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+The Project Gutenberg EBook of The Treaty of the European Union,
+Maastricht Treaty, 7th February, 1992, by European Union
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: The Treaty of the European Union, Maastricht Treaty, 7th February, 1992
+
+Author: European Union
+
+Posting Date: August 16, 2008 [EBook #686]
+Release Date: October, 1996
+
+Language: English
+
+Character set encoding: ASCII
+
+*** START OF THIS PROJECT GUTENBERG EBOOK MAASTRICHT TREATY, 7TH FEBRUARY 1992 ***
+
+
+
+
+Produced by Neil McLachlan
+
+
+
+
+
+
+
+
+
+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 the Project Gutenberg EBook of The Treaty of the European Union,
+Maastricht Treaty, 7th February, 1992, by European Union
+
+*** END OF THIS PROJECT GUTENBERG EBOOK MAASTRICHT TREATY, 7TH FEBRUARY 1992 ***
+
+***** This file should be named 686.txt or 686.zip *****
+This and all associated files of various formats will be found in:
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+The Project Gutenberg Etext of The Treaty of the European Union
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+*END*THE SMALL PRINT! FOR PUBLIC DOMAIN ETEXTS*Ver.04.29.93*END*
+
+
+
+
+
+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 The Project Gutenberg Etext of The Treaty of the European Union
+
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