The main goal of the EU is the progressive integration of Member States' economic and political systems and the establishment of a single market based on the free movement of goods, people, money and services.

To this end, its Member States cede part of their sovereignty under the Treaty on the Functioning of the European Union (TFEU) which empowers the EU institutions to adopt laws.

These laws (regulations, directives and decisions) take precedence over national law and are binding on national authorities. The EU also issues non-binding instruments, such as recommendations and opinions, as well as rules governing how EU institutions and programmes work, etc.