The Treaty of Lisbon gave the European Council the status of a EU institution and introduced the position of the President of the European Council. The European Council provides the EU with the necessary impetus for its development and defines the general political directions and priorities thereof. The European Council does not exercise legislative functions. The European Council consists of the Heads of State or Government of the Member States, together with its President and the President of the Commission. The High Representative of the Union for Foreign Affairs and Security Policy takes part in the European Council's work. The European Council meets four times a year, once at the end of each EU Presidency (June and December) and usually in March and October - one may also say: twice every six months, convened by its President. When the agenda so requires, the members of the European Council may decide each to be assisted by a minister and, in the case of the President of the Commission, by a member of the Commission. When the situation so requires, the President shall convene a special meeting of the European Council.

Except where the Treaties provide otherwise, decisions of the European Council are taken by consensus.

The European Council's agenda-setting powers can be derived from Article 15 (1) TEU: "The European Council provides the EU with the necessary impetus for its development and defines the general political directions and priorities thereof". The agenda-setting is limited by the final sentence meaning that the European Council "is not to trespass the Commission's traditional prerogatives to propose legislation (José M. de Areilza). In some areas (the area of freedom, security and justice) the European Council's agenda-setting powers are explicitly mandated. The European Council defines and identifies the strategic objectives and interests of the CFSP setting out the relevant guidelines.