Matching Pairs European institutionsOnline version Match the EU institutions with their functions by Laura Mercader Martinez 1 European Parliament 2 European Commission 3 European Council 4 Court of Justice of the EU 5 Council of the EU 6 European Court of Auditors It is the executive body of the EU. It prepares and passes laws and budgets It coordinates economic and defence policies. It ensures that the law is observed in all member states. It ensures that the EU funds are invested properly. It sets the EU's general political direction.