European Union law is a system of supranational laws operating within the 27 member states of the European Union (EU). Originally referred to as Community law, it has grown over time since the 1952 founding of the European Coal and Steel Community, to promote peace, social justice, a social market economy with full employment, and environmental protection. The Treaties of the European Union agreed to by member states form its constitutional structure. EU law is interpreted by, and EU case law is created by, the judicial branch, known collectively as the Court of Justice of the European Union.

Legal Acts of the EU are created by a variety of EU legislative procedures involving the popularly elected European Parliament, the Council of the European Union (which represents member governments), the European Commission (a cabinet which is elected jointly by the Council and Parliament) and sometimes the European Council (composed of heads of state). Only the Commission has the right to propose legislation.

Legal acts include regulations, which are automatically enforceable in all member states; directives, which typically become effective by transposition into national law; decisions on specific economic matters such as mergers or prices which are binding on the parties concerned, and non-binding recommendations and opinions. Treaties, regulations, and decisions have direct effect – they become binding without further action, and can be relied upon in lawsuits. EU laws, especially Directives, also have an indirect effect, constraining judicial interpretation of national laws. Failure of a national government to faithfully transpose a directive can result in courts enforcing the directive anyway (depending on the circumstances), or punitive action by the Commission. Implementing and delegated acts allow the Commission to take certain actions within the framework set out by legislation (and oversight by committees of national representatives, the Council, and the Parliament), the equivalent of executive actions and agency rulemaking in other jurisdictions.

New members may join if they agree to follow the rules of the union, and existing states may leave according to their "own constitutional requirements". The withdrawal of the United Kingdom resulted in a body of retained EU law copied into UK law.

After the economic and human devastation of World War II, European civil society was determined to create a lasting union to guarantee world peace through economic, social and political integration.

To "save succeeding generations from the scourge of war, which twice.. brought untold sorrow to mankind", the United Nations Charter was passed in 1945, and the Bretton Woods Conference set up a new system of integrated World Banking, finance and trade. Also, the Council of Europe, formed by the Treaty of London 1949, adopted a European Convention on Human Rights, overseen by a new transnational court in Strasbourg in 1950. Already in 1946, Winston Churchill, who had been defeated as UK Prime Minister in 1945, had called for a "United States of Europe", though this did not mean the UK would sever its ties to the Commonwealth. In 1950, the French Foreign Minister Robert Schuman proposed that, beginning with integration of French and German coal and steel production, there should be "an organisation open to the participation of the other countries of Europe", where "solidarity in production" would make war "not merely unthinkable, but materially impossible". The 1951 Treaty of Paris created the first European Coal and Steel Community (ECSC), signed by France, West Germany, Belgium, the Netherlands, Luxembourg and Italy, with Jean Monnet as its president. Its theory was simply that war would be impossibly costly if ownership and production of every country's economy was mixed together. It established an Assembly (now the European Parliament) to represent the people, a Council of Ministers for the member states, a Commission as the executive, and a Court of Justice to interpret the law. In the East, the Soviet Union had installed dictatorial governments, controlling East Germany, and the rest of Eastern Europe. Although Stalin died in 1953 and the new general secretary Nikita Khrushchev had denounced him in 1956, Soviet tanks crushed a democratic Hungarian Revolution of 1956, and repressed every other attempt of its people to win democracy and human rights.

In the West, the decision was made through the 1957 Treaty of Rome to launch the first European Economic Community. It shared the Assembly and Court with the Coal and Steel Community, but set up parallel bodies for the Council and Commission. Based on the Spaak Report of 1956, it sought to break down all barriers to trade in a common market for goods, services, labour and capital, and prevent distortion of competition and regulate areas of common interest like agriculture, energy and transport. A separate treaty was signed for a European Atomic Energy Community to manage nuclear production. In 1961 the United Kingdom, Denmark, Ireland and Norway applied for membership only to be vetoed in 1963 by France's Charles de Gaulle. Spain also applied and was rejected as it was still led by the Franco dictatorship. The same year, the Court of Justice proclaimed that the Community constituted a "new legal order of international law". The Merger Treaty finally placed the ECSC and Euratom within the EEC. Shortly after, de Gaulle boycotted the commission, which he believed was pressing supranationalism too far. The Luxembourg compromise in 1966 agreed that France (or other countries) could veto issues of "very important national interest", particularly relating to the Common Agricultural Policy, instead of making decisions by "qualified majority". But after the May 1968 events in France and de Gaulle's resignation, the way was free for the United Kingdom, Ireland, and Denmark to join in 1973. Norway had rejected joining in a 1972 referendum, while the UK confirmed its membership in a 1975 referendum.

Aside from the European Economic Community itself, the European continent underwent a profound transition towards democracy. The dictators of Greece and Portugal were deposed in 1974, and Spain's dictator died in 1975, enabling their accession in 1981 and 1986. In 1979, the European Parliament had its first direct elections, reflecting a growing consensus that the EEC should be less a union of member states, and more a union of peoples. The 1986 Single European Act increased the number of treaty issues in which qualified majority voting (rather than consensus) would be used to legislate, as a way to accelerate trade integration. The Schengen Agreement of 1985 (not initially signed by Italy, the UK, Ireland, Denmark or Greece) allowed movement of people without any border checks. Meanwhile, in 1987, the Soviet Union's Mikhail Gorbachev announced policies of "transparency" and "restructuring" (glasnost and perestroika). This revealed the depths of corruption and waste. In April 1989, the People's Republic of Poland legalised the Solidarity organisation, which captured 99% of available parliamentary seats in June elections. These elections, in which anti-communist candidates won a striking victory, inaugurated a series of peaceful anti-communist revolutions in Central and Eastern Europe that eventually culminated in the fall of communism. In November 1989, protestors in Berlin began taking down the Berlin Wall, which became a symbol of the collapse of the Iron Curtain, with most of Eastern Europe declaring independence and moving to hold democratic elections by 1991.