The Treaty of the European Union, Maastricht Treaty, 7th February, 1992

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Title: The Treaty of the European Union, Maastricht Treaty, 7th February, 1992
Author: European Union
Language: English
As this book started as an ASCII text book there are no pictures available.

*** Start of this LibraryBlog Digital Book "The Treaty of the European Union, Maastricht Treaty, 7th February, 1992" ***

The Treaty of the European Union

The Maastricht Treaty, 7th February, 1992.

Contributed by Neil McLachlan, nmclachlan@delphi.com

Note: In the Contents section, the short upper case heading
of each chapter can be searched for, to jump to that chapter.

CONTENTS

HEADS Introduction of signatories
TITLE1 Common Provisions
TITLE2 Provisions Amending the Treaty Establishing the European
Ecomonic Community with a View to Establishing the
European Community
TITLE3 Provisions Amending the Treaty Establishing the European
Coal and Steel Community
TITLE4 Provisions Amending the Treaty Establishing the European
Atomic Energy Community
TITLE5 Provisions on a Common Foreign & Security Policy
TITLE6 Provisions on Cooperation in the Fields of Justice & Home
Affairs
TITLE7 Final Provisions
PROTOCO Protocols
FINAL FINAL ACT
MAY1_92 Declaration on Protocol No. 17, made on the 1st May 1992

HEADS
TREATY ON EUROPEAN UNION
HIS MAJESTY THE KING OF THE BELGIANS,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT
BRITAIN AND NORTHERN IRELAND

RESOLVED to mark a new stage in the process of European integration
undertaken with the establishment of the European Communities,

RECALLING the historic importance of the ending of the division of the
European continent and the need to create firm bases for the
construction of the future Europe,

CONFIRMING their attachment to the principles of liberty, democracy
and respect for human rights and fundamental freedoms and of the
rule of law,

DESIRING to deepen the solidarity between their peoples while
respecting their history, their culture and their traditions,

DESIRING to enhance further the democratic and efficient functioning
of the institutions so as to enable them better to carry out, within a
single institutional framework, the tasks entrusted to them,

RESOLVED to achieve the strengthening and the convergence of their
economies and to establish an economic and monetary union
including, in accordance with the provisions of this Treaty, a single
and stable currency,

DETERMINED to promote economic and social progress for their
peoples, within the context of the accomplishment of the internal
market and of reinforced cohesion and environmental protection, and
to implement policies ensuring that advances in economic integration
are accompanied by parallel progress in other fields,

RESOLVED to establish a citizenship common to the nationals of their
countries,

RESOLVED to implement a common foreign and security policy
including the eventual framing of a common defence policy, which
might in time lead to a common defence, thereby reinforcing the
European identity and it independence in order to promote peace,
security and progress in Europe and in the world,

REAFFIRMING their objective to facilitate the free movement of
persons while ensuring the safety and security of their peoples, by
including provisions on justice and home affairs in this Treaty,

RESOLVED to continue the process of creating an ever closer union
among the peoples of Europe, in which decisions are taken as closely
as possible to the citizen in accordance with the principle of
subsidiarity,

IN VIEW of further steps to be taken in order to advance European
integration,

HAVE DECIDED to establish a European Union and to this end have
designated as their plenipotentiaries:

HIS MAJESTY THE KING OF THE BELGIANS:
Mark EYSKENS, Minister for Foreign Affairs;
Philippe MAYSTADT, Minister for Finance;

HER MAJESTY THE QUEEN OF DENMARK:
Uffe ELLEMNA-JENSEN, Minister for Foreign Affairs;
Anders FOGH RASMUSSEN, Minister for Economic Affairs;

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:
Hans-Dietrich GENSCHER, Federal Minister for Foreign Affairs;
Theodor WAIGEL, Federal Minister for Finance;

THE PRESIDENT OF THE HELLENIC REPUBLIC:
Antonios SAMARAS, Minister for Foreign Affairs;
Efthymios CHRISTODOULOU, Minister for Economic Affairs;

HIS MAJESTY THE KING OF SPAIN:
Francisco FERNANDEZ ORDONEZ, Minister for Foreign Affairs;
Carlos SOLCHAGA CATALAN, Minister for Economic Affairs and
Finance;

THE PRESIDENT OF THE FRENCH REPUBLIC:
Rolan DUMAS, Minister for Foreign Affairs;
Peirre BEREGOVY, Minister for Economic and Financial Affairs and the
Budget;

THE PRESIDENT OF IRELAND:
Gerard COLLINS, Minister for Foreign Affairs;
Berite AHERN, Minister for Finance;

THE PRESIDENT OF THE ITALIAN REPUBLIC,
Gianni DE MICHELIS, Minister for Foreign Affairs;
Guido CARLI, Minister for the Treasury;

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:
Jaques F. POOS, Deputy Prime Minister, Minister for Foreign Affairs;
Jean-Claude JUNCKER, Minister for FINANCE;

HER MAJESTY THE QUEEN OF THE NETHERLANDS:
Hans van den BROEK, Minister for Foreign Affairs;
Willem KOK, Minister for Finance;

THE PRESIDENT OF THE PORTUGUESE REPUBLIC:
Joao de DEUS PINHERO, Minister for Foreign Affairs;
Jorge BRAG de MACEDO, Minister for Finance;

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT
BRITAIN AND NORTHERN IRELAND:
The Rt. Hon. Douglas HURD, Secretary of State for Foreign and
Commonwealth Affairs;
The Hon. Francis MAUDE, Financial Secretary to the Treasury;
WHO, having exchanged their full powers, found in good and due form,
have agreed as follows:

TITLE1
COMMON PROVISIONS

ARTICLE A
By this Treaty, the High Contracting Parties establish among
themselves a European Union, hereinafter called "the Union".
This Treaty marks a new stage in the process of creating an ever
closer union among the peoples of Europe, in which decisions are
taken as closely as possible to the citizen.
The Union shall be founded on the European Communities,
supplemented by the policies and forms of cooperation established by
this Treaty. Its task shall be to organize, in a manner demonstrating
consistency and solidarity, relations between the Member States and
between their peoples.

ARTICLE B
The Union shall set itself the following objectives:
- to promote economic and social progress which is balanced and
sustainable, in particular through the creation of an area without
internal frontiers, through the strengthening of economic and social
cohesion and through the establishment of economic and monetary
union, ultimately including a single currency in accordance with the
provisions of this Treaty;
- to assert its identity on the international scene, in particular through
the implementation of a common foreign and security policy including
the eventual framing of a common defence policy, which might in time
lead to a common defence;
- to strengthen the protection of the rights and interests of the
nationals of its Member States through the introduction of a citizenship
of the Union;
- to develop close cooperation on justice and home affairs;
- to maintain in full the "acquis communautaire" and build on it with a
view to considering, through the procedure referred to in Article N(2), to
what extent the policies and forms of cooperation introduced by this
Treaty may need to be revised with the aim of ensuring the
effectiveness of the mechanisms and the institutions of the
Community.
The objectives of the Union shall be achieved as provided in this
Treaty and in accordance with the condition and the timetable set out
therein while respecting the principle of subsidiarity as defined in
Article 3b of the Treaty establishing the European Community.

ARTICLE C
The Union shall be served by a single institutional framework which
shall ensure the consistency and the continuity of the activities carried
out in order to attain its objectives while respecting and building upon
the "acquis communautaire".
The Union shall in particular ensure the consistency of its external
activities as a whole in the context of its external relations, security,
economic and development policies. The Council and the Commission
shall be responsible for ensuring such consistency. They shall ensure
the implementation of these policies, each in accordance with its
respective powers.

ARTICLE D
The European Council shall provide the Union with the necessary
impetus for its development and shall define the general political
guidelines thereof.
The European Council shall bring together the Heads of State or of
Government of the Member States and the President of the
Commission. They shall be assisted by the Ministers for Foreign
Affairs of the Member States and by a Member of the Commission. The
European Council shall meet at least twice a year, under the
chairmanship of the Head of State or of Government of the Member
State which holds the Presidency of the Council.
The European Council shall submit to the European Parliament a
report after each of its meetings and a yearly written report on the
progress achieved by the Union.

ARTICLE E
The European Parliament, the Council, the Commission and the Court
of Justice shall exercise their powers under the conditions and for the
purposes provided for, on the one hand, by the provisions of the
Treaties establishing the European Communities and of the
subsequent Treaties and Acts modifying and supplementing them and,
on the other hand, by the other provisions of this Treaty.

ARTICLE F
1. The Union shall respect the national identities of its Member States,
whose systems of government are founded on the principles of
democracy.
2. The Union shall respect fundamental rights, as guaranteed by the
European Convention for the Protection of Human Rights and
Fundamental Freedoms signed in Rome on 4 November 1950 and as
they result from the constitutional traditions common to the Member
States, as general principles of Community law.
3. The Union shall provide itself with the means necessary to attain its
objectives and carry through its policies.

TITLE2
PROVISIONS AMENDING THE TREATY ESTABLISHING THE
EUROPEAN ECONOMIC COMMUNITY WITH A VIEW TO ESTABLISHING
THE EUROPEAN COMMUNITY

ARTICLE G
The Treaty establishing the European Economic Community shall be
amended in accordance with the provisions of this Article, in order to
establish a European Community.
A. Throughout the Treaty:
1) The term "European Economic Community" shall be replaced by the
term "European Community".
B. In Part One "Principles":
2) Article 2 shall be replaced by the following:
"ARTICLE 2
The Community shall have as its task, by establishing a common
market and an economic and monetary union and by implementing the
common policies or activities referred to in Articles 3 and 3a, to
promote throughout the Community a harmonious and balanced
development of economic activities, sustainable and non-inflationary
growth respecting the environment, a high degree of convergence of
economic performance, a high level of employment and of social
protection, the raising of the standard of living and quality of life, and
economic and social cohesion and solidarity among Member States.'
3) Article 3 shall be replaced by the following:
"ARTICLE 3
For the purposes set out in Article 2, the activities of the Community
shall include, as provided in this Treaty and in accordance with the
timetable set out therein:
(a) the elimination, as between Member States, of customs duties and
quantiative restrictions on the import and export of goods, and of all
other measures having equivalent effect;
(b) a common commercial policy;
(c) an internal market characterized by the abolition, as between
Member States of obstacles to the free movement of goods, persons,
services and capital;
(d) measures concerning the entry and movement of persons in the
internal market as provided for in Article l00c;
(e) a common policy in the sphere of agriculture and fisheries;
(f) a common policy in the sphere of transport;
(g) a system ensuring that competition in the internal market is not
distorted;
(h) the approximation of the laws of Member States to the extent
required for the functioning of the common market;
(i) a policy in the social sphere comprising a European Social Fund;
(j) the strengthening of economic and social cohesion;
(k) a policy in the sphere of the environment;
(l) the strengthening of the competitiveness of Community industry;
(m) the pomotion of research and technological development;
(n) encouragement for the establishment and development of trans-
European networks;
(o) a contribution to the attainment of a high level of health protection;
(p) a contribution to education and training of quality and to the
flowering of the cultures of the Member States;
(q) a policy in the sphere of development co-operation;
(r) the association of the overseas countries and territories in order to
increase trade and promote jointly economic and social development;
(s) a contribution to the strengthening of consumer protection;
(t) measures in the spheres of energy, civil protection and tourism."
4) The following Article shall be inserted:
"ARTICLE 3a
1. For the purposes set out in Article 2, the activities of the Member
States and the Community shall include, as provided in this Treaty
and in accordance with the timetable set out therein, the adoption of an
economic policy which is based on the close co-ordination of Member
States' economic policies, on the internal market and on the definition
of common objectives, and conducted in accordance with the principle
of an open market economy with free competition.
2. Concurrently with the foregoing, and as provided in this Treaty and
in accordance with the timetable and the procedures set out therein,
these activities shall include the irrevocable fixing of exchange rates
leading to the introduction of a single currency, the ECU, and the
definition and conduct of a single monetary policy and exchange rate
policy the primary objective of both of which shall be to maintain price
stability and, without prejudice to this objective, to support the general
economic policies in the Community, in accordance with the principle
of an open market economy with free competition.
3. These activities of the Member States and the Community shall
entail compliance with the following guiding principles: stable prices,
sound public finances and monetary conditions and a sustainable
balance of payments."
5) The following Article shall be inserted:
"ARTICLE 3b
The Community shall act within the limit of the powers conferred upon
it by this Treaty and of the objectives assigned to it therein.
In areas which do not fall within its exclusive competence, the
Community shall take action, in accordance with the principle of
subsidiarity, only if and in so far as the objectives of the proposed
action cannot be sufficiently achieved by the Member States and can
therefore, by reason of the scale or effects of the proposed action, be
better achieved by the Community.
Any action by the Community shall not go beyond what is necessary to
achieve the objectives of this Treaty."
6) Article 4 shall be replaced by the following:
"ARTICLE 4
1. The tasks entrusted to the Community shall be carried out by the
following institutions:
- a EUROPEAN Parliament,
- a COUNCIL,
- a COMMISSION,
- a COURT OF JUSTICE,
- a COURT OF AUDITORS.
Each institution shall act within the limits of the powers conferred upon
it by this Treaty.
2. The Council and the Commission shall be assisted by an Economic
and Social Committee and a Committee of the Regions acting in an
advisory capacity."
7) The following Articles shall be inserted:
"ARTICLE 4a
A European System of Central Banks (hereinafter referred to as
"ESCB") and a European Central Bank (hereinafter referred to as
"ECB") shall be established in accordance with the procedures laid
down in this Treaty; they shall act within the limits of the powers
conferred upon them by this Treaty and by the Statute of the ESCB and
of the ECB (hereinafter referred to as "Statute of the ESCB") annexed
thereto.
ARTICLE 4b
A European Investment Bank is hereby established, which shall act
within the limit of the powers conferred upon it by this Treaty and the
Statute annexed thereto."
8) Article 6 shall be deleted and Article 7 shall become Article
6. Its second paragraph shall be replaced by the following:
"The Council, acting in accordance with the procedure referred to in
Article 189c, may adopt rules designed to prohibit such
discrimination."
9) Articles 8, 8a, 8b and 8c shall become respectively Article 7, 7a, 7b
and 7c.
C. The following Part shall be inserted:
"PART TWO
CITIZENSHIP OF THE UNION
ARTICLE 8
1. Citizenship of the Union is hereby established.
Every person holding the nationality of a Member State shall be a
citizen of the Union.
2. Citizens of the Union shall enjoy the rights conferred by this Treaty
and shall be subject to the duties imposed thereby.
ARTICLE 8a
1. Every citizen of the Union shall have the right to move and reside
freely within the territory of the Member States, subject to the
limitations and conditions laid down in this Treaty and by the
measures adopted to give it effect.
2. The Council may adopt provisions with a view to facilitating the
exercise of the rights referred to in paragraph 1; save as otherwise
provided in this Treaty, the Council shall act unanimously on a
proposal from the Commission after obtaining the assent of the
European Parliament.
ARTICLE 8b
1. Every citizen of the Union residing in a Member State of which he is
not a national shall have the right to vote and to stand as a candidate
at municipal elections in the Member State in which he resides, under
the same conditions as nationals of that State. This right shall be
exercised subject to detailed arrangements to be adopted before 31
December 1994 by the Council, acting unanimously, on a proposal
from the Commission and after consulting the European Parliament;
these arrangements may provide for derogations where warranted by
problems specific to a Member State.
2. Without prejudice to Article 1 38(3) and to the provisions adopted for
its implementation, every citizen of the Union residing in a Member
State of which he is not a national shall have the right to vote and to
stand as a candidate in elections to the European Parliament in the
Member State in which he resides, under the same conditions as
nationals of that State. This right shall be exercised subject to detailed
arrangements to be adopted before 31 December 1993 by the Council,
acting unanimously on a proposal from the Commission and after
consulting the European Parliament; these arrangements may provide
for derogations where warranted by problems specific to a Member
State.
ARTICLE 8c
Every citizen of the Union shall, in the territory of a third country in
which the Member State of which he is a national is not represented,
be entitled to protection by the diplomatic or consular authorities of
any Member State, on the same conditions as the nationals of that
State. Before 31 December 1993, Member States shall establish the
necessary rules among themselves and start the international
negotiations required to secure this protection.
ARTICLE 8d
Every citizen of the Union shall have the right to petition the European
Parliament in accordance with Article 138d.
Every citizen of the Union may apply to the Ombudsman established
in accordance with Article 138e.
ARTICLE 8e
The Commission shall report to the European Parliament, to the
Council and to the Economic and Social Committee before 31
December 1993 and then every three years on the application of the
provisions of this Part. This report shall take account of the
development of the Union.
On this basis, and without prejudice to the other provisions of this
Treaty, the Council, acting unanimously on a proposal from the
Commission and after consulting the European Parliament, may adopt
provisions to strengthen or to add to the rights laid down in this Part,
which it shall recommend to the Member States for adoption in
accordance with their respective constitutional requirements."
D. Parts Two and Three shall be grouped under the following Title:
"PART THREE
COMMUNITY POLICIES"
and in this Part:
10) The first sentence of Article 49 shall be replaced by the following:
"As soon as this Treaty enters into force, the Council shall, acting in
accordance with the procedure referred to in Article 189b and after
consulting the Economic and Social Committee, issue directives or
make regulations setting out the measures required to bring about, by
progressive stages, freedom of movement for workers, as defined in
Article 48, in particular."
11) Article 54(2) shall be replaced by the following:
"2. In order to implement this general programme or, in the absence of
such programme, in order to achieve a stage in attaining freedom of
establishment as regards a particular activity, the Council, acting in
accordance with the Procedure referred to in Article 189b and after
consulting the Economic and Social Committee, shall act by means of
directives."
12) Article 56(2) shall be replaced by the following:
"2. Before the end of the transitional period, the Council shall, acting
unanimously on a proposal from the Commission and after consulting
the European Parliament, issue directives for the co-ordination of the
above mentioned provisions laid down by law, regulation or
administrative action. After the end of the second stage, however, the
Council shall, acting in accordance with the procedure referred to in
Article 189b, issue directives for the co-ordination of such provisions
as, in each Member State, are a matter for regulation or administrative
action."
13) Article 57 shall be replaced by the following:
"ARTICLE 57
1. In order to make it easier for persons to take up and pursue
activities as self-employed persons, the Council shall, acting in
accordance with the procedure referred to in Article 189b, issue
directives for the mutual recognition of diplomas, certificates and other
evidence of formal qualifications.
2. For the same purpose, the Council shall, before the end of the
transitional period, issue directives for the co-ordination of the
provisions laid down by law, regulation or administrative action in
Member States concerning the taking up and pursuit of activities as
self-employed persons. The Council, acting unanimously on a
proposal from the Commission and after consulting the European
Parliament, shall decide on directives the implementation of which
involves in at least one Member State amendment of the existing
principles laid down by law governing the professions with respect to
training and conditions of access for natural persons. In other cases
the Council shall act in accordance with the procedure referred to in
Article 189b.
3. In the case of the medical and allied and pharmaceutical
professions, the progressive abolition of restrictions shall be
dependent upon co-ordination of the conditions for their exercise in the
various Member States."
14) The title of Chapter 4 shall be replaced by the following:

"CHAPTER 4
CAPITAL AND PAYMENTS"
15) The following Articles shall be inserted:
"ARTICLE 73a
As from 1 January 1994, Articles 67 to 73 shall be replaced by Articles
73b, c, d, e, f and g.
ARTICLE 73b
1. Within the framework of the provisions set out in this Chapter, all
restrictions on the movement of capital between Member States and
between Member States and third countries shall be prohibited.
2. Within the framework of the provisions set out in this Chapter, all
restrictions on payments between Member States and between
Member States and third countries shall be prohibited.
ARTICLE 73c
1. The Provisions of Article 73b shall be without prejudice to the
application to third countries, of any restrictions which exist on 31
December 1993 under national or Community law adopted in respect
of the movement of capital to or from third countries involving direct
investment - including investment in real estate - establishment, the
provision of financial services or the admission of securities to capital
markets.
2. Whilst endeavouring to achieve the objective of free movement of
capital between Member States and third countries to the greatest
extent possible and without prejudice to the other Chapters of this
Treaty, the Council may, acting by a qualified majority on a proposal
from the Commission, adopt measures on the movement of capital to
or from third countries involving direct investment - including
investment in real estate -, establishment, the provision of financial
services or the admission of securities to capital markets. Unanimity
shall be required for measures under this paragraph which constitute
a step back in Community law as regards the liberalization of the
movement of capital to or from third countries.
ARTICLE 73d
1. The provisions of Article 73b shall be without prejudice to the right
of Member States:
(a) to apply the relevant provision of their tax law which distinguish
between tax-payers who are not in the same situation with regard to
their place of residence or with regard to the place where their capital
is invested;
(b) to take all requisite measures to prevent infringement of national
law and regulations, in particular in the field taxation and the
prudential supervision of financial institutions, or to lay down
procedures for the declaration of capital movements for purposes of
administrative or statistical information, or to take measures which are
justified on grounds of public policy or public security.
2. The provisions of this Chapter shall be without prejudice to the
applicability of restrictions on the right of establishment which are
compatible with this Treaty.
3. The measures and procedures referred to in paragraphs 1 and 2
shall not constitute a means of arbitrary discrimination or a disguised
restriction on the free movement of capital and payments as defined in
Article 73b.
ARTICLE 73e
By way of derogation from Article 73b, Member States which, on 31
December 1993, enjoy a derogation on the basis of existing
Community law, shall be entitled to maintain, until 31 December 1995
at the latest, restrictions on movement of capital authorized by such
derogations as exist on that date.
ARTICLE 73f
Where, in exceptional circumstances, movement of capital to or from
third countries cause, or threaten to cause, serious difficulties for the
operation of economic and monetary union, the Council, acting by a
qualified majority on a proposal from the Commission and after
consulting the ECB, may take safeguard measures with regard to third
countries for a period not exceeding six months if such measures are
strictly necessary.
ARTICLE 73g
1. If, in the cases envisaged in Article 228a, action by the Community
is deemed necessary, the Council may, in accordance with the
procedure provided for in Article 228a, take the necessary urgent
measures on the movement of capital and on payments as regards the
third countries concerned.
2. Without prejudice to Article 224 and as long as the Council has not
taken measures pursuant to paragraph 1, a Member State may, for
serious political reasons and on grounds of urgency, take unilateral
measures against a third country with regard to capital movements
and payments. The Commission and the other Member States shall be
informed of such measures by the date of their entry into force at the
latest.
The Council may, acting by a qualified majority on a proposal from the
Commission, decide that the Member State concerned shall amend or
abolish such measures. The President of the Council shall inform the
European Parliament of any such decision taken by the Council.
ARTICLE 73h
Until 1 January 1994, the following provisions shall be applicable:
1) Each Member State undertakes to authorize, in the currency of the
Member State in which the creditor or the beneficiary resides, any
payment connected with the movement of goods, services or capital,
and any transfers of capital and earnings, to the extent that the
movement of goods, services, capital and persons between Member
States has been liberalized pursuant to this Treaty.
The Member States declare their readiness to undertake the
liberalization of payments beyond the extent provided in the preceding
subparagraph, in so far as their economic situation in general and the
state of their balance of payment in particular so permit.
2) In so far as movement of goods, services and capital are limited
only by restrictions on payments connected therewith, these
restrictions shall be progressively abolished by applying, mutatis
mutandis, the provisions of this Chapter and the Chapters relating to
the abolition of qualitative restrictions and to the liberalization of
services.
3) Member States undertake not to introduce between themselves any
new restrictions on transfers connected with the invisible transactions
listed in Annex III to this Treaty.
The progressive abolition of existing restrictions shall be effected in
accordance with the provisions of Articles 63 to 65, in so far as such
abolition is not governed by the provisions contained in paragraphs 1
and 2 or by the other provisions of this Chapter.
4) If need be, Member States shall consult each other on the measures
to be taken to enable the payment and transfers mentioned in this
Article to be effected; such measures shall not prejudice the
attainment of the objectives set out in this Treaty."
16) Article 75 shall be replaced by the following:
"ARTICLE 75
1. For the purpose of implementing Article 74, and taking into account
the distinctive features of transport, the Council shall, acting in
accordance with the procedure referred to in Article 189c and after
consulting the Economic and Social Committee, lay down:
(a) common rules applicable to international transport to or from the
territory of a Member State or passing across the territory of one or
more Member States;
(b) the conditions under which non-resident carriers may operate
transport services within a Member State;
(c) measures to improve transport safety;
(d) any other appropriate provisions.
2. The Provisions referred to in (a) and (b) of paragraph 1 shall be laid
down during the transitional period.
3. By way of derogation from the procedure provided for in paragraph
1, where the application of provisions concerning the principles of the
regulatory system for transport would be liable to have a serious
effect on the standard of living and on employment in certain areas
and on the operation of transport facilities, they shall be laid down by
the Council acting unanimously on a proposal from the Commission,
after consulting the European Parliament and the Economic and Social
Committee. In so doing, the Council shall take into account the need
for adaptation to the economic development which will result from
establishing the common market."
17) The title of Title I in Part Three shall be replaced by, the following:
"TITLE V
Common rules on competition and approximation of laws"
18) In Article 92(3):
- the following point shall be inserted:
"(d) aid to promote culture and heritage conservation where such aid
does not affect trading conditions and competition in the Community to
an extent that is contrary to the common interest."
- the present point (d) shall become (e).
19) Article 94 shall be replaced by the following:
"ARTICLE 94
The Council, acting by a qualified majority on a proposal from the
Commission and after consulting the European Parliament, may make
any appropriate regulations for the application of Articles 92 and 93
and may in particular determine the conditions in which Article 93(3)
shall apply and the categories of aid exempted from this procedure."
20) Article 99 shall be replaced by the following:
"ARTICLE 99
The Council shall, acting unanimously on a proposal from the
Commission and after consulting the European Parliament and the
Economic and Social Committee, adopt provisions for the
harmonization of legislation concerning turnover taxes, excise duties
and other forms of indirect taxation to the extent that such
harmonization is necessary to ensure the establishment and the
functioning of the internal market within the time limit laid down in
Article 7a."
21) Article 100 shall be replaced by the following:
"ARTICLE 100
The Council shall, acting unanimously on a proposal from the
Commission and after consulting the European Parliament and the
Economic and Social Committee, issue directives for the
approximation of such laws, regulations or administrative provisions
of the Member States as directly affects the establishment or
functioning of the common market."
22) Article l00a(1) shall be replaced by the following:
"1. By way of derogation from Article 100 and save where otherwise
provided in this Treaty, the following provisions shall apply for the
achievement of the objectives set out in Article 7a. The Council shall,
acting in accordance with the procedure referred to in Article 189b and
after consulting the Economic and Social Committee, adopt the
measures for the approximation of the provisions laid down by law,
regulation or administrative action in Member States which have as
their object the establishment and functioning of the internal market."
23) The following Article shall be inserted:
"ARTICLE l00c
1. The Council, acting unanimously on a proposal from the
Commission and after consulting the European Parliament, shall
determine the third countries whose nationals must be in possession
of a visa when crossing the external borders of the Member States.
2. However, in the event of an emergency situation in a third country
posing a threat of a sudden inflow of nationals from that country into
the Community, the Council, acting by a qualified majority on a
recommendation from the Commission, may introduce, for a period not
exceeding six months, a visa requirement for nationals from the
country in question. The visa requirement established under this
paragraph may be extended in accordance with the procedure referred
to in paragraph 1.
3. From 1 January 1996, the Council shall adopt the decisions referred
to in paragraph 1 by a qualified majority. The Council shall, before that
date, acting by a qualified majority on a proposal from the
Commission and after consulting the European Parliament, adopt
measures relating to a uniform format for visas.
4. In the areas referred to in this Article, the Commission shall
examine any request made by a Member State that it submit a
proposal to the Council.
5. This Article shall be without prejudice to the exercise of the
responsibilities incumbent upon the Member States with regard to the
maintenance of law and order and the safeguarding of internal
security.
6. This Article shall apply to other areas if so decided pursuant to
Article K.9 of the provisions of the Treaty on European Union which
relate to co-operation in the fields of justice and home affairs, subject
to the voting conditions determined at the same time.
7. The provisions of the conventions in force between the Member
States governing areas covered by this Article shall remain in force
until their content has been replaced by directives or measures
adopted pursuant to this Article."
24) The following Article shall be inserted:
"ARTICLE l00d
The Co-ordinating Committee consisting of senior officials set up by
Article K.4 of the Treaty on European Union shall contribute, without
prejudice to the provisions of Article 151, to the preparation of the
proceedings of the Council in the fields referred to in Article l00c."
25) Title II, Chapters 1, 2 and 3 in Part Three shall be replaced by the
following:
"TITLE VI
ECONOMIC AND MONETARY POLICY
CHAPTER 1
ECONOMIC POLICY
ARTICLE 102a
Member States shall conduct their economic policies with a view to
contributing to the achievement of the objectives of the Community, as
defined in Article 2, and in the context of the broad guidelines referred
to in Article 103(2). The Member States and the Community shall act in
accordance with the principle of an open market economy with free
competition, favouring an efficient allocation of resources, and in
compliance with the principle set out in Article 3a.
ARTICLE 103
1. Member States shall regard their economic policies as a matter of
common concern and shall co-ordinate them within the Council, in
accordance with the provisions of Article 102a.
2. The Council shall, acting by a qualified majority on a
recommendation from the Commission, formulate a draft for the broad
guidelines of the economic policies of the Member States and of the
Community, and shall report its findings to the European Council.
The European Council shall, acting on the basis of the report from the
Council, discuss a conclusion on the broad guidelines of the economic
policies of the Member States and of the Community.
On the basis of this conclusion, the Council shall, acting by a qualified
majority, adopt a recommendation setting out these broad guidelines.
The Council shall inform the European Parliament of its
recommendation.
3. In order to ensure closer co-ordination of economic policies and
sustained convergence of the economic performances of the Member
States, the Council shall, on the basis of reports submitted by the
Commission, monitor economic development in each of the Member
States and in the Community as well as the consistency of economic
policies with the broad guidelines referred to in paragraph 2, and
regularly carry out an overall assessment.
For the purpose of this multilateral surveillance, Member States shall
forward information to the Commission about important measures
taken by them in the field of their economic policy and other
information as they deem necessary.
4. Where it is established, under the procedure referred in paragraph
3, that the economic policies of a Member State are not consistent with
the broad guidelines referred to in paragraph 2 or that they risk
jeopardizing the proper functioning of economic and monetary union,
the Council may, acting by a qualified majority on a recommendation
from the Commission, make the necessary recommendations to the
Member State concerned. The Council may, acting by a qualified
majority on a proposal from the Commission, decide to make its
recommendations public.
The President of the Council and the Commission shall report to the
European Parliament on the result of multilateral surveillance. The
President of the Council may be invited to appear before the
competent Committee of the European Parliament if the Council has
made its recommendations public.
5. The Council, acting in accordance with the procedure referred to in
Article 189c, may adopt detailed rules for the multilateral surveillance
procedure referred to in paragraphs 3 and 4 of this Article.
ARTICLE 103a
1. Without prejudice to any other procedures provided for in this
Treaty, the Council may, acting unanimously on a proposal from the
Commission, decide upon the measures appropriate to the economic
situation, in particular if severe difficulties arise in the supply of
certain products.
2. Where a Member State is in difficulties or is seriously threatened
with severe difficulties caused by exceptional occurrences beyond its
control, the Council may, acting unanimously on a proposal from the
Commission, grant, under certain conditions, Community financial
assistance to the Member State concerned. Where the severe
difficulties are caused by natural disasters, the Council shall act by
qualified majority. The President of the Council shall inform the
European Parliament of the decision taken.
ARTICLE 104
1. Overdraft facilities or any other type of credit facility with the ECB or
with the central banks of the Member States (hereinafter referred to as
"national central banks") in favour of Community institutions or bodies,
central governments, regional, local or other public authorities, other
bodies governed by public law, or public undertakings of Member
States shall be prohibited, as shall the purchase directly from them by
the ECB or national central banks of debt instruments.
2. Paragraph 1 shall not apply to publicly-owned credit institutions
which, in the context of the supply of reserves by central banks, shall
be given the same treatment by national central banks and the ECB as
private credit institutions.
ARTICLE 104a
1. Any measure, not based on prudential considerations, establishing
privileged access by Community institutions or bodies, central
governments, regional, local or other public authorities, other bodies
governed by public law, or public undertakings of Member States to
financial institutions shall be prohibited.
2. The Council, acting in accordance with the procedure referred to in
Article 189c, shall, before 1 January 1994, specify definitions for the
application of the prohibition referred to in paragraph 1.
ARTICLE 104b
1. The Community shall not be liable for or assume the commitments
of central governments, regional, local or other public authorities,
other bodies governed by public law, or public undertakings of any
Member State, without prejudice to mutual financial guarantees for the
joint execution of a specific project. A Member State shall not be liable
for or assume the commitment of central governments, regional, local
or other public authorities, other bodies governed by public law or
public undertakings of another Member State, without prejudice to
mutual financial guarantees for the joint execution of a specific project.
2. If necessary, the Council, acting in accordance with the procedure
referred to in Article 189c, may specify definitions for the application of
the prohibitions referred to in Article 104 and in this Article.
ARTICLE 104c
1. Member States shall avoid excessive governmental deficits.
2. The Commission shall monitor the development of the budgetary
situation and of the stock of government debt in the Member States
with a view to identifying gross errors. In particular it shall examine
compliance with budgetary discipline on the basis of the following two
criteria:
(a) whether the ratio of the planned or actual government deficit to
gross domestic product exceeds a reference value, unless
- either the ratio has declined substantially and continuously and
reached a level that comes close to the reference value;
- or, alternatively, the excess over the reference value is only
exceptional and temporary and the ratio remains close to the
reference value;
(b) whether the ratio of government debt to gross domestic product
exceeds a reference value, unless the ratio is sufficiently diminishing
and approaching the reference value at a satisfactory pace.
The reference values are specified in the Protocol on the excessive
deficit procedure annexed to this Treaty.
3. If a Member State does not fulfil the requirements under one or both
of these criteria, the Commission shall prepare a report. The report of
the Commission shall also take into account whether the government
deficit exceeds government investment expenditure and take into
account all other relevant factors, including the medium term economic
and budgetary position of the Member State.
The Commission may also prepare a report if, notwithstanding the
fulfillment of the requirement under the criteria, it is of the opinion that
there is a risk of an excessive deficit in a Member State.
4. The Committee provided for in Article 109c shall formulate an
opinion on the report of the Commission.
5. If the Commission considers that an excessive deficit in a Member
State exists or may occur, the Commission shall address an opinion
to the Council.
6. The Council shall, acting by a qualified majority on a
recommendation from the Commission, and having considered any
observations which the Member State concerned may wish to make,
decide after an overall assessment whether an excessive deficit
exists.
7. Where the existence of an excessive deficit is decided according to
paragraph 6, the Council shall make recommendations to the Member
State concerned with a view to bringing that situation to an end within
a given period. Subject to the provisions of paragraph 8, these
recommendations shall not be made public.
8. Where it establishes that there has been no effective action in
response to its recommendations within the period laid down, the
Council may make its recommendations public.
9. If a Member State persists in failing to put into practice the
recommendations of the Council, the Council may decide to give notice
to the Member State to take, within a specified time limit, measures for
the deficit reduction which is judged necessary by the Council in order
to remedy the situation.
In such a case, the Council may request the Member State concerned
to submit reports in accordance with a specific timetable in order to
examine the adjustment efforts of that Member State.
10. The right to bring actions provided for in Articles 169 and 170 may
not be exercised within the framework of paragraphs 1 to 9 of this
Article.
11. As long as a Member State fails to comply with a decision taken in
accordance with paragraph 9, the Council may decide to apply the
following measures:
- to require the Member State concerned to publish additional
information, to be specified by the Council, before issuing bonds and
securities;
- to invite the European Investment Bank to reconsider its lending
policy towards the Member State concerned;
- to require the Member State concerned to make a non-interest-
bearing deposit of an appropriate size with the Community until the
excessive deficit has, in the view of the Council, been corrected;
- to impose fines of an appropriate size.
The President of the Council shall inform the European Parliament of
the decisions taken.
12. The Council shall abrogate some or all of its decisions referred to
in paragraphs 6 to 9 and 11 to the extent that the excessive deficit in
the Member State concerned has, in the view
of the Council, been corrected. If the Council has previously made
public recommendations, it shall, as soon as the decision under
paragraph 8 has been abrogated, make a public statement that an
excessive deficit in the Member State concerned no longer exists.
13. When taking the decisions referred to in paragraphs 7 to 9, 11 and
12, the Council shall act on a recommendation from the Commission
by a majority of two thirds of the votes of its members weighted in
accordance with Article 148(2), excluding the votes of the
representative of the Member State concerned.
14. Further provisions relating to the implementation of the procedure
described in this Article are set out in the Protocol on the excessive
deficit procedure annexed to this Treaty.
The Council shall, acting unanimously on a proposal from the
Commission and after consulting the European Parliament and the
ECB, adopt the appropriate provisions which shall then replace the
said Protocol.
Subject to the other provisions of this paragraph the Council shall,
before 1 January 1994, acting by a qualified majority on a proposal
from the Commission and after consulting the European Parliament,
lay down detailed rules and definitions for the application of the
provisions of the said Protocol.
CHAPTER 2
MONETARY POLICY
ARTICLE 105
1. The primary objective of the ESCB shall be to maintain price
stability. Without prejudice to the objective of price stabilty, the ESCB
shall support the general economic policies in the Community with a
view to contributing to the achievement of the objectives of the
Community as laid down in Article 2. The ESCB shall act in accordance
with the principle of an open market economy with free competition,
favouring an efficient allocation of resources, and in compliance with
the principles set out in Article 3a.
2. The basic tasks to be carried out through the ESCB shall be:
- to define and implement the monetary policy of the Community;
- to conduct foreign exchange operations consistent with the
provisions of Article 109;
- to hold and manage the official foreign reserves of the Member
States;
- to promote the smooth operation of payment systems.
3. The third indent of paragraph 2 shall be without prejudice to the
holding and management by the government of Member States of
foreign exchange working balances.
4. The ECB shall be consulted:
- on any proposed Community act in its fields of competence;
- by national authorities regarding any draft legislative provision in its
fields of competence, but within the limits and under the conditions set
out by the Council in accordances with the procedure laid down in
Article 106(6).
The ECB may submit opinions to the appropriate Community
institutions or bodies or to national authorities on matters in its fields
of competence.
5. The ESCB shall contribute to the smooth conduct of policies
pursued by the competent authorities relating to the prudential
supervision of credit institutions and the stability of the financial
system.
6. The Council may, acting unanimously on a proposal from the
Commission and after consulting the ECB and after receiving the
assent of the European Parliament, confer upon the ECB specific tasks
concerning policies relating to the prudential supervision of credit
institutions and other financial institutions with the exception of
insurance undertakings.
ARTICLE 105a
1. The ECB shall have the exclusive right to authorize the issue of
bank note within the Community. The ECB and the national central
banks may issue such notes. The bank notes issued by the ECB and
the national central banks shall be the only such notes to have the
status of legal tender within the Community.
2. The Member States may issue coins subject to approval by the ECB
of the volume of the issue. The Council may, acting in accordance with
the procedure referred to in Article 189c and after consulting the ECB,
adopt measures to harmonize the denominations and technical
specifications of all coins intended for circulation to the extent
necessary to permit their smooth circulation within the Community.
ARTICLE 106
1. The ESCB shall be composed of the ECB and of the national central
banks.
2. The ECB shall have legal personality.
3. The ESCB shall be governed by the decision-making bodies of the
ECB which shall be the Governing Council and the Executive Board.
4. The Statute of the ESCB is laid down in a Protocol annexed to this
Treaty.
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3. 32.4,
32.6, 33.l(a) and 36 of the Statute of the ESCB may be amended by the
Council, acting either by a qualified majority on a recommendation
from the ECB and after consulting the Commission or unanimously on
a proposal from the Commission and after consulting the ECB. In
either case, the assent of the European Parliament shall be required.
6. The Council, acting by a qualified majority either on a proposal from
the Commission and after consulting the European Parliament and the
ECB or on a recommendation from the ECB and after consulting the
European Parliament and the Commission, shall adopt the provisions
referred to in Articles 4, 5.4, 19.2, 20, 28-1, 29.2, 30.4 and 34.3 of the
Statute of the ESCB.
ARTICLE 107
When exercising the powers and carrying out the tasks and duties
conferred upon them by this Treaty and the Statute of the ESCB,
neither the ECB, nor a national central bank, nor any member of their
decision-making bodies shall seek or take instructions from
Community institutions or bodies, from any government of a Member
State or from any other body. The Community institutions and bodies
and the governments of the Member States undertake to respect this
principle and not to seek to influence the members of the decision-
making bodies of the ECB or of the national central banks in the
performance of their tasks.
ARTICLE 108
Each Member State shall ensure, at the latest at the date of the
establishment of the ESCB, that its national legislation including the
statutes of its national central bank is compatible with this Treaty and
the Statute of the ESCB.
ARTICLE 108a
1. In order to carry out the tasks entrusted to the ESCB, the ECB shall,
in accordance with the provisions of this Treaty and under the
conditions laid down in the Statute of the ESCB:
- make regulations to the extent necessary to implement the tasks
defined in Article 3.1, first indent, Articles 19.1, 22 and 25.2 of the
Statute of the ESCB and in cases which shall be laid down in the acts
of the Council referred to in Article 106(6);
- take decisions necessary for carrying out the tasks entrusted to the
ESCB under this Treaty and the Statute of the ESCB;
- make recommendations and deliver opinions.
2. A regulation shall have general application. It shall be binding in its
entirety and directly applicable in all Member States.
Recommendations and opinions shall have no binding force.
A decision shall be binding in its entirety upon those to whom it is
addressed.
Articles 190 to 192 shall apply to regulations and decisions adopted
by the ECB.
The ECB may decide to publish its decisions, recommendations and
opinions.
3. Within the limits and under the conditions adopted by the Council
under the procedure laid down in Article 106(6), the ECB shall be
entitled to impose fines or periodic penalty payments on undertakings
for failure to comply with obligations under its regulations and
decisions.
ARTICLE 109
1. By way of derogation from Article 228, the Council may, acting
unanimously on a recommendation from the ECB or from the
Commission, and after consulting the ECB in an endeavour to reach a
consensus consistent with the objective of price stability, after
consulting the European Parliament, in accordance with the procedure
in paragraph 3 for determining the arrangements, conclude formal
agreements on an exchange rate system for the ECU in relation to
non-Community currencies. The Council may, acting by a qualified
majority on a recommendation from the ECB or from the Commission,
and after consulting the ECB in an endeavour to reach a consensus
consistent with the objective of price stability, adopt, adjust or
abandon the central rates of the ECU within the exchange rate system.
The President of the Council shall inform the European Parliament of
the adoption, adjustment or abandonment of the ECU central rates.
2. In the absence of an exchange rate system in relation to one or
more non-Community currencies as referred to in paragraph 1, the
Council, acting by a qualified majority either on a recommendation
from the Commission and after consulting the ECB or on a
recommendation from the ECB, may formulate general orientations for
exchange-rate policy in relation to these currencies. These general
orientations shall be without prejudice to the primary objective of the
ESCB to maintain price stability.
3. By way of derogation from Article 228, where agreements
concerning monetary or foreign exchange regime matters need to be
negotiated by the Community with one or more States or international
organizations, the Council, acting by a qualified majority on a
recommendation from the Commission and after consulting the ECB,
shall decide the arrangements for the negotiation and for the
conclusion of such agreements. These arrangements shall ensure that
the Community expresses a single position. The Commission shall be
fully associated with the negotiations.
Agreements concluded in accordance with this paragraph shall be
binding on the institutions of the Community, on the ECB and on
Member States.
4. Subject to paragraph 1, the Council shall, on a proposal from the
Commission and after consulting the ECB, acting by a qualified
majority decide on the position of the Community at international level
as regards issues of particular relevance to economic and monetary
union and, acting unanimously, decide its representation in
compliance with the allocation of powers laid down in Articles 103 and
105.
5. Without prejudice to Community competence and Community
agreements as regards economic and monetary union, Member States
may negotiate in international bodies and conclude international
agreements.
CHAPTER 3
INSTITUTIONAL PROVISION
ARTICLE 109a
1. The Governing Council of the ECB shall comprise the members of
the Executive Board of the ECB and the Governors of the national
central banks.
2 (a) The Executive Board shall comprise the President, the Vice-
President and four other members.
(b) The President, the Vice-President and the other members of the
Executive Board shall be appointed from among the persons of
recognized standing and professional experience in monetary or
banking matters by common accord of the Governments of the Member
States at the level of Heads of State or of Government, on a
recommendation from the Council, after it has consulted the European
Parliament and the Governing Council of the ECB.
Their term of office shall be eight years and shall not be renewable.
Only nationals of Member States may be members of the Executive
Board.
ARTICLE 109b
1. The President of the Council and a member of the Commission may
participate, without having the right to vote, in meetings of the
Governing Council of the ECB.
The President of the Council may submit a motion for deliberation to
the Governing Council of the ECB.
2. The President of the ECB shall be invited to participate in Council
meetings when the Council is discussing matters relating to the
objectives and tasks of the ESCB.
3. The ECB shall address an annual report on the activities of the
ESCB and on the monetary policy of both the previous and current
year to the European Parliament, the Council and the Commission, and
also to the European Council. The President of the ECB shall present
this report to the Council and to the European Parliament, which may
hold a general debate on that basis.
The President of the ECB and the other members of the Executive
Board may, at the request of the European Parliament or on their own
initiative, be heard by the competent Committees of the European
Parliament.
ARTICLE 109c
1. In order to promote co-ordination of the policies of Member States to
the full extent needed for the functioning of the internal market, a
Monetary Committee with advisory status is hereby set up.
It shall have the following tasks:
- to keep under review the monetary and financial situation of the
Member States and of the Community and the general payments
system of the Member States and to report regularly thereon to the
Council and to the Commission;
- to deliver opinions at the request of the Council or of the
Commission, or on its own initiative for submission to those
institutions;
- without prejudice to Article 151, to contribute to the preparation of the
work of the Council referred to in Articles 73f, 73g, 103(2), (3), (4) and
(5), 103a, 104a, 104b, 104c, 109e(2), 109f(6), 109h, 109i, 109j(2) and
109k(1);
- to examine, at least once a year, the situation regarding the
movement of capital and the freedom of payments, as they result from
the application of this Treaty and of measures adopted by the Council;
the examination shall cover all measures relating to capital
movements and payments; the Committee shall report to the
Commission and to the Council on the outcome of this examination.
The Member States and the Commission shall each appoint two
members of the Monetary Committee.
2. At the start of the third stage, and Economic and Financial
Committee shall be set up. The Monetary Committee provided for in
paragraph 1 shall be dissolved.
The Economic and Financial Committee shall have the following tasks:
- to deliver opinions at the request of the Council or of the
Commission, or on its own initiative for submission to those
institutions;
- to keep under review the economic and financial situation of the
Member States and of the Community and to report regularly thereon
to the Council and to the Commission, in particular on financial
relations with third countries and international institutions;
- without prejudice to Article 151, to contribute to the preparation of the
work of the Council referred to in Article 73f, 73g, 103(2), (3),(4) and (5),
103a, 104a, 104b, 104c, 105(6), 105a(2), 106(5) and (6), 109, 109h,
109i(2) and (3), 109k(2), 109l(4) and (5), and to carry out other advisory
and preparatory tasks assigned to it by the Council;
- to examine, at least once a year, the situation regarding the
movement of capital and the freedom of payments, as they result from
the application of this Treaty and of measures adopted by the Council;
the examination shall cover all measures relating to capital
movements and payments; the Commission shall report to the
Commission and to the Council on the outcome of this examination.
The Member States, the Commission and the ECB shall each appoint
no more than two members of the Committee.
3. The Council shall, acting by qualified majority on a proposal from
the Commission and after consulting the ECB and the Committee
referred to in this Article, lay down detailed provisions concerning the
composition of the Economic and Financial Committee. The President
of the Council shall inform the European Parliament of such a
decision.
4. In addition to the tasks set in paragraph 2, if and as long as there
are Member States with a derogation as referred to in Articles 109k
and 109l, the Committee shall keep under review the monetary and
financial situation and the general payments system of those Member
States and report regularly thereon to the Council and to the
Commission.
ARTICLE 109d
For matters within the scope of Articles 103(4), 104c with the exception
of paragraph 14, 109, 109j, 109k and 109l(4) and (5), the Council or a
Member State may request the Commission to make a
recommendation or a proposal, as appropriate. The Commission shall
examine this request and submit its conclusions to the Council without
delay.
CHAPTER 4
TRANSITIONAL PROVISIONS
ARTICLE 109e
1. The second stage for achieving economic and monetary union shall
begin on 1 January 1994.
2. Before that date
(a) each Member State shall:
- adopt, where necessary, appropriate measures to comply with the
prohibitions laid down in article 73b, without prejudice to Article 73e,
and in Articles 104 and 104a(1);
- adopt, if necessary, with a view to permitting the assessment
provided for in subparagraph (b), multiannual programmes intended to
ensure the lasting convergence necessary for the achievement of
economic and monetary union, in particular with regard to price
stability and sound public finances;
(b) the Council shall, on the basis of a report from the Commission,
assess the progress made with regard to economic and monetary
convergence, in particular with regard to price stability and sound
public finances, and the progress made with the implementation of
Community law concerning the internal market.
3. The provision of Articles 104, 104a(1), 104b(1), and 104c with the
exception of paragraphs 1,9,11 and 14 shall apply from the beginning
of the second stage.
The provision of Articles 103a(2), 104c(1), (9) and (11), 105, 105a, 107,
109, 109a, 109b and 109c(2) and (4) shall apply from the beginning of
the third stage.
4. In the second stage, Member States shall endeavour to avoid
excessive government deficits.
5. During the second stage, each Member State shall, as appropriate,
start the process leading to the independence of its central bank, and
in accordance with Article 108.
ARTICLE 109f
1. At the start of the second stage, a European Monetary Institute
(hereinafter referred to as "EMI") shall be established and take up its
duties; it shall have legal personality and be directed and managed by
a Council, consisting of a President and the Governors of the national
central banks, one of whom shall be Vice-President.
The President shall be appointed by common accord of the
Governments of the Member States at the level of Heads of State or of
Government, on a recommendation from, as the case may be, the
Committee of Governors of the central banks of the Member States
(hereinafter referred to as "Committee of Governors") or the Council of
the EMI, and after consulting the European Parliament and the Council.
The President shall be selected from among persons of recognized
standing and professional experience in monetary or banking matters.
Only nationals of Member States may be President of the EMI. The
Council of the EMI shall appoint the Vice-President.
The Statute of the EMI is laid down in a Protocol annexed to this
Treaty.
The Committee of Governors shall be dissolved at the start of the
second stage.
2. The EMI shall:
- strengthen co-operation between the national central banks;
- strengthen the co-ordination of monetary policies of the Member
States, with the aim of ensuring price stability;
- monitor the functioning of the European Monetary System;
- hold consultations concerning issues falling within the competence of
the national central banks and affecting the stability of financial
institutions and markets;
- take over the tasks of the European Monetary Cooperation Fund,
which shall be dissolved; the modalities of dissolution are laid down
in the Statute of the EMI;
- facilitate the use of the ECU and oversee its development, including
the smooth functioning of the ECU clearing system.
3. For the preparation of the third stage, the EMI shall:
- prepare the instruments and procedures necessary for carrying out a
single monetary policy in the third stage;
- promote the harmonization, where necessary, of rules and practices
governing the collection, compilation and distribution of statistics in
the areas in the areas within its field of competence;
- prepare the rules for operations to be undertaken by the national
central banks within the framework of the ESCB;
- promote the efficiency of cross-border payments;
- supervise the technical preparation of ECU bank notes.
At the latest by 31 December 1996, the EMI shall specify the
regulatory, organizational and logistical framework necessary for the
ESCB to perform its tasks in the third stage. This framework shall be
submitted for decision to the ECB at the date of its establishment.
4. The EMI, acting by a majority of two thirds of the members of its
Council, may:
- formulate opinions or recommendations on the overall orientation of
monetary policy and exchange rate policy as well as on related
measures introduced in each Member State;
- submit opinions or recommendations to Governments and to the
Council on policies which might affect the internal or external
monetary situation in the Community and, in particular, the functioning
of the European Monetary System;
- make recommendations to the monetary authorities of the Member
States concerning the conduct of monetary policy.
5. The EMI, acting unanimously, may decided to publish its opinions
and its recommendations.
6. The EMI shall be consulted by the Council regarding any proposed
Community act within its field of competence.
Within the limits and under the conditions set out by the Council,
acting by a qualified majority on a proposal from the Commission and
after consulting the European Parliament and the EMI, the EMI shall be
consulted by the authorities of the Member States on any draft
legislative provision within its field of competence.
7. The Council may, acting unanimously on a proposal from the
Commission and after consulting the European Parliament and the
EMI, confer upon the EMI other tasks for the preparation of the third
stage.
8. Where this Treaty provides for a consultative role for the ECB,
reference to the ECB shall be read as referring to the EMI before the
establishment of the ECB. Where this Treaty provides for a
consultative role for the EMI, references to the EMI shall be read,
before 1 January 1994, as referring to the Committee of Governors.
9. During the second stage, the term "ECB" used in Articles 173, 175,
176, 177, 180 and 215 shall be read as referring to the EMI.
ARTICLE 109g
The currency composition of the ECU basket shall not be changed.
From the start of the third stage, the value of the ECU shall be
irrevocably fixed in accordance with Article 109l(4).
ARTICLE 109h
1. Where a Member State is in difficulties or is seriously threatened
with difficulties as regards its balance of payments either as a result
of a overall disequilibrium in its balance of payments, or as a result of
the type of currency at its disposal, and where such difficulties are
liable in particular to jeopardize the functioning of the common market
or the progressive implementation of the common commercial policy,
the Commission shall immediately investigate the position of the State
in question and the action which, making use of all means at its
disposal, that State has taken or may take in accordance with the
provisions of this Treaty. The Commission shall state what measures
it recommends the State concerned to take.
If the action taken by a Member States and the measures suggested
by the Commission do not prove sufficient to overcome the difficulties
which have arisen or which threaten, the Commission shall, after
consulting the Committee referred to in Article 109c, recommend to the
Council the granting of mutual assistance and appropriate methods
therefor.
The Commission shall keep the Council regularly informed of the
situation of how it is developing.
2. The Council, acting by a qualified majority, shall grant such mutual
assistance; it shall adopt directives or decisions laying down the
conditions and details of such assistance, which may take such forms
as:
(a) a concerted approach to or within any other international
organizations to which Member States may have recourse;
(b) measures needed to avoid deflection of trade where the State which
is in difficulties maintains or reintroduces quantitative restrictions
against third countries;
(c) the granting of limited credits by other Member States, subject to
their agreement.
3. If the mutual assistance recommended by the Commission is not
granted by the Council or if the mutual assistance granted and the
measures taken are insufficient, the Commission shall authorize the
State which is in difficulties to take protective measures, the
conditions and details of which the Commission shall determine.
Such authorization may be revoked and such conditions and details
may be changed by the Council acting by a qualified majority.
4. Subject to Article 109k(6), this Article shall cease to apply from the
beginning of the third stage.
ARTICLE 109i
1. Where a sudden crisis in the balance of payments occurs and a
decision within the meaning of Article 109h(2) is not immediately
taken, the Member State concerned may, as a precaution, take the
necessary protective measures. Such measures must cause the least
possible disturbance in the functioning of the common market and
must not be wider in scope than is strictly necessary to remedy the
sudden difficulties which have arisen.
2. The Commission and the other Member State shall be informed of
such protective measures not later than when they enter into force.
The Commission may recommend to the Council the granting of mutual
assistance under Article 109h.
3. After the Commission has delivered an opinion and the Committee
referred to in Article 109c has been consulted, the Council may, acting
by a qualified majority, decide that the State concerned shall amend,
suspend or abolish the protective measures referred to above.
4. Subject to Article 109k(6), this Article shall cease to apply from the
beginning of the third stage.
ARTICLE 109j
1. The Commission and the EMI shall report to the Council on the
progress made in the fulfilment by the Member States of their
obligations regarding the achievement of economic and monetary
union. These reports shall include an examination of the compatibility
between each Member State's national legislation, including the
statutes of its national central bank, and Articles 107 and 108 of this
Treaty and the Statute of the ESCB. The report shall also examine the
achievement of a high degree of sustainable convergence by
reference to the fulfilment by each Member State of the following
criteria:
- the achievement of a high degree of price stability; this will be
apparent from rate of inflation which is close to that of, at most, the
three best performing Member States in terms of price stability;
- the sustainability of the government financial position; this will be
apparent from having achieved a government budgetary position
without a deficit that is excessive as determined in accordance with
Article 104c(6);
- the observance of the normal fluctuation margins provided for by the
Exchange Rate Mechanism of the European Monetary System, for at
least two years, without devaluing against the currency of any other
Member State;
- the durability of convergence achieved by the Member State and of
its participation in the Exchange Rate Mechanism of the European
Monetary System being reflected in the long-term interest rate levels.
The four criteria mentioned in this paragraph and the relevant periods
over which they are to be respected are developed further in a
Protocol annexed to this Treaty. The reports of the Commission and
the EMI shall also take account of the development of the ECU, the
results of the integration of markets, the situation and development of
the balances of payments on current account and an examination of
the development of unit labour costs and other price indices.
2. On the basis of these reports, the Council, acting by a qualified
majority on a recommendation from the Commission, shall assess:
- for each Member State, whether it fulfils the necessary conditions for
the adoption of a single currency;
- where a majority of the Member States fulfil the necessary conditions
for the adoption of a single currency,
and recommend its findings to the Council, meeting in the composition
of the Heads of State or of Government. The European Parliament
shall be consulted and forward its opinion to the Council, meeting in
the composition of the Heads of State or of Government.
3. Taking due account of the reports referred to in paragraph 1 and the
opinion of the European Parliament referred to in paragraph 2, the
Council, meeting in the composition of Heads of State or of
Government, shall acting by a qualified majority, not later than 31
December 1996:
- decide, on the basis of the recommendations of the Council referred
to in paragraph 2, whether a majority of the Member States fulfil the
necessary conditions for the adoption of a single currency;
- decide whether it is appropriate for the Community to enter the third
stage, and if so
- set the date for the beginning of the third stage.
4. If by the end of 1997 the date for the beginning of the third stage has
not been set, the third stage shall start on 1 January 1999. Before 1
July 1998, the Council, meeting in the composition of heads of State or
of Government, after a repetition of the procedure provided for in
paragraphs 1 and 2, with the exception of the second indent of
paragraph 2, taking into account the reports referred to in paragraph 1
and the opinion of the European parliament, shall, acting by a qualified
majority and on the basis of the recommendations of the Council
referred to in paragraph 2, confirm which member States fulfil the
necessary conditions for the adoption of a single currency.
ARTICLE 109k
1. If the decision has been taken to set the date in accordance with
Article 109j(3), the Council shall, on the basis of its recommendation
referred to in Article 109j(2), acting by a qualified majority on a
recommendation from the Commission, decide whether any, and if so
which, Member States shall have a derogation as defined in paragraph
3 of this Article. Such Member States shall in this Treaty be referred to
as "Member States with a derogation".
If the Council has confirmed which Member States fulfil the necessary
conditions for the adoption of a single currency, in accordance with
Article 109j(4), those Member States which do not fulfil the conditions
shall have a derogation as defined in paragraph 3 of this Article. Such
Member States shall in this Treaty be referred to as "Member States
with a derogation".
2. At least once every two years, or at the request of a Member State
with a derogation, the Commission and the ECB shall report to the
Council in accordance with the procedure laid down in Article 109j(1).
After consulting the European Parliament and after discussion in the
Council, meeting in the composition of the Heads of State or of
Government, the Council shall, acting by a qualified majority on a
proposal from the Commission, decide which Member States with a
derogation fulfil the necessary conditions on the basis of the criteria
set out in Article 109j(1), and abrogate the derogations of the Member
States concerned.
3. A derogation referred to in paragraph 1 shall entail that the following
Articles do not apply to the Member State concerned: Articles 104c(9)
and (11), 105(1),(2), (3) and (5), 105a, 108a, 109, 109a(2)(b). The
exclusion of such a Member State and its national central bank from
rights and obligations within the ESCB is laid down in Chapter IX of the
Statute of the ESCB.
4. In Articles 105(1), (2) ,and (3), 105a, 108a, 109 and 109a(2)(b),
"Member States" shall be read as "Member States without a
derogation".
5. The voting rights of Member States with a derogation shall be
suspended for the Council decisions referred to in the Articles of this
Treaty mentioned in paragraph 3. In that case, by way of derogation
from Articles 148 and 189a(1), a qualified majority shall be defined as
two thirds of the votes of the representatives of the Member States
without derogation weighted in accordance with Article 148(2), and
unanimity of those Member States shall be required for an act
requiring unanimity.
6. Articles 109h and 109i shall continue to apply to a Member State
with a derogation.
ARTICLE 109l
1. Immediately after the decision on the date for the beginning of the
third stage has been taken in accordance with Article 109j(3), or, as the
case may be, immediately after 1 July 1998:
- the Council shall adopt the provisions referred to in Article 106(6);
- the governments of the Member States without a derogation shall
appoint, in accordance with the procedure set out in Article 50 of the
Statute of the ESCB, the President, the Vice-President and the other
members of the Executive Board of the ECB. If there are Member
States with a derogation, the number of members of the Executive
Board may be smaller than provided for in Article 11.1 of the Statute of
the ESCB, but in no circumstances shall it be less than four.
As soon as the Executive Board is appointed, the ESCB and the ECB
shall be established and shall prepare for their full operation as
described in this Treaty and the Statute of the ESCB. The full exercise
of their powers shall start from the first day of the third stage.
2. As soon as the ECB is established, it shall, if necessary, take over
tasks of the EMI. The EMI shall go into liquidation upon the
establishment of the ECB; the modalities of liquidation are laid down
in the Statute of the EMI.
3. If and as long as there are Member States with a derogation, and
without prejudice to Article 106(3) of this Treaty, the general Council of
the ECB referred to in Article 45 of the Statute of the ESCB shall be
constituted as a third decision-making body of the ECB.
4. At the starting date of the third stage, the Council shall, acting with
the unanimity of the Member States without derogation, on a proposal
from the Commission and after consulting the ECB, adopt the
conversion rates at which their currencies shall be irrevocably fixed
and at which irrevocably fixed rate the ECU shall be substituted for
these currencies, and the ECU will become a currency in its own right.
This measure shall by itself not modify the external value of the ECU.
The Council shall, acting according to the same procedure, also take
the other measures necessary for the rapid introduction of the ECU as
the single currency of those Member States.
5. If it is decided, according to the procedure set out in Article 109k(2),
to abrogate a derogation, the Council shall, acting with the unanimity
of the Member States without a derogation and the Member State
concerned, on a proposal from the Commission and after consulting
the ECB, adopt the rate at which the ECU shall be substituted for the
currency of the Member State concerned, and take the other measures
necessary for the introduction of the ECU as the single currency in the
Member State concerned.
ARTICLE 109m
1. Until the beginning of the third stage, each Member State shall treat
its exchange rate policy as a matter of common interest. In doing so,
Member States shall take account of the experience acquired in co-
operation within the framework of the European Monetary System
(EMS) and in developing the ECU, and shall respect existing powers in
this field.
2. From the beginning of the third stage and for as long as a member
State has a derogation, paragraph 1 shall apply by analogy to the
exchange rate policy of that Member State."
26) In Title II of Part Three, the title of Chapter 4 shall be replaced by
the following:
"TITLE VII
Common Commercial Policy"
27) Article 111 shall be repealed.
28) Article shall be replaced with the following:
"ARTICLE 113
1. The common commercial policy shall be based on uniform
principles, particularly in regard to changes in tariff rates, the
conclusion of tariff and trade agreements, the achievement of
uniformity in measures of liberalization, export policy and measures
to protect trade such as those to be taken in the event of dumping or
subsidies.
2. The Commission shall submit proposals to the Council for
implementing the common commercial policy.
3. Where agreements with one or more States or international
organizations need to be negotiated, the Commission shall make
recommendations to the Council, which shall authorize the
Commission to open the necessary negotiations.
The Commission shall conduct these negotiations in consultation with
a special committee appointed by the Council to assist the
Commission in this task and within the framework of such directives
as the Council may issue to it.
The relevant provision of Article 228 shall apply.
4. In exercising the powers conferred upon it by this Article, the
Council shall act by a qualified majority."
29) Article 114 shall be repealed.
30) Article 115 shall be replaced by the following:
"ARTICLE 115
In order to ensure that the execution of measures of commercial policy
taken in accordance with this Treaty by any Member State is not
obstructed by deflection of trade, or where differences between such
measures lead to economic difficulties in one or more Member States,
the Commission shall recommend the methods for the requisite co-
operation between Member States. Failing this, the Commission may
authorise Member States to take the necessary protective measures,
the conditions and details of which it shall determine.
In case of urgency,Member States shall request authorization to take
the necessary measures themselves from the Commission, which
shall take a decision as soon as possible; the Member States
concerned shall then notify the measures to the other Member States.
The Commission may decide at any time that the Member States
concerned shall amend or abolish the measures in question.
In the selection of such measures, priority shall be given to those
which cause the least disturbance to the functioning of the common
market."
31) Article 116 shall be repealed.
32) In Part Three, the title of Title III shall be replaced by the following:
"TITLE VIII
Social Policy, Education,
Vocational Training and Youth"
33) The first subparagraph of Article 118a(2) shall be replaced by the
following:
"2. In order to help achieve the objective laid down in the first
paragraph, the Council, acting in accordance with the procedure
referred to in Article 189c and after consulting the Economic and Social
Committee, shall adopt by means of directives, minimum
requirements for gradual implementation, having regard to the
conditions and technical rules obtaining in each of the Member
States."
34) Article 123 shall be replaced by the following:
"ARTICLE 123
In order to improve employment opportunities for workers in the
internal market and to contribute thereby to raising the standard of
living, a European Social Fund is hereby established in accordance
with the provisions set out below; it shall aim to render the
employment of workers easier and to increase their geographical and
occupational mobility within the Community, and to facilitate their
adaptation to industrial changes and to changes in production
systems, in particular through vocational training and retraining".
35) Article 125 shall be replaced by the following:
"ARTICLE 125
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall adopt implementing decisions relating to the European Social
Fund."
36) Articles 126,127 and 128 shall be replaced by the following:

"CHAPTER 3
EDUCATION, VOCATIONAL TRAINING AND YOUTH
ARTICLE 126
1. The Community shall contribute to the development of quality
education by encouraging co-operation between Member States and, if
necessary, by supporting and supplementing their action, while fully
respecting the responsibility of the Member States for the content of
teaching and the organization of education systems and their cultural
and linguistic diversity.
2. Community action shall be aimed at:
- developing the European dimension in education, particularly
through the teaching and dissemination of the languages of the
Member States;
- encouraging mobility of students and teachers, inter alia by
encouraging the academic recognition of diplomas and periods of
study;
- promoting co-operation between educational establishments;
- developing exchanges of information and experience on issues
common to the education systems of the Member States;
- encouraging the development of youth exchanges and of exchanges
of socio-educational instructors;
- encouraging the development of distance education.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the field of education, in particular the Council of Europe
4. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b,
after consulting the Economic and Social Committee and the
Committee of the Regions, shall adopt incentive measures, excluding
any harmonization of the laws and regulations of the Member States;
- acting by a qualified majority on a proposal from the Commission,
shall adopt recommendations.
ARTICLE 127
1. The Community shall implement a vocational training policy which
shall support and supplement the action of the Member States, while
fully respecting the responsibility of the Member States for the content
and organization of vocational training.
2. Community action shall aim to:
- facilitate adaptation to industrial changes, in particular through
vocational training and retraining;
- improve initial and continuing vocational training in order to facilitate
vocational integration and reintegration into the labour market;
- facilitate access to vocational training and encourage mobility of
instructors and trainees and particularly young people;
- stimulate co-operation on training between educational or training
establishments and firms;
- develop exchanges of information and experience on issues
common to the training systems of the Member States.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the sphere of vocational training.
4. The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall adopt measures to contribute to the achievement of the
objectives referred to in this Article, excluding any harmonization of
the laws and regulations of the Member States."
37) The following shall be inserted:
"TITLE IX
Culture
ARTICLE 128
1. The Community shall contribute to the flowering of the cultures of
the Member States, while respecting their national and regional
diversity and at the same time bringing the common cultural heritage
to the fore.
2. Action by the Community shall be aimed at encouraging co-
operation between Member States and, if necessary, supporting and
supplementing their action in the following areas:
- improvement of the knowledge and dissemination of the culture and
history of the European peoples;
- conservation and safeguarding of cultural heritage of European
significance;
- non-commercial cultural exchanges;
- artistic and literary creation, including in the audiovisual sector.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the sphere of culture, in particular the Council of Europe.
4. The Community shall take cultural aspects into account in its action
under other provisions of this Treaty.
5. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b
and after consulting the Committee of the Regions, shall adopt
incentive measures, excluding any harmonization of the laws and
regulations of the Member States. The Council shall act unanimously
throughout the procedures referred to in Article 189b;
- acting unanimously on a proposal from the Commission, shall adopt
recommendations."
38) Titles IV, V, VI and VII shall be replaced by the following:
"TITLE X
Public Health
ARTICLE 129
1. The Community shall contribute towards ensuring a high level of
human health protection by encouraging co-operation between the
Member States and, if necessary, lending support to their action.
Community action shall be directed towards the prevention of
diseases, in particular the major health scourges, including drug
dependence, by promoting research into their causes and their
transmission, as well as health information and education.
Health protection requirements shall form a constituent part of the
Community's other policies.
2. Member States shall, in liaison with the Commission, co-ordinate
among themselves their policies and programmes in the areas
referred to in paragraph 1. The Commission may, in close contact with
the Member States, take any useful initiative to promote such co-
ordination.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the sphere of public health.
4. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b,
after consulting the Economic and Social Committee and the
Committee of the Regions, shall adopt incentive measures, excluding
any harmonization of the laws and regulations of the Member States;
- acting by a qualified majority on a proposal from the Commission,
shall adopt recommendations.
TITLE XI
Consumer protection
ARTICLE 129a
1. The Community shall contribute to the attainment of a high level of
consumer protection through:
(a) measures adopted pursuant to Article 100a in the context of the
completion of the internal market;
(b) specific action which supports and supplements the policy pursued
by the Member States to protect the health, safety and economic
interests of consumers and to provide adequate information to
consumers.
2. The Council, acting in accordance with the procedure referred to in
Article 189b and after consulting the Economic and Social Committee,
shall adopt the specific action referred to in paragraph 1(b).
3. Action adopted pursuant to paragraph 2 shall not prevent any
Member State from maintaining or introducing more stringent
protective measures. Such measures must be compatible with this
Treaty. The Commission shall be notified of them.
TITLE XII
Trans-European networks
ARTICLE 129b
1. To help achieve the objectives referred to in Articles 7a and 130a
and to enable citizens of the Union, economic operators and regional
and local communities to derive the full benefit from the setting up of
an area without internal frontiers, the Community shall contribute to
the establishment and development of trans-European networks in the
areas of transport, telecommunications and energy infrastructures.
2. Within the framework of a system of open and competitive markets,
action by the Community shall aim at promoting the interconnection
and inter-operability of national networks as well as access to such
networks. It shall take account in particular of the need to link island,
landlocked and peripheral regions with the central regions of the
Community.
ARTICLE 129c
1. In order to achieve the objectives referred to in Article 129b, the
Community:
- shall establish a series of guidelines covering the objectives,
priorities and broad lines of measures envisaged in the sphere of
trans-European networks; these guidelines shall identify projects of
common interest;
- shall implement any measures that may prove necessary to ensure
the inter-operability of the networks, in particular in the field of
technical standardization;
- may support the financial efforts made by the Member States for
projects of common interest financed by Member States, which are
identified in the framework of the guidelines referred to in the first
indent, particularly through feasibility studies, loan guarantees or
interest rate subsidies; the Community may also contribute, through
the Cohesion Fund to be set up no later than 31 December 1993
pursuant to Article 130d, to the financing of specific projects in
Member States in the area of transport infrastructure.
The Community's activities shall take into account the potential
economic viability of the projects.
2. Member States shall, in liaison with the Commission, co-ordinate
among themselves the policies pursued at national level which may
have a significant impact on the achievement of the objectives
referred to in Article 129b. The Commission may, in close co-operation
with the Member States, take any useful initiative to promote such co-
ordination.
3. The Community may decide to co-operate with third countries to
promote projects of mutual interest and to ensure the inter-operability
of networks.
ARTICLE 129d
The guidelines referred to in Article 129c(1) shall be adopted by the
Council, acting in accordance with the procedure referred to in Article
189b and after consulting the Economic and Social Committee and the
Committee of the Regions.
Guidelines and projects of common interest which relate to the
territory of a Member State shall require the approval of the Member
State concerned.
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee
and the Committee of the Regions, shall adopt the other measures
provided for in Article 129c(1).
TITLE XIII
Industry
ARTICLE 130
1. The Community and the Member States shall ensure that the
conditions necessary for the competitiveness of the Community's
industry exist.
For that purpose, in accordance with a system of open and competitive
markets, their action shall be aimed at:
- speeding up the adjustment of industry to structural changes;
- encouraging an environment favourable to initiative and to the
development of undertakings throughout the Community, particularly
small and medium-sized undertakings;
- encouraging an environment favourable to co-operation between
undertakings;
- fostering better exploitation of the industrial potential of policies of
innovation, research and technological development.
2. The Member States shall consult each other in liaison with the
Commission and, where necessary, shall co-ordinate their action. The
Commission may undertake any useful initiative to promote such co-
ordination.
3. The Community shall contribute to the achievement of the
objectives set out in paragraph 1 through the policies and activities it
pursues under other provisions of this Treaty. The Council, acting
unanimously on a proposal from the Commission, after consulting the
European Parliament and the Economic and Social Committee, may
decide on specific measures in support of action taken in the Member
States to achieve the objectives set out in paragraph 1.
This Title shall not provide a basis for the introduction by the
Community of any measure which could lead to a distortion of
competition.
TITLE XIV
Economic and social cohesion
ARTICLE 130a
In order to promote its overall harmonious development, the
Community shall develop and pursue its actions in leading to the
strengthening of its economic and social cohesion.
In particular, the Community shall aim at reducing the disparities
between the levels of development of the various regions and the
backwardness of the least-favoured regions, including rural areas.
ARTICLE 130b
Member States shall conduct their economic policies and shall co-
ordinate them is such a way as, in addition, to attain the objectives set
out in Article 130a. The formulation and implementation of the
Community's policies and actions and the implementation of the
internal market shall take into account the objectives set out in Article
130a and shall contribute to their achievement. The Community shall
also support the achievement of these objectives by the action it takes
through the Structural Funds (European Agricultural Guidance and
Guarantee Fund, Guidance Section; European Social Fund; European
Regional Development Fund), the European Investment Bank and
other existing financial instruments.
The Commission shall submit a report to the European Parliament, the
Council, the Economic and Social Committee and the Committee of the
Regions every three years on the progress made towards achieving
economic and social cohesion and on the manner in which the various
means provided for in this Article have contributed to it. This report
shall, if necessary, be accompanied by appropriate proposals.
If specific actions prove necessary outside the Funds and without
prejudice to the measures decided upon within the framework of the
other Community policies, such actions may be adopted by the
Council acting unanimously on a proposal from the Commission and
after consulting the European Parliament, the Economic and Social
Committee and the Committee of the Regions.
ARTICLE 130c
The European Regional Development Fund is intended to help redress
the main regional imbalances in the Community through participation
in the development and structural adjustments of regions whose
development is lagging behind and in the conversion of declining
industrial regions.
ARTICLE 130d
Without prejudice to Article 130e, the Council, acting unanimously on a
proposal from the Commission and after obtaining the assent of the
European Parliament and consulting the Economic and Social
Committee and the Committee of the Regions, shall define the tasks,
priority objectives and the organization of the Structural Funds, which
may involve grouping the Funds. The Council, acting by the same
procedure, shall also define the general rules applicable to them and
the provisions necessary to ensure their effectiveness and the co-
ordination of the Funds with one another and with the other existing
financial instruments.
The Council, acting in accordance with the same procedure, shall
before 31 December 1993 set up a Cohesion Fund to provide a
financial contribution to projects in the fields of environment and trans-
European networks in the area of transport infrastructure.
ARTICLE 130e
Implementing decisions relating to the European Regional
Development Fund shall be taken by the Council, acting in accordance
with the procedure referred to in Article 189c and after consulting the
Economic and Social Committee and the Committee of the Regions.
With regard to the European Agricultural Guidance and Guarantee
Fund - Guidance Section, and the European Social Fund, articles 43
and 125 respectively shall continue to apply.
TITLE XV
Research and technological development
ARTICLE 130f
1. The Community shall have the objective of strengthening the
scientific and technological bases of Community industry and
encouraging it to become more competitive at international level, while
promoting all the research activities deemed necessary by virtue of
other Chapters of this Treaty.
2. For this purpose the Community shall, throughout the Community,
encourage undertakings, including small and medium-sized
undertakings, research centres and universities in their research and
technological development activities of high quality; it shall support
their efforts to co-operate with one another, aiming, notably, at
enabling undertakings to exploit the internal market potential to the
full, in particular through the opening up of national public contracts,
the definition of common standards and the removal of legal and fiscal
obstacles to that co-operation.
3. All community activities under this Treaty in the area of research
and technological development, including demonstration projects,
shall be decided on and implemented in accordance with the
provisions of this Title.
ARTICLE 130g
In pursuing these objectives, the Community shall carry out the
following activities, complementing the objectives complementing the
activities carried out in the Member States:
(a) implementation of research, technological development and
demonstration programmes, by promoting co-operation with and
between undertakings, research centres and universities;
(b) promotion of co-operation in the field of Community research,
technological development and demonstration with third countries and
international organizations;
(c) dissemination and optimization of the results of activities in
Community research, technological development and demonstration;
(d) stimulation of the training and mobility of researchers in the
Community.
ARTICLE 130h
1. The Community and the Member States shall co-ordinate their
research and technological development activities so as to ensure
that national policies and Community policy are mutually consistent.
2. In close co-operation with the Member States, the Commission may
take any useful initiative to promote the co-ordination referred to in
paragraph 1.
ARTICLE 130i
1. A multiannual framework programme, setting out all activities of the
Community, shall be adopted by the Council, acting in accordance with
the procedure referred to in Article 189b after consulting the Economic
and Social Committee. The Council shall act unanimously throughout
the procedures referred to in Article 189b.
The framework programme shall:
- establish the scientific and technological objectives to be achieved
by the activities provided for in Article 130g and fix the relevant
priorities;
- indicate the broad lines of such activities;
- fix the maximum overall amount and the detailed rules for
Community financial participation in the framework programme and the
respective shares in each of the activities provided for.
2. The framework programme shall be adapted or supplemented as the
situation changes.
3. The framework programme shall be implemented through specific
programmes developed within each activity. Each specific programme
shall define the detailed rules for implementing it, fix its duration and
provide for the means deemed necessary. The sum of the amounts
deemed necessary, fixed in the specific programmes, may not exceed
the overall maximum amount fixed for the framework programme and
each activity.
4. The Council, acting by a qualified majority on a proposal from the
Commission and after consulting the European Parliament and the
Economic and Social Committee, shall adopt the specific programmes.
ARTICLE 130j
For the implementation of the multiannual framework programme the
Council shall:
- determine the rules for the participation of undertakings, research
centres and universities;
- lay down the rules governing the dissemination of research results.
ARTICLE 130k
In implementing the multiannual framework programmes,
supplementary programmes may be decided on involving the
participation of certain Member States only, which shall finance them
subject to possible Community participation.
The Council shall adopt the rules applicable to supplementary
programmes, particularly as regards the dissemination of knowledge
and access by other Member States.
ARTICLE 130l
In implementing the multiannual framework programme the Community
may make provision, in agreement with the Member States concerned,
for participation in research and development programmes undertaken
by several Member States, including participation in the structures
created for the execution of those programmes.
ARTICLE 130m
In implementing the multiannual framework programme the Community
may make provision for co-operation in Community research,
technological development and demonstration with third countries or
international organizations.
The detailed arrangements for such co-operation may be the subject of
agreements between the Community and the third parties concerned,
which shall be negotiated and concluded in accordance with Article
228.
ARTICLE 130n
The Community may set up joint undertakings or any other structure
necessary for the efficient execution of Community research,
technological development and demonstration programmes.
ARTICLE 130o
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and the Economic and
Social Committee, shall adopt the provisions referred to in Article
130n.
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall adopt the provisions referred to in Articles 130j to l. Adoption of
the supplementary programmes shall require the agreement of the
Member States concerned.
ARTICLE 130p
At the beginning of each year the Commission shall send a report to
the European Parliament and the Council. The report shall include
information on research and technological development activities and
the dissemination of results during the previous year, and the work
programme for the current year.
TITLE XVI
Environment
ARTICLE 130r
1. Community policy on the environment shall contribute to pursuit of
the following objectives:
- preserving, protecting and improving the quality of the environment;
- protecting human health;
- prudent and rational utilization of natural resources;
- promoting measures at international level to deal with regional or
worldwide environmental problems.
2. Community policy on the environment shall aim at a high level of
protection taking into account the diversity of situations in the various
regions of the Community. It shall be based on the precautionary
principle and on the principles that preventative action should be
taken, that environmental damage should as a priority be rectified at
source and that the polluter should pay. Environmental protection
requirements must be integrated into the definition and
implementation of other Community policies.
In this context, harmonization measures answering these
requirements shall include, where appropriate, a safeguard clause
allowing Member States to take provisional measures, for non-
economic environmental reasons, subject to a Community inspection
procedure.
3. In preparing its policy on the environment, the Community shall take
account of:
- available scientific and technical data;
- environmental conditions in the various regions of the Community;
- the potential benefits and costs of action or lack of action;
- the economic and social development of the Community as a whole
and the balanced development of its regions.
4. Within their respective spheres of competence, the Community and
the Member States shall co-operate with third countries and with the
competent international organizations. The arrangements for
Community co-operation may be the subject of agreements between
the Community and the third parties concerned, which shall be
negotiated and concluded in accordance with Article 228.
The previous subparagraph shall be without prejudice to Member
States' competence to negotiate in international bodies and to
conclude international agreements.
ARTICLE 130s
1. The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall decide what action is to be taken by the Community in order to
achieve the objective referred to in Article 130r.
2. By way of derogation from the decision-making procedure provided
for in paragraph 1 and without prejudice to Article 100a, the Council,
acting unanimously on a proposal from the Commission and after
consulting the European Parliament and the Economic and Social
Committee, shall adopt:
- provisions primarily of a fiscal nature;
- measures concerning town and country planning, land use with the
exception of waste management and measures of a general nature,
and management of water resources;
- measures significantly affecting a Member State's choice between
different energy sources and the general structure of its energy
supply.
The Council may, under the conditions laid down in the preceding
subparagraph,define those matters referred to in this paragraph on
which decisions are to be taken by a qualified majority.
3. In other areas, general action programmes setting out priority
objectives to be attained shall be adopted by the Council, acting in
accordance with the procedure referred to in Article 189b and after
consulting the Economic and Social Committee.
The Council, acting under the terms of paragraph 1 or paragraph 2
according to the case, shall adopt the measures necessary for the
implementation of these programmes.
4. Without prejudice to certain measures of a Community nature, the
Member States shall finance and implement the environment policy.
5. Without prejudice to the principle that the polluter should pay, if a
measure based on the provisions of paragraph 1 involves costs
deemed disproportionate for the public authorities of a Member State,
the Council shall, in the act adopting that measure, lay down
appropriate provisions in the form of:
- temporary derogations and/or
- financial support from the Cohesion Fund to be set up no later than
31 December 1993 pursuant to Article 130d.
ARTICLE 130t
The protective measures adopted pursuant to Article 130s shall not
prevent any Member State from maintaining or introducing more
stringent protective measures. Such measures must be compatible
with this Treaty. They shall be notified to the Commission.
TITLE XVII
Development co-operation
ARTICLE 130u
1. Community policy in the sphere of development co-operation, which
shall be complementary to the policies pursued by the Member States,
shall foster:
- the sustainable economic and social development of the developing
countries, and more particularly the most disadvantaged among them;
- the smooth and gradual integration of the developing countries into
the world economy;
- the campaign against poverty in the developing countries.
2. Community policy in this area shall contribute to the general
objective of developing and consolidating democracy and the rule of
law, and to that of respecting human rights and fundamental freedoms.
3. The Community and the Member State shall comply with the
commitments and take account of the objectives they have approved
in the context of the United Nations and other competent international
organizations.
ARTICLE 130v
The Community shall take account of the objectives referred to in
Article 130u in the policies that it implements which are likely to affect
developing countries.
ARTICLE 130w
1.. Without prejudice to the other provisions in this Treaty the Council,
acting in accordance with the procedure referred to in Article 189c,
shall adopt the measures necessary to further the objectives referred
to in Article 130u. Such measures may take the form of multiannual
programmes.
2. The European Investment Bank shall contribute, under the terms
laid down in its Statute, to the implementation of the measures
referred to in paragraph 1.
3. The provisions of this Article shall not affect co-operation with the
African, Caribbean and Pacific countries in the framework of the ACP-
EEC Convention.
ARTICLE 130x
1. The Community and the Member States shall co-ordinate their
policies on development co-operation and shall consult each other on
their aid programmes, including in international organizations and
during international conferences. They may undertake joint action.
Member States shall contribute if necessary to the implementation of
Community aid programmes.
2. The Commission may take any useful initiative to promote the co-
ordination referred to in paragraph 1.
ARTICLE 130y
Within their respective spheres of competence, the Community and
the Member States shall co-operate with third countries and with the
competent international organizations. The arrangements for
Community co-operation may be the subject of arrangements between
the Community and the third parties concerned, which shall be
negotiated and concluded in accordance with Article 228.
The previous paragraph shall be without prejudice to Members States'
competence to negotiate in international bodies and to conclude
international agreements."
E. In Part Five "Institutions of the Community"
39) Article 137 shall be replaced by the following:
"ARTICLE 137
The European Parliament, which shall consist of representatives of the
peoples of the States brought together in the Community, shall
exercise the powers conferred upon it by this Treaty."
40) Paragraph 3 of Article 138 shall be replaced by the following:
"3. The European Parliament shall draw up proposals for elections by
direct universal suffrage in accordance in accordance with a uniform
procedure in all Member States.
The Council shall, acting unanimously after obtaining the assent of the
European Parliament, which shall act by a majority of its component
members, lay down the appropriate provision, which it shall
recommend to Member States for adoption in accordance with their
respective constitutional requirements."
41) The following Article shall be inserted:
"ARTICLE 138a
Political parties at European level are important as a factor for
integration within the Union. They contribute to forming a European
awareness and to expressing the political will of the citizens of the
Union.
ARTICLE 138b
In so far as provided in this Treaty, the European Parliament shall
participate in the process leading up to the adoption of Community
acts by exercising its powers under the procedures laid down in
Articles 189b and 189c and by giving its assent or delivering advisory
opinions.
The European Parliament may, acting by a majority of its members,
request the Commission to submit any appropriate proposal on
matters on which it considers that a Community act is required for the
purpose of implementing this Treaty.
ARTICLE 138c
In the course of its duties, the European Parliament may, at the
request of a quarter of its members, set up a temporary Committee of
Inquiry to investigate, without prejudice to the powers conferred by
this Treaty on other institutions or bodies, alleged contraventions or
maladministration in the implementation of Community law, except
where the alleged facts are being examined before a court and while
the case is still subject to legal proceedings.
The temporary Committee of Inquiry shall cease to exist on the
submission of its report.
The detailed provisions governing the exercise of the right of inquiry
shall be determined by common accord of the European Parliament,
the Council and the Commission.
ARTICLE 138d
Any citizen of the Union, and any natural or legal person residing or
having his registered office in a Member State, shall have the right to
address, individually or in association with other citizens or persons,
a petition to the European Parliament on a matter which comes within
the Community's fields of activity and which affects him, her or it
directly.
ARTICLE 138e
1. The European Parliament shall appoint an Ombudsman empowered
to receive complaints from any citizen of the Union or any natural or
legal person residing or having its registered office in a Member State
concerning instances of maladministration in the activities of the
Community institutions or bodies, with the exception of the Court of
Justice and the Court of First Instance acting in their judicial role.
In accordance with his duties, the Ombudsman shall conduct inquiries
for which he finds grounds, either on his own initiative or on the basis
of complaints submitted to him direct or through a member of the
European Parliament, except where the alleged facts are or have been
the subject of legal proceedings. Where the Ombudsman establishes
an instance of maladministration, he shall refer the matter to the
institution concerned, which shall have a period of three months in
which to inform him of its views. The Ombudsman shall then forward a
report to the European Parliament and the institution concerned. The
person lodging the complaint shall be informed of the outcome of such
inquiries.
The Ombudsman shall submit an annual report to the European
Parliament on the outcome of his inquiries.
2. The Ombudsman shall be appointed after each election of the
European Parliament for the duration of its term of office. The
Ombudsman shall be eligible for reappointment.
The Ombudsman may be dismissed by the Court of Justice at the
request at the request of the European Parliament if he no longer
fulfils the conditions required for the performance of this duties or if he
is guilty of serious misconduct.
3. The Ombudsman shall be completely independent in the
performance of his duties. In the performance of those duties he shall
seek nor take instructions from any body. The Ombudsman may not,
during his term of office, engage in any other occupation, whether
gainful or not.
4. The European Parliament shall, after seeking an opinion from the
Commission and with the approval of the Council acting by a qualified
majority, lay down the regulations and general conditions governing
the Ombudsman's duties."
42) The second subparagraph of Article 144 shall be supplemented by
the following sentence:
"In this case, the term of office of the members of the Commission
appointed to replace them shall expire on the date which the term of
office of the members of the Commission obliged to resign as a body
would have expired."
43) The following Article shall be inserted:
"ARTICLE 146
The Council shall consist of a representative of each Member State at
ministerial level, authorized to commit the government of that Member
State.
The office of President shall be held in turn by each Member State in
the Council for a term of six months, in the following order of Member
States:
- for a first cycle of six years: Belgium, Denmark, Germany, Greece,
Spain, France, Ireland, Italy, Luxembourg, Netherlands, Portugal,
United Kingdom;
- for the following cycle of six years: Denmark, Belgium, Greece,
Germany, France, Spain, Italy, Ireland, Netherlands, Luxembourg,
United Kingdom, Portugal.
44) The following Article shall be inserted:
"ARTICLE 147
The Council shall meet when convened by its President on his
initiative or at the request of one of its members or of the
Commission."
45) Article 149 shall be repealed.
46) The following Article shall be inserted:
"ARTICLE 151
1. A committee consisting of the Permanent Representatives of the
Member States shall be responsible for preparing the work of the
Council and for carrying out the tasks assigned to it by the Council.
2. The Council shall be assisted by a General Secretariat, under the
direction of a Secretary-General. The Secretary-General shall be
appointed by the Council acting unanimously.
The Council shall decide on the organization of the General
Secretariat.
3. The Council shall adopt its rules of procedure."
47) The following Article shall be inserted:
"ARTICLE 154
The Council shall, acting by a qualified majority, determine the
salaries, allowances and pensions of the President and members of
the Commission, and of the president, Judges, Advocates-General and
Registrar of the Court of Justice. It shall also, again by a qualified
majority, determine any payment to be made instead of remuneration."
48) The following Articles shall be inserted:
"ARTICLE 156
The Commission shall publish annually, not later than one month
before the opening of the session of the European Parliament, a
general report on the activities of the Community.
ARTICLE 157
1. The Commission shall consist of seventeen members, who shall be
chosen on the grounds of their general competence and whose
independence is beyond doubt.
The number of members of the Commission may be altered by the
Council, acting unanimously.
Only nationals of Member States may be members of the Commission.
The Commission must include at least one national of each of the
Member States, but may not include more than two members having
the nationality of the same State.
2. The members of the Commission shall, in the general interest of the
Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties. Each Member
State undertakes to respect this principle and not to seek to influence
the members of the Commission in the performance of their tasks.
The members of the Commission may not, during their term of office,
engage in any other occupation, whether gainful or not. When entering
upon their duties they shall give a solemn undertaking that, both
during and after their term of office, they will respect the obligations
arising therefrom and in particular their duty to behave with integrity
and discretion as regards the acceptance, after they have ceased to
hold office, of certain appointments or benefits. In the events of any
breach of these obligations, the Court of Justice may, on application
by the Council or the Commission, rule that the member concerned be,
according to the circumstances, either compulsorily retired in
accordance with Article 160 or deprived of his rights to a pension or
benefits in its stead.
ARTICLE 158
1. The members of the Commission shall be appointed, in accordance
with the procedure referred to in paragraph 2, for a period of five
years, subject, if need be, to Article 144.
Their term of office shall be renewable.
2. The governments of the Member States shall nominate by common
accord, after consulting the European Parliament, the person they
intend to appoint as President of the Commission.
The governments of the Member States shall, in consultation with the
nominee for President, nominate the other persons whom they intend
to appoint as members of the Commission.
The President and the other members of the Commission thus
nominated shall be subject as a body to a vote of approval by the
European Parliament. After approval by the European parliament, the
President and the other members of the Commission shall be
appointed by common accord of the governments of the Member
States.
3. Paragraphs 1 and 2 shall be applied for the first time to the
President and the other members of the Commission whose term of
office begins on 7 January 1995.
The president and the other members of the Commission whose term
of office begins on 7 January 1993 shall be appointed by common
accord of the governments of the Member States. Their term of office
shall expire on 6 January 1995.
ARTICLE 159
Apart from normal replacement, or death, the duties of a member of the
Commission shall end when he resigns or is compulsorily retired.
The vacancy thus caused shall be filled for the remainder of the
member's term of office by a new member appointed by common
accord of the governments of the Member States. The Council may,
acting unanimously, decide that such a vacancy need not be filled.
In the event of resignation, compulsory retirement or death, the
President shall be replaced for the remainder of his term of office. The
procedure laid down in Article 158(2) shall be applicable for the
replacement of the President.
Save in the case of compulsory retirement under Article 160, members
of the Commission shall remain in office until they have been
replaced.
ARTICLE 160
If any member of the Commission no longer fulfills the conditions
required for the performance of his duties or if he has been guilty of
serious misconduct, the Court of Justice may, on application by the
Council or the Commission, compulsorily retire him.
ARTICLE 161
The Commission may appoint a Vice-President or two Vice-Presidents
from among its members.
ARTICLE 162
1. The Council and the Commission shall consult each other and shall
settle by common accord their methods of co-operation.
2. The Commission shall adopt its rules of procedure so as to ensure
that both it and its departments operate in accordance with the
provisions of this Treaty. It shall ensure that these rules are
published.
ARTICLE 163
The Commission shall act by a majority of the number of members
provided for in Article 157.
A meeting of the Commission shall be valid only if the number of
members laid down in its rules of procedure is present."
49) Article 165 shall be replaced by the following:
"ARTICLE 165
The Court of Justice shall consist of thirteen judges.
The Court of Justice shall sit in plenary session. It may, however, form
chambers each consisting of three of five judges, either to undertake
certain preparatory inquiries or to adjudicate on particular categories
of cases in accordance with rules laid down for these purposes.
The Court of Justice shall sit in plenary session when a Member State
or a Community institution that is a party to the proceedings so
requests.
Should the Court of Justice so request, the Council may, acting
unanimously, increase the number of judges and make necessary
adjustments to the second and third paragraphs of this Article and to
the second of Article 167."
50) Article 168a shall be replaced by the following:
"ARTICLE 168a
1. The Court of First Instance shall be attached to the Court of Justice
with jurisdiction to hear and determine at first instance, subject to a
right of appeal to the Court of Justice on points of law only and in
accordance with the conditions laid down by Statute, certain classes of
action or proceeding defined in accordance with the conditions laid
down in paragraph 2. The Court of First Instance shall not be
competent to hear and determine questions referred for a preliminary
ruling under Article 177.
2. At the request of the Court of Justice and after consulting the
European Parliament and the Commission, the Council, acting
unanimously, shall determine the classes of action or proceeding
referred to in paragraph 1 and the composition of the Court of First
Instance and shall adopt the necessary adjustments and additional
provisions to the Statute of the the Court of Justice. Unless the Council
decides otherwise, the provisions of this Treaty relating to the Court of
Justice, in particular the provisions of the Protocol on the Statute of the
Court of Justice, shall apply to the Court of First Instance.
3. The members of the Court of First Instance shall be chosen from
persons whose independence is beyond doubt and who possess the
ability required for appointment to judicial office; they shall be
appointed by common accord of the governments of the Member
States for a term of six years. The membership shall be partially
renewed every three years. Retiring members shall be eligible for re-
appointment.
4. The Court of First Instance shall establish its rules of procedure in
agreement with the Court of Justice. Those rules shall require the
unanimous approval of the Council."
51) Article 171 shall be replaced by the following:
"ARTICLE 171
1. If the Court of Justice finds that a Member State has failed to fulfil an
obligation under this Treaty, the State shall be required to take the
necessary measures to comply with the judgment of the Court of
Justice.
2. If the Commission considers that the Member State concerned has
not taken such measures it shall, after giving that State the opportunity
to submit its observations, issue a reasoned opinion specifying the
points on which the Member State concerned has not complied with
the judgment of the Court of Justice.
If the Member State concerned fails to take the necessary measures to
comply with the Court's judgment within the time-limit laid down by the
Commission, the latter may bring the case before the Court of Justice.
In so doing it shall specify the amount of lump sum or penalty
payment to be paid by the Member State concerned which it considers
appropriate in the circumstances.
If the Court of Justice finds that the Member State concerned has not
complied with its judgment it may impose a lump sum or penalty
payment on it.
This procedure shall be without prejudice to Article 170."
52) Article 172 shall be replaced by the following:
"ARTICLE 172
Regulations adopted jointly by the European Parliament and the
Council, and by the Council, pursuant to the provisions of this Treaty,
may give the Court of Justice unlimited jurisdiction with regard to the
penalties provided for in such regulations."
53) Article 173 shall be replaced by the following:
"ARTICLE 173
The Court of Justice shall review the legality of acts adopted jointly by
the European Parliament and the Council, of acts of the Council, of the
Commission and of the ECB, other than recommendations and
opinions, and of acts of the European Parliament intended to produce
legal effects vis-a-vis third parties.
It shall for this purpose have jurisdiction in actions brought by a
Member State, the Council or the Commission on grounds of lack of
competence, infringement of an essential procedural requirement,
infringement of this Treaty or of any rule of law relating to its
application, or misuse of powers.
The Court shall have jurisdiction under the same conditions, in actions
brought by the European Parliament and by the ECB for the purpose of
protecting their prerogatives.
Any natural or legal person may, under the same conditions, institute
proceedings against a decision addressed to that person or against a
decision which, although in the form of a regulation or a decision
addressed to another person, is of direct and individual concern to the
former.
The proceedings provided for in this Article shall be instituted within
two months of the publication of the measure, or of its notification to
the plaintiff, or, in the absence thereof, of the day on which it came to
the knowledge of the latter, as the case may be."
54) Article 175 shall be replaced by the following:
"ARTICLE 175
Should the European Parliament, the Council or the Commission, in
infringement of this Treaty, fail to act, The Member States and the
other institutions of the Community may bring an action before the
Court of Justice to have the infringement established.
The action shall be admissible only if the institution concerned has
first been called upon to act. If, within two months of being so called
upon, the institution concerned has not defined its position, the action
may be brought within a further period of two months.
Any natural or legal person may, under the conditions laid down in the
preceding paragraphs, complain to the Court of Justice that an
institution of the Community has failed to address to that person any
act other than a recommendation or an opinion.
The Court of Justice shall have jurisdiction, under the same
conditions, in actions or proceedings brought by the ECB in the areas
falling within the latter's field of competence and in actions or
proceedings brought against the latter."
55) Article 176 shall be replaced by the following:
"ARTICLE 176
The institution or institutions whose act has been declared void or
whose failure to act has been declared contrary to this Treaty shall be
required to take the necessary measures to comply with the judgment
of the Court of Justice.
This obligation shall not affect any obligation which may result from
the application of the second paragraph of Article 215.
This Article shall also apply to the ECB."
56) Article 177 shall be replaced by the following:
"ARTICLE 177
The Court of Justice shall have jurisdiction to give preliminary rulings
concerning:
(a) the interpretation of the Treaty;
(b) the validity and interpretation of acts of the institutions of the
Community and of the ECB;
(c) the interpretation of the statutes of bodies established by an act of
the Council, where those statutes so provide.
Where such a question is raised before any court or tribunal of a
Member State, that Court of tribunal may, if it considers that a decision
on the question is necessary to enable it to give judgment, request the
Court of Justice to give a ruling thereon.
Where any such question is raised in a case pending before a court or
tribunal of a Member State against whose decisions there is no
judicial remedy under national law, the court or tribunal shall bring the
matter before the Court of Justice."
57) Article 180 shall be replaced by the following:
"ARTICLE 180
The Court of Justice shall, within the limits hereinafter laid down, have
jurisdiction in disputes concerning:
(a) the fulfillment by Member States of obligations under the Statute of
the European Investment Bank. In this connection, the Board of
Directors of the Bank shall enjoy the powers conferred upon the
Commission by Article 169;
(b) measures adopted by the Board of Governors of the European
Investment Bank. In this connection, any Member State, the
Commission of the Board of Directors of the Bank may institute
proceedings under the conditions laid down in Article 173;
(c) measures adopted by the Board of Directors of the European
Investment Bank. Proceedings against such measures may be
instituted only by Member States or by the Commission, under the
conditions laid down in Article 173, and solely on the grounds of non-
compliance with the procedure provided for in Article 21(2), (5), (6) and
(7) of the Statute of the Bank;
(d) the fulfillment by the national central banks of obligations under
this Treaty and the Statute of the ESCB. In this connection the powers
of the Council of the ECB in respect of national central banks shall be
the same as those conferred upon the commission in respect of
Member States by Article 169. If the Court of Justice finds that a
national central bank has failed to fulfill an obligation under this
Treaty, that bank shall be required to take the necessary measures to
comply with the judgment of the Court of Justice."
58) Article 184 shall be replaced by the following:
"ARTICLE 184
Notwithstanding the expiry of the period laid down in the fifth
paragraph of Article 173, any party may, in proceedings in which a
regulation adopted jointly by the European Parliament and the Council,
or a regulation of the Council, of the Commission, or of the ECB is at
issue, plead the grounds specified in the second paragraph of Article
173 in order to invoke before the Court of Justice the inapplicability of
that regulation."
59) The following section shall be inserted:
"SECTION 5
THE COURT OF AUDITORS
ARTICLE 188a
The Court of Auditors shall carry out the audit.
ARTICLE 188b
1. The Court of Auditors shall consist of twelve members.
2. The members of the Court of Auditors shall be chosen from among
persons who belong or have belonged in their respective countries to
external audit bodies or who are especially qualified for this office.
Their independence must be beyond doubt.
3. The members of the Court of Auditors shall be appointed for a term
of six years by the Council, acting unanimously after consulting the
European Parliament.
However, when the first appointments are made, four members of the
Court of Auditors, chosen by lot, shall be appointed for a term of office
of four years only.
The members of the Court of Auditors shall be eligible for
reappointment.
They shall elect the President of the Court of Auditors from among their
number for a term of three years. The President may be re-elected.
4. The members of the Court of Auditors shall, in the general interest of
the Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties.
5. The members of the Court of Auditors may not, during their term of
office, engage in any other occupation, whether gainful or not. When
entering upon their duties they shall give a solemn undertaking that,
both during and after their term of office, they will respect the
obligations arising therefrom and in particular their duty to behave
with integrity and discretion as regards the acceptance, after they
have ceased to hold office, of certain appointments or benefits.
6. Apart from normal replacement, or death, the duties of a member of
the Court of Auditors shall end when he resigns, or is compulsorily
retired by a ruling of the Court of Justice pursuant to paragraph 7.
The vacancy thus caused shall be filled for the remainder of the
member's term of office.
Save in the case of compulsory retirement, members of the Court of
Auditors shall remain in office until they have been replaced.
7. A member of the Court of Auditors may be deprived of his office or of
his right to a pension or other benefits in its stead only if the Court of
Justice, at the request of the Court of Auditors, finds that he no longer
fulfills the requisite conditions or meets the obligations arising from
his office.
8. The Council, acting by a qualified majority, shall determine the
conditions of employment of the President and the members of the
Court of Auditors and in particular their salaries, allowances and
pensions. It shall also, by the same majority, determine any payment
to be made instead of remuneration.
9. The provisions of the Protocol on the Privileges and Immunities of
the European Communities applicable to the Judges of the Court of
Justice shall also apply to the members of the Court of Auditors.
ARTICLE 188c
1. The Court of Auditors shall examine the accounts of all revenue and
expenditure of the Community. It shall also examine the accounts of
all revenue and expenditure of all bodies set up by the Community in
so far as the relevant constituent instrument does not preclude such
examination.
The Court of Auditors shall provide the European Parliament and the
Council with a statement of assurance as to the reliability of the
accounts and the legality and regularity of the underlying transactions.
2.The Court of Auditors shall examine whether all revenue has been
received and all expenditure incurred in a lawful and regular manner
and whether the financial arrangement has been sound.
The audit of revenue shall be carried out on the basis both of the
amounts established as due and the amounts actually paid to the
Community.
The audit of expenditure shall be carried out on the basis both of
commitments undertaken and payments made.
These audits may be carried out before the closure of accounts for the
financial year in question.
3. The audit shall be based on records and, if necessary, performed
on the spot in other institutions of the Community and in the Member
States. In the Member States the audit shall be carried out in liaison
with the national audit bodies or, if these do not have the necessary
powers, with the competent national departments. These bodies or
departments shall inform the Court of Auditors whether they intend to
take part in the audit.
The other institutions of the Community and the national audit bodies
or, if these do not have the necessary powers, the competent national
departments, shall forward to the Court of Auditors, at its request, any
document or information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close
of each financial year. It shall be forwarded to the other institutions of
the Community and shall be published, together with the replies of
these institutions to the observations of the Court of Auditors, in the
Official Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations,
particularly in the form of special reports, on specific questions and
deliver opinions at the request of one of the other institutions of the
Community.
It shall adopt its annual reports, special reports or opinions by a
majority of its members.
It shall assist the European Parliament and the Council in exercising
their powers of control over the implementation of the budget."
60) Article 189 shall be replace by the following:
"ARTICLE 189
In order to carry out their task and in accordance with the provisions of
the Treaty, the European Parliament acting jointly with the Council, the
Council and the Commission shall make regulations and issue
directives, take decision, make recommendations or deliver opinions.
A regulation shall have general application. It shall be binding in its
entirety and directly applicable in all Member States.
A directive shall be binding, as to the result to be achieved, upon each
Member State to which it is addressed, but shall leave to the national
authorities the choice of form and methods.
A decision shall be binding in its entirety upon those to whom it is
addressed.
Recommendations and opinions shall have no binding force."
61) The following Articles shall be inserted:
"ARTICLE 189a
1. Where, in pursuance of the Treaty, the Council acts on a proposal
from the Commission, unanimity shall be required for an act
constituting an amendment to that proposal, subject to Article 189b(4)
and (5).
2. As long as the Council has not acted, the Commission may alter its
proposal at any time during the procedures leading to the adoption of
a Community act.
ARTICLE 189b
1. Where reference is made in the Treaty to this Article for the adoption
of an act, the following procedures shall apply.
2. The Commission shall submit a proposal to the European
Parliament and the Council.
The Council, acting by a qualified majority after obtaining the opinion
of the European Parliament, shall adopt a common position. The
common position shall be communicated to the European Parliament.
The Council shall inform the European Parliament fully of the reasons
which led it to adopt its common position. The Commission shall
inform the European Parliament fully of its position.
If, within three months of such communication, the European
Parliament:
(a) approves the common position, the Council shall definitively adopt
the act in question in accordance with that common position;
(b) has not taken a decision, the Council shall adopt the act in question
in accordance with its common position;
(c) indicates, by an absolute majority of its component members, that
it intends to reject the common position, it shall immediately inform
the Council. The Council may convene a meeting of the Conciliation
Committee referred to in paragraph 4 to explain further its position.
The European parliament shall thereafter either confirm, by an
absolute majority of its component members, its rejection of the
common position, in which event the proposed act shall be deemed
not to have been adopted, or propose amendments in accordance with
subparagraph (d) of this paragraph;
(d) proposes amendments to the common position by an absolute
majority of its component members, the amended text shall be
forwarded to the Council and to the Commission which shall deliver an
opinion on those amendments.
3. If, within three months of the matter being referred to it, the Council
action by a qualified majority, approves all the amendments of the
European parliament, it shall amend its common position accordingly
and adopt the act in question; however, the Council shall act
unanimously on the amendments on which the Commission has
delivered a negative opinion. If the Council does not approve the act in
question, the President of the Council, in agreement with the President
of the European Parliament, shall forthwith convene a meeting of the
Conciliation Committee.
4. The Conciliation Committee, which shall be composed of the
members of the Council or their representatives and an equal number
of representative of the European Parliament, shall have the task of
reaching agreement on a joint text, by a qualified majority of the
members of the Council or their representatives and by a majority of
the representatives of the European Parliament. The Commission
shall take part in the Conciliation Committee's proceedings and shall
take all the necessary initiatives with a view to reconciling the
positions of the European Parliament and the Council.
5. If within six weeks of its being convened, the Conciliation
Committee approves a joint text, the European Parliament, acting by
an absolute majority of the votes cast, and the Council, acting by a
qualified majority, shall have a period of six weeks from that approval
in which to adopt the act in question in accordance with the joint text. If
one of the two institutions fails to approve the proposed act, it shall be
deemed not to have been adopted.
6. Where the Conciliation Committee does not approve a joint text, the
proposed act shall be deemed not to have been adopted unless the
Council, acting by a qualified majority within six weeks of expiry of the
period granted to the Conciliation Committee, confirms the common
position to which it agreed before the conciliation procedure was
initiated, possibly with the amendments proposed by the European
Parliament. In this case, the act in question shall be finally adopted
unless the European parliament, within six weeks of the date of
confirmation by the Council, rejects the text by an absolute majority of
its component members, in which case the proposed act shall be
deemed not to have been adopted.
7. The periods of three months and six weeks referred to in this Article
may be extended by a maximum of one month and two weeks
respectively by common accord of the European Parliament and the
Council. The period of three months referred to in paragraph 2 shall be
automatically extended by two months where paragraph 2(c) applies.
8. The scope of the procedure under this Article may be widened, in
accordance with the procedure provided for in Article N(2) of the Treaty
on European Union, on the basis of a report to be submitted to the
Council by the Commission by 1996 at the latest.
ARTICLE 189c
Where reference is made in this Treaty to this Article for the adoption
of an act, the following procedure shall apply:
(a) The Council, acting by a qualified majority on a proposal from the
Commission and after obtaining the opinion of the European
Parliament, shall adopt a common position.
(b) The Council's common position shall be communicated to the
European Parliament. The Council and the Commission shall inform
the European Parliament fully of the reasons which led the Council to
adopt its common position and also of the Commission's position.
If, within three months of such communication, the European
Parliament approves this common position or has not taken a decision
within that period, the Council shall definitively adopt the act in
question in accordance with the common position.
(c) The European Parliament may, within the period of three months
referred to in point (b), by an absolute majority of its component
members, propose amendments to the Council's common position.
The European Parliament may also, by the same majority, reject the
Council's common position. The result of the proceedings shall be
transmitted to the Council and the Commission.
If the European Parliament has rejected the Council's common
position, unanimity shall be required for the Council to act on a second
reading.
(d) The Commission shall, within a period of one month, re-examine
the proposal on the basis of which the Council adopted its common
position, by taking into account the amendments proposed by the
European Parliament.
The Commission shall forward to the Council, at the same time as its
re-examined proposal, the amendments of the European Parliament
which it has not accepted, and shall express its opinion on them. The
Council may adopt these amendments unanimously.
(e) The Council, acting by a qualified majority, shall adopt the proposal
as re-examined by the Commission.
Unanimity shall be required for the Council to amend the proposal as
re-examined by the Commission.
(f) In the cases referred to in points (c),(d) and (e), the Council shall be
required to act within a period of three months. If no decision is taken
within this period, the commission proposal shall be deemed not to
have been adopted.
(g) The periods referred to in points (b) and (f) may be extended by a
maximum of one month by common accord between the Council and
the European Parliament."
62) Article 190 shall be replaced by the following:
"ARTICLE 190
Regulations, directives and decisions adopted jointly by the European
Parliament and the Council, and such acts adopted by the Council or
the Commission, shall state the reasons on which they are based and
shall refer to any proposals or opinions which were required to be
obtained pursuant to this Treaty."
63) Article 191 shall be replaced by the following:
"ARTICLE 191
1. Regulations, directives and decisions adopted in accordance with
the procedures referred to in Article 189b shall be signed by the
President of the European Parliament and by the President of the
Council and published in the Official Journal of the Community. They
shall enter into force on the date specified in them or, in the absence
thereof, on the twentieth day following that of their publication.
2. Regulations of the Council and of the Commission, as well as
directives of those institutions which are address to all Member
States, shall be published in the Official Journal of the Community.
They shall enter into force on the date specified in them or, in the
absence thereof, on the twentieth day following that of their
publication.
3. Other directives, and decisions, shall be notified to those whom
they are address and shall take effect upon such notification."
64) Article 194 shall be replaced by the following:
"ARTICLE 194
The number of members of the Economic and Social Committee shall
be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24
The members of the Committee shall be appointed by the Council,
acting unanimously, for four years. Their appointments shall be
renewable.
The members of the Committee may not be bound by any mandatory
instructions. They shall be completely independent in the performance
of their duties, in the general interest of the Community.
The Council, acting by a qualified majority, shall determine the
allowances of members of the Committee."
65) Article 196 shall be replaced by the following:
"ARTICLE 196
The Committee shall elect its chairman and officers from among its
members for a term of two years.
It shall adopt its rules of procedure.
The Committee shall be convened by its chairman at the request of the
Council or of the Commission. It may also meet on its own initiative."
66) Article 198 shall be replaced by the following:
"ARTICLE 198
The Committee must be consulted by the Council of the Commission
where this Treaty so provides. The Committee may be consulted by
these institutions in all cases in which they consider it appropriate. It
may issue an opinion on its own initiative in cases in which it
considers such action appropriate.
The Council or the Commission shall, if it considers it necessary, set
the Committee, for the submission of its opinion, a time limit which
may not be less than one month from the date on which the chairman
receives notification to this effect. Upon expiry of the time limit, the
absence of an opinion shall not prevent further action.
The opinion of the Committee and that of the specialized section,
together with a record of the proceedings, shall be forwarded to the
Council and to the Commission.
67) The following Chapter shall be inserted:

"CHAPTER 4
THE COMMITTEE OF THE REGIONS
ARTICLE 198a
A Committee consisting of representatives of regional and local
bodies, hereinafter referred to as "the Committee of the Regions", is
hereby established with advisory status.
The number of members of the Committee of the Regions shall be as
follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24
The members of the Committee and an equal number of alternate
members shall be appointed for four years by the Council acting
unanimously on proposals from the respective Member States. Their
term of office shall be renewable.
The members of the Committee may not be bound by any mandatory
instructions. They shall be completely independent in the performance
of their duties, in the general interest of the Community.
ARTICLE 198b
The Committee of the Regions shall elect its chairman and officers
from among its members for a term of two years.
It shall adopt its rules of procedure and shall submit them for approval
to the Council, acting unanimously.
The Committee shall be convened by its chairman at the request of the
Council or of the Commission. It may also meet on its own initiative.
ARTICLE 198c
The Committee of the Regions shall be consulted by the Council or by
the Commission where this Treaty so provides and in all other cases
in which one of these two institutions considers it appropriate.
The Council of the Commission shall, if it considers it necessary, set
the Committee, for the submission of its opinion, a time-limit which
may not be less than one month from the date on which the chairman
receives notification to this effect. Upon expiry of the time-limit the
absence of an opinion shall not prevent further action.
Where the Economic and Social Committee is consulted pursuant to
Article 198, the Committee of the Regions shall be informed by the
Council of the Commission of the request for an opinion. Where it
considers that specific regional interests are involved, the Committee
of the Regions may issue an opinion on the matter.
It may issue an opinion on its own initiative in cases in which it
considers such action appropriate.
The opinion of the Committee, together with a record of the
proceedings, shall be forwarded to the Council and to the
Commission."
68) The following chapter shall be inserted:

"CHAPTER 5
EUROPEAN INVESTMENT BANK
ARTICLE 198d
The European Investment Bank shall have legal personality.
The members of the European Investment Bank shall be the Member
States.
The Statute of the European Investment Bank is laid down in a
Protocol annexed to this Treaty.
ARTICLE 198e
The task of the European Investment Bank shall be to contribute, by
having recourse to the capital market and utilizing its own resources,
to the balanced and steady development of the common market in the
interest of the Community. For this purpose the Bank shall, operating
on a non-profit-making basis, grant loans and give guarantees which
facilitate the financing of the following projects in all sectors of the
economy:
(a) projects for developing less-developed regions;
(b) projects for modernizing or converting undertakings or for
developing fresh activities called for by the progressive establishment
of the common market, where these projects are of such a size or
nature that they cannot be entirely financed by the various means
available in the individual Member States;
(c) projects of common interest to several Member States which are of
such a size or nature that they cannot be entirely financed by the
various means available in the individual Member States.
In carrying out its task, the Bank shall facilitate the financing of
investment programmes in conjunction with assistance from the
structural Funds and other Community Financial instruments."
69) Article 199 shall be replaced by the following:
"ARTICLE 199
All items of revenue and expenditure of the Community, including
those relating to the European Social Fund, shall be included in
estimates to be drawn up for each financial year and shall be shown in
the budget.
Administrative expenditure occasioned for the institutions by the
provisions of the Treaty on European Union relating to common
foreign and security policy and to co-operation in the fields of justice
and home affairs shall be charged to the budget. The operational
expenditure occasioned by the implementation of the said provisions
may, under the conditions referred to therein, be charged to the
budget.
The revenue and expenditure shown in the budget shall be in
balance."
70) Article 200 shall be repealed.
71) Article 201 shall be replaced by the following:
"ARTICLE 201
Without prejudice to other revenue, the budget shall be financed
wholly from own resources.
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament, shall lay down
provisions relating to the system of own resources of the Community,
which it shall recommend to the Member States for adoption in
accordance with their respective constitutional requirements."
72) The following Article shall be inserted:
"ARTICLE 201a
With a view to maintaining budgetary discipline, the Commission shall
not make any proposal for a Community act, or alter its proposals, or
adopt any implementing measure which is likely to have appreciable
implications for the budget without providing the assurance that the
proposal or that measure is capable of being financed within the limit
of the Community's own resources arising under provisions laid down
by the Council pursuant to Article 201."
73) Article 205 shall be replaced by the following;
"ARTICLE 205
The Commission shall implement the budget, in accordance with the
provisions of the regulations made pursuant to Article 209, on its own
responsibility and within the limits of the appropriations, having
regard tot he principles of sound financial management.
The regulations shall lay down detailed rules for each institution
concerning its part in effecting its own expenditure.
Within the budget, the Commission may, subject to the limits and
conditions laid down in the regulations made pursuant to Article 209,
transfer appropriations from one chapter to another or from one
subdivision to another."
74) Article 206 shall be replaced by the following:
"ARTICLE 206
1. The European Parliament, acting on a recommendation from the
Council which shall act by qualified majority, shall give a discharge to
the Commission in respect of the implementation of the budget. To this
end, the Council and the European Parliament in turn shall examine
the accounts and the financial statement referred to in Article 205a, the
annual report by the Court of Auditors together with the replies of the
institutions under audit to the observations of the Court of Auditors and
any relevant special reports by the Court of Auditors.
2 Before giving a discharge to the Commission, or for any other
purpose in connection with the exercise of its power over the
implementation of the budget, the European Parliament may ask to
hear the Commission give evidence with regard to the execution of
expenditure or the operation of financial control systems. The
Commissions shall submit any necessary information to the European
Parliament at the latter's request.
3. The Commission shall take all appropriate steps to act on the
observations in the decisions giving discharge and on other
observations by the European Parliament relating to the execution of
expenditure, as well as on comments accompanying the
recommendations on discharge adopted by the Council.
At the request of the European Parliament or the Council, the
Commission shall report on the measures taken in the light of these
observations and comments and in particular on the instructions given
to the departments which are responsible for the implementation of the
budget. These reports shall also be forwarded to the Court of
Auditors."
75) Articles 206a and 206b shall be repealed.
76) Article 209 shall be replaced by the following:
"ARTICLE 209
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and obtaining the
opinion of the Court of Auditors, shall:
(a) make Financial Regulations specifying in particular the procedure
to be adopted for establishing and implementing the budget and for
presenting and auditing accounts;
(b) determine the methods and procedure whereby the budget revenue
provided under the arrangements relating to the Community's own
resources shall be made available to the Commission, and determine
the measures to be applied, if need be, to meet cash requirements;
(c) lay down rules concerning the responsibility of financial controllers,
authorizing officers and accounting officers, and concerning
appropriate arrangements for inspection."
77) The following article shall be inserted:
"ARTICLE 209a
Member States shall take the same measures to counter fraud
affecting the financial interests of the Community as they take to
counter fraud affecting their own financial interests.
Without prejudice to the other provisions of the Treaty, Member States
shall co-ordinate their action aimed at protecting the financial interests
of the Community against fraud. To this end they shall organize, with
the help of the Commission, close and regular co-operation between
the competent departments of their administrations."
78) Article 215 shall be replaced by the following:
"ARTICLE 215
The contractual liability of the Community shall be governed by the
law applicable to the contract in question.
In the case of non-contractual liability, the Community shall, in
accordance with the general principles common to the law of the
Member States, make good any damage caused by its institutions or
by its servants in the performance of their duties.
The preceding paragraph shall apply under the same conditions to
damage caused by the ECB or by its servants in the performance of
their duties.
The personal liability of its servants towards the Community shall be
governed by the provisions laid down in their Staff Regulations or in
the Conditions of Employment applicable to them."
79) Article 227 shall be amended as follows:
(a) paragraph 2 shall be replaced by the following:
"2. With regard to the French overseas departments, the general and
particular provisions of this Treaty relating to:
- the free movement of goods;
- agriculture, save for Article 40 (4);
- the liberalization of services
- the rules on competition;
- the protective measures provided for in Articles 109h, 109i and 226;
- the institutions,
shall apply as soon as this Treaty enters into force.
The conditions under which the other provisions of this Treaty are to
apply shall be determined, within two years of entry into force of this
Treaty, by decisions of the Council, acting unanimously on a proposal
from the Commission.
The institutions of the Community will, within the framework of the
procedures provided for in this Treaty, in particular Article 226, take
care that the economic and social developments of these areas is
made possible."
(b) in paragraph 5, subparagraph (a) shall be replaced by the following:
"(a) this Treaty shall not apply to the Faroe Islands."
80) Article 228 shall be replaced by the following:
"ARTICLE 228
1. Where this Treaty provides for the conclusion of agreements
between the Community and one or more States or international
organizations, the Commission shall make recommendations to the
Council, which shall authorize the Commission to open the necessary
negotiations. The Commission shall conduct these negotiations in
consultation with special committees appointed by the Council to
assist it in this task and within the framework of such directives as the
Council may issue to it.
In exercising the powers conferred upon it by this paragraph, the
Council shall act by a qualified majority, except in the cases provided
for in the second sentence of paragraph 2, for which it shall act
unanimously.
2. Subject to the powers vested in the Commission in this field, the
agreements shall be concluded by the Council, acting by a qualified
majority on a proposal from the Commission. The Council shall act
unanimously when the agreement covers a field for which unanimity is
required for the adoption of internal rules, and for the agreements
referred to in Article 238.
3. The Council shall conclude agreements after consulting the
European Parliament, except for the agreements referred to in Article
113(3), including cases where the agreement covers a field for which
the procedure referred to in Article 189b or that referred to in Article
189c is required for the adoption of internal rules. The European
Parliament shall deliver its opinion within a time limit which the
Council may lay down according to the urgency of the matter. In the
absence of an opinion within that time limit, the Council may act.
By way of derogation from the previous subparagraph, agreements
referred to in Article 238, other agreements establishing a specific
institutional framework by organizing co-operation procedures,
agreements having important budgetary implications for the
Community and agreements entailing amendment of an act adopted
under the procedure referred to in Article 189b shall be concluded after
the assent of the European Parliament has been obtained.
The Council and the European Parliament may, in an urgent situation,
agree upon a time limit for the assent.
4. When concluding an agreement , the Council may, by way of
derogation from paragraph 2, authorize the Commission to approve
modifications on behalf of the Community where the agreement
provides for them to be adopted by a simplified procedure or by a
body set up by the agreement; it may attach specific conditions to
such authorization.
5. When the Council envisages concluding an agreement which calls
for amendments to this Treaty, the amendments must first be adopted
in accordance with the procedure laid down in Article N of the Treaty on
European Union.
6. The Council, the Commission or a Member State may obtain the
opinion of the Court of Justice as to whether an agreement envisaged
is compatible with the provisions of this Treaty. Where the opinion of
the Court of Justice is adverse, the agreement may enter into force
only in accordance with Article N of the Treaty on European Union.
7. Agreements concluded under the conditions set out in this Article
shall be binding on the institutions of the Community and on Member
States."
81) The following Article shall be inserted:
"ARTICLE 228a
Where it is provided, in a common position or in a joint action adopted
according to the provisions of the Treaty on European Union relating to
the common foreign and security policy, for an action by the
Community to interrupt or to reduce, in part or completely, economic
relations with one or more third countries, the Council shall take the
necessary urgent measures. The Council shall act by a qualified
majority on a proposal from the Commission."
82) Article 231 shall be replaced by the following:
"ARTICLE 231
The Community shall establish close co-operation with the
Organization for Economic Cooperation and Development, the details
of which shall be determined by common accord."
83) Article 236 and 237 shall be repealed.
84) Article 328 shall be replaced by the following:
"ARTICLE 238
The Community may conclude with one or more states or international
organizations agreements establishing an association involving
reciprocal rights and obligations, common action and special
procedures."
F. In Annex III:
85) The title shall be replaced by the following:
"List of invisible transactions referred to in Article 73h of this Treaty".
G. In the Protocol on the Statue of the European Investment Bank:
86) The reference to Articles 129 and 130 shall be replaced by a
reference to Articles 198b and 198e.

TITLE3
PROVISIONS AMENDING THE TREATY ESTABLISHING THE
EUROPEAN COAL AND STEEL COMMUNITY

ARTICLE H
The Treaty establishing the European Coal and Steel Community shall
be amended in accordance with the provisions of this Article.
1) Article 7 shall be replaced by the following:
"ARTICLE 7
The institutions of the Community shall be:
- a HIGH AUTHORITY (hereinafter referred to as "the Commission");
- a COMMON ASSEMBLY (hereinafter referred to as "the European
Parliament");
- a SPECIAL COUNCIL OF MINISTERS (hereinafter referred to as "the
Council");
- a COURT OF JUSTICE;
- a COURT OF AUDITORS.
The Commission shall be assisted by a Consultative Committee."
2) The following Articles shall be inserted:
"ARTICLE 9
1. The Commission shall consist of seventeen members, who shall be
chosen on the grounds of their general competence and whose
independence is beyond doubt.
The number of members of the Commission may be altered by the
Council, acting unanimously.
Only nationals of the Member States may be members of the
Commission.
The commission must include at least one national of each of the
Member States, but may not include more than two members having
the nationality of the same State.
2. The members of the Commission shall, in the general interest of the
Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties. Each Member
State undertakes to respect this principle and not to seek to influence
the members of the Commission in the performance of their tasks.
The members of the Commission may not, during their term of office,
engage in any other occupation whether gainful or not. When entering
upon their duties they shall give a solemn undertaking that, both
during and after their term of office, they will respect the obligations
arising therefrom and in particular their duty to behave with integrity
and discretion as regards the acceptance, after they have ceased to
hold office, of certain appointments or benefits. In the event of any
breach of these obligations, the Court of Justice may, on application
by the Council or the Commission, rule that the member concerned be,
according to the circumstances, either compulsorily retired in
accordance with Article 12a or deprived of his right to a pension or
other benefits in its stead.
ARTICLE 10
1. The members of the Commission shall be appointed in accordance
with the procedure referred to in paragraph 2, for a period of five
years, subject, if need be, to Article 24.
Their term of office shall be renewable.
2. The governments of the Member States shall nominate by common
accord, after consulting the European Parliament, the person they
intend to appoint as President of the Commission.
The governments of the Members States shall, in consultation with the
nominee for the President, nominate the other persons whom they
intend to appoint as members of the Commission.
The President and the other members of the Commission thus
nominated shall be subject as a body to a vote of approval by the
European Parliament. After approval by the European Parliament, the
President and the other members of the Commission shall be
appointed by common accord of the Member States.
3. Paragraphs 1 and 2 shall be applied for the first time to the
President and the other members of the Commission whose term of
office begins on 7 January 1995.
The President and the other members of the Commission whose term
of office beings on 7 January 1993 shall be appointed by common
accord of the governments of the Member States. Their term of office
shall expire on 6 January 1995.
ARTICLE 11
The Commission may appoint a Vice-President or two Vice-Presidents
from among its members.
ARTICLE 12
Apart from normal replacement, or death, the duties of a member of the
Commission shall end when he resigns or is compulsorily retired.
The vacancy thus caused shall be filled for the remainder of the
members term of office by a new member appointed by common
accord of the governments of the Member States. The Council may,
acting unanimously, decide that such a vacancy need not be filled.
In the event of resignation, compulsory retirement or death, the
President shall be replaced for the remainder of his term of office. The
procedure laid down in Article 10(2) shall be applicable for the
replacement of the President.
Save in the case of compulsory retirement under Article 12a, members
of the Commission shall remain in office until they have been
replaced.
ARTICLE 12a
If any member of the Commission no longer fulfils the conditions
required for the performance of his duties or if he has been guilty of
serious misconduct, the Court of Justice may, on application by the
Council or the Commission, compulsorily retire him.
ARTICLE 13
The Commission shall act by a majority of the number of members
provided for in Article 9.
A meeting of the Commission shall be valid only if the number of
members laid down in its rules of procedure is present."
3) Article 16 shall be replaced by the following:
"ARTICLE 16
The Commission shall make all appropriate administrative
arrangements for the operation of its departments.
It may set up study committees, including an economic study
committee.
The Council and the Commission shall consult each other and shall
settle by common accord their methods of co-operation.
The Commission shall adopt its rules of procedure so as to ensure
that both it and its departments operate in accordance with the
provisions of this Treaty. It shall ensure that these rules are
published."
4) The following article shall be inserted:
"ARTICLE 17
The commission shall publish annually, not later than one month
before the opening of the session of the European Parliament, a
general report on the activities of the Community."
5) The following subparagraph shall be added to Article 18:
"The Council shall, acting by a qualified majority, determine any
payment to be made instead of remuneration."
6) The following Articles shall be inserted:
"ARTICLE 20a
The European Parliament may, acting by a majority of its members,
request the Commission to submit any appropriate proposal on
matters which it considers that a Community act is required for the
purpose of implementing this Treaty.
ARTICLE 20b
In the course of its duties, the European Parliament may, at the
request of a quarter of its members, set up a temporary Committee of
Inquiry to investigate, without prejudice to the powers conferred by
this Treaty on other institutions or bodies, alleged contraventions or
maladministration in the implementation of Community law, except
where the alleged facts are being examined before a Court and while
the case is still subject to legal proceedings.
The temporary Committee of Inquiry shall cease to exist on the
submission of its report.
The detailed provisions governing the exercise of the right of inquiry
shall be determined by common accord of the European Parliament,
the Council, and the Commission.
ARTICLE 20c
Any citizen of the Union, and any natural or legal person residing or
having its registered office in a Member State, shall have the right to
address, individually or in association with other citizens or persons,
a petition to the European Parliament on a matter which comes within
the Community's field's of activity and which affects him, her or it
directly.
ARTICLE 20d
1. The European Parliament shall appoint an Ombudsman empowered
to receive complaints from any citizen of the Union or any natural or
legal person residing or having its registered office in a Member State
concerning instances of maladministration in the activities of the
Community institutions or bodies, with the exception of the Court of
Justice and the Court of First Instance acting in their judicial role.
In accordance with his duties, the Ombudsman shall conduct enquiries
for which he finds grounds, either on his own initiative or on the basis
of complaints submitted to him direct or through a member of the
European Parliament, except where the alleged facts are or have been
the subject of legal proceedings. Where the Ombudsman establishes
an instance of maladministration, he shall refer the matter to the
institution concerned, which shall have a period of three months in
which to inform him of its views. The Ombudsman shall then forward a
report to the European Parliament, and the institution concerned. The
person lodging the complaint shall be informed of the outcome of such
inquiries.
The Ombudsman shall submit an annual report to the European
Parliament on the outcome of his inquiries.
2. The Ombudsman shall be appointed after each election of the
European parliament for the duration of its term of office. The
Ombudsman shall be eligible for reappointment.
The Ombudsman may be dismissed by the Court of Justice at the
request of the European Parliament if he no longer fulfils the
conditions required for the performance of his duties or if he is guilty
of serious misconduct.
3. The Ombudsman shall be completely independent in the
performance of his duties. In the performance of those duties he shall
neither seek nor take instructions from any body. The Ombudsman
may not, during his term of office, engage in any other occupation,
whether gainful or not.
4. The European Parliament shall, after seeking an opinion from the
Commission and with the approval of the Council acting by a qualified
majority, lay down the regulations and general conditions governing
the performance of the Ombudsman's duties."
7) Paragraph 3 of Article 21 shall be replaced by the following:
"3. The European Parliament shall draw up proposals for elections by
direct universal suffrage in accordance with a uniform procedure in all
Member States.
The Council shall, acting unanimously after obtaining the assent of the
European Parliament, which shall act by a majority of its component
members, lay down the appropriate provisions, which it shall
recommend to Member States for adoption in accordance with their
respective constitutional requirements."
8) Article 24 shall be replaced by the following:
"ARTICLE 24
The European Parliament shall discuss in open session the general
report submitted to it by the Commission.
If a motion of censure on the activities of the Commission is tabled
before it, the European Parliament shall not vote thereon until at least
three days after the motion has been tabled and only by open vote.
If a motion of censure is carried by a two-thirds majority of the votes
cast, representing a majority of the members of the European
Parliament, the members of the Commission shall resign as a body.
They shall continue to deal with current business until they are
replaced in accordance with Article 10. In this case, the term of office
the members of the Commission appointed to replace them shall
expire on the date on which the term of office of the members of the
Commission obliged to resign as a body would have expired."
9) The following Articles shall be inserted:
"ARTICLE 27
The Council shall consist of a representative of each Member State at
a ministerial level, authorized to commit the government of that
Member State.
The office of President shall be held in turn by each Member State in
the Council for a term of six months, in the following order of Member
States:
- for a first cycle of six years: Belgium, Denmark, Germany, Greece,
Spain, France, Ireland, Italy, Luxembourg, Netherlands, Portugal,
United Kingdom;
- for the following cycle of six years: Denmark, Belgium, Greece,
Germany, France, Spain, Italy, Ireland, Netherlands, Luxembourg,
United Kingdom, Portugal.
ARTICLE 27a
The Council shall meet when convened by its President on his own
initiative or at the request of one of its members or of the
Commission."
10) The following Article shall be inserted:
"ARTICLE 29
The Council shall, acting by a qualified majority, determine the
salaries, allowances and pensions of the President and members of
the Commission, and of the President, Judges, Advocates-General and
Registrar of the Court of Justice. It shall also, again by a qualified
majority, determine any payment to be made instead of remuneration,
ARTICLE 30
1. A committee consisting of the Permanent Representatives of the
Member States shall be responsible for preparing the work of the
Council and for carrying out the tasks assigned to it by the Council.
2. The Council shall be assisted by a General Secretariat, under the
direction of a Secretary General. The Secretary-General shall be
appointed by the Council acting unanimously.
The Council shall decide on the organization of the General
Secretariat.
3. The Council shall adopt its rules of procedure."
11) Article 32 shall be replaced by the following;
"ARTICLE 32
The Court of Justice shall consist of thirteen Judges.
The Court of Justice shall sit in plenary session. It may, however, form
Chambers, each consisting of three or five Judges, either to undertake
certain preparatory inquiries, or to adjudicate on particular categories
of cases in accordance with the rules laid down for these purposes.
The Court of Justice shall sit in plenary session when a Member State
or a Community institution that is a party to the proceedings so
requests.
Should the Court of Justice so request, the Council may, acting
unanimously, increase the number of Judges and make the necessary
adjustments to the second and third paragraphs of this Article and to
the second paragraph of Article 32b."
12) Article 32d shall be replaced by the following:
"ARTICLE 32d
1. A Court of First Instance shall be attached to the Court of Justice
with jurisdiction to hear and determine at first instance, subject to a
right of appeal to the Court of Justice on points of law only and in
accordance with the conditions laid down by the Statute, certain
classes of action or proceeding defined in accordance with the
conditions laid down by the Statute, certain classes of action or
proceeding defined in accordance with the conditions laid down in
paragraph 2. The Court of First Instance shall not be competent to hear
and determine questions referred for a preliminary ruling under Article
41.
2. At the request of the Court of Justice and after consulting the
European Parliament and the Commission, the Council, acting
unanimously, shall determine the classes of action or proceeding
referred to in paragraph 1, and the composition of the Court of First
instance and shall adopt the necessary adjustments and additional
provisions to the Statute of the Court of Justice. Unless the Council
decides otherwise, the provisions of this Treaty relating to the Court of
Justice, in particular the provisions of the Protocol on the Statute of the
Court of Justice, shall apply to the Court of the First Instance.
3. The members of the Court of First instance shall be chosen from
persons whose independence is beyond doubt and who possess the
ability required for appointment to judicial office; they shall be
appointed by common accord of the governments of the Member
States for a term of six years. The membership shall be partially
renewed every three years. Retiring members shall be eligible for re-
appointment.
4. The Court of First Instance shall establish its rules of procedure in
agreement with the Court of Justice. Those rules shall require the
unanimous approval of the Council."
13) Article 33 shall be replaced by the following:
"ARTICLE 33
The Court of Justice shall have jurisdiction in actions brought by a
Member State or by the Council to have decisions or
recommendations of the Commission declared void on grounds of lack
of competence, infringement of an essential procedural requirement,
infringement of this Treaty or of any rule of law relating to its
application, or misuse of powers. The Court of Justice may not,
however, examine the evaluation of the situation, resulting from
economic facts or circumstances, in the light of which the Commission
took its decisions or made its recommendations, save where the
Commission is alleged to have misused its powers or to have
manifestly failed to observe the provisions of the Treaty or any rule of
law relating to its application.
Undertakings or associations referred to in Article 48 may, under the
same conditions, institute proceedings against decisions or
recommendations concerning them which are individual in character or
against general decisions or recommendations which they consider to
involve a misuse of powers affecting them.
The proceedings provided for in the first two paragraphs of this Article
shall be instituted within one month of the notification or publication,
as the case may be, of the decision or recommendation.
The Court of Justice shall have jurisdiction under the same conditions
in actions brought by the European Parliament for the purpose of
protecting its prerogatives."
14) The following chapter shall be inserted:
"CHAPTER V
THE COURT OF AUDITORS
ARTICLE 45a
The Court of Auditors shall carry out the audit.
ARTICLE 45b
1. The Court of Auditors shall consist of twelve members.
2. The members of the Court of Auditors shall be chosen from among
persons who belong or have belonged in their respective countries to
external audit bodies or who are especially qualified for this office.
Their independence must be beyond doubt.
3. The members of the Court of Auditors shall be appointed for a term
of six years by the Council, acting unanimously after consulting the
European Parliament.
However, when the first appointments are made, four members of the
Court of Auditors, chosen by lot, shall be appointed for a term of office
of four years only.
The members of the Court of Auditors shall be eligible for
reappointment.
They shall elect the President of the Court of Auditors from among their
number for a term of three years. The President may be re-elected.
4. The members of the Court of Auditors shall, in the general interest of
the Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties.
5. The members of the Court of Auditors may not, during their term of
office, engage in any other occupation, whether gainful or not. When
entering upon their duties they shall give a solemn undertaking that,
both during and after their term of office, they will respect the
obligations arising therefrom and in particular their duty to behave
with integrity and discretion as regards the acceptance, after they
have ceased to hold office, of certain appointments or benefits.
6. Apart from normal replacement, or death, the duties of a member of
the Court of Auditors shall end when he resigns, or is compulsorily
retired by a ruling of the Court of Justice pursuant to paragraph 7.
The vacancy thus caused shall be filled for the remainder of the
member's term of office.
Save in the case of compulsory retirement, members of the Court of
Auditors shall remain in office until they have been replaced.
7. A member of the Court of Auditors may be deprived of his office or of
his right to a pension or other benefits in its stead only if the Court of
Justice, at the request of the Court of Auditors, finds that he no longer
fulfills the requisite conditions or meets the obligations arising from
his office.
8. The Council, acting by a qualified majority, shall determine the
conditions of employment of the President and the members of the
Court of Auditors and in particular their salaries, allowances and
pensions. It shall also, by the same majority, determine any payment
to be made instead of remuneration.
9. The provisions of the Protocol on the Privileges and Immunities of
the European Communities applicable to the Judges of the Court of
Justice shall also apply to the members of the Court of Auditors.
ARTICLE 45c
1. The Court of Auditors shall examine the accounts of all revenue and
expenditure of the Community. It shall also examine the accounts of
all revenue and expenditure of all bodies set up by the Community in
so far as the relevant constituent instrument does not preclude such
examination.
The Court of Auditors shall provide the European Parliament and the
Council with a statement of assurance as to the reliability of the
accounts and the legality and regularity of the underlying transactions.
2. The Court of Auditors shall examine whether all revenue referred to
in paragraph 1 has been received and all expenditure referred to in
that paragraph has been incurred in a lawful and regular manner and
whether the financial management has been sound.
The audit of revenue shall be carried out on the basis of the amounts
established as due and the amounts actually paid to the community.
The audit of expenditure shall be carried out on the basis both of
commitments undertaken and payments made.
These audits may be carried out before the closure of accounts for the
financial year in question.
3. The audit shall be based on records and, if necessary, performed
on the spot in the other institutions of the Community and in the
Member States. In the Member States the audit shall be carried out in
liaison with the national audit bodies or, if these do not have the
necessary powers, with the competent national departments. Theses
bodies or departments shall inform the Court of Auditors whether they
intend to take part in the audit.
The other institutions of the Community and the national audit bodies
or, if these do not have the necessary powers, the competent national
departments, shall forward to the Court of Auditors, at its request, any
document or information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close
of each financial year. It shall be forwarded to the other institutions of
the Community and shall be published, together with the replies of
these institutions to the observations of the Court of Auditors, in the
Official Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations,
particularly in the form of special reports, on specific questions and
deliver opinions at the request of one of the other institutions of the
Community.
It shall adopt its annual reports, special reports or opinions by a
majority of its members.
It shall assist the Europe and Parliament and the Council in exercising
their powers of control over the implementation of the budget.
5. The Court of Auditors shall also draw up a separate annual report
stating whether the accounting other than that for the expenditure and
revenue referred to in paragraph 1 and the financial management by
the Commission relating thereto have been effected in a regular
manner. It shall draw up this report within six months of the end of the
financial year to which the accounts refer and shall submit it to the
Commission and the Council. The Commission shall forward it to the
European Parliament."
15) Article 78c shall be replaced by the following:
"ARTICLE 78c
The Commission shall implement the administrative budget, in
accordance with the provisions of the regulations made pursuant to
Article 78h, on its own responsibility and within the limits of the
appropriations, having regard to the principles of sound financial
management.
The regulations shall lay down detailed rules for each institution
concerning its part in effecting its own expenditure.
Within the administrative budget, the Commission may, subject to the
limits and conditions laid down in the regulations made pursuant to
Article 78h, transfer appropriations from one chapter to another or from
one subdivision to another."
16) Articles 78e and 78f shall be repealed.
17) Article 78g shall be replaced by the following:
"ARTICLE 78g
1. The European Parliament, acting on a recommendation from the
Council, which shall act by a qualified majority, shall give a discharge
to the Commission in respect of the implementation of the
administrative budget. To this end, the Council and the European
Parliament in turn shall examine the account and the financial
statement referred to in Article 78d, the annual report by the Court of
Auditors together with the replies of the institutions under audit to the
observations of the Court of Auditors, and any relevant special reports
by the Court of Auditors.
2. Before giving a discharge to the Commission, or for any other
purpose in connection with the exercise of its powers over the
implementation of the administrative budget, the European Parliament
may ask to hear the Commission give evidence with regard to the
execution of expenditure or the operation of financial control systems.
The Commission shall submit any necessary information to the
European Parliament at the latter's request.
3. The Commission shall take all appropriate steps to act on the
observations in the decisions giving discharge on other observations
by the European Parliament relating to the execution of expenditure,
as well as on comments accompanying the recommendations on
discharge adopted by the Council.
At the request of the European Parliament or Council, the Commission
shall report on the measures taken in the light of these observations
and comments and in particular on the instructions given to the
departments which are responsible for the implementation of the
administrative budget. These reports shall also be forwarded to the
Court of Auditors."
18) Article 78h shall be replaced by the following:
"ARTICLE 78h
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and obtaining the
opinion of the Court of Auditors, shall:
a) make Financial Regulations specifying in particular the procedure to
be adopted for establishing the implementing the administrative
budget and for presenting and auditing accounts;
b) determine the methods and procedure whereby the budget revenue
provided under the arrangements relating to the Communities' own
resources shall be made available to the Commission, and determine
the measures to be applied, if need be, to meet cash requirements;
c) lay down rules concerning the responsibility of financial controllers,
authorizing officers and accounting officers, and concerning
appropriate arrangements for inspection."
19) The following Article shall be inserted:
"ARTICLE 78i
Member States shall take the same measures to counter fraud
affecting the financial interests of the Community as they take to
counter fraud affecting their own financial interests.
Without prejudice to other provisions of this Treaty, Member States
shall co-ordinate their action aimed at protecting the financial interests
of the Community against fraud. To this end they shall organize, with
the help of the Commission, close and regular co-operation between
the competent departments of their administrations."
20) Article 79(a) shall be replaced by the following:
"(a) This Treaty shall not apply to the Faroe Islands."
21) Articles 96 and 98 shall be repealed.

TITLE4
PROVISIONS AMENDING THE TREATY ESTABLISHING THE
EUROPEAN ATOMIC ENERGY COMMUNITY

ARTICLE 1
The Treaty establishing European Atomic Energy Community shall be
amended in accordance with the provisions of this Article.
1) Article 3 shall be replaced by the following:
"ARTICLE 3
1) The tasks entrusted to the Community shall be carried out by the
following institutions:
- a EUROPEAN PARLIAMENT,
- a COUNCIL,
- a COMMISSION,
- a COURT OF JUSTICE,
- a COURT OF AUDITORS.
Each institution shall act within the limits of the powers conferred upon
it by this Treaty.
2. The Council and the Commission shall be assisted by an Economic
and Social Committee acting in an advisory capacity."
2) The following Articles shall be inserted:
"ARTICLE 107a
The European Parliament may, acting by a majority of its members,
request the Commission to submit any appropriate proposal on
matters on which it considers that a Community act is required for the
purpose of implementing this Treaty.
ARTICLE 107b
In the course of its duties, the European Parliament may, at the
request of a quarter of its members, set up a temporary Committee of
Inquiry to investigate, without prejudice to the powers conferred by
this Treaty on other institutions or bodies, alleged contraventions or
maladministration in the implementation of Community law, except
where the alleged facts are being examined before a court and while
the case is still subject to legal proceedings.
The temporary Committee of Inquiry shall cease to exist on the
submission of its report.
The detailed provisions governing the exercise of the right of inquiry
shall be determined by common accord of the European Parliament,
the Council and the Commission.
ARTICLE 107c
Any citizen of the Union, and any natural or legal person residing or
having its registered office in a Member State, shall have the right to
address, individually or in association with other citizens or persons,
a petition to the European Parliament on a matter which comes within
the Community's fields of activity and which affects him, her or it
directly.
ARTICLE 107d
1. The European Parliament shall appoint an Ombudsman empowered
to receive complaints from any citizen of the Union or any natural or
legal person residing or having its registered office in a Member State
concerning instances of maladministration in the activities of the
Community institutions or bodies, with the exception of the Court of
Justice and the Court of First Instance acting in their judicial role.
In accordance with his duties, the Ombudsman shall conduct inquiries
for which he finds grounds, either on his own initiative or on the basis
of complaints submitted to him direct or through a member of the
European Parliament, except where the alleged facts are or have been
the subject of legal proceedings. Where the Ombudsman establishes
an instance of maladministration, he shall refer the matter to the
institution concerned. The person lodging the complaint shall be
informed of the outcome of such inquiries.
The Ombudsman shall submit an annual report to the European
Parliament on the outcome of his inquiries.
2. The Ombudsman shall be appointed after each election of the
European Parliament for the duration of its term of office. The
Ombudsman shall be eligible for reappointment.
The Ombudsman may be dismissed by the Court of Justice at the
request of the European Parliament if he no longer fulfils the
conditions required for the performance of his duties or if he is guilty
of serious misconduct.
3. The Ombudsman shall be completely independent in the
performance of his duties. In the performance of those duties he shall
neither seek nor take instructions form any body. The Ombudsman
may not, during his term of office, engage in any other occupation,
whether gainful or not.
4. The European Parliament shall, after seeking an opinion from the
Commission and with the approval of the Council acting by a qualified
majority, lay down the regulations and general conditions governing
the performance of the Ombudsman's duties."
3) Paragraph 3 of Article 108 shall be replaced by the following:
"3. The European Parliament shall draw up proposals for elections by
direct universal suffrage in accordance with a uniform procedure in all
Member States.
The Council shall, acting unanimously after obtaining the assent of the
European Parliament, which shall act by a majority of its component
members, lay down the appropriate provisions, which it shall
recommend to Member States for adoption in accordance with their
respective constitutional requirements."
4) The second subparagraph of Article 114 shall be supplemented by
the following sentence:
"In this case, the term of office of the members of the Commission
appointed to replace them shall expire on the date on which the term
of office of the members of the Commission obliged to resign as a
body would have expired."
5) The following Articles shall be inserted:
"ARTICLE 116
The Council shall consist of a representative of each Member State at
ministerial level, authorized to commit the government of that Member
State.
The office of President shall be held in turn by each Member State in
the Council for a term of six months, in the following order of Member
States.
- for a first cycle of six years: Belgium, Denmark, Germany, Greece,
Spain, France, Ireland, Italy, Luxembourg, Netherlands, Portugal,
United Kingdom.
- for the following cycle of six years: Denmark, Belgium, Greece,
Germany, France, Spain, Italy, Ireland, Netherlands, Luxembourg,
United Kingdom, Portugal.
ARTICLE 117
The Council shall meet when convened by its President on his own
initiative or at the request of one of its members or of the
Commission."
6) The following Article shall be inserted:
"ARTICLE 121
1. A committee consisting of the Permanent Representatives of the
Member States shall be responsible for preparing the work of the
Council and for carrying out the tasks assigned to it by the Council.
2. The Council shall be assisted by a General Secretariat, under the
direction of a Secretary-General. The Secretary-General shall be
appointed by the Council acting unanimously.
The Council shall decide on the organization of the General
Secretariat.
3. The Council shall adopt its rules of procedure."
7) The following Article shall be inserted:
"ARTICLE 123
The Council shall, acting by a qualified majority, determine the
salaries, allowances and pensions of the President and members of
the Commission, and of the President, Judges, Advocates-General and
Registrar of the Court of Justice. It shall also, again by a qualified
majority, determine any payment to be made instead of remuneration."
8) The following Articles shall be inserted;
"ARTICLE 125
The Commission shall publish annually, not later than one month
before the opening of the session of the European Parliament, a
general report on the activities of the Community.
ARTICLE 126
1. The Commission shall consist of seventeen members, who shall be
chosen on the grounds of their general competence and whose
independence is beyond doubt.
The number of members of the Commission may be altered by the
Council, acting unanimously.
Only nationals of the Member States may be members of the
Commission.
The Commission must include at least one national of each of the
Member States, but may not include more than two members having
the nationality of the same State.
2. The members of the Commission shall, in the general interest of the
Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties. Each Member
State undertakes to respect this principle and not to seek to influence
the members of the Commission in the performance of their tasks.
The members of the Commission may not, during their term of office,
engage in any other occupation, whether gainful or not. When entering
upon their duties they shall give a solemn undertaking that, both
during and after their term or office, they will respect the obligations
arising therefrom and in particular their duty to behave with integrity
and discretion as regards the acceptance after they have ceased to
hold office, of certain appointments or benefits. In the event of any
breach of these obligations arising therefrom and in particular their
duty to behave with integrity and discretion as regards the acceptance,
after they have ceased to hold office, of certain appointments or
benefits. In the event of any breach of these obligations, the Court of
Justice may, on application by the Council or the Commission, rule
that the member concerned be, according to the circumstances, either
compulsorily retired in accordance with Article 129 or deprived of his
right to a pension or other benefits in its stead.
ARTICLE 127
1. The members of the Commission shall be appointed, in accordance
with the procedure referred to in paragraph 2, for a period of five
years, subject, if need be, to Article 114.
Their term of office shall be renewable.
2. The governments of the Member States shall nominate by common
accord, after consulting the European Parliament, the person they
intend to appoint as President of the Commission.
The governments of the Member States shall, in consultation with the
nominee for President, nominate the other persons whom they intend
to appoint as members of the Commission.
The President and other members of the Commission thus nominated
shall be subject as a body to a vote of approval by the European
Parliament. After approval by the European Parliament, the President
and the other members of the Commission shall be appointed by
common accord of the governments of the Member States.
3. Paragraphs 1 and 2 shall be applied for the first time to the
President and other members of the Commission whose term of office
begins on 7 January 1995.
The President and the other members of the Commission whose term
of office begins on 7 January 1993 shall be appointed by common
accord of the governments of the Member States. Their term of office
shall expire on 6 January 1995.
ARTICLE 128
Apart from normal replacement, or death, the duties of a member of the
Commission shall end when he resigns or is compulsorily retired.
The vacancy thus caused shall be filled for the remainder of the
member's term of office by a new member appointed by common
accord of the governments of the Member States. The Council may,
acting unanimously, decide that such a vacancy need not be filled.
In the event of resignation, compulsory retirement or death, the
President shall be replaced for the remainder of his term of office. The
procedure laid down in Article 127(2) shall be applicable for the
replacement of the President.
Save in the case of compulsory retirement under Article 129, members
of the Commission shall remain in office until they have been
replaced.
ARTICLE 129
If any member of the Commission no longer fulfills the conditions
required for the performance of his duties or if he has been guilty of
serious misconduct, the Court of Justice may, on application by the
Council or Commission, compulsorily retire him.
ARTICLE 130
The Commission may appoint a Vice-President or two Vice-Presidents
from among its members.
ARTICLE 131
The Council and the Commission shall consult each other and shall
settle by common accord their methods of co-operation.
The Commission shall adopt its rules of procedure so as to ensure
that both it and its departments operate in accordance with the
provisions of the Treaty. It shall ensure that these rules are published.
ARTICLE 132
The Commission shall act by a majority of the number of members
provided for in Article 126.
A meeting of the Commission shall be valid only if the number of
members laid down in its rules of procedure is present."
9) Article 133 shall be repealed.
10) Article 137 shall be replaced by the following:
"ARTICLE 137
The Court of Justice shall consist of thirteen Judges.
The Court of Justice shall sit in plenary session. It may, however, form
Chambers, each consisting of three or five Judges, either to undertake
certain preparatory inquiries or to adjudicate on particular categories
of cases in accordance with the rules laid down for these purposes.
The Court of Justice shall Sit in plenary session when a Member State
or a Community institution that is a party to the proceedings so
requests.
Should the Court of Justice so request, the Council may, acting
unanimously, increase the number of Judges and make the necessary
adjustments to the second and third paragraphs of this Article 139."
11) Article 140a shall be replaced by the following:
"ARTICLE 140a
1. A Court of First Instance shall be attached to the Court of Justice
with jurisdiction to hear and determine at first instance, subject to a
right of appeal to the Court of Justice on points of law only and in
accordance with the conditions laid down by the Statute, certain
classes of action or proceeding defined in accordance with the
conditions laid down in paragraph 2. The Court of First Instance shall
not be competent to hear and determine questions referred for a
preliminary ruling under Article 150.
2. At the request of the Court of Justice and after consulting the
European Parliament and the Commission, the Council, acting
unanimously, shall determine the classes of action or proceeding
referred to in paragraph 1 and the composition of the Court of First
Instance and shall adopt the necessary adjustments and additional
provisions to the Statute of the Court of Justice. Unless the Council
decides otherwise, the provisions of this Treaty relating to the Court of
Justice, in particular the provisions of the Protocol on the Statute of the
Court of Justice, shall apply to the Court of the First Instance.
3. The members of the Court of First Instance shall be chosen from
persons whose independence is beyond doubt and who possess the
ability required for appointment to judicial office; they shall be
appointed by common accord of the governments of the Member
States for a term of six years. The membership shall be partially
renewed every three years. Retiring members shall be eligible for re-
appointment.
4. The Court of First Instance shall establish its rules of procedure in
agreement with the Court of Justice. Those rules shall require the
unanimous approval of the Council."
12) Article 143 shall be replaced by the following:
"ARTICLE 143
1. If the Court of Justice finds that a Member State has failed to fulfil an
obligation under this Treaty, the State shall be required to take the
necessary measures to comply with the judgment of the Court of
Justice.
2. If the Commission considers that the Member State concerned has
not taken such measures it shall, after giving that State the opportunity
to submit its observations, issue a reasoned opinion specifying the
points which the Member State concerned has not complied with the
judgment of the Court of Justice.
If the Member State concerned fails to take the necessary measures to
comply with the Court's judgment within the time-limit laid down by the
Commission, the latter may bring the case before the Court of Justice.
In so doing it shall specify the amount of the lump sum or penalty
payment to be paid by the Member State concerned which it considers
appropriate in the circumstances.
If the Court of Justice finds that the Member State concerned has not
complied with its judgment it may impose a lump sum or penalty
payment on it.
This procedure shall be without prejudice to Article 142."
13) Article 146 shall be replaced by the following:
"ARTICLE 146
The Court of Justice shall review the legality of acts of the Council and
of the Commission, other than recommendations and opinions, and of
acts of the European Parliament intended to produce legal effects vis-
a-vis third parties.
It shall for this purpose have jurisdiction in actions brought by a
Member State, the Council or the Commission on grounds of lack of
competence, infringement of this Treaty or of any rule of law relating to
its application, or misuse of powers.
The Court shall have jurisdiction under the same conditions in actions
brought by the European Parliament for the purpose of protecting its
prerogatives.
Any natural or legal person may, under the same conditions, institute
proceedings against a decision addressed to that person or against a
decision which, although in the form of a regulation or a decision
addressed to another person, is of direct and individual concern to the
former.
The proceedings provided for in this Article shall be instituted within
two months of the publication of the measure, or of its notification to
the plaintiff, or, in the absence thereof, of the day on which it came to
the knowledge of the latter, as the case may be."
14) The following Section shall be inserted;
"SECTION V
THE COURT OF AUDITORS
ARTICLE 160a
The Audit shall be carried out by the Court of ~Auditors.
ARTICLE 160b
1. The Court of Auditors shall consist of twelve members.
2. The members of the Court of Auditors shall be chosen from among
persons who belong or have belonged in their respective countries to
external audit bodies or who are especially qualified for this office.
Their independence must be beyond doubt.
3. The members of the Court of Auditors shall be appointed for a term
of six years by the Council, acting unanimously after consulting the
European Parliament.
However, when the first appointments are made, four members of the
Court of Auditors, chosen by lot, shall be appointed for a term of office
of four years only.
The members of the Court of Auditors shall be eligible for
reappointment.
They shall elect the President of the Court of Auditors from among their
number for a term of three years. The President may be re-elected.
4. The members of the Court of Auditors shall, in the general interest of
the Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties.
5. The members of the Court of Auditors may not, during their term of
office, engage in any other occupation, whether gainful or not. When
entering upon their duties they shall give a solemn undertaking that,
both during and after their term of office, they will respect the
obligations arising therefrom and in particular their duty to behave
with integrity and discretion as regards the acceptance, after they
have ceased to hold office, of certain appointments or benefits.
6. Apart from normal replacement, or death, the duties of a member of
the Court of Auditors shall end when he resigns, or is compulsorily
retired by a ruling of the Court of Justice pursuant to paragraph 7.
The vacancy thus caused shall be filled for the remainder of the
member's term of office.
Save in the case of compulsory retirement, members of the Court of
Auditors shall remain in office until they have been replaced.
7. A member of the Court of Auditors may be deprived of his office or of
his right to a pension or other benefits in its stead only if the Court of
Justice, at the request of the Court of Auditors, finds that he no longer
fulfills the requisite conditions or meets the obligations arising from
his office.
8. The Council, acting by a qualified majority, shall determine the
conditions of employment of the President and the members of the
Court of Auditors and in particular their salaries, allowances and
pensions. It shall also, by the same majority, determine any payment
to be made instead of remuneration.
9. The provisions of the Protocol on the Privileges and Immunities of
the European Communities applicable to the judges of the Court of
Justice shall also apply to the members of the Court of Auditors.
ARTICLE 160c
1. The Court of Auditors shall examine the accounts of all revenue and
expenditure of the Community. It shall also examine the accounts of
all revenue and expenditure of all bodies set up by the Community
insofar as the relevant constituent instrument does not preclude such
examination.
The Court of Auditors shall provide the European Parliament and the
Council with a statement of assurance as to the reliability of the
accounts and the legality and regularity of the underlying transactions.
2. The Court of Auditors shall examine whether all revenue has been
received and all expenditure incurred in a lawful and regular manner
and whether the financial management has been sound.
The audit of revenue shall be carried out on the basis of the amounts
established as due and the amounts actually paid to the Community.
The audit of expenditure shall be carried out on the basis both of
commitments undertaken and payments made.
These audits may be carried out before the closure of accounts for the
financial year in question.
3. The audit shall be based on records and, if necessary, performed
on the spot in the other institutions of the Community and in the
Member States. In the Member States the audit shall be carried out in
liaison with the national audit bodies or, if these do not have the
necessary powers, with the competent national departments. These
bodies or departments shall inform the Court of Auditors whether they
intend to take part in the audit.
The other institutions of the Community and the national audit bodies
or, if these do not have the necessary powers, the competent national
department, shall forward to the Court of Auditors, at its request, any
document or information necessary to carry on its task.
4. The Court of Auditors shall draw up an annual report after the close
of each financial year. It shall be forwarded to the other institutions of
the Community and shall be published, together with the replies of
these institutions to the observations of the Court of Auditors, in the
Official Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations,
particularly in the form of special reports, on specific questions and
deliver opinions at the request of one of the other institutions of the
Community.
It shall adopt its annual reports, special reports or opinions by a
majority of its members.
It shall assist the European Parliament and the Council in exercising
their powers of control over the implementation of the budget."
15) Article 166 shall be replaced by the following:
"ARTICLE 166
The number of members of the Economic and Social Committee shall
be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24
The members of the Committee shall be appointed by the Council,
acting unanimously, for four years. Their appointment shall be
renewable.
The members of the Committee may not be bound by any mandatory
instructions. They shall be completely independent in the performance
of their duties, in the general interest of the Community.
The Council, acting by qualified majority, shall determine the
allowances of the members of the Committee."
168 shall be replaced by the following;
"ARTICLE 168
The Committee shall elect its chairman and officers from among its
members for a term of two years.
It shall adopt its rules of procedure.
The Committee shall be convened by its chairman at the request of the
Council or of the Commission. It may also meet on its own initiative."
17) Article 170 shall be replaced by the following:
"ARTICLE 170
The Committee must be consulted by the Council or by the
Commission where this Treaty so provides. The Committee may be
consulted by these institutions in all cases in which they consider it
appropriate. It may issue an opinion on its own initiative in cases in
which it considers such action appropriate.
The Council or the Commission shall, if it considers it necessary, set
the Committee, for the submission of its opinion, a time limit which
may not be less than one month from the date on which the chairman
receives notification to this effect. Upon expiry of the time limit, the
absence of an opinion shall not prevent further action.
The opinion of the Committee and that of the specialized section,
together with a record of the proceedings, shall be forwarded to the
Council and to the Commission."
18) Paragraphs 1 to 3 of Article 172 shall be repealed.
19) Article 173 shall be replaced by the following:
"ARTICLE 173
Without prejudice to other revenue, the budget shall be financed
wholly from own resources.
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament, shall lay down
provisions relating to the system of own resources of the Community,
which it shall recommend to the Member States for adoption in
accordance with their respective constitutional requirements."
20) The following Article shall be inserted:
"ARTICLE 173a
With a view to maintaining budgetary discipline, the Commission shall
not make any proposal for a Community act, or alter its proposals, or
adopt any implementing measure which is likely to have appreciable
implications for the budget without providing the assurance that that
proposal or that measure is capable of being financed within the limit
to the Community's own resources arising under provisions laid down
by the Council pursuant to Article 173."
21) Article 179 shall be replaced by the following:
"ARTICLE 179
The Commission shall implement the budgets, in accordance with the
provisions of the regulations made pursuant to Article 183, on its own
responsibility and within the limits of the appropriations, having
regard to the principles of sound financial management.
The regulations shall lay down detailed rules for each institution
concerning its part in effecting its own expenditure.
Within the budgets, the Commission may, subject to the limits and
conditions laid down in the regulations made pursuant to Article 183,
transfer appropriations from one chapter to another or from on
subdivision to another."
22) Articles 180 and 180a shall be repealed.
23) Article 180b shall be replaced by the following:
"ARTICLE 180b
1. The European Parliament, acting on a recommendation from the
Council which shall act by a qualified majority, shall give a discharge
to the Commission in respect of the implementation of the budget. To
this end, the Council and the European Parliament in turn shall
examine the accounts and the financial statement referred to in Article
179a, the annual report by the Court of Auditors together with the
replies of the institutions under audit to the observations of the Court
of Auditors, and any relevant special reports by the Court of Auditors.
2. Before giving a discharge to the Commission, or for any other
purpose in connection with the exercise of its powers over the
implementation of the budget, the European Parliament may ask to
hear the Commission give evidence with regard to the execution of
expenditure or the operation of financial control systems. The
Commission shall submit any necessary information to the European
Parliament at the latter's request.
3. The Commission shall take all appropriate steps to act on the
observations in the decisions giving discharge and on the other
observations by the European Parliament relating to the execution of
expenditure, as well as on comments accompanying the
recommendations on discharge adopted by the Council.
At the request of the European Parliament or the Council, the
Commission shall report on the measures taken in the light of these
observations and comments and in particular of the instructions given
to the departments which are responsible for the implementation of the
budgets. These reports shall also be forwarded to the Court of
Auditors."
24) Article 183 shall be replaced by the following:
"ARTICLE 183
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and obtaining the
opinion of the Court of Auditors, shall:
(a) make Financial Regulations specifying in particular the procedure
to be adopted for establishing and implementing the budget and for
presenting and auditing accounts;
(b) determine the methods and procedure whereby the budget revenue
provided under the arrangements relating to the Community's own
resources shall be made available to the Commission, and determine
the measures to be applied, if need be, to meet cash requirements;
(c) lay down rules concerning the responsibility of financial controllers,
authorizing officers and accounting officers, and concerning
appropriate arrangements for inspection."
25) The following Article shall be inserted:
"ARTICLE 183a
Member States shall take the same measures to counter fraud
affecting the financial interests of the Community as they take to
counter fraud affecting their own financial interests.
Without prejudice to other provisions of this Treaty, Member States
shall co-ordinate their actions aimed at protecting the financial
interests of the Community against fraud. To this end they shall
organize, with the help of the Commission, close and regular co-
operation between the competent departments of their
administrations."
26) Article 198)a) shall be replaced by the following:
"(a) This Treaty shall not apply to the Faroe Islands."
27) Article 201 shall be replaced by the following:
"ARTICLE 201
The Community shall establish close co-operation with the
Organization for Economic Co-operation and Development, the details
of which shall be determined by common accord."
28) Articles 204 and 205 shall be repealed.
29) Article 206 shall be replaced by the following:
"ARTICLE 206
The Community may conclude with one or more States or international
organizations agreements establishing an association involving
reciprocal rights and obligations, common action and special
procedures.
These agreements shall be concluded by the Council, acting
unanimously after consulting the European Parliament.
Where such agreements call for amendments to this Treaty, these
amendments shall first be adopted in accordance with the procedure
laid down in Article N of the Treaty on European Union."

TITLE5
PROVISIONS ON A COMMON FOREIGN AND SECURITY POLICY

ARTICLE J
A common foreign and security policy is hereby established which
shall be governed by the following provisions.

ARTICLE J.1
1. The union and its Member States shall define and implement a
common foreign and security policy, governed by the provisions of the
Title and covering all areas of foreign and security policy.
2. The objectives of the common foreign and security policy shall be:
- to safeguard the common values, fundamental interests and
independence of the Union;
- to strengthen the security of the Union and its Member States in all
ways;
- to preserve peace and strengthen international security, in
accordance with the principles of the United Nations Charter as well as
the principles of the Helsinki Final Act and the objectives of the Paris
Charter;
- to promote international co-operation;
- to develop and consolidate democracy and the rule of law, and
respect for human rights and fundamental freedoms.
3. The Union shall pursue these objectives;
- by establishing systematic co-operation between Member States in
the conduct of policy, in accordance with Article J.2;
- by gradually implementing, in accordance with Article J.3, joint action
in the areas in which the Member States have important interests in
common.
4. The Member States shall support the Union's external and security
policy actively and unreservedly in a spirit of loyalty and mutual
solidarity. They shall refrain from any action which is contrary to the
interests of the Union or likely to impair its effectiveness as a
cohesive force in international relations. The Council shall ensure that
these principles are complied with.

ARTICLE J.2
1. Member States shall inform and consult one another within the
Council on any matter of foreign and security policy of general interest
in order to ensure that their combined influence is exerted as
effectively as possible by means of concerted and convergent action.
2. Whenever it deems it necessary, the Council shall define a common
position.
Member States shall ensure that their national policies conform on the
common positions.
3. Member States shall co-ordinate their action in international
organizations and at international conferences. They shall uphold the
common positions in such fora.
In international organizations and at international conferences where
not all the Member States participate, those which do take part shall
uphold the common positions.

ARTICLE J.3
The procedure for adopting joint action in matters covered by foreign
and security policy shall be the following:
1. The Council shall decide, on the basis of general guidelines from
the European Council, that a matter should be the subject of joint
action.
Whenever the Council decides on the principle of joint action, it shall
lay down the specific scope, the Union's general and specific
objectives in carrying out such action, if necessary its duration, and
the means, procedures and conditions for its implementation.
2. The Council shall, when adopting the joint action and at any stage
during its development, define those matters on which decisions are
to be taken by a qualified majority.
Where the Council is required to act by a qualified majority pursuant to
the preceding subparagraph, the votes of its members shall be
weighted in accordance with Article 148(2) of the Treaty establishing
the European Community, and for their adoption, acts of the Council
shall require at least fifty-four votes in favour, cast by at least eight
members.
3. If there is a change in circumstances having a substantial effect on
a question subject to joint action, the Council shall review the
principles and objectives of that action and take the necessary
decisions. As long as the Council has not acted, the joint action shall
stand.
4. Joint actions shall commit the Member States in the positions they
adopt and in the conduct of their activity.
5. Whenever there is any plan to adopt a national position or take
national action pursuant to a joint action, information shall be provided
in time to allow, if necessary, for prior consultations within the Council.
The obligation to provide prior information shall not apply to measures
which are merely a national transposition of Council decisions.
6. In cases of imperative need arising from changes in the situation
and failing a Council decision, Member States may take the necessary
measures as a matter of urgency having regard to the general
objectives of the joint action. The Member State concerned shall
inform the Council immediately of any such measures.
7. Should there be any major difficulties in implementing a joint action,
a Member State shall refer them to the Council which shall discuss
them and seek appropriate solutions. Such solutions shall not run
counter to the objectives of the joint action or impair its effectiveness.

ARTICLE J.4
1. The common foreign and security policy shall include all questions
related to the security of the Union, including the eventual framing of a
common defence policy, which might in time lead to a common
defence.
2. The union requests the Western European Union (WEU), which is an
integral part of the development of the Union, to elaborate and
implement decisions and actions of the Union which have defence
implications. The Council shall, in agreement with the institutions of
the WEU, adopt the necessary practical arrangements.
3. Issues having defence implications dealt with under this Article
shall not be subject to the procedures set out in Article J.3.
4. The policy of the Union in accordance with this Article shall not
prejudice the specific character of the security and defence policy of
certain Member States and shall respect the obligations of certain
Member States under the North Atlantic Treaty and be compatible with
the common security and defence policy established within that
framework.
5. The provisions of this Article shall not prevent the development of
closer co-operation between two or more Member States on a bilateral
level, in the framework of the WEU and the Atlantic Alliance, provided
such co-operation does not run counter to or impede that provided for
in this Title.
6. With a view to furthering the objective of this Treaty, and having in
view the date of 1998 in the context of Article XII of the Brussels
Treaty, the provisions of this Article may be revised as provided for in
Article N(2) on the basis of a report to be presented in 1996 by the
Council to the European Council, which shall include an evaluation of
the progress made and the experience gained until then.

ARTICLE J.5
1. The Presidency shall represent the Union in matters coming within
the common foreign and security policy.
2. The Presidency shall be responsible for the implementation of
common measures; in that capacity it shall in principle express the
position of the Union in international organizations and international
conferences.
3. In the tasks referred to in paragraphs 1 and 2, the presidency shall
be assisted if needs be by the previous and next Member States to
hold the Presidency. The Commission shall be fully associated in
these tasks.
4. Without prejudice to Article J.2(3) and Article J.3(4), Member States
represented in international organizations or international conferences
where not all the Member States participate shall keep the latter
informed of any matter of common interest.
Member States which are also members of the United Nations Security
Council will concert and keep the other Member States fully informed.
Member States which are permanent members of the Security Council
will, in the execution of their functions, ensure the defence of the
positions and the interests of the union, without prejudice to their
responsibilities under the provisions of the United Nations Charter.

ARTICLE J.6
The diplomatic and consular missions of the Member States and the
Commission Delegations in third countries and international
conferences, and their representations to international organizations,
shall co-operate in ensuring that the common positions and common
measures adopted by the Council are complied with and implemented.
They shall step up co-operation by exchanging information, carrying
out joint assessments and contributing to the implementation of the
provisions referred to in Article 8c of the Treaty establishing the
European Community.

ARTICLE J.7
The Presidency shall consult the European Parliament on the main
aspects and the basic choices of the common foreign and security
policy and shall ensure that the views of the European Parliament are
duly taken into consideration. The European Parliament shall be kept
regularly informed by the Presidency and the Commission of the
development of the Union's foreign and security policy.
The European Parliament may ask questions of the Councils or make
recommendations to it. It shall hold an annual debate on progress in
implementing the common foreign and security policy.

ARTICLE J.8
1. The European Council shall define the principles of and general
guidelines for the common foreign and security policy.
2. The Council shall take the decisions necessary for defining and
implementing the common foreign and security policy on the basis of
the general guidelines adopted by the European Council. It shall
ensure the unity, consistency and effectiveness of action by the
Union.
The Council shall act unanimously, except for procedural questions
and in the case referred to in Article J.3(2).
3. Any Member State or the Commission may refer to the Council any
question relating to the common foreign policy and may submit
proposals to the Council.
4. In cases requiring a rapid decision, the Presidency, of its own
motion, or at the request of the Commission or a Member State, shall
convene an extraordinary Council meeting within forty-eight hours or,
in an emergency, within a shorter period.
5. Without prejudice to Article 151 of the Treaty establishing the
European Community, a Political Committee consisting of Political
Directors shall monitor the international situation in the areas covered
by common foreign and security policy and contribute to the definition
of policies by delivering opinions to the Council at the request of the
Council or on its own initiative. It shall also monitor the
implementation of agreed policies, without prejudice to the
responsibility of the Presidency and the Commission.

ARTICLE J.9
The Commission shall be fully associated with the work carried out in
the common foreign and security policy field.

ARTICLE J.10
On the occasion of any review of the security provisions under Article
J.4, the Conference which is convened to that effect shall also
examine whether any other amendments need to be made to
provisions relating to the common foreign and security policy.

ARTICLE J.11
1. The provisions referred to in Articles 137, 138, 139 to 142, 146, 147,
150 to 153, 157 to 163 and 217 of the Treaty establishing the
European Community shall apply to the provisions relating to the
areas referred to in this Title.
2. Administrative expenditure which the provisions relating to the
areas referred to in this Title entail for the institutions shall be charged
to the budget of the European Communities.
The Council may also:
- either decide unanimously that operational expenditure to which the
implementation of those provisions gives rise is to be charged to the
budget of the European Communities; in that event, the budgetary
procedure laid down in the Treaty establishing the European
Community shall be applicable;
- or determine that such expenditure shall be charged to the Member
States, where appropriate in accordance with a scale to be decided.

TITLE6
PROVISIONS ON COOPERATION IN THE FIELDS OF JUSTICE AND
HOME AFFAIRS

ARTICLE K
Co-operation in the fields of justice and home affairs shall be
governed by the following provisions.

ARTICLE K.1
For the purposes of achieving the objectives of the Union, in particular
the free movement of persons, and without prejudice to the powers of
the European Community, Member States shall regard the following
areas as matters of common interest:
1. asylum policy;
2. rules governing the crossing by persons of the external borders of
the Member States and the exercise of controls thereon;
3. immigration policy and policy regarding nationals of third countries;
(a) conditions of entry and movement by nationals of third countries
on the territory of Member States;
(b) conditions of residence by nationals of third countries on the
territory of Member States, including family reunion and access to
employment;
(c) combatting unauthorized immigration, residence and work by
nationals of third countries on the territory of Member States;
4. combating drug addiction in so far as this is not covered by 7 to 9;
5. combating fraud on an international scale in so far as this is not
covered by 7 to 9;
6. judicial co-operation in civil matters;
7. judicial co-operation in criminal matters;
8. customs co-operation;
9. police co-operation for the purposes of preventing and combating
terrorism, unlawful drug trafficking and other serious forms of
international crime, including if necessary certain aspects of customs
co-operation, in connection with the organization of a Union-wide
system for exchanging information within a European Police Office
(Europol).

ARTICLE K.2
1. The matters referred to in Article K.1 shall be dealt with in
compliance with the European Convention for the Protection of Human
Rights and Fundamental Freedoms of 4 November 1950 and the
Convention relating to the Status of Refugees of 28 July 1951 and
having regard to the protection afforded by Member States to persons
persecuted on political grounds.
2. This Title shall not affect the exercise of the responsibilities
incumbent upon Member States with regard to the maintenance of law
and order and the safeguarding of internal security.

ARTICLE K.3
1. In the areas referred to in Article K.1, Member States shall inform
and consult one another within the Council with a view to co-ordinating
their action. To that end, they shall establish collaboration between the
relevant departments of their administrations.
2. The Council may:
- on the initiative of any Member State or of the Commission, in the
areas referred to in Article K.1(1) to (6);
- on the initiative of any Member State, in the areas referred to Article
K1(7) to (9):
(a) adopt joint positions and promote, using the appropriate form and
procedures, any co-operation contributing to the pursuit of the
objectives of the Union;
(b) adopt joint action in so far as the objectives of the Union can be
attained better by joint action than by the Member States acting
individually on account of the scale or effects of the action envisaged;
it may decide that measures implementing joint action are to be
adopted by a qualified majority;
(c) without prejudice to Article 220 of the Treaty establishing the
European Community, draw up conventions which it shall recommend
to the Member States for adoption in accordance with their respective
constitutional requirements.
Unless otherwise provided by such conventions, measures
implementing them shall be adopted within the Council by a majority
of two-thirds of the High Contracting Parties.
Such conventions may stipulate that the Court of Justice shall have
jurisdiction to interpret their provisions and to rule on any disputes
regarding their application, in accordance with such arrangements as
they may lay down.

ARTICLE K.4
1. A Co-ordinating Committee shall be set up consisting of senior
officials. In additions to its co-ordinating role, it shall be the task of the
Committee to;
- give opinions for the attention of the Council, either at the Councils
request or on its own initiative;
- contribute, without prejudice to Article 151 of the Treaty establishing
the European Community, to the preparation of the Council's
discussions in the areas referred to in Article K.1 and, in accordance
with the conditions laid down in Article 100d of the Treaty establishing
the European Community, in the areas referred to in Article 100c of that
Treaty.
2. The Commission shall be fully associated with the work in the areas
referred to in this Title.
3. The Council shall act unanimously, except on matters of procedure
and in cases where Article K.3 expressly provides for other voting
rules.
Where the Council is required to act by a qualified majority, the votes
of its members shall be weighted as laid down in Article 148(2) of the
Treaty establishing the European Community, and for their adoption,
acts of the Council shall require at least fifty-four votes in favour, cast
by at least eight members.

ARTICLE K.5
Within international organizations and at international conferences in
which they take part, Member States shall defend the common
positions adopted under the provisions of this Title.

ARTICLE K.6
The Presidency and the Commission shall regularly inform the
European Parliament of discussions in the areas covered by this Title.
The Presidency shall consult the European Parliament on the principal
aspects of activities in the areas referred to in this Title and shall
ensure that the views of the European Parliament are duly taken into
consideration.
The European Parliament may ask questions of the Council or make
recommendations to it. Each year, it shall hold a debate on the
progress made in implementation of the areas referred to in this Title.

ARTICLE K.7
The provisions of this Title shall not prevent the establishment or
development of closer co-operation between two or more Member
States in so far as such co-operation does not conflict with, or impede,
that provided for in this Title.

ARTICLE K.8
1. The provisions referred to in Article 137,138,139 top 142, 146, 147,
150 to 153, 157 to 163 and 217 of the Treaty establishing the
European Community shall apply to the provisions relating to the
areas referred to in this Title.
2. Administrative expenditure which the provisions relating to the
areas referred to in this Title entail for the institutions shall be charged
to the budget of European Communities.
The Council may also:
- either decide unanimously that operational expenditure to which the
implementation of those provisions gives rise is to be charged to the
budget of the European Communities; in that event, the budgetary
procedure laid down in the treaty establishing the European
Community shall be applicable;
- or determine that such expenditure shall be charged to the Member
States, where appropriate in accordance with a scale to be decided.

ARTICLE K.9
The Council, acting unanimously on the initiative of the Commission or
a Member State, may decide to apply Article 100c of the Treaty
establishing the European Community to action in areas referred to in
Article K.1(1) to (6), and at the same time determine the relevant voting
conditions relating to it. It shall recommend the Member States to
adopt that decision in accordance with their respective constitutional
requirements.

TITLE7
FINAL PROVISIONS

ARTICLE L
The provisions of the Treaty establishing the European Community,
the Treaty establishing the European Coal and Steel Community and
the Treaty establishing the European Atomic Energy Community
concerning the powers of the Court of Justice of the European
Communities and the exercise of those powers shall apply only to the
following provisions of this Treaty:
(a) provisions amending the Treaty establishing the European
Economic Community, the Treaty establishing the European Coal and
Steel Community and the Treaty establishing the European Atomic
Energy Community;
(b) the third subparagraph of Article K.3(2)(c);
(c) articles L to S.

ARTICLE M
Subject to the provisions amending the Treaty establishing the
European Economic Community with a view to establishing the
European Community, the Treaty establishing the European Coal and
Steel Community and the Treaty establishing the European Atomic
Energy Community, and to these final provisions, nothing in this
Treaty shall effect the Treaties establishing the European
Communities or the subsequent Treaties and Acts modifying or
supplementing them.

ARTICLE N
1. The government of any Member State or the Commission may
submit to the Council proposals for the amendment of the Treaties on
which the Union is founded.
If the Council, after consulting the European Parliament and, where
appropriate, the Commission, delivers an opinion in favour of calling a
conference of representatives of the governments of the Member
States, the conference shall be convened by the President of the
Council for the purpose of determining by common accord the
amendments to be made to those Treaties. The European Central Bank
shall also be consulted in the case of institutional changes in the
monetary area.
The amendments shall enter into force after being ratified by all the
Member States in accordance with their respective constitutional
requirements.
2. A conference of representatives of the governments of the Member
States shall be convened in 1996 to examine those provisions of this
Treaty for which revision is provided, in accordance with the
objectives set out in Articles A and B.

ARTICLE O
Any European State may apply to become a Member of the Union. It
shall address its application to the Council, which shall act
unanimously after consulting the Commission and after receiving the
assent of the European Parliament, which shall act by an absolute
majority of its component members.
The conditions of admission and the adjustments to the Treaties on
which the Union is founded which such admission entails shall be the
subject of an agreement between the Member States and the applicant
State. This agreement shall be submitted for ratification by all the
contracting States in accordance with their respective constitutional
requirements.

ARTICLE P
1. Articles 2 to 7 and 10 to 19 of the Treaty establishing a single
Council and a single Commission of the European Communities,
signed in Brussels on 8 April 1965, are hereby repealed.
2. Article 2, Article 3(2) and Title III of the Single European Act signed in
Luxembourg on 17 February 1986 and in the Hague on February 1986
are hereby repealed.

ARTICLE Q
This Treaty is concluded for an unlimited period.

ARTICLE R
1. This Treaty shall be ratified by the High Contracting Parties in
accordance with their respective constitutional requirements. The
instruments of ratification shall be deposited with the government of
the Italian Republic.
2. This Treaty shall enter into force on 1 January 1993, provided that
all the instruments of ratification have been deposited, or, failing that,
on the first day of the month following the deposit of the instrument of
ratification by the last signatory State to take this step.

ARTICLE S
This Treaty, drawn up in a single original in the Danish, Dutch,
English, French, German, Greek, Irish, Italian, Portuguese and Spanish
languages, the texts in each of these languages being equally
authentic, shall be deposited in the archives of the government of the
Italian Republic, which will transmit a certified copy to each of the
governments of the other signatory States.

IN WITNESS WHEREOF, the undersigned Plenipotentiaries have
signed this Treaty.
Done at Maastricht on the seventh day of February one thousand nine
hundred and ninety two
[ here follow the signatures ]

PROTOCOL
ON THE ACQUISITION OF PROPERTY IN DENMARK
THE HIGH CONTRACTING PARTIES,
DESIRING to settle certain particular problems relating to Denmark,
HAVING AGREED UPON the following provision, which shall be
annexed to the Treaty establishing the European Community:
Notwithstanding the provisions of this Treaty, Denmark may maintain
the existing legislation on the acquisition of second homes.

PROTOCOL
CONCERNING ARTICLE 119 OF THE TREATY ESTABLISHING THE
EUROPEAN COMMUNITY
THE HIGH CONTRACTING PARTIES,
HAVE AGREED UPON the following provision, which shall be annexed
to the treaty establishing the European Community:
For the purposes of Article 119 of this Treaty, benefits under
occupational social security schemes shall not be considered as
remuneration if an in so far as they are attributable to periods of
employment prior to 17 May 1990, except in the case of workers or
those claiming under them who have before that date initiated legal
proceedings or introduced an equivalent claim under the applicable
national law.

PROTOCOL
ON THE STATUTE OF THE EUROPEAN SYSTEM OF CENTRAL BANKS
AND OF THE EUROPEAN CENTRAL BANK
THE HIGH CONTRACTING PARTIES,
DESIRING to lay down the Statute of the European System of Central
Banks and of the European Central Bank provided for in Article 4a of
the Treaty establishing the European Community.
HAVE AGREED upon the following provisions, which shall be annexed
to the treaty establishing the European Community:

CHAPTER 1
CONSTITUTION OF THE ESCB
ARTICLE 1
The European System of Central Banks.
1.1. The European System of Central Banks (ESCB) and the European
Central Bank (ECB) shall be established in accordance with Article 4a
of this Treaty; they shall perform their tasks and carry on their
activities in accordance with the provisions of this Treaty of this
Statute.
1.2. In accordance with Article 106(1) on this Treaty, the ESCB shall be
composed of the ECB and of the central banks of the Member States
("national central banks"). The Insitut monetaire luxembourgeois will
be the central bank of Luxembourg.

CHAPTER II
OBJECTIVES AND TASKS OF ESCB
ARTICLE 2
Objectives
In accordance with Article 105(1) of this Treaty, the primary objective of
the ESCB shall be to maintain price stability. Without prejudice to the
objective of price stability, it shall support the general economic
policies in the Community with a view to contributing to the
achievement of the objectives of the Community as laid down in Article
2 of this Treaty. The ESCB shall act in accordance with the principle of
an open market economy with free competition, favouring an efficient
allocation of resources, and in compliance with the principles set out
in Article 3a of this Treaty.
ARTICLE 3
Tasks
3.1. In accordance with Article 105(2) of this Treaty, the basic tasks to
be carried out through the ESCB shall be:
- to define and implement the monetary policy of the Community;
- to conduct foreign exchange operations consistent with the
provisions of Article 109 of this Treaty;
- to hold and manage the official foreign reserves of the Member
States;
- to promote the smooth operation on payment systems.
3.2. In accordance with Article 105(3) of this Treaty, the third indent of
Article 3.1 shall be without prejudice to the holding and management
by the governments of Member States of foreign exchange working
balances.
3.3. In accordance with Article 105(5) of this Treaty, the ESCB shall
contribute to the smooth conduct of policies pursued by the competent
authorities relating to the prudential supervision of credit institutions
and the stability of the financial system.
ARTICLE 4
Advisory functions
In accordance with Article 105(4) of this Treaty:
(a) the ECB shall be consulted:
- on any proposed Community act in its fields of competence;
- by national authorities regarding any draft legislative provision in its
fields of competence, but within the limits and under the conditions set
out by the Council in accordance with the procedure laid down in
Article 42;
(b) the ECB may submit opinions to the appropriate Community
institutions or bodies or to national authorities on matters in its fields
of competence.
ARTICLE 5
Collection of statistical information
5.1. In order to undertake the tasks of the ESCB, the ECB, assisted by
the national central banks, shall collect the necessary statistical
information either from the competent national authorities or directly
from economic agents. For these purposes it shall co-operate with the
Community institutions or bodies and with the competent authorities of
the Member States or third countries and with international
organizations.
5.2. The national central banks shall carry out, to the extent possible,
the tasks described in Article 5.1.
5.3. The ECB shall contribute to the harmonization, where necessary,
of the rules and practices governing the collection, compilation and
distribution of statistics in the areas within its fields of competence.
5.4. The Council, in accordance with the procedure laid down in Article
42, shall define the natural and legal persons subject to reporting
requirements, the confidentiality regime and the appropriate
provisions for enforcement.
ARTICLE 6
International co-operation
6.1. In the field of international co-operation involving the tasks
entrusted to the ESCB, the ECB shall decide how the ESCB shall be
represented.
6.2. The ECB and, subject to its approval, the national central banks
may participate in international monetary institutions.
6.3. Articles 6.1 and 6.2 shall be without prejudice to Article 109(4) of
this Treaty.

CHAPTER III
ORGANIZATION OF THE ESCB
ARTICLE 7
Independence
In accordance with Article 107 of this Treaty, when exercising the
powers and carrying out the tasks and duties conferred upon them by
this Treaty and this Statute, neither the ECB, nor a national central
bank, nor any member of their decision-making bodies shall seek or
take instructions from Community institutions or bodies, from any
government of a Member State or from any other body. The
Community institutions and bodies and the governments of the
Member States undertake to respect this principle and not to seek to
influence the members of the decision-making bodies of the ECB or of
the national central banks in the performance of their tasks.
ARTICLE 8
General principle
The ESCB shall be governed by the decision-making bodies of the
ECB.
ARTICLE 9
The European Central Bank
9.1. The ECB which, in accordance with Article 106(2) of this Treaty,
shall have legal personality, shall enjoy in each of the Member States
the most extensive legal capacity accorded to legal persons under its
law; it may, in particular, acquire or dispose of movable and
immovable property and may be a party to legal proceedings.
9.2. The ECB shall ensure that the tasks conferred upon the ESCB
under Article 105(2), (3) and (5) of this Treaty are implemented either
by its own activities pursuant to this Statute or through the national
central bank pursuant to Articles 12.1 and 14.
9.3 In accordance with Article 106(3) of this Treaty, the decision-
making bodies of the ECB shall be the Governing Council and the
Executive Board.
ARTICLE 10
The Governing Council
10.1. In accordance with Article 109a(1) of this Treaty, the Governing
Council shall comprise the members of the Executive Board of the
ECB and the Governors of the national central banks.
10.2. Subject to Article 10.3, only members of the Governing Council
present in person shall have the right to vote. By way of derogation
from this rule, the Rules of Procedure referred to in Article 12.3 may
lay down that members of the Governing Council may cast their vote
by means of teleconferencing. These rules shall also provide that a
member of the Governing Council who is prevented from voting for a
prolonged period may appoint an alternate as a member of the
Governing Council.
Subject to Articles 10.3 and 11.3, each member of the Governing
Council shall have one vote. Save as otherwise provided for in this
Statue, the Governing Council shall act by a simple majority. In the
event of a tie the President shall have the casting vote.
In order for the Governing Council to vote, there shall be quorum of
two-thirds of the members. If the quorum is not met, the President may
convene and extraordinary meeting at which decisions may be taken
without regard to the quorum.
10.3. For any decisions to be taken under Articles 28, 29, 30, 32, 33
and 51, the votes in the Governing Council shall be weighted
according to the national central banks' shares in the subscribed
capital of the ECB. The weight of the votes of the members of the
Executive Board shall be zero. A decision requiring a qualified
majority shall be adopted if the votes cast in favour represent at least
two thirds of the subscribed capital of the ECB and represent at least
half of the shareholders. If a Governor in unable to be present, he may
nominate an alternate to cast his weighted vote.
10.4. The proceedings of the meetings shall be confidential. The
Governing Council may decide to make the outcome of its
deliberations public.
10.5. The Governing Council shall meet at least ten times a year.
ARTICLE 11
The Executive Board
11.1. In accordance with Article 109a(2)(a) of this Treaty, the Executive
Board shall comprise the President, the Vice-President and four other
members.
The members shall perform their duties on a full-time basis. No
member shall engage in any occupation, whether gainful or not,
unless exemption is exceptionally granted by the Governing Council.
11.2. In accordance with Article 109a(2)(b) of this Treaty, the President,
the Vice-President and the other Members of the Executive Board shall
be appointed from among persons of recognized standing and
professional experience in monetary or banking matters by common
accord of the governments of the Member States at the level of the
Heads of State or of government, on a recommendation from the
Council after it has consulted the European Parliament and the
Governing Council.
Their term of office shall be 8 years and shall not be renewable.
Only nationals of Member States may be members of the Executive
Board.
11.3. The terms and conditions of employment of the members of the
Executive Board, in particular their salaries, pensions and other social
security benefits shall be the subject of contracts with the ECB and
shall be fixed by the Governing Council on a proposal from a
Committee comprising three members appointed by the Governing
Council and three members appointed by the Council. The members of
the Executive Board shall not have the right to vote on matters
referred to in this paragraph.
11.4. If a member of the Executive Board no longer fulfils the
conditions required for the performance of his duties or if he has been
guilty of serious misconduct, the Court of Justice may, on application
by the Governing Council or the Executive Board, compulsorily retire
him.
11.5. Each member of the Executive Board present in person shall
have the right to vote and shall have, for that purpose, one vote. Save
as otherwise provided, the Executive Board shall act by a simple
majority of the votes cast. In the event of a tie, the President shall
have the casting vote. The voting arrangements shall be specified in
the Rules of Procedure referred to in Article 12.3.
11.6. The Executive Board shall be responsible for the current
business of the ECB.
11.7. Any vacancy on the Executive Board shall be filled by the
appointment of a new member in accordance with Article 11.2.
ARTICLE 12
Responsibilities of the decision-making bodies
12.1. The Governing Council shall adopt the guidelines and take the
decisions necessary to ensure the performance of the tasks entrusted
to the ESCB under this Treaty and this Statute. The Governing Council
shall formulate the monetary policy of the Community including, as
appropriate, decisions relating to intermediate monetary objectives,
key interest rates and the supply of reserves in the ESCB and shall
establish the necessary guidelines for their implementation.
The Executive Board shall implement monetary policy in accordance
with the guidelines and decisions laid down by the Governing Council.
In doing so the Executive Board shall give the necessary instructions
to national central banks. In addition the Executive Board may have
certain powers delegated to it where the Governing Council so
decides.
To the extent deemed possible and appropriate and without prejudice
to the provisions of this Article, the ECB shall have recourse to the
national central banks to carry out operations which form part of the
tasks of the ESCB.
12.2. The Executive Board shall have the responsibility for the
preparation of meetings of the Governing Council.
12.3. The Governing Council shall adopt Rules of Procedure which
determine the internal organization of the ECB and its decision-making
bodies.
12.4. The Governing Council shall exercise the advisory functions
referred to Article 4.
12.5. The Governing Council shall take the decisions referred to Article
6.
ARTICLE 13
The President
13.1. The President or, in his absence, the Vice-President shall chair
the governing Council and the Executive Board of the ECB.
13.2. Without prejudice to Article 39, the President or his nominee
shall represent the ECB externally.
ARTICLE 14
National Central Banks
14.1. In accordance with Article 108 of this Treaty, each Member State
shall ensure, at the latest at the date of the establishment of the ESCB,
that its national legislation, including the statues of its national central
bank, is compatible with this Treaty and this Statute.
14.2. The statutes of the national central banks shall, in particular,
provide that the term of office of a Governor of a national central bank
shall be no less than 5 years.
A Governor may be relieved from office only if he no longer fulfils the
conditions required for the performance of his duties or if he has been
guilty of serious misconduct. A decision to this effect may be referred
to the Court of Justice by the Governor concerned or the Governing
Council on grounds of infringement of this Treaty or of any rule of law
relating to its application. Such proceedings shall be instituted within
two months of the publication of the decision or of its notification to the
plaintiff or, in the absence thereof, of the day on which it came to
knowledge of the latter, as the case may be.
14.3. The national central banks are an integral part of the ESCB and
shall act in accordance with the guidelines and instructions of ECB.
The Governing Council shall take the necessary steps to ensure
compliance with the guidelines and instructions of the ECB, and shall
require that any necessary information be given to it.
14.4 National central banks may perform functions other than those
specified in this Statute unless the Governing Council finds, by a
majority of two thirds of the votes cast, that these interfere with the
objectives and tasks of the ESCB. Such functions shall be performed
on the responsibility and liability of national central banks and shall
not be regarded as being part of the functions of the ESCB.
ARTICLE 15
Reporting commitments.
15.1. The ECB shall draw up and publish reports on the activities of
the ESCB at least quarterly.
15.2. A consolidated financial statement of the ESCB shall be
published each week.
15.3. In accordance with Article 109b(3) of this Treaty, the ECB shall
address an annual report on the activities of the ESCB and on the
monetary policy of both the previous and the current year to the
European Parliament, the Council and the Commission, and also the
European Council.
15.4. The reports and statements referred to in this Article shall be
made available to interested parties free of charge.
ARTICLE 16
Bank notes.
In accordance with Article 105a(1) of this Treaty, the Governing Council
shall have the exclusive right to authorize the issue of bank notes
within the Community. The ECB and the national central banks may
issue such notes. The bank notes issued by the ECB and the national
central banks shall be the only such notes to have the status of legal
tender within the Community.
The ECB shall respect as far as possible existing practices regarding
the issue and design of bank notes.

CHAPTER IV
MONETARY FUNCTIONS AND OPERATIONS OF THE ESCB
ARTICLE 17
Accounts with the ECB and the national central banks.
In order to conduct their operations, the ECB and the national central
banks may open accounts for credit institutions, public entities and
other market participants and accept assets, including book-entry
securities, as collateral.
ARTICLE 18
Open market and credit operations.
18.1. In order to achieve the objectives of the ESCB and to carry out its
tasks, the ECB and the national central banks may:
- operate in the financial markets by buying and selling outright (spot
or forward) or under repurchase agreement and by lending or
borrowing claims and marketable instruments, whether in Community
or in non-Community currencies, as well as precious metals;
- conduct credit operations with credit institutions and other market
participants, with lending being based on adequate collateral.
18.2. The ECB shall establish general principles for open market and
credit operations carried out by itself or the national central banks,
including for the announcement of conditions under which they stand
ready to enter into such transactions.
ARTICLE 19
Minimum reserves
19.1. Subject to Article 2, the ECB may require credit institutions
established in Member States to hold minimum reserves on accounts
with the ECB and national central banks in pursuance of monetary
policy objectives. Regulations concerning the calculation and
determination of the required minimum reserves may be established
by the Governing Council. In cases of non-compliance the ECB shall
be entitled to levy penalty interest and to impose other sanctions with
comparable effect.
19.2. For the application of this Article, the Council shall, in accordance
with the procedure laid down in Article 42, define the basis for
minimum reserves and the maximum reserves and the maximum
permissible ratios between those reserves and their basis, as well as
the appropriate sanctions in cases of non-compliance.
ARTICLE 20
Other instruments of monetary control
The Governing Council may, by a majority of two thirds of the votes
cast, decide upon the use of such other operational methods of
monetary control as it sees fit, respecting Article 2.
The Council shall, in accordance with the procedure laid down in
Article 42, define the scope of such methods if they impose obligations
on third parties.
ARTICLE 21
Operations with public entities.
21.1. In accordance with Article 104 of the Treaty, overdrafts or any
other type of credit facility with the ECB or with the national central
banks in favour of Community institutions or bodies, central
governments, regional, local or other public authorities, other bodies
governed by public law, or public undertakings of Member States shall
be prohibited, as shall the purchase directly from them by the ECB or
national central banks of debt instruments.
21.2. The ECB and national central banks may act as fiscal agents for
the entities referred to in 21.1.
21.3. The provisions of this Article shall not apply to publicly-owned
credit institutions which, in the context of the supply of reserves by
central banks, shall be given the same treatment by national central
banks and the ECB as private credit institutions.
ARTICLE 22
Clearing and payment systems
The ECB and national central banks may provide facilities, and the
ECB may make regulations, to ensure efficient and sound clearing and
payment systems within the Community and with other countries.
ARTICLE 23
External operations
The ECB and national central banks may:
- establish relations with central banks and financial institutions in
other countries and, where appropriate, with international
organizations;
- acquire and sell spot and forward all types of foreign exchange
assets and precious metals; the term "foreign exchange asset" shall
include securities and all other assets in the currency of any country
or units of account in whatever form held;
- hold and manage the assets referred to in this Article;
- conduct all types of banking transactions in relations with third
countries and international organizations, including borrowing and
lending operations.
ARTICLE 24
Other operations
In addition to operations arising from their tasks, the ECB and national
central banks may enter into operations for their administrative
purposes or for their staff.

CHAPTER V
PRUDENTIAL SUPERVISION
ARTICLE 25
Prudential supervision
25.1. The ECB may offer advice to and be consulted by the Council,
the Commission and the competent authorities of the Member States
on the scope and implementation of Community legislation relating to
the prudential supervision of credit institutions and to the stability of
the financial system.
25.2. In accordance with any decision of the Council under Article
105(6) of this Treaty, the ECB may perform specific tasks concerning
policies relating to the prudential supervision of credit institutions and
other financial institutions with the exception of insurance
undertakings.

CHAPTER VI
FINANCIAL PROVISIONS OF THE ESCB
ARTICLE 26
Financial accounts
26.1. The financial year of the ECB and national central banks shall
begin on the first day of January and end on the last day of December.
26.2. The annual accounts of the ECB shall be drawn up by the
Executive Board, in accordance with the principles established by the
Governing Council. The accounts shall be approved by the Governing
Council and shall thereafter be published.
26.3. For analytical and operational purposes, the Executive Board
shall draw up a consolidated balance sheet of the ESCB, comprising
those assets and liabilities of the national central banks that fall within
the ESCB.
26.4. For the application of this Article, the Governing Council shall
establish the necessary rules for standardizing the accounting and
reporting of operations undertaken by the national central banks.
ARTICLE 27
Auditing
27.1. The account of the ECB and national central banks shall be
audited by independent external auditors recommended by the
Governing Council and approved by the Council. The auditors shall
have full power to examine all books and accounts of the ECB and
national central banks and obtain full information about their
transactions.
27.2. The provisions of Article 188c of this Treaty shall only apply to
an examination of the operational efficiency of the management of the
ECB.
ARTICLE 28
Capital of the ECB
28.1. The capital of the ECB, which shall become operational upon its
establishment, shall be ECU 5 000 million. The capital may be
increased by such amounts as may be decided by the Governing
Council acting by the qualified majority provided for in Article 10.3,
within the limits and under the conditions set by the Council under the
procedure laid down in Article 42.
28.2. The national central banks shall be the sole subscribers to and
holders of the capital of the ECB. The subscription of capital shall be
according to the key established in accordance with Article 29.
28.3. The Governing Council, acting by the qualified majority provided
for in Article 10.3, shall determine the extent to which and the form in
which the capital shall be paid up.
28.4. Subject to Article 28.5, the shares of the national central banks in
the subscribed capital of the ECB may not be transferred, pledged or
attached.
28.5. If the key referred to in Article 29 is adjusted, the national central
banks shall transfer among themselves capital shares to the extent
necessary to ensure that the distribution of capital shares
corresponds to the adjusted key. The Governing Council shall
determine the terms and conditions of such transfers.
ARTICLE 29
Key for capital subscription
29.1. When in accordance with the procedure referred to in Article
109l(1) of this Treaty the ESCB and the ECB have been established,
the key for subscription of the ECB's capital shall be established.
Each national central bank shall be assigned a weighting in this key
which shall be equal to the sum of:
- 50% of the share of its respective Member State in the population of
the Community in the penultimate year preceding the establishment of
the ESCB;
- 50% of the share of its respective Member State in the gross
domestic product at market prices of the Community as recorded in the
last five years preceding the penultimate year before the
establishment of the ESCB;
The percentages shall be rounded up to the nearest multiple 0.05
percentage points.
29.2 The statistical data to be used for the application of this Article
shall be provided by the Commission in accordance with the rules
adopted by the Council under the procedure provided for in Article 42.
29.3. The weighting assigned to the national central banks shall be
adjusted every five years after the establishment of the ESCB by
analogy with the provisions laid down in Article 29.1. The adjusted key
shall apply with effect from the first day of the following year.
29.4. The Governing Council shall take all other measures necessary
for the application of this Article.
ARTICLE 30
Transfer of foreign reserve assets to the ECB
30.1. Without prejudice to Article 28, the ECB shall be provided by the
national central banks with foreign reserve assets, other than Member
States' currencies, ECUs, IMF reserve positions and SDRs, up to an
amount equivalent to ECU 50 000 million. The Governing Council shall
decide upon the proportion to be called up by the ECB following its
establishment and the amounts called up at later dates. The ECB shall
have the full right to hold and manage the foreign reserves that are
transferred to it and to use them for the purposes set out in this
Statute.
30.2. The contributions of each national central bank shall be fixed in
proportion to its share in the subscribed capital of the ECB.
30.3. Each national central bank shall be credited by the ECB with a
claim equivalent to its contribution. The Governing Council shall
determine the denomination and remuneration of such claims.
30.4. Further calls of foreign reserve assets beyond the limit set in
Article 30.1. may be effected by the ECB, in accordance with Article
30.2, within the limits and under the conditions set by the Council in
accordance with the procedure laid down in Article 42.
30.5. The ECB may hold and manage IMF reserve positions and SDRs
and provide for the pooling of such assets.
30.6. The Governing Council shall take all other measures necessary
for the application of this Article.
ARTICLE 31
Foreign reserve assets held by national central banks
31.1. The national central banks shall be allowed to perform
transactions in fulfilment of their obligations towards international
organizations in accordance with Article 23.
31.2. All other operations in foreign reserve assets remaining with the
national central banks after the transfers referred to in Article 30, and
Member States' transactions with their foreign exchange working
balances shall, above a certain limit to be established within the
framework of Article 31.3, be subject to approval by the ECB in order to
ensure consistency with the exchange rate and monetary policies of
the Community.
31.3. The Governing Council shall issue guidelines with a view to
facilitating such operations.
ARTICLE 32
Allocation of monetary income of national central banks.
32.1. The income accruing to the national central banks in the
performance of the ESCB's monetary policy function (hereinafter
referred to as "monetary income") shall be allocated at the end of each
financial year in accordance with the provisions of this Article.
32.2. Subject to Article 32.3, the amount of each national central bank's
monetary income shall be equal to its annual income derived from its
assets held against notes in circulation and deposit liabilities to credit
institutions. These assets shall be earmarked by national central
banks in accordance with guidelines to be established by the
Governing Council.
32.3. If, after the start of the third stage, the balance sheet structures
of the national central banks do not, in the judgment of the Governing
Council, permit the application of Article 32.2, the Governing Council,
acting by a qualified majority, may decide that, by way of derogation
form Article 32.2, monetary income shall be measured according to an
alternative method for a period of not more than five years.
32.4. The amount of each national central bank's monetary income
shall be reduced by an amount equivalent to any interest paid by that
central bank on its deposit liabilities to credit institutions in
accordance with Article 19.
The Governing Council may decide that national central banks shall be
indemnified against costs incurred in connection with the issue of
bank notes or in exceptional circumstances for specific losses arising
from monetary policy operations undertaken for the ESCB.
Indemnification shall be in a form deemed appropriate in the judgment
of the Governing Council; these amounts may be offset against the
national central banks' monetary income.
32.5. The sum of the national central banks' monetary income shall be
allocated to the national central banks in proportion to their paid-up
shares in the capital of the ECB, subject to any decision taken by the
Governing Council pursuant to Article 33.2.
32.6. The clearing and settlement of the balances arising from the
allocation of monetary income shall be carried out by the ECB in
accordance with guidelines established by the Governing Council.
32.7. The Governing Council shall take all other measures necessary
for the application of this Article.
ARTICLE 33
Allocation of net profits and losses of the ECB
33.1. The net profit of the ECB shall be transferred in the following
order:
(a) an amount to be determined by the Governing Council, which may
not exceed 20% of the net profit, shall be transferred to the general
reserve fund subject to a limit equal to a 100% of the capital;
(b) the remaining net profit shall be distributed to the shareholders of
the ECB in proportion to their paid-up shares.
33.2. In the event of a loss incurred by the ECB, the shortfall may be
offset against the general reserve fund of the ECB and, if necessary,
following a decision by the Governing Council, against the monetary
income of the relevant financial year in proportion and up to the
amounts allocated to the national central banks in accordance with
Article 32.5.

CHAPTER VII
GENERAL PROVISIONS
ARTICLE 34
Legal acts
34.1. In accordance with Article 108a of this Treaty, the ECB shall:
- make regulations to the extent necessary to implement the tasks
defined in Article 3.1., first indent, Articles 19.1, 22 or 25.2 and in
cases which shall be laid down in the acts of the Council referred to in
Article 42;
- take decisions necessary for carrying out the tasks entrusted to the
ESCB under this Treaty and this Statute;
- make recommendations and deliver opinions.
34.2. A regulation shall have general application. It shall be binding in
its entirety and directly applicable in all Member States.
Recommendations and opinions shall have no binding force.
A decision shall be binding in its entirety upon those to whom it is
addressed.
Articles 190 to 192 of this Treaty shall apply to regulations and
decisions adopted by the ECB.
The ECB may decide to publish its decisions, recommendations and
opinions.
34.3. Within the limits and under the conditions adopted by the Council
under the procedure laid down in Article 42, the ECB shall be entitled
to impose fines or periodic penalty payments on undertakings for
failure to comply with obligations under its regulations and decisions.
ARTICLE 35
Judicial control and related matters
35.1. The acts or omissions of the ECB shall be open to review or
interpretation by the Court of Justice in the cases and under the
conditions laid down in this Treaty. The ECB may institute proceedings
in the cases and under the conditions laid down in this Treaty.
35.2. Disputes between the ECB, on the one hand, and its creditors,
debtors or any other person, on the other, shall be decided by the
competent national courts, save where jurisdiction has been conferred
upon the Court of Justice.
35.3. The ECB shall be subject to the liability regime provided for in
Article 215 of this Treaty. The national central banks shall be liable
according to their respective national laws.
35.4. The Court of Justice shall have jurisdiction to give judgment
pursuant to any arbitration clause contained in a contract concluded by
or on behalf of the ECB, whether that contract be governed by public or
private law.
35.5. A decision of the ECB to bring an action before the Court of
Justice shall be taken by the Governing Council.
35.6. The Court of Justice shall have jurisdiction in disputes
concerning the fulfillment by a national central bank of obligations
under this Statute. If the ECB considers that a national central bank
has failed to fulfill an obligation under this Statute, it shall deliver a
reasoned opinion on the matter after giving the national central bank
concerned the opportunity to submit its observations. If the national
central bank concerned does not comply with the opinion within the
period laid down by the ECB, the latter may bring the matter before the
Court of Justice.
ARTICLE 36
Staff
36.1. The Governing Council, on a proposal from the Executive Board,
shall lay down the conditions of employment of the staff of the ECB.
36.2. The Court of Justice shall have jurisdiction in any dispute
between the ECB and its servants within the limits and under the
conditions laid down in the conditions of employment.
ARTICLE 37
Seat
Before the end of 1992, the decision as to where the seat of the ECB
will be established shall be taken by common accord of the
governments of the Member States at the level of Heads of State or of
Government.
ARTICLE 38
Professional secrecy
38.1. Members of the governing bodies and the staff of the ECB and
the national central banks shall be required, even after their duties
have ceased, not to disclose information of the kind covered by the
obligation of professional secrecy.
38.2. Persons having access to data covered by Community
legislation imposing an obligation of secrecy shall be subject to such
legislation.
ARTICLE 39
Signatories
The ECB shall be legally committed to third parties by the President or
by two members of the Executive Board or by the signatures of two
members of the staff of the ECB who have been duly authorized by the
President to sign on behalf of the ECB.
ARTICLE 40
Privileges and immunities.
The ECB shall enjoy in the territories of the Member States such
privileges and immunities as are necessary for the performance of its
tasks, under the conditions laid down in the Protocol on the Privileges
and Immunities of the European Communities annexed to the Treaty
establishing a Single Council and a Single Commission of the
European Communities.

CHAPTER VIII
AMENDMENT OF THE STATUTE AND COMPLEMENTARY LEGISLATION
ARTICLE 41
Simplified amendment procedure
41.1. In accordance with Article 106(5) of this Treaty, Articles 5.1, 5.2,
5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36
of this Statute may be amended by the Council, acting either by a
qualified majority on a recommendation from the ECB and after
consulting the Commission, or unanimously on a proposal from the
Commission and after consulting the ECB. In either case the assent of
the European Parliament shall be required.
41.2. A recommendation made by the ECB under this Article shall
require a unanimous decision by the Governing Council.
ARTICLE 42
Complementary legislation
In accordance with Article 106(6) of this Treaty, immediately after the
decision on the date for the beginning of the third stage, the Council,
acting by a qualified majority either on a proposal from the
Commission and after consulting the European Parliament and the
ECB or on a recommendation from the ECB and after consulting the
European Parliament and the Commission, shall adopt the provisions
referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4, and 34.3. of this
Statute.

CHAPTER IX
TRANSITIONAL AND OTHER PROVISIONS
FOR THE ESCB
ARTICLE 43
General Provisions
43.1. A derogation as referred to in Article 109k(1) of this Treaty shall
entail that the following Articles of this Statue shall not confer any
rights or impose any obligations on the Member State concerned: 3, 6,
9.2, 12.1, 14.3, 16, 18, 19, 20, 22, 23, 26.2, 27, 30, 31, 32, 33, 34, 50
and 52.
43.2. The central banks of Member States with derogation as specified
in Article 109k(1) of this Treaty shall retain their powers in the field of
monetary policy according to national law.
43.3. In accordance with Article 109k(4) of this Treaty, "Member States"
shall be read as "Member States without derogation" in the following
Articles of this Statute: 3, 11.2, 19, 34.2 and 50.
43.4 "National central banks" shall be read as central banks of
Member States without a derogation" in the following Articles of this
Statute: 9.2, 10.1, 10.3, 12.1, 16, 17, 18, 22, 23, 27, 30, 31, 32, 33.2
and 52.
43.5. "Shareholders" shall be read as "central banks of Member
States without a derogation" in Articles 10.3 and 33.1.
43.6. "Subscribed capital of the ECB" shall be read as "capital of the
ECB subscribed by the central banks of Member States without a
derogation" in Articles 10.3 and 30.2.
ARTICLE 44
Transitional tasks of the ECB
The ECB shall take over those tasks of the EMI which, because of the
derogations of one or more Member States, still have to be performed
in the third stage.
The ECB shall give advice in the preparations for the abrogation of the
derogations specified in Article 109k of this Treaty.
ARTICLE 45
The General Council of the ECB
45.1. Without prejudice to Article 106(3) of this Treaty, the General
Council shall be constituted as a third decision-making body of the
ECB.
45.2. The General Council shall compromise the President and Vice-
President of the ECB and the Governors of the national central banks.
The others members of the Executive Board may participate, without
having the right to vote, in meetings of the General Council.
45.3. The responsibilities of the General Council are listed in full in
Article 47 of this Statute.
ARTICLE 46
Rules of procedure of the General Council
46.1. The President or, in his absence, the Vice-President of the ECB
shall chair the General Council of the ECB.
46.2. The President of the Council and a member of the Commission
may participate, without having to right to vote, meetings of the
General Council.
46.3. The President shall prepare the meetings of the General Council.
46.4. By way of derogation from Article 12.3, the General Council shall
adopt its Rules of Procedure.
46.5. The Secretariat of the General Council shall be provided by the
ECB.
ARTICLE 47
Responsibilities of the General Council
47.1. The General Council shall:
- perform the tasks referred to in Article 44;
- contribute to the advisory functions referred to in Articles 4 and 25.1.
47.2. The General Council shall contribute to:
- the collection of statistical information as referred to in Article 5;
- the reporting activities of the ECB as referred to in Article 15;
- the establishment of the necessary rules for the application of Article
26 as referred to in Article 26.4;
- the taking of all other measures necessary for the application of
Article 29 as referred to Article 29.4;
- the laying down of the conditions of employment of the staff of the
ECB as referred to in Article 36.
47.3. The General Council shall contribute to the necessary
preparations for irrevocably fixing the exchange rates of the
currencies of Member States with a derogations against the
currencies, or the single currency, of the Member States without a
derogation, as referred to in Article 109(5) of this Treaty.
47.4. The General Council shall be informed by the President of the
ECB of decisions of the Governing Council.
ARTICLE 48
Transitional provisions for the capital of the ECB
In accordance with Article 29.1 each national central bank shall be
assigned a weighting in the key for subscription of the ECB's capital.
By way of derogation from Article 28.3, central banks of Member
States with a derogation shall not pay up their subscribed capital
unless the General Council, acting by as majority representing at least
two thirds of the subscribed capital of the ECB and at least half of the
shareholders, decides that a minimal percentage has to be paid up as
a contribution to the operational costs of the ECB.
ARTICLE 49
Deferred payment of capital,
reserves and provisions of the ECB
49.1. The central bank of a Member State whose derogation has been
abrogated shall pay up its subscribed share of the capital of the ECB
to the same extent as the central banks of other Member States
without a derogation, and shall transfer to the ECB foreign reserve
assets in accordance with Article 30.1. The sum to be transferred shall
be determined by multiplying the ECU value at current exchange rates
of the foreign reserve assets which have already been transferred to
the ECB in accordance with Article 30.1, by the ratio between the
number of shares subscribed by the national central bank concerned
and the number of shares already paid up by the other national central
banks.
49.2. In addition to the payment to be made in accordance with Article
49.1, the central bank concerned shall contribute to the reserves of the
ECB, to those provisions equivalent to reserves, and to the amount
still to be appropriated to the reserves and provisions corresponding
to the balance of the profit and loss account as at 31 December of the
year prior to the abrogation of the derogation. The sum to be
contributed shall be determined by multiplying the amount of the
reserves, as defined above and as stated in the approved balance
sheet of the ECB, by the ratio between the number of shares
subscribed by the central bank concerned and the number of shares
already paid up the other central banks.
ARTICLE 50
Initial appointment of the members of the Executive Board.
When the Executive Board of the ECB is being established, the
President, the Vice-President and the other members of the Executive
Board shall be appointed by common accord of the governments of the
Member States at the level of Heads of State or of Government, on a
recommendation from the Council and after consulting the European
Parliament and the Council of the EMI. The President of the Executive
Board shall be appointed for 8 years. By way of derogation from
Article 11.2, the Vice-President shall be appointed for 4 years and the
other members of the Executive Board for terms of office of between 5
and 8 years. No term of office shall be renewable. The number of
members of the Executive Board may be smaller than provided for in
Article 11.1, but in no circumstance shall it be less than four.
ARTICLE 51
Derogation from Article 32
51.1. If, after the start of the third stage, the Governing Council decides
that the application of Article 32 results in significant changes in
national central banks' relative income positions, the amount of
income to allocated pursuant to Article 32 shall be reduced by a
uniform percentage which shall not exceed 60% in the first financial
year after the start of the third stage and which shall decrease by at
least 12 percentage points in each subsequent financial year.
51.2. Article 51.1. shall be applicable for not more than five financial
years after the start of the third stage.
ARTICLE 52
Exchange of bank notes in Community currencies.
Following the irrevocable fixing of exchange rates, the Governing
Council shall take the necessary measures to ensure that bank notes
denominated in currencies with irrevocably fixed exchange rates are
exchanged by the national central banks at their respective par
values.
ARTICLE 53
Applicability of the transitional provisions
If and as long as there are Member States with a derogation Articles
43 to 48 shall be applicable.

PROTOCOL
ON THE STATUTE OF THE EUROPEAN MONETARY INSTITUTE
THE HIGH CONTRACTING PARTIES,
DESIRING to lay down the Statute of the European Monetary Institute,
HAVE AGREED upon the following provisions, which shall be annexed
to the Treaty establishing the European Community:
ARTICLE 1
Constitution and name
1.1. The European Monetary Institute (EMI) shall be established in
accordance with Article 109f of this Treaty; it shall perform its functions
and carry out its activities in accordance with the provisions of this
Treaty and of this Statute.
1.2. The members of the EMI shall be the central banks of the Member
States ("national central banks"). For the purposes of the Statute, the
Institut monetaire luxembourgeois shall be regarded as the central
bank of Luxembourg.
1.3. Pursuant to Article 109f of this Treaty, both the Committee of
Governors and the European Monetary Co-operation Fund (EMCF)
shall be dissolved. All assets and liabilities of the EMCF shall pass
automatically to the EMI.
ARTICLE 2
Objectives
The EMI shall contribute to the realization of the conditions necessary
for the transition to the third stage of Economic and Monetary Union, in
particular by:
- strengthening the co-ordination of monetary policies with a view to
ensuring price stability;
- making the preparations required for the establishment of the
European System of Central Banks (ESCB), and for the conduct of a
single monetary policy and the creation of a single currency in the
third stage;
- overseeing the development of the ECU.
ARTICLE 3
General principles
3.1. The EMI shall carry out the tasks and functions conferred upon it
by this Treaty and this Statute without prejudice to the responsibility of
the competent authorities for the conduct of the monetary policy within
the respective Member States.
3.2. The EMI shall act in accordance with the objectives and principles
stated in Article 2 of the Statute of the ESCB.
ARTICLE 4
Primary tasks
4.1. In accordance with Article 109f(2) of this Treaty, the EMI shall:
- strengthen co-operation between the national central banks;
- strengthen the co-ordination of the monetary policies of the Member
States with the aim of ensuring price stability;
- monitor the functioning of the European Monetary System (EMS);
- hold consultations concerning issues falling within the competence of
the national central banks and affecting the stability of financial
institutions and markets;
- take over the tasks of the EMCF; in particular it shall perform the
functions referred to in Articles 6.1, 6.2 and 6.3;
- facilitate the use of the ECU and oversee its development, including
the smooth functioning of the ECU clearing system.
The EMI shall also:
- hold regular consultations concerning the course of monetary
policies and the use of monetary policy instruments;
- normally be consulted by the national monetary authorities before
they take decisions on the course of monetary policy in the context of
the common framework for ex ante co-ordination.
4.2. At the latest by 31 December 1996, the EMI shall specify the
regulatory, organizational and logistical framework necessary for the
ESCB to perform its tasks in the third stage, in accordance with the
principle of an open market economy with free competition. This
framework shall be submitted by the Council of the EMI for decision to
the ECB at the date of its establishment.
In accordance with Article 109f(3) of this Treaty, the EMI shall in
particular:
- prepare the instruments and the procedures necessary for carrying
out a single monetary policy in the third stage;
- promote the harmonization, where necessary, of the rules and
practices governing the collection, compilation and distribution of
statistics in the areas within its field of competence;
- prepare the rules for operations to be undertaken by the national
central banks in the framework of the ESCB;
- promote the efficiency of cross-border payments;
- supervise the technical preparation of ECU bank notes.
ARTICLE 5
Advisory functions.
5.1. In accordance with Article 109f(4) of this Treaty, the Council of the
EMI may formulate opinions or recommendations on the overall
orientation of monetary policy and exchange rate policy as well as on
related measures introduced in each Member State. The EMI may
submit opinions or recommendations to governments and to the
Council on policies which might affect the internal or external
monetary situation in the Community and, in particular, the functioning
of the EMS.
5.2. The Council of the EMI may also make recommendations to the
monetary authorities of the Member States concerning the conduct of
their monetary policy.
5.3. In accordance with Article 109f(6) of this Treaty, the EMI shall be
consulted by the Council regarding any proposed Community act
within its field of competence.
Within the limits and under the conditions set out by the Council acting
by a qualified majority on a proposal from the Commission and after
consulting the European Parliament and the EMI shall be consulted by
the authorities of the Member States on any draft legislative provision
within its field of competence, in particular with regard to Article 4.2.
5.4. In accordance with Article 109f(5) of this Treaty, the EMI may
decide to publish its opinions and its recommendations.
ARTICLE 6
Operational and technical functions
6.1. The EMI shall;
- provide for the multilateralization of positions resulting from
interventions by the national central banks in Community currencies
and the multilateralization of intra-Community settlements;
- administer the very short-term financing mechanism provided for by
the Agreement of 13 March 1979 between the central banks of the
Member States of the European Economic Community laying down the
operating procedures for the European Monetary System (hereinafter
referred to as "EMS Agreement") and the short-term monetary support
mechanism provided for in the Agreement between the central banks
of the Member States of the European Economic Community of 9
February 1970, as amended;
- perform the functions referred to in Article 11 of Council Regulation
(EEC) No 1969/88 of 24 June 1988 establishing a single facility
providing medium-term financial assistance for Member States'
balances of payments.
6.2. The EMI may receive monetary reserves from the national central
banks and issue ECUs against such assets for the purpose of
implementing the EMS Agreement. These ECUs may be used by the
EMI and the national central banks as a means of settlement and for
transactions between them and the EMI. The EMI shall take the
necessary administrative measures for the implementation of this
paragraph.
6.3. The EMI may grant to the monetary authorities of third countries
and to international monetary institutions the status of "Other Holders"
of ECUs and fix the terms and conditions under which such ECUs may
be acquired, held or used by Other Holders.
6.4. The EMI shall be entitled to hold and manage foreign exchange
reserves as an agent for and at the request of national central banks.
Profits and losses regarding these reserves shall be for the account of
the national central bank depositing the reserves. The EMI shall
perform this function on the basis of bilateral contracts in accordance
with rules laid down in a decision of the EMI. These rules shall ensure
that transactions with these reserves shall not interfere with the
monetary policy and exchange rate policy of the competent monetary
authority of any Member State and shall be consistent with the
objectives of the EMI and the proper functioning of the Exchange Rate
Mechanism of the EMS.
ARTICLE 7
Other tasks
7.1. Once a year the EMI shall address a report to the Council on the
state of the preparations for the third stage. These reports shall
include an assessment of the progress towards convergence in the
Community, and cover in particular the adaptation of monetary policy
instruments and the preparation of the procedures necessary for
carrying out a single monetary policy in the third stage, as well as the
statutory requirements to be fulfilled for national central banks to
become an integral part of the ESCB.
7.2. In accordance with the Council decisions referred to in Article
109f(7) of this Treaty, the EMI may perform other tasks for the
preparation of the third stage.
ARTICLE 8
Independence
The members of the Council of the EMI who are the representatives of
their institutions shall, with respect to their activities, act according to
their own responsibilities. In exercising the powers and performing the
tasks and duties conferred upon them by this Treaty and this Statute,
the Council of the EMI may not seek or take any instructions from
Community institutions or bodies or governments of Member
States.The Community institutions and bodies as well as the
governments of the Member States undertake to respect this principle
and not seek to influence the Council of the EMI in the performance of
its tasks.
ARTICLE 9
Administration
9.1. In accordance with Article 109f(1) of this Treaty, the EMI shall be
directed and managed by the Council of the EMI.
9.2. The Council of the EMI shall consist of a President and the
Governors of the national central banks, on of whom shall be Vice-
President. If a Governor is prevented from attending a meeting, he
may nominate another representative of his institution.
9.3. The President shall be appointed by common accord of the
governments of the Member States at the level of Heads of State or of
Government, on a recommendation from, as the case may be, the
Committee of Governors or the Council of the EMI, and after consulting
the European Parliament and the Council. The President shall be
selected from among persons of recognized standing and professional
experience in monetary or banking matters. Only
nationals of Member States may be President of the EMI. The Council
of the EMI shall appoint the Vice-President. The President and Vice-
President shall be appointed for a period of three years.
9.4. The President shall perform his duties on a full-time basis. He
shall not engage in any occupation, whether gainful or not, unless
exemption is exceptionally granted by the Council of the EMI.
9.5. The President shall
- prepare and chair meetings of the Council of the EMI;
- without prejudice to Article 22, present the views of the EMI
externally;
- be responsible for the day-to-day management of the EMI.
In the absence of the President, his duties shall be performed by the
Vice-President.
9.6. The terms and conditions of employment of the President, in
particular his salary, pension and other social security benefits, shall
be the subject of a contract with the EMI and shall be fixed by the
Council of the EMI on a proposal from a Committee comprising three
members appointed by the Committee of Governors or the Council of
the EMI, as the case may be, and three members appointed by the
Council. The President shall not have the right to vote on matters
referred to in this paragraph.
9.7. If the President no longer fulfils the conditions required for the
performance of his duties or if he has been guilty of serious
misconduct, the Court of Justice may, on application by the Council of
the EMI, compulsorily retire him.
9.8. The Rules of Procedure of the EMI shall be adopted by the Council
of the EMI.
ARTICLE 10
Meetings of the Council of the EMI and voting procedures
10.1 The Council of the EMI shall meet at least ten times a year. The
proceedings of Council meetings shall be confidential. The Council of
the EMI may, acting unanimously, decide to make the outcome of its
deliberations public.
10.2. Each member of the Council of the EMI or his nominee shall
have one vote.
10.3. Save as otherwise provided for in this Statute, the Council of the
EMI shall act by a simple majority of its members.
10.4. Decisions to be taken in the context of Articles 4.2, 5.4, 6.2, and
6.3 shall require unanimity of the members of the Council of the EMI.
The adoption of opinions and recommendations under Articles 5.1 and
5.2, the adoption of decisions under Articles 6.4, 16 and 23.6 and the
adoption of guidelines under Article 15.3 shall require a qualified
majority of two thirds of the members of the Council of the EMI.
ARTICLE 11
Interinstitutional co-operation and reporting requirements
11.1 The President of the Council and a member of the Commission
may participate, without having the right to vote, in meetings of the
Council of the EMI.
11.2. The President of the EMI shall be invited to participate in Council
meetings when the Council is discussing matters relating to the
objectives and tasks of the EMI.
11.3. At a date to be established in the Rules of Procedure, the EMI
shall prepare an annual report on its activities and on monetary and
financial conditions in the Community. The annual report, together with
the annual accounts of the EMI, shall be addressed to the European
Parliament, the Council and the Commission and also to the European
Council.
The President of the EMI may, at the request of the European
Parliament or on his own initiative, be heard by the competent
Committees of the European Parliament.
11.4. Reports published by the EMI shall be made available to
interested parties free of charge.
ARTICLE 12
Currency denomination
The operations of the EMI shall be expressed in ECUs.
ARTICLE 13
Seat
Before the end of 1992, the decision as to where the seat of the EMI
will be established shall be taken by common accord of the
governments of the Member States at the level of Heads of State or of
Government.
ARTICLE 14
Legal capacity
The EMI, which in accordance with Article 109f(1) of this Treaty shall
have legal personality, shall enjoy in each of the Member States the
most extensive legal capacity accorded to legal persons under their
law; it may, in particular, acquire or dispose of movable or immovable
property and may be a party to legal proceedings.
ARTICLE 15
Legal acts.
15.1. In the performance of its tasks, and under the conditions laid
down in this Statute, the EMI shall:
- deliver opinions
- make recommendations;
- adopt guidelines, and take decisions, which shall be addressed to
the national central banks.
15.2. Opinions and recommendations of the EMI shall have no binding
force
15.3. The Council of the EMI may adopt guidelines laying down the
methods for the implementation of the conditions necessary for the
ESCB to perform its functions in the third stage. EMI guidelines shall
have no binding force; they shall be submitted for decision to the ECB.
15.4. Without prejudice to Article 3.1, a decision of the EMI shall be
binding in its entirety upon those to whom it is addressed. Articles 190
and 191 of this Treaty shall apply to these decisions.
ARTICLE 16
Financial resources.
16.1. The EMI shall be endowed with its own resources. The size of
the resources of the EMI shall be determined by the Council of the EMI
with a view to ensuring the income deemed necessary to cover the
administrative expenditure incurred in the performance of the tasks
and functions of the EMI.
16.2. The resources of the EMI determined in accordance with Article
16.1 shall be provided out of contributions by the national central
banks in accordance with the key referred to in Article 29.1 of the
Statute of the ESCB and be paid up at the establishment of the EMI.
For this purpose, the statistical data to be used for the determination
of the key shall be provided by the Commission, in accordance with
the rules adopted by the Council, acting by a qualified majority on a
proposal from the Commission and after consulting the European
Parliament, the Committee of Governors and the Committee referred to
in Article 109c of this Treaty.
16.3. The Council of the EMI shall determine the form in which
contributions shall be paid up.
ARTICLE 17
Annual accounts and auditing
17.1. The financial year of the EMI shall begin on the first day of
January and end on the last day of December.
17.2. The Council of the EMI shall adopt an annual budget before the
beginning of each financial year.
17.3. The annual accounts shall be drawn up in accordance with the
principles established by the Council of the EMI. The annual accounts
shall be approved by the Council of the EMI and shall thereafter be
published.
17.4. The annual accounts shall be audited by independent external
auditors approved by the Council of the EMI. The auditors shall have
full power to examine all books and accounts of the EMI and to obtain
full information about its transactions.
The provisions of Article 188c of this Treaty shall only apply to an
examination of the operational efficiency of the management of the
EMI.
17.5. Any surplus of the EMI shall be transferred in the following order
(a) an amount to be determined by the Council of the EMI shall be
transferred to the general reserve fund of the EMI.
(b) any remaining surplus shall be distributed to the national central
banks in accordance with the key referred to in Article 16.2.
17.6. In the event of a loss incurred by the EMI, the shortfall shall be
offset against the general reserve fund of the EMI. Any remaining
shortfall shall be made good by contributions from the national central
banks, in accordance with the key as referred to in Article 16.2.
ARTICLE 18
Staff
18.1. The Council of the EMI shall lay down the conditions of
employment of the staff of the EMI.
18.2. The Court of Justice shall have jurisdiction in any dispute
between the EMI and its servants within the limits and under the
conditions laid down in the conditions of employment.
ARTICLE 19
Judicial control and related matters.
19.1. The acts or omissions of the EMI shall be open to review or
interpretation by the Court of Justice in the cases and under the
conditions laid down in this Treaty. The EMI may institute proceedings
in the cases and under the conditions laid down in this Treaty.
19.2. Disputes between the EMI, on the one hand, and its creditors,
debtors or any other person, on the other, shall fall within the
jurisdiction of the competent national courts, save where jurisdiction
has been conferred upon the Court of Justice.
19.3. The EMI shall be subject to the liability regime provided for in
Article 215 of this Treaty.
19.4. The Court of Justice shall have jurisdiction to give judgment
pursuant to any arbitration clause contained in a contract concluded by
or on behalf of the EMI, whether that contract be governed by public or
private law.
19.5. A decision of the EMI to bring an action before the Court of
Justice shall be taken by the Council of the EMI.
ARTICLE 20
Professional Secrecy
20.1. Members of the Council of the EMI and the staff of the EMI shall
be required, even after their duties have ceased, not to disclose
information of the kind covered by the obligation of professional
secrecy.
20.2. Persons having access to data covered by Community
legislation imposing and obligation of secrecy shall be subject to such
legislation.
ARTICLE 21
Privileges and immunities
The EMI shall enjoy in the territories of the Member States such
privileges and immunities as are necessary for the performance of its
tasks, under the conditions laid down in the Protocol on the Privileges
and Immunities of the European Communities annexed to the Treaty
establishing a Single Council and a Single Commission of the
European Communities.
ARTICLE 22
Signatories
The EMI shall be legally committed to third parties by the President or
the Vice-President or by the signatures of two members of the staff of
the EMI who have been duly authorized by the President to sign on
behalf of the EMI.
ARTICLE 23
Liquidation of the EMI
23.1. In accordance with Article 109l of this Treaty, the EMI shall go
into liquidation on the establishment of the ECB. All assets and
liabilities of the EMI shall then pass automatically to the ECB. The
latter shall liquidate the EMI according to the provisions of this Article.
The liquidation shall be completed by the beginning of the third stage.
23.2. The mechanism for the creation of ECUs against gold and US
dollars as provided for by Article 17 of the EMS agreement shall be
unwound by the first day of the third stage in accordance with Article
20 of the said Agreement.
23.3. All claims and liabilities arising from the very short-term
financing mechanism and the short-term monetary support
mechanism, under the Agreements referred to in Article 6.1, shall be
settled by the first day of the third stage.
23.4. All remaining assets of the EMI shall be disposed of and all
remaining liabilities of the EMI shall be settled.
23.5. The proceeds of the liquidation described in Article 23.4. shall be
distributed to the national central banks in accordance with the key
referred to in Article 16.2
23.6. The Council of the EMI may take the measures necessary for the
application of Articles 23.4. and 23.5.
23.7. Upon the establishment of the ECB, the President of the EMI
shall relinquish his office.

PROTOCOL
ON THE EXCESSIVE DEFICIT PROCEDURE
THE HIGH CONTRACTING PARTIES
DESIRING to lay down the details of the excessive deficit procedure
referred to in Article 104c of the treaty establishing the European
Community,
HAVE AGREED upon the following provisions, which shall be annexed
to the Treaty establishing the European Community:
ARTICLE 1
The reference values referred to in Article 104c(2) of this Treaty are:
- 3% for the ratio of the planned or actual government deficit to gross
domestic product at market prices;
- 60% for the ratio of government debt to gross domestic product at
market prices.
ARTICLE 2
In Article 104c of this Treaty and in this Protocol:
- government means general government, that is central government,
regional or local government and social security funds, to the
exclusion of commercial operations, as defined in the European
System of Integrated Economic Accounts;
- deficit means net borrowing as defined in the European System of
Integrated Economic Accounts;
- investment means gross fixed capital formation as defined in the
European System of Integrated Economic Accounts;
- debt means total gross debt at nominal value outstanding at the end
of the year and consolidated between and within the sectors of general
government as defined in the first indent.
ARTICLE 3
In order to ensure the effectiveness of the excessive deficit procedure,
the governments of the Member States shall be responsible under this
procedure for the deficits of general government as defined in the first
indent of Article 2. The Member States shall ensure that national
procedures in the Budgetary area enable them to meet their
obligations in this area deriving from this Treaty. The Member States
shall report their planned and actual deficits and the levels of their
debt promptly and regularly to the Commission.
ARTICLE 4.
The statistical data to be used for the application of this Protocol shall
be provided by the Commission.

PROTOCOL
ON THE CONVERGENCE CRITERIA REFERRED TO IN ARTICLE 109j OF
THE TREATY ESTABLISHING THE EUROPEAN COMMUNITY
THE HIGH CONTRACTING PARTIES,
DESIRING to lay down the details of the convergence criteria which
shall guide the Community in taking decisions on the passage to the
third stage of economic and monetary union, referred to in Article
109j(1) of this Treaty,
HAVE AGREED upon the following provisions, which shall be annexed
to the Treaty establishing the European Community:
ARTICLE 1
The criterion on price stability referred to in the first indent of Article
109j(1) of this Treaty shall mean that a Member State has a price
performance that is sustainable and an average rate of inflation,
observed over a period of one year before the examination, that does
not exceed by more than 1 1/2 percentage points that of, at most, the
three best performing Member States in terms of price stability.
Inflation shall be measured by means of the consumer price index on
a comparable basis, taking into account differences in national
definitions.
ARTICLE 2
The criterion on the government budgetary position referred to in the
second indent of Article 109j(1) of this treaty shall mean that at the
time of the examination the Member State is not the subject of a
Council decision under Article 104c(6) of this Treaty that an excessive
deficit exists.
ARTICLE 3
The criterion on participation in the Exchange Rate mechanism of the
European Monetary System referred to in the third indent of Article
109j(1) of this Treaty shall mean that a Member State has respected
the normal fluctuation margins provided for by the Exchange Rate
Mechanism of the European Monetary System without severe tensions
for at least the last two years before the examination. In particular, the
Member State shall not have devalued its currency's bilateral central
rate against any other Member State's currency on its own initiative
for the same period.
ARTICLE 4
The criterion on the convergence of interest rates referred to in the
fourth indent of Article 109j(1) of this Treaty shall mean that, observed
over a period of one year before the examination, a Member State has
had an average nominal long-term interest rate that does not exceed
by more than 2 percentage points that of, at most, the three best
performing Member States in terms of price stability. Interest rates
shall be measured on the basis of long term government bonds or
comparable securities, taking into account differences in national
definitions.
ARTICLE 5
The statistical data to be used for the application of this protocol shall
be provided by the Commission.
ARTICLE 6
The Council shall, acting unanimously on a proposal from the
Commission and after consulting the European Parliament, the EMI or
the ECB as the case may be, and the Committee referred to in Article
109c, adopt appropriate provisions to lay down the details of the
convergence criteria referred to Article 109j of this Treaty, which shall
then replace this Protocol.

PROTOCOL
AMENDING THE PROTOCOL ON THE PRIVILEGES AND IMMUNITIES
OF THE EUROPEAN COMMUNITIES
THE HIGH CONTRACTING PARTIES,
CONSIDERING that, in accordance with Article 40 of the Statute of the
European Central Bank and Article 21 of the Statute of the European
Monetary Institute, the European Central Bank and the European
Monetary Institute shall enjoy in the territories of the Member States
such privileges and immunities as are necessary for the performance
of their tasks,
HAVE AGREED upon the following provisions, which shall be annexed
to the Treaty establishing the European Community:
SOLE ARTICLE
The Protocol on the Privileges and Immunities of the European
Communities, annexed to the Treaty establishing a Single Council and
a Single Commission of the European Communities, shall be
supplemented by the following provisions:
"Article 23
This Protocol shall also apply to the European Central Bank, to the
members of its organs and to its staff, without prejudice to the
provisions of the Protocol on the Statute of the European System of
Central Banks and the European Central Bank.
The European Central Bank shall, in addition, be exempt from any
form of taxation or imposition of a like nature on the occasion of any
increase in its capital and from the various formalities which may be
connected therewith in the State where the bank has its seat. The
activities of the Bank and of its organs carried on in accordance with
the Statute of the European System of Central Banks and of the
European Central Bank shall not be subject to any turnover tax.
The above provisions shall also apply to the European Monetary
Institute. Its dissolution or liquidation shall not give rise to any
imposition."

PROTOCOL
ON DENMARK
THE HIGH CONTRACTING PARTIES,
DESIRING to settle certain particular problems relating to Denmark,
HAVE AGREED UPON the following provisions, which shall be annexed
to the Treaty establishing the European Community:
The provisions of Article 14 of the Protocol on the Statute of the
European System of Central Banks and of the European System of
Central Banks and of the European Central Bank shall not affect the
right of the National Bank of Denmark to carry out its existing tasks
concerning those parts of the Kingdom of Denmark which are not part
of the Community.

PROTOCOL
ON PORTUGAL
THE HIGH CONTRACTING PARTIES,
DESIRING to settle certain particular problems relating to Portugal,
HAVE AGREED upon the following provisions, which shall be annexed
to the Treaty establishing the European Community:
1. Portugal is hereby authorized to maintain the facility afforded to the
Autonomous Regions of Azores and Madeira to benefit from an
interest-free credit facility with the Banco de Portugal under the terms
established by existing Portuguese law.
2. Portugal commits itself to pursue its best endeavors in order to put
an end to the above mentioned facility as soon as possible.

PROTOCOL
ON THE TRANSITION TO THE THIRD STAGE OF ECONOMIC AND
MONETARY UNION
THE HIGH CONTRACTING PARTIES,
Declare the irreversible character of the Community's movement to the
third stage of Economic and Monetary Union by signing the new Treaty
provisions on Economic and Monetary Union.
Therefore all Member States shall, whether they fulfil the necessary
conditions for the adoption of a single currency or not, respect the will
for the Community to enter swiftly into the third stage, and therefore no
Member State shall prevent the entering into the third stage.
If by the end of 1997 the date of the beginning of the third stage has
not been set, the Member States concerned, the Community
institutions and other bodies involved shall expedite all preparatory
work during 1998, in order to enable the Community to enter the third
stage irrevocably on 1 January 1999 and to enable the ECB and ESCB
to start their full functioning from this date.
This Protocol shall be annexed to the Treaty establishing the
European Community.

PROTOCOL
ON CERTAIN PROVISIONS RELATING TO THE UNITED KINGDOM OF
GREAT BRITAIN AND NORTHERN IRELAND
THE HIGH CONTRACTING PARTIES,
RECOGNIZING that the United Kingdom shall not be obliged or
committed to move to the third stage of economic and monetary union
without a separate decision to do so by its government and
Parliament,
NOTING the practice of the government of the United Kingdom to fund
its borrowing requirement by the sale of debt to the private sector.
HAVE AGREED the following provisions, which shall be annexed to the
Treaty establishing the European Community:
1. The United Kingdom shall notify the Council whether it intends to
move to the third stage before the Council makes its assessment
under Article 109j(2) of this Treaty;
Unless the United Kingdom notifies the Council that it intends to move
to the third stage, it shall be under no obligation to do so.
If no date is set for the beginning of the third stage under Article
109j(3) of this Treaty, the United Kingdom may notify its intention to
move to the third stage before 1 January 1998.
2. Paragraphs 3 to 9 shall have effect if the United Kingdom notifies
the Council that it does not intend to move to the third stage.
3.The United Kingdom shall not be included among the majority of
Member States which fulfil the necessary conditions referred to in the
second indent of Article 109j(2) and the first indent of Article 109j(3) of
this Treaty.
4. The United Kingdom shall retain its powers in the field of monetary
policy according to national law.
5. Articles 3a(2), 104c(1), (9) and (11), 105(1) to (5), 105a, 107, 108,
108a, 109, 109a(1) and (2)(b) and 109l(4) and (5) of this Treaty shall not
apply to the United Kingdom. In these provisions references to the
Community or the Member States shall not include the United Kingdom
and references to national central banks shall not include the Bank of
England.
6. Articles 109e(4) and 109h and i of this Treaty shall continue to apply
to the United Kingdom. Articles 109c(4) and 109m shall apply to the
united Kingdom as if it had a derogation.
7. The voting rights of the United Kingdom shall be suspended in
respect of acts of the Council referred to in Articles listed in paragraph
5. For this purpose the weighted votes of the United Kingdom shall be
excluded form any calculation of a qualified majority under Article
109k(5) of this Treaty.
The United Kingdom shall also have no right to participate in the
appointment of the President, the Vice-President and the other
members of the Executive Board of the ECB under Articles 109a(2)(b)
and 109l(1) of this Treaty.
8. Articles 3, 4, 6, 7, 9.2, 10.1, 10.3, 11.2, 12.1, 14, 16, 18 to 20, 22, 23,
26, 27, 30 to 34, 50 and 52 of the Protocol on the Statute of the
European System of Central Banks and of the European Central Bank
("the Statute") shall not apply to the United Kingdom.
In those Articles, references to the Community or the Member States
shall not include the United Kingdom and references to national
central banks or shareholders shall not include the Bank of England.
References in Articles 10.3 and 30.2. of the Statute to "subscribed
capital of the ECB" shall not include capital subscribed by the Bank of
England.
9. Article 109(3) of this Treaty and Articles 44 to 48 of the Statute shall
have effect, whether or not there is any Member State with a
derogation, subject to the following amendments:
(a) References in Article 44 ot the tasks of the ECB and the EMI shall
include those tasks that still need to be performed in the third stage
owing to any decision of the United kingdom not to move to that Stage.
(b) In addition to the tasks referred to in Article 47 the ECB shall also
give advice in relation to and contribute to the preparation of any
decision of the Council with regard to the United Kingdom taken in
accordance with paragraphs 10(a) and 10(c).
(c) The Bank of England shall pay up its subscription to the capital of
the ECB as a contribution of its operational costs on the same basis
as national central banks of Member States with a derogation.
10. If the United Kingdom does not move to the third stage, it may
change its notification at any time after the beginning of that stage. In
that event:
(a) The United Kingdom shall have the right to move to the third stage
provided only that it satisfies the necessary conditions. The Council,
acting at the request of the United Kingdom and under the conditions
and in accordance with the procedure laid down in Article 109k(2) of
this Treaty, shall decide whether it fulfills the necessary conditions.
(b) The Bank of England shall pay up its subscribed capital, transfer to
the ECB foreign reserve assets and contribute to its reserves on the
same basis as the national central bank of a Member State whose
derogation has been abrogated.
(c) The Council, acting under the conditions and in accordance with the
procedure laid down in Article 109(5) of this Treaty, shall take all other
necessary decisions to enable the United Kingdom to move to the
third stage.
If the United Kingdom moves to the third stage pursuant to the
provisions of this protocol, paragraphs 3 to 9 shall cease to have
effect.
11. Notwithstanding Articles 104 and 109e(3) of this Treaty and Article
21.1. of the Statute, the government of the United Kingdom may
maintain its ways and means facility with the Bank of England if and
so long as the United Kingdom does not move to the third stage.

PROTOCOL
ON CERTAIN PROVISIONS RELATING TO DENMARK
THE HIGH CONTRACTING PARTIES,
DESIRING to settle, in accordance with the general objectives of the
Treaty establishing the European Community, certain particular
problems existing at the present time,
TAKING INTO ACCOUNT that the Danish Constitution contains
provisions which may imply a referendum in Denmark prior to Danish
participation in the third stage of Economic and Monetary Union,
HAVE AGREED on the following provisions, which shall be annexed to
the Treaty establishing the European Community:
1. The Danish Government shall notify the Council of its position
concerning participation in the third stage before the Council makes its
assessment under Article 109j(2) of this Treaty.
2. In the event of a notification that Denmark will not participate in the
third stage, Denmark shall have an exemption. The effect of the
exemption shall be that all Articles and provisions of this Treaty and
the Statute of the ESCB referring to a derogation shall be applicable to
Denmark.
3. In such case, Denmark shall not be included among the majority of
Member States which fulfil the necessary conditions referred to in the
second indent of Article 109j(2) and the first indent of Article 109j(3) of
this Treaty.
4. As for the abrogation of the exemption, the procedure referred to in
Article 109k(2) shall only be initiated at the request of Denmark.
5. In the event of abrogation of the exemption status, the provisions of
this Protocol shall cease to apply.

PROTOCOL
ON FRANCE
THE HIGH CONTRACTING PARTIES,
DESIRING to take into account a particular point relating to France,
HAVE AGREED upon the following provisions, which shall be annexed
to the Treaty establishing the European Community.
France will keep the privilege of monetary emission in its overseas
territories under the terms established by its national laws, and will be
solely entitled to determine the parity of the CFP franc.

PROTOCOL
ON SOCIAL POLICY
THE HIGH CONTRACTING PARTIES,
NOTING that eleven Member States, that is to say the Kingdom of
Belgium, the Kingdom of Denmark and Federal Republic of Germany,
the Hellenic Republic, the Kingdom of Spain, the French Republic,
Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the
Kingdom of the Netherlands and the Portuguese Republic, wish to
continue along the path laid down in the 1989 Social Charter; that they
have adopted among themselves an Agreement to this end; that this
Agreement is annexed to this Protocol; that this Protocol and the said
Agreement are without prejudice to the provisions of this Treaty,
particularly those relating to social policy which constitute an integral
part of the "acquis communautaire":
1. Agree to authorize those eleven Member States to have recourse to
the institutions, procedures and mechanisms of the Treaty for the
purposes of taking among themselves and applying as far as they are
concerned the acts and decisions required for giving effect to the
abovementioned Agreement.
2. The United Kingdom of Great Britain and Northern Ireland shall not
take part in the deliberations and the adoption by the Council of
Commission proposals made on the basis of the Protocol and the
above mentioned Agreement.
By way of derogation from Article 148(2) of the Treaty, acts of the
Council which are made pursuant to this Protocol and which must be
adopted by a qualified majority shall be deemed to be so adopted if
they have received at least forty-four votes in favour. The unanimity of
the members of the Council, with the exception of the United Kingdom
of Great Britain and Northern Ireland, shall be necessary for acts of
the Council which must be adopted unanimously and for those
amending the Commission proposal.
Acts adopted by the Council and any financial consequences other
than administrative costs entailed for the institutions shall not be
applicable to the United Kingdom of Great Britain and Northern Ireland.
3. This Protocol shall be annexed to the Treaty establishing the
European Community.

AGREEMENT
ON SOCIAL POLICY CONCLUDED BETWEEN THE MEMBER STATES
OF THE EUROPEAN COMMUNITY WITH THE EXCEPTION OF THE
UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND.
The undersigned eleven HIGH CONTRACTING PARTIES, that is to say,
the Kingdom of Belgium, the Kingdom of Denmark, the Federal
Republic of Germany, the Hellenic Republic, the Grand Duchy of
Luxembourg, the Kingdom of the Netherlands and the Portuguese
Republic (hereinafter referred to the "the Member States"),
WISHING TO implement to the 1989 Social Charter on the basis of the
"acquis communautaire",
CONSIDERING the Protocol on social policy,
HAVE AGREED as follows:
ARTICLE 1
The Community and the Member States shall have as their objectives
the promotion of employment, improved living and working conditions,
proper social protection, dialogue between management and labour,
the development of human resources with a view to lasting high
employment and the combating of exclusion. To this end the
Community and Member States shall implement measures which take
account of the diverse forms of national practices, in particular in the
field of contractual relations, and the need to maintain the
competitiveness of the Community economy.
ARTICLE 2
1. With a view to achieving the objectives of Article 1, the Community
shall support and complement the activities of the Member States in
the following fields:
- improvement in particular of the working environment to protect
workers' health and safety;
- working conditions;
- the information and consultation of workers;
- equality between men and women with regard to labour market
opportunities and treatment at work;
- the integration of persons excluded from the labour market, without
prejudice to Article 127 of the Treaty establishing the European
Community (hereinafter referred to as "the Treaty").
2. To this end, the Council may adopt, by means of directives,
minimum requirements for gradual implementation, having regard to
the conditions and technical rules obtaining in each of the Member
States. Such directives shall avoid imposing administrative, financial
and legal constraints in a way which would hold back the creation and
development of small and medium-sized undertakings.
The Council shall act in accordance with the procedure referred to in
Article 189c of the Treaty after consulting the Economic and Social
Committee.
3. However, the Council shall act unanimously on a proposal from the
Commission, after consulting the European Parliament and the
Economic and Social Committee, in following areas:
- social security and social protection of workers;
- protection of workers where their employment contract is terminated;
- representation and collective defence of the interests of worker and
employers, including co-determination, subject to paragraph 6;
- conditions of employment for third-country nationals legally residing
in Community territory;
- financial contributions for promotion of employment and job-creation,
without prejudice to the provisions relating to the Social Fund.
4. A Member State may entrust management and labour, at their joint
request, with the implementation of directives adopted pursuant to
paragraphs 2 and 3.
In this case, it shall ensure that, no later than the date on which a
directive must be transposed in accordance with Article 189,
management and labour have introduced the necessary measures by
agreement, the Member State concerned being required to take any
necessary measure enabling it at any time to be in a position to
guarantee the results imposed by that directive.
5. The provisions adopted pursuant to this Article shall not prevent
any Member State from maintaining or introducing more stringent
protective measures compatible with the Treaty.
6. The provisions of this Article shall not apply to pay, the right of
association, the right to strike or the right to impose lock-outs.
ARTICLE 3
1. The Commission shall have the task of promoting the consultation
of management and labour at Community level and shall take any
relevant measure to facilitate their dialogue by ensuring balanced
support for the parties.
2. To this end, before submitting proposals in the social policy field,
the Commission shall consult management and labour on the possible
direction of Community action.
3. If, after such consultation, the Commission considers Community
action advisable, it shall consult management and labour on the
content of the envisaged proposal. Management and labour shall
forward to the Commission an opinion or, where appropriate, a
recommendation.
4. On the occasion of such consultation, management and labour may
inform the Commission of their wish to initiate the process provided
for in Article 4. The duration of the procedure shall not exceed nine
months, unless the management and labour concerned and the
Commission decide jointly to extend it.
ARTICLE 4
1. Should management and labour so desire, the dialogue between
them at Community level may lead to contractual relations, including
agreements.
2. Agreements concluded at Community level shall be implemented
either in accordance with the procedures and practices specific to
management and labour and the Member States or, in matters covered
by Article 2, at the joint request of the signatory parties, by a Council
decision on a proposal from the Commission.
The Council shall act by qualified majority, except where the
agreement in question contains one or more provisions relating to one
of the areas referred to in Article 2(3), in which case it shall act
unanimously.
ARTICLE 5
With a view to achieving the objectives of Article 1 and without
prejudice to the other provisions of the Treaty, the Commission shall
encourage co-operation between the Member States and facilitate the
co-ordination of their action in all social policy fields under this
Agreement.
ARTICLE 6
1. Each Member State shall ensure that the principle of equal pay for
male and female workers for equal work is applied.
2. For the purpose of this Article, "pay" means the ordinary basic or
minimum wage or salary and any other consideration, whether in cash
or in kind, which the worker receives directly or indirectly, in respect of
his employment, from his employer.
Equal pay without discrimination based on sex means:
(a) that pay for the same work at piece rates shall be calculated on the
basis of the same unit of measurement.
(b) that pay for work at time rates shall be the same for the same job.
3. This Article shall not prevent any Member State from maintaining or
adopting measures providing for specific advantages in order to make
it easier for women to pursue a vocational activity or to prevent or
compensate for disadvantages in their professional careers.
ARTICLE 7
The Commission shall draw up a report each year on progress in
achieving the objective of Article 1, including the demographic
situation in the Community. It shall forward the report to the European
Parliament, the Council and the Economic and Social Committee.
The European Parliament may invite the Commission to draw up
reports on particular problems concerning the social situation.
DECLARATIONS
1. Declaration on Article 2(2)
The eleven High Contracting Parties note that in the discussions on
Article 2(2) of the Agreement it was agreed that the Community does
not intend, in laying down minimum requirements for the protection of
the safety and health of employees, to discriminate in a manner
unjustified by the circumstances against employees in small and
medium-sized undertakings.
2. Declaration on Article 4(2)
The eleven High Contracting Parties declare that the first of the
arrangements for application of the agreements between management
and labour at Community level - referred to in Article 4(2) - will consist
in developing, by collective bargaining according to the rules of each
Member State, the content of the agreements, and that consequently
this arrangement implies no obligation on the Member States to apply
the agreements directly or to work out rules for their transposition, or
any obligation to amend national legislation in force to facilitate their
implementation.

PROTOCOL
ON ECONOMIC AND SOCIAL COHESION THE HIGH CONTRACTING
PARTIES,
RECALLING that the Union has set itself the objective of promoting
economic and social progress, inter alia, through the strengthening of
economic and social cohesion;
RECALLING that Article 2 of the Treaty establishing the European
Community includes the task of promoting economic and social
cohesion and solidarity between Member States and that the
strengthening of economic and social cohesion figures among the
activities of the Community listed in Article 3;
RECALLING that the provisions of Part Three, Title XIV, on economic
and social cohesion as a whole provide the legal basis for
consolidating and further developing the Community's action in the
field of economic and social cohesion, including the creation of a new
fund;
RECALLING that the provisions of Part Three, Title XII on trans-
European networks and Title XVI on environment envisage a Cohesion
Fund to be set up before 31 December 1993;
STATING their belief that progress towards Economic and Monetary
Union will contribute to the economic growth of all Member States;
NOTING that the Community's Structural Funds are being doubled in
real terms between 1987 and 1993, implying large transfers,
especially as a proportion of GDP of the less prosperous Member
States;
NOTING that the European Investment Bank is lending large and
increasing amounts for the benefit of the poorer regions;
NOTING the desire for greater flexibility in the arrangements for
allocation from the Structural Funds;
NOTING the desire for modulation of the levels of Community
participation in programmes and projects in certain countries;
NOTING the proposal to take greater account of the relative prosperity
of Member States in the system of own resources,
REAFFIRM that the promotion of economic and social cohesion is vital
to the full development and enduring success of the Community, and
underline the importance of the inclusion of economic and social
cohesion in Articles 2 and 3 of this Treaty;
REAFFIRM their conviction that the Structural Funds should continue to
play a considerable part in the achievement of Community objectives
in the field of cohesion;
REAFFIRM their conviction that the European Investment Bank should
continue to devote the majority of its resources to the promotion of
economic and social cohesion, and declare their willingness to review
the capital needs of the European Investment Bank as soon as this is
necessary for that purpose;
REAFFIRM the need for a thorough evaluation of the operation and
effectiveness of the Structural Funds in 1992, and the need to review,
on that occasion, the appropriate size of these Funds in the light of the
tasks of the Community in the area of economic and social cohesion;
AGREE that the Cohesion Fund to be set up before 31 December 1993
will provide Community financial contributions to projects in the fields
of environment and trans-European networks in Member States with a
per capita GNP of less than 90% of the Community average which
have a programme leading to the fulfilment of the conditions of
economic convergence as set out in Article 104c;
DECLARE their intention of allowing a greater margin of flexibility in
allocating financing from the Structural Funds to specific needs not
covered under the present Structural Funds regulations;
DECLARE their willingness to modulate the levels of Community
participation in the context of programmes and projects of the
Structural Funds, with a view to avoiding excessive increases in
budgetary expenditure in the less prosperous Member States;
RECOGNIZE the need to monitor regularly the progress made towards
achieving economic and social cohesion and state their willingness to
study all necessary measures in this respect;
DECLARE their intention of taking greater account of the contributive
capacity of individual Member States in the system of own resources,
and of examining means of correcting, for the less prosperous
Member States, regressive elements existing in the present own
resources system;
AGREE to annex this Protocol to the Treaty establishing the European
Community.

PROTOCOL
ON THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE
OF THE REGIONS
THE HIGH CONTRACTING PARTIES
HAVE AGREED upon the following provision, which shall be annexed
to this Treaty establishing the European Community:
The Economic and Social Committee and the Committee of the
Regions shall have a common organizational structure.

PROTOCOL
ANNEXED TO THE TREATY ON EUROPEAN UNION AND TO THE
TREATIES ESTABLISHING THE EUROPEAN COMMUNITIES
THE HIGH CONTRACTING PARTIES,
HAVE AGREED upon the following provision, which shall be annexed
to the Treaty on European Union and to the Treaties establishing the
European Communities:
Nothing in the Treaty on European Union, or in the Treaties
establishing the European Communities, or in the Treaties or Acts
modifying or supplementing those Treaties, shall affect the application
in Ireland of Article 40.3.3 of the Constitution of Ireland.

FINAL ACT
1. The Conferences of the Representatives of the Governments of the
Member States convened in Rome on 15 December 1990 to adopt by
common accord the amendments to be made to the Treaty
establishing the European Economic Community with a view to the
achievement of political union and with a view to the final stages of
economic and monetary union, and those convened in Brussels on 3
February 1992 with a view to amending the Treaties establishing
respectively the European Coal and Steel Community and the
European Atomic Energy Community as a result of the amendments
envisaged for the Treaty establishing the European Economic
Community have adopted the following texts:
I
the Treaty on European Union
II
Protocols
1. Protocol on the acquisition of property in Denmark
2. Protocol concerning Article 119 of the Treaty establishing the
European Community
3. Protocol on the Statute of the European System of central banks and
of the European Central Bank
4. Protocol on the Statute of the European Monetary Institute
5. Protocol on the excessive deficit procedure
6. Protocol on the convergence criteria referred to in Article 109j of the
Treaty establishing the European Community
7. Protocol amending the Protocol on the privileges and immunities of
the European Communities
8. Protocol on Denmark
9. Protocol on Portugal
10. Protocol on the transition to the third stage of economic and
monetary union
11. Protocol on certain provisions relating to the United Kingdom of
Great Britain and Northern Ireland
12. Protocol on certain provisions relating to Denmark.
13. Protocol on France
14. Protocol on social policy, to which is annexed an agreement
concluded between the Member States of the European Community
with the exception of the United Kingdom of Great Britain and Northern
Ireland, to which two declarations are attached
15. Protocol on economic and social cohesion
16. Protocol on the Economic and Social Committee and the Committee
of the Regions
17. Protocol annexed to the Treaty on European Union and to the
Treaties establishing the European Communities
The Conferences agreed that the Protocols referred to in 1 to 16 above
will be annexed to the Treaty establishing the European Community
and that the Protocol referred to in 17 above will be annexed to the
Treaty of European Union and to the Treaties establishing the
European Communities.
2. At the time of signature of these texts, the Conferences adopted the
declarations listed below and annexed to this Final Act:
III
Declarations
1. Declaration on civil protection, energy and tourism
2. Declaration on nationality of a Member State
3. Declaration on Part Three, Titles III and VI, of the Treaty establishing
the European Community
4. Declaration on Part Three, Title VI, of the Treaty establishing the
European Community
5. Declaration on monetary co-operation with non-Community countries
6. Declaration on monetary relations with the Republic of San Marino,
the Vatican City and the Principality of Monaco
7. Declaration on Article 73d of the Treaty establishing the European
Community
8. Declaration on Article 109 of the Treaty establishing the European
Economic Community
9. Declaration on Part Three, Title XVI, of the Treaty establishing the
European Community
10. Declaration on Articles 109, 130r and 130y of the Treaty
establishing the European Community
11. Declaration on the Directive of 24 November 1988 (Emissions)
12. Declaration of the European Development Fund
13. Declaration on the role of national Parliaments in the European
Union
14. Declaration on the Conference of the Parliaments
15. Declaration on the number of members of the Commission and of
the European Parliament
16. Declaration on the hierarchy of Community Acts
17. Declaration on the right of access to information
18. Declaration on estimated costs under Commission proposals
19. Declaration on the implementation of Community law
20. Declaration on assessment of the environmental impact of
Community measures
21. Declaration on the Court Auditors
22. Declaration of the Economic and Social Committee
23. Declaration on co-operation with charitable associations
24. Declaration on the protection of animals
25. Declaration on the representation of the interests of the overseas
countries and territories referred to in Article 227(3) and (5)(a) and (b) of
the Treaty establishing the European Community
26. Declaration on the outermost regions of the Community
27. Declaration on voting in the field of the common foreign and
security policy
28 Declaration on practical arrangements in the field of the common
foreign and security policy.
29. Declaration on the use of languages in the field of the common
foreign and security policy
30. Declaration on Western European Union
31. Declaration on asylum
32. Declaration on police co-operation
33. Declaration on disputes between the ECB and the EMI and their
servants
Done at Maastricht this seventh day of February in the year on
thousand nine hundred and ninety-two
DECLARATION
ON CIVIL PROTECTION, ENERGY AND TOURISM
The Conference declares that the question of introducing into the
Treaty establishing the European Community Titles relating to the
spheres referred to in Article 3(t) of that Treaty will be examined, in
accordance with the procedure laid down in Article N(2) of the Treaty on
European Union, on the basis of a report which the Commission will
submit to the Council by 1996 at the latest.
The Commission declares that Community action in those spheres will
be pursued on the basis of the present provisions of the Treaties
establishing the European Communities.
DECLARATION
ON NATIONALITY OF A MEMBER STATE
The Conference declares that, wherever in the Treaty establishing the
European Community reference is made to nationals of the Member
States, the question whether an individual possesses the nationality
of a Member State shall be settled solely by reference to the national
law of the Member State concerned. Member States may declare, for
information, who are to be considered their nationals for Community
purposes by way of declaration lodged with the Presidency and may
amend any such declarations when necessary.
DECLARATION
ON PART THREE,TITLES III AND VI, OF THE TREATY ESTABLISHING
THE EUROPEAN COMMUNITY
The Conference affirms that, for the purposes of applying the
provisions set out in Part Three, Title III, Chapter 4 on capital and
payments, and Title VI on economic and monetary policy, of this
Treaty, the usual practice, according to which the Council meets in the
composition of Economic and Finance Ministers, shall be continued,
without prejudice to Article 109j(2) to (4) and Article 109k(2).
DECLARATION
ON PART THREE, TITLE VI, OF THE TREATY ESTABLISHING THE
EUROPEAN COMMUNITY
The Conference affirms that the President of the European Council
shall invite the Economic and Finance Ministers to participate in
European Council meetings when the European Council is discussing
matters relating to Economic and Monetary Union.
DECLARATION
ON MONETARY COOPERATION WITH NON-COMMUNITY COUNTRIES
The Conference affirms that the Community shall aim to contribute to
stable international monetary relations. To this end the Community
shall be prepared to co-operate with other European countries and with
those non-European countries with which the Community has close
economic ties.
DECLARATION
ON MONETARY RELATIONS WITH THE REPUBLIC OF SAN MARINO,
THE VATICAN CITY AND THE PRINCIPALITY OF MONACO
The Conference agrees that the existing monetary relations between
Italy and San Marino and the Vatican City and between France and
Monaco remain unaffected by the Treaty establishing the European
Community until the introduction of the ECU as the single currency of
the Community.
The Community undertakes to facilitate such renegotiations of existing
arrangements as might become necessary as a result of the
introduction of the ECU as a single currency.
DECLARATION
ON ARTICLE 73d OF THE TREATY ESTABLISHING THE EUROPEAN
COMMUNITY
The Conference affirms that the right of Member States to apply the
relevant provisions of their tax law as referred to in Article 73d(1)(a) of
this Treaty will apply only with respect to the relevant provisions
which exist at the end of 1993. However, this Declaration shall apply
only to capital movements between Member States and to payments
effected between Member States.
DECLARATION
ON ARTICLE 109 OF THE TREATY ESTABLISHING THE EUROPEAN
COMMUNITY
The Conference emphasizes that use of the term "formal agreements"
in Article 109(1) is not intended to create a new category of
international agreement within the meaning of Community law.
DECLARATION
ON PART THREE, TITLE XVI, OF THE TREATY ESTABLISHING THE
EUROPEAN COMMUNITY
The Conference considers that, in view of the increasing importance of
nature conservation at national, Community and international level,
the Community should, in exercising its powers under the provisions
of Part Three, Title XVI, take account of the specific requirements of
this area.
DECLARATION
ON ARTICLES 109, 130r AND 130y of THE TREATY ESTABLISHING
THE EUROPEAN COMMUNITY
The Conference considers that the provisions of Article 109(5), Article
130r(4), second subparagraph, and Article 130y do not affect the
principles resulting from the judgment handed down by the Court of
Justice in the AETR case.
DECLARATION
ON THE DIRECTIVE OF 24 NOVEMBER 1988 (Emissions)
The Conference declares that changes in Community legislation
cannot undermine the derogations granted to Spain and Portugal until
31 December 1999 under the Council Directive of 24 November 1988
on the limitation of emissions of certain pollutants into the air from
large combustion plants.
DECLARATION
ON THE EUROPEAN DEVELOPMENT FUND
The Conference agrees that the European Development Fund will
continue to be financed by national contributions in accordance with
the current provisions.
DECLARATION
ON THE ROLE OF NATIONAL PARLIAMENTS IN THE EUROPEAN
UNION
The Conference considers that it is important to encourage greater
involvement of national Parliaments in the activities of the European
Union.
To this end, the exchange of information between the national
Parliaments and the European Parliament should be stepped up. In
this context, the governments of the Member States will ensure, inter
alia, that national Parliaments receive Commission proposals for
legislation in good time for information or possible examination.
Similarly, the Conference considers that it is important for contacts
between the national Parliaments and the European Parliament to be
stepped up, in particular through the granting of appropriate reciprocal
facilities and regular meetings between members of Parliament
interested in the same issues.
DECLARATION
ON THE CONFERENCE OF THE PARLIAMENTS
The Conference invites the European Parliament and the national
Parliaments to meet as necessary as a Conference of the Parliaments
(or "Assises")
The Conference of the Parliaments will be consulted on the main
features of the European Union, without prejudice to the powers of the
European Parliament and the rights of the national Parliaments. The
President of the European Council and the President of the
Commission will report to each session of the Conference of the
Parliaments on the state of the Union.
DECLARATION
ON THE NUMBER OF MEMBERS OF THE COMMISSION AND OF THE
EUROPEAN PARLIAMENT
The Conference agrees that the Member States will examine the
questions relating to the number of members of the Commission and
the number of members of the European Parliament no later than at
the end of 1992, with a view to reaching an agreement which will
permit the establishment of the necessary legal basis for fixing the
number of members of the European Parliament in good time for the
1994 elections. The decisions will be taken in the light, inter alia, of
the need to establish the overall size of the European Parliament in an
enlarged Community.
DECLARATION
ON THE HIERARCHY OF COMMUNITY ACTS
The Conference agrees that the Intergovernmental Conference to be
convened in 1996 will examine to what extent it might be possible to
review the classification of Community acts with a view to establishing
an appropriate hierarchy between the different categories of act.
DECLARATION
ON THE RIGHT OF ACCESS TO INFORMATION
The Conference considers that transparency of the decision-making
process strengthens the democratic nature of the institutions and the
public's confidence in the administration. The Conference accordingly
recommends that the Commission submit to the Council no later than
1993 a report on measures designed to improve public access to the
information available to the institutions.
DECLARATION
ON ESTIMATED COSTS UNDER COMMISSION PROPOSALS
The Conference notes that the Commission undertakes, by basing
itself where appropriate on any consultations it considers necessary
and by strengthening its system for evaluating Community legislation,
to take account in its legislative proposals of costs and benefits to the
Member States' public authorities and all the parties concerned.
DECLARATION
ON THE IMPLEMENTATION OF COMMUNITY LAW
1. The Conference stresses that it is central to the coherence and unity
of the process of European construction that each Member State
should fully and accurately transpose into national law the Community
Directives addressed to it within the deadlines laid down therein.
Moreover, the Conference, while recognizing that it must be for each
Member State to determine how the provisions of Community law can
best be enforced in the light of its own particular institutions, legal
system and other circumstances, but in any event in compliance with
Article 189 of the Treaty establishing the European Community,
considers it essential for the proper functioning of the Community that
the measures taken by the different Member States should result in
Community law being applied with the same effectiveness and rigour
as in the application of their national law.
2. The Conference calls on the Commission to ensure, in exercising its
powers under Article 155 of this Treaty, that Member States fulfill their
obligations. It asks the Commission to publish periodically a full report
for the Member States and the European Parliament.
DECLARATION
ON ASSESSMENT OF THE ENVIRONMENTAL IMPACT OF COMMUNITY
MEASURES
The Conference notes that the Commission undertakes in its
proposals, and that the Member States undertake in implementing
those proposals, to take full account of their environmental impact and
of the principle of sustainable growth.
DECLARATION
ON THE COURT OF AUDITORS
The Conference emphasizes the special importance it attaches to the
task assigned to the Court of Auditors by Articles 188a, 188b, 188c and
206 of the Treaty establishing the European Community.
It requests the other Community institutions to consider, together with
the Court of Auditors, all appropriate ways of enhancing the
effectiveness of its work.
DECLARATION ON THE ECONOMIC AND SOCIAL COMMITTEE
The Conference agrees that the Economic and Social Committee will
enjoy the same independence with regard to its budget and staff
management as the Court Auditors has enjoyed hitherto.
DECLARATION
ON COOPERATION WITH CHARITABLE ASSOCIATIONS
The Conference stresses the importance, in pursuing the objectives of
Article 117 on the Treaty establishing the European Community, of co-
operation between the latter and charitable associations and
foundations as institutions responsible for social welfare
establishments and services.
DECLARATION
ON THE PROTECTION OF ANIMALS
The Conference calls upon the European Parliament, the Council and
the Commission, as well as the Member States, when drafting and
implementing Community legislation on the common agricultural
policy, transport, the internal market and research, to pay full regard to
the welfare requirements of animals.
DECLARATION
ON THE REPRESENTATION OF THE INTERESTS OF THE OVERSEAS
COUNTRIES AND TERRITORIES REFERRED TO IN ARTICLE 227(3)
AND (5)(a) AND (b) OF THE TREATY ESTABLISHING THE EUROPEAN
COMMUNITY
The Conference, noting that in exceptional circumstances divergences
may arise between the interests of the Union and those of the
overseas countries and territories referred to in Article 227(3) and
(5)(a) and (b), agrees that the Council will seek to reach a solution
which accords with the position of the Union. However, in the event
that this proves impossible, the Conference agrees that the Member
State concerned may act separately in the interests of the said
overseas countries and territories, without this affecting the
Community's interests. The Member State concerned will give notice
to the Council and the Commission where such a divergence of
interests is likely to occur and, when separate action proves
unavoidable, make it clear that it is acting in the interests of overseas
territory mentioned above.
This declaration also applies to Macao and East Timor.
DECLARATION
ON THE OUTERMOST REGIONS OF THE COMMUNITY
The Conference acknowledges that the outermost regions of the
Community (the French overseas departments, Azores and Madeira
and Canary Islands) suffer from major structural backwardness
compounded by several phenomena (remoteness, island status, small
size, difficult topography and climate, economic dependence on a few
products), the permanence and combination of which severely restrain
their economic and social development.
It considers that, while the provisions of the Treaty establishing the
European Community and secondary legislation apply automatically to
outermost regions, it is nonetheless possible to adopt specific
measures to assist them inasmuch and as long as there is an
objective need to take such measures with a view to the economic and
social development of those regions. Such measures should have
their aim both the completion of the internal market and a recognition
of the regional reality to enable the outermost regions to achieve the
average economic and social level of the Community.
DECLARATION
ON VOTING IN THE FIELD OF THE COMMON FOREIGN AND SECURITY
POLICY
The Conference agrees that, with regard to Council decisions requiring
unanimity, Member States will, to the extent possible, avoid
preventing a unanimous decision where a qualified majority exists in
favour of that decision.
DECLARATION
ON PRACTICAL ARRANGEMENTS IN THE FIELD OF THE COMMON
FOREIGN AND SECURITY POLICY
The Conference agrees that the division of work between the Political
Committee and the Committee of Permanent Representatives will be
examined at a later stage, as will the practical arrangements for
merging the Political Co-operation Secretariat with the General
Secretariat of the Council and for co-operation between the latter and
the Commission.
DECLARATION ON THE USE OF LANGUAGES IN THE FIELD OF THE
COMMON FOREIGN AND SECURITY POLICY
The Conference agrees that the use of languages shall be in
accordance with the rules of the European Communities.
For COREU communications, the current practice of European political
co-operation will serve as a guide for the time being.
All common foreign and security policy texts which are submitted to or
adopted at meeting of the European Council and of the Council as well
as all texts which are to be published are immediately and
simultaneously translated into all the official Community languages.
DECLARATION
ON WESTERN EUROPEAN UNION
The Conference notes the following declarations:
I. DECLARATION
by Belgium, Germany, Spain, France, Italy, Luxembourg, the
Netherlands, Portugal and the United Kingdom of Great Britain and
Northern Ireland, which are members of the Western European Union
and also members of the European Union on
THE ROLE OF THE WESTERN EUROPEAN UNION AND ITS RELATIONS
WITH THE EUROPEAN UNION AND WITH THE ATLANTIC ALLIANCE
Introduction
1. WEU Member States agree on the need to develop a genuine
European security and defence identity and a greater European
responsibility on defence matters. This identity will be pursued
through a gradual process involving successive phases. WEU will
form an integral part of the process of the development of the
European Union and will enhance its contribution to solidarity within
the Atlantic Alliance. WEU Member States agree to strengthen the role
of WEU, in the longer term perspective of a common defence,
compatible with that of the Atlantic Alliance.
2. WEU will be developed as the defence component of the European
Union and as a means to strengthen the European pillar of the Atlantic
Alliance. To this end, it will formulate common European defence
policy and carry forward its concrete implementation through the
further development of its own operational role.
WEU Member States take note of Article J.4 relating to the common
foreign and security policy of the Treaty on European Union which
reads as follows:
"1. The common foreign and security policy shall include all questions
related to the security of the Union, including the eventual framing of a
common defence policy, which might in time lead to a common
defence.
2. The union requests the Western Union (WEU), which is an integral
part of the development of the Union, to elaborate and implement
decisions and actions of the Union which have defence implications.
The Council shall, in agreement with the institutions of the WEU, adopt
the necessary practical arrangements.
3. Issues having defence implications dealt with under this Article
shall not be subject to the procedures set out in Article J.3.
4. The policy of the Union in accordance with this Article shall not
prejudice the specific character of the security and defence policy of
certain Member States and shall respect the obligations of certain
Member States under the North Atlantic Treaty and be compatible with
the common security and defence policy established within that
framework.
5. The provisions of this Article shall not prevent the development of
closer co-operation between two or more Member States on a bilateral
level, in the framework of the WEU and the Atlantic Alliance, provided
such co-operation does not run counter to or impede that provided for
in this Title.
6. With a view to furthering the objective of this Treaty, and having in
view the date of 1998 in the context of Article XII of the Brussels
Treaty, the provisions of this Article may be revised as provided for in
Article N(2) on the basis of a report to be presented in 1996 by the
Council to the European Council, which shall include an evaluation of
the progress made and the experience gained until then."
A. WEU's relations with European Union
3. The objective is to build up WEU in stages as the defence
component of the European Union. To this end, WEU is prepared, at
the request of the European Union, to elaborate and implement
decisions and actions of the Union which have defence implications.
To this end, WEU will take the following measures to develop a close
working relationship with the Union:
- as appropriate, synchronization of the dates and venues of meetings
and harmonization of working methods;
- establishment of close co-operation between the Council and
Secretariat-General of WEU on the one hand, and the Council of the
Union and General Secretariat of the Council on the other;
- consideration of the harmonization of the sequence and duration of
the respective Presidencies;
- arranging for appropriate modalities so as to ensure that the
Commission of the European Communities is regularly informed and,
as appropriate, consulted on WEU activities in accordance with the
role of the Commission in the common foreign and security policy as
defined in the Treaty on European Union;
- encouragement of closer co-operation between the Parliamentary
Assembly of WEU and the European Parliament.
The WEU Council shall, in agreement with the competent bodies of the
European Union, adopt the necessary practical arrangements.
B. WEU's relations with the Atlantic Alliance
4. The objective is to develop WEU as a means to strengthen the
European pillar of the Atlantic Alliance. Accordingly WEU is prepared
to develop further the close working links between WEU and the
Alliance and to strengthen the role, responsibilities and contributions
of WEU Member States in the Alliance. This will be undertaken on the
basis of the necessary transparency and complementarity between
the emerging European security and defence identity and the Alliance.
WEU will act in conformity with the positions adopted in the Atlantic
Alliance.
- WEU Member States will intensify their co-ordination on Alliance
issues which represent an important common interest with the aim of
introducing joint positions agreed in WEU into the process of
consultation in the Alliance which will remain the essential forum for
consultation among its members and the venue for agreement on
policies bearing on the security and defence commitments of Allies
under the North Atlantic Treaty.
- Where necessary, dates and venues of meetings will be
synchronized and working methods harmonized.
- Close co-operation will be established between the Secretariats-
General of WEU and NATO.
C. Operational role of WEU
5. WEU's operational role will be strengthened by examining and
defining appropriate missions, structures and means, covering in
particular:
-WEU planning cell;
- closer military co-operation complementary to the Alliance in
particular in the fields of logistics, transport, training and strategic
surveillance;
- meetings of WEU Chiefs of Defence Staff;
- military units answerable to WEU.
Other proposals will be examined further including:
- enhanced co-operation in the field of armaments with the aim of
creating a European armaments agency;
-development of the WEU Institute into a European Security and
Defence Academy.
Arrangements aimed at giving WEU a stronger operational role will be
fully compatible with the military dispositions necessary to ensure the
collective defence of all Allies.
D. Other measures
6. As a consequence of the measures set out above, and in order to
facilitate the strengthening of WEU's role, the seat of the WEU Council
and Secretariat will be transferred to Brussels.
7. Representation of the WEU Council must be such that the Council is
able to exercise its functions continuously in accordance with Article
VIII of the modified Brussels Treaty. Member States may draw on a
double-hatting formula, to be worked out, consisting of their
representatives to the Alliance and to the European Union.
8. WEU notes that, in accordance with the provisions of Article J.4(6)
concerning the common foreign and security policy of the Treaty on
European Union, the Union will decide to review the provisions of this
Article with a view to furthering the objective to be set by it in
accordance with the procedure defined. The WEU will re-examine the
present provisions in 1996. This re-examination will take account of
the progress and experience acquired and will extend to relations
between WEU and the Atlantic Alliance.
II. DECLARATION
by Belgium, Germany, Spain, France, Italy, Luxembourg, the
Netherlands, Portugal and the United Kingdom of Great Britain and
Northern Ireland which are members of the Western European Union.
"The Member States of WEU welcome the development of the
European security and defence identity. They are determined, taking
into account the role of WEU as the defence component of the
European Union and as the means to strengthen the European pillar of
the Atlantic Alliance, to put the relationship between WEU and the
other European States on a new basis for the sake of stability and
security in Europe. In this spirit, they propose the following:
States which are members of the European Union are invited to
accede to WEU on conditions to be agreed in accordance with Article
XI of the modified Brussels Treaty, or to become observers if they so
wish. Simultaneously, other European Member States of NATO are
invited to become associate members of WEU in a way which will give
them the possibility of participating fully in the activities of WEU.
The Member States of WEU assume that treaties and agreements
corresponding with the above proposals will be concluded before 31
December 1992."
DECLARATION
ON ASYLUM
1. The Conference agrees that, in the context of the proceedings
provided for in Articles K.1 and K.3 of the provisions on co-operation in
the fields of justice and home affairs, the Council will consider as a
matter of priority questions concerning Member States' asylum
policies, with the aim of adoption by the beginning of 1993, common
action to harmonize aspects of them, in the light of the work
programme and timetable contained in the report on asylum drawn up
at the request of the European Council meeting in Luxembourg on 28
and 29 June 1991.
2. In this connection, the Council will also consider, by the end of
1993, on the basis of a report, the possibility of applying Article K.9 to
such matters.
DECLARATION
ON POLICE CO-OPERATION
The Conference confirms the agreement of the Member States on the
objectives underlying the German delegations's proposals at the
European Council meeting in Luxembourg on 28 and 29 June 1991.
For the present, the Member States agree to examine as a matter of
priority the drafts submitted to them, on the basis of the work
programme and timetable agreed upon in the report drawn up at the
request of the Luxembourg European Council, and they are willing to
envisage the adoption of practical measures in areas such as those
suggested by the German delegation, relating to the following
functions in the exchange of information and experience:
- support for national criminal investigation and security authorities, in
particular in the co-ordination of investigations and search operations;
- creation of data bases;
- central analysis and assessment of information in order to take stock
of the situation and identify investigative approaches;
- collection and analysis of national prevention programmes for
forwarding to Member States and for drawing up Europe-wide
prevention strategies;
- measures relating to further training, research, forensic matters and
criminal records departments.
Member States agree to consider on the basis of a report, during 1994
at the latest, whether the scope of such co-operation should be
extended.
DECLARATION
ON DISPUTES BETWEEN THE ECB AND THE EMI AND THEIR
SERVANTS
The Conference considers it proper that the Court of First Instance
should hear this class of action in accordance with Article 168a of the
Treaty establishing the European Community. The Conference
therefore invites the institutions to adapt the relevant rules
accordingly.
Done at Maastricht on the seventh day of February one thousand nine
hundred and ninety two
[ here follow the signatures ]

MAY1_92
On 1 May 1992, in Guimaraes (Portugal), the High Contracting Parties
to the Treaty on European Union adopted the following Declaration:

DECLARATION OF THE HIGH CONTRACTING PARTIES TO THE TREATY
ON EUROPEAN UNION

The High Contracting Parties to the Treaty on European Union signed
at Maastricht on the seventh day of February 1992,
Having considered the terms of Protocol No 17 to the said Treaty on
European Union which is annexed to that Treaty and to the Treaties
establishing the European Communities, Hereby give the following
legal interpretation:

That it was and is their intention that the Protocol shall not limit
freedom to travel between Member States or, in accordance with
conditions which may be laid down, in conformity with Community law,
by Irish legislation, to obtain or make available in Ireland information
relating to services lawfully available in Member States.

At the same time the High Contracting Parties solemly declare that, in
the event of a future constitutional amendment in Ireland which
concerns the subject matter of Article 40.3.3. of the Constitution of
Ireland and which does not conflict with the intention of the High
Contracting Parties hereinbefore expressed, they will, following the
entry into force of the Treaty on European Union, be favourably
disposed to amending the said Protocol so as to extend its application
to such constitutional amendment if Ireland so requests.

*** End of this LibraryBlog Digital Book "The Treaty of the European Union, Maastricht Treaty, 7th February, 1992" ***

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