The idea was conceived on 13 May 1985 at the meeting of the European Council of Ministers of Culture. It was introduced by the Greek Minister of Culture Melina Mercouri. The European Capital of Culture was designed to bring the nations of Europe closer together.
Under the procedure in force from 2013 not the States will decide about selection of a city, but the EU institutions, however, with active participation of the Member State. The Council of the European Union, acting on the European Parliament's opinion and justifications based on the reports of the selection panels shall officially designate the cities in question as European Capitals of Culture.
According to the rules, the EU-Member State to host the EEC actively participates in selecting the winner city. The State, customarily represented by the Minister of Culture, announces the start of the contest, sets the selection timetable, and prepares information and organization meetings for cities interested in the title. It is also responsible for appointment of the 13-people selection panel, consisting of six national experts and seven experts nominated by the European institutions. Finally, at the end of the selection process, the State concerned informs EU institutions about the candidate selected by the jury to be designated for EEC.
For more information refer to the website of the European Capital of Culture 2016.