What is the EU?
The EU is a unique economic and political partnership between 27 democratic European countries.
The aims of the EU are to:
- Provide peace, prosperity and stability for its peoples.
- Overcome the divisions on the continent.
- Ensure that its people can live in safety.
- Promote balanced economic and social development.
- Meet the challenges of globalisation and preserve the diversity of the people of the EU.
- Uphold the values that Europeans share, such as sustainable development and a sound environment, respect for human rights and the social market economy.
Why does the EU matter to the Lloyd's market?
A large amount of the legislation implemented in the UK emanates from the EU, therefore, EU legislation has a direct impact on how Lloyd’s operates. Also, Lloyd’s writes a substantial amount of business from the EU, so the EU single market benefits Lloyd’s by encouraging market liberalisation.
How does the EU work?
The EU institutions:
- The European Commission is the executive branch of the EU. It is the only body which can propose legislation within the EU. It is also responsible for making sure that policy is carried out correctly by member states, for administering the EU’s budget and for encouraging the EU’s programmes. The Commission is divided into 26 directorates general and nine services. Each member state nominates one Commissioner.
- The European Parliament is the directly-elected body of the EU and serves to represent the citizens of the EU. It co-legislates (along with the Council of the European Union). It has 785 members, elected once every five years by voters across the 27 member states.
- The Council of the European Union is one of the two legislative bodies of the EU. Together with the European Parliament it has responsibility for adopting, rejecting or amending legislation initiated by the European Commission. The Presidency of the Council of the European Union is held by each member state for six months at a time. The Council is made up of Ministers from the national governments of each member state; different Ministers attend, depending on the subject under discussion. EU Treaties define whether a single majority, a qualified majority or unanimity are required for Council decisions, and the number of votes each member state can count.
Types of EU legislation:
- Treaties - The EU is based on the rule of law. This means that everything that it does is derived from treaties, which are agreed voluntarily and democratically by all member states.
- Regulations - are binding in all member states and apply directly and immediately without the need for national implementing measures.
- Directives - are binding in all member states but require approval by national parliaments.
- Decisions - are only binding on the states or individuals to whom they are addressed.
- Recommendations and opinions - are non-binding declarations.
How does Lloyd's monitor and respond to EU initiatives?
Lloyd’s Government Policy and Affairs (GPA) team monitors and seeks to influence initiatives and proposed legislation emanating from international organisations as well as the UK Parliament which affect or may affect Lloyd’s.
The focus of the monitoring and lobbying work is the European Union which is engaged in a wide range of important activities and initiatives with regulatory and other implications for the operations of insurers and reinsurers.
The team also monitors closely and seeks to influence the work of other international organisations including the OECD, the IAIS (the International Association of Insurance Supervisors) and the WTO across the range of their insurance initiatives.
Lobbying of EU institutions (the Commission and the Parliament) and HMG is undertaken directly by the team as well as in conjunction with other parts of the UK and European insurance industries. Close liaison is maintained with the LMA and the Lloyd's market on all these issues.
If you have any comments or questions regarding the content of these EU web pages please contact us on gpa@lloyds.com.
Which countries are EU members?
There are currently 27 Member States of the EU. Click here to view a list of the EU Member States.
