. On a proposal from its committee responsible, Parliament may adopt a resolution stating that the draft implementing measure exceeds the powers laid down in the legal act concerned and asking the Commission to modify it.