The European Parliament has three competences:
LEGISLATIVE
Thanks to the Lisbon Treaty and consequently, the adoption of the Ordinary Legislative Procedure (OLP), the legislative powers increased for the European Parliament. Following this system (OLP), the Commission formulates a proposal and addresses it to the EP first, which can adopt, reject or amend the proposition.
Then, the EP’s opinion is transmitted to the Council that can reject/accept or put forward its own modifications.
If the proposal is not adopted by both institutions, the procedure is repeated twice.
In case the proposal is still not accepted, a conciliation meeting is organised and representatives from the three institutions meet up and negotiate.
After this meeting, if either the EP or the Council disagree with the text, the project is not adopted.
Therefore, with the adoption of the OLP, the EP and the Council are co-legislators when it comes to adopting a proposal, which was not the case before the Lisbon Treaty. SUPERVISORY
The European Parliament has a range of supervisory and control powers.
These allow it to exercise oversight over other institutions, to monitor the proper use of the EU budget and to ensure the correct implementation of EU law.
The President of the European Parliament has the right to speak at the start of each European Council, setting out Parliament's position on the subjects to be addressed by the heads of state and government.
After each summit the President of the European Council presents a report to the European Parliament on the outcome.
Ministers of the EP can ask the EU Council to initiate new policies and can present questions to the Council. The European Parliament has the right to approve and dismiss the European Commission. Under the Lisbon Treaty, in the process of electing the President of the Comission, EU heads of state propose a candidate for Commission President, taking into account the results of European elections. The candidate is elected by the EP.
The EP ensures democratic control over the Commission. HOW?
The Commission regularly submits reports to the Parliament including an annual report on EU activities and on the implementation of the budget.
HOW DOES THE PARLIAMENT APPLY THE LAW?
The Parliament can ask the Court to take action against the Commission or Council if they have acted in a way that is contrary to the spirit of EU law.Parliament, together with Council, can ask the Court of Justice to set up specialised courts. For example, the European Union Civil Service Tribunal was established in 2005 to deal with disputes between the EU and its civil service.
BUDGET CONTROL: As a directly-elected institution representing EU taxpayers, the European Parliament exercises democratic oversight to make sure that the Commission and the other institutions deal properly with European funds. BUDGETARY
Following the entry into force of the Lisbon Treaty, the European Parliament now shares the power to decide on the entire annual budget of the EU with the Council of the European Union.
Now, disallowing the Council is more difficult than before, without the Lisbon Treaty, as the EP is only allowed to block increases and ask for decreases.
This power has, however, extended to all areas of expenditures.Parliament and Council decisions about annual expenditure and revenue must fall within the annual spending limits laid down in the EU's long-term financial plan, the Multiannual Financial Framework, negotiated once every seven years.
The Parliament may also make recommendations to the Commission on the execution of the budget.
The Commission has to report, at the request of Parliament, on the measures taken in light of such observations and comments.
THE PROCEDURE ENDS WITH the granting, postponement or refusal of the cancellation of a debt (discharge).