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The Commission is not an all-powerful institution. Its proposals, actions and decisions are in various ways scrutinized, checked and judged by all of the other institutions, with the exception of the European Investment Bank. Nor does it take the main decisions on Union policies and priorities - this is the prerogative of the Council and, in some cases, of the European Parliament.
The classic description of the Commission´s role identifies three distinct functions:
initiating proposals for legislation;
guardian of the Treaties;
the manager and executor of Union policies and of international trade relationships.
Legislative Initiative
The legislative process begins with a Commission proposal - Community law cannot be made without one. In devising its proposals, the Commission has three constant objectives: to identify the European interest, to consult as widely as is necessary and to respect the principle of subsidiarity.
The European interest means that a legislative proposal reflects the Commission's judgement of what is best for the Union and its citizens as a whole, rather than for sectoral interests or individual countries.
Consultation is essential to the preparation of a proposal. The Commission is no ivory tower. It listens to governments, industry, trade unions, special interest groups and technical experts before completing its final draft.
Subsidiarity is enshrined in the Treaty on European Union and is applied by the Commission in such a way as to ensure that the Union takes action only when it will be more effective than if left to individual Member States.
Once the Commission has formally sent a proposal for legislation to the Council and the Parliament, the Union's law-making process is very dependent on effective cooperation between the three institutions.
The Commission does not have an exclusive right of initiative in the two areas of intergovernmental cooperation covered by the Treaty on European Union - Common Foreign and Security Policy and cooperation on Justice and Home Affairs. But it can submit proposals in the same way as national governments and it participates in discussions at all levels.
Guardian of the Treaties
It is the Commission's job to ensure that Union legislation is applied correctly by the Member States. If they breach their Treaty obligation, they will face Commission action, including legal proceedings at the Court of Justice.
In certain circumstances, the Commission can fine individuals, firms and organizations for infringing Treaty law, subject to their right to appeal to the Court of Justice. Illegal price-fixing and market-rigging cartel have been a constant object of its attention and the subject of very large fines. The Commission also maintains a close scrutiny over government subsidies to industry and certain kind of State aid must, by Treaty, receive its assent.
Manager and Negotiatior
The Commission manages the Union's annual budget (ECU 86 billion in 1996) which is dominated by farm spending allocated by the European Agricultural Guidance and Guarantee Fund and by the Structural Funds, designed to even out the economic disparities between the richer and poorer areas.
Its executive responsibilities are wide: it has delegated powers to make rules which fill in the details of Council legislation; it can introduce preventive measures for a limited period to protect the Community market from dumping by third countries; it enforces the Treaty´s competition rules and regulates mergers and acquisitions above a certain size.
The Union's effectiveness in the world is enhanced by the Commission's role as negotiator of trade and cooperation agreements with other countries, or groups of countries.
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