Module 1 – How EU Law is Made: The Big Picture

1. Why this module matters (and where the NLF fits)

In this first module, you zoom out and see how EU law is made overall, so later you can understand where the New Legislative Framework (NLF) fits.

By the end, you should be able to:

• Describe the roles of the European Commission, European Parliament, and Council of the EU in making laws.
• Distinguish, in simple terms, between regulations, directives, decisions, and secondary acts (delegated and implementing acts).

Big picture:

• The EU makes rules that apply across 27 Member States.
• Most product‑related laws (including NLF legislation like the Market Surveillance Regulation (EU) 2019/1020) are made using the ordinary legislative procedure.
• Understanding this procedure helps you see who decided what, and how detailed rules under the NLF are created and updated.

Keep in mind: the current framework is based on the Treaty of Lisbon, in force since late 2009 (about 16 years ago), which strengthened the role of the European Parliament and introduced delegated and implementing acts as we use them today.

2. Meet the three main law‑makers: Commission, Parliament, Council

EU law‑making mainly involves three institutions:

1. European Commission – the initiator and guardian

• Often called the EU’s “executive”.
• Has almost exclusive right of legislative initiative: it proposes EU laws.
• Ensures EU law is applied correctly; can bring infringement actions against Member States.

1. European Parliament – the directly elected chamber

• Represents EU citizens (elected every 5 years; the most recent election was in 2024, about 1 year ago).
• Shares law‑making power with the Council in the ordinary legislative procedure (co‑legislator).
• Approves, amends, or rejects Commission proposals.

1. Council of the European Union – the Member States’ governments

• Represents national governments.
• Different configurations (e.g. Competitiveness Council, Environment Council) depending on the topic.
• Shares law‑making power with Parliament in the ordinary legislative procedure.

> Visual description: Imagine a triangle.

> - At the top: Commission (proposes the law).

> - Bottom left: Parliament (citizens’ voice).

> - Bottom right: Council (Member States’ voice).

> They negotiate and agree on the final text of EU laws.

Other institutions (like the European Council and Court of Justice of the EU) matter too, but this module focuses on the three actors directly involved in making legislation.

3. Quick sorting exercise: who does what?

Try this thought exercise. For each role, decide whether it fits best with the Commission, Parliament, or Council of the EU:

1. “We represent the governments of the 27 Member States.”
2. “We are directly elected by EU citizens.”
3. “We normally have the right to start the law‑making process by drafting proposals.”
4. “We meet in different configurations, like Environment or Competitiveness.”
5. “We can amend and adopt laws together with another institution.”

Scroll down for suggested answers.

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Suggested answers (check yourself):

1. Council of the EU
2. European Parliament
3. European Commission
4. Council of the EU
5. Both Parliament and Council (they are co‑legislators in the ordinary legislative procedure).

If you mis‑sorted any, note why and adjust your mental picture of each institution.

4. The ordinary legislative procedure: overview in 6 stages

Most modern internal‑market and NLF‑related laws are made using the ordinary legislative procedure (OLP), sometimes still informally called co‑decision.

Here is the standard sequence:

1. Commission proposal

• Commission drafts a legislative proposal (usually a draft regulation or directive).
• Based on impact assessments, expert groups, public consultations, etc.

1. First reading in Parliament

• Parliament’s relevant committee (e.g. IMCO for internal market) discusses and amends the proposal.
• Plenary votes on the position at first reading.

1. First reading in Council

• Council examines Parliament’s position.
• If Council accepts Parliament’s position → the act is adopted.
• If not, Council adopts its own position and sends it back to Parliament.

1. Second reading in Parliament

• Parliament can approve, reject, or amend the Council’s position.
• If Parliament rejects by absolute majority → the act fails.

1. Second reading in Council

• If Parliament proposes amendments, Council decides whether to accept them.
• If Council accepts all → the act is adopted.

1. Conciliation and third reading (if needed)

• If Council and Parliament still disagree, a Conciliation Committee (equal numbers of MEPs and Council representatives) seeks a joint text.
• Parliament and Council then hold a third reading to approve or reject that joint text.

> In practice, many laws are agreed earlier, through informal negotiations called “trilogues” (Commission + Parliament + Council) leading to a compromise at first reading.

For NLF‑related acts, this is typically how the basic legislation (e.g. a product safety regulation) is created before any detailed technical rules are adopted.

5. Example walkthrough: a (simplified) NLF‑style law

Imagine the EU wants to update rules on smart home devices under the NLF.

1. Commission

• Identifies problems: unsafe devices, weak cybersecurity, inconsistent national rules.
• Runs a public consultation and an impact assessment.
• Drafts a proposal for a regulation on smart home device safety.

1. Parliament – first reading

• The IMCO Committee studies the proposal.
• MEPs propose amendments (e.g. clearer obligations for importers, better online market surveillance).
• Parliament votes a first‑reading position including these amendments.

1. Council – first reading

• National ministers (e.g. in the Competitiveness Council) discuss the same text.
• They negotiate informally with Parliament (trilogues) and the Commission.
• They agree on a compromise text and formally adopt it together with Parliament.

1. Publication and entry into force

• The regulation is published in the Official Journal of the European Union (OJEU).
• It enters into force on a specified date and starts applying after a transition period.

1. Later: secondary acts

• The basic regulation allows the Commission to adopt delegated acts (e.g. to update lists of high‑risk products) and implementing acts (e.g. to set uniform formats for technical documentation).
• These secondary acts are adopted under the control of Parliament, Council, or Member State committees, but without re‑opening the whole regulation.

This example mirrors how many recent NLF‑related instruments, such as Regulation (EU) 2019/1020 on market surveillance, were developed and then supplemented by more detailed rules.

6. Types of EU legal acts: regulations, directives, decisions

Under the Treaty on the Functioning of the EU (TFEU), the main binding legal acts are:

1. Regulations

• General application: apply to everyone in all Member States.
• Directly applicable: become law in each Member State without national transposition.
• Common in internal market and NLF‑related areas.
• Example: Regulation (EU) 2019/1020 on market surveillance and product compliance.

2. Directives

• Bind Member States as to the result to be achieved, but leave them choice of form and methods.
• Need transposition into national law by a deadline.
• Allow adaptation to national systems, but may lead to differences in implementation.
• Example: Directive 2014/35/EU (Low Voltage Directive) under the NLF.

3. Decisions

• Binding in all their parts, but only for those to whom they are addressed.
• Can be addressed to Member States, companies, or individuals.
• Example: a Commission state aid decision addressed to a specific Member State.

> Quick mental check: if you see an EU act and want to know how it applies:

> - If it’s a regulation → think “immediate and uniform”.

> - If it’s a directive → think “goal is common, methods may differ”.

> - If it’s a decision → think “specific addressee(s)”.

7. Delegated vs implementing acts: the secondary layer

Modern EU legislation, especially in technical areas like the NLF, often uses two key tools to fill in or update details without re‑passing the whole law:

Delegated acts (Article 290 TFEU)

• The legislator (Parliament + Council) can delegate to the Commission the power to supplement or amend certain non‑essential elements of a legislative act.
• Used to adjust or add policy‑relevant details.
• Parliament and Council keep control, usually via:
• Right of objection (they can block a delegated act), and/or
• Right of revocation (they can take back the delegation).
• Example (typical, simplified): updating a list of high‑risk product categories under a product safety regulation.

Implementing acts (Article 291 TFEU)

• Used where uniform conditions for implementing legally binding Union acts are needed.
• Focus on technical or procedural details needed to make the law work in practice.
• Member States oversee these via “comitology” committees.
• Example: setting a standardised form for EU declaration of conformity or detailed procedures for checks at external borders.

> In short:

> - Delegated act → Commission can modify or add non‑essential parts of the law, under political control by Parliament and Council.

> - Implementing act → Commission (with Member States in committees) sets uniform application rules.

This structure is central to the New Legislative Framework, which relies heavily on framework legislation + secondary acts + harmonised standards.

8. Quick check: which type of act is it?

Test your understanding of the main types of EU acts used in law‑making.

9. Map the roles: who does what in the ordinary legislative procedure?

Use this thought exercise to connect institutions with their roles in the ordinary legislative procedure.

For each action, decide which institution is primarily responsible: Commission, Parliament, Council, or more than one.

1. Drafts the initial proposal for a new product safety regulation.
2. Holds a committee meeting (e.g. IMCO) to debate and amend the draft law.
3. Represents national governments in negotiations on the final text.
4. Can jointly adopt or reject a compromise text at second reading.
5. Can be empowered to adopt delegated acts to update non‑essential elements.

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Suggested answers:

1. Commission
2. Parliament (its internal committees)
3. Council of the EU
4. Both Parliament and Council (they are co‑legislators)
5. Commission, but only because Parliament and Council delegate this power in the basic act.

If any answer surprised you, re‑read Steps 2, 4, and 7 and adjust your summary notes.

10. Flashcard review: key terms from this module

Flip these cards (mentally or with a friend) to reinforce the core vocabulary for EU law‑making and the NLF context.

11. Wrap‑up: connect this to the New Legislative Framework

To consolidate your understanding, answer these reflection prompts in your own words (no need to be perfect; aim for clarity):

1. In one or two sentences, explain how a typical NLF regulation (e.g. on product safety or market surveillance) is created.

• Mention the roles of the Commission, Parliament, and Council.

1. Why do you think NLF legislation often uses delegated and implementing acts instead of putting all details in the basic regulation?

• Think about flexibility, technical complexity, and the need to update rules.

1. If you read about a new EU rule on a product you care about (e.g. smartphones, toys, medical devices), what two questions could you ask to place it in the system you learned today?

• Example: “Is this a regulation or a directive?” “Is this a basic act or a delegated/implementing act?”

Take 2–3 minutes to jot down short answers. These notes will help you in later modules when we dive deeper into the New Legislative Framework itself.