The lower chamber of parliament that votes on the regulation is directly elected and can rewrite and amend proposals. The higher chamber (EU Council) is comprised from government (or state?) heads which are either directly of indirectly elected with a length of 1. The commission (executive branch) that drafts the laws that are amended and passed by the parliament is voted in by a parliament which is directly elected.

Where do you get 4th level of deriviation exactly?

It's even less direct than national parliaments, which already are a joke.

And the unelected bureucracy, careerists, and 2-3 big country interests pressuring others under the table, are driving the show...