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The Treaty of the European Union

The Maastricht Treaty, 7th February, 1992.

Contributed by Neil McLachlan, nmclachlan@delphi.com

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

CONTENTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TITLE1
COMMON PROVISIONS

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

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

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

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

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

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

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

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

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

"CHAPTER 3
EDUCATION, VOCATIONAL TRAINING AND YOUTH
ARTICLE 126
1. The Community shall contribute to the development of quality
education by encouraging co-operation between Member States and, if
necessary, by supporting and supplementing their action, while fully
respecting the responsibility of the Member States for the content of
teaching and the organization of education systems and their cultural
and linguistic diversity.
2. Community action shall be aimed at:
- developing the European dimension in education, particularly
through the teaching and dissemination of the languages of the
Member States;
- encouraging mobility of students and teachers, inter alia by
encouraging the academic recognition of diplomas and periods of
study;
- promoting co-operation between educational establishments;
- developing exchanges of information and experience on issues
common to the education systems of the Member States;
- encouraging the development of youth exchanges and of exchanges
of socio-educational instructors;
- encouraging the development of distance education.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the field of education, in particular the Council of Europe
4. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b,
after consulting the Economic and Social Committee and the
Committee of the Regions, shall adopt incentive measures, excluding
any harmonization of the laws and regulations of the Member States;
- acting by a qualified majority on a proposal from the Commission,
shall adopt recommendations.
ARTICLE 127
1. The Community shall implement a vocational training policy which
shall support and supplement the action of the Member States, while
fully respecting the responsibility of the Member States for the content
and organization of vocational training.
2. Community action shall aim to:
- facilitate adaptation to industrial changes, in particular through
vocational training and retraining;
- improve initial and continuing vocational training in order to facilitate
vocational integration and reintegration into the labour market;
- facilitate access to vocational training and encourage mobility of
instructors and trainees and particularly young people;
- stimulate co-operation on training between educational or training
establishments and firms;
- develop exchanges of information and experience on issues
common to the training systems of the Member States.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the sphere of vocational training.
4. The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall adopt measures to contribute to the achievement of the
objectives referred to in this Article, excluding any harmonization of
the laws and regulations of the Member States."
37) The following shall be inserted:
"TITLE IX
Culture
ARTICLE 128
1. The Community shall contribute to the flowering of the cultures of
the Member States, while respecting their national and regional
diversity and at the same time bringing the common cultural heritage
to the fore.
2. Action by the Community shall be aimed at encouraging co-
operation between Member States and, if necessary, supporting and
supplementing their action in the following areas:
- improvement of the knowledge and dissemination of the culture and
history of the European peoples;
- conservation and safeguarding of cultural heritage of European
significance;
- non-commercial cultural exchanges;
- artistic and literary creation, including in the audiovisual sector.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the sphere of culture, in particular the Council of Europe.
4. The Community shall take cultural aspects into account in its action
under other provisions of this Treaty.
5. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b
and after consulting the Committee of the Regions, shall adopt
incentive measures, excluding any harmonization of the laws and
regulations of the Member States. The Council shall act unanimously
throughout the procedures referred to in Article 189b;
- acting unanimously on a proposal from the Commission, shall adopt
recommendations."
38) Titles IV, V, VI and VII shall be replaced by the following:
"TITLE X
Public Health
ARTICLE 129
1. The Community shall contribute towards ensuring a high level of
human health protection by encouraging co-operation between the
Member States and, if necessary, lending support to their action.
Community action shall be directed towards the prevention of
diseases, in particular the major health scourges, including drug
dependence, by promoting research into their causes and their
transmission, as well as health information and education.
Health protection requirements shall form a constituent part of the
Community's other policies.
2. Member States shall, in liaison with the Commission, co-ordinate
among themselves their policies and programmes in the areas
referred to in paragraph 1. The Commission may, in close contact with
the Member States, take any useful initiative to promote such co-
ordination.
3. The Community and the Member States shall foster co-operation
with third countries and the competent international organizations in
the sphere of public health.
4. In order to contribute to the achievement of the objectives referred
to in this Article, the Council:
- acting in accordance with the procedure referred to in Article 189b,
after consulting the Economic and Social Committee and the
Committee of the Regions, shall adopt incentive measures, excluding
any harmonization of the laws and regulations of the Member States;
- acting by a qualified majority on a proposal from the Commission,
shall adopt recommendations.
TITLE XI
Consumer protection
ARTICLE 129a
1. The Community shall contribute to the attainment of a high level of
consumer protection through:
(a) measures adopted pursuant to Article 100a in the context of the
completion of the internal market;
(b) specific action which supports and supplements the policy pursued
by the Member States to protect the health, safety and economic
interests of consumers and to provide adequate information to
consumers.
2. The Council, acting in accordance with the procedure referred to in
Article 189b and after consulting the Economic and Social Committee,
shall adopt the specific action referred to in paragraph 1(b).
3. Action adopted pursuant to paragraph 2 shall not prevent any
Member State from maintaining or introducing more stringent
protective measures. Such measures must be compatible with this
Treaty. The Commission shall be notified of them.
TITLE XII
Trans-European networks
ARTICLE 129b
1. To help achieve the objectives referred to in Articles 7a and 130a
and to enable citizens of the Union, economic operators and regional
and local communities to derive the full benefit from the setting up of
an area without internal frontiers, the Community shall contribute to
the establishment and development of trans-European networks in the
areas of transport, telecommunications and energy infrastructures.
2. Within the framework of a system of open and competitive markets,
action by the Community shall aim at promoting the interconnection
and inter-operability of national networks as well as access to such
networks. It shall take account in particular of the need to link island,
landlocked and peripheral regions with the central regions of the
Community.
ARTICLE 129c
1. In order to achieve the objectives referred to in Article 129b, the
Community:
- shall establish a series of guidelines covering the objectives,
priorities and broad lines of measures envisaged in the sphere of
trans-European networks; these guidelines shall identify projects of
common interest;
- shall implement any measures that may prove necessary to ensure
the inter-operability of the networks, in particular in the field of
technical standardization;
- may support the financial efforts made by the Member States for
projects of common interest financed by Member States, which are
identified in the framework of the guidelines referred to in the first
indent, particularly through feasibility studies, loan guarantees or
interest rate subsidies; the Community may also contribute, through
the Cohesion Fund to be set up no later than 31 December 1993
pursuant to Article 130d, to the financing of specific projects in
Member States in the area of transport infrastructure.
The Community's activities shall take into account the potential
economic viability of the projects.
2. Member States shall, in liaison with the Commission, co-ordinate
among themselves the policies pursued at national level which may
have a significant impact on the achievement of the objectives
referred to in Article 129b. The Commission may, in close co-operation
with the Member States, take any useful initiative to promote such co-
ordination.
3. The Community may decide to co-operate with third countries to
promote projects of mutual interest and to ensure the inter-operability
of networks.
ARTICLE 129d
The guidelines referred to in Article 129c(1) shall be adopted by the
Council, acting in accordance with the procedure referred to in Article
189b and after consulting the Economic and Social Committee and the
Committee of the Regions.
Guidelines and projects of common interest which relate to the
territory of a Member State shall require the approval of the Member
State concerned.
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee
and the Committee of the Regions, shall adopt the other measures
provided for in Article 129c(1).
TITLE XIII
Industry
ARTICLE 130
1. The Community and the Member States shall ensure that the
conditions necessary for the competitiveness of the Community's
industry exist.
For that purpose, in accordance with a system of open and competitive
markets, their action shall be aimed at:
- speeding up the adjustment of industry to structural changes;
- encouraging an environment favourable to initiative and to the
development of undertakings throughout the Community, particularly
small and medium-sized undertakings;
- encouraging an environment favourable to co-operation between
undertakings;
- fostering better exploitation of the industrial potential of policies of
innovation, research and technological development.
2. The Member States shall consult each other in liaison with the
Commission and, where necessary, shall co-ordinate their action. The
Commission may undertake any useful initiative to promote such co-
ordination.
3. The Community shall contribute to the achievement of the
objectives set out in paragraph 1 through the policies and activities it
pursues under other provisions of this Treaty. The Council, acting
unanimously on a proposal from the Commission, after consulting the
European Parliament and the Economic and Social Committee, may
decide on specific measures in support of action taken in the Member
States to achieve the objectives set out in paragraph 1.
This Title shall not provide a basis for the introduction by the
Community of any measure which could lead to a distortion of
competition.
TITLE XIV
Economic and social cohesion
ARTICLE 130a
In order to promote its overall harmonious development, the
Community shall develop and pursue its actions in leading to the
strengthening of its economic and social cohesion.
In particular, the Community shall aim at reducing the disparities
between the levels of development of the various regions and the
backwardness of the least-favoured regions, including rural areas.
ARTICLE 130b
Member States shall conduct their economic policies and shall co-
ordinate them is such a way as, in addition, to attain the objectives set
out in Article 130a. The formulation and implementation of the
Community's policies and actions and the implementation of the
internal market shall take into account the objectives set out in Article
130a and shall contribute to their achievement. The Community shall
also support the achievement of these objectives by the action it takes
through the Structural Funds (European Agricultural Guidance and
Guarantee Fund, Guidance Section; European Social Fund; European
Regional Development Fund), the European Investment Bank and
other existing financial instruments.
The Commission shall submit a report to the European Parliament, the
Council, the Economic and Social Committee and the Committee of the
Regions every three years on the progress made towards achieving
economic and social cohesion and on the manner in which the various
means provided for in this Article have contributed to it. This report
shall, if necessary, be accompanied by appropriate proposals.
If specific actions prove necessary outside the Funds and without
prejudice to the measures decided upon within the framework of the
other Community policies, such actions may be adopted by the
Council acting unanimously on a proposal from the Commission and
after consulting the European Parliament, the Economic and Social
Committee and the Committee of the Regions.
ARTICLE 130c
The European Regional Development Fund is intended to help redress
the main regional imbalances in the Community through participation
in the development and structural adjustments of regions whose
development is lagging behind and in the conversion of declining
industrial regions.
ARTICLE 130d
Without prejudice to Article 130e, the Council, acting unanimously on a
proposal from the Commission and after obtaining the assent of the
European Parliament and consulting the Economic and Social
Committee and the Committee of the Regions, shall define the tasks,
priority objectives and the organization of the Structural Funds, which
may involve grouping the Funds. The Council, acting by the same
procedure, shall also define the general rules applicable to them and
the provisions necessary to ensure their effectiveness and the co-
ordination of the Funds with one another and with the other existing
financial instruments.
The Council, acting in accordance with the same procedure, shall
before 31 December 1993 set up a Cohesion Fund to provide a
financial contribution to projects in the fields of environment and trans-
European networks in the area of transport infrastructure.
ARTICLE 130e
Implementing decisions relating to the European Regional
Development Fund shall be taken by the Council, acting in accordance
with the procedure referred to in Article 189c and after consulting the
Economic and Social Committee and the Committee of the Regions.
With regard to the European Agricultural Guidance and Guarantee
Fund - Guidance Section, and the European Social Fund, articles 43
and 125 respectively shall continue to apply.
TITLE XV
Research and technological development
ARTICLE 130f
1. The Community shall have the objective of strengthening the
scientific and technological bases of Community industry and
encouraging it to become more competitive at international level, while
promoting all the research activities deemed necessary by virtue of
other Chapters of this Treaty.
2. For this purpose the Community shall, throughout the Community,
encourage undertakings, including small and medium-sized
undertakings, research centres and universities in their research and
technological development activities of high quality; it shall support
their efforts to co-operate with one another, aiming, notably, at
enabling undertakings to exploit the internal market potential to the
full, in particular through the opening up of national public contracts,
the definition of common standards and the removal of legal and fiscal
obstacles to that co-operation.
3. All community activities under this Treaty in the area of research
and technological development, including demonstration projects,
shall be decided on and implemented in accordance with the
provisions of this Title.
ARTICLE 130g
In pursuing these objectives, the Community shall carry out the
following activities, complementing the objectives complementing the
activities carried out in the Member States:
(a) implementation of research, technological development and
demonstration programmes, by promoting co-operation with and
between undertakings, research centres and universities;
(b) promotion of co-operation in the field of Community research,
technological development and demonstration with third countries and
international organizations;
(c) dissemination and optimization of the results of activities in
Community research, technological development and demonstration;
(d) stimulation of the training and mobility of researchers in the
Community.
ARTICLE 130h
1. The Community and the Member States shall co-ordinate their
research and technological development activities so as to ensure
that national policies and Community policy are mutually consistent.
2. In close co-operation with the Member States, the Commission may
take any useful initiative to promote the co-ordination referred to in
paragraph 1.
ARTICLE 130i
1. A multiannual framework programme, setting out all activities of the
Community, shall be adopted by the Council, acting in accordance with
the procedure referred to in Article 189b after consulting the Economic
and Social Committee. The Council shall act unanimously throughout
the procedures referred to in Article 189b.
The framework programme shall:
- establish the scientific and technological objectives to be achieved
by the activities provided for in Article 130g and fix the relevant
priorities;
- indicate the broad lines of such activities;
- fix the maximum overall amount and the detailed rules for
Community financial participation in the framework programme and the
respective shares in each of the activities provided for.
2. The framework programme shall be adapted or supplemented as the
situation changes.
3. The framework programme shall be implemented through specific
programmes developed within each activity. Each specific programme
shall define the detailed rules for implementing it, fix its duration and
provide for the means deemed necessary. The sum of the amounts
deemed necessary, fixed in the specific programmes, may not exceed
the overall maximum amount fixed for the framework programme and
each activity.
4. The Council, acting by a qualified majority on a proposal from the
Commission and after consulting the European Parliament and the
Economic and Social Committee, shall adopt the specific programmes.
ARTICLE 130j
For the implementation of the multiannual framework programme the
Council shall:
- determine the rules for the participation of undertakings, research
centres and universities;
- lay down the rules governing the dissemination of research results.
ARTICLE 130k
In implementing the multiannual framework programmes,
supplementary programmes may be decided on involving the
participation of certain Member States only, which shall finance them
subject to possible Community participation.
The Council shall adopt the rules applicable to supplementary
programmes, particularly as regards the dissemination of knowledge
and access by other Member States.
ARTICLE 130l
In implementing the multiannual framework programme the Community
may make provision, in agreement with the Member States concerned,
for participation in research and development programmes undertaken
by several Member States, including participation in the structures
created for the execution of those programmes.
ARTICLE 130m
In implementing the multiannual framework programme the Community
may make provision for co-operation in Community research,
technological development and demonstration with third countries or
international organizations.
The detailed arrangements for such co-operation may be the subject of
agreements between the Community and the third parties concerned,
which shall be negotiated and concluded in accordance with Article
228.
ARTICLE 130n
The Community may set up joint undertakings or any other structure
necessary for the efficient execution of Community research,
technological development and demonstration programmes.
ARTICLE 130o
The Council, acting unanimously on a proposal from the Commission
and after consulting the European Parliament and the Economic and
Social Committee, shall adopt the provisions referred to in Article
130n.
The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall adopt the provisions referred to in Articles 130j to l. Adoption of
the supplementary programmes shall require the agreement of the
Member States concerned.
ARTICLE 130p
At the beginning of each year the Commission shall send a report to
the European Parliament and the Council. The report shall include
information on research and technological development activities and
the dissemination of results during the previous year, and the work
programme for the current year.
TITLE XVI
Environment
ARTICLE 130r
1. Community policy on the environment shall contribute to pursuit of
the following objectives:
- preserving, protecting and improving the quality of the environment;
- protecting human health;
- prudent and rational utilization of natural resources;
- promoting measures at international level to deal with regional or
worldwide environmental problems.
2. Community policy on the environment shall aim at a high level of
protection taking into account the diversity of situations in the various
regions of the Community. It shall be based on the precautionary

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