Explainer: How the European Union works and how it’s changing

The European Union (EU) is a complex assembly of countries that plays an increasingly significant role for the world and Canadian interests. First established through a series of agreements in 1952, the EU grew over time to include France, West Germany, Belgium, Italy, Luxembourg, and the Netherlands, pooling their coal and steel resources. This initial project laid the groundwork for a more extensive union encompassing more member countries and expanded influence across Europe.

The EU operates through a complex system involving three main institutions: the European Commission, the European Parliament, and the European Council. The European Commission, led by President Ursula von der Leyen, is responsible for proposing policies and operates from the Berlaymont Building in Brussels. The European Parliament, composed of elected representatives from member states, holds plenary sessions in Strasbourg.

The European Council, situated in Brussels, manages political issues and negotiations among EU member states.

Critics argue that the EU has led to a loss of autonomy for member countries and has contributed to tensions, particularly during the 2009 eurozone crisis. Supporters, however, emphasize the EU's role in promoting peace and prosperity through a common labor market, harmonized regulations, and shared fiscal policies. The EU's single market of 450 million consumers has also been seen as a buffer against economic coercion from other global powers.

Despite its strengths, the EU faces criticisms regarding its bureaucratic approach, which can slow down business processes and increase costs. The bloc's regulations, while often beneficial, have been deemed cumbersome by some. Additionally, the EU's approach to foreign policy, which requires unanimous consensus among its 27 member states, can complicate decision-making.

U.S. President Donald Trump's administration has taken a somewhat adversarial stance toward the EU, imposing sanctions and advocating for the annexation of Greenland to bolster ties with Denmark.