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The EU is a family of democratic European countries working together to improve life for their citizens and to build a better world. In just over half a century, it has delivered peace and prosperity in Europe, a single European currency, the euro, and a frontier-free 'single market'. It has become a major trading power, and a world leader in fields such as environmental protection and development aid. It has grown from six to twenty-seven members and more countries are queuing up to join.

The EU's success stems from the unusual way in which it works. It is not a federation like the USA, nor is it simply an organisation for cooperation between governments, like the United Nations (UN). It is, in fact, unique. The countries that make up the EU remain independent, sovereign nations, but they pool their sovereignty in order to gain a strength and world influence none of them could have on their own.

There are three main decision-making institutions:

• the European Parliament, which represents the EU's citizens and is directly elected by them;
  
• the Council of the European Union, which represents the individual Member States;
  
• The European Commission, which is the executive body of the EU and seeks to uphold the interests of the Union as a whole.

This 'institutional triangle' produces the policies and laws that apply throughout the EU. In principle, it is the Commission that proposes new laws, but it is the Parliament and Council that pass them.

The Court of Justice upholds the rule of European law, and the Court of Auditors checks the financing of the Union's activities.

A number of other bodies also have key roles in making the EU work:

• the European Economic and Social Committee represents civil society, employers and employees;
  
• the Committee of the Regions represents regional and local authorities;
  
• the European Investment Bank finances EU investment projects, and helps small businesses via the European Investment Fund;
  
• the European Central Bank is responsible for European monetary policy;
  
• the European Ombudsman investigates complaints about maladministration by EU institutions and bodies;
  
• the European Data Protection Supervisor safeguards the privacy of people's personal data.
  

In addition, specialised agencies have been set up to handle specific technical, scientific or management tasks.

The EU is founded on four treaties:

• The Treaty establishing the European Coal and Steel Community (ECSC) was signed in April 1951 in Paris, came into force in July 1952 and expired in July 2002.
  
• The Treaty establishing the European Economic Community (EEC) was signed in March 1957 in Rome and came into force in January 1958. It is often referred to as 'the Treaty of Rome'.
  
• The Treaty establishing the European Atomic Energy Community (Euratom) was signed in Rome along with the EEC Treaty.
  
• The Treaty on European Union (EU) was signed in Maastricht in February 1992, and came into force in November 1993.

These treaties are the basis for everything the EU does. They have been amended each time new Member States have joined and three times to reform the EU's institutions and to give it new responsibilities:

• The Single European Act (SEA) was signed in February 1986 and came into force in July 1987. It amended the EEC Treaty and paved the way for completing the single market.
  
• The Treaty of Amsterdam was signed in October 1997 and came into force in May 1999. It amended the EU and EC treaties.
  
• The Treaty of Nice was signed in February 2001 and came into force in February 2003. It further amended the other treaties, streamlining the EU's decision-making system so it could continue to work effectively after the 2004 enlargement.

The Presidency of the Council of the European Union is held by the Member States on a rotating basis.

Each Presidency lasts six months, during which the Presiding Member State chairs Council Meetings and Summits, both in Brussels and at home. Each country sets priority areas to address during their Presidency.

The European Council - The Heads of State or Government (Presidents and/or Prime Ministers) of all the Member States and the President of the European Commission. The European Council usually meets four times a year to agree on overall EU policy and to review progress. It is the highest-level policy-making body in the EU, which is why its meetings are often called 'summits'.

The Council of the EU - Formerly known as the Council of Ministers, this institution consists of government Ministers from all the Member States. The Council meets regularly to take detailed decisions and to pass European laws. Which Ministers attend which meeting depends on what subjects are on the agenda. If, for example, the Council is to discuss environmental issues, the meeting will be attended by the Environment Minister from each EU country and it will be known as the 'Environment Council'.

The Council of Europe - This is not an EU institution at all. It is an inter-governmental organisation which aims to protect human rights, to promote Europe's cultural diversity and to combat social problems such as racial prejudice and intolerance, amongst others. It was set up in 1949 and one of its early achievements was to draw up the European Convention on Human Rights and Basic Freedoms. It then set up the European Court of Human Rights, to enable citizens to exercise their rights under the Convention. The Council of Europe now has forty-six member countries, including the twenty-seven European Union Member States. Bosnia and Herzegovina is also a member.