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