Social dialogue is the term used to describe the consultation procedures involving the European social partners (UNICE, CEEP, ESC). It encompasses discussions, joint action and negotiations between the European social partners, and discussions between the social partners and the institutions of the European Union.

It is intended to ensure that decisions are taken as closely as possible to the citizens and that constant checks are made as to whether action at Community level is justified in the light of the possibilities available at national, regional or local level.

According to this principle powers specifically conferred (functional competence) might not be adequate for the purpose of attaining the objectives expressly set by the Treaties themselves (competence ratione materiae).

This literally means 'at a level above national governments'.

Under this clause, some of a Member State's rights (e.g. its voting rights in the Council) may be suspended if it seriously and persistently breaches the principles on which the Union is founded (liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law).