Explained: How powerful is the European Commission, what is its role in the India-EU deal?

India is going to sign the EU trade deal today.

European Commission President Ursula von der and European Council President Leon Antonio Costa are on a tour of India these days. Both these global personalities participated as chief guests of the Republic Day Parade on the path of duty. India is going to sign a trade deal with them today. When relations with America are going sour, a trade deal with the European Commission would mean building commercial relations with 27 countries simultaneously. It is not that India is not yet doing business with European countries, but this deal will become an integrated window and its wider impact can be seen in the coming days.

Come, let us try to know on the pretext of this famous trade deal, how powerful is this European Commission? What are his rights? What are the duties? How does it work and how do the Associate Member States support it?

In simple and concise words, the role of the European Commission is most important in the big trade agreement/free trade agreement (FTA) that is being discussed between India and the European Union (EU). The reason is that the system of EU is not like any single country, it is a group of 27 member countries, where many rights are shared and many rights are with the national governments. In such a situation, the EU negotiates as a block on issues like trade deals and these negotiations are usually led by the European Commission.

What is European Commission?

The European Commission is the chief executive organ of the EU. It prepares proposals for new policies and laws. Monitors compliance with those rules throughout the EU. Implements the EU budget and allocates funding/grants. It negotiates on behalf of the EU in many international agreements (especially trade), that is, this institution is at the center of both policy making and policy implementation. For this reason it is counted among the most influential institutions of the EU.

What is the biggest strength of the commission?

A special feature of the EU system is that the European Commission is the only institution that can formally propose new laws (legislative initiative) at the EU level. Then the European Parliament and the Council of the EU (ministers of member countries) discuss these proposals. Get the amendments done if necessary. Then give approval. This puts the Commission in a position to set the agenda on which subject the law will be made and in which direction – the initial drafting power remains with it. This is its structural strength.

Guardian of Treaties: Legal action if rules are not followed

The Commission is not just an organization that gives paper advice. If a member country does not follow EU rules and laws, the Commission can initiate legal proceedings against that country and the case can go to the Court of Justice of the EU. With this power the Commission gets the power of enforcement and this power makes it very effective in practice.

Budget and funding power

The Commission also plays a big role in preparing and implementing the EU’s annual budget. Parliament and the Council approve, but the implementation of the budget is under the supervision of the Commission. Where the money goes, the direction of the policy’s impact is also decided, hence the budget role is also a major source of power of the Commission.

Representation at global forums and negotiation of trade deals

The most well-known role of the Commission in the context of trade deals is that it negotiates many international agreements on behalf of the EU, i.e. a large part of the negotiating team, drafts, chapter-wise text, technical clauses etc. proceed through the Commission mechanism. But it is important to understand one important point here. The commission is very powerful, but cannot take decisions alone.

The structure of a trade deal generally works like this. Member countries (Council) give direction and mandate for negotiations. The commission negotiates on that basis. The final agreement requires approval/ratification in accordance with EU procedures. Often the consent of the Parliament is also decisive in this matter. This means that the commission is the engine of deal making, but the green signal goes through several institutional steps.

Political independence of the European Commission

The Commission is formally considered politically independent from the governments of the member states. In practice, there is definitely pressure and lobbying from national interests, but the institutional design is that the Commission gives priority to the common interest of the entire EU. This gives it a kind of special capability – which is especially visible in subjects like trade, competition policy and the single market.

Crackdown on Big Tech: The power of competition or antitrust

The European Commission has also become known for its tough stance on tech companies over the past few years, such as investigating and taking action in cases related to anti-competitive behavior or platform rules. Its message is that the Commission is not just a policy-maker but also a referee of the rules of the EU market. This power gives Europe the influence of a regulatory super-power at the global level.

What is the commission structure?

There are a total of 27 commissioners in the European Commission, i.e. one from each EU country. Above them is the President of the European Commission. The role of the President is broadly to manage the entire team i.e. the organization of the College of Commissioners. To decide which commissioner will get which portfolio. Important responsibilities such as leadership in setting the policy agenda and representing the Commission at major EU meetings are undertaken by the Commission President or a member nominated on his behalf. The President is often the visible face in the field on issues like trade deals. But a larger institutional-procedural structure is working behind it.

Why is there conflict in the EU model?

The EU model assumes that member states share their rights in certain areas for collective benefits—such as a common market, free movement, and trade negotiations as a block. But this very thing gives rise to criticism in many countries that Brussels is interfering too much. Britain’s exit from the EU (Brexit) was an example of this big debate scenario. In this background, the power of the European Commission sometimes becomes both an advantage and a challenge.

Then how powerful is the commission?

The European Commission is called powerful because it is the main source for proposing EU laws. Has the ability to enforce rules and take action on violations. Enacts the EU budget. Leads negotiations for the EU on issues such as trade. Regulatory/antitrust action can also affect global companies. But it is equally true that final decisions in the EU are often made through multi-level consensus. The commission alone does not decide everything. In the context of the India-EU trade deal, the Commission’s power is most visible in shaping the deal, while the final approval of the deal comes through the EU’s institutional process.

European Commission Vs Council Vs Parliament

• European Commission: Its job is to prepare proposals for new EU laws/policies, enforce rules, implement the budget, and negotiate trade deals. Its power sets the agenda—the initial draft often comes from here on which issue rules should be made.
• Council of the EU: Its work involves the concerned ministers of 27 countries together to approve and amend laws/policies. The strength is that the priorities and national interests of the governments of the member countries are most clearly visible here.
• European Parliament: The work of this organization is carried out by representatives elected by the public; Laws have to be debated, amended, voted on etc. Its strength is the center of democratic legitimacy; in many cases it is difficult to proceed without the consent of Parliament.
• European Council: The top leaders (Heads of State/Government) of EU countries together decide the major political direction. It builds political consensus at the top on the big picture and strategic priorities and this is its strength.

In short, the Commission negotiates the proposal, the Council and the Parliament together give political-legal approval to the deal.

How does an EU trade deal get passed?

• Agenda and goals set: There is debate in the EU as to what is required from the deal. Tariff cuts, access to services, investment protection, standards/regulations, supply chain etc.
• Mandate of Negotiation: Member states generally set the limits/goals of negotiations—how much leeway can be given on which issues.
• The commission negotiates: The European Commission holds chapter-by-chapter talks with technical teams, in which issues like goods, services, rules, dispute resolution etc. figure prominently in the discussion.
• Draft text final/political clearance: On major stuck issues, compromise is sought at the political level, sometimes through summits, sometimes through ministerial-level talks.
• Legal Scrubbing and Final Draft: The final document is made legally consistent so that there are no compliance issues later.
• Approval inside EU: Generally the role of the Council and the European Parliament is decisive. The national parliaments of the member countries may also play a role in some types of agreements.
• Implementation and Monitoring: Once the deal is implemented, the commission’s role comes into play again – compliance, deadlines, disputes, and review.

Commission is powerful, but not omnipotent

The European Commission is certainly powerful but not all powers are vested in it. Its role in initial conversation and adherence is huge. But there are limitations also. Because the final political approval sometimes depends on the Council/Parliament and sometimes on the domestic politics of the member countries.

Also read: First the journey, then the war. Who was the Pakistani who became the chief guest of Republic Day?