Abstract

The scope of European Union competence was central to the reform process that culminated in the Lisbon Treaty. The Lisbon Treaty competence provisions borrowed heavily from those in the Constitutional Treaty. Some provisions are contained in the Treaty on European Union (TEU), but the detailed schema is in the Treaty on the Functioning of the European Union (TFEU). Article 2 TFEU is the foundational provision, setting out the categories of competence and the consequences that flow from them. Article 2(1) TFEU establishes the category of exclusive competence, which carries the consequence that only the Union can legislate and adopt legally binding acts. Article 2(2) TFEU defines shared competence. The treaty schema for competence in Article 2 TFEU is premised on the ascription of legal consequences for EU and member state power as the result of coming within a particular category. Article 5 TFEU is an exception in this respect.