EU Institutions Explained: A Candidate's Cheat Sheet
The 7 EU institutions and their roles, simplified for EPSO exam preparation. Know who does what and why it matters.
9 min read ยท 26 March 2026
Key Takeaways
- The EU has 7 official institutions: Parliament, European Council, Council of the EU, Commission, CJEU, ECB, Court of Auditors
- The Commission has the near-exclusive right of legislative initiative โ Parliament and Council co-legislate
- Do not confuse the European Council (heads of state, political direction) with the Council of the EU (ministers, co-legislator)
- The ECB manages monetary policy for the eurozone (21 members), not the entire EU (27 members)
- Think of the system as three branches: Legislative (Parliament + Council), Executive (Commission), Judicial (CJEU)
EU institutional knowledge is tested in every EPSO competition. The challenge is not that the material is difficult โ it is that there is a lot of it, and candidates struggle to distinguish what is tested from what is trivia. This cheat sheet covers exactly what you need.
The 7 EU Institutions
The Treaty of Lisbon defines 7 official EU institutions. You must know all of them.
1. The European Parliament
Role: Co-legislator and budgetary authority
Key facts:
- 720 MEPs elected directly by EU citizens every 5 years
- Seats in Strasbourg (monthly plenary sessions) and Brussels (committee work)
- President elected by MEPs for a 2.5-year term
- Organised into political groups, not national delegations
- Has no general right of legislative initiative โ can only amend or reject Commission proposals (with narrow exceptions for its own rules)
- Must approve the EU budget and can reject it entirely
- Approves the appointment of the European Commission
EPSO trap: The Parliament does NOT have the right of legislative initiative. Only the Commission does.
2. The European Council
Role: Sets overall political direction and priorities
Key facts:
- Composed of heads of state or government of all 27 member states, plus its own President and the Commission President
- President serves 2.5-year terms (renewable once)
- Meets at least 4 times per year ("EU summits")
- Decisions typically by consensus
- Does NOT pass legislation
EPSO trap: The European Council and the Council of the European Union are different institutions. Do not confuse them. (Also, neither should be confused with the Council of Europe, which is not an EU institution at all.)
3. The Council of the European Union
Role: Co-legislator representing member state governments
Key facts:
- Ministers from each member state, meeting in 10 different configurations (ECOFIN, Agriculture, Foreign Affairs, etc.)
- Rotating 6-month presidency (except Foreign Affairs, chaired by the High Representative)
- Votes by qualified majority (55% of member states representing 65% of EU population) for most areas
- Unanimity required for taxation, foreign policy, social security, and treaty changes
- Works with the Parliament to adopt legislation
Test your EU knowledge with questions covering all major topics.
Try a Free EU Knowledge Test โ4. The European Commission
Role: Executive body, initiates legislation, enforces EU law
Key facts:
- 27 Commissioners (one per member state), each responsible for a policy portfolio
- President proposed by the European Council, elected by the Parliament
- College of Commissioners approved by the Parliament as a whole
- Near-exclusive right of legislative initiative (with limited exceptions in specific treaty areas)
- "Guardian of the Treaties" โ can take member states to the CJEU for non-compliance
- Headquartered in Brussels (Berlaymont building)
This is where most EPSO jobs are. The Commission is the largest EU employer.
5. The Court of Justice of the European Union (CJEU)
Role: Interprets EU law, ensures uniform application across member states
Key facts:
- Two courts: the Court of Justice (senior) and the General Court
- Court of Justice: 27 judges (one per member state) plus 11 Advocates General
- General Court: 54 judges (two per member state since 2019)
- Based in Luxembourg
- Key procedures: preliminary rulings (from national courts), infringement actions (Commission vs member state), annulment actions
6. The European Central Bank (ECB)
Role: Monetary policy for the eurozone
Key facts:
- Sets interest rates and manages the euro
- Based in Frankfurt
- Governing Council: 6 Executive Board members + governors of national central banks of eurozone countries
- Independent from political institutions โ no government or institution may seek to influence it
EPSO trap: The ECB manages monetary policy for the eurozone (21 members since January 2026), not the entire EU (27 members).
7. The European Court of Auditors (ECA)
Role: Audits EU finances
Key facts:
- 27 members (one per member state), appointed for 6-year terms
- Based in Luxembourg
- Checks that EU funds are collected and spent correctly
- Publishes an annual report and special reports
- Has no legal enforcement power โ findings are sent to the Parliament and Council
Advisory Bodies (Bonus)
Two advisory bodies are not institutions but frequently appear in EPSO tests:
- European Economic and Social Committee (EESC): Represents civil society (employers, workers, other interests). Consulted on many legislative proposals.
- Committee of the Regions (CoR): Represents regional and local authorities. Consulted on policies affecting regions.
Quick Memory Framework
Think of the EU institutional system as having three branches:
- Legislative: Parliament + Council (together they adopt laws proposed by the Commission)
- Executive: Commission (proposes laws, implements policies, enforces compliance)
- Judicial: CJEU (interprets and enforces the law)
Plus the European Council (strategic direction), ECB (monetary policy), and ECA (financial oversight).
This framework covers 80% of what EPSO tests on institutions.
Frequently Asked Questions
How many EU institutions are there?
The Treaty of Lisbon defines 7 official EU institutions: the European Parliament, the European Council, the Council of the European Union, the European Commission, the Court of Justice of the EU (CJEU), the European Central Bank (ECB), and the European Court of Auditors (ECA).
What is the difference between the European Council and the Council of the EU?
The European Council consists of heads of state/government and sets overall political direction โ it does NOT legislate. The Council of the EU consists of government ministers and is a co-legislator with the Parliament. They are different institutions despite the similar names.
Which EU institution proposes legislation?
The European Commission has the near-exclusive right of legislative initiative. The Parliament and Council of the EU can request the Commission to propose legislation but cannot initiate it themselves (with narrow treaty exceptions).
Sources
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