The EU’s policy areas

An increasing number of questions for the EU

The EU countries have agreed on which areas should be managed through the framework of EU cooperation. Over the years, treaty amendments have brought about an increasing number of policy areas which form part of EU cooperation. This is because the EU countries have identified a need to solve more issues together and to formulate joint EU legislation. This may, for example, concern asylum policy, energy, environmental issues, fisheries, consumer protection, product safety and cross-border crime. The EU countries also cooperate in times of major international crises, such as during the COVID-19 pandemic in 2020–2021.

EU policy areas on the EU website

Boost the economy across the whole of the EU

One of the goals of EU cooperation is that it should lead to economic development in all EU countries. In order to achieve this, EU countries agree to cooperate by taking joint decisions on laws and rules in many different areas. This may concern trade, competition in business, working conditions, energy supply, research and transport.

A single market with four freedoms

The EU countries have agreed on a great number of laws and rules which apply equally within the EU single market. Customs duties and other charges between EU countries have been removed, for example. There should also be free movement across borders of people, goods, services and capital. This freedom of movement is often referred to as the four freedoms. The single market and free movement are intended to contribute to economic growth across the whole of the EU.

The EU is a customs union

The EU is a customs union, meaning that customs and other trade barriers between EU countries have been abolished. It also means that the EU has common customs tariffs for non-EU countries. The same customs tariff should be paid on a product that is imported from a country outside the EU, regardless of which country imports the product. However, tariffs vary depending on the product. 

Largest share of money allocated to the regions and agriculture

Two other important areas in EU cooperation are EU cohesion policy, which promotes regional and local development with the intention of reducing socio-economic differences between regions in the EU member states, and agriculture policy. These areas are allocated the largest amount of money from the EU budget. For example, the EU provides financial support to regions with a high level of unemployment and to farmers who are going to modernise their farms or be compensated for price fluctuations. In the field of agricultural policy, EU countries have adopted common EU legislation, for example on food safety and animal transport.

Economic issues in the EMU

The EU countries also cooperate on economic matters. All EU countries are included in the European Monetary Union (EMU) which coordinates economic policy in the EU countries. The EU has also introduced a common currency, the euro, which is intended to facilitate trade and movement between EU countries.  Of the 27 EU countries, 20 have the euro as their currency. Sweden voted against introducing the euro in a referendum in 2003.

The EU and the rest of the world

The EU countries cooperate predominantly on economic and political matters. However, they also take joint action in relation to the rest of the world. For example, the common foreign and security policy aims to strengthen the EU’s capacity to handle incidents in international crisis management. The EU countries also cooperate on matters relating to international trade with countries outside the EU and on financial support and aid to developing countries.

The EU in the world

Matters on which member states decide independently

There are also many areas in which the EU countries do not draw up a common regulatory framework at EU level, in which the EU therefore cannot decide on legislation, rules and compensation. The EU countries decide for themselves on, for example, income tax, child allowances, pensions, schools and health care. On such matters, it is the governments and national parliaments of the EU member states that have the power to take decisions.

The EU’s powers depend on the issue at hand

The EU countries cooperate on a wide range of economic and policy issues. But what right do the EU countries have to introduce common legislation and rules at EU level? The answer is that the EU’s powers depend on the policy area in question. 

The EU countries cooperate on just under 40 different economic and policy issues - from trade and transport to the environment and consumer protection. The issues are divided into four different categories in which the EU countries have greater or smaller competences, that is, powers to take common decisions on, for example, new EU legislation.

The EU’s competences

In the EU treaties – the rules for how the EU should operate – there is a list of policy areas and the level of powers that the EU has in each area.  The list is often referred to as the EU competences catalogue. The EU member states have collectively agreed on this division of powers.

Areas of EU action on the European Commission website