ve head of state" and ratifies important documents (for example, international agreements and

Constitutional nature
Further information: Treaties of the European Union
The classification of the European Union in terms of international or constitutional law has been much debated, often in the light of the degree of integration that is perceived, desired, or expected. Historically, at least, the EU is an international organisation, and by some criteria, it could be classified as a confederation; but it also has many attributes of a federation, so some would classify it as a (de facto) federation of states.[72][73][74] For this reason, the organisation has, in the past, been termed sui generis (incomparable, one of a kind), though it is also argued that this designation is no longer true.[75][76]
The organisation itself has traditionally used the terms "community", and later "union". The difficulties of classification involve the difference between national law (where the subjects of the law include natural persons and corporations) and international law (where the subjects include sovereign states and international organisations); they can also be seen in the light of differing European and American constitutional traditions.[75] Especially in terms of the European constitutional tradition, the term federation is equated with a sovereign federal state in international law; so the EU cannot be called a federal state or federation—at least, not without qualification. Though not, strictly, a federation, it is more than a free-trade association.[77] It is, however, described as being based on a federal model or federal in nature. Walter Hallstein, in the original German edition of Europe in the Making called it "an unfinished federal state".[78] The German Constitutional Court refers to the European Union as an association of sovereign states and affirms that making the EU a federation would require replacement of the German constitution.[79] Others claim that it will not develop into a federal state but has reached maturity as an international organisation.[80]
Governance
Main articles: Institutions of the European Union and Legislature of the European Union
The European Union has seven institutions: the European Parliament, the Council of the European Union, the European Commission, the European Council, the European Central Bank, the Court of Justice of the European Union and the European Court of Auditors. Competencies in scrutinising and amending legislation are divided between the European Parliament and the Council of the European Union while executive tasks are carried out by the European Commission and in a limited capacity by the European Council (not to be confused with the aforementioned Council of the European Union). The monetary policy of the eurozone is governed by the European Central Bank. The interpretation and the application of EU law and the treaties are ensured by the Court of Justice of the European Union. The EU budget is scrutinised by the European Court of Auditors. There are also a number of ancillary bodies which advise the EU or operate in a specific area.
European Union
Flag of the European Union
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European Council


The President of the European Council, Herman Van Rompuy
The European Council gives direction to the EU, and convenes at least four times a year. It comprises the President of the European Council, the President of the European Commission and one representative per member state; either its head of state or head of government. The European Council has been described by some as the Union's "supreme political authority".[81] It is actively involved in the negotiation of the treaty changes and defines the EU's policy agenda and strategies.
The European Council uses its leadership role to sort out disputes between member states and the institutions, and to resolve political crises and disagreements over controversial issues and policies. It acts externally as a "collective head of state" and ratifies important documents (for example, international agreements and treaties).[82]
On 19 November 2009, Herman Van Rompuy was chosen as the first permanent President of the European Council. On 1 December 2009, the Treaty of Lisbon entered into force and he assumed office. Ensuring the external representation of the EU,[83] driving consensus and settling divergences among members are tasks for the President both during the convocations of the European Council and in the time periods between them. The European Council should not be mistaken for the Council of Europe, an international organisation independent from the EU.
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