HIS MAJESTY THE KING OF THE BELGIANS,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF IRELAND,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND,
RESOLVED to mark a new stage in the process of European integration
undertaken with the establishment of the European Communities,
RECALLING the historic importance of the ending of the division of the
European continent and the need to create firm bases for the construction of the
future Europe,
CONFIRMING their attachment to the principles of liberty, democracy and
respect for human rights and fundamental freedoms and of the rule of law,
DESIRING to deepen the solidarity between their peoples while respecting
their history, their culture and their traditions,
DESIRING to enhance further the democratic and efficient functioning of
the institutions so as to enable them better to carry out, within a single
institutional framework, the tasks entrusted to them,
RESOLVED to achieve the strengthening and the convergence of their
economies and to establish an economic and monetary union including, in
accordance with the provisions of this Treaty, a single and stable currency,
DETERMINED to promote economic and social progress for their peoples,
within the context of the accomplishment of the internal market and of
reinforced cohesion and environmental protection, and to implement policies
ensuring that advances in economic integration are accompanied by parallel
progress in other fields,
RESOLVED to establish a citizenship common to nationals of their
countries,
RESOLVED to implement a common foreign and security policy including the
eventual framing of a common defence policy, which might in time lead to a
common defence, thereby reinforcing the European identity and its independence
in order to promote peace, security and progress in Europe and in the world,
REAFFIRMING their objective to facilitate the free movement of persons,
while ensuring the safety and security of their peoples, by including provisions
on justice and home affairs in this Treaty,
RESOLVED to continue the process of creating an ever closer union among
the peoples of Europe, in which decisions are taken as closely as possible to
the citizen in accordance with the principle of subsidiarity,
IN VIEW of further steps to be taken in order to advance European
integration,
HAVE DECIDED to establish a European Union and to this end have
designated as their plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS:
Mark EYSKENS,
Minister for Foreign Affairs;
Philippe MAYSTADT,
Minister for Finance;
HER MAJESTY THE QUEEN OF DENMARK:
Uffe ELLEMANN-JENSEN,
Minister for Foreign Affairs;
Anders FOGH RASMUSSEN,
Minister for Economic Affairs;
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:
Hans-Dietrich GENSCHER,
Federal Minister for Foreign Affairs;
Theodor WAIGEL,
Federal Minister for Finance;
THE PRESIDENT OF THE HELLENIC REPUBLIC:
Antonios SAMARAS,
Minister for Foreign Affairs;
Efthymios CHRISTODOULOU,
Minister for Economic Affairs;
HIS MAJESTY THE KING OF SPAIN:
Francisco FERNÁNDEZ ORDÓÑEZ,
Minister for Foreign Affairs;
Carlos SOLCHAGA CATALÁN,
Minister for Economic Affairs and Finance;
THE PRESIDENT OF THE FRENCH REPUBLIC:
Roland DUMAS,
Minister for Foreign Affairs;
Pierre BEREGOVOY,
Minister for Economic and Financial Affairs and the Budget;
THE PRESIDENT OF IRELAND:
Gerard COLLINS,
Minister for Foreign Affairs;
Bertie AHERN,
Minister for Finance;
THE PRESIDENT OF THE ITALIAN REPUBLIC:
Gianni DE MICHELIS,
Minister for Foreign Affairs;
Guido CARLI,
Minister for the Treasury;
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG:
Jacques F. POOS,
Deputy Prime Minister,
Minister for Foreign Affairs;
Jean-Claude JUNCKER,
Minister for Finance;
HER MAJESTY THE QUEEN OF THE NETHERLANDS:
Hans van den BROEK,
Minister for Foreign Affairs;
Willem KOK,
Minister for Finance;
THE PRESIDENT OF THE PORTUGUESE REPUBLIC:
João de Deus PINHEIRO,
Minister for Foreign Affairs;
Jorge BRAGA de MACEDO,
Minister for Finance;
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND:
The Rt. Hon. Douglas HURD,
Secretary of State for Foreign and Commonwealth Affairs;
The Hon. Francis MAUDE,
Financial Secretary to the Treasury;
WHO, having exchanged their full powers, found in good and due form, have
agreed as follows:
TITLE I
COMMON PROVISIONS
By this Treaty, the High Contracting Parties establish among themselves a
European Union, hereinafter called ‘the Union’.
This Treaty marks a new stage in the process of creating an ever closer
union among the peoples of Europe, in which decisions are taken as closely as
possible to the citizen.
The Union shall be founded on the European Communities, supplemented by
the policies and forms of cooperation established by this Treaty. Its task shall
be to organize, in a manner demonstrating consistency and solidarity, relations
between the Member States and between their peoples.
The Union shall set itself the following objectives:
- to promote economic and social progress which is balanced and
sustainable, in particular through the creation of an area without internal
frontiers, through the strengthening of economic and social cohesion and through
the establishment of economic and monetary union, ultimately including a single
currency in accordance with the provisions of this Treaty;
- to assert its identity on the international scene, in particular
through the implementation of a common foreign and security policy including the
eventual framing of a common defence policy, which might in time lead to a
common defence;
- to strengthen the protection of the rights and interests of the
nationals of its Member States through the introduction of a citizenship of the
Union;
- to develop close cooperation on justice and home affairs;
- to maintain in full the ‘acquis communautaire’ and build on it
with a view to considering, through the procedure referred to in Article N(2),
to what extent the policies and forms of cooperation introduced by this Treaty
may need to be revised with the aim of ensuring the effectiveness of the
mechanisms and the institutions of the Community.
The objectives of the Union shall be achieved as provided in this Treaty
and in accordance with the conditions and the timetable set out therein while
respecting the principle of subsidiarity as defined in Article 3b of the Treaty
establishing the European Community.
The Union shall be served by a single institutional framework which shall
ensure the consistency and the continuity of the activities carried out in order
to attain its objectives while respecting and building upon the ‘acquis
communautaire’.
The Union shall in particular ensure the consistency of its external
activities as a whole in the context of its external relations, security,
economic and development policies. The Council and the Commission shall be
responsible for ensuring such consistency. They shall ensure the implementation
of these policies, each in accordance with its respective powers.
The European Council shall provide the Union with the necessary impetus
for its development and shall define the general political guidelines thereof.
The European Council shall bring together the Heads of State or of
Government of the Member States and the President of the Commission. They shall
be assisted by the Ministers for Foreign Affairs of the Member States and by a
Member of the Commission. The European Council shall meet at least twice a year,
under the chairmanship of the Head of State or of Government of the Member State
which holds the Presidency of the Council.
The European Council shall submit to the European Parliament a report
after each of its meetings and a yearly written report on the progress achieved
by the Union.
The European Parliament, the Council, the Commission and the Court of
Justice shall exercise their powers under the conditions and for the purposes
provided for, on the one hand, by the provisions of the Treaties establishing
the European Communities and of the subsequent Treaties and Acts modifying and
supplementing them and, on the other hand, by the other provisions of this
Treaty.
1. The Union shall respect the national identities of its Member
States, whose systems of government are founded on the principles of democracy.
2. The Union shall respect fundamental rights, as guaranteed by the
European Convention for the Protection of Human Rights and Fundamental Freedoms
signed in Rome on 4 November 1950 and as they result from the constitutional
traditions common to the Member States, as general principles of Community law.
3. The Union shall provide itself with the means necessary to attain
its objectives and carry through its policies.
TITLE II
PROVISIONS AMENDING THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC
COMMUNITY WITH A VIEW TO ESTABLISHING THE EUROPEAN COMMUNITY
The Treaty establishing the European Economic Community shall be amended
in accordance with the provisions of this Article, in order to establish a
European Community.
A. Throughout the Treaty:
1) The term ‘European Economic Community’ shall be replaced
by the term ‘European Community’.
B. In Part One ‘Principles’:
2) Article 2 shall be replaced by the following:
‘Article 2
The Community shall have as its task, by establishing a common market and
an economic and monetary union and by implementing the common policies or
activities referred to in Articles 3 and 3a, to promote throughout the Community
a harmonious and balanced development of economic activities, sustainable and
non-inflationary growth respecting the environment, a high degree of convergence
of economic performance, a high level of employment and of social protection,
the raising of the standard of living and quality of life, and economic and
social cohesion and solidarity among Member States.’
3) Article 3 shall be replaced by the following:
‘Article 3
For the purposes set out in Article 2, the activities of the Community
shall include, as provided in this Treaty and in accordance with the timetable
set out therein:
(a) the elimination, as between Member States, of customs
duties and 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 internal market is not
distorted;
(h) the approximation of the laws of Member States to the extent required
for the functioning of the common market;
(i) a policy in the social sphere comprising a European Social Fund;
(j) the strengthening of economic and social cohesion;
(k) a policy in the sphere of the environment;
(l) the strengthening of the competitiveness of Community industry;
(m) the 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.’
4) The following Article shall be inserted:
‘Article 3a
1. For the purposes set out in Article 2, the activities of the Member
States and the Community shall include, as provided in this Treaty and in
accordance with the timetable set out therein, the adoption of an economic
policy which is based on the close 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.’
5) The following Article shall be inserted:
‘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.’
6) Article 4 shall be replaced by the following:
‘Article 4
1. The tasks entrusted to the Community shall be carried out by the
following institutions:
- a EUROPEAN PARLIAMENT,
- a COUNCIL,
- a COMMISSION,
- a COURT OF JUSTICE,
- a COURT OF AUDITORS.
Each institution shall act within the limits of the powers conferred upon
it by this Treaty.
2. The Council and the Commission shall be assisted by an Economic and
Social Committee and a Committee of the Regions acting in an advisory capacity.’
7) The following Articles shall be inserted:
‘Article 4a
A European System of Central Banks (hereinafter referred to as “ESCB”)
and a European Central Bank (hereinafter referred to as “ECB”) shall be
established in accordance with the procedures laid down in this Treaty; they
shall act within the limits of the powers conferred upon them by this Treaty and
by the Statute of the ESCB and of the ECB (hereinafter referred to as “Statute
of the ESCB”) annexed thereto.
Article 4b
A European Investment Bank is hereby established, which shall act within
the limits of the powers conferred upon it by this Treaty and the Statute
annexed thereto.’
8) Article 6 shall be deleted and Article 7 shall become Article 6.
Its second paragraph shall be replaced by the following:
‘The Council, acting in accordance with the procedure referred to in
Article 189c, may adopt rules designed to prohibit such discrimination.’
9) Articles 8, 8a, 8b and 8c shall become respectively
Articles 7, 7a, 7b and 7c.
C. The following Part shall be inserted:
‘PART TWO
CITIZENSHIP OF THE UNION
Article 8
1. Citizenship of the Union is hereby established.
Every person holding the nationality of a Member State shall be a citizen
of the Union.
2. Citizens of the Union shall enjoy the rights conferred by this Treaty
and shall be subject to the duties imposed thereby.
Article 8a
1. Every citizen of the Union shall have the right to move and reside
freely within the territory of the Member States, subject to the limitations and
conditions laid down in this Treaty and by the measures adopted to give it
effect.
2. The Council may adopt provisions with a view to facilitating the
exercise of the rights referred to in paragraph 1; save as otherwise provided in
this Treaty, the Council shall act unanimously on a proposal from the Commission
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.’
D. Parts Two and Three shall be grouped under the following Title:
‘PART THREE
COMMUNITY POLICIES’
and in this Part:
10) The first sentence of Article 49 shall be replaced by the
following:
‘As soon as this Treaty enters into force, the Council shall, acting in
accordance with the procedure referred to in Article 189b and after consulting
the Economic and Social Committee, issue directives or make regulations setting
out the measures required to bring about, by progressive stages, freedom of
movement for workers, as defined in Article 48, in particular:’
11) Article 54(2) shall be replaced by the following:
‘2. In order to implement this general programme or, in the absence of
such programme, in order to achieve a stage in attaining freedom of
establishment as regards a particular activity, the Council, acting in
accordance with the procedure referred to in Article 189b and after consulting
the Economic and Social Committee, shall act by means of directives.’
12) Article 56(2) shall be replaced by the following:
‘2. Before the end of the transitional period, the Council shall, acting
unanimously on a proposal from the Commission and after consulting the European
Parliament, issue directives for the coordination of the abovementioned
provisions laid down by law, regulation or administrative action. After the end
of the second stage, however, the Council shall, acting in accordance with the
procedure referred to in Article 189b, issue directives for the coordination of
such provisions as, in each Member State, are a matter for regulation or
administrative action.’
13) Article 57 shall be replaced by the following:
‘Article 57
1. In order to make it easier for persons to take up and pursue
activities as self-employed persons, the Council shall, acting in accordance
with the procedure referred to in Article 189b, issue directives for the mutual
recognition of diplomas, certificates and other evidence of formal
qualifications.
2. For the same purpose, the Council shall, before the end of the
transitional period, issue directives for the coordination 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.’
14) The title of Chapter 4 shall be replaced by the following:
‘Chapter 4
Capital and payments’
15) The following Articles shall be inserted:
‘Article 73a
As from 1 January 1994, Articles 67 to 73 shall be replaced by Articles
73b, c, d, e, f and g.
Article 73b
1. Within the framework of the provisions set out in this Chapter, all
restrictions on the movement of capital between Member States and between Member
States and third countries shall be prohibited.
2. Within the framework of the provisions set out in this Chapter, all
restrictions on payments between Member States and between Member States and
third countries shall be prohibited.
Article 73c
1. The provisions of Article 73b shall be without prejudice to the
application to third countries of any restrictions which exist on 31 December
1993 under national or Community law adopted in respect of the movement of
capital to or from third countries involving direct investment - including
investment in real estate -, establishment, the provision of financial services
or the admission of securities to capital markets.
2. Whilst endeavouring to achieve the objective of free movement of
capital between Member States and third countries to the greatest extent
possible and without prejudice to the other Chapters of this Treaty, the Council
may, acting by a qualified majority on a proposal from the Commission, adopt
measures on the movement of capital to or from third countries involving direct
investment - including investment in real estate -, establishment, the provision
of financial services or the admission of securities to capital markets.
Unanimity shall be required for measures under this paragraph which constitute a
step back in Community law as regards the liberalization of the movement of
capital to or from third countries.
Article 73d
1. The provisions of Article 73b shall be without prejudice to the right
of Member States:
(a) to apply the relevant 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 1995 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 cases envisaged in Article 228a, action by the Community is
deemed necessary, the Council may, in accordance with the procedure provided for
in Article 228a, take the necessary urgent measures on the movement of capital
and on payments as regards the third countries concerned.
2. Without prejudice to Article 224 and as long as the Council has not
taken measures pursuant to paragraph 1, a Member State may, for serious
political reasons and on grounds of urgency, take unilateral measures against a
third country with regard to capital movements and payments. The Commission and
the other Member States shall be informed of such measures by the date of their
entry into force at the latest.
The Council may, acting by a qualified majority on a proposal from the
Commission, decide that the Member State concerned shall amend or abolish such
measures. The President of the Council shall inform the European Parliament of
any such decision taken by the Council.
Article 73h
Until 1 January 1994, the following provisions shall be applicable:
1) Each Member State undertakes to authorize, in the currency of
the Member State in which the creditor or the beneficiary resides, any 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.’
16) Article 75 shall be replaced by the following:
‘Article 75
1. For the purpose of implementing Article 74, and taking into account
the distinctive features of transport, the Council shall, acting in accordance
with the procedure referred to in Article 189c and after consulting the Economic
and Social Committee, lay down:
(a) common rules applicable to international transport to or from
the territory of a Member State or passing across the territory of one or more
Member States;
(b) the conditions under which non-resident carriers may operate
transport services within a Member State;
(c) measures to improve transport safety;
(d) any other appropriate provisions.
2. The provisions referred to in (a) and (b) of paragraph 1 shall be laid
down during the transitional period.
3. By way of derogation from the procedure provided for in paragraph 1,
where the application of provisions concerning the principles of the regulatory
system for transport would be liable to have a serious effect on the standard of
living and on employment in certain areas and on the operation of transport
facilities, they shall be laid down by the Council acting unanimously on a
proposal from the Commission, after consulting the European Parliament and the
Economic and Social Committee. In so doing, the Council shall take into account
the need for adaptation to the economic development which will result from
establishing the common market.’
17) The title of Title I in Part Three shall be replaced by the
following:
‘TITLE V
COMMON RULES ON COMPETITION, TAXATION AND APPROXIMATION OF LAWS’
18) In Article 92(3):
- the following point shall be inserted:
‘(d) aid to promote culture and heritage conservation where such
aid does not affect trading conditions and competition in the Community to an
extent that is contrary to the common interest.’
- the present point (d) shall become (e).
19) Article 94 shall be replaced by the following:
‘Article 94
The Council, acting by a qualified majority on a proposal from the
Commission and after consulting the European Parliament, may make any
appropriate regulations for the application of Articles 92 and 93 and may in
particular determine the conditions in which Article 93(3) shall apply and the
categories of aid exempted from this procedure.’
20) Article 99 shall be replaced by the following:
‘Article 99
The Council shall, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and the Economic and Social
Committee, adopt provisions for the harmonization of legislation concerning
turnover taxes, excise duties and other forms of indirect taxation to the extent
that such harmonization is necessary to ensure the establishment and the
functioning of the internal market within the time limit laid down in Article
7a’.
21) Article 100 shall be replaced by the following:
‘Article 100
The Council shall, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and the Economic and Social
Committee, issue directives for the approximation of such laws, regulations or
administrative provisions of the Member States as directly affect the
establishment or functioning of the common market.’
22) Article 100a(1) shall be replaced by the following:
‘1. By way of derogation from Article 100 and save where otherwise
provided in this Treaty, the following provisions shall apply for the
achievement of the objectives set out in Article 7a. The Council shall, acting
in accordance with the procedure referred to in Article 189b and after
consulting the Economic and Social Committee, adopt the measures for the
approximation of the provisions laid down by law, regulation or administrative
action in Member States which have as their object the establishment and
functioning of the internal market.’
23) The following Article shall be inserted:
‘Article 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 adopt the decisions referred to
in paragraph 1 by a qualified majority. The Council shall, before that date,
acting by a qualified majority on a proposal from the Commission and after
consulting the European Parliament, adopt measures relating to a uniform format
for visas.
4. In the areas referred to in this Article, the Commission shall examine
any request made by a Member State that it submit a proposal to the Council.
5. This Article shall be without prejudice to the exercise of the
responsibilities incumbent upon the Member States with regard to the maintenance
of law and order and the safeguarding of internal security.
6. This Article shall apply to other areas if so decided pursuant to
Article K.9 of the provisions of the Treaty on European Union which relate to
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 areas covered by this Article shall remain in force until their
content has been replaced by directives or measures adopted pursuant to this
Article.’
24) The following Article shall be inserted:
‘Article 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.’
25) Title II, Chapters 1, 2 and 3 in Part Three shall be replaced by the
following:
‘TITLE VI
ECONOMIC AND MONETARY POLICY
Chapter 1
Economic policy
Article 102a
Member States shall conduct their economic policies with a view to
contributing to the achievement of the objectives of the Community, as defined
in Article 2, and in the context of the broad guidelines referred to in Article
103(2). The Member States and the Community shall act in accordance with the
principle of an open market economy with free competition, favouring an
efficient allocation of resources, and in compliance with the 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 the report from the
Council, discuss a conclusion on the broad guidelines of the economic policies
of the Member States and of the Community.
On the basis of this conclusion, the Council shall, acting by a qualified
majority, adopt a recommendation setting out these broad guidelines. The Council
shall inform the European Parliament of its recommendation.
3. In order to ensure closer 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. Paragraph 1 shall not apply to publicly-owned credit institutions
which, in the context of the supply of reserves by central banks, shall be given
the same treatment by national central banks and the ECB as private credit
institutions.
Article 104a
1. Any measure, not based on prudential considerations, establishing
privileged access by Community institutions or bodies, central governments,
regional, local or other public authorities, other bodies governed by public
law, or public undertakings of Member States to financial institutions shall be
prohibited.
2. The Council, acting in accordance with the procedure referred to in
Article 189c, shall, before 1 January 1994, specify definitions for the
application of the prohibition referred to in paragraph 1.
Article 104b
1. The Community shall not be liable for or assume the commitments of
central governments, regional, local or other public authorities, other bodies
governed by public law, or public undertakings of any Member State, without
prejudice to mutual financial guarantees for the joint execution of a specific
project. A Member State shall not be liable for or assume the 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 criteria:
(a) whether the ratio of the planned or actual government deficit
to gross domestic product exceeds a reference value, unless
- either the ratio has declined substantially and continuously and
reached a level that comes close to the reference value;
- or, alternatively, the excess over the reference value is only
exceptional and temporary and the ratio remains close to the reference value;
(b) whether the ratio of government debt to gross domestic product
exceeds a reference value, unless the ratio is sufficiently diminishing and
approaching the reference value at a satisfactory pace.
The reference values are specified in the Protocol on the excessive
deficit procedure annexed to this Treaty.
3. If a Member State does not fulfil the requirements under one or both
of these criteria, the Commission shall prepare a report. The report of the
Commission shall also take into account whether the government deficit exceeds
government investment expenditure and take into account all other relevant
factors, including the medium term economic and budgetary position of the Member
State.
The Commission may also prepare a report if, notwithstanding the
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 the Member State concerned to publish additional
information, to be specified by the Council, before issuing bonds and
securities;
- to invite the European Investment Bank to reconsider its lending
policy towards the Member State concerned;
- to require the Member State concerned to make a
non-interest-bearing deposit of an appropriate size with the Community until the
excessive deficit has, in the view of the Council, been corrected;
- to impose fines of an appropriate size.
The President of the Council shall inform the European Parliament of the
decisions taken.
12. The Council shall abrogate some or all of its decisions referred to
in paragraphs 6 to 9 and 11 to the extent that the excessive deficit in the
Member State concerned has, in the view of the Council, been corrected. If the
Council has previously made public recommendations, it shall, as soon as the
decision under paragraph 8 has been abrogated, make a public statement that an
excessive deficit in the Member State concerned no longer exists.
13. When taking the decisions referred to in paragraphs 7 to 9, 11 and
12, the Council shall act on a recommendation from the Commission by a majority
of two thirds of the votes of its members weighted in accordance with Article
148(2), excluding the votes of the representative of the Member State concerned.
14. Further provisions relating to the implementation of the procedure
described in this Article are set out in the Protocol on the excessive deficit
procedure annexed to this Treaty.
The Council shall, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and the ECB, adopt the appropriate
provisions which shall then replace the said Protocol.
Subject to the other provisions of this paragraph the Council shall,
before 1 January 1994, acting by a qualified majority on a proposal from the
Commission and after consulting the European Parliament, lay down detailed rules
and definitions for the application of the provisions of the said Protocol.
Chapter 2
Monetary policy
Article 105
1. The primary objective of the ESCB shall be to maintain price
stability. Without prejudice to the objective of price 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 in its fields of competence.
5. The ESCB shall contribute to the smooth conduct of policies pursued by
the competent authorities relating to the prudential supervision of credit
institutions and the stability of the financial system.
6. The Council may, acting unanimously on a proposal from the Commission
and after consulting the ECB and after receiving the assent of the European
Parliament, confer upon the ECB specific tasks concerning policies relating to
the prudential supervision of credit institutions and other financial
institutions with the exception of insurance undertakings.
Article 105a
1. The ECB shall have the exclusive right to authorize the issue of bank
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 and 25.2 of the Statute
of the ESCB and in cases which shall be laid down in the acts of the Council
referred to in Article 106(6);
- take decisions necessary for carrying out the tasks entrusted to
the ESCB under this Treaty and the Statute of the ESCB;
- make recommendations and deliver opinions.
2. A regulation shall have general application. It shall be binding in
its entirety and directly applicable in all Member States.
Recommendations and opinions shall have no binding force.
A decision shall be binding in its entirety upon those to whom it is
addressed.
Articles 190 to 192 shall apply to regulations and decisions adopted by
the ECB.
The ECB may decide to publish its decisions, recommendations and
opinions.
3. Within the limits and under the conditions adopted by the Council
under the procedure laid down in Article 106(6), the ECB shall be entitled to
impose fines or periodic penalty payments on undertakings for failure to comply
with obligations under its regulations and decisions.
Article 109
1. By way of derogation from Article 228, the Council may, acting
unanimously on a recommendation from the ECB or from the Commission, and after
consulting the ECB in an endeavour to reach a consensus consistent with the
objective of price stability, after consulting the European Parliament, in
accordance with the procedure in paragraph 3 for determining the arrangements,
conclude formal agreements on an exchange rate system for the ECU in relation to
non-Community currencies. The Council may, acting by a qualified majority on a
recommendation from the ECB or from the Commission, and after consulting the ECB
in an endeavour to reach a consensus consistent with the objective of price
stability, adopt, adjust or abandon the central rates of the ECU within the
exchange rate system. The President of the Council shall inform the European
Parliament of the adoption, adjustment or abandonment of the ECU central rates.
2. In the absence of an exchange rate system in relation to one or more
non-Community currencies as referred to in paragraph 1, the Council, acting by a
qualified majority either on a recommendation from the Commission and after
consulting the ECB or on a recommendation from the ECB, may formulate general
orientations for exchange rate policy in relation to these currencies. These
general orientations shall be without prejudice to the primary objective of the
ESCB to maintain price stability.
3. By way of derogation from Article 228, where agreements concerning
monetary or foreign exchange regime matters need to be negotiated by the
Community with one or more States or international organizations, the Council,
acting by a qualified majority on a recommendation from the Commission and after
consulting the ECB, shall decide the arrangements for the negotiation and for
the conclusion of such agreements. These arrangements shall ensure that the
Community expresses a single position. The Commission shall be fully associated
with the negotiations.
Agreements concluded in accordance with this paragraph shall be binding
on the institutions of the Community, on the ECB and on Member States.
4. Subject to paragraph 1, the Council shall, on a proposal from the
Commission and after consulting the ECB, acting by a qualified majority decide
on the position of the Community at international level as regards issues of
particular relevance to economic and monetary union and, acting unanimously,
decide its representation in compliance with the allocation of powers laid down
in Articles 103 and 105.
5. Without prejudice to Community competence and Community agreements as
regards economic and monetary union, Member States may negotiate in
international bodies and conclude international agreements.
Chapter 3
Institutional 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
prohibitions laid down in Article 73b, without prejudice to Article 73e, and in
Articles 104 and 104a(1);
- adopt, if necessary, with a view to permitting the assessment
provided for in subparagraph (b), multiannual programmes intended to ensure the
lasting convergence necessary for the achievement of economic and monetary
union, in particular with regard to price stability and sound public finances;
(b) the Council shall, on the basis of a report from the
Commission, assess the progress made with regard to economic and monetary
convergence, in particular with regard to price stability and sound public
finances, and the progress made with the implementation of Community law
concerning the internal market.
3. The 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, 109b and 109c(2) and (4) shall apply from the beginning of the
third stage.
4. In the second stage, Member States shall endeavour to avoid excessive
government deficits.
5. During the second stage, each Member State shall, as appropriate,
start the process leading to the independence of its central bank, 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 within the framework of the ESCB;
- promote the efficiency of cross-border payments;
- supervise the technical preparation of ECU bank notes.
At the latest by 31 December 1996, the EMI shall specify the regulatory,
organizational and logistical framework necessary for the ESCB to perform its
tasks in the third stage. This framework shall be submitted for decision to the
ECB at the date of its establishment.
4. The EMI, acting by a majority of two thirds of the members of its
Council, may:
- formulate opinions or recommendations on the overall orientation
of monetary policy and exchange rate policy as well as on related measures
introduced in each Member State;
- submit opinions or recommendations to Governments and to the
Council on policies which might affect the internal or external monetary
situation in the Community and, in particular, the functioning of the European
Monetary System;
- make recommendations to the monetary authorities of the Member
States concerning the conduct of 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 ECU, the results of the integration of
markets, the situation and development of the balances of payments on current
account and an examination of the development of unit labour costs and other
price indices.
2. On the basis of these reports, the Council, acting by a qualified
majority on a recommendation from the Commission, shall assess:
- for each Member State, whether it fulfils the necessary
conditions for the adoption of a single currency;
- 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 referred
to in Article 109j(2), acting by a qualified majority on a recommendation from
the Commission, decide whether any, and if so which, Member States shall have a
derogation as defined in paragraph 3 of this Article. Such Member States shall
in this Treaty be referred to as “Member States with a derogation”.
If the Council has confirmed which Member States fulfil the necessary
conditions for the adoption of a single currency, in accordance with Article
109j(4), those Member States which do not fulfil the conditions shall have a
derogation as defined in paragraph 3 of this Article. Such Member States shall
in this Treaty be referred to as “Member States with a derogation”.
2. At least once every two years, or at the request of a Member State
with a derogation, the Commission and the ECB shall report to the Council in
accordance with the procedure laid down in Article 109j(1). After consulting the
European Parliament and after discussion in the Council, meeting in the
composition of the Heads of State or of Government, the Council shall, acting by
a qualified majority on a proposal from the Commission, decide which Member
States with a derogation fulfil the necessary conditions on the basis of the
criteria set out in Article 109j(1), and abrogate the derogations of the Member
States concerned.
3. A derogation referred to in paragraph 1 shall entail that the
following Articles do not apply to the Member State concerned: Articles 104c(9)
and (11), 105(1), (2), (3) and (5), 105a, 108a, 109, 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 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
tasks of the EMI. The EMI shall go into liquidation upon the establishment of
the ECB; the modalities of liquidation are laid down in the Statute of the EMI.
3. If and as long as there are Member States with a derogation, and
without prejudice to Article 106(3) of this Treaty, the General Council of the
ECB referred to in Article 45 of the Statute of the ESCB shall be constituted as
a third decision-making body of the ECB.
4. At the starting date of the third stage, the Council shall, acting
with the unanimity of the Member States without 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.’
26) In Title II of Part Three, the title of Chapter 4 shall be
replaced by the following:
‘TITLE VII
COMMON COMMERCIAL POLICY’
27) Article 111 shall be repealed.
28) Article 113 shall be replaced by the following:
‘Article 113
1. The common commercial policy shall be based on uniform principles,
particularly in regard to changes in tariff rates, the conclusion of tariff and
trade agreements, the achievement of uniformity in measures of liberalization,
export policy and measures to protect trade such as those to be taken in the
event of dumping or subsidies.
2. The Commission shall submit proposals to the Council for implementing
the common commercial policy.
3. Where agreements with one or more States or international
organizations need to be negotiated, the Commission shall make recommendations
to the Council, which shall authorize the Commission to open the necessary
negotiations.
The Commission shall conduct these negotiations in consultation with a
special committee appointed by the Council to assist the Commission in this task
and within the framework of such directives as the Council may issue to it.
The relevant 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.’
29) Article 114 shall be repealed.
30) Article 115 shall be replaced by the following:
‘Article 115
In order to ensure that the execution of measures of commercial policy
taken in accordance with this Treaty by any Member State is not obstructed by
deflection of trade, or where differences between such measures lead to economic
difficulties in one or more Member States, the Commission shall recommend the
methods for the requisite cooperation between Member States. Failing this, the
Commission may authorize Member States to take the necessary protective
measures, the conditions and details of which it shall determine.
In case of urgency, Member States shall request authorization to take the
necessary measures themselves from the Commission, which shall take a decision
as soon as possible; the Member States concerned shall then notify the measures
to the other Member States. The Commission may decide at any time that the
Member States concerned shall amend or abolish the measures in question.
In the selection of such measures, priority shall be given to those which
cause the least disturbance to the functioning of the common market.’
31) Article 116 shall be repealed.
32) In Part Three, the title of Title III shall be replaced by the
following:
‘TITLE VIII
SOCIAL POLICY, EDUCATION, VOCATIONAL TRAINING AND YOUTH’
33) The first subparagraph of Article 118a(2) shall be replaced by the
following:
‘2. In order to help achieve the objective laid down in the first
paragraph, the Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee, shall adopt
by means of directives, minimum requirements for gradual implementation, having
regard to the conditions and technical rules obtaining in each of the Member
States.’
34) Article 123 shall be replaced by the following:
‘Article 123
In order to improve employment opportunities for workers in the internal
market and to contribute thereby to raising the standard of living, a European
Social Fund is hereby established in accordance with the provisions set out
below; it shall aim to render the employment of workers easier and to increase
their geographical and occupational mobility within the Community, and to
facilitate their adaptation to industrial changes and to changes in production
systems, in particular through vocational training and retraining.’
35) Article 125 shall be replaced by the following:
‘Article 125
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee, shall adopt
implementing decisions relating to the European Social Fund.’
36) Articles 126, 127 and 128 shall be replaced by the following:
‘Chapter 3
Education, vocational training and youth
Article 126
1. The Community shall contribute to the development of quality education
by encouraging 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 field of
education, in particular the Council of Europe.
4. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b,
after consulting the Economic and Social Committee and the Committee of the
Regions, shall adopt incentive measures, excluding any harmonization of the laws
and regulations of the Member States;
- acting by a qualified majority on a proposal from the Commission,
shall adopt recommendations.
Article 127
1. The Community shall implement a vocational training policy which shall
support and supplement the action of the Member States, while fully respecting
the responsibility of the Member States for the content and organization of
vocational training.
2. Community action shall aim to:
- facilitate adaptation to industrial changes, in particular
through vocational training and retraining;
- improve initial and continuing vocational training in order to
facilitate vocational integration and reintegration into the labour market;
- facilitate access to vocational training and encourage mobility
of instructors and trainees and particularly young people;
- stimulate 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 with
third countries and the competent international organizations in the sphere of
vocational training.
4. The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee, shall adopt
measures to contribute to the achievement of the objectives referred to in this
Article, excluding any harmonization of the laws and regulations of the Member
States.’
37) The following shall be inserted:
‘TITLE IX
CULTURE
Article 128
1. The Community shall contribute to the flowering of the cultures of the
Member States, while respecting their national and regional diversity and at the
same time bringing the common cultural heritage to the fore.
2. Action by the Community shall be aimed at encouraging 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.’
38) Titles IV, V, VI and VII shall be replaced by the following:
‘TITLE X
PUBLIC HEALTH
Article 129
1. The Community shall contribute towards ensuring a high level of human
health protection by encouraging 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 XI
CONSUMER PROTECTION
Article 129a
1. The Community shall contribute to the attainment of a high level of
consumer protection through:
(a) measures adopted pursuant to Article 100a in the context of the
completion of the internal market;
(b) specific action which supports and supplements the policy pursued by
the Member States to protect the health, safety and economic interests of
consumers and to provide adequate information to consumers.
2. The Council, acting in accordance with the procedure referred to in
Article 189b and after consulting the Economic and Social Committee, shall adopt
the specific action referred to in paragraph 1(b).
3. Action adopted pursuant to paragraph 2 shall not prevent any Member
State from maintaining or introducing more stringent protective measures. Such
measures must be compatible with this Treaty. The Commission shall be notified
of them.
TITLE XII
TRANS-EUROPEAN NETWORKS
Article 129b
1. To help achieve the objectives referred to in Articles 7a and 130a and
to enable citizens of the Union, economic operators and regional and local
communities to derive full benefit from the setting up of an area without
internal frontiers, the Community shall contribute to the establishment and
development of trans-European networks in the areas of transport,
telecommunications and energy infrastructures.
2. Within the framework of a system of open and competitive markets,
action by the Community shall aim at promoting the interconnection and
inter-operability of national networks as well as access to such networks. It
shall take account in particular of the need to link island, landlocked and
peripheral regions with the central regions of the Community.
Article 129c
1. In order to achieve the objectives referred to in Article 129b, the
Community:
- shall establish a series of guidelines covering the objectives,
priorities and broad lines of measures envisaged in the sphere of trans-European
networks; these guidelines shall identify projects of common interest;
- shall implement any measures that may prove necessary to ensure
the inter-operability of the networks, in particular in the field of technical
standardization;
- may support the financial efforts made by the Member States for
projects of common interest financed by Member States, which are identified in
the framework of the guidelines referred to in the first indent, particularly
through feasibility studies, loan guarantees or interest rate subsidies; the
Community may also contribute, through the Cohesion Fund to be set up no later
than 31 December 1993 pursuant to Article 130d, to the financing of specific
projects in Member States in the area of transport infrastructure.
The Community's activities shall take into account the potential economic
viability of the projects.
2. Member States shall, in liaison with the Commission, 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 bases of Community industry and encouraging it to become more
competitive at international level, while promoting all the research activities
deemed necessary by virtue of other Chapters of this Treaty.
2. For this purpose the Community shall, throughout the Community,
encourage undertakings, including small and medium-sized undertakings, research
centres and universities in their research and technological development
activities of high quality; it shall support their efforts to cooperate 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 cooperation.
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 cooperation with and between
undertakings, research centres and universities;
(b) promotion of cooperation in the field of Community research,
technological development and demonstration with third countries and
international organizations;
(c) dissemination and optimization of the results of activities in
Community research, technological development and demonstration;
(d) stimulation of the training and mobility of researchers in the
Community.
Article 130h
1. The Community and the Member States shall 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 cooperation in Community research, technological development
and demonstration with third countries or international organizations.
The detailed arrangements for such 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.
Article 130n
The Community may set up joint undertakings or any other structure
necessary for the efficient execution of Community research, technological
development and demonstration programmes.
Article 130o
The Council, acting unanimously on a proposal from the Commission and
after consulting the European Parliament and the Economic and Social Committee,
shall adopt the provisions referred to in Article 130n.
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee, shall adopt
the provisions referred to in Articles 130j to l. Adoption of the supplementary
programmes shall require the agreement of the Member States concerned.
Article 130p
At the beginning of each year the Commission shall send a report to the
European Parliament and the Council. The report shall include information on
research and technological development activities and the dissemination of
results during the previous year, and the work programme for the current year.
TITLE XVI
ENVIRONMENT
Article 130r
1. Community policy on the environment shall contribute to pursuit of the
following objectives:
- preserving, protecting and improving the quality of the
environment;
- protecting human health;
- prudent and rational utilization of natural resources;
- promoting measures at international level to deal with regional
or worldwide environmental problems.
2. Community policy on the environment shall aim at a high level of
protection taking into account the diversity of situations in the various
regions of the Community. It shall be based on the precautionary principle and
on the principles that 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
definition and implementation of other Community policies.
In this context, harmonization measures answering these requirements
shall include, where appropriate, a safeguard clause allowing Member States to
take provisional measures, for non-economic environmental reasons, subject to a
Community inspection procedure.
3. In preparing its policy on the environment, the Community shall take
account of:
- available scientific and technical data;
- environmental conditions in the various regions of the Community;
- the potential benefits and costs of action or lack of action;
- the economic and social development of the Community as a whole
and the balanced development of its regions.
4. Within their respective spheres of competence, the Community and the
Member States shall 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 subparagraph shall be without prejudice to Member States'
competence to negotiate in international bodies and to conclude international
agreements.
Article 130s
1. The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee, shall
decide what action is to be taken by the Community in order to achieve the
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