Political System of the European Union Diagram Postcard

The Politics of the European Union are different from other organisations and states due to the unique nature of the European Union (EU). The EU is similar to a confederation, where many policy areas are federalised into common institutions capable of making law; however the EU does not, unlike most states, control foreign policy, defence policy or the majority of direct taxation policies (the EU does limit the level of variation allowed for VAT). These areas are primarily under the control of the EU's member states although a certain amount of structured co-operation and coordination takes place in these areas. For the EU to take substantial actions in these areas, unlike in most legislative areas, all Member States must give their consent. EU laws override national laws and policy areas are more numerous than historical confederations, however the EU is legally restricted from making law outside its remit (although in practice this applies to few policy areas) or where it is no more appropriate to do so at a national or local level (Subsidiarity) when acting outside of its exclusive competencies. This principal of subsidiarity does not apply to areas of exclusive competence.