<P> Legitimation of the European Union rests on the Treaty System . The move toward unification first arose in the Kellogg - Briand Pact in 1928, which gained adherent countries during negotiations and took on a theme of integration for the achievement of peace between the Great Powers . After World War Two, Europe sought to end conflict permanently between France and Germany . In the spirit of the Marshall Plan, those two nations signed the Treaty of Paris in 1951, establishing the European Coal and Steel Community . Since then, the Treaty of Paris, which focused on price setting and competition for purposes of a common market, has been superseded . The legal basis for the European Community now rests on two treaties: The Treaty for the European Union of 1958; and The Treaty of Maastricht of 1992 . The various additions and modifications of treaties has led to a patchwork of policy and planning, which contributes to the unwieldiness of the EU . The pastiche of treaties, and not a single actualising charter of government, form the constitutional basis of the European Union . This ambiguity is a primary cause of "democratic deficit ." </P> <P> The EU itself is a legal personality and a set of governing institutions empowered by the treaties . However sovereignty is not invested in those institutions, it is pooled with ultimate sovereignty resting with the national governments . Yet in those areas where the EU has been granted competencies, it does have the power to pass binding and direct laws upon its members . </P> <P> The competencies of the European Union stem from the original Coal and Steel Community, which had as its goal an integrated market . The original competencies were regulatory in nature, restricted to matters of maintaining a healthy business environment . Rulings were confined to laws covering trade, currency, and competition . Increases in the number of EU competencies result from a process known as functional spillover . Functional spillover resulted in, first, the integration of banking and insurance industries to manage finance and investment . The size of the bureaucracies increased, requiring modifications to the treaty system as the scope of competencies integrated more and more functions . While member states hold their sovereignty inviolate, they remain within a system to which they have delegated the tasks of managing the marketplace . These tasks have expanded to include the competencies of free movement of persons, employment, transportation, and environmental regulation . </P> <Table> <Tr> <Td_colspan="4"> As outlined in Title I of Part I of the consolidated Treaty on the Functioning of the European Union <Ul> <Li> view </Li> <Li> talk </Li> <Li> </Li> </Ul> </Td> </Tr> <Tr> <Td> <Table> <Tr> <Td> Exclusive competence </Td> </Tr> </Table> </Td> <Td_colspan="2"> <Table> <Tr> <Td> Shared competence </Td> </Tr> </Table> </Td> <Td> <Table> <Tr> <Td> Supporting competence </Td> </Tr> </Table> </Td> </Tr> <Tr> <Td> <Table> <Tr> <Td> "The Union has exclusive competence to make directives and conclude international agreements when provided for in a Union legislative act ." </Td> </Tr> <Tr> <Td> <Ul> <Li> the customs union </Li> <Li> the establishing of the competition rules necessary for the functioning of the internal market </Li> <Li> monetary policy for the Member States whose currency is the euro </Li> <Li> the conservation of marine biological resources under the common fisheries policy </Li> <Li> Common Commercial Policy </Li> <Li> conclusion of certain international agreements </Li> </Ul> </Td> </Tr> </Table> </Td> <Td> <Table> <Tr> <Td> "Member States cannot exercise competence in areas where the Union has done so ." </Td> </Tr> <Tr> <Td> <Ul> <Li> the internal market </Li> <Li> social policy, for the aspects defined in this Treaty </Li> <Li> economic, social and territorial cohesion </Li> <Li> agriculture and fisheries, excluding the conservation of marine biological resources </Li> <Li> environment </Li> <Li> consumer protection </Li> <Li> transport </Li> <Li> trans - European networks </Li> <Li> energy </Li> <Li> the area of freedom, security and justice </Li> <Li> common safety concerns in public health matters, for the aspects defined in this Treaty </Li> </Ul> </Td> </Tr> </Table> </Td> <Td> <Table> <Tr> <Td> "Union exercise of competence shall not result in Member States being prevented from exercising theirs in"... </Td> </Tr> <Tr> <Td> <Ul> <Li> research, technological development and (outer) space </Li> <Li> development cooperation, humanitarian aid </Li> </Ul> </Td> </Tr> </Table> <Table> <Tr> <Td> "The Union coordinates Member States policies or implements supplemental to theirs common policies, not covered elsewhere" </Td> </Tr> <Tr> <Td> <Ul> <Li> coordination of economic, employment and social policies </Li> <Li> common foreign, security and defence policies </Li> </Ul> </Td> </Tr> </Table> </Td> <Td> <Table> <Tr> <Td> "The Union can carry out actions to support, coordinate or supplement Member States' actions in"... </Td> </Tr> <Tr> <Td> <Ul> <Li> the protection and improvement of human health </Li> <Li> industry </Li> <Li> culture </Li> <Li> tourism </Li> <Li> education, youth, sport and vocational training </Li> <Li> civil protection (disaster prevention) </Li> <Li> administrative cooperation </Li> </Ul> </Td> </Tr> </Table> </Td> </Tr> </Table>

The european union is an example of a regional organization primarily focused on