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The Treaty of the European Union

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principle and on the principles that preventative action should be
taken, that environmental damage should as a priority be rectified at
source and that the polluter should pay. Environmental protection
requirements must be integrated into the definition and
implementation of other Community policies.
In this context, harmonization measures answering these
requirements shall include, where appropriate, a safeguard clause
allowing Member States to take provisional measures, for non-
economic environmental reasons, subject to a Community inspection
procedure.
3. In preparing its policy on the environment, the Community shall take
account of:
- available scientific and technical data;
- environmental conditions in the various regions of the Community;
- the potential benefits and costs of action or lack of action;
- the economic and social development of the Community as a whole
and the balanced development of its regions.
4. Within their respective spheres of competence, the Community and
the Member States shall co-operate with third countries and with the
competent international organizations. The arrangements for
Community co-operation may be the subject of agreements between
the Community and the third parties concerned, which shall be
negotiated and concluded in accordance with Article 228.
The previous subparagraph shall be without prejudice to Member
States' competence to negotiate in international bodies and to
conclude international agreements.
ARTICLE 130s
1. The Council, acting in accordance with the procedure referred to in
Article 189c and after consulting the Economic and Social Committee,
shall decide what action is to be taken by the Community in order to
achieve the objective referred to in Article 130r.
2. By way of derogation from the decision-making procedure provided
for in paragraph 1 and without prejudice to Article 100a, the Council,
acting unanimously on a proposal from the Commission and after
consulting the European Parliament and the Economic and Social
Committee, shall adopt:
- provisions primarily of a fiscal nature;
- measures concerning town and country planning, land use with the
exception of waste management and measures of a general nature,
and management of water resources;
- measures significantly affecting a Member State's choice between
different energy sources and the general structure of its energy
supply.
The Council may, under the conditions laid down in the preceding
subparagraph,define those matters referred to in this paragraph on
which decisions are to be taken by a qualified majority.
3. In other areas, general action programmes setting out priority
objectives to be attained shall be adopted by the Council, acting in
accordance with the procedure referred to in Article 189b and after
consulting the Economic and Social Committee.
The Council, acting under the terms of paragraph 1 or paragraph 2
according to the case, shall adopt the measures necessary for the
implementation of these programmes.
4. Without prejudice to certain measures of a Community nature, the
Member States shall finance and implement the environment policy.
5. Without prejudice to the principle that the polluter should pay, if a
measure based on the provisions of paragraph 1 involves costs
deemed disproportionate for the public authorities of a Member State,
the Council shall, in the act adopting that measure, lay down
appropriate provisions in the form of:
- temporary derogations and/or
- financial support from the Cohesion Fund to be set up no later than
31 December 1993 pursuant to Article 130d.
ARTICLE 130t
The protective measures adopted pursuant to Article 130s shall not
prevent any Member State from maintaining or introducing more
stringent protective measures. Such measures must be compatible
with this Treaty. They shall be notified to the Commission.
TITLE XVII
Development co-operation
ARTICLE 130u
1. Community policy in the sphere of development co-operation, which
shall be complementary to the policies pursued by the Member States,
shall foster:
- the sustainable economic and social development of the developing
countries, and more particularly the most disadvantaged among them;
- the smooth and gradual integration of the developing countries into
the world economy;
- the campaign against poverty in the developing countries.
2. Community policy in this area shall contribute to the general
objective of developing and consolidating democracy and the rule of
law, and to that of respecting human rights and fundamental freedoms.
3. The Community and the Member State shall comply with the
commitments and take account of the objectives they have approved
in the context of the United Nations and other competent international
organizations.
ARTICLE 130v
The Community shall take account of the objectives referred to in
Article 130u in the policies that it implements which are likely to affect
developing countries.
ARTICLE 130w
1.. Without prejudice to the other provisions in this Treaty the Council,
acting in accordance with the procedure referred to in Article 189c,
shall adopt the measures necessary to further the objectives referred
to in Article 130u. Such measures may take the form of multiannual
programmes.
2. The European Investment Bank shall contribute, under the terms
laid down in its Statute, to the implementation of the measures
referred to in paragraph 1.
3. The provisions of this Article shall not affect co-operation with the
African, Caribbean and Pacific countries in the framework of the ACP-
EEC Convention.
ARTICLE 130x
1. The Community and the Member States shall co-ordinate their
policies on development co-operation and shall consult each other on
their aid programmes, including in international organizations and
during international conferences. They may undertake joint action.
Member States shall contribute if necessary to the implementation of
Community aid programmes.
2. The Commission may take any useful initiative to promote the co-
ordination referred to in paragraph 1.
ARTICLE 130y
Within their respective spheres of competence, the Community and
the Member States shall co-operate with third countries and with the
competent international organizations. The arrangements for
Community co-operation may be the subject of arrangements between
the Community and the third parties concerned, which shall be
negotiated and concluded in accordance with Article 228.
The previous paragraph shall be without prejudice to Members States'
competence to negotiate in international bodies and to conclude
international agreements."
E. In Part Five "Institutions of the Community"
39) Article 137 shall be replaced by the following:
"ARTICLE 137
The European Parliament, which shall consist of representatives of the
peoples of the States brought together in the Community, shall
exercise the powers conferred upon it by this Treaty."
40) Paragraph 3 of Article 138 shall be replaced by the following:
"3. The European Parliament shall draw up proposals for elections by
direct universal suffrage in accordance in accordance with a uniform
procedure in all Member States.
The Council shall, acting unanimously after obtaining the assent of the
European Parliament, which shall act by a majority of its component
members, lay down the appropriate provision, which it shall
recommend to Member States for adoption in accordance with their
respective constitutional requirements."
41) The following Article shall be inserted:
"ARTICLE 138a
Political parties at European level are important as a factor for
integration within the Union. They contribute to forming a European
awareness and to expressing the political will of the citizens of the
Union.
ARTICLE 138b
In so far as provided in this Treaty, the European Parliament shall
participate in the process leading up to the adoption of Community
acts by exercising its powers under the procedures laid down in
Articles 189b and 189c and by giving its assent or delivering advisory
opinions.
The European Parliament may, acting by a majority of its members,
request the Commission to submit any appropriate proposal on
matters on which it considers that a Community act is required for the
purpose of implementing this Treaty.
ARTICLE 138c
In the course of its duties, the European Parliament may, at the
request of a quarter of its members, set up a temporary Committee of
Inquiry to investigate, without prejudice to the powers conferred by
this Treaty on other institutions or bodies, alleged contraventions or
maladministration in the implementation of Community law, except
where the alleged facts are being examined before a court and while
the case is still subject to legal proceedings.
The temporary Committee of Inquiry shall cease to exist on the
submission of its report.
The detailed provisions governing the exercise of the right of inquiry
shall be determined by common accord of the European Parliament,
the Council and the Commission.
ARTICLE 138d
Any citizen of the Union, and any natural or legal person residing or
having his registered office in a Member State, shall have the right to
address, individually or in association with other citizens or persons,
a petition to the European Parliament on a matter which comes within
the Community's fields of activity and which affects him, her or it
directly.
ARTICLE 138e
1. The European Parliament shall appoint an Ombudsman empowered
to receive complaints from any citizen of the Union or any natural or
legal person residing or having its registered office in a Member State
concerning instances of maladministration in the activities of the
Community institutions or bodies, with the exception of the Court of
Justice and the Court of First Instance acting in their judicial role.
In accordance with his duties, the Ombudsman shall conduct inquiries
for which he finds grounds, either on his own initiative or on the basis
of complaints submitted to him direct or through a member of the
European Parliament, except where the alleged facts are or have been
the subject of legal proceedings. Where the Ombudsman establishes
an instance of maladministration, he shall refer the matter to the
institution concerned, which shall have a period of three months in
which to inform him of its views. The Ombudsman shall then forward a
report to the European Parliament and the institution concerned. The
person lodging the complaint shall be informed of the outcome of such
inquiries.
The Ombudsman shall submit an annual report to the European
Parliament on the outcome of his inquiries.
2. The Ombudsman shall be appointed after each election of the
European Parliament for the duration of its term of office. The
Ombudsman shall be eligible for reappointment.
The Ombudsman may be dismissed by the Court of Justice at the
request at the request of the European Parliament if he no longer
fulfils the conditions required for the performance of this duties or if he
is guilty of serious misconduct.
3. The Ombudsman shall be completely independent in the
performance of his duties. In the performance of those duties he shall
seek nor take instructions from any body. The Ombudsman may not,
during his term of office, engage in any other occupation, whether
gainful or not.
4. The European Parliament shall, after seeking an opinion from the
Commission and with the approval of the Council acting by a qualified
majority, lay down the regulations and general conditions governing
the Ombudsman's duties."
42) The second subparagraph of Article 144 shall be supplemented by
the following sentence:
"In this case, the term of office of the members of the Commission
appointed to replace them shall expire on the date which the term of
office of the members of the Commission obliged to resign as a body
would have expired."
43) The following Article shall be inserted:
"ARTICLE 146
The Council shall consist of a representative of each Member State at
ministerial level, authorized to commit the government of that Member
State.
The office of President shall be held in turn by each Member State in
the Council for a term of six months, in the following order of Member
States:
- for a first cycle of six years: Belgium, Denmark, Germany, Greece,
Spain, France, Ireland, Italy, Luxembourg, Netherlands, Portugal,
United Kingdom;
- for the following cycle of six years: Denmark, Belgium, Greece,
Germany, France, Spain, Italy, Ireland, Netherlands, Luxembourg,
United Kingdom, Portugal.
44) The following Article shall be inserted:
"ARTICLE 147
The Council shall meet when convened by its President on his
initiative or at the request of one of its members or of the
Commission."
45) Article 149 shall be repealed.
46) The following Article shall be inserted:
"ARTICLE 151
1. A committee consisting of the Permanent Representatives of the
Member States shall be responsible for preparing the work of the
Council and for carrying out the tasks assigned to it by the Council.
2. The Council shall be assisted by a General Secretariat, under the
direction of a Secretary-General. The Secretary-General shall be
appointed by the Council acting unanimously.
The Council shall decide on the organization of the General
Secretariat.
3. The Council shall adopt its rules of procedure."
47) The following Article shall be inserted:
"ARTICLE 154
The Council shall, acting by a qualified majority, determine the
salaries, allowances and pensions of the President and members of
the Commission, and of the president, Judges, Advocates-General and
Registrar of the Court of Justice. It shall also, again by a qualified
majority, determine any payment to be made instead of remuneration."
48) The following Articles shall be inserted:
"ARTICLE 156
The Commission shall publish annually, not later than one month
before the opening of the session of the European Parliament, a
general report on the activities of the Community.
ARTICLE 157
1. The Commission shall consist of seventeen members, who shall be
chosen on the grounds of their general competence and whose
independence is beyond doubt.
The number of members of the Commission may be altered by the
Council, acting unanimously.
Only nationals of Member States may be members of the Commission.
The Commission must include at least one national of each of the
Member States, but may not include more than two members having
the nationality of the same State.
2. The members of the Commission shall, in the general interest of the
Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties. Each Member
State undertakes to respect this principle and not to seek to influence
the members of the Commission in the performance of their tasks.
The members of the Commission may not, during their term of office,
engage in any other occupation, whether gainful or not. When entering
upon their duties they shall give a solemn undertaking that, both
during and after their term of office, they will respect the obligations
arising therefrom and in particular their duty to behave with integrity
and discretion as regards the acceptance, after they have ceased to
hold office, of certain appointments or benefits. In the events of any
breach of these obligations, the Court of Justice may, on application
by the Council or the Commission, rule that the member concerned be,
according to the circumstances, either compulsorily retired in
accordance with Article 160 or deprived of his rights to a pension or
benefits in its stead.
ARTICLE 158
1. The members of the Commission shall be appointed, in accordance
with the procedure referred to in paragraph 2, for a period of five
years, subject, if need be, to Article 144.
Their term of office shall be renewable.
2. The governments of the Member States shall nominate by common
accord, after consulting the European Parliament, the person they
intend to appoint as President of the Commission.
The governments of the Member States shall, in consultation with the
nominee for President, nominate the other persons whom they intend
to appoint as members of the Commission.
The President and the other members of the Commission thus
nominated shall be subject as a body to a vote of approval by the
European Parliament. After approval by the European parliament, the
President and the other members of the Commission shall be
appointed by common accord of the governments of the Member
States.
3. Paragraphs 1 and 2 shall be applied for the first time to the
President and the other members of the Commission whose term of
office begins on 7 January 1995.
The president and the other members of the Commission whose term
of office begins on 7 January 1993 shall be appointed by common
accord of the governments of the Member States. Their term of office
shall expire on 6 January 1995.
ARTICLE 159
Apart from normal replacement, or death, the duties of a member of the
Commission shall end when he resigns or is compulsorily retired.
The vacancy thus caused shall be filled for the remainder of the
member's term of office by a new member appointed by common
accord of the governments of the Member States. The Council may,
acting unanimously, decide that such a vacancy need not be filled.
In the event of resignation, compulsory retirement or death, the
President shall be replaced for the remainder of his term of office. The
procedure laid down in Article 158(2) shall be applicable for the
replacement of the President.
Save in the case of compulsory retirement under Article 160, members
of the Commission shall remain in office until they have been
replaced.
ARTICLE 160
If any member of the Commission no longer fulfills the conditions
required for the performance of his duties or if he has been guilty of
serious misconduct, the Court of Justice may, on application by the
Council or the Commission, compulsorily retire him.
ARTICLE 161
The Commission may appoint a Vice-President or two Vice-Presidents
from among its members.
ARTICLE 162
1. The Council and the Commission shall consult each other and shall
settle by common accord their methods of co-operation.
2. The Commission shall adopt its rules of procedure so as to ensure
that both it and its departments operate in accordance with the
provisions of this Treaty. It shall ensure that these rules are
published.
ARTICLE 163
The Commission shall act by a majority of the number of members
provided for in Article 157.
A meeting of the Commission shall be valid only if the number of
members laid down in its rules of procedure is present."
49) Article 165 shall be replaced by the following:
"ARTICLE 165
The Court of Justice shall consist of thirteen judges.
The Court of Justice shall sit in plenary session. It may, however, form
chambers each consisting of three of five judges, either to undertake
certain preparatory inquiries or to adjudicate on particular categories
of cases in accordance with rules laid down for these purposes.
The Court of Justice shall sit in plenary session when a Member State
or a Community institution that is a party to the proceedings so
requests.
Should the Court of Justice so request, the Council may, acting
unanimously, increase the number of judges and make necessary
adjustments to the second and third paragraphs of this Article and to
the second of Article 167."
50) Article 168a shall be replaced by the following:
"ARTICLE 168a
1. The Court of First Instance shall be attached to the Court of Justice
with jurisdiction to hear and determine at first instance, subject to a
right of appeal to the Court of Justice on points of law only and in
accordance with the conditions laid down by Statute, certain classes of
action or proceeding defined in accordance with the conditions laid
down in paragraph 2. The Court of First Instance shall not be
competent to hear and determine questions referred for a preliminary
ruling under Article 177.
2. At the request of the Court of Justice and after consulting the
European Parliament and the Commission, the Council, acting
unanimously, shall determine the classes of action or proceeding
referred to in paragraph 1 and the composition of the Court of First
Instance and shall adopt the necessary adjustments and additional
provisions to the Statute of the the Court of Justice. Unless the Council
decides otherwise, the provisions of this Treaty relating to the Court of
Justice, in particular the provisions of the Protocol on the Statute of the
Court of Justice, shall apply to the Court of First Instance.
3. The members of the Court of First Instance shall be chosen from
persons whose independence is beyond doubt and who possess the
ability required for appointment to judicial office; they shall be
appointed by common accord of the governments of the Member
States for a term of six years. The membership shall be partially
renewed every three years. Retiring members shall be eligible for re-
appointment.
4. The Court of First Instance shall establish its rules of procedure in
agreement with the Court of Justice. Those rules shall require the
unanimous approval of the Council."
51) Article 171 shall be replaced by the following:
"ARTICLE 171
1. If the Court of Justice finds that a Member State has failed to fulfil an
obligation under this Treaty, the State shall be required to take the
necessary measures to comply with the judgment of the Court of
Justice.
2. If the Commission considers that the Member State concerned has
not taken such measures it shall, after giving that State the opportunity
to submit its observations, issue a reasoned opinion specifying the
points on which the Member State concerned has not complied with
the judgment of the Court of Justice.
If the Member State concerned fails to take the necessary measures to
comply with the Court's judgment within the time-limit laid down by the
Commission, the latter may bring the case before the Court of Justice.
In so doing it shall specify the amount of lump sum or penalty
payment to be paid by the Member State concerned which it considers
appropriate in the circumstances.
If the Court of Justice finds that the Member State concerned has not
complied with its judgment it may impose a lump sum or penalty
payment on it.
This procedure shall be without prejudice to Article 170."
52) Article 172 shall be replaced by the following:
"ARTICLE 172
Regulations adopted jointly by the European Parliament and the
Council, and by the Council, pursuant to the provisions of this Treaty,
may give the Court of Justice unlimited jurisdiction with regard to the
penalties provided for in such regulations."
53) Article 173 shall be replaced by the following:
"ARTICLE 173
The Court of Justice shall review the legality of acts adopted jointly by
the European Parliament and the Council, of acts of the Council, of the
Commission and of the ECB, other than recommendations and
opinions, and of acts of the European Parliament intended to produce
legal effects vis-a-vis third parties.
It shall for this purpose have jurisdiction in actions brought by a
Member State, the Council or the Commission on grounds of lack of
competence, infringement of an essential procedural requirement,
infringement of this Treaty or of any rule of law relating to its
application, or misuse of powers.
The Court shall have jurisdiction under the same conditions, in actions
brought by the European Parliament and by the ECB for the purpose of
protecting their prerogatives.
Any natural or legal person may, under the same conditions, institute
proceedings against a decision addressed to that person or against a
decision which, although in the form of a regulation or a decision
addressed to another person, is of direct and individual concern to the
former.
The proceedings provided for in this Article shall be instituted within
two months of the publication of the measure, or of its notification to
the plaintiff, or, in the absence thereof, of the day on which it came to
the knowledge of the latter, as the case may be."
54) Article 175 shall be replaced by the following:
"ARTICLE 175
Should the European Parliament, the Council or the Commission, in
infringement of this Treaty, fail to act, The Member States and the
other institutions of the Community may bring an action before the
Court of Justice to have the infringement established.
The action shall be admissible only if the institution concerned has
first been called upon to act. If, within two months of being so called
upon, the institution concerned has not defined its position, the action
may be brought within a further period of two months.
Any natural or legal person may, under the conditions laid down in the
preceding paragraphs, complain to the Court of Justice that an
institution of the Community has failed to address to that person any
act other than a recommendation or an opinion.
The Court of Justice shall have jurisdiction, under the same
conditions, in actions or proceedings brought by the ECB in the areas
falling within the latter's field of competence and in actions or
proceedings brought against the latter."
55) Article 176 shall be replaced by the following:
"ARTICLE 176
The institution or institutions whose act has been declared void or
whose failure to act has been declared contrary to this Treaty shall be
required to take the necessary measures to comply with the judgment
of the Court of Justice.
This obligation shall not affect any obligation which may result from
the application of the second paragraph of Article 215.
This Article shall also apply to the ECB."
56) Article 177 shall be replaced by the following:
"ARTICLE 177
The Court of Justice shall have jurisdiction to give preliminary rulings
concerning:
(a) the interpretation of the Treaty;
(b) the validity and interpretation of acts of the institutions of the
Community and of the ECB;
(c) the interpretation of the statutes of bodies established by an act of
the Council, where those statutes so provide.
Where such a question is raised before any court or tribunal of a
Member State, that Court of tribunal may, if it considers that a decision
on the question is necessary to enable it to give judgment, request the
Court of Justice to give a ruling thereon.
Where any such question is raised in a case pending before a court or
tribunal of a Member State against whose decisions there is no
judicial remedy under national law, the court or tribunal shall bring the
matter before the Court of Justice."
57) Article 180 shall be replaced by the following:
"ARTICLE 180
The Court of Justice shall, within the limits hereinafter laid down, have
jurisdiction in disputes concerning:
(a) the fulfillment by Member States of obligations under the Statute of
the European Investment Bank. In this connection, the Board of
Directors of the Bank shall enjoy the powers conferred upon the
Commission by Article 169;
(b) measures adopted by the Board of Governors of the European
Investment Bank. In this connection, any Member State, the
Commission of the Board of Directors of the Bank may institute
proceedings under the conditions laid down in Article 173;
(c) measures adopted by the Board of Directors of the European
Investment Bank. Proceedings against such measures may be
instituted only by Member States or by the Commission, under the
conditions laid down in Article 173, and solely on the grounds of non-
compliance with the procedure provided for in Article 21(2), (5), (6) and
(7) of the Statute of the Bank;
(d) the fulfillment by the national central banks of obligations under
this Treaty and the Statute of the ESCB. In this connection the powers
of the Council of the ECB in respect of national central banks shall be
the same as those conferred upon the commission in respect of
Member States by Article 169. If the Court of Justice finds that a
national central bank has failed to fulfill an obligation under this
Treaty, that bank shall be required to take the necessary measures to
comply with the judgment of the Court of Justice."
58) Article 184 shall be replaced by the following:
"ARTICLE 184
Notwithstanding the expiry of the period laid down in the fifth
paragraph of Article 173, any party may, in proceedings in which a
regulation adopted jointly by the European Parliament and the Council,
or a regulation of the Council, of the Commission, or of the ECB is at
issue, plead the grounds specified in the second paragraph of Article
173 in order to invoke before the Court of Justice the inapplicability of
that regulation."
59) The following section shall be inserted:
"SECTION 5
THE COURT OF AUDITORS
ARTICLE 188a
The Court of Auditors shall carry out the audit.
ARTICLE 188b
1. The Court of Auditors shall consist of twelve members.
2. The members of the Court of Auditors shall be chosen from among
persons who belong or have belonged in their respective countries to
external audit bodies or who are especially qualified for this office.
Their independence must be beyond doubt.
3. The members of the Court of Auditors shall be appointed for a term
of six years by the Council, acting unanimously after consulting the
European Parliament.
However, when the first appointments are made, four members of the
Court of Auditors, chosen by lot, shall be appointed for a term of office
of four years only.
The members of the Court of Auditors shall be eligible for
reappointment.
They shall elect the President of the Court of Auditors from among their
number for a term of three years. The President may be re-elected.
4. The members of the Court of Auditors shall, in the general interest of
the Community, be completely independent in the performance of their
duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body. They shall
refrain from any action incompatible with their duties.
5. The members of the Court of Auditors may not, during their term of
office, engage in any other occupation, whether gainful or not. When
entering upon their duties they shall give a solemn undertaking that,
both during and after their term of office, they will respect the
obligations arising therefrom and in particular their duty to behave
with integrity and discretion as regards the acceptance, after they
have ceased to hold office, of certain appointments or benefits.
6. Apart from normal replacement, or death, the duties of a member of
the Court of Auditors shall end when he resigns, or is compulsorily
retired by a ruling of the Court of Justice pursuant to paragraph 7.
The vacancy thus caused shall be filled for the remainder of the
member's term of office.
Save in the case of compulsory retirement, members of the Court of
Auditors shall remain in office until they have been replaced.
7. A member of the Court of Auditors may be deprived of his office or of
his right to a pension or other benefits in its stead only if the Court of
Justice, at the request of the Court of Auditors, finds that he no longer
fulfills the requisite conditions or meets the obligations arising from
his office.
8. The Council, acting by a qualified majority, shall determine the
conditions of employment of the President and the members of the
Court of Auditors and in particular their salaries, allowances and
pensions. It shall also, by the same majority, determine any payment
to be made instead of remuneration.
9. The provisions of the Protocol on the Privileges and Immunities of
the European Communities applicable to the Judges of the Court of
Justice shall also apply to the members of the Court of Auditors.
ARTICLE 188c
1. The Court of Auditors shall examine the accounts of all revenue and
expenditure of the Community. It shall also examine the accounts of
all revenue and expenditure of all bodies set up by the Community in
so far as the relevant constituent instrument does not preclude such
examination.
The Court of Auditors shall provide the European Parliament and the
Council with a statement of assurance as to the reliability of the
accounts and the legality and regularity of the underlying transactions.
2.The Court of Auditors shall examine whether all revenue has been
received and all expenditure incurred in a lawful and regular manner
and whether the financial arrangement has been sound.
The audit of revenue shall be carried out on the basis both of the
amounts established as due and the amounts actually paid to the
Community.
The audit of expenditure shall be carried out on the basis both of
commitments undertaken and payments made.
These audits may be carried out before the closure of accounts for the
financial year in question.
3. The audit shall be based on records and, if necessary, performed
on the spot in other institutions of the Community and in the Member
States. In the Member States the audit shall be carried out in liaison
with the national audit bodies or, if these do not have the necessary
powers, with the competent national departments. These bodies or
departments shall inform the Court of Auditors whether they intend to
take part in the audit.
The other institutions of the Community and the national audit bodies
or, if these do not have the necessary powers, the competent national
departments, shall forward to the Court of Auditors, at its request, any
document or information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close
of each financial year. It shall be forwarded to the other institutions of
the Community and shall be published, together with the replies of
these institutions to the observations of the Court of Auditors, in the
Official Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations,
particularly in the form of special reports, on specific questions and
deliver opinions at the request of one of the other institutions of the
Community.
It shall adopt its annual reports, special reports or opinions by a
majority of its members.
It shall assist the European Parliament and the Council in exercising
their powers of control over the implementation of the budget."
60) Article 189 shall be replace by the following:
"ARTICLE 189
In order to carry out their task and in accordance with the provisions of
the Treaty, the European Parliament acting jointly with the Council, the
Council and the Commission shall make regulations and issue
directives, take decision, make recommendations or deliver opinions.
A regulation shall have general application. It shall be binding in its
entirety and directly applicable in all Member States.
A directive shall be binding, as to the result to be achieved, upon each
Member State to which it is addressed, but shall leave to the national
authorities the choice of form and methods.
A decision shall be binding in its entirety upon those to whom it is
addressed.
Recommendations and opinions shall have no binding force."
61) The following Articles shall be inserted:
"ARTICLE 189a
1. Where, in pursuance of the Treaty, the Council acts on a proposal
from the Commission, unanimity shall be required for an act
constituting an amendment to that proposal, subject to Article 189b(4)
and (5).
2. As long as the Council has not acted, the Commission may alter its
proposal at any time during the procedures leading to the adoption of
a Community act.
ARTICLE 189b
1. Where reference is made in the Treaty to this Article for the adoption
of an act, the following procedures shall apply.
2. The Commission shall submit a proposal to the European
Parliament and the Council.
The Council, acting by a qualified majority after obtaining the opinion
of the European Parliament, shall adopt a common position. The
common position shall be communicated to the European Parliament.
The Council shall inform the European Parliament fully of the reasons
which led it to adopt its common position. The Commission shall
inform the European Parliament fully of its position.
If, within three months of such communication, the European
Parliament:
(a) approves the common position, the Council shall definitively adopt
the act in question in accordance with that common position;
(b) has not taken a decision, the Council shall adopt the act in question
in accordance with its common position;
(c) indicates, by an absolute majority of its component members, that
it intends to reject the common position, it shall immediately inform
the Council. The Council may convene a meeting of the Conciliation
Committee referred to in paragraph 4 to explain further its position.
The European parliament shall thereafter either confirm, by an
absolute majority of its component members, its rejection of the
common position, in which event the proposed act shall be deemed
not to have been adopted, or propose amendments in accordance with
subparagraph (d) of this paragraph;
(d) proposes amendments to the common position by an absolute
majority of its component members, the amended text shall be
forwarded to the Council and to the Commission which shall deliver an
opinion on those amendments.
3. If, within three months of the matter being referred to it, the Council
action by a qualified majority, approves all the amendments of the
European parliament, it shall amend its common position accordingly
and adopt the act in question; however, the Council shall act
unanimously on the amendments on which the Commission has
delivered a negative opinion. If the Council does not approve the act in
question, the President of the Council, in agreement with the President
of the European Parliament, shall forthwith convene a meeting of the
Conciliation Committee.
4. The Conciliation Committee, which shall be composed of the
members of the Council or their representatives and an equal number
of representative of the European Parliament, shall have the task of
reaching agreement on a joint text, by a qualified majority of the
members of the Council or their representatives and by a majority of
the representatives of the European Parliament. The Commission
shall take part in the Conciliation Committee's proceedings and shall
take all the necessary initiatives with a view to reconciling the
positions of the European Parliament and the Council.
5. If within six weeks of its being convened, the Conciliation
Committee approves a joint text, the European Parliament, acting by
an absolute majority of the votes cast, and the Council, acting by a
qualified majority, shall have a period of six weeks from that approval
in which to adopt the act in question in accordance with the joint text. If
one of the two institutions fails to approve the proposed act, it shall be
deemed not to have been adopted.
6. Where the Conciliation Committee does not approve a joint text, the
proposed act shall be deemed not to have been adopted unless the
Council, acting by a qualified majority within six weeks of expiry of the
period granted to the Conciliation Committee, confirms the common
position to which it agreed before the conciliation procedure was
initiated, possibly with the amendments proposed by the European
Parliament. In this case, the act in question shall be finally adopted
unless the European parliament, within six weeks of the date of
confirmation by the Council, rejects the text by an absolute majority of
its component members, in which case the proposed act shall be
deemed not to have been adopted.
7. The periods of three months and six weeks referred to in this Article
may be extended by a maximum of one month and two weeks
respectively by common accord of the European Parliament and the
Council. The period of three months referred to in paragraph 2 shall be
automatically extended by two months where paragraph 2(c) applies.
8. The scope of the procedure under this Article may be widened, in
accordance with the procedure provided for in Article N(2) of the Treaty
on European Union, on the basis of a report to be submitted to the
Council by the Commission by 1996 at the latest.
ARTICLE 189c
Where reference is made in this Treaty to this Article for the adoption
of an act, the following procedure shall apply:
(a) The Council, acting by a qualified majority on a proposal from the
Commission and after obtaining the opinion of the European
Parliament, shall adopt a common position.
(b) The Council's common position shall be communicated to the
European Parliament. The Council and the Commission shall inform
the European Parliament fully of the reasons which led the Council to
adopt its common position and also of the Commission's position.
If, within three months of such communication, the European
Parliament approves this common position or has not taken a decision
within that period, the Council shall definitively adopt the act in
question in accordance with the common position.
(c) The European Parliament may, within the period of three months
referred to in point (b), by an absolute majority of its component
members, propose amendments to the Council's common position.
The European Parliament may also, by the same majority, reject the
Council's common position. The result of the proceedings shall be
transmitted to the Council and the Commission.
If the European Parliament has rejected the Council's common
position, unanimity shall be required for the Council to act on a second
reading.
(d) The Commission shall, within a period of one month, re-examine
the proposal on the basis of which the Council adopted its common
position, by taking into account the amendments proposed by the
European Parliament.
The Commission shall forward to the Council, at the same time as its
re-examined proposal, the amendments of the European Parliament
which it has not accepted, and shall express its opinion on them. The
Council may adopt these amendments unanimously.
(e) The Council, acting by a qualified majority, shall adopt the proposal
as re-examined by the Commission.
Unanimity shall be required for the Council to amend the proposal as
re-examined by the Commission.
(f) In the cases referred to in points (c),(d) and (e), the Council shall be
required to act within a period of three months. If no decision is taken
within this period, the commission proposal shall be deemed not to
have been adopted.
(g) The periods referred to in points (b) and (f) may be extended by a
maximum of one month by common accord between the Council and
the European Parliament."
62) Article 190 shall be replaced by the following:
"ARTICLE 190
Regulations, directives and decisions adopted jointly by the European
Parliament and the Council, and such acts adopted by the Council or
the Commission, shall state the reasons on which they are based and
shall refer to any proposals or opinions which were required to be
obtained pursuant to this Treaty."
63) Article 191 shall be replaced by the following:
"ARTICLE 191
1. Regulations, directives and decisions adopted in accordance with
the procedures referred to in Article 189b shall be signed by the
President of the European Parliament and by the President of the
Council and published in the Official Journal of the Community. They
shall enter into force on the date specified in them or, in the absence
thereof, on the twentieth day following that of their publication.
2. Regulations of the Council and of the Commission, as well as
directives of those institutions which are address to all Member
States, shall be published in the Official Journal of the Community.
They shall enter into force on the date specified in them or, in the
absence thereof, on the twentieth day following that of their
publication.
3. Other directives, and decisions, shall be notified to those whom
they are address and shall take effect upon such notification."
64) Article 194 shall be replaced by the following:
"ARTICLE 194
The number of members of the Economic and Social Committee shall
be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24
The members of the Committee shall be appointed by the Council,
acting unanimously, for four years. Their appointments shall be
renewable.
The members of the Committee may not be bound by any mandatory
instructions. They shall be completely independent in the performance
of their duties, in the general interest of the Community.
The Council, acting by a qualified majority, shall determine the
allowances of members of the Committee."
65) Article 196 shall be replaced by the following:
"ARTICLE 196
The Committee shall elect its chairman and officers from among its
members for a term of two years.
It shall adopt its rules of procedure.
The Committee shall be convened by its chairman at the request of the
Council or of the Commission. It may also meet on its own initiative."
66) Article 198 shall be replaced by the following:
"ARTICLE 198
The Committee must be consulted by the Council of the Commission
where this Treaty so provides. The Committee may be consulted by
these institutions in all cases in which they consider it appropriate. It
may issue an opinion on its own initiative in cases in which it
considers such action appropriate.
The Council or the Commission shall, if it considers it necessary, set
the Committee, for the submission of its opinion, a time limit which
may not be less than one month from the date on which the chairman
receives notification to this effect. Upon expiry of the time limit, the
absence of an opinion shall not prevent further action.
The opinion of the Committee and that of the specialized section,
together with a record of the proceedings, shall be forwarded to the
Council and to the Commission.
67) The following Chapter shall be inserted:

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

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

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

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

TITLE4
PROVISIONS AMENDING THE TREATY ESTABLISHING THE
EUROPEAN ATOMIC ENERGY COMMUNITY

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

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