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In principle, the Commission proposes new laws, and the Parliament and Council adopt them. The Commission and the member countries then implement them, and the Commission ensures that the laws are properly applied and implemented.

Other important institutions such as Court of Justice of the EU, located in Luxembourg; upholds the rule of European law.

• the Court of Auditors, located in, Luxembourg checks the financing of the EU's activities.

European Central Bank, located in Frankfurt, Germany, responsible for European monetary policy.