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Viewing cable 09BRUSSELS108, INTRODUCING THE EU IV: THE JUDICIAL, FINANCIAL, SUPERVISORY

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Reference ID Created Released Classification Origin
09BRUSSELS108 2009-01-27 15:39 2011-08-24 01:00 UNCLASSIFIED USEU Brussels
VZCZCXRO6238
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHBS #0108/01 0271539
ZNR UUUUU ZZH
R 271539Z JAN 09 ZDK
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 07 BRUSSELS 000108 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV EINV EUN PTER KTFN KJUS PTER UNSC IR
SUBJECT: INTRODUCING THE EU IV: THE JUDICIAL, FINANCIAL, SUPERVISORY 
AND ADVISORY BODIES 
 
REFS:(A) 2008 BRUSSELS 1790; (B) 2008 BRUSSELS 1825; 
(C))2008 BRUSSELS 1880; (D) 2007 BRUSSELS 3488;          (E) 2008 
BRUSSELS 303;  (F) 2008 BRUSSELS 397; (G) 2008 BRUSSELS 812 
 
SUMMARY AND INTRODUCTION 
------------------------ 
 
1.  In addition to its core policy and law-making institutions (the 
Commission, Council and European Council, and European Parliament - 
see REFs B and C), the EU institutional system also includes several 
other bodies with judicial, monetary, financial, supervisory or 
advisory functions.  Among these institutions, which ensure a smooth 
functioning of the EU apparatus, are: 
 
-- The Court of Justice of the European Communities, the supreme 
judicial institution of the EU.  The Court, usually referred to as 
the European Court of Justice (ECJ), is assisted by its junior 
tribunal, the Court of First Instance (CFI), and a Civil Service 
Tribunal.  Its basic role is to ensure that EU law is interpreted 
and applied uniformly throughout the EU and in conformity with the 
treaties; 
 
-- The European Central Bank (ECB), the monetary authority of the 
euro area covering the EU countries that have adopted the single 
currency; 
 
-- The European Investment Bank (EIB), a major source of financing 
for economic development in EU and non-EU countries; 
 
-- The European Court of Auditors, the watchdog of EU finances; 
 
-- The European Economic and Social Committee (EESC), an advisory 
body and forum for civil society (labor, employers, and various 
interests), and the Committee of the Regions (CoR) advising on EU 
policies pertaining to regional interests. 
 
2.  This message - the fourth in a series updating our previous EU 
101 cables - is meant to help officers in positions requiring a good 
knowledge and understanding of the EU machinery.  Other cables in 
this series discuss the history of the European Union (REF. A); the 
chief political institutions (Commission, Council and Parliament - 
REF. B), the Presidency and the European Council (REF. C); the EU 
pillar structure and decision-making procedures; the enlargement 
process; and EU-U.S. cooperation under the Transatlantic dialogue. 
End Summary and Introduction. 
 
THE COURT OF JUSTICE AND ITS JUNIOR TRIBUNALS 
--------------------------------------------- 
 
3.  Based in Luxembourg, the Court of Justice of the European 
Communities, usually called the European Court of Justice (ECJ), is 
the supreme judicial authority of the EU apparatus.  It should not 
be confused with the International Court of Justice in The Hague or 
the European Court for Human Rights in Strasbourg, both of which are 
not directly part of the EU institutional system.  (Note: If the 
Treaty of Lisbon is implemented, the EU as such [which would acquire 
a legal personality] will be able to accede to the European 
Convention for the Protection of Human Rights.  This would help 
solve potential problems of conflicting case law between EU and 
Council of Europe institutions.) 
 
4. The ECJ's basic role is to ensure that EU legislation (the 
primary law of the Treaties and secondary legislation set forth by 
the institutions) is interpreted and applied uniformly throughout 
the EU.  The various types of proceedings include ruling on actions 
for failure to fulfill obligations, actions for annulment and 
failure to act, references for a preliminary ruling, appeals and 
reviews.  EC case law establishes that the Community must respect 
international law in the exercise of its powers.  However, recent 
court rulings against the EU on enforcement of UN anti-terrorism 
sanctions have raised questions about the Court's views on how the 
EU gives effect to Security Council Resolutions under Chapter VII of 
the Charter of the United Nations. 
 
5.  The Court mostly rules in disputes between Community 
institutions (e.g., Council and Commission), the institutions and 
individual Member States, and between Member States.  The Court is 
assisted by and acts as a court of appeals on points of law from its 
junior tribunal, the Court of First Instance (CFI), which was 
established in 1989 to relieve the Court of its increasing workload. 
 (Note:  The Court does not have the right to decline to hear a 
case.  End note.)  The CFI usually hears actions brought by Member 
States against the Commission and against certain Council acts as 
well as actions referred by natural or legal persons against 
decisions of the EU bodies.  The CFI may annul a Community act or 
award compensation for damage.  There is also a Civil Service 
Tribunal that has first instance jurisdiction on disputes between 
the EU bodies and their employees (pay, career progress, 
disciplinary measures, social security, etc.).  Together, the three 
courts form the judicial institution of the Community. 
 
6.  Other EU bodies and the Member States may seek rulings from the 
 
BRUSSELS 00000108  002 OF 007 
 
 
Court and sue each other in the ECJ for alleged failures under the 
treaties and secondary legislation.  This most commonly occurs whenthe Commission, acting as "Guardian of the Treties," files a case 
against a Member State for failure to correctly implement a piece of 
Community law (after warning the Member State concerned).  Any 
natural or legal person may file a challenge appealing a Decision by 
a Community body or any piece of legislation that is of "direct and 
specific concern" within a certain time frame.   The Decision or the 
piece of legislation may be annulled,e.g. where there is a lack of 
competence, an invalid legal basis, a breach of procedural 
requirements, or a misuse of power. 
 
7.  Through its case law, the ECJ has identified an obligation on 
administrations and national courts to apply Community law in full 
within their sphere of competence and to protect the rights 
conferred on citizens by that law (direct application of Community 
law).  In cases of conflict, the Community law takes precedence over 
national laws and the national authorities have an obligation to 
repeal the conflicting national provision.  The ECJ has played a key 
role in the structure of the single market and has contributed to 
creating a legal environment for EU citizens by protecting the 
rights conferred upon them under the Community legislation.  Some 
judgments by the Court have major repercussions for the daily life 
of EU citizens; e.g., in the fields of free movement of persons, 
freedom to provide services, and social rights. 
 
8.  Parties fined by the Commission in competition (antitrust) cases 
(e.g., companies participating in a cartel) or antidumping 
procedures may appeal those decisions to the Court.  Any alleged 
breach of Community law by a Member State may be brought before the 
Court, and where a judgment finding such infringement is not 
complied with, the Court has the power to order the payment by the 
country concerned of a lump sum of a periodic penalty. (There have 
been only a few occasions of non-compliance and such fines.) 
 
9.  Member State courts may, and sometimes must, make a "preliminary 
reference" to the ECJ and ask it to clarify an interpretation of the 
treaties or other Community law to ascertain whether their national 
legislation complies with that law.  A reference for a preliminary 
ruling may also challenge the validity of any act of Community law. 
The ECJ then rules on the law; i.e., declares what the relevant 
Community law is.  The national court to which the ruling is 
addressed must comply with the interpretation by the ECJ in deciding 
the dispute before it.  The judgment likewise binds national courts 
in all Member States facing the same problem.  Requests for 
preliminary rulings have served to establish major principles of 
Community law.  A famous 1979 ECJ decision, Cassis de Dijon, set the 
principle of "mutual recognition," based on the ruling that "there 
is no valid reason why, provided that they have been lawfully 
produced and marketed in one of the Member States, alcoholic 
beverages should not be introduced into any other Member State." 
 
10.  The ECJ is currently (beginning of 2000) composed of 27 Judges, 
one from each Member State, and eight Advocates General, all 
appointed for renewable six-year terms by agreement of the EU 
governments.  The Judges and Advocates General are selected from 
"persons whose independence is beyond doubt" and "who possess the 
qualifications required for appointment to the highest judicial 
offices in their respective countries or who are judicial experts of 
recognized competence."  The Judges select their President from 
amongst their ranks for a renewable three-year term.  The President 
directs the Court's work and presides at hearings and deliberations. 
 The current ECJ President is the Greek Vassilios Skouris.  The 
Advocates General assist the Court in impartially reviewing the case 
material and presenting an "opinion" that the Court is not bound to 
follow but that  may be used as the basis for  its later ruling. 
The Court may sit as a full Court (27 judges) in exceptional matters 
specified by the underlying Treaty, in a Grand Chamber (13 judges) 
when an EU institution or Member State is a party or the case is of 
special significance or complexity, or, most frequently, in smaller 
Chambers (3 to 5 judges). 
 
11.  The CFI is also composed of 27 Judges (one per Member State) 
appointed for renewable six-year terms;  however, there are no 
permanent Advocates General in the CFI, where the duties of Advocate 
General are occasionally performed by one of the Judges.  With the 
Nice Treaty (in force since 2003), the CFI became the common law 
judge for all direct actions (proceedings against EU decisions, 
action for failure to act, action for compensation), with the 
exception of those attributed to a specialized chamber and those 
reserved by the statute to the ECJ.  The Nice Treaty introduced 
greater flexibility in the allocation of responsibilities between 
the ECJ and the CFI by allowing future adjustments to be made 
through the Court's statute and decisions by the Council.  As a 
matter of principle, the ECJ retains competence for failure to 
fulfill obligations and for questions referred to the EU judicial 
system for a preliminary ruling. 
 
12.  Despite clear differences between the EU and U.S. judicial 
systems, some observers may be tempted to analogize the ECJ to the 
Supreme Court and the CFI to  our Courts of Appeal.  The ECJ was 
originally designed on the French model, in which a case proceeds in 
 
BRUSSELS 00000108  003 OF 007 
 
 
a closed format on written papers and where only oral arguments and 
judgments are public. 
 
THE EUROPEAN CENTRAL BANK 
------------------------- 
 
13.  The Frankfurt-based European Central Bank (ECB) was established 
on July 1, 1998, with the Dutchman Wim Duisenberg as its first 
President.  The ECB took over from the European Monetary Institute 
as the final institution needed for completion of the European and 
Monetary Union (EMU), and presided over the launch of the Euro on 
January 1, 1999.  The ECB, which was designed on the model of the 
German Bundesbank, has the exclusive right to set interest rates and 
to issue euro banknotes for the euro area (the sixteen EU countries, 
with 325 million people -- so far -- that have adopted the euro; see 
REF. A).  The primary objective of the ECB's monetary policy is to 
maintain price stability.  The ECB aims at inflation rates of below, 
but close to, 2.0 percent over the medium term.  Its operational 
independence is enshrined in the Treaty and is second to none, 
making it one of the most powerful EU institutions.  The ECB just 
celebrated the 10th anniversary of its creation and the launch of 
the Euro, pointing to its success in maintaining average Eurozone 
inflation of just over 2.0 percent for 10 years, despite numerous 
global economic shocks and crises. 
 
14.  The current ECB President is the Frenchman Jean-Claude Trichet. 
 The President is assisted by a Vice-President (the Greek Lucas 
Papademos) and four other members of the Executive Board nominated 
by the EU leaders.  By a "tacit understanding" of governments, four 
of these six seats are currently reserved for the biggest central 
banks/countries of the Euro zone (France, Germany, Italy and Spain). 
 The ECB Presidency is conferred for eight years but the EU leaders 
agreed to stagger the terms of the Executive Board members. 
Duisenberg's appointment in 1998, however, was based on a backroom 
arrangement among leaders, under which the Dutchman would not serve 
his full term and retire shortly after the introduction of the euro 
notes and coins (beginning of 2002) to leave room for a Frenchman 
who would serve a full eight-year term.  Duisenberg refused for some 
time to recognize the validity of the "political agreement" but 
eventually resigned in July, 2003, making room for Trichet, a former 
Treasury Director and head of the French Central Bank.  Just like 
for all words uttered by the chairman of the U.S. Federal Reserve 
Bank, all pronouncements by the ECB President, including his press 
conferences and regular testimonies before the European Parliament, 
are carefully monitored by market operators worldwide, especially 
for hints of changes in interest rates. 
 
15.  The ECB together with the national central banks (NCBs) of all 
EU Member States -- whether they have adopted the euro or not -- 
constitute the European System of Central Banks (ESCB).  The 
"Eurosystem" is the more restrictive term used to refer to the ECB 
and the NCBs of the Member States that have adopted the euro as a 
single currency.  The "Eurosystem" and the ESCB will co-exist as 
long as there are EU Member States outside the euro area.  The basic 
tasks to be carried out by the "Eurosystem" are to define and 
implement the monetary policy of the euro area, to conduct 
day-to-day operations in the international currency markets, to hold 
and manage the official foreign exchange reserves of Member States, 
and to promote the "smooth operation" of payment systems in the euro 
area.  The national banks of the Member States that do not 
participate in the euro therefore do not take part in 
decision-making concerning the single monetary policy of the euro 
area. 
 
16.  The decision-making bodies of the ESCB are: 
 
-- The six-member Executive Board, essentially the directorate of 
the ECB.  The Board prepares the meetings of the Governing Council, 
implements monetary policy in accordance with the guidelines laid 
down by the Governing Council and, in doing so, instructs the NCBs. 
 
-- The Governing Council, made up of the Executive Board of the ECB 
plus the governors of the central banks of the countries that have 
adopted the euro.  The Governing Council formulates the monetary 
policy of the euro area, including the setting of key interest rates 
and the money supply of reserves in the "Eurosystem," with the 
primary objective of maintaining price stability in the area. 
 
-- The General Council, made up of the Governing Council members 
plus the Central Bank Governors of the non-euro area countries of 
the EU, which performs functions concerning all participants in EMU, 
such as the collection of statistical information, the establishment 
of rules for standardizing the accounting and reporting of 
operations undertaken by the NCBs, the preparation of the ECB's 
annual reports, etc. 
 
17.  Without undermining the primary objective of supporting price 
stability, the ESCB must support the "general economic policies" of 
the EU and its Member States, as defined in the Treaty.  Tensions 
occasionally surface in this respect between the ECB and some EU 
governments, in particular with members of the "EUROGROUP" panel of 
Finance Ministers of the euro area.  The Treaty provides that all EU 
 
BRUSSELS 00000108  004 OF 007 
 
 
Member States (not just participants in the euro area) must regard 
their economic policies as "a matter of common interest."  Several 
coordination instruments have been put in place, including: 
 
-- The Broad Economic Policy Guidelines (BEPG), designed as a 
reference tool for the EU and its individual governments in the 
conduct of economic policy. 
 
-- The Economic and Monetary Union (EMU) Stability and Growth Pact 
(SGP) adopted by EU leaders in 1997, which details standards and 
timetables for ensuring a sound management of budgetary policies. 
As reformed in March 2005, the Pact still requires Member States to 
keep their public deficits under 3.0 percent of GDP and their public 
debts under 60 percent of GDP.  However, the Pact's rules have been 
made more flexible across a range of areas such as conditions for 
avoiding an "excessive deficit procedure." 
 
-- The "excessive deficits procedure," involving provisions for the 
prevention and correction of budget imbalances with possible 
reprimands and sanctions imposed on Member States. 
 
18.  The above framework created challenges of coordination among 
the EU countries and between the governments and the ECB.  Each euro 
member country had to bring its own fiscal policy in line with these 
standards.  The governments also had to accept a common monetary 
policy, independently conducted by the ECB.  They agreed to 
macroeconomic surveillance by holding exploratory discussions on 
national budget plans and major economic policy initiatives liable 
to have a significant impact on the policy mix of the euro area or 
the economy of other member countries.  The ECB leadership and the 
EU Finance ministers hold regular contacts but the issue of policy 
coordination remains a matter of debate in the current global 
financial and economic turmoil.  Under Trichet's leadership, 
however, the ECB remains faithful to its Treaty goals and anxious to 
demonstrate its independence and expertise to the markets. 
 
19.  The ECB has been criticized for overly cautious moves on 
interest rates in response to the global financial crisis.  It has, 
however, acted during the crisis to promote new coordination 
mechanisms and proposals.  In April, 2008, the ECB helped reach 
agreement on a new EU-wide memorandum of understanding on 
cooperation between supervisory authorities, central banks and 
finance ministries in crisis situations.  The ECB coordinated 
interest rate cuts later in 2008 with the U.S. Federal Reserve and 
other major central banks.  In January, 2009, ECB Vice President 
Papademos proposed that the ECB, together with national central 
banks in the Eurozone, become the supervisory authority for major 
cross-border banking groups.  The European Commission, however, 
retains sole rights to propose EU financial regulation, and has yet 
to comment on the Papademos proposal. 
 
EUROPEAN INVESTMENT BANK/EUROPEAN INVESTMENT FUND 
--------------------------------------------- ---- 
 
20.  The Luxembourg-based European Investment Bank (EIB) is the EU's 
financing institution.  The EIB should not be confused with the 
European Bank for Reconstruction and Development (EBRD), of which 
the U.S. is a member and which is not an EU institution.  The EIB's 
task is to further the EU's objectives by making long-term financing 
available for specific capital projects.  The EIB raises substantial 
funds on the capital markets which it lends on favorable terms to 
projects furthering EU policy objectives.  The Bank continuously 
adapts its activity to developments in EU policies (e.g., the EU's 
response to the current economic slowdown).   The EIB enjoys its own 
legal personality and financial autonomy within the EU.  It operates 
in keeping with strict banking practices and in close cooperation 
with the wider banking community, both when borrowing on the capital 
markets and when financing projects.  The EIB's shareholders are the 
EU Member States, and its Board of Governors is composed of the EU 
Finance Ministers.  The current EIB President is the former Belgian 
Finance Minister Philippe Maystadt. 
 
21.  The bank contributes to a closer-knit Europe, particularly in 
terms of economic integration and greater economic and social 
cohesion; e.g., by fostering the development of less-advanced 
regions or improving transport and telecommunications 
infrastructures.  The bulk of lending goes to intra-EU projects. 
The EIB offers various financing facilities, depending on 
eligibility and product category, such as loans for small and 
medium-sized enterprises, venture capital, direct loans, etc. 
Outside the EU, the EIB is used to implement the financial protocols 
of agreements concluded by the EU with third countries, including EU 
candidates, countries of the Western Balkans, Ukraine, EUROMED 
partners, African, Caribbean and Pacific countries, as well as Asian 
and Latin American countries. 
 
22.  The European Investment Fund (EIF) is the EU's specialized 
financial institution for small or medium-sized enterprises, SMEs). 
The EIF makes venture capital investments with a view to supporting 
the emergence of a performing and homogenous European venture 
capital market and facilitating SME access to debt finance.  EIF's 
shareholders are the EIB, the EU represented by the Commission, and 
 
BRUSSELS 00000108  005 OF 007 
 
 
a number of European banks and financial institutions from the 
public and private sector.  The EIF carries out its venture capital 
and guarantee activities using either its own funds or funds 
entrusted by mandates.  The EIF acts independently and, uniquely for 
a body of the EU system, acts commercially under market conditions, 
with a statutory obligation to target appropriate returns for its 
shareholders. 
 
THE EU COURT OF AUDITORS 
------------------------ 
 
23.  Similar to the U.S. General Accountability Office in function, 
the Luxembourg-based Court of Auditors is responsible for the audit 
of EU finances.  It contributes to improving EU financial management 
and acts as the independent guardian of the financial interests of 
the EU.  The institution was established in the 1970s, after Member 
States began transferring part of their national VAT receipts to the 
EU.  The 27-member Court of Auditors (one member per Member State) 
has a staff of several hundreds and extensive powers to examine the 
legality and regularity of receipts and expenditure of EU finances. 
The President (currently the Portuguese Vtor Manuel da Silva 
Caldeira) supervises the performance of the Court's work and ensures 
liaison with the other EU bodies.  The Court's annual reports are a 
source of pressure on bodies with administrative responsibility and 
sometimes uncover cases of corruption in EU governments and 
institutions.  They provide a basis for the annual budgetary 
discharge procedure involving the European Parliament and Council. 
 
24. In order to strengthen the means of preventing and combating 
fraud and other illegal activities at the expense of the financial 
and economic interests of the Community and the EU budget, the 
Commission established within itself in 1999 the European Anti-Fraud 
Office (OLAF), which was given responsibility for conducting 
administrative anti-fraud investigations.  While it has an 
individual independent status for the investigative function, OLAF 
is also part of the Commission, currently under the responsibility 
of Vice-President Siim Kallas in charge of Administrative Affairs, 
Audit and Anti-Fraud. 
 
EUROPEAN OMBUDSMAN 
------------------ 
 
25.  The European Ombudsman (currently the Greek Nikiforos 
Diamandouros) investigates complaints about maladministration in the 
EU institutions and bodies.  Any EU citizen or resident in a Member 
State can file a complaint to the Ombudsman.  Businesses, 
associations or other bodies with a registered office in the EU may 
also complain.  Elected by the European Parliament, the Ombudsman is 
completely independent and impartial and can also launch inquiries 
on his own initiative.  The Ombudsman may simply need to inform the 
institution concerned about a complaint for it to resolve the 
problem.  If the case is not solved satisfactorily, the Ombudsman 
tries to find a friendly solution that puts right the case of 
maladministration and satisfies the complainant.  If the attempt at 
conciliation fails, the Ombudsman can make recommendations to solve 
the case.  If the institution does not accept his recommendations, 
he can report the case to the European Parliament. 
 
EUROPEAN DATA PROTECTION SUPERVISOR 
----------------------------------- 
 
26.  The European Data Protection Supervisor  (currently the 
Dutchman Peter Hustinx) and his Assistant constitute an independent 
supervisory authority appointed by the EU Council and European 
Parliament to protect personal data and privacy and to promote good 
practice in the EU institutions and bodies.  They do so by 
monitoring the administration's processing of personal data, 
advising on policies and legislation that affect privacy, and 
cooperating with similar authorities to ensure consistency in 
personal data protection.  Hustinx was just reappointed by the 
Council and Parliament to another five-year term. 
 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE 
------------------------------------------ 
 
27.  The European Economic and Social Committee (EESC) is a 
non-political, consultative body offering economic and social 
components of the EU civil society a platform to voice their views 
on EU issues.  Its members (currently numbering 334) are divided 
into three groups representing employers, workers, and other 
interests such as farming, commerce, transport, crafts, consumers, 
and SMEs.  Their basic task is to produce opinions of interest to 
the Commission, Council and European Parliament in economic and 
social sector-related areas, including agriculture, the single 
market, transport, social policy, and the environment.  In some 
areas, consultation of the EESC is mandatory; in other cases it is 
optional.  The EESC may also issue opinions on its own initiative. 
Its opinions (about 170 a year) bear no legal value in the Community 
decision-making process.  The EESC, currently chaired by the Italian 
Mario Sepi, also acts as a forum for the single market and has been 
trying to gain more visibility by hosting events aimed at bringing 
the EU closer to the people. 
 
BRUSSELS 00000108  006 OF 007 
 
 
 
THE COMMITTEE OF THE REGIONS 
---------------------------- 
 
28.  The Committee of the Regions (CoR) was established under the 
Maastricht Treaty as another consultative body to advise the 
Commission, Council and Parliament on EU policies or matters 
involving specific regional interests such as education, public 
health, the EU structural funds or the trans-European transport, 
telecommunications and energy networks.  The CoR currently has 334 
members, all elected members or key players in the local or regional 
authorities of their home region.  The CoR holds five plenary 
sessions a year to adopt its opinions and resolutions on topical 
political issues.  Its current President is the Belgian Luc Van den 
Brande. 
 
EU AGENCIES 
----------- 
 
29.  A series of decentralized agencies have been established to 
assist the Community ("first pillar") in the formulation and 
evaluation of its policies.  Those agencies, which are distinct from 
the EU institutions (Council, Parliament, Commission,  etc.) are 
normally set up by an act of secondary legislation to accomplish a 
specific technical, scientific or managerial task.  The following 
are currently meeting that definition, even though differing terms 
are used to designate them: 
 
-The Community Fisheries Control Agency (located in 
 Vigo, Spain); 
 
-The Community Plant Variety Office (Angers, 
 France); 
 
-The European Agency for Reconstruction (assistance 
 to Western Balkans, Thessaloniki, Greece); 
 
-The European Agency for Safety and Health at Work (Bilbao, Spain) 
 
-The European Agency for the Management of 
 Operational Cooperation at the EU External 
 Borders (FRONTEX, Warsaw, Poland); 
 
-The European Aviation Safety Agency (Cologne, 
 Germany); 
 
-The European Center for Disease Prevention and 
 Control (Solna, Sweden); 
 
-The European Center for the Development of 
 Vocational Training (Thessaloniki, Greece); 
 
-The European Chemicals Agency (Helsinki, Finland); 
 
-The European Environment Agency (Copenhagen, 
 Denmark); 
 
-The European Food Safety Authority (Parma, Italy); 
 
-The European Foundation for the Improvement of 
 Living and Working Conditions (Dublin, Ireland); 
 
-The European Fundamental Rights Agency (Vienna, 
 Austria); 
 
-The European GNSS (Global Navigation Satellite 
 Systems) Supervisory Authority (Brussels, Belgium); 
 
-The European Institute for Gender Equality (under 
 preparation); 
 
-The European Undertaking for ITER and the 
 Development of Fusion Energy (Barcelona, Spain); 
 
-The European Maritime Safety Agency (Lisbon, 
 Portugal); 
 
-The European Medicines Agency (London, UK); 
 
-The European Monitoring Center for Drugs and Drug 
 Addiction (Lisbon, Portugal) 
 
-The European Network and Information Security 
 Agency (Heraklion, Greece) 
 
-The European Railway Agency (Valenciennes, France); 
 
-The European Training Foundation (Torino, Italy); 
 
-The office for Harmonization in the Internal Market 
 (Trade Marks and Designs, Alicante, Spain); 
 
 
BRUSSELS 00000108  007 OF 007 
 
 
-The Translation Center for the Bodies of the EU 
 (Luxembourg). 
 
30.  Some agencies have also been set up to carry out specific 
technical, scientific and management tasks within the framework of 
the Common Foreign and Security Policy (CFSP - the EU's "second 
pillar"): 
 
-The European Defense Agency (EDA): to support the 
 Member States and Council in improving European 
 defense capabilities and to sustain and develop the 
 European Security and Defense Policy (Brussels); 
 
-The European Union Satellite Center (formerly a WEU 
 Agency, Torrejon, Spain); 
 
-The European Institute for Strategic Studies 
 (Paris). 
 
31.  Other agencies assist the Member States in their cooperation in 
the fight against terrorism and organized crime ("third pillar"): 
 
-CEPOL: European College bringing together senior 
police officers to encourage cross-border cooperation (located in 
Hampshire, UK); 
 
-EUROPOL, the European Police Office, collecting and providing 
analysis of  Europe-wide criminal intelligence (located in The 
Hague, Netherlands); 
 
-EUROJUST, European body for the enhancement of 
 judicial cooperation and coordination (EU 
 Prosecutors Office, The Hague). 
 
COMMENT 
------- 
 
32.  The strength and independence of the many "non-political" EU 
institutions, especially the ECJ and ECB, should not be 
underestimated.  Some critics of the ECJ perceive it as 
power-grabbing and lacking legitimacy, while the ECB has been blamed 
for its excessive focus on monetary stability (which is in line with 
its Treaty-enshrined mandate).  EU Member States might occasionally 
grumble at the terms dictated by these institutions, but in practice 
they respect their crucial role in EU governance. 
 
MURRAY