<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> The politics of the European Union are different from other organisations and states due to the unique nature of the European Union (EU). The EU is similar to a confederation, where many policy areas are federalised into common institutions capable of making law; however the EU does not, unlike most states, control foreign policy, defence policy or the majority of direct taxation policies (the EU does limit the level of variation allowed for VAT). These areas are primarily under the control of the EU's member states although a certain amount of structured co-operation and coordination takes place in these areas . For the EU to take substantial actions in these areas, all Member States must give their consent . EU laws that override national laws are more numerous than in historical confederations; however the EU is legally restricted from making law outside its remit or where it is no more appropriate to do so at a national or local level (subsidiarity) when acting outside its exclusive competencies . The principle of subsidiarity does not apply to areas of exclusive competence . </P> <P> The common institutions mix the intergovernmental and supranational (similar to federal) aspects of the EU . The EU treaties declare the EU to be based on representative democracy, and direct elections take place to the European Parliament . The Parliament, together with the Council, form the legislative arm of the EU . The Council is composed of national governments, thus representing the intergovernmental nature of the EU . Laws are proposed by the European Commission which is appointed by and accountable to the Parliament and Council although it has very few executive powers . </P>

What type of government is the european union