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Treaty Of Rome
Part One. Principles
Article 1. By this Treaty, the High Contracting Parties establish among
themselves a European Community.
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.
Article 3. For the purposes set out in Article 2, the activities of the
Community shall include, as provided by this Treaty and in accordance
with the timetable set out therein:
(a) the elimination as between Member States, of customs duties and
quantitative 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 100C;
(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 common market is not
distorted;
(h) the approximation of the laws of the 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 promotion 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 cooperation;
(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.
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 coordination 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.
Article 3b. The Community shall act within the limits 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.
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.
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 limits of the powers conferred upon it by this Treaty and
the Statute annexed thereto.
Article 5. Member States shall take all appropriate measures, whether
general or particular, to ensure fulfilment of the obligations arising
out of this Treaty or resulting from action taken by the institutions of
the Community. They shall facilitate the achievement of the Community's
tasks.
They shall abstain from any measure which could jeopardise the attainment
of the objectives of this Treaty.
Article 6. Within the scope of application of this Treaty, and without
prejudice to any special provisions contained therein, any discrimination
on the grounds of nationality shall be prohibited.
The Council, acting in accordance with the procedure referred to in
Article 189c may adopt rules designed to prohibit such discrimination.
Article 7. 1. The common market shall be progressively established during
a transitional period of twelve years.
This transitional period shall be divided into three stages of four years
each; the length of each stage may be altered in accordance with the
provisions set out below.
2. To each stage there shall be assigned a set of actions to be initiated
and carried through concurrently.
3. Transition from the first to the second stage shall be conditional
upon a finding that the objectives specifically laid down in this Treaty
for the first stage have in fact been attained in substance and that,
subject to the exceptions and procedures provided for in this Treaty, the
obligations have been fulfilled.
This finding shall be made at the end of the fourth year by the Council,
acting unanimously on a report from the Commission. A Member State may
not, however, prevent unanimity by relying upon the non-fulfilment of its
own obligations. Failing unanimity, the first stage shall automatically
be extended for one year.
At the end of the fifth year, the Council shall make its finding under
the same conditions. Failing unanimity, the first stage shall
automatically be extended for a further year.
At the end of the sixth year, the Council shall make its finding, acting
by a qualified majority on a report from the Commission.
4. Within one month of the last-mentioned vote any Member State which
voted with the minority or, if the required majority was not obtained,
any Member State shall be entitled to call upon the Council to appoint an
arbitration board whose decision shall be binding upon all Member States
and upon the institutions of the Community. The arbitration board shall
consist of three members appointed by the Council acting unanimously on a
proposal from the Commission.
If the Council has not appointed the members of the arbitration board
within one month of being called upon to do so, they shall be appointed
by the Court of Justice within a further period of one month.
The arbitration board shall elect its own Chairman.
The board shall make its award within six months of the date of the
Council vote referred to in the last subparagraph of paragraph 3.
5. The second and third stages may not be extended or curtailed except by
a decision of the Council, acting unanimously on a proposal from the
Commission.
6. Nothing in the preceding paragraphs shall cause the transitional
period to last more than fifteen years after the entry into force of this
Treaty.
7. Save for the exceptions or derogations provided for in this Treaty,
the expiry of the transitional period shall constitute the latest date by
which all the rules laid down must enter into force and all the measures
required for establishing the common market must be implemented.
Article 7a. The Community shall adopt measures with the aim of
progressively establishing the internal market over a period expiring on
31 December 1992, in accordance with the provisions of this Article and
of Articles 8b, 8c, 28, 57(2), 59, 70(1), 84, 99, 100a and 100b and
without prejudice to the other provisions of this Treaty.
The internal market shall comprise an area without internal frontiers in
which the free movement of goods, persons, services and capital is
ensured in accordance with the provisions of this Treaty.
Article 7b. The Commission shall report to the Council before 31 December
1988 and again before 31 December 1990 on the progress made towards
achieving the internal market within the time limit fixed in Article 8a.
The Council, acting by a qualified majority on a proposal from the
Commission, shall determine the guidelines and conditions necessary to
ensure balanced progress in all the sectors concerned.
Article 7c. When drawing up its proposals with a view to achieving the
objectives set out in Article 8a, the Commission shall take into account
the extent of the effort that certain economies showing differences in
developments will have to sustain during the period of establishment of
the internal market and it may propose appropriate provisions.
If these provisions take the form of derogations, they must be of a
temporary nature and must cause the least possible disturbance to the
functioning of the common market.
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 l; save as otherwise
provided in this Treaty, the Council shall act unanimously on a proposal
from the Commission and 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 138(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.
Part Three. Community Policies
TITLE I. FREE MOVEMENT OF GOODS
Article 9. 1. The Community shall be based upon a customs union which
shall cover all trade in goods and which shall involve the prohibition
between Member States of customs duties on imports and exports and of all
charges having equivalent effect, and the adoption of a common customs
tariff in their relations with third countries.
2. The provisions of Chapter 1, Section 1, and of Chapter 2 of this Title
shall apply to products originating in Member States and to products
coming from third countries which are in free circulation in Member
States.
Article 10. 1. Products coming from a third country shall be considered
to be in free circulation in a Member State if the import formalities
have been complied with and any customs duties or charges having
equivalent effect which are payable have been levied in that Member
State, and if they have not benefited from a total or partial drawback of
such duties or charges.
2. The Commission shall, before the end of the first year after the entry
into force of this Treaty, determine the methods of administrative
co-operation to be adopted for the purpose of applying Art. 9(2), taking
into account the need to reduce as much as possible formalities imposed
on trade.
Before the end of the first year after the entry into force of this
Treaty, the Commission shall lay down the provisions applicable, as
regards trade between Member States, to goods originating in another
Member State in whose manufacture products have been used on which the
exporting Member State has not levied the appropriate customs duties or
charges having equivalent effect, or which have benefited from a total or
partial drawback of such duties or charges.
In adopting these provisions, the Commission shall take into account the
rules for the elimination of customs duties within the Community and for
the progressive application of the common customs tariff.
Article 11. Member States shall take all appropriate measures to enable
Governments to carry out, within the periods of time laid down, the
obligations with regard to customs duties which devolve upon them
pursuant to this Treaty.
CHAPTER 1. THE CUSTOMS UNION
Section 1. Elimination of Customs Duties Between Member States
Article 12. Member States shall refrain from introducing between
themselves any new customs duties on imports or exports or any charges
having equivalent effect, and from increasing those which they already
apply in their trade with each other.
Article 13. 1. Customs duties on imports in force between Member States
shall be progressively abolished by them during the transitional period
in accordance with Arts. 14 and 15.
2. Charges having an effect equivalent to customs duties on imports, in
force between Member States, shall be progressively abolished by them
during the transitional period. The Commission shall determine by means
of directives the timetable for such abolition. It shall be guided by the
rules contained in Art. 14(2) and (3) and by the directives issued by the
Council pursuant to Art. 14(2).
Article 14. 1. For each product, the basic duty to which the successive
reductions shall be applied shall be the duty applied on I January 1957.
2. The timetable for the reductions shall be determined as follows:
(a) during the first stage, the first reduction shall be made one year
after the date when this Treaty enters into force; the second
reduction, eighteen months later; the third reduction, at the end
of the fourth year after the date when this Treaty enters into
force;
(b) during the second stage, a reduction shall be made eighteen months
after that stage begins; a second reduction, eighteen months after
the preceding one; a third reduction, one year later;
(c) any remaining reductions shall be made during the third stage; the
Council shall, acting by a qualified majority on a proposal from
the Commission, determine the timetable therefore by means of
directives.
3. At the time of the first reduction, Member States shall introduce
between themselves a duty on each product equal to the basic duty minus
10 per cent.
At the time of each subsequent reduction, each Member State shall reduce
its customs duties as a whole in such manner as to lower by lo per cent
its total customs receipts as defined in paragraph 43 and to reduce the
duty on each product by at least 5 per cent of the basic duty.
In the case, however, of products on which the duty is still in excess of
30 per cent, each reduction must be at least lo per cent of the basic
duty.
4. The total customs receipts of each Member State, as referred to in
paragraph 3, shall be calculated by multiplying the value of imports from
other Member States during 1956 by the basic duties.
5. Any special problems raised in applying paragraphs 1 to 4 shall be
settled by directives issued by the Council acting by a qualified
majority on a proposal from the Commission.
6. Member States shall report to the Commission on the manner in which
effect has been given to the preceding rules for the reduction of duties.
They shall endeavour to ensure that the reduction made in the duties of
each product shall amount:
- at the end of the first stage, to at least 25 per cent of the basic
duty;
- at the end of the second stage, to at least 50 per cent of the
basic duty.
If the Commission finds that there is a risk that the objectives laid
down in Art. 13, and the percentages laid down in this paragraph, cannot
be attained, it shall make all appropriate recommendations to Member
States.
7. The provisions of this Article may be amended by the Council, acting
unanimously on a proposal from the Commission and after consulting the
European Parliament.
Article 15. 1. Irrespective of the provisions of Art. 14, any Member
State may, in the course of the transitional period, suspend in whole or
in part the collection of duties applied by it to products imported from
other Member States. It shall inform the other Member States and the
Commission thereof.
2. The Member States declare their readiness to reduce customs duties
against the other Member States more rapidly than is provided for in Art.
14 if their general economic situation and the situation of the economic
sector concerned so permit.
To this end, the Commission shall make recommendations to the Member
States concerned.
Article 16. Member States shall abolish between themselves customs duties
on exports and charges having equivalent effect by the end of the first
stage at the latest.
Article 17. 1. The provisions of Arts. 9 to 15 (1) shall also apply to
customs duties of a fiscal nature. Such duties shall not, however, be
taken into consideration for the purpose of calculating either total
customs receipts or the reduction of customs duties as a whole as
referred to in Art. 14 (3) and (4).
Such duties shall, at each reduction, be lowered by not less than lo per
cent of the basic duty. Member States may reduce such duties more rapidly
than is provided for in Art. 14.
2. Member States shall, before the end of the first year after the entry
into force of this Treaty, inform the Commission of their customs duties
of a fiscal nature.
3. Member States shall retain the right to substitute for these duties an
internal tax which complies with the provisions of Art. 95.
4. If the Commission finds that substitution for any customs duty of a
fiscal nature meets with serious difficulties in a Member State, it shall
authorise that State to retain the duty on condition that it shall
abolish it not later than six years after the entry into force of this
Treaty. Such authorisation must be applied for before the end of the
first year after the entry into force of this Treaty.
Section 2. Setting up of the Common Customs Tariff
Article 18. The Member States declare their readiness to contribute to
the development of international trade and the lowering of barriers to
trade by entering into agreements designed, on a basis of reciprocity and
mutual advantage, to reduce customs duties below the general level of
which they could avail themselves as a result of the establishment of a
customs union between them.
Article 19. 1. Subject to the conditions and within the limits provided
for hereinafter, duties in the common customs tariff shall be at the
level of the arithmetical average of the duties applied in the four
customs territories comprised in the Community.
2. The duties taken as the basis for calculating this average shall be
those applied by Member States on I January 1957.
In the case of the Italian tariff, however, the duty applied shall be
that without the temporary lo per cent reduction. Furthermore, with
respect to items on which the Italian tariff contains a conventional
duty, this duty shall be substituted for the duty applied as defined
above, provided that it does not exceed the latter by more than lo per
cent. Where the conventional duty exceeds the duty applied as defined
above by more than lo per cent, the latter duty plus lo per cent shall be
taken as the basis for calculating the arithmetical average.
With regard to the tariff headings in List A, the duties shown in that
List shall, for the purpose of calculating the arithmetical average, be
substituted for the duties applied.
3. The duties in the common customs tariff shall not exceed:
(a) 3 per cent for products within the tariff headings in List B
(b) 10 per cent for products within the tariff headings in List C;
(c) 15 per cent for products within the tariff headings in List D;
(d) 25 per cent for products within the tariff headings in List E;
where, in respect of such products, the tariff of the Benelux
countries contains a duty not exceeding 3 per cent, such duty
shall, for the purpose of calculating the arithmetical average, be
raised to 12 per cent.
4. List F prescribes the duties applicable to the products listed
therein.
5. The Lists of tariff headings referred to in this Article and in Art.
20 are set out in Annex I to this Treaty.
Article 20. The duties applicable to the products in List G shall be
determined by negotiation between the Member States. Each Member
State may add further products to this List to a value not exceeding 2
per cent of the total value of its imports from third countries in the course of
the year 1956.
The Commission shall take all appropriate steps to ensure that such
negotiations shall be undertaken before the end of the second year after
the entry into force of this Treaty and be concluded before the end of
the first stage.
If, for certain products, no agreement can be reached within these
periods, the Council shall, on a proposal from the Commission, acting
unanimously until the end of the second stage and by a qualified majority
thereafter, determine the duties in the common customs tariff.
Article 21. 1. Technical difficulties which may arise in applying Arts.
Ig and 20 shall be resolved, within two years of the entry into force of
this Treaty, by directives issued by the Council acting by a qualified
majority on a proposal from the Commission.
2. Before the end of the first stage, or at latest when the duties are
determined, the Council shall, acting by a qualified majority on a
proposal from the Commission, decide on any adjustments required in the
interests of the internal consistency of the common customs tariff as a
result of applying the rules set out in Arts. Ig and 20, taking into
account in particular of the degree of processing undergone by various
goods to which the common tariff applies.
Article 22. The Commission shall, within two years of the entry into
force of this Treaty, determine the extent to which the customs duties of
a fiscal nature referred to in Art. 17 (2) shall be taken into account in
calculating the arithmetical average provided for in Art. 19 (1). The
Commission shall take account of any protective character which such
duties may have.
Within six months of such determination, any Member State may request
that the procedure provided for in Art. 20 should be applied to the
product in question, but in this event the percentage limit provided in
that Article shall not be applicable to that State.
Article 23. 1. For the purpose of the progressive introduction of the
common customs tariff, Member States shall amend their tariffs applicable
to third countries as follows:
(a) in the case of tariff headings on which the duties applied in
practice on 1 January 1957 do not differ by more than 15 per cent
in either direction from the duties in the common customs tariff,
the latter duties shall be applied at the end of the fourth year
after the entry into force of this Treaty;
(b) in any other case, each Member State shall, as from the same date,
apply a duty reducing by 30 per cent the difference between the
duty applied in practice on 1 January 1957 and the duty in the
common customs tariff;
(c) at the end of the second stage this difference shall again be
reduced by 30 per cent;
(d) in the case of tariff headings for which the duties in the common
customs tariff are not yet available at the end of the first stage,
each Member State shall, within six months of the Council's action
in accordance with Art. 20, apply such duties as would result from
application of the rules contained in this paragraph.
2. Where a Member State has been granted an authorisation under Art. 17
(4), it need not, for as long as that authorisation remains valid, apply
the preceding provisions to the tariff headings to which the
authorisation applies. When such authorisation expires, the Member State
concerned shall apply such duty as would have resulted from application
of the rules contained in paragraph 1.
3. The common customs tariff shall be applied in its entirety by the end
of the transitional period at the latest.
Article 24. Member States shall remain free to change their duties more
rapidly than is provided for in Art. 23 in order to bring them into line
with the common customs tariff.
Article 25. 1. If the Commission finds that the production in Member
States of particular products contained in Lists B, C and D is
insufficient to supply the demands of one of the Member States, and that
such supply traditionally depends to a considerable extent on imports
from third countries, the Council shall, acting by a qualified majority
on a proposal from the Commission, grant the Member State concerned
tariff quotas at a reduced rate of duty or duty free.
Such quotas may not exceed the limits beyond which the risk might arise
of activities being transferred to the detriment of other Member States.
2. In the case of the products in List E, and of those in List G for
which the rates of duty have been determined in accordance with the
procedure provided for in the third paragraph of Art. 20, the Commission
shall, where a change in sources of supply or a shortage of supplies
within the Community is such as to entail harmful consequences for the
processing industries of a Member State, at the request of that Member
State, grant it tariff quotas at a reduced rate of duty or duty free.
Such quotas may not exceed the limits beyond which the risk might arise
of activities being transferred to the detriment of other Member States.
3. In the case of the products listed in Annex II to this Treaty, the
Commission may authorise any Member State to suspend, in whole or in
part, collection of the duties applicable or may grant such Member State
tariff quotas at a reduced rate of duty or duty free, provided that no
serious disturbance of the market or the products concerned results
therefrom.
4. The Commission shall periodically examine tariff quotas granted
pursuant to this Article.
Article 26. The Commission may authorise any Member State encountering
special difficulties to postpone the lowering or raising of duties
provided for in Art. 23 in respect of particular headings in its tariff.
Such authorisation may only be granted for a limited period and in
respect of tariff headings which, taken together, represent for such
State not more than 5 per cent of the value of its imports from third
countries in the course of the latest year for which statistical data are
available.
Article 27. Before the end of the first stage, Member States shall, in so
far as may be necessary, take steps to approximate their provisions laid
down by law, regulation or administrative action in respect of customs
matters. To this end, the Commission shall make all appropriate
recommendations to Member States.
Article 28. Any autonomous alteration or suspension of duties in the
common customs tariff shall be decided by the Council, acting by a
qualified majority on a proposal from the Commission.
Article 29. In carrying out the tasks entrusted to it under this Section
the Commission shall be guided by:
(a) the need to promote trade between Member States and third
countries;
(b) developments in conditions of competition within the Community in
so far as they lead to an improvement in the competitive capacity
of undertakings;
(c) the requirements of the Community as regards the supply of raw
materials and semi-finished goods; in this connection the
Commission shall take care to avoid distorting conditions of
competition between Member States in respect of finished goods;
(d) the need to avoid serious disturbances in the economies of Member
States and to ensure rational development of production and an
expansion of consumption within the Community.
CHAPTER 2. ELIMINATION OF QUANTITATIVE RESTRICTIONS BETWEEN MEMBER STATES
Article 30. Quantitative restrictions on imports and all measures having
equivalent effect shall, without prejudice to the following provisions,
be prohibited between Member States.
Article 31. Member States shall refrain from introducing between
themselves any new quantitative restrictions or measures having
equivalent effect.
This obligation shall, however, relate only to the degree of
liberalisation attained in pursuance of the decisions of the Council of
the Organisation for European Economic Co-operation of 14 January 1955.
Member States shall supply the Commission, not later than six months
after the entry into force of this Treaty, with lists of the products
liberalised by them in pursuance of these decisions. These lists shall be
consolidated between Member States.
Article 32. In their trade with one another Member States shall refrain
from making more restrictive the quotas and measures having equivalent
effect existing at the date of the entry into force of this Treaty.
These quotas shall be abolished by the end of the transitional period at
the latest. During that period, they shall be progressively abolished in
accordance with the following provisions.
Article 33. 1. One year after the entry into force of this Treaty, each
Member State shall convert any bilateral quotas open to any other Member
States into global quotas open without discrimination to all other Member
States.
On the same date, Member States shall increase the aggregate of the
global quotas so established in such a manner as to bring about an
increase of not less than 20 per cent in their total value as compared
with the preceding year. The global quota for each product, however,
shall be increased by not less than 10 per cent.
The quotas shall be increased annually in accordance with the same rules
and in the same proportions in relation to the preceding year.
The fourth increase shall take place at the end of the fourth year after
the entry into force of this Treaty; the fifth, one year after the
beginning of the second stage.
2. Where, in the case of a product which has not been liberalised, the
global quota does not amount to 3 per cent of the national production of
the State concerned, a quota equal to not less than 3 per cent of such
national production shall be introduced not later than one year after the
entry into force of this Treaty. This quota shall be raised to 4 per cent
at the end of the second year, and to 5 per cent at the end of the third.
Thereafter, the Member State concerned shall increase the quota by not
less than 15 per cent annually.
Where there is no such national production, the Commission shall take a
decision establishing an appropriate quota.
3. At the end of the tenth year, each quota shall be equal to not less
than 20 per cent of the national production.
4. If the Commission finds by means of a decision that during two
successive years the imports of any product have been below the level of
the quota opened, this global quota shall not be taken into account in
calculating the total value of the global quotas. In such case, the
Member State shall abolish quota restrictions on the product concerned.
5. In the case of quotas representing more than 20 per cent of the
national production of the product concerned, the Council may, acting by
a qualified majority on a proposal from the Commission, reduce the
minimum percentage of 10 per cent laid down in paragraph 1. This
alteration shall not however, affect the obligation to increase the total
value of global quotas by 20 per cent annually.
6. Member States which have exceeded their obligations as regards the
degree of liberalisation attained in pursuanCe of the decisions of the
Council of the Organisation for European Economic Co-operation of 14
January 1955 shall be entitled, when calculating the annual total
increase of 20 per cent provided for in paragraph 1, to take into account
the amount of imports liberalised by autonomous action. Such calculation
shall be submitted to the Commission for its prior approval.
7. The Commission shall issue directives establishing the procedure and
timetable in accordance with which Member States shall abolish, as
between themselves, any measures in existence when this Treaty enters
into force which have an effect equivalent to quotas.
8. If the Commission finds that the application of the provisions of this
Article, and in particular of the provisions concerning percentages,
makes it impossible to ensure that the abolition of quotas provided for
in the second paragraph of Art. 32 is carried out progressively, the
Council may, on a proposal from the Commission, acting unanimously
during the first stage and by a qualified majority thereafter, amend the
procedure laid down in this Article and may, in particular, increase the
percentages fixed.
Article 34. 1. Quantitative restrictions on exports, and all measures
having equivalent effect, shall be prohibited between Member States.
2. Member States shall, by the end of the first stage at the latest,
abolish all quantitative restrictions on exports and any measures having
equivalent effect which are in existence when this Treaty enters into
force.
Article 35. The Member States declare their readiness to abolish
quantitative restrictions on imports from and exports to other Member
States more rapidly than is provided for in the preceding Articles, if
their general economic situation of the economic sector concerned so
permit.
To this end, the Commission shall make recommendations to the States
concerned.
Article 36. The provisions of Arts. 30 to 34 shall not preclude
prohibitions or restrictions on imports, exports or goods in transit
justified on grounds of public morality, public policy or public
security; the protection of health and life of humans, animals or plants;
the protection of national treasures possessing artistic, historic or
archaeological value; or the protection of industrial and commercial
property. Such prohibitions or restrictions shall not, however,
constitute a means of arbitrary discrimination or a disguised restriction
on trade between Member States.
Article 37. 1. Member States shall progressively adjust any State
monopolies of a commercial character so as to ensure that when the
transitional period has ended no discrimination regarding the conditions
under which goods are procured and marketed exists between nationals of
Member States.
The provisions of this Article shall apply to any body through which a
Member State, in law or in fact, either directly or indirectly
supervises, determines or appreciably influences imports or exports
between Member States. These provisions shall likewise apply to
monopolies delegated by the State to others.
2. Member States shall refrain from introducing any new measure which is
contrary to the principles laid down in paragraph I or which restricts
the scope of the Articles dealing with the abolition of customs duties
and quantitative restrictions between Member States.
3. The timetable for the measures referred to in paragraph I shall be
harmonised with the abolition of quantitative restrictions on the same
products provided for in Arts. 30 to 34.
If a product is subject to a State monopoly of a commercial character in
only one or some Member States, the Commission may authorise the other
Member States to apply protective measures until the adjustment provided
for in paragraph 1 has been effected; the Commission shall determine the
conditions and details of such measures.
4. If a State monopoly of a commercial character has rules which are
designed to make it easier to dispose of agricultural products or obtain
for them the best return, steps should be taken in applying the rules
contained in this Article to ensure equivalent safeguards for the
employment and standard of living of the producers concerned, account
being taken of the adjustments that will be possible and the
specialisation that will be needed with the passage of time.
5. The obligations on Member States shall be binding only in so far as
they are compatible with existing international agreements.
6. With effect from the first stage the Commission shall make
recommendations as to the manner in which and the timetable according to
which the adjustment provided for in this Article shall be carried out.
TITLE II. AGRICULTURE
Article 38. 1. The common market shall extend to agriculture and trade in
agricultural products. 'Agricultural products' means the products of the
soil, of stock-farming and of fisheries and products of first-stage
processing directly related to these products.
2. Save as otherwise provided in Arts. 39 to 46, the rules laid down for
the establishment of the common market shall apply to agricultural
products.
3. The products subject to the provisions of Arts. 39 to 46 are listed in
Annex II to this Treaty. Within two years of the entry into force of this
Treaty, however, the Council shall, acting by a qualified majority on a
proposal from the Commission, decide what products are to be added to
this list.
4. The operation and development of the common market for agricultural
products must be accompanied by the establishment of a common
agricultural policy among the Member States.
Article 39. 1. The objectives of the common agricultural policy shall be:
(a) to increase agricultural productivity by promoting technical
progress and by ensuring the rational development of agricultural
production and the optimum utilisation of the factors of
production, in particular labour;
(b) thus to ensure a fair standard of living for the agricultural
community, in particular by increasing the individual earnings of
persons engaged in agriculture;
(c) to stabilise markets;
(d) to assure the availability of supplies;
(e) to ensure that supplies reach consumers at reasonable prices.
2. In working out the common agricultural policy and the special methods
for its application, account shall be taken of:
(a) the particular nature of agricultural activity, which results from
the social structure of agriculture and from structural and natural
disparities between the various agricultural regions;
(b) the need to effect the appropriate adjustments by degrees;
(c) the fact that in the Member States agriculture constitutes a sector
closely linked with the economy as a whole.
Article 40. 1. Member States shall develop the common agricultural policy
by degrees during the transitional period and shall bring it into force
by the end of that period at the latest.
2. In order to attain the objectives set out in Art. 39 a common
organisation of agricultural markets shall be established.
This organisation shall take one of the following forms, depending on the
product concerned;
(a) common rules on competition;
(b) compulsory co-ordination of the various national market
organisations;
(c) a European market organisation.
3. The common organisation established in accordance with paragraph 2
may include all measures required to attain the objectives set out in Art.
39, in particular regulation of prices, aids for the production and
marketing of the various products, storage and carry-over arrangements
and common machinery for stabilising imports or exports.
The common organisation shall be limited to pursuit of the objectives set
out in Art. 39 and shall exclude any discrimination between producers or
consumers within the Community.
Any common price policy shall be based on common criteria and uniform
methods of calculation.
4. In order to enable the common organisation referred to in paragraph 2
to attain its objectives, one or more agricultural guidance and guarantee
funds may be set up.
Article 41. To enable the objectives set out in Art. 39 to be attained,
provision may be made within the framework of the common agricultural
policy for measures such as:
(a) an effective co-ordination of efforts in the spheres of vocational
training, of research and of the dissemination of agricultural
knowledge; this may include joint financing of projects or
institutions;
(b) joint measures to promote consumption of certain products.
Article 42. The provisions of the Chapter relating to rules on
competition shall apply to production of and trade in agricultural
products only to the extent determined by the Council within the
framework of Art. 43 (2) and (3) and in accordance with the procedure
laid down therein, account being taken of the objectives set out in Art.
39.
The Council may, in particular, authorise the granting of aid:
(a) for the protection of enterprises handicapped by structural or
natural conditions;
(b) within the framework of economic development programmes.
Article 43. 1. In order to evolve the broad lines of a common
agricultural policy, the Commission shall, immediately this Treaty enters
into force, convene a conference of the Member States with a view to
making a comparison of their agricultural policies, in particular by
producing a statement of their resources and needs.
2. Having taken into account the work of the conference provided for in
paragraph 1, after consulting the Economic and Social Committee and
within two years of the entry into force of this Treaty, the Commission
shall submit proposals for working out and implementing the common
agricultural policy, including the replacement of the national
organisations by one of the forms of common organisation provided for in
Art. 40 (2), and for implementing the measures specified in this Title.
These proposals shall take account of the interdependence of the
agricultural matters mentioned in this Title.
The Council shall, on a proposal from the Commission and after consulting
the European Parliament, acting unanimously during the first two stages
and by a qualified majority thereafter, make regulations, issue
directives, or take decisions, without prejudice to any recommendations
it may also make.
3. The Council may, acting by a qualified majority and in accordance with
paragraph 2, replace the national market organisations by the common
organisation provided for in Art. 40 (2) if:
(a) the common organisation offers Member States which are opposed to
this measure and which have an organisation of their own for the
production in question equivalent safeguards for the employment and
standard of living of the producers concerned, account being taken
of the adjustments that will be possible and the specialisation
that will be needed with the passage of time;
(b) such an organisation ensures conditions for trade within the
Community similar to those existing in a national market.
4. If a common organisation for certain raw materials is established
before a common organisation exists for the corresponding processed
products, such raw materials as are used for processed products intended
for export to third countries may be imported from outside the Community.
Article 44. 1. In so far as progressive abolition of customs duties and
quantitative restrictions, between Member States may result in prices
likely to jeopardise the attainment of the objectives set out in Art. 39,
each Member State shall, during the transitional period, be entitled to
apply to particular products, in a non-discriminatory manner and in
substitution for quotas and to such an extent as shall not impede the
expansion of the volume of trade provided for in Art. 45 (2), a system of
minimum prices below which imports may be either:
-- temporarily suspended or reduced; or
-- allowed, but subjected to the condition that they are made at a
price higher than the minimum price for the product concerned.
In the latter case the minimum prices shall not include customs duties.
2. Minimum prices shall neither cause a reduction of the trade existing
between Member States when this Treaty enters into force nor form an
obstacle to progressive expansion of this trade. Minimum prices shall not
be applied so as to form an obstacle to the development of a natural
preference between Member States.
3. As soon as this Treaty enters into force the Council shall, on a
proposal from the Commission, determine objective criteria for the
establishment of minimum price systems and for the fixing of such prices.
These criteria shall in particular take account of the average national
production costs in the Member State applying the minimum price, of the
position of the various undertakings concerned in relation to such
average production costs, and of the need to promote both the progressive
improvement of agricultural practice and the adjustments and
specialisation needed within the common market.
The Commission shall further propose a procedure for revising these
criteria in order to allow for and speed up technical progress and to
approximate prices progressively within the common market.
These criteria and the procedure for revising them shall be determined by
the Council acting unanimously within three years of the entry into force
of this Treaty.
4. Until the decision of the Council takes effect, Member States may fix
minimum prices on condition that these are communicated before hand to
the Commission and to the other Member States so that they may submit
their comments.
Once the Council has taken its decision, Member States shall fix minimum
prices on the basis of the criteria determined as above.
The Council may, acting by a qualified majority on a proposal from the
Commission, rectify any decisions taken by Member States which do not
conform to the criteria defined above.
5. If it does not prove possible to determine the said objective criteria
for certain products by the beginning of the third stage, the Council
may, acting by a qualified majority on a proposal from the Commission,
vary the minimum prices applied to these products.
6. At the end of the transitional period, a table of minimum prices still
in force shall be drawn up. The Council shall, acting on a proposal from
the Commission and by a majority of nine votes in accordance with the
weighting laid down in the first subparagraph of Art. 148 (2), determine
the system to be applied within the framework of the common agricultural
policy.
Article 45. 1. Until national market organisations have been replaced by
one of the forms of common organisation referred to in Art. 40 (2), trade
in products in respect of which certain Member States:
- have arrangements designed to guarantee national producers a market
for their products; and
- are in need of imports,
shall be developed by the conclusion of long-term agreements or contracts
between importing and exporting Member States.
These agreements or contracts shall be directed towards the progressive
abolition of any discrimination in the application of these arrangements
to the various producers within the Community.
Such agreements or contracts shall be concluded during the first account
shall be taken of the principle of reciprocity.
2. As regards quantities, these agreements or contracts shall be based on
the average volume of trade between Member States in the products concern
ed during the three years before the entry into force of this Treaty and
shall provide for an increase in the volume of trade within the limits of
existing requirements, account being taken of traditional patterns of
trade.
As regards prices, these agreements or contracts shall enable producers
to dispose of the agreed quantities at prices which shall be
progressively approximated to those paid to national producers on the
domestic market of the purchasing country.
This approximation shall proceed as steadily as possible and shall be
completed by the end of the transitional period at the latest.
Prices shall be negotiated between the parties concerned within the
framework of directives issued by the Commission for the purpose of
implementing the two preceding subparagraphs.
If the first stage is extended, these agreements or contracts shall
continue to be carried out in accordance with the conditions applicable
at the end of the fourth year after the entry into force of this Treaty,
the obligation to increase quantities and to approximate prices being
suspended until the transition to the second stage.
Member States shall avail themselves of any opportunity open to them
under their legislation, particularly in respect of import policy, to
ensure the conclusion and carrying out of these agreements or contracts.
3. To the extent that Member States require raw materials for the manufac
ture of products to be exported outside the Community in competition with
products of third countries, the above agreements or contracts shall not
form an obstacle to the importation of raw materials for this purpose
from third countries. This provision shall not, however, apply if the
Council unanimously decides to make provision for payments required to
compensate for the higher price paid on goods imported for this purpose
on the basis of these agreements or contracts in relation to the
delivered price of the same goods purchased on the world market.
Article 46. Where in a Member State a product is subject to a national
market organisation or to internal rules having equivalent effect which
affect the competitive position of similar production in another Member
State, a countervailing charge shall be applied by Member States to
imports of this product coming from the Member State where such
organisations or rules exist, unless that State applies a countervailing
charge on export.
The Commission shall fix the amount of these charges at the level require
d to redress the balance; it may also authorise other measures, the
conditions and details of which it shall determine.
Article 47. As to the functions to be performed by the Economic and
Social Committee in pursuance of this Title, its agricultural section
shall hold itself at the disposal of the Commission to prepare, in
accordance with the provisions of Arts. 197 and 198, the deliberations of
the Committee.
TITLE III. FREE MOVEMENT OF PERSONS, SERVICES
AND CAPITAL
CHAPTER 1. WORKERS
Article 48. 1. Freedom of movement for workers shall be secured within
the Community by the end of the transitional period at the latest.
2. Such freedom of movement shall entail the abolition of any
discrimination based on nationality between workers of the Member States
as regards employment, remuneration and other conditions of work and
employment.
3. It shall entail the right, subject to limitations justified on grounds
of public policy, public security or public health:
(a) to accept offers of employment actually made;
(b) to move freely within the territory of Member States for this
purpose;
(c) to stay in a Member State for the purpose of employment in
accordance with the provisions governing the employment of
nationals of that State laid down by law, regulation or
administrative action;
(d) to remain in the territory of a Member State after having been
employed in that State, subject to conditions which shall be
embodied in implementing regulations to be drawn up by the
Commission.
4. The provisions of this Article shall not apply to employment in the
public service.
Article 49. 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:
(a) by ensuring close co-operation between national employment
services;
(b) by systematically and progressively abolishing those administrative
procedures and practices and those qualifying periods in respect of
eligibility for available employment, whether resulting from
national legislation or from agreements previously concluded
between Member States, the maintenance of which would form an
obstacle to liberalisation of the movement of workers;
(c) by systematically and progressively abolishing all such qualifying
periods and other restrictions provided for either under national
legislation or under agreements previously concluded between Member
States as impose on workers of other Member States conditions
regarding the free choice of employment other than those imposed on
workers of the State concerned;
(d) by setting up appropriate machinery to bring offers of employment
into touch with applications for employment and to facilitate the
achievement of a balance between supply and demand in the
employment market in such a way as to avoid serious threats to the
standard of living and level of employment in the various regions
and industries.
Article 50. Member States shall, within the framework of a joint
programme, encourage the exchange of young workers.
Article 51. The Council shall, acting unanimously on a proposal from the
Commission, adopt such measures in the field of social security as are
necessary to provide freedom of movement for workers; to this end, it
shall make arrangements to secure for migrant workers and their
dependants:
(a) aggregation, for the purpose of acquiring and retaining the right
to benefit and of calculating the amount of benefit, of all periods
taken into account under the laws of the several countries;
(b) payment of benefits to persons resident in the territories of
Member States.
CHAPTER 2. RIGHT OF ESTABLISHMENT
Article 52. Within the framework of the provisions set out below,
restrictions on the freedom of establishment of nationals of a Member
State in the territory of another Member State shall be abolished by
progressive stages in the course of the transitional period. Such
progressive abolition shall also apply to restrictions on the setting up
of agencies, branches, or subsidiaries by nationals of any Member State
established in the territory of any Member State.
Freedom of establishment shall include the right to take up and pursue
activities as self-employed persons and to set up and manage
undertakings, in particular companies or firms within the meaning of the
second paragraph of Art. 58, under the conditions laid down for its own
nationals by the law of the country where such establishment is effected,
subject to the provisions of the Chapter relating to capital.
Article 53. Member States shall not introduce any new restrictions on the
right of establishment in their territories of nationals of other Member
States, save as otherwise provided in this Treaty.
Article 54. 1. Before the end of the first stage, the Council shall,
acting unanimously on a proposal from the Commission and after consulting
the Economic and Social Committee and the European Parliament, draw up a
general programme for the abolition of existing restrictions on freedom
of establishment within the Community. The Commission shall submit its
proposal to the Council during the first two years of the first stage.
The programme shall set out the general conditions under which freedom of
establishment is to be attained in the case of each type of activity and
in particular the stages by which it is to be attained.
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.
3. The Council and the Commission shall carry out the duties devolving
upon them under the preceding provisions, in particular:
(a) by according, as a general rule, priority treatment to activities
where freedom of establishment makes a particularly valuable
contribution to the development of production and trade;
(b) by ensuring close co-operation between the competent authorities in
the Member States in order to ascertain the particular situation
within the Community of the various activities concerned;
(c) by abolishing those administrative procedures and practices,
whether resulting from national legislation or from agreements
previously concluded between Member States, the maintenance of
which would form an obstacle to freedom of establishment;
(d) by ensuring that workers of one Member State employed in the
territory of another Member State may remain in that territory for
the purpose of taking up activities therein as self-employed
persons, where they satisfy the conditions which they would be
required to satisfy if they were entering that State at the time
when they intended to take up such activities;
(e) by enabling a national of one Member State to acquire and use land
and buildings situated in the territory of another Member State, in
so far as this does not conflict with the principles laid down in
Art. 39 (2);
(f) by effecting the progressive abolition of restrictions on freedom
of establishment in every branch of activity under consideration,
both as regards the conditions for setting up agencies, branches or
subsidiaries in the territory of a Member State and as regards the
conditions governing the entry of personnel belonging to the main
establishment into managerial or supervisory posts in such
agencies, branches or subsidiaries;
(g) by co-ordinating to the necessary extent the safeguards which, for
the protection of the interests of members and others, are required
by Member States of companies or firms within the meaning of the
second paragraph of Art. 58 with a view to making such safeguards
equivalent throughout the Community;
(h) by satisfying themselves that the conditions of establishment are
not distorted by aids granted by Member States.
Article 55. The provisions of this Chapter shall not apply, so far as any
given Member State is concerned, to activities in which that State are
connected, even occasionally, with the exercise of official authority.
The Council may, acting by a qualified majority on a proposal from the
Commission, rule that the provisions of this Chapter shall not apply to
certain activities.
Article 56. 1. The provisions of this Chapter and measures taken in
pursuance thereof shall not prejudice the applicability of provisions
laid down by law, regulation or administrative action providing for
special treatment for foreign nationals on grounds of public policy,
public security or public health.
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 provisions 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.
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
coordination of the conditions for their exercise in the various Member
States.
Article 58. Companies or firms formed in accordance with the law of a
Member State and having their registered office, central administration
or principal place of business within the Community shall, for the
purposes of this Chapter, be treated in the same way as natural persons
who are nationals of Member States.
'Companies or firms' means companies or firms constituted under civil or
commercial law, including co-operative societies, and other legal persons
governed by public or private law, save for those which are non-profit
making.
CHAPTER 3. SERVICES
Article 59. Within the framework of the provisions set out below,
restrictions on freedom to provide services within the Community shall be
progressively abolished during the transitional period in respect of
nationals of Member States who are established in a State of the
Community other than that of the person for whom the services are
intended.
The Council may, acting by a qualified majority on a proposal from the
Commission, extend the provisions of this Chapter to nationals of a third
country who provide services and who are established within the
Community.
Article 60. Services shall be considered to be 'services' within the
meaning of this Treaty where they are normally provided for remuneration,
in so far as they are not governed by the provisions relating to freedom
of movement for goods, capital and persons.
'Services' shall in particular include:
(a) activities of an industrial character;
(b) activities of a commercial character;
(c) activities of craftsmen;
(d) activities of the professions.
Without prejudice to the provisions of the Chapter relating to the right
of establishment, the person providing a service may, in order to do so,
temporarily pursue his activity in the State where the service is
provided, under the same conditions as are imposed by that State on its
own nationals.
Article 61. 1. Freedom to provide services in the field of transport
shall be governed by the provisions of the Title relating to transport.
2. The liberalisation of banking and insurance services connected with
movements of capital shall be effected in step with the progressive
liberalisation of movement of capital.
Article 62. Save as otherwise provided in this Treaty, Member States
shall not introduce any new restrictions on the freedom to provide
services which has in fact been attained at the date of the entry into
force of this Treaty.
Article 63. 1. Before the end of the first stage, the Council shall,
acting unanimously on a proposal from the Commission and after consulting
the Economic and Social Committee and the European Parliament, draw up a
general programme for the abolition of existing restrictions on freedom
to provide services within the Community. The Commission shall submit its
proposal to the Council during the first two years of the first stage.
The programme shall set out the general conditions under which and the
stages by which each type of service is to be liberalised.
2. In order to implement this general programme or, in the absence of
such programme, in order to achieve a stage in the liberalisation of a
specific service, the Council shall, on a proposal from the Commission
and after consulting the Economic and Social Committee and the European
Parliament, issue directives, acting unanimously until the end of the
first stage and by a qualified majority thereafter.
3. As regards the proposals and decisions referred to in paragraphs 1 and
2, priority shall as a general rule be given to those services which
directly affect production costs or the liberalisation of which helps to
promote trade in goods.
Article 64. The Member States declare their readiness to undertake the
liberalisation of services beyond the extent required by the directives
issued pursuant to Art. 63 (2), if their general economic situation and
the situation of the economic sector concerned so permit.
To this end, the Commission shall make recommendations to the Member
States concerned.
Article 65. As long as restrictions on freedom to provide services have
not been abolished, each Member State shall apply such restrictions
without distinction on grounds of nationality or residence to all persons
providing services within the meaning of the first paragraph of Art. 59.
Article 66. The provisions of Arts. 55 to 58 shall apply to the matters
covered by this Chapter.
CHAPTER 4. CAPITAL AND PAYMENTS
Articles 67-73. [repealed]
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 provisions 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 infringements of national
law and regulations, in particular in the field of 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 1994 at
the latest, restrictions on movements of capital authorized by such
derogations as exist on that date.
Article 73f. Where, in exceptional circumstances, movements 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 case 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
payments 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 payments in particular so permit.
(2) In so far as movements 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
quantitative 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 payments and transfers mentioned in this Article
to be effected; such measures shall not prejudice the attainment of the
objectives set out in this Treaty.
TITLE IV. TRANSPORT
Article 74. The objectives of this Treaty shall, in matters governed by
this Title, be pursued by Member States within the framework of a common
transport policy.
Article 75. 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. 1n so
doing, the Council shall take into account the need for adaptation to the
economic development which will result from establishing the common
market.
Article 76. Until the provisions referred to in Art. 75 (1) have been
laid down, no Member State may, without the unanimous approval of the
Council, make the various provisions governing the subject when this
Treaty enters into force less favourable in their direct or indirect
effect on carriers of other Member States as compared with carriers who
are nationals of that State.
Article 77. Aids shall be compatible with this Treaty if they meet the
needs of co-ordination of transport or if they represent reimbursement
for the discharge of certain obligations inherent in the concept of a
public service.
Article 78. Any measures taken within the framework of this Treaty in
respect of transport rates and conditions shall take account of the
economic circumstances of carriers.
Article 79. 1. 1n the case of transport within the Community,
discrimination which takes the form of carriers charging different rates
and imposing different conditions for the carriage of the same goods over
the same transport links on grounds of the country of origin or of
destination of the goods in question, shall be abolished, at the latest,
before the end of the second stage.
2. Paragraph 1 shall not prevent the Council from adopting other measures
in pursuance of Art. 75 (1).
3. Within two years of the entry into force of this Treaty, the Council
shall, acting by a qualified majority on a proposal from the Commission
and after consulting the Economic and Social Committee, lay down rules
for implementing the provisions of paragraph 1.
The Council may in particular lay down the provisions needed to enable
the institutions of the Community to secure compliance with the rule laid
down in paragraph 1 and to ensure that users benefit from it to the full.
4. The Commission shall, acting on its own initiative or on application
by a Member State, investigate any cases of discrimination falling within
paragraph 1 and, after consulting any Member State concerned, shall take
the necessary decisions within the framework of the rules laid down in
accordance with the provisions of paragraph 3.
Article 80. 1. The imposition by a Member State, in respect of transport
operations carried out within the Community, of rates and conditions
involving any element of support or protection in the interest of one or
more particular undertakings or industries shall be prohibited as from
the beginning of the second stage, unless authorised by the Commission.
2. The Commission shall, acting on its own initiative or an application
by a Member State, examine the rates and conditions referred to in
paragraph 1, taking account in particular of the requirements of an
appropriate regional economic policy, the needs of underdeveloped areas
and the problems of areas seriously affected by political circumstances
on the one hand, and of the effects of such rates and conditions on
competition between the different modes of transport on the other.
After consulting each Member State concerned, the Commission shall take
the necessary decisions.
3. The prohibition provided for in paragraph 1 shall not apply to tariffs
fixed to meet competition.
Article 81. Charges or dues in respect of the crossing of frontiers which
are charged by a carrier in addition to the transport rates shall not
exceed a reasonable level after taking the costs actually incurred
thereby into account.
Member States shall endeavour to reduce these costs progressively.
The Commission may make recommendations to Member States for the
application of this Article.
Article 82. The provisions of this Title shall not form an obstacle to
the application of measures taken in the Federal Republic of Germany to
the extent that such measures are required in order to compensate for the
economic disadvantages caused by the division of Germany to the economy
of certain areas of the Federal Republic affected by that division.
Article 83. An Advisory Committee consisting of experts designated by the
Governments of Member States, shall be attached to the Commission. The
Commission, whenever it considers it desirable, shall consult the
Committee on transport matters without prejudice to the powers of the
transport section of the Economic and Social Committee.
Article 84. 1. The provisions of this Title shall apply to transport by
rail, road and inland waterway.
2. The Council may, acting by a qualified majority, decide whether, to
what extent and by what procedure appropriate provisions may be laid down
for sea and air transport.
The procedural provisions of Article 75(1) and (3) shall apply.
TITLE V. COMMON RULES ON COMPETITION, TAXATION AND
APPROXIMATION OF LAWS
CHAPTER 1. RULES ON COMPETITION
Section 1. Rules Applying to Undertakings
Article 85. 1. The following shall be prohibited as incompatible with the
common market; all agreements between undertakings, decisions by
associations of undertakings and concerted practices which may affect
trade between Member States and which have as their object or effect the
prevention restriction or distortion of competition within the common
market, and in particular those which:
(a) directly or indirectly fix purchase or selling prices or any other
trading conditions;
(b) limit or control production, markets, technical development, or
investment;
(c) share markets or sources of supply;
(d) apply dissimilar conditions to equivalent transactions with other
trading parties, thereby placing them at a competitive disadvantage;
(e) make the conclusion of contracts subject to acceptance by the other
parties of supplementary obligations which, by their nature or
according to commercial usage, have no connection with the subject
of such contracts.
2. Any agreements or decisions prohibited pursuant to this Article shall
be automatically void.
3. The provisions of paragraph 1 may, however, be declared inapplicable
in the case of:
- any agreement or category of agreements between undertakings;
- any decision or category of decisions by associations of undertakings;
- any concerted practice or category of concerted practices;
which contributes to improving the production or distribution of goods or
to promoting technical or economic progress, while allowing consumers a
fair share of the resulting benefit, and which does not:
(a) impose on the undertakings concerned restrictions which are not
indispensable to the attainment of these objectives;
(b) afford such undertakings the possibility of eliminating competition
in respect of a substantial part of the products in question.
Article 86. Any abuse by one or more undertakings of a dominant position
within the common market or in a substantial part of it shall be
prohibited as incompatible with the common market in so far as it may
affect trade between Member States. Such abuse may, in particular,
consist in:
(a) directly or indirectly imposing unfair purchase or selling prices
or unfair trading conditions;
(b) limiting production, markets or technical development to the
prejudice of consumers;
(c) applying dissimilar conditions to equivalent transactions with
other trading parties, thereby placing them at a competitive
disadvantage;
(d) making the conclusion of contracts subject to acceptance by the
other parties of supplementary obligations which, by their nature
or according to commercial usage, have no connection with the
subject of such contracts.
Article 87. 1. Within three years of the entry into force of this Treaty
the Council shall, acting unanimously on a proposal from the Commission
and after consulting the European Parliament, adopt any appropriate
regulations or directives to give effect to the principles set out in
Arts. 85 and 86.
If such provisions have not been adopted within the period mentioned,
they shall be laid down by the Council, acting by a qualified majority on
a proposal from the Commission and after consulting the European
Parliament.
2. The regulations or directives referred to in paragraph 1 shall be
designed, in particular:
(a) to ensure compliance with the prohibitions laid down in Art. 85 (I)
and in Art. 86 by making provision for fines and periodic penalty
payments;
(b) to lay down detailed rules for the application of Art. 85 (3),
taking into account the need to ensure effective supervision on the
one hand, and to simplify administration to the greatest possible
extent on the other;
(c) to define, if need be, in the various branches of the economy, the
scope of the provisions of Arts. 85 and 86;
(d) to define the respective functions of the Commission and of the
Court of Justice in applying the provisions laid down in this
paragraph;
(e) to determine the relationship between national laws and the
provisions contained in this Section or adopted pursuant to this
Article.
Article 88. Until the entry into force of the provisions adopted in
pursuance of Art. 87, the authorities in Member States shall rule on the
admissibility of agreements, decisions and concerted practices and on
abuse of a dominant position in the common market in accordance with the
law of their country and with the provisions of Art. 85, in particular
paragraph 3, and of Art. 86.
Article 89. 1. Without prejudice to Art. 88, the Commission shall, as
soon as it takes up its duties, ensure the application of the principles
laid down in Arts. 85 and 86. On application by a Member State or on its
own initiative, and in co-operation with the competent authorities in the
Member States, who shall give it their assistance, the Commission shall
investigate cases of suspected infringement of these principles. If it
finds that there has been an infringement, it shall propose appropriate
measures to bring it to an end.
2. If the infringement is not brought to an end, the Commission shall
record such infringement of the principles in a reasoned decision. The
Commission may publish its decision and authorise Member States to take
the measures, the conditions and details of which it shall determine,
needed to remedy the situation.
Article 90. 1. In the case of public undertakings and undertakings to
which Member States grant special or exclusive rights, Member States
shall neither enact nor maintain in force any measure contrary to the
rules contained in this Treaty, in particular to those rules provided for
in Art. 7 and Arts. 85 to 94.
2. Undertakings entrusted with the operation of services of general
economic interest or having the character of a revenue-producing monopoly
shall be subject to the rules contained in this Treaty, in particular to
the rules on competition, in so far as the application of such rules does
not obstruct the performance, in law or in fact, of the particular tasks
assigned to them. The development of trade must not be affected to such
an extent as would be contrary to the interests of the Community.
3. The Commission shall ensure the application of the provisions of this
Article and shall, where necessary, address appropriate directives or
decisions to Member States.
Section 2. Dumping
Article 91. 1. If, during the transitional period, the Commission, on
application by a Member State or by any other interested party, finds
that dumping is being practised within the common market, it shall
address recommendations to the person or persons with whom such
practices originate for the purpose of putting an end to them.
Should the practices continue, the Commission shall authorise the injured
Member State to take protective measures, the conditions and details of
which the Commission shall determine.
2. As soon as this Treaty enters into force, products which originate in
or are in free circulation in one Member State and which have been
exported to another Member State shall, on reimportation be admitted into
the territory of the first-mentioned State free of all customs duties,
quantitative restrictions or measures having equivalent effect. The
Commission shall lay down appropriate rules for the application of this
paragraph.
Section 3. Aids Granted by States.
Article 92. 1. Save as otherwise provided in this Treaty, any aid granted
by a Member State or through State resources in any form whatsoever which
distorts or threatens to distort competition by favouring certain
undertakings or the production of certain goods shall, in so far as it
affects trade between Member States, be incompatible with the common
market.
2. The following shall be compatible with the common market:
(a) aid having a social character, granted to individual consumers,
provided that such aid is granted without discrimination related to
the origin of the products concerned;
(b) aid to make good the damage caused by natural disasters or other
exceptional occurrences;
(c) aid granted to the economy of certain areas of the Federal Republic
of Germany affected by the division of Germany, in so far as such
aid is required in order to compensate for the economic
disadvantages caused by that division.
3. The following may be considered to be compatible with the common
market:
(a) aid to promote the economic development of areas where the standard
of living is abnormally low or where there is serious
underemployment;
(b) aid to promote the execution of an important project of common
European interest or to remedy a serious disturbance in the economy
of a Member State;
(c) aid to facilitate the development of certain economic activities or
of certain economic areas, where such aid does not adversely affect
trading conditions to an extent contrary to the common interest. However,
the aids granted to shipbuilding as of 1 January 1957 shall, in so far as they
serve only to compensate for the absence of customs protection, be progressively
reduced under the same conditions as apply to the elimination of customs duties,
subject to the provisions of this Treaty concerning common commercial policy
towards third countries;
(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;
(e) such other categories of aid as may be specified by decision of the
Council acting by a qualified majority on a proposal from the
Commission.
Article 93. 1. The Commission shall, in co-operation with Member States,
keep under constant review all systems of aid existing in those States.
It shall propose to the latter any appropriate measures required by the
progressive development or by the functioning of the common market.
2. If, after having given notice to the parties concerned to submit their
comments, the Commission finds that aid granted by a State or through
State resources is not compatible with the common market having regard to
Art. 92, or that such aid is being misused, it shall decide that the
State concerned shall abolish or alter such aid within a period of time
to be determined by the Commission.
If the State concerned does not comply with this decision within the
prescribed time, the Commission or any other interested State may, in
derogation from the provisions of Arts. 169 and 170, refer the matter to
the Court of Justice direct.
On application by a Member State, the Council may, acting unanimously,
decide that aid which that State is granting or intends to grant shall be
considered to be compatible with the common market, in derogation from
the provisions of Art. 92 or from the regulations provided for in Art.
94, if such a decision is justified by exceptional circumstances. If, as
regards the aid in question, the Commission has already initiated the
procedure provided for in the first subparagraph of this paragraph, the
fact that the State concerned has made its application to the Council
shall have the effect of suspending that procedure until the Council has
made its attitude known.
If, however, the Council has not made its attitude known within three
months of the said application being made, the Commission shall give its
decision on the case.
3. The Commission shall be informed, in sufficient time to enable it to
submit its comments, of any plans to grant or alter aid. If it considers
that any such plan is not compatible with the common market having regard
to Art. 92, it shall without delay initiate the procedure provided for in
paragraph 2. The Member State concerned shall not put its proposed
measures into effect until this procedure has resulted in a final
decision.
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 under which Article 93
(3) shall apply and the categories of aid exempted from this procedure.
CHAPTER 2. TAX PROVISIONS
Article 95. No Member State shall impose, directly or indirectly, on the
products of other Member States any internal taxation of any kind in
excess of that imposed directly or indirectly on similar domestic
products. Furthermore, no Member State shall impose on the products of
other Member States any internal taxation of such a nature as to afford
indirect protection to other products.
Member States shall, not later than at the beginning of the second stage,
repeal or amend any provisions existing when this Treaty enters into
force which conflict with the preceding rules.
Article 96. Where products are exported to the territory of any Member
State, any repayment of internal taxation shall not exceed the internal
taxation imposed on them, whether directly or indirectly.
Article 97. Member States which levy a turnover tax calculated on a
cumulative multi-stage tax system may, in the case of internal taxation
imposed by them on imported products or of repayments allowed by
them on exported products, establish average rates for products or groups of
products, provided that there is no infringement of the principles laid
down in Arts. 95 and 96.
Where the average rates established by a Member State do not conform to
these principles, the Commission shall address appropriate directives or
decisions to the State concerned.
Article 98. In the case of charges other than turnover taxes, excise
duties and other forms of indirect taxation, remissions and repayments in
respect of exports to other Member States may not be granted and
countervailing charges in respect of imports from Member States may not
be imposed unless the measures contemplated have been previously approved
for a limited period by the Council acting by a qualified majority on a proposal
from the Commission.
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 harmonisation of
legislation concerning turnover taxes, excise duties and other forms of
indirect taxation to the extent that such harmonisation is necessary to
ensure the establishment and the functioning of the internal market
within the time-limit laid down in Article 7a.
CHAPTER 3. APPROXIMATION OF LAWS
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 affect the establishment or functioning of the common market.
Article 100a. 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 establishing and functioning of the internal market.
2. Paragraph 1 shall not apply to fiscal provisions, to those relating to
the free movement of persons nor to those relating to the rights and
interests of employed persons.
3. The Commission, in its proposals envisaged in paragraph 1 concerning
health, safety, environmental protection and consumer protection, will
take as a base a high level of protection.
4. If, after the adoption of a harmonisation measure by the Council
acting by a qualified majority, a Member State deems it necessary to
apply national provisions on grounds of major needs referred to in
Article 36, or relating to protection of the environment or the working
environment, it shall notify the Commission of these provisions.
The Commission shall confirm the provisions involved after having
verified that they are not a means of arbitrary discrimination or a
disguised restriction on trade between Member States.
By way of derogation from the procedure laid down in Articles 169 and
170, the Commission or any Member State may bring the matter directly
before the Court of Justice if it considers that another Member State is
making improper use of the powers provided for in this Article.
5. The harmonisation measures referred to above shall, in appropriate
cases, include a safeguard clause authorising the Member States to take,
for one or more of the non-economic reasons referred to in Article 36,
provisional measures subject to a Community control procedure.
Article 100b. 1. During 1992, the Commission shall, together with each
Member State, draw up an inventory of national laws, regulations and
administrative provisions which fall under Article 100a and which have
not been harmonised pursuant to that Article.
The Council, acting in accordance with the provisions of Article 1ooa,
may decide that the provisions in force in a Member State must be
recognised as being equivalent to those applied by another Member State.
2. The provisions of Article 100a(4) shall apply by analogy.
3. The Commission shall draw up the inventory referred to in the first
subparagraph of paragraph 1 and shall submit appropriate proposals in
good time to allow the Council to act before the end of 1992.
Article 100c. 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 act by a qualified majority on
the decisions referred to in paragraph 1. 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 matters 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 matters if so decided pursuant to
Article K.9 of the provisions of the Treaty on European Union which
relate to cooperation 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 matters covered by this Article shall remain in force until
their content has been replaced by directives or measures adopted
pursuant to this Article.
Article 100d. The Coordinating 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 100c.
Article 101. Where the Commission finds that a difference between the
provisions laid down by law, regulation or administrative action in
Member States is distorting the conditions of competition in the common
market and that the resultant distortion needs to be eliminated, it shall
consult the Member States concerned.
If such consultation does not result in an agreement eliminating the
distortion in question, the Council shall, on a proposal from the
Commission, acting unanimously during the first stage and by a qualified
majority thereafter, issue the necessary directives. The Commission and
the Council may take any other appropriate measures provided for in this
Treaty.
Article 102. 1. Where there is reason to fear that the adoption or
amendment of a provision laid down by law, regulation or administrative
action may cause distortion within the meaning of Art. 101, a Member
State desiring to proceed therewith shall consult the Commission. After
consulting the Member States, the Commission shall recommend to the
States concerned such measures as may be appropriate to avoid the
distortion in question.
2. If a State desiring to introduce or amend its own provisions does not
comply with the recommendation addressed to it by the Commission, other
Member States shall not be required, in pursuance of Art. 101, to amend
their own provisions in order to eliminate such distortion. If the Member
State which has ignored the recommendation of the Commission causes
distortion detrimental only to itself, the provisions of Art. 101 shall
not apply.
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 principles set out in Article 3a.
Article 103. 1. Member States shall regard their economic policies as a
matter of common concern and shall coordinate 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 this 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 coordination 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 developments 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 such other information as
they deem necessary.
4. Where it is established, under the procedure referred to 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 results 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. The provisions of 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 Frocedure 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 commitments 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 government 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
crlteria:
(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
fulfilment of the requirements 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 rights 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 or, as the
case may be, intensify one or more of the following measures:
- to require that the Member State concerned shall 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 that the Member State concerned makes 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 as 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 previously has 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) and 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 stability,
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 governments 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 accordance 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 within 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 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.
2. 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, 33.1(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 or 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.
Article 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 negotiation.
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 PROVISIONS
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 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 coordination 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, an 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 Articles 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 Committee 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 a 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 out 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
obligations 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 provisions 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 provisions of Articles 103a(2), 104c(1), (9) and (11), 105, 105a,
107, 109, 109a, 109a 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, 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 cooperation between the national central banks;
- strengthen the coordination of the 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 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.
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 their monetary policy.
5. The EMI, acting unanimously, may decide 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,
references 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 an 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
the 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 State 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
and 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 States 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 reports 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 a 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 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;
- whether 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
recommendations as 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 h'ave 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(l), 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, and
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 the 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 a
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
functions 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 a 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 so doing, Member States shall take account of the experience
acquired in cooperation 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.
TITLE VII. COMMON COMMERCIAL POLICY
Article 110. By establishing a customs union between themselves Member
States aim to contribute, in the common interest, to the harmonious
development of world trade, the progressive abolition of restrictions on
international trade and the lowering of customs barriers.
The common commercial policy shall take into account the favourable
effect which the abolition of customs duties between Member States may
have on the increase in the competitive strength of undertakings in those
States.
Article 111. [repealed]
Article 112. 1. Without prejudice to obligations undertaken by them
within the framework of other international organisations, Member States
shall, before the end of the transitional period, progressively harmonise
the systems whereby they grant aid for exports to third countries, to the
extent necessary to ensure that competition between undertakings of the
Community is not distorted.
On a proposal from the Commission, the Council shall, acting unanimously
until the end of the second stage and by a qualified majority thereafter,
issue any directives needed for this purpose.
2. The preceding provisions shall not apply to such drawback of customs
duties or charges having equivalent effect nor to such repayment of
indirect taxation including turnover taxes, excise duties and other
indirect taxes as is allowed when goods are exported from a Member State
to a third country, in so far as such drawback or repayment does not
exceed the amount imposed, directly or indirectly, on the products
exported.
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 liberalisation, export policy and measures to protect
trade such as those to be taken in case 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 provisions of Article 228 shall apply.
4. In exercising the powers conferred upon it by this Article, the
Council shall act by a qualified majority.
Article 114. [repealed]
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 of the
Member States, the Commission shall recommend the methods for the
requisite co-operation between Member States. Failing this, the
Commission shall authorise Member States to take the necessary protective
measures, the conditions and details of which it shall determine.
In cases of urgency, Member States shall request authorization to take
the necessary measures from the Commission, which shall take a decision
as soon as possible; the Member States concerned shall then notify the
measure to the other Member States. The Commission may at any time decide
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.
Article 116. [repealed]
TITLE VIII. SOCIAL POLICY, EDUCATION, VOCATIONAL TRAINING
AND YOUTH
CHAPTER 1. SOCIAL PROVISIONS
Article 117. Member States agree upon the need to promote improved
working conditions and an improved standard of living for workers, so as
to make possible their harmonisation while the improvement is being
maintained.
They believe that such a development will ensue not only from the
functioning of the common market, which will favour the harmonisation of
social systems, but also from the procedures provided for in this Treaty
and from the approximation of provisions laid down by law, regulation or
administrative action.
Article 118. Without prejudice to the other provisions of this Treaty and
in conforrnity with its general objectives, the Commission shall have the
task of promoting close co-operation between Member States in the social
field, particularly in matters relating to:
- employment;
- labour law and working conditions;
- basic and advanced vocational training;
- social security;
- prevention of occupational accidents and diseases;
- occupational hygiene; the right of association, and collective
bargaining between employers and workers.
To this end, the Commission shall act in close contact with Member States
by making studies, delivering opinions and arranging consultations both
on problems arising at national level and on those of concern to
international organisations.
Before delivering the opinions provided for in this Article, the
Commission shall consult the Economic and Social Committee.
Article 118a. 1. Member States shall pay particular attention to
encouraging improvements, especially in the working environment, as
regards the health and safety of workers, and shall set as their
objective the harmonisation of conditions in this area, while maintaining
the improvements made.
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.
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.
3. The provisions adopted pursuant to this Article shall not prevent any
Member State from maintaining or introducing more stringent measures for
the protection of working conditions compatible with this Treaty.
Article 118b. The Commission shall endeavour to develop the dialogue
between management and labour at European level which could, if the two
sides consider it desirable, lead to relations based on agreement.
Article 119. Each Member State shall during the first stage ensure and
subsequently maintain the application of the principle that men and women
should receive equal pay for equal work.
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.
Article 120. Member States shall endeavour to maintain the existing
equivalence between paid holiday schemes.
Article 121. The Council may, acting unanimously and after consulting the
Economic and Social Committee, assign to the Commission tasks in
connection with the implementation of common measures, particularly as
regards social security for the migrant workers referred to in Arts. 48
to 51.
Article 122. The Commission shall include a separate chapter on social
developments within the Community in its annual report to the European
Parliament.
The European Parliament may invite the Commission to draw up reports on
any particular problems concerning social conditions.
CHAPTER 2. THE EUROPEAN SOCIAL FUND
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.
Article 124. The Fund shall be administered by the Commission.
The Commission shall be assisted in this task by a Committee presided
over by a member of the Commission and composed of representatives of
Governments, trade unions and employers' organisations.
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.
CHAPTER 3. EDUCATION, VOCATIONAL TRAINING AND YOUTH
Article 126. 1. The Community shall contribute to the development of
quality education by encouraging cooperation 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 cooperation 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
sphere 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 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 cooperation 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 cooperation vith
third countries and the competent international organizations in the
phere 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.
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 cooperation
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 cooperation 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.
TITLE X. PUBLIC HEALTH
Article 129. 1. The Community shall contribute towards ensuring a high
level of human health protection by encouraging cooperation 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, coordinate 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 coordination.
3. The Community and the Member States shall foster cooperation 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 Xl. 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 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 Commuuity 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, coordinate 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 cooperation with the Member
States, take any useful initiative to promote such coordination.
3. The Community may decide to cooperate 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 cooperation 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 coordinate their action. The
Commission may take any useful initiative to promote such coordination.
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 leading to the
strengthening of its economic and social cohesion.
In particular, the Community shall aim at reducing 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 coordinate them in 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 the 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
to redress the main regional imbalances in the Community through
participation in the development and structural adjustment 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 coordination
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 basis of European 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 activities carried out in the
Member States:
(a) implementation of research, technological development and
demonstration programmes by promoting co-operation with
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 optimisation 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 coordinate
their research and technological development activities so as to ensure
that national policies and Community policy are mutually consistent.
2. In close cooperation with the Member States, the Commission may take
any useful initiative to promote the coordination referred to in
paragraph 1.
Article 130i. 1. A multiannual framework programme, setting out all the
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 programme,
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 organisations.
The detailed arrangements for such co-operation may be the subject of
international 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.
Article 130q. [repealed]
TITLE XVI. ENVIRONMENT
Article 130r. 1. Community policy on the environment shall contribute if
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 preventive 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 Community's other 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 action relating to 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 of 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 sub-paragraph 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 objectives 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 COOPERATION
Article 130u. 1. Community policy in the sphere of development
cooperation, 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 States 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 of 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 cooperation 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 coordinate
their policies on development cooperation 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 cooperate with third countries and
with the competent international organizations. The arrangements for
Community cooperation 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 paragraph shall be without prejudice to Member States'
competence to negotiate in international bodies and to conclude
international agreements.
Part Four. Association of the Overseas Countries and
Territories
Article 131. The Member States agree to associate with the Community the
non-European countries and territories which have special relations with
Belgium, Denmark, France, Italy, the Netherlands and the United Kingdom.
These countries and territories (hereinafter called the 'countries and
territories') are listed in Annex IV to this Treaty.
The purpose of association shall be to promote the economic and social
development of the countries and territories and to establish close
economic relations between them and the Community as a whole.
In accordance with the principles set out in the Preamble to this Treaty,
association shall serve primarily to further the interests and prosperity
of the inhabitants of these countries and territories in order to lead
them to the economic, social and cultural development to which they
aspire.
Article 132. Association shall have the following objectives:
1. Member States shall apply to their trade with the countries and
territories the same treatment as they accord each other pursuant to this
Treaty.
2. Each country or territory shall apply to its trade with Member States
and with the other countries and territories the same treatment as that
which it applies to the European State with which it has special
relations.
3. The Member States shall contribute to the investments required for the
progressive development of these countries and territories.
4. For investments financed by the Community, participation in tenders
and supplies shall be open on equal terms to all natural and legal
persons who are nationals of a Member State or of one of the countries
and territories.
5. In relations between Member States and the countries and territories
the right of establishment of nationals and companies or firms shall be
regulated in accordance with the provisions and procedures laid down in
the Chapter relating to the right of establishment and on a
non-discriminatory basis, subject to any special provisions laid down
pursuant to Art. 136.
Article 133. 1. Customs duties on imports into the Member States of goods
originating in the countries and territories shall be completely
abolished in conformity with the progressive abolition of customs duties
between Member States in accordance with the provisions of this Treaty.
2. Customs duties on imports into each country or territory from Member
States or from the other countries or territories shall be progressively
abolished in accordance with the provisions of Arts. 12, 13, 14, 15 and
17.
3. The countries and territories may, however, levy customs duties which
meet the needs of their development and industrialisation or produce
revenue for their budgets.
The duties referred to in the preceding subparagraph shall nevertheless
be progressively reduced to the level of those imposed on imports of
products from the Member State with which each country or territory has
special relations. The percentages and the timetable of the reductions
provided for under this Treaty shall apply to the differences between the
duty imposed on a product comiltg from the Member State which has special
relations with the country or territory concerned and the duty imposed on the
same product coming from within the Community on entry into the importing
country or territory.
4. Paragraph 2 shall not apply to countries and territories which, by
reason of the particular international obligations by which they are
bound, already apply a non-discriminatory customs tariff when this Treaty
enters into force.
5. The introduction of or any change in customs duties imposed on goods
imported into the countries and territories shall not, either in law or
in fact, give rise to any direct or indirect discrimination between
imports from the various Member States.
Article 134. If the level of the duties applicable to goods from a third
country on entry into a country or territory is liable, when the
provisions of Art. 133 (1) have been applied, to cause deflections of
trade to the detriment of any Member State, the latter may request the
Commission to propose to the other Member States the measures needed
to remedy the situation.
Article 135. Subject to the provisions relating to public health, public
security or public policy, freedom of movement within Member States for
workers from the countries and territories, and within the countries and
territories for workers from Member States, shall be governed by
agreements to be concluded subsequently with the unanimous approval of
Member States.
Article 136. For an initial period of five years after the entry into
force of this Treaty, the details of and procedure for the association of
the countries and territories with the Community shall be determined by
an Implementing Convention annexed to this Treaty.
Before the Convention referred to in the preceding paragraph expires, the
Council shall, acting unanimously, lay down provisions for a further
period, on the basis of the experience acquired and of the principles set
out in this Treaty.
Article 136a. The provisions of Arts. 130 to 136 shall apply to Greenland
subject to the special provisions for Greenland set out in the Protocol
on special arrangements for Greenland, annexed to this Treaty.
Part Five. Institutions of the Community
TITLE I. PROVISIONS GOVERNING THE INSTITUTIONS
CHAPTER 1. THE INSTITUTIONS
Section 1. The European Parliament
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.
Article 138. 1. The European Parliament shall consist of delegates who
shall be designated by the respective Parliaments from among their
members in accordance with the procedure laid down by each Member State.
2. The number of these delegates shall be as follows:
Belgium 14
Denmark 10
Germany 36
France 36
Ireland 10
Italy 36
Luxembourg 6
The Netherlands 14
United Kingdom 36
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.
[NB. Article 138(1) and (2) lapsed on 17 July 1979 in accordance with the
Council Decision and Act of 20 September 1976 on Direct Elections.
Articles 1 and 2 as amended are as follows
Council Decision and Act of 20 September 1976 on Direct Elections
Article 1. The representatives in the European Parliament of the peoples
of the State brought together in the Community shall be elected by direct
universal suffrage.
Article 2. The number of representatives elected in each Member State
shall be as follows:
Belgium 25
Denmark 16
Germany 99
Greece 25
Spain 64
France 87
Ireland 15
Italy 87
Luxembourg 6
The Netherlands 31
Portugal 25
United Kingdom 87
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 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 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 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.
Article 139. The European Parliament shall hold an annual session. It
shall meet, without requiring to be convened, on the second Tuesday in
March.
The European Parliament may meet in extraordinary session at the request
of a majority of its members or at the request of the Council or of the
Commission.
Article 140. The European Parliament shall elect its President and its
officers from among its members.
Members of the Commission may attend all meetings and shall, at their
request, be heard on behalf of the Commission.
The Commission shall reply orally or in writing to questions put to it by
the European Parliament or by its members.
The Council shall be heard by the European Parliament in accordance with
the conditions laid down by the Council in its rules of procedure.
Article 141. Save as otherwise provided in this Treaty, the European
Parliament shall act by an absolute majority of the votes cast.
The rules of procedure shall determine the quorum.
Article 142. The European Parliament shall adopt its rules of procedure,
acting by a majority of its members.
The proceedings of the European Parliament shall be published in the
manner laid down in its rules of procedure.
Article 143. The European Parliament shall discuss in open session the
annual general report submitted to it by the Commission.
Article 144. 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 the 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
Art. 158. 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.
Section 2. The Council
Merger Treaty
Article 1. A Council of the European Communities (hereinafter called the
'Council') is hereby established. This Council shall take the place of
the Special Council of Ministers of the European Coal and Steel
Community, the Council of the European Economic Community and the
Council of the European Atomic Energy Community.
It shall exercise the powers and jurisdiction conferred on those
institutions in accordance with the provisions of the Treaties
established in the European Coal and Steel Community, the European
Economic Community and the European Atomic Energy Community, and of this Treaty.
Article 145. To ensure that the objectives set out in this Treaty are
attained, the Council shall, in accordance with the provisions of this
Treaty:
-ensure co-ordination of the general economic policies of the Member
States;
-have power to take decisions;
- confer on the Commission, in the acts which the Council adopts,
powers for the implementation of the rules which the Council lays
down. The Council may impose certain requirements in respect of the
exercise of these powers. The Council may also reserve the right,
in specific cases, to exercise directly implementing powers itself.
The procedures referred to above must be consonant with principles
and rules to be laid down in advance by the Council, acting
unanimously on a proposal from the Commission and after obtaining
the opinion of the European Parliament.
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.
Article 147. 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.
Article 148. Save as otherwise provided in this Treaty, the Council shall
act by a majority of its members.
2. Where the Council is required to act by a qualified majority, the
votes of its members shall be weighted as follows:
Belgium 5
Denmark 3
Germany 10
Greece 5
Spain 8
France 10
Ireland 3
Italy 10
Luxembourg 2
The Netherlands 5
Portugal 5
United Kingdom 10
For their adoption, acts of the Council shall require at least:
54 votes in favour where this Treaty requires them to be adopted on a
proposal from the commission.
54 votes in favour, cast by at least eight members, in other cases.
3. Abstentions by members present in person or represented shall not
prevent the adoption by the Council of acts which require unanimity.
Article 149. [repealed]
Article 150. Where a vote is taken, any member of the Council may also
act on behalf of not more than one other member.
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.
Article 152. The Council may request the Commission to undertake any
studies which the Council considers desirable for the attainment of the
common objectives, and to submit to it any appropriate proposals.
Article 153. The Council shall, after receiving an opinion from the
Commission, determine the rules governing the committees provided for in
this Treaty.
Section 3. The Commission
Merger Treaty
Article 9. A Commission of the European Communities (hereinafter called
the 'Commission') is hereby established. This Commission shall take the
place of the High Authority of the European Coal and Steel Community, the
Commission of the European Community and the Commission of the European
Atomic Energy Community.
It shall exercise the powers and jurisdiction conferred on those
institutions in accordance with the provisions of the Treaties
establishing the European Coal and Steel Community, the European Economic
Community and the European Atomic Energy Community, and of this Treaty.
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.
Article 155. In order to ensure the proper functioning and development of
the common market, the Commission shall:
-ensure that the provisions of this Treaty and the measures taken by
the institutions pursuant thereto are applied;
-formulate recommendations or deliver opinions on matters dealt with
in this Treaty, if it expressly so provides or if the Commission
considers it necessary;
-have its power of decision and participate in the shaping of
measures taken by the Council and by the European Parliament in the
manner provided for in this Treaty;
-exercise the powers conferred on it by the Council for the
implementation of the rules laid down by the latter.
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 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 160 or deprived of his right to a pension or other 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 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 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 cooperation.
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.
Section 4. The Court of Justice
Article 164. The Court of Justice shall ensure that in the interpretation
and application of this Treaty the law is observed.
Article 165. The Court of Justice shall consist of 13 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 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 167.
Article 166. The Court of Justice shall be assisted by six Advocates-
General.
It shall be the duty of the Advocate-General, acting with complete
impartiality and independence, to make, in open court, reasoned
submissions on cases brought before the Court of Justice, in order to
assist the Court in the performance of the task assigned to it in Art.
164.
Should the Court of Justice so request, the Council may, acting
unanimously, increase the number of Advocates-General and make the
necessary adjustments to the third paragraph of Art. 167.
Article 167. The Judges and Advocates-General shall be chosen from
persons whose independence is beyond doubt and who possess the
qualifications required for appointment to the highest judicial offices
in their respective countries or who are juriconsults of recognised
competence; they shall be appointed by common accord of the Governments
of the Member States for a term of six years.
Every three years there shall be a partial replacement of the Judges.
Seven and six Judges shall be replaced alternately.
Every three years there shall be a partial replacement of the
Advocates-General. Three Advocates-General shall be replaced on each
occasion.
Retiring Judges and Advocates-General shall be eligible for
re-appointment.
The Judges shall elect the President of the Court of Justice from among
their number for a term of three years. He may be re-elected.
Article 168. The Court of Justice shall appoint its Registrar and lay
down the rules governing his service.
Article 168a. 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 deterrnine 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 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.
Article 169. If the Commission considers that a Member State has failed
to fulfil an obligation under this Treaty, it shall deliver a reasoned
opinion on the matter after giving the State concerned the opportunity to
submit its observations.
If the State concerned does not comply with the opinion within the period
laid down by the Commission the latter may bring the matter before the
Court of Justice.
Article 170. A Member State which considers that another Member State has
failed to fulfil an obligation under this Treaty may bring the matter
before the Court of Justice.
Before a Member State brings an action against another Member State for
an alleged infringement of an obligation under this Treaty, it shall
bring the matter before the Commission.
The Commission shall deliver a reasoned opinion after each of the States
concerned has been given the opportunity to submit its own case and its
observations on the other party's case both orally and in writing.
If the Commission has not delivered an opinion within three months of the
date on which the matter was brought before it, the absence of such
opinion shall not prevent the matter from being brought before the Court
of Justice.
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 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 170.
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 in regard to
the penalties provided for in such regulations.
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.
Article 174. If the action is well founded, the Court of Justice shall
declare the act concerned to be void.
In the case of a regulation, however, the Court of Justice shall, if it
considers this necessary, state which of the effects of the regulation
which it has declared void shall be considered as definitive.
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.
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.
Article 177. The Court of Justice shall have jurisdiction to give
preliminary rulings concerning:
(a)the interpretation of this 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 or 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, that court or tribunal shall bring the matter
before the Court of Justice.
Article 178. The Court of Justice shall have jurisdiction in disputes
relating to the compensation for damage provided for in the second
paragraph of Art. 215.
Article 179. The Court of Justice shall have jurisdiction in any dispute
between the Community and its servants within the limits and under the
conditions laid down in the Staff Regulations or the Conditions of
Employment.
Article 180. The Court of Justice shall, within the limits hereinafter
laid down, have jurisdiction in disputes concerning:
(a)the fulfilment 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 or 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 fulfilment by 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 fulfil 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.
Article 181. 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 Community, whether that contract be
governed by public or private law.
Article 182. The Court of Justice shall have jurisdiction in any dispute
between Member States which relates to the subject matter of this Treaty
if the dispute is submitted to it under a special agreement between the
parties.
Article 183. Save where jurisdiction is conferred on the Court by this ~;
Treaty, disputes to which the Community is a party shall not on that
ground be excluded from the jurisdiction of the courts or tribunals of
the Member States.
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 i
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.
Article 185. Actions brought before the Court of Justice shall not have
suspensory effect. The Court of Justice may, however, if it considers
that circumstances so require, order that application of the contested
act be suspended.
Article 186. The Court of Justice may in any cases before it prescribe
any necessary interim measures.
Article 187. The judgments of the Court of Justice shall be enforceable
under the conditions laid down in Art. 192.
Article 188. The Statute of the Court of Justice is laid down in a
separate Protocol.
The Council may, acting unanimously at the request of the Court of
Justice and after consulting the Commission and the European Parliament,
amend the provisions of Title III of the Statute.
The Court of Justice shall adopt its rules of procedure. These shall
require the unanimous approval of the Council.
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 fulfils 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 management 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 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
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 imptementation of the budget.
CHAPTER 2. PROVISIONS COMMON TO SEVERAL INSTITUTIONS
Article 189. In order to carry out their task and in accordance with the
provisions of this Treaty, the European Parliament acting jointly with
the Council, the Council and the Commission shall make regulations and
issue directives, take decisions, 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.
Article 189a. 1. Where, in pursuance of this 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 this Treaty to this Article
for the adoption of an act, the following procedure 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, acting 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
representatives 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 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 to 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's 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.
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.
Article 191. 1. Regulations, directives and decisions adopted in
accordance with the procedure referred to in Article 189b shall be signed
by the President of the European Parliament and by the President of the
Council and 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.
2. Regulations of the Council and of the Commission, as well as
directives of those institutions which are addressed 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 to whom they
are addressed and shall take effect upon such notification.
Article 192. Decisions of the Council or of the Commission which impose a
pecuniary obligation on persons other than States shall be enforceable.
Enforcement shall be governed by the rules of civil procedure in force in
the State in the territory of which it is carried out. The order for its
enforcement shall be appended to the decision, without other formality
than verification of the authenticity of the decision, by the national
authority which the Government of each Member State shall designate for
this purpose and shall make known to the Commission and to the Court of
Justice.
When these formalities have been completed on application by the party
concerned, the latter may proceed to enforcement in accordance with the
national law, by bringing the matter directly before the competent
authority.
Enforcement may be suspended only by a decision of the Court of Justice.
However, the courts of the country concerned shall have jurisdiction over
complaints that enforcement is being carried out in an irregular manner.
CHAPTER 3. THE ECONOMIC AND SOCIAL COMMITTEE
Article 193. An Economic and Social Committee is hereby established.
It shall have advisory status.
The Committee shall consist of representatives of the various categories
of economic and social activity, in particular, representatives of
producers, farmers, carriers, workers, dealers, craftsmen, professional
occupations and representatives of the general public.
Article 194. The number of members of the Committee shall be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
The 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.
Article 195. 1. For the appointment of the members of the Committee, each
Member State shall provide the Council with a list containing twice as
many candidates as there are seats allotted to its nationals.
The composition of the Committee shall take account of the need to ensure
adequate representation of the various categories of economic and social
activity.
2. The Council shall consult the Commission. It may obtain the opinion of
European bodies which are representative of the various economic and
social sectors to which the activities of the Community are of concern.
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.
Article 197. The Committee shall include specialised sections for the
principal fields covered by this Treaty.
In particular, it shall contain an agricultural section and a transport
section, which are the subject of special provisions in the Titles
relating to agriculture and transport.
These specialised sections shall operate within the general terms of
reference of the Committee. They may not be consulted independently of
the Committee.
Sub-committees may also be established within the Committee to prepare,
on specific questions or in specific fields, draft opinions to be
submitted to the Committee for its consideration.
The rules of procedure shall lay down the methods of composition and the
terms of reference of the specialised sections and of the sub-committees.
Article 198. 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 take the initiative of issuing an opinion 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 specialised section,
together with a record of the proceedings, shall be forwarded to the
Council and to the Commission.
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 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.
Where the Economic and Social Committee is consulted pursuant to Article
198, the Committee of the Regions shall be informed by the Council or the
Commission of the request for an opinion. Where it considers that
specific regions' interests are involved, the Committee of the Regions
may issue an opinion on the matter.
It may take the initiative of issuing an opinion 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.
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.
TITLE II. FINANCIAL PROVISIONS
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.
The administrative expenditure occasioned for the institutions by the
provisions of the Treaty on European Unity relating to common foreign and
security policy and to co-operation in the sphere 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.
Article 200. [repealed]
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.
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 that 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.
Article 202. The expenditure shown in the budget shall be authorised for
one financial year, unless the regulations made pursuant to Art. 209
provide otherwise.
In accordance with conditions to be laid down pursuant to Art. 209, any
appropriations, other than those relating to staff expenditure, that are
unexpended at the end of the financial year may be carried forward to the
next financial year only.
Appropriations shall be classified under different chapters grouping
items of expenditure according to their nature or purpose and subdivided,
as far as may be necessary, in accordance with the regulations made
pursuant to Art. 209.
The expenditure of the European Parliament, the Council, the Commission
and the Court of Justice shall be set out in separate parts of the
budget, without prejudice to special arrangements for certain common
items of expenditure.
Article 203. 1. The financial year shall run from 1 January to 31
December.
2. Each institution of the Community shall, before 1 July, draw up
estimates of its expenditure. The Commission shall consolidate these
estimates in a preliminary draft budget. It shall attach thereto an
opinion which may contain different estimates.
The preliminary draft budget shall contain an estimate of revenue and an
estimate of expenditure.
3. The Commission shall place the preliminary draft budget before the
Council not later than 1 September of the year preceding that in which
the budget is to be implemented.
The Council shall consult the Commission and, where appropriate, the
other institutions concerned whenever it intends to depart from the
preliminary draft budget.
The Council acting by a qualified majority, shall establish the draft
budget and forward it to the European Parliament.
4. The draft budget shall be placed before the European Parliament not
later than 5 October of the year preceding that in which the budget is to
be implemented.
The European Parliament shall have the right to amend the draft budget,
acting by a majority of its members, and to propose to the Council,
acting by an absolute majority of the votes cast, modifications to the
draft budget relating to expenditure necessarily resulting from this
Treaty or from acts adopted in accordance therewith.
If, within forty-five days of the draft budget being placed before it,
the European Parliament has given its approval, the budget shall stand as
finally adopted. If within this period the European Parliament has not
amended the draft budget nor proposed any modifications thereto, the
budget shall be deemed to be finally adopted.
d If within this period the European Parliament has adopted amendments or
proposed modifications, the draft budget together with the amendments or
proposed modifications shall be forwarded to the Council.
5. After discussing the draft budget with the Commission and, where
appropriate, with the other institutions concerned, the Council shall act
under the following conditions:
(a)The Council may, acting by a qualified majority, modify any of the
amendments adopted by the European Parliament;
(b)With regard to the proposed modifications:
- where a modification proposed by the European Parliament does
not have the effect of increasing the total amount of the
expenditure of an institution, owing in particular to the
fact that the increase in expenditure which it would involve
would be expressly compensated by one or more proposed
modifications correspondingly reducing expenditure, the
Council may, acting by a qualified ma.iority, rqect the
proposed modification. In the absence of a decision to reject
it, the proposed modification shall stand as accepted;
- where a modification proposed by the European Parliament has
the effect of increasing the total amount of the expenditure
of an institution, the Council may, acting by a qualified
majority, accept this proposed modification. In the absence
of a decision to accept it, the proposed modification shall
stand as rejected; where in pursuance of one of the two
preceding sub-paragraphs, the Council has rejected a proposed
modification, it may, acting by a qualified majority, either
retain the amount shown in the draft budget or fix another
amount.
The draft budget shall be modified on the basis of the proposed
modifications accepted by the Council.
If, within fifteen days of the draft budget being placed before it, the
Council has not modified any of the amendments adopted by the European
Parliament and if the modifications proposed by the latter have been
accepted, the budget shall be deemed to be finally adopted. The Council
shall inform the European Parliament that it has not modified any of the
amendments and that the proposed modifications have been accepted.
If, within this period the Council has modified one or more of the
amendments adopted by the European Parliament or if the modifications
proposed by the latter have been rejected or modified, the modified draft
budget shall again be forwarded to the European Parliament. The Council
shall inform the European Parliament of the results of its deliberations.
6. Within fifteen days of the draft budget being placed before it, the
European Parliament, which shall have been notified of the action taken
on its proposed modifications, may, acting by a majority of its members
and three-fifths of the votes cast, amend or reject the modifications to
its amendments made by the Council and shall adopt the budget
accordingly. If, within this period the European Parliament has not
acted, the budget shall be deemed to be finally adopted.
7. When the procedure provided for in this Article has been completed the
President of the European Parliament shall declare that the budget has
been finally adopted.
8. However, the European Parliament, acting by a majority of its members
and two-thirds of the votes cast, may if there are important reasons
reject the draft budget and ask for a new draft to be submitted to it.
9. A maximum rate of increase in relation to the expenditure of the same
type to be incurred during the current year shall be fixed annually for
the total expenditure other than that necessarily resulting from this
Treaty or from acts adopted in accordance therewith.
The Commission shall, after consulting the Economic Policy Committee,
declare what this maximum rate is as it results from:
-the trend, in terms of volume, of the gross national products
within the Community;
-the average variation in the budgets of the Member States; and
-the trend of the cost of living during the preceding financial
year.
The maximum rate shall be communicated, before 1 May, to all the
institutions of the Community. The latter shall be required to conform to
this during the budgetary procedure, subject to the provisions of the
fourth and fifth subparagraphs of this paragraph.
If, in respect of expenditure other than that necessarily resulting from
this Treaty or from acts adopted in accordance therewith, the actual rate
of increase in the draft budget established by the Council is over half
the maximum rate, the European Parliament may, exercising its right of
amendment, further increase the total amount of that expenditure to a
limit not exceeding half the maximum rate.
Where the European Parliament, the Council or the Commission consider
that the activities of the Communities require that the rate determined
according to the procedure laid down in this paragraph should be
exceeded, another rate may be fixed by agreement between the Council,
acting by a qualified majority, and the European Parliament, acting by a
majority of its members and three-fifths of the votes cast.
10. Each institution shall exercise the powers conferred upon it by this
Article, with due regard for the provisions of the Treaty and for acts
adopted in accordance therewith, in particular those relating to the
Communities' own resources and to the balance between revenue and
expenditure.
Article 204. If, at the beginning of a financial year, the budget has not
yet been voted, a sum equivalent to not more than one-twelfth of the
budget appropriations for the preceding financial year may be spent each
month in respect of any chapter or other subdivision of the budget in
accordance with the provisions of the regulations made pursuant to Art.
209; this arrangement shall not, however, have the effect of placing at
the disposal of the Commission appropriations in excess of one-twelfth of
those provided for in the draft budget in course of preparation.
The Council may, acting by a qualified majority, provided that the other
conditions laid down in the first subparagraph are observed, authorise
expenditure in excess of one-twelfth.
If the decision relates to expenditure which does not necessarily result
from this Treaty or from acts adopted in accordance therewith, the
Council shall forward it immediately to the European Parliament; within
thirty days the European Parliament, acting by a majority of its members
and three-fifths of the votes cast, may adopt a different decision on the
expenditure in excess of the one-twelfth referred to in the first
subparagraph. This part of the decision of the Council shall be suspended
until the European Parliament has taken its decision. If within the
period the European Parliament has not taken a decision which differs
from the decision of the Council, the latter shall be deemed to be
finally adopted.
The decisions referred to in the second and third subparagraphs shall lay
down the necessary measures relating to resources to ensure application
of this Article.
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 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 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.
Article 205a. The Commission shall submit annually to the Council and to
the European Parliament the accounts of the preceding financial year
relating to the implementation of the budget. The Commission shall also
forward to them a financial statement of the assets and liabilities of
the Community.
Article 206. 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 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 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 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.
Article 206. [repealed]
Article 207. The budget shall be drawn up in the unit of account
determined in accordance with the provisions of the regulations made
pursuant to Art. 209.
The financial contributions provided for in Art. 200(1) shall be placed
at the disposal of the Community by the Member States in their national
currencies.
The available balances of these contributions shall be deposited with the
Treasuries of Member States or with bodies designated by them. While on
deposit, such funds shall retain the value corresponding to the parity,
at the date of deposit, in relation to the unit of account referred to in
the first paragraph.
The balances may be invested on terms to be agreed between the Commission
and the Member State concerned.
The regulations made pursuant to Art. 209 shall lay down the technical
conditions under which financial operations relating to the European
Social Fund shall be carried out.
Article 208. The Commission may, provided it notifies the competent
authorities of the Member States concerned, transfer into the currency of
one of the Member States its holdings in the currency of another Member
State, to the extent necessary to enable them to be used for purposes
which come within the scope of this Treaty. The Commission shall as far
as possible avoid making such transfers if it possesses cash or liquid
assets in the currencies which it needs.
The Commission shall deal with each Member State through the authority
designated by the State concerned. In carrying out financial operations
the Commission shall employ the services of the bank of issue of the
Member State concerned or of any other financial institution approved by
that State.
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 procedures 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
controliers, authorising officers and accounting officers and
concerning appropriate arrangements for inspection.
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 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.
Part Five. Institutions of the Community
TITLE I. PROVISIONS GOVERNING THE INSTITUTIONS
CHAPTER 1. THE INSTITUTIONS
Section 1. The European Parliament
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.
Article 138. 1. The European Parliament shall consist of delegates who
shall be designated by the respective Parliaments from among their
members in accordance with the procedure laid down by each Member State.
2. The number of these delegates shall be as follows:
Belgium 14
Denmark 10
Germany 36
France 36
Ireland 10
Italy 36
Luxembourg 6
The Netherlands 14
United Kingdom 36
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.
[NB. Article 138(1) and (2) lapsed on 17 July 1979 in accordance with the
Council Decision and Act of 20 September 1976 on Direct Elections.
Articles 1 and 2 as amended are as follows
Council Decision and Act of 20 September 1976
on Direct Elections
Article 1. The representatives in the European Parliament of the peoples
of the State brought together in the Community shall be elected by direct
universal suffrage.
Article 2. The number of representatives elected in each Member State
shall be as follows:
Belgium 25
Denmark 16
Germany 99
Greece 25
Spain 64
France 87
Ireland 15
Italy 87
Luxembourg 6
The Netherlands 31
Portugal 25
United Kingdom 87
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 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 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 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.
Article 139. The European Parliament shall hold an annual session. It
shall meet, without requiring to be convened, on the second Tuesday in
March.
The European Parliament may meet in extraordinary session at the request
of a majority of its members or at the request of the Council or of the
Commission.
Article 140. The European Parliament shall elect its President and its
officers from among its members.
Members of the Commission may attend all meetings and shall, at their
request, be heard on behalf of the Commission.
The Commission shall reply orally or in writing to questions put to it by
the European Parliament or by its members.
The Council shall be heard by the European Parliament in accordance with
the conditions laid down by the Council in its rules of procedure.
Article 141. Save as otherwise provided in this Treaty, the European
Parliament shall act by an absolute majority of the votes cast.
The rules of procedure shall determine the quorum.
Article 142. The European Parliament shall adopt its rules of procedure,
acting by a majority of its members.
The proceedings of the European Parliament shall be published in the
manner laid down in its rules of procedure.
Article 143. The European Parliament shall discuss in open session the
annual general report submitted to it by the Commission.
Article 144. 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 the 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
Art. 158. 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.
Section 2. The Council
Merger Treaty
Article 1. A Council of the European Communities (hereinafter called the
'Council') is hereby established. This Council shall take the place of
the Special Council of Ministers of the European Coal and Steel
Community, the Council of the European Economic Community and the Council
of the European Atomic Energy Community.
It shall exercise the powers and jurisdiction conferred on those
institutions in accordance with the provisions of the Treaties
established in the European Coal and Steel Community, the European
Economic Community and the European Atomic Energy Community, and of this
Treaty.
Article 145. To ensure that the objectives set out in this Treaty are
attained, the Council shall, in accordance with the provisions of this
Treaty:
-ensure co-ordination of the general economic policies of the Member
States;
-have power to take decisions;
- confer on the Commission, in the acts which the Council adopts,
powers for the implementation of the rules which the Council lays
down. The Council may impose certain requirements in respect of the
exercise of these powers. The Council may also reserve the right,
in specific cases, to exercise directly implementing powers itself.
The procedures referred to above must be consonant with principles
and rules to be laid down in advance by the Council, acting
unanimously on a proposal from the Commission and after obtaining
the opinion of the European Parliament.
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.
Article 147. 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.
Article 148. Save as otherwise provided in this Treaty, the Council shall
act by a majority of its members.
2. Where the Council is required to act by a qualified majority, the
votes of its members shall be weighted as follows:
Belgium 5
Denmark 3
Germany 10
Greece 5
Spain 8
France 10
Ireland 3
Italy 10
Luxembourg 2
The Netherlands 5
Portugal 5
United Kingdom 10
For their adoption, acts of the Council shall require at least:
54 votes in favour where this Treaty requires them to be adopted on a
proposal from the commission.
54 votes in favour, cast by at least eight members, in other cases.
3. Abstentions by members present in person or represented shall not
prevent the adoption by the Council of acts which require unanimity.
Article 149. [repealed]
Article 150. Where a vote is taken, any member of the Council may also
act on behalf of not more than one other member.
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.
Article 152. The Council may request the Commission to undertake any
studies which the Council considers desirable for the attainment of the
common objectives, and to submit to it any appropriate proposals.
Article 153. The Council shall, after receiving an opinion from the
Commission, determine the rules governing the committees provided for in
this Treaty.
Section 3. The Commission
Merger Treaty
Article 9. A Commission of the European Communities (hereinafter called
the 'Commission') is hereby established. This Commission shall take the
place of the High Authority of the European Coal and Steel Community, the
Commission of the European Community and the Commission of the European
Atomic Energy Community.
It shall exercise the powers and jurisdiction conferred on those
institutions in accordance with the provisions of the Treaties
establishing the European Coal and Steel Community, the European Economic
Community and the European Atomic Energy Community, and of this Treaty.
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.
Article 155. In order to ensure the proper functioning and development of
the common market, the Commission shall:
-ensure that the provisions of this Treaty and the measures taken by
the institutions pursuant thereto are applied;
-formulate recommendations or deliver opinions on matters dealt with
in this Treaty, if it expressly so provides or if the Commission
considers it necessary;
-have its power of decision and participate in the shaping of
measures taken by the Council and by the European Parliament in the
manner provided for in this Treaty;
-exercise the powers conferred on it by the Council for the
implementation of the rules laid down by the latter.
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 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 160 or deprived of his right to a pension or other 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 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 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 cooperation.
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.
Section 4. The Court of Justice
Article 164. The Court of Justice shall ensure that in the interpretation
and application of this Treaty the law is observed.
Article 165. The Court of Justice shall consist of 13 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 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 167.
Article 166. The Court of Justice shall be assisted by six Advocates-
General.
It shall be the duty of the Advocate-General, acting with complete
impartiality and independence, to make, in open court, reasoned
submissions on cases brought before the Court of Justice, in order to
assist the Court in the performance of the task assigned to it in Art.
164.
Should the Court of Justice so request, the Council may, acting
unanimously, increase the number of Advocates-General and make the
necessary adjustments to the third paragraph of Art. 167.
Article 167. The Judges and Advocates-General shall be chosen from
persons whose independence is beyond doubt and who possess the
qualifications required for appointment to the highest judicial offices
in their respective countries or who are juriconsults of recognised
competence; they shall be appointed by common accord of the Governments
of the Member States for a term of six years.
Every three years there shall be a partial replacement of the Judges.
Seven and six Judges shall be replaced alternately.
Every three years there shall be a partial replacement of the
Advocates-General. Three Advocates-General shall be replaced on each
occasion.
Retiring Judges and Advocates-General shall be eligible for
re-appointment.
The Judges shall elect the President of the Court of Justice from among
their number for a term of three years. He may be re-elected.
Article 168. The Court of Justice shall appoint its Registrar and lay
down the rules governing his service.
Article 168a. 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 deterrnine 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 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.
Article 169. If the Commission considers that a Member State has failed
to fulfil an obligation under this Treaty, it shall deliver a reasoned
opinion on the matter after giving the State concerned the opportunity to
submit its observations.
If the State concerned does not comply with the opinion within the period
laid down by the Commission the latter may bring the matter before the
Court of Justice.
Article 170. A Member State which considers that another Member State has
failed to fulfil an obligation under this Treaty may bring the matter
before the Court of Justice.
Before a Member State brings an action against another Member State for
an alleged infringement of an obligation under this Treaty, it shall
bring the matter before the Commission.
The Commission shall deliver a reasoned opinion after each of the States
concerned has been given the opportunity to submit its own case and its
observations on the other party's case both orally and in writing.
If the Commission has not delivered an opinion within three months of the
date on which the matter was brought before it, the absence of such
opinion shall not prevent the matter from being brought before the Court
of Justice.
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 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 170.
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 in regard to
the penalties provided for in such regulations.
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.
Article 174. If the action is well founded, the Court of Justice shall
declare the act concerned to be void.
In the case of a regulation, however, the Court of Justice shall, if it
considers this necessary, state which of the effects of the regulation
which it has declared void shall be considered as definitive.
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.
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.
Article 177. The Court of Justice shall have jurisdiction to give
preliminary rulings concerning:
(a)the interpretation of this 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 or 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, that court or tribunal shall bring the matter
before the Court of Justice.
Article 178. The Court of Justice shall have jurisdiction in disputes
relating to the compensation for damage provided for in the second
paragraph of Art. 215.
Article 179. The Court of Justice shall have jurisdiction in any dispute
between the Community and its servants within the limits and under the
conditions laid down in the Staff Regulations or the Conditions of
Employment.
Article 180. The Court of Justice shall, within the limits hereinafter
laid down, have jurisdiction in disputes concerning:
(a)the fulfilment 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 or 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 fulfilment by 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 fulfil 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.
Article 181. 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 Community, whether that contract be
governed by public or private law.
Article 182. The Court of Justice shall have jurisdiction in any dispute
between Member States which relates to the subject matter of this Treaty
if the dispute is submitted to it under a special agreement between the
parties.
Article 183. Save where jurisdiction is conferred on the Court by this ~;
Treaty, disputes to which the Community is a party shall not on that
ground be excluded from the jurisdiction of the courts or tribunals of
the Member States.
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 i
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.
Article 185. Actions brought before the Court of Justice shall not have
suspensory effect. The Court of Justice may, however, if it considers
that circumstances so require, order that application of the contested
act be suspended.
Article 186. The Court of Justice may in any cases before it prescribe
any necessary interim measures.
Article 187. The judgments of the Court of Justice shall be enforceable
under the conditions laid down in Art. 192.
Article 188. The Statute of the Court of Justice is laid down in a
separate Protocol.
The Council may, acting unanimously at the request of the Court of
Justice and after consulting the Commission and the European Parliament,
amend the provisions of Title III of the Statute.
The Court of Justice shall adopt its rules of procedure. These shall
require the unanimous approval of the Council.
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 fulfils 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 management 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 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
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 imptementation of the budget.
CHAPTER 2. PROVISIONS COMMON TO SEVERAL INSTITUTIONS
Article 189. In order to carry out their task and in accordance with the
provisions of this Treaty, the European Parliament acting jointly with
the Council, the Council and the Commission shall make regulations and
issue directives, take decisions, 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.
Article 189a. 1. Where, in pursuance of this 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 this Treaty to this Article
for the adoption of an act, the following procedure 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, acting 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
representatives 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 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 to 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's 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.
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.
Article 191. 1. Regulations, directives and decisions adopted in
accordance with the procedure referred to in Article 189b shall be signed
by the President of the European Parliament and by the President of the
Council and 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.
2. Regulations of the Council and of the Commission, as well as
directives of those institutions which are addressed 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 to whom they
are addressed and shall take effect upon such notification.
Article 192. Decisions of the Council or of the Commission which impose a
pecuniary obligation on persons other than States shall be enforceable.
Enforcement shall be governed by the rules of civil procedure in force in
the State in the territory of which it is carried out. The order for its
enforcement shall be appended to the decision, without other formality
than verification of the authenticity of the decision, by the national
authority which the Government of each Member State shall designate for
this purpose and shall make known to the Commission and to the Court of
Justice.
When these formalities have been completed on application by the party
concerned, the latter may proceed to enforcement in accordance with the
national law, by bringing the matter directly before the competent
authority.
Enforcement may be suspended only by a decision of the Court of Justice.
However, the courts of the country concerned shall have jurisdiction over
complaints that enforcement is being carried out in an irregular manner.
CHAPTER 3. THE ECONOMIC AND SOCIAL COMMITTEE
Article 193. An Economic and Social Committee is hereby established.
It shall have advisory status.
The Committee shall consist of representatives of the various categories
of economic and social activity, in particular, representatives of
producers, farmers, carriers, workers, dealers, craftsmen, professional
occupations and representatives of the general public.
Article 194. The number of members of the Committee shall be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
The 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.
Article 195. 1. For the appointment of the members of the Committee, each
Member State shall provide the Council with a list containing twice as
many candidates as there are seats allotted to its nationals.
The composition of the Committee shall take account of the need to ensure
adequate representation of the various categories of economic and social
activity.
2. The Council shall consult the Commission. It may obtain the opinion of
European bodies which are representative of the various economic and
social sectors to which the activities of the Community are of concern.
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.
Article 197. The Committee shall include specialised sections for the
principal fields covered by this Treaty.
In particular, it shall contain an agricultural section and a transport
section, which are the subject of special provisions in the Titles
relating to agriculture and transport.
These specialised sections shall operate within the general terms of
reference of the Committee. They may not be consulted independently of
the Committee.
Sub-committees may also be established within the Committee to prepare,
on specific questions or in specific fields, draft opinions to be
submitted to the Committee for its consideration.
The rules of procedure shall lay down the methods of composition and the
terms of reference of the specialised sections and of the sub-committees.
Article 198. 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 take the initiative of issuing an opinion 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 specialised section,
together with a record of the proceedings, shall be forwarded to the
Council and to the Commission.
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 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.
Where the Economic and Social Committee is consulted pursuant to Article
198, the Committee of the Regions shall be informed by the Council or the
Commission of the request for an opinion. Where it considers that
specific regions' interests are involved, the Committee of the Regions
may issue an opinion on the matter.
It may take the initiative of issuing an opinion 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.
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.
TITLE II. FINANCIAL PROVISIONS
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.
The administrative expenditure occasioned for the institutions by the
provisions of the Treaty on European Unity relating to common foreign and
security policy and to co-operation in the sphere 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.
Article 200. [repealed]
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.
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 that 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.
Article 202. The expenditure shown in the budget shall be authorised for
one financial year, unless the regulations made pursuant to Art. 209
provide otherwise.
In accordance with conditions to be laid down pursuant to Art. 209, any
appropriations, other than those relating to staff expenditure, that are
unexpended at the end of the financial year may be carried forward to the
next financial year only.
Appropriations shall be classified under different chapters grouping
items of expenditure according to their nature or purpose and subdivided,
as far as may be necessary, in accordance with the regulations made
pursuant to Art. 209.
The expenditure of the European Parliament, the Council, the Commission
and the Court of Justice shall be set out in separate parts of the
budget, without prejudice to special arrangements for certain common
items of expenditure.
Article 203. 1. The financial year shall run from 1 January to 31
December.
2. Each institution of the Community shall, before 1 July, draw up
estimates of its expenditure. The Commission shall consolidate these
estimates in a preliminary draft budget. It shall attach thereto an
opinion which may contain different estimates.
The preliminary draft budget shall contain an estimate of revenue and an
estimate of expenditure.
3. The Commission shall place the preliminary draft budget before the
Council not later than 1 September of the year preceding that in which
the budget is to be implemented.
The Council shall consult the Commission and, where appropriate, the
other institutions concerned whenever it intends to depart from the
preliminary draft budget.
The Council acting by a qualified majority, shall establish the draft
budget and forward it to the European Parliament.
4. The draft budget shall be placed before the European Parliament not
later than 5 October of the year preceding that in which the budget is to
be implemented.
The European Parliament shall have the right to amend the draft budget,
acting by a majority of its members, and to propose to the Council,
acting by an absolute majority of the votes cast, modifications to the
draft budget relating to expenditure necessarily resulting from this
Treaty or from acts adopted in accordance therewith.
If, within forty-five days of the draft budget being placed before it,
the European Parliament has given its approval, the budget shall stand as
finally adopted. If within this period the European Parliament has not
amended the draft budget nor proposed any modifications thereto, the
budget shall be deemed to be finally adopted.
d If within this period the European Parliament has adopted amendments or
proposed modifications, the draft budget together with the amendments or
proposed modifications shall be forwarded to the Council.
5. After discussing the draft budget with the Commission and, where
appropriate, with the other institutions concerned, the Council shall act
under the following conditions:
(a)The Council may, acting by a qualified majority, modify any of the
amendments adopted by the European Parliament;
(b)With regard to the proposed modifications:
- where a modification proposed by the European Parliament does
not have the effect of increasing the total amount of the
expenditure of an institution, owing in particular to the
fact that the increase in expenditure which it would involve
would be expressly compensated by one or more proposed
modifications correspondingly reducing expenditure, the
Council may, acting by a qualified ma.iority, rqect the
proposed modification. In the absence of a decision to reject
it, the proposed modification shall stand as accepted;
- where a modification proposed by the European Parliament has
the effect of increasing the total amount of the expenditure
of an institution, the Council may, acting by a qualified
majority, accept this proposed modification. In the absence
of a decision to accept it, the proposed modification shall
stand as rejected; where in pursuance of one of the two
preceding sub-paragraphs, the Council has rejected a proposed
modification, it may, acting by a qualified majority, either
retain the amount shown in the draft budget or fix another
amount.
The draft budget shall be modified on the basis of the proposed
modifications accepted by the Council.
If, within fifteen days of the draft budget being placed before it, the
Council has not modified any of the amendments adopted by the European
Parliament and if the modifications proposed by the latter have been
accepted, the budget shall be deemed to be finally adopted. The Council
shall inform the European Parliament that it has not modified any of the
amendments and that the proposed modifications have been accepted.
If, within this period the Council has modified one or more of the
amendments adopted by the European Parliament or if the modifications
proposed by the latter have been rejected or modified, the modified draft
budget shall again be forwarded to the European Parliament. The Council
shall inform the European Parliament of the results of its deliberations.
6. Within fifteen days of the draft budget being placed before it, the
European Parliament, which shall have been notified of the action taken
on its proposed modifications, may, acting by a majority of its members
and three-fifths of the votes cast, amend or reject the modifications to
its amendments made by the Council and shall adopt the budget
accordingly. If, within this period the European Parliament has not
acted, the budget shall be deemed to be finally adopted.
7. When the procedure provided for in this Article has been completed the
President of the European Parliament shall declare that the budget has
been finally adopted.
8. However, the European Parliament, acting by a majority of its members
and two-thirds of the votes cast, may if there are important reasons
reject the draft budget and ask for a new draft to be submitted to it.
9. A maximum rate of increase in relation to the expenditure of the same
type to be incurred during the current year shall be fixed annually for
the total expenditure other than that necessarily resulting from this
Treaty or from acts adopted in accordance therewith.
The Commission shall, after consulting the Economic Policy Committee,
declare what this maximum rate is as it results from:
-the trend, in terms of volume, of the gross national products
within the Community;
-the average variation in the budgets of the Member States; and
-the trend of the cost of living during the preceding financial
year.
The maximum rate shall be communicated, before 1 May, to all the
institutions of the Community. The latter shall be required to conform to
this during the budgetary procedure, subject to the provisions of the
fourth and fifth subparagraphs of this paragraph.
If, in respect of expenditure other than that necessarily resulting from
this Treaty or from acts adopted in accordance therewith, the actual rate
of increase in the draft budget established by the Council is over half
the maximum rate, the European Parliament may, exercising its right of
amendment, further increase the total amount of that expenditure to a
limit not exceeding half the maximum rate.
Where the European Parliament, the Council or the Commission consider
that the activities of the Communities require that the rate determined
according to the procedure laid down in this paragraph should be
exceeded, another rate may be fixed by agreement between the Council,
acting by a qualified majority, and the European Parliament, acting by a
majority of its members and three-fifths of the votes cast.
10. Each institution shall exercise the powers conferred upon it by this
Article, with due regard for the provisions of the Treaty and for acts
adopted in accordance therewith, in particular those relating to the
Communities' own resources and to the balance between revenue and
expenditure.
Article 204. If, at the beginning of a financial year, the budget has not
yet been voted, a sum equivalent to not more than one-twelfth of the
budget appropriations for the preceding financial year may be spent each
month in respect of any chapter or other subdivision of the budget in
accordance with the provisions of the regulations made pursuant to Art.
209; this arrangement shall not, however, have the effect of placing at
the disposal of the Commission appropriations in excess of one-twelfth of
those provided for in the draft budget in course of preparation.
The Council may, acting by a qualified majority, provided that the other
conditions laid down in the first subparagraph are observed, authorise
expenditure in excess of one-twelfth.
If the decision relates to expenditure which does not necessarily result
from this Treaty or from acts adopted in accordance therewith, the
Council shall forward it immediately to the European Parliament; within
thirty days the European Parliament, acting by a majority of its members
and three-fifths of the votes cast, may adopt a different decision on the
expenditure in excess of the one-twelfth referred to in the first
subparagraph. This part of the decision of the Council shall be suspended
until the European Parliament has taken its decision. If within the
period the European Parliament has not taken a decision which differs
from the decision of the Council, the latter shall be deemed to be
finally adopted.
The decisions referred to in the second and third subparagraphs shall lay
down the necessary measures relating to resources to ensure application
of this Article.
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 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 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.
Article 205a. The Commission shall submit annually to the Council and to
the European Parliament the accounts of the preceding financial year
relating to the implementation of the budget. The Commission shall also
forward to them a financial statement of the assets and liabilities of
the Community.
Article 206. 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 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 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 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.
Article 206. [repealed]
Article 207. The budget shall be drawn up in the unit of account
determined in accordance with the provisions of the regulations made
pursuant to Art. 209.
The financial contributions provided for in Art. 200(1) shall be placed
at the disposal of the Community by the Member States in their national
currencies.
The available balances of these contributions shall be deposited with the
Treasuries of Member States or with bodies designated by them. While on
deposit, such funds shall retain the value corresponding to the parity,
at the date of deposit, in relation to the unit of account referred to in
the first paragraph.
The balances may be invested on terms to be agreed between the Commission
and the Member State concerned.
The regulations made pursuant to Art. 209 shall lay down the technical
conditions under which financial operations relating to the European
Social Fund shall be carried out.
Article 208. The Commission may, provided it notifies the competent
authorities of the Member States concerned, transfer into the currency of
one of the Member States its holdings in the currency of another Member
State, to the extent necessary to enable them to be used for purposes
which come within the scope of this Treaty. The Commission shall as far
as possible avoid making such transfers if it possesses cash or liquid
assets in the currencies which it needs.
The Commission shall deal with each Member State through the authority
designated by the State concerned. In carrying out financial operations
the Commission shall employ the services of the bank of issue of the
Member State concerned or of any other financial institution approved by
that State.
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 procedures 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
controliers, authorising officers and accounting officers and
concerning appropriate arrangements for inspection.
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 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.
Part Six. General and Final Provisions
Article 210. The Community shall have legal personality.
Article 211. In each of the Member States, the Community shall enjoy the
most extensive legal capacity accorded to legal persons under their laws;
it may, in particular, acquire or dispose of movable and immovable
property and may be a party to legal proceedings. To this end, the
Community shall be represented by the Commission.
[Article 212 was repealed by the Merger Treaty.]
Article 213. The Commission may, within the limits and under the
conditions laid down by the Council in accordance with the provisions of
this Treaty, collect any information and carry out any checks required
for the performance of the tasks entrusted to it.
Article 214. The members of the institutions of the Community, the
members of committees and the officials and other servants of the
Community shall be required, even after their duties have ceased, not to
disclose information of the kind covered by the obligation of
professional secrecy, in particular information about undertakings, their
business relations or their cost components.
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 laws 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.
Article 216. The seat of the institutions of the Community shall be
determined by common accord of the Governments of the Member States.
Article 217. The rules governing the languages of the institutions of the
Cornmunity shall, without prejudice to the provisions contained in the
rules of procedure of the Court of Justice, be determined by the Council,
acting unanimously.
[Article 218 was repealed by the Merger Treaty.]
Merger Treaty
Article 218. The European Communities shall enjoy in the territories of
the Member States such privileges and immunities as are necessary for the
performance of their tasks, under the conditions laid down in the
Protocol annexed to this Treaty. The same shall apply to the European
Investment Bank.
Article 219. Member States undertake not to submit a dispute concerning
the interpretation or application of this Treaty to any method of
settlement other than those provided for therein.
Article 220. Member States shall, so far as is necessary, enter into
negotiations with each other with a view to securing for the benefit of
their nationals:
- the protection of persons and the enjoyment and protection of
rights under the same conditions as those accorded by each State to
its own nationals;
- the abolition of double taxation within the Community;
- the mutual recognition of companies or firms within the meaning of
the second paragraph of Art. 58, the retention of legal personality
in the event of transfer of their seat from one country to another,
and the possibility of mergers between companies or firms governed
by the laws of different countries;
- the simplification of formalities governing the reciprocal
recognition and enforcement of judgments of courts or tribunals and
of arbitration awards.
Article 221. Within three years of the entry into force of this Treaty,
Member States shall accord nationals of the other Member States the same
treatment as their own nationals as regards participation in the capital
of companies or firms within the meaning of Art. 58, without prejudice to
the application of the other provisions of this Treaty.
Article 222. This Treaty shall in no way prejudice the rules in Member
States governing the system of property ownership.
Article 223. 1. The provisions of this Treaty shall not preclude the
application of the following rules:
(a)No Member State shall be obliged to supply information the
disclosure of which it considers contrary to the essential
interests of its security;
(b)Any Member State may take such measures as it considers necessary
for the protection of the essential interests of its security which
are connected with the production of or trade in arms, munitions
and war material; such measures shall not, however, adversely
affect the conditions of competition in the common market regarding
products which are not intended for specifically military purposes.
2. During the first year after the entry into force of this Treaty, the
Council shall, acting unanimously, draw up a list of products to which
the provisions of paragraph 1 (b) shall apply.
3. The Council may, acting unanimously on a proposal from the Commission,
make changes in this list.
Article 224. Member States shall consult each other with a view to taking
together the steps needed to prevent the functioning of the common market
being affected by measures which a Member State may be called upon to
take in the event of serious internal disturbance affecting the
maintenance of law and order, in the event of war or serious
international tension constituting a threat of war, or in order to carry
out obligations it has accepted for the purpose of maintaining peace and
international security.
Article 225. If measures taken in the circumstances referred to in Arts.
223 and 224 have the effect of distorting the conditions of competition
in the common market, the Commission shall, together with the State
concerned, examine how these measures can be adjusted to the rules laid
down in this Treaty.
By way of derogation from the procedure laid down in Arts. 169 and 170,
the Commission or any Member State may bring the matter directly before
the Court of Justice if it considers that another Member State is making
improper use of the powers provided for in Arts. 223 and 224. The Court
of Justice shall give its ruling in camera.
Article 226. 1. If, during the transitional period, difficulties arise
which are serious and liable to persist in any sector of the economy or
which could bring about serious deterioration in the economic situation
of a given area, a Member State may apply for authorisation to take
protective measures in order to rectify the situation and adjust the
sector concerned to the economy of the common market.
2. On application by the State concerned, the Commission shall, by
emergency procedure, determine without delay the protective measures
which it considers necessary, specifying the circumstances and the manner
in which they are to be put into effect.
3. The measures authorised under paragraph 2 may involve derogations from
the rules of this Treaty, to such an extent and for such periods as are
strictly necessary in order to attain the objectives referred to in
paragraph 1. Priority shall be given to such measures as will least
disturb the functioning of the common market.
Article 227. 1. This Treaty shall apply to the Kingdom of Belgium, the
Kingdom of Denmark, the 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,
the Portuguese Republic and the United Kingdom of Great Britain and
Northern Ireland.
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 Art. 40 (4);
- the liberalisation of services;
- the rules on competition;
- the protective measures provided for in Arts. 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 the 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 Art. 226, take care
that the economic and social development of these areas is made possible.
3. The special arrangements for association set out in Part Four of this
Treaty shall apply to the overseas countries and territories listed in
Annex IV to this Treaty.
This Treaty shall not apply to those overseas countries and territories
having special relations with the United Kingdom of Great Britain and
Northern Ireland which are not included in the aforementioned list.
4. The provisions of this Treaty shall apply to the European territories
for whose external relations a Member State is responsible.
5. Notwithstanding the preceding paragraphs:
(a)This Treaty shall not apply to the Faroe Islands.
(b)This Treaty shall not apply to the Sovereign Base Areas of the
United Kingdom of Great Britain and Northern Ireland in Cyprus.
(c)This Treaty shall apply to the Channel Islands and the Isle of Man
only to the extent necessary to ensure the implementation of the
arrangements for those islands set out in the Treaty concerning the
accession of new Member States to the European Community and to the
European Atomic Energy Community signed on 22 January 1972.
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 cooperation 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, empower 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 empowerment.
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.
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.
Article 229. It shall be for the Commission to ensure the maintenance of
all appropriate relations with the organs of the United Nations, of its
specialised agencies and of the General Agreement on Tariffs and Trade.
The Commission shall also maintain such relations as are appropriate with
all international organisations.
Article 230. The Community shall establish all appropriate forms of
co-operation with the Council of Europe.
Article 231. The Community shall establish close co-operation with the
Organisation for Economic Co-operation and Development, the details of
which shall be determined by common accord.
Article 232. 1. The provisions of this Treaty shall not affect the
provisions of the Treaty establishing the European Coal and Steel
Community, in particular as regards the rights and obligations of Member
States, the powers of the institutions of that Community and the rules
laid down by that Treaty for the functioning of the common market in coal
and steel.
2. The provisions of this Treaty shall not derogate from those of the
Treaty establishing the European Atomic Energy Community.
Article 233. The provisions of this Treaty shall not preclude the
existence or completion of regional unions between Belgium, Luxembourg
and the Netherlands, to the extent that the objectives of these regional
unions are not attained by application of this Treaty.
Article 234. The rights and obligations arising from agreements concluded
before the entry into force of this Treaty between one or more Member
States on the one hand, and one or more third countries on the other,
shall not be affected by the provisions of this Treaty.
To the extent that such agreements are not compatible with this Treaty,
the Member State or States concerned shall take all appropriate steps to
eliminate the incompatibilities established. Member States shall, where
necessary, assist each other to this end and shall, where appropriate,
adopt a common attitude.
In applying the agreements referred to in the first paragraph, Member
States shall take into account the fact that the advantages accorded
under this Treaty by each Member State form an integral part of the
establishment of the Community and are thereby inseparably linked with
the creation of common institutions, the conferring of powers upon them
and the granting of the same advantages by all the other Member States.
Article 235. If action by the Community should prove necessary to attain,
in the course of the operation of the common market, one of the
objectives of the Community and this Treaty has not provided the
necessary powers, the Council shall, acting unanimously on a proposal
from the Commission and after consulting the European Parliament, take
the appropriate measures.
Article 236. [repealed: see TEU art.N]
Article 237. [repealed: see TEU art.O]
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.
Article 239. The Protocols annexed to this Treaty by common accord of the
Member States shall form an integral part thereof.
Article 240. This Treaty is concluded for an unlimited period.
SETTING UP OF THE INSTITUTIONS
Article 241. The Council shall meet within one month of the entry into
force of this Treaty.
Article 242. The Council shall, within three months of its first meeting,
take all appropriate measures to constitute the Economic and Social
Committee.
Article 243. The European Parliament shall meet within two months of the
first meeting of the Council, having been convened by the President of
the Council, in order to elect its officers and draw up its rules of
procedure. Pending the election of its officers, the oldest member shall
take the chair.
Article 244. The Court of Justice shall take up its duties as soon as its
members have been appointed. Its first President shall be appointed for
three years in the same manner as its members.
The Court of Justice shall adopt its rules of procedure within three
months of taking up its duties.
No matter may be brought before the Court of Justice until its rules of
procedure have been published. The time within which an action must be
brought shall run only from the date of this publication.
Upon his appointment, the President of the Court of Justice shall
exercise the powers conferred upon him by this Treaty.
Article 245. The Commission shall take up its duties and assume the
responsibilities conferred upon it by this Treaty as soon as its members
have been appointed.
Upon taking up its duties, the Commission shall undertake the studies and
arrange the contacts needed for making an overall survey of the economic
situation of the Community.
Article 246. 1. The first financial year shall run from the date on which
this Treaty enters into force until 31 December following. Should this
Treaty, however, enter into force during the second half of the year, the
first financial year shall run until 31 December of the following year.
2. Until the budget for the first financial year has been established,
Member States shall make the Community interest-free advances which
shall be deducted from their financial contributions to the implementation of
the budget.
3. Until the Staff Regulations of officials and the Conditions of
Employment of other servants of the Community provided for in Art. 212
have been laid down, each institution shall recruit the staff it needs
and to this end conclude contracts of limited duration.
Each institution shall examine together with the Council any question
concerning the number, remuneration and distribution of posts.
FINAL PROVISIONS
Article 247. 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.
This Treaty shall enter into force on the first day of the month
following the deposit of the instrument of ratification by the last
signatory State to take this step. If, however, such deposit is made less
than fifteen days before the beginning of the following month, this
Treaty shall not enter into force until the first day of the second month
after the date of such deposit.
Article 248. This Treaty, drawn up in a single original in the Dutch,
French, German and Italian languages, all four texts being equally
authentic, shall be deposited in the archives of the Government of the
Italian Republic, which shall 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 Rome this twenty-fifth day of March in the year one thousand nine
hundred and fifty-seven.
[Here follow the signatures.]
Protocol on the Privileges and Immunities of the European Communities
The High Contracting Parties,
Considering that, in accordance with Art. 28 of the Treaty establishing a
Single Council and a Single Commission of the European Communities, these
Communities and the European Investment Bank 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 this
Treaty:
CHAPTER I. PROPERTY, FUNDS, ASSETS AND OPERATIONS OF THE EUROPEAN COMMUNITIES
Article 1. The premises and buildings of the Communities shall be
inviolable. They shall be exempt from search, requisition, confiscation
or expropriation. The property and assets of the Communities shall not be
the subject of any administrative or legal measure of constraint without
the authorisation of the Court of Justice.
Article 2. The archives of the Communities shall be inviolable.
Article 3. The Communities, their assets, revenues and other property
shall be exempt from all direct taxes.
The Governments of the Member States shall, wherever possible, take the
appropriate measures to remit or refund the amount of indirect taxes or
sales taxes included in the price of movable or immovable property, where
the Communities make, for their official use, substantial purchases the
price of which includes taxes of this kind. These provisions shall not be
applied, however, so as to have the effect of distorting competition
within the Communities.
No exemption shall be granted in respect of taxes and dues which amount
merely to charges for public utility services.
Article 4. The Communities shall be exempt from all customs duties,
prohibitions and restrictions on imports and exports in respect of
articles intended for their official use; articles so imported shall not
be disposed of, whether or not in return for payment, in the territory of
the country into which they have been imported, except under conditions
approved by the Government of that country.
The Communities shall also be exempt from any customs duties and any
prohibitions and restrictions on imports and exports in respect of their
publications.
Article 5. The European Coal and Steel Community may hold currency of
any kind and operate accounts in any currency.
CHAPTER II. COMMUNICATIONS AND LAlSSEZ-PASSER
Article 6. For their official communications and the transmission of all
their documents, the institutions of the Communities shall enjoy in the
territory of each Member State the treatment accorded by that State to
diplomatic missions.
Official correspondence and other official communications of the
institutions of the Communities shall not be subject to censorship.
Article 7. 1. Laissez-passer in a form to be prescribed by the Council,
which shall be recognised as valid travel documents by the authorities of
the Member States, may be issued to members and servants of the
institutions of the Communities by the Presidents of these institutions.
These laissez-passer shall be issued to officials and other servants
under conditions laid down in the Staff Regulations of officials and the
Conditions of Employment of other servants of the Communities.
The Commission may conclude agreements for these laissez-passer to be
recognised as valid travel documents within the territory of third
countries.
2. The provisions of Art. 6 of the Protocol on the Privileges and
Immunities of the European Coal and Steel Community shall, however,
remain applicable to members and servants of the institutions who are at
the date of entry into force of this Treaty in possession of the
laissez-passer provided for in that Article, until the provisions of
paragraph 1 of this Article are applied.
CHAPTER III. MEMBERS OF THE ASSEMBLY
Article 8. No administrative or other restriction shall be imposed on the
free movement of members of the European Parliament travelling to or from
the place of meeting of the European Parliament.
Members of the European Parliament shall, in respect of customs and
exchange control, be accorded:
(a)by their own Government, the same facilities as those accorded to
senior officials travelling abroad on temporary official missions;
(b)by the Governments of other Member States, the same facilities as
those accorded to representatives of foreign Governments on
temporary official missions.
Article 9. Members of the European Parliament shall not be subject to any
form of inquiry, detention or legal proceedings in respect of opinions
expressed or votes cast by them in the performance of their duties.
Article 10. During the sessions of the European Parliament, its members
shall enjoy:
(a)in the territory of their own State, the immunities accorded to
members of their parliament;
(b)in the territory of any other Member State, immunity from any
measure of detention and from legal proceedings.
Immunity shall likewise apply to members while they are travelling to and
from the place of meeting of the European Parliament.
Immunity cannot be claimed when a member is found in the act of
committing an offence and shall not prevent the European Parliament from
exercising its right to waive the immunity of one of its members.
CHAPTER IV. REPRESENTATIVES OF MEMBER STATES TAKING
PART IN THE WORK OF THE INSTITUTIONS OF THE EUROPEAN COMMUNITIES
Article 11. Representatives of Member States taking part in the work of
the institutions of the Communities, their advisers and technical experts
shall, in the performance of their duties and during their travel to and
from the place of meeting, enjoy the customary privileges, immunities and
facilities.
This Article shall also apply to members of the advisory bodies of the
Communities.
CHAPTER V. OFFICIALS AND OTHER SERVANTS OF THE EUROPEAN COMMUNITIES
Article 12. In the territory of each Member State and whatever their
nationality, officials and other servants of the Communities shall:
(a)subject to the provisions of the Treaties relating, on the one
hand, to the rules on the liability of officials and other servants
towards the Communities and, on the other hand, to the jurisdiction
of the Court in disputes between the Communities and their
officials and other servants, shall be immune from legal
proceedings in respect of acts performed by them in their official
capacity, including their words spoken or written. They shall
continue to enjoy this immunity after they have ceased to hold
office;
(b)together with their spouses and dependent members of their
families, not be subject to immigration restrictions or to
formalities for registration of aliens;
(c)in respect of currency or exchange regulations, be accorded the
same facilities as are customarily accorded to officials of
international organisations;
(d)enjoy the right to import free of duty their furniture and effects
at the time of first taking up their post in the country concerned,
and the right to re-export free of duty their furniture and
effects, on termination of their duties in that country, subject in
either case to the conditions considered to be necessary by the
Government of the country in which this right is exercised;
(e)have the right to import free of duty a motor car for their
personal use, acquired either in the country of their last
residence or in the country of which they are nationals on the
terms ruling in the home market in that country, and to re-export
it free of duty, subject in either case to the conditions
considered to be necessary by the Government of the country
concerned.
Article 13. Officials and other servants of the Communities shall be
liable to a tax for the benefit of the Communities on salaries, wages and
emoluments paid to them by the Communities, in accordance with the
conditions and procedure laid down by the Council, acting on a proposal
from the Commission.
They shall be exempt from national taxes on salaries, wages and
emoluments paid by the Communities.
Article 14. In the application of income tax, wealth tax and death duties
and in the application of conventions on the avoidance of double taxation
concluded between Member States of the Communities, officials and other
servants of the Communities who, solely by reason of the performance of
their duties in the services of the Communities, establish their
residence in the territory of a Member State other than their country of
domicile for tax purposes at the time of entering the service of the
Communities, shall be considered, both in the country of their actual
residence and in the country of domicile for tax purposes, as having
maintained their domicile in the latter country provided that it is a
member of the Communities. This provision shall also apply to a spouse to
the extent that the latter is not separately engaged in a gainful
occupation, and to children dependent on and in the care of the persons
referred to in this Article.
Movable property belonging to persons referred to in the first paragraph
and situated in the territory of the country where they are staying shall
be exempt from death duties in that country; such property shall, for the
assessment of such duty, be considered as being in the country of
domicile for tax purposes, subject to the rights of third countries and
to the possible application of provisions of international conventions on
double taxation.
Any domicile acquired solely by reason of the performance of duties in
the service of other international organisations shall not be taken into
consideration in applying the provisions of this Article.
Article 15. The Council shall, acting unanimously on a proposal from the
Commission, lay down the scheme of social security benefits for officials
and other servants of the Communities.
Article 16. The Council shall, acting on a proposal from the Commission
and after consulting the other institutions concerned, determine the
categories of officials and other servants of the Communities to whom the
provisions of Art. 12, the second paragraph of Art. 13, and Art. 14 shall
apply, in whole or in part.
The names, grades and addresses of officials and other servants included
in such categories shall be communicated periodically to the Governments
of the Member States.
CHAPTER VI. PRIVILEGES AND IMMUNITIES OF MISSIONS OF THIRD COUNTRIES ACCREDITED TO THE EUROPEAN COMMUNITIES
Article 17. The Member State in whose territory the Communities have
their seat shall accord the customary diplomatic immunities and
privileges to missions of third countries accredited to the Communities.
CHAPTER VII. GENERAL PROVISIONS
Article 18. Privileges, immunities and facilities shall be accorded to
officials and other servants of the Communities solely in the interests
of the Communities.
Each institution of the Communities shall be required to waive the
immunity accorded to an official or other servant wherever that
institution considers that the waiver of such immunity is not contrary to
the interests of the Communities.
Article 19. The institutions of the Communities shall, for the purpose of
applying this Protocol, co-operate with the responsible authorities of
the Member States concerned.
Article 20. Arts. 12 to 15 and Art. 18 shall apply to members of the
Commission.
Article 21. Arts. 12 to 15 and Art. 18 shall apply to the Judges, the
Advocates-General, the Registrar and the Assistant Rapporteurs of the
Court of Justice, without prejudice to the provisions of Art. 3 of the
Protocols on the Statute of the Court of Justice concerning immunity from
legal proceedings of Judges and Advocates-General.
Article 22. This Protocol shall also apply to the European Investment
Bank, to the members of its organs, to its staff and to the
representatives of the Member States taking part in its activities,
without prejudice to the provisions of the Protocol on the Statute of the
Bank.
The European Investment 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. Similarly, its
dissolution or liquidation shall not give rise to any imposition.
Finally, the activities of the Bank and of its organs carried on in
accordance with its Statute shall not be subject to any turnover tax.
In witness whereof, the undersigned Plenipotentiaries have signed this
Protocol.
Done at Brussels this 8 April 1965.
[Here follow the signatures.]
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.
[Added by TEU Protocol 7]
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