With Ireland set to take up the Presidency of the Council of the European Union (EU) in July, it is a useful time to reflect on what the EU is, what it does and how it works.
The EU is an economic and political partnership made up of 27 European Member States and with a total population of over 450 million people. It was founded by six member countries in 1957 and has grown over time. Its key foundational documents are the Maastricht Treaty passed in 1992 which created the EU (previously the European Communities) and the Lisbon Treaty of 2007.
These treaties underpin the institutions, procedures and rules of the EU. There are seven main institutions of the EU and a multitude of other offices, bodies and agencies.
The main political institutions are the European Council, the European Commission, the Council of the European Union and the European Parliament.
The European Council
The Council is comprised of the heads of State or heads of Government from each Member State, the President of the European Council and the President of the European Commission. The current President of the European Council is António Costa. The Council defines the general political direction and priorities of the EU. The Council is not involved in the legislative process but it does adopt changes to EU Treaties.
The Commission
The Commission is the main executive body of the EU and is made up of appointees from the 27 Member States. They are nominated by governments and ratified by the European Parliament and serve a term of five years. The Commissioners taken together are called the College of Commissioners. They are led by the President of the European Commission and various Vice Presidents.
The current President is Ursula von der Leyen and Ireland’s current Commissioner is former Minister for Finance, Michael McGrath.
The Commission is solely responsible for bringing forward new proposals, which are then ratified or agreed by both the Parliament and the Council of the European Union.
The Commission is also responsible for managing EU policies and ensuring European laws are adhered to by Member States. In addition, the Commission is responsible for negotiating trade agreements, which subsequently must be ratified by both the Council and the Parliament. The Parliament cannot amend the text of a trade agreement; it can only accept it or not accept it.
The Council of the European Union
This Council represents the governments of all Member States and unlike the European Council, the Council of the EU is involved in the legislative process. It, along with the Parliament, must ratify proposals from the Commission in order for them to become law. Ministers from each Member State meet in different configurations. For example, the Economic and Financial Affairs Council (ECOFIN) is represented by the Minister for Finance.
The Parliament
The European Parliament is the only directly elected institution in the EU. There are currently 720 MEPs, of which Ireland has 13. MEPs are elected for a five-year term and generally organise into party groupings within the Parliament. The Parliament is responsible, along with Council of the European Union, for ratifying proposals from the Commission. The Parliament is also responsible for approving the nominations to the Commission including the President of the Commission. The Parliament has the power to remove the Commission also. While this has never formally happened, in 1999 the Commission was forced to resign following pressure from the Parliament.
Different types of laws
Regulations are binding on every Member State. They do not require Member States to enact domestic law for them to become effective. Regulations are used in particular when it is necessary for rules to be applied consistently across all Member States.
Directives are binding objectives placed on Member States. Very often they require Member States to transpose laws at a domestic level to implement the Directives. Sometimes national discretion is permitted in certain areas under Directives. This discretion does not exist under Regulations.
- Decisions, recommendations and opinions
Decisions are binding on those they are addressed to (sometimes a Member State), while recommendations and opinions are not binding.
How Regulations and Directives become law
There are two procedures for passing EU Laws, the ordinary procedure (used for 95% of EU Law) and the special procedure. With the ordinary procedure both the Council and the Parliament act as co-legislators. Proposals announced by the Commission are sent to both the Parliament and the Council. If both Parliament and Council agree, then the proposals are ratified and become law. Mostly, however, both Parliament and Council will propose amendments. If no agreement is found, then the process can enter into what is known as the trilogue. These are informal meetings where representatives from the Commission, the Council and the Parliament negotiate over the proposals. If agreement is found, then the proposals can be ratified.
For the special procedure, the Council will act as the main decision maker, usually deciding on the basis of a Commission proposal. The Parliament is not a co-legislator but must be consulted or give its consent.
The special procedure is reserved for certain areas of law. The Multiannual Financial Framework (MFF), which is the EU’s Budget, follows the special procedure.
There are two forms of special procedure, consent procedure and consultation procedure. With the consent procedure, the Council can adopt a law after obtaining the consent of Parliament. Parliament cannot amend the text but can approve or reject it. With the consultation procedure, Parliament can offer an opinion, but Council is not obliged to follow it.
What is Ireland’s Presidency and what does it mean?
When we refer to Ireland’s Presidency, we refer to the Presidency of the Council of the European Union. As discussed above, the Commission, the Parliament and the European Council all have individuals in the position of President (Ursula von der Leyen, Roberta Metsola, and António Costa respectively).
The Council of the European Union, on the other hand, rotates its Presidency every six months among the 27 Member States. The last time Ireland held the Presidency was in 2013 and it is set to take up the Presidency on 1 July and will hold it until 31 December 2026. After this Ireland will not hold the Presidency for over 13 years, maybe longer if more countries join the EU.
What does the Member State that holds the Presidency of the Council of the European Union actually do?
The main purpose of the Presidency is to drive the legislative process forward. In that task, it plans, coordinates and chairs meetings, it acts as an honest broker between Member States and it negotiates with the Commission and the Parliament.
While the Presidency does not have authority to dictate the direction of travel for the EU, it can set out its legislative priorities for the next six months. This may involve identifying certain proposals that it wishes to advance or get ratified.
The Presidency, in its role in coordinating meetings, will host many meetings over the six months. Most meetings will continue to be held in Brussels but the Member State holding the Presidency will host a number of high-profile Council meetings.
What are the policies that you should look out for during Ireland’s Presidency?
- Multiannual Financial Framework (MFF)
This is the Budget for the EU. The current proposal from the Commission amounts to €2 trillion and covers the period from 2028 to 2034. It was proposed in July 2025 and it is targeted for ratification by the end of 2026.
EU Inc. (previously known as the 28th Regime) was launched in March 2026 and targeted for ratification by the end of 2026. EU Inc. aims to create a single set of corporate rules that will apply across the EU. It will enable a company registered as an EU Inc. to be recognised in every Member State.
You can view the Institute's EU Inc. factsheet here.
- Pan European Personal Pension Regulation
This was launched in November 2025 as part of the Savings and Investment Union and is expected to be ratified by the end of 2026. The package of measures is designed to help citizens secure adequate income in retirement by improving access to better and more effective supplementary pensions.
- Market Integration and Supervision Regulation
A fundamental component of the Savings and Investment Union, these proposals were launched in December 2025, and it is hoped that they will be finalised by the end of 2026. Capital markets in the EU remain fragmented, relatively small and they lack competitiveness when compared with other countries and jurisdictions. The proposals intend to simplify the EU regulatory and supervisory framework.
- EU Securitisation Framework
It was launched in June 2025 and is targeted for ratification by the end of 2026. The package of measures is designed to make the EU Securitisation Framework simpler and more fit for purpose. The proposed measures seek to facilitate securitisation activity in the EU while continuing to safeguard financial stability.
The Tax Omnibus proposal is due to be published in June 2026 and adopted by Quarter 4 2027. The aim of the proposal is to streamline, enhance and clarify various existing Tax Directives such as the Anti-Tax Avoidance Directive.
- Industrial Accelerator Act
This was proposed in March 2026 and is targeted for ratification by the end of 2026. Its intention is to increase demand for low-carbon, European-made technologies and products. It is intended the measures will boost manufacturing, support business growth and create jobs in the EU.
It was proposed in December 2025 with the aim of being ratified by Quarter 3 2026. The package is aimed at addressing key challenges for cross-border energy infrastructure in the EU.
This is related to the EU’s Emissions Trading System (ETS). It was proposed in April 2026 with the aim of being ratified by the end of the year. The Market Stability Reserve enables a stable, well-functioning carbon market.
This was proposed in 2023 with the aim of being ratified by the end of 2026. The Digital Euro is a form of digital cash and will offer greater choice to consumers and businesses in situations where physical cash cannot be used. It will be another means of payment.
This was proposed in November 2025 and it is hoped it will be ratified by the end of 2026. Once ratified, it will take a number of years to become operational. The Digital Wallet is designed to ease the administrative burden for businesses. Businesses who choose to use the Wallet will be able to check the identity of others and prove their own identity and create, store and share documents they can trust. Companies will also be able to digitally sign documents.
The new proposals were launched in January 2026 and are expected to be ratified by the end of 2026. The package is designed to further strengthen the EU’s cybersecurity reliance and capabilities.
What are the policy priorities for the Irish Presidency?
Last week the Government published its much-anticipated priorities for Ireland’s upcoming Presidency of the Council of the European Union, which is set to commence on 1 July 2026.
The Government set out its agenda for the six-month Presidency focusing on the key areas of competitiveness, values and security.
Last December, the Institute made a submission to the Department of Foreign Affairs and Trade on what an Irish Presidency should focus on with regulatory simplification and competitiveness placed front and centre.
The Institute, therefore, welcomes the clear priority placed on competitiveness by the Government and is encouraged that there is particular focus on progressing the EU Inc. proposals as well as the Savings and Investment Union during the Presidency.
In March, the EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, launched EU Inc., a new optional European-wide company framework designed to make it easier for companies to be established and scale up in the EU.
Coupled with EU Inc., Irish businesses need access to finance to grow and scale and currently Europe’s capital markets are fragmented and disjointed. That is why it is important that both the Savings and Investment Union and EU Inc. proposals are ratified as soon as possible and the priority placed on them by the Government is to be welcomed.
Institute’s position on Ireland’s Presidency
Chartered Accountants Ireland made a submission to the Department of Foreign Affairs and Trade on what we believe Ireland should prioritise during its Presidency of the Council of the European Union.
Ireland, as a small, open economy with deep global connections and proven strengths in digital leadership and sustainability, is uniquely positioned to champion a Presidency focused on unlocking Europe’s full potential.
At a time of intense global competition, Ireland should lead a solutions-driven agenda that prioritises competitiveness and regulatory simplification – cutting unnecessary complexity, fostering innovation, and enabling businesses to scale across the Single Market.
Under the theme ‘Delivering a competitive, secure and future-ready Europe’, Ireland can drive coherence, consistency and long-term resilience, ensuring Europe remains agile, prosperous and globally influential.
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