EU institution with the main right of legislative initiative. Proposes new EU laws, manages day‑to‑day policies, and acts as guardian of the Treaties by monitoring how EU law is applied.

Council of the European Union

Institution where national ministers from each Member State meet. Represents governments and is a co‑legislator with the European Parliament in the ordinary legislative procedure.

Directly elected body representing EU citizens. Shares law‑making powers and budgetary authority with the Council and can hold the Commission politically accountable.

CJEU (Court of Justice of the European Union)

Court in Luxembourg that interprets EU law, ensures its uniform application, settles disputes between EU institutions and Member States, and can annul unlawful EU acts.

Body of heads of state or government, plus its President and the Commission President. Sets the EU’s overall political direction but usually does not adopt ordinary legislation.

Type of EU legal act that binds Member States as to the result to be achieved, while leaving them the choice of form and methods.

Specialized body created to help implement EU policies and provide technical or scientific expertise in specific areas.

Legal power to act in a certain policy area; determines whether the EU, Member States, or both can make binding rules.

Who Makes EU Law? Institutions, Powers, and How They Fit Together — EU Law 101: Foundations of the European Union Legal Order

Q: The EU funds student exchanges (Erasmus+), but each country keeps control over its school curriculum. What type of competence is this?

Supporting (or coordinating) competence. Education is mainly a national matter. The EU can support, coordinate, or supplement national policies (for example, by funding Erasmus+), but it cannot replace them. This is a supporting competence under Article 6 TFEU.

Step 1 – The Big Picture: Who Makes EU Law?

Opening the Black Box

EU law comes from a system of shared power between EU institutions and 27 Member States. To understand any EU rule, you need to know who proposes it, who decides it, and who enforces it.

Key Institutional Roles

In practice, EU law is mainly: proposed by the European Commission, decided by the European Parliament and the Council of the EU, interpreted by the CJEU, guided by the European Council, and implemented by national authorities.

Core Questions

Focus on four questions: Who drafts EU laws? Who approves or rejects them? Who checks they are applied? And when is it the EU’s job to act instead of Member States?

Step 2 – The Big Four: Main EU Institutions in Law‑Making

European Commission

The Commission is the EU’s executive. It usually has the exclusive right to propose new EU laws and acts as guardian of the Treaties by checking that EU law is correctly applied.

Council of the EU

The Council represents national governments. Ministers from each Member State meet to negotiate and adopt EU laws, often together with the European Parliament.

European Parliament

The Parliament represents EU citizens and is directly elected. It is a co‑legislator: it debates, amends, and adopts EU laws with the Council, and also approves the EU budget.

CJEU

The Court of Justice of the European Union in Luxembourg interprets EU law, ensures uniform application, and can annul unlawful EU acts or confirm that states have breached EU law.

Step 3 – The European Council and Other Key Players

European Council

The European Council unites national leaders. It sets the EU’s broad political direction, especially in crises, but usually does not adopt ordinary legislation itself.

ECB

The European Central Bank runs euro‑area monetary policy. It can adopt binding rules in its field, such as regulations for banks, and it is institutionally independent.

EU Agencies

Agencies like EMA, ECHA, and Frontex provide expertise and help implement EU law in specific sectors. Their powers are limited and reviewed by the CJEU.

National Level

National parliaments, governments, and courts are part of the EU system. They implement directives, apply EU rules, and can influence EU law through scrutiny and court references.

Step 4 – Who Is Allowed to Act? EU Competences (Powers)

Why Competences Matter

EU institutions cannot act on everything. The Treaties divide powers between the EU and Member States. If there is no Treaty basis, an EU law can be annulled by the CJEU.

Exclusive Competences

In exclusive areas like the customs union and common commercial policy, only the EU can legislate. Member States may act only if the EU allows it or to apply EU rules.

Shared Competences

In shared areas, both the EU and states can legislate. But once the EU has acted, its law generally takes priority and can limit further national legislation.

Supporting Competences

In supporting areas such as education and culture, the EU can coordinate and fund but not replace national policies. It mainly adopts soft law and incentive measures.

Step 5 – Examples: Exclusive, Shared, and Supporting Powers

Exclusive: Customs Union

Customs duties on goods entering the EU are set at EU level. A Member State cannot set its own different tariff on imported smartphones without breaching EU law.

Shared: Environment

For air quality, the EU can adopt directives setting minimum pollution standards. States must transpose them but can often choose stricter national limits within EU rules.

Supporting: Education

In education, the EU cannot fix school curricula. Instead, it supports national systems through schemes like Erasmus+, funding mobility and cooperation projects.

Step 6 – The Ordinary Legislative Procedure: From Proposal to Law

Commission Proposal

The ordinary legislative procedure starts with the Commission. It drafts a proposal for a regulation, directive, or decision, based on a Treaty article that gives the EU power to act.

Parliament and Council

Parliament and the Council each examine the proposal, suggest amendments, and try to agree on a common text. If they agree after the first reading, the act is adopted.

Second Reading & Conciliation

If agreement fails at first, there can be a second reading and then a conciliation committee to find a compromise that both Parliament and Council can approve.

From Law to Practice

Once adopted and published in the Official Journal, regulations apply directly, while directives must be turned into national law. The Commission and CJEU watch over correct application.

Step 7 – Thought Exercise: Trace a Law You Know

Try this short exercise to connect the theory to something real.

Pick an EU‑related rule in daily life. For example:

Roaming charges when using your phone in another EU country
Data protection (GDPR)
Energy labels on fridges and washing machines
Passenger rights when your flight is delayed

Ask yourself these questions:

Which type of competence is this likely to be? (Exclusive, shared, or supporting?)
Which institutions probably:
Proposed the rule?
Co‑decided and adopted it?
Enforce it and interpret it?

Write a 3‑line explanation (you can do this in your notes):

Line 1: "This rule is mainly about [policy area], which is probably a [type] competence."
Line 2: "The Commission proposed the law, and Parliament plus the Council adopted it using the ordinary legislative procedure (in most cases)."
Line 3: "National authorities apply the rule, and the CJEU can interpret it if there is a dispute."

Optional deeper check:

If you have time, search the name of the EU act (for example, "Regulation (EU) 2016/679" for GDPR) and quickly verify:
Is it a regulation or directive?
Which Treaty article is its legal basis?

This small exercise helps you see that every EU rule around you has a legal basis, a procedure, and a set of institutions behind it.

Step 8 – Quick Check: Institutions and Competences

Test your understanding of who does what and how competences work.

Which statement best describes the ordinary legislative procedure in the EU today?

The Commission and the CJEU jointly adopt laws, and the European Council can veto them.
The European Parliament and the Council of the EU jointly adopt laws, based on a proposal usually made by the Commission.
National parliaments adopt EU regulations, and the ECB implements them in the euro area.

Show Answer

Answer: B) The European Parliament and the Council of the EU jointly adopt laws, based on a proposal usually made by the Commission.

In the ordinary legislative procedure, the Commission normally has the right of initiative (it proposes a draft). The European Parliament and the Council of the EU then act as co‑legislators and must agree on the same text. The CJEU interprets and reviews laws but does not adopt them, and the European Council sets political direction rather than passing ordinary legislation.

Step 9 – Quick Check: Types of Competence

Match the situation to the correct type of EU competence.

The EU funds student exchanges (Erasmus+), but each country keeps control over its school curriculum. What type of competence is this?

Exclusive competence
Shared competence
Supporting (or coordinating) competence