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Congressional Research Service 7-5700 www.crs.gov RS21998 Summary Between May 22 and May 25, 2014, the 28 member states of the European Union (EU) will hold elections for the next European Parliament (EP). The Parliament is a key EU institution that represents the citizens of the EU. It works closely with the two other main EU bodies, the European Commission (the EU's executive) and the Council of the European Union (also known as the Council of Ministers, in which the national governments of the EU's 28 member states are represented). Members of the European Parliament (MEPs) serve five-year terms, and have been directly elected since 1979. The next EP will have 751 seats. Once limited to being a consultative assembly, the EP has accumulated more power over time. Experts assert that the EU's latest effort at institutional reform—the Lisbon Treaty, which entered into force on December 1, 2009—has increased the relative power of the EP within the EU considerably. The EP now shares legislative power with the Council of Ministers in most policy areas, giving the EP the right to accept, amend, or reject the vast majority of EU laws (with some exceptions in areas such as tax matters or foreign policy). The Lisbon Treaty also gives the EP the power to decide on the allocation of the EU budget jointly with the Council, the right to approve or reject international agreements, and greater decision-making authority on trade-related issues. At the same time, some analysts contend that the EP still lacks the legitimacy of national parliaments and that many European citizens remain unaware of the EP's role within the EU. Members of the European Parliament (MEPs) are organized into political groups, which caucus according to political ideology rather than nationality. The EP's standing committees are key actors in the adoption of EU legislation, and EP delegations maintain international parliament-to-parliament relations. In the upcoming EP elections, anti-EU or "euroskeptic" political parties—which are predominantly nationalistic, populist, and on the far right of the political spectrum, although a few are on the left or far left—appear poised to make moderate to significant gains in several EU countries. As a result, some analysts suggest that they could alter the political composition of the next EP and have implications for the EU's legislative and policymaking processes over the next five years, especially if hardline elements are able to form a new political group. Other experts question the ability of these euroskeptic parties to forge a united front in a way that would significantly affect the functioning and character of the next EP. The EP has not been shy about exerting its new powers under the Lisbon Treaty, and in some areas, with implications for U.S. interests. For example, EP concerns about U.S. data privacy safeguards have complicated U.S.-EU negotiations in the past on several information-sharing agreements aimed at countering terrorism. Following the initial unauthorized disclosures in June 2013 of U.S. National Security Agency surveillance programs and subsequent allegations that U.S. intelligence agencies have monitored EU diplomatic offices and engaged in other surveillance activities in Europe, many analysts worry about whether future U.S.-EU information-sharing agreements will be able to secure the necessary EP approval. In addition, EP approval will ultimately be required to allow any eventual U.S.-EU agreement on a Transatlantic Trade and Investment Partnership (TTIP) to enter into force. Ties between the EP and the U.S. Congress are long-standing, and institutional cooperation currently exists through the Transatlantic Legislators' Dialogue (TLD). In light of the EP's growing role as an actor in the conduct of U.S.-EU relations, the EP and its activities may be of increasing interest to the 113th Congress. Also see CRS Report RS21372, The European Union: Questions and Answers, by Kristin Archick. Contents The European Parliament: A Key EU Institution 1 Role of the European Parliament 2 Legislative Process 2 Budgetary Process 3 Supervision and Oversight Responsibilities 4 Organization of the European Parliament 5 EP Elections 5 Political Groups 6 The EP President 10 Committees 10 Delegations 11 Administration 11 Location and Schedule 11 Languages 11 Growing Influence and Ongoing Challenges 12 The United States and the European Parliament 13 Implications of the EP's Evolution for U.S. Interests 13 Congress-Parliament Relations 16 Tables Table 1. Political Groups and Seats in the European Parliament: Results of the 2009 Election and Current Seat Allocations 7 Contacts Author Contact Information 17 The European Parliament: A Key EU Institution The European Parliament (EP) is a key institution of the European Union (EU). The EU is a political and economic partnership that represents a unique form of cooperation among its 28 member states. The EU is the latest stage of a process of European integration begun in the 1950s to promote peace and economic prosperity in Europe; the EU has been built through a series of binding treaties, and its members have committed to harmonizing laws and adopting common policies on an extensive range of issues. EU member states work together through common institutions to set policy and promote their collective interests. As the only EU institution that is directly elected, the European Parliament represents the citizens of the EU. Once limited to being a consultative assembly, the EP has accumulated more power over time. Successive EU treaties have enhanced the EP's role and responsibilities in an attempt to improve democratic accountability in the EU policymaking process. Experts assert that the EU's most recent treaty, the Lisbon Treaty—which took effect on December 1, 2009—has increased the relative power of the EP within the EU significantly. The Lisbon Treaty contains a wide range of internal reforms aimed at improving the effectiveness of the EU's governing institutions, increasing democratic transparency within the EU, and giving the EU a more coherent voice and identity on the world stage. Among other measures, the Lisbon Treaty strengthens the EP's role in the EU's legislative and budgeting processes, gives the EP the right to approve or reject international agreements, and bolsters the EP's decision-making authority on trade-related issues. Many Members of the European Parliament (MEPs) view the EP as one of the big "winners" of this latest round of EU institutional reform. The EP also works closely with the two other main EU institutions—the European Commission and the Council of the European Union (also known as the Council of Ministers). Despite the EP's growing power and influence, the EP is not widely considered a legislative body in the traditional sense because it cannot initiate legislation; that right rests largely with the Commission, which functions as the EU's executive. However, the EP shares the power to adopt most EU legislation jointly with the Council, composed of ministers of the 28 member states. Some analysts contend that the EP has a limited power of legislative initiative in that the EP can ask the Commission to introduce a legislative proposal, but others note that the Commission is not required to comply with the EP's request. Between May 22 and May 25, 2014, the 28 member states of the EU will hold elections for the next EP. The incoming EP will have 751 seats (down from the current Parliament's 766 seat count as a result of changes introduced by the Lisbon Treaty). Some analysts suggest that the recent rise of anti-EU or "euroskeptic" political parties in several EU member states may have significant implications for the upcoming EP elections and the composition of the next EP. Other EU Institutions The European Council brings together the Heads of State or Government of the member states and the President of the European Commission at least four times a year (in what are often termed "EU Summits"). It acts principally as a strategic guide and driving force for EU policy. The European Council is headed by a President, who serves as the coordinator and spokesman for the work of the 28 Heads of State or Government. The European Commission upholds the common interest of the Union as a whole. It is independent of the member states' national governments. As the EU's executive, the Commission has the sole right of legislative initiative in most cases and implements EU decisions and common policies. It also serves as the guardian of the EU's treaties, ensuring that member states adopt and abide by their provisions. The 28 Commissioners, one from each EU country, are appointed by agreement among the member states to five-year terms. One Commissioner serves as Commission President. Each of the other Commissioners holds a distinct portfolio (e.g., agriculture, energy, trade), similar to U.S. department secretaries and agency directors. The Council of the European Union (Council of Ministers) represents the national governments of the 28 member states. The Council enacts legislation based on proposals put forward by the Commission and agreed to (in most cases) by the Parliament; in some sensitive areas such as taxation and foreign policy, however, the Council retains decision-making authority. A minister from each country takes part in Council meetings, with participation configured according to the subject under consideration (e.g., agriculture ministers would meet to discuss farm subsidies). The Presidency of the Council rotates among the member states, changing every six months. The Court of Justice interprets EU law, and its rulings are binding. The Court of Auditors monitors the Union's financial management. A number of other advisory committees represent economic, social, and regional interests. Role of the European Parliament Legislative Process The role of the European Parliament in the legislative process has expanded steadily over time as the scope of EU policy has grown. Initially, the EP was limited to offering nonbinding opinions in a "consultation procedure." The EP began to gain more power to affect EU legislation in the "cooperation procedure" of the 1986 Single European Act. The introduction of the "co-decision procedure" in the Maastricht Treaty of 1992, however, significantly enhanced the EP's role in the EU's legislative process in some areas, especially those related to the EU's common internal market. In the "co-decision procedure," the EP and the Council of Ministers share legislative power and must both approve a Commission proposal for it to become EU law; through "co-decision," the EP has the right to accept, amend, or reject proposed EU legislation. The Amsterdam Treaty of 1997 extended the use of "co-decision" to many additional policy areas (ranging from the environment to social policy). As more decisions within the Council of Ministers have become subject to a complex majority voting system rather than unanimity to allow for greater speed and efficiency of decision-making, the Parliament's right of "co-decision" has come to be viewed as an increasingly important democratic counterweight at the European level to the Commission and Council. As noted above, the Lisbon Treaty strengthens the EP's responsibilities, especially in the EU's legislative process. It roughly doubles the Parliament's right of "co-decision" to almost 80 policy areas, including agriculture and justice and home affairs issues such as immigration and police cooperation. In doing so, the Lisbon Treaty gives the EP a say—equal to that of the member states in the Council of Ministers—over the vast majority of legislation passed in the EU. Tax matters, social security, and most aspects of foreign policy, however, are among the areas in which EU member states retain decision-making authority and to which the "co-decision procedure" does not apply. The Lisbon Treaty technically renames the "co-decision procedure" as the "ordinary legislative procedure," although the term "co-decision" continues to be used frequently in practice. The "Co-decision Procedure" The EU's "ordinary legislative procedure," or "co-decision," can be summarized as follows: (1) if Parliament and the Council of Ministers agree on a Commission proposal, it is approved; (2) if they disagree, the Council forms a common position; the EP can then either accept the Council's common position, or reject or amend it, by an absolute majority of its members; (3) if the Council cannot accept the EP's amendments, a conciliation meeting is convened, after which the EP and the Council approve an agreement if one can be reached. If they are unable to agree, the proposal is not adopted. Additionally, in the "consent procedure," the EP must, by a simple "yes" or "no" majority, approve the accession of new EU member states and the conclusion of agreements with third parties, such as association and trade agreements with nonmember states. If the Parliament does not give its consent, such agreements cannot enter into force. The EP may also issue nonbinding resolutions, subject to a simple majority. Budgetary Process The EP and the Council of Ministers together constitute the EU's budget authority and are responsible for allocating the EU's annual budget; they decide, for example, on the amount of funding dedicated to infrastructure as opposed to education. However, neither the EP nor the Council can affect the size of the EU's annual budget; that amount is fixed periodically by agreement among the EU's member states as a percentage of the Union's combined gross national income (GNI). The EU's 2014 budget is EUR 143 billion (roughly $195 billion) in commitments and EUR 136 billion (or $186 billion) in payments. With the entrance into force of the Lisbon Treaty, the Parliament has the right to decide on the allocation of the entire EU budget jointly with the Council. Previously, the EP had the last word on "noncompulsory" expenditures, such as development aid, but the Council had the final say on "compulsory" expenditures, such as spending related to agriculture or international agreements. The Lisbon Treaty eliminates the distinction between "compulsory" and "noncompulsory" expenditures. Of particular importance, the EP gains more control over agricultural spending, which usually accounts for over one-third of the EU's annual budget. Under the Lisbon Treaty, the EU's annual budgetary procedure begins with the Commission proposing a draft budget. The Council adopts its position on the draft budget, including any amendments, and sends it to the EP for its consideration. The Parliament then has 42 days to either approve the draft budget or amend it and send it back to the Council. If the Council agrees with the EP's amendments, the budget is adopted; if the Council disagrees with the EP's changes, a Conciliation Committee is convened to resolve differences and reach agreement on a joint text within 21 days. The joint text must then be approved by both the Council and the EP; however, if the joint text is rejected by the Council, the EP—subject to certain conditions—ultimately has the right to approve the budget. In the event that both the EP and the Council reject the joint text or fail to decide, the Commission must submit a new draft budget. Some EP advocates assert that the EP's position in the annual budgetary process is now stronger than that of the Council, as the Council may never impose a budget against the will of the EP, but under some circumstances, the EP may impose a budget against the will of the Council; at the same time, most experts agree that in practice, the EP would likely only exert this right in exceptional situations. In determining the EU's annual budget, the EP and the Council must also adhere to annual spending limits laid out in the EU's multi-annual financial framework, which defines the long-term political priorities for the EU and sets annual maximum amounts for each priority and expenditure category. According to the Lisbon Treaty, the Council must agree unanimously on each multiannual financial framework, after having obtained the Parliament's consent. As such, the Parliament has a degree of input into the EU's overall budgetary direction and the ability to help shape the EU budget to reflect its own political priorities. In addition, the EP examines the European Commission's implementation of previous annual budgets through the "discharge procedure." In order to close the budget books of a given year, the EP must vote to grant "discharge" based on reports of the EU Court of Auditors and a recommendation of the Council. With its decision, the EP also presents the Commission with binding recommendations and observations regarding implementation of the budget. The EP's budgetary powers are considerably greater than those exercised by most parliaments in EU member states. Supervision and Oversight Responsibilities The Parliament has a supervisory role over the European Commission and exercises some limited oversight over the activities of the Council of Ministers. The EP monitors the management of EU policies, can conduct investigations and public hearings, and may submit oral and written questions to the Commission and the Council. The Presidency of the Council, which rotates among the member states every six months, presents its program to the Parliament at the beginning of its term and reports on results achieved at the end of its mandate. Of particular note, the EP plays a role in the approval process of each new Commission and Commission President every five years. According to the Lisbon Treaty, the member states agree together (usually during a meeting of the European Council) by unanimous consent on who to designate as the Commission President, and their selection must take into account the results of the most recent EP elections. Thus, the relative strengths of the political groups in the EP can affect who is nominated by the member states to this post. For the first time, five of the EP's main political groups have nominated candidates for the next Commission President ahead of the upcoming EP elections in May 2014. Many hope that this will help to improve voter turnout by establishing a "concrete and visible" link between voting in the elections and having a say in determining the future President of the European Commission, thereby also enhancing the EU's democratic legitimacy. Once a nominee is chosen by the member states to be the next Commission President, he or she then must be "elected" by a majority vote in the EP. Some analysts note that this "election" procedure is also largely intended to raise public awareness of the importance of EP elections and the EP's role in choosing the Commission President; in practice, they assert, it differs very little from the previous parliamentary "approval" process. For example, in both 2004 and 2009—that is, before the Lisbon Treaty's entrance into force—the EP's strongest political group successfully demanded that the Commission President be of the same political stripe. At the same time, given that no single political group in the EP has ever held a majority on its own, the support of other political groups has always been needed in order to approve the nomination. In September 2009, the EP supported the re-appointment of 2004-2009 Commission President José Manuel Barroso for the 2009-2014 term (by a vote of 382 to 219, with 117 abstentions). Beyond its role in approving the Commission President, the EP also has the power to accept or reject a newly proposed Commission as a whole, but not individual nominees. The next European Commission is scheduled to take office on November 1, 2014. Since 1995, the EP has held U.S. Senate-style confirmation hearings for newly designated Commissioners, who are nominated by the member states. In February 2010, the EP voted to approve the so-called Barroso II Commission for the term ending in 2014. Although a new Commission was supposed to have been in place by November 2009, it was held up because of delays in the ratification of the Lisbon Treaty by some member states. The confirmation process for the new Commission was further slowed when the initial Bulgarian nominee withdrew her candidacy in mid-January 2010 after a contentious hearing before the Parliament amid concerns about her past financial dealings and her competence for her portfolio. A similar situation occurred in 2004, when the EP essentially forced the original Italian nominee to the Commission to withdraw due to concerns about his views on homosexuality and women's rights. Some observers view these episodes as signs of the EP's growing confidence and institutional clout. In addition, the EP may dismiss the entire Commission (although, again, not individual Commissioners) through a vote of censure. To date, the EP has never adopted a motion of censure. However, in 1999, the entire Commission opted to resign rather than face a formal censure by the EP over alleged corruption charges. Organization of the European Parliament EP Elections Members of the European Parliament serve five-year terms, and have been directly elected since 1979. Voting for the EP takes place on a national basis, with the number of MEPs elected in each country based roughly on population size. Germany, for example, has the largest number of MEPs (99 in the current Parliament), while Cyprus, Estonia, Luxembourg, and Malta have the fewest (with 6 each). The last EP elections were held on June 4-7, 2009. Roughly 375 million European citizens were eligible to cast a ballot in 2009. In EP elections, EU citizens may vote or run for a seat in their country of residence, without necessarily holding citizenship in that country. Turnout has declined in every EP election, from an average of 63% in 1979 to a new low of 43% in 2009. (Voter turnout varies greatly from one EU member state to another, however, from around 90% in EU countries where it is mandatory to 20% or lower in others.) Although the average percentage is comparable to turnout in U.S. mid-term elections, some analysts contend that relatively low voter participation compared to European national elections indicates a lack of awareness and understanding about the EP. As noted previously, the next EP elections will be held May 22-25, 2014, with 751 seats at stake. Many observers suggest that the recent rise of anti-EU or "euroskeptic" political parties in several EU member states may have significant implications for the upcoming EP elections and the composition of the next Parliament. Most of these parties are nationalistic, populist, and far right in political orientation—although a few are on the left or far left—and have been gaining traction in several EU countries, including Austria, Denmark, Finland, France, Greece, Hungary, Italy, the Netherlands, Sweden, and the United Kingdom. Their ascendancy has been fueled by a combination of factors, including Europe's financial crisis and economic downturn; fears about immigration, globalization, and lost national identities; and concerns in some member states about the continued relinquishing of national sovereignty to the EU. Although there is a wide range of euroskeptic parties—from those that advocate an end to the EU and/or the Eurozone to others that seek to reform the Union into a looser entity in which member states would retain greater sovereignty—some analysts estimate that euroskeptic parties combined could make up to 20% of the next EP. Political Groups Once elected, Members of the European Parliament caucus according to transnational groups based on political ideology, rather than by nationality. A political group must consist of at least 25 MEPs from a minimum of seven EU member states. The current EP currently has seven political groups—containing over 100 individual political parties—plus a number of "nonattached" or independent members. Membership in a political group gives MEPs more influence, as groups receive funding from the EP and more speaking time than do nonattached members. The relative size of the political groups helps to determine EP leadership positions and committee posts. The chair or cochairs of each political group also has voting rights in the Conference of Presidents, the political body in Parliament that manages the EP's internal organization. Prior to EP legislative votes, MEPs within each group study the legislative proposals in question with the support of committee reports, discuss prospective amendments, and seek to arrive at a consensus group position. However, individual MEPs are not bound to vote according to their group's position. Table 1. Political Groups and Seats in the European Parliament: Results of the 2009 Election and Current Seat Allocations (adjustments reflect the addition of new MEPs in 2011 and 2013) 2009 Election Results Current Seat Allocations European People's Party [Christian Democrats] (EPP; center-right) 265 274 Progressive Alliance of Socialists and Democrats in the European Parliament (S&D; center-left/socialists) 184 196 Alliance of Liberals and Democrats for Europe (ALDE; centrist/liberals) 84 83 Greens/European Free Alliance (Greens-EFA; greens and regionalists) 55 57 European Conservatives and Reformists (ECR; right-wing, anti-federalist) 54 57 European United Left/Nordic Green Left (GUE-NGL; far-left and former communists) 35 35 Europe of Freedom and Democracy (EFD; far-right/euroskeptics) 32 31 Nonattached members 27 33 Total Number of Seats in the EP 736 766 Sources: http://www.europarl.europa.eu/parliament/archive/elections2009/en/index_en.html; http://www.europarl.europa.eu/meps/eu/search.html. As no single group has ever held an absolute majority in the European Parliament, compromise and coalition-building are important elements of the legislative process. Some analysts assert that distinct ideological definitions between groups are becoming more complicated, as voting blocs form increasingly according to specific issues and interests. Nevertheless, the two largest groups have tended to dominate the Parliament historically. In the 2009 elections, the Group of the European People's Party [Christian Democrats] (EPP) retained its position as the largest political group in the EP. The EPP is center-right in political orientation. In relative terms, the strength of the EPP in the 2009 elections increased significantly due to a sizeable drop in support for center-left parties. Although circumstances and issues differed in each EU member state, some analysts interpreted these results as indicating greater public preference for the approaches of conservative and center-right parties in handling the global financial crisis and recession. However, the center-left Group of the Progressive Alliance of Socialists and Democrats in the European Parliament (S&D) remained the EP's second-largest political group following the 2009 elections. The EPP and the S&D have a history of cross-ideological legislative partnership. As in the 2004-2009 EP (in which the S&D was called the PES—the Socialist Group in the European Parliament), the two parties have continued to cooperate closely in an unofficial "grand coalition" and together frequently shape politics in the EP. Critics argue that the consensus-seeking of the "grand coalition" makes politics in the EP stale and paradoxical. Other observers note that maximizing consensus and unity lends the EP greater institutional weight. As a general rule, most MEPs prefer consensus outcomes that are endorsed by a large and broad majority. The third-largest group in the current EP is the Group of the Alliance of Liberals and Democrats for Europe (ALDE). ALDE is centrist and liberal in political orientation (in European political terminology, "liberal" connotes an emphasis on free market economics, individual rights, social equality, and de-centralized government). In the past, ALDE was viewed as the "kingmaker," able to exercise a decisive swing vote for a majority in the EP. However, as a result of some losses suffered by ALDE in the 2009 elections and the shift of the political balance in the EP largely to the right, some analysts assert that ALDE's political capital has decreased. Other observers contend that as the third-largest group, ALDE's position on a given issue has still been a crucial factor in the outcome of many EP votes. The remaining four political groups in the current EP are smaller in size. On the left side of the political spectrum are the Group of the Greens/European Free Alliance (Greens-EFA); and the Confederal Group of the European United Left/Nordic Green Left (GUE-NGL). The Greens-EFA is largely comprised of numerous European Green parties—leftist in political orientation with a strong emphasis on pro-environment politics and human rights—and several regional parties (e.g., Scottish, Welsh, Basque, and Catalonian) with a leftist or center-left outlook. Despite the overall trend in the EP to the right in the 2009 elections, the Greens-EFA attracted many voters who sought change, resulting in a significant increase in the number of their seats. The GUE-NGL consists of parties that are even farther left in orientation; some have a Green emphasis while others have roots in communism. The GUE-NGL is pro-EU and pro-integration, but strongly critical of existing EU structures, policies, and overall direction. On the right side of the political spectrum are two groups formed following the 2009 election: the European Conservatives and Reformists Group (ECR); and the Europe of Freedom and Democracy Group (EFD). The ECR came into existence after the UK Conservative Party broke with the EPP amid growing unease with the EPP's support for continued EU integration. The ECR is right-wing in political orientation, concerned about the loss of national sovereignty in the EU, and opposed to a federal Europe. Even farther to the right is the EFD, composed of euroskeptics and critics of the EU who strongly oppose further European integration. Many of the "nonattached" or independent members in the current EP hail from far-right extremist parties, which made gains in the 2009 EP elections in a number of countries, such as Austria, Hungary, and the Netherlands. However, these far-right MEPs hold a relatively small number of seats in the current Parliament and appear to have little cohesion among themselves. Analysts note that they have been unable to form a political group and, as a result, their impact in the current EP has been minimal. Composition of Political Groups in the Current European Parliament European People's Party (EPP). The center-right EPP contains MEPs from Germany's Christian Democratic/Christian Social Union (CDU-CSU), France's Union pour un Mouvement Populaire (UMP), Spain's Partido Popular (PP), Italy's People of Freedom, Poland's Civic Platform, and numerous other Christian Democratic, conservative, center-right, and centrist national parties. The chair of the EPP is French MEP Joseph Daul. Progressive Alliance of Socialists and Democrats in the European Parliament (S&D). The center-left S&D includes MEPs from Germany's Social Democratic Party (SPD), France's Socialist Party, the UK Labour Party, Spain's Socialist Party, and numerous other Socialist, Social Democratic, and center-left parties. The chair of S&D is Austrian MEP Hannes Swoboda. Alliance of Liberals and Democrats for Europe (ALDE). MEPs in the centrist ALDE hail from the UK Liberal Democrats Party, Germany's Free Democrat Party (FDP), and Ireland's Fianna Fail. The chair of ALDE is Belgian MEP (and former Belgian Prime Minister) Guy Verhofstadt. Greens/European Free Alliance (Greens-EFA). The leftist and pro-environment Greens-EFA includes MEPs from Germany's Alliance 90/The Greens, France's Europe Ecologie, and the Scottish National Party. The cochairs of the Greens-EFA are French MEP Daniel Cohn-Bendit and German MEP Rebecca Harms. European Conservatives and Reformists (ECR). The right-wing ECR includes MEPs from the UK Conservative Party, Poland's Law and Justice Party, and the Czech Republic's Civic Democratic Party. The chair of ECR is UK MEP Martin Callanan. European United Left/Nordic Green Left (GUE-NGL). The far-left GUE-NGL contains MEPs from Germany's Die Linke, the French Communist Party, the Portuguese Communist Party, and the all-Ireland party Sinn Fein. The chair of GUE-NGL is German MEP Gabriele Zimmer. Europ