The Community Method and the European Commission As Agenda Setter
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The Community Method and the European Commission as Agenda Setter Maria Amélia Valle-Flor Research Paper submitted to the Development Studies Research Seminar Spring 2012 16th April 2012 PDED-WP03/2012 ISEG/UTL, Doutoramento em Estudos de Desenvolvimento PhD in Development Studies THE COMMUNITY METHOD AND THE EUROPEAN COMMISSION AS AGENDA- SETTER Abstract Although the Community method is still the main decision-making procedure in the European Union, the European Commission´s monopoly power to initiate legislation has been sidelined. The Commission is no longer the main political initiator of the integration process as this role, in practice, has been largely taken over by the European Council. The aim of this working paper is to analyze the evolving nature of the European Commission in the decision-making process and its role as agenda-setter. Introduction The “Community method” describes a decision-making procedure that assigns particular roles to the European institutions and involves a particular kind of interaction between them. Corbett (2011) refers to the essence of the Community method as the interplay of an institution- the European Commission- charged with identifying the common interest and one composed of representatives of national governments- the European Council and the Council. In the absence of a precise definition of the concept1, the main elements of the Community method may be summarized as follows2: The sole right of the European Commission to initiate legislation; The co-decision power between the Council and the European Parliament; 1 The role for the institutions under the Community Method is summarized by the European Commission as: “The European Commission alone makes legislative and policy proposals; legislative and budgetary acts are adopted by the Council of Ministers and the European Parliament; and the European Court of Justice guarantees respect for the rule of law”(European Commission 2001). 2 This terminology was developed in the pre-Lisbon Treaty to distinguish the decision-making process in the then “first pillar” from that of in the “second and third pillar”. The Intergovernmental method refers to a decision making that lies outside the statutory approach provided for in the Treaty. It is being used as a more assertive political approach, namely by the European Council and the Council. A process, that alike the Community Method, refers to decisions taken by unanimity and where the European Parliament has a weaker role. 1 The use of qualified majority voting in the Council. According to Missiroli (2011) this template came to epitomize a form of “supranational” policy-making in which powers were transferred from the national to the EU level. The Treaty of Lisbon envisages the application of the ordinary legislative procedure (namely the aforementioned Community method) for all areas coming under EU competence. Over time, and over successive treaties, there has been a shift in favor of the more supranational procedures3. These reforms led to a reshuffle of power, either through the transfer of more competences to the EU level or through altered decision- making procedures at the EU level (Biesenbender 2011). Also the legislative decision- making, namely the co-decision procedure, has had a direct effect on the power of legislative initiative by the Commission and on how the Commission exercises that power. This working paper investigates the alleged limitations of the Community method, of which the Commission´s monopoly over legislative initiative, namely its role as agenda setter, is such a crucial element. In part 1 the evolution of legislative decision making in the EU is discussed. Drawing upon the rational model on agenda setting, the Commission´s role in initiating and preparing policy is presented in part 2. In part 3 the Commission´s positioning since the outbreak of the European sovereign debt crisis is briefly examined. This working paper attempts to determine whether the prerogatives of the Commission´s power of legislative initiative has been weakened in the past Treaty reforms and also since the wakening up of the European sovereign debt crisis. 1. Decision Making in the EU and the European Commission´s Power of Initiative The Treaties assign to the European Commission three main tasks, in order to pursue the general interest of the Community: 3 Garrett (1995) considers the EU´s legal system as the “clearest manifestation of burgeoning supranationalism”, as European law has “direct effect” in national jurisdictions. 2 1- the quasi-exclusive monopoly on legislative initiative, considered the core element of the Community method; 2- a role of “guardian of the treaties” aiming to ensure the enforcement of the Treaties and secondary legislation; 3- implementing legislation through the adoption of executive measures. Besides the Commission´s power of initiative, it also enjoys the formal powers to amend and withdraw proposals4. The power to amend is enshrined in the Treaties: “as long as the Council has not acted, the Commission may alter its proposal at any time during the procedures leading to the adoption of a Union act” (art 293 (2) TFEU) There is a broad consensus in the literature that the Commission´s formal and informal influence has declined by the introduction of the co-decision procedure- renamed ordinary legislative procedure- by the Treaty of Lisbon (art 294 TFEU) (Burns 2004, Ponzano et al 2012). To understand this fact it is important to revisit briefly the Commission´s evolving legislative role. The Treaty of Rome envisaged just one legislative procedure, the consultation procedure, according to which the European Parliament (EP) is only asked for a non- binding opinion and the Council is not obliged to take account of the European Parliament’s amendments5 (art 289 TFEU). According to this procedure, the decision- making process lies with the Commission, as initiator of the legislative process, and the Council, as the legislator of the Community system. The cooperation procedure established by the Single European Act of 1986 called for an initial legislative dialogue between the European Parliament and the Council and was the first step towards a modification of the inter-institutional dialogue. Under this procedure the Commission could see its proposal adopted by a qualified majority in the Council in order to secure its preferred outcome. The European Parliament had the power to propose amendments to the common position adopted by the Council. These amendments, if accepted by the Commission- then becoming part of the Commission´s 4 The Treaty sets out the limits for a proposal´s withdraw. The Commission´s last “political withdrawal” happened in 1994 (Ponzano et al 2012). 5 The European Parliament’s opinions were often not even read (Costa et al 2011, Burns 2004). 3 amended proposal- could be adopted by the Council by qualified majority voting, but rejected only by unanimity6. This procedure enabled the Members of the European Parliament (MEPs) to demonstrate their ability to play a constructive role in the decisional process (Costa et al 2011, Pollack 1999). The co-decision procedure was introduced by the Maastricht Treaty in 1992 and subsequently modified by the Amsterdam Treaty in 1997. Co-decision procedures are applied on almost 90% of all legislation (Kapoor 2011). 1.1 The co-decision procedure The positive experience of the cooperation procedure convinced the Member States’ representatives to agree to include in the Treaty of Maastricht (1992) the co-decision procedure which implies that the adoption of legislative acts is possible solely with the agreement of both the European Parliament and the Council (Costa et al 2011). The quasi-exclusive right of initiative7 conferred on the Commission by the Treaty drafters, lied on the fact that its legislative proposals would be based on the general interest of the Community. “The Commission represents the general interest and is equipped with the monopoly of initiate and powers to oversee implementation; Member States voice particular interests through their role as legislators in the Council and implementers of EU policy (…) one consequence is that decision making should protect smaller Member States against the dominance of one or several large Member States by giving the Commission the monopoly of initiative and by over representing smaller states in decision making” (Haas 1958:526-7). As Ponzano et al (2012) point out this is the main reason why the European Parliament, where the smaller Member States were not sufficiently represented to defend their interests, was not conceived as the initiator of the legislative process. The 6 The cooperation procedure was repealed by the Treaty of Lisbon. 7 These rights were conferred by the Treaty of Rome, which already provided some limited exceptions, regarding: customs duties, air and sea transports and statistics. These domains could be regulated at the initiative of a Single Member State. The Maastricht Treaty and the Lisbon Treaty provided new exceptions, namely those regarding the former second and third pillars. In these areas, both the European Commission and each Member State could submit proposals to the Council of Ministers. 4 authors refer also to the fact that the insertion of the co-decision procedure was a way to reply to the longstanding debate over the democratic deficit in the European Union: political outputs should be congruent with democratic inputs, meaning people affected by a policy should have a say in its formulation (Eilstrup-Sangiovanni et al 2006). While Liberal Intergovernmentalists like Moravcsik considered that, in the context of a multi- level system, “there is little evidence that the EU suffers from a fundamental democratic deficit” and that political authority should remain with the EU Member States (Moravcsik 2002), Pro-integrationists hold that one possible solution to the democratic deficit encompasses enhancing the powers of the European Parliament. In fact, through the introduction of co-decision, the European Parliament was given a role equal to that of the Council of Ministers.