JAGTIV · Previous Year Questions

UPSC

ECONOMY · 2010

Previous Year Question

In the context of bilateral trade negotiations between India and the European Union, what is the difference between the European Commission and the European Council?

  1. The European Commission represents the EU in trade negotiations, whereas the European Council participates in the legislation of matters pertaining to the economic policies of the European Union.

  2. The European Commission comprises the heads of State or Government of member countries, whereas the European Council comprises persons nominated by the European Parliament.

Which of the statements given above is/are correct?

A.

Only 1

B.

Only 2

C.

Both 1 and 2

D.

Neither 1 nor 2

Correct Answer: D

Detailed Solution

The distinction between the European Council and the Council of the European Union is crucial to this question. They are separate EU institutions.

Statement 1 is incorrect. Its first part is broadly correct: under the EU’s Common Commercial Policy, the European Commission conducts trade negotiations. It normally negotiates trade agreements with non-EU countries on the basis of a mandate granted by the Council.

However, the second part is incorrect. The European Council does not exercise legislative functions. It defines the EU’s general political direction and priorities. Legislative functions are exercised jointly by the European Parliament and the Council of the European Union. Therefore, the statement as a whole is incorrect.

Statement 2 is also incorrect because it reverses the composition of the institutions.

The European Council comprises:

  • the Heads of State or Government of all EU member states;

  • the President of the European Council; and

  • the President of the European Commission.

The European Commission, by contrast, consists of a College of Commissioners. Under the present arrangement, there is one Commissioner from each EU member country. The European Council proposes the candidate for Commission President, who is elected by the European Parliament. The Commission as a whole is subsequently subject to the Parliament’s approval.

Key institutional distinction:

  • European Council: sets the EU’s overall political direction and priorities; it does not legislate.

  • Council of the European Union: consists of national ministers and performs legislative and budgetary functions jointly with the European Parliament.

  • European Commission: proposes legislation, implements EU policies and conducts authorised international trade negotiations.

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