1. Introduction

The European Union is not a federation like the United States. Nor is it simply a confederation, an organisation for cooperation between States, like the United Nations or the Council of Europe. It does not intend to replace existing states, but it is more than any other international organisation. The countries that make up the European Union remain independent sovereign nations however they refer part of their sovereignty to the European institutions established by alone in order to achieve to common goals. The European Union is, in fact, unique.

The European Community constitutes a new legal order in international law, for whose benefit the states have limited their sovereign rights. The subject of the Community law comprises not only the Member States – as usually in the case of international law – but also their nationals.

The main purpose of the European integration planned by the architects of this unique organisation was:

to lay the foundations of an ever closer union among the peoples of Europe,
to ensure the economic and social progress of their countries by common action to eliminate the barriers which divide Europe,
to improve the living and working conditions of their peoples,
to remove the existing obstacles in order to guarantee steady expansion, balanced trade and fair competition,
to strengthen the unity of their economies and to ensure their harmonious development by reducing the differences existing between the various regions and the backwardness of the less-favoured regions,
to contribute, by means of a common commercial policy, to the progressive abolition of restrictions on international trade,
to confirm the solidarity which binds Europe and the overseas countries and desiring to ensure the development of their prosperity, in accordance with the principles of the Charter of the United Nations, by thus pooling their resources to preserve and strengthen peace and liberty, and calling upon the other peoples of Europe who share their ideal to join in their efforts,
to promote the development of the highest possible level of knowledge for their peoples through a wide access to education and through its continuous updating.

Definitions

European integration = This means building unity between European countries and peoples. Within the European Union it means that countries pool their resources and make many joint decisions. This joint decision-making takes place through interaction between the EU institutions (the Parliament, the Council, the Commission, etc.).

Open method of coordination = In many policy areas (for example education and training, pensions and health care, immigration and asylum), EU governments set their own national policies rather than having an EU-wide policy laid down in law. However, it makes sense for governments to share information, adopt best practice and bring their national policies into line. This way of learning from one another is called the ' Open method of coordination '

Federalism = Broadly speaking, this means any system of government where several states form a unity and yet remain independent in their internal affairs. People who are in favour of this system are often called “federalists”. A number of countries around the world – e.g. Australia, Canada, Germany, Switzerland and the United States – have federal models of government, in which some matters (such as foreign policy) are decided at the federal level while others are decided by the individual states. However, the model differs from one country to another.
The European Union is not based on any of these models: it is not a federation but a unique form of union in which the Member States remain independent and sovereign nations while pooling their sovereignty in many areas of common interest. This gives them a collective strength and influence on the world stage than none of them could have on their own.
Part of the debate about the future of Europe is the question of whether the EU should or should not become more 'federal'.

Enhanced co-operation = This is an arrangement whereby a group of EU countries (there must be at least eight of them) can work together in a particular field even if the other EU countries are unable or unwilling to join in at this stage. The outsiders must, however, be free to join later if they wish.

Source: http://www.europa.eu.int/abc/eurojargon/index-eu.htm

See more on: http://www.europa.eu.int/scadplus/glossary/index-eu.htm

To achieve these goals the EC Treaty lists the policy areas where the Community has decision-making power. In these areas – in accordance with the specific provisions of the Treaty – the Community through its legislative system and decision-making procedures should adopt Community law, and the Member States should apply them.

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