The Treaty on the Functioning of the European Union (TFEU) is one of the primary treaties governing the European Union. It was signed on March 25, 1957, in Rome as the Treaty establishing the European Economic Community and was subsequently renamed and amended by the Lisbon Treaty in 2007. The TFEU sets out the objectives, principles, and functioning of the EU's internal market and economic policies.
Internal market: The TFEU establishes the EU's internal market, which aims to ensure the free movement of goods, services, capital, and people within the EU. It prohibits restrictions on trade between member states and establishes common rules on competition, state aid, and public procurement. The internal market is a cornerstone of EU integration, fostering economic growth, job creation, and consumer protection.
Economic policies: The TFEU outlines the EU's economic policies, which aim to promote balanced economic growth, price stability, and full employment. It sets out the principles of a social market economy, emphasising the importance of social progress, fair competition, and a high level of environmental protection. The treaty also establishes the Eurozone as an area where the euro is the common currency and defines the responsibilities of the European Central Bank in maintaining price stability and conducting monetary policy.
Competence and decision-making: The TFEU defines the areas of competence in which the EU can act and the decision-making procedures for EU legislation. It distinguishes between exclusive, shared, and supporting competences. Exclusive competence means that only the EU can legislate in a particular area, while shared competence allows both the EU and member states to legislate. Supporting competence allows the EU to support, coordinate, or supplement member states' actions.
EU institutions and governance: The TFEU outlines the EU's institutional framework, which includes the European Parliament, the European Council, the Council of the European Union, the European Commission, the Court of Justice of the European Union, and the European Central Bank. It defines their roles, powers, and decision-making procedures. The TFEU also introduces the principle of subsidiarity, which states that the EU should only take action if it is more effective than action taken at the national, regional, or local level.
Social policy: The TFEU includes provisions on social policy, aiming to improve living and working conditions, promote social dialogue, and combat discrimination. It establishes the principle of equal pay for equal work between men and women and prohibits discrimination based on factors such as nationality, sex, race, religion, age, or disability. The treaty also recognises the importance of social protection, workers' rights, and social dialogue.
Environment and sustainable development: The TFEU incorporates environmental protection and sustainable development as key objectives of the EU. It establishes principles such as the integration of environmental protection into other policy areas, the precautionary principle, and the principle that the polluter should pay. The treaty enables the EU to adopt measures to protect and improve the environment, combat climate change, and promote sustainable development.
Consumer protection: The TFEU includes provisions to protect consumers within the EU. It establishes the right to consumer protection, ensuring the safety, quality, and information transparency of products and services. The treaty empowers the EU to adopt measures to protect consumer interests and promote consumer rights.
External action and trade: The TFEU grants the EU the power to conduct a Common Foreign And Security Policy and represents the EU in international relations. It establishes the principles of international law, respect for human rights, democracy, and sustainable development as fundamental to the EU's external action. The treaty also provides the framework for the EU's trade policy, including the establishment of a customs union and the negotiation of international trade agreements.
It is important to note that the TFEU has been amended and supplemented by subsequent treaties and agreements to adapt to the evolving needs and challenges of the EU. These modifications have been made to enhance the EU's ability to address emerging issues, promote economic integration, and safeguard the well-being of its citizens.
You can learn more about this topic with our EU Law notes.
