The establishment of the European Union has pushed forward the depth and width of European integration. Increasing amounts of Member States’ sovereignty has been transferred to the European Community, and the Council of Ministers has adopted more proce-dures of qualified majority vote in its important decision-making processes. As a result, Member States and their citizens have become suspicious and have begun to fear the expansion of the power of the European Union. The principle of subsidiarity is concerned with distribution of power, in which tension between centralization and devolution of power has always been inherent. The principle was adopted within the European Community as a mechanism to mediate the division of power between the Community and Member States, and try to defuse political conflict. The aim of this paper is to examine the development of the principle within the European Union system. It probes the meaning and historical background of the principle, its relationship with federalism, and its practical application and influ-ence in the political system. The paper also assesses the justiciability of the principle within the European judicial system.