European Institutions
Complete Exam Notes
Based on course slides (Ann Pauwels) — Chapters 1–5, incl. all subtopics 5.1–5.5, plus
practice questions
Exam format: 40 MCQs, closed-book, no negative marking for guessing. Must answer more than half
of questions to score half the points. Pass mark: 25/40 = 10/20.
Chapter 1 — General & Practical Information
• Objective: familiarize (business) students with the European environment in which companies
operate.
• Course content structure:
◦ 1. General and practical information
◦ 2. Historical overview of the EU
◦ 3. The institutions of the EU
◦ 4. Policy-making in the EU
◦ 5. EU policy:
▪ 5.1 The internal (single) market
▪ 5.2 The competition policy of the EU
▪ 5.3 The economic and monetary union (EMU)
▪ 5.4 The external relations of the EU
▪ 5.5 Justice and home affairs (JHA)
• Compulsory material: slides (Toledo) + Cini & Pérez-Solórzano Borragán, European Union Politics
(OUP, 8th ed. 2025).
• Evaluation: written, closed-book exam, multiple choice questions.
• No correction for guessing, BUT students must answer more than half the questions correctly to
score half of the points.
• Exam is 40 MCQs; pass mark is 25/40 correct = 10/20 (an increased/raised cut-off).
• Slides list the exam date as 15 January 2026 (first sitting) — if you’re resitting, confirm your
actual resit date with the course administration rather than relying on this.
• Learning outcomes: understand the functioning of EU institutions, the major EU policy areas and
their business impact, the European environment for (multinational) companies, and be able to
analyse current European issues.
,Chapter 2 — Historical Overview of European Integration
2.1 Basic concepts: Supranational vs. Intergovernmental
• SUPRANATIONAL organization: a union in which member states transfer authority/sovereignty
on at least some matters to an independent body; decisions are binding on members, even
without the consent of every state on every decision.
• Examples of supranational EU institutions: European Commission (executive engine, proposes &
enforces law) and, in the legislative process, the European Parliament (co-legislates, represents
citizens directly). The Court of Justice is also supranational (its rulings bind all Member States).
• INTERGOVERNMENTAL organization: formal body created by two or more states via
treaty/agreement to cooperate on shared interests; states keep full sovereignty; decisions
typically need unanimity (each state can veto).
• Example of an intergovernmental EU body: the Council of the European Union (Council of
Ministers) — represents national governments.
• Other examples of purely intergovernmental organizations (NOT part of the EU): NATO, the
Council of Europe, OECD, IMF.
• KEY EXAM TRAP: 'Council of Europe' ≠ 'European Council' ≠ 'Council of the EU'. The Council of
Europe is a separate, older (1949), intergovernmental human-rights organization (47
members, home of the European Court of Human Rights in Strasbourg) — it is NOT an EU
institution and does not define EU political direction.
• The EU itself is a hybrid: it combines supranational features (competition policy, single market,
CJEU) with intergovernmental decision-making in sensitive areas (foreign policy, defence,
taxation).
2.2 After WWII: first steps to cooperation
• Organization for European Economic Co-operation (OEEC), 1948: coordinate European economic
recovery; distribute U.S. Marshall Plan aid (1948–1952). Intergovernmental.
• Council of Europe, 1949: promote unity/cooperation based on rule of law and human rights;
members kept full sovereignty; cannot make binding EU-style law but enforces the European
Convention on Human Rights via the European Court of Human Rights. Intergovernmental; NOT
an EU body.
• NATO, 1949: military alliance / collective self-defence organization; members kept full
sovereignty. Intergovernmental.
2.3 The 1950s: first steps in the (supranational) integration process
• European Coal and Steel Community (ECSC) — Treaty of Paris, 1951: 6 founding states (Belgium,
France, Germany, Italy, Luxembourg, Netherlands) transferred administration of their coal &
steel industries to an independent supranational institution. Goal: modernize production, boost
supply, and — crucially — make war between France and Germany materially impossible.
• European Defence Community (EDC), 1952: proposed integration of armed forces under
supranational command — FAILED, France refused to ratify (fear of loss of sovereignty/national
army, distrust).
• Western European Union (WEU), 1954: intergovernmental alternative to the failed EDC, based
on collective self-defence (Treaty of Brussels).
• Treaties of Rome, 1957: created the European Economic Community (EEC) and European Atomic
Energy Community (EURATOM). Goal: promote economic integration via a common market and
, common competition, agricultural, commercial and transport policy. Built on ECSC principles,
with adjustments.
2.4 1960s–1980s
• 1960s — integration in crisis: France's 'empty chair' policy (1965) — France boycotted Council
meetings to resist more supranational (majority) decision-making, leading to the Luxembourg
Compromise (de facto veto for 'vital national interests').
• 1970s: start of European political and monetary cooperation (European Political Cooperation;
European Monetary System groundwork).
• 1980s — new impetus: Single European Act (SEA), 1986 — first real revision of the Treaty of
Rome:
◦ Institutionalized European Political Co-operation (foreign policy coordination)
◦ New impulse for economic integration: complete the internal market by 31 December 1992
◦ Increased European Parliament involvement (introduced the cooperation procedure)
◦ Introduced Qualified Majority Voting (QMV) in the Council for most single-market measures
(speeding up decision-making)
2.5 The 1990s: establishment of the European Union
• Treaty of Maastricht (Treaty on European Union), 1992 — created the EU with a THREE-PILLAR
structure:
◦ Pillar 1 — European Community (ECSC, EEC, EURATOM) — SUPRANATIONAL: enlarged
competences (EMU, social policy, education, culture...); extended QMV in Council; extended
EP powers via the new co-decision procedure.
◦ Pillar 2 — Common Foreign and Security Policy (CFSP) — INTERGOVERNMENTAL.
◦ Pillar 3 — Justice and Home Affairs (JHA) cooperation — INTERGOVERNMENTAL.
• EXAM KEY POINT: Maastricht established the EU itself and paved the way for the single currency
(the euro) — this is its best-known achievement (NOT the first enlargement, NOT the legal basis
of competition policy, NOT the creation of the EP, which already existed).
2.6 Treaty of Amsterdam (1997)
• Pillar 3 renamed: 'Police and Judicial Co-operation in Criminal Matters' (parts of the old third
pillar were 'communitarized' — moved into Pillar 1).
• The Schengen acquis was incorporated into EU law.
2.7 New millennium: preparing enlargement
• Treaty of Nice (2001): partial institutional reform in view of the big Eastern enlargement.
• Treaty Establishing a Constitution for Europe (2004): rejected in referendums in France and the
Netherlands — never entered into force.
• Treaty of Lisbon (Reform Treaty, 2007, in force 2009):
◦ Kept most institutional innovations agreed in the failed Constitution
◦ Consists of two treaties: the Treaty on European Union (TEU) and the Treaty on the
Functioning of the EU (TFEU)
◦ ABOLISHED the three-pillar structure
Complete Exam Notes
Based on course slides (Ann Pauwels) — Chapters 1–5, incl. all subtopics 5.1–5.5, plus
practice questions
Exam format: 40 MCQs, closed-book, no negative marking for guessing. Must answer more than half
of questions to score half the points. Pass mark: 25/40 = 10/20.
Chapter 1 — General & Practical Information
• Objective: familiarize (business) students with the European environment in which companies
operate.
• Course content structure:
◦ 1. General and practical information
◦ 2. Historical overview of the EU
◦ 3. The institutions of the EU
◦ 4. Policy-making in the EU
◦ 5. EU policy:
▪ 5.1 The internal (single) market
▪ 5.2 The competition policy of the EU
▪ 5.3 The economic and monetary union (EMU)
▪ 5.4 The external relations of the EU
▪ 5.5 Justice and home affairs (JHA)
• Compulsory material: slides (Toledo) + Cini & Pérez-Solórzano Borragán, European Union Politics
(OUP, 8th ed. 2025).
• Evaluation: written, closed-book exam, multiple choice questions.
• No correction for guessing, BUT students must answer more than half the questions correctly to
score half of the points.
• Exam is 40 MCQs; pass mark is 25/40 correct = 10/20 (an increased/raised cut-off).
• Slides list the exam date as 15 January 2026 (first sitting) — if you’re resitting, confirm your
actual resit date with the course administration rather than relying on this.
• Learning outcomes: understand the functioning of EU institutions, the major EU policy areas and
their business impact, the European environment for (multinational) companies, and be able to
analyse current European issues.
,Chapter 2 — Historical Overview of European Integration
2.1 Basic concepts: Supranational vs. Intergovernmental
• SUPRANATIONAL organization: a union in which member states transfer authority/sovereignty
on at least some matters to an independent body; decisions are binding on members, even
without the consent of every state on every decision.
• Examples of supranational EU institutions: European Commission (executive engine, proposes &
enforces law) and, in the legislative process, the European Parliament (co-legislates, represents
citizens directly). The Court of Justice is also supranational (its rulings bind all Member States).
• INTERGOVERNMENTAL organization: formal body created by two or more states via
treaty/agreement to cooperate on shared interests; states keep full sovereignty; decisions
typically need unanimity (each state can veto).
• Example of an intergovernmental EU body: the Council of the European Union (Council of
Ministers) — represents national governments.
• Other examples of purely intergovernmental organizations (NOT part of the EU): NATO, the
Council of Europe, OECD, IMF.
• KEY EXAM TRAP: 'Council of Europe' ≠ 'European Council' ≠ 'Council of the EU'. The Council of
Europe is a separate, older (1949), intergovernmental human-rights organization (47
members, home of the European Court of Human Rights in Strasbourg) — it is NOT an EU
institution and does not define EU political direction.
• The EU itself is a hybrid: it combines supranational features (competition policy, single market,
CJEU) with intergovernmental decision-making in sensitive areas (foreign policy, defence,
taxation).
2.2 After WWII: first steps to cooperation
• Organization for European Economic Co-operation (OEEC), 1948: coordinate European economic
recovery; distribute U.S. Marshall Plan aid (1948–1952). Intergovernmental.
• Council of Europe, 1949: promote unity/cooperation based on rule of law and human rights;
members kept full sovereignty; cannot make binding EU-style law but enforces the European
Convention on Human Rights via the European Court of Human Rights. Intergovernmental; NOT
an EU body.
• NATO, 1949: military alliance / collective self-defence organization; members kept full
sovereignty. Intergovernmental.
2.3 The 1950s: first steps in the (supranational) integration process
• European Coal and Steel Community (ECSC) — Treaty of Paris, 1951: 6 founding states (Belgium,
France, Germany, Italy, Luxembourg, Netherlands) transferred administration of their coal &
steel industries to an independent supranational institution. Goal: modernize production, boost
supply, and — crucially — make war between France and Germany materially impossible.
• European Defence Community (EDC), 1952: proposed integration of armed forces under
supranational command — FAILED, France refused to ratify (fear of loss of sovereignty/national
army, distrust).
• Western European Union (WEU), 1954: intergovernmental alternative to the failed EDC, based
on collective self-defence (Treaty of Brussels).
• Treaties of Rome, 1957: created the European Economic Community (EEC) and European Atomic
Energy Community (EURATOM). Goal: promote economic integration via a common market and
, common competition, agricultural, commercial and transport policy. Built on ECSC principles,
with adjustments.
2.4 1960s–1980s
• 1960s — integration in crisis: France's 'empty chair' policy (1965) — France boycotted Council
meetings to resist more supranational (majority) decision-making, leading to the Luxembourg
Compromise (de facto veto for 'vital national interests').
• 1970s: start of European political and monetary cooperation (European Political Cooperation;
European Monetary System groundwork).
• 1980s — new impetus: Single European Act (SEA), 1986 — first real revision of the Treaty of
Rome:
◦ Institutionalized European Political Co-operation (foreign policy coordination)
◦ New impulse for economic integration: complete the internal market by 31 December 1992
◦ Increased European Parliament involvement (introduced the cooperation procedure)
◦ Introduced Qualified Majority Voting (QMV) in the Council for most single-market measures
(speeding up decision-making)
2.5 The 1990s: establishment of the European Union
• Treaty of Maastricht (Treaty on European Union), 1992 — created the EU with a THREE-PILLAR
structure:
◦ Pillar 1 — European Community (ECSC, EEC, EURATOM) — SUPRANATIONAL: enlarged
competences (EMU, social policy, education, culture...); extended QMV in Council; extended
EP powers via the new co-decision procedure.
◦ Pillar 2 — Common Foreign and Security Policy (CFSP) — INTERGOVERNMENTAL.
◦ Pillar 3 — Justice and Home Affairs (JHA) cooperation — INTERGOVERNMENTAL.
• EXAM KEY POINT: Maastricht established the EU itself and paved the way for the single currency
(the euro) — this is its best-known achievement (NOT the first enlargement, NOT the legal basis
of competition policy, NOT the creation of the EP, which already existed).
2.6 Treaty of Amsterdam (1997)
• Pillar 3 renamed: 'Police and Judicial Co-operation in Criminal Matters' (parts of the old third
pillar were 'communitarized' — moved into Pillar 1).
• The Schengen acquis was incorporated into EU law.
2.7 New millennium: preparing enlargement
• Treaty of Nice (2001): partial institutional reform in view of the big Eastern enlargement.
• Treaty Establishing a Constitution for Europe (2004): rejected in referendums in France and the
Netherlands — never entered into force.
• Treaty of Lisbon (Reform Treaty, 2007, in force 2009):
◦ Kept most institutional innovations agreed in the failed Constitution
◦ Consists of two treaties: the Treaty on European Union (TEU) and the Treaty on the
Functioning of the EU (TFEU)
◦ ABOLISHED the three-pillar structure
