What Is The Difference Between European Union And European Commission? Which Is More Powerful?

Last Updated:January 28, 2026, 15:09 IST

India and the European Union sign a historic Free Trade Agreement, with Narendra Modi, Ursula von der Leyen and Antonio Costa marking a new era in India-EU relations

At the heart of EU governance is the European Commission.

India and the European Union (EU) have announced what both sides are calling a “historic" Free Trade Agreement (FTA), dubbed the “Mother of All Deals". The agreement is being projected as the beginning of a new phase in India-EU relations. Marking the occasion, European Council President Antonio Costa and European Commission President Ursula von der Leyen are on a visit to India.

A photograph of Prime Minister Narendra Modi with von der Leyen and Costa, holding hands and sharing a light moment, has gone viral. The two European leaders were also the chief guests at the Republic Day Parade in 2026.

But what exactly is the European Union? How many countries are part of it? What is the European Commission that negotiates trade deals with India, and how does this unique union of European nations actually function?

The European Union is a bloc of countries built on the idea that shared strength can go beyond national borders. It represents an ambitious experiment in cooperation for peace, prosperity and stability, and is widely regarded as one of the world’s most powerful and structured regional organisations. The EU is not merely an alliance of states, but a distinctive model of economic, political and legal integration in which member countries take collective decisions on key issues. Today, it plays a major role in global trade, diplomacy, climate policy and the regulation of emerging technologies.

The roots of the EU lie in the aftermath of the Second World War, when European nations sought lasting peace through economic cooperation. Over the decades, this effort evolved into a deeper union with a single market and shared policies across several sectors. At present, the EU has 27 member countries. It was earlier a 28-member bloc, but the United Kingdom exited in 2020 in a process known as Brexit.

Current members include major economies such as Germany, France, Italy and Spain, alongside countries like the Netherlands, Poland, Sweden, Greece and Portugal, as well as several nations from Central, Western and Eastern Europe.

The EU functions through a set of powerful institutions that together make, implement and enforce laws. The European Commission serves as the executive arm, responsible for proposing legislation, implementing policies, managing the EU budget and negotiating international agreements. The European Parliament, whose members are directly elected, debates and votes on laws, approves the budget and exercises oversight over the Commission.

The Council of the European Union, made up of ministers from member states, shares law-making powers with the Parliament. Above them is the European Council, which brings together heads of state or government and sets the EU’s overall political direction and priorities. Other key bodies include the European Central Bank, the Court of Justice of the EU and the European Court of Auditors.

At the heart of EU governance is the European Commission. It is the only EU institution with the power to propose new laws. Once proposed, these laws must be approved by both the European Parliament and the Council to come into force. The Commission ensures that EU laws are correctly applied across member states and can initiate legal action against countries that fail to comply. It manages the annual EU budget, represents the bloc internationally and leads negotiations on trade agreements, including those with India. Importantly, the Commission is meant to function independently of national governments.

In recent years, the Commission has taken an increasingly assertive stance on technology regulation. It has launched investigations into major tech firms, including probes related to deepfake content affecting women and children, as well as antitrust cases against companies like Google over the use of online content to train artificial intelligence systems and generate search overviews.

The Commission is made up of 27 Commissioners, one from each member state, headed by a President. The current President is Ursula von der Leyen, who is responsible for shaping the Commission’s agenda, assigning portfolios to Commissioners and representing the EU at high-level international forums such as the G7, G20 and meetings with non-EU countries.

Together, the President and Commissioners form the College of Commissioners. The President also appoints Vice-Presidents, often tasked with key areas such as foreign and security policy. Following elections to the European Parliament, the European Council nominates a candidate for Commission President, who is formally appointed after securing majority approval in Parliament.

A central debate around the EU concerns sovereignty, the right of a country to govern itself without external interference. In practice, however, absolute sovereignty is rare. As noted by the Council on Foreign Relations, countries that join multilateral organisations often pool or limit certain rights to gain the broader benefits of cooperation.

In the EU, member states participate in a single market where goods, services, capital and workers move freely. Common rules eliminate internal trade barriers, while the Schengen system allows visa-free travel across much of the bloc. Trade negotiations are conducted collectively, giving smaller countries greater leverage against large global economies.

Certain policy areas such as monetary policy, trade and fisheries are largely handled at the EU level, while others, particularly defence and security, remain shared responsibilities between the Union and national governments.

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