The 732-member, directly-elected European Parliament (EP) is a key institution of the 25-member European Union (EU). Once limited to being a consultative assembly, the EP has accumulated more power over time. Currently, it plays a role in the EU's legislative and budgeting processes, and exercises general supervision over other EU bodies. The EP continues to face several challenges, however, especially in relation to its democratic legitimacy and operational costs. The most recent EP elections were held in June 2004. This report will be updated as events warrant.