ForeignandCommonwealthOIIice

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CONSOLIDATEDTEXTSOFTHEEU
TREATIESASAMENDEDBYTHE
TREATYOFLISBON

Cm7310 30.90

CONSOLIDATEDTEXTSOFTHEEU
TREATIESASAMENDEDBYTHE
TREATYOFLISBON

PresentedtoParliamentbythe
SecretaryoIStateIorForeignandCommonwealthAIIairs
ByCommandoIHerMajesty
January2008

Cm7310 30.90



Crown Copyright 2008

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Any enquiries relating to the copyright in this document should be addressed to The Licensing
Division, HMSO, St Clements House, 2-16 Colegate, Norwich, NR3 1BQ.
Fax: 01603 723000 or e-mail: licensingcabinet-oIIice.x.gsi.gov.uk

CONTENTS

ForewordbytheSecretaryofStateforForeignandCommonwealth
Affairs 1

1TreatyonEuropeanUnion 3

2.TreatyontheFunctioningoItheEuropeanUnion 36

3.ProtocolsannexedtotheTreaties 19

Note: For changes to the Treaty Establishing the European Atomic Energy Community see
Protocol 2 to the Lisbon Treaty (Command Paper 7294 at p.231)

9

ForewordbytheForeignSecretary

TheTreatyoILisbonwillprovideaEuropeanUnionoI27MemberStateswitha
stableinstitutionalIrameworkIortheIoreseeableIuture.TheEUwillbebetterable
totacklethechallengesweIace,includingglobalisation,climatechange,energy
security,terrorismandorganisedcrime.

TheIollowingtextshavebeenpreparedbyHerMajesty'sGovernmenttoshowthe
textsoItheexistingTreatiesestablishingtheEuropeanUnionandtheEuropean
Community,andtheirProtocols,asamendedbytheLisbonTreaty.Assuchthetexts
areillustrativeanddonothavelegalIorce.ReIerenceshouldbemadetoCommand
Paper7294IorthetextoItheLisbonTreatyitselI.

ToIurtherhelpunderstandingoItheLisbonTreaty,theGovernmentisalso
publishingatableindicatinghowtheLisbonTreatyamendstheexistingTreaties
(CommandPaper7311).

AllthesepaperscanbeaccessedontheForeignandCommonwealthOIIice
websiteatwww.Ico.gov.uk

DavidMiliband
1anuary2008

1

CONSOLIDATEDVERSION
OFTHETREATYONEUROPEANUNION
HISMAJESTYTHEKINGOFTHEBELGIANS,HERMAJESTYTHEQUEEN
OFDENMARK,THEPRESIDENTOFTHEFEDERALREPUBLICOF
GERMANY,THEPRESIDENTOFTHEHELLENICREPUBLIC,HISMAJESTY
THEKINGOFSPAIN,THEPRESIDENTOFTHEFRENCHREPUBLIC,THE
PRESIDENTOFIRELAND,THEPRESIDENTOFTHEITALIANREPUBLIC,
HISROYALHIGHNESSTHEGRANDDUKEOFLUXEMBOURG,HER
MAJESTYTHEQUEENOFTHENETHERLANDS,THEPRESIDENTOFTHE
PORTUGUESEREPUBLIC,HERMAJESTYTHEQUEENOFTHEUNITED
KINGDOMOFGREATBRITAINANDNORTHERNIRELAND,
RESOLVEDtomarkanewstageintheprocessoIEuropeanintegrationundertaken
withtheestablishmentoItheEuropeanCommunities,
DRAWINGINSPIRATIONIromthecultural,religiousandhumanistinheritanceoI
Europe,IromwhichhavedevelopedtheuniversalvaluesoItheinviolableand
inalienablerightsoIthehumanperson,Ireedom,democracy,equalityandtheruleoI
law,
RECALLINGthehistoricimportanceoItheendingoIthedivisionoItheEuropean
continentandtheneedtocreateIirmbasesIortheconstructionoItheIutureEurope,
CONFIRMINGtheirattachmenttotheprinciplesoIliberty,democracyandrespect
IorhumanrightsandIundamentalIreedomsandoItheruleoIlaw,
CONFIRMINGtheirattachmenttoIundamentalsocialrightsasdeIinedinthe
EuropeanSocialChartersignedatTurinon18October1961andinthe1989
CommunityCharteroItheFundamentalSocialRightsoIWorkers,
DESIRINGtodeepenthesolidaritybetweentheirpeopleswhilerespectingtheir
history,theircultureandtheirtraditions,
DESIRINGtoenhanceIurtherthedemocraticandeIIicientIunctioningoIthe
institutionssoastoenablethembettertocarryout,withinasingleinstitutional
Iramework,thetasksentrustedtothem,
RESOLVEDtoachievethestrengtheningandtheconvergenceoItheireconomiesand
toestablishaneconomicandmonetaryunionincluding,inaccordancewiththe
provisionsoIthisTreatyandoItheTreatyontheFunctioningoItheEuropeanUnion,
asingleandstablecurrency,
DETERMINEDtopromoteeconomicandsocialprogressIortheirpeoples,taking
intoaccounttheprincipleoIsustainabledevelopmentandwithinthecontextoIthe
accomplishmentoItheinternalmarketandoIreinIorcedcohesionandenvironmental
protection,andtoimplementpoliciesensuringthatadvancesineconomicintegration
areaccompaniedbyparallelprogressinotherIields,
RESOLVEDtoestablishacitizenshipcommontonationalsoItheircountries,
3

RESOLVEDtoimplementacommonIoreignandsecuritypolicyincludingthe
progressiveIramingoIacommondeIencepolicy,whichmightleadtoacommon
deIenceinaccordancewiththeprovisionsoIArticle42,therebyreinIorcingthe
Europeanidentityanditsindependenceinordertopromotepeace,securityand
progressinEuropeandintheworld,
RESOLVEDtoIacilitatetheIreemovementoIpersons,whileensuringthesaIetyand
securityoItheirpeoples,byestablishinganareaoIIreedom,securityandjustice,in
accordancewiththeprovisionsoIthisTreatyandoItheTreatyontheFunctioningoI
theEuropeanUnion,
RESOLVEDtocontinuetheprocessoIcreatinganevercloserunionamongthe
peoplesoIEurope,inwhichdecisionsaretakenascloselyaspossibletothecitizenin
accordancewiththeprincipleoIsubsidiarity,
INVIEWoIIurtherstepstobetakeninordertoadvanceEuropeanintegration,
HAVEDECIDEDtoestablishaEuropeanUnionandtothisendhavedesignatedas
theirPlenipotentiaries:
(List of plenipotentiaries not reproduced)
WHO,havingexchangedtheirIullpowers,IoundingoodanddueIorm,haveagreed
asIollows.

TITLEI
COMMONPROVISIONS

Article 1

BythisTreaty,theHIGHCONTRACTINGPARTIESestablishamongthemselvesa
EUROPEANUNION,hereinaItercalledtheUniononwhichtheMemberStates
conIercompetencestoattainobjectivestheyhaveincommon.
ThisTreatymarksanewstageintheprocessoIcreatinganevercloserunionamong
thepeoplesoIEurope,inwhichdecisionsaretakenasopenlyaspossibleandas
closelyaspossibletothecitizen.
TheUnionshallbeIoundedonthepresentTreatyandontheTreatyonthe
FunctioningoItheEuropeanUnion(hereinaIterreIerredtoastheTreaties).Those
twoTreatiesshallhavethesamelegalvalue.TheUnionshallreplaceandsucceedthe
EuropeanCommunity.

4

Article 2

TheUnionisIoundedonthevaluesoIrespectIorhumandignity,Ireedom,
democracy,equality,theruleoIlawandrespectIorhumanrights,includingtherights
oIpersonsbelongingtominorities.ThesevaluesarecommontotheMemberStatesin
asocietyinwhichpluralism,non-discrimination,tolerance,justice,solidarityand
equalitybetweenwomenandmenprevail.

Article 3

1.TheUnionsaimistopromotepeace,itsvaluesandthewell-beingoIitspeoples.

2.TheUnionshalloIIeritscitizensanareaoIIreedom,securityandjusticewithout
internalIrontiers,inwhichtheIreemovementoIpersonsisensuredinconjunction
withappropriatemeasureswithrespecttoexternalbordercontrols,asylum,
immigrationandthepreventionandcombatingoIcrime.
3.TheUnionshallestablishaninternalmarket.ItshallworkIorthesustainable
developmentoIEuropebasedonbalancedeconomicgrowthandpricestability,a
highlycompetitivesocialmarketeconomy,aimingatIullemploymentandsocial
progress,andahighleveloIprotectionandimprovementoIthequalityoIthe
environment.ItshallpromotescientiIicandtechnologicaladvance.
Itshallcombatsocialexclusionanddiscrimination,andshallpromotesocialjustice
andprotection,equalitybetweenwomenandmen,solidaritybetweengenerationsand
protectionoItherightsoIthechild.
Itshallpromoteeconomic,socialandterritorialcohesion,andsolidarityamong
MemberStates.
Itshallrespectitsrichculturalandlinguisticdiversity,andshallensurethatEuropes
culturalheritageissaIeguardedandenhanced.
4.TheUnionshallestablishaneconomicandmonetaryunionwhosecurrencyisthe
euro.
5.Initsrelationswiththewiderworld,theUnionshallupholdandpromoteitsvalues
andcontributetotheprotectioniIitscitizens.Itshallcontributetopeace,security,the
sustainabledevelopmentoItheEarth,solidarityandmutualrespectamongpeoples,
IreeandIairtrade,eradicationoIpovertyandtheprotectionoIhumanrights,in
particulartherightsoIthechild,aswellastothestrictobservanceandthe
developmentoIinternationallaw,includingrespectIortheprinciplesoIthe
UnitedNationsCharter.
6.TheUnionshallpursueitsobjectivesbyappropriatemeanscommensuratewiththe
competenceswhichareconIerreduponitintheTreaties.

5

Article 4

1.InaccordancewithArticle5,competencesnotconIerredupontheUnioninthe
TreatiesremainwiththeMemberStates.

2.TheUnionshallrespecttheequalityoIMemberStatesbeIoretheTreatiesaswell
astheirnationalidentities,inherentintheirIundamentalstructures,politicaland
constitutional,inclusiveoIregionalandlocalselI-government.itshallrespecttheir
essentialStateIunctions,includingensuringtheterritorialintegrityoItheState,
maintaininglawandorderandsaIeguardingnationalsecurity.Inparticular,national
securityremainsthesoleresponsibilityoIeachMemberState.

3.PursuanttotheprincipleoIsincerecooperation,theUnionandtheMemberStates
shall,inIullmutualrespect,assisteachotherincarryingouttaskswhichIlowIrom
theTreaties.

TheMemberStatesshalltakeanyappropriatemeasure,generalorparticular,to
ensureIulIilmentoItheobligationsarisingoutoItheTreatiesorresultingIromthe
actsoItheinstitutionsoItheUnion.

TheMemberStatesshallIacilitatetheachievementoItheUnionstasksandreIrain
IromanymeasurewhichcouldjeopardisetheattainmentoItheUnionsobjectives.

Article 5
1.ThelimitsoIUnioncompetencesaregovernedbytheprincipleoIconIerral.The
useoIUnioncompetencesisgovernedbytheprinciplesoIsubsidiarityand
proportionality.

2.UndertheprincipleoIconIerral,theUnionshallactonlywithinthelimitsoIthe
competencesconIerreduponitbytheMemberStatesintheTreatiestoattainthe
objectivessetouttherein.CompetencesnotconIerredupontheUnionintheTreaties
remainwiththeMemberStates.
3.UndertheprincipleoIsubsidiarity,inareaswhichdonotIallwithinitsexclusive
competence,theUnionshallactonlyiIandinsoIarastheobjectivesoItheproposed
actioncannotbesuIIicientlyachievedbytheMemberStates,eitheratcentrallevelor
atregionalandlocallevel,butcanrather,byreasonoIthescaleoreIIectsoIthe
proposedaction,bebetterachievedatUnionlevel.
TheinstitutionsoItheUnionshallapplytheprincipleoIsubsidiarityaslaiddownin
theProtocolontheapplicationoItheprinciplesoIsubsidiarityandproportionality.
NationalParliamentsensurecompliancewiththeprincipleoIsubsidiarityin
accordancewiththeproceduresetoutinthatProtocol.
4.UndertheprincipleoIproportionality,thecontentandIormoIUnionactionshall
notexceedwhatisnecessarytoachievetheobjectivesoItheTreaties.
6

TheinstitutionsoItheUnionshallapplytheprincipleoIproportionalityaslaiddown
intheProtocolontheapplicationoItheprinciplesoIsubsidiarityandproportionality.

Article 6

1.TheUnionrecognisestherights,IreedomsandprinciplessetoutintheCharteroI
FundamentalRightsoItheEuropeanUnionoI7December2000,asadaptedat
Strasbourg,on12December2007,whichshallhavethesamelegalvalueasthe
Treaties.

TheprovisionsoItheChartershallnotextendinanywaythecompetencesoIthe
UnionasdeIinedintheTreaties.

Therights,IreedomsandprinciplesintheChartershallbeinterpretedinaccordance
withthegeneralprovisionsinTitleVIIoItheChartergoverningitsinterpretationand
applicationandwithdueregardtotheexplanationsreIerredtointheCharter,thatset
outthesourcesoIthoseprovisions.

2.TheUnionshallaccedetotheEuropeanConventionIortheProtectionoIHuman
RightsandFundamentalFreedoms.SuchaccessionshallnotaIIecttheUnions
competencesasdeIinedintheTreaties.

3.Fundamentalrights,asguaranteedbytheEuropeanConventionIortheProtection
oIHumanRightsandFundamentalFreedomsandastheyresultIromthe
constitutionaltraditionscommontotheMemberStates,shallconstitutegeneral
principlesoItheUnionslaw.

Article 7

1.OnareasonedproposalbyonethirdoItheMemberStates,bytheEuropean
ParliamentorbytheEuropeanCommission,theCouncil,actingbyamajorityoIIour
IiIthsoIitsmembersaIterobtainingtheconsentoItheEuropeanParliament,may
determinethatthereisaclearriskoIaseriousbreachbyaMemberStateoIthevalues
reIerredtoinArticle2.BeIoremakingsuchadetermination,theCouncilshallhear
theMemberStateinquestionandmayaddressrecommendationstoit,actingin
accordancewiththesameprocedure.
TheCouncilshallregularlyveriIythatthegroundsonwhichsuchadetermination
wasmadecontinuetoapply.
2.TheEuropeanCouncil,actingbyunanimityonaproposalbyonethirdoIthe
MemberStatesorbytheCommissionandaIterobtainingtheconsentoItheEuropean
Parliament,maydeterminetheexistenceoIaseriousandpersistentbreachbya
MemberStateoIthevaluesreIerredtoinArticle2,aIterinvitingtheMemberStatein
questiontosubmititsobservations.
7

3.Whereadeterminationunderparagraph2hasbeenmade,theCouncil,actingbya
qualiIiedmajority,maydecidetosuspendcertainoItherightsderivingIromthe
applicationoItheTreatiestotheMemberStateinquestion,includingthevotingrights
oItherepresentativeoIthegovernmentoIthatMemberStateintheCouncil.Indoing
so,theCouncilshalltakeintoaccountthepossibleconsequencesoIsuchasuspension
ontherightsandobligationsoInaturalandlegalpersons.
TheobligationsoItheMemberStateinquestionunderthisTreatyshallinanycase
continuetobebindingonthatState.
4.TheCouncil,actingbyaqualiIiedmajority,maydecidesubsequentlytovaryor
revokemeasurestakenunderparagraph3inresponsetochangesinthesituation
whichledtotheirbeingimposed.
5.ThevotingarrangementsapplyingtotheEuropeanParliament,theEuropean
CouncilandtheCouncilIorthepurposesoIthisArticlearelaiddowninArticle354
oItheTreatyontheFunctioningoItheEuropeanUnion.

Article 8

1.TheUnionshalldevelopaspecialrelationshipwithneighbouringcountries,aiming
toestablishanareaoIprosperityandgoodneighbourliness,IoundedonthevaluesoI
theUnionandcharacterisedbycloseandpeaceIulrelationsbasedoncooperation.
2.ForthepurposesoIparagraph1,theUnionmayconcludespeciIicagreementswith
thecountriesconcerned.Theseagreementsmaycontainreciprocalrightsand
obligationsaswellasthepossibilityoIundertakingactivitiesjointly.Their
implementationshallbethesubjectoIperiodicconsultation.

TITLEII

PROVISIONSONDEMOCRATICPRINCIPLES

Article 9

Inallitsactivities,theUnionshallobservetheprincipleoItheequalityoIitscitizens,
whoshallreceiveequalattentionIromitsinstitutions,bodies,oIIicesandagencies.
EverynationaloIaMemberStateshallbeacitizenoItheUnion.CitizenshipoIthe
Unionshallbeadditionaltonationalcitizenshipandshallnotreplaceit.

8

Article 10

1.TheIunctioningoItheUnionshallbeIoundedonrepresentativedemocracy.

2.CitizensaredirectlyrepresentedatUnionlevelintheEuropeanParliament.

MemberStatesarerepresentedintheEuropeanCouncilbytheirHeadsoIStateor
GovernmentandintheCouncilbytheirgovernments,themselvesdemocratically
accountableeithertotheirnationalParliaments,ortotheircitizens.

3.EverycitizenshallhavetherighttoparticipateinthedemocraticliIeoItheUnion.
Decisionsshallbetakenasopenlyandascloselyaspossibletothecitizen.

4.PoliticalpartiesatEuropeanlevelcontributetoIormingEuropeanpolitical
awarenessandtoexpressingthewilloIcitizensoItheUnion.

Article 11

1.Theinstitutionsshall,byappropriatemeans,givecitizensandrepresentative
associationstheopportunitytomakeknownandpubliclyexchangetheirviewsinall
areasoIUnionaction.

2.Theinstitutionsshallmaintainanopen,transparentandregulardialoguewith
representativeassociationsandcivilsociety.

3.TheEuropeanCommissionshallcarryoutbroadconsultationswithparties
concernedinordertoensurethattheUnionsactionsarecoherentandtransparent.

4.NotlessthanonemillioncitizenswhoarenationalsoIasigniIicantnumberoI
MemberStatesmaytaketheinitiativeoIinvitingtheEuropeanCommission,within
theIrameworkoIitspowers,tosubmitanyappropriateproposalonmatterswhere
citizensconsiderthatalegalactoItheUnionisrequiredIorthepurposeoI
implementingtheTreaties.

TheproceduresandconditionsrequiredIorsuchacitizensinitiativeshallbe
determinedinaccordancewiththeIirstparagraphoIArticle24oItheTreatyonthe
FunctioningoItheEuropeanUnion.

Article 12

NationalParliamentscontributeactivelytothegoodIunctioningoItheUnion:
(a)throughbeinginIormedbytheinstitutionsoItheUnionandhavingdraIt
legislativeactsoItheUnionIorwardedtotheminaccordancewiththeProtocolonthe
roleoInationalParliamentsintheEuropeanUnion;
9

(b)byseeingtoitthattheprincipleoIsubsidiarityisrespectedinaccordancewiththe
proceduresprovidedIorintheProtocolontheapplicationoItheprinciplesoI
subsidiarityandproportionality;
(c)bytakingpart,withintheIrameworkoItheareaoIIreedom,securityandjustice,
intheevaluationmechanismsIortheimplementationoItheUnionpoliciesinthat
area,inaccordancewithArticle70oItheTreatyontheFunctioningoItheEuropean
Union,andthroughbeinginvolvedinthepoliticalmonitoringoIEuropolandthe
evaluationoIEurojustsactivitiesinaccordancewithArticles88and85oIthat
Treaty;
(d)bytakingpartintherevisionproceduresoItheTreaties,inaccordancewith
Article48oIthisTreaty;
(e)bybeingnotiIiedoIapplicationsIoraccessiontotheUnion,inaccordancewith
Article49oIthisTreaty;
(I)bytakingpartintheinterparliamentarycooperationbetweennationalParliaments
andwiththeEuropeanParliament,inaccordancewiththeProtocolontheroleoI
nationalParliamentsintheEuropeanUnion.

TITLEIII

PROVISIONSONTHEINSTITUTIONS

Article 13

1.TheUnionshallhaveaninstitutionalIrameworkwhichshallaimtopromoteits
values,advanceitsobjectives,serveitsinterests,thoseoIitscitizensandthoseoIthe
MemberStates,andensuretheconsistency,eIIectivenessandcontinuityoIitspolicies
andactions.

ThisinstitutionalIrameworkcomprises:

TheEuropeanParliament,

TheEuropeanCouncil,

TheCouncil,

TheEuropeanCommission(hereinaIterreIerredtoastheCommission),

-TheCourtoIJusticeoItheEuropeanUnion,

TheEuropeanCentralBank,

10

TheCourtoIAuditors.

2.EachinstitutionshallactwithinthelimitsoIthepowersconIerredonitinthe
Treaties,andinconIormitywiththeprocedures,conditionsandobjectivessetoutin
them.Theinstitutionsshallpractisemutualsincerecooperation.

3.TheprovisionsrelatingtotheEuropeanCentralBankandtheCourtoIAuditors
anddetailedprovisionsontheotherinstitutionsaresetoutintheTreatyonthe
FunctioningoItheEuropeanUnion.

4.TheEuropeanParliament,theCouncilandtheCommissionshallbeassistedbyan
EconomicandSocialCommitteeandaCommitteeoItheRegionsactinginan
advisorycapacity.

Article 14

1.TheEuropeanParliamentshall,jointlywiththeCouncil,exerciselegislativeand
budgetaryIunctions.ItshallexerciseIunctionsoIpoliticalcontrolandconsultationas
laiddownintheTreaties.ItshallelectthePresidentoItheCommission.
2.TheEuropeanParliamentshallbecomposedoIrepresentativesoItheUnions
citizens.TheyshallnotexceedsevenhundredandIiItyinnumber,plusthePresident.
RepresentationoIcitizensshallbedegressivelyproportional,withaminimum
thresholdoIsixmembersperMemberState.NoMemberStateshallbeallocated
morethanninety-sixseats.
TheEuropeanCouncilshalladoptbyunanimity,ontheinitiativeoItheEuropean
Parliamentandwithitsconsent,adecisionestablishingthecompositionoIthe
EuropeanParliament,respectingtheprinciplesreIerredtointheIirstsubparagraph.
3.ThemembersoItheEuropeanParliamentshallbeelectedIoratermoIIiveyears
bydirectuniversalsuIIrageinaIreeandsecretballot.

4.TheEuropeanParliamentshallelectitsPresidentanditsoIIicersIromamongits
members.

Article 15

1.TheEuropeanCouncilshallprovidetheUnionwiththenecessaryimpetusIorits
developmentandshalldeIinethegeneralpoliticaldirectionsandprioritiesthereoI.It
shallnotexerciselegislativeIunctions.

2.TheEuropeanCouncilshallconsistoItheHeadsoIStateorGovernmentoIthe
MemberStates,togetherwithitsPresidentandthePresidentoItheCommission.The
HighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicyshalltake
partinitswork.

11

3.TheEuropeanCouncilshallmeettwiceeverysixmonths,convenedbyits
President.Whentheagendasorequires,themembersoItheEuropeanCouncilmay
decideeachtobeassistedbyaministerand,inthecaseoIthePresidentoIthe
Commission,byamemberoItheCommission.Whenthesituationsorequires,
thePresidentshallconveneaspecialmeetingoItheEuropeanCouncil.

4.ExceptwheretheTreatiesprovideotherwise,decisionsoItheEuropeanCouncil
shallbetakenbyconsensus.

5.TheEuropeanCouncilshallelectitsPresident,byaqualiIiedmajority,Ioraterm
oItwoandahalIyears,renewableonce.IntheeventoIanimpedimentorserious
misconduct,theEuropeanCouncilcanendthePresidentstermoIoIIicein
accordancewiththesameprocedure.
6.ThePresidentoItheEuropeanCouncil:
(a)shallchairitanddriveIorwarditswork;
(b)shallensurethepreparationandcontinuityoItheworkoItheEuropeanCouncilin
cooperationwiththePresidentoItheCommission,andonthebasisoItheworkoIthe
GeneralAIIairsCouncil;
(c)shallendeavourtoIacilitatecohesionandconsensuswithintheEuropeanCouncil;
(d)shallpresentareporttotheEuropeanParliamentaItereachoIthemeetingsoIthe
EuropeanCouncil.
ThePresidentoItheEuropeanCouncilshall,athisorherlevelandinthatcapacity,
ensuretheexternalrepresentationoItheUniononissuesconcerningitscommon
Ioreignandsecuritypolicy,withoutprejudicetothepowersoItheHigh
RepresentativeoItheUnionIorForeignAIIairsandSecurityPolicy.
ThePresidentoItheEuropeanCouncilshallnotholdanationaloIIice.

Article 16

1.TheCouncilshall,jointlywiththeEuropeanParliament,exerciselegislativeand
budgetaryIunctions.Itshallcarryoutpolicy-makingandcoordinatingIunctionsas
laiddownintheTreaties.

2.TheCouncilshallconsistoIarepresentativeoIeachMemberStateatministerial
level,whomaycommitthegovernmentoItheMemberStateinquestionandcastits
vote.

3.TheCouncilshallactbyaqualiIiedmajorityexceptwheretheTreatiesprovide
otherwise.

4.AsIrom1November2014,aqualiIiedmajorityshallbedeIinedasatleast55oI
themembersoItheCouncil,comprisingatleastIiIteenoIthemandrepresenting
MemberStatescomprisingatleast65oIthepopulationoItheUnion.
12

AblockingminoritymustincludeatleastIourCouncilmembers,Iailingwhichthe
qualiIiedmajorityshallbedeemedattained.

TheotherarrangementsgoverningthequaliIiedmajorityarelaiddowninArticle
238(2)oItheTreatyontheFunctioningoItheEuropeanUnion.

5.ThetransitionalprovisionsrelatingtothedeIinitionoIthequaliIiedmajoritywhich
shallbeapplicableuntil31October2014andthosewhichshallbeapplicableIrom1
November2014to31March2017arelaiddownintheProtocolontransitional
provisions.

6.TheCouncilshallmeetindiIIerentconIigurations,thelistoIwhichshallbe
adoptedinaccordancewithArticle236oItheTreatyontheFunctioningoIthe
EuropeanUnion.
TheGeneralAIIairsCouncilshallensureconsistencyintheworkoIthediIIerent
CouncilconIigurations.ItshallprepareandensuretheIollow-uptomeetingsoIthe
EuropeanCouncil,inliaisonwiththePresidentoItheEuropeanCouncilandthe
Commission.
TheForeignAIIairsCouncilshallelaboratetheUnionsexternalactiononthebasis
oIstrategicguidelineslaiddownbytheEuropeanCouncilandensurethattheUnions
actionisconsistent.

7.ACommitteeoIPermanentRepresentativesoItheGovernmentsoItheMember
StatesshallberesponsibleIorpreparingtheworkoItheCouncil.

8.TheCouncilshallmeetinpublicwhenitdeliberatesandvotesonadraItlegislative
act.Tothisend,eachCouncilmeetingshallbedividedintotwoparts,dealing
respectivelywithdeliberationsonUnionlegislativeactsandonnon-legislative
activities.

9.ThePresidencyoICouncilconIigurations,otherthanthatoIForeignAIIairs,shall
beheldbyMemberStaterepresentativesintheCouncilonthebasisoIequalrotation,
inaccordancewiththeconditionsestablishedinaccordancewithArticle236oIthe
TreatyontheFunctioningoItheEuropeanUnion.

Article 17

1.TheCommissionshallpromotethegeneralinterestoItheUnionandtake
appropriateinitiativestothatend.ItshallensuretheapplicationoItheTreaties,andoI
measuresadoptedbytheinstitutionspursuanttotheTreaties.Itshalloverseethe
applicationoIUnionlawunderthecontroloItheCourtoIJusticeoItheEuropean
Union.Itshallexecutethebudgetandmanageprogrammes.Itshallexercise
coordinating,executiveandmanagementIunctions,aslaiddownintheTreaties.With
theexceptionoIthecommonIoreignandsecuritypolicy,andothercasesprovidedIor
intheTreaties,itshallensuretheUnionsexternalrepresentation.Itshallinitiatethe
13

Unionsannualandmultiannualprogrammingwithaviewtoachieving
interinstitutionalagreements.

2.UnionlegislativeactsmayonlybeadoptedonthebasisoIaCommissionproposal,
exceptwheretheTreatiesprovideotherwise.Otheractsshallbeadoptedonthebasis
oIaCommissionproposalwheretheTreatiessoprovide.

3.TheCommissionstermoIoIIiceshallbeIiveyears.

ThemembersoItheCommissionshallbechosenonthegroundoItheirgeneral
competenceandEuropeancommitmentIrompersonswhoseindependenceisbeyond
doubt.

Incarryingoutitsresponsibilities,theCommissionshallbecompletelyindependent.
WithoutprejudicetoArticle18(2),themembersoItheCommissionshallneitherseek
nortakeinstructionsIromanyGovernmentorotherinstitution,body,oIIiceorentity.
TheyshallreIrainIromanyactionincompatiblewiththeirdutiesortheperIormance
oItheirtasks.

4.TheCommissionappointedbetweenthedateoIentryintoIorceoItheTreatyoI
Lisbonand31October2014,shallconsistoIonenationaloIeachMemberState,
includingitsPresidentandtheHighRepresentativeoItheUnionIorForeignAIIairs
andSecurityPolicywhoshallbeoneoIitsVice-Presidents.
5.AsIrom1November2014,theCommissionshallconsistoIanumberoImembers,
includingitsPresidentandtheHighRepresentativeoItheUnionIorForeignAIIairs
andSecurityPolicy,correspondingtotwothirdsoIthenumberoIMemberStates,
unlesstheEuropeanCouncil,actingunanimously,decidestoalterthisnumber.
ThemembersoItheCommissionshallbeselectedIromamongthenationalsoIthe
MemberStatesonthebasisoIasystemoIstrictlyequalrotationbetweenthe
MemberStates,reIlectingthedemographicandgeographicalrangeoIalltheMember
States.ThissystemshallbeestablishedunanimouslybytheEuropeanCouncilin
accordancewithArticle244oItheTreatyontheFunctioningoItheEuropeanUnion.
6.ThePresidentoItheCommissionshall:
(a)laydownguidelineswithinwhichtheCommissionistowork;
(b)decideontheinternalorganisationoItheCommission,ensuringthatitacts
consistently,eIIicientlyandasacollegiatebody;
(c)appointVice-Presidents,otherthantheHighRepresentativeoItheUnionIor
ForeignAIIairsandSecurityPolicy,IromamongthemembersoItheCommission.
AmemberoItheCommissionshallresigniIthePresidentsorequests.TheHigh
RepresentativeoItheUnionIorForeignAIIairsandSecurityPolicyshallresign,in
accordancewiththeproceduresetoutinArticle18(1),iIthePresidentsorequests.
7.TakingintoaccounttheelectionstotheEuropeanParliamentandaIterhavingheld
theappropriateconsultations,theEuropeanCouncil,actingbyaqualiIiedmajority,
shallproposetotheEuropeanParliamentacandidateIorPresidentoIthe
Commission.ThiscandidateshallbeelectedbytheEuropeanParliamentbya
14

majorityoIitscomponentmembers.IIhedoesnotobtaintherequiredmajority,the
EuropeanCouncil,actingbyaqualiIiedmajority,shallwithinonemonthproposea
newcandidatewhoshallbeelectedbytheEuropeanParliamentIollowingthesame
procedure.
TheCouncil,bycommonaccordwiththePresident-elect,shalladoptthelistoIthe
otherpersonswhomitproposesIorappointmentasmembersoItheCommission.
Theyshallbeselected,onthebasisoIthesuggestionsmadebyMemberStates,in
accordancewiththecriteriasetoutinparagraph3,secondsubparagraph,and
paragraph5,secondsubparagraph.
ThePresident,theHighRepresentativeoItheUnionIorForeignAIIairsandSecurity
PolicyandtheothermembersoItheCommissionshallbesubjectasabodytoavote
oIconsentbytheEuropeanParliament.OnthebasisoIthisconsenttheCommission
shallbeappointedbytheEuropeanCouncil,actingbyaqualiIiedmajority.
8.TheCommission,asabody,shallberesponsibletotheEuropeanParliament.In
accordancewithArticle234oItheTreatyontheFunctioningoItheEuropeanUnion,
theEuropeanParliamentmayvoteonamotionoIcensureoItheCommission.IIsuch
amotioniscarried,themembersoItheCommissionshallresignasabodyandthe
HighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicyshallresign
IromthedutiesthathecarriesoutintheCommission.

Article 18

1.TheEuropeanCouncil,actingbyaqualiIiedmajority,withtheagreementoIthe
PresidentoItheCommission,shallappointtheHighRepresentativeoItheUnionIor
ForeignAIIairsandSecurityPolicy.TheEuropeanCouncilmayendhistermoI
oIIicebythesameprocedure.

2.TheHighRepresentativeshallconducttheUnionscommonIoreignandsecurity
policy.HeshallcontributebyhisproposalstothedevelopmentoIthatpolicy,which
heshallcarryoutasmandatedbytheCouncil.Thesameshallapplytothecommon
securityanddeIencepolicy.

3.TheHighRepresentativeshallpresideovertheForeignAIIairsCouncil.

4.TheHighRepresentativeshallbeoneoItheVice-PresidentsoItheCommission.
HeshallensuretheconsistencyoItheUnionsexternalaction.Heshallberesponsible
withintheCommissionIorresponsibilitiesincumbentonitinexternalrelationsand
IorcoordinatingotheraspectsoItheUnionsexternalaction.Inexercisingthese
responsibilitieswithintheCommission,andonlyIortheseresponsibilities,theHigh
RepresentativeshallbeboundbyCommissionprocedurestotheextentthatthisis
consistentwithparagraphs2and3.

Article 19
15

1.TheCourtoIJusticeoItheEuropeanUnionshallincludetheCourtoIJustice,the
GeneralCourtandspecialisedcourts.Itshallensurethatintheinterpretationand
applicationoItheTreatiesthelawisobserved.
MemberStatesshallprovideremediessuIIicienttoensureeIIectivelegalprotectionin
theIieldscoveredbyUnionlaw.
2.TheCourtoIJusticeshallconsistoIonejudgeIromeachMemberState.Itshallbe
assistedbyAdvocates-General.
TheGeneralCourtshallincludeatleastonejudgeperMemberState.
TheJudgesandtheAdvocates-GeneraloItheCourtoIJusticeandtheJudgesoIthe
GeneralCourtshallbechosenIrompersonswhoseindependenceisbeyonddoubtand
whosatisIytheconditionssetoutinArticles253and254oItheTreatyonthe
FunctioningoItheEuropeanUnion.TheyshallbeappointedbycommonaccordoI
thegovernmentsoItheMemberStatesIorsixyears.RetiringJudgesandAdvocates-
Generalmaybereappointed.
3.TheCourtoIJusticeoItheEuropeanUnionshall,inaccordancewiththeTreaties:
(a)ruleonactionsbroughtbyaMemberState,aninstitutionoranaturalorlegal
person;
(b)givepreliminaryrulings,attherequestoIcourtsortribunalsoItheMemberStates,
ontheinterpretationoIUnionlaworthevalidityoIactsadoptedbytheinstitutions;
(c)ruleinothercasesprovidedIorintheTreaties.

TITLEIV

PROVISIONSONENHANCEDCO-OPERATION

Article 20

1.MemberStateswhichwishtoestablishenhancedcooperationbetweenthemselves
withintheIrameworkoItheUnionsnon-exclusivecompetencesmaymakeuseoIits
institutionsandexercisethosecompetencesbyapplyingtherelevantprovisionsoIthe
Treaties,subjecttothelimitsandinaccordancewiththedetailedarrangementslaid
downinthisArticleandinArticles326to334oItheTreatyontheFunctioningoIthe
EuropeanUnion.

EnhancedcooperationshallaimtoIurthertheobjectivesoItheUnion,protectits
interestsandreinIorceitsintegrationprocess.Suchcooperationshallbeopenatany
timetoallMemberStates,inaccordancewithArticle328oItheTreatyonthe
FunctioningoItheEuropeanUnion.
16

2.ThedecisionauthorisingenhancedcooperationshallbeadoptedbytheCouncilasa
lastresort,whenithasestablishedthattheobjectivesoIsuchcooperationcannotbe
attainedwithinareasonableperiodbytheUnionasawhole,andprovidedthatatleast
nineMemberStatesparticipateinit.TheCouncilshallactinaccordancewiththe
procedurelaiddowninArticle329oItheTreatyontheFunctioningoItheEuropean
Union.

3.AllmembersoItheCouncilmayparticipateinitsdeliberations,butonlymembers
oItheCouncilrepresentingtheMemberStatesparticipatinginenhancedcooperation
shalltakepartinthevote.ThevotingrulesaresetoutinArticle330oItheTreatyon
theFunctioningoItheEuropeanUnion.

4.ActsadoptedintheIrameworkoIenhancedcooperationshallbindonly
participatingMemberStates.TheyshallnotberegardedaspartoItheacquiswhich
hastobeacceptedbycandidateStatesIoraccessiontotheUnion.

TITLEV

GENERALPROVISIONSONTHEUNIONSEXTERNALACTIONAND
SPECIFICPROVISIONSONTHECOMMONFOREIGNANDSECURITY
POLICY

CHAPTER I

PROVISIONSHAVINGGENERALAPPLICATION

Article 21

1.TheUnionsactionontheinternationalsceneshallbeguidedbytheprinciples
whichhaveinspireditsowncreation,developmentandenlargement,andwhichit
seekstoadvanceinthewiderworld:democracy,theruleoIlaw,theuniversalityand
indivisibilityoIhumanrightsandIundamentalIreedoms,respectIorhumandignity,
theprinciplesoIequalityandsolidarity,andrespectIortheprinciplesoItheUnited
NationsCharterandinternationallaw.
TheUnionshallseektodeveloprelationsandbuildpartnershipswiththirdcountries,
andinternational,regionalorglobalorganisationswhichsharetheprinciplesreIerred
tointheIirstsubparagraph.Itshallpromotemultilateralsolutionstocommon
problems,inparticularintheIrameworkoItheUnitedNations.
17

2.TheUnionshalldeIineandpursuecommonpoliciesandactions,andshallworkIor
ahighdegreeoIcooperationinallIieldsoIinternationalrelations,inorderto:
(a)saIeguarditsvalues,Iundamentalinterests,security,independenceandintegrity;

(b)consolidateandsupportdemocracy,theruleoIlaw,humanrightsandthe
principlesoIinternationallaw;

(c)preservepeace,preventconIlictsandstrengtheninternationalsecurity,in
accordancewiththepurposesandprinciplesoItheUnitedNationsCharter,withthe
principlesoItheHelsinkiFinalActandwiththeaimsoItheCharteroIParis,
includingthoserelatingtoexternalborders;

(d)Iosterthesustainableeconomic,socialandenvironmentaldevelopmentoI
developingcountries,withtheprimaryaimoIeradicatingpoverty;

(e)encouragetheintegrationoIallcountriesintotheworldeconomy,including
throughtheprogressiveabolitionoIrestrictionsoninternationaltrade;

(I)helpdevelopinternationalmeasurestopreserveandimprovethequalityoIthe
environmentandthesustainablemanagementoIglobalnaturalresources,inorderto
ensuresustainabledevelopment;

(g)assistpopulations,countriesandregionsconIrontingnaturalorman-made
disasters;and

(h)promoteaninternationalsystembasedonstrongermultilateralcooperationand
goodglobalgovernance.
3.TheUnionshallrespecttheprinciplesandpursuetheobjectivessetoutin
paragraphs1and2inthedevelopmentandimplementationoIthediIIerentareasoI
theUnionsexternalactioncoveredbythisTitleandbyPartFiveoItheTreatyonthe
FunctioningoItheEuropeanUnion,andoItheexternalaspectsoIitsotherpolicies.
TheUnionshallensureconsistencybetweenthediIIerentareasoIitsexternalaction
andbetweentheseanditsotherpolicies.TheCouncilandtheCommission,assisted
bytheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicy,shall
ensurethatconsistencyandshallcooperatetothateIIect.

Article 22

1.OnthebasisoItheprinciplesandobjectivessetoutinArticle21,the
EuropeanCouncilshallidentiIythestrategicinterestsandobjectivesoItheUnion.
DecisionsoItheEuropeanCouncilonthestrategicinterestsandobjectivesoIthe
UnionshallrelatetothecommonIoreignandsecuritypolicyandtootherareasoIthe
externalactionoItheUnion.SuchdecisionsmayconcerntherelationsoItheUnion
withaspeciIiccountryorregionormaybethematicinapproach.TheyshalldeIine
18

theirduration,andthemeanstobemadeavailablebytheUnionandthe
MemberStates.
TheEuropeanCouncilshallactunanimouslyonarecommendationIromtheCouncil,
adoptedbythelatterunderthearrangementslaiddownIoreacharea.DecisionsoIthe
EuropeanCouncilshallbeimplementedinaccordancewiththeproceduresprovided
IorintheTreaties.
2.TheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicy,Ior
theareaoIcommonIoreignandsecuritypolicy,andtheCommission,Iorotherareas
oIexternalaction,maysubmitjointproposalstotheCouncil.

CHAPTER2

SPECIFICPROVISIONSCONCERNINGTHECOMMONFOREIGNAND
SECURITYPOLICY

SECTION1

COMMONPROVISIONS

Article 23

TheUnionsactionontheinternationalscene,pursuanttothisChapter,shallbe
guidedbytheprinciples,shallpursuetheobjectivesoI,andbeconductedin
accordancewith,thegeneralprovisionslaiddowninChapter1.

Article 24

1.TheUnionscompetenceinmattersoIcommonIoreignandsecuritypolicyshall
coverallareasoIIoreignpolicyandallquestionsrelatingtotheUnionssecurity,
includingtheprogressiveIramingoIacommondeIencepolicythatmightleadtoa
commondeIence.
ThecommonIoreignandsecuritypolicyissubjecttospeciIicrulesandprocedures.It
shallbedeIinedandimplementedbytheEuropeanCouncilandtheCouncilacting
unanimously,exceptwheretheTreatiesprovideotherwise.TheadoptionoIlegislative
actsshallbeexcluded.ThecommonIoreignandsecuritypolicyshallbeputinto
eIIectbytheHighRepresentativeoItheUnionIorForeignAIIairsandSecurity
19

PolicyandbyMemberStates,inaccordancewiththeTreaties.ThespeciIicroleoIthe
EuropeanParliamentandoItheCommissioninthisareaisdeIinedbytheTreaties.
TheCourtoIJusticeoItheEuropeanUnionshallnothavejurisdictionwithrespectto
theseprovisions,withtheexceptionoIitsjurisdictiontomonitorcompliancewith
Article40oIthisTreatyandtoreviewthelegalityoIcertaindecisionsasprovidedIor
bythesecondparagraphoIArticle275oItheTreatyontheFunctioningoIthe
EuropeanUnion.
2.WithintheIrameworkoItheprinciplesandobjectivesoIitsexternalaction,the
Unionshallconduct,deIineandimplementacommonIoreignandsecuritypolicy,
basedonthedevelopmentoImutualpoliticalsolidarityamongMemberStates,the
identiIicationoIquestionsoIgeneralinterestandtheachievementoIanever-
increasingdegreeoIconvergenceoIMemberStatesactions.
3.TheMemberStatesshallsupporttheUnionsexternalandsecuritypolicyactively
andunreservedlyinaspiritoIloyaltyandmutualsolidarityandshallcomplywiththe
Unionsactioninthisarea.
TheMemberStatesshallworktogethertoenhanceanddeveloptheirmutualpolitical
solidarity.TheyshallreIrainIromanyactionwhichiscontrarytotheinterestsoIthe
UnionorlikelytoimpairitseIIectivenessasacohesiveIorceininternational
relations.
TheCouncilandtheHighRepresentativeshallensurecompliancewiththese
principles.

Article 25

TheUnionshallconductthecommonIoreignandsecuritypolicyby:
(a)deIiningthegeneralguidelines,
(b)adoptingdecisionsdeIining:
(i)actionstobeundertakenbytheUnion;
(ii)positionstobetakenbytheUnion;
(iii)arrangementsIortheimplementationoIthedecisionsreIerredtoinpoints
(i)and(ii);
andby
(c)strengtheningsystematiccooperationbetweenMemberStatesintheconductoI
policy.

20

Article 26

1.TheEuropeanCouncilshallidentiIytheUnionsstrategicinterests,determinethe
objectivesoIanddeIinegeneralguidelines IorthecommonIoreignandsecurity
policy,includingIormatterswithdeIenceimplications.Itshalladoptthenecessary
decisions.
IIinternationaldevelopmentssorequire,thePresidentoItheEuropeanCouncilshall
conveneanextraordinarymeetingoItheEuropeanCouncilinordertodeIinethe
strategiclinesoItheUnionspolicyintheIaceoIsuchdevelopments.
2.TheCouncilshallIramethecommonIoreignandsecuritypolicyandtakethe
decisionsnecessaryIordeIiningandimplementingitonthebasisoIthegeneral
guidelinesandstrategiclinesdeIinedbytheEuropeanCouncil.
TheCouncilandtheHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicyshallensuretheunity,consistencyandeIIectivenessoIactionbythe
Union.
3.ThecommonIoreignandsecuritypolicyshallbeputintoeIIectbytheHigh
RepresentativeandbytheMemberStates,usingnationalandUnionresources.

Article 27

1.TheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicy,who
shallchairtheForeignAIIairsCouncil,shallcontributethroughhisproposalstowards
thepreparationoIthecommonIoreignandsecuritypolicyandshallensure
implementationoIthedecisionsadoptedbytheEuropeanCouncilandtheCouncil.
2.TheHighRepresentativeshallrepresenttheUnionIormattersrelatingtothe
commonIoreignandsecuritypolicy.Heshallconductpoliticaldialoguewiththird
partiesontheUnionsbehalIandshallexpresstheUnionspositionininternational
organisationsandatinternationalconIerences.
3.InIulIillinghismandate,theHighRepresentativeshallbeassistedbyaEuropean
ExternalActionService.Thisserviceshallworkincooperationwiththediplomatic
servicesoItheMemberStatesandshallcompriseoIIicialsIromrelevantdepartments
oItheGeneralSecretariatoItheCouncilandoItheCommissionaswellasstaII
secondedIromnationaldiplomaticservicesoItheMemberStates.Theorganisation
andIunctioningoItheEuropeanExternalActionServiceshallbeestablishedbya
decisionoItheCouncil.TheCouncilshallactonaproposalIromtheHigh
RepresentativeaIterconsultingtheEuropeanParliamentandaIterobtainingthe
consentoItheCommission.

21

Article 28

1.WheretheinternationalsituationrequiresoperationalactionbytheUnion,the
Councilshalladoptthenecessarydecisions.Theyshalllaydowntheirobjectives,
scope,themeanstobemadeavailabletotheUnion,iInecessarytheirduration,and
theconditionsIortheirimplementation.
IIthereisachangeincircumstanceshavingasubstantialeIIectonaquestionsubject
tosuchadecision,theCouncilshallreviewtheprinciplesandobjectivesoIthat
decisionandtakethenecessarydecisions.
2.DecisionsreIerredtoinparagraph1shallcommittheMemberStatesinthe
positionstheyadoptandintheconductoItheiractivity.
3..Wheneverthereisanyplantoadoptanationalpositionortakenationalaction
pursuanttoadecisionasreIerredtoinparagraph1,inIormationshallbeprovidedby
theMemberStateconcernedintimetoallow,iInecessary,Iorpriorconsultations
withintheCouncil.TheobligationtoprovidepriorinIormationshallnotapplyto
measureswhicharemerelyanationaltranspositionoICouncildecisions.
4.IncasesoIimperativeneedarisingIromchangesinthesituationandIailinga
reviewoItheCouncildecisionasreIerredtoinparagraph1,MemberStatesmaytake
thenecessarymeasuresasamatteroIurgencyhavingregardtothegeneralobjectives
oIthatdecision.TheMemberStateconcernedshallinIormtheCouncilimmediately
oIanysuchmeasures.
5.ShouldtherebeanymajordiIIicultiesinimplementingadecisionasreIerredtoin
thisArticle,aMemberStateshallreIerthemtotheCouncilwhichshalldiscussthem
andseekappropriatesolutions.Suchsolutionsshallnotruncountertotheobjectives
oIthedecisionreIerredtoinparagraph1orimpairitseIIectiveness.

Article 29

TheCouncilshalladoptdecisionswhichshalldeIinetheapproachoItheUniontoa
particularmatteroIageographicalorthematicnature.MemberStatesshallensure
thattheirnationalpoliciesconIormtotheUnionspositions.

Article 30

1.AnyMemberState,theHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicy,ortheHighRepresentativewiththeCommissionssupport,mayreIer
anyquestionrelatingtothecommonIoreignandsecuritypolicytotheCounciland
maysubmittoitinitiativesorproposalsasappropriate.
22

2.Incasesrequiringarapiddecision,theHighRepresentative,oIhisownmotion,or
attherequestoIaMemberState,shallconveneanextraordinaryCouncilmeeting
within48hoursor,inanemergency,withinashorterperiod.

Article 31

1.DecisionsunderthisChaptershallbetakenbytheEuropeanCouncilandthe
Councilactingunanimously,exceptwherethisChapterprovidesotherwise.The
adoptionoIlegislativeactsshallbeexcluded.
Whenabstaininginavote,anymemberoItheCouncilmayqualiIyitsabstentionby
makingaIormaldeclarationunderthepresentsub-paragraph.Inthatcase,itshallnot
beobligedtoapplythedecision,butshallacceptthatthedecisioncommitstheUnion.
InaspiritoImutualsolidarity,theMemberStateconcernedshallreIrainIromany
actionlikelytoconIlictwithorimpedeUnionactionbasedonthatdecisionandthe
otherMemberStatesshallrespectitsposition.IIthemembersoItheCouncil
qualiIyingtheirabstentioninthiswayrepresentatleastonethirdoItheMember
StatescomprisingatleastonethirdoIthepopulationoItheUnion,thedecisionshall
notbeadopted.
2.ByderogationIromtheprovisionsoIparagraph1,theCouncilshallactbyqualiIied
majority:
whenadoptingadecisiondeIiningaUnionactionorpositiononthebasisoIa
decisionoItheEuropeanCouncilrelatingtotheUnionsstrategicinterestsand
objectives,asreIerredtoinArticle22(1),
whenadoptinganydecisiondeIiningaUnionactionorposition,onaproposal
whichtheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicy
haspresentedIollowingaspeciIicrequestIromtheEuropeanCouncil,madeonits
owninitiativeorthatoItheHighRepresentative,
whenadoptinganydecisionimplementingadecisiondeIiningaUnionactionor
position,
whenappointingaspecialrepresentativeinaccordancewithArticle33.
IIamemberoItheCouncildeclaresthat,IorvitalandstatedreasonsoInational
policy,itintendstoopposetheadoptionoIadecisiontobetakenbyqualiIied
majority,avoteshallnotbetaken.TheHighRepresentativewill,incloseconsultation
withtheMemberStateinvolved,searchIorasolutionacceptabletoit.IIhedoesnot
succeed,theCouncilmay,actingbyaqualiIiedmajority,requestthatthematterbe
reIerredtotheEuropeanCouncilIordecisionbyunanimity.
3.TheEuropeanCouncilmayunanimouslyadoptadecisionstipulatingthatthe
CouncilshallactbyaqualiIiedmajorityincasesotherthanthosereIerredtoin
paragraph2.
4.Paragraphs2and3shallnotapplytodecisionshavingmilitaryordeIence
implications.
23

5.Forproceduralquestions,theCouncilshallactbyamajorityoIitsmembers.

Article 32

MemberStatesshallconsultoneanotherwithintheEuropeanCouncilandtheCouncil
onanymatteroIIoreignandsecuritypolicyoIgeneralinterestinordertodeterminea
commonapproach.BeIoreundertakinganyactionontheinternationalsceneor
enteringintoanycommitmentwhichcouldaIIecttheUnionsinterests,eachMember
StateshallconsulttheotherswithintheEuropeanCouncilortheCouncil.Member
Statesshallensure,throughtheconvergenceoItheiractions,thattheUnionisableto
assertitsinterestsandvaluesontheinternationalscene.MemberStatesshallshow
mutualsolidarity.
WhentheEuropeanCouncilortheCouncilhasdeIinedacommonapproachoIthe
UnionwithinthemeaningoItheIirstparagraph,theHighRepresentativeoItheUnion
IorForeignAIIairsandSecurityPolicyandtheMinistersIorForeignAIIairsoIthe
MemberStatesshallcoordinatetheiractivitieswithintheCouncil.
ThediplomaticmissionsoItheMemberStatesandtheUniondelegationsin
thirdcountriesandatinternationalorganisationsshallcooperateandshallcontribute
toIormulatingandimplementingthecommonapproach.

Article 33

TheCouncilmay,onaproposalIromtheHighRepresentativeoItheUnionIor
ForeignAIIairsandSecurityPolicy,appointaspecialrepresentativewithamandate
inrelationtoparticularpolicyissues.Thespecialrepresentativeshallcarryouthis
mandateundertheauthorityoItheHighRepresentative.

Article 34

1.MemberStatesshallcoordinatetheiractionininternationalorganisationsandat
internationalconIerences.TheyshallupholdtheUnionspositionsinsuchIorums.
TheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicyshall
organisethisco-ordination.
IninternationalorganisationsandatinternationalconIerenceswherenotallthe
MemberStatesparticipate,thosewhichdotakepartshallupholdtheUnions
positions.
2.InaccordancewithArticle24(3),MemberStatesrepresentedininternational
organisationsorinternationalconIerenceswherenotalltheMemberStatesparticipate
24

shallkeeptheotherMemberStatesandtheHighRepresentativeinIormedoIany
matteroIcommoninterest.
MemberStateswhicharealsomembersoItheUnitedNationsSecurityCouncilwill
concertandkeeptheotherMemberStatesandtheHighRepresentativeIully
inIormed.MemberStateswhicharemembersoItheSecurityCouncilwill,inthe
executionoItheirIunctions,deIendthepositionsandtheinterestsoItheUnion,
withoutprejudicetotheirresponsibilitiesundertheprovisionsoItheUnitedNations
Charter.
WhentheUnionhasdeIinedapositiononasubjectwhichisontheUnitedNations
SecurityCouncilagenda,thoseMemberStateswhichsitontheSecurityCouncilshall
requestthattheHighRepresentativebeinvitedtopresenttheUnionsposition.

Article 35

ThediplomaticandconsularmissionsoItheMemberStatesandtheUnion
delegationsinthirdcountriesandinternationalconIerences,andtheirrepresentations
tointernationalorganisations,shallcooperateinensuringthatthedecisionsdeIining
UnionpositionsandactionsadoptedpursuanttothisChapterarecompliedwithand
implemented.
TheyshallstepupcooperationbyexchanginginIormationandcarryingoutjoint
assessments.
TheyshallcontributetotheimplementationoItherightoIcitizensoItheUnionto
protectionintheterritoryoIthirdcountriesasreIerredtoinArticle20(2)(c)oIthe
TreatyontheFunctioningoItheEuropeanUnionandoIthemeasuresadopted
pursuanttoArticle23oIthatTreaty.

Article 36

TheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicyshall
regularlyconsulttheEuropeanParliamentonthemainaspectsandthebasicchoices
oIthecommonIoreignandsecuritypolicyandinIormitoIhowthosepoliciesevolve.
HeshallensurethattheviewsoItheEuropeanParliamentaredulytakeninto
consideration.SpecialrepresentativesmaybeinvolvedinbrieIingthe
EuropeanParliament.
TheEuropeanParliamentmayaskquestionsoItheCouncilormake
recommendationstoitandtotheHighRepresentative.Twiceayearitshallholda
debateonprogressinimplementingthecommonIoreignandsecuritypolicy,
includingthecommonsecurityanddeIencepolicy.

25

Article 37

TheUnionmayconcludeagreementswithoneormoreStatesorinternational
organisationsinimplementationoIthisChapter.

Article 38

WithoutprejudicetoArticle240oItheTreatyontheFunctioningoItheEuropean
Union,aPoliticalandSecurityCommitteeshallmonitortheinternationalsituationin
theareascoveredbythecommonIoreignandsecuritypolicyandcontributetothe
deIinitionoIpoliciesbydeliveringopinionstotheCouncilattherequestoIthe
CounciloroItheHighRepresentativeoItheUnionIorForeignAIIairsandSecurity
Policyoronitsowninitiative.ItshallalsomonitortheimplementationoIagreed
policies,withoutprejudicetothepowersoItheHighRepresentative.
WithinthescopeoIthisChapter,thePoliticalandSecurityCommitteeshallexercise,
undertheresponsibilityoItheCouncilandoItheHighRepresentative,thepolitical
controlandstrategicdirectionoIcrisismanagementoperationsreIerredtoinArticle
43.
TheCouncilmayauthorisetheCommittee,IorthepurposeandIorthedurationoIa
crisismanagementoperation,asdeterminedbytheCouncil,totaketherelevant
decisionsconcerningthepoliticalcontrolandstrategicdirectionoItheoperation.

Article 39

InaccordancewithArticle16oItheTreatyontheFunctioningoItheEuropeanUnion
andbywayoIderogationIromparagraph2thereoI,theCouncilshalladoptadecision
layingdowntherulesrelatingtotheprotectionoIindividualswithregardtothe
processingoIpersonaldatabytheMemberStateswhencarryingoutactivitieswhich
IallwithinthescopeoIthisChapter,andtherulesrelatingtotheIreemovementoI
suchdata.CompliancewiththeserulesshallbesubjecttothecontroloIindependent
authorities.

Article 40

TheimplementationoIthecommonIoreignandsecuritypolicyshallnotaIIectthe
applicationoItheproceduresandtheextentoIthepowersoItheinstitutionslaid
downbytheTreatiesIortheexerciseoItheUnioncompetencesreIerredtoinArticles
3to6oItheTreatyontheFunctioningoItheEuropeanUnion.
26

Similarly,theimplementationoIthepolicieslistedinthoseArticlesshallnotaIIect
theapplicationoItheproceduresandtheextentoIthepowersoItheinstitutionslaid
downbytheTreatiesIortheexerciseoItheUnioncompetencesunderthisChapter.

Article 41

1.AdministrativeexpendituretowhichtheimplementationoIthisChaptergivesrise
IortheinstitutionsshallbechargedtotheUnionbudget.
2.OperatingexpendituretowhichtheimplementationoIthisChaptergivesriseshall
alsobechargedtotheUnionbudget,exceptIorsuchexpenditurearisingIrom
operationshavingmilitaryordeIenceimplicationsandcaseswheretheCouncilacting
unanimouslydecidesotherwise.
IncaseswhereexpenditureisnotchargedtotheUnionbudget,itshallbechargedto
theMemberStatesinaccordancewiththegrossnationalproductscale,unlessthe
Councilactingunanimouslydecidesotherwise.AsIorexpenditurearisingIrom
operationshavingmilitaryordeIenceimplications,MemberStateswhose
representativesintheCouncilhavemadeaIormaldeclarationunderArticle31(1),
secondsubparagraph,shallnotbeobligedtocontributetotheIinancingthereoI.
3.TheCouncilshalladoptadecisionestablishingthespeciIicproceduresIor
guaranteeingrapidaccesstoappropriationsintheUnionbudgetIorurgentIinancing
oIinitiativesintheIrameworkoIthecommonIoreignandsecuritypolicy,andin
particularIorpreparatoryactivitiesIorthetasksreIerredtoinArticle42(1)and
Article43.ItshallactaIterconsultingtheEuropeanParliament.
PreparatoryactivitiesIorthetasksreIerredtoinArticle42(1)andArticle43which
arenotchargedtotheUnionbudgetshallbeIinancedbyastart-upIundmadeupoI
MemberStatescontributions.
TheCouncilshalladoptbyaqualiIiedmajority,onaproposalIromtheHigh
RepresentativeoItheUnionIorForeignAIIairsandSecurityPolicy,decisions
establishing:
(a)theproceduresIorsettingupandIinancingthestart-upIund,inparticularthe
amountsallocatedtotheIund;

(b)theproceduresIoradministeringthestart-upIund;

(c)theIinancialcontrolprocedures.
WhenthetaskplannedinaccordancewithArticle42(1)andArticle43cannotbe
chargedtotheUnionbudget,theCouncilshallauthorisetheHighRepresentativeto
usetheIund.TheHighRepresentativeshallreporttotheCouncilonthe
implementationoIthisremit.

27

SECTION2

PROVISIONSONTHECOMMONSECURITYANDDEFENCEPOLICY

Article 42

1.ThecommonsecurityanddeIencepolicyshallbeanintegralpartoIthecommon
Ioreignandsecuritypolicy.ItshallprovidetheUnionwithanoperationalcapacity
drawingoncivilianandmilitaryassets.TheUnionmayusethemonmissionsoutside
theUnionIorpeace-keeping,conIlictpreventionandstrengtheninginternational
securityinaccordancewiththeprinciplesoItheUnitedNationsCharter.The
perIormanceoIthesetasksshallbeundertakenusingcapabilitiesprovidedbythe
MemberStates.
2.ThecommonsecurityanddeIencepolicyshallincludetheprogressiveIramingoIa
commonUniondeIencepolicy.ThiswillleadtoacommondeIence,whenthe
EuropeanCouncil,actingunanimously,sodecides.Itshallinthatcaserecommendto
theMemberStatestheadoptionoIsuchadecisioninaccordancewiththeirrespective
constitutionalrequirements.
ThepolicyoItheUnioninaccordancewiththisSectionshallnotprejudicethe
speciIiccharacteroIthesecurityanddeIencepolicyoIcertainMemberStatesand
shallrespecttheobligationsoIcertainMemberStates,whichseetheircommon
deIencerealisedintheNorthAtlanticTreatyOrganisation(NATO),undertheNorth
AtlanticTreatyandbecompatiblewiththecommonsecurityanddeIencepolicy
establishedwithinthatIramework.

3.MemberStatesshallmakecivilianandmilitarycapabilitiesavailabletotheUnion
IortheimplementationoIthecommonsecurityanddeIencepolicy,tocontributeto
theobjectivesdeIinedbytheCouncil.ThoseMemberStateswhichtogetherestablish
multinationalIorcesmayalsomakethemavailabletothecommonsecurityand
deIencepolicy.
MemberStatesshallundertakeprogressivelytoimprovetheirmilitarycapabilities.
AnAgencyintheIieldoIdeIencecapabilitiesdevelopment,research,acquisitionand
armaments(hereinaIterreIerredtoastheEuropeanDeIenceAgency)shallidentiIy
operationalrequirements,shallpromotemeasurestosatisIythoserequirements,shall
contributetoidentiIyingand,whereappropriate,implementinganymeasureneededto
strengthentheindustrialandtechnologicalbaseoIthedeIencesector,shallparticipate
indeIiningaEuropeancapabilitiesandarmamentspolicy,andshallassisttheCouncil
inevaluatingtheimprovementoImilitarycapabilities.

4.DecisionsrelatingtothecommonsecurityanddeIencepolicy,includingthose
initiatingamissionasreIerredtointhisArticle,shallbeadoptedbytheCouncil
actingunanimouslyonaproposalIromtheHighRepresentativeoItheUnionIor
ForeignAIIairsandSecurityPolicyoraninitiativeIromaMemberState.TheHigh
RepresentativemayproposetheuseoIbothnationalresourcesandUnioninstruments,
togetherwiththeCommissionwhereappropriate.
28

5.TheCouncilmayentrusttheexecutionoIatask,withintheUnionIramework,toa
groupoIMemberStatesinordertoprotecttheUnionsvaluesandserveitsinterests.
TheexecutionoIsuchataskshallbegovernedbyArticle44.

6.ThoseMemberStateswhosemilitarycapabilitiesIulIilhighercriteriaandwhich
havemademorebindingcommitmentstooneanotherinthisareawithaviewtothe
mostdemandingmissionsshallestablishpermanentstructuredcooperationwithinthe
UnionIramework.SuchcooperationshallbegovernedbyArticle46.Itshallnot
aIIecttheprovisionsoIArticle43.
7.IIaMemberStateisthevictimoIarmedaggressiononitsterritory,theother
MemberStatesshallhavetowardsitanobligationoIaidandassistancebyallthe
meansintheirpower,inaccordancewithArticle51oItheUnitedNationsCharter.
ThisshallnotprejudicethespeciIiccharacteroIthesecurityanddeIencepolicyoI
certainMemberStates.
Commitmentsandcooperationinthisareashallbeconsistentwithcommitments
undertheNorthAtlanticTreatyOrganisation,which,IorthoseStateswhichare
membersoIit,remainstheIoundationoItheircollectivedeIenceandtheIorumIorits
implementation.

Article 43

1.ThetasksreIerredtoinArticle42(1),inthecourseoIwhichtheUnionmayuse
civilianandmilitarymeans,shallincludejointdisarmamentoperations,humanitarian
andrescuetasks,militaryadviceandassistancetasks,conIlictpreventionandpeace-
keepingtasks,tasksoIcombatIorcesincrisismanagement,includingpeace-making
andpost-conIlictstabilisation.AllthesetasksmaycontributetotheIightagainst
terrorism,includingbysupportingthirdcountriesincombatingterrorismintheir
territories.
2.TheCouncilshalladoptdecisionsrelatingtothetasksreIerredtoinparagraph1,
deIiningtheirobjectivesandscopeandthegeneralconditionsIortheir
implementation.TheHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicy,actingundertheauthorityoItheCouncilandincloseandconstant
contactwiththePoliticalandSecurityCommittee,shallensurecoordinationoIthe
civilianandmilitaryaspectsoIsuchtasks.

Article 44

1.WithintheIrameworkoIthedecisionsadoptedinaccordancewithArticle43,the
CouncilmayentrusttheimplementationoIatasktoagroupoIMemberStateswhich
arewillingandhavethenecessarycapabilityIorsuchatask.ThoseMemberStates,in
29

associationwiththeHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicy,shallagreeamongthemselvesonthemanagementoIthetask.
2.MemberStatesparticipatinginthetaskshallkeeptheCouncilregularlyinIormed
oIitsprogressontheirowninitiativeorattherequestoIanotherMemberState.Those
StatesshallinIormtheCouncilimmediatelyshouldthecompletionoIthetaskentail
majorconsequencesorrequireamendmentoItheobjective,scopeandconditions
determinedIorthetaskinthedecisionsreIerredtoinparagraph1.Insuchcases,the
Councilshalladoptthenecessarydecisions.

Article 45

1.TheEuropeanDeIenceAgencyreIerredtoinArticle42(3),subjecttotheauthority
oItheCouncil,shallhaveasitstaskto:
(a)contributetoidentiIyingtheMemberStatesmilitarycapabilityobjectivesand
evaluatingobservanceoIthecapabilitycommitmentsgivenbytheMemberStates;
(b)promoteharmonisationoIoperationalneedsandadoptionoIeIIective,compatible
procurementmethods;
(c)proposemultilateralprojectstoIulIiltheobjectivesintermsoImilitary
capabilities,ensurecoordinationoItheprogrammesimplementedbythe
MemberStatesandmanagementoIspeciIiccooperationprogrammes;
(d)supportdeIencetechnologyresearch,andcoordinateandplanjointresearch
activitiesandthestudyoItechnicalsolutionsmeetingIutureoperationalneeds;
(e)contributetoidentiIyingand,iInecessary,implementinganyuseIulmeasureIor
strengtheningtheindustrialandtechnologicalbaseoIthedeIencesectorandIor
improvingtheeIIectivenessoImilitaryexpenditure.
2.TheEuropeanDeIenceAgencyshallbeopentoallMemberStateswishingtobe
partoIit.TheCouncil,actingbyaqualiIiedmajority,shalladoptadecisiondeIining
theAgencysstatute,seatandoperationalrules.ThatdecisionshouldtakeaccountoI
theleveloIeIIectiveparticipationintheAgencysactivities.SpeciIicgroupsshallbe
setupwithintheAgencybringingtogetherMemberStatesengagedinjointprojects.
TheAgencyshallcarryoutitstasksinliaisonwiththeCommissionwherenecessary.

Article 46

1.ThoseMemberStateswhichwishtoparticipateinthepermanentstructured
cooperationreIerredtoinArticle42(6),whichIulIilthecriteriaandhavemadethe
commitmentsonmilitarycapabilitiessetoutintheProtocolonpermanentstructured
cooperation,shallnotiIytheirintentiontotheCouncilandtotheHighRepresentative
oItheUnionIorForeignAIIairsandSecurityPolicy.
30

2.WithinthreemonthsIollowingthenotiIicationreIerredtoinparagraph1the
Councilshalladoptadecisionestablishingpermanentstructuredcooperationand
determiningthelistoIparticipatingMemberStates.TheCouncilshallactbya
qualiIiedmajorityaIterconsultingtheHighRepresentative.
3.AnyMemberStatewhich,atalaterstage,wishestoparticipateinthepermanent
structuredcooperationshallnotiIyitsintentiontotheCouncilandtotheHigh
Representative.
TheCouncilshalladoptadecisionconIirmingtheparticipationoItheMemberState
concernedwhichIulIilsthecriteriaandmakesthecommitmentsreIerredtoin
Articles1and2oItheProtocolonpermanentstructuredcooperation.TheCouncil
shallactbyaqualiIiedmajorityaIterconsultingtheHighRepresentative.Only
membersoItheCouncilrepresentingtheparticipatingMemberStatesshalltakepart
inthevote.
AqualiIiedmajorityshallbedeIinedinaccordancewithArticle238(3)(a)oIthe
TreatyontheFunctioningoItheEuropeanUnion.
4.IIaparticipatingMemberStatenolongerIulIilsthecriteriaorisnolongerableto
meetthecommitmentsreIerredtoinArticles1and2oItheProtocolonpermanent
structuredcooperation,theCouncilmayadoptadecisionsuspendingtheparticipation
oItheMemberStateconcerned.
TheCouncilshallactbyaqualiIiedmajority.OnlymembersoItheCouncil
representingtheparticipatingMemberStates,withtheexceptionoItheMemberState
inquestion,shalltakepartinthevote.
AqualiIiedmajorityshallbedeIinedinaccordancewithArticle238(3)(a)oIthe
TreatyontheFunctioningoItheEuropeanUnion.
5.AnyparticipatingMemberStatewhichwishestowithdrawIrompermanent
structuredcooperationshallnotiIyitsintentiontotheCouncil,whichshalltakenote
thattheMemberStateinquestionhasceasedtoparticipate.
6.ThedecisionsandrecommendationsoItheCouncilwithintheIrameworkoI
permanentstructuredcooperation,otherthanthoseprovidedIorinparagraphs2to5,
shallbeadoptedbyunanimity.ForthepurposesoIthisparagraph,unanimityshallbe
constitutedbythevotesoItherepresentativesoItheparticipatingMemberStates
only.

TITLEVI
31

FINALPROVISIONS

Article 47

TheUnionshallhavelegalpersonality.

Article 48

1.TheTreatiesmaybeamendedinaccordancewithanordinaryrevisionprocedure.
TheymayalsobeamendedinaccordancewithsimpliIiedrevisionprocedures.
Ordinary revision procedure
2.TheGovernmentoIanyMemberState,theEuropeanParliamentorthe
CommissionmaysubmittotheCouncilproposalsIortheamendmentoItheTreaties
onwhichtheUnionisIounded.Theseproposalsmay,inter alia,serveeitherto
increaseortoreducethecompetencesconIerredontheUnionintheTreaties.These
proposalsshallbesubmittedtotheEuropeanCouncilbytheCouncilandthenational
ParliamentsshallbenotiIied.
3.IItheEuropeanCouncil,aIterconsultingtheEuropeanParliamentandthe
Commission,adoptsbyasimplemajorityadecisioninIavouroIexaminingthe
proposedamendments,thePresidentoItheEuropeanCouncilshallconvenea
ConventioncomposedoIrepresentativesoIthenationalParliaments,oItheHeadsoI
StateorGovernmentoItheMemberStates,oItheEuropeanParliamentandoIthe
Commission.TheEuropeanCentralBankshallalsobeconsultedinthecaseoI
institutionalchangesinthemonetaryarea.TheConventionshallexaminethe
proposalsIoramendmentsandshalladoptbyconsensusarecommendationtoa
conIerenceoIrepresentativesoIthegovernmentsoItheMemberStatesasprovided
Iorinparagraph4.
TheEuropeanCouncilmaydecidebyasimplemajority,aIterobtainingtheconsentoI
theEuropeanParliament,nottoconveneaConventionshouldthisnotbejustiIiedby
theextentoItheproposedamendments.Inthelattercase,theEuropeanCouncilshall
deIinethetermsoIreIerenceIoraconIerenceoIrepresentativesoIthegovernments
oItheMemberStates.
4.AconIerenceoIrepresentativesoIthegovernmentsoItheMemberStatesshallbe
convenedbythePresidentoItheCouncilIorthepurposeoIdeterminingbycommon
accordtheamendmentstobemadetotheTreaties.
TheamendmentsshallenterintoIorceaIterbeingratiIiedbyalltheMemberStatesin
accordancewiththeirrespectiveconstitutionalrequirements.
5.II,twoyearsaIterthesignatureoIatreatyamendingtheTreaties,IourIiIthsoIthe
MemberStateshaveratiIieditandoneormoreMemberStateshaveencountered
32

diIIicultiesinproceedingwithratiIication,themattershallbereIerredtotheEuropean
Council.
Simplified revision procedure
6.TheGovernmentoIanyMemberState,theEuropeanParliamentorthe
CommissionmaysubmittotheEuropeanCouncilproposalsIorrevisingallorpartoI
theprovisionsoIPartThreeoItheTreatyontheFunctioningoItheEuropeanUnion
relatingtotheinternalpoliciesandactionoItheUnion.
TheEuropeanCouncilmayadoptadecisionamendingallorpartoItheprovisionsoI
PartThreeoItheTreatyontheFunctioningoItheEuropeanUnion.TheEuropean
CouncilshallactbyunanimityaIterconsultingtheEuropeanParliamentandthe
Commission,andtheEuropeanCentralBankinthecaseoIinstitutionalchangesin
themonetaryarea.ThatdecisionshallnotcomeintoIorceuntilithasbeenapproved
bytheMemberStatesinaccordancewiththeirrespectiveconstitutionalrequirements.
ThedecisionreIerredtointhesecondsubparagraphshallnotincreasethe
competencesconIerredontheUnionintheTreaties.
7.WheretheTreatyontheFunctioningoItheEuropeanUnionorTitleVoIthis
TreatyprovidesIortheCounciltoactbyunanimityinagivenareaorcase,the
EuropeanCouncilmayadoptadecisionauthorisingtheCounciltoactbyaqualiIied
majorityinthatareaorinthatcase.Thisparagraphshallnotapplytodecisionswith
militaryimplicationsorthoseintheareaoIdeIence.
WhentheTreatyontheFunctioningoItheEuropeanUnionprovidesIorlegislative
actstobeadoptedbytheCouncilinaccordancewithaspeciallegislativeprocedure,
theEuropeanCouncilmayadoptadecisionallowingIortheadoptionoIsuchactsin
accordancewiththeordinarylegislativeprocedure.
AnyinitiativetakenbytheEuropeanCouncilonthebasisoItheIirstorthesecond
subparagraphshallbenotiIiedtothenationalParliaments.IIanationalParliament
makesknownitsoppositionwithinsixmonthsoIthedateoIsuchnotiIication,the
decisionreIerredtointheIirstorthesecondsubparagraphshallnotbeadopted.Inthe
absenceoIopposition,theEuropeanCouncilmayadoptthedecision.
FortheadoptionoIthedecisionsreIerredtointheIirstandsecondsubparagraphs,the
EuropeanCouncilshallactbyunanimityaIterobtainingtheconsentoItheEuropean
Parliament,whichshallbegivenbyamajorityoIitscomponentmembers.

Article 49

AnyEuropeanStatewhichrespectsthevaluesreIerredtoinArticle2andis
committedtopromotingthemmayapplytobecomeamemberoItheUnion.The
EuropeanParliamentandnationalParliamentsshallbenotiIiedoIthisapplication.
TheapplicantStateshalladdressitsapplicationtotheCouncil,whichshallact
unanimouslyaIterconsultingtheCommissionandaIterreceivingtheconsentoIthe
EuropeanParliament,whichshallactbyamajorityoIitscomponentmembers.The
conditionsoIeligibilityagreeduponbytheEuropeanCouncilshallbetakeninto
account.
33

TheconditionsoIadmissionandtheadjustmentstotheTreatiesonwhichtheUnionis
IoundedwhichsuchadmissionentailsshallbethesubjectoIanagreementbetween
theMemberStatesandtheapplicantState.ThisagreementshallbesubmittedIor
ratiIicationbyallthecontractingStatesinaccordancewiththeirrespective
constitutionalrequirements.

Article 50

1.AnyMemberStatemaydecidetowithdrawIromtheUnioninaccordancewithits
ownconstitutionalrequirements.

2.AMemberStatewhichdecidestowithdrawshallnotiIytheEuropeanCounciloI
itsintention.InthelightoItheguidelinesprovidedbytheEuropeanCouncil,the
UnionshallnegotiateandconcludeanagreementwiththatState,settingoutthe
arrangementsIoritswithdrawal,takingaccountoItheIrameworkIoritsIuture
relationshipwiththeUnion.Thatagreementshallbenegotiatedinaccordancewith
Article218(3)oItheTreatyontheFunctioningoItheEuropeanUnion.Itshallbe
concludedbytheCouncil,actingbyaqualiIiedmajority,aIterobtainingtheconsent
oItheEuropeanParliament.

3.TheTreatiesshallceasetoapplytotheStateinquestionIromthedateoIentryinto
IorceoIthewithdrawalagreementor,Iailingthat,twoyearsaIterthenotiIication
reIerredtoinparagraph2,unlesstheEuropeanCouncil,inagreementwiththe
MemberStateconcerned,unanimouslydecidestoextendthisperiod.
4.ForthepurposesoIparagraphs2and3,thememberoItheEuropeanCounciloroI
theCouncilrepresentingthewithdrawingMemberStateshallnotparticipateinthe
discussionsoItheEuropeanCouncilorCouncilorindecisionsconcerningit.
AqualiIiedmajorityshallbedeIinedinaccordancewithArticle238(3)(b)oIthe
TreatyontheFunctioningoItheEuropeanUnion.
5.IIaStatewhichhaswithdrawnIromtheUnionaskstorejoin,itsrequestshallbe
subjecttotheprocedurereIerredtoinArticle49.

Article 51

TheProtocolsandAnnexestotheTreatiesshallIormanintegralpartthereoI.

Article 52

1.ThisTreatyshallapplytotheKingdomoIBelgium,theRepublicoIBulgaria,the
CzechRepublic,theKingdomoIDenmark,theFederalRepublicoIGermany,the
34

RepublicoIEstonia,Ireland,theHellenicRepublic,theKingdomoISpain,theFrench
Republic,theItalianRepublic,theRepublicoICyprus,theRepublicoILatvia,the
RepublicoILithuania,theGrandDuchyoILuxembourg,theRepublicoIHungary,
theRepublicoIMalta,theKingdomoItheNetherlands,theRepublicoIAustria,the
RepublicoIPoland,thePortugueseRepublic,Romania,theRepublicoISlovenia,the
SlovakRepublic,theRepublicoIFinland,theKingdomoISwedenandthe
UnitedKingdomoIGreatBritainandNorthernIreland.

2.TheterritorialscopeoItheTreatiesisspeciIiedinArticle355oItheTreatyonthe
FunctioningoItheEuropeanUnion.

Article 53

ThisTreatyisconcludedIoranunlimitedperiod.

Article 54

1.ThisTreatyshallberatiIiedbytheHighContractingPartiesinaccordancewith
theirrespectiveconstitutionalrequirements.TheinstrumentsoIratiIicationshallbe
depositedwiththeGovernmentoItheItalianRepublic.
2.ThisTreatyshallenterintoIorceon1January1993,providedthatallthe
InstrumentsoIratiIicationhavebeendeposited,or,Iailingthat,ontheIirstdayoIthe
monthIollowingthedepositoItheInstrumentoIratiIicationbythelastsignatory
Statetotakethisstep.

Article 55

1.ThisTreaty,drawnupinasingleoriginalintheBulgarian,Czech,Danish,Dutch,
English,Estonian,Finnish,French,German,Greek,Hungarian,Irish,Italian,Latvian,
Lithuanian,Maltese,Polish,Portuguese,Romanian,Slovak,Slovenian,Spanishand
Swedishlanguages,thetextsineachoItheselanguagesbeingequallyauthentic,shall
bedepositedinthearchivesoItheGovernmentoItheItalianRepublic,whichwill
transmitacertiIiedcopytoeachoIthegovernmentsoItheothersignatoryStates.
2.ThisTreatymayalsobetranslatedintoanyotherlanguagesasdeterminedby
MemberStatesamongthosewhich,inaccordancewiththeirconstitutionalorder,
enjoyoIIicialstatusinallorpartoItheirterritory.AcertiIiedcopyoIsuch
translationsshallbeprovidedbytheMemberStatesconcernedtobedepositedinthe
archivesoItheCouncil.
INWITNESSWHEREOFtheundersignedPlenipotentiarieshavesignedthisTreaty.
35

CONSOLIDATEDVERSIONOFTHE
TREATYONTHEFUNCTIONINGOFTHEEUROPEANUNION
HISMAJESTYTHEKINGOFTHEBELGIANS,THEPRESIDENTOFTHE
FEDERALREPUBLICOFGERMANY,THEPRESIDENTOFTHEFRENCH
REPUBLIC,THEPRESIDENTOFTHEITALIANREPUBLIC,HERROYAL
HIGHNESSTHEGRANDDUCHESSOFLUXEMBOURG,HERMAJESTYTHE
QUEENOFTHENETHERLANDS,
DETERMINEDtolaytheIoundationsoIanevercloserunionamongthepeoplesoI
Europe,
RESOLVEDtoensuretheeconomicandsocialprogressoItheirStatesbycommon
actiontoeliminatethebarrierswhichdivideEurope,
AFFIRMINGastheessentialobjectiveoItheireIIortstheconstantimprovementsoI
thelivingandworkingconditionsoItheirpeoples,
RECOGNISINGthattheremovaloIexistingobstaclescallsIorconcertedactionin
ordertoguaranteesteadyexpansion,balancedtradeandIaircompetition,
ANXIOUStostrengthentheunityoItheireconomiesandtoensuretheirharmonious
developmentbyreducingthediIIerencesexistingbetweenthevariousregionsandthe
backwardnessoIthelessIavouredregions,
DESIRINGtocontribute,bymeansoIacommoncommercialpolicy,tothe
progressiveabolitionoIrestrictionsoninternationaltrade,
INTENDINGtoconIirmthesolidaritywhichbindsEuropeandtheoverseascountries
anddesiringtoensurethedevelopmentoItheirprosperity,inaccordancewiththe
principlesoItheCharteroItheUnitedNations,
RESOLVEDbythuspoolingtheirresourcestopreserveandstrengthenpeaceand
liberty,andcallingupontheotherpeoplesoIEuropewhosharetheiridealtojoinin
theireIIorts,
DETERMINEDtopromotethedevelopmentoIthehighestpossibleleveloI
knowledgeIortheirpeoplesthroughawideaccesstoeducationandthroughits
continuousupdating,
andtothisendHAVEDESIGNATEDastheirPlenipotentiaries:
(List of plenipotentiaries not reproduced)
WHO,havingexchangedtheirIullpowers,IoundingoodanddueIorm,haveagreed
asIollows.

36

PARTONE

PRINCIPLES

Article 1

1.ThisTreatyorganisestheIunctioningoItheUnionanddeterminestheareasoI,
delimitationoI,andarrangementsIorexercisingitscompetences.
2.ThisTreatyandtheTreatyonEuropeanUnionconstitutetheTreatiesonwhichthe
UnionisIounded.ThesetwoTreaties,whichhavethesamelegalvalue,shallbe
reIerredtoastheTreaties.

TITLEI

CATEGORIESANDAREASOFUNIONCOMPETENCE

Article 2

1.WhentheTreatiesconIerontheUnionexclusivecompetenceinaspeciIicarea,
onlytheUnionmaylegislateandadoptlegallybindingacts,theMemberStatesbeing
abletodosothemselvesonlyiIsoempoweredbytheUnionorIorthe
implementationoIactsoItheUnion.

2.WhentheTreatiesconIerontheUnionacompetencesharedwiththe
MemberStatesinaspeciIicarea,theUnionandtheMemberStatesmaylegislateand
adoptlegallybindingactsinthatarea.TheMemberStatesshallexercisetheir
competencetotheextentthattheUnionhasnotexerciseditscompetence.The
MemberStatesshallexercisetheircompetenceagaintotheextentthattheUnionhas
decidedtoceaseexercisingitscompetence.

3.TheMemberStatesshallcoordinatetheireconomicandemploymentpolicies
withinarrangementsasdeterminedbythisTreaty,whichtheUnionshallhave
competencetoprovide.

4.TheUnionshallhavecompetence,inaccordancewiththeprovisionsoItheTreaty
onEuropeanUnion,todeIineandimplementacommonIoreignandsecuritypolicy,
includingtheprogressiveIramingoIacommondeIencepolicy.
37

5.IncertainareasandundertheconditionslaiddownintheTreaties,theUnionshall
havecompetencetocarryoutactionstosupport,coordinateorsupplementtheactions
oItheMemberStates,withouttherebysupersedingtheircompetenceintheseareas.
LegallybindingactsoItheUnionadoptedonthebasisoItheprovisionsinthe
TreatiesrelatingtotheseareasshallnotentailharmonisationoIMemberStateslaws
orregulations.
6.ThescopeoIandarrangementsIorexercisingtheUnionscompetencesshallbe
determinedbytheprovisionsoItheTreatiesrelatingtoeacharea.

Article 3
1.TheUnionshallhaveexclusivecompetenceintheIollowingareas:
(a)customsunion;

(b)theestablishingoIthecompetitionrulesnecessaryIortheIunctioningoIthe
internalmarket;

(c)monetarypolicyIortheMemberStateswhosecurrencyistheeuro;

(d)theconservationoImarinebiologicalresourcesunderthecommonIisheries
policy;

(e)commoncommercialpolicy.

2.TheUnionshallalsohaveexclusivecompetenceIortheconclusionoIan
internationalagreementwhenitsconclusionisprovidedIorinalegislativeactoIthe
UnionorisnecessarytoenabletheUniontoexerciseitsinternalcompetence,or
insoIarasitsconclusionmayaIIectcommonrulesoraltertheirscope.

Article 4

1.TheUnionshallsharecompetencewiththeMemberStateswheretheTreaties
conIeronitacompetencewhichdoesnotrelatetotheareasreIerredtoinArticles3
and6.
2.SharedcompetencebetweentheUnionandtheMemberStatesappliesinthe
Iollowingprincipalareas:
(a)internalmarket;

(b)socialpolicy,IortheaspectsdeIinedinthisTreaty;

(c)economic,socialandterritorialcohesion;

(d)agricultureandIisheries,excludingtheconservationoImarinebiological
resources;
38

(e)environment;

(I)consumerprotection;

(g)transport;

(h)trans-Europeannetworks;

(i)energy;

(j)areaoIIreedom,securityandjustice;

(k)commonsaIetyconcernsinpublichealthmatters,IortheaspectsdeIinedinthis
Treaty.
3.IntheareasoIresearch,technologicaldevelopmentandspace,theUnionshallhave
competencetocarryoutactivities,inparticulartodeIineandimplementprogrammes;
however,theexerciseoIthatcompetenceshallnotresultinMemberStatesbeing
preventedIromexercisingtheirs.
4.IntheareasoIdevelopmentcooperationandhumanitarianaid,theUnionshallhave
competencetocarryoutactivitiesandconductacommonpolicy;however,the
exerciseoIthatcompetenceshallnotresultinMemberStatesbeingpreventedIrom
exercisingtheirs.

Article 5

1.TheMemberStatesshallcoordinatetheireconomicpolicieswithintheUnion.To
thisend,theCouncilshalladoptmeasures,inparticularbroadguidelinesIorthese
policies.
SpeciIicprovisionsshallapplytothoseMemberStateswhosecurrencyistheeuro.
2.TheUnionshalltakemeasurestoensurecoordinationoItheemploymentpolicies
oItheMemberStates,inparticularbydeIiningguidelinesIorthesepolicies.
3.TheUnionmaytakeinitiativestoensurecoordinationoIMemberStatessocial
policies.

Article 6

39

TheUnionshallhavecompetencetocarryoutactionstosupport,coordinateor
supplementtheactionsoItheMemberStates.TheareasoIsuchactionshall,at
Europeanlevel,be:
(a)protectionandimprovementoIhumanhealth;

(b)industry;

(c)culture;

(d)tourism;

(e)education,vocationaltraining,youthandsport;

(I)civilprotection;

(g)administrativecooperation.

TITLEII

PROVISIONSHAVINGGENERALAPPLICATION

Article 7

TheUnionshallensureconsistencybetweenitspoliciesandactivities,takingalloIits
objectivesintoaccountandinaccordancewiththeprincipleoIconIerraloIpowers.

Article 8

Inallitsactivities,theUnionshallaimtoeliminateinequalities,andtopromote
equality,betweenmenandwomen.

Article 9

40

IndeIiningandimplementingitspoliciesandactions,theUnionshalltakeinto
accountrequirementslinkedtothepromotionoIahighleveloIemployment,the
guaranteeoIadequatesocialprotection,theIightagainstsocialexclusion,andahigh
leveloIeducation,trainingandprotectionoIhumanhealth.

Article 10

IndeIiningandimplementingitspoliciesandactivities,theUnionshallaimtocombat
discriminationbasedonsex,racialorethnicorigin,religionorbelieI,disability,age
orsexualorientation.

Article 11

EnvironmentalprotectionrequirementsmustbeintegratedintothedeIinitionand
implementationoItheUnionpoliciesandactivities,inparticularwithaviewto
promotingsustainabledevelopment.

Article 12

ConsumerprotectionrequirementsshallbetakenintoaccountindeIiningand
implementingotherUnionpoliciesandactivities.

Article 13

InIormulatingandimplementingtheUnionsagriculture,Iisheries,transport,internal
market,researchandtechnologicaldevelopmentandspacepolicies,theUnionandthe
MemberStatesshall,sinceanimalsaresentientbeings,payIullregardtothewelIare
requirementsoIanimals,whilerespectingthelegislativeoradministrativeprovisions
andcustomsoItheMemberStatesrelatinginparticulartoreligiousrites,cultural
traditionsandregionalheritage.

41

Article 14

WithoutprejudicetoArticle4oItheTreatyonEuropeanUnionortoArticles93,106
and107oIthisTreaty,andgiventheplaceoccupiedbyservicesoIgeneraleconomic
interestinthesharedvaluesoItheUnionaswellastheirroleinpromotingsocialand
territorialcohesion,theUnionandtheMemberStates,eachwithintheirrespective
powersandwithinthescopeoIapplicationoItheTreaties,shalltakecarethatsuch
servicesoperateonthebasisoIprinciplesandconditions,particularlyeconomicand
Iinancialconditions,whichenablethemtoIulIiltheirmissions..TheEuropean
ParliamentandtheCouncil,actingbymeansoIregulationsinaccordancewiththe
ordinarylegislativeprocedure,shallestablishtheseprinciplesandsettheseconditions
withoutprejudicetothecompetenceoIMemberStates,incompliancewiththe
Treaties,toprovide,tocommissionandtoIundsuchservices.

Article 15

1.InordertopromotegoodgovernanceandensuretheparticipationoIcivilsociety,
theinstitutions,bodies,oIIicesandagenciesoItheUnionshallconducttheirworkas
openlyaspossible.
2.TheEuropeanParliamentshallmeetinpublic,asshalltheCouncilwhen
consideringandvotingonadraItlegislativeact.
3.AnycitizenoItheUnion,andanynaturalorlegalpersonresidingorhavingits
registeredoIIiceinaMemberState,shallhavearightoIaccesstodocumentsoIthe
Unioninstitutions,bodies,oIIicesandagencies,whatevertheirmedium,subjecttothe
principlesandtheconditionstobedeIinedinaccordancewiththisparagraph.
GeneralprinciplesandlimitsongroundsoIpublicorprivateinterestgoverningthis
rightoIaccesstodocumentsshallbedeterminedbytheEuropeanParliamentandthe
Council,actingbymeansoIregulationsinaccordancewiththeordinarylegislative
procedure.
Eachinstitution,body,oIIiceoragencyshallensurethatitsproceedingsare
transparentandshallelaborateinitsownRulesoIProcedurespeciIicprovisions
regardingaccesstoitsdocuments,inaccordancewiththeregulationsreIerredtointhe
secondsubparagraph.
TheCourtoIJusticeoItheEuropeanUnion,theEuropeanCentralBankandthe
EuropeanInvestmentBankshallbesubjecttothisparagraphonlywhenexercising
theiradministrativetasks.
TheEuropeanParliamentandtheCouncilshallensurepublicationoIthedocuments
relatingtothelegislativeproceduresunderthetermslaiddownbytheregulation
reIerredtointhesecondsubparagraph.

42

Article 16

1.EveryonehastherighttotheprotectionoIpersonaldataconcerningthem.
2.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shalllaydowntherulesrelatingtotheprotectionoIindividuals
withregardtotheprocessingoIpersonaldatabyUnioninstitutions,bodies,oIIices
andagencies,andbytheMemberStateswhencarryingoutactivitieswhichIallwithin
thescopeoIUnionlaw,andtherulesrelatingtotheIreemovementoIsuchdata.
CompliancewiththeserulesshallbesubjecttothecontroloIindependentauthorities.
TherulesadoptedonthebasisoIthisarticleshallbewithoutprejudicetothespeciIic
ruleslaiddowninArticle39oItheTreatyonEuropeanUnion.

Article 17

1.TheUnionrespectsanddoesnotprejudicethestatusundernationallawoI
churchesandreligiousassociationsorcommunitiesintheMemberStates.
2.TheUnionequallyrespectsthestatusundernationallawoIphilosophicalandnon-
conIessionalorganisations.
3.RecognisingtheiridentityandtheirspeciIiccontribution,theUnionshallmaintain
anopen,transparentandregulardialoguewiththesechurchesandorganisations.

PARTTWO

NON-DISCRIMINATIONANDCITIZENSHIPOFTHEUNION

Article 18

WithinthescopeoIapplicationoItheTreaties,andwithoutprejudicetoanyspecial
provisionscontainedtherein,anydiscriminationongroundsoInationalityshallbe
prohibited.
TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,mayadoptrulesdesignedtoprohibitsuchdiscrimination.

43

Article 19

1.WithoutprejudicetotheotherprovisionsoItheTreatiesandwithinthelimitsoIthe
powersconIerredbythemupontheUnion,theCouncil,actingunanimouslyin
accordancewithaspeciallegislativeprocedureandaIterobtainingtheconsentoIthe
EuropeanParliament,maytakeappropriateactiontocombatdiscriminationbasedon
sex,racialorethnicorigin,religionorbelieI,disability,ageorsexualorientation.
2.BywayoIderogationIromparagraph1,theEuropeanParliamentandtheCouncil,
actinginaccordancewiththeordinarylegislativeprocedure,mayadoptthebasic
principlesoItheUnionsincentivemeasures,excludinganyharmonisationoIthelaws
andregulationsoItheMemberStates,tosupportactiontakenbytheMemberStates
inordertocontributetotheachievementoItheobjectivesreIerredtoinparagraph1.

Article 20

1.CitizenshipoItheUnionisherebyestablished.Everypersonholdingthenationality
oIaMemberStateshallbeacitizenoItheUnion.CitizenshipoItheUnionshallbe
additionaltoandnotreplacenationalcitizenship.
2.CitizensoItheUnionshallenjoytherightsandbesubjecttothedutiesprovidedIor
intheTreaties.Theyshallhave,inter alia:
(a)therighttomoveandresideIreelywithintheterritoryoItheMemberStates;
(b)therighttovoteandtostandascandidatesinelectionstotheEuropeanParliament
andinmunicipalelectionsintheirMemberStateoIresidence,underthesame
conditionsasnationalsoIthatState;
(c)therighttoenjoy,intheterritoryoIathirdcountryinwhichtheMemberStateoI
whichtheyarenationalsisnotrepresented,theprotectionoIthediplomaticand
consularauthoritiesoIanyMemberStateonthesameconditionsasthenationalsoI
thatState;
(d)therighttopetitiontheEuropeanParliament,toapplytotheEuropean
Ombudsman,andtoaddresstheinstitutionsandadvisorybodiesoItheUnioninany
oItheTreatylanguagesandtoobtainareplyinthesamelanguage.
TheserightsshallbeexercisedinaccordancewiththeconditionsandlimitsdeIined
bytheTreatiesandbythemeasuresadoptedthereunder.

Article 21

44

1.EverycitizenoItheUnionshallhavetherighttomoveandresideIreelywithinthe
territoryoItheMemberStates,subjecttothelimitationsandconditionslaiddownin
theTreatiesandbythemeasuresadoptedtogivethemeIIect.
2.IIactionbytheUnionshouldprovenecessarytoattainthisobjectiveandthe
Treatieshavenotprovidedthenecessarypowers,theEuropeanParliamentandthe
Council,actinginaccordancewiththeordinarylegislativeprocedure,mayadopt
provisionswithaviewtoIacilitatingtheexerciseoItherightsreIerredtoinparagraph
1.
3.ForthesamepurposesasthosereIerredtoinparagraph1andiItheTreatieshave
notprovidedthenecessarypowers,theCouncil,actinginaccordancewithaspecial
legislativeprocedure,mayadoptmeasuresconcerningsocialsecurityorsocial
protection.TheCouncilshallactunanimouslyaIterconsultingtheEuropean
Parliament.

Article 22

1.EverycitizenoItheUnionresidinginaMemberStateoIwhichheisnotanational
shallhavetherighttovoteandtostandasacandidateatmunicipalelectionsinthe
MemberStateinwhichheresides,underthesameconditionsasnationalsoIthat
State.Thisrightshallbeexercisedsubjecttodetailedarrangementsadoptedbythe
Council,actingunanimouslyinaccordancewithaspeciallegislativeprocedureand
aIterconsultingtheEuropeanParliament;thesearrangementsmayprovideIor
derogationswherewarrantedbyproblemsspeciIictoaMemberState.
2.WithoutprejudicetoArticle223(1)andtotheprovisionsadoptedIorits
implementation,everycitizenoItheUnionresidinginaMemberStateoIwhichheis
notanationalshallhavetherighttovoteandtostandasacandidateinelectionstothe
EuropeanParliamentintheMemberStateinwhichheresides,underthesame
conditionsasnationalsoIthatState.Thisrightshallbeexercisedsubjecttodetailed
arrangementsadoptedbytheCouncil,actingunanimouslyinaccordancewitha
speciallegislativeprocedureandaIterconsultingtheEuropeanParliament;these
arrangementsmayprovideIorderogationswherewarrantedbyproblemsspeciIictoa
MemberState.

Article 23

EverycitizenoItheUnionshall,intheterritoryoIathirdcountryinwhichthe
MemberStateoIwhichheisanationalisnotrepresented,beentitledtoprotectionby
thediplomaticorconsularauthoritiesoIanyMemberState,onthesameconditionsas
thenationalsoIthatState.MemberStatesshalladoptthenecessaryprovisionsand
starttheinternationalnegotiationsrequiredtosecurethisprotection.
45

TheCouncil,actinginaccordancewithaspeciallegislativeprocedureandaIter
consultingtheEuropeanParliament,mayadoptdirectivesestablishingthe
coordinationandcooperationmeasuresnecessarytoIacilitatesuchprotection.

Article 24

TheEuropeanParliamentandtheCouncil,actingbymeansoIregulationsin
accordancewiththeordinarylegislativeprocedure,shalladopttheprovisionsIorthe
proceduresandconditionsrequiredIoracitizensinitiativewithinthemeaningoI
Article11oItheTreatyonEuropeanUnion,includingtheminimumnumberoI
MemberStatesIromwhichsuchcitizensmustcome.
EverycitizenoItheUnionshallhavetherighttopetitiontheEuropeanParliamentin
accordancewithArticle227.
EverycitizenoItheUnionmayapplytotheOmbudsmanestablishedinaccordance
withArticle228.
EverycitizenoItheUnionmaywritetoanyoItheinstitutionsorbodiesreIerredtoin
thisArticleorinArticle13oItheTreatyonEuropeanUnioninoneoIthelanguages
mentionedinArticle55(1)oItheTreatyonEuropeanUnionandhaveananswerin
thesamelanguage.

Article 25

TheCommissionshallreporttotheEuropeanParliament,totheCouncilandtothe
EconomicandSocialCommitteeeverythreeyearsontheapplicationoIthe
provisionsoIthispart.ThisreportshalltakeaccountoIthedevelopmentoItheUnion.
Onthisbasis,andwithoutprejudicetotheotherprovisionsoItheTreaties,the
Council,actingunanimouslyinaccordancewithaspeciallegislativeprocedureand
aIterobtainingtheconsentoItheEuropeanParliament,mayadoptprovisionsto
strengthenortoaddtotherightslistedinArticle20(2).Theseprovisionsshallenter
intoIorceaItertheirapprovalbytheMemberStatesinaccordancewiththeir
respectiveconstitutionalrequirements.
46

PARTTHREE

UNIONPOLICIESANDINTERNALACTIONS

TITLEI

THEINTERNALMARKET

Article 26

1.TheUnionshalladoptmeasureswiththeaimoIestablishingorensuringthe
IunctioningoItheinternalmarket,inaccordancewiththerelevantprovisionsoIthe
Treaties.
2.TheinternalmarketshallcompriseanareawithoutinternalIrontiersinwhichthe
IreemovementoIgoods,persons,servicesandcapitalisensuredinaccordancewith
theprovisionsoItheTreaties.
3.TheCouncil,onaproposalIromtheCommission,shalldeterminetheguidelines
andconditionsnecessarytoensurebalancedprogressinallthesectorsconcerned.

Article 27

Whendrawingupitsproposalswithaviewtoachievingtheobjectivessetoutin
Article26,theCommissionshalltakeintoaccounttheextentoItheeIIortthatcertain
economiesshowingdiIIerencesindevelopmentwillhavetosustainIorthe
establishmentoItheinternalmarketanditmayproposeappropriateprovisions.
IItheseprovisionstaketheIormoIderogations,theymustbeoIatemporarynature
andmustcausetheleastpossibledisturbancetotheIunctioningoItheinternalmarket.

47

TITLEII

FREEMOVEMENTOFGOODS

Article 28

1.TheUnionshallcompriseacustomsunionwhichshallcoveralltradeingoodsand
whichshallinvolvetheprohibitionbetweenMemberStatesoIcustomsdutieson
importsandexportsandoIallchargeshavingequivalenteIIect,andtheadoptionoIa
commoncustomstariIIintheirrelationswiththirdcountries.
2.TheprovisionsoIArticle30andoIChapter2oIthisTitleshallapplytoproducts
originatinginMemberStatesandtoproductscomingIromthirdcountrieswhichare
inIreecirculationinMemberStates.

Article 29

ProductscomingIromathirdcountryshallbeconsideredtobeinIreecirculationina
MemberStateiItheimportIormalitieshavebeencompliedwithandanycustoms
dutiesorchargeshavingequivalenteIIectwhicharepayablehavebeenleviedinthat
MemberState,andiItheyhavenotbeneIitedIromatotalorpartialdrawbackoIsuch
dutiesorcharges.

CHAPTER1

THECUSTOMSUNION

Article 30

CustomsdutiesonimportsandexportsandchargeshavingequivalenteIIectshallbe
prohibitedbetweenMemberStates.Thisprohibitionshallalsoapplytocustomsduties
oIaIiscalnature.
48

Article 31

CommonCustomsTariIIdutiesshallbeIixedbytheCouncilonaproposalIromthe
Commission.

Article 32

IncarryingoutthetasksentrustedtoitunderthischaptertheCommissionshallbe
guidedby:
(a)theneedtopromotetradebetweenMemberStatesandthirdcountries;
(b)developmentsinconditionsoIcompetitionwithintheUnioninsoIarastheylead
toanimprovementinthecompetitivecapacityoIundertakings;
(c)therequirementsoItheUnionasregardsthesupplyoIrawmaterialsandsemi-
Iinishedgoods;inthisconnectiontheCommissionshalltakecaretoavoiddistorting
conditionsoIcompetitionbetweenMemberStatesinrespectoIIinishedgoods;
(d)theneedtoavoidseriousdisturbancesintheeconomiesoIMemberStatesandto
ensurerationaldevelopmentoIproductionandanexpansionoIconsumptionwithin
theUnion.

CHAPTER2

CUSTOMSCOOPERATION

Article 33

WithinthescopeoIapplicationoItheTreaties,theEuropeanParliamentandthe
Council,actinginaccordancewiththeordinarylegislativeprocedure,shalltake
measuresinordertostrengthencustomscooperationbetweenMemberStatesand
betweenthelatterandtheCommission.

CHAPTER3

PROHIBITIONOFQUANTITATIVERESTRICTIONSBETWEENMEMBER
STATES
49

Article 34

QuantitativerestrictionsonimportsandallmeasureshavingequivalenteIIectshallbe
prohibitedbetweenMemberStates.

Article 35

Quantitativerestrictionsonexports,andallmeasureshavingequivalenteIIect,shall
beprohibitedbetweenMemberStates.

Article 36

TheprovisionsoIArticles34and35shallnotprecludeprohibitionsorrestrictionson
imports,exportsorgoodsintransitjustiIiedongroundsoIpublicmorality,public
policyorpublicsecurity;theprotectionoIhealthandliIeoIhumans,animalsor
plants;theprotectionoInationaltreasurespossessingartistic,historicor
archaeologicalvalue;ortheprotectionoIindustrialandcommercialproperty.Such
prohibitionsorrestrictionsshallnot,however,constituteameansoIarbitrary
discriminationoradisguisedrestrictionontradebetweenMemberStates.

Article 37

1.MemberStatesshalladjustanyStatemonopoliesoIacommercialcharactersoasto
ensurethatnodiscriminationregardingtheconditionsunderwhichgoodsare
procuredandmarketedexistsbetweennationalsoIMemberStates.
TheprovisionsoIthisArticleshallapplytoanybodythroughwhichaMemberState,
inlaworinIact,eitherdirectlyorindirectlysupervises,determinesorappreciably
inIluencesimportsorexportsbetweenMemberStates.Theseprovisionsshalllikewise
applytomonopoliesdelegatedbytheStatetoothers.
2.MemberStatesshallreIrainIromintroducinganynewmeasurewhichiscontraryto
theprincipleslaiddowninparagraph1orwhichrestrictsthescopeoIthearticles
dealingwiththeprohibitionoIcustomsdutiesandquantitativerestrictionsbetween
MemberStates.
3.IIaStatemonopolyoIacommercialcharacterhasruleswhicharedesignedto
makeiteasiertodisposeoIagriculturalproductsorobtainIorthemthebestreturn,
stepsshouldbetakeninapplyingtherulescontainedinthisarticletoensure
50

equivalentsaIeguardsIortheemploymentandstandardoIlivingoItheproducers
concerned.

TITLEIII

AGRICULTUREANDFISHERIES

Article 38

1.TheUnionshalldeIineandimplementacommonagricultureandIisheriespolicy.
Theinternalmarketshallextendtoagriculture,Iisheriesandtradeinagricultural
products.AgriculturalproductsmeanstheproductsoIthesoil,oIstockIarmingand
oIIisheriesandproductsoIIirst-stageprocessingdirectlyrelatedtotheseproducts.
ReIerencestothecommonagriculturalpolicyortoagriculture,andtheuseoIthe
termagricultural,shallbeunderstoodasalsoreIerringtoIisheries,havingregardto
thespeciIiccharacteristicsoIthissector.
2.SaveasotherwiseprovidedinArticles39to44,theruleslaiddownIorthe
establishmentandIunctioningoItheinternalmarketshallapplytoagricultural
products.
3.TheproductssubjecttotheprovisionsoIArticles39to44arelistedinAnnexI.
4.TheoperationanddevelopmentoItheinternalmarketIoragriculturalproducts
mustbeaccompaniedbytheestablishmentoIacommonagriculturalpolicy.

Article 39

1.TheobjectivesoIthecommonagriculturalpolicyshallbe:
(a)toincreaseagriculturalproductivitybypromotingtechnicalprogressandby
ensuringtherationaldevelopmentoIagriculturalproductionandtheoptimum
utilisationoItheIactorsoIproduction,inparticularlabour;
(b)thustoensureaIairstandardoIlivingIortheagriculturalcommunity,inparticular
byincreasingtheindividualearningsoIpersonsengagedinagriculture;
(c)tostabilisemarkets;
(d)toassuretheavailabilityoIsupplies;
(e)toensurethatsuppliesreachconsumersatreasonableprices.
51

2.InworkingoutthecommonagriculturalpolicyandthespecialmethodsIorits
application,accountshallbetakenoI:
(a)theparticularnatureoIagriculturalactivity,whichresultsIromthesocialstructure
oIagricultureandIromstructuralandnaturaldisparitiesbetweenthevarious
agriculturalregions;
(b)theneedtoeIIecttheappropriateadjustmentsbydegrees;
(c)theIactthatintheMemberStatesagricultureconstitutesasectorcloselylinked
withtheeconomyasawhole.

Article 40

1.InordertoattaintheobjectivessetoutinArticle39,acommonorganisationoI
agriculturalmarketsshallbeestablished.
ThisorganisationshalltakeoneoItheIollowingIorms,dependingontheproduct
concerned:
(a)commonrulesoncompetition;
(b)compulsorycoordinationoIthevariousnationalmarketorganisations;
(c)aEuropeanmarketorganisation.
2.Thecommonorganisationestablishedinaccordancewithparagraph1mayinclude
allmeasuresrequiredtoattaintheobjectivessetoutinArticle39,inparticular
regulationoIprices,aidsIortheproductionandmarketingoIthevariousproducts,
storageandcarryoverarrangementsandcommonmachineryIorstabilisingimportsor
exports.
ThecommonorganisationshallbelimitedtopursuitoItheobjectivessetoutin
Article39andshallexcludeanydiscriminationbetweenproducersorconsumers
withintheUnion.
AnycommonpricepolicyshallbebasedoncommoncriteriaanduniIormmethodsoI
calculation.
3.InordertoenablethecommonorganisationreIerredtoinparagraph1toattainits
objectives,oneormoreagriculturalguidanceandguaranteeIundsmaybesetup.

Article 41

ToenabletheobjectivessetoutinArticle39tobeattained,provisionmaybemade
withintheIrameworkoIthecommonagriculturalpolicyIormeasuressuchas:
52

(a)aneIIectivecoordinationoIeIIortsinthespheresoIvocationaltraining,oI
researchandoIthedisseminationoIagriculturalknowledge;thismayincludejoint
IinancingoIprojectsorinstitutions;
(b)jointmeasurestopromoteconsumptionoIcertainproducts.

Article 42

TheprovisionsoItheChapterrelatingtorulesoncompetitionshallapplyto
productionoIandtradeinagriculturalproductsonlytotheextentdeterminedbythe
EuropeanParliamentandtheCouncilwithintheIrameworkoIArticle43(2)andin
accordancewiththeprocedurelaiddowntherein,accountbeingtakenoIthe
objectivessetoutinArticle39.
TheCouncil,onaproposalIromtheCommission,mayauthorisethegrantingoIaid:
(a)IortheprotectionoIenterpriseshandicappedbystructuralornaturalconditions;
(b)withintheIrameworkoIeconomicdevelopmentprogrammes.

Article 43

1.TheCommissionshallsubmitproposalsIorworkingoutandimplementingthe
commonagriculturalpolicy,includingthereplacementoIthenationalorganisations
byoneoItheIormsoIcommonorganisationprovidedIorinArticle40(1),andIor
implementingthemeasuresspeciIiedinthistitle.
TheseproposalsshalltakeaccountoItheinterdependenceoItheagriculturalmatters
mentionedinthistitle.
2.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommittee,shall
establishthecommonorganisationoIagriculturalmarketsprovidedIorin
Article40(1)andtheotherprovisionsnecessaryIorthepursuitoItheobjectivesoIthe
commonagriculturalpolicyandthecommonIisheriespolicy.
3.TheCouncil,onaproposalIromtheCommission,shalladoptmeasuresonIixing
prices,levies,aidandquantitativelimitationsandontheIixingandallocationoI
Iishingopportunities.
4.Inaccordancewithparagraph2,thenationalmarketorganisationsmaybereplaced
bythecommonorganisationprovidedIorinArticle40(1)iI:
(a)thecommonorganisationoIIersMemberStateswhichareopposedtothismeasure
andwhichhaveanorganisationoItheirownIortheproductioninquestionequivalent
saIeguardsIortheemploymentandstandardoIlivingoItheproducersconcerned,
53

accountbeingtakenoItheadjustmentsthatwillbepossibleandthespecialisationthat
willbeneededwiththepassageoItime;
(b)suchanorganisationensuresconditionsIortradewithintheUnionsimilartothose
existinginanationalmarket.
5.IIacommonorganisationIorcertainrawmaterialsisestablishedbeIoreacommon
organisationexistsIorthecorrespondingprocessedproducts,suchrawmaterialsas
areusedIorprocessedproductsintendedIorexporttothirdcountriesmaybe
importedIromoutsidetheUnion.

Article 44

WhereinaMemberStateaproductissubjecttoanationalmarketorganisationorto
internalruleshavingequivalenteIIectwhichaIIectthecompetitivepositionoIsimilar
productioninanotherMemberState,acountervailingchargeshallbeappliedby
MemberStatestoimportsoIthisproductcomingIromtheMemberStatewheresuch
organisationorrulesexist,unlessthatStateappliesacountervailingchargeonexport.
TheCommissionshallIixtheamountoIthesechargesatthelevelrequiredtoredress
thebalance;itmayalsoauthoriseothermeasures,theconditionsanddetailsoIwhich
itshalldetermine.

TITLEIV

FREEMOVEMENTOFPERSONS,SERVICESANDCAPITAL

CHAPTER 1

WORKERS

Article 45

1.FreedomoImovementIorworkersshallbesecuredwithintheUnion.
2.SuchIreedomoImovementshallentailtheabolitionoIanydiscriminationbasedon
nationalitybetweenworkersoItheMemberStatesasregardsemployment,
remunerationandotherconditionsoIworkandemployment.
54

3.Itshallentailtheright,subjecttolimitationsjustiIiedongroundsoIpublicpolicy,
publicsecurityorpublichealth:
(a)toacceptoIIersoIemploymentactuallymade;
(b)tomoveIreelywithintheterritoryoIMemberStatesIorthispurpose;
(c)tostayinaMemberStateIorthepurposeoIemploymentinaccordancewiththe
provisionsgoverningtheemploymentoInationalsoIthatStatelaiddownbylaw,
regulationoradministrativeaction;
(d)toremainintheterritoryoIaMemberStateaIterhavingbeenemployedinthat
State,subjecttoconditionswhichshallbeembodiedinregulationstobedrawnupby
theCommission.
4.TheprovisionsoIthisarticleshallnotapplytoemploymentinthepublicservice.

Article 46

TheEuropeanParliamentandtheCouncilshall,actinginaccordancewiththe
ordinarylegislativeprocedureandaIterconsultingtheEconomicandSocial
Committee,issuedirectivesormakeregulationssettingoutthemeasuresrequiredto
bringaboutIreedomoImovementIorworkers,asdeIinedinArticle45,inparticular:
(a)byensuringclosecooperationbetweennationalemploymentservices;
(b)byabolishingthoseadministrativeproceduresandpracticesandthosequaliIying
periodsinrespectoIeligibilityIoravailableemployment,whetherresultingIrom
nationallegislationorIromagreementspreviouslyconcludedbetweenMember
States,themaintenanceoIwhichwouldIormanobstacletoliberalisationoIthe
movementoIworkers;
(c)byabolishingallsuchqualiIyingperiodsandotherrestrictionsprovidedIoreither
undernationallegislationorunderagreementspreviouslyconcludedbetween
MemberStatesasimposedonworkersoIotherMemberStatesconditionsregarding
theIreechoiceoIemploymentotherthanthoseimposedonworkersoItheState
concerned;
(d)bysettingupappropriatemachinerytobringoIIersoIemploymentintotouchwith
applicationsIoremploymentandtoIacilitatetheachievementoIabalancebetween
supplyanddemandintheemploymentmarketinsuchawayastoavoidserious
threatstothestandardoIlivingandleveloIemploymentinthevariousregionsand
industries.

55

Article 47

MemberStatesshall,withintheIrameworkoIajointprogramme,encouragethe
exchangeoIyoungworkers.

Article 48

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shalladoptsuchmeasuresintheIieldoIsocialsecurityasare
necessarytoprovideIreedomoImovementIorworkers;tothisend,itshallmake
arrangementstosecureIoremployedandselI-employedmigrantworkersandtheir
dependants:
(a)aggregation,IorthepurposeoIacquiringandretainingtherighttobeneIitandoI
calculatingtheamountoIbeneIit,oIallperiodstakenintoaccountunderthelawsoI
theseveralcountries;
(b)paymentoIbeneIitstopersonsresidentintheterritoriesoIMemberStates.
WhereamemberoItheCouncildeclaresthatadraItlegislativeactreIerredtointhe
IirstsubparagraphwouldaIIectimportantaspectsoIitssocialsecuritysystem,
includingitsscope,costorIinancialstructure,orwouldaIIecttheIinancialbalanceoI
thatsystem,itmayrequestthatthematterbereIerredtotheEuropeanCouncil.Inthat
case,theordinarylegislativeprocedureshallbesuspended.AIterdiscussion,the
EuropeanCouncilshall,withinIourmonthsoIthissuspension,either:

(a)reIerthedraItbacktotheCouncil,whichshallterminatethesuspensionoIthe
ordinarylegislativeprocedure,or
(b)takenoactionorrequesttheCommissiontosubmitanewproposal;inthatcase,
theactoriginallyproposedshallbedeemednottohavebeenadopted.

CHAPTER2

RIGHTOFESTABLISHMENT

Article 49

WithintheIrameworkoItheprovisionssetoutbelow,restrictionsontheIreedomoI
establishmentoInationalsoIaMemberStateintheterritoryoIanotherMemberState
shallbeprohibited.Suchprohibitionshallalsoapplytorestrictionsonthesetting-up
56

oIagencies,branchesorsubsidiariesbynationalsoIanyMemberStateestablishedin
theterritoryoIanyMemberState.
FreedomoIestablishmentshallincludetherighttotakeupandpursueactivitiesas
selI-employedpersonsandtosetupandmanageundertakings,inparticular
companiesorIirmswithinthemeaningoIthesecondparagraphoIArticle54,under
theconditionslaiddownIoritsownnationalsbythelawoIthecountrywheresuch
establishmentiseIIected,subjecttotheprovisionsoItheChapterrelatingtocapital.

Article 50

1.InordertoattainIreedomoIestablishmentasregardsaparticularactivity,the
EuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommittee,shall
actbymeansoIdirectives.
2.TheEuropeanParliament,theCouncilandtheCommissionshallcarryoutthe
dutiesdevolvinguponthemundertheprecedingprovisions,inparticular:
(a)byaccording,asageneralrule,prioritytreatmenttoactivitieswhereIreedomoI
establishmentmakesaparticularlyvaluablecontributiontothedevelopmentoI
productionandtrade;
(b)byensuringclosecooperationbetweenthecompetentauthoritiesintheMember
StatesinordertoascertaintheparticularsituationwithintheUnionoIthevarious
activitiesconcerned;
(c)byabolishingthoseadministrativeproceduresandpractices,whetherresulting
IromnationallegislationorIromagreementspreviouslyconcludedbetweenMember
States,themaintenanceoIwhichwouldIormanobstacletoIreedomoIestablishment;
(d)byensuringthatworkersoIoneMemberStateemployedintheterritoryoIanother
MemberStatemayremaininthatterritoryIorthepurposeoItakingupactivities
thereinasselI-employedpersons,wheretheysatisIytheconditionswhichtheywould
berequiredtosatisIyiItheywereenteringthatStateatthetimewhentheyintendedto
takeupsuchactivities;
(e)byenablinganationaloIoneMemberStatetoacquireanduselandandbuildings
situatedintheterritoryoIanotherMemberState,insoIarasthisdoesnotconIlict
withtheprincipleslaiddowninArticle39(2);
(I)byeIIectingtheprogressiveabolitionoIrestrictionsonIreedomoIestablishment
ineverybranchoIactivityunderconsideration,bothasregardstheconditionsIor
settingupagencies,branchesorsubsidiariesintheterritoryoIaMemberStateandas
regardsthesubsidiariesintheterritoryoIaMemberStateandasregardsthe
conditionsgoverningtheentryoIpersonnelbelongingtothemainestablishmentinto
managerialorsupervisorypostsinsuchagencies,branchesorsubsidiaries;
(g)bycoordinatingtothenecessaryextentthesaIeguardswhich,IortheprotectionoI
theinterestsoImembersandother,arerequiredbyMemberStatesoIcompaniesor
57

IirmswithinthemeaningoIthesecondparagraphoIArticle54withaviewtomaking
suchsaIeguardsequivalentthroughouttheUnion;
(h)bysatisIyingthemselvesthattheconditionsoIestablishmentarenotdistortedby
aidsgrantedbyMemberStates.

Article 51

TheprovisionsoIthisChaptershallnotapply,soIarasanygivenMemberStateis
concerned,toactivitieswhichinthatStateareconnected,evenoccasionally,withthe
exerciseoIoIIicialauthority.
TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,mayrulethattheprovisionsoIthisChaptershallnotapplyto
certainactivities.
Article 52

1.TheprovisionsoIthisChapterandmeasurestakeninpursuancethereoIshallnot
prejudicetheapplicabilityoIprovisionslaiddownbylaw,regulationor
administrativeactionprovidingIorspecialtreatmentIorIoreignnationalsongrounds
oIpublicpolicy,publicsecurityorpublichealth.
2.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shallissuedirectivesIorthecoordinationoIthe
abovementionedprovisions.

Article 53

1.InordertomakeiteasierIorpersonstotakeupandpursueactivitiesasselI-
employedpersons,theEuropeanParliamentandtheCouncil,actinginaccordance
withtheordinarylegislativeprocedure,shallissuedirectivesIorthemutual
recognitionoIdiplomas,certiIicatesandotherevidenceoIIormalqualiIicationsand
IorthecoordinationoItheprovisionslaiddownbylaw,regulationoradministrative
actioninMemberStatesconcerningthetaking-upandpursuitoIactivitiesasselI-
employedpersons.
2.InthecaseoIthemedicalandalliedandpharmaceuticalproIessions,the
progressiveabolitionoIrestrictionsshallbedependentuponcoordinationoIthe
conditionsIortheirexerciseinthevariousMemberStates.

58

Article 54

CompaniesorIirmsIormedinaccordancewiththelawoIaMemberStateandhaving
theirregisteredoIIice,centraladministrationorprincipalplaceoIbusinesswithinthe
Unionshall,IorthepurposesoIthisChapter,betreatedinthesamewayasnatural
personswhoarenationalsoIMemberStates.
CompaniesorIirmsmeanscompaniesorIirmsconstitutedundercivilor
commerciallaw,includingcooperativesocieties,andotherlegalpersonsgovernedby
publicorprivatelaw,saveIorthosewhicharenon-proIit-making.

Article 55

MemberStatesshallaccordnationalsoItheotherMemberStatesthesametreatment
astheirownnationalsasregardsparticipationinthecapitaloIcompaniesorIirms
withinthemeaningoIArticle54,withoutprejudicetotheapplicationoItheother
provisionsoItheTreaties.

CHAPTER 3

SERVICES

Article 56

WithintheIrameworkoItheprovisionssetoutbelow,restrictionsonIreedomto
provideserviceswithintheUnionshallbeprohibitedinrespectoInationalsoI
MemberStateswhoareestablishedinaMemberStateotherthanthatoItheperson
Iorwhomtheservicesareintended.
TheEuropeanParliamentandtheCouncil,actingintheaccordancewiththeordinary
legislativeprocedure,mayextendtheprovisionsoItheChaptertonationalsoIathird
countrywhoprovideservicesandwhoareestablishedwithintheUnion.

Article 57

ServicesshallbeconsideredtobeserviceswithinthemeaningoItheTreatieswhere
theyarenormallyprovidedIorremuneration,insoIarastheyarenotgovernedbythe
provisionsrelatingtoIreedomoImovementIorgoods,capitalandpersons.
59

Servicesshallinparticularinclude:
(a)activitiesoIanindustrialcharacter;
(b)activitiesoIacommercialcharacter;
(c)activitiesoIcraItsmen;
(d)activitiesoItheproIessions.
WithoutprejudicetotheprovisionsoItheChapterrelatingtotherightoI
establishment,thepersonprovidingaservicemay,inordertodoso,temporarily
pursuehisactivityintheMemberStatewheretheserviceisprovided,underthesame
conditionsasareimposedbythatStateonitsownnationals.

Article 58

1.FreedomtoprovideservicesintheIieldoItransportshallbegovernedbythe
provisionsoIthetitlerelatingtotransport.
2.TheliberalisationoIbankingandinsuranceservicesconnectedwithmovementsoI
capitalshallbeeIIectedinstepwiththeliberalisationoImovementoIcapital.

Article 59

1.InordertoachievetheliberalisationoIaspeciIicservice,theEuropeanParliament
andtheCouncil,actinginaccordancewiththeordinarylegislativeprocedureandaIter
consultingtheEconomicandSocialCommittee,shallissuedirectives.
2.AsregardsthedirectivesreIerredtoinparagraph1,priorityshallasageneralrule
begiventothoseserviceswhichdirectlyaIIectproductioncostsortheliberalisation
oIwhichhelpstopromotetradeingoods.

Article 60

TheMemberStatesshallendeavourtoundertaketheliberalisationoIservicesbeyond
theextentrequiredbythedirectivesissuedpursuanttoArticle59(1),iItheirgeneral
economicsituationandthesituationoItheeconomicsectorconcernedsopermit.
Tothisend,theCommissionshallmakerecommendationstotheMemberStates
concerned.

60

Article 61

AslongasrestrictionsonIreedomtoprovideserviceshavenotbeenabolished,each
MemberStateshallapplysuchrestrictionswithoutdistinctionongroundsoI
nationalityorresidencetoallpersonsprovidingserviceswithinthemeaningoIthe
IirstparagraphoIArticle56.

Article 62

TheprovisionsoIArticles51to54shallapplytothematterscoveredbythisChapter.

CHAPTER4

CAPITALANDPAYMENTS

Article 63

1.WithintheIrameworkoItheprovisionssetoutinthisChapter,allrestrictionson
themovementoIcapitalbetweenMemberStatesandbetweenMemberStatesand
thirdcountriesshallbeprohibited.
2.WithintheIrameworkoItheprovisionssetoutinthisChapter,allrestrictionson
paymentsbetweenMemberStatesandbetweenMemberStatesandthirdcountries
shallbeprohibited.

Article 64

1.TheprovisionsoIArticle63shallbewithoutprejudicetotheapplicationtothird
countriesoIanyrestrictionswhichexiston31December1993undernationalor
UnionlawadoptedinrespectoIthemovementoIcapitaltoorIromthirdcountries
involvingdirectinvestmentincludinginrealestateestablishment,theprovision
oIIinancialservicesortheadmissionoIsecuritiestocapitalmarkets.InrespectoI
restrictionsexistingundernationallawinBulgaria,EstoniaandHungary,therelevant
dateshallbe31December1999.
2.WhilstendeavouringtoachievetheobjectiveoIIreemovementoIcapitalbetween
MemberStatesandthirdcountriestothegreatestextentpossibleandwithout
prejudicetotheotherChaptersoItheTreaties,theEuropeanParliamentandthe
61

Council,actinginaccordancewiththeordinarylegislativeprocedure,shalladoptthe
measuresonthemovementoIcapitaltoorIromthirdcountriesinvolvingdirect
investmentincludinginvestmentinrealestateestablishment,theprovisionoI
IinancialservicesortheadmissionoIsecuritiestocapitalmarkets.
3.Notwithstandingparagraph2,onlytheCouncil,actinginaccordancewithaspecial
legislativeprocedure,mayunanimously,andaIterconsultingtheEuropean
Parliament,adoptmeasureswhichconstituteastepbackwardsinUnionlawas
regardstheliberalisationoIthemovementoIcapitaltoorIromthirdcountries.

Article 65

1.TheprovisionsoIArticle63shallbewithoutprejudicetotherightoIMember
States:
(a)toapplytherelevantprovisionsoItheirtaxlawwhichdistinguishbetween
taxpayerswhoarenotinthesamesituationwithregardtotheirplaceoIresidenceor
withregardtotheplacewheretheircapitalisinvested;
(b)totakeallrequisitemeasurestopreventinIringementsoInationallawand
regulations,inparticularintheIieldoItaxationandtheprudentialsupervisionoI
Iinancialinstitutions,ortolaydownproceduresIorthedeclarationoIcapital
movementsIorpurposesoIadministrativeorstatisticalinIormation,ortotake
measureswhicharejustiIiedongroundsoIpublicpolicyorpublicsecurity.
2.TheprovisionsoIthisChaptershallbewithoutprejudicetotheapplicabilityoI
restrictionsontherightoIestablishmentwhicharecompatiblewiththeTreaties.
3.ThemeasuresandproceduresreIerredtoinparagraphs1and2shallnotconstitute
ameansoIarbitrarydiscriminationoradisguisedrestrictionontheIreemovementoI
capitalandpaymentsasdeIinedinArticle63.
4.IntheabsenceoImeasurespursuanttoArticle64(3),theCommissionor,inthe
absenceoIaCommissiondecisionwithinthreemonthsIromtherequestoIthe
MemberStateconcerned,theCouncil,mayadoptadecisionstatingthatrestrictivetax
measuresadoptedbyaMemberStateconcerningoneormorethirdcountriesaretobe
consideredcompatiblewiththeTreatiesinsoIarastheyarejustiIiedbyoneoIthe
objectivesoItheUnionandcompatiblewiththeproperIunctioningoItheinternal
market.TheCouncilshallactunanimouslyonapplicationbyaMemberState.

Article 66

Where,inexceptionalcircumstances,movementsoIcapitaltoorIromthirdcountries
cause,orthreatentocause,seriousdiIIicultiesIortheoperationoIeconomicand
monetaryunion,theCouncil,onaproposalIromtheCommissionandaIterconsulting
theEuropeanCentralBank,maytakesaIeguardmeasureswithregardtothird
62

countriesIoraperiodnotexceedingsixmonthsiIsuchmeasuresarestrictly
necessary.

TITLEV

AREAOFFREEDOM,SECURITYANDJUSTICE

CHAPTER1

GENERALPROVISIONS

Article 67

1.TheUnionshallconstituteanareaoIIreedom,securityandjusticewithrespectIor
IundamentalrightsandthediIIerentlegalsystemsandtraditionsoItheMember
States.

2.ItshallensuretheabsenceoIinternalbordercontrolsIorpersonsandshallIramea
commonpolicyonasylum,immigrationandexternalbordercontrol,basedon
solidaritybetweenMemberStates,whichisIairtowardsthird-countrynationals.For
thepurposeoIthisTitle,statelesspersonsshallbetreatedasthird-countrynationals.

3.TheUnionshallendeavourtoensureahighleveloIsecuritythroughmeasuresto
preventandcombatcrime,racismandxenophobia,andthroughmeasuresIor
coordinationandcooperationbetweenpoliceandjudicialauthoritiesandother
competentauthorities,aswellasthroughthemutualrecognitionoIjudgmentsin
criminalmattersand,iInecessary,throughtheapproximationoIcriminallaws.

4.TheUnionshallIacilitateaccesstojustice,inparticularthroughtheprincipleoI
mutualrecognitionoIjudicialandextrajudicialdecisionsincivilmatters.

Article 68

TheEuropeanCouncilshalldeIinethestrategicguidelinesIorlegislativeand
operationalplanningwithintheareaoIIreedom,securityandjustice.

Article 69

63

NationalParliamentsensurethattheproposalsandlegislativeinitiativessubmitted
underChapters4and5complywiththeprincipleoIsubsidiarity,inaccordancewith
thearrangementslaiddownbytheProtocolontheapplicationoItheprinciplesoI
subsidiarityandproportionality.

Article 70

WithoutprejudicetoArticles258,259and260,theCouncilmay,onaproposalIrom
theCommission,adoptmeasureslayingdownthearrangementswherebyMember
States,incollaborationwiththeCommission,conductobjectiveandimpartial
evaluationoItheimplementationoItheUnionpoliciesreIerredtointhisTitleby
MemberStatesauthorities,inparticularinordertoIacilitateIullapplicationoIthe
principleoImutualrecognition.TheEuropeanParliamentandnationalParliaments
shallbeinIormedoIthecontentandresultsoItheevaluation.

Article 71

AstandingcommitteeshallbesetupwithintheCouncilinordertoensurethat
operationalcooperationoninternalsecurityispromotedandstrengthenedwithinthe
Union.WithoutprejudicetoArticle240,itshallIacilitatecoordinationoItheaction
oIMemberStatescompetentauthorities.RepresentativesoIthebodies,oIIicesand
agenciesoItheUnionconcernedmaybeinvolvedintheproceedingsoIthis
committee.TheEuropeanParliamentandnationalParliamentsshallbekeptinIormed
oItheproceedings.

Article 72

ThisTitleshallnotaIIecttheexerciseoItheresponsibilitiesincumbentuponMember
StateswithregardtothemaintenanceoIlawandorderandthesaIeguardingoI
internalsecurity.

Article 73

ItshallbeopentoMemberStatestoorganisebetweenthemselvesandundertheir
responsibilitysuchIormsoIcooperationandcoordinationastheydeemappropriate
betweenthecompetentdepartmentsoItheiradministrationsresponsibleIor
saIeguardingnationalsecurity.

Article 74

64

TheCouncilshalladoptmeasurestoensureadministrativecooperationbetweenthe
relevantdepartmentsoItheMemberStatesintheareascoveredbythisTitle,aswell
asbetweenthosedepartmentsandtheCommission.ItshallactonaCommission
proposal,subjecttoArticle76,andaIterconsultingtheEuropeanParliament.

Article 75

WherenecessarytoachievetheobjectivessetoutinArticle67,asregardspreventing
andcombatingterrorismandrelatedactivities,theEuropeanParliamentandthe
Council,actingbymeansoIregulationsinaccordancewiththeordinarylegislative
procedure,shalldeIineaIrameworkIoradministrativemeasureswithregardtocapital
movementsandpayments,suchastheIreezingoIIunds,Iinancialassetsoreconomic
gainsbelongingto,orownedorheldby,naturalorlegalpersons,groupsornon-State
entities.

TheCouncil,onaproposalIromtheCommission,shalladoptmeasurestoimplement
theIrameworkreIerredtointheIirstparagraph.

TheactsreIerredtointhisArticleshallincludenecessaryprovisionsonlegal
saIeguards.

Article 76

TheactsreIerredtoinChapters4and5,togetherwiththemeasuresreIerredtoin
Article74whichensureadministrativecooperationintheareascoveredbythese
Sections,shallbeadopted:

(a)onaproposalIromtheCommission,or

(b)ontheinitiativeoIaquarteroItheMemberStates.

CHAPTER2

POLICIESONBORDERCHECKS,ASYLUMANDIMMIGRATION

Article 77

1.TheUnionshalldevelopapolicywithaviewto:

(a)ensuringtheabsenceoIanycontrolsonpersons,whatevertheirnationality,when
crossinginternalborders;
65

(b)carryingoutchecksonpersonsandeIIicientmonitoringoIthecrossingoIexternal
borders;

(c)thegradualintroductionoIanintegratedmanagementsystemIorexternalborders.

2.ForthepurposesoIparagraph1,theEuropeanParliamentandtheCouncil,acting
inaccordancewiththeordinarylegislativeprocedure,shalladoptmeasures
concerning:

(a)thecommonpolicyonvisasandothershort-stayresidencepermits;

(b)thecheckstowhichpersonscrossingexternalbordersaresubject;

(c)theconditionsunderwhichnationalsoIthirdcountriesshallhavetheIreedomto
travelwithintheUnionIorashortperiod;

(d)anymeasurenecessaryIorthegradualestablishmentoIanintegratedmanagement
systemIorexternalborders;

(e)theabsenceoIanycontrolsonpersons,whatevertheirnationality,whencrossing
internalborders.

3.IIactionbytheUnionshouldprovenecessarytoIacilitatetheexerciseoItheright
reIerredtoinArticle20(2)(a),andiItheTreatieshavenotprovidedthenecessary
powers,theCouncil,actinginaccordancewithaspeciallegislativeprocedure,may
adoptprovisionsconcerningpassports,identitycards,residencepermitsoranyother
suchdocument.TheCouncilshallactunanimouslyaIterconsultingtheEuropean
Parliament.

4.ThisArticleshallnotaIIectthecompetenceoItheMemberStatesconcerningthe
geographicaldemarcationoItheirborders,inaccordancewithinternationallaw.

Article 78

1.TheUnionshalldevelopacommonpolicyonasylum,subsidiaryprotectionand
temporaryprotectionwithaviewtooIIeringappropriatestatustoanythird-country
nationalrequiringinternationalprotectionandensuringcompliancewiththeprinciple
oInon-refoulement.ThispolicymustbeinaccordancewiththeGenevaConvention
oI28July1951andtheProtocoloI31January1967relatingtothestatusoIreIugees,
andotherrelevanttreaties.

2.ForthepurposesoIparagraph1,theEuropeanParliamentandtheCouncil,acting
inaccordancewiththeordinarylegislativeprocedure,shalladoptmeasuresIora
commonEuropeanasylumsystemcomprising:

66

(a)auniIormstatusoIasylumIornationalsoIthirdcountries,validthroughoutthe
Union;

(b)auniIormstatusoIsubsidiaryprotectionIornationalsoIthirdcountrieswho,
withoutobtainingEuropeanasylum,areinneedoIinternationalprotection;

(c)acommonsystemoItemporaryprotectionIordisplacedpersonsintheeventoIa
massiveinIlow;

(d)commonproceduresIorthegrantingandwithdrawingoIuniIormasylumor
subsidiaryprotectionstatus;

(e)criteriaandmechanismsIordeterminingwhichMemberStateisresponsibleIor
consideringanapplicationIorasylumorsubsidiaryprotection;

(I)standardsconcerningtheconditionsIorthereceptionoIapplicantsIorasylumor
subsidiaryprotection;

(g)partnershipandcooperationwiththirdcountriesIorthepurposeoImanaging
inIlowsoIpeopleapplyingIorasylumorsubsidiaryortemporaryprotection.

3.IntheeventoIoneormoreMemberStatesbeingconIrontedwithanemergency
situationcharacterisedbyasuddeninIlowoInationalsoIthirdcountries,theCouncil,
onaproposalIromtheCommission,mayadoptprovisionalmeasuresIorthebeneIit
oItheMemberState(s)concerned.ItshallactaIterconsultingtheEuropean
Parliament.

Article 79

1.TheUnionshalldevelopacommonimmigrationpolicyaimedatensuring,atall
stages,theeIIicientmanagementoImigrationIlows,IairtreatmentoIthird-country
nationalsresidinglegallyinMemberStates,andthepreventionoI,andenhanced
measurestocombat,illegalimmigrationandtraIIickinginhumanbeings.

2.ForthepurposesoIparagraph1,theEuropeanParliamentandtheCouncil,acting
inaccordancewiththeordinarylegislativeprocedure,shalladoptmeasuresinthe
Iollowingareas:

(a)theconditionsoIentryandresidence,andstandardsontheissuebyMemberStates
oIlong-termvisasandresidencepermits,includingthoseIorthepurposeoIIamily
reuniIication;

(b)thedeIinitionoItherightsoIthird-countrynationalsresidinglegallyinaMember
State,includingtheconditionsgoverningIreedomoImovementandoIresidencein
otherMemberStates;

67

(c)illegalimmigrationandunauthorisedresidence,includingremovalandrepatriation
oIpersonsresidingwithoutauthorisation;

(d)combatingtraIIickinginpersons,inparticularwomenandchildren.

3.TheUnionmayconcludeagreementswiththirdcountriesIorthereadmissionto
theircountriesoIoriginorprovenanceoIthird-countrynationalswhodonotorwho
nolongerIulIiltheconditionsIorentry,presenceorresidenceintheterritoryoIone
oItheMemberStates.

4.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,mayestablishmeasurestoprovideincentivesandsupportIor
theactionoIMemberStateswithaviewtopromotingtheintegrationoIthird-country
nationalsresidinglegallyintheirterritories,excludinganyharmonisationoIthelaws
andregulationsoItheMemberStates.

5.ThisArticleshallnotaIIecttherightoIMemberStatestodeterminevolumesoI
admissionoIthird-countrynationalscomingIromthirdcountriestotheirterritoryin
ordertoseekwork,whetheremployedorselI-employed.

Article 80

ThepoliciesoItheUnionsetoutinthisChapterandtheirimplementationshallbe
governedbytheprincipleoIsolidarityandIairsharingoIresponsibility,includingits
Iinancialimplications,betweentheMemberStates.Whenevernecessary,theactsoI
theUnionadoptedpursuanttothisChaptershallcontainappropriatemeasurestogive
eIIecttothisprinciple.

CHAPTER3

JUDICIALCOOPERATIONINCIVILMATTERS

Article 81

1.TheUnionshalldevelopjudicialcooperationincivilmattershavingcross-border
implications,basedontheprincipleoImutualrecognitionoIjudgmentsandoI
decisionsinextrajudicialcases.SuchcooperationmayincludetheadoptionoI
measuresIortheapproximationoIthelawsandregulationsoItheMemberStates.

2.ForthepurposesoIparagraph1,theEuropeanParliamentandtheCouncil,acting
inaccordancewiththeordinarylegislativeprocedure,shalladoptmeasures,
particularlywhennecessaryIortheproperIunctioningoItheinternalmarket,aimedat
ensuring:
68

(a)themutualrecognitionandenIorcementbetweenMemberStatesoIjudgmentsand
oIdecisionsinextrajudicialcases;

(b)thecross-borderserviceoIjudicialandextrajudicialdocuments;

(c)thecompatibilityoItherulesapplicableintheMemberStatesconcerningconIlict
oIlawsandoIjurisdiction;

(d)cooperationinthetakingoIevidence;

(e)eIIectiveaccesstojustice;

(I)theeliminationoIobstaclestotheproperIunctioningoIcivilproceedings,iI
necessarybypromotingthecompatibilityoItherulesoncivilprocedureapplicablein
theMemberStates;

(g)thedevelopmentoIalternativemethodsoIdisputesettlement;

(h)supportIorthetrainingoIthejudiciaryandjudicialstaII.

3.Notwithstandingparagraph2,measuresconcerningIamilylawwithcross-border
implicationsshallbeestablishedbytheCouncil,actinginaccordancewithaspecial
legislativeprocedure.TheCouncilshallactunanimouslyaIterconsultingthe
EuropeanParliament.

TheCouncil,onaproposalIromtheCommission,mayadoptadecisiondetermining
thoseaspectsoIIamilylawwithcross-borderimplicationswhichmaybethesubject
oIactsadoptedbytheordinarylegislativeprocedure.TheCouncilshallact
unanimouslyaIterconsultingtheEuropeanParliament.

TheproposalreIerredtointhesecondsubparagraphshallbenotiIiedtothenational
Parliaments.IIanationalParliamentmakesknownitsoppositionwithinsixmonthsoI
thedateoIsuchnotiIication,thedecisionshallnotbeadopted.IntheabsenceoI
opposition,theCouncilmayadoptthedecision.

CHAPTER4

JUDICIALCOOPERATIONINCRIMINALMATTERS

Article 82

1.JudicialcooperationincriminalmattersintheUnionshallbebasedontheprinciple
oImutualrecognitionoIjudgmentsandjudicialdecisionsandshallincludethe
69

approximationoIthelawsandregulationsoItheMemberStatesintheareasreIerred
toinparagraph2andinArticle83.

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shalladoptmeasuresto:

(a)laydownrulesandproceduresIorensuringrecognitionthroughouttheUnionoI
allIormsoIjudgmentsandjudicialdecisions;

(b)preventandsettleconIlictsoIjurisdictionbetweenMemberStates;

(c)supportthetrainingoIthejudiciaryandjudicialstaII;

(d)IacilitatecooperationbetweenjudicialorequivalentauthoritiesoItheMember
StatesinrelationtoproceedingsincriminalmattersandtheenIorcementoIdecisions.

2.TotheextentnecessarytoIacilitatemutualrecognitionoIjudgmentsandjudicial
decisionsandpoliceandjudicialcooperationincriminalmattershavingacross-
borderdimension,theEuropeanParliamentandtheCouncilmay,bymeansoI
directivesadoptedinaccordancewiththeordinarylegislativeprocedure,establish
minimumrules.SuchrulesshalltakeintoaccountthediIIerencesbetweenthelegal
traditionsandsystemsoItheMemberStates.

Theyshallconcern:

(a)mutualadmissibilityoIevidencebetweenMemberStates;

(b)therightsoIindividualsincriminalprocedure;

(c)therightsoIvictimsoIcrime;

(d)anyotherspeciIicaspectsoIcriminalprocedurewhichtheCouncilhasidentiIied
inadvancebyadecision;IortheadoptionoIsuchadecision,theCouncilshallact
unanimouslyaIterobtainingtheconsentoItheEuropeanParliament.

AdoptionoItheminimumrulesreIerredtointhisparagraphshallnotprevent
MemberStatesIrommaintainingorintroducingahigherleveloIprotectionIor
individuals.

3.WhereamemberoItheCouncilconsidersthatadraItdirectiveasreIerredtoin
paragraph2wouldaIIectIundamentalaspectsoIitscriminaljusticesystem,itmay
requestthatthedraItdirectivebereIerredtotheEuropeanCouncil.Inthatcase,the
ordinarylegislativeprocedureshallbesuspended.AIterdiscussion,andincaseoIa
consensus,theEuropeanCouncilshall,withinIourmonthsoIthissuspension,reIer
thedraItbacktotheCouncil,whichshallterminatethesuspensionoItheordinary
legislativeprocedure.

WithinthesametimeIrame,incaseoIdisagreement,andiIatleastnineMember
StateswishtoestablishenhancedcooperationonthebasisoIthedraItdirective
concerned,theyshallnotiIytheEuropeanParliament,theCouncilandthe
70

Commissionaccordingly.Insuchacase,theauthorisationtoproceedwithenhanced
cooperationreIerredtoinArticle20(2)oItheTreatyonEuropeanUnionandArticle
329(1)oIthisTreatyshallbedeemedtobegrantedandtheprovisionsonenhanced
cooperationshallapply.

Article 83

1.TheEuropeanParliamentandtheCouncilmay,bymeansoIdirectivesadoptedin
accordancewiththeordinarylegislativeprocedure,establishminimumrules
concerningthedeIinitionoIcriminaloIIencesandsanctionsintheareasoI
particularlyseriouscrimewithacross-borderdimensionresultingIromthenatureor
impactoIsuchoIIencesorIromaspecialneedtocombatthemonacommonbasis.

TheseareasoIcrimearetheIollowing:terrorism,traIIickinginhumanbeingsand
sexualexploitationoIwomenandchildren,illicitdrugtraIIicking,illicitarms
traIIicking,moneylaundering,corruption,counterIeitingoImeansoIpayment,
computercrimeandorganisedcrime.

OnthebasisoIdevelopmentsincrime,theCouncilmayadoptadecisionidentiIying
otherareasoIcrimethatmeetthecriteriaspeciIiedinthisparagraph.Itshallact
unanimouslyaIterobtainingtheconsentoItheEuropeanParliament.

2.IItheapproximationoIcriminallawsandregulationsoItheMemberStatesproves
essentialtoensuretheeIIectiveimplementationoIaUnionpolicyinanareawhich
hasbeensubjecttoharmonisationmeasures,directivesmayestablishminimumrules
withregardtothedeIinitionoIcriminaloIIencesandsanctionsintheareaconcerned.
Suchdirectivesshallbeadoptedbythesameordinaryorspeciallegislativeprocedure
aswasIollowedIortheadoptionoItheharmonisationmeasuresinquestion,without
prejudicetoArticle76.

3.WhereamemberoItheCouncilconsidersthatadraItdirectiveasreIerredtoin
paragraph1or2wouldaIIectIundamentalaspectsoIitscriminaljusticesystem,it
mayrequestthatthedraItdirectivebereIerredtotheEuropeanCouncil.Inthatcase,
theordinarylegislativeprocedureshallbesuspended.AIterdiscussion,andincaseoI
aconsensus,theEuropeanCouncilshall,withinIourmonthsoIthissuspension,reIer
thedraItbacktotheCouncil,whichshallterminatethesuspensionoItheordinary
legislativeprocedure.

WithinthesametimeIrame,incaseoIdisagreement,andiIatleastnineMember
StateswishtoestablishenhancedcooperationonthebasisoIthedraItdirective
concerned,theyshallnotiIytheEuropeanParliament,theCouncilandthe
Commissionaccordingly.Insuchacase,theauthorisationtoproceedwithenhanced
cooperationreIerredtoinArticle20(2)oItheTreatyonEuropeanUnionandArticle
329(1)oIthisTreatyshallbedeemedtobegrantedandtheprovisionsonenhanced
cooperationshallapply.

71

Article 84

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,mayestablishmeasurestopromoteandsupporttheactionoI
MemberStatesintheIieldoIcrimeprevention,excludinganyharmonisationoIthe
lawsandregulationsoItheMemberStates.

Article 85

1.Eurojustsmissionshallbetosupportandstrengthencoordinationandcooperation
betweennationalinvestigatingandprosecutingauthoritiesinrelationtoseriouscrime
aIIectingtwoormoreMemberStatesorrequiringaprosecutiononcommonbases,on
thebasisoIoperationsconductedandinIormationsuppliedbytheMemberStates
authoritiesandbyEuropol.

Inthiscontext,theEuropeanParliamentandtheCouncil,bymeansoIregulations
adoptedinaccordancewiththeordinarylegislativeprocedure,shalldetermine
Eurojustsstructure,operation,IieldoIactionandtasks.Thesetasksmayinclude:

(a)theinitiationoIcriminalinvestigations,aswellasproposingtheinitiationoI
prosecutionsconductedbycompetentnationalauthorities,particularlythoserelating
tooIIencesagainsttheIinancialinterestsoItheUnion;

(b)thecoordinationoIinvestigationsandprosecutionsreIerredtoinpoint(a);

(c)thestrengtheningoIjudicialcooperation,includingbyresolutionoIconIlictsoI
jurisdictionandbyclosecooperationwiththeEuropeanJudicialNetwork.

TheseregulationsshallalsodeterminearrangementsIorinvolvingtheEuropean
ParliamentandnationalParliamentsintheevaluationoIEurojustsactivities.

2.IntheprosecutionsreIerredtoinparagraph1,andwithoutprejudicetoArticle86,
IormalactsoIjudicialprocedureshallbecarriedoutbythecompetentnational
oIIicials.

Article 86

1.InordertocombatcrimesaIIectingtheIinancialinterestsoItheUnion,the
Council,bymeansoIregulationsadoptedinaccordancewithaspeciallegislative
procedure,mayestablishaEuropeanPublicProsecutorsOIIiceIromEurojust.The
CouncilshallactunanimouslyaIterobtainingtheconsentoItheEuropeanParliament.

IntheabsenceoIunanimityintheCouncil,agroupoIatleastnineMemberStates
mayrequestthatthedraItregulationbereIerredtotheEuropeanCouncil.Inthatcase,
theprocedureintheCouncilshallbesuspended.AIterdiscussion,andincaseoIa
72

consensus,theEuropeanCouncilshall,withinIourmonthsoIthissuspension,reIer
thedraItbacktotheCouncilIoradoption.

WithinthesametimeIrame,incaseoIdisagreement,andiIatleastnineMember
StateswishtoestablishenhancedcooperationonthebasisoIthedraItregulation
concerned,theyshallnotiIytheEuropeanParliament,theCouncilandthe
Commissionaccordingly.Insuchacase,theauthorisationtoproceedwithenhanced
cooperationreIerredtoinArticle20(2)oItheTreatyonEuropeanUnionandArticle
329(1)oIthisTreatyshallbedeemedtobegrantedandtheprovisionsonenhanced
cooperationshallapply.

2.TheEuropeanPublicProsecutorsOIIiceshallberesponsibleIorinvestigating,
prosecutingandbringingtojudgment,whereappropriateinliaisonwithEuropol,the
perpetratorsoI,andaccomplicesin,oIIencesagainsttheUnionsIinancialinterests,as
determinedbytheregulationprovidedIorinparagraph1.Itshallexercisethe
IunctionsoIprosecutorinthecompetentcourtsoItheMemberStatesinrelationto
suchoIIences.

3.TheregulationsreIerredtoinparagraph1shalldeterminethegeneralrules
applicabletotheEuropeanPublicProsecutorsOIIice,theconditionsgoverningthe
perIormanceoIitsIunctions,therulesoIprocedureapplicabletoitsactivities,aswell
asthosegoverningtheadmissibilityoIevidence,andtherulesapplicabletothe
judicialreviewoIproceduralmeasurestakenbyitintheperIormanceoIitsIunctions.

4.TheEuropeanCouncilmay,atthesametimeorsubsequently,adoptadecision
amendingparagraph1inordertoextendthepowersoItheEuropeanPublic
ProsecutorsOIIicetoincludeseriouscrimehavingacross-borderdimensionand
amendingaccordinglyparagraph2asregardstheperpetratorsoI,andaccomplicesin,
seriouscrimesaIIectingmorethanoneMemberState.TheEuropeanCouncilshallact
unanimouslyaIterobtainingtheconsentoItheEuropeanParliamentandaIter
consultingtheCommission.

CHAPTER5

POLICECOOPERATION

Article 87

1.TheUnionshallestablishpolicecooperationinvolvingalltheMemberStates
competentauthorities,includingpolice,customsandotherspecialisedlaw
enIorcementservicesinrelationtotheprevention,detectionandinvestigationoI
criminaloIIences.

73

2.ForthepurposesoIparagraph1,theEuropeanParliamentandtheCouncil,acting
inaccordancewiththeordinarylegislativeprocedure,mayestablishmeasures
concerning:

(a)thecollection,storage,processing,analysisandexchangeoIrelevantinIormation;

(b)supportIorthetrainingoIstaII,andcooperationontheexchangeoIstaII,on
equipmentandonresearchintocrime-detection;

(c)commoninvestigativetechniquesinrelationtothedetectionoIseriousIormsoI
organisedcrime.

3.TheCouncil,actinginaccordancewithaspeciallegislativeprocedure,may
establishmeasuresconcerningoperationalcooperationbetweentheauthorities
reIerredtointhisArticle.TheCouncilshallactunanimouslyaIterconsultingthe
EuropeanParliament.

IncaseoItheabsenceoIunanimityintheCouncil,agroupoIatleastnineMember
StatesmayrequestthatthedraItmeasuresbereIerredtotheEuropeanCouncil.Inthat
case,theprocedureintheCouncilshallbesuspended.AIterdiscussion,andincaseoI
aconsensus,theEuropeanCouncilshall,withinIourmonthsoIthissuspension,reIer
thedraItbacktotheCouncilIoradoption.

WithinthesametimeIrame,incaseoIdisagreement,andiIatleastnineMember
StateswishtoestablishenhancedcooperationonthebasisoIthedraItmeasures
concerned,theyshallnotiIytheEuropeanParliament,theCouncilandthe
Commissionaccordingly.Insuchacase,theauthorisationtoproceedwithenhanced
cooperationreIerredtoinArticle20(2)oItheTreatyonEuropeanUnionandArticle
329(1)oIthisTreatyshallbedeemedtobegrantedandtheprovisionsonenhanced
cooperationshallapply.

ThespeciIicprocedureprovidedIorinthesecondandthirdsubparagraphsshallnot
applytoactswhichconstituteadevelopmentoItheSchengenacquis.

Article 88

1.EuropolsmissionshallbetosupportandstrengthenactionbytheMemberStates
policeauthoritiesandotherlawenIorcementservicesandtheirmutualcooperationin
preventingandcombatingseriouscrimeaIIectingtwoormoreMemberStates,
terrorismandIormsoIcrimewhichaIIectacommoninterestcoveredbyaUnion
policy.

2.TheEuropeanParliamentandtheCouncil,bymeansoIregulationsadoptedin
accordancewiththeordinarylegislativeprocedure,shalldetermineEuropols
structure,operation,IieldoIactionandtasks.Thesetasksmayinclude:

74

(a)thecollection,storage,processing,analysisandexchangeoIinIormation,in
particularthatIorwardedbytheauthoritiesoItheMemberStatesorthirdcountriesor
bodies;

(b)thecoordination,organisationandimplementationoIinvestigativeandoperational
actioncarriedoutjointlywiththeMemberStatescompetentauthoritiesorinthe
contextoIjointinvestigativeteams,whereappropriateinliaisonwithEurojust.

TheseregulationsshallalsolaydowntheproceduresIorscrutinyoIEuropols
activitiesbytheEuropeanParliament,togetherwithnationalParliaments.

3.AnyoperationalactionbyEuropolmustbecarriedoutinliaisonandinagreement
withtheauthoritiesoItheMemberStateorStateswhoseterritoryisconcerned.The
applicationoIcoercivemeasuresshallbetheexclusiveresponsibilityoIthe
competentnationalauthorities.

Article 89

TheCouncil,actinginaccordancewithaspeciallegislativeprocedure,shalllaydown
theconditionsandlimitationsunderwhichthecompetentauthoritiesoItheMember
StatesreIerredtoinArticles82and87mayoperateintheterritoryoIanother
MemberStateinliaisonandinagreementwiththeauthoritiesoIthatState.The
CouncilshallactunanimouslyaIterconsultingtheEuropeanParliament.

TITLEVI

TRANSPORT

Article 90

TheobjectivesoItheTreatiesshall,inmattersgovernedbythistitle,bepursued
withintheIrameworkoIacommontransportpolicy.

Article 91

1.ForthepurposeoIimplementingArticle90,andtakingintoaccountthedistinctive
IeaturesoItransport,theEuropeanParliamentandtheCouncilshall,actingin
accordancewiththeordinarylegislativeprocedure,andaIterconsultingtheEconomic
andSocialCommitteeandtheCommitteeoItheRegions,laydown:
75

(a)commonrulesapplicabletointernationaltransporttoorIromtheterritoryoIa
MemberStateorpassingacrosstheterritoryoIoneormoreMemberStates;
(b)theconditionsunderwhichnon-residentcarriersmayoperatetransportservices
withinaMemberState;
(c)measurestoimprovetransportsaIety;
(d)anyotherappropriateprovisions.
2.WhenthemeasuresreIerredtoinparagraph1areadopted,accountshallbetaken
oIcaseswheretheirapplicationmightseriouslyaIIectthestandardoIlivingandlevel
oIemploymentincertainregions,andtheoperationoItransportIacilities.

Article 92

UntiltheprovisionsreIerredtoinArticle91(1)havebeenlaiddown,noMember
Statemay,unlesstheCouncilhasunanimouslyadoptedameasuregrantinga
derogation,makethevariousprovisionsgoverningthesubjecton1January1958or,
IoraccedingStates,thedateoItheiraccessionlessIavourableintheirdirector
indirecteIIectoncarriersoIotherMemberStatesascomparedwithcarrierswhoare
nationalsoIthatState.

Article 93

AidsshallbecompatiblewiththeTreatiesiItheymeettheneedsoIcoordinationoI
transportoriItheyrepresentreimbursementIorthedischargeoIcertainobligations
inherentintheconceptoIapublicservice.

Article 94

AnymeasurestakenwithintheIrameworkoItheTreatiesinrespectoItransportrates
andconditionsshalltakeaccountoItheeconomiccircumstancesoIcarriers.

Article 95

1.InthecaseoItransportwithintheUnion,discriminationwhichtakestheIormoI
carrierschargingdiIIerentratesandimposingdiIIerentconditionsIorthecarriageoI
thesamegoodsoverthesametransportlinksongroundsoIthecountryoIoriginoroI
destinationoIthegoodsinquestionshallbeprohibited.
76

2.Paragraph1shallnotpreventtheEuropeanParliamentandtheCouncilIrom
adoptingothermeasurespursuanttoArticle91(1).
3.TheCouncilshall,onaproposalIromtheCommissionandaIterconsultingthe
EuropeanParliamentandtheEconomicandSocialCommittee,laydownrulesIor
implementingtheprovisionsoIparagraph1.
TheCouncilmayinparticularlaydowntheprovisionsneededtoenablethe
institutionsoItheUniontosecurecompliancewiththerulelaiddowninparagraph1
andtoensurethatusersbeneIitIromittotheIull.
4.TheCommissionshall,actingonitsowninitiativeoronapplicationbyaMember
State,investigateanycasesoIdiscriminationIallingwithinparagraph1and,aIter
consultinganyMemberStateconcerned,shalltakethenecessarydecisionswithinthe
IrameworkoItheruleslaiddowninaccordancewiththeprovisionsoIparagraph3.

Article 96

1.TheimpositionbyaMemberState,inrespectoItransportoperationscarriedout
withintheUnion,oIratesandconditionsinvolvinganyelementoIsupportor
protectionintheinterestoIoneormoreparticularundertakingsorindustriesshallbe
prohibited,unlessauthorisedbytheCommission.
2.TheCommissionshall,actingonitsowninitiativeoronapplicationbyaMember
State,examinetheratesandconditionsreIerredtoinparagraph1,takingaccountin
particularoItherequirementsoIanappropriateregionaleconomicpolicy,theneeds
oIunderdevelopedareasandtheproblemsoIareasseriouslyaIIectedbypolitical
circumstancesontheonehand,andoItheeIIectsoIsuchratesandconditionson
competitionbetweenthediIIerentmodesoItransportontheother.
AIterconsultingeachMemberStateconcerned,theCommissionshalltakethe
necessarydecisions.
3.TheprohibitionprovidedIorinparagraph1shallnotapplytotariIIsIixedtomeet
competition.

Article 97

ChargesorduesinrespectoIthecrossingoIIrontierswhicharechargedbyacarrier
inadditiontothetransportratesshallnotexceedareasonablelevelaItertakingthe
costsactuallyincurredtherebyintoaccount.
MemberStatesshallendeavourtoreducethesecostsprogressively.
TheCommissionmaymakerecommendationstoMemberStatesIortheapplicationoI
thisarticle.
77

Article 98

TheprovisionsoIthistitleshallnotIormanobstacletotheapplicationoImeasures
takenintheFederalRepublicoIGermanytotheextentthatsuchmeasuresare
requiredinordertocompensateIortheeconomicdisadvantagescausedbythe
divisionoIGermanytotheeconomyoIcertainareasoItheFederalRepublicaIIected
bythatdivision.FiveyearsaItertheentryintoIorceoItheTreatyoILisbon,the
Council,actingonaproposalIromtheCommission,mayadoptadecisionrepealing
thisArticle.

Article 99

AnAdvisoryCommitteeconsistingoIexpertsdesignatedbythegovernmentsoI
MemberStatesshallbeattachedtotheCommission.TheCommission,wheneverit
considersitdesirable,shallconsulttheCommitteeontransportmatters.

Article 100

1.TheprovisionsoIthistitleshallapplytotransportbyrail,roadandinland
waterway.
2.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,maylaydownappropriateprovisionsIorseaandairtransport.
TheyshallactaIterconsultingtheEconomicandSocialCommitteeandthe
CommitteeoItheRegions.

TITLEVII

COMMONRULESONCOMPETITION,TAXATIONANDAPPROXIMATION
OFLAWS

CHAPTER1

RULESONCOMPETITION
78

SECTION1

RULESAPPLYINGTOUNDERTAKINGS

Article 101

1.TheIollowingshallbeprohibitedasincompatiblewiththeinternalmarket:all
agreementsbetweenundertakings,decisionsbyassociationsoIundertakingsand
concertedpracticeswhichmayaIIecttradebetweenMemberStatesandwhichhaveas
theirobjectoreIIecttheprevention,restrictionordistortionoIcompetitionwithinthe
internalmarket,andinparticularthosewhich:
(a)directlyorindirectlyIixpurchaseorsellingpricesoranyothertradingconditions;
(b)limitorcontrolproduction,markets,technicaldevelopment,orinvestment;
(c)sharemarketsorsourcesoIsupply;
(d)applydissimilarconditionstoequivalenttransactionswithothertradingparties,
therebyplacingthematacompetitivedisadvantage;
(e)maketheconclusionoIcontractssubjecttoacceptancebytheotherpartiesoI
supplementaryobligationswhich,bytheirnatureoraccordingtocommercialusage,
havenoconnectionwiththesubjectoIsuchcontracts.
2.AnyagreementsordecisionsprohibitedpursuanttothisArticleshallbe
automaticallyvoid.
3.TheprovisionsoIparagraph1may,however,bedeclaredinapplicableinthecase
oI:
anyagreementorcategoryoIagreementsbetweenundertakings,
anydecisionorcategoryoIdecisionsbyassociationsoIundertakings,
anyconcertedpracticeorcategoryoIconcertedpractices,
whichcontributestoimprovingtheproductionordistributionoIgoodsorto
promotingtechnicaloreconomicprogress,whileallowingconsumersaIairshareoI
theresultingbeneIit,andwhichdoesnot:
(a)imposeontheundertakingsconcernedrestrictionswhicharenotindispensableto
theattainmentoItheseobjectives;
(b)aIIordsuchundertakingsthepossibilityoIeliminatingcompetitioninrespectoIa
substantialpartoItheproductsinquestion.

79

Article 102

AnyabusebyoneormoreundertakingsoIadominantpositionwithintheinternal
marketorinasubstantialpartoIitshallbeprohibitedasincompatiblewiththe
internalmarketinsoIarasitmayaIIecttradebetweenMemberStates.
Suchabusemay,inparticular,consistin:
(a)directlyorindirectlyimposingunIairpurchaseorsellingpricesorotherunIair
tradingconditions;
(b)limitingproduction,marketsortechnicaldevelopmenttotheprejudiceoI
consumers;
(c)applyingdissimilarconditionstoequivalenttransactionswithothertradingparties,
therebyplacingthematacompetitivedisadvantage;
(d)makingtheconclusionoIcontractssubjecttoacceptancebytheotherpartiesoI
supplementaryobligationswhich,bytheirnatureoraccordingtocommercialusage,
havenoconnectionwiththesubjectoIsuchcontracts.

Article 103

1.TheappropriateregulationsordirectivestogiveeIIecttotheprinciplessetoutin
Articles101and102shallbelaiddownbytheCouncil,onaproposalIromthe
CommissionandaIterconsultingtheEuropeanParliament.
2.TheregulationsordirectivesreIerredtoinparagraph1shallbedesignedin
particular:
(a)toensurecompliancewiththeprohibitionslaiddowninArticle101(1)andin
Article102bymakingprovisionIorIinesandperiodicpenaltypayments;
(b)tolaydowndetailedrulesIortheapplicationoIArticle101(3),takingintoaccount
theneedtoensureeIIectivesupervisionontheonehand,andtosimpliIy
administrationtothegreatestpossibleextentontheother;
(c)todeIine,iIneedbe,inthevariousbranchesoItheeconomy,thescopeoIthe
provisionsoIArticles101and102;
(d)todeIinetherespectiveIunctionsoItheCommissionandoItheCourtoIJusticeoI
theEuropeanUnioninapplyingtheprovisionslaiddowninthisparagraph;
(e)todeterminetherelationshipbetweennationallawsandtheprovisionscontained
inthisSectionoradoptedpursuanttothisArticle.

80

Article 104

UntiltheentryintoIorceoItheprovisionsadoptedinpursuanceoIArticle103,the
authoritiesinMemberStatesshallruleontheadmissibilityoIagreements,decisions
andconcertedpracticesandonabuseoIadominantpositionintheinternalmarketin
accordancewiththelawoItheircountryandwiththeprovisionsoIArticle101,in
particularparagraph3,andoIArticle102.

Article 105

1.WithoutprejudicetoArticle104,theCommissionshallensuretheapplicationoI
theprincipleslaiddowninArticles101and102.OnapplicationbyaMemberStateor
onitsowninitiative,andincooperationwiththecompetentauthoritiesintheMember
States,whichshallgiveittheirassistance,theCommissionshallinvestigatecasesoI
suspectedinIringementoItheseprinciples.IIitIindsthattherehasbeenan
inIringement,itshallproposeappropriatemeasurestobringittoanend.
2.IItheinIringementisnotbroughttoanend,theCommissionshallrecordsuch
inIringementoItheprinciplesinareasoneddecision.TheCommissionmaypublish
itsdecisionandauthoriseMemberStatestotakethemeasures,theconditionsand
detailsoIwhichitshalldetermine,neededtoremedythesituation.
3.TheCommissionmayadoptregulationsrelatingtothecategoriesoIagreementin
respectoIwhichtheCouncilhasadoptedaregulationoradirectivepursuantto
Article103(2)(b).

Article 106

1.InthecaseoIpublicundertakingsandundertakingstowhichMemberStatesgrant
specialorexclusiverights,MemberStatesshallneitherenactnormaintaininIorce
anymeasurecontrarytotherulescontainedintheTreaties,inparticulartothoserules
providedIorinArticle18andArticles101to109.
2.UndertakingsentrustedwiththeoperationoIservicesoIgeneraleconomicinterest
orhavingthecharacteroIarevenue-producingmonopolyshallbesubjecttotherules
containedintheTreaties,inparticulartotherulesoncompetition,insoIarasthe
applicationoIsuchrulesdoesnotobstructtheperIormance,inlaworinIact,oIthe
particulartasksassignedtothem.ThedevelopmentoItrademustnotbeaIIectedto
suchanextentaswouldbecontrarytotheinterestsoItheUnion.
3.TheCommissionshallensuretheapplicationoItheprovisionsoIthisArticleand
shall,wherenecessary,addressappropriatedirectivesordecisionstoMemberStates.

81

SECTION2

AIDSGRANTEDBYSTATES

Article 107

1.SaveasotherwiseprovidedintheTreaties,anyaidgrantedbyaMemberStateor
throughStateresourcesinanyIormwhatsoeverwhichdistortsorthreatenstodistort
competitionbyIavouringcertainundertakingsortheproductionoIcertaingoods
shall,insoIarasitaIIectstradebetweenMemberStates,beincompatiblewiththe
internalmarket.
2.TheIollowingshallbecompatiblewiththeinternalmarket:
(a)aidhavingasocialcharacter,grantedtoindividualconsumers,providedthatsuch
aidisgrantedwithoutdiscriminationrelatedtotheoriginoItheproductsconcerned;
(b)aidtomakegoodthedamagecausedbynaturaldisastersorexceptional
occurrences;
(c)aidgrantedtotheeconomyoIcertainareasoItheFederalRepublicoIGermany
aIIectedbythedivisionoIGermany,insoIarassuchaidisrequiredinorderto
compensateIortheeconomicdisadvantagescausedbythatdivision.FiveyearsaIter
theentryintoIorceoItheTreatyoILisbon,theCouncil,actingonaproposalIromthe
Commission,mayadoptadecisionrepealingthispoint.
3.TheIollowingmaybeconsideredtobecompatiblewiththeinternalmarket:
(a)aidtopromotetheeconomicdevelopmentoIareaswherethestandardoIlivingis
abnormallyloworwherethereisseriousunderemployment,andoItheregions
reIerredtoinArticle349,inviewoItheirstructural,economicandsocialsituation;
(b)aidtopromotetheexecutionoIanimportantprojectoIcommonEuropeaninterest
ortoremedyaseriousdisturbanceintheeconomyoIaMemberState;
(c)aidtoIacilitatethedevelopmentoIcertaineconomicactivitiesoroIcertain
economicareas,wheresuchaiddoesnotadverselyaIIecttradingconditionstoan
extentcontrarytothecommoninterest;
(d)aidtopromotecultureandheritageconservationwheresuchaiddoesnotaIIect
tradingconditionsandcompetitionintheUniontoanextentthatiscontrarytothe
commoninterest;
(e)suchothercategoriesoIaidasmaybespeciIiedbydecisionoItheCouncilona
proposalIromtheCommission.

82

Article 108

1.TheCommissionshall,incooperationwithMemberStates,keepunderconstant
reviewallsystemsoIaidexistinginthoseStates.Itshallproposetothelatterany
appropriatemeasuresrequiredbytheprogressivedevelopmentorbytheIunctioning
oItheinternalmarket.
2.II,aItergivingnoticetothepartiesconcernedtosubmittheircomments,the
CommissionIindsthataidgrantedbyaStateorthroughStateresourcesisnot
compatiblewiththeinternalmarkethavingregardtoArticle107,orthatsuchaidis
beingmisused,itshalldecidethattheStateconcernedshallabolishoraltersuchaid
withinaperiodoItimetobedeterminedbytheCommission.
IItheStateconcerneddoesnotcomplywiththisdecisionwithintheprescribedtime,
theCommissionoranyotherinterestedStatemay,inderogationIromtheprovisions
oIArticles258and259,reIerthemattertotheCourtoIJusticeoItheEuropeanUnion
direct.
OnapplicationbyaMemberState,theCouncilmay,actingunanimously,decidethat
aidwhichthatStateisgrantingorintendstograntshallbeconsideredtobe
compatiblewiththeinternalmarket,inderogationIromtheprovisionsoIArticle107
orIromtheregulationsprovidedIorinArticle109,iIsuchadecisionisjustiIiedby
exceptionalcircumstances.II,asregardstheaidinquestion,theCommissionhas
alreadyinitiatedtheprocedureprovidedIorintheIirstsubparagraphoIthis
paragraph,theIactthattheStateconcernedhasmadeitsapplicationtotheCouncil
shallhavetheeIIectoIsuspendingthatprocedureuntiltheCouncilhasmadeits
attitudeknown.
II,however,theCouncilhasnotmadeitsattitudeknownwithinthreemonthsoIthe
saidapplicationbeingmade,theCommissionshallgiveitsdecisiononthecase.
3.TheCommissionshallbeinIormed,insuIIicienttimetoenableittosubmitits
comments,oIanyplanstograntoralteraid.IIitconsidersthatanysuchplanisnot
compatiblewiththeinternalmarkethavingregardtoArticle107,itshallwithout
delayinitiatetheprocedureprovidedIorinparagraph2.TheMemberStateconcerned
shallnotputitsproposedmeasuresintoeIIectuntilthisprocedurehasresultedina
Iinaldecision.
4.TheCommissionmayadoptregulationsrelatingtothecategoriesoIStateaidthat
theCouncilhas,pursuanttoArticle109,determinedmaybeexemptedIromthe
procedureprovidedIorbyparagraph3oIthisArticle.

Article 109

TheCouncil,onaproposalIromtheCommissionandaIterconsultingtheEuropean
Parliament,maymakeanyappropriateregulationsIortheapplicationoIArticles107
83

and108andmayinparticulardeterminetheconditionsinwhichArticle108(3)shall
applyandthecategoriesoIaidexemptedIromthisprocedure.

CHAPTER2

TAXPROVISIONS

Article 110

NoMemberStateshallimpose,directlyorindirectly,ontheproductsoIother
MemberStatesanyinternaltaxationoIanykindinexcessoIthatimposeddirectlyor
indirectlyonsimilardomesticproducts.
Furthermore,noMemberStateshallimposeontheproductsoIotherMemberStates
anyinternaltaxationoIsuchanatureastoaIIordindirectprotectiontootherproducts.

Article 111

WhereproductsareexportedtotheterritoryoIanyMemberState,anyrepaymentoI
internaltaxationshallnotexceedtheinternaltaxationimposedonthemwhether
directlyorindirectly.

Article 112

InthecaseoIchargesotherthanturnovertaxes,excisedutiesandotherIormsoI
indirecttaxation,remissionsandrepaymentsinrespectoIexportstootherMember
StatesmaynotbegrantedandcountervailingchargesinrespectoIimportsIrom
MemberStatesmaynotbeimposedunlessthemeasurescontemplatedhavebeen
previouslyapprovedIoralimitedperiodbytheCouncilonaproposalIromthe
Commission.

Article 113

TheCouncilshall,actingunanimouslyinaccordancewithaspeciallegislative
procedureandaIterconsultingtheEuropeanParliamentandtheEconomicandSocial
Committee,adoptprovisionsIortheharmonisationoIlegislationconcerningturnover
84

taxes,excisedutiesandotherIormsoIindirecttaxationtotheextentthatsuch
harmonisationisnecessarytoensuretheestablishmentandtheIunctioningoIthe
internalmarketandtoavoiddistortionoIcompetition.

CHAPTER3

APPROXIMATIONOFLAWS

Article 114

1.SavewhereotherwiseprovidedintheTreaties,theIollowingprovisionsshallapply
IortheachievementoItheobjectivessetoutinArticle26.TheEuropeanParliament
andtheCouncilshall,actinginaccordancewiththeordinarylegislativeprocedure
andaIterconsultingtheEconomicandSocialCommittee,adoptthemeasuresIorthe
approximationoItheprovisionslaiddownbylaw,regulationoradministrativeaction
inMemberStateswhichhaveastheirobjecttheestablishmentandIunctioningoIthe
internalmarket.
2.Paragraph1shallnotapplytoIiscalprovisions,tothoserelatingtotheIree
movementoIpersonsnortothoserelatingtotherightsandinterestsoIemployed
persons.
3.TheCommission,initsproposalsenvisagedinparagraph1concerninghealth,
saIety,environmentalprotectionandconsumerprotection,willtakeasabaseahigh
leveloIprotection,takingaccountinparticularoIanynewdevelopmentbasedon
scientiIicIacts.Withintheirrespectivepowers,theEuropeanParliamentandthe
Councilwillalsoseektoachievethisobjective.
4.II,aItertheadoptionoIaharmonisationmeasurebytheEuropeanParliamentand
theCouncil,bytheCouncilorbytheCommission,aMemberStatedeemsit
necessarytomaintainnationalprovisionsongroundsoImajorneedsreIerredtoin
Article36,orrelatingtotheprotectionoItheenvironmentortheworking
environment,itshallnotiIytheCommissionoItheseprovisionsaswellasthegrounds
Iormaintainingthem.
5.Moreover,withoutprejudicetoparagraph4,iI,aItertheadoptionoIa
harmonisationmeasurebytheEuropeanParliamentandtheCouncil,bytheCouncil
orbytheCommission,aMemberStatedeemsitnecessarytointroducenational
provisionsbasedonnewscientiIicevidencerelatingtotheprotectionoIthe
environmentortheworkingenvironmentongroundsoIaproblemspeciIictothat
MemberStatearisingaItertheadoptionoItheharmonisationmeasure,itshallnotiIy
theCommissionoItheenvisagedprovisionsaswellasthegroundsIorintroducing
them.
6.TheCommissionshall,withinsixmonthsoIthenotiIicationsasreIerredtoin
paragraphs4and5,approveorrejectthenationalprovisionsinvolvedaIterhaving
85

veriIiedwhetherornottheyareameansoIarbitrarydiscriminationoradisguised
restrictionontradebetweenMemberStatesandwhetherornottheyshallconstitute
anobstacletotheIunctioningoItheinternalmarket.
IntheabsenceoIadecisionbytheCommissionwithinthisperiodthenational
provisionsreIerredtoinparagraphs4and5shallbedeemedtohavebeenapproved.
WhenjustiIiedbythecomplexityoIthematterandintheabsenceoIdangerIor
humanhealth,theCommissionmaynotiIytheMemberStateconcernedthatthe
periodreIerredtointhisparagraphmaybeextendedIoraIurtherperiodoIuptosix
months.
7.When,pursuanttoparagraph6,aMemberStateisauthorisedtomaintainor
introducenationalprovisionsderogatingIromaharmonisationmeasure,the
Commissionshallimmediatelyexaminewhethertoproposeanadaptationtothat
measure.
8.WhenaMemberStateraisesaspeciIicproblemonpublichealthinaIieldwhich
hasbeenthesubjectoIpriorharmonisationmeasures,itshallbringittotheattention
oItheCommissionwhichshallimmediatelyexaminewhethertoproposeappropriate
measurestotheCouncil.
9.BywayoIderogationIromtheprocedurelaiddowninArticles258and259,the
CommissionandanyMemberStatemaybringthematterdirectlybeIoretheCourtoI
JusticeoItheEuropeanUnioniIitconsidersthatanotherMemberStateismaking
improperuseoIthepowersprovidedIorinthisArticle.
10.TheharmonisationmeasuresreIerredtoaboveshall,inappropriatecases,include
asaIeguardclauseauthorisingtheMemberStatestotake,IoroneormoreoIthenon-
economicreasonsreIerredtoinArticle36,provisionalmeasuressubjecttoaUnion
controlprocedure.

Article 115

WithoutprejudicetoArticle114,theCouncilshall,actingunanimouslyinaccordance
withaspeciallegislativeprocedureandaIterconsultingtheEuropeanParliamentand
theEconomicandSocialCommittee,issuedirectivesIortheapproximationoIsuch
laws,regulationsoradministrativeprovisionsoItheMemberStatesasdirectlyaIIect
theestablishmentorIunctioningoItheinternalmarket.

Article 116

WheretheCommissionIindsthatadiIIerencebetweentheprovisionslaiddownby
law,regulationoradministrativeactioninMemberStatesisdistortingtheconditions
oIcompetitionintheinternalmarketandthattheresultantdistortionneedstobe
eliminated,itshallconsulttheMemberStatesconcerned.
86

IIsuchconsultationdoesnotresultinanagreementeliminatingthedistortionin
question,theEuropean,ParliamentandtheCouncil,actinginaccordancewiththe
ordinarylegislativeprocedure,shallissuethenecessarydirectives.Anyother
appropriatemeasuresprovidedIorintheTreatiesmaybeadopted.

Article 117

1.WherethereisareasontoIearthattheadoptionoramendmentoIaprovisionlaid
downbylaw,regulationoradministrativeactionmaycausedistortionwithinthe
meaningoIArticle116,aMemberStatedesiringtoproceedtherewithshallconsult
theCommission.AIterconsultingtheMemberStates,theCommissionshall
recommendtotheStatesconcernedsuchmeasuresasmaybeappropriatetoavoidthe
distortioninquestion.
2.IIaStatedesiringtointroduceoramenditsownprovisionsdoesnotcomplywith
therecommendationaddressedtoitbytheCommission,otherMemberStatesshall
notberequired,pursuanttoArticle116,toamendtheirownprovisionsinorderto
eliminatesuchdistortion.IItheMemberStatewhichhasignoredtherecommendation
oItheCommissioncausesdistortiondetrimentalonlytoitselI,theprovisionsoI
Article116shallnotapply.

Article 118
InthecontextoItheestablishmentandIunctioningoItheinternalmarket,the
EuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shallestablishmeasuresIorthecreationoIEuropean
intellectualpropertyrightstoprovideuniIormprotectionoIintellectualproperty
rightsthroughouttheUnionandIorthesettingupoIcentralisedUnion-wide
authorisation,coordinationandsupervisionarrangements.
TheCouncil,actinginaccordancewithaspeciallegislativeprocedure,shallbymeans
oIregulationsestablishlanguagearrangementsIortheEuropeanintellectualproperty
rights.TheCouncilshallactunanimouslyaIterconsultingtheEuropeanParliament.
87

TITLEVIII

ECONOMICANDMONETARYPOLICY

CHAPTER1

ECONOMICPOLICY

Article 119

1.ForthepurposessetoutinArticle3oItheTreatyonEuropeanUnion,theactivities
oItheMemberStatesandtheUnionshallinclude,asprovidedintheTreaties,the
adoptionoIaneconomicpolicywhichisbasedontheclosecoordinationoIMember
Stateseconomicpolicies,ontheinternalmarketandonthedeIinitionoIcommon
objectives,andconductedinaccordancewiththeprincipleoIanopenmarket
economywithIreecompetition.
2.ConcurrentlywiththeIoregoing,andasprovidedintheTreatiesandinaccordance
withtheproceduressetouttherein,theseactivitiesshallincludeasinglecurrency,the
euro,andthedeIinitionandconductoIasinglemonetarypolicyandexchange-rate
policytheprimaryobjectiveoIbothoIwhichshallbetomaintainpricestabilityand,
withoutprejudicetothisobjective,tosupportthegeneraleconomicpoliciesinthe
Union,inaccordancewiththeprincipleoIanopenmarketeconomywithIree
competition.
3.TheseactivitiesoItheMemberStatesandtheUnionshallentailcompliancewith
theIollowingguidingprinciples:stableprices,soundpublicIinancesandmonetary
conditionsandasustainablebalanceoIpayments.

Article 120

MemberStatesshallconducttheireconomicpolicieswithaviewtocontributingto
theachievementoItheobjectivesoItheUnion,asdeIinedinArticle3oItheTreaty
onEuropeanUnion,andinthecontextoIthebroadguidelinesreIerredtoinArticle
121(2).TheMemberStatesandtheUnionshallactinaccordancewiththeprinciple
oIanopenmarketeconomywithIreecompetition,IavouringaneIIicientallocationoI
resources,andincompliancewiththeprinciplessetoutinArticle119.

88

Article 121

1.MemberStatesshallregardtheireconomicpoliciesasamatteroIcommonconcern
andshallcoordinatethemwithintheCouncil,inaccordancewiththeprovisionsoI
Article120.
2.TheCouncilshall,onarecommendationIromtheCommission,IormulateadraIt
IorthebroadguidelinesoItheeconomicpoliciesoItheMemberStatesandoIthe
Union,andshallreportitsIindingstotheEuropeanCouncil.
TheEuropeanCouncilshall,actingonthebasisoIthereportIromtheCouncil,
discussaconclusiononthebroadguidelinesoItheeconomicpoliciesoItheMember
StatesandoItheUnion.
OnthebasisoIthisconclusion,theCouncilshall,adoptarecommendationsettingout
thesebroadguidelines.TheCouncilshallinIormtheEuropeanParliamentoIits
recommendation.
3.InordertoensureclosercoordinationoIeconomicpoliciesandsustained
convergenceoItheeconomicperIormancesoItheMemberStates,theCouncilshall,
onthebasisoIreportssubmittedbytheCommission,monitoreconomic
developmentsineachoItheMemberStatesandintheUnionaswellasthe
consistencyoIeconomicpolicieswiththebroadguidelinesreIerredtoinparagraph2,
andregularlycarryoutanoverallassessment.
ForthepurposeoIthismultilateralsurveillance,MemberStatesshallIorward
inIormationtotheCommissionaboutimportantmeasurestakenbythemintheIield
oItheireconomicpolicyandsuchotherinIormationastheydeemnecessary.
4.Whereitisestablished,undertheprocedurereIerredtoinparagraph3,thatthe
economicpoliciesoIaMemberStatearenotconsistentwiththebroadguidelines
reIerredtoinparagraph2orthattheyriskjeopardisingtheproperIunctioningoI
economicandmonetaryunion,theCommissionmayaddressawarningtothe
MemberStateconcerned.TheCouncil,onarecommendationIromtheCommission,
mayaddressthenecessaryrecommendationstotheMemberStateconcerned.The
Councilmay,onaproposalIromtheCommission,decidetomakeits
recommendationspublic.
WithinthescopeoIthisparagraph,theCouncilshallactwithouttakingintoaccount
thevoteoIthememberoItheCouncilrepresentingtheMemberStateconcerned.
ThequaliIiedmajorityoItheothermembersoItheCouncilshallbedeIinedin
accordancewithArticle238(3)(a).
5.ThePresidentoItheCouncilandtheCommissionshallreporttotheEuropean
ParliamentontheresultsoImultilateralsurveillance.ThePresidentoItheCouncil
maybeinvitedtoappearbeIorethecompetentcommitteeoItheEuropeanParliament
iItheCouncilhasmadeitsrecommendationspublic.
89

6.TheEuropeanParliamentandtheCouncil,actingbymeansoIregulationsin
accordancewiththeordinarylegislativeprocedure,mayadoptdetailedrulesIorthe
multilateralsurveillanceprocedurereIerredtoinparagraphs3and4.

Article 122

1.WithoutprejudicetoanyotherproceduresprovidedIorintheTreaties,theCouncil,
onaproposalIromtheCommission,maydecide,inaspiritoIsolidaritybetween
MemberStates,uponthemeasuresappropriatetotheeconomicsituation,inparticular
iIseverediIIicultiesariseinthesupplyoIcertainproducts,notablyintheareaoI
energy.
2.WhereaMemberStateisindiIIicultiesorisseriouslythreatenedwithsevere
diIIicultiescausedbynaturaldisastersorexceptionaloccurrencesbeyonditscontrol,
theCouncil,onaproposalIromtheCommission,maygrant,undercertainconditions,
UnionIinancialassistancetotheMemberStateconcerned.ThePresidentoIthe
CouncilshallinIormtheEuropeanParliamentoIthedecisiontaken.

Article 123

1.OverdraItIacilitiesoranyothertypeoIcreditIacilitywiththeEuropeanCentral
BankorwiththecentralbanksoItheMemberStates(hereinaIterreIerredtoas
nationalcentralbanks)inIavouroIUnioninstitutions,bodies,oIIicesoragencies,
centralgovernments,regional,localorotherpublicauthorities,otherbodiesgoverned
bypubliclaw,orpublicundertakingsoIMemberStatesshallbeprohibited,asshall
thepurchasedirectlyIromthembytheEuropeanCentralBankornationalcentral
banksoIdebtinstruments.
2.Paragraph1shallnotapplytopubliclyownedcreditinstitutionswhich,inthe
contextoIthesupplyoIreservesbycentralbanks,shallbegiventhesametreatment
bynationalcentralbanksandtheEuropeanCentralBankasprivatecreditinstitutions.

Article 124

Anymeasure,notbasedonprudentialconsiderations,establishingprivilegedaccess
byUnioninstitutions,bodies,oIIicesoragencies,centralgovernments,regional,local
orotherpublicauthorities,otherbodiesgovernedbypubliclaw,orpublic
undertakingsoIMemberStatestoIinancialinstitutions,shallbeprohibited.

Article 125
90

1.TheUnionshallnotbeliableIororassumethecommitmentsoIcentral
governments,regional,localorotherpublicauthorities,otherbodiesgovernedby
publiclaw,orpublicundertakingsoIanyMemberState,withoutprejudicetomutual
IinancialguaranteesIorthejointexecutionoIaspeciIicproject.AMemberStateshall
notbeliableIororassumethecommitmentsoIcentralgovernments,regional,localor
otherpublicauthorities,otherbodiesgovernedbypubliclaw,orpublicundertakings
oIanotherMemberState,withoutprejudicetomutualIinancialguaranteesIorthe
jointexecutionoIaspeciIicproject.
2.TheCouncil,onaproposalIromtheCommissionandaIterconsultationwiththe
EuropeanParliament,may,asrequired,speciIydeIinitionsIortheapplicationoIthe
prohibitionsreIerredtoinArticles123and124andinthisArticle.

Article 126

1.MemberStatesshallavoidexcessivegovernmentdeIicits.
2.TheCommissionshallmonitorthedevelopmentoIthebudgetarysituationandoI
thestockoIgovernmentdebtintheMemberStateswithaviewtoidentiIyinggross
errors.Inparticularitshallexaminecompliancewithbudgetarydisciplineonthebasis
oItheIollowingtwocriteria:
(a)whethertheratiooItheplannedoractualgovernmentdeIicittogrossdomestic
productexceedsareIerencevalue,unless:
eithertheratiohasdeclinedsubstantiallyandcontinuouslyandreachedalevelthat
comesclosetothereIerencevalue,
or,alternatively,theexcessoverthereIerencevalueisonlyexceptionaland
temporaryandtheratioremainsclosetothereIerencevalue;
(b)whethertheratiooIgovernmentdebttogrossdomesticproductexceedsa
reIerencevalue,unlesstheratioissuIIicientlydiminishingandapproachingthe
reIerencevalueatasatisIactorypace.
ThereIerencevaluesarespeciIiedintheProtocolontheexcessivedeIicitprocedure
annexedtotheTreaties.
3.IIaMemberStatedoesnotIulIiltherequirementsunderoneorbothoIthese
criteria,theCommissionshallprepareareport.ThereportoItheCommissionshall
alsotakeintoaccountwhetherthegovernmentdeIicitexceedsgovernmentinvestment
expenditureandtakeintoaccountallotherrelevantIactors,includingthemedium-
termeconomicandbudgetarypositionoItheMemberState.
TheCommissionmayalsoprepareareportiI,notwithstandingtheIulIilmentoIthe
requirementsunderthecriteria,itisoItheopinionthatthereisariskoIanexcessive
deIicitinaMemberState.
91

4.TheEconomicandFinancialCommitteeshallIormulateanopiniononthereportoI
theCommission.
5.IItheCommissionconsidersthatanexcessivedeIicitinaMemberStateexistsor
mayoccur,itshalladdressanopiniontotheMemberStateconcernedandshall
inIormtheCouncilaccordingly.
6.TheCouncilshall,onaproposalIromtheCommission,andhavingconsideredany
observationswhichtheMemberStateconcernedmaywishtomake,decideaIteran
overallassessmentwhetheranexcessivedeIicitexists.
7.WheretheCouncildecides,inaccordancewithparagraph6,thatanexcessive
deIicitexists,itshalladopt,withoutunduedelay,onarecommendationIromthe
Commission,recommendationsaddressedtotheMemberStateconcernedwithaview
tobringingthatsituationtoanendwithinagivenperiod.SubjecttotheprovisionsoI
paragraph8,theserecommendationsshallnotbemadepublic.
8.WhereitestablishesthattherehasbeennoeIIectiveactioninresponsetoits
recommendationswithintheperiodlaiddown,theCouncilmaymakeits
recommendationspublic.
9.IIaMemberStatepersistsinIailingtoputintopracticetherecommendationsoIthe
Council,theCouncilmaydecidetogivenoticetotheMemberStatetotake,withina
speciIiedtimelimit,measuresIorthedeIicitreductionwhichisjudgednecessaryby
theCouncilinordertoremedythesituation.
Insuchacase,theCouncilmayrequesttheMemberStateconcernedtosubmitreports
inaccordancewithaspeciIictimetableinordertoexaminetheadjustmenteIIortsoI
thatMemberState.
10.TherightstobringactionsprovidedIorinArticles258and259maynotbe
exercisedwithintheIrameworkoIparagraphs1to9oIthisArticle.
11.AslongasaMemberStateIailstocomplywithadecisiontakeninaccordance
withparagraph9,theCouncilmaydecidetoapplyor,asthecasemaybe,reinIorce
oneormoreoItheIollowingmeasures:
torequiretheMemberStateconcernedtopublishadditionalinIormation,tobe
speciIiedbytheCouncil,beIoreissuingbondsandsecurities,
toinvitetheEuropeanInvestmentBanktoreconsideritslendingpolicytowardsthe
MemberStateconcerned,
torequiretheMemberStateconcernedtomakeanon-interest-bearingdepositoIan
appropriatesizewiththeUnionuntiltheexcessivedeIicithas,intheviewoIthe
Council,beencorrected,
toimposeIinesoIanappropriatesize.
ThePresidentoItheCouncilshallinIormtheEuropeanParliamentoIthedecisions
taken.
12.TheCouncilshallabrogatesomeoralloIitsdecisionsorrecommendations
reIerredtoinparagraphs6to9and11totheextentthattheexcessivedeIicitinthe
92

MemberStateconcernedhas,intheviewoItheCouncil,beencorrected.IIthe
Councilhaspreviouslymadepublicrecommendations,itshall,assoonasthedecision
underparagraph8hasbeenabrogated,makeapublicstatementthatanexcessive
deIicitintheMemberStateconcernednolongerexists.
13.WhentakingthedecisionsorrecommendationsreIerredtoinparagraphs8,9,11
and12,theCouncilshallactontherecommendationoItheCommission.
WhentheCounciladoptsthemeasuresreIerredinparagraphs6to9,11and12,it
shallactwithouttakingintoaccountthevoteoIthememberoItheCouncil
representingtheMemberStateconcerned.
AqualiIiedmajorityoItheothermembersoItheCouncilshallbedeIinedin
accordancewithArticle238(3)(a).
14.FurtherprovisionsrelatingtotheimplementationoItheproceduredescribedin
thisarticlearesetoutintheProtocolontheexcessivedeIicitprocedureannexedto
theTreaties.
TheCouncilshall,actingunanimouslyinaccordancewithaspeciallegislative
procedureandaIterconsultingtheEuropeanParliamentandtheEuropeanCentral
Bank,adopttheappropriateprovisionswhichshallthenreplacethesaidProtocol.
SubjecttotheotherprovisionsoIthisparagraph,theCouncilshall,onaproposalIrom
theCommissionandaIterconsultingtheEuropeanParliament,laydowndetailed
rulesanddeIinitionsIortheapplicationoItheprovisionsoIthesaidProtocol.

CHAPTER2

MONETARYPOLICY

Article 127

1.TheprimaryobjectiveoItheEuropeanSystemoICentralBanks,hereinaIter
reIerredtoasESCB,shallbetomaintainpricestability.Withoutprejudicetothe
objectiveoIpricestability,theESCBshallsupportthegeneraleconomicpoliciesin
theUnionwithaviewtocontributingtotheachievementoItheobjectivesoIthe
UnionaslaiddowninArticle3oItheTreatyonEuropeanUnion.TheESCBshallact
inaccordancewiththeprincipleoIanopenmarketeconomywithIreecompetition,
IavouringaneIIicientallocationoIresources,andincompliancewiththeprinciples
setoutinArticle119.
2.ThebasictaskstobecarriedoutthroughtheESCBshallbe:
todeIineandimplementthemonetarypolicyoItheUnion,
93

toconductIoreign-exchangeoperationsconsistentwiththeprovisionsoIArticle
219;
toholdandmanagetheoIIicialIoreignreservesoItheMemberStates,
topromotethesmoothoperationoIpaymentsystems.
3.ThethirdindentoIparagraph2shallbewithoutprejudicetotheholdingand
managementbythegovernmentsoIMemberStatesoIIoreign-exchangeworking
balances.
4.TheEuropeanCentralBankshallbeconsulted:
onanyproposedUnionactinitsIieldsoIcompetence,
bynationalauthoritiesregardinganydraItlegislativeprovisioninitsIieldsoI
competence,butwithinthelimitsandundertheconditionssetoutbytheCouncilin
accordancewiththeprocedurelaiddowninArticle129(4).
TheEuropeanCentralBankmaysubmitopinionstotheappropriateUnion
institutions,bodies,oIIicesoragenciesortonationalauthoritiesonmattersinits
IieldsoIcompetence.
5.TheESCBshallcontributetothesmoothconductoIpoliciespursuedbythe
competentauthoritiesrelatingtotheprudentialsupervisionoIcreditinstitutionsand
thestabilityoItheIinancialsystem.
6.TheCouncil,actingbymeansoIregulationsinaccordancewithaspecial
legislativeprocedure,mayunanimously,andaIterconsultingtheEuropeanParliament
andtheEuropeanCentralBank,conIerspeciIictasksupontheEuropeanCentralBank
concerningpoliciesrelatingtotheprudentialsupervisionoIcreditinstitutionsand
otherIinancialinstitutionswiththeexceptionoIinsuranceundertakings.

Article 128

1.TheEuropeanCentralBankshallhavetheexclusiverighttoauthorisetheissueoI
eurobanknoteswithintheUnion.TheEuropeanCentralBankandthenationalcentral
banksmayissuesuchnotes.ThebanknotesissuedbytheEuropeanCentralBankand
thenationalcentralbanksshallbetheonlysuchnotestohavethestatusoIlegal
tenderwithintheUnion.
2.MemberStatesmayissueeurocoinssubjecttoapprovalbytheEuropeanCentral
BankoIthevolumeoItheissue.TheCouncil,onaproposalIromtheCommission
andaIterconsultingtheEuropeanParliamentandtheEuropeanCentralBank,may,
adoptmeasurestoharmonisethedenominationsandtechnicalspeciIicationsoIall
coinsintendedIorcirculationtotheextentnecessarytopermittheirsmooth
circulationwithintheUnion.

94

Article 129

1.TheESCBshallbegovernedbythedecision-makingbodiesoItheEuropean
CentralBankwhichshallbetheGoverningCouncilandtheExecutiveBoard.
2.TheStatuteoItheEuropeanSystemoICentralBanksandoItheEuropeanCentral
Bank,hereinaIterreIerredtoasStatuteoItheESCBandoItheECBislaiddownin
aProtocolannexedtotheTreaties.
3..Articles5.1,5.2,5.3,17,18,19.1,22,23,24,26,32.2,32.3,32.4,32.6,33.1(a)
and36oItheStatuteoItheESCBandoItheECBmaybeamendedbytheEuropean
ParliamentandtheCouncil,actinginaccordancewiththeordinarylegislative
procedure.TheyshallacteitheronarecommendationIromtheEuropeanCentral
BankandaIterconsultingtheCommissionoronaproposalIromtheCommissionand
aIterconsultingtheEuropeanCentralBank..
4.TheCouncil,actingbyaqualiIiedmajorityeitheronaproposalIromthe
CommissionandaIterconsultingtheEuropeanParliamentandtheEuropeanCentral
BankoronarecommendationIromtheEuropeanCentralBankandaIterconsulting
theEuropeanParliamentandtheCommission,shalladopttheprovisionsreIerredtoin
Articles4,5.4,19.2,20,28.1,29.2,30.4and34.3oItheStatuteoItheESCBandoI
theECB.

Article 130

WhenexercisingthepowersandcarryingoutthetasksanddutiesconIerredupon
thembytheTreatiesandtheStatuteoItheESCBandoItheECB,neitherthe
EuropeanCentralBank,noranationalcentralbank,noranymemberoItheir
decision-makingbodiesshallseekortakeinstructionsIromUnioninstitutions,bodies,
oIIicesoragencies,IromanygovernmentoIaMemberStateorIromanyotherbody.
TheUnioninstitutions,bodies,oIIicesoragenciesandthegovernmentsoIthe
MemberStatesundertaketorespectthisprincipleandnottoseektoinIluencethe
membersoIthedecision-makingbodiesoItheEuropeanCentralBankoroIthe
nationalcentralbanksintheperIormanceoItheirtasks.

Article 131

EachMemberStateshallensurethatitsnationallegislationincludingthestatutesoI
itsnationalcentralbankiscompatiblewiththeTreatiesandtheStatuteoItheESCB
andoItheECB.

95

Article 132

1.InordertocarryoutthetasksentrustedtotheESCB,theEuropeanCentralBank
shall,inaccordancewiththeprovisionsoItheTreatiesandundertheconditionslaid
downintheStatuteoItheESCBandoItheECB:
makeregulationstotheextentnecessarytoimplementthetasksdeIinedinArticle
3.1,Iirstindent,Articles19.1,22and25.2oItheStatuteoItheESCBandoItheECB
andincaseswhichshallbelaiddownintheactsoItheCouncilreIerredtoinArticle
129(4),
takedecisionsnecessaryIorcarryingoutthetasksentrustedtotheESCBunderthe
TreatiesandtheStatuteoItheESCBandoItheECB,
-makerecommendationsanddeliveropinions.
2.TheEuropeanCentralBankmaydecidetopublishitsdecisions,recommendations
andopinions.
3.WithinthelimitsandundertheconditionsadoptedbytheCouncilunderthe
procedurelaiddowninArticle129(4),theEuropeanCentralBankshallbeentitledto
imposeIinesorperiodicpenaltypaymentsonundertakingsIorIailuretocomplywith
obligationsunderitsregulationsanddecisions.

Article 133

WithoutprejudicetothepowersoItheEuropeanCentralBank,theEuropean
ParliamentandtheCouncil,actinginaccordancewiththeordinarylegislative
procedure,shalllaydownthemeasuresnecessaryIortheuseoItheeuroasthesingle
currency.SuchmeasuresshallbeadoptedaIterconsultationoItheEuropeanCentral
Bank.

CHAPTER3

INSTITUTIONALPROVISIONS

Article 134

1.InordertopromotecoordinationoIthepoliciesoIMemberStatestotheIullextent
neededIortheIunctioningoItheinternalmarket,anEconomicandFinancial
Committeeisherebysetup.
96

2.TheEconomicandFinancialCommitteeshallhavetheIollowingtasks:
-todeliveropinionsattherequestoItheCouncilorCommission,oronitsown
initiativeIorsubmissiontothoseinstitutions,
tokeepunderreviewtheeconomicandIinancialsituationoItheMemberStatesand
oItheUnionandtoreportregularlythereontotheCouncilandtotheCommission,in
particularonIinancialrelationswiththirdcountriesandinternationalinstitutions,
withoutprejudicetoArticle240,tocontributetothepreparationoItheworkoIthe
CouncilreIerredtoinArticles66,75,121(2),(3),(4)and(6),122,124,125,126,
127(6),128(2),129(3)and(4),219,138(1),143,144(2)and(3),and140(2)and(3),
andtocarryoutotheradvisoryandpreparatorytasksassignedtoitbytheCouncil,
toexamine,atleastonceayear,thesituationregardingthemovementoIcapitaland
theIreedomoIpayments,astheyresultIromtheapplicationoItheTreatiesandoI
measuresadoptedbytheCouncil;theexaminationshallcoverallmeasuresrelatingto
capitalmovementsandpayments;theCommitteeshallreporttotheCommissionand
totheCouncilontheoutcomeoIthisexamination.
TheMemberStates,theCommissionandtheEuropeanCentralBankshalleach
appointnomorethantwomembersoItheCommittee.
3.TheCouncilshall,onaproposalIromtheCommissionandaIterconsultingthe
EuropeanCentralBankandtheCommitteereIerredtointhisArticle,laydown
detailedprovisionsconcerningthecompositionoItheEconomicandFinancial
Committee.ThePresidentoItheCouncilshallinIormtheEuropeanParliamentoI
suchadecision.
4.Inadditiontothetaskssetoutinparagraph2,iIandaslongasthereareMember
StateswithaderogationasreIerredtoinArticle139,theCommitteeshallkeepunder
reviewthemonetaryandIinancialsituationandthegeneralpaymentssystemoIthose
MemberStatesandreportregularlythereontotheCouncilandtotheCommission.

Article 135

FormatterswithinthescopeoIArticles121(4),126withtheexceptionoIparagraph
14,219,138(1),140(1),140(2),Iirstsubparagraphand140(3),theCouncilora
MemberStatemayrequesttheCommissiontomakearecommendationoraproposal,
asappropriate.TheCommissionshallexaminethisrequestandsubmititsconclusions
totheCouncilwithoutdelay.

97

CHAPTER4

PROVISIONSSPECIFICTOMEMBERSTATESWHOSECURRENCYISTHE
EURO

Article 136

1.InordertoensuretheproperIunctioningoIeconomicandmonetaryunion,andin
accordancewiththerelevantprovisionsoItheTreaties,theCouncilshall,in
accordancewiththerelevantprocedureIromamongthosereIerredtoinArticles121
and126,withtheexceptionoItheproceduresetoutinArticle126(14),adopt
measuresspeciIictothoseMemberStateswhosecurrencyistheeuro:
(a)tostrengthenthecoordinationandsurveillanceoItheirbudgetarydiscipline;

(b)tosetouteconomicpolicyguidelinesIorthem,whileensuringthattheyare
compatiblewiththoseadoptedIorthewholeoItheUnionandarekeptunder
surveillance.
2.Forthosemeasuressetoutinparagraph1,onlymembersoItheCouncil
representingMemberStateswhosecurrencyistheeuroshalltakepartinthevote.
AqualiIiedmajorityoIthesaidmembersshallbedeIinedinaccordancewithArticle
238(3)(a).

Article 137

ArrangementsIormeetingsbetweenministersoIthoseMemberStateswhose
currencyistheeuroarelaiddownbytheProtocolontheEuroGroup.

Article 138

1.Inordertosecuretheeurosplaceintheinternationalmonetarysystem,the
Council,onaproposalIromtheCommission,shalladoptadecisionestablishing
commonpositionsonmattersoIparticularinterestIoreconomicandmonetaryunion
withinthecompetentinternationalIinancialinstitutionsandconIerences.TheCouncil
shallactaIterconsultingtheEuropeanCentralBank.

2.TheCouncil,onaproposalIromtheCommission,mayadoptappropriatemeasures
toensureuniIiedrepresentationwithintheinternationalIinancialinstitutionsand
conIerences.TheCouncilshallactaIterconsultingtheEuropeanCentralBank.
98

3.ForthemeasuresreIerredtoinparagraphs1and2,onlymembersoItheCouncil
representingMemberStateswhosecurrencyistheeuroshalltakepartinthevote.
AqualiIiedmajorityoIthesaidmembersshallbedeIinedinaccordancewithArticle
238(3)(a).

CHAPTER5

TRANSITIONALPROVISIONS

Article 139

1.MemberStatesinrespectoIwhichtheCouncilhasnotdecidedthattheyIulIilthe
necessaryconditionsIortheadoptionoItheeuroshallhereinaIterbereIerredtoas
MemberStateswithaderogation.
2.TheIollowingprovisionsoItheTreatiesshallnotapplytoMemberStateswitha
derogation:
(a)adoptionoIthepartsoIthebroadeconomicpolicyguidelineswhichconcernthe
euroareagenerally(Article121(2));

(b)coercivemeansoIremedyingexcessivedeIicits(Article126(9)and(11));

(c)theobjectivesandtasksoItheESCB(Article127(1)to(3)and(5));

(d)issueoItheeuro(Article128);

(e)actsoItheEuropeanCentralBank(Article132);

(I)measuresgoverningtheuseoItheeuro(Article133);

(g)monetaryagreementsandothermeasuresrelatingtoexchange-ratepolicy
(Article219);

(h)appointmentoImembersoItheExecutiveBoardoItheEuropeanCentralBank
(Article283(2));

(i)decisionsestablishingcommonpositionsonissuesoIparticularrelevanceIor
economicandmonetaryunionwithinthecompetentinternationalIinancialinstitutions
andconIerences(Article138(1));

(j)measurestoensureuniIiedrepresentationwithintheinternationalIinancial
institutionsandconIerences(Article138(2)).
IntheArticlesreIerredtoinpoints(a)to(j),MemberStatesshallthereIoremean
MemberStateswhosecurrencyistheeuro.
99

3.UnderChapterIXoItheStatuteoItheESCBandoItheECB,MemberStateswith
aderogationandtheirnationalcentralbanksareexcludedIromrightsandobligations
withintheESCB.
4.ThevotingrightsoImembersoItheCouncilrepresentingMemberStateswitha
derogationshallbesuspendedIortheadoptionbytheCounciloIthemeasures
reIerredtointheArticleslistedinparagraph2,andintheIollowinginstances:
(a)recommendationsmadetothoseMemberStateswhosecurrencyistheeurointhe
IrameworkoImultilateralsurveillance,includingonstabilityprogrammesand
warnings(Article121(4));

(b)measuresrelatingtoexcessivedeIicitsconcerningthoseMemberStateswhose
currencyistheeuro(Article126(6),(7),(8),(12)and(13)).
A qualiIied majority oI the other members oI the Council shall be deIined in
accordancewithArticle238(3)(a).

Article 140

1.Atleastonceeverytwoyears,orattherequestoIaMemberStatewitha
derogation,theCommissionandtheEuropeanCentralBankshallreporttothe
CouncilontheprogressmadebytheMemberStateswithaderogationinIulIilling
theirobligationsregardingtheachievementoIeconomicandmonetaryunion.These
reportsshallincludeanexaminationoIthecompatibilitybetweenthenational
legislationoIeachoItheseMemberStates,includingthestatutesoIitsnational
centralbank,andArticles130and131andtheStatuteoItheESCBandoItheECB.
ThereportsshallalsoexaminetheachievementoIahighdegreeoIsustainable
convergencebyreIerencetotheIulIilmentbyeachMemberStateoItheIollowing
criteria:
theachievementoIahighdegreeoIpricestability;thiswillbeapparentIromarate
oIinIlationwhichisclosetothatoI,atmost,thethreebestperIormingMemberStates
intermsoIpricestability,
thesustainabilityoIthegovernmentIinancialposition;thiswillbeapparentIrom
havingachievedagovernmentbudgetarypositionwithoutadeIicitthatisexcessiveas
determinedinaccordancewithArticle126(6),
theobservanceoIthenormalIluctuationmarginsprovidedIorbytheexchange-rate
mechanismoItheEuropeanMonetarySystem,Ioratleasttwoyears,without
devaluingagainsttheeuro,
thedurabilityoIconvergenceachievedbytheMemberStatewithaderogationand
oIitsparticipationintheexchange-ratemechanismbeingreIlectedinthelong-term
interest-ratelevels.
TheIourcriteriamentionedinthisparagraphandtherelevantperiodsoverwhichthey
aretoberespectedaredevelopedIurtherinaProtocolannexedtotheTreaties.The
reportsoItheCommissionandtheEuropeanCentralBankshallalsotakeaccountoI,
100

theresultsoItheintegrationoImarkets,thesituationanddevelopmentoIthebalances
oIpaymentsoncurrentaccountandanexaminationoIthedevelopmentoIunitlabour
costsandotherpriceindices.
2..AIterconsultingtheEuropeanParliamentandaIterdiscussionintheEuropean
Council,theCouncilshall,onaproposalIromtheCommission,decidewhich
MemberStateswithaderogationIulIilthenecessaryconditionsonthebasisoIthe
criteriasetoutinparagraph1,andabrogatethederogationsoItheMemberStates
concerned.
TheCouncilshallacthavingreceivedarecommendationoIaqualiIiedmajorityoI
thoseamongitsmembersrepresentingMemberStateswhosecurrencyistheeuro.
ThesemembersshallactwithinsixmonthsoItheCouncilreceivingthe
Commissionsproposal.
ThequaliIiedmajorityoIthesaidmembers,asreIerredtointhesecondsubparagraph,
shallbedeIinedinaccordancewithArticle238(3)(a).
3.IIitisdecided,inaccordancewiththeproceduresetoutinparagraph2,toabrogate
a derogation, the Council shall, acting with the unanimity oI the Member States
whosecurrencyistheeuroandtheMemberStateconcerned,onaproposalIromthe
CommissionandaIterconsultingtheEuropeanCentralBank,irrevocablyIixtherate
atwhichtheeuroshallbesubstitutedIorthecurrencyoItheMemberStateconcerned,
and take the other measures necessary Ior the introduction oI the euro as the single
currencyintheMemberStateconcerned.

Article 141

1.IIandaslongasthereareMemberStateswithaderogation,andwithoutprejudice
toArticle129(1),theGeneralCounciloItheEuropeanCentralBankreIerredtoin
Article44oItheStatuteoItheESCBandoItheECBshallbeconstitutedasathird
decision-makingbodyoItheEuropeanCentralBank.
2.IIandaslongasthereareMemberStateswithaderogation,theEuropeanCentral
Bankshall,asregardsthoseMemberStates:
strengthencooperationbetweenthenationalcentralbanks,
strengthenthecoordinationoIthemonetarypoliciesoItheMemberStates,withthe
aimoIensuringpricestability,
monitortheIunctioningoItheexchangeratemechanism,
holdconsultationsconcerningissuesIallingwithinthecompetenceoIthenational
centralbanksandaIIectingthestabilityoIIinancialinstitutionsandmarkets,
carryouttheIormertasksoItheEuropeanMonetaryCooperationFundwhichhad
subsequentlybeentakenoverbytheEuropeanMonetaryInstitute.

101

Article 142

EachMemberStatewithaderogationshalltreatitsexchange-ratepolicyasamatter
oIcommoninterest.Insodoing,MemberStatesshalltakeaccountoItheexperience
acquiredincooperationwithintheIrameworkoItheexchange-ratemechanism..

Article 143

1.WhereaMemberStatewithaderogationisindiIIicultiesorisseriouslythreatened
withdiIIicultiesasregardsitsbalanceoIpaymentseitherasaresultoIanoverall
disequilibriuminitsbalanceoIpayments,orasaresultoIthetypeoIcurrencyatits
disposal,andwheresuchdiIIicultiesareliableinparticulartojeopardisethe
IunctioningoItheinternalmarketortheimplementationoIthecommoncommercial
policy,theCommissionshallimmediatelyinvestigatethepositionoItheStatein
questionandtheactionwhich,makinguseoIallthemeansatitsdisposal,thatState
hastakenormaytakeinaccordancewiththeprovisionsoItheTreaties.The
CommissionshallstatewhatmeasuresitrecommendstheStateconcernedtotake.
IItheactiontakenbyaMemberStatewithaderogationandthemeasuressuggested
bytheCommissiondonotprovesuIIicienttoovercomethediIIicultieswhichhave
arisenorwhichthreaten,theCommissionshall,aIterconsultingtheEconomicand
FinancialCommittee,recommendtotheCouncilthegrantingoImutualassistance
andappropriatemethodsthereIor.
TheCommissionshallkeeptheCouncilregularlyinIormedoIthesituationandoI
howitisdeveloping.
2.TheCouncil,shallgrantsuchmutualassistance;itshalladoptdirectivesor
decisionslayingdowntheconditionsanddetailsoIsuchassistance,whichmaytake
suchIormsas:
(a)aconcertedapproachtoorwithinanyotherinternationalorganisationstowhich
MemberStateswithaderogationmayhaverecourse;
(b)measuresneededtoavoiddeIlectionoItradewheretheMemberStatewitha
derogationwhichisindiIIicultiesmaintainsorreintroducesquantitativerestrictions
againstthirdcountries;
(c)thegrantingoIlimitedcreditsbyotherMemberStates,subjecttotheiragreement.
3.IIthemutualassistancerecommendedbytheCommissionisnotgrantedbythe
CounciloriIthemutualassistancegrantedandthemeasurestakenareinsuIIicient,
theCommissionshallauthorisetheMemberStatewithaderogationwhichisin
diIIicultiestotakeprotectivemeasures,theconditionsanddetailsoIwhichthe
Commissionshalldetermine.
102

Suchauthorisationmayberevokedandsuchconditionsanddetailsmaybechanged
bytheCouncil.

Article 144

1.WhereasuddencrisisinthebalanceoIpaymentsoccursandadecisionwithinthe
meaningoIArticle143(2)isnotimmediatelytaken,aMemberStatewitha
derogationmay,asaprecaution,takethenecessaryprotectivemeasures.Such
measuresmustcausetheleastpossibledisturbanceintheIunctioningoItheinternal
marketandmustnotbewiderinscopethanisstrictlynecessarytoremedythesudden
diIIicultieswhichhavearisen.
2.TheCommissionandtheotherMemberStatesshallbeinIormedoIsuchprotective
measuresnotlaterthanwhentheyenterintoIorce.TheCommissionmayrecommend
totheCouncilthegrantingoImutualassistanceunderArticle143.
3.AItertheCommissionhasdeliveredarecommendationandtheEconomicand
FinancialCommitteehasbeenconsulted,theCouncilmay,decidethattheMember
Stateconcernedshallamend,suspendorabolishtheprotectivemeasuresreIerredto
above.

TITLEIX

EMPLOYMENT

Article 145

MemberStatesandtheUnionshall,inaccordancewiththistitle,worktowards
developingacoordinatedstrategyIoremploymentandparticularlyIorpromotinga
skilled,trainedandadaptableworkIorceandlabourmarketsresponsivetoeconomic
changewithaviewtoachievingtheobjectivesdeIinedinArticle3oItheTreatyon
EuropeanUnion.

Article 146

1.MemberStates,throughtheiremploymentpolicies,shallcontributetothe
achievementoItheobjectivesreIerredtoinArticle145inawayconsistentwiththe
broadguidelinesoItheeconomicpoliciesoItheMemberStatesandoItheUnion
adoptedpursuanttoArticle121(2).
103

2.MemberStates,havingregardtonationalpracticesrelatedtotheresponsibilitiesoI
managementandlabour,shallregardpromotingemploymentasamatteroIcommon
concernandshallcoordinatetheiractioninthisrespectwithintheCouncil,in
accordancewiththeprovisionsoIArticle148.

Article 147

1.TheUnionshallcontributetoahighleveloIemploymentbyencouraging
cooperationbetweenMemberStatesandbysupportingand,iInecessary,
complementingtheiraction.Indoingso,thecompetencesoItheMemberStatesshall
berespected.
2.TheobjectiveoIahighleveloIemploymentshallbetakenintoconsiderationinthe
IormulationandimplementationoIUnionpoliciesandactivities.

Article 148

1.TheEuropeanCouncilshalleachyearconsidertheemploymentsituationinthe
Unionandadoptconclusionsthereon,onthebasisoIajointannualreportbythe
CouncilandtheCommission.
2.OnthebasisoItheconclusionsoItheEuropeanCouncil,theCouncil,onaproposal
IromtheCommissionandaIterconsultingtheEuropeanParliament,theEconomic
andSocialCommittee,theCommitteeoItheRegionsandtheEmployment
CommitteereIerredtoinArticle150,shalleachyeardrawupguidelineswhichthe
MemberStatesshalltakeintoaccountintheiremploymentpolicies.Theseguidelines
shallbeconsistentwiththebroadguidelinesadoptedpursuanttoArticle121(2).
3.EachMemberStateshallprovidetheCouncilandtheCommissionwithanannual
reportontheprincipalmeasurestakentoimplementitsemploymentpolicyinthe
lightoItheguidelinesIoremploymentasreIerredtoinparagraph2.
4.TheCouncil,onthebasisoIthereportsreIerredtoinparagraph3andhaving
receivedtheviewsoItheEmploymentCommittee,shalleachyearcarryoutan
examinationoItheimplementationoItheemploymentpoliciesoItheMemberStates
inthelightoItheguidelinesIoremployment.TheCouncil,onarecommendation
IromtheCommission,may,iIitconsidersitappropriateinthelightoIthat
examination,makerecommendationstoMemberStates.
5.OnthebasisoItheresultsoIthatexamination,theCouncilandtheCommission
shallmakeajointannualreporttotheEuropeanCouncilontheemploymentsituation
intheUnionandontheimplementationoItheguidelinesIoremployment.

104

Article 149

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions,mayadoptincentivemeasuresdesignedtoencourage
cooperationbetweenMemberStatesandtosupporttheiractionintheIieldoI
employmentthroughinitiativesaimedatdevelopingexchangesoIinIormationand
bestpractices,providingcomparativeanalysisandadviceaswellaspromoting
innovativeapproachesandevaluatingexperiences,inparticularbyrecoursetopilot
projects.
ThosemeasuresshallnotincludeharmonisationoIthelawsandregulationsoIthe
MemberStates.

Article 150

TheCouncil,actingbyasimplemajorityaIterconsultingtheEuropeanParliament,
shallestablishanEmploymentCommitteewithadvisorystatustopromote
coordinationbetweenMemberStatesonemploymentandlabourmarketpolicies.The
tasksoItheCommitteeshallbe:
tomonitortheemploymentsituationandemploymentpoliciesintheMemberStates
andtheUnion,
withoutprejudicetoArticle240,toIormulateopinionsattherequestoIeitherthe
CouncilortheCommissionoronitsowninitiative,andtocontributetothe
preparationoItheCouncilproceedingsreIerredtoinArticle148.
InIulIillingitsmandate,theCommitteeshallconsultmanagementandlabour.
EachMemberStateandtheCommissionshallappointtwomembersoIthe
Committee.

TITLEX

SOCIALPOLICY

Article 151

TheUnionandtheMemberStates,havinginmindIundamentalsocialrightssuchas
thosesetoutintheEuropeanSocialChartersignedatTurinon21October1961and
105

inthe1989CommunityCharteroItheFundamentalSocialRightsoIWorkers,shall
haveastheirobjectivesthepromotionoIemployment,improvedlivingandworking
conditions,soastomakepossibletheirharmonisationwhiletheimprovementisbeing
maintained,propersocialprotection,dialoguebetweenmanagementandlabour,the
developmentoIhumanresourceswithaviewtolastinghighemploymentandthe
combatingoIexclusion.
TothisendtheUnionandtheMemberStatesshallimplementmeasureswhichtake
accountoIthediverseIormsoInationalpractices,inparticularintheIieldoI
contractualrelations,andtheneedtomaintainthecompetitivenessoItheUnion
economy.
TheybelievethatsuchadevelopmentwillensuenotonlyIromtheIunctioningoIthe
internalmarket,whichwillIavourtheharmonisationoIsocialsystems,butalsoIrom
theproceduresprovidedIorintheTreatiesandIromtheapproximationoIprovisions
laiddownbylaw,regulationoradministrativeaction.

Article 152

TheUnionrecognisesandpromotestheroleoIthesocialpartnersatitslevel,taking
intoaccountthediversityoInationalsystems.ItshallIacilitatedialoguebetweenthe
socialpartners,respectingtheirautonomy.
TheTripartiteSocialSummitIorGrowthandEmploymentshallcontributetosocial
dialogue.

Article 153

1.WithaviewtoachievingtheobjectivesoIArticle151,theUnionshallsupportand
complementtheactivitiesoItheMemberStatesintheIollowingIields:
(a)improvementinparticularoItheworkingenvironmenttoprotectworkershealth
andsaIety;
(b)workingconditions;
(c)socialsecurityandsocialprotectionoIworkers;
(d)protectionoIworkerswheretheiremploymentcontractisterminated;
(e)theinIormationandconsultationoIworkers;
(I)representationandcollectivedeIenceoItheinterestsoIworkersandemployers,
includingco-determination,subjecttoparagraph5;
(g)conditionsoIemploymentIorthird-countrynationalslegallyresidinginUnion
territory;
106

(h)theintegrationoIpersonsexcludedIromthelabourmarket,withoutprejudiceto
Article166;
(i)equalitybetweenmenandwomenwithregardtolabourmarketopportunitiesand
treatmentatwork;
(j)thecombatingoIsocialexclusion;
(k)themodernisationoIsocialprotectionsystemswithoutprejudicetopoint(c).
2.Tothisend,theEuropeanParliamentandtheCouncil:
(a)mayadoptmeasuresdesignedtoencouragecooperationbetweenMemberStates
throughinitiativesaimedatimprovingknowledge,developingexchangesoI
inIormationandbestpractices,promotinginnovativeapproachesandevaluating
experiences,excludinganyharmonisationoIthelawsandregulationsoItheMember
States;
(b)mayadopt,intheIieldsreIerredtoinparagraph1(a)to(i),bymeansoIdirectives,
minimumrequirementsIorgradualimplementation,havingregardtotheconditions
andtechnicalrulesobtainingineachoItheMemberStates.Suchdirectivesshall
avoidimposingadministrative,Iinancialandlegalconstraintsinawaywhichwould
holdbackthecreationanddevelopmentoIsmallandmedium-sizedundertakings.
TheEuropeanParliamentandtheCouncilshallactinaccordancewiththeordinary
legislativeprocedureaIterconsultingtheEconomicandSocialCommitteeandthe
CommitteeoItheRegions.
IntheIieldsreIerredtoinparagraph1(c),(d),(I)and(g),theCouncilshallact
unanimously,inaccordancewithaspeciallegislativeprocedure,aIterconsultingthe
EuropeanParliamentandthesaidCommittees.
TheCouncil,actingunanimouslyonaproposalIromtheCommission,aIter
consultingtheEuropeanParliament,maydecidetorendertheordinarylegislative
procedureapplicabletoparagraph1(d),(I)and(g).

3.AMemberStatemayentrustmanagementandlabour,attheirjointrequest,with
theimplementationoIdirectivesadoptedpursuanttoparagraph2,or,where
appropriate,withtheimplementationoIaCouncildecisionadoptedinaccordance
withArticle155.
Inthiscase,itshallensurethat,nolaterthanthedateonwhichadirectiveora
decisionmustbetransposedorimplemented,,managementandlabourhave
introducedthenecessarymeasuresbyagreement,theMemberStateconcernedbeing
requiredtotakeanynecessarymeasureenablingitatanytimetobeinapositionto
guaranteetheresultsimposedbythatdirectiveorthatdecision.
4.TheprovisionsadoptedpursuanttothisArticle:
shallnotaIIecttherightoIMemberStatestodeIinetheIundamentalprinciplesoI
theirsocialsecuritysystemsandmustnotsigniIicantlyaIIecttheIinancialequilibrium
thereoI,
shallnotpreventanyMemberStateIrommaintainingorintroducingmorestringent
protectivemeasurescompatiblewiththeTreaties.
107

5.TheprovisionsoIthisArticleshallnotapplytopay,therightoIassociation,the
righttostrikeortherighttoimposelock-outs.

Article 154

1.TheCommissionshallhavethetaskoIpromotingtheconsultationoImanagement
andlabouratUnionlevelandshalltakeanyrelevantmeasuretoIacilitatetheir
dialoguebyensuringbalancedsupportIortheparties.
2.Tothisend,beIoresubmittingproposalsinthesocialpolicyIield,theCommission
shallconsultmanagementandlabouronthepossibledirectionoIUnionaction.
3.II,aItersuchconsultation,theCommissionconsidersUnionactionadvisable,it
shallconsultmanagementandlabouronthecontentoItheenvisagedproposal.
ManagementandlabourshallIorwardtotheCommissionanopinionor,where
appropriate,arecommendation.
4.OntheoccasionoIsuchconsultationssetoutinparagraphs2and3,management
andlabourmayinIormtheCommissionoItheirwishtoinitiatetheprocessprovided
IorinArticle155.ThedurationoIthisprocessshallnotexceedninemonths,unless
themanagementandlabourconcernedandtheCommissiondecidejointlytoextend
it.

Article 155

1.Shouldmanagementandlaboursodesire,thedialoguebetweenthematUnion
levelmayleadtocontractualrelations,includingagreements.
2.AgreementsconcludedatUnionlevelshallbeimplementedeitherinaccordance
withtheproceduresandpracticesspeciIictomanagementandlabourandtheMember
Statesor,inmatterscoveredbyArticle153,atthejointrequestoIthesignatory
parties,byaCouncildecisiononaproposalIromtheCommission.TheEuropean
ParliamentshallbeinIormed.
TheCouncilshallactunanimouslywheretheagreementinquestioncontainsoneor
moreprovisionsrelatingtooneoItheareasIorwhichunanimityisrequiredpursuant
toArticle153(2).

Article 156

WithaviewtoachievingtheobjectivesoIArticle151andwithoutprejudicetothe
otherprovisionsoItheTreaties, theCommissionshallencouragecooperationbetween
108

theMemberStatesandIacilitatethecoordinationoItheiractioninallsocialpolicy
IieldsunderthisChapter,particularlyinmattersrelatingto:
employment,
labourlawandworkingconditions,
basicandadvancedvocationaltraining,
socialsecurity,
preventionoIoccupationalaccidentsanddiseases,
occupationalhygiene,
therightoIassociationandcollectivebargainingbetweenemployersandworkers.
Tothisend,theCommissionshallactinclosecontactwithMemberStatesbymaking
studies,deliveringopinionsandarrangingconsultationsbothonproblemsarisingat
nationallevelandonthoseoIconcerntointernationalorganisations,inparticular
initiativesaimingattheestablishmentoIguidelinesandindicators,theorganisationoI
exchangeoIbestpractice,andthepreparationoIthenecessaryelementsIorperiodic
monitoringandevaluation.TheEuropeanParliamentshallbekeptIullyinIormed.
BeIoredeliveringtheopinionsprovidedIorinthisArticle,theCommissionshall
consulttheEconomicandSocialCommittee.

Article 157

1.EachMemberStateshallensurethattheprincipleoIequalpayIormaleandIemale
workersIorequalworkorworkoIequalvalueisapplied.
2.ForthepurposeoIthisarticle,paymeanstheordinarybasicorminimumwageor
salaryandanyotherconsideration,whetherincashorinkind,whichtheworker
receivesdirectlyorindirectly,inrespectoIhisemployment,Iromhisemployer.
Equalpaywithoutdiscriminationbasedonsexmeans:
(a)thatpayIorthesameworkatpieceratesshallbecalculatedonthebasisoIthe
sameunitoImeasurement;
(b)thatpayIorworkattimeratesshallbethesameIorthesamejob.
3.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,andaIterconsultingtheEconomicandSocialCommittee,shall
adoptmeasurestoensuretheapplicationoItheprincipleoIequalopportunitiesand
equaltreatmentoImenandwomeninmattersoIemploymentandoccupation,
includingtheprincipleoIequalpayIorequalworkorworkoIequalvalue.
4.WithaviewtoensuringIullequalityinpracticebetweenmenandwomenin
workingliIe,theprincipleoIequaltreatmentshallnotpreventanyMemberState
109

IrommaintainingoradoptingmeasuresprovidingIorspeciIicadvantagesinorderto
makeiteasierIortheunderrepresentedsextopursueavocationalactivityorto
preventorcompensateIordisadvantagesinproIessionalcareers.

Article 158

MemberStatesshallendeavourtomaintaintheexistingequivalencebetweenpaid
holidayschemes.

Article 159

TheCommissionshalldrawupareporteachyearonprogressinachievingthe
objectivesoIArticle151,includingthedemographicsituationintheUnion.Itshall
IorwardthereporttotheEuropeanParliament,theCouncilandtheEconomicand
SocialCommittee.

Article 160

TheCouncil,actingbyasimplemajorityaIterconsultingtheEuropeanParliament,
shallestablishaSocialProtectionCommitteewithadvisorystatustopromote
cooperationonsocialprotectionpoliciesbetweenMemberStatesandwiththe
Commission.ThetasksoItheCommitteeshallbe:
tomonitorthesocialsituationandthedevelopmentoIsocialprotectionpoliciesin
theMemberStatesandtheUnion,
topromoteexchangesoIinIormation,experienceandgoodpracticebetween
MemberStatesandwiththeCommission,
withoutprejudicetoArticle240,topreparereports,Iormulateopinionsorundertake
otherworkwithinitsIieldsoIcompetence,attherequestoIeithertheCouncilorthe
Commissionoronitsowninitiative.
InIulIillingitsmandate,theCommitteeshallestablishappropriatecontactswith
managementandlabour.
EachMemberStateandtheCommissionshallappointtwomembersoIthe
Committee.

Article 161

110

TheCommissionshallincludeaseparatechapteronsocialdevelopmentswithinthe
UnioninitsannualreporttotheEuropeanParliament.
TheEuropeanParliamentmayinvitetheCommissiontodrawupreportsonany
particularproblemsconcerningsocialconditions.

TITLEXI

THEEUROPEANSOCIALFUND

Article 162

InordertoimproveemploymentopportunitiesIorworkersintheinternalmarketand
tocontributetherebytoraisingthestandardoIliving,aEuropeanSocialFundis
herebyestablishedinaccordancewiththeprovisionssetoutbelow;itshallaimto
rendertheemploymentoIworkerseasierandtoincreasetheirgeographicaland
occupationalmobilitywithintheUnion,andtoIacilitatetheiradaptationtoindustrial
changesandtochangesinproductionsystems,inparticularthroughvocational
trainingandretraining.

Article 163

TheFundshallbeadministeredbytheCommission.
TheCommissionshallbeassistedinthistaskbyaCommitteepresidedoverbya
MemberoItheCommissionandcomposedoIrepresentativesoIgovernments,trade
unionsandemployersorganisations.

Article 164

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions,shalladoptimplementingregulationsrelatingtothe
EuropeanSocialFund.

111

TITLEXII

EDUCATION,VOCATIONALTRAINING,YOUTHANDSPORT

Article 165

1.TheUnionshallcontributetothedevelopmentoIqualityeducationbyencouraging
cooperationbetweenMemberStatesand,iInecessary,bysupportingand
supplementingtheiraction,whileIullyrespectingtheresponsibilityoItheMember
StatesIorthecontentoIteachingandtheorganisationoIeducationsystemsandtheir
culturalandlinguisticdiversity.
TheUnionshallcontributetothepromotionoIEuropeansportingissues,whiletaking
accountoIthespeciIicnatureoIsport,itsstructuresbasedonvoluntaryactivityand
itssocialandeducationalIunction.
2.Unionactionshallbeaimedat:
developingtheEuropeandimensionineducation,particularlythroughtheteaching
anddisseminationoIthelanguagesoItheMemberStates,
encouragingmobilityoIstudentsandteachers,byencouraginginter alia,the
academicrecognitionoIdiplomasandperiodsoIstudy,
promotingcooperationbetweeneducationalestablishments,
developingexchangesoIinIormationandexperienceonissuescommontothe
educationsystemsoItheMemberStates,
encouragingthedevelopmentoIyouthexchangesandoIexchangesoI
socioeducationalinstructors,andencouragingtheparticipationoIyoungpeoplein
democraticliIeinEurope,
encouragingthedevelopmentoIdistanceeducation.

developingtheEuropeandimensioninsport,bypromotingIairnessandopennessin
sportingcompetitionsandcooperationbetweenbodiesresponsibleIorsports,andby
protectingthephysicalandmoralintegrityoIsportsmenandsportswomen,especially
theyoungestsportsmenandsportswomen.
3.TheUnionandtheMemberStatesshallIostercooperationwiththirdcountriesand
thecompetentinternationalorganisationsintheIieldoIeducationandsport,in
particulartheCounciloIEurope.
4.InordertocontributetotheachievementoItheobjectivesreIerredtointhis
Article,:
theEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,aIterconsultingtheEconomicandSocialCommitteeandthe
112

CommitteeoItheRegions,shalladoptincentivemeasures,excludingany
harmonisationoIthelawsandregulationsoItheMemberStates,
theCouncil,onaproposalIromtheCommission,shalladoptrecommendations.

Article 166

1.TheUnionshallimplementavocationaltrainingpolicywhichshallsupportand
supplementtheactionoItheMemberStates,whileIullyrespectingtheresponsibility
oItheMemberStatesIorthecontentandorganisationoIvocationaltraining.
2.Unionactionshallaimto:
Iacilitateadaptationtoindustrialchanges,inparticularthroughvocationaltraining
andretraining,
improveinitialandcontinuingvocationaltraininginordertoIacilitatevocational
integrationandreintegrationintothelabourmarket,
IacilitateaccesstovocationaltrainingandencouragemobilityoIinstructorsand
traineesandparticularlyyoungpeople,
stimulatecooperationontrainingbetweeneducationalortrainingestablishments
andIirms,
developexchangesoIinIormationandexperienceonissuescommontothetraining
systemsoItheMemberStates.
3.TheUnionandtheMemberStatesshallIostercooperationwiththirdcountriesand
thecompetentinternationalorganisationsinthesphereoIvocationaltraining.
4.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions,shalladoptmeasurestocontributetotheachievement
oItheobjectivesreIerredtointhisArticle,excludinganyharmonisationoIthelaws
andregulationsoItheMemberStates,andtheCouncil,onaproposalIromthe
Commission,shalladoptrecommendations.

113

TITLEXIII

CULTURE

Article 167

1.TheUnionshallcontributetotheIloweringoItheculturesoItheMemberStates,
whilerespectingtheirnationalandregionaldiversityandatthesametimebringing
thecommonculturalheritagetotheIore.
2.ActionbytheUnionshallbeaimedatencouragingcooperationbetweenMember
Statesand,iInecessary,supportingandsupplementingtheiractionintheIollowing
areas:
improvementoItheknowledgeanddisseminationoIthecultureandhistoryoIthe
Europeanpeoples,
conservationandsaIeguardingoIculturalheritageoIEuropeansigniIicance,
non-commercialculturalexchanges,
artisticandliterarycreation,includingintheaudiovisualsector.
3.TheUnionandtheMemberStatesshallIostercooperationwiththirdcountriesand
thecompetentinternationalorganisationsinthesphereoIculture,inparticularthe
CounciloIEurope.
4.TheUnionshalltakeculturalaspectsintoaccountinitsactionunderother
provisionsoItheTreaties,inparticularinordertorespectandtopromotethediversity
oIitscultures.
5.InordertocontributetotheachievementoItheobjectivesreIerredtointhis
Article,:
theEuropeanParliamentandtheCouncilactinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheCommitteeoItheRegions,shalladopt
incentivemeasures,excludinganyharmonisationoIthelawsandregulationsoIthe
MemberStates.
theCouncil,onaproposalIromtheCommission,shalladoptrecommendations.

TITLEXIV

PUBLICHEALTH

114

Article 168

1.AhighleveloIhumanhealthprotectionshallbeensuredinthedeIinitionand
implementationoIalltheUnionspoliciesandactivities.
Unionaction,whichshallcomplementnationalpolicies,shallbedirectedtowards
improvingpublichealth,preventinghumanillnessanddiseases,andobviatingsources
oIdangertophysicalandmentalhealth.SuchactionshallcovertheIightagainstthe
majorhealthscourges,bypromotingresearchintotheircauses,theirtransmissionand
theirprevention,aswellashealthinIormationandeducation,andmonitoring,early
warningoIandcombatingseriouscross-borderthreatstohealth.
TheUnionshallcomplementtheMemberStatesactioninreducingdrugs-related
healthdamage,includinginIormationandprevention.
2.TheUnionshallencouragecooperationbetweentheMemberStatesintheareas
reIerredtointhisArticleand,iInecessary,lendsupporttotheiraction.Itshallin
particularencouragecooperationbetweentheMemberStatestoimprovethe
complementarityoItheirhealthservicesincross-borderareas.
MemberStatesshall,inliaisonwiththeCommission,coordinateamongthemselves
theirpoliciesandprogrammesintheareasreIerredtoinparagraph1.The
Commissionmay,inclosecontactwiththeMemberStates,takeanyuseIulinitiative
topromotesuchcoordination,inparticularinitiativesaimingattheestablishmentoI
guidelinesandindicators,theorganisationoIexchangeoIbestpractice,andthe
preparationoIthenecessaryelementsIorperiodicmonitoringandevaluation.The
EuropeanParliamentshallbekeptIullyinIormed.
3.TheUnionandtheMemberStatesshallIostercooperationwiththirdcountriesand
thecompetentinternationalorganisationsinthesphereoIpublichealth.
4.BywayoIderogationIromArticle2(5)andArticle6(a)andinaccordancewith
Article4(2)(k),theEuropeanParliamentandtheCouncil,actinginaccordancewith
theordinarylegislativeprocedureandaIterconsultingtheEconomicandSocial
CommitteeandtheCommitteeoItheRegions,shallcontributetotheachievementoI
theobjectivesreIerredtointhisArticlethroughadopting,inordertomeetcommon
saIetyconcerns:
(a)measuressettinghighstandardsoIqualityandsaIetyoIorgansandsubstancesoI
humanorigin,bloodandbloodderivatives;thesemeasuresshallnotpreventany
MemberStateIrommaintainingorintroducingmorestringentprotectivemeasures;
(b)measuresintheveterinaryandphytosanitaryIieldswhichhaveastheirdirect
objectivetheprotectionoIpublichealth;
(c)measuressettinghighstandardsoIqualityandsaIetyIormedicinalproductsand
devicesIormedicaluse.
5.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions, mayalsoadoptincentivemeasuresdesignedtoprotect
115

andimprovehumanhealthandinparticulartocombatthemajorcross-borderhealth
scourges,measuresconcerningmonitoring,earlywarningoIandcombatingserious
cross-borderthreatstohealth,andmeasureswhichhaveastheirdirectobjectivethe
protectionoIpublichealthregardingtobaccoandtheabuseoIalcohol,excludingany
harmonisationoIthelawsandregulationsoItheMemberStates.
6.TheCouncil,onaproposalIromtheCommission,mayalsoadopt
recommendationsIorthepurposessetoutinthisArticle.
7.UnionactionshallrespecttheresponsibilitiesoItheMemberStatesIorthe
deIinitionoItheirhealthpolicyandIortheorganisationanddeliveryoIhealth
servicesandmedicalcare.TheresponsibilitiesoItheMemberStatesshallincludethe
managementoIhealthservicesandmedicalcareandtheallocationoItheresources
assignedtothem.ThemeasuresreIerredtoinparagraph4(a)shallnotaIIectnational
provisionsonthedonationormedicaluseoIorgansandblood.

TITLEXV

CONSUMERPROTECTION

Article 169

1.InordertopromotetheinterestsoIconsumersandtoensureahighleveloI
consumerprotection,theUnionshallcontributetoprotectingthehealth,saIetyand
economicinterestsoIconsumers,aswellastopromotingtheirrighttoinIormation,
educationandtoorganisethemselvesinordertosaIeguardtheirinterests.
2.TheUnionshallcontributetotheattainmentoItheobjectivesreIerredtoin
paragraph1through:
(a)measuresadoptedpursuanttoArticle114inthecontextoIthecompletionoIthe
internalmarket;
(b)measureswhichsupport,supplementandmonitorthepolicypursuedbythe
MemberStates.
3.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommittee,shall
adoptthemeasuresreIerredtoinparagraph2(b).
4.Measuresadoptedpursuanttoparagraph3shallnotpreventanyMemberState
Irommaintainingorintroducingmorestringentprotectivemeasures.Suchmeasures
mustbecompatiblewiththeTreaties.TheCommissionshallbenotiIiedoIthem.

116

TITLEXVI

TRANS-EUROPEANNETWORKS

Article 170

1.TohelpachievetheobjectivesreIerredtoinArticles26and174andtoenable
citizensoItheUnion,economicoperatorsandregionalandlocalcommunitiesto
deriveIullbeneIitIromthesetting-upoIanareawithoutinternalIrontiers,theUnion
shallcontributetotheestablishmentanddevelopmentoItrans-Europeannetworksin
theareasoItransport,telecommunicationsandenergyinIrastructures.
2.WithintheIrameworkoIasystemoIopenandcompetitivemarkets,actionbythe
UnionshallaimatpromotingtheinterconnectionandinteroperabilityoInational
networksaswellasaccesstosuchnetworks.ItshalltakeaccountinparticularoIthe
needtolinkisland,landlockedandperipheralregionswiththecentralregionsoIthe
Union.

Article 171

1.InordertoachievetheobjectivesreIerredtoinArticle170,theUnion:
shallestablishaseriesoIguidelinescoveringtheobjectives,prioritiesandbroad
linesoImeasuresenvisagedinthesphereoItrans-Europeannetworks;these
guidelinesshallidentiIyprojectsoIcommoninterest,
shallimplementanymeasuresthatmayprovenecessarytoensurethe
interoperabilityoIthenetworks,inparticularintheIieldoItechnicalstandardisation,
maysupportprojectsoIcommoninterestsupportedbyMemberStates,whichare
identiIiedintheIrameworkoItheguidelinesreIerredtointheIirstindent,particularly
throughIeasibilitystudies,loanguaranteesorinterest-ratesubsidies;theUnionmay
alsocontribute,throughtheCohesionFundsetuppursuanttoArticle177,tothe
IinancingoIspeciIicprojectsinMemberStatesintheareaoItransportinIrastructure.
TheUnionsactivitiesshalltakeintoaccountthepotentialeconomicviabilityoIthe
projects.
2.MemberStatesshall,inliaisonwiththeCommission,coordinateamongthemselves
thepoliciespursuedatnationallevelwhichmayhaveasigniIicantimpactonthe
achievementoItheobjectivesreIerredtoinArticle170.TheCommissionmay,in
closecooperationwiththeMemberState,takeanyuseIulinitiativetopromotesuch
coordination.
117

3.TheUnionmaydecidetocooperatewiththirdcountriestopromoteprojectsoI
mutualinterestandtoensuretheinteroperabilityoInetworks.

Article 172

TheguidelinesandothermeasuresreIerredtoinArticle171(1)shallbeadoptedby
theEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions.
GuidelinesandprojectsoIcommoninterestwhichrelatetotheterritoryoIaMember
StateshallrequiretheapprovaloItheMemberStateconcerned.

TITLEXVII

INDUSTRY

Article 173

1.TheUnionandtheMemberStatesshallensurethattheconditionsnecessaryIorthe
competitivenessoItheUnionsindustryexist.
Forthatpurpose,inaccordancewithasystemoIopenandcompetitivemarkets,their
actionshallbeaimedat:
speedinguptheadjustmentoIindustrytostructuralchanges,
encouraginganenvironmentIavourabletoinitiativeandtothedevelopmentoI
undertakingsthroughouttheUnion,particularlysmallandmedium-sized
undertakings,
encouraginganenvironmentIavourabletocooperationbetweenundertakings,
IosteringbetterexploitationoItheindustrialpotentialoIpoliciesoIinnovation,
researchandtechnologicaldevelopment.
2.TheMemberStatesshallconsulteachotherinliaisonwiththeCommissionand,
wherenecessary,shallcoordinatetheiraction.TheCommissionmaytakeanyuseIul
initiativetopromotesuchcoordination,inparticularinitiativesaimingatthe
establishmentoIguidelinesandindicators,theorganisationoIexchangeoIbest
practice,andthepreparationoIthenecessaryelementsIorperiodicmonitoringand
evaluation.TheEuropeanParliamentshallbekeptIullyinIormed.
118

3.TheUnionshallcontributetotheachievementoItheobjectivessetoutinparagraph
1throughthepoliciesandactivitiesitpursuesunderotherprovisionsoItheTreaties.
TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommittee,may
decideonspeciIicmeasuresinsupportoIactiontakenintheMemberStatesto
achievetheobjectivessetoutinparagraph1,excludinganyharmonisationoIthelaws
andregulationsoItheMemberStates.
ThistitleshallnotprovideabasisIortheintroductionbytheUnionoIanymeasure
whichcouldleadtoadistortionoIcompetitionorcontainstaxprovisionsor
provisionsrelatingtotherightsandinterestsoIemployedpersons.

TITLEXVIII

ECONOMIC,SOCIALANDTERRITORIALCOHESION

Article 174

Inordertopromoteitsoverallharmoniousdevelopment,theUnionshalldevelopand
pursueitsactionsleadingtothestrengtheningoIitseconomic,socialandterritorial
cohesion.
Inparticular,theUnionshallaimatreducingdisparitiesbetweenthelevelsoI
developmentoIthevariousregionsandthebackwardnessoItheleastIavoured
regions.
Amongtheregionsconcerned,particularattentionshallbepaidtoruralareas,areas
aIIectedbyindustrialtransition,andregionswhichsuIIerIromsevereandpermanent
naturalordemographichandicapssuchasthenorthernmostregionswithverylow
populationdensityandisland,cross-borderandmountainregions.

Article 175

MemberStatesshallconducttheireconomicpoliciesandshallcoordinatethemin
suchawayas,inaddition,toattaintheobjectivessetoutinArticle174.The
IormulationandimplementationoItheUnionspoliciesandactionsandthe
implementationoItheinternalmarketshalltakeintoaccounttheobjectivessetoutin
Article174andshallcontributetotheirachievement.TheUnionshallalsosupportthe
achievementoItheseobjectivesbytheactionittakesthroughtheStructuralFunds
(EuropeanAgriculturalGuidanceandGuaranteeFund,GuidanceSection;European
SocialFund;EuropeanRegionalDevelopmentFund),theEuropeanInvestmentBank
andtheotherexistingFinancialInstruments.
119

TheCommissionshallsubmitareporttotheEuropeanParliament,theCouncil,the
EconomicandSocialCommitteeandtheCommitteeoItheRegionseverythreeyears
ontheprogressmadetowardsachievingeconomic,socialandterritorialcohesionand
onthemannerinwhichthevariousmeansprovidedIorinthisArticlehave
contributedtoit.Thisreportshall,iInecessary,beaccompaniedbyappropriate
proposals.
IIspeciIicactionsprovenecessaryoutsidetheFundsandwithoutprejudicetothe
measuresdecideduponwithintheIrameworkoItheotherUnionpolicies,such
actionsmaybeadoptedbytheCouncilactinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions.

Article 176

TheEuropeanRegionalDevelopmentFundisintendedtohelptoredressthemain
regionalimbalancesintheUnionthroughparticipationinthedevelopmentand
structuraladjustmentoIregionswhosedevelopmentislaggingbehindandinthe
conversionoIdecliningindustrialregions.

Article 177

WithoutprejudicetoArticle178,theEuropeanParliamentandtheCouncil,actingby
meansoIregulationsinaccordancewiththeordinarylegislativeprocedureand
consultingtheEconomicandSocialCommitteeandtheCommitteeoItheRegions,
shalldeIinethetasks,priorityobjectivesandtheorganisationoItheStructuralFunds,
whichmayinvolvegroupingtheFunds.Thegeneralrulesapplicabletothemandthe
provisionsnecessarytoensuretheireIIectivenessandthecoordinationoItheFunds
withoneanotherandwiththeotherexistingFinancialInstrumentsshallalsobe
deIinedbythesameprocedure.
ACohesionFundsetupinaccordancewiththesameprocedureshallprovidea
IinancialcontributiontoprojectsintheIieldsoIenvironmentandtrans-European
networksintheareaoItransportinIrastructure.

Article 178

ImplementingregulationsrelatingtotheEuropeanRegionalDevelopmentFundshall
betakenbytheEuropeanParliamentandtheCouncil,actinginaccordancewiththe
ordinarylegislativeprocedureandaIterconsultingtheEconomicandSocial
CommitteeandtheCommitteeoItheRegions.
120

WithregardtotheEuropeanAgriculturalGuidanceandGuaranteeFund,Guidance
Section,andtheEuropeanSocialFund,Articles43and164respectivelyshall
continuetoapply.

TITLEXIX

RESEARCHANDTECHNOLOGICALDEVELOPMENTANDSPACE

Article 179

1.TheUnionshallhavetheobjectiveoIstrengtheningitsscientiIicandtechnological
basesbyachievingaEuropeanresearchareainwhichresearchers,scientiIic
knowledgeandtechnologycirculateIreely,andencouragingittobecomemore
competitive,includinginitsindustry,whilepromotingalltheresearchactivities
deemednecessarybyvirtueoIotherChaptersoItheTreaties.
2.ForthispurposetheUnionshall,throughouttheUnion,encourageundertakings,
includingsmallandmedium-sizedundertakings,researchcentresanduniversitiesin
theirresearchandtechnologicaldevelopmentactivitiesoIhighquality;itshall
supporttheireIIortstocooperatewithoneanother,aiming,notably,atpermitting
researcherstocooperateIreelyacrossbordersandatenablingundertakingstoexploit
theinternalmarketpotentialtotheIull,inparticularthroughtheopening-upoI
nationalpubliccontracts,thedeIinitionoIcommonstandardsandtheremovaloIlegal
andIiscalobstaclestothatcooperation.
3.AllUnionactivitiesundertheTreatiesintheareaoIresearchandtechnological
development,includingdemonstrationprojects,shallbedecidedonandimplemented
inaccordancewiththeprovisionsoIthistitle.

Article 180

Inpursuingtheseobjectives,theUnionshallcarryouttheIollowingactivities,
complementingtheactivitiescarriedoutintheMemberStates:
(a)implementationoIresearch,technologicaldevelopmentanddemonstration
programmes,bypromotingcooperationwithandbetweenundertakings,research
centresanduniversities;
(b)promotionoIcooperationintheIieldoIUnionresearch,technological
developmentanddemonstrationwiththirdcountriesandinternationalorganisations;
(c)disseminationandoptimisationoItheresultsoIactivitiesinUnionresearch,
technologicaldevelopmentanddemonstration;
121

(d)stimulationoIthetrainingandmobilityoIresearchersintheUnion.

Article 181

1.TheUnionandtheMemberStatesshallcoordinatetheirresearchandtechnological
developmentactivitiessoastoensurethatnationalpoliciesandUnionpolicyare
mutuallyconsistent.
2.InclosecooperationwiththeMemberState,theCommissionmaytakeanyuseIul
initiativetopromotethecoordinationreIerredtoinparagraph1,inparticular
initiativesaimingattheestablishmentoIguidelinesandindicators,theorganisationoI
exchangeoIbestpractice,andthepreparationoIthenecessaryelementsIorperiodic
monitoringandevaluation.TheEuropeanParliamentshallbekeptIullyinIormed.

Article 182

1.AmultiannualIrameworkprogramme,settingoutalltheactivitiesoItheUnion,
shallbeadoptedbytheEuropeanParliamentandtheCouncil,actinginaccordance
withtheordinarylegislativeprocedureaIterconsultingtheEconomicandSocial
Committee.
TheIrameworkprogrammeshall:
establishthescientiIicandtechnologicalobjectivestobeachievedbytheactivities
providedIorinArticle180andIixtherelevantpriorities,
indicatethebroadlinesoIsuchactivities,
IixthemaximumoverallamountandthedetailedrulesIorUnionIinancial
participationintheIrameworkprogrammeandtherespectivesharesineachoIthe
activitiesprovidedIor.
2.TheIrameworkprogrammeshallbeadaptedorsupplementedasthesituation
changes.
3.TheIrameworkprogrammeshallbeimplementedthroughspeciIicprogrammes
developedwithineachactivity.EachspeciIicprogrammeshalldeIinethedetailed
rulesIorimplementingit,IixitsdurationandprovideIorthemeansdeemed
necessary.ThesumoItheamountsdeemednecessary,IixedinthespeciIic
programmes,maynotexceedtheoverallmaximumamountIixedIortheIramework
programmeandeachactivity.
4.TheCouncil,actinginaccordancewithaspeciallegislativeprocedureandaIter
consultingtheEuropeanParliamentandtheEconomicandSocialCommittee,shall
adoptthespeciIicprogrammes.
122

5.AsacomplementtotheactivitiesplannedinthemultiannualIramework
programme,theEuropeanParliamentandtheCouncil,actinginaccordancewiththe
ordinarylegislativeprocedureandaIterconsultingtheEconomicandSocial
Committee,shallestablishthemeasuresnecessaryIortheimplementationoIthe
Europeanresearcharea.

Article 183

FortheimplementationoIthemultiannualIrameworkprogrammetheUnionshall:
determinetherulesIortheparticipationoIundertakings,researchcentresand
universities,
laydowntherulesgoverningthedisseminationoIresearchresults.

Article 184

InimplementingthemultiannualIrameworkprogramme,supplementaryprogrammes
maybedecidedoninvolvingtheparticipationoIcertainMemberStatesonly,which
shallIinancethemsubjecttopossibleUnionparticipation.
TheUnionshalladopttherulesapplicabletosupplementaryprogrammes,particularly
asregardsthedisseminationoIknowledgeandaccessbyotherMemberStates.

Article 185

InimplementingthemultiannualIrameworkprogramme,theUnionmaymake
provision,inagreementwiththeMemberStatesconcerned,Iorparticipationin
researchanddevelopmentprogrammesundertakenbyseveralMemberStates,
includingparticipationinthestructurescreatedIortheexecutionoIthose
programmes.

Article 186

InimplementingthemultiannualIrameworkprogrammetheUnionmaymake
provisionIorcooperationinUnionresearch,technologicaldevelopmentand
demonstrationwiththirdcountriesorinternationalorganisations.
ThedetailedarrangementsIorsuchcooperationmaybethesubjectoIagreements
betweentheUnionandthethirdpartiesconcerned.
123

Article 187

TheUnionmaysetupjointundertakingsoranyotherstructurenecessaryIorthe
eIIicientexecutionoIUnionresearch,technologicaldevelopmentanddemonstration
programmes.

Article 188

TheCouncil,onaproposalIromtheCommissionandaIterconsultingtheEuropean
ParliamentandtheEconomicandSocialCommittee,shalladopttheprovisions
reIerredtoinArticle187.
TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommittee,shall
adopttheprovisionsreIerredtoinArticles183,184and185.AdoptionoIthe
supplementaryprogrammesshallrequiretheagreementoItheMemberStates
concerned.

Article 189

1.TopromotescientiIicandtechnicalprogress,industrialcompetitivenessandthe
implementationoIitspolicies,theUnionshalldrawupaEuropeanspacepolicy.To
thisend,itmaypromotejointinitiatives,supportresearchandtechnological
developmentandcoordinatetheeIIortsneededIortheexplorationandexploitationoI
space.
2.TocontributetoattainingtheobjectivesreIerredtoinparagraph1,theEuropean
ParliamentandtheCouncil,actinginaccordancewiththeordinarylegislative
procedure,shallestablishthenecessarymeasures,whichmaytaketheIormoIa
Europeanspaceprogramme,excludinganyharmonisationoIthelawsandregulations
oItheMemberStates.
3.TheUnionshallestablishanyappropriaterelationswiththeEuropeanSpace
Agency.
4.ThisArticleshallbewithoutprejudicetotheotherprovisionsoIthisTitle.

Article 190

124

AtthebeginningoIeachyeartheCommissionshallsendareporttotheEuropean
ParliamentandtotheCouncil.ThereportshallincludeinIormationonresearchand
technologicaldevelopmentactivitiesandthedisseminationoIresultsduringthe
previousyear,andtheworkprogrammeIorthecurrentyear.

TITLEXX

ENVIRONMENT

Article 191

1.UnionpolicyontheenvironmentshallcontributetopursuitoItheIollowing
objectives:
preserving,protectingandimprovingthequalityoItheenvironment,
protectinghumanhealth,
prudentandrationalutilisationoInaturalresources,
promotingmeasuresatinternationalleveltodealwithregionalorworldwide
environmentalproblems,andinparticularcombatingclimatechange.
2.UnionpolicyontheenvironmentshallaimatahighleveloIprotectiontakinginto
accountthediversityoIsituationsinthevariousregionsoItheUnion.Itshallbe
basedontheprecautionaryprincipleandontheprinciplesthatpreventiveaction
shouldbetaken,thatenvironmentaldamageshouldasapriorityberectiIiedatsource
andthatthepollutershouldpay.
Inthiscontext,harmonisationmeasuresansweringenvironmentalprotection
requirementsshallinclude,whereappropriate,asaIeguardclauseallowingMember
Statestotakeprovisionalmeasures,Iornon-economicenvironmentalreasons,subject
toaprocedureoIinspectionbytheUnion.
3.Inpreparingitspolicyontheenvironment,theUnionshalltakeaccountoI:
availablescientiIicandtechnicaldata,
environmentalconditionsinthevariousregionsoItheUnion,
thepotentialbeneIitsandcostsoIactionorlackoIaction,
theeconomicandsocialdevelopmentoItheUnionasawholeandthebalanced
developmentoIitsregions.
125

4.WithintheirrespectivespheresoIcompetence,theUnionandtheMemberStates
shallcooperatewiththirdcountriesandwiththecompetentinternational
organisations.ThearrangementsIorUnioncooperationmaybethesubjectoI
agreementsbetweentheUnionandthethirdpartiesconcerned.
TheprevioussubparagraphshallbewithoutprejudicetoMemberStatescompetence
tonegotiateininternationalbodiesandtoconcludeinternationalagreements.

Article 192

1.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedureandaIterconsultingtheEconomicandSocialCommitteeand
theCommitteeoItheRegions,shalldecidewhatactionistobetakenbytheUnionin
ordertoachievetheobjectivesreIerredtoinArticle191.
2.BywayoIderogationIromthedecision-makingprocedureprovidedIorin
paragraph1andwithoutprejudicetoArticle114,theCouncil,actingunanimouslyin
accordancewithaspeciallegislativeprocedure,andaIterconsultingtheEuropean
Parliament,theEconomicandSocialCommitteeandtheCommitteeoItheRegions,
shalladopt:
(a)provisionsprimarilyoIaIiscalnature;
(b)measuresaIIecting:
townandcountryplanning,
quantitativemanagementoIwaterresourcesoraIIecting,directlyorindirectly,the
availabilityoIthoseresources,
landuse,withtheexceptionoIwastemanagement;
(c)measuressigniIicantlyaIIectingaMemberStateschoicebetweendiIIerentenergy
sourcesandthegeneralstructureoIitsenergysupply.
TheCouncil,actingunanimouslyonaproposalIromtheCommissionandaIter
consultingtheEuropeanParliament,theEconomicandSocialCommitteeandthe
CommitteeoItheRegions,maymaketheordinarylegislativeprocedureapplicableto
themattersreIerredtointheIirstsubparagraph.
3.Generalactionprogrammessettingoutpriorityobjectivestobeattainedshallbe
adoptedbytheEuropeanParliamentandtheCouncil,actinginaccordancewiththe
ordinarylegislativeprocedureandaIterconsultingtheEconomicandSocial
CommitteeandtheCommitteeoItheRegions.
ThemeasuresnecessaryIortheimplementationoItheseprogrammesshallbeadopted
underthetermsoIparagraph1or2,asthecasemaybe.
4.WithoutprejudicetocertainmeasuresadoptedbytheUnion,theMemberStates
shallIinanceandimplementtheenvironmentpolicy.
126

5.Withoutprejudicetotheprinciplethatthepollutershouldpay,iIameasurebased
ontheprovisionsoIparagraph1involvescostsdeemeddisproportionateIorthe
publicauthoritiesoIaMemberState,suchmeasureshalllaydownappropriate
provisionsintheIormoI:
temporaryderogations,and/or
IinancialsupportIromtheCohesionFundsetuppursuanttoArticle177.

Article 193

TheprotectivemeasuresadoptedpursuanttoArticle192shallnotpreventany
MemberStateIrommaintainingorintroducingmorestringentprotectivemeasures.
SuchmeasuresmustbecompatiblewiththeTreaties.TheyshallbenotiIiedtothe
Commission.

TITLEXXI

ENERGY

Article 194

1.InthecontextoItheestablishmentandIunctioningoItheinternalmarketandwith
regardIortheneedtopreserveandimprovetheenvironment,theUnionspolicyon
energyshallaim,inaspiritoIsolidaritybetweenMemberStates,to:
(a)ensuretheIunctioningoItheenergymarket;

(b)ensuresecurityoIenergysupplyintheUnion;and

(c)promoteenergyeIIiciencyandenergysavingandthedevelopmentoInewand
renewableIormsoIenergy;and

(d)promotetheinterconnectionoIenergynetworks.
2.WithoutprejudicetotheapplicationoIotherprovisionsoItheTreaties,the
EuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shallestablishthemeasuresnecessarytoachievetheobjectives
inparagraph1.SuchmeasuresshallbeadoptedaIterconsultationoItheEconomic
andSocialCommitteeandtheCommitteeoItheRegions.
127

SuchmeasuresshallnotaIIectaMemberStatesrighttodeterminetheconditionsIor
exploitingitsenergyresources,itschoicebetweendiIIerentenergysourcesandthe
generalstructureoIitsenergysupply,withoutprejudicetoArticle192(2)(c).
3.BywayoIderogationIromparagraph2,theCouncil,actinginaccordancewitha
speciallegislativeprocedure,shallunanimouslyandaIterconsultingtheEuropean
Parliament,establishthemeasuresreIerredtothereinwhentheyareprimarilyoIa
Iiscalnature.

TITLEXXII

TOURISM

Article 195

1.TheUnionshallcomplementtheactionoItheMemberStatesinthetourismsector,
inparticularbypromotingthecompetitivenessoIUnionundertakingsinthatsector.

Tothatend,Unionactionshallbeaimedat:

(a)encouragingthecreationoIaIavourableenvironmentIorthedevelopmentoI
undertakingsinthissector;

(b)promotingcooperationbetweentheMemberStates,particularlybytheexchange
oIgoodpractice.

2.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shallestablishspeciIicmeasurestocomplementactionswithin
theMemberStatestoachievetheobjectivesreIerredtointhisArticle,excludingany
harmonisationoIthelawsandregulationsoItheMemberStates.

TITLEXXIII

CIVILPROTECTION

Article 196

128

1.TheUnionshallencouragecooperationbetweenMemberStatesinorderto
improvetheeIIectivenessoIsystemsIorpreventingandprotectingagainstnaturalor
man-madedisasters.
TheUnionsactionshallaimto:
(a)supportandcomplementMemberStatesactionatnational,regionalandlocal
levelinriskprevention,inpreparingtheircivil-protectionpersonnelandin
respondingtonaturalorman-madedisasterswithintheUnion;

(b)promoteswiIt,eIIectiveoperationalcooperationwithintheUnionbetween
nationalcivil-protectionservices;

(c)promoteconsistencyininternationalcivil-protectionwork.

2.TheEuropeanParliamentandCouncil,actinginaccordancewiththeordinary
legislativeprocedureshallestablishthemeasuresnecessarytohelpachievethe
objectivesreIerredtoinparagraph1,excludinganyharmonisationoIthelawsand
regulationsoItheMemberStates.

TITLEXXIV

ADMINISTRATIVECO-OPERATION

Article 197

1.EIIectiveimplementationoIUnionlawbytheMemberStates,whichisessential
IortheproperIunctioningoItheUnion,shallberegardedasamatteroIcommon
interest.

2.TheUnionmaysupporttheeIIortsoIMemberStatestoimprovetheir
administrativecapacitytoimplementUnionlaw.SuchactionmayincludeIacilitating
theexchangeoIinIormationandoIcivilservantsaswellassupportingtraining
schemes.NoMemberStateshallbeobligedtoavailitselIoIsuchsupport.The
EuropeanParliamentandtheCouncil,actingbymeansoIregulationsinaccordance
withtheordinarylegislativeprocedure,shallestablishthenecessarymeasurestothis
end,excludinganyharmonisationoIthelawsandregulationsoItheMemberStates.

3.ThisArticleshallbewithoutprejudicetotheobligationsoItheMemberStatesto
implementUnionlawortotheprerogativesanddutiesoItheCommission.Itshall
alsobewithoutprejudicetootherprovisionsoItheTreatiesprovidingIor
administrativecooperationamongtheMemberStatesandbetweenthemandthe
Union.

129

PARTFOUR

ASSOCIATIONOFTHEOVERSEASCOUNTRIESANDTERRITORIES

Article 198

TheMemberStatesagreetoassociatewiththeUnionthenon-Europeancountriesand
territorieswhichhavespecialrelationswithDenmark,France,theNetherlandsand
theUnitedKingdom.Thesecountriesandterritories(hereinaItercalledthecountries
andterritories)arelistedinAnnexII.
ThepurposeoIassociationshallbetopromotetheeconomicandsocialdevelopment
oIthecountriesandterritoriesandtoestablishcloseeconomicrelationsbetweenthem
andtheUnionasawhole.
InaccordancewiththeprinciplessetoutinthepreambletothisTreaty,association
shallserveprimarilytoIurthertheinterestsandprosperityoItheinhabitantsoIthese
countriesandterritoriesinordertoleadthemtotheeconomic,socialandcultural
developmenttowhichtheyaspire.

Article 199

AssociationshallhavetheIollowingobjectives.
1.MemberStatesshallapplytotheirtradewiththecountriesandterritoriesthesame
treatmentastheyaccordeachotherpursuanttotheTreaties.
2.EachcountryorterritoryshallapplytoitstradewithMemberStatesandwiththe
othercountriesandterritoriesthesametreatmentasthatwhichitappliestothe
EuropeanStatewithwhichishasspecialrelations.
3.TheMemberStatesshallcontributetotheinvestmentsrequiredIortheprogressive
developmentoIthesecountriesandterritories.
4.ForinvestmentsIinancedbytheUnion,participationintendersandsuppliesshall
beopenonequaltermstoallnaturalandlegalpersonswhoarenationalsoIaMember
StateoroIoneoIthecountriesandterritories.
5.InrelationsbetweenMemberStatesandthecountriesandterritoriestherightoI
establishmentoInationalsandcompaniesorIirmsshallberegulatedinaccordance
withtheprovisionsandprocedureslaiddownintheChapterrelatingtotherightoI
establishmentandonanon-discriminatorybasis,subjecttoanyspecialprovisionslaid
downpursuanttoArticle203.

130

Article 200

1.CustomsdutiesonimportsintotheMemberStatesoIgoodsoriginatinginthe
countriesandterritoriesshallbeprohibitedinconIormitywiththeprohibitionoI
customsdutiesbetweenMemberStatesinaccordancewiththeprovisionsoIthe
Treaties.
2.CustomsdutiesonimportsintoeachcountryorterritoryIromMemberStatesor
Iromtheothercountriesorterritoriesshallbeprohibitedinaccordancewiththe
provisionsoIArticle30.
3.Thecountriesandterritoriesmay,however,levycustomsdutieswhichmeetthe
needsoItheirdevelopmentandindustrialisationorproducerevenueIortheirbudgets.
ThedutiesreIerredtointheprecedingsubparagraphmaynotexceedtheleveloIthose
imposedonimportsoIproductsIromtheMemberStatewithwhicheachcountryor
territoryhasspecialrelations.
4.Paragraph2shallnotapplytocountriesandterritorieswhich,byreasonoIthe
particularinternationalobligationsbywhichtheyarebound,alreadyapplyanon-
discriminatorycustomstariII.
5.TheintroductionoIoranychangeincustomsdutiesimposedongoodsimported
intothecountriesandterritoriesshallnot,eitherinlaworinIact,giverisetoany
directorindirectdiscriminationbetweenimportsIromthevariousMemberStates.

Article 201

IItheleveloIthedutiesapplicabletogoodsIromathirdcountryonentryintoa
countryorterritoryisliable,whentheprovisionsoIArticle200(1)havebeenapplied,
tocausedeIlectionsoItradetothedetrimentoIanyMemberState,thelattermay
requesttheCommissiontoproposetotheotherMemberStatesthemeasuresneeded
toremedythesituation.

Article 202

Subjecttotheprovisionsrelatingtopublichealth,publicsecurityorpublicpolicy,
IreedomoImovementwithinMemberStatesIorworkersIromthecountriesand
territories,andwithinthecountriesandterritoriesIorworkersIromMemberStates,
shallberegulatedbyactsadoptedinaccordancewithArticle203.

131

Article 203

TheCouncil,actingunanimouslyonaproposalIromtheCommission,shall,onthe
basisoItheexperienceacquiredundertheassociationoIthecountriesandterritories
withtheUnionandoItheprinciplessetoutintheTreaties,laydownprovisionsas
regardsthedetailedrulesandtheprocedureIortheassociationoIthecountriesand
territorieswiththeUnion. Wheretheprovisionsinquestionareadoptedbythe
Councilinaccordancewithaspeciallegislativeprocedure,itshallactunanimouslyon
aproposalIromtheCommissionandaIterconsultingtheEuropeanParliament.

Article 204

TheprovisionsoIArticles198to203shallapplytoGreenland,subjecttothespeciIic
provisionsIorGreenlandsetoutintheProtocolonspecialarrangementsIor
Greenland,annexedtotheTreaties.

PARTFIVE

EXTERNALACTIONBYTHEUNION

TITLEI

GENERALPROVISIONSONTHEUNIONSEXTERNALACTION

Article 205

TheUnionsactionontheinternationalscene,pursuanttothisPart,shallbeguidedby
theprinciples,pursuetheobjectivesandbeconductedinaccordancewiththegeneral
provisionslaiddowninChapter1oITitleVoItheTreatyonEuropeanUnion.

132

TITLEII

COMMONCOMMERCIALPOLICY

Article 206

ByestablishingacustomsunioninaccordancewithArticles28to32,theUnionshall
contribute,inthecommoninterest,totheharmoniousdevelopmentoIworldtrade,the
progressiveabolitionoIrestrictionsoninternationaltradeandonIoreigndirect
investment,andtheloweringoIcustomsandotherbarriers.

Article 207

1.ThecommoncommercialpolicyshallbebasedonuniIormprinciples,particularly
withregardtochangesintariIIrates,theconclusionoItariIIandtradeagreements
relatingtotradeingoodsandservices,andthecommercialaspectsoIintellectual
property,Ioreigndirectinvestment,theachievementoIuniIormityinmeasuresoI
liberalisation,exportpolicyandmeasurestoprotecttradesuchasthosetobetakenin
theeventoIdumpingorsubsidies.Thecommoncommercialpolicyshallbe
conductedinthecontextoItheprinciplesandobjectivesoItheUnionsexternal
action.

2.TheEuropeanParliamentandtheCouncil,actingbymeansoIregulationsin
accordancewiththeordinarylegislativeprocedure,shalladoptthemeasuresdeIining
theIrameworkIorimplementingthecommoncommercialpolicy.
3.Whereagreementswithoneormorethirdcountriesorinternationalorganisations
needtobenegotiatedandconcluded,Article218shallapply,subjecttothespecial
provisionsoIthisArticle.
TheCommissionshallmakerecommendationstotheCouncil,whichshallauthoriseit
toopenthenecessarynegotiations.TheCouncilandtheCommissionshallbe
responsibleIorensuringthattheagreementsnegotiatedarecompatiblewithinternal
Unionpoliciesandrules.
TheCommissionshallconductthesenegotiationsinconsultationwithaspecial
committeeappointedbytheCounciltoassisttheCommissioninthistaskandwithin
theIrameworkoIsuchdirectivesastheCouncilmayissuetoit.TheCommission
shallreportregularlytothespecialcommitteeandtotheEuropeanParliamentonthe
progressoInegotiations.
4.ForthenegotiationandconclusionoItheagreementsreIerredtoinparagraph3,the
CouncilshallactbyaqualiIiedmajority.
133

ForthenegotiationandconclusionoIagreementsintheIieldsoItradeinservicesand
thecommercialaspectsoIintellectualproperty,aswellasIoreigndirectinvestment,
theCouncilshallactunanimouslywheresuchagreementsincludeprovisionsIor
whichunanimityisrequiredIortheadoptionoIinternalrules.
TheCouncilshallalsoactunanimouslyIorthenegotiationandconclusionoI
agreements:
(a)intheIieldoItradeinculturalandaudiovisualservices,wheretheseagreements
riskprejudicingtheUnionsculturalandlinguisticdiversity;

(b)intheIieldoItradeinsocial,educationandhealthservices,wherethese
agreementsriskseriouslydisturbingthenationalorganisationoIsuchservicesand
prejudicingtheresponsibilityoIMemberStatestodeliverthem.
5.ThenegotiationandconclusionoIinternationalagreementsintheIieldoItransport
shallbesubjecttoTitleVIoIPartThreeandtoArticle218.
6.TheexerciseoIthecompetencesconIerredbythisArticleintheIieldoIthe
commoncommercialpolicyshallnotaIIectthedelimitationoIcompetencesbetween
theUnionandtheMemberStates,andshallnotleadtoharmonisationoIlegislativeor
regulatoryprovisionsoItheMemberStatesinsoIarastheTreatiesexcludesuch
harmonisation.

TITLEIII

COOPERATIONWITHTHIRDCOUNTRIESANDHUMANITARIANAID

CHAPTER1

DEVELOPMENTCOOPERATION

Article 208

1.UnionpolicyintheIieldoIdevelopmentcooperationshallbeconductedwithinthe
IrameworkoItheprinciplesandobjectivesoItheUnionsexternalaction.The
UnionsdevelopmentcooperationpolicyandthatoItheMemberStatescomplement
andreinIorceeachother.
TheUnionsdevelopmentcooperationpolicyshallhaveasitsprimaryobjectivethe
reductionand,inthelongterm,theeradicationoIpoverty.TheUnionshalltake
accountoItheobjectivesoIdevelopmentcooperationinthepoliciesthatit
implementswhicharelikelytoaIIectdevelopingcountries.
134

2.
.
TheUnionandtheMemberStatesshallcomplywiththecommitmentsandtake
accountoItheobjectivestheyhaveapprovedinthecontextoItheUnitedNationsand
othercompetentinternationalorganisations.

Article 209

1.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shalladoptthemeasuresnecessaryIortheimplementationoI
developmentcooperationpolicy,whichmayrelatetomultiannualcooperation
programmeswithdevelopingcountriesorprogrammeswithathematicapproach.
2.TheUnionmayconcludewiththirdcountriesandcompetentinternational
organisationsanyagreementhelpingtoachievetheobjectivesreIerredtoinArticle21
oItheTreatyonEuropeanUnionandinArticle208oIthisTreaty.
TheIirstsubparagraphshallbewithoutprejudicetoMemberStatescompetenceto
negotiateininternationalbodiesandtoconcludeagreements.
3.TheEuropeanInvestmentBankshallcontribute,underthetermslaiddowninits
Statute,totheimplementationoIthemeasuresreIerredtoinparagraph1.

Article 210

1.InordertopromotethecomplementarityandeIIiciencyoItheiraction,theUnion
andtheMemberStatesshallcoordinatetheirpoliciesondevelopmentcooperationand
shallconsulteachotherontheiraidprogrammes,includingininternational
organisationsandduringinternationalconIerences.Theymayundertakejointaction.
MemberStatesshallcontributeiInecessarytotheimplementationoIUnionaid
programmes.
2.TheCommissionmaytakeanyuseIulinitiativetopromotethecoordination
reIerredtoinparagraph1.

Article 211

WithintheirrespectivespheresoIcompetence,theUnionandtheMemberStatesshall
cooperatewiththirdcountriesandwiththecompetentinternationalorganisations.
135

CHAPTER2

ECONOMIC,FINANCIALANDTECHNICALCOOPERATIONWITHTHIRD
COUNTRIES

Article 212

1.WithoutprejudicetotheotherprovisionsoItheTreaties,andinparticular
Articles208to211,theUnionshallcarryouteconomic,Iinancialandtechnical
cooperationmeasures,includingassistance,inparticularIinancialassistance,with
thirdcountriesotherthandevelopingcountries.Suchmeasuresshallbeconsistent
withthedevelopmentpolicyoItheUnionandshallbecarriedoutwithinthe
IrameworkoItheprinciplesandobjectivesoIitsexternalaction.TheUnions
measuresandthoseoItheMemberStatesshallcomplementandreinIorceeachother.
2.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shalladoptthemeasuresnecessaryIortheimplementationoI
paragraph1.
3.WithintheirrespectivespheresoIcompetence,theUnionandtheMemberStates
shallcooperatewiththirdcountriesandthecompetentinternationalorganisations.
ThearrangementsIorUnioncooperationmaybethesubjectoIagreementsbetween
theUnionandthethirdpartiesconcerned.
TheIirstsubparagraphshallbewithoutprejudicetotheMemberStatescompetence
tonegotiateininternationalbodiesandtoconcludeinternationalagreements.

Article 213

WhenthesituationinathirdcountryrequiresurgentIinancialassistanceIromthe
Union,theCouncilshalladoptthenecessarydecisionsonaproposalIromthe
Commission.

CHAPTER3

HUMANITARIANAID

136

Article 214

1.TheUnionsoperationsintheIieldoIhumanitarianaidshallbeconductedwithin
theIrameworkoItheprinciplesandobjectivesoItheexternalactionoItheUnion.
SuchoperationsshallbeintendedtoprovideadhocassistanceandrelieIand
protectionIorpeopleinthirdcountrieswhoarevictimsoInaturalorman-made
disasters,inordertomeetthehumanitarianneedsresultingIromthesediIIerent
situations.TheUnionsoperationsandthoseoItheMemberStatesshallcomplement
andreinIorceeachother.

2.Humanitarianaidoperationsshallbeconductedincompliancewiththeprinciples
oIinternationallawandwiththeprinciplesoIimpartiality,neutralityandnon-
discrimination.

3.TheEuropean ParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,shallestablishthemeasuresdeIiningtheIrameworkwithin
whichtheUnionshumanitarianaidoperationsshallbeimplemented.
4.TheUnionmayconcludewiththirdcountriesandcompetentinternational
organisationsanyagreementhelpingtoachievetheobjectivesreIerredtoin
paragraph1andinArticle21oItheTreatyonEuropeanUnion.
TheIirstsubparagraphshallbewithoutprejudicetoMemberStatescompetenceto
negotiateininternationalbodiesandtoconcludeagreements.
5.InordertoestablishaIrameworkIorjointcontributionsIromyoungEuropeansto
thehumanitarianaidoperationsoItheUnion,aEuropeanVoluntaryHumanitarian
AidCorpsshallbesetup. TheEuropeanParliamentandtheCouncil,actingbymeans
oIregulationsinaccordancewiththeordinarylegislativeprocedure,shalldetermine
therulesandproceduresIortheoperationoItheCorps.
6.TheCommissionmaytakeanyuseIulinitiativetopromotecoordinationbetween
actionsoItheUnionandthoseoItheMemberStates,inordertoenhancethe
eIIiciencyandcomplementarityoIUnionandnationalhumanitarianaidmeasures.
7.TheUnionshallensurethatitshumanitarianaidoperationsarecoordinatedand
consistentwiththoseoIinternationalorganisationsandbodies,inparticularthose
IormingpartoItheUnitedNationssystem.

TITLEIV

RESTRICTIVEMEASURES

Article 215

137

1.Whereadecision,adoptedinaccordancewithChapter2oITitleVoItheTreatyon
EuropeanUnion,providesIortheinterruptionorreduction,inpartorcompletely,oI
economicandIinancialrelationswithoneormorethirdcountries,theCouncil,acting
byaqualiIiedmajorityonajointproposalIromtheHighRepresentativeoItheUnion
IorForeignAIIairsandSecurityPolicyandtheCommission,shalladoptthe
necessarymeasures.ItshallinIormtheEuropeanParliamentthereoI.
2.WhereadecisionadoptedinaccordancewithChapter2oITitleVoItheTreatyon
EuropeanUnionsoprovides,theCouncilmayadoptrestrictivemeasuresunderthe
procedurereIerredtoinparagraph1againstnaturalorlegalpersonsandgroupsor
non-Stateentities.
3.TheactsreIerredtointhisArticleshallincludenecessaryprovisionsonlegal
saIeguards.

TITLEV

INTERNATIONALAGREEMENTS

Article 216

1.TheUnionmayconcludeanagreementwithoneormorethirdcountriesor
internationalorganisationswheretheTreatiessoprovidesorwheretheconclusionoI
anagreementisnecessaryinordertoachieve,withintheIrameworkoItheUnions
policies,oneoItheobjectivesreIerredtointheTreaties,orisprovidedIorinalegally
bindingactoItheUnionorislikelytoaIIectcommonrulesoraltertheirscope.
2.AgreementsconcludedbytheUnionarebindingontheinstitutionsoItheUnion
andonitsMemberStates.

Article 217

TheUnionmayconcludewithoneormorethirdcountriesorinternational
organisationsagreementsestablishinganassociationinvolvingreciprocalrightsand
obligations,commonactionandspecialprocedure.

Article 218

138

1.WithoutprejudicetothespeciIicprovisionslaiddowninArticle207,agreements
betweentheUnionandthirdcountriesorinternationalorganisationsshallbe
negotiatedandconcludedinaccordancewiththeIollowingprocedure.

2.TheCouncilshallauthorisetheopeningoInegotiations,adoptnegotiating
directives,authorisethesigningoIagreementsandconcludethem.

3.TheCommission,ortheHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicywheretheagreementenvisagedrelatesexclusivelyorprincipallyto
thecommonIoreignandsecuritypolicy,shallsubmitrecommendationstothe
Council,whichshalladoptadecisionauthorisingtheopeningoInegotiationsand,
dependingonthesubjectoItheagreementenvisaged,nominatingtheUnions
negotiatorortheheadoItheUnionsnegotiatingteam.

4.TheCouncilmayaddressdirectivestothenegotiatoranddesignateaspecial
committeeinconsultationwithwhichthenegotiationsmustbeconducted.

5.TheCouncil,onaproposalbythenegotiator,shalladoptadecisionauthorisingthe
signingoItheagreementand,iInecessary,itsprovisionalapplicationbeIoreentry
intoIorce.
6.TheCouncil,onaproposalbythenegotiator,shalladoptadecisionconcludingthe
agreement.
ExceptwhereagreementsrelateexclusivelytothecommonIoreignandsecurity
policy,theCouncilshalladoptthedecisionconcludingtheagreement:
(a)aIterobtainingtheconsentoItheEuropeanParliamentintheIollowingcases:

(i)associationagreements;

(ii)agreementonUnionaccessiontotheEuropeanConventionIortheProtectionoI
HumanRightsandFundamentalFreedoms;

(iii)agreementsestablishingaspeciIicinstitutionalIrameworkbyorganising
cooperationprocedures;

(iv)agreementswithimportantbudgetaryimplicationsIortheUnion;

(v)agreementscoveringIieldstowhicheithertheordinarylegislativeprocedure
applies,orthespeciallegislativeprocedurewhereconsentbytheEuropean
Parliamentisrequired.
TheEuropeanParliamentandtheCouncilmay,inanurgentsituation,agreeupona
time-limitIorconsent.
(b)aIterconsultingtheEuropeanParliamentinothercases.TheEuropeanParliament
shalldeliveritsopinionwithinatime-limitwhichtheCouncilmaysetdependingon
theurgencyoIthematter.IntheabsenceoIanopinionwithinthattime-limit,the
Councilmayact.

7.Whenconcludinganagreement,theCouncilmay,bywayoIderogationIrom
paragraphs5,6and9,authorisethenegotiatortoapproveontheUnionsbehalI
139

modiIicationstotheagreementwhereitprovidesIorthemtobeadoptedbya
simpliIiedprocedureorbyabodysetupbytheagreement.TheCouncilmayattach
speciIicconditionstosuchauthorisation.
8.TheCouncilshallactbyaqualiIiedmajoritythroughouttheprocedure.
However,itshallactunanimouslywhentheagreementcoversaIieldIorwhich
unanimityisrequiredIortheadoptionoIanactoItheUnionaswellasIorassociation
agreementsandtheagreementsreIerredtoinArticle212withtheStateswhichare
candidatesIoraccession.TheCouncilshallactunanimouslyIortheagreementon
accessionoItheUniontotheEuropeanConventionIortheProtectionoIHuman
RightsandFundamentalFreedoms;thedecisionconcludingthisagreementshallenter
intoIorceaIterithasbeenapprovedbytheMemberStatesinaccordancewiththeir
respectiveconstitutionalrequirements.
9.TheCouncil,onaproposalIromtheCommissionortheHighRepresentativeoIthe
UnionIorForeignAIIairsandSecurityPolicy,shalladoptadecisionsuspending
applicationoIanagreementandestablishingthepositionstobeadoptedonthe
UnionsbehalIinabodysetupbyanagreement,whenthatbodyiscalleduponto
adoptactshavinglegaleIIects,withtheexceptionoIactssupplementingoramending
theinstitutionalIrameworkoItheagreement.
10.TheEuropeanParliamentshallbeimmediatelyandIullyinIormedatallstagesoI
theprocedure.
11.AMemberState,theEuropeanParliament,theCouncilortheCommissionmay
obtaintheopinionoItheCourtoIJusticeastowhetheranagreementenvisagedis
compatiblewiththeTreaties.WheretheopinionoItheCourtisadverse,the
agreementenvisagedmaynotenterintoIorceunlessitisamendedortheTreatiesare
revised.

Article 219

1.BywayoIderogationIromArticle218(1),theCouncil,eitherona
recommendationIromtheEuropeanCentralBankoronarecommendationIromthe
CommissionandaIterconsultingtheEuropeanCentralBank,inanendeavourto
reachaconsensusconsistentwiththeobjectiveoIpricestability,mayconclude
Iormalagreementsonanexchange-ratesystemIortheeuroinrelationtocurrenciesoI
thirdStates.TheCouncilshallactunanimouslyaIterconsultingtheEuropean
ParliamentandinaccordancewiththeprocedureprovidedIorinparagraph3.
TheCouncilmay,eitheronarecommendationIromtheEuropeanCentralBankoron
arecommendationIromtheCommission,andaIterconsultingtheEuropeanCentral
Bank,inanendeavourtoreachaconsensusconsistentwiththeobjectiveoIprice
stability,adopt,adjustorabandonthecentralratesoItheeurowithintheexchange-
ratesystem.ThePresidentoItheCouncilshallinIormtheEuropeanParliamentoIthe
adoption,adjustmentorabandonmentoItheeurocentralrates.
140

2.IntheabsenceoIanexchange-ratesysteminrelationtooneormorecurrenciesoI
thirdStatesasreIerredtoinparagraph1,theCouncil,actingeitherona
recommendationIromtheCommissionandaIterconsultingtheEuropeanCentral
BankoronarecommendationIromtheEuropeanCentralBank,mayIormulate
generalorientationsIorexchange-ratepolicyinrelationtothesecurrencies.These
generalorientationsshallbewithoutprejudicetotheprimaryobjectiveoItheESCB
tomaintainpricestability.
3.BywayoIderogationIromArticle218,whereagreementsconcerningmonetaryor
IoreignexchangeregimemattersneedtobenegotiatedbytheUnionwithoneormore
thirdStatesorinternationalorganisations,theCouncil,actingonarecommendation
IromtheCommissionandaIterconsultingtheEuropeanCentralBank,shalldecide
thearrangementsIorthenegotiationandIortheconclusionoIsuchagreements.These
arrangementsshallensurethattheUnionexpressesasingleposition.TheCommission
shallbeIullyassociatedwiththenegotiations.
4.WithoutprejudicetoUnioncompetenceandUnionagreementsasregards
economicandmonetaryunion,MemberStatesmaynegotiateininternationalbodies
andconcludeinternationalagreements.

TITLEVI

THEUNIONSRELATIONSWITHINTERNATIONALORGANISATIONSAND
THIRD
COUNTRIESANDUNIONDELEGATIONS

Article 220

1.TheUnionshallestablishallappropriateIormsoIcooperationwiththeorgansoI
theUnitedNationsanditsspecialisedagencies,theCounciloIEurope,the
OrganisationIorSecurityandCooperationinEuropeandtheOrganisationIor
EconomicCooperationandDevelopment.
TheUnionshallalsomaintainsuchrelationsasareappropriatewithother
internationalorganisations.
2.TheHighRepresentativeoItheUnionIorForeignAIIairsandSecurityPolicyshall
beinstructedtoimplementthisArticle.

Article 221

141

1.Uniondelegationsinthirdcountriesandatinternationalorganisationsshall
representtheUnion.
2.UniondelegationsshallbeplacedundertheauthorityoItheHighRepresentativeoI
theUnionIorForeignAIIairsandSecurityPolicy.Theyshallactinclosecooperation
withMemberStatesdiplomaticandconsularmissions.

TITLEVII

SOLIDARITYCLAUSE

Article 222

1.TheUnionanditsMemberStatesshallactjointlyinaspiritoIsolidarityiIa
MemberStateistheobjectoIaterroristattackorthevictimoIanaturalorman-made
disaster.TheUnionshallmobilisealltheinstrumentsatitsdisposal,includingthe
militaryresourcesmadeavailablebytheMemberStates,to:
(a)preventtheterroristthreatintheterritoryoItheMemberStates;

protectdemocraticinstitutionsandthecivilianpopulationIromanyterroristattack;

assistaMemberStateinitsterritory,attherequestoIitspoliticalauthorities,inthe
eventoIaterroristattack;
(b)assistaMemberStateinitsterritory,attherequestoIitspoliticalauthorities,in
theeventoIanaturalorman-madedisaster.
2.ShouldaMemberStatebetheobjectoIaterroristattackorthevictimoIanatural
orman-madedisaster,theotherMemberStatesshallassistitattherequestoIits
politicalauthorities.Tothatend,theMemberStatesshallcoordinatebetween
themselvesintheCouncil.
3.ThearrangementsIortheimplementationbytheUnionoIthissolidarityclause
shallbedeIinedbyadecisionadoptedbytheCouncilactingonajointproposalbythe
CommissionandtheHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicy.TheCouncilshallactinaccordancewithArticle31(1)oItheTreaty
onEuropeanUnionwherethisdecisionhasdeIenceimplications.TheEuropean
ParliamentshallbeinIormed.
ForthepurposesoIthisparagraphandwithoutprejudicetoArticle240,theCouncil
shallbeassistedbythePoliticalandSecurityCommitteewiththesupportoIthe
structuresdevelopedinthecontextoIthecommonsecurityanddeIencepolicyandby
theCommitteereIerredtoinArticle71;thetwocommitteesshall,iInecessary,
submitjointopinions.
4.TheEuropeanCouncilshallregularlyassessthethreatsIacingtheUnioninorderto
enabletheUnionanditsMemberStatestotakeeIIectiveaction.
142

PARTSIX

INSTITUTIONALANDFINANCIALPROVISIONS

TITLEI

PROVISIONSGOVERNINGTHEINSTITUTIONS

CHAPTER1

THEINSTITUTIONS

SECTION1

THEEUROPEANPARLIAMENT

Article 223

1.TheEuropeanParliamentshalldrawupaproposaltolaydowntheprovisions
necessaryIortheelectionoIitsmembersbydirectuniversalsuIIrageinaccordance
withauniIormprocedureinallMemberStatesorinaccordancewithprinciples
commontoallMemberStates.
TheCouncil,actingunanimouslyinaccordancewithaspeciallegislativeprocedure
andaIterobtainingtheconsentoItheEuropeanParliament,whichshallactbya
majorityoIitscomponentmembers,shalllaydownthenecessaryprovisions.These
provisionsshallenterintoIorceIollowingtheirapprovalbytheMemberStatesin
accordancewiththeirrespectiveconstitutionalrequirements.
2.TheEuropeanParliament,actingbymeansoIregulationsonitsowninitiativein
accordancewithaspeciallegislativeprocedure,aIterseekinganopinionIromthe
CommissionandwiththeapprovaloItheCouncil,shalllaydowntheregulationsand
generalconditionsgoverningtheperIormanceoIthedutiesoIitsMembers.Allrules
orconditionsrelatingtothetaxationoIMembersorIormerMembersshallrequire
unanimitywithintheCouncil.
143

Article 224

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,bymeansoIregulations,shalllaydowntheregulations
governingpoliticalpartiesatEuropeanlevelreIerredtoinArticle10(4)oItheTreaty
onEuropeanUnionandinparticulartherulesregardingtheirIunding.

Article 225

TheEuropeanParliamentmay,actingbyamajorityoIitscomponentmembers,
requesttheCommissiontosubmitanyappropriateproposalonmattersonwhichit
considersthataUnionactisrequiredIorthepurposeoIimplementingtheTreaties.II
theCommissiondoesnotsubmitaproposal,itshallinIormtheEuropeanParliament
oIthereasons.

Article 226

InthecourseoIitsduties,theEuropeanParliamentmay,attherequestoIaquarteroI
itscomponentMembers,setupatemporaryCommitteeoIInquirytoinvestigate,
withoutprejudicetothepowersconIerredbytheTreatiesonotherinstitutionsor
bodies,allegedcontraventionsormaladministrationintheimplementationoIUnion
law,exceptwheretheallegedIactsarebeingexaminedbeIoreacourtandwhilethe
caseisstillsubjecttolegalproceedings.
ThetemporaryCommitteeoIInquiryshallceasetoexistonthesubmissionoIits
report.
ThedetailedprovisionsgoverningtheexerciseoItherightoIinquiryshallbe
determinedbytheEuropeanParliament,actingbymeansoIregulationsonitsown
initiativeinaccordancewithaspeciallegislativeprocedure,aIterobtainingthe
consentoItheCouncilandtheCommission.

Article 227

AnycitizenoItheUnion,andanynaturalorlegalpersonresidingorhavingits
registeredoIIiceinaMemberState,shallhavetherighttoaddress,individuallyorin
associationwithothercitizensorpersons,apetitiontotheEuropeanParliamentona
matterwhichcomeswithintheUnionsIieldsoIactivityandwhichaIIectshim,heror
itdirectly.
144

Article 228

1.AEuropeanOmbudsman,electedbytheEuropeanParliament,shallbeempowered
toreceivecomplaintsIromanycitizenoItheUnionoranynaturalorlegalperson
residingorhavingitsregisteredoIIiceinaMemberStateconcerninginstancesoI
maladministrationintheactivitiesoItheUnioninstitutions,bodies,oIIicesor
agencies,withtheexceptionoItheCourtoIJusticeoItheEuropeanUnionactingin
itsjudicialrole.Heorsheshallexaminesuchcomplaintsandreportonthem.
Inaccordancewithhisduties,theOmbudsmanshallconductinquiriesIorwhichhe
Iindsgrounds,eitheronhisowninitiativeoronthebasisoIcomplaintssubmittedto
himdirectorthroughaMemberoItheEuropeanParliament,exceptwherethealleged
IactsareorhavebeenthesubjectoIlegalproceedings.WheretheOmbudsman
establishesaninstanceoImaladministration,heshallreIerthemattertothe
institution,body,oIIiceoragencyconcerned,whichshallhaveaperiodoIthree
monthsinwhichtoinIormhimoIitsviews.TheOmbudsmanshallthenIorwarda
reporttotheEuropeanParliamentandtheinstitution,body,oIIiceoragency
concerned.ThepersonlodgingthecomplaintshallbeinIormedoItheoutcomeoI
suchinquiries.
TheOmbudsmanshallsubmitanannualreporttotheEuropeanParliamentonthe
outcomeoIhisinquiries.
2.TheOmbudsmanshallbeelectedaItereachelectionoItheEuropeanParliamentIor
thedurationoIitstermoIoIIice.TheOmbudsmanshallbeeligibleIorreappointment.
TheOmbudsmanmaybedismissedbytheCourtoIJusticeattherequestoIthe
EuropeanParliamentiIhenolongerIulIilstheconditionsrequiredIorthe
perIormanceoIhisdutiesoriIheisguiltyoIseriousmisconduct.
3.TheOmbudsmanshallbecompletelyindependentintheperIormanceoIhisduties.
IntheperIormanceoIthosedutiesheshallneitherseeknortakeinstructionsIromany
Government,institution,body,oIIiceorentity.TheOmbudsmanmaynot,duringhis
termoIoIIice,engageinanyotheroccupation,whethergainIulornot.
4.TheEuropeanParliamentactingbymeansoIregulationsonitsowninitiativein
accordancewithaspeciallegislativeprocedureshall,aIterseekinganopinionIrom
theCommissionandwiththeapprovaloItheCouncil,laydowntheregulationsand
generalconditionsgoverningtheperIormanceoItheOmbudsmansduties.

Article 229

TheEuropeanParliamentshallholdanannualsession.Itshallmeet,withoutrequiring
tobeconvened,onthesecondTuesdayinMarch.
145

TheEuropeanParliamentmaymeetinextraordinarypart-sessionattherequestoIa
majorityoIitscomponentmembersorattherequestoItheCounciloroIthe
Commission.

Article 230

TheCommissionmayattendallthemeetingsandshall,atitsrequest,beheard.
TheCommissionshallreplyorallyorinwritingtoquestionsputtoitbytheEuropean
ParliamentorbyitsMembers.
TheEuropeanCouncilandtheCouncilshallbeheardbytheEuropeanParliamentin
accordancewiththeconditionslaiddownintheRulesoIProcedureoItheEuropean
CouncilandthoseoItheCouncil.

Article 231

SaveasotherwiseprovidedintheTreaties,theEuropeanParliamentshallactbya
majorityoIthevotescast.
TheRulesoIProcedureshalldeterminethequorum.

Article 232

TheEuropeanParliamentshalladoptitsRulesoIProcedure,actingbyamajorityoI
itsMembers.
TheproceedingsoItheEuropeanParliamentshallbepublishedinthemannerlaid
downintheTreatiesanditsRulesoIProcedure.

Article 233

TheEuropeanParliamentshalldiscussinopensessiontheannualgeneralreport
submittedtoitbytheCommission.

Article 234

146

IIamotionoIcensureontheactivitiesoItheCommissionistabledbeIoreit,the
EuropeanParliamentshallnotvotethereonuntilatleastthreedaysaIterthemotion
hasbeentabledandonlybyopenvote.
IIthemotionoIcensureiscarriedbyatwo-thirdsmajorityoIthevotescast,
representingamajorityoIthecomponentmembersoItheEuropeanParliament,the
membersoItheCommissionshallresignasabodyandtheHighRepresentativeoIthe
UnionIorForeignAIIairsandSecurityPolicyshallresignIromdutiesthatheorshe
carriesoutintheCommission.TheyshallremaininoIIiceandcontinuetodealwith
currentbusinessuntiltheyarereplacedinaccordancewithArticle17oItheTreatyon
EuropeanUnion.Inthiscase,thetermoIoIIiceoIthemembersoItheCommission
appointedtoreplacethemshallexpireonthedateonwhichthetermoIoIIiceoIthe
membersoItheCommissionobligedtoresignasabodywouldhaveexpired.

SECTION2

THEEUROPEANCOUNCIL

Article 235

1.Whereavoteistaken,anymemberoItheEuropeanCouncilmayalsoactonbehalI
oInotmorethanoneothermember.
Article16(4)oItheTreatyonEuropeanUnionandArticle238(2)oIthisTreatyshall
applytotheEuropeanCouncilwhenitisactingbyaqualiIiedmajority.Wherethe
EuropeanCouncildecidesbyvote,itsPresidentandthePresidentoItheCommission
shallnottakepartinthevote.
Abstentionsbymemberspresentinpersonorrepresentedshallnotpreventthe
adoptionbytheEuropeanCounciloIactswhichrequireunanimity.
2.ThePresidentoItheEuropeanParliamentmaybeinvitedtobeheardbythe
EuropeanCouncil.

3.TheEuropeanCouncilshallactbyasimplemajorityIorproceduralquestionsand
IortheadoptionoIitsRulesoIProcedure.

4.TheEuropeanCouncilshallbeassistedbytheGeneralSecretariatoItheCouncil.

Article 236

TheEuropeanCouncilshalladoptbyaqualiIiedmajority:
147

(a)adecisionestablishingthelistoICouncilconIigurations,otherthanthoseoIthe
GeneralAIIairsCouncilandoItheForeignAIIairsCouncil,inaccordancewith
Article16(6)oItheTreatyonEuropeanUnion;
(b)adecisiononthePresidencyoICouncilconIigurations,otherthanthatoIForeign
AIIairs,inaccordancewithArticle16(9)oItheTreatyonEuropeanUnion.

SECTION3

THECOUNCIL
Article 237

TheCouncilshallmeetwhenconvenedbyitsPresidentonhisowninitiativeoratthe
requestoIoneoIitsMembersoroItheCommission.

Article 238

1.Whereitisrequiredtoactbyasimplemajority,theCouncilshallactbyamajority
oIitscomponentmembers.
2.BywayoIderogationIromArticle16(4)oItheTreatyonEuropeanUnion,asIrom
1November2014andsubjecttotheprovisionslaiddownintheProtocolon
transitionalprovisions,wheretheCouncildoesnotactonaproposalIromthe
CommissionorIromtheHighRepresentativeoItheUnionIorForeignAIIairsand
SecurityPolicy,thequaliIiedmajorityshallbedeIinedasatleast72oIthemembers
oItheCouncil,representingMemberStatescomprisingatleast65oIthepopulation
oItheUnion.
3.AsIrom1November2014andsubjecttotheprovisionslaiddownintheProtocol
ontransitionalprovisions,incaseswhere,undertheTreaties,notallthemembersoI
theCouncilparticipateinvoting,aqualiIiedmajorityshallbedeIinedasIollows:
(a)AqualiIiedmajorityshallbedeIinedasatleast55oIthemembersoIthe
CouncilrepresentingtheparticipatingMemberStates,comprisingatleast65oIthe
populationoItheseStates.
AblockingminoritymustincludeatleasttheminimumnumberoICouncilmembers
representingmorethan35oIthepopulationoItheparticipatingMemberStates,
plusonemember,IailingwhichthequaliIiedmajorityshallbedeemedattained;
(b)BywayoIderogationIrompoint(a),whentheCouncildoesnotactonaproposal
IromtheCommissionorIromtheHighRepresentativeoItheUnionIorForeign
AIIairsandSecurityPolicy,thequaliIiedmajorityshallbedeIinedasatleast72oI
148

themembersoItheCouncilrepresentingMemberStatescomprisingatleast65oI
thepopulationoItheseStates.
4.AbstentionsbyMemberspresentinpersonorrepresentedshallnotpreventthe
adoptionbytheCounciloIactswhichrequireunanimity.

Article 239

Whereavoteistaken,anyMemberoItheCouncilmayalsoactonbehalIoInotmore
thanoneothermember.

Article 240

1.AcommitteeconsistingoIthePermanentRepresentativesoItheGovernmentsoI
theMemberStatesshallberesponsibleIorpreparingtheworkoItheCouncilandIor
carryingoutthetasksassignedtoitbythelatter.TheCommitteemayadopt
proceduraldecisionsincasesprovidedIorintheCouncilsRulesoIProcedure.
2.TheCouncilshallbeassistedbyaGeneralSecretariat,undertheresponsibilityoIa
Secretary-GeneralappointedbytheCouncil.
TheCouncilshalldecideontheorganisationoItheGeneralSecretariatbya
simplemajority.
3.TheCouncilshallactbyasimplemajorityregardingproceduralmattersandIorthe
adoptionoIitsRulesoIProcedure.

Article 241

TheCouncil,actingbyasimplemajority,mayrequesttheCommissiontoundertake
anystudiestheCouncilconsidersdesirableIortheattainmentoIthecommon
objectives,andtosubmittoitanyappropriateproposals.IItheCommissiondoesnot
submitaproposal,itshallinIormtheCounciloIthereasons.

Article 242

TheCouncilactingbyasimplemajorityshall,aIterconsultingtheCommission,
determinetherulesgoverningthecommitteesprovidedIorintheTreaties.

149

Article 243

TheCouncilshalldeterminethesalaries,allowancesandpensionsoIthePresidentoI
theEuropeanCouncil,thePresidentoItheCommission,theHighRepresentativeoI
theUnionIorForeignAIIairsandSecurityPolicy,themembersoItheCommission,
thePresidents,membersandRegistrarsoItheCourtoIJusticeoItheEuropeanUnion,
andtheSecretary-GeneraloItheCouncil.Itshallalsodetermineanypaymenttobe
madeinsteadoIremuneration.

SECTION4

THECOMMISSION

Article 244

InaccordancewithArticle17(5)oItheTreatyonEuropeanUnion,themembersoI
theCommissionshallbechosenonthebasisoIasystemoIrotationestablished
unanimouslybytheEuropeanCouncilandonthebasisoItheIollowingprinciples:
(a)MemberStatesshallbetreatedonastrictlyequalIootingasregardsdetermination
oIthesequenceoI,andthetimespentby,theirnationalsasmembersoIthe
Commission;consequently,thediIIerencebetweenthetotalnumberoItermsoIoIIice
heldbynationalsoIanygivenpairoIMemberStatesmayneverbemorethanone;

(b)subjecttopoint(a),eachsuccessiveCommissionshallbesocomposedasto
reIlectsatisIactorilythedemographicandgeographicalrangeoIallthe
MemberStates.

Article 245

TheMembersoItheCommissionshallreIrainIromanyactionincompatiblewith
theirduties.MemberStatesshallrespecttheirindependenceandshallnotseekto
inIluencethemintheperIormanceoItheirtasks.
TheMembersoItheCommissionmaynot,duringtheirtermoIoIIice,engageinany
otheroccupation,whethergainIulornot.Whenenteringupontheirdutiestheyshall
giveasolemnundertakingthat,bothduringandaItertheirtermoIoIIice,theywill
respecttheobligationsarisingthereIromandinparticulartheirdutytobehavewith
integrityanddiscretionasregardstheacceptance,aItertheyhaveceasedtohold
150

oIIice,oIcertainappointmentsorbeneIits.IntheeventoIanybreachoIthese
obligations,theCourtoIJusticemay,onapplicationbytheCouncilactingbyasimple
majorityortheCommission,rulethattheMemberconcernedbe,accordingtothe
circumstances,eithercompulsorilyretiredinaccordancewithArticle247ordeprived
oIhisrighttoapensionorotherbeneIitsinitsstead.

Article 246

ApartIromnormalreplacement,ordeath,thedutiesoIaMemberoItheCommission
shallendwhenheresignsoriscompulsorilyretired.
Avacancycausedbyresignation,compulsoryretirementordeathshallbeIilledIor
theremainderoIthememberstermoIoIIicebyanewmemberoIthesame
nationalityappointedbytheCouncil,bycommonaccordwiththePresidentoIthe
Commission,aIterconsultingtheEuropeanParliamentandinaccordancewiththe
criteriasetoutinthesecondsubparagraphoIArticle17(3)oItheTreatyonEuropean
Union.
TheCouncilmay,actingunanimouslyonaproposalIromthePresidentoIthe
Commission,decidethatsuchavacancyneednotbeIilled,inparticularwhenthe
remainderoIthememberstermoIoIIiceisshort.
IntheeventoIresignation,compulsoryretirementordeath,thePresidentshallbe
replacedIortheremainderoIhistermoIoIIice.TheprocedurelaiddowninArticle
17(7),Iirstsubparagraph,oItheTreatyonEuropeanUnionshallbeapplicableIorthe
replacementoIthePresident.
IntheeventoIresignation,compulsoryretirementordeath,theHighRepresentative
oItheUnionIorForeignAIIairsandSecurityPolicyshallbereplaced,Iorthe
remainderoIhisorhertermoIoIIice,inaccordancewithArticle18(1)oItheTreaty
onEuropeanUnion.

InthecaseoItheresignationoIallthemembersoItheCommission,theyshallremain
inoIIiceandcontinuetodealwithcurrentbusinessuntiltheyhavebeenreplaced,Ior
theremainderoItheirtermoIoIIice,inaccordancewithArticle17oItheTreatyon
EuropeanUnion.

Article 247

IIanyMemberoItheCommissionnolongerIulIilstheconditionsrequiredIorthe
perIormanceoIhisdutiesoriIhehasbeenguiltyoIseriousmisconduct,theCourtoI
Justicemay,onapplicationbytheCouncilactingbyasimplemajorityorthe
Commission,compulsorilyretirehim.

151

Article 248

WithoutprejudicetoArticle18(4)oItheTreatyonEuropeanUnion,the
responsibilitiesincumbentupontheCommissionshallbestructuredandallocated
amongitsmembersbyitsPresident,inaccordancewithArticle17(6)oIthatTreaty.
ThePresidentmayreshuIIletheallocationoIthoseresponsibilitiesduringthe
CommissionstermoIoIIice.TheMembersoItheCommissionshallcarryoutthe
dutiesdevolveduponthembythePresidentunderhisauthority.

Article 249

1.TheCommissionshalladoptitsRulesoIProceduresoastoensurethatbothitand
itsdepartmentsoperate.ItshallensurethattheseRulesarepublished.
2.TheCommissionshallpublishannually,notlaterthanonemonthbeIorethe
openingoIthesessionoItheEuropeanParliament,ageneralreportontheactivitiesoI
theUnion.

Article 250

TheCommissionshallactbyamajorityoIitsmembers.
ItsRulesoIProcedureshalldeterminethequorum.

SECTION5

THECOURTOFJUSTICEOFTHEEUROPEANUNION

Article 251

TheCourtoIJusticeshallsitinchambersorinaGrandChamber,inaccordancewith
theruleslaiddownIorthatpurposeintheStatuteoItheCourtoIJusticeoIthe
EuropeanUnion.
WhenprovidedIorintheStatute,theCourtoIJusticemayalsositasaIullCourt.

152

Article 252

TheCourtoIJusticeshallbeassistedbyeightAdvocates-General.ShouldtheCourt
oIJusticesorequest,theCouncil,actingunanimously,mayincreasethenumberoI
Advocates-General.
ItshallbethedutyoItheAdvocate-General,actingwithcompleteimpartialityand
independence,tomake,inopencourt,reasonedsubmissionsoncaseswhich,in
accordancewiththeStatuteoItheCourtoIJusticeoItheEuropeanUnion,requirehis
involvement.

Article 253

TheJudgesandAdvocates-GeneraloItheCourtoIJusticeshallbechosenIrom
personswhoseindependenceisbeyonddoubtandwhopossessthequaliIications
requiredIorappointmenttothehighestjudicialoIIicesintheirrespectivecountriesor
whoarejurisconsultsoIrecognisedcompetence;theyshallbeappointedbycommon
accordoIthegovernmentsoItheMemberStatesIoratermoIsixyears,aIter
consultationoIthepanelprovidedIorinArticle255.
EverythreeyearsthereshallbeapartialreplacementoItheJudgesandAdvocates-
General,inaccordancewiththeconditionslaiddownintheStatuteoItheCourtoI
JusticeoItheEuropeanUnion.
TheJudgesshallelectthePresidentoItheCourtoIJusticeIromamongtheirnumber
IoratermoIthreeyears.Hemaybere-elected.
RetiringJudgesandAdvocates-Generalmaybereappointed.
TheCourtoIJusticeshallappointitsRegistrarandlaydowntherulesgoverninghis
service.
TheCourtoIJusticeshallestablishitsRulesoIProcedure.ThoseRulesshallrequire
theapprovaloItheCouncil.

Article 254

ThenumberoIJudgesoItheCourtshallbedeterminedbytheStatuteoItheCourtoI
JusticeoItheEuropeanUnion.TheStatutemayprovideIortheGeneralCourttobe
assistedbyAdvocates-General.
ThemembersoItheGeneralCourtshallbechosenIrompersonswhoseindependence
isbeyonddoubtandwhopossesstheabilityrequiredIorappointmenttohighjudicial
153

oIIice.TheyshallbeappointedbycommonaccordoIthegovernmentsoItheMember
StatesIoratermoIsixyears,aIterconsultationoIthepanelprovidedIorin
Article255.Themembershipshallbepartiallyrenewedeverythreeyears.Retiring
membersshallbeeligibleIorreappointment.
TheJudgesshallelectthePresidentoItheGeneralCourtIromamongtheirnumber
IoratermoIthreeyears.Hemaybere-elected.
TheGeneralCourtshallappointitsRegistrarandlaydowntherulesgoverninghis
service.
TheGeneralCourtshallestablishitsRulesoIProcedureinagreementwiththeCourt
oIJustice.ThoseRulesshallrequiretheapprovaloItheCouncil,.
UnlesstheStatuteoItheCourtoIJusticeoItheEuropeanUnionprovidesotherwise,
theprovisionsoItheTreatiesrelatingtotheCourtoIJusticeshallapplytotheGeneral
Court.

Article 255

Apanelshallbesetupinordertogiveanopiniononcandidatessuitabilityto
perIormthedutiesoIJudgeandAdvocate-GeneraloItheCourtoIJusticeandthe
GeneralCourtbeIorethegovernmentsoItheMemberStatesmaketheappointments
reIerredtoinArticles253and254.
ThepanelshallcomprisesevenpersonschosenIromamongIormermembersoIthe
CourtoIJusticeandtheGeneralCourt,membersoInationalsupremecourtsand
lawyersoIrecognisedcompetence,oneoIwhomshallbeproposedbytheEuropean
Parliament.TheCouncilshalladoptadecisionestablishingthepanelsoperatingrules
andadecisionappointingitsmembers.ItshallactontheinitiativeoIthePresidentoI
theCourtoIJustice.

Article 256

1.TheGeneralCourtshallhavejurisdictiontohearanddetermineatIirstinstance
actionsorproceedingsreIerredtoinArticles263,265,268,270and272,withthe
exceptionoIthoseassignedtoaspecialisedcourtsetupunderArticle257andthose
reservedintheStatuteIortheCourtoIJustice.TheStatutemayprovideIorthe
GeneralCourttohavejurisdictionIorotherclassesoIactionorproceeding.
DecisionsgivenbytheGeneralCourtunderthisparagraphmaybesubjecttoaright
oIappealtotheCourtoIJusticeonpointsoIlawonly,undertheconditionsand
withinthelimitslaiddownbytheStatute.
2.TheGeneralCourtshallhavejurisdictiontohearanddetermineactionsor
proceedingsbroughtagainstdecisionsoIthespecialisedcourts.
154

DecisionsgivenbytheGeneralCourtunderthisparagraphmayexceptionallybe
subjecttoreviewbytheCourtoIJustice,undertheconditionsandwithinthelimits
laiddownbytheStatute,wherethereisaseriousriskoItheunityorconsistencyoI
UnionlawbeingaIIected.
3.TheGeneralCourtshallhavejurisdictiontohearanddeterminequestionsreIerred
IorapreliminaryrulingunderArticle267,inspeciIicareaslaiddownbytheStatute.
WheretheGeneralCourtconsidersthatthecaserequiresadecisionoIprinciplelikely
toaIIecttheunityorconsistencyoIUnionlaw,itmayreIerthecasetotheCourtoI
JusticeIoraruling.
DecisionsgivenbytheGeneralCourtonquestionsreIerredIorapreliminaryruling
mayexceptionallybesubjecttoreviewbytheCourtoIJustice,undertheconditions
andwithinthelimitslaiddownbytheStatute,wherethereisaseriousriskoIthe
unityorconsistencyoIUnionlawbeingaIIected.

Article 257

TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,mayestablishspecialisedcourtsattachedtotheGeneralCourt
tohearanddetermineatIirstinstancecertainclassesoIactionorproceedingbrought
inspeciIicareas.TheEuropeanParliamentandtheCouncilshallact bymeansoI
regulationseitheronaproposalIromtheCommissionaIterconsultationoIthe
CourtoIJusticeorattherequestoItheCourtoIJusticeaIterconsultationoIthe
Commission.
Theregulationestablishingaspecialisedcourtshalllaydowntherulesonthe
organisationoIthecourtandtheextentoIthejurisdictionconIerreduponit.
DecisionsgivenbyspecialisedcourtsmaybesubjecttoarightoIappealonpointsoI
lawonlyor,whenprovidedIorintheregulationestablishingthespecialisedcourt,a
rightoIappealalsoonmattersoIIact,beIoretheGeneralCourt.
ThemembersoIthespecialisedcourtsshallbechosenIrompersonswhose
independenceisbeyonddoubtandwhopossesstheabilityrequiredIorappointmentto
judicialoIIice.TheyshallbeappointedbytheCouncil,actingunanimously.
ThespecialisedcourtsshallestablishtheirRulesoIProcedureinagreementwiththe
CourtoIJustice.ThoseRulesshallrequiretheapprovaloItheCouncil.
Unlesstheregulationestablishingthespecialisedcourtprovidesotherwise,the
provisionsoItheTreatiesrelatingtotheCourtoIJusticeoItheEuropeanUnionand
theprovisionsoItheStatuteoItheCourtoIJusticeoItheEuropeanUnionshallapply
tothespecialisedcourts.TitleIoItheStatuteandArticle64thereoIshallinanycase
applytothespecialisedcourts.

155

Article 258

IItheCommissionconsidersthataMemberStatehasIailedtoIulIilanobligation
undertheTreaties,itshalldeliverareasonedopiniononthematteraItergivingthe
Stateconcernedtheopportunitytosubmititsobservations.
IItheStateconcerneddoesnotcomplywiththeopinionwithintheperiodlaiddown
bytheCommission,thelattermaybringthematterbeIoretheCourtoIJusticeoIthe
EuropeanUnion.

Article 259

AMemberStatewhichconsidersthatanotherMemberStatehasIailedtoIulIilan
obligationundertheTreatiesmaybringthematterbeIoretheCourtoIJusticeoIthe
EuropeanUnion.
BeIoreaMemberStatebringsanactionagainstanotherMemberStateIoranalleged
inIringementoIanobligationundertheTreaties,itshallbringthematterbeIorethe
Commission.
TheCommissionshalldeliverareasonedopinionaItereachoItheStatesconcerned
hasbeengiventheopportunitytosubmititsowncaseanditsobservationsonthe
otherpartyscasebothorallyandinwriting.
IItheCommissionhasnotdeliveredanopinionwithinthreemonthsoIthedateon
whichthematterwasbroughtbeIoreit,theabsenceoIsuchopinionshallnotprevent
thematterIrombeingbroughtbeIoretheCourt.

Article 260

1.IItheCourtoIJusticeoItheEuropeanUnionIindsthataMemberStatehasIailed
toIulIilanobligationundertheTreaties,theStateshallberequiredtotakethe
necessarymeasurestocomplywiththejudgmentoItheCourt.
2.IItheCommissionconsidersthattheMemberStateconcernedhasnottakenthe
necessarymeasurestocomplywiththejudgmentoItheCourt,itmaybringthecase
beIoretheCourtaItergivingthatStatetheopportunitytosubmititsobservations.It
shallspeciIytheamountoIthelumpsumorpenaltypaymenttobepaidbythe
MemberStateconcernedwhichitconsidersappropriateinthecircumstances.
IItheCourtIindsthattheMemberStateconcernedhasnotcompliedwithits
judgmentitmayimposealumpsumorpenaltypaymentonit.
ThisprocedureshallbewithoutprejudicetoArticle259.
156

3.WhentheCommissionbringsacasebeIoretheCourtpursuanttoArticle258onthe
groundsthattheMemberStateconcernedhasIailedtoIulIilitsobligationtonotiIy
measurestransposingadirectiveadoptedunderalegislativeprocedure,itmay,when
itdeemsappropriate,speciIytheamountoIthelumpsumorpenaltypaymenttobe
paidbytheMemberStateconcernedwhichitconsidersappropriateinthe
circumstances.
IItheCourtIindsthatthereisaninIringementitmayimposealumpsumorpenalty
paymentontheMemberStateconcernednotexceedingtheamountspeciIiedbythe
Commission.ThepaymentobligationshalltakeeIIectonthedatesetbytheCourtin
itsjudgment.

Article 261

RegulationsadoptedjointlybytheEuropeanParliamentandtheCouncil,andbythe
Council,pursuanttotheprovisionsoItheTreaties,maygivetheCourtoIJusticeoI
theEuropeanUnionunlimitedjurisdictionwithregardtothepenaltiesprovidedIorin
suchregulations.

Article 262

WithoutprejudicetotheotherprovisionsoItheTreaties,theCouncil,acting
unanimouslyinaccordancewithaspeciallegislativeprocedureandaIterconsulting
theEuropeanParliament,mayadoptprovisionstoconIerjurisdiction,totheextent
thatitshalldetermine,ontheCourtoIJusticeoItheEuropeanUnionindisputes
relatingtotheapplicationoIactsadoptedonthebasisoItheTreatieswhichcreate
Europeanintellectualpropertyrights.TheseprovisionsshallenterintoIorceaIter
theirapprovalbytheMemberStatesinaccordancewiththeirrespectiveconstitutional
requirements.

Article 263

TheCourtoIJusticeoItheEuropeanUnionshallreviewthelegalityoIlegislative
acts,oIactsoItheCouncil,oItheCommissionandoItheEuropeanCentralBank,
otherthanrecommendationsandopinions,andoIactsoItheEuropeanParliamentand
oItheEuropeanCouncilintendedtoproducelegaleIIectsvis-a-visthirdparties.It
shallalsoreviewthelegalityoIactsoIbodies,oIIicesoragenciesoItheUnion
intendedtoproducelegaleIIectsvis-a-visthirdparties.

ItshallIorthispurposehavejurisdictioninactionsbroughtbyaMemberState,the
EuropeanParliament,theCouncilortheCommissionongroundsoIlackoI
157

competence,inIringementoIanessentialproceduralrequirement,inIringementoIthe
TreatiesoroIanyruleoIlawrelatingtotheirapplication,ormisuseoIpowers.
TheCourtshallhavejurisdictionunderthesameconditionsinactionsbroughtbythe
CourtoIAuditors,bytheEuropeanCentralBankandbytheCommitteeoIthe
RegionsIorthepurposeoIprotectingtheirprerogatives.
Anynaturalorlegalpersonmay,undertheconditionsreIerredtointheIirstand
secondsubparagraphs,instituteproceedingsagainstanactaddressedtothatpersonor
whichisoIdirectandindividualconcerntothem,andagainstaregulatoryactwhich
isoIdirectconcerntothemanddoesnotentailimplementingmeasures.
Actssettingupbodies,oIIicesandagenciesoItheUnionmaylaydownspeciIic
conditionsandarrangementsconcerningactionsbroughtbynaturalorlegalpersons
againstactsoIthesebodies,oIIicesoragenciesintendedtoproducelegaleIIectsin
relationtothem.
TheproceedingsprovidedIorinthisArticleshallbeinstitutedwithintwomonthsoI
thepublicationoIthemeasure,oroIitsnotiIicationtotheplaintiII,or,intheabsence
thereoI,oIthedayonwhichitcametotheknowledgeoIthelatter,asthecasemay
be.

Article 264

IItheactioniswellIounded,theCourtoIJusticeoItheEuropeanUnionshalldeclare
theactconcernedtobevoid.
However,theCourtshall,iIitconsidersthisnecessary,statewhichoItheeIIectsoI
theactwhichithasdeclaredvoidshallbeconsideredasdeIinitive.

Article 265

ShouldtheEuropeanParliament,theEuropeanCouncil,theCouncil,theCommission
ortheEuropeanCentralBank,ininIringementoItheTreaties,Iailtoact,theMember
StatesandtheotherinstitutionsoItheUnionmaybringanactionbeIoretheCourtoI
JusticetohavetheinIringementestablished.ThisArticleshallapply,underthesame
conditions,tobodies,oIIicesandagenciesoItheUnionwhichIailtoact.
TheactionshallbeadmissibleonlyiItheinstitution,body,oIIiceoragency
concernedhasIirstbeencalledupontoact.II,withintwomonthsoIbeingsocalled
upon,theinstitution,body,oIIiceoragencyconcernedhasnotdeIineditsposition,
theactionmaybebroughtwithinaIurtherperiodoItwomonths.
Anynaturalorlegalpersonmay,undertheconditionslaiddowninthepreceding
paragraphs,complaintotheCourtthataninstitution,body,oIIiceoragencyoIthe
158

UnionhasIailedtoaddresstothatpersonanyactotherthanarecommendationoran
opinion.

Article 266

Theinstitution,body,oIIiceoragencywhoseacthasbeendeclaredvoidorwhose
IailuretoacthasbeendeclaredcontrarytotheTreatiesshallberequiredtotakethe
necessarymeasurestocomplywiththejudgmentoItheCourtoIJustice.
ThisobligationshallnotaIIectanyobligationwhichmayresultIromtheapplication
oIthesecondparagraphoIArticle340.

Article 267

TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictiontogivepreliminary
rulingsconcerning:
(a)theinterpretationoItheTreaties;
(b)thevalidityandinterpretationoIactsoItheinstitutions,bodies,oIIicesoragencies
oItheUnion;
WheresuchaquestionisraisedbeIoreanycourtortribunaloIaMemberState,that
courtortribunalmay,iIitconsidersthatadecisiononthequestionisnecessaryto
enableittogivejudgment,requesttheCourttogivearulingthereon.
WhereanysuchquestionisraisedinacasependingbeIoreacourtortribunaloIa
MemberStateagainstwhosedecisionsthereisnojudicialremedyundernationallaw,
thatcourtortribunalshallbringthematterbeIoretheCourt.
IIsuchaquestionisraisedinacasependingbeIoreacourtortribunaloIaMember
Statewithregardtoapersonincustody,theCourtoIJusticeoItheEuropeanUnion
shallactwiththeminimumoIdelay.

Article 268

TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictionindisputesrelating
tocompensationIordamageprovidedIorinthesecondandthirdparagraphsoI
Article340.

159

Article 269

TheCourtoIJusticeshallhavejurisdictiontodecideonthelegalityoIanactadopted
bytheEuropeanCouncilorbytheCouncilpursuanttoArticle7oItheTreatyon
EuropeanUnionsolelyattherequestoItheMemberStateconcernedbya
determinationoItheEuropeanCounciloroItheCouncilandinrespectsolelyoIthe
proceduralstipulationscontainedinthatArticle.
SucharequestmustbemadewithinonemonthIromthedateoIsuchdetermination.
TheCourtshallrulewithinonemonthIromthedateoItherequest.

Article 270

TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictioninanydispute
betweentheUnionanditsservantswithinthelimitsandundertheconditionslaid
downintheStaIIRegulationsoIOIIicialsandtheConditionsoIEmploymentoIother
servantsoItheUnion.

Article 271

TheCourtoIJusticeoItheEuropeanUnionshall,withinthelimitshereinaIterlaid
down,havejurisdictionindisputesconcerning:
(a)theIulIilmentbyMemberStatesoIobligationsundertheStatuteoItheEuropean
InvestmentBank.Inthisconnection,theBoardoIDirectorsoItheBankshallenjoy
thepowersconIerredupontheCommissionbyArticle258;
(b)measuresadoptedbytheBoardoIGovernorsoItheEuropeanInvestmentBank.In
thisconnection,anyMemberState,theCommissionortheBoardoIDirectorsoIthe
BankmayinstituteproceedingsundertheconditionslaiddowninArticle263;
(c)measuresadoptedbytheBoardoIDirectorsoItheEuropeanInvestmentBank.
ProceedingsagainstsuchmeasuresmaybeinstitutedonlybyMemberStatesorbythe
Commission,undertheconditionslaiddowninArticle263,andsolelyonthegrounds
oInon-compliancewiththeprocedureprovidedIorinArticle19(2),(5),(6)and(7)
oItheStatuteoItheBank;
(d)theIulIilmentbynationalcentralbanksoIobligationsundertheTreatiesandthe
StatuteoItheESCBandoItheECB.InthisconnectionthepowersoItheGoverning
CounciloItheEuropeanCentralBankinrespectoInationalcentralbanksshallbethe
sameasthoseconIerredupontheCommissioninrespectoIMemberStatesbyArticle
258.IItheCourtIindsthatanationalcentralbankhasIailedtoIulIilanobligation
undertheTreaties,thatbankshallberequiredtotakethenecessarymeasuresto
complywiththejudgmentoItheCourt.
160

Article 272

TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictiontogivejudgment
pursuanttoanyarbitrationclausecontainedinacontractconcludedbyoronbehalIoI
theUnion,whetherthatcontractbegovernedbypublicorprivatelaw.

Article 273

TheCourtoIJusticeshallhavejurisdictioninanydisputebetweenMemberStates
whichrelatestothesubjectmatteroItheTreatiesiIthedisputeissubmittedtoit
underaspecialagreementbetweentheparties.

Article 274

SavewherejurisdictionisconIerredontheCourtoIJusticeoItheEuropeanUnionby
theTreaties,disputestowhichtheUnionisapartyshallnotonthatgroundbe
excludedIromthejurisdictionoIthecourtsortribunalsoItheMemberStates.

Article 275

TheCourtoIJusticeoItheEuropeanUnionshallnothavejurisdictionwithrespectto
theprovisionsrelatingtothecommonIoreignandsecuritypolicynorwithrespectto
actsadoptedonthebasisoIthoseprovisions.
However,theCourtshallhavejurisdictiontomonitorcompliancewithArticle40oI
theTreatyonEuropeanUnionandtoruleonproceedings,broughtinaccordancewith
theconditionslaiddownintheIourthparagraphoIArticle263oIthisTreaty,
reviewingthelegalityoIdecisionsprovidingIorrestrictivemeasuresagainstnatural
orlegalpersonsadoptedbytheCouncilonthebasisoIChapter2oITitleVoIthe
TreatyonEuropeanUnion.

Article 276
161

InexercisingitspowersregardingtheprovisionsoIChapters4and5oITitleVoI
PartThreerelatingtotheareaoIIreedom,securityandjustice,theCourtoIJusticeoI
theEuropeanUnionshallhavenojurisdictiontoreviewthevalidityorproportionality
oIoperationscarriedoutbythepoliceorotherlaw-enIorcementservicesoIaMember
StateortheexerciseoItheresponsibilitiesincumbentuponMemberStateswith
regardtothemaintenanceoIlawandorderandthesaIeguardingoIinternalsecurity.

Article 277

NotwithstandingtheexpiryoItheperiodlaiddowninArticle263,IiIthparagraph,
anypartymay,inproceedingsinwhichanactoIgeneralapplicationadoptedbyan
institution,body,oIIiceoragencyoItheUnionisatissue,pleadthegroundsspeciIied
inArticle263,secondparagraph,inordertoinvokebeIoretheCourtoIJusticeoIthe
EuropeanUniontheinapplicabilityoIthatact.

Article 278

ActionsbroughtbeIoretheCourtoIJusticeoItheEuropeanUnionshallnothave
suspensoryeIIect.TheCourtmay,however,iIitconsidersthatcircumstancesso
require,orderthatapplicationoIthecontestedactbesuspended.

Article 279

TheCourtoIJusticeoItheEuropeanUnionmayinanycasesbeIoreitprescribeany
necessaryinterimmeasures.

Article 280

ThejudgmentsoItheCourtoIJusticeoItheEuropeanUnionshallbeenIorceable
undertheconditionslaiddowninArticle299.

162

Article 281

TheStatuteoItheCourtoIJusticeoItheEuropeanUnionshallbelaiddownina
separateProtocol.
TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,mayamendtheprovisionsoItheStatute,withtheexceptionoI
TitleIandArticle64.TheEuropeanParliamentandtheCouncilshallacteitheratthe
requestoItheCourtoIJusticeandaIterconsultationoItheCommission,orona
proposalIromtheCommissionandaIterconsultationoItheCourtoIJustice.

SECTION6

THEEUROPEANCENTRALBANK

Article 282

1.TheEuropeanCentralBank,togetherwiththenationalcentralbanks,shall
constitutetheEuropeanSystemoICentralBanks(ESCB).TheEuropeanCentral
Bank,togetherwiththenationalcentralbanksoItheMemberStateswhosecurrency
istheeuro,whichconstitutetheEurosystem,shallconductthemonetarypolicyoIthe
Union.
2.TheESCBshallbegovernedbythedecision-makingbodiesoItheEuropean
CentralBank.TheprimaryobjectiveoItheESCBshallbetomaintainpricestability.
Withoutprejudicetothatobjective,itshallsupportthegeneraleconomicpoliciesin
theUnioninordertocontributetotheachievementoIthelattersobjectives.
3.TheEuropeanCentralBankshallhavelegalpersonality.Italonemayauthorisethe
issueoItheeuro.ItshallbeindependentintheexerciseoIitspowersandinthe
managementoIitsIinances.Theinstitutions,bodies,oIIicesandagenciesoIthe
UnionandthegovernmentsoItheMemberStatesshallrespectthatindependence.
4.TheEuropeanCentralBankshalladoptsuchmeasuresasarenecessarytocarryout
itstasksinaccordancewithArticles127to133,withArticle138,andwiththe
conditionslaiddownintheStatuteoItheECSBandoItheECB.Inaccordancewith
thesesameArticles,thoseMemberStateswhosecurrencyisnottheeuro,andtheir
centralbanks,shallretaintheirpowersinmonetarymatters.
5.WithintheareasIallingwithinitsresponsibilities,theEuropeanCentralBankshall
beconsultedonallproposedUnionacts,andallproposalsIorregulationatnational
level,andmaygiveanopinion.

163

Article 283

1.TheGoverningCounciloItheEuropeanCentralBankshallcomprisethemembers
oItheExecutiveBoardoItheEuropeanCentralBankandtheGovernorsoIthe
nationalcentralbanksoItheMemberStateswhosecurrencyistheeuro.
2.TheExecutiveBoardshallcomprisethePresident,theVice-PresidentandIour
othermembers.
ThePresident,theVice-PresidentandtheothermembersoItheExecutiveBoard
shallbeappointedbytheEuropeanCouncil,actingbyaqualiIiedmajority,Irom
amongpersonsoIrecognisedstandingandproIessionalexperienceinmonetaryor
bankingmatters,onarecommendationIromtheCouncil,aIterithasconsultedthe
EuropeanParliamentandtheGoverningCounciloItheEuropeanCentralBank.
TheirtermoIoIIiceshallbeeightyearsandshallnotberenewable.
OnlynationalsoIMemberStatesmaybemembersoItheExecutiveBoard.

Article 284

1.ThePresidentoItheCouncilandamemberoItheCommissionmayparticipate,
withouthavingtherighttovote,inmeetingsoItheGoverningCounciloIthe
EuropeanCentralBank.
ThePresidentoItheCouncilmaysubmitamotionIordeliberationtotheGoverning
CounciloItheEuropeanCentralBank.
2.ThePresidentoItheEuropeanCentralBankshallbeinvitedtoparticipatein
CouncilmeetingswhentheCouncilisdiscussingmattersrelatingtotheobjectives
andtasksoItheESCB.
3.TheEuropeanCentralBankshalladdressanannualreportontheactivitiesoIthe
ESCBandonthemonetarypolicyoIboththepreviousandcurrentyeartothe
EuropeanParliament,theCouncilandtheCommission,andalsototheEuropean
Council.ThePresidentoItheEuropeanCentralBankshallpresentthisreporttothe
CouncilandtotheEuropeanParliament,whichmayholdageneraldebateonthat
basis.
ThePresidentoItheEuropeanCentralBankandtheothermembersoItheExecutive
Boardmay,attherequestoItheEuropeanParliamentorontheirowninitiative,be
heardbythecompetentbodiescommitteesoItheEuropeanParliament.

SECTION7

164

THECOURTOFAUDITORS

Article 285

TheCourtoIAuditorsshallcarryouttheUnionsaudit.
ItshallconsistoIonenationaloIeachMemberState.Itsmembersshallbecompletely
independentintheperIormanceoItheirduties,intheUnionsgeneralinterest.

Article 286

1.TheMembersoItheCourtoIAuditorsshallbechosenIromamongpersonswho
belongorhavebelongedintheirrespectiveStatestoexternalauditbodiesorwhoare
especiallyqualiIiedIorthisoIIice.Theirindependencemustbebeyonddoubt.
2.TheMembersoItheCourtoIAuditorsshallbeappointedIoratermoIsixyears.
TheCouncil,aIterconsultingtheEuropeanParliament,shalladoptthelistoI
MembersdrawnupinaccordancewiththeproposalsmadebyeachMemberState.
ThetermoIoIIiceoItheMembersoItheCourtoIAuditorsshallberenewable.
TheyshallelectthePresidentoItheCourtoIAuditorsIromamongtheirnumberIora
termoIthreeyears.ThePresidentmaybere-elected.
3.IntheperIormanceoItheseduties,theMembersoItheCourtoIAuditorsshall
neitherseeknortakeinstructionsIromanygovernmentorIromanyotherbody.The
MembersoItheCourtoIAuditorsshallreIrainIromanyactionincompatiblewith
theirduties.
4.TheMembersoItheCourtoIAuditorsmayshallnot,duringtheirtermoIoIIice,
engageinanyotheroccupation,whethergainIulornot.Whenenteringupontheir
dutiestheyshallgiveasolemnundertakingthat,bothduringandaItertheirtermoI
oIIice,theywillrespecttheobligationsarisingthereIromandinparticulartheirduty
tobehavewithintegrityanddiscretionasregardstheacceptance,aItertheyhave
ceasedtoholdoIIice,oIcertainappointmentsorbeneIits.
5.ApartIromnormalreplacement,ordeath,thedutiesoIaMemberoItheCourtoI
Auditorsshallendwhenheresigns,oriscompulsorilyretiredbyarulingoItheCourt
oIJusticepursuanttoparagraph6.
ThevacancythuscausedshallbeIilledIortheremainderoItheMemberstermoI
oIIice.
SaveinthecaseoIcompulsoryretirement,MembersoItheCourtoIAuditorsshall
remaininoIIiceuntiltheyhavebeenreplaced.
6.AMemberoItheCourtoIAuditorsmaybedeprivedoIhisoIIiceoroIhisrightto
apensionorotherbeneIitsinitssteadonlyiItheCourtoIJustice,attherequestoIthe
165

CourtoIAuditors,IindsthathenolongerIulIilstherequisiteconditionsormeetsthe
obligationsarisingIromhisoIIice.
7.TheCouncilshalldeterminetheconditionsoIemploymentoIthePresidentandthe
MembersoItheCourtoIAuditorsandinparticulartheirsalaries,allowancesand
pensions.Itshallalso,determineanypaymenttobemadeinsteadoIremuneration.
8.TheprovisionsoItheProtocolontheprivilegesandimmunitiesoItheEuropean
UnionapplicabletotheJudgesoItheCourtoIJusticeoItheEuropeanUnionshall
alsoapplytotheMembersoItheCourtoIAuditors.

Article 287

1.TheCourtoIAuditorsshallexaminetheaccountsoIallrevenueandexpenditureoI
theUnion.ItshallalsoexaminetheaccountsoIallrevenueandexpenditureoIall
bodies,oIIicesoragenciessetupbytheUnioninsoIarastherelevantconstituent
instrumentdoesnotprecludesuchexamination.
TheCourtoIAuditorsshallprovidetheEuropeanParliamentandtheCouncilwitha
statementoIassuranceastothereliabilityoItheaccountsandthelegalityand
regularityoItheunderlyingtransactionswhichshallbepublishedintheOfficial
Journal of the European Union.ThisstatementmaybesupplementedbyspeciIic
assessmentsIoreachmajorareaoIUnionactivity.
2.TheCourtoIAuditorsshallexaminewhetherallrevenuehasbeenreceivedandall
expenditureincurredinalawIulandregularmannerandwhethertheIinancial
managementhasbeensound.Indoingso,itshallreportinparticularonanycasesoI
irregularity.
TheauditoIrevenueshallbecarriedoutonthebasisbothoItheamountsestablished
asdueandtheamountsactuallypaidtotheUnion.
TheauditoIexpenditureshallbecarriedoutonthebasisbothoIcommitments
undertakenandpaymentsmade.
TheseauditsmaybecarriedoutbeIoretheclosureoIaccountsIortheIinancialyear
inquestion.
3.Theauditshallbebasedonrecordsand,iInecessary,perIormedonthespotinthe
otherinstitutions,onthepremisesoIanybody,oIIiceoragencywhichmanages
revenueorexpenditureonbehalIoItheUnionandintheMemberStates,includingon
thepremisesoIanynaturalorlegalpersoninreceiptoIpaymentsIromthebudget.In
theMemberStatestheauditshallbecarriedoutinliaisonwithnationalauditbodies
or,iIthesedonothavethenecessarypowers,withthecompetentnational
departments.TheCourtoIAuditorsandthenationalauditbodiesoItheMember
StatesshallcooperateinaspiritoItrustwhilemaintainingtheirindependence.These
bodiesordepartmentsshallinIormtheCourtoIAuditorswhethertheyintendtotake
partintheaudit.
166

TheotherinstitutionsoItheUnion,anybodies,oIIicesoragenciesmanagingrevenue
orexpenditureonbehalIoItheUnion,anynaturalorlegalpersoninreceiptoI
paymentsIromthebudget,andthenationalauditbodiesor,iIthesedonothavethe
necessarypowers,thecompetentnationaldepartments,shallIorwardtotheCourtoI
Auditors,atitsrequest,anydocumentorinIormationnecessarytocarryoutitstask.
InrespectoItheEuropeanInvestmentBanksactivityinmanagingUnionexpenditure
andrevenue,theCourtsrightsoIaccesstoinIormationheldbytheBankshallbe
governedbyanagreementbetweentheCourt,theBankandtheCommission.Inthe
absenceoIanagreement,theCourtshallneverthelesshaveaccesstoinIormation
necessaryIortheauditoIUnionexpenditureandrevenuemanagedbytheBank.
4.TheCourtoIAuditorsshalldrawupanannualreportaIterthecloseoIeach
Iinancialyear.ItshallbeIorwardedtotheotherinstitutionsoItheUnionandshallbe
published,togetherwiththerepliesoItheseinstitutionstotheobservationsoIthe
CourtoIAuditors,intheOfficial Journal of the European Union.
TheCourtoIAuditorsmayalso,atanytime,submitobservations,particularlyinthe
IormoIspecialreports,onspeciIicquestionsanddeliveropinionsattherequestoI
oneoItheotherinstitutionsoItheUnion.
Itshalladoptitsannualreports,specialreportsoropinionsbyamajorityoIits
componentMembers.However,itmayestablishinternalchambersinordertoadopt
certaincategoriesoIreportsoropinionsundertheconditionslaiddownbyitsRulesoI
Procedure.
ItshallassisttheEuropeanParliamentandtheCouncilinexercisingtheirpowersoI
controlovertheimplementationoIthebudget.
TheCourtoIAuditorsshalldrawupitsRulesoIProcedure.Thoserulesshallrequire
theapprovaloItheCouncil.

CHAPTER2

LEGALACTSOFTHEUNION,ADOPTIONPROCEDURESANDOTHER
PROVISIONS

SECTION1

THELEGALACTSOFTHEUNION

Article288
167

ToexercisetheUnionscompetences,theinstitutionsshalladoptregulations,
directives,decisions,recommendationsandopinions.
Aregulationshallhavegeneralapplication.Itshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.
Adirectiveshallbebinding,astotheresulttobeachieved,uponeachMemberState
towhichitisaddressed,butshallleavetothenationalauthoritiesthechoiceoIIorm
andmethods.
Adecisionshallbebindinginitsentirety.AdecisionwhichspeciIiesthosetowhom
itisaddressedshallbebindingonlyonthem.
RecommendationsandopinionsshallhavenobindingIorce.

Article 289

1.Theordinarylegislativeprocedureshallconsistinthejointadoptionbythe
EuropeanParliamentandtheCounciloIaregulation,directiveordecisionona
proposalIromtheCommission.ThisprocedureisdeIinedinArticle294.
2.InthespeciIiccasesprovidedIorbytheTreaties,theadoptionoIaregulation,
directiveordecisionbytheEuropeanParliamentwiththeparticipationoItheCouncil,
orbythelatterwiththeparticipationoItheEuropeanParliament,shallconstitutea
speciallegislativeprocedure.
3.Legalactsadoptedbylegislativeprocedureshallconstitutelegislativeacts.
4.InthespeciIiccasesprovidedIorbytheTreaties,legislativeactsmaybeadopted
ontheinitiativeoIagroupoIMemberStatesoroItheEuropeanParliament,onthe
recommendationoItheEuropeanCentralBankorattherequestoItheCourtoI
JusticeortheEuropeanInvestmentBank.

Article 290

1.AlegislativeactmaydelegatetotheCommissionthepowertoadoptnon-
legislativeactstosupplementoramendcertainnon-essentialelementsoIthe
legislativeact.
Theobjectives,content,scopeanddurationoIthedelegationoIpowershallbe
explicitlydeIinedinthelegislativeacts.TheessentialelementsoIanareashallbe
reservedIorthelegislativeactandaccordinglyshallnotbethesubjectoIadelegation
oIpower.
168

2.Legislativeactsshallexplicitlylaydowntheconditionstowhichthedelegationis
subject;theseconditionsmaybeasIollows:
(a)theEuropeanParliamentortheCouncilmaydecidetorevokethedelegation;

(b)thedelegatedactmayenterintoIorceonlyiInoobjectionhasbeenexpressedby
theEuropeanParliamentortheCouncilwithinaperiodsetbythelegislativeact.
ForthepurposesoI(a)and(b),theEuropeanParliamentshallactbyamajorityoIits
componentmembers,andtheCouncilbyaqualiIiedmajority.
3.TheadjectivedelegatedshallbeinsertedinthetitleoIdelegatedacts.

Article 291

1.MemberStatesshalladoptallmeasuresoInationallawnecessarytoimplement
legallybindingUnionacts.
2.WhereuniIormconditionsIorimplementinglegallybindingUnionactsareneeded,
thoseactsshallconIerimplementingpowersontheCommission,or,indulyjustiIied
speciIiccasesandinthecasesprovidedIorinArticles24and26oItheTreatyon
EuropeanUnion,ontheCouncil.
3.ForthepurposesoIparagraph2,theEuropeanParliamentandtheCouncil,acting
bymeansoIregulationsinaccordancewiththeordinarylegislativeprocedure,shall
laydowninadvancetherulesandgeneralprinciplesconcerningmechanismsIor
controlbyMemberStatesoItheCommissionsexerciseoIimplementingpowers.
4.ThewordimplementingshallbeinsertedinthetitleoIimplementingacts.

Article 292

TheCouncilshalladoptrecommendations.ItshallactonaproposalIromthe
CommissioninallcaseswheretheTreatiesprovidethatitshalladoptactsona
proposalIromtheCommission.Itshallactunanimouslyinthoseareasinwhich
unanimityisrequiredIortheadoptionoIaUnionact.TheCommission,andthe
EuropeanCentralBankinthespeciIiccasesprovidedIorintheTreaties,shalladopt
recommendations.

169

SECTION2

PROCEDURESFORTHEADOPTIONOFACTSANDOTHERPROVISIONS

Article 293

1.Where,pursuanttotheTreaties,theCouncilactsonaproposalIromthe
Commission,itmayamendthatproposalonlybyactingunanimously,exceptinthe
casesreIerredtoinparagraphs10and13oIArticles294,inArticles310,312and314
andinthesecondparagraphoIArticle315.
2.AslongastheCouncilhasnotacted,theCommissionmayalteritsproposalatany
timeduringtheproceduresleadingtotheadoptionoIaUnionact.

Article 294

1.WherereIerenceismadeintheTreatiestotheordinarylegislativeprocedureIorthe
adoptionoIanact,theIollowingprocedureshallapply.
2.TheCommissionshallsubmitaproposaltotheEuropeanParliamentandthe
Council.
First reading
3.TheEuropeanParliamentshalladoptitspositionatIirstreadingandcommunicate
ittotheCouncil.

4.IItheCouncilapprovestheEuropeanParliamentsposition,theactconcernedshall
beadoptedinthewordingwhichcorrespondstothepositionoItheEuropean
Parliament.
5.IItheCouncildoesnotapprovetheEuropeanParliamentsposition,itshalladopt
itspositionatIirstreadingandcommunicateittotheEuropeanParliament.
6.TheCouncilshallinIormtheEuropeanParliamentIullyoIthereasonswhichledit
toadoptitspositionatIirstreading.TheCommissionshallinIormtheEuropean
ParliamentIullyoIitsposition.
Second reading
7.II,withinthreemonthsoIsuchcommunication,theEuropeanParliament:
(a)approvestheCouncilspositionatIirstreadingorhasnottakenadecision,theact
concernedshallbedeemedtohavebeenadoptedinthewordingwhichcorrespondsto
thepositionoItheCouncil;

170

(b)rejects,byamajorityoIitscomponentmembers,theCouncilspositionatIirst
reading,theproposedactshallbedeemednottohavebeenadopted;

(c)proposes,byamajorityoIitscomponentmembers,amendmentstotheCouncils
positionatIirstreading,thetextthusamendedshallbeIorwardedtotheCounciland
totheCommission,whichshalldeliveranopiniononthoseamendments.
8.II,withinthreemonthsoIreceivingtheEuropeanParliamentsamendments,the
Council,actingbyaqualiIiedmajority:
(a)approvesallthoseamendments,theactinquestionshallbedeemedtohavebeen
adopted;

(b)doesnotapprovealltheamendments,thePresidentoItheCouncil,inagreement
withthePresidentoItheEuropeanParliament,shallwithinsixweeksconvenea
meetingoItheConciliationCommittee.

9.TheCouncilshallactunanimouslyontheamendmentsonwhichtheCommission
hasdeliveredanegativeopinion.
Conciliation
10.TheConciliationCommittee,whichshallbecomposedoIthemembersoIthe
CouncilortheirrepresentativesandanequalnumberoImembersrepresentingthe
EuropeanParliament,shallhavethetaskoIreachingagreementonajointtext,bya
qualiIiedmajorityoIthemembersoItheCouncilortheirrepresentativesandbya
majorityoIthemembersrepresentingtheEuropeanParliamentwithinsixweeksoIits
beingconvened,onthebasisoIthepositionsoItheEuropeanParliamentandthe
Councilatsecondreading.

11.TheCommissionshalltakepartintheConciliationCommitteesproceedingsand
shalltakeallnecessaryinitiativeswithaviewtoreconcilingthepositionsoIthe
EuropeanParliamentandtheCouncil.

12.II,withinsixweeksoIitsbeingconvened,theConciliationCommitteedoesnot
approvethejointtext,theproposedactshallbedeemednottohavebeenadopted.
Third reading
13.II,withinthatperiod,theConciliationCommitteeapprovesajointtext,the
EuropeanParliament,actingbyamajorityoIthevotescast,andtheCouncil,acting
byaqualiIiedmajority,shalleachhaveaperiodoIsixweeksIromthatapprovalin
whichtoadopttheactinquestioninaccordancewiththejointtext.IItheyIailtodo
so,theproposedactshallbedeemednottohavebeenadopted.
14.TheperiodsoIthreemonthsandsixweeksreIerredtointhisArticleshallbe
extendedbyamaximumoIonemonthandtwoweeksrespectivelyattheinitiativeoI
theEuropeanParliamentortheCouncil.
Special provisions
15.Where,inthecasesprovidedIorintheTreaties,alegislativeactissubmitted
totheordinarylegislativeprocedureontheinitiativeoIagroupoIMemberStates,on
arecommendationbytheEuropeanCentralBank,orattherequestoItheCourtoI
171

Justice,paragraph2,thesecondsentenceoIparagraph6,andparagraph9shallnot
apply.
Insuchcases,theEuropeanParliamentandtheCouncilshallcommunicatethe
proposedacttotheCommissionwiththeirpositionsatIirstandsecondreadings.The
EuropeanParliamentortheCouncilmayrequesttheopinionoItheCommission
throughouttheprocedure,whichtheCommissionmayalsodeliveronitsown
initiative.Itmayalso,iIitdeemsitnecessary,takepartintheConciliationCommittee
inaccordancewithparagraph11.

Article 295

TheEuropeanParliament,theCouncilandtheCommissionshallconsulteachother
andbycommonagreementmakearrangementsIortheircooperation.Tothatend,
theymay,incompliancewiththeTreaties,concludeinterinstitutionalagreements
whichmaybeoIabindingnature.

Article 296

1.WheretheTreatiesdonotspeciIythetypeoIacttobeadopted,theinstitutions
shallselectitonacase-by-casebasis,incompliancewiththeapplicableprocedures
andwiththeprincipleoIproportionality.
2.LegalactsshallstatethereasonsonwhichtheyarebasedandshallreIertoany
proposals,initiatives,recommendations,requestsoropinionsrequiredbytheTreaties.
3.WhenconsideringdraItlegislativeacts,theEuropeanParliamentandtheCouncil
shallreIrainIromadoptingactsnotprovidedIorbytherelevantlegislativeprocedure
intheareainquestion.

Article 297

1.Legislativeactsadoptedundertheordinarylegislativeprocedureshallbesignedby
thePresidentoItheEuropeanParliamentandbythePresidentoItheCouncil.
Legislativeactsadoptedunderaspeciallegislativeprocedureshallbesignedbythe
PresidentoItheinstitutionwhichadoptedthem.
LegislativeactsshallbepublishedintheOfficial Journal of the European Union.
TheyshallenterintoIorceonthedatespeciIiedinthemor,intheabsencethereoI,on
thetwentiethdayIollowingthatoItheirpublication.
172

2.Non-legislativeactsadoptedintheIormoIregulations,directivesor decisions
whichdonotspeciIytowhomtheyareaddressed,shallbesignedbythePresidentoI
theinstitutionwhichadoptedthem.
RegulationsanddirectiveswhichareaddressedtoallMemberStates,aswellas
decisionswhichdonotspeciIytowhomtheyareaddressed,shallbepublishedinthe
Official Journal of the European Union.TheyshallenterintoIorceonthedate
speciIiedinthemor,intheabsencethereoI,onthetwentiethdayIollowingthatoI
theirpublication.
Otherdirectives,anddecisionswhichspeciIytowhomtheyareaddressed,shallbe
notiIiedtothosetowhomtheyareaddressedandshalltakeeIIectuponsuch
notiIication.

Article 298

1.Incarryingouttheirmissions,theinstitutions,bodies,oIIicesandagenciesoIthe
UnionshallhavethesupportoIanopen,eIIicientandindependentEuropean
administration.
2.IncompliancewiththeStaIIRegulationsandConditionsoIEmploymentadopted
onthebasisoIArticle336,theEuropeanParliamentandtheCouncil,actingbymeans
oIregulationsinaccordancewiththeordinarylegislativeprocedure,shallestablish
provisionstothatend.

Article 299

ActsoItheCouncil,oItheCommissionoroItheEuropeanCentralBankwhich
imposeapecuniaryobligationonpersonsotherthanStates,shallbeenIorceable.
EnIorcementshallbegovernedbytherulesoIcivilprocedureinIorceintheStatein
theterritoryoIwhichitiscarriedout.TheorderIoritsenIorcementshallbeappended
tothedecision,withoutotherIormalitythanveriIicationoItheauthenticityoIthe
decision,bythenationalauthoritywhichthegovernmentoIeachMemberStateshall
designateIorthispurposeandshallmakeknowntotheCommissionandtotheCourt
oIJusticeoItheEuropeanUnion.
WhentheseIormalitieshavebeencompletedonapplicationbythepartyconcerned,
thelattermayproceedtoenIorcementinaccordancewiththenationallaw,by
bringingthematterdirectlybeIorethecompetentauthority.
EnIorcementmaybesuspendedonlybyadecisionoItheCourt.However,thecourts
oIthecountryconcernedshallhavejurisdictionovercomplaintsthatenIorcementis
beingcarriedoutinanirregularmanner.

173

CHAPTER3

THEUNIONSADVISORYBODIES

Article 300

1.TheEuropeanParliament,theCouncilandtheCommissionshallbeassistedbyan
EconomicandSocialCommitteeandaCommitteeoItheRegions,exercising
advisoryIunctions.

2.TheEconomicandSocialCommitteeshallconsistoIrepresentativesoI
organisationsoIemployers,oItheemployed,andoIotherpartiesrepresentativeoI
civilsociety,notablyinsocio-economic,civic,proIessionalandculturalareas.

3.TheCommitteeoItheRegionsshallconsistoIrepresentativesoIregionalandlocal
bodieswhoeitherholdaregionalorlocalauthorityelectoralmandateorare
politicallyaccountabletoanelectedassembly.

4.ThemembersoItheEconomicandSocialCommitteeandtheCommitteeoIthe
Regionsshallnotbeboundbyanymandatoryinstructions.Theyshallbecompletely
independentintheperIormanceoItheirduties,intheUnionsgeneralinterest.
5.TherulesreIerredtoinparagraphs2and3governingthenatureoItheir
compositionshallbereviewedatregularintervalsbytheCounciltotakeaccountoI
economic,socialanddemographicdevelopmentswithintheUnion.TheCouncil,ona
proposalIromtheCommission,shalladoptdecisionstothatend.

SECTION1

THEECONOMICANDSOCIALCOMMITTEE

Article 301

ThenumberoImembersoItheEconomicandSocialCommitteeshallnotexceed350.
TheCouncil,actingunanimouslyonaproposalIromtheCommission,shalladopta
decisiondeterminingtheCommitteescomposition.

174

Article 302

1.ThemembersoItheCommitteeshallbeappointedIorIiveyearsTheCouncil,,
shalladoptthelistoImembersdrawnupinaccordancewiththeproposalsmadeby
eachMemberState.ThetermoIoIIiceoIthemembersoItheCommitteeshallbe
renewable.
2.TheCouncilshallactaIterconsultingtheCommission.ItmayobtaintheopinionoI
EuropeanbodieswhicharerepresentativeoIthevariouseconomicandsocialsectors
andoIcivilsocietytowhichtheUnionsactivitiesareoIconcern.

Article 303

TheCommitteeshallelectitschairmanandoIIicersIromamongitsmembersIora
termoItwoandahalIyears.
ItshalladoptitsRulesoIProcedure.
TheCommitteeshallbeconvenedbyitschairmanattherequestoItheEuropean
Parliament,theCounciloroItheCommission.Itmayalsomeetonitsowninitiative.

Article 304

TheCommitteeshallbeconsultedbytheEuropeanParliament,bytheCouncilorby
theCommissionwheretheTreatiessoprovide.TheCommitteemaybeconsultedby
theseinstitutionsinallcasesinwhichtheyconsideritappropriate.Itmayissuean
opiniononitsowninitiativeincasesinwhichitconsiderssuchactionappropriate.
TheEuropeanParliament,theCouncilortheCommissionshall,iIitconsidersit
necessary,settheCommittee,IorthesubmissionoIitsopinion,atimelimitwhich
maynotbelessthanonemonthIromthedateonwhichthechairmanreceives
notiIicationtothiseIIect.UponexpiryoIthetimelimit,theabsenceoIanopinion
shallnotpreventIurtheraction.
TheopinionoItheCommittee,togetherwitharecordoItheproceedings,shallbe
IorwardedtotheEuropeanParliament,totheCouncilandtotheCommission.

175

SECTION2

THECOMMITTEEOFTHEREGIONS

Article 305

ThenumberoImembersoItheCommitteeoItheRegionsshallnotexceed350.
TheCouncil,actingunanimouslyonaproposalIromtheCommission,shalladopta
decisiondeterminingtheCommitteescomposition.
ThemembersoItheCommitteeandanequalnumberoIalternatemembersshallbe
appointedIorIiveyears.TheirtermoIoIIiceshallberenewable.TheCouncil,,shall
adoptthelistoImembersandalternatemembersdrawnupinaccordancewiththe
proposalsmadebyeachMemberState.WhenthemandatereIerredtoinArticle
300(3)onthebasisoIwhichtheywereproposedcomestoanend,thetermoIoIIice
oImembersoItheCommitteeshallterminateautomaticallyandtheyshallthenbe
replacedIortheremainderoIthesaidtermoIoIIiceinaccordancewiththesame
procedure.NomemberoItheCommitteeshallatthesametimebeaMemberoIthe
EuropeanParliament.

Article 306

TheCommitteeoItheRegionsshallelectitschairmanandoIIicersIromamongits
membersIoratermoItwoandahalIyears.
ItshalladoptitsRulesoIProcedure.
TheCommitteeshallbeconvenedbyitschairmanattherequestoItheEuropean
Parliament,theCounciloroItheCommission.Itmayalsomeetonitsowninitiative.

Article 307

TheCommitteeoItheRegionsshallbeconsultedbytheEuropeanParliament,bythe
CouncilorbytheCommissionwheretheTreatiessoprovideandinallothercases,in
particularthosewhichconcerncross-bordercooperation,inwhichoneoIthese
institutionsconsidersitappropriate.
TheEuropeanParliament,theCouncilortheCommissionshall,iIitconsidersit
necessary,settheCommittee,IorthesubmissionoIitsopinion,atimelimitwhich
maynotbelessthanonemonthIromthedateonwhichthechairmanreceives
176

notiIicationtothiseIIect.UponexpiryoIthetimelimit,theabsenceoIanopinion
shallnotpreventIurtheraction.
WheretheEconomicandSocialCommitteeisconsulted,theCommitteeoIthe
RegionsshallbeinIormedbytheEuropeanParliament,theCouncilorthe
CommissionoItherequestIoranopinion.WhereitconsidersthatspeciIicregional
interestsareinvolved,theCommitteeoItheRegionsmayissueanopiniononthe
matter.
Itmayissueanopiniononitsowninitiativeincasesinwhichitconsiderssuchaction
appropriate.
TheopinionoItheCommittee,togetherwitharecordoItheproceedings,shallbe
IorwardedtotheEuropeanParliament,theCouncilandtotheCommission.

CHAPTER4

THEEUROPEANINVESTMENTBANK

Article 308

TheEuropeanInvestmentBankshallhavelegalpersonality.
ThemembersoItheEuropeanInvestmentBankshallbetheMemberStates.
TheStatuteoItheEuropeanInvestmentBankislaiddowninaProtocolannexedto
theTreaties.TheCouncilactingunanimouslyinaccordancewithaspeciallegislative
procedure,attherequestoItheEuropeanInvestmentBankandaIterconsultingthe
EuropeanParliamentandtheCommission,oronaproposalIromtheCommissionand
aIterconsultingtheEuropeanParliamentandtheEuropeanInvestmentBank,may
amendtheStatuteoItheBank.

Article 309

ThetaskoItheEuropeanInvestmentBankshallbetocontribute,byhavingrecourse
tothecapitalmarketandutilisingitsownresources,tothebalancedandsteady
developmentoItheinternalmarketintheinterestoItheUnion.Forthispurposethe
Bankshall,operatingonanon-proIit-makingbasis,grantloansandgiveguarantees
whichIacilitatetheIinancingoItheIollowingprojectsinallsectorsoItheeconomy:
(a)projectsIordevelopingless-developedregions;
177

(b)projectsIormodernisingorconvertingundertakingsorIordevelopingIresh
activitiescalledIorbytheestablishmentorIunctioningoItheinternalmarket,where
theseprojectsareoIsuchasizeornaturethattheycannotbeentirelyIinancedbythe
variousmeansavailableintheindividualMemberStates;
(c)projectsoIcommoninteresttoseveralMemberStateswhichareoIsuchasizeor
naturethattheycannotbeentirelyIinancedbythevariousmeansavailableinthe
individualMemberStates.
Incarryingoutitstask,theBankshallIacilitatetheIinancingoIinvestment
programmesinconjunctionwithassistanceIromtheStructuralFundsandotherUnion
FinancialInstruments.

TITLEII

FINANCIALPROVISIONS

Article 310

1.AllitemsoIrevenueandexpenditureoItheUnionshallbeincludedinestimatesto
bedrawnupIoreachIinancialyearandshallbeshowninthebudget.
TheUnionsannualbudgetshallbeestablishedbytheEuropeanParliamentandthe
CouncilinaccordancewithArticle314.
Therevenueandexpenditureshowninthebudgetshallbeinbalance.
2.TheexpenditureshowninthebudgetshallbeauthorisedIortheannualbudgetary
periodinaccordancewiththeregulationreIerredtoinArticle322.
3.TheimplementationoIexpenditureshowninthebudgetshallrequiretheprior
adoptionoIalegallybindingactoItheUnionprovidingalegalbasisIoritsactionand
IortheimplementationoIthecorrespondingexpenditureinaccordancewiththe
regulationreIerredtoinArticle322,exceptincasesIorwhichthatlawprovides.
4.Withaviewtomaintainingbudgetarydiscipline,theUnionshallnotadoptanyact
whichislikelytohaveappreciableimplicationsIorthebudgetwithoutprovidingan
assurancethattheexpenditurearisingIromsuchanactiscapableoIbeingIinanced
withinthelimitoItheUnionsownresourcesandincompliancewiththemultiannual
IinancialIrameworkreIerredtoinArticle312.
5.ThebudgetshallbeimplementedinaccordancewiththeprincipleoIsound
Iinancialmanagement.MemberStatesshallcooperatewiththeUniontoensurethat
theappropriationsenteredinthebudgetareusedinaccordancewiththisprinciple.
178

6.TheUnionandtheMemberStates,inaccordancewithArticle325,shallcounter
IraudandanyotherillegalactivitiesaIIectingtheIinancialinterestsoItheUnion.

CHAPTER1

THEUNIONSOWNRESOURCES

Article 311

TheUnionshallprovideitselIwiththemeansnecessarytoattainitsobjectivesand
carrythroughitspolicies.
Withoutprejudicetootherrevenue,thebudgetshallbeIinancedwhollyIromown
resources.
TheCouncil,actinginaccordancewithaspeciallegislativeprocedure,shall
unanimouslyandaIterconsultingtheEuropeanParliamentadoptadecisionlaying
downtheprovisionsrelatingtothesystemoIownresourcesoItheUnion.Inthis
contextitmayestablishnewcategoriesoIownresourcesorabolishanexisting
category.ThatdecisionshallnotenterintoIorceuntilitisapprovedbythe
MemberStatesinaccordancewiththeirrespectiveconstitutionalrequirements.
TheCouncil,actingbymeansoIregulationsinaccordancewithaspeciallegislative
procedure,shalllaydownimplementingmeasuresoItheUnionsownresources
systeminsoIarasthisisprovidedIorinthedecisionadoptedonthebasisoIthethird
paragraph.TheCouncilshallactaIterobtainingtheconsentoIthe
EuropeanParliament.

CHAPTER2

THEMULTIANNUALFINANCIALFRAMEWORK

Article 312

1.ThemultiannualIinancialIrameworkshallensurethatUnionexpendituredevelops
inanorderlymannerandwithinthelimitsoIitsownresources.
ItshallbeestablishedIoraperiodoIatleastIiveyears.
179

TheannualbudgetoItheUnionshallcomplywiththemultiannualIinancial
Iramework.
2.TheCouncil,actinginaccordancewithaspeciallegislativeprocedure,shalladopta
regulationlayingdownthemultiannualIinancialIramework.TheCouncilshallact
unanimouslyaIterobtainingtheconsentoItheEuropeanParliament,whichshallbe
givenbyamajorityoIitscomponentmembers.
TheEuropeanCouncilmay,unanimously,adoptadecisionauthorisingtheCouncilto
actbyaqualiIiedmajoritywhenadoptingtheregulationoItheCouncilreIerredtoin
theIirstsubparagraph.
3.TheIinancialIrameworkshalldeterminetheamountsoItheannualceilingson
commitmentappropriationsbycategoryoIexpenditureandoItheannualceilingon
paymentappropriations.ThecategoriesoIexpenditure,limitedinnumber,shall
correspondtotheUnionsmajorsectorsoIactivity.
TheIinancialIrameworkshalllaydownanyotherprovisionsrequiredIortheannual
budgetaryproceduretorunsmoothly.
4.WherenoCouncilregulationdetermininganewIinancialIrameworkhasbeen
adoptedbytheendoIthepreviousIinancialIramework,theceilingsandother
provisionscorrespondingtothelastyearoIthatIrameworkshallbeextendeduntil
suchtimeasthatactisadopted.
5.ThroughouttheprocedureleadingtotheadoptionoItheIinancialIramework,the
EuropeanParliament,theCouncilandtheCommissionshalltakeanymeasure
necessarytoIacilitateitsadoption.

CHAPTER3

THEUNIONSANNUALBUDGET

Article 313

TheIinancialyearshallrunIrom1Januaryto31December.

Article 314

TheEuropeanParliamentandtheCouncil,actinginaccordancewithaspecial
legislativeprocedure,shallestablishtheUnionsannualbudgetinaccordancewiththe
Iollowingprovisions.
180

1.WiththeexceptionoItheEuropeanCentralBank,eachinstitutionshall,beIore
1July,drawupestimatesoIitsexpenditureIortheIollowingIinancialyear.The
CommissionshallconsolidatetheseestimatesinadraItbudget.whichmaycontain
diIIerentestimates.
ThedraItbudgetshallcontainanestimateoIrevenueandanestimateoIexpenditure.
2.TheCommissionshallsubmitaproposalcontainingthedraItbudgettothe
EuropeanParliamentandtotheCouncilnotlaterthan1SeptemberoItheyear
precedingthatinwhichthebudgetistobeimplemented.
TheCommissionmayamendthedraItbudgetduringtheprocedureuntilsuchtimeas
theConciliationCommittee,reIerredtoinparagraph5,isconvened.
3.TheCouncilshalladoptitspositiononthedraItbudgetandIorwardittothe
EuropeanParliamentnotlaterthan1OctoberoItheyearprecedingthatinwhichthe
budgetistobeimplemented.TheCouncilshallinIormtheEuropeanParliamentin
IulloIthereasonswhichledittoadoptitsposition.

4.II,withinIorty-twodaysoIsuchcommunication,theEuropeanParliament:

(a)approvesthepositionoItheCouncil,thebudgetshallbeadopted;

(b)hasnottakenadecision,thebudgetshallbedeemedtohavebeenadopted;

(c)adoptsamendmentsbyamajorityoIitscomponentmembers,theamendeddraIt
shallbeIorwardedtotheCouncilandtotheCommission.ThePresidentoIthe
EuropeanParliament,inagreementwiththePresidentoItheCouncil,shall
immediatelyconveneameetingoItheConciliationCommittee.However,iIwithin
tendaysoIthedraItbeingIorwardedtheCouncilinIormstheEuropeanParliament
thatithasapprovedallitsamendments,theConciliationCommitteeshallnotmeet.

5.TheConciliationCommittee,whichshallbecomposedoIthemembersoIthe
CouncilortheirrepresentativesandanequalnumberoImembersrepresentingthe
EuropeanParliament,shallhavethetaskoIreachingagreementonajointtext,bya
qualiIiedmajority oIthemembersoItheCouncilortheirrepresentativesandbya
majorityoItherepresentativesoItheEuropeanParliamentwithintwenty-onedaysoI
itsbeingconvened,onthebasisoIthepositionsoItheEuropeanParliamentandthe
Council.

TheCommissionshalltakepartintheConciliationCommitteesproceedingsand
shalltakeallthenecessaryinitiativeswithaviewtoreconcilingthepositionsoIthe
EuropeanParliamentandtheCouncil.
6.II,withinthetwenty-onedaysreIerredtoinparagraph5,theConciliation
Committeeagreesonajointtext,theEuropeanParliamentandtheCouncilshalleach
haveaperiodoIIourteendaysIromthedateoIthatagreementinwhichtoapprove
thejointtext.
7.II,withintheperiodoIIourteendaysreIerredtoinparagraph6:
(a)theEuropeanParliamentandtheCouncilbothapprovethejointtextorIailtotake
adecision,oriIoneoItheseinstitutionsapprovesthejointtextwhiletheotherone
181

Iailstotakeadecision,thebudgetshallbedeemedtobedeIinitivelyadoptedin
accordancewiththejointtext,or
(b)theEuropeanParliament,actingbyamajorityoIitscomponentmembers,andthe
Councilbothrejectthejointtext,oriIoneoItheseinstitutionsrejectsthejointtext
whiletheotheroneIailstotakeadecision,anewdraItbudgetshallbesubmittedby
theCommission,or
(c)theEuropeanParliament,actingbyamajorityoIitscomponentmembers,rejects
thejointtextwhiletheCouncilapprovesit,anewdraItbudgetshallbesubmittedby
theCommission,or
(d)theEuropeanParliamentapprovesthejointtextwhilsttheCouncilrejectsit,the
EuropeanParliamentmay,withinIourteendaysIromthedateoItherejectionbythe
CouncilandactingbyamajorityoIitscomponentmembersandthree-IiIthsoIthe
votescast,decidetoconIirmallorsomeoItheamendmentsreIerredtoin
paragraph4(c).WhereaEuropeanParliamentamendmentisnotconIirmed,the
positionagreedintheConciliationCommitteeonthebudgetheadingwhichisthe
subjectoItheamendmentshallberetained.Thebudgetshallbedeemedtobe
deIinitivelyadoptedonthisbasis.
8.II,withinthetwenty-onedaysreIerredtoinparagraph5,theConciliation
Committeedoesnotagreeonajointtext,anewdraItbudgetshallbesubmittedbythe
Commission.
9.WhentheprocedureprovidedIorinthisArticlehasbeencompleted,thePresident
oItheEuropeanParliamentshalldeclarethatthebudgethasbeendeIinitively
adopted.
10.EachinstitutionshallexercisethepowersconIerreduponitunderthisArticlein
compliancewiththeTreatiesandtheactsadoptedthereunder,withparticularregard
totheUnionsownresourcesandthebalancebetweenrevenueandexpenditure.

Article 315

II,atthebeginningoIaIinancialyear,thebudgethasnotyetbeendeIinitively
adopted,asumequivalenttonotmorethanonetwelIthoIthebudgetappropriations
IortheprecedingIinancialyearmaybespenteachmonthinrespectoIanychapteroI
thebudgetinaccordancewiththeprovisionsoItheRegulationsmadepursuantto
Article322;thatsumshallnot,however,exceedonetwelIthoItheappropriations
providedIorinthesamechapteroIthedraItbudget.
TheCouncilonaproposalbytheCommissionmay,providedthattheotherconditions
laiddownintheIirstparagraphareobserved,authoriseexpenditureinexcessoIone
twelIth,inaccordancewiththeregulationsmadepursuanttoArticle322.TheCouncil
shallIorwardthedecisionimmediatelytotheEuropeanParliament.
182

ThedecisionreIerredtointhesecondsubparagraphshalllaydownthenecessary
measuresrelatingtoresourcestoensureapplicationoIthisArticle,inaccordancewith
theactsreIerredtoinArticle311.
ItshallenterintoIorcethirtydaysIollowingitsadoptioniItheEuropeanParliament,
actingbyamajorityoIitscomponentmembers,hasnotdecidedtoreducethis
expenditurewithinthattime-limit.

Article 316

InaccordancewithconditionstobelaiddownpursuanttoArticle322,any
appropriations,otherthanthoserelatingtostaIIexpenditure,thatareunexpendedat
theendoItheIinancialyearmaybecarriedIorwardtothenextIinancialyearonly.
AppropriationsshallbeclassiIiedunderdiIIerentchaptersgroupingitemsoI
expenditureaccordingtotheirnatureorpurposeandsubdivided,,inaccordancewith
theregulationsmadepursuanttoArticle322.
TheexpenditureoItheEuropeanParliament,theEuropeanCouncilandtheCouncil,
theCommissionandtheCourtoIJusticeoItheEuropeanUnionshallbesetoutin
separatepartsoIthebudget,withoutprejudicetospecialarrangementsIorcertain
commonitemsoIexpenditure.

CHAPTER4

THEIMPLEMENTATIONOFTHEBUDGETANDDISCHARGE

Article 317

TheCommissionshallimplementthebudgetincooperationwiththeMemberStates,
inaccordancewiththeprovisionsoItheregulationsmadepursuanttoArticle322,on
itsownresponsibilityandwithinthelimitsoItheappropriations,havingregardtothe
principleoIsoundIinancialmanagement.MemberStatesshallcooperatewiththe
Commissiontoensurethattheappropriationsareusedinaccordancewiththe
principlesoIsoundIinancialmanagement.
TheregulationsshalllaydownthecontrolandauditobligationsoItheMemberStates
intheimplementationoIthebudgetandtheresultingresponsibilities.Theyshallalso
laydowntheresponsibilitiesanddetailedrulesIoreachinstitutionconcerningitspart
ineIIectingitsownexpenditure.
183

Withinthebudget,theCommissionmay,subjecttothelimitsandconditionslaid
downintheregulationsmadepursuanttoArticle322,transIerappropriationsIrom
onechaptertoanotherorIromonesubdivisiontoanother.

Article 318

TheCommissionshallsubmitannuallytotheEuropeanParliamentandtotheCouncil
theaccountsoItheprecedingIinancialyearrelatingtotheimplementationoIthe
budget.TheCommissionshallalsoIorwardtothemaIinancialstatementoItheassets
andliabilitiesoItheUnion.
TheCommissionshallalsosubmittotheEuropeanParliamentandtotheCouncilan
evaluationreportontheUnionsIinancesbasedontheresultsachieved,inparticular
inrelationtotheindicationsgivenbytheEuropeanParliamentandtheCouncil
pursuanttoArticle319.

Article 319

1.TheEuropeanParliament,actingonarecommendationIromtheCouncil,shallgive
adischargetotheCommissioninrespectoItheimplementationoIthebudget.Tothis
end,theCouncilandtheEuropeanParliamentinturnshallexaminetheaccounts,the
IinancialstatementandtheevaluationreportreIerredtoinArticle318,theannual
reportbytheCourtoIAuditorstogetherwiththerepliesoItheinstitutionsunderaudit
totheobservationsoItheCourtoIAuditors,thestatementoIassurancereIerredtoin
Article287(1),secondsubparagraphandanyrelevantspecialreportsbytheCourtoI
Auditors.
2.BeIoregivingadischargetotheCommission,orIoranyotherpurposein
connectionwiththeexerciseoIitspowersovertheimplementationoIthebudget,the
EuropeanParliamentmayasktoheartheCommissiongiveevidencewithregardto
theexecutionoIexpenditureortheoperationoIIinancialcontrolsystems.The
CommissionshallsubmitanynecessaryinIormationtotheEuropeanParliamentatthe
lattersrequest.
3.TheCommissionshalltakeallappropriatestepstoactontheobservationsinthe
decisionsgivingdischargeandonotherobservationsbytheEuropeanParliament
relatingtotheexecutionoIexpenditure,aswellasoncommentsaccompanyingthe
recommendationsondischargeadoptedbytheCouncil.
AttherequestoItheEuropeanParliamentortheCouncil,theCommissionshallreport
onthemeasurestakeninthelightoItheseobservationsandcommentsandin
particularontheinstructionsgiventothedepartmentswhichareresponsibleIorthe
implementationoIthebudget.ThesereportsshallalsobeIorwardedtotheCourtoI
Auditors.

184

CHAPTER5

COMMONPROVISIONS

Article 320

ThemultiannualIinancialIrameworkandtheannualbudgetshallbedrawnupin
euro.

Article 321

TheCommissionmay,provideditnotiIiesthecompetentauthoritiesoItheMember
Statesconcerned,transIerintothecurrencyoIoneoItheMemberStatesitsholdings
inthecurrencyoIanotherMemberState,totheextentnecessarytoenablethemtobe
usedIorpurposeswhichcomewithinthescopeoItheTreaties.TheCommissionshall
asIaraspossibleavoidmakingsuchtransIersiIitpossessescashorliquidassetsin
thecurrencieswhichitneeds.
TheCommissionshalldealwitheachMemberStatethroughtheauthoritydesignated
bytheStateconcerned.IncarryingoutIinancialoperationstheCommissionshall
employtheservicesoIthebankoIissueoItheMemberStateconcernedoroIany
otherIinancialinstitutionapprovedbythatState.

Article 322

1.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,andaIterconsultingtheCourtoIAuditorsshalladoptbymeans
oIregulations:
(a)theIinancialruleswhichdetermineinparticulartheproceduretobeadoptedIor
establishingandimplementingthebudgetandIorpresentingandauditingaccounts;

(b)rulesprovidingIorchecksontheresponsibilityoIIinancialactors,inparticular
authorisingoIIicersandaccountingoIIicers.
2.TheCouncil,actingonaproposalIromtheCommissionandaIterconsultingthe
EuropeanParliamentandtheCourtoIAuditors,shalldeterminemethodsand
procedurewherebythebudgetrevenueprovidedunderthearrangementsrelatingto
theUnionsownresourcesshallbemadeavailabletotheCommission,anddetermine
themeasurestobeapplied,iIneedbe,tomeetcashrequirements.

185

Article 323

TheEuropeanParliament,theCouncilandtheCommissionshallensurethatthe
IinancialmeansaremadeavailabletoallowtheUniontoIulIilitslegalobligationsin
respectoIthirdparties.

Article 324

RegularmeetingsbetweenthePresidentsoItheEuropeanParliament,theCounciland
theCommissionshallbeconvened,ontheinitiativeoItheCommission,underthe
budgetaryproceduresreIerredtointhisChapter.ThePresidentsshalltakeallthe
necessarystepstopromoteconsultationandthereconciliationoIthepositionsoIthe
institutionsoverwhichtheypresideinordertoIacilitatetheimplementationoIthis
Title.

CHAPTER6

COMBATTINGFRAUD

Article 325

1.TheUnionandtheMemberStatesshallcounterIraudandanyotherillegal
activitiesaIIectingtheIinancialinterestsoItheUnionthroughmeasurestobetakenin
accordancewiththisArticle,whichshallactasadeterrentandbesuchastoaIIord
eIIectiveprotectionintheMemberStates,andinalltheUnionsinstitutions,bodies,
oIIicesandagencies.
2.MemberStatesshalltakethesamemeasurestocounterIraudaIIectingtheIinancial
interestsoItheUnionastheytaketocounterIraudaIIectingtheirownIinancial
interests.
3.WithoutprejudicetootherprovisionsoItheTreaties,theMemberStatesshall
coordinatetheiractionaimedatprotectingtheIinancialinterestsoItheUnionagainst
Iraud.Tothisendtheyshallorganise,togetherwiththeCommission,closeand
regularcooperationbetweenthecompetentauthorities.
4.TheEuropeanParliamentandtheCouncil,actinginaccordancewiththeordinary
legislativeprocedure,aIterconsultingtheCourtoIAuditors,shalladoptthenecessary
measuresintheIieldsoIthepreventionoIandIightagainstIraudaIIectingthe
186

IinancialinterestsoItheUnionwithaviewtoaIIordingeIIectiveandequivalent
protectionintheMemberStatesandinalltheUnionsinstitutions,bodies,oIIicesand
agencies.
5.TheCommission,incooperationwithMemberStates,shalleachyearsubmittothe
EuropeanParliamentandtotheCouncilareportonthemeasurestakenIorthe
implementationoIthisArticle.

TITLEIII

ENHANCEDCOOPERATION

Article 326

AnyenhancedcooperationshallcomplywiththeTreatiesandUnionlaw.
Suchcooperationshallnotunderminetheinternalmarketoreconomic,socialand
territorialcohesion.Itshallnotconstituteabarriertoordiscriminationintrade
betweenMemberStates,norshallitdistortcompetitionbetweenthem.

Article 327

Anyenhancedcooperationshallrespectthecompetences,rightsandobligationsoI
thoseMemberStateswhichdonotparticipateinit.ThoseMemberStatesshallnot
impedeitsimplementationbytheparticipatingMemberStates.

Article 328

1.Whenenhancedcooperationisbeingestablished,itshallbeopentoallMember
States,subjecttocompliancewithanyconditionsoIparticipationlaiddownbythe
authorisingdecision.Itshallalsobeopentothematanyothertime,subjectto
compliancewiththeactsalreadyadoptedwithinthatIramework,inadditiontothose
conditions.
TheCommissionandtheMemberStatesparticipatinginenhancedcooperationshall
ensurethattheypromoteparticipationbyasmanyMemberStatesaspossible.
2.TheCommissionand,whereappropriate,theHighRepresentativeoItheUnionIor
ForeignAIIairsandSecurityPolicyshallkeeptheEuropeanParliamentandthe
CouncilregularlyinIormedregardingdevelopmentsinenhancedcooperation.
187

Article 329

1.MemberStateswhichwishtoestablishenhancedcooperationbetweenthemselves
inoneoItheareascoveredbytheTreaties,withtheexceptionoIIieldsoIexclusive
competenceandthecommonIoreignandsecuritypolicy,shalladdressarequestto
theCommission,speciIyingthescopeandobjectivesoItheenhancedcooperation
proposed.TheCommissionmaysubmitaproposaltotheCounciltothateIIect.Inthe
eventoItheCommissionnotsubmittingaproposal,itshallinIormtheMemberStates
concernedoIthereasonsIornotdoingso.
AuthorisationtoproceedwiththeenhancedcooperationreIerredtointheIirst
subparagraphshallbegrantedbyadecisionoItheCouncil,onaproposalIromthe
CommissionandaIterobtainingtheconsentoItheEuropeanParliament.
2.TherequestoItheMemberStateswhichwishtoestablishenhancedcooperation
betweenthemselveswithintheIrameworkoIthecommonIoreignandsecuritypolicy
shallbeaddressedtotheCouncil.ItshallbeIorwardedtotheHighRepresentativeoI
theUnionIorForeignAIIairsandSecurityPolicy,whoshallgiveanopinionon
whethertheenhancedcooperationproposedisconsistentwiththeUnionscommon
Ioreignandsecuritypolicy,andtotheCommission,whichshallgiveitsopinionin
particularonwhethertheenhancedcooperationproposedisconsistentwithother
Unionpolicies.ItshallalsobeIorwardedtotheEuropeanParliamentIorinIormation.
AuthorisationtoproceedwithenhancedcooperationshallbegrantedbyadecisionoI
theCouncilactingunanimously.

Article 330

AllmembersoItheCouncilmayparticipateinitsdeliberations,butonlymembersoI
theCouncilrepresentingtheMemberStatesparticipatinginenhancedcooperation
shalltakepartinthevote.
UnanimityshallbeconstitutedbythevotesoItherepresentativesoItheparticipating
MemberStatesonly.
AqualiIiedmajorityshallbedeIinedinaccordancewithArticle238(3).

Article 331

1.AnyMemberStatewhichwishestoparticipateinenhancedcooperationinprogress
inoneoItheareasreIerredtoinArticle329(1)shallnotiIyitsintentiontotheCouncil
andtheCommission.
188

TheCommissionshall,withinIourmonthsoIthedateoIreceiptoIthatnotiIication,
conIirmtheparticipationoItheMemberStateconcerned.Itshallnotewhere
necessarythattheconditionsoIparticipationhavebeenIulIilledandshalladoptany
transitionalmeasuresnecessarywithregardtotheapplicationoItheactsalready
adoptedwithintheIrameworkoIenhancedcooperation.
However,iItheCommissionconsidersthattheconditionsoIparticipationhavenot
beenIulIilled,itshallindicatethearrangementstobeadoptedtoIulIilthose
conditionsandshallsetadeadlineIorre-examiningtherequest.OntheexpiryoIthat
deadline,itshallre-examinetherequest,inaccordancewiththeproceduresetoutin
thesecondsubparagraph.IItheCommissionconsidersthattheconditionsoI
participationhavestillnotbeenmet,theMemberStateconcernedmayreIerthe
mattertotheCouncil,whichshalldecideontherequest.TheCouncilshallactin
accordancewithArticle330.ItmayalsoadoptthetransitionalmeasuresreIerredtoin
thesecondsubparagraphonaproposalIromtheCommission.
2.AnyMemberStatewhichwishestoparticipateinenhancedcooperationinprogress
intheIrameworkoIthecommonIoreignandsecuritypolicyshallnotiIyitsintention
totheCouncil,theHighRepresentativeoItheUnionIorForeignAIIairsandSecurity
PolicyandtheCommission.
TheCouncilshallconIirmtheparticipationoItheMemberStateconcerned,aIter
consultingtheHighRepresentativeoItheUnionIorForeignAIIairsandSecurity
PolicyandaIternoting,wherenecessary,thattheconditionsoIparticipationhave
beenIulIilled.TheCouncil,onaproposalIromtheHighRepresentative,mayalso
adoptanytransitionalmeasuresnecessarywithregardtotheapplicationoItheacts
alreadyadoptedwithintheIrameworkoIenhancedcooperation.However,iIthe
CouncilconsidersthattheconditionsoIparticipationhavenotbeenIulIilled,itshall
indicatethearrangementstobeadoptedtoIulIilthoseconditionsandshallseta
deadlineIorre-examiningtherequestIorparticipation.
ForthepurposesoIthisparagraph,theCouncilshallactunanimouslyandin
accordancewithArticle330.

Article 332

ExpenditureresultingIromimplementationoIenhancedcooperation,otherthan
administrativecostsentailedIortheinstitutions,shallbebornebytheparticipating
MemberStates,unlessallmembersoItheCouncil,actingunanimouslyaIter
consultingtheEuropeanParliament,decideotherwise.

Article 333

1.WhereaprovisionoItheTreatieswhichmaybeappliedinthecontextoIenhanced
cooperationstipulatesthattheCouncilshallactunanimously,theCouncil,acting
189

unanimouslyinaccordancewiththearrangementslaiddowninArticle330,may
adoptadecisionstipulatingthatitwillactbyaqualiIiedmajority.
2.WhereaprovisionoItheTreatieswhichmaybeappliedinthecontextoIenhanced
cooperationstipulatesthattheCouncilshalladoptactsunderaspeciallegislative
procedure,theCouncil,actingunanimouslyinaccordancewiththearrangementslaid
downinArticle330,mayadoptadecisionstipulatingthatitwillactunderthe
ordinarylegislativeprocedure.TheCouncilshallactaIterconsultingtheEuropean
Parliament.
3.Paragraphs1and2shallnotapplytodecisionshavingmilitaryordeIence
implications.

Article 334

TheCouncilandtheCommissionshallensuretheconsistencyoIactivitiesundertaken
inthecontextoIenhancedcooperationandtheconsistencyoIsuchactivitieswiththe
policiesoItheUnion,andshallcooperatetothatend.

PARTSEVEN

GENERALANDFINALPROVISIONS

Article 335

IneachoItheMemberStates,theUnionshallenjoythemostextensivelegalcapacity
accordedtolegalpersonsundertheirlaws;itmay,inparticular,acquireordisposeoI
movableandimmovablepropertyandmaybeapartytolegalproceedings.Tothis
end,theUnionshallberepresentedbytheCommission.However,theUnionshallbe
representedbyeachoItheinstitutions,byvirtueoItheiradministrativeautonomy,in
mattersrelatingtotheirrespectiveoperation.

Article 336

TheEuropeanParliamentandtheCouncilshall,actingbymeansoIregulationsin
accordancewiththeordinarylegislativeprocedureonaproposalIromthe
CommissionandaIterconsultingtheotherinstitutionsconcerned,laydowntheStaII
RegulationsoIoIIicialsoItheEuropeanUnionandtheConditionsoIemploymentoI
otherservantsoItheUnion.
190

Article 337

TheCommissionmay,withinthelimitsandunderconditionslaiddownbythe
Council,actingbyasimplemajorityinaccordancewiththeprovisionsoItheTreaties,
collectanyinIormationandcarryoutanychecksrequiredIortheperIormanceoIthe
tasksentrustedtoit.

Article 338

1.WithoutprejudicetoArticle5oItheProtocolontheStatuteoItheEuropean
SystemoICentralBanksandoItheEuropeanCentralBank,theEuropeanParliament
andtheCouncil,actinginaccordancewiththeordinarylegislativeprocedure,shall
adoptmeasuresIortheproductionoIstatisticswherenecessaryIortheperIormanceoI
theactivitiesoItheUnion.
2.TheproductionoIUnionstatisticsshallconIormtoimpartiality,reliability,
objectivity,scientiIicindependence,cost-eIIectivenessandstatisticalconIidentiality;
itshallnotentailexcessiveburdensoneconomicoperators.

Article 339

ThemembersoItheinstitutionsoItheUnion,themembersoIcommittees,andthe
oIIicialsandotherservantsoItheUnionshallberequired,evenaItertheirdutieshave
ceased,nottodiscloseinIormationoIthekindcoveredbytheobligationoI
proIessionalsecrecy,inparticularinIormationaboutundertakings,theirbusiness
relationsortheircostcomponents.

Article 340

ThecontractualliabilityoItheUnionshallbegovernedbythelawapplicabletothe
contractinquestion.
InthecaseoInon-contractualliability,theUnionshall,inaccordancewiththegeneral
principlescommontothelawsoItheMemberStates,makegoodanydamagecaused
byitsinstitutionsorbyitsservantsintheperIormanceoItheirduties.
191

Notwithstandingthesecondparagraph,theEuropeanCentralBankshall,in
accordancewiththegeneralprinciplescommontothelawsoItheMemberStates,
makegoodanydamagecausedbyitorbyitsservantsintheperIormanceoItheir
duties.
ThepersonalliabilityoIitsservantstowardstheUnionshallbegovernedbythe
provisionslaiddownintheirStaIIRegulationsorintheConditionsoIemployment
applicabletothem.

Article 341

TheseatoItheinstitutionsoItheUnionshallbedeterminedbycommonaccordoIthe
governmentsoItheMemberStates.

Article 342

TherulesgoverningthelanguagesoItheinstitutionsoItheUnionshall,without
prejudicetotheprovisionscontainedintheStatuteoItheCourtoIJustice,be
determinedbytheCouncil,actingunanimouslybymeansoIregulations.

Article 343

TheUnionshallenjoyintheterritoriesoItheMemberStatessuchprivilegesand
immunitiesasarenecessaryIortheperIormanceoIitstasks,undertheconditionslaid
downintheProtocoloI8April1965ontheprivilegesandimmunitiesoIthe
EuropeanUnion.ThesameshallapplytotheEuropeanCentralBankandthe
EuropeanInvestmentBank.

Article 344

MemberStatesundertakenottosubmitadisputeconcerningtheinterpretationor
applicationoItheTreatiestoanymethodoIsettlementotherthanthoseprovidedIor
therein.

192

Article 345

TheTreatiesshallinnowayprejudicetherulesinMemberStatesgoverningthe
systemoIpropertyownership.

Article 346

1.TheprovisionsoItheTreatiesshallnotprecludetheapplicationoItheIollowing
rules:
(a)noMemberStateshallbeobligedtosupplyinIormationthedisclosureoIwhichit
considerscontrarytotheessentialinterestsoIitssecurity;
(b)anyMemberStatemaytakesuchmeasuresasitconsidersnecessaryIorthe
protectionoItheessentialinterestsoIitssecuritywhichareconnectedwiththe
productionoIortradeinarms,munitionsandwarmaterial;suchmeasuresshallnot
adverselyaIIecttheconditionsoIcompetitionintheinternalmarketregarding
productswhicharenotintendedIorspeciIicallymilitarypurposes.
2.TheCouncilmay,actingunanimouslyonaproposalIromtheCommission,make
changestothelist,whichitdrewupon15April1958,oItheproductstowhichthe
provisionsoIparagraph1(b)apply.

Article 347

MemberStatesshallconsulteachotherwithaviewtotakingtogetherthesteps
neededtopreventtheIunctioningoItheinternalmarketbeingaIIectedbymeasures
whichaMemberStatemaybecalledupontotakeintheeventoIseriousinternal
disturbancesaIIectingthemaintenanceoIlawandorder,intheeventoIwar,serious
internationaltensionconstitutingathreatoIwar,orinordertocarryoutobligationsit
hasacceptedIorthepurposeoImaintainingpeaceandinternationalsecurity.

Article 348

IImeasurestakeninthecircumstancesreIerredtoinArticles346and347havethe
eIIectoIdistortingtheconditionsoIcompetitionintheinternalmarket,the
Commissionshall,togetherwiththeStateconcerned,examinehowthesemeasures
canbeadjustedtotheruleslaiddownintheTreaties.
BywayoIderogationIromtheprocedurelaiddowninArticles258and259,the
CommissionoranyMemberStatemaybringthematterdirectlybeIoretheCourtoI
193

JusticeiIitconsidersthatanotherMemberStateismakingimproperuseoIthe
powersprovidedIorinArticles346and347.TheCourtoIJusticeshallgiveitsruling
incamera.

Article 349

TakingaccountoIthestructuralsocialandeconomicsituationoIGuadeloupe,French
Guiana,Martinique,Runion,SaintBarthlemy,SaintMartin,theAzores,Madeira
andtheCanaryIslands,whichiscompoundedbytheirremoteness,insularity,small
size,diIIiculttopographyandclimate,economicdependenceonaIewproducts,the
permanenceandcombinationoIwhichseverelyrestraintheirdevelopment,the
Council,onaproposalIromtheCommissionandaIterconsultingtheEuropean
Parliament,shalladoptspeciIicmeasuresaimed,inparticular,atlayingdownthe
conditionsoIapplicationoItheTreatiestothoseregions,includingcommonpolicies.
WherethespeciIicmeasuresinquestionareadoptedbytheCouncilinaccordance
withaspeciallegislativeprocedure,itshallalsoactonaproposalIromthe
CommissionandaIterconsultingtheEuropeanParliament.
ThemeasuresreIerredtointheIirstparagraphconcerninparticularareassuchas
customsandtradepolicies,Iiscalpolicy,Ireezones,agricultureandIisheriespolicies,
conditionsIorsupplyoIrawmaterialsandessentialconsumergoods,Stateaidsand
conditionsoIaccesstostructuralIundsandtohorizontalUnionprogrammes.
TheCouncilshalladoptthemeasuresreIerredtointheIirstsubparagraphtakinginto
accountthespecialcharacteristicsandconstraintsoItheoutermostregionswithout
underminingtheintegrityandthecoherenceoItheUnionlegalorder,includingthe
internalmarketandcommonpolicies.

Article 350

TheprovisionsoItheTreatiesshallnotprecludetheexistenceorcompletionoI
regionalunionsbetweenBelgiumandLuxembourg,orbetweenBelgium,
LuxembourgandtheNetherlands,totheextentthattheobjectivesoItheseregional
unionsarenotattainedbyapplicationoItheTreaties.

Article 351

TherightsandobligationsarisingIromagreementsconcludedbeIore1January1958
or,IoraccedingStates,beIorethedateoItheiraccession,betweenoneormore
MemberStatesontheonehand,andoneormorethirdcountriesontheother,shall
notbeaIIectedbytheprovisionsoItheTreaties.
194

TotheextentthatsuchagreementsarenotcompatiblewiththeTreaties,theMember
StateorStatesconcernedshalltakeallappropriatestepstoeliminatethe
incompatibilitiesestablished.MemberStatesshall,wherenecessary,assisteachother
tothisendandshall,whereappropriate,adoptacommonattitude.
InapplyingtheagreementsreIerredtointheIirstparagraph,MemberStatesshalltake
intoaccounttheIactthattheadvantagesaccordedundertheTreatiesbyeachMember
StateIormanintegralpartoItheestablishmentoItheUnionandarethereby
inseparablylinkedwiththecreationoIcommoninstitutions,theconIerringoIpowers
uponthemandthegrantingoIthesameadvantagesbyalltheotherMemberStates.

Article 352

1.IIactionbytheUnionshouldprovenecessary,withintheIrameworkoIthepolicies
deIinedbytheTreaties,toattainoneoItheobjectivessetoutintheTreaties,andthe
Treatieshavenotprovidedthenecessarypowers,theCouncil,actingunanimouslyon
aproposalIromtheEuropeanCommissionandaIterobtainingtheconsentoIthe
EuropeanParliament,shalladopttheappropriatemeasures.Wherethemeasuresin
questionareadoptedbytheCouncilinaccordancewithaspeciallegislative
procedure,itshallalsoactunanimouslyonaproposalIromtheCommissionandaIter
obtainingtheconsentoItheEuropeanParliament.
2.UsingtheprocedureIormonitoringthesubsidiarityprinciplereIerredtoin
Article5(3)oItheTreatyonEuropeanUnion,theCommissionshalldrawnational
ParliamentsattentiontoproposalsbasedonthisArticle.
3.MeasuresbasedonthisArticleshallnotentailharmonisationoIMemberStates
lawsorregulationsincaseswheretheTreatiesexcludesuchharmonisation.
4.ThisArticlecannotserveasabasisIorattainingobjectivespertainingtothe
commonIoreignandsecuritypolicyandanyactsadoptedpursuanttothisArticle
shallrespectthelimitssetoutinArticle40,secondparagraph,oItheTreatyon
EuropeanUnion.

Article 353

Article48(7)oItheTreatyonEuropeanUnionshallnotapplytotheIollowing
Articles:
Article311,thirdandIourthparagraphs,
Article312(2),Iirstparagraph,
Article352,and
Article354.

195

Article 354

ForthepurposesoIArticle7oItheTreatyonEuropeanUnionrelatingtothe
suspensionoIcertainrightsresultingIrommembershipoItheUnion,thememberoI
theEuropeanCounciloroItheCouncilrepresentingtheMemberStateinquestion
shallnottakepartinthevoteandtheMemberStateinquestionshallnotbecounted
inthecalculationoItheonethirdorIourIiIthsoIMemberStatesreIerredtoin
paragraphs1and2oIthatArticle.Abstentionsbymemberspresentinpersonor
representedshallnotpreventtheadoptionoIdecisionsreIerredtoinparagraph2oI
thatArticle.
FortheadoptionoIthedecisionsreIerredtoinparagraphs3and4oIArticle7oIthe
TreatyonEuropeanUnion,aqualiIiedmajorityshallbedeIinedinaccordancewith
Article238(3)(b)oIthisTreaty.
Where,Iollowingadecisiontosuspendvotingrightsadoptedpursuanttoparagraph3
oIArticle7oItheTreatyonEuropeanUnion,theCouncilactsbyaqualiIiedmajority
onthebasisoIaprovisionoItheTreaties,thatqualiIiedmajorityshallbedeIinedin
accordancewithArticle238(3)(b)oIthisTreaty,or,wheretheCouncilactsona
proposalIromtheCommissionorIromtheHighRepresentativeoItheUnionIor
ForeignAIIairsandSecurityPolicy,inaccordancewithArticle238(3)(a).
ForthepurposesoIArticle7oItheTreatyonEuropeanUnion,the
EuropeanParliamentshallactbyatwo-thirdsmajorityoIthevotescast,representing
themajorityoIitscomponentmembers.

Article 355

InadditiontotheprovisionsoIArticle52oItheTreatyonEuropeanUnionrelatingto
theterritorialscopeoItheTreaties,theIollowingprovisionsshallapply:
1.TheprovisionsoItheTreatiesshallapplytoGuadeloupe,FrenchGuiana,
Martinique,Runion,SaintBarthlemy,SaintMartin,theAzores,Madeiraandthe
CanaryIslandsinaccordancewithArticle349.
2.ThespecialarrangementsIorassociationsetoutinPartFourshallapplytothe
overseascountriesandterritorieslistedinAnnexII.
TheTreatiesshallnotapplytothoseoverseascountriesandterritorieshavingspecial
relationswiththeUnitedKingdomoIGreatBritainandNorthernIrelandwhichare
notincludedintheaIorementionedlist.
3.TheprovisionsoItheTreatiesshallapplytotheEuropeanterritoriesIorwhose
externalrelationsaMemberStateisresponsible.
4.TheprovisionsoItheTreatiesshallapplytotheAlandIslandsinaccordancewith
theprovisionssetoutinProtocol2totheActconcerningtheconditionsoIaccession
oItheRepublicoIAustria,theRepublicoIFinlandandtheKingdomoISweden.
196

5.NotwithstandingArticle52oItheTreatyonEuropeanUnionandparagraphs1to4
oIthisArticle:
(a)theTreatiesshallnotapplytotheFaeroeIslands;
(b)theTreatiesshallnotapplytotheUnitedKingdomSovereignBaseAreasoI
AkrotiriandDhekeliainCyprusexcepttotheextentnecessarytoensurethe
implementationoIthearrangementssetoutintheProtocolontheSovereignBase
AreasoItheUnitedKingdomoIGreatBritainandNorthernIrelandinCyprus
annexedtotheActconcerningtheconditionsoIaccessionoItheCzechRepublic,the
RepublicoIEstonia,theRepublicoICyprus,theRepublicoILatvia,theRepublicoI
Lithuania,theRepublicoIHungary,theRepublicoIMalta,theRepublicoIPoland,
theRepublicoISloveniaandtheSlovakRepublictotheEuropeanUnionandin
accordancewiththetermsoIthatProtocol;
(c)theTreatiesshallapplytotheChannelIslandsandtheIsleoIManonlytothe
extentnecessarytoensuretheimplementationoIthearrangementsIorthoseislands
setoutintheTreatyconcerningtheaccessionoInewMemberStatestotheEuropean
EconomicCommunityandtotheEuropeanAtomicEnergyCommunitysignedon
25January1972.
6.TheEuropeanCouncilmay,ontheinitiativeoItheMemberStateconcerned,adopt
adecisionamendingthestatus,withregardtotheUnion,oIaDanish,Frenchor
NetherlandscountryorterritoryreIerredtoinparagraphs1and2.TheEuropean
CouncilshallactunanimouslyaIterconsultingtheCommission.

Article 356

ThisTreatyisconcludedIoranunlimitedperiod.

Article 357

ThisTreatyshallberatiIiedbytheHighContractingPartiesinaccordancewiththeir
respectiveconstitutionalrequirements.TheInstrumentsoIratiIicationshallbe
depositedwiththeGovernmentoItheItalianRepublic.
ThisTreatyshallenterintoIorceontheIirstdayoIthemonthIollowingthedepositoI
theInstrumentoIratiIicationbythelastsignatoryStatetotakethisstep.II,however,
suchdepositismadelessthan15daysbeIorethebeginningoItheIollowingmonth,
thisTreatyshallnotenterintoIorceuntiltheIirstdayoIthesecondmonthaIterthe
dateoIsuchdeposit.
197

Article 358

TheprovisionsoIArticle55oItheTreatyonEuropeanUnionshallapplytothis
Treaty.

198

CONSOLIDATEDPROTOCOLS

ProtocolOntheRoleoINationalParliamentsIntheEuropeanUnion
ProtocolOnTheApplicationOIThePrinciplesOISubsidiarityAndProportionality
ProtocolOnTheStatuteOITheCourtOIJusticeOITheEuropeanUnion
ProtocolOnTheStatuteOITheEuropeanSystemOICentralBanksAndOIThe
EuropeanCentralBank
ProtocolOnTheStatuteOITheEuropeanInvestmentBank
ProtocolOnTheLocationOITheSeatsOITheInstitutionsAndOICertainBodies,
OIIices,AgenciesAndDepartmentsOITheEuropeanCommunities
ProtocolOnThePrivilegesAndImmunitiesOITheEuropeanUnion
ProtocolOnTheExcessiveDeIicitProcedure
ProtocolOnTheConvergenceCriteria
ProtocolOnTheEuroGroup
ProtocolOnCertainProvisionsRelatingToTheUnitedKingdomOIGreatBritain
AndNorthernIreland
ProtocolOnTheSchengenAcquisIntegratedIntoTheFrameworkOITheEuropean
Union
ProtocolOnTheApplicationOICertainAspectsOIArticle26OITheTreatyOnThe
FunctioningOITheEuropeanUnion
ProtocolOnThePositionOITheUnitedKingdomAndIrelandInRespectOIThe
AreaOIFreedom,SecurityAndJustice
ProtocolOnThePositionOIDenmark
ProtocolOnExternalRelationsOITheMemberStatesWithRegardToTheCrossing
OIExternalBorders
ProtocolOnAsylumForNationalsOIMemberStatesOITheEuropeanUnion
ProtocolOnPermanentStructuredCooperationEstablishedByArticle42OIThe
TreatyOnEuropeanUnion
ProtocolOnArticle42(2)OITheTreatyOnEuropeanUnion
ProtocolRelatingToArticle6(2)OITheTreatyOnEuropeanUnionOnThe
AccessionOITheUnionToTheEuropeanConventionOnTheProtectionOIHuman
RightsAndFundamentalFreedoms
ProtocolOnTheApplicationOITheCharterOIFundamentalRightsOIThe
EuropeanUnionToPolandAndToTheUnitedKingdom
ProtocolOnTheInternalMarketAndCompetition
ProtocolOnTheExerciseOISharedCompetence
ProtocolOnServicesOIGeneralInterest
ProtocolOnTheSystemOIPublicServiceBroadcastingInTheMemberStates
ProtocolConcerningArticle157OITheTreatyOnTheFunctioningOITheEuropean
Union
ProtocolOnEconomic,SocialAndTerritorialCohesion
ProtocolOnArticle40.3.3OITheConstitutionOIIreland
ProtocolOnTheFinancialConsequencesOITheExpiryOITheECSCTreatyAnd
OnTheResearchFundForCoalAndSteel
ProtocolOnTheDecisionOITheCouncilRelatingToTheImplementationOI
Article16(4)OITheTreatyOnEuropeanUnionAndArticle238(2)OITheTreaty
OnTheFunctioningOITheEuropeanUnionBetween1November2014And31
March2017OnTheOneHand,AndAsFrom1April2017OnTheOther
ProtocolOnTransitionalProvisions

199

TheIollowingProtocolshavenotbeenreproduced.

ProtocolOnFrance
ProtocolOnCertainProvisionsRelatingToDenmark
ProtocolOnSpecialArrangementsForGreenland
ProtocolConcerningImportsIntoTheEuropeanCommunityOIPetroleumProducts
ReIinedInTheNetherlandsAntilles
ProtocolOnTheAcquisitionOIPropertyInDenmark

200

PROTOCOL

ONTHEROLEOFNATIONALPARLIAMENTSINTHEEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,

RECALLINGthatthewayinwhichnationalParliamentsscrutinisetheirgovernments
inrelationtotheactivitiesoItheEuropeanUnionisamatterIortheparticular
constitutionalorganisationandpracticeoIeachMemberState;

DESIRINGtoencouragegreaterinvolvementoInationalParliamentsintheactivities
oItheEuropeanUnionandtoenhancetheirabilitytoexpresstheirviewsondraIt
legislativeactsoItheEuropeanUnionaswellasonothermatterswhichmaybeoI
particularinteresttothem,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnion,totheTreatyontheFunctioningoItheEuropeanUnion
andtotheTreatyestablishingtheEuropeanAtomicEnergyCommunity:

TITLEI
INFORMATIONFORNATIONALPARLIAMENTS

Article 1

Commissionconsultationdocuments(greenandwhitepapersandcommunications)
shallbeIorwardeddirectlybytheCommissiontonationalParliamentsupon
publication.TheCommissionshallalsoIorwardtheannuallegislativeprogrammeas
wellasanyotherinstrumentoIlegislativeplanningorpolicytonationalParliaments,
atthesametimeastotheEuropeanParliamentandtheCouncil.

Article 2

DraItlegislativeactssenttotheEuropeanParliamentandtotheCouncilshallbe
IorwardedtonationalParliaments.ForthepurposesoIthisProtocol,draItlegislative
actsshallmeanproposalsIromtheCommission,initiativesIromagroupoIMember
States,initiativesIromtheEuropeanParliament,requestsIromtheCourtoIJustice,
recommendationsIromtheEuropeanCentralBankandrequestsIromtheEuropean
InvestmentBankIortheadoptionoIalegislativeact.
DraItlegislativeactsoriginatingIromtheCommissionshallbeIorwardedtonational
ParliamentsdirectlybytheCommission,atthesametimeastotheEuropean
ParliamentandtheCouncil.
DraItlegislativeactsoriginatingIromtheEuropeanParliamentshallbeIorwardedto
nationalParliamentsdirectlybytheEuropeanParliament.
201

DraItlegislativeactsoriginatingIromagroupoIMemberStates,theCourtoIJustice,
theEuropeanCentralBankortheEuropeanInvestmentBankshallbeIorwardedto
nationalParliamentsbytheCouncil.

Article 3

NationalParliamentsmaysendtothePresidentsoItheEuropeanParliament,the
CouncilandtheCommissionareasonedopiniononwhetheradraItlegislativeact
complieswiththeprincipleoIsubsidiarity,inaccordancewiththeprocedurelaid
downintheProtocolontheapplicationoItheprinciplesoIsubsidiarityand
proportionality.
IIthedraItlegislativeactoriginatesIromagroupoIMemberStates,thePresidentoI
theCouncilshallIorwardthereasonedopinionoropinionstothegovernmentsoI
thoseMemberStates.
IIthedraItlegislativeactoriginatesIromtheCourtoIJustice,theEuropeanCentral
BankortheEuropeanInvestmentBank,thePresidentoItheCouncilshallIorwardthe
reasonedopinionoropinionstotheinstitutionorbodyconcerned.

Article 4

Aneight-weekperiodshallelapsebetweenadraItlegislativeactbeingmadeavailable
tonationalParliamentsintheoIIiciallanguagesoItheUnionandthedatewhenitis
placedonaprovisionalagendaIortheCouncilIoritsadoptionorIoradoptionoIa
positionunderalegislativeprocedure.ExceptionsshallbepossibleincasesoI
urgency,thereasonsIorwhichshallbestatedintheactorpositionoItheCouncil.
SaveinurgentcasesIorwhichduereasonshavebeengiven,noagreementmaybe
reachedonadraItlegislativeactduringthoseeightweeks.SaveinurgentcasesIor
whichduereasonshavebeengiven,aten-dayperiodshallelapsebetweentheplacing
oIadraItlegislativeactontheprovisionalagendaIortheCouncilandtheadoptionoI
aposition.

Article 5

TheagendasIorandtheoutcomeoImeetingsoItheCouncil,includingtheminutesoI
meetingswheretheCouncilisdeliberatingondraItlegislativeacts,shallbe
IorwardeddirectlytonationalParliaments,atthesametimeastoMemberStates
governments.

Article 6

202

WhentheEuropeanCouncilintendstomakeuseoItheIirstorsecondsubparagraphs
oIArticle48(7)oItheTreatyonEuropeanUnion,nationalParliamentsshallbe
inIormedoItheinitiativeoItheEuropeanCouncilatleastsixmonthsbeIoreany
decisionisadopted.

Article 7

TheCourtoIAuditorsshallIorwarditsannualreporttonationalParliaments,Ior
inIormation,atthesametimeastotheEuropeanParliamentandtotheCouncil.

Article 8

WherethenationalParliamentarysystemisnotunicameral,Articles1to7shallapply
tothecomponentchambers.

TITLEII

INTERPARLIAMENTARYCOOPERATION

Article 9

TheEuropeanParliamentandnationalParliamentsshalltogetherdeterminethe
organisationandpromotionoIeIIectiveandregularinterparliamentarycooperation
withintheUnion.

Article 10

AconIerenceoIParliamentaryCommitteesIortheAIIairsoItheUnionmaysubmit
anycontributionitdeemsappropriateIortheattentionoItheEuropeanParliament,the
CouncilandtheCommission.ThatconIerenceshallinadditionpromotetheexchange
oIinIormationandbestpracticebetweennationalParliamentsandtheEuropean
Parliament,includingtheirspecialcommittees.Itmayalsoorganise
interparliamentaryconIerencesonspeciIictopics,inparticulartodebatemattersoI
commonIoreignandsecuritypolicy,includingcommonsecurityanddeIencepolicy.
ContributionsIromtheconIerenceshallnotbindnationalParliamentsandshallnot
prejudgetheirpositions.
203

PROTOCOL

ONTHEAPPLICATIONOFTHEPRINCIPLESOFSUBSIDIARITYAND
PROPORTIONALITY

THEHIGHCONTRACTINGPARTIES,

WISHINGtoensurethatdecisionsaretakenascloselyaspossibletothecitizensoI
theUnion,

RESOLVEDtoestablishtheconditionsIortheapplicationoItheprinciplesoI
subsidiarityandproportionality,aslaiddowninArticle5oItheTreatyonEuropean
Union,andtoestablishasystemIormonitoringtheapplicationoIthoseprinciples,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union:

Article1

EachinstitutionshallensureconstantrespectIortheprinciplesoIsubsidiarityand
proportionality,aslaiddowninArticle5oItheTreatyonEuropeanUnion.

Article2

BeIoreproposinglegislativeacts,theCommissionshallconsultwidely.Such
consultationsshall,whereappropriate,takeintoaccounttheregionalandlocal
dimensionoItheactionenvisaged.IncasesoIexceptionalurgency,theCommission
shallnotconductsuchconsultations.ItshallgivereasonsIoritsdecisioninits
proposal.

Article3

ForthepurposesoIthisProtocol,draItlegislativeactsshallmeanproposalsIromthe
Commission,initiativesIromagroupoIMemberStates,initiativesIromtheEuropean
Parliament,requestsIromtheCourtoIJustice,recommendationsIromtheEuropean
CentralBankandrequestsIromtheEuropeanInvestmentBankIortheadoptionoIa
legislativeact.

Article 4

204

TheCommissionshallIorwarditsdraItlegislativeactsanditsamendeddraItsto
nationalParliamentsatthesametimeastotheUnionlegislator.
TheEuropeanParliamentshallIorwarditsdraItlegislativeactsanditsamendeddraIts
tonationalParliaments.
TheCouncilshallIorwarddraItlegislativeactsoriginatingIromagroupoI
MemberStates,theCourtoIJustice,theEuropeanCentralBankortheEuropean
InvestmentBankandamendeddraItstonationalParliaments.
Uponadoption,legislativeresolutionsoItheEuropeanParliamentandpositionsoIthe
CouncilshallbeIorwardedbythemtonationalParliaments.

Article 5

DraItlegislativeactsshallbejustiIiedwithregardtotheprinciplesoIsubsidiarityand
proportionality.AnydraItlegislativeactshouldcontainadetailedstatementmakingit
possibletoappraisecompliancewiththeprinciplesoIsubsidiarityand
proportionality.ThisstatementshouldcontainsomeassessmentoItheproposals
Iinancialimpactand,inthecaseoIadirective,oIitsimplicationsIortherulestobe
putinplacebyMemberStates,including,wherenecessary,theregionallegislation.
ThereasonsIorconcludingthatanobjectiveoItheUnioncanbebetterachievedat
theleveloItheUnionshallbesubstantiatedbyqualitativeand,whereverpossible,
quantitativeindicators.DraItlegislativeactsshalltakeaccountoItheneedIorany
burden,whetherIinancialoradministrative,IallingupontheUnion,national
governments,regionalorlocalauthorities,economicoperatorsandcitizens,tobe
minimisedandcommensuratewiththeobjectivetobeachieved.

Article 6

AnynationalParliamentoranychamberoIanationalParliamentmay,withineight
weeksIromthedateoItransmissionoIadraItlegislativeact,intheoIIiciallanguages
oItheUnion,sendtothePresidentsoItheEuropeanParliament,theCouncilandthe
CommissionareasonedopinionstatingwhyitconsidersthatthedraItinquestion
doesnotcomplywiththeprincipleoIsubsidiarity.ItwillbeIoreachnational
ParliamentoreachchamberoIanationalParliamenttoconsult,whereappropriate,
regionalparliamentswithlegislativepowers.
IIthedraItlegislativeactoriginatesIromagroupoIMemberStates,thePresidentoI
theCouncilshallIorwardtheopiniontothegovernmentsoIthoseMemberStates.
IIthedraItlegislativeactoriginatesIromtheCourtoIJustice,theEuropeanCentral
BankortheEuropeanInvestmentBank,thePresidentoItheCouncilshallIorwardthe
opiniontotheinstitutionorbodyconcerned.

205

Article 7

1.TheEuropeanParliament,theCouncilandtheCommission,and,where
appropriate,thegroupoIMemberStates,theCourtoIJustice,theEuropeanCentral
BankortheEuropeanInvestmentBank,iIthedraItlegislativeactoriginatesIrom
them,shalltakeaccountoIthereasonedopinionsissuedbynationalParliamentsorby
achamberoIanationalParliament.
EachnationalParliamentshallhavetwovotes,sharedoutonthebasisoIthenational
Parliamentarysystem.InthecaseoIabicameralParliamentarysystem,eachoIthe
twochambersshallhaveonevote.
2.WherereasonedopinionsonadraItlegislativeactsnon-compliancewiththe
principleoIsubsidiarityrepresentatleastonethirdoIallthevotesallocatedtothe
nationalParliamentsinaccordancewiththesecondsubparagraphoIparagraph1,the
draItmustbereviewed.ThisthresholdshallbeaquarterinthecaseoIadraIt
legislativeactsubmittedonthebasisoIArticle76oItheTreatyontheFunctioningoI
theEuropeanUnionontheareaoIIreedom,securityandjustice.
AItersuchreview,theCommissionor,whereappropriate,thegroupoIMember
States,theEuropeanParliament,theCourtoIJustice,theEuropeanCentralBankor
theEuropeanInvestmentBank,iIthedraItlegislativeactoriginatesIromthem,may
decidetomaintain,amendorwithdrawthedraIt.ReasonsmustbegivenIorthis
decision.
3.Furthermore,undertheordinarylegislativeprocedure,wherereasonedopinionson
thenon-complianceoIaproposalIoralegislativeactwiththeprincipleoIsubsidiarity
representatleastasimplemajorityoIthevotesallocatedtothenationalParliaments
inaccordancewiththesecondsubparagraphoIparagraph1,theproposalmustbe
reviewed.AItersuchreview,theCommissionmaydecidetomaintain,amendor
withdrawtheproposal.
IIitchoosestomaintaintheproposal,theCommissionwillhave,inareasoned
opinion,tojustiIywhyitconsidersthattheproposalcomplieswiththeprincipleoI
subsidiarity.Thisreasonedopinion,aswellasthereasonedopinionsoIthenational
Parliaments,willhavetobesubmittedtotheUnionslegislator,Iorconsiderationin
theprocedure:
(a)beIoreconcludingtheIirstreading,thelegislator(theEuropeanParliamentandthe
Council)shallconsiderwhetherthelegislativeproposaliscompatiblewiththe
principleoIsubsidiarity,takingparticularaccountoIthereasonsexpressedandshared
bythemajorityoInationalParliamentsaswellasthereasonedopinionoIthe
Commission;
(b)iI,byamajorityoI55oIthemembersoItheCounciloramajorityoIthevotes
castintheEuropeanParliament,thelegislatorisoItheopinionthattheproposalisnot
compatiblewiththeprincipleoIsubsidiarity,thelegislativeproposalshallnotbe
givenIurtherconsideration.

206

Article 8

TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictioninactionson
groundsoIinIringementoItheprincipleoIsubsidiaritybyalegislativeact,broughtin
accordancewiththeruleslaiddowninArticle263oItheTreatyontheFunctioningoI
theEuropeanUnionbyMemberStates,ornotiIiedbytheminaccordancewiththeir
legalorderonbehalIoItheirnationalParliamentorachamberthereoI.
InaccordancewiththeruleslaiddowninthesaidArticle,theCommitteeoIthe
RegionsmayalsobringsuchactionsagainstlegislativeactsIortheadoptionoIwhich
theTreatyontheFunctioningoItheEuropeanUnionprovidesthatitbeconsulted.

Article 9

TheCommissionshallsubmiteachyeartotheEuropeanCouncil,theEuropean
Parliament,theCouncilandnationalParliamentsareportontheapplicationoI
Article5oItheTreatyonEuropeanUnion.ThisannualreportshallalsobeIorwarded
totheEconomicandSocialCommitteeandtheCommitteeoItheRegions.
207

PROTOCOL

ONTHESTATUTEOFTHECOURTOFJUSTICEOFTHEEUROPEANUNION

THEHIGHCONTRACTINGPARTIES
DESIRINGtolaydowntheStatuteoItheCourtoIJusticeoItheEuropeanUnion
providedIorinArticle281oItheTreatyontheFunctioningoItheEuropeanUnion,
HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnion,theTreatyontheFunctioningoItheEuropeanUnion,and
theTreatyestablishingtheEuropeanAtomicEnergyCommunity:
Article 1
TheCourtoIJusticeoItheEuropeanUnionshallbeconstitutedandshallIunctionin
accordancewiththeprovisionsoItheTreaties,

oItheTreatyestablishingtheEuropean
AtomicEnergyCommunity(EAECTreaty)andoIthisStatute.

TITLEI
JUDGESANDADVOCATES-GENERAL

Article 2

BeIoretakinguphisdutieseachJudgeshall,beIoretheCourtoIJusticesittingin
opencourt,takeanoathtoperIormhisdutiesimpartiallyandconscientiouslyandto
preservethesecrecyoIthedeliberationsoItheCourt.

Article 3

TheJudgesshallbeimmuneIromlegalproceedings.AItertheyhaveceasedtohold
oIIice,theyshallcontinuetoenjoyimmunityinrespectoIactsperIormedbythemin
theiroIIicialcapacity,includingwordsspokenorwritten.
TheCourtoIJustice,sittingasaIullCourt,maywaivetheimmunity.IIthedecision
concernsamemberoItheGeneralCourtoroIaspecialisedcourt,theCourtshall
decideaIterconsultingthecourtconcerned.
Whereimmunityhasbeenwaivedandcriminalproceedingsareinstitutedagainsta
Judge,heshallbetried,inanyoItheMemberStates,onlybythecourtcompetentto
judgethemembersoIthehighestnationaljudiciary.
208

Articles11to14andArticle17oItheProtocolontheprivilegesandimmunitiesoI
theEuropeanCommunitiesshallapplytotheJudges,Advocates-General,Registrar
andAssistantRapporteursoItheCourtoIJusticeoItheEuropeanUnion,without
prejudicetotheprovisionsrelatingtoimmunityIromlegalproceedingsoIJudges
whicharesetoutintheprecedingparagraphs.

Article 4

TheJudgesmaynotholdanypoliticaloradministrativeoIIice.
Theymaynotengageinanyoccupation,whethergainIulornot,unlessexemptionis
exceptionallygrantedbytheCouncilactingbyasimplemajority.
Whentakinguptheirduties,theyshallgiveasolemnundertakingthat,bothduring
andaItertheirtermoIoIIice,theywillrespecttheobligationsarisingthereIrom,in
particularthedutytobehavewithintegrityanddiscretionasregardstheacceptance,
aItertheyhaveceasedtoholdoIIice,oIcertainappointmentsorbeneIits.
AnydoubtonthispointshallbesettledbydecisionoItheCourtoIJustice.IIthe
decisionconcernsamemberoItheGeneralCourtoroIaspecialisedcourt,theCourt
shalldecideaIterconsultingthecourtconcerned.

Article 5

ApartIromnormalreplacement,ordeath,thedutiesoIaJudgeshallendwhenhe
resigns.
WhereaJudgeresigns,hisletteroIresignationshallbeaddressedtothePresidentoI
theCourtoIJusticeIortransmissiontothePresidentoItheCouncil.Uponthis
notiIicationavacancyshallariseonthebench.
SavewhereArticle6applies,aJudgeshallcontinuetoholdoIIiceuntilhissuccessor
takesuphisduties.

Article 6

AJudgemaybedeprivedoIhisoIIiceoroIhisrighttoapensionorotherbeneIitsin
itssteadonlyiI,intheunanimousopinionoItheJudgesandAdvocates-GeneraloIthe
CourtoIJustice,henolongerIulIilstherequisiteconditionsormeetstheobligations
arisingIromhisoIIice.TheJudgeconcernedshallnottakepartinanysuch
deliberations.IIthepersonconcernedisamemberoItheGeneralCourtoroIa
specialisedcourt,theCourtshalldecideaIterconsultingthecourtconcerned.
209

TheRegistraroItheCourtshallcommunicatethedecisionoItheCourttothe
PresidentoItheEuropeanParliamentandtothePresidentoItheCommissionand
shallnotiIyittothePresidentoItheCouncil.
InthecaseoIadecisiondeprivingaJudgeoIhisoIIice,avacancyshallariseonthe
benchuponthislatternotiIication.

Article 7

AJudgewhoistoreplaceamemberoItheCourtwhosetermoIoIIicehasnotexpired
shallbeappointedIortheremainderoIhispredecessorsterm.

Article 8

TheprovisionsoIArticles2to7shallapplytotheAdvocates-General.

TITLEII
ORGANISATIONOFTHECOURTOFJUSTICE

Article 9

When,everythreeyears,theJudgesarepartiallyreplaced,Iourteenandthirteen
Judgesshallbereplacedalternately.
When,everythreeyears,theAdvocates-Generalarepartiallyreplaced,Iour
Advocates-Generalshallbereplacedoneachoccasion.

Article 10

TheRegistrarshalltakeanoathbeIoretheCourtoIJusticetoperIormhisduties
impartiallyandconscientiouslyandtopreservethesecrecyoIthedeliberationsoIthe
CourtoIJustice.

Article 11
210


TheCourtoIJusticeshallarrangeIorreplacementoItheRegistraronoccasionswhen
heispreventedIromattendingtheCourtoIJustice.

Article 12

OIIicialsandotherservantsshallbeattachedtotheCourtoIJusticetoenableitto
Iunction.TheyshallberesponsibletotheRegistrarundertheauthorityoIthe
President.

Article 13

AttherequestoItheCourtoIJustice,theEuropeanParliamentandtheCouncilmay,
actinginaccordancewiththeordinarylegislativeprocedure,provideIorthe
appointmentoIAssistantRapporteursandlaydowntherulesgoverningtheirservice.
TheAssistantRapporteursmayberequired,underconditionslaiddownintheRules
oIProcedure,toparticipateinpreparatoryinquiriesincasespendingbeIoretheCourt
andtocooperatewiththeJudgewhoactsasRapporteur.
TheAssistantRapporteursshallbechosenIrompersonswhoseindependenceis
beyonddoubtandwhopossessthenecessarylegalqualiIications;theyshallbe
appointedbytheCouncilactingbyasimplemajority.TheyshalltakeanoathbeIore
theCourttoperIormtheirdutiesimpartiallyandconscientiouslyandtopreservethe
secrecyoIthedeliberationsoItheCourt.

Article 14

TheJudges,theAdvocates-GeneralandtheRegistrarshallberequiredtoresideatthe
placewheretheCourtoIJusticehasitsseat.

Article 15

TheCourtoIJusticeshallremainpermanentlyinsession.ThedurationoIthejudicial
vacationsshallbedeterminedbytheCourtwithdueregardtotheneedsoIits
business.

Article 16
211


TheCourtoIJusticeshallIormchambersconsistingoIthreeandIiveJudges.The
JudgesshallelectthePresidentsoIthechambersIromamongtheirnumber.The
PresidentsoIthechambersoIIiveJudgesshallbeelectedIorthreeyears.Theymay
bere-electedonce.
TheGrandChambershallconsistoI13Judges.Itshallbepresidedoverbythe
PresidentoItheCourt.ThePresidentsoIthechambersoIIiveJudgesandother
JudgesappointedinaccordancewiththeconditionslaiddownintheRulesoI
ProcedureshallalsoIormpartoItheGrandChamber.
TheCourtshallsitinaGrandChamberwhenaMemberStateoraninstitutionoIthe
Unionthatispartytotheproceedingssorequests.
TheCourtshallsitasaIullCourtwherecasesarebroughtbeIoreitpursuanttoArticle
228(2),Article245,Article247orArticle286(6)oItheTreatyontheFunctioningoI
theEuropeanUnion.
Moreover,whereitconsidersthatacasebeIoreitisoIexceptionalimportance,the
Courtmaydecide,aIterhearingtheAdvocate-General,toreIerthecasetotheIull
Court.

Article 17

DecisionsoItheCourtoIJusticeshallbevalidonlywhenanunevennumberoIits
membersissittinginthedeliberations.
DecisionsoIthechambersconsistingoIeitherthreeorIiveJudgesshallbevalidonly
iItheyaretakenbythreeJudges.
DecisionsoItheGrandChambershallbevalidonlyiInineJudgesaresitting.
DecisionsoItheIullCourtshallbevalidonlyiI15Judgesaresitting.
IntheeventoIoneoItheJudgesoIachamberbeingpreventedIromattending,a
JudgeoIanotherchambermaybecalledupontositinaccordancewithconditionslaid
downintheRulesoIProcedure.

Article 18

NoJudgeorAdvocate-GeneralmaytakepartinthedisposaloIanycaseinwhichhe
haspreviouslytakenpartasagentoradviserorhasactedIoroneoItheparties,orin
whichhehasbeencalledupontopronounceasamemberoIacourtortribunal,oIa
commissionoIinquiryorinanyothercapacity.
212

II,Iorsomespecialreason,anyJudgeorAdvocate-Generalconsidersthatheshould
nottakepartinthejudgmentorexaminationoIaparticularcase,heshallsoinIorm
thePresident.II,Iorsomespecialreason,thePresidentconsidersthatanyJudgeor
Advocate-Generalshouldnotsitormakesubmissionsinaparticularcase,heshall
notiIyhimaccordingly.
AnydiIIicultyarisingastotheapplicationoIthisarticleshallbesettledbydecisionoI
theCourtoIJustice.
ApartymaynotapplyIorachangeinthecompositionoItheCourtoroIoneoIits
chambersonthegroundsoIeitherthenationalityoIaJudgeortheabsenceIromthe
CourtorIromthechamberoIaJudgeoIthenationalityoIthatparty.

TITLEIII

PROCEDUREBEFORETHECOURTOFJUSTICE

Article 19

TheMemberStatesandtheinstitutionsoItheUnionshallberepresentedbeIorethe
CourtoIJusticebyanagentappointedIoreachcase;theagentmaybeassistedbyan
adviserorbyalawyer.
TheStates,otherthantheMemberStates,whicharepartiestotheAgreementonthe
EuropeanEconomicAreaandalsotheEFTASurveillanceAuthorityreIerredtoin
thatAgreementshallberepresentedinsamemanner.
Otherpartiesmustberepresentedbyalawyer.
OnlyalawyerauthorisedtopractisebeIoreacourtoIaMemberStateoroIanother
StatewhichisapartytotheAgreementontheEuropeanEconomicAreamay
representorassistapartybeIoretheCourt.
Suchagents,advisersandlawyersshall,whentheyappearbeIoretheCourt,enjoythe
rightsandimmunitiesnecessarytotheindependentexerciseoItheirduties,under
conditionslaiddownintheRulesoIProcedure.
AsregardssuchadvisersandlawyerswhoappearbeIoreit,theCourtshallhavethe
powersnormallyaccordedtocourtsoIlaw,underconditionslaiddownintheRules
oIProcedure.
UniversityteachersbeingnationalsoIaMemberStatewhoselawaccordsthema
rightoIaudienceshallhavethesamerightsbeIoretheCourtasareaccordedbythis
articletolawyers.

213

Article 20

TheprocedurebeIoretheCourtoIJusticeshallconsistoItwoparts:writtenandoral.
ThewrittenprocedureshallconsistoIthecommunicationtothepartiesandtothe
institutionsoItheUnionwhosedecisionsareindispute,oIapplications,statementsoI
case,deIencesandobservations,andoIreplies,iIany,aswellasoIallpapersand
documentsinsupportoroIcertiIiedcopiesoIthem.
CommunicationsshallbemadebytheRegistrarintheorderandwithinthetimelaid
downintheRulesoIProcedure.
TheoralprocedureshallconsistoIthereadingoIthereportpresentedbyaJudge
actingasRapporteur,thehearingbytheCourtoIagents,advisersandlawyersandoI
thesubmissionsoItheAdvocate-General,aswellasthehearing,iIany,oIwitnesses
andexperts.
WhereitconsidersthatthecaseraisesnonewpointoIlaw,theCourtmaydecide,
aIterhearingtheAdvocate-General,thatthecaseshallbedeterminedwithouta
submissionIromtheAdvocate-General.

Article 21

AcaseshallbebroughtbeIoretheCourtoIJusticebyawrittenapplicationaddressed
totheRegistrar.Theapplicationshallcontaintheapplicantsnameandpermanent
addressandthedescriptionoIthesignatory,thenameoIthepartyornamesoIthe
partiesagainstwhomtheapplicationismade,thesubject-matteroIthedispute,the
IormoIordersoughtandabrieIstatementoIthepleasinlawonwhichtheapplication
isbased.
Theapplicationshallbeaccompanied,whereappropriate,bythemeasurethe
annulmentoIwhichissoughtor,inthecircumstancesreIerredtoinArticle265oIthe
TreatyontheFunctioningoItheEuropeanUnion,bydocumentaryevidenceoIthe
dateonwhichaninstitutionwas,inaccordancewiththoseArticles,requestedtoact.
IIthedocumentsarenotsubmittedwiththeapplication,theRegistrarshallaskthe
partyconcernedtoproducethemwithinareasonableperiod,butinthateventthe
rightsoIthepartyshallnotlapseeveniIsuchdocumentsareproducedaIterthetime
limitIorbringingproceedings.

Article 22

AcasegovernedbyArticle18oItheEAECTreatyshallbebroughtbeIoretheCourt
oIJusticebyanappealaddressedtotheRegistrar.Theappealshallcontainthename
andpermanentaddressoItheapplicantandthedescriptionoIthesignatory,a
214

reIerencetothedecisionagainstwhichtheappealisbrought,thenamesoIthe
respondents,thesubject-matteroIthedispute,thesubmissionsandabrieIstatement
oIthegroundsonwhichtheappealisbased.
TheappealshallbeaccompaniedbyacertiIiedcopyoIthedecisionoItheArbitration
Committeewhichiscontested.
IItheCourtrejectstheappeal,thedecisionoItheArbitrationCommitteeshallbecome
Iinal.
IItheCourtannulsthedecisionoItheArbitrationCommittee,themattermaybere-
opened,whereappropriate,ontheinitiativeoIoneoIthepartiesinthecase,beIore
theArbitrationCommittee.ThelattershallconIormtoanydecisionsonpointsoIlaw
givenbytheCourt.

Article 23

InthecasesgovernedbyArticle309oItheTreatyontheFunctioningoItheEuropean
Union,thedecisionoIthecourtortribunaloIaMemberStatewhichsuspendsits
proceedingsandreIersacasetotheCourtoIJusticeshallbenotiIiedtotheCourtby
thecourtortribunalconcerned.ThedecisionshallthenbenotiIiedbytheRegistraroI
theCourttotheparties,totheMemberStatesandtotheCommission,andtothe
institution,body,oIIiceoragencyoItheUnionwhichadoptedtheactthevalidityor
interpretationoIwhichisindispute.
WithintwomonthsoIthisnotiIication,theparties,theMemberStates,the
Commissionand,whereappropriate,theinstitution,body,oIIiceoragencywhich
adoptedtheactthevalidityorinterpretationoIwhichisindispute,shallbeentitledto
submitstatementsoIcaseorwrittenobservationstotheCourt.
InthecasesgovernedbyArticle309oItheTreatyontheFunctioningoItheEuropean
Union,thedecisionoIthenationalcourtortribunalshall,moreover,benotiIiedbythe
RegistraroItheCourttotheStates,otherthantheMemberStates,whicharepartiesto
theAgreementontheEuropeanEconomicAreaandalsototheEFTASurveillance
AuthorityreIerredtointhatAgreementwhichmay,withintwomonthsoI
notiIication,whereoneoItheIieldsoIapplicationoIthatAgreementisconcerned,
submitstatementsoIcaseorwrittenobservationstotheCourt.
WhereanagreementrelatingtoaspeciIicsubject-matter,concludedbytheCouncil
andoneormorenon-memberStates,providesthatthoseStatesaretobeentitledto
submitstatementsoIcaseorwrittenobservationswhereacourtortribunaloIa
MemberStatereIerstotheCourtoIJusticeIorapreliminaryrulingaquestionIalling
withinthescopeoItheagreement,thedecisionoIthenationalcourtortribunal
containingthatquestionshallalsobenotiIiedtothenon-memberStatesconcerned.
WithintwomonthsIromsuchnotiIication,thoseStatesmaylodgeattheCourt
statementsoIcaseorwrittenobservations.

215

Article 24

TheCourtoIJusticemayrequirethepartiestoproducealldocumentsandtosupply
allinIormationwhichtheCourtconsidersdesirable.FormalnoteshallbetakenoIany
reIusal.
TheCourtmayalsorequiretheMemberStatesandinstitutions,bodies,oIIicesand
agenciesnotbeingpartiestothecasetosupplyallinIormationwhichtheCourt
considersnecessaryIortheproceedings.

Article 25

TheCourtoIJusticemayatanytimeentrustanyindividual,body,authority,
committeeorotherorganisationitchooseswiththetaskoIgivinganexpertopinion.

Article 26

WitnessesmaybeheardunderconditionslaiddownintheRulesoIProcedure.

Article 27

WithrespecttodeIaultingwitnessestheCourtoIJusticeshallhavethepowers
generallygrantedtocourtsandtribunalsandmayimposepecuniarypenaltiesunder
conditionslaiddownintheRulesoIProcedure.

Article 28

WitnessesandexpertsmaybeheardonoathtakenintheIormlaiddownintheRules
oIProcedureorinthemannerlaiddownbythelawoIthecountryoIthewitnessor
expert.

Article 29

216

TheCourtoIJusticemayorderthatawitnessorexpertbeheardbythejudicial
authorityoIhisplaceoIpermanentresidence.
TheordershallbesentIorimplementationtothecompetentjudicialauthorityunder
conditionslaiddownintheRulesoIProcedure.Thedocumentsdrawnupin
compliancewiththelettersrogatoryshallbereturnedtotheCourtunderthesame
conditions.
TheCourtshalldeIraytheexpenses,withoutprejudicetotherighttochargethem,
whereappropriate,totheparties.

Article 30

AMemberStateshalltreatanyviolationoIanoathbyawitnessorexpertinthesame
mannerasiItheoIIencehadbeencommittedbeIoreoneoIitscourtswithjurisdiction
incivilproceedings.AttheinstanceoItheCourtoIJustice,theMemberState
concernedshallprosecutetheoIIenderbeIoreitscompetentcourt.

Article 31

Thehearingincourtshallbepublic,unlesstheCourtoIJustice,oIitsownmotionor
onapplicationbytheparties,decidesotherwiseIorseriousreasons.

Article 32

DuringthehearingstheCourtoIJusticemayexaminetheexperts,thewitnessesand
thepartiesthemselves.Thelatter,however,mayaddresstheCourtoIJusticeonly
throughtheirrepresentatives.

Article 33

MinutesshallbemadeoIeachhearingandsignedbythePresidentandtheRegistrar.

Article 34

ThecaselistshallbeestablishedbythePresident.
217

Article 35

ThedeliberationsoItheCourtoIJusticeshallbeandshallremainsecret.

Article 36

Judgmentsshallstatethereasonsonwhichtheyarebased.Theyshallcontainthe
namesoItheJudgeswhotookpartinthedeliberations.

Article 37

JudgmentsshallbesignedbythePresidentandtheRegistrar.Theyshallbereadin
opencourt.

Article 38

TheCourtoIJusticeshalladjudicateuponcosts.

Article 39

ThePresidentoItheCourtoIJusticemay,bywayoIsummaryprocedure,whichmay,
insoIarasnecessary,diIIerIromsomeoItherulescontainedinthisStatuteand
whichshallbelaiddownintheRulesoIProcedure,adjudicateuponapplicationsto
suspendexecution,asprovidedIorinArticle278oItheTreatyontheFunctioningoI
theEuropeanUnionandArticle157oItheEAECTreaty,ortoprescribeinterim
measurespursuanttoArticle279oItheTreatyontheFunctioningoItheEuropean
Union,ortosuspendenIorcementinaccordancewiththeIourthparagraphoIArticle
299oItheTreatyontheFunctioningoItheEuropeanUnionorthethirdparagraphoI
Article164oItheEAECTreaty.
ShouldthePresidentbepreventedIromattending,hisplaceshallbetakenbyanother
JudgeunderconditionslaiddownintheRulesoIProcedure.
TherulingoIthePresidentoroItheJudgereplacinghimshallbeprovisionaland
shallinnowayprejudicethedecisionoItheCourtonthesubstanceoIthecase.
218

Article 40

MemberStatesandinstitutionsoItheUnionmayinterveneincasesbeIoretheCourt
oIJustice.
Thesamerightshallbeopentothebodies,oIIicesandagenciesoItheUnionandto
anyotherpersonwhichcanestablishaninterestintheresultoIacasesubmittedtothe
Court.NaturalorlegalpersonsshallnotinterveneincasesbetweenMemberStates,
betweeninstitutionsoItheUnionorbetweenMemberStatesandinstitutionsoIthe
Union.
Withoutprejudicetothesecondparagraph,theStates,otherthantheMemberStates,
whicharepartiestotheAgreementontheEuropeanEconomicArea,andalsothe
EFTASurveillanceAuthorityreIerredtointhatAgreement,mayinterveneincases
beIoretheCourtwhereoneoItheIieldsoIapplicationthatAgreementisconcerned.
AnapplicationtointerveneshallbelimitedtosupportingtheIormoIordersoughtby
oneoItheparties.

Article 41

WherethedeIendingparty,aIterhavingbeendulysummoned,IailstoIilewritten
submissionsindeIence,judgmentshallbegivenagainstthatpartybydeIault.An
objectionmaybelodgedagainstthejudgmentwithinonemonthoIitbeingnotiIied.
TheobjectionshallnothavetheeIIectoIstayingenIorcementoIthejudgmentby
deIaultunlesstheCourtoIJusticedecidesotherwise.

Article 42

MemberStates,institutions,bodies,oIIicesandagenciesoItheUnionandanyother
naturalorlegalpersonsmay,incasesandunderconditionstobedeterminedbythe
RulesoIProcedure,institutethird-partyproceedingstocontestajudgmentrendered
withouttheirbeingheard,wherethejudgmentisprejudicialtotheirrights.

Article 43

IIthemeaningorscopeoIajudgmentisindoubt,theCourtoIJusticeshallconstrueit
onapplicationbyanypartyoranyinstitutionoItheUnionestablishinganinterest
therein.
219

Article 44

AnapplicationIorrevisionoIajudgmentmaybemadetotheCourtoIJusticeonlyon
discoveryoIaIactwhichisoIsuchanatureastobeadecisiveIactor,andwhich,
whenthejudgmentwasgiven,wasunknowntotheCourtandtothepartyclaiming
therevision.
TherevisionshallbeopenedbyajudgmentoItheCourtexpresslyrecordingthe
existenceoIanewIact,recognisingthatitisoIsuchacharacterastolaythecase
opentorevisionanddeclaringtheapplicationadmissibleonthisground.
NoapplicationIorrevisionmaybemadeaIterthelapseoI10yearsIromthedateoI
thejudgment.

Article 45

PeriodsoIgracebasedonconsiderationsoIdistanceshallbedeterminedbytheRules
oIProcedure.
NorightshallbeprejudicedinconsequenceoItheexpiryoIatimelimitiItheparty
concernedprovestheexistenceoIunIoreseeablecircumstancesoroIIorcemajeure.

Article 46

ProceedingsagainsttheUnioninmattersarisingIromnon-contractualliabilityshall
bebarredaIteraperiodoIIiveyearsIromtheoccurrenceoItheeventgivingrise
thereto.TheperiodoIlimitationshallbeinterruptediIproceedingsareinstituted
beIoretheCourtoIJusticeoriIpriortosuchproceedingsanapplicationismadeby
theaggrievedpartytotherelevantinstitutionoItheUnion.Inthelattereventthe
proceedingsmustbeinstitutedwithintheperiodoItwomonthsprovidedIorinArticle
263oItheTreatyontheFunctioningoItheEuropeanUnion;theprovisionsoIthe
secondparagraphoIArticle265oItheTreatyontheFunctioningoItheEuropean
Unionshallapplywhereappropriate.
ThisArticleshallalsoapplytoproceedingsagainsttheEuropeanCentralBank
regardingnon-contractualliability.

220

TITLEIV
GENERALCOURT

Article 47

TheIirstparagraphoIArticle9,Articles14and15,theIirst,second,IourthandIiIth
paragraphsoIArticle17andArticle18shallapplytotheGeneralCourtandits
members.
TheIourthparagraphoIArticle3andArticles10,11and14shallapplytothe
RegistraroItheGeneralCourtmutatis mutandis.

Article 48

TheGeneralCourtshallconsistoI27Judges.

Article 49

TheMembersoItheGeneralCourtmaybecalledupontoperIormthetaskoIan
Advocate-General.
ItshallbethedutyoItheAdvocate-General,actingwithcompleteimpartialityand
independence,tomake,inopencourt,reasonedsubmissionsoncertaincasesbrought
beIoretheGeneralCourtinordertoassisttheGeneralCourtintheperIormanceoIits
task.
ThecriteriaIorselectingsuchcases,aswellastheproceduresIordesignatingthe
Advocates-General,shallbelaiddownintheRulesoIProcedureoItheGeneral
Court.
AMembercalledupontoperIormthetaskoIAdvocate-Generalinacasemaynot
takepartinthejudgmentoIthecase.

Article 50

TheGeneralCourtshallsitinchambersoIthreeorIiveJudges.TheJudgesshallelect
thePresidentsoIthechambersIromamongtheirnumber.ThePresidentsoIthe
chambersoIIiveJudgesshallbeelectedIorthreeyears.Theymaybere-electedonce.
221

ThecompositionoIthechambersandtheassignmentoIcasestothemshallbe
governedbytheRulesoIProcedure.IncertaincasesgovernedbytheRulesoI
Procedure,theGeneralCourtmaysitasaIullcourtorbeconstitutedbyasingle
Judge.
TheRulesoIProceduremayalsoprovidethattheGeneralCourtmaysitinaGrand
ChamberincasesandundertheconditionsspeciIiedtherein.

Article 51

BywayoIderogationIromtherulelaiddowninArticle256(1)oItheTreatyonthe
FunctioningoItheEuropeanUnion,jurisdictionshallbereservedtotheCourtoI
JusticeintheactionsreIerredtoinArticles263and265oItheTreatyonthe
FunctioningoItheEuropeanUnionwhentheyarebroughtbyaMemberState
against:

(a)anactoIorIailuretoactbytheEuropeanParliamentortheCouncil,or
bythoseinstitutionsactingjointly,exceptIor:

decisionstakenbytheCouncilunderthethirdsubparagraphoIArticle130(2)oIthe
TreatyontheFunctioningoItheEuropeanUnion;

actsoItheCounciladoptedpursuanttoaCouncilregulationconcerningmeasuresto
protecttradewithinthemeaningoIArticle207oItheTreatyontheFunctioningoI
theEuropeanUnion;

actsoItheCouncilbywhichtheCouncilexercisesimplementingpowersin
accordancewiththesecondparagraphoIArticle288oItheTreatyontheFunctioning
oItheEuropeanUnion;

(b)againstanactoIorIailuretoactbytheCommissionundertheIirstparagraphoI
Article331oItheTreatyontheFunctioningoItheEuropeanUnion.

JurisdictionshallalsobereservedtotheCourtoIJusticeintheactionsreIerredtoin
thesameArticleswhentheyarebroughtbyaninstitutionoItheUnionagainstanact
oIorIailuretoactbytheEuropeanParliament,theCouncil,boththoseinstitutions
actingjointly,theCommission,orbroughtbyaninstitutionoItheUnionagainstan
actoIorIailuretoactbytheEuropeanCentralBank.

Article 52

ThePresidentoItheCourtoIJusticeandthePresidentoItheGeneralCourtshall
determine,bycommonaccord,theconditionsunderwhichoIIicialsandotherservants
attachedtotheCourtoIJusticeshallrendertheirservicestotheGeneralCourtto
enableittoIunction.CertainoIIicialsorotherservantsshallberesponsibletothe
222

RegistraroItheGeneralCourtundertheauthorityoIthePresidentoItheGeneral
Court.

Article 53

TheprocedurebeIoretheGeneralCourtshallbegovernedbyTitleIII.
SuchIurtherandmoredetailedprovisionsasmaybenecessaryshallbelaiddownin
itsRulesoIProcedure.TheRulesoIProceduremayderogateIromtheIourth
paragraphoIArticle40andIromArticle41inordertotakeaccountoIthespeciIic
IeaturesoIlitigationintheIieldoIintellectualproperty.
NotwithstandingtheIourthparagraphoIArticle20,theAdvocate-Generalmaymake
hisreasonedsubmissionsinwriting.

Article 54

WhereanapplicationorotherproceduraldocumentaddressedtotheGeneralCourtis
lodgedbymistakewiththeRegistraroItheCourtoIJustice,itshallbetransmitted
immediatelybythatRegistrartotheRegistraroItheGeneralCourt;likewise,where
anapplicationorotherproceduraldocumentaddressedtotheCourtoIJusticeis
lodgedbymistakewiththeRegistraroItheGeneralCourt,itshallbetransmitted
immediatelybythatRegistrartotheRegistraroItheCourtoIJustice.
WheretheGeneralCourtIindsthatitdoesnothavejurisdictiontohearanddetermine
anactioninrespectoIwhichtheCourtoIJusticehasjurisdiction,itshallreIerthat
actiontotheCourtoIJustice;likewise,wheretheCourtoIJusticeIindsthatanaction
IallswithinthejurisdictionoItheGeneralCourt,itshallreIerthatactiontothe
GeneralCourt,whereuponthatCourtmaynotdeclinejurisdiction.
WheretheCourtoIJusticeandtheGeneralCourtareseisedoIcasesinwhichthe
samerelieIissought,thesameissueoIinterpretationisraisedorthevalidityoIthe
sameactiscalledinquestion,theGeneralCourtmay,aIterhearingtheparties,stay
theproceedingsbeIoreituntilsuchtimeastheCourtoIJusticeshallhavedelivered
judgmentor,wheretheactionisbroughtpursuanttoArticle263oItheTreatyonthe
FunctioningoItheEuropeanUnion,maydeclinejurisdictionsoastoallowtheCourt
oIJusticetoruleonsuchactions.Inthesamecircumstances,theCourtoIJusticemay
alsodecidetostaytheproceedingsbeIoreit;inthatevent,theproceedingsbeIorethe
GeneralCourtshallcontinue.
WhereaMemberStateandaninstitutionoItheUnionarebothchallengingthesame
act,theGeneralCourtshalldeclinejurisdictionsothattheCourtoIJusticemayrule
onthoseactions.

223

Article 55

FinaldecisionsoItheGeneralCourt,decisionsdisposingoIthesubstantiveissuesin
partonlyordisposingoIaproceduralissueconcerningapleaoIlackoIcompetence
orinadmissibility,shallbenotiIiedbytheRegistraroItheGeneralCourttoallparties
aswellasallMemberStatesandtheinstitutionsoItheUnioneveniItheydidnot
interveneinthecasebeIoretheGeneralCourt.

Article 56

AnappealmaybebroughtbeIoretheCourtoIJustice,withintwomonthsoIthe
notiIicationoIthedecisionappealedagainst,againstIinaldecisionsoItheGeneral
CourtanddecisionsoIthatCourtdisposingoIthesubstantiveissuesinpartonlyor
disposingoIaproceduralissueconcerningapleaoIlackoIcompetenceor
inadmissibility.
SuchanappealmaybebroughtbyanypartywhichhasbeenunsuccessIul,inwhole
orinpart,initssubmissions.However,intervenersotherthantheMemberStatesand
theinstitutionsoItheUnionmaybringsuchanappealonlywherethedecisionoIthe
GeneralCourtdirectlyaIIectsthem.
WiththeexceptionoIcasesrelatingtodisputesbetweentheUnionanditsservants,an
appealmayalsobebroughtbyMemberStatesandinstitutionsoItheUnionwhichdid
notinterveneintheproceedingsbeIoretheGeneralCourt.SuchMemberStatesand
institutionsshallbeinthesamepositionasMemberStatesorinstitutionswhich
intervenedatIirstinstance.

Article 57

AnypersonwhoseapplicationtointervenehasbeendismissedbytheGeneralCourt
mayappealtotheCourtoIJusticewithintwoweeksIromthenotiIicationoIthe
decisiondismissingtheapplication.
ThepartiestotheproceedingsmayappealtotheCourtoIJusticeagainstanydecision
oItheGeneralCourtmadepursuanttoArticle278orArticle279ortheIourth
paragraphoIArticle299oItheTreatyontheFunctioningoItheEuropeanUnionor
Article157orthethirdparagraphoIArticle164oItheEAECTreatywithintwo
monthsIromtheirnotiIication.
TheappealreIerredtointheIirsttwoparagraphsoIthisArticleshallbeheardand
determinedundertheprocedurereIerredtoinArticle39.

224

Article 58

AnappealtotheCourtoIJusticeshallbelimitedtopointsoIlaw.Itshalllieonthe
groundsoIlackoIcompetenceoItheGeneralCourt,abreachoIprocedurebeIoreit
whichadverselyaIIectstheinterestsoItheappellantaswellastheinIringementoI
UnionlawbytheGeneralCourt.
NoappealshalllieregardingonlytheamountoIthecostsorthepartyorderedtopay
them.

Article 59

WhereanappealisbroughtagainstadecisionoItheGeneralCourt,theprocedure
beIoretheCourtoIJusticeshallconsistoIawrittenpartandanoralpart.In
accordancewithconditionslaiddownintheRulesoIProcedure,theCourtoIJustice,
havingheardtheAdvocate-Generalandtheparties,maydispensewiththeoral
procedure.

Article 60

WithoutprejudicetoArticles278and279oItheTreatyontheFunctioningoIthe
EuropeanUnionorArticle157oItheEAECTreaty,anappealshallnothave
suspensoryeIIect.
BywayoIderogationIromArticle280oItheTreatyontheFunctioningoIthe
EuropeanUnion,decisionsoItheGeneralCourtdeclaringaregulationtobevoid
shalltakeeIIectonlyasIromthedateoIexpiryoItheperiodreIerredtointheIirst
paragraphoIArticle56oIthisStatuteor,iIanappealshallhavebeenbroughtwithin
thatperiod,asIromthedateoIdismissaloItheappeal,withoutprejudice,however,to
therightoIapartytoapplytotheCourtoIJustice,pursuanttoArticles278and279
oItheTreatyontheFunctioningoItheEuropeanUnionorArticle157oItheEAEC
Treaty,IorthesuspensionoItheeIIectsoItheregulationwhichhasbeendeclared
voidorIortheprescriptionoIanyotherinterimmeasure.

Article 61

IItheappealiswellIounded,theCourtoIJusticeshallquashthedecisionoIthe
GeneralCourt.ItmayitselIgiveIinaljudgmentinthematter,wherethestateoIthe
proceedingssopermits,orreIerthecasebacktotheGeneralCourtIorjudgment.
225

WhereacaseisreIerredbacktotheGeneralCourt,thatCourtshallbeboundbythe
decisionoItheCourtoIJusticeonpointsoIlaw.
WhenanappealbroughtbyaMemberStateoraninstitutionoItheUnion,whichdid
notinterveneintheproceedingsbeIoretheGeneralCourt,iswellIounded,theCourt
oIJusticemay,iIitconsidersthisnecessary,statewhichoItheeIIectsoIthedecision
oItheGeneralCourtwhichhasbeenquashedshallbeconsideredasdeIinitivein
respectoIthepartiestothelitigation.

Article 62

InthecasesprovidedIorinArticle256(2)and(3)oItheTreatyontheFunctioningoI
theEuropeanUnion,wheretheFirstAdvocate-Generalconsidersthatthereisa
seriousriskoItheunityorconsistencyoIUnionlawbeingaIIected,hemaypropose
thattheCourtoIJusticereviewthedecisionoItheGeneralCourt.
TheproposalmustbemadewithinonemonthoIdeliveryoIthedecisionbythe
GeneralCourt.WithinonemonthoIreceivingtheproposalmadebytheFirst
Advocate-General,theCourtoIJusticeshalldecidewhetherornotthedecision
shouldbereviewed.

Article 62a

TheCourtoIJusticeshallgivearulingonthequestionswhicharesubjectto
reviewbymeansoIanurgentprocedureonthebasisoItheIileIorwardedtoitby
theGeneralCourt.
ThosereIerredtoinArticle23oIthisStatuteand,inthecasesprovidedIorin
Article225(2)oItheECTreaty,thepartiestotheproceedingsbeIoretheGeneral
CourtshallbeentitledtolodgestatementsorwrittenobservationswiththeCourt
oIJusticerelatingtoquestionswhicharesubjecttoreviewwithinaperiod
prescribedIorthatpurpose.
TheCourtoIJusticemaydecidetoopentheoralprocedurebeIoregivinga
ruling.

Article 62b

InthecasesprovidedIorinArticle256(2)oItheTreatyontheFunctioningoIthe
EuropeanUnion,withoutprejudicetoArticles278and279oItheTreatyonthe
FunctioningoItheEuropeanUnion,proposalsIorreviewanddecisionstoopen
thereviewprocedureshallnothavesuspensoryeIIect.IItheCourtoIJustice
IindsthatthedecisionoItheGeneralCourtaIIectstheunityorconsistencyoI
Unionlaw,itshallreIerthecasebacktotheGeneralCourtwhichshallbebound
226

bythepointsoIlawdecidedbytheCourtoIJustice;theCourtoIJusticemay
statewhichoItheeIIectsoIthedecisionoItheGeneralCourtaretobe
consideredasdeIinitiveinrespectoIthepartiestothelitigation.II,however,
havingregardtotheresultoIthereview,theoutcomeoItheproceedingsIlows
IromtheIindingsoIIactonwhichthedecisionoItheGeneralCourtwasbased,
theCourtoIJusticeshallgiveIinaljudgment.
InthecasesprovidedIorinArticle256(3)oItheTreatyontheFunctioningoIthe
EuropeanUnion,intheabsenceoIproposalsIorreviewordecisionstoopenthe
reviewprocedure,theanswer(s)givenbytheGeneralCourttothequestions
submittedtoitshalltakeeIIectuponexpiryoItheperiodsprescribedIorthat
purposeinthesecondparagraphoIArticle62.Shouldareviewprocedurebe
opened,theanswer(s)subjecttoreviewshalltakeeIIectIollowingthat
procedure,unlesstheCourtoIJusticedecidesotherwise.IItheCourtoIJustice
IindsthatthedecisionoItheGeneralCourtaIIectstheunityorconsistencyoI
Unionlaw,theanswergivenbytheCourtoIJusticetothequestionssubjectto
reviewshallbesubstitutedIorthatgivenbytheGeneralCourt.

TITLEIVa
JUDICIALPANELS

Article 62c

Theprovisionsrelatingtothejurisdiction,composition,organisationand
procedureoIthejudicialpanelsestablishedunderArticle257oItheTreatyonthe
FunctioningoItheEuropeanUnionaresetoutinanAnnextothisStatute.

TITLEV
FINALPROVISIONS

Article 63

TheRulesoIProcedureoItheCourtoIJusticeandoItheGeneralCourtshallcontain
anyprovisionsnecessaryIorapplyingand,whererequired,supplementingthis
Statute.

Article 64

227

TherulesgoverningthelanguagearrangementsapplicableattheCourtoIJusticeoI
theEuropeanUnionshallbelaiddownbyaregulationoItheCouncilacting
unanimously.ThisregulationshallbeadoptedeitherattherequestoItheCourtoI
JusticeandaIterconsultationoItheCommissionandtheEuropeanParliament,orona
proposalIromtheCommissionandaIterconsultationoItheCourtoIJusticeandoI
theEuropeanParliament.
Untilthoseruleshavebeenadopted,theprovisionsoItheRulesoIProcedureoIthe
CourtoIJusticeandoItheRulesoIProcedureoItheGeneralCourtgoverning
languagearrangementsshallcontinuetoapply.BywayoIderogationIromArticles
253and254oItheTreatyontheFunctioningoItheEuropeanUnion,thoseprovisions
mayonlybeamendedorrepealedwiththeunanimousconsentoItheCouncil.

Annex I

The European Union Civil Service Tribunal

Article 1

TheEuropeanUnionCivilServiceTribunal(hereaItertheCivilServiceTribunal)
shallexerciseatIirstinstancejurisdictionindisputesbetweentheUnionandits
servantsreIerredtoinArticle270oItheTreatyontheFunctioningoItheEuropean
Union,includingdisputesbetweenanyallbodiesoragenciesandtheirservantsin
respectoIwhichjurisdictionisconIerredontheCourtoIJusticeoItheEuropean
Union.

Article 2

TheCivilServiceTribunalshallconsistoIsevenjudges.ShouldtheCourtoIJustice
sorequest,theCouncil,actingbyaqualiIiedmajority,mayincreasethenumberoI
judges.

ThejudgesshallbeappointedIoraperiodoIsixyears.Retiringjudgesmaybe
reappointed.

AnyvacancyshallbeIilledbytheappointmentoIanewjudgeIoraperiodoIsix
years.

Article 3

1.ThejudgesshallbeappointedbytheCouncil,actinginaccordancewiththeIourth
paragraphoIArticle257oItheTreatyontheFunctioningoItheEuropeanUnion,
aIterconsultingthecommitteeprovidedIorbythisArticle.Whenappointingjudges,
228

theCouncilshallensureabalancedcompositionoItheCivilServiceTribunalonas
broadageographicalbasisaspossibleIromamongnationalsoItheMemberStates
andwithrespecttothenationallegalsystemsrepresented.

2.AnypersonwhoisaUnioncitizenandIulIilstheconditionslaiddownintheIourth
paragraphoIArticle257oItheTreatyontheFunctioningoItheEuropeanUnionmay
submitanapplication.TheCouncil,actingonarecommendationIromtheCourtoI
Justice,shalldeterminetheconditionsandthearrangementsgoverningthesubmission
andprocessingoIsuchapplications.

3.AcommitteeshallbesetupcomprisingsevenpersonschosenIromamongIormer
membersoItheCourtoIJusticeandtheGeneralCourtandlawyersoIrecognised
competence.Thecommitteesmembershipandoperatingrulesshallbedeterminedby
theCouncil,actingonarecommendationbythePresidentoItheCourtoIJustice.

4.ThecommitteeshallgiveanopiniononcandidatessuitabilitytoperIormtheduties
oIjudgeattheCivilServiceTribunal.Thecommitteeshallappendtoitsopinionalist
oIcandidateshavingthemostsuitablehigh-levelexperience.Suchlistshallcontain
thenamesoIatleasttwiceasmanycandidatesastherearejudgestobeappointedby
theCouncil.

Article 4

1.ThejudgesshallelectthePresidentoItheCivilServiceTribunalIromamongtheir
numberIoratermoIthreeyears.Hemaybere-elected.

2.TheCivilServiceTribunalshallsitinchambersoIthreejudges.Itmay,incertain
casesdeterminedbyitsrulesoIprocedure,sitinIullcourtorinachamberoIIive
judgesoroIasinglejudge.

3.ThePresidentoItheCivilServiceTribunalshallpresideovertheIullcourtandthe
chamberoIIivejudges.ThePresidentsoIthechambersoIthreejudgesshallbe
designatedasprovidedinparagraph1.IIthePresidentoItheCivilServiceTribunalis
assignedtoachamberoIthreejudges,heshallpresideoverthatchamber.

4.ThejurisdictionoIandquorumIortheIullcourtaswellasthecompositionoIthe
chambersandtheassignmentoIcasestothemshallbegovernedbytherulesoI
procedure.


Article 5

Articles2to6,14,15,theIirst,secondandIiIthparagraphsoIArticle17,andArticle
18oItheStatuteoItheCourtoIJusticeoItheEuropeanUnionshallapplytotheCivil
ServiceTribunalanditsmembers.

229

TheoathreIerredtoinArticle2oItheStatuteshallbetakenbeIoretheCourtoI
Justice,andthedecisionsreIerredtoinArticles3,4and6thereoIshallbeadoptedby
theCourtoIJusticeaIterconsultingtheCivilServiceTribunal.

Article 6

1.TheCivilServiceTribunalshallbesupportedbythedepartmentsoItheCourtoI
JusticeandoItheGeneralCourt.ThePresidentoItheCourtoIJusticeor,in
appropriatecases,thePresidentoItheGeneralCourt,shalldeterminebycommon
accordwiththePresidentoItheCivilServiceTribunaltheconditionsunderwhich
oIIicialsandotherservantsattachedtotheCourtoIJusticeortheGeneralCourtshall
rendertheirservicestotheCivilServiceTribunaltoenableittoIunction.Certain
oIIicialsorotherservantsshallberesponsibletotheRegistraroItheCivilService
TribunalundertheauthorityoIthePresidentoIthatTribunal.

2.TheCivilServiceTribunalshallappointitsRegistrarandlaydowntherules
governinghisservice.TheIourthparagraphoIArticle3andArticles10,11and14oI
theStatuteoItheCourtoIJusticeoItheEuropeanUnionshallapplytotheRegistrar
oItheTribunal.

Article 7

1.TheprocedurebeIoretheCivilServiceTribunalshallbegovernedbyTitleIIIoI
theStatuteoItheCourtoIJusticeoItheEuropeanUnion,withtheexceptionoI
Articles22and23.SuchIurtherandmoredetailedprovisionsasmaybenecessary
shallbelaiddownintherulesoIprocedure.

2.TheprovisionsconcerningtheGeneralCourtslanguagearrangementsshallapply
totheCivilServiceTribunal.

3.ThewrittenstageoItheprocedureshallcomprisethepresentationoIthe
applicationandoIthestatementoIdeIence,unlesstheCivilServiceTribunaldecides
thatasecondexchangeoIwrittenpleadingsisnecessary.Wherethereissuchsecond
exchange,theCivilServiceTribunalmay,withtheagreementoItheparties,decideto
proceedtojudgmentwithoutanoralprocedure.

4.AtallstagesoItheprocedure,includingthetimewhentheapplicationisIiled,the
CivilServiceTribunalmayexaminethepossibilitiesoIanamicablesettlementoIthe
disputeandmaytrytoIacilitatesuchsettlement.

5.TheCivilServiceTribunalshallruleonthecostsoIacase.SubjecttothespeciIic
provisionsoItheRulesoIProcedure,theunsuccessIulpartyshallbeorderedtopay
thecostsshouldthecourtsodecide.

230

Article 8

1.WhereanapplicationorotherproceduraldocumentaddressedtotheCivilService
TribunalislodgedbymistakewiththeRegistraroItheCourtoIJusticeorGeneral
Court,itshallbetransmittedimmediatelybythatRegistrartotheRegistraroIthe
CivilServiceTribunal.Likewise,whereanapplicationorotherproceduraldocument
addressedtotheCourtoIJusticeortotheGeneralCourtislodgedbymistakewiththe
RegistraroItheCivilServiceTribunal,itshallbetransmittedimmediatelybythat
RegistrartotheRegistraroItheCourtoIJusticeorGeneralCourt.

2.WheretheCivilServiceTribunalIindsthatitdoesnothavejurisdictiontohearand
determineanactioninrespectoIwhichtheCourtoIJusticeortheGeneralCourthas
jurisdiction,itshallreIerthatactiontotheCourtoIJusticeortotheGeneralCourt.
Likewise,wheretheCourtoIJusticeortheGeneralCourtIindsthatanactionIalls
withinthejurisdictionoItheCivilServiceTribunal,theCourtseisedshallreIerthat
actiontotheCivilServiceTribunal,whereuponthatTribunalmaynotdecline
jurisdiction.

3.WheretheCivilServiceTribunalandtheGeneralCourtareseisedoIcasesin
whichthesameissueoIinterpretationisraisedorthevalidityoIthesameactiscalled
inquestion,theCivilServiceTribunal,aIterhearingtheparties,maystaythe
proceedingsuntilthejudgmentoItheGeneralCourthasbeendelivered.

WheretheCivilServiceTribunalandtheGeneralCourtareseisedoIcasesinwhich
thesamerelieIissought,theCivilServiceTribunalshalldeclinejurisdictionsothat
theGeneralCourtmayactonthosecases.

Article 9

AnappealmaybebroughtbeIoretheGeneralCourt,withintwomonthsoI
notiIicationoIthedecisionappealedagainst,againstIinaldecisionsoItheCivil
ServiceTribunalanddecisionsoIthatTribunaldisposingoIthesubstantiveissuesin
partonlyordisposingoIaproceduralissueconcerningapleaoIlackoIjurisdictionor
inadmissibility.

SuchanappealmaybebroughtbyanypartywhichhasbeenunsuccessIul,inwhole
orinpart,initssubmissions.However,intervenersotherthantheMemberStatesand
theinstitutionsoItheUnionmaybringsuchanappealonlywherethedecisionoIthe
CivilServiceTribunaldirectlyaIIectsthem.

Article 10

1.AnypersonwhoseapplicationtointervenehasbeendismissedbytheCivilService
TribunalmayappealtotheGeneralCourtwithintwoweeksoInotiIicationoIthe
decisiondismissingtheapplication.
231

2.ThepartiestotheproceedingsmayappealtotheGeneralCourtagainstany
decisionoItheCivilServiceTribunalmadepursuanttoArticle278orArticle279or
theIourthparagraphoIArticle299oItheTreatyontheFunctioningoItheEuropean
UnionorArticle157orthethirdparagraphoIArticle164oItheEAECTreatywithin
twomonthsoIitsnotiIication.

3.ThePresidentoItheGeneralCourtmay,bywayoIsummaryprocedure,which
may,insoIarasnecessary,diIIerIromsomeoItherulescontainedinthisAnnexand
whichshallbelaiddownintherulesoIprocedureoItheGeneralCourt,adjudicate
uponappealsbroughtinaccordancewithparagraphs1and2.

Article 11

1.AnappealtotheGeneralCourtshallbelimitedtopointsoIlaw.Itshalllieonthe
groundsoIlackoIjurisdictionoItheCivilServiceTribunal,abreachoIprocedure
beIoreitwhichadverselyaIIectstheinterestsoItheappellantaswellasthe
inIringementoIUnionlawbytheTribunal.

2.NoappealshalllieregardingonlytheamountoIthecostsorthepartyorderedto
paythem.

Article 12

1.WithoutprejudicetoArticles278and279oItheTreatyontheFunctioningoIthe
EuropeanUnionorArticle157oItheEAECTreaty,anappealbeIoretheGeneral
CourtshallnothavesuspensoryeIIect.

2.WhereanappealisbroughtagainstadecisionoItheCivilServiceTribunal,the
procedurebeIoretheGeneralCourtshallconsistoIawrittenpartandanoralpart.In
accordancewithconditionslaiddownintherulesoIprocedure,theGeneralCourt,
havingheardtheparties,maydispensewiththeoralprocedure.

Article 13

1.IItheappealiswellIounded,theGeneralCourtshallquashthedecisionoIthe
CivilServiceTribunalanditselIgivejudgmentinthematter.ItshallreIerthecase
backtotheCivilServiceTribunalIorjudgmentwherethestateoItheproceedings
doesnotpermitadecisionbytheCourt.

2.WhereacaseisreIerredbacktotheCivilServiceTribunal,theTribunalshallbe
boundbythedecisionoItheGeneralCourtonpointsoIlaw.
232

PROTOCOL

ONTHESTATUTEOFTHEEUROPEANSYSTEMOFCENTRALBANKSAND
OFTHEEUROPEANCENTRALBANK

THEHIGHCONTRACTINGPARTIES,

DESIRINGtolaydowntheStatuteoItheEuropeanSystemoICentralBanksandoI
theEuropeanCentralBankprovidedIorinthesecondparagraphoIArticle129oIthe
TreatyontheFunctioningoItheEuropeanUnion,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtothethe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union.

CHAPTERI

THEEUROPEANSYSTEMOFCENTRALBANKS

Article 1

1.1.InaccordancewithArticle282(1)oItheTreatyonEuropeanUnion,theEuropean
CentralBank(ECB)andthenationalcentralbanksshallconstitutetheEuropean
SystemoICentralBanks(ESCB).TheECBandthenationalcentralbanksoIthose
MemberStateswhosecurrencyistheeuroshallconstitutetheEurosystem.

TheESCBandtheECBshallperIormtheirtasksandcarryontheiractivitiesin
accordancewiththeprovisionsoItheseTreatiesandoIthisStatute.

CHAPTERII

OBJECTIVESANDTASKSOFTHEESCB

Article 2

InaccordancewithArticle127(1)andArticle282(2)oItheTreatyontheFunctioning
oItheEuropeanUnion,theprimaryobjectiveoItheESCBshallbetomaintainprice
stability.WithoutprejudicetotheobjectiveoIpricestability,itshallsupportthe
generaleconomicpoliciesintheUnionwithaviewtocontributingtotheachievement
oItheobjectivesoItheUnionaslaiddowninArticle3oItheTreatyonthe
FunctioningoItheEuropeanUnion.TheESCBshallactinaccordancewiththe
principleoIanopenmarketeconomywithIreecompetition,IavouringaneIIicient
233

allocationoIresources,andincompliancewiththeprinciplessetoutinArticle119oI
theTreatyontheFunctioningoItheEuropeanUnion.

Article 3

3.1.InaccordancewithArticle127(2)oItheTreatyontheFunctioningoIthe
EuropeanUnion,thebasictaskstobecarriedoutthroughtheESCBshallbe:

todeIineandimplementthemonetarypolicyoItheUnion;
toconductIoreign-exchangeoperationsconsistentwiththeprovisionsoIArticle
219oIthatTreaty;
toholdandmanagetheoIIicialIoreignreservesoItheMemberStates;
topromotethesmoothoperationoIpaymentsystems.

3.2.InaccordancewithArticle127(3)oItheTreatyontheFunctioningoIthe
EuropeanUnion,thethirdindentoIArticle3.1shallbewithoutprejudicetothe
holdingandmanagementbythegovernmentsoIMemberStatesoIIoreign-exchange
workingbalances.

3.3.InaccordancewithArticle127(5)oItheTreatyontheFunctioningoIthe
EuropeanUnion,theESCBshallcontributetothesmoothconductoIpoliciespursued
bythecompetentauthoritiesrelatingtotheprudentialsupervisionoIcredit
institutionsandthestabilityoItheIinancialsystem.

Article 4

InaccordancewithArticle127(4)oItheTreatyontheFunctioningoItheEuropean
Union:

(a)theECBshallbeconsulted:
onanyproposedUnionactinitsIieldsoIcompetence;
bynationalauthoritiesregardinganydraItlegislativeprovisioninitsIieldsoI
competence,butwithinthelimitsandundertheconditionssetoutbytheCouncilin
accordancewiththeprocedurelaiddowninArticle41;

(b)theECBmaysubmitopinionstotheUnioninstitutions,bodies,oIIicesoragencies
ortonationalauthoritiesonmattersinitsIieldsoIcompetence.

Article 5

234

5.1.InordertoundertakethetasksoItheESCB,theECB,assistedbythenational
centralbanks,shallcollectthenecessarystatisticalinIormationeitherIromthe
competentnationalauthoritiesordirectlyIromeconomicagents.Forthesepurposesit
shallcooperatewiththeUnioninstitutions,bodies,oIIicesoragenciesandwiththe
competentauthoritiesoItheMemberStatesorthirdcountriesandwithinternational
organisations.

5.2.Thenationalcentralbanksshallcarryout,totheextentpossible,thetasks
describedinArticle5.1.

5.3.TheECBshallcontributetotheharmonisation,wherenecessary,oItherulesand
practicesgoverningthecollection,compilationanddistributionoIstatisticsinthe
areaswithinitsIieldsoIcompetence.

5.4.TheCouncil,inaccordancewiththeprocedurelaiddowninArticle41,shall
deIinethenaturalandlegalpersonssubjecttoreportingrequirements,the
conIidentialityregimeandtheappropriateprovisionsIorenIorcement.

Article 6

6.1.IntheIieldoIinternationalcooperationinvolvingthetasksentrustedtothe
ESCB,theECBshalldecidehowtheESCBshallberepresented.

6.2.TheECBand,subjecttoitsapproval,thenationalcentralbanksmayparticipate
ininternationalmonetaryinstitutions.

6.3.Articles6.1and6.2shallbewithoutprejudicetoArticle138(1)oItheTreatyon
theFunctioningoItheEuropeanUnion.

CHAPTER III

ORGANISATIONOFTHEESCB

Article 7

InaccordancewithArticle130oItheTreatyontheFunctioningoItheEuropean
Union,whenexercisingthepowersandcarryingoutthetasksanddutiesconIerred
uponthembytheTreatyontheFunctioningoItheEuropeanUnionandthisStatute,
neithertheECB,noranationalcentralbank,noranymemberoItheirdecision-
makingbodiesshallseekortakeinstructionsIromUnioninstitutions,bodies,oIIices
oragencies,IromanygovernmentoIaMemberStateorIromanyotherbody.The
Unioninstitutions,bodies,oIIicesoragenciesandthegovernmentsoItheMember
StatesundertaketorespectthisprincipleandnottoseektoinIluencethemembersoI
235

thedecision-makingbodiesoItheECBoroIthenationalcentralbanksinthe
perIormanceoItheirtasks.

Article 8
General principle

TheESCBshallbegovernedbythedecision-makingbodiesoItheECB.

Article 9

9.1.TheECBwhich,inaccordancewithArticle282(3)oItheTreatyonthe
FunctioningoItheEuropeanUnion,shallhavelegalpersonality,shallenjoyineach
oItheMemberStatesthemostextensivelegalcapacityaccordedtolegalpersons
underitslaw;itmay,inparticular,acquireordisposeoImovableandimmovable
propertyandmaybeapartytolegalproceedings.

9.2.TheECBshallensurethatthetasksconIerredupontheESCBunderArticle
127(2),(3)and(5)oItheTreatyontheFunctioningoItheEuropeanUnionare
implementedeitherbyitsownactivitiespursuanttothisStatuteorthroughthe
nationalcentralbankspursuanttoArticles12.1and14.

9.3.InaccordancewithArticle129(1)oItheTreatyontheFunctioningoIthe
EuropeanUnion,thedecisionmakingbodiesoItheECBshallbetheGoverning
CouncilandtheExecutiveBoard.

Article 10

10.1.InaccordancewithArticle283(1)oItheTreaties,theGoverningCouncilshall
comprisethemembersoItheExecutiveBoardoItheECBandthegovernorsoIthe
nationalcentralbanksoItheMemberStateswhosecurrencyistheeuro.

10.2.EachmemberoItheGoverningCouncilshallhaveonevote.AsIromthedate
onwhichthenumberoImembersoItheGoverningCouncilexceeds21,eachmember
oItheExecutiveBoardshallhaveonevoteandthenumberoIgovernorswithavoting
rightshallbe15.ThelattervotingrightsshallbeassignedandshallrotateasIollows:

asIromthedateonwhichthenumberoIgovernorsexceeds15,untilitreaches22,
thegovernorsshallbeallocatedtotwogroups,accordingtoarankingoIthesizeoI
theshareoItheirnationalcentralbanksMemberStateintheaggregategross
domesticproductatmarketpricesandinthetotalaggregatedbalancesheetoIthe
monetaryIinancialinstitutionsoItheMemberStateswhosecurrencyistheeuro.The
sharesintheaggregategrossdomesticproductatmarketpricesandinthetotal
aggregatedbalancesheetoIthemonetaryIinancialinstitutionsshallbeassigned
236

weightsoI5/6and1/6,respectively.TheIirstgroupshallbecomposedoIIive
governorsandthesecondgroupoItheremaininggovernors.TheIrequencyoIvoting
rightsoIthegovernorsallocatedtotheIirstgroupshallnotbelowerthanthe
IrequencyoIvotingrightsoIthoseoIthesecondgroup.Subjecttotheprevious
sentence,theIirstgroupshallbeassignedIourvotingrightsandthesecondgroup
elevenvotingrights;

asIromthedateonwhichthenumberoIgovernorsreaches22,thegovernorsshall
beallocatedtothreegroupsaccordingtoarankingbasedontheabovecriteria.The
IirstgroupshallbecomposedoIIivegovernorsandshallbeassignedIourvoting
rights.ThesecondgroupshallbecomposedoIhalIoIthetotalnumberoIgovernors,
withanyIractionroundeduptothenearestinteger,andshallbeassignedeightvoting
rights.ThethirdgroupshallbecomposedoItheremaininggovernorsandshallbe
assignedthreevotingrights;

withineachgroup,thegovernorsshallhavetheirvotingrightsIorequalamounts
oItime;

IorthecalculationoIthesharesintheaggregategrossdomesticproductatmarket
pricesArticle29.2shallapply.ThetotalaggregatedbalancesheetoIthemonetary
IinancialinstitutionsshallbecalculatedinaccordancewiththestatisticalIramework
applyingintheUnionatthetimeoIthecalculation;

whenevertheaggregategrossdomesticproductatmarketpricesisadjustedin
accordancewithArticle29.3,orwheneverthenumberoIgovernorsincreases,thesize
and/orcompositionoIthegroupsshallbeadjustedinaccordancewiththeabove
principles;

theGoverningCouncil,actingbyatwo-thirdsmajorityoIallitsmembers,with
andwithoutavotingright,shalltakeallmeasuresnecessaryIortheimplementationoI
theaboveprinciplesandmaydecidetopostponethestartoItherotationsystemuntil
thedateonwhichthenumberoIgovernorsexceeds18.

Therighttovoteshallbeexercisedinperson.BywayoIderogationIromthisrule,the
RulesoIProcedurereIerredtoinArticle12.3maylaydownthatmembersoIthe
GoverningCouncilmaycasttheirvotebymeansoIteleconIerencing.Theserules
shallalsoprovidethatamemberoItheGoverningCouncilwhoispreventedIrom
attendingmeetingsoItheGoverningCouncilIoraprolongedperiodmayappointan
alternateasamemberoItheGoverningCouncil.

TheprovisionsoIthepreviousparagraphsarewithoutprejudicetothevotingrightsoI
allmembersoItheGoverningCouncil,withandwithoutavotingright,underArticles
10.3,40.2and40.3.

SaveasotherwiseprovidedIorinthisStatute,theGoverningCouncilshallactbya
simplemajorityoIthemembershavingavotingright.IntheeventoIatie,the
Presidentshallhavethecastingvote.

InorderIortheGoverningCounciltovote,thereshallbeaquorumoItwo-thirdsoI
themembershavingavotingright.IIthequorumisnotmet,thePresidentmay
237

conveneanextraordinarymeetingatwhichdecisionsmaybetakenwithoutregardto
thequorum.

10.3.ForanydecisionstobetakenunderArticles28,29,30,32,33and49,thevotes
intheGoverningCouncilshallbeweightedaccordingtothenationalcentralbanks
sharesinthesubscribedcapitaloItheECB.TheweightsoIthevotesoIthemembers
oItheExecutiveBoardshallbezero.AdecisionrequiringaqualiIiedmajorityshall
beadoptediIthevotescastinIavourrepresentatleasttwothirdsoIthesubscribed
capitaloItheECBandrepresentatleasthalIoItheshareholders.IIaGovernoris
unabletobepresent,hemaynominateanalternatetocasthisweightedvote.

10.4.TheproceedingsoIthemeetingsshallbeconIidential.TheGoverningCouncil
maydecidetomaketheoutcomeoIitsdeliberationspublic.

10.5.TheGoverningCouncilshallmeetatleast10timesayear.

Article 11

11.1.InaccordancewithArticle283(2),Iirstsubparagraph,oItheTreatyonthe
FunctioningoItheEuropeanUnion,theExecutiveBoardshallcomprisethe
President,theVice-PresidentandIourothermembers.

ThemembersshallperIormtheirdutiesonaIull-timebasis.Nomembershallengage
inanyoccupation,whethergainIulornot,unlessexemptionisexceptionallygranted
bytheGoverningCouncil.

11.2.InaccordancewithArticle283(2),secondsubparagraph,oItheTreatyonthe
FunctioningoItheEuropeanUnion,thePresident,theVice-Presidentandtheother
membersoItheExecutiveBoardshallbeappointedbytheEuropeanCouncil,acting
byaqualiIiedmajority,IromamongpersonsoIrecognisedstandingandproIessional
experienceinmonetaryorbankingmatters,onarecommendationIromtheCouncil
aIterithasconsultedtheEuropeanParliamentandtheGoverningCouncil.

TheirtermoIoIIiceshallbeeightyearsandshallnotberenewable.

OnlynationalsoIMemberStatesmaybemembersoItheExecutiveBoard.

11.3.ThetermsandconditionsoIemploymentoIthemembersoItheExecutive
Board,inparticulartheirsalaries,pensionsandothersocialsecuritybeneIitsshallbe
thesubjectoIcontractswiththeECBandshallbeIixedbytheGoverningCouncilon
aproposalIromaCommitteecomprisingthreemembersappointedbytheGoverning
CouncilandthreemembersappointedbytheCouncil.ThemembersoItheExecutive
BoardshallnothavetherighttovoteonmattersreIerredtointhisparagraph.

11.4.IIamemberoItheExecutiveBoardnolongerIulIilstheconditionsrequiredIor
theperIormanceoIhisdutiesoriIhehasbeenguiltyoIseriousmisconduct,theCourt
oIJusticemay,onapplicationbytheGoverningCouncilortheExecutiveBoard,
compulsorilyretirehim.
238

11.5.EachmemberoItheExecutiveBoardpresentinpersonshallhavetherightto
voteandshallhave,Iorthatpurpose,onevote.Saveasotherwiseprovided,the
ExecutiveBoardshallactbyasimplemajorityoIthevotescast.IntheeventoIatie,
thePresidentshallhavethecastingvote.ThevotingarrangementsshallbespeciIied
intheRulesoIProcedurereIerredtoinArticle12.3.

11.6.TheExecutiveBoardshallberesponsibleIorthecurrentbusinessoItheECB.

11.7.AnyvacancyontheExecutiveBoardshallbeIilledbytheappointmentoIanew
memberinaccordancewithArticle11.2.


Article 12

12.1.TheGoverningCouncilshalladopttheguidelinesandtakethedecisions
necessarytoensuretheperIormanceoIthetasksentrustedtotheESCBunderthese
TreatiesandthisStatute.TheGoverningCouncilshallIormulatethemonetarypolicy
oItheUnionincluding,asappropriate,decisionsrelatingtointermediatemonetary
objectives,keyinterestratesandthesupplyoIreservesintheESCB,andshall
establishthenecessaryguidelinesIortheirimplementation.

TheExecutiveBoardshallimplementmonetarypolicyinaccordancewiththe
guidelinesanddecisionslaiddownbytheGoverningCouncil.Indoingsothe
ExecutiveBoardshallgivethenecessaryinstructionstonationalcentralbanks.In
additiontheExecutiveBoardmayhavecertainpowersdelegatedtoitwherethe
GoverningCouncilsodecides.

Totheextentdeemedpossibleandappropriateandwithoutprejudicetotheprovisions
oIthisArticle,theECBshallhaverecoursetothenationalcentralbankstocarryout
operationswhichIormpartoIthetasksoItheESCB.

12.2.TheExecutiveBoardshallhaveresponsibilityIorthepreparationoImeetingsoI
theGoverningCouncil.

12.3.TheGoverningCouncilshalladoptRulesoIProcedurewhichdeterminethe
internalorganisationoItheECBanditsdecision-makingbodies.

12.4.TheGoverningCouncilshallexercisetheadvisoryIunctionsreIerredtoin
Article4.

12.5.TheGoverningCouncilshalltakethedecisionsreIerredtoinArticle6.

Article 13

13.1.ThePresidentor,inhisabsence,theVice-PresidentshallchairtheGoverning
CouncilandtheExecutiveBoardoItheECB.
239

13.2.WithoutprejudicetoArticle38,thePresidentorhisnomineeshallrepresentthe
ECBexternally.

Article 14
National central banks

14.1.InaccordancewithArticle131oItheTreatyontheFunctioningoItheEuropean
Union,eachMemberStateshallensurethatitsnationallegislation,includingthe
statutesoIitsnationalcentralbank,iscompatiblewiththeseTreatiesandthisStatute.

14.2.ThestatutesoIthenationalcentralbanksshall,inparticular,providethatthe
termoIoIIiceoIaGovernoroIanationalcentralbankshallbenolessthanIiveyears.

AGovernormayberelievedIromoIIiceonlyiIhenolongerIulIilstheconditions
requiredIortheperIormanceoIhisdutiesoriIhehasbeenguiltyoIserious
misconduct.AdecisiontothiseIIectmaybereIerredtotheCourtoIJusticebythe
GovernorconcernedortheGoverningCouncilongroundsoIinIringementoIthese
TreatiesoroIanyruleoIlawrelatingtotheirapplication.Suchproceedingsshallbe
institutedwithintwomonthsoIthepublicationoIthedecisionoroIitsnotiIicationto
theplaintiIIor,intheabsencethereoI,oIthedayonwhichitcametotheknowledge
oIthelatter,asthecasemaybe.

14.3.ThenationalcentralbanksareanintegralpartoItheESCBandshallactin
accordancewiththeguidelinesandinstructionsoItheECB.TheGoverningCouncil
shalltakethenecessarystepstoensurecompliancewiththeguidelinesand
instructionsoItheECB,andshallrequirethatanynecessaryinIormationbegivento
it.

14.4.NationalcentralbanksmayperIormIunctionsotherthanthosespeciIiedinthis
StatuteunlesstheGoverningCouncilIinds,byamajorityoItwothirdsoIthevotes
cast,thattheseinterIerewiththeobjectivesandtasksoItheESCB.SuchIunctions
shallbeperIormedontheresponsibilityandliabilityoInationalcentralbanksand
shallnotberegardedasbeingpartoItheIunctionsoItheESCB.

Article 15

15.1.TheECBshalldrawupandpublishreportsontheactivitiesoItheESCBatleast
quarterly.

15.2.AconsolidatedIinancialstatementoItheESCBshallbepublishedeachweek.

15.3.InaccordancewithArticle284(3)oItheTreatyontheFunctioningoIthe
EuropeanUnion,theECBshalladdressanannualreportontheactivitiesoItheESCB
andonthemonetarypolicyoIboththepreviousandthecurrentyeartotheEuropean
Parliament,theCouncilandtheCommission,andalsototheEuropeanCouncil.
240

15.4.ThereportsandstatementsreIerredtointhisArticleshallbemadeavailableto
interestedpartiesIreeoIcharge.

Article 16
Banknotes

InaccordancewithArticle128(1)oItheTreatyontheFunctioningoItheEuropean
Union,theGoverningCouncilshallhavetheexclusiverighttoauthorisetheissueoI
eurobanknoteswithintheUnion.TheECBandthenationalcentralbanksmayissue
suchnotes.ThebanknotesissuedbytheECBandthenationalcentralbanksshallbe
theonlysuchnotestohavethestatusoIlegaltenderwithintheUnion.

TheECBshallrespectasIaraspossibleexistingpracticesregardingtheissueand
designoIbanknotes.



CHAPTER IV

MONETARYFUNCTIONSANDOPERATIONSOFTHEESCB

Article 17
Accounts with the ECB and the national central banks

Inordertoconducttheiroperations,theECBandthenationalcentralbanksmayopen
accountsIorcreditinstitutions,publicentitiesandothermarketparticipantsand
acceptassets,includingbookentrysecurities,ascollateral.


Article 18
Open market and credit operations

18.1.InordertoachievetheobjectivesoItheESCBandtocarryoutitstasks,the
ECBandthenationalcentralbanksmay:

operateintheIinancialmarketsbybuyingandsellingoutright(spotandIorward)
orunderrepurchaseagreementandbylendingorborrowingclaimsandmarketable
instruments,whetherineuroorothercurrencies,aswellaspreciousmetals;

conductcreditoperationswithcreditinstitutionsandothermarketparticipants,
withlendingbeingbasedonadequatecollateral.

241

18.2.TheECBshallestablishgeneralprinciplesIoropenmarketandcreditoperations
carriedoutbyitselIorthenationalcentralbanks,includingIortheannouncementoI
conditionsunderwhichtheystandreadytoenterintosuchtransactions.


Article 19
Minimum reserves

19.1.SubjecttoArticle2,theECBmayrequirecreditinstitutionsestablishedin
MemberStatestoholdminimumreserveonaccountswiththeECBandnational
centralbanksinpursuanceoImonetarypolicyobjectives.Regulationsconcerningthe
calculationanddeterminationoItherequiredminimumreservesmaybeestablished
bytheGoverningCouncil.IncasesoInon-compliancetheECBshallbeentitledto
levypenaltyinterestandtoimposeothersanctionswithcomparableeIIect.

19.2.FortheapplicationoIthisArticle,theCouncilshall,inaccordancewiththe
procedurelaiddowninArticle41,deIinethebasisIorminimumreservesandthe
maximumpermissibleratiosbetweenthosereservesandtheirbasis,aswellasthe
appropriatesanctionsincasesoInon-compliance.


Article 20

TheGoverningCouncilmay,byamajorityoItwothirdsoIthevotescast,decide
upontheuseoIsuchotheroperationalmethodsoImonetarycontrolasitseesIit,
respectingArticle2.

TheCouncilshall,inaccordancewiththeprocedurelaiddowninArticle41,deIine
thescopeoIsuchmethodsiItheyimposeobligationsonthirdparties.

Article 21
Operations with public entities

21.1.InaccordancewithArticle123oItheTreatyontheFunctioningoItheEuropean
Union,overdraItsoranyothertypeoIcreditIacilitywiththeECBorwiththenational
centralbanksinIavouroIUnioninstitutions,bodies,oIIicesoragencies,central
governments,regional,localorotherpublicauthorities,otherbodiesgovernedby
publiclaw,orpublicundertakingsoIMemberStatesshallbeprohibited,asshallthe
purchasedirectlyIromthembytheECBornationalcentralbanksoIdebtinstruments.

21.2.TheECBandnationalcentralbanksmayactasIiscalagentsIortheentities
reIerredtoinArticle21.1.

21.3.TheprovisionsoIthisArticleshallnotapplytopubliclyownedcredit
institutionswhich,inthecontextoIthesupplyoIreservesbycentralbanks,shallbe
242

giventhesametreatmentbynationalcentralbanksandtheECBasprivatecredit
institutions.


Article 22
Clearing and payment systems

TheECBandnationalcentralbanksmayprovideIacilities,andtheECBmaymake
regulations,toensureeIIicientandsoundclearingandpaymentsystemswithinthe
Unionandwithothercountries.

Article 23
External operations

TheECBandnationalcentralbanksmay:

establishrelationswithcentralbanksandIinancialinstitutionsinothercountries
and,whereappropriate,withinternationalorganisations;

acquireandsellspotandIorwardalltypesoIIoreignexchangeassetsandprecious
metals;thetermIoreignexchangeassetshallincludesecuritiesandallotherassets
inthecurrencyoIanycountryorunitsoIaccountandinwhateverIormheld;

holdandmanagetheassetsreIerredtointhisArticle;

conductalltypesoIbankingtransactionsinrelationswiththirdcountriesand
internationalorganisations,includingborrowingandlendingoperations.


Article 24
Other operations

InadditiontooperationsarisingIromtheirtasks,theECBandnationalcentralbanks
mayenterintooperationsIortheiradministrativepurposesorIortheirstaII.



CHAPTER V

PRUDENTIALSUPERVISION

Article 25
Prudential supervision

243

25.1.TheECBmayoIIeradvicetoandbeconsultedbytheCouncil,theCommission
andthecompetentauthoritiesoItheMemberStatesonthescopeandimplementation
oIUnionlegislationrelatingtotheprudentialsupervisionoIcreditinstitutionsandto
thestabilityoItheIinancialsystem.

25.2.InaccordancewithanyregulationoItheCouncilunderArticle127(6)oIthe
TreatyontheFunctioningoItheEuropeanUnion,theECBmayperIormspeciIic
tasksconcerningpoliciesrelatingtotheprudentialsupervisionoIcreditinstitutions
andotherIinancialinstitutionswiththeexceptionoIinsuranceundertakings.



CHAPTER VI

FINANCIALPROVISIONSOFTHEESCB


Article 26
Financial accounts

26.1.TheIinancialyearoItheECBandnationalcentralbanksshallbeginontheIirst
dayoIJanuaryandendonthelastdayoIDecember.

26.2.TheannualaccountsoItheECBshallbedrawnupbytheExecutiveBoard,in
accordancewiththeprinciplesestablishedbytheGoverningCouncil.Theaccounts
shallbeapprovedbytheGoverningCouncilandshallthereaIterbepublished.

26.3.Foranalyticalandoperationalpurposes,theExecutiveBoardshalldrawupa
consolidatedbalancesheetoItheESCB,comprisingthoseassetsandliabilitiesoIthe
nationalcentralbanksthatIallwithintheESCB.

26.4.FortheapplicationoIthisArticle,theGoverningCouncilshallestablishthe
necessaryrulesIorstandardisingtheaccountingandreportingoIoperations
undertakenbythenationalcentralbanks.


Article 27
Auditing

27.1.TheaccountsoItheECBandnationalcentralbanksshallbeauditedby
independentexternalauditorsrecommendedbytheGoverningCouncilandapproved
bytheCouncil.TheauditorsshallhaveIullpowertoexamineallbooksandaccounts
oItheECBandnationalcentralbanksandobtainIullinIormationabouttheir
transactions.

27.2.TheprovisionsoIArticle287oItheTreatyontheFunctioningoItheEuropean
UnionshallonlyapplytoanexaminationoItheoperationaleIIiciencyoIthe
managementoItheECB.
244

Article 28
Capital of the ECB

28.1.ThecapitaloItheECBshallbeeuro5000million.Thecapitalmaybe
increasedbysuchamountsasmaybedecidedbytheGoverningCouncilactingbythe
qualiIiedmajorityprovidedIorinArticle10.3,withinthelimitsandunderthe
conditionssetbytheCouncilundertheprocedurelaiddowninArticle41.

28.2.ThenationalcentralbanksshallbethesolesubscriberstoandholdersoIthe
capitaloItheECB.ThesubscriptionoIcapitalshallbeaccordingtothekey
establishedinaccordancewithArticle29.

28.3.TheGoverningCouncil,actingbythequaliIiedmajorityprovidedIorinArticle
10.3,shalldeterminetheextenttowhichandtheIorminwhichthecapitalshallbe
paidup.

28.4.SubjecttoArticle28.5,thesharesoIthenationalcentralbanksinthesubscribed
capitaloItheECBmaynotbetransIerred,pledgedorattached.

28.5.IIthekeyreIerredtoinArticle29isadjusted,thenationalcentralbanksshall
transIeramongthemselvescapitalsharestotheextentnecessarytoensurethatthe
distributionoIcapitalsharescorrespondstotheadjustedkey.TheGoverningCouncil
shalldeterminethetermsandconditionsoIsuchtransIers.

Article 29
Key for capital subscription

29.1.ThekeyIorsubscriptionoItheECBscapital,IixedIortheIirsttimein1998
whentheESCBwasestablished,shallbedeterminedbyassigningtoeachnational
centralbankaweightinginthiskeyequaltothesumoI:

50oItheshareoIitsrespectiveMemberStateinthepopulationoItheUnionin
thepenultimateyearprecedingtheestablishmentoItheESCB;
50oItheshareoIitsrespectiveMemberStateinthegrossdomesticproductat
marketpricesoItheUnionasrecordedinthelastIiveyearsprecedingthepenultimate
yearbeIoretheestablishmentoItheESCB.

ThepercentagesshallberoundedupordowntothenearestmultipleoI0,0001
percentagepoints.

29.2.ThestatisticaldatatobeusedIortheapplicationoIthisArticleshallbeprovided
bytheCommissioninaccordancewiththerulesadoptedbytheCouncilunderthe
procedureprovidedIorinArticle41.

245

29.3.Theweightingsassignedtothenationalcentralbanksshallbeadjustedevery
IiveyearsaItertheestablishmentoItheESCBbyanalogywiththeprovisionslaid
downinArticle29.1.TheadjustedkeyshallapplywitheIIectIromtheIirstdayoIthe
Iollowingyear.

29.4.TheGoverningCouncilshalltakeallothermeasuresnecessaryIorthe
applicationoIthisArticle.

Article 30
Transfer of foreign reserve assets to the ECB

30.1.WithoutprejudicetoArticle28,theECBshallbeprovidedbythenational
centralbankswithIoreignreserveassets,otherthanMemberStatescurrencies,euro,
IMFreservepositionsandSDRs,uptoanamountequivalenttoeuro50000million.
TheGoverningCouncilshalldecideupontheproportiontobecalledupbytheECB
Iollowingitsestablishmentandtheamountscalledupatlaterdates.TheECBshall
havetheIullrighttoholdandmanagetheIoreignreservesthataretransIerredtoit
andtousethemIorthepurposessetoutinthisStatute.

30.2.ThecontributionsoIeachnationalcentralbankshallbeIixedinproportiontoits
shareinthesubscribedcapitaloItheECB.

30.3.EachnationalcentralbankshallbecreditedbytheECBwithaclaimequivalent
toitscontribution.TheGoverningCouncilshalldeterminethedenominationand
remunerationoIsuchclaims.

30.4.FurthercallsoIIoreignreserveassetsbeyondthelimitsetinArticle30.1maybe
eIIectedbytheECB,inaccordancewithArticle30.2,withinthelimitsandunderthe
conditionssetbytheCouncilinaccordancewiththeprocedurelaiddowninArticle
41.

30.5.TheECBmayholdandmanageIMFreservepositionsandSDRsandprovide
IorthepoolingoIsuchassets.

30.6.TheGoverningCouncilshalltakeallothermeasuresnecessaryIorthe
applicationoIthisArticle.


Article 31
Foreignreserveassetsheldbynationalcentralbanks

31.1.ThenationalcentralbanksshallbeallowedtoperIormtransactionsinIulIilment
oItheirobligationstowardsinternationalorganisationsinaccordancewithArticle23.

31.2.AllotheroperationsinIoreignreserveassetsremainingwiththenationalcentral
banksaIterthetransIersreIerredtoinArticle30,andMemberStatestransactions
withtheirIoreignexchangeworkingbalancesshall,aboveacertainlimittobe
246

establishedwithintheIrameworkoIArticle31.3,besubjecttoapprovalbytheECB
inordertoensureconsistencywiththeexchangerateandmonetarypoliciesoIthe
Union.

31.3.TheGoverningCouncilshallissueguidelineswithaviewtoIacilitatingsuch
operations.

Article 32
Allocation of monetary income of national central banks

32.1.TheincomeaccruingtothenationalcentralbanksintheperIormanceoIthe
ESCBsmonetarypolicyIunction(hereinaIterreIerredtoasmonetaryincome)shall
beallocatedattheendoIeachIinancialyearinaccordancewiththeprovisionsoIthis
Article.

32.2.TheamountoIeachnationalcentralbanksmonetaryincomeshallbeequalto
itsannualincomederivedIromitsassetsheldagainstnotesincirculationanddeposit
liabilitiestocreditinstitutions.Theseassetsshallbeearmarkedbynationalcentral
banksinaccordancewithguidelinestobeestablishedbytheGoverningCouncil.

32.3.IIaItertheintroductionoItheeurothebalancesheetstructuresoIthenational
centralbanksdonot,inthejudgmentoItheGoverningCouncil,permitthe
applicationoIArticle32.2,theGoverningCouncil,actingbyaqualiIiedmajority,
maydecidethat,bywayoIderogationIromArticle32.2,monetaryincomeshallbe
measuredaccordingtoanalternativemethodIoraperiodoInotmorethanIiveyears.

32.4.TheamountoIeachnationalcentralbanksmonetaryincomeshallbereduced
byanamountequivalenttoanyinterestpaidbythatcentralbankonitsdeposit
liabilitiestocreditinstitutionsinaccordancewithArticle19.

TheGoverningCouncilmaydecidethatnationalcentralbanksshallbeindemniIied
againstcostsincurredinconnectionwiththeissueoIbanknotesorinexceptional
circumstancesIorspeciIiclossesarisingIrommonetarypolicyoperationsundertaken
IortheESCB.IndemniIicationshallbeinaIormdeemedappropriateinthejudgment
oItheGoverningCouncil;theseamountsmaybeoIIsetagainstthenationalcentral
banksmonetaryincome.

32.5.ThesumoIthenationalcentralbanksmonetaryincomeshallbeallocatedtothe
nationalcentralbanksinproportiontotheirpaidupsharesinthecapitaloItheECB,
subjecttoanydecisiontakenbytheGoverningCouncilpursuanttoArticle33.2.

32.6.TheclearingandsettlementoIthebalancesarisingIromtheallocationoI
monetaryincomeshallbecarriedoutbytheECBinaccordancewithguidelines
establishedbytheGoverningCouncil.

32.7.TheGoverningCouncilshalltakeallothermeasuresnecessaryIorthe
applicationoIthisArticle.

247


Article 33
Allocation of net profits and losses of the ECB


33.1.ThenetproIitoItheECBshallbetransIerredintheIollowingorder:

(a)anamounttobedeterminedbytheGoverningCouncil,whichmaynotexceed
20oIthenetproIit,shallbetransIerredtothegeneralreserveIundsubjecttoalimit
equalto100oIthecapital;

(b)theremainingnetproIitshallbedistributedtotheshareholdersoItheECBin
proportiontotheirpaid-upshares.

33.2.IntheeventoIalossincurredbytheECB,theshortIallmaybeoIIsetagainstthe
generalreserveIundoItheECBand,iInecessary,Iollowingadecisionbythe
GoverningCouncil,againstthemonetaryincomeoItherelevantIinancialyearin
proportionanduptotheamountsallocatedtothenationalcentralbanksinaccordance
withArticle32.5.


CHAPTER VII

GENERALPROVISIONS

Article 34
Legal acts

34.1.InaccordancewithArticle132oItheTreatyontheFunctioningoItheEuropean
Union,theECBshall:

makeregulationstotheextentnecessarytoimplementthetasksdeIinedinArticle
3.1,Iirstindent,Articles19.1,22or25.2andincaseswhichshallbelaiddowninthe
actsoItheCouncilreIerredtoinArticle41;

takedecisionsnecessaryIorcarryingoutthetasksentrustedtotheESCBunder
theseTreatiesandthisStatute;

makerecommendationsanddeliveropinions.

34.2.TheECBmaydecidetopublishitsdecisions,recommendationsandopinions.

34.3.WithinthelimitsandundertheconditionsadoptedbytheCouncilunderthe
procedurelaiddowninArticle41,theECBshallbeentitledtoimposeIinesor
periodicpenaltypaymentsonundertakingsIorIailuretocomplywithobligations
underitsregulationsanddecisions.

248

Article 35
Judicial control and related matters

35.1.TheactsoromissionsoItheECBshallbeopentorevieworinterpretationby
theCourtoIJusticeoItheEuropeanUnioninthecasesandundertheconditionslaid
downintheTreatyontheFunctioningoItheEuropeanUnion.TheECBmayinstitute
proceedingsinthecasesandundertheconditionslaiddownintheTreatyonthe
FunctioningoItheEuropeanUnion.

35.2.DisputesbetweentheECB,ontheonehand,anditscreditors,debtorsorany
otherperson,ontheother,shallbedecidedbythecompetentnationalcourts,save
wherejurisdictionhasbeenconIerredupontheCourtoIJusticeoItheEuropean
Union.

35.3.TheECBshallbesubjecttotheliabilityregimeprovidedIorinArticle340oI
theTreatyontheFunctioningoItheEuropeanUnion.Thenationalcentralbanksshall
beliableaccordingtotheirrespectivenationallaws.

35.4.TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictiontogive
judgmentpursuanttoanyarbitrationclausecontainedinacontractconcludedbyor
onbehalIoItheECB,whetherthatcontractbegovernedbypublicorprivatelaw.

35.5.AdecisionoItheECBtobringanactionbeIoretheCourtoIJusticeoIthe
EuropeanUnionshallbetakenbytheGoverningCouncil.

35.6.TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictionindisputes
concerningtheIulIilmentbyanationalcentralbankoIobligationsundertheTreaties
andthisStatute.IItheECBconsidersthatanationalcentralbankhasIailedtoIulIil
anobligationundertheTreatiesandthisStatute,itshalldeliverareasonedopinionon
thematteraItergivingthenationalcentralbankconcernedtheopportunitytosubmit
itsobservations.IIthenationalcentralbankconcerneddoesnotcomplywiththe
opinionwithintheperiodlaiddownbytheECB,thelattermaybringthematter
beIoretheCourtoIJusticeoItheEuropeanUnion.

Article 36
Staff

36.1.TheGoverningCouncil,onaproposalIromtheExecutiveBoard,shalllaydown
theconditionsoIemploymentoIthestaIIoItheECB.

36.2.TheCourtoIJusticeoItheEuropeanUnionshallhavejurisdictioninany
disputebetweentheECBanditsservantswithinthelimitsandundertheconditions
laiddownintheconditionsoIemployment.

249

Article 37

38.1.MembersoIthegoverningbodiesandthestaIIoItheECBandthenational
centralbanksshallberequired,evenaItertheirdutieshaveceased,nottodisclose
inIormationoIthekindcoveredbytheobligationoIproIessionalsecrecy.

38.2.PersonshavingaccesstodatacoveredbyUnionlegislationimposingan
obligationoIsecrecyshallbesubjecttosuchlegislation.

Article 38
Signatories

TheECBshallbelegallycommittedtothirdpartiesbythePresidentorbytwo
membersoItheExecutiveBoardorbythesignaturesoItwomembersoIthestaIIoI
theECBwhohavebeendulyauthorisedbythePresidenttosignonbehalIoIthe
ECB.


Article 39
Privileges and immunities

TheECBshallenjoyintheterritoriesoItheMemberStatessuchprivilegesand
immunitiesasarenecessaryIortheperIormanceoIitstasks,undertheconditionslaid
downintheProtocolontheprivilegesandimmunitiesoItheEuropeanUnion.



CHAPTER VIII

AMENDMENTOFTHESTATUTEANDCOMPLEMENTARYLEGISLATION

Article 40
Simplified amendment procedure

40.1.InaccordancewithArticle129(3)oItheTreatyontheFunctioningoIthe
EuropeanUnion,Articles5.1,5.2,5.3,17,18,19.1,22,23,24,26,32.2,32.3,32.4,
32.6,33.1(a)and36oIthisStatutemaybeamendedbytheEuropeanParliamentand
theCouncil,actinginaccordancewiththeordinarylegislativeprocedureeitherona
recommendationIromtheECBandaIterconsultingtheCommission,oronaproposal
IromtheCommissionandaIterconsultingtheECB.

40.2.Article10(2)maybeamendedbyadecisionoItheEuropeanCouncil,acting
unanimously,eitheronarecommendationIromtheEuropeanCentralBankandaIter
consultingtheEuropeanParliamentandtheCommission,oronarecommendation
250

IromtheCommissionandaIterconsultingtheEuropeanParliamentandtheEuropean
CentralBank.TheseamendmentsshallnotenterintoIorceuntiltheyareapprovedby
theMemberStatesinaccordancewiththeirrespectiveconstitutionalrequirements.

40.3.ArecommendationmadebytheECBunderthisArticleshallrequirea
unanimousdecisionbytheGoverningCouncil.


Article 41
Complementary legislation

InaccordancewithArticle129(4)oItheTreatyontheFunctioningoItheEuropean
Union,theCouncil,eitheronaproposalIromtheCommissionandaIterconsulting
theEuropeanParliamentandtheECBoronarecommendationIromtheECBand
aIterconsultingtheEuropeanParliamentandtheCommission,shalladoptthe
provisionsreIerredtoinArticles4,5.4,19.2,20,28.1,29.2,30.4and34.3oIthis
Statute.

CHAPTER IX

TRANSITIONALANDOTHERPROVISIONSFORTHEESCB


Article 42
General provisions

42.1.AderogationasreIerredtoinArticle139(1)oItheTreatyontheFunctioningoI
theEuropeanUnionshallentailthattheIollowingArticlesoIthisStatuteshallnot
conIeranyrightsorimposeanyobligationsontheMemberStateconcerned:3,6,9.2,
12.1,14.3,16,18,19,20,22,23,26.2,27,30,31,32,33,34,and49.

42.2.ThecentralbanksoIMemberStateswithaderogationasspeciIiedinArticle
139(1)oItheTreatyontheFunctioningoItheEuropeanUnionshallretaintheir
powersintheIieldoImonetarypolicyaccordingtonationallaw.

42.3.InaccordancewithArticle139(4)oItheTreatyontheFunctioningoIthe
EuropeanUnion,MemberStatesshallbereadasMemberStateswhosecurrencyis
theeurointheIollowingArticlesoIthisStatute:3,11.2and19.

42.4.NationalcentralbanksshallbereadascentralbanksoIMemberStateswhose
currencyistheeurointheIollowingArticlesoIthisStatute:9.2,10.2,10.3,12.1,16,
17,18,22,23,27,30,31,32,33.2and49.

42.5.ShareholdersshallbereadascentralbanksoIMemberStateswithouta
derogationwhosecurrencyistheeuroinArticles10.3and33.1.

251

42.6.SubscribedcapitaloItheECBshallbereadascapitaloItheECBsubscribed
bythecentralbanksoIMemberStateswhosecurrencyistheeuroinArticles10.3
and30.2.


Article 43
Transitional tasks of the ECB

TheECBshalltakeovertheIormertasksoItheEMIreIerredtoinArticle141(2)oI
theTreatyontheFunctioningoItheEuropeanUnionwhich,becauseoIthe
derogationsoIoneormoreMemberStates,stillhavetobeperIormedaIterthe
introductionoItheeuro.
TheECBshallgiveadviceinthepreparationsIortheabrogationoIthederogations
speciIiedinArticle140oItheTreatyontheFunctioningoItheEuropeanUnion.

Article 44
TheGeneralCounciloItheECB

44.1.WithoutprejudicetoArticle129(1)oItheTreatyontheFunctioningoIthe
EuropeanUnion,theGeneralCouncilshallbeconstitutedasathirddecision-making
bodyoItheECB.

44.2.TheGeneralCouncilshallcomprisethePresidentandVice-PresidentoIthe
ECBandtheGovernorsoIthenationalcentralbanks.TheothermembersoIthe
ExecutiveBoardmayparticipate,withouthavingtherighttovote,inmeetingsoIthe
GeneralCouncil.

44.3.TheresponsibilitiesoItheGeneralCouncilarelistedinIullinArticle46oIthis
Statute.

Article 45
RulesoIProcedureoItheGeneralCouncil

45.1.ThePresidentor,inhisabsence,theVice-PresidentoItheECBshallchairthe
GeneralCounciloItheECB.

45.2.ThePresidentoItheCouncilandaMemberoItheCommissionmayparticipate,
withouthavingtherighttovote,inmeetingsoItheGeneralCouncil.

45.3.ThePresidentshallpreparethemeetingsoItheGeneralCouncil.

45.4.BywayoIderogationIromArticle12.3,theGeneralCouncilshalladoptits
RulesoIProcedure.

45.5.TheSecretariatoItheGeneralCouncilshallbeprovidedbytheECB.
252

Article 46
Responsibilities of the General Council

46.1.TheGeneralCouncilshall:

perIormthetasksreIerredtoinArticle43;
contributetotheadvisoryIunctionsreIerredtoinArticles4and25.1.

46.2.TheGeneralCouncilshallcontributeto:

thecollectionoIstatisticalinIormationasreIerredtoinArticle5;
thereportingactivitiesoItheECBasreIerredtoinArticle15;
theestablishmentoIthenecessaryrulesIortheapplicationoIArticle26asreIerred
toinArticle26.4;
thetakingoIallothermeasuresnecessaryIortheapplicationoIArticle29as
reIerredtoinArticle29.4;
thelayingdownoItheconditionsoIemploymentoIthestaIIoItheECBas
reIerredtoinArticle36.

46.3.TheGeneralCouncilshallcontributetothenecessarypreparationsIor
irrevocablyIixingtheexchangeratesoIthecurrenciesoIMemberStateswitha
derogationagainsttheeuroasreIerredtoinArticle140(3)oItheTreatyonthe
FunctioningoItheEuropeanUnion.

46.4.TheGeneralCouncilshallbeinIormedbythePresidentoItheECBoI
decisionsoItheGoverningCouncil.


Article 47
Transitional provisions for the capital of the ECB

InaccordancewithArticle29.1eachnationalcentralbankshallbeassigneda
weightinginthekeyIorsubscriptionoItheECBscapital.BywayoIderogationIrom
Article28.3,centralbanksoIMemberStateswithaderogationshallnotpayuptheir
subscribedcapitalunlesstheGeneralCouncil,actingbyamajorityrepresentingat
leasttwothirdsoIthesubscribedcapitaloItheECBandatleasthalIoIthe
shareholders,decidesthataminimalpercentagehastobepaidupasacontributionto
theoperationalcostsoItheECB.


Article 48
Deferred payment of capital, reserves and provisions of the ECB

48.1.ThecentralbankoIaMemberStatewhosederogationhasbeenabrogatedshall
payupitssubscribedshareoIthecapitaloItheECBtothesameextentasthecentral
253

banksoIotherMemberStateswithoutaderogation,andshalltransIertotheECB
IoreignreserveassetsinaccordancewithArticle30.1.ThesumtobetransIerredshall
bedeterminedbymultiplyingtheeurovalueatcurrentexchangeratesoItheIoreign
reserveassetswhichhavealreadybeentransIerredtotheECBinaccordancewith
Article30.1,bytheratiobetweenthenumberoIsharessubscribedbythenational
centralbankconcernedandthenumberoIsharesalreadypaidupbytheothernational
centralbanks.

48.2.InadditiontothepaymenttobemadeinaccordancewithArticle48.1,the
centralbankconcernedshallcontributetothereservesoItheECB,tothoseprovisions
equivalenttoreserves,andtotheamountstilltobeappropriatedtothereservesand
provisionscorrespondingtothebalanceoItheproIitandlossaccountasat31
DecemberoItheyearpriortotheabrogationoIthederogation.Thesumtobe
contributedshallbedeterminedbymultiplyingtheamountoIthereserves,asdeIined
aboveandasstatedintheapprovedbalancesheetoItheECB,bytheratiobetween
thenumberoIsharessubscribedbythecentralbankconcernedandthenumberoI
sharesalreadypaidupbytheothercentralbanks.

48.3.UpononeormorecountriesbecomingMemberStatesandtheirrespective
nationalcentralbanksbecomingpartoItheESCB,thesubscribedcapitaloItheECB
andthelimitontheamountoIIoreignreserveassetsthatmaybetransIerredtothe
ECBshallbeautomaticallyincreased.Theincreaseshallbedeterminedby
multiplyingtherespectiveamountsthenprevailingbytheratio,withintheexpanded
capitalkey,betweentheweightingoItheenteringnationalcentralbanksconcerned
andtheweightingoIthenationalcentralbanksalreadymembersoItheESCB.Each
nationalcentralbanksweightinginthecapitalkeyshallbecalculatedbyanalogy
withArticle29.1andincompliancewithArticle29.2.ThereIerenceperiodstobe
usedIorthestatisticaldatashallbeidenticaltothoseappliedIorthelatest
quinquennialadjustmentoItheweightingsunderArticle29.3.

Article 49
Exchange of banknotes in Union currencies

FollowingtheirrevocableIixingoIexchangeratesinaccordancewithArticle139(3)
oItheTreatyontheFunctioningoItheEuropeanUnion,theGoverningCouncilshall
takethenecessarymeasurestoensurethatbanknotesdenominatedincurrencieswith
irrevocablyIixedexchangeratesareexchangedbythenationalcentralbanksattheir
respectiveparvalues.

Article 50
Applicability of the transitional provisions

IIandaslongasthereareMemberStateswithaderogationArticles42to47shallbe
applicable.
254

PROTOCOL

ONTHESTATUTEOFTHEEUROPEANINVESTMENTBANK

THEHIGHCONTRACTINGPARTIES

DESIRINGtolaydowntheStatuteoItheEuropeanInvestmentBankprovidedIorin
Article308oItheTreatyontheFunctioningoItheEuropeanUnion,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtotheTreaty
onEuropeanUnionandtotheTreatyontheFunctioningoItheEuropeanUnion:

Article 1

The European Investment Bank established by Article 308 oI the Treaty on the
Functioning oI the European Union (hereinaIter called the Bank) is hereby
constituted;itshallperIormitsIunctionsandcarryonitsactivitiesinaccordancewith
theprovisionsoItheTreatiesandoIthisStatute.


Article 2

The task oI the Bank shall be that deIined in Article 309 oI the Treaty on the
FunctioningoItheEuropeanUnion.

Article 3


In accordance with Article 308 oI the Treaty on the Functioning oI the European
Union,theBanksmembersshallbetheMemberStates.


Article 4


1.ThecapitaloItheBankshallbeEUR164808169000,subscribedbytheMember
StatesasIollows:

Germany 26649532500
France 26649532500
Italy 26649532500
UnitedKingdom 26649532500
Spain 15989719500
Belgium 7387065000
Netherlands 7387065000
255

Sweden 4900585500
Denmark 3740283000
Austria 3666973500
Poland 3411263500
Finland 2106816000
Greece 2003725500
Portugal 1291287000
CzechRepublic 1258785500
Hungary 1190868500
Ireland 935070000
Romania 863514500
Slovakia 428490500
Slovenia 397815000
Bulgaria 290917500
Lithuania 249617500
Luxembourg 187015500
Cyprus 183382000
Latvia 152335000
Estonia 117640000
Malta 69804000

TheMemberStatesshallbeliableonlyuptotheamountoItheirshareoIthecapital
subscribedandnotpaidup.

2. The admission oI a new member shall entail an increase in the subscribed capital
correspondingtothecapitalbroughtinbythenewmember.

3. The Board oI Governors may, acting unanimously, decide to increase the

subscribedcapital.

4.TheshareoIamemberinthesubscribedcapitalmaynotbetransIerred,pledgedor
attached.


Article 5

1.ThesubscribedcapitalshallbepaidinbyMemberStatestotheextentoI5on
averageoItheamountslaiddowninArticle4(1).

2.IntheeventoIanincreaseinthesubscribedcapital,theBoardoIGovernors,acting
unanimously,shallIixthepercentagetobepaidupandthearrangementsIorpayment.
Cashpaymentsshallbemadeexclusivelyineuro.

3. The Board oI Directors may require payment oI the balance oI the subscribed
capital,tosuchextentasmayberequiredIortheBanktomeetitsobligations.

Each Member State shall make this payment in proportion to its share oI the
subscribedcapital.

256


Article 6

The Bank shall be directed and managed by a Board oI Governors, a Board oI

DirectorsandaManagementCommittee.


Article 7

1. The Board oI Governors shall consist oI the ministers designated by the Member
States.

2. The Board oI Governors shall lay down general directives Ior the credit policy oI
theBank,inaccordancewiththeUnionsobjectives.

TheBoardoIGovernorsshallensurethatthesedirectivesareimplemented.

3.TheBoardoIGovernorsshallinaddition:

a) decide whether to increase the subscribed capital in accordance with Article

4(3)andArticle5(2);

b) Ior the purposes oI Article 9(1), determine the principles applicable to

IinancingoperationsundertakenwithintheIrameworkoItheBankstask;

c) exercise the powers provided in Articles 9 and 11 in respect oI the

appointment and the compulsory retirement oI the members oI the Board oI
Directors and oI the Management Committee, and those powers provided in
thesecondsubparagraphoIArticle11(1);

d) take decisions in respect oI the granting oI Iinance Ior investment operations

to be carried out, in whole or in part, outside the territories oI the Member
StatesinaccordancewithArticle16(1);

e) approvetheannualreportoItheBoardoIDirectors;

I) approvetheannualbalancesheetandproIitandlossaccount;

g) exercisetheotherpowersandIunctionsconIerredbythisStatute,

h) approvetherulesoIprocedureoItheBank.

4.WithintheIrameworkoItheTreatiesandthisStatute,theBoardoIGovernorsshall
becompetenttotake,actingunanimously,anydecisionsconcerningthesuspensionoI
theoperationsoItheBankand,shouldtheeventarise,itsliquidation.


257

Article 8

SaveasotherwiseprovidedinthisStatute,decisionsoItheBoardoIGovernorsshall
be taken by a majority oI its members. This majority must represent at least 50 oI
thesubscribedcapital.

AqualiIiedmajorityshallrequireeighteenvotesinIavourand68oIthesubscribed
capital.

Abstentions by members present in person or represented shall not prevent the
adoptionoIdecisionsrequiringunanimity.

Article 9

1.TheBoardoIDirectorsshalltakedecisionsinrespectoIgrantingIinance,in
particularintheIormoIloansandguarantees,andraisingloans;itshallIixthe
interestratesonloansgrantedandthecommissionandothercharges.Itmay,onthe
basisoIadecisiontakenbyaqualiIiedmajority,delegatesomeoIitsIunctionstothe
ManagementCommittee.ItshalldeterminethetermsandconditionsIorsuch
delegationandshallsuperviseitsexecution.

TheBoardoIDirectorsshallseethattheBankisproperlyrun;itshallensurethatthe
BankismanagedinaccordancewiththeprovisionsoItheTreatiesandoIthisStatute
andwiththegeneraldirectiveslaiddownbytheBoardoIGovernors.

At the end oI the Iinancial year the Board oI Directors shall submit a report to the
BoardoIGovernorsandshallpublishitwhenapproved.

2. The Board oI Directors shall consist oI twenty-eight directors and eighteen

alternatedirectors.

The directors shall be appointed by the Board oI Governors Ior Iive years, one
nominatedbyeachMemberState,andonenominatedbytheCommission.

ThealternatedirectorsshallbeappointedbytheBoardoIGovernorsIorIiveyearsas
shownbelow:

- twoalternatesnominatedbytheFederalRepublicoIGermany,
- twoalternatesnominatedbytheFrenchRepublic,
- twoalternatesnominatedbytheItalianRepublic,
- two alternates nominated by the United Kingdom oI Great Britain and
NorthernIreland,
- onealternatenominatedbycommonaccordoItheKingdomoISpainandthe
PortugueseRepublic,
- one alternate nominated by common accord oI the Kingdom oI Belgium, the
GrandDuchyoILuxembourgandtheKingdomoItheNetherlands,
258

- twoalternatesnominatedbycommonaccordoItheKingdomoIDenmark,the
HellenicRepublic,IrelandandRomania,
- two alternates nominated by common accord oI the Republic oI Estonia, the
Republic oI Latvia, the Republic oI Lithuania, the Republic oI Austria, the
RepublicoIFinlandandtheKingdomoISweden,
- threealternatesnominatedbycommonaccordoItheRepublicoIBulgaria,the
Czech Republic, the Republic oI Cyprus, the Republic oI Hungary, the
Republic oI Malta, the Republic oI Poland, the Republic oI Slovenia and the
SlovakRepublic,
- onealternatenominatedbytheCommission.

The Board oI Directors shall co-opt six non-voting experts: three as members and
threeasalternates.

TheappointmentsoIthedirectorsandthealternatesshallberenewable.

TheRulesoIProcedureshalllaydownarrangementsIorparticipatinginthemeetings
oI the Board oI Directors and the provisions applicable to alternates and co-opted
experts.

The President oI the Management Committee or, in his absence, one oI the Vice-
Presidents,shallpresideovermeetingsoItheBoardoIDirectorsbutshallnotvote.

MembersoItheBoardoIDirectorsshallbechosenIrompersonswhoseindependence
andcompetencearebeyonddoubt;theyshallberesponsibleonlytotheBank.

3. A director may be compulsorily retired by the Board oI Governors only iI he no

longer IulIils the conditions required Ior the perIormance oI his duties; the Board
mustactbyaqualiIiedmajority.

IItheannualreportisnotapproved,theBoardoIDirectorsshallresign.

4. Any vacancy arising as a result oI death, voluntary resignation, compulsory

retirementorcollectiveresignationshallbeIilledinaccordancewithparagraph2.A
member shall be replaced Ior the remainder oI his term oI oIIice, save where the
entireBoardoIDirectorsisbeingreplaced.

5.TheBoardoIGovernorsshalldeterminetheremunerationoImembersoItheBoard
oIDirectors.TheBoardoIGovernorsshalllaydownwhatactivitiesareincompatible
withthedutiesoIadirectororanalternate.

Article 10

1. Each director shall have one vote on theBoard oI Directors. He may delegate his
voteinallcases,accordingtoprocedurestobelaiddownintheRulesoIProcedureoI
theBank.

259

2.SaveasotherwiseprovidedinthisStatute,decisionsoItheBoardoIDirectorsshall
betakenbyatleastonethirdoIthemembersentitledtovoterepresentingatleastIiIty
percentoIthesubscribedcapital.AqualiIiedmajorityshallrequireeighteenvotesin
Iavourandsixty-eightpercentoIthesubscribedcapital.TherulesoIprocedureoIthe
BankshalllaydownthequorumrequiredIorthedecisionsoItheBoardoIDirectors
tobevalid.

Article 11

1.TheManagementCommitteeshallconsistoIaPresidentandeightVice-Presidents
appointedIoraperiodoIsixyearsbytheBoardoIGovernorsonaproposalIromthe
BoardoIDirectors.Theirappointmentsshallberenewable.

The Board oI Governors, acting unanimously, may vary the number oI members on
theManagementCommittee.

2. On a proposal Irom the Board oI Directors adopted by a qualiIied majority, the

BoardoIGovernorsmay,actinginitsturnbyaqualiIiedmajority,compulsorilyretire
amemberoItheManagementCommittee.

3. The Management Committee shall be responsible Ior the current business oI the
Bank, under the authority oI the President and the supervision oI the Board oI
Directors.

ItshallpreparethedecisionsoItheBoardoIDirectors,inparticulardecisionsonthe
raising oI loans and the granting oI Iinance, in particular in the Iorm oI loans and
guarantees;itshallensurethatthesedecisionsareimplemented.

4. The Management Committee shall act by a majority when delivering opinions on

proposals Ior raising loans or granting oI Iinance, in particular in the Iorm oI loans
andguarantees.

5. The Board oI Governors shall determine the remuneration oI members oI the

Management Committee and shall lay down what activities are incompatible with
theirduties.

6. The President or, iI he is prevented, a Vice-President shall represent the Bank in

judicialandothermatters.

7. The staII oI the Bank shall be under the authority oI the President. They shall be
engaged and discharged by him. In the selection oI staII, account shall be taken not
only oI personal ability and qualiIications but also oI an equitable representation oI
nationals oI Member States. The Rules oI Procedure shall determine which organ is
competenttoadopttheprovisionsapplicabletostaII.

8.TheManagementCommitteeandthestaIIoItheBankshallberesponsibleonlyto
theBankandshallbecompletelyindependentintheperIormanceoItheirduties.

260

Article 12

1. A Committee consisting oI six members, appointed on the grounds oI their

competence by the Board oI Governors, shall veriIy that the activities oI the Bank
conIorm to best banking practice and shall be responsible Ior the auditing oI its
accounts.

2.TheCommitteereIerredtoinparagraph1shallannuallyascertainthatthe
operationsoItheBankhavebeenconductedanditsbookskeptinapropermanner.
Tothisend,itshallveriIythattheBanksoperationshavebeencarriedoutin
compliancewiththeIormalitiesandprocedureslaiddownbythisStatuteandthe
RulesoIProcedure.

3. The Committee reIerred to in paragraph 1 shall conIirm that the Iinancial

statements, as well as any other Iinancial inIormation contained in the annual
accountsdrawnupbytheBoardoIDirectors,giveatrueandIairviewoItheIinancial
position oI the Bank in respect oI its assets and liabilities, and oI the results oI its
operationsanditscashIlowsIortheIinancialyearunderreview.

4.TheRulesoIProcedureshallspeciIythequaliIicationsrequiredoIthemembersoI
theCommitteeandlaydownthetermsandconditionsIortheCommitteesactivity.

Article 13

TheBankshalldealwitheachMemberStatethroughtheauthoritydesignatedbythat
State. In the conduct oI Iinancial operations the Bank shall have recourse to the
nationalcentralbankoItheMemberStateconcernedortootherIinancialinstitutions
approvedbythatState.

Article 14

1. The Bank shall co-operate with all international organisations active in Iields
similartoitsown.

2. The Bank shall seek to establish all appropriate contacts in the interests oI
cooperation with banking and Iinancial institutions in the countries to which its
operationsextend.

Article 15

AttherequestoIaMemberStateoroItheCommission,oronitsowninitiative,the
Board oI Governors shall, in accordance with the same provisions as governed their
adoption,interpretorsupplementthedirectiveslaiddownbyitunderArticle7oIthis
Statute.
261

Article 16

1. Within the Iramework oI the task set out in Article 309 oI the Treaty on the
FunctioningoItheEuropeanUnion,theBankshallgrantIinance,inparticularinthe
IormoIloansandguaranteestoitsmembersortoprivateorpublicundertakingsIor
investments to be carried out in the territories oI Member States, to the extent that
IundsarenotavailableIromothersourcesonreasonableterms.

However,bydecisionoItheBoardoIGovernors,actingbyaqualiIiedmajorityona
proposalIromtheBoardoIDirectors,theBankmaygrantIinancingIorinvestmentto
becarriedout,inwholeorinpart,outsidetheterritoriesoIMemberStates.

2. As Iar as possible, loans shall be granted only on condition that other sources oI
Iinancearealsoused.

3.WhengrantingaloantoanundertakingortoabodyotherthanaMemberState,the
BankshallmaketheloanconditionaleitheronaguaranteeIromtheMemberStatein
whoseterritorytheinvestmentwillbecarriedoutoronotheradequateguarantees,or
ontheIinancialstrengthoIthedebtor.

Furthermore,inaccordancewiththeprinciplesestablishedbytheBoardoIGovernors
pursuanttoArticle7(3)(b),andwheretheimplementationoIprojectsprovidedIorin
Article 309 oI the Treaty on the Functioning oI the European Union so requires, the
Board oI Directors shall, acting by a qualiIied majority, lay down the terms and
conditions oI any Iinancing operation presenting a speciIic risk proIile and thus
consideredtobeaspecialactivity.

4. The Bank may guarantee loans contracted by public or private undertakings or

otherbodiesIorthepurposeoIcarryingoutprojectsprovidedIorinArticle309oIthe
TreatyontheFunctioningoItheEuropeanUnion.

5.TheaggregateamountoutstandingatanytimeoIloansandguaranteesgrantedby
the Bank shall not exceed 250 oI its subscribed capital, reserves, non-allocated
provisions and proIit and loss account surplus. The latter aggregate amount shall be
reducedbyanamountequaltotheamountsubscribed(whetherornotpaidin)Iorany
equityparticipationoItheBank.

TheamountoItheBanksdisbursedequityparticipationsshallnotexceedatanytime
an amount corresponding to the total oI its paid-in subscribed capital, reserves, non-
allocatedprovisionsandproIitandlossaccountsurplus.

By way oI exception, the special activities oI the Bank, as decided by the Board oI
Governors and the Board oI Directors in accordance with paragraph 3, will have a
speciIicallocationoIreserve.

ThisparagraphshallalsoapplytotheconsolidatedaccountsoItheBank.

262

6. The Bank shall protect itselI against exchange risks by including in contracts Ior
loansandguaranteessuchclausesasitconsidersappropriate.


Article 17

1.InterestratesonloanstobegrantedbytheBankandcommissionandothercharges
shallbeadjustedtoconditionsprevailingonthecapitalmarketandshallbecalculated
insuchawaythattheincomethereIromshallenabletheBanktomeetitsobligations,
to cover its expenses and risks and to build up a reserve Iund as provided Ior in
Article22.

2. The Bank shall not grant any reduction in interest rates. Where a reduction in the
interestrateappearsdesirableinviewoIthenatureoItheinvestmenttobeIinanced,
the Member State concerned or some other agency may grant aid towards the
paymentoIinteresttotheextentthatthisiscompatiblewithArticle107oItheTreaty
ontheFunctioningoItheEuropeanUnion.

Article 18

InitsIinancingoperations,theBankshallobservetheIollowingprinciples:

1.ItshallensurethatitsIundsareemployedasrationallyaspossibleintheinterests
oItheUnion.

Itmaygrantloansorguaranteesonly:

a) where, in the case oI investments by undertakings in the production sector,

interest and amortisation payments are covered out oI operating proIits or, in
thecaseoIotherinvestments,eitherbyacommitmententeredintobytheState
inwhichtheinvestmentismadeorbysomeothermeans;and

b) wheretheexecutionoItheinvestmentcontributestoanincreaseineconomic
productivityingeneralandpromotestheattainmentoItheinternalmarket.

2.Itshallneitheracquireanyinterestinanundertakingnorassumeanyresponsibility
in its management unless this is required to saIeguard the rights oI the Bank in
ensuringrecoveryoIIundslent.

However, in accordance with the principles determined by the Board oI Governors

pursuanttoArticle7(3)(b),andwheretheimplementationoIoperationsprovidedIor
inArticle309oItheTreatyontheFunctioningoItheEuropeanUnionsorequires,the
Board oI Directors shall, acting by a qualiIied majority, lay down the terms and
conditionsIortakinganequityparticipationinacommercialundertaking,normallyas
a complement to a loan or a guarantee, insoIar as this is required to Iinance an
investmentorprogramme.

263

3.ItmaydisposeoIitsclaimsonthecapitalmarketandmay,tothisend,requireits
debtorstoissuebondsorothersecurities.

4. Neither the Bank nor the Member States shall impose conditions requiring Iunds
lentbytheBanktobespentwithinaspeciIiedMemberState.

5. The Bank may make its loans conditional on international invitations to tender
beingarranged.

6. The Bank shall not Iinance, in whole or in part, any investment opposed by the
MemberStateinwhoseterritoryitistobecarriedout.

7.Asacomplementtoitslendingactivity,theBankmayprovidetechnicalassistance
services in accordance with the terms and conditions laid down by the Board oI
Governors,actingbyaqualiIiedmajority,andincompliancewiththisStatute.

Article 19

1. Any undertaking or public or private entity may apply directly to the Bank Ior
Iinancing.ApplicationstotheBankmayalsobemadeeitherthroughtheCommission
orthroughtheMemberStateonwhoseterritorytheinvestmentwillbecarriedout.

2.ApplicationsmadethroughtheCommissionshallbesubmittedIoranopiniontothe
Member State in whose territory the investment will be carried out. Applications
made through a Member State shall be submitted to the Commission Ior an opinion.
Applications made direct by an undertaking shall be submitted to the Member State
concernedandtotheCommission.

TheMemberStateconcernedandtheCommissionshalldelivertheiropinionswithin
twomonths.IInoreplyisreceivedwithinthisperiod,theBankmayassumethatthere
isnoobjectiontoinvestmentinquestion.

3. The Board oI Directors shall rule on Iinancing operations submitted to it by the

ManagementCommittee.

4.TheManagementCommitteeshallexaminewhetherIinancingoperationssubmitted
toitcomplywiththeprovisionsoIthisStatute,inparticularwithArticles16and18.
Where the Management Committee is in Iavour oI the Iinancing operation, it shall
submit the corresponding proposal to the Board oI Directors; the Committee may
make its Iavourable opinion subject to such conditions, as it considers essential.
WheretheManagementCommitteeisagainstgrantingtheIinance,itshallsubmitthe
relevantdocumentstogetherwithitsopiniontotheBoardoIDirectors.

5.WheretheManagementCommitteedeliversanunIavourableopinion,theBoardoI
DirectorsmaynotgranttheIinanceconcernedunlessitsdecisionisunanimous.

264

6. Where the Commission delivers an unIavourable opinion, the Board oI Directors
may not grant the Iinance concerned unless its decision is unanimous, the director
nominatedbytheCommissionabstaining.

7. Where both the Management Committee and the Commission deliver an

unIavourableopinion,theBoardoIDirectorsmaynotgranttheIinance.

8.IntheeventthataIinancingoperationrelatingtoanapprovedinvestmenthastobe
restructured in order to saIeguard the Banks rights and interests, the Management
Committee shall take without delay the emergency measures which it deems
necessary,subjecttoimmediatereportingthereontotheBoardoIDirectors.

Article 20

1. The Bank shall borrow on the capital markets the Iunds necessary Ior the
perIormanceoIitstasks.

2.TheBankmayborrowonthecapitalmarketsoItheMemberStatesinaccordance
withthelegalprovisionsapplyingtothosemarkets.

ThecompetentauthoritiesoIaMemberStatewithaderogationwithinthemeaningoI
Article 139(1) oI the Treaty on the Functioning oI the European Union may oppose
this only iI there is reason to Iear serious disturbances on the capital market oI that
State.

Article 21

1. The Bank may employ any available Iunds which it does not immediately require
tomeetitsobligationsintheIollowingways:

a) itmayinvestonthemoneymarkets;

b) itmay,subjecttotheprovisionsoIArticle18(2),buyandsellsecurities;

c) itmaycarryoutanyotherIinancialoperationlinkedwithitsobjectives.

2.WithoutprejudicetotheprovisionsoIArticle23,theBankshallnot,inmanaging
itsinvestments,engageinanycurrencyarbitragenotdirectlyrequiredtocarryoutits
lending operations or IulIil commitments arising out oI loans raised or guarantees
grantedbyit.

3. The Bank shall, in the Iields covered by this Article, act in agreement with the
competent authorities or with the national central bank oI the Member State
concerned.

265

Article 22

1.AreserveIundoIupto10oIthesubscribedcapitalshallbebuiltup
progressively.IIthestateoItheliabilitiesoItheBankshouldsojustiIy,theBoardoI
Directorsmaydecidetosetasideadditionalreserves.Untilsuchtimeasthereserve
IundhasbeenIullybuiltup,itshallbeIedby:

a) interestreceivedonloansgrantedbytheBankoutoIsumstobepaidupbythe
MemberStatespursuanttoArticle5;

b) interest received on loans granted by the Bank out oI Iunds derived Irom
repaymentoItheloansreIerredtoin(a);

totheextentthatthisincomeisnotrequiredtomeettheobligationsoItheBankorto
coveritsexpenses.

2.TheresourcesoIthereserveIundshallbesoinvestedastobeavailableatanytime
tomeetthepurposeoItheIund.

Article 23

1. The Bank shall at all times be entitled to transIer its assets in the currency oI a
MemberStatewhosecurrencyisnottheeuroinordertocarryoutIinancialoperations
correspondingtothetasksetoutinArticle309oItheTreatyontheFunctioningoIthe
EuropeanUnion,takingintoaccounttheprovisionsoIArticle21oIthisStatute.The
Bank shall, as Iar as possible, avoid making such transIers iI it has cash or liquid
assetsinthecurrencyrequired.

2. The Bank may not convert its assets in the currency oI a Member State whose
currencyisnottheeurointothecurrencyoIathirdcountrywithouttheagreementoI
theMemberStateconcerned.

3. The Bank may Ireely dispose oI that part oI its capital which is paid up oI any
currencyborrowedonmarketsoutsidetheUnion.

4. The Member States undertake to make available to the debtors oI the Bank the
currencyneededtorepaythecapitalandpaytheinterestonloansorcommissionon
guaranteesgrantedbytheBankIorinvestmentstobecarriedoutintheirterritory.


Article 24

II a Member State Iails to meet the obligations oI membership arising Irom this
Statute, in particular the obligation to pay its share oI the subscribed capital or to
serviceitsborrowings,thegrantingoIloansorguaranteestothatMemberStateorits
266

nationals may be suspended by a decision oI the Board oI Governors, acting by a
qualiIiedmajority.

SuchdecisionshallnotreleaseeithertheStateoritsnationalsIromtheirobligations
towardstheBank.

Article 25

1. II the Board oI Governors decides to suspend the operations oI the Bank, all its
activities shall cease Iorthwith, except those required to ensure the due realisation,
protectionandpreservationoIitsassetsandthesettlementoIitsliabilities.

2.IntheeventoIliquidation,theBoardoIGovernorsshallappointtheliquidatorsand
givetheminstructionsIorcarryingouttheliquidation.ItshallensurethattherightsoI
themembersoIstaIIaresaIeguarded.

Article 26

1. In each oI the Member States, the Bank shall enjoy the most extensive legal
capacity accorded to legal persons under their laws; it may, in particular, acquire or
disposeoImovableorimmovablepropertyandmaybeapartytolegalproceedings.

2. The property oI the Bank shall be exempt Irom all Iorms oI requisition or
expropriation.

Article 27

Disputes between the Bank on the one hand, and its creditors, debtors or any other
person on the other, shall be decided by the competent national courts, save where
jurisdiction has been conIerred on the Court oI Justice oI the European Union. The
BankmayprovideIorarbitrationinanycontract.

TheBankshallhaveanaddressIorserviceineachMemberState.Itmay,however,in
anycontract,speciIyaparticularaddressIorservice.

ThepropertyandassetsoItheBankshallnotbeliabletoattachmentortoseizureby
wayoIexecutionexceptbydecisionoIacourt.

Article 28

1.TheBoardoIGovernorsmay,actingunanimously,decidetoestablishsubsidiaries
orotherentities,whichshallhavelegalpersonalityandIinancialautonomy.
267

2. The Board oI Governors shall establish the Statutes oI the bodies reIerred to in
paragraph1.TheStatutesshalldeIine,inparticular,theirobjectives,structure,capital,
membership,thelocationoItheirseat,theirIinancialresources,meansoIintervention
andauditingarrangements,aswellastheirrelationshipwiththeorgansoItheBank.

3.TheBankshallbeentitledtoparticipateinthemanagementoIthesebodiesand
contributetotheirsubscribedcapitaluptotheamountdeterminedbytheBoardoI
Governors,actingunanimously.

4.TheProtocolontheprivilegesandimmunitiesoItheEuropeanUnionshallapplyto
thebodiesreIerredtoinparagraph1insoIarastheyareincorporatedunderthelawoI
theUnion,tothemembersoItheirorgansintheperIormanceoItheirdutiesassuch
and to their staII, under the same terms and conditions as those applicable to the
Bank.

Thosedividends,capitalgainsorotherIormsoIrevenuestemmingIromsuchbodies
towhichthemembers,otherthantheEuropeanUnionandtheBank,areentitled,shall
howeverremainsubjecttotheIiscalprovisionsoItheapplicablelegislation.

6. The Board oI Governors may, acting unanimously, decide to admit the staII oI
bodies incorporated under the Union law to joint schemes with the Bank, in
compliancewiththerespectiveinternalprocedures.
268

PROTOCOL

ONTHELOCATIONOFTHESEATSOFTHEINSTITUTIONSANDOF
CERTAINBODIES,OFFICES,AGENCIESANDDEPARTMENTSOFTHE
EUROPEANUNION

THEREPRESENTATIVESOFTHEGOVERNMENTSOFTHEMEMBER
STATES,

HAVINGREGARDtoArticle341oItheTreatyontheFunctioningoItheEuropean
UnionandArticle189oItheTreatyestablishingtheEuropeanAtomicEnergy
Community,

RECALLINGANDCONFIRMINGtheDecisionoI8April1965,andwithout
prejudicetothedecisionsconcerningtheseatoIIutureinstitutions,bodies,oIIices,
agenciesanddepartments,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union,andtotheTreatyestablishingtheEuropeanAtomicEnergyCommunity;

Sole Article

(a)TheEuropeanParliamentshallhaveitsseatinStrasbourgwherethe12periodsoI
monthlyplenarysessions,includingthebudgetsession,shallbeheld.TheperiodsoI
additionalplenarysessionsshallbeheldinBrussels.ThecommitteesoItheEuropean
ParliamentshallmeetinBrussels.TheGeneralSecretariatoItheEuropeanParliament
anditsdepartmentsshallremaininLuxembourg.

(b)TheCouncilshallhaveitsseatinBrussels.DuringthemonthsoIApril,Juneand
October,theCouncilshallholditsmeetingsinLuxembourg.

(c)TheCommissionshallhaveitsseatinBrussels.ThedepartmentslistedinArticles
7,8and9oItheDecisionoI8April1965shallbeestablishedinLuxembourg.

(d)TheCourtoIJusticeoItheEuropeanUnionshallhaveitsseatinLuxembourg.

(e)TheCourtoIAuditorsshallhaveitsseatinLuxembourg.

(I)TheEconomicandSocialCommitteeshallhaveitsseatinBrussels.

(g)TheCommitteeoItheRegionsshallhaveitsseatinBrussels.

(h)TheEuropeanInvestmentBankshallhaveitsseatinLuxembourg.

(i)TheEuropeanCentralBankshallhaveitsseatinFrankIurt.

269

(j)TheEuropeanPoliceOIIice(Europol)shallhaveitsseatinTheHague.

270

PROTOCOL

ONTHEPRIVILEGESANDIMMUNITIESOFTHEEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,

CONSIDERINGthat,inaccordancewithArticle343oItheTreatyontheFunctioning
oItheEuropeanUnionandArticle191oItheTreatyestablishingtheEuropean
AtomicEnergyCommunity(EAEC),theEuropeanUnionandtheEAECshall
enjoyintheterritoriesoItheMemberStatessuchprivilegesandimmunitiesasare
necessaryIortheperIormanceoItheirtasks,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtotheTreaty
onEuropeanUnion,theTreatyontheFunctioningoItheEuropeanUnionandthe
TreatyestablishingtheEuropeanAtomicEnergyCommunity.

CHAPTERI
PROPERTY,FUNDS,ASSETSANDOPERATIONSOFTHEEUROPEAN
UNION

Article 1

ThepremisesandbuildingsoItheUnionshallbeinviolable.Theyshallbeexempt
Iromsearch,requisition,conIiscationorexpropriation.ThepropertyandassetsoIthe
UnionshallnotbethesubjectoIanyadministrativeorlegalmeasureoIconstraint
withouttheauthorizationoItheCourtoIJustice.

Article 2

ThearchivesoItheUnionshallbeinviolable.

Article 3

TheUnion,itsassets,revenuesandotherpropertyshallbeexemptIromalldirect
taxes.

ThegovernmentsoItheMemberStatesshall,whereverpossible,taketheappropriate
measurestoremitorreIundtheamountoIindirecttaxesorsalestaxesincludedinthe
priceoImovableorimmovableproperty,wheretheUnionmakes,IoritsoIIicialuse,
substantialpurchasesthepriceoIwhichincludestaxesoIthiskind.Theseprovisions
271

shallnotbeapplied,however,soastohavetheeIIectoIdistortingcompetitionwithin
theUnion.

NoexemptionshallbegrantedinrespectoItaxesanddueswhichamountmerelyto
chargesIorpublicutilityservices.

Article 4

TheUnionshallbeexemptIromallcustomsduties,prohibitionsandrestrictionson
importsandexportsinrespectoIarticlesintendedIoritsoIIicialuse:articlesso
importedshallnotbedisposedoI,whetherornotinreturnIorpayment,inthe
territoryoIthecountryintowhichtheyhavebeenimported,exceptunderconditions
approvedbythegovernmentoIthatcountry.

TheUnionshallalsobeexemptIromanycustomsdutiesandanyprohibitionsand
restrictionsonimportandexportsinrespectoIitspublications.

CHAPTERII
COMMUNICATIONSANDLAISSEZ-PASSER

Article 5

FortheiroIIicialcommunicationsandthetransmissionoIalltheirdocuments,the
institutionsoItheUnionshallenjoyintheterritoryoIeachMemberStatethe
treatmentaccordedbythatStatetodiplomaticmissions.

OIIicialcorrespondenceandotheroIIicialcommunicationsoItheinstitutionsoIthe
Unionshallnotbesubjecttocensorship.

Article 6

Laissez-passerinaIormtobeprescribedbytheCouncilactingbyasimplemajority,
whichshallberecognizedasvalidtraveldocumentsbytheauthoritiesoItheMember
States,maybeissuedtomembersandservantsoItheinstitutionsoItheUnionbythe
PresidentsoItheseinstitutions.Theselaissez-passershallbeissuedtooIIicialsand
otherservantsunderconditionslaiddownintheStaIIRegulationsoIoIIicialsandthe
ConditionsoIEmploymentoIotherservantsoItheUnion.

TheCommissionmayconcludeagreementsIortheselaissez-passertoberecognized
asvalidtraveldocumentswithintheterritoryoIthirdcountries.

272

CHAPTERIII
MEMBERSOFTHEEUROPEANPARLIAMENT

Article 7

NoadministrativeorotherrestrictionshallbeimposedontheIreemovementoI
MembersoItheEuropeanParliamenttravellingtoorIromtheplaceoImeetingoIthe
EuropeanParliament.

MembersoItheEuropeanParliamentshall,inrespectoIcustomsandexchange
control,beaccorded:

(a)bytheirowngovernment,thesameIacilitiesasthoseaccordedtosenioroIIicials
travellingabroadontemporaryoIIicialmissions;

(b)bythegovernmentoIotherMemberStates,thesameIacilitiesasthoseaccorded
torepresentativesoIIoreigngovernmentsontemporaryoIIicialmissions.

Article 8

MembersoItheEuropeanParliamentshallnotbesubjecttoanyIormoIinquiry,
detentionorlegalproceedingsinrespectoIopinionsexpressedorvotescastbythem
intheperIormanceoItheirduties.

Article 9

DuringthesessionsoItheEuropeanParliament,itsMembersshallenjoy:

(a)intheterritoryoItheirownState,theimmunitiesaccordedtomembersoItheir
parliament;

(b)intheterritoryoIanyotherMemberState,immunityIromanymeasureoI
detentionandIromlegalproceedings.

ImmunityshalllikewiseapplytoMemberswhiletheyaretravellingtoandIromthe
placeoImeetingoItheEuropeanParliament.

ImmunitycannotbeclaimedwhenaMemberisIoundintheactoIcommittingan
oIIenceandshallnotpreventtheEuropeanParliamentIromexercisingitsrightto
waivetheimmunityoIoneoIitsMembers.

CHAPTERIV
273

REPRESENTATIVESOFMEMBERSTATESTAKINGPARTINTHEWORKOF
THEINSTITUTIONSOFTHEEUROPEANUNION

Article 10

RepresentativesoIMemberStatestakingpartintheworkoItheinstitutionsoIthe
Union,theiradvisersandtechnicalexpertsshall,intheperIormanceoItheirduties
andduringtheirtraveltoandIromtheplaceoImeeting,enjoythecustomary
privileges,immunitiesandIacilities.

ThisArticleshallalsoapplytomembersoItheadvisorybodiesoItheUnion.

CHAPTERV
OFFICIALSANDOTHERSERVANTSOFTHEEUROPEANUNION

Article 11

IntheterritoryoIeachMemberStateandwhatevertheirnationality,oIIicialsand
otherservantsoItheUnionshall:

(a)subjecttotheprovisionsoItheTreatiesrelating,ontheonehand,totheruleson
theliabilityoIoIIicialsandotherservantstowardstheUnionand,ontheotherhand,
tothejurisdictionoItheCourtoIJusticeoItheEuropeanUnionindisputesbetween
theUnionanditsoIIicialsandotherservants,beimmuneIromlegalproceedingsin
respectoIactsperIormedbythemintheiroIIicialcapacity,includingtheirwords
spokenorwritten.TheyshallcontinuetoenjoythisimmunityaItertheyhaveceased
toholdoIIice;

(b)togetherwiththeirspousesanddependentmembersoItheirIamilies,notbe
subjecttoimmigrationrestrictionsortoIormalitiesIortheregistrationoIaliens;

(c)inrespectoIcurrencyorexchangeregulations,beaccordedthesameIacilitiesas
arecustomarilyaccordedtooIIicialsoIinternationalorganizations;

(d)enjoytherighttoimportIreeoIdutytheirIurnitureandeIIectsatthetimeoIIirst
takinguptheirpostinthecountryconcerned,andtherighttore-exportIreeoIduty
theirIurnitureandeIIects,onterminationoItheirdutiesinthatcountry,subjectin
eithercasetotheconditionsconsideredtobenecessarybythegovernmentoIthe
countryinwhichthisrightisexercised;

(e)havetherighttoimportIreeoIdutyamotorcarIortheirpersonaluse,acquired
eitherinthecountryoItheirlastresidenceorinthecountryoIwhichtheyare
nationalsonthetermsrulinginthehomemarketinthatcountry,andtore-exportit
IreeoIduty,subjectineithercasetotheconditionsconsideredtobenecessarybythe
governmentoIthecountryconcerned.
274

Article 12

OIIicialsandotherservantsoItheUnionshallbeliabletoataxIorthebeneIitoIthe
Uniononsalaries,wagesandemolumentspaidtothembytheUnion,inaccordance
withtheconditionsandprocedurelaiddownbytheEuropeanParliamentandthe
Council,actingbymeansoIregulationsinaccordancewiththeordinarylegislative
procedureandaIterconsultationoItheinstitutionsconcerned.

TheyshallbeexemptIromnationaltaxesonsalaries,wagesandemolumentspaidby
theUnion.

Article 13

IntheapplicationoIincometax,wealthtaxanddeathdutiesandintheapplicationoI
conventionsontheavoidanceoIdoubletaxationconcludedbetweenMemberStates
oItheUnion,oIIicialsandotherservantsoItheUnionwho,solelybyreasonoIthe
perIormanceoItheirdutiesintheserviceoItheUnion,establishtheirresidenceinthe
territoryoIaMemberStateotherthantheircountryoIdomicileIortaxpurposesatthe
timeoIenteringtheserviceoItheUnion,shallbeconsidered,bothinthecountryoI
theiractualresidenceandinthecountryoIdomicileIortaxpurposes,ashaving
maintainedtheirdomicileinthelattercountryprovidedthatitisamemberoIthe
Union.Thisprovisionshallalsoapplytoaspouse,totheextentthatthelatterisnot
separatelyengagedinagainIuloccupation,andtochildrendependentonandinthe
careoIthepersonsreIerredtointhisArticle.

MovablepropertybelongingtopersonsreIerredtointheprecedingparagraphand
situatedintheterritoryoIthecountrywheretheyarestayingshallbeexemptIrom
deathdutiesinthatcountry;suchpropertyshall,IortheassessmentoIsuchduty,be
consideredasbeinginthecountryoIdomicileIortaxpurposes,subjecttotherights
oIthirdcountriesandtothepossibleapplicationoIprovisionsoIinternational
conventionsondoubletaxation.

AnydomicileacquiredsolelybyreasonoItheperIormanceoIdutiesintheserviceoI
otherinternationalorganizationsshallnotbetakenintoconsiderationinapplyingthe
provisionsoIthisArticle.

Article 14

TheEuropeanParliamentandtheCouncil,actingbymeansoIregulationsin
accordancewiththeordinarylegislativeprocedureandaIterconsultationoIthe
institutionsconcerned,shalllaydowntheschemeoIsocialsecuritybeneIitsIor
oIIicialsandotherservantsoItheUnion.

275

Article 15

TheEuropeanParliamentandtheCouncil,actingbymeansoIregulationsin
accordancewiththeordinarylegislativeprocedure,shallandaIterconsultingtheother
institutionsconcerned,determinethecategoriesoIoIIicialsandotherservantsoIthe
UniontowhomtheprovisionsoIArticle11,thesecondparagraphoIArticle12,and
Article13shallapply,inwholeorinpart.

Thenames,gradesandaddressesoIoIIicialsandotherservantsincludedinsuch
categoriesshallbecommunicatedperiodicallytothegovernmentsoItheMember
States.

CHAPTERVI
PRIVILEGESANDIMMUNITIESOFMISSIONSOFTHIRDCOUNTRIES
ACCREDITEDTOTHEEUROPEANUNION

Article 16

TheMemberStateinwhoseterritorytheUnionhasitsseatshallaccordthecustomary
diplomaticimmunitiesandprivilegestomissionsoIthirdcountriesaccreditedtothe
Union.

CHAPTERVII
GENERALPROVISIONS

Article 17

Privileges,immunitiesandIacilitiesshallbeaccordedtooIIicialsandotherservants
oItheUnionsolelyintheinterestsoItheUnion.

EachinstitutionoItheUnionshallberequiredtowaivetheimmunityaccordedtoan
oIIicialorotherservantwhereverthatinstitutionconsidersthatthewaiveroIsuch
immunityisnotcontrarytotheinterestsoItheUnion.

Article 18

TheinstitutionsoItheUnionshall,IorthepurposeoIapplyingthisProtocol,
cooperatewiththeresponsibleauthoritiesoItheMemberStatesconcerned.

276

Article 19

Articles11to14andArticle17shallapplytoMembersoItheCommission.

Article 20

Articles11to14andArticle17shallapplytotheJudges,theAdvocates-General,the
RegistrarsandtheAssistantRapporteursoItheCourtoIJusticeoItheEuropean
Union,withoutprejudicetotheprovisionsoIArticle3oItheProtocolontheStatute
oItheCourtoIJusticeoItheEuropeanUnionrelatingtoimmunityIromlegal
proceedingsoIJudgesandAdvocates-General.

Article 21

ThisProtocolshallalsoapplytotheEuropeanInvestmentBank,tothemembersoIits
organs,toitsstaIIandtotherepresentativesoItheMemberStatestakingpartinits
activities,withoutprejudicetotheprovisionsoItheProtocolontheStatuteoIthe
Bank.

TheEuropeanInvestmentBankshallinadditionbeexemptIromanyIormoItaxation
orimpositionoIalikenatureontheoccasionoIanyincreaseinitscapitalandIrom
thevariousIormalitieswhichmaybeconnectedtherewithintheStatewheretheBank
hasitsseat.Similarly,itsdissolutionorliquidationshallnotgiverisetoany
imposition.Finally,theactivitiesoItheBankandoIitsorganscarriedonin
accordancewithitsStatuteshallnotbesubjecttoanyturnovertax.

Article 22

ThisProtocolshallalsoapplytotheEuropeanCentralBank,tothemembersoIits
organsandtoitsstaII,withoutprejudicetotheprovisionsoItheProtocolonthe
StatuteoItheEuropeanSystemoICentralBanksandtheEuropeanCentralBank.

TheEuropeanCentralBankshall,inaddition,beexemptIromanyIormoItaxationor
impositionoIalikenatureontheoccasionoIanyincreaseinitscapitalandIromthe
variousIormalitieswhichmaybeconnectedtherewithintheStatewherethebankhas
itsseat.TheactivitiesoItheBankandoIitsorganscarriedoninaccordancewiththe
StatuteoItheEuropeanSystemoICentralBanksandoItheEuropeanCentralBank
shallnotbesubjecttoanyturnovertax.

277

PROTOCOL

ONTHEEXCESSIVEDEFICITPROCEDURE

THEHIGHCONTRACTINGPARTIES,

DESIRINGTOlaydownthedetailsoItheexcessivedeIicitprocedurereIerredtoin
Article126oItheTreatyontheFunctioningoItheEuropeanUnion,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtotheTreaty
onEuropeanUnionandtotheTreatyontheFunctioningoItheEuropeanUnion:

Article1

ThereIerencevaluesreIerredtoinArticle126(2)oItheTreatyontheFunctioningoI
theEuropeanUnionare:

3IortheratiooItheplannedoractualgovernmentdeIicittogrossdomestic
productatmarketprices;

60IortheratiooIgovernmentdebttogrossdomesticproductatmarketprices.

Article 2

InArticle126oIthesaidTreatyandinthisProtocol:

governmentmeansgeneralgovernment,thatiscentralgovernment,regionalorlocal
governmentandsocialsecurityIunds,totheexclusionoIcommercialoperations,as
deIinedintheEuropeanSystemoIIntegratedEconomicAccounts;

deIicitmeansnetborrowingasdeIinedintheEuropeanSystemoIIntegrated
EconomicAccounts;

investmentmeansgrossIixedcapitalIormationasdeIinedintheEuropeanSystem
oIIntegratedEconomicAccounts;

debtmeanstotalgrossdebtatnominalvalueoutstandingattheendoItheyearand
consolidatedbetweenandwithinthesectorsoIgeneralgovernmentasdeIinedinthe
Iirstindent.

Article 3

InordertoensuretheeIIectivenessoItheexcessivedeIicitprocedure,the
governmentsoItheMemberStatesshallberesponsibleunderthisprocedureIorthe
278

deIicitsoIgeneralgovernmentasdeIinedintheIirstindentoIArticle2.TheMember
Statesshallensurethatnationalproceduresinthebudgetaryareaenablethemtomeet
theirobligationsinthisareaderivingIromtheseTreaties.TheMemberStatesshall
reporttheirplannedandactualdeIicitsandthelevelsoItheirdebtpromptlyand
regularlytotheCommission.

Article 4

ThestatisticaldatatobeusedIortheapplicationoIthisProtocolshallbeprovidedby
theCommission.
279

PROTOCOL

ONTHECONVERGENCECRITERIA

THEHIGHCONTRACTINGPARTIES,

DESIRINGtolaydownthedetailsoItheconvergencecriteriawhichshallguidethe
UnionintakingdecisionstoendthederogationsoIthoseMemberStateswitha
derogation,reIerredtoinArticle140(1)oItheTreatyontheFunctioningoIthe
EuropeanUnion,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtotheTreaty
onEuropeanUnionandtotheTreatyontheFunctioningoItheEuropeanUnion:

Article 1

ThecriteriononpricestabilityreIerredtointheIirstindentoIArticle140(1)oIthe
TreatyontheFunctioningoItheEuropeanUnionshallmeanthataMemberStatehas
apriceperIormancethatissustainableandanaveragerateoIinIlation,observedover
aperiodoIoneyearbeIoretheexamination,thatdoesnotexceedbymorethan1
percentagepointsthatoI,atmost,thethreebestperIormingMemberStatesinterms
oIpricestability.InIlationshallbemeasuredbymeansoItheconsumerpriceindex
onacomparablebasistakingintoaccountdiIIerencesinnationaldeIinitions.

Article 2

ThecriteriononthegovernmentbudgetarypositionreIerredtointhesecondindentoI
Article140(1)oIthesaidTreatyshallmeanthatatthetimeoItheexaminationthe
MemberStateisnotthesubjectoIaCouncildecisionunderArticle126(6)oIthesaid
TreatythatanexcessivedeIicitexists.

Article 3

ThecriteriononparticipationintheExchangeRatemechanismoItheEuropean
MonetarySystemreIerredtointhethirdindentoIArticle140(1)oIthesaidTreaty
shallmeanthataMemberStatehasrespectedthenormalIluctuationmargins
providedIorbytheexchange-ratemechanismontheEuropeanMonetarySystem
withoutseveretensionsIoratleastthelasttwoyearsbeIoretheexamination.In
particular,theMemberStateshallnothavedevalueditscurrencysbilateralcentral
rateagainsttheeuroonitsowninitiativeIorthesameperiod.

Article 4
280

ThecriterionontheconvergenceoIinterestratesreIerredtointheIourthindentoI
Article140(1)oIthesaidTreatyshallmeanthat,observedoveraperiodoIoneyear
beIoretheexamination,aMemberStatehashadanaveragenominallong-term
interestratethatdoesnotexceedbymorethan2percentagepointsthatoI,atmost,the
threebestperIormingMemberStatesintermsoIpricestability.Interestratesshallbe
measuredonthebasisoIlongtermgovernmentbondsorcomparablesecurities,
takingintoaccountdiIIerencesinnationaldeIinitions.

Article 5

ThestatisticaldatatobeusedIortheapplicationoIthisProtocolshallbeprovidedby
theCommission.

Article 6

TheCouncilshall,actingunanimouslyonaproposalIromtheCommissionandaIter
consultingtheEuropeanParliament,theECBasthecasemaybe,andtheEconomic
andFinancialCommittee,adoptappropriateprovisionstolaydownthedetailsoIthe
convergencecriteriareIerredtoinArticle140(1)oIthesaidTreaty,whichshallthen
replacethisProtocol.

PROTOCOL

ONTHEEUROGROUP

THEHIGHCONTRACTINGPARTIES,

DESIRINGtopromoteconditionsIorstrongereconomicgrowthintheEuropean
Unionand,tothatend,todevelopever-closercoordinationoIeconomicpolicies
withintheeuroarea,

CONSCIOUSoItheneedtolaydownspecialprovisionsIorenhanceddialogue
betweentheMemberStateswhosecurrencyistheeuro,pendingtheeurobecoming
thecurrencyoIallMemberStatesoItheUnion,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union:

Article 1

281

TheMinistersoItheMemberStateswhosecurrencyistheeuroshallmeetinIormally.
Suchmeetingsshalltakeplace,whennecessary,todiscussquestionsrelatedtothe
speciIicresponsibilitiestheysharewithregardtothesinglecurrency.The
Commissionshalltakepartinthemeetings.TheEuropeanCentralBankshallbe
invitedtotakepartinsuchmeetings,whichshallbepreparedbytherepresentativesoI
theMinisterswithresponsibilityIorIinanceoItheMemberStateswhosecurrencyis
theeuroandoItheCommission.

Article 2

TheMinistersoItheMemberStateswhosecurrencyistheeuroshallelectapresident
IortwoandahalIyears,byamajorityoIthoseMemberStates.
282

PROTOCOL

ONCERTAINPROVISIONSRELATINGTOTHEUNITEDKINGDOMOF
GREATBRITAINANDNORTHERNIRELAND

THEHIGHCONTRACTINGPARTIES,

RECOGNISINGthattheUnitedKingdomshallnotbeobligedorcommittedtoadopt
theeurowithoutaseparatedecisiontodosobyitsgovernmentandparliament,

GIVENthaton16October1996and30October1997theUnitedKingdom
governmentnotiIiedtheCounciloIitsintentionnottoparticipateinthethirdstageoI
economicandmonetaryunion,

NOTINGthepracticeoIthegovernmentoItheUnitedKingdomtoIunditsborrowing
requirementbythesaleoIdebttotheprivatesector,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtotheTreaty
onEuropeanUnionandtotheTreatyontheFunctioningoItheEuropeanUnion:

1.UnlesstheUnitedKingdomnotiIiestheCouncilthatitintendstoadopttheeuro,it
shallbeundernoobligationtodoso.

2.InviewoIthenoticegiventotheCouncilbytheUnitedKingdomgovernmenton
16October1996and30October1997,paragraphs3to8and10shallapplytothe
UnitedKingdom.

3.TheUnitedKingdomshallretainitspowersintheIieldoImonetarypolicy
accordingtonationallaw.

4. Articles 282(2), with the exception oI the Iirst and last sentences thereoI, 282(5),
119, second paragraph, 126(1), (9) and (11), 127(1) to (5), 128, 130, 131, 132 and
133, 138, 140(3), 219 and 283 oI the Treaty on the Functioning oI the European
UnionshallnotapplytotheUnitedKingdom.ThesameappliestoArticle121(2)oI
this Treaty as regards the adoption oI the parts oI the broad economic policy
guidelineswhichconcerntheeuroareagenerally.IntheseprovisionsreIerencestothe
UnionortheMemberStatesshallnotincludetheUnitedKingdomandreIerencesto
nationalcentralbanksshallnotincludetheBankoIEngland.

5.TheUnitedKingdomshallendeavourtoavoidanexcessivegovernmentdeIicit.

Articles143and144oItheTreatyontheFunctioningoItheEuropeanUnionshall
continuetoapplytotheUnitedKingdom.Articles134(4)and142shallapplytothe
UnitedKingdomasiIithadaderogation.

6.ThevotingrightsoItheUnitedKingdomshallbesuspendedinrespectoIactsoI
theCouncilreIerredtointheArticleslistedinparagraph4andintheinstances
reIerredtointheIirstsubparagraphoIArticle139(4)oItheTreatyontheFunctioning
oItheEuropeanUnion.ForthispurposethesecondandthirdsubparagraphsoIArticle
139(4)oItheTreatyshallapply.
283

TheUnitedKingdomshallalsohavenorighttoparticipateintheappointmentoIthe
President,theVicePresidentandtheothermembersoItheExecutiveBoardoIthe
ECBunderArticle283(2)boIthesaidTreaty.

7.Articles3,4,6,7,9.2,10.1,10.3,11.2,12.1,14,16,18to20,22,23,26,27,30to
34and49oItheProtocolontheStatuteoItheEuropeanSystemoICentralBanksand
oItheEuropeanCentralBank(theStatute)shallnotapplytotheUnitedKingdom.

InthoseArticles,reIerencestotheUnionortheMemberStatesshallnotincludethe
UnitedKingdomandreIerencestonationalcentralbanksorshareholdersshallnot
includetheBankoIEngland.

ReIerencesinArticles10.3and30.2oItheStatutetosubscribedcapitaloItheECB
shallnotincludecapitalsubscribedbytheBankoIEngland.

8.Article141(1)oItheTreatyontheFunctioningoItheEuropeanUnionandArticles
43to47oItheStatuteshallhaveeIIect,whetherornotthereisanyMemberState
withaderogation,subjecttotheIollowingamendments:

(a)ReIerencesinArticle47tothetasksoItheECBandtheEMIshallincludethose
tasksthatstillneedtobeperIormedinthethirdstageowingtoanydecisionoIthe
UnitedKingdomnottoadopttheeuro.

(b)InadditiontothetasksreIerredtoinArticle46theECBshallalsogiveadvicein
relationtoandcontributetothepreparationoIanydecisionoItheCouncilwithregard
totheUnitedKingdomtakeninaccordancewithparagraphs9(a)and9(c).

(c)TheBankoIEnglandshallpayupitssubscriptiontothecapitaloItheECBasa
contributiontoitsoperationalcostsonthesamebasisasnationalcentralbanksoI
MemberStateswithaderogation.

9.TheUnitedKingdommaynotiIytheCouncilatanytimeoIitsintentiontoadopt
theeuro.Inthatevent:

(a)TheUnitedKingdomshallhavetherighttoadopttheeuroprovidedonlythatit
satisIiesthenecessaryconditions.TheCouncil,actingattherequestoItheUnited
Kingdomandundertheconditionsandinaccordancewiththeprocedurelaiddownin
Article140(1)and(2)oItheTreatyontheFunctioningoItheEuropeanUnion,shall
decidewhetheritIulIilsthenecessaryconditions.

(b)TheBankoIEnglandshallpayupitssubscribedcapital,transIertotheECB
Ioreignreserveassetsandcontributetoitsreservesonthesamebasisasthenational
centralbankoIaMemberStatewhosederogationhasbeenabrogated.

(c)TheCouncil,actingundertheconditionsandinaccordancewiththeprocedure
laiddowninArticle140(3)oIthesaidTreaty,shalltakeallothernecessarydecisions
toenabletheUnitedKingdomtoadopttheeuro.

284

IItheUnitedKingdomadoptstheeuropursuanttotheprovisionsoIthisProtocol,
paragraphs3to9shallceasetohaveeIIect.

10.NotwithstandingArticle123oItheTreatyontheFunctioningoItheEuropean
UnionandArticle21.1oItheStatute,theGovernmentoItheUnitedKingdommay
maintainitswaysandmeansIacilitywiththeBankoIEnglandiIandsolongasthe
UnitedKingdomdoesnotadopttheeuro.
285

PROTOCOL

ONTHESCHENGENACQUIS INTEGRATEDINTOTHEFRAMEWORKOF
THEEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,

NOTINGthattheAgreementsonthegradualabolitionoIchecksatcommonborders
signedbysomeMemberStatesoItheEuropeanUnioninSchengenon14June1985
andon19June1990,aswellasrelatedagreementsandtherulesadoptedonthebasis
oItheseagreements,havebeenintegratedintotheIrameworkoItheEuropeanUnion
bytheTreatyoIAmsterdamoI2October1997,

DESIRINGtopreservetheSchengenacquis,asdevelopedsincetheentryintoIorce
oItheTreatyoIAmsterdam,andtodevelopthisacquis inordertocontributetowards
achievingtheobjectiveoIoIIeringcitizensoItheUnionanareaoIIreedom,security
andjusticewithoutinternalborders,

TAKINGINTOACCOUNTthespecialpositionoIDenmark,

TAKINGINTOACCOUNTtheIactthatIrelandandtheUnitedKingdomoIGreat
BritainandNorthernIrelanddonotparticipateinalltheprovisionsoItheSchengen
acquis;thatprovisionshould,however,bemadetoallowthoseMemberStatesto
acceptotherprovisionsoIthisacquisinIullorpart,

RECOGNISINGthat,asaconsequence,itisnecessarytomakeuseoItheprovisions
oItheTreatiesconcerningclosercooperationbetweensomeMemberStates,

TAKINGINTOACCOUNTtheneedtomaintainaspecialrelationshipwiththe
RepublicoIIcelandandtheKingdomoINorway,bothStatesbeingboundbythe
provisionsoItheNordicpassportunion,togetherwiththeNordicStateswhichare
membersoItheEuropeanUnion,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union,

Article 1

TheKingdomoIBelgium,theRepublicoIBulgaria,theCzechRepublic,the
KingdomoIDenmark,theFederalRepublicoIGermany,theRepublicoIEstonia,the
HellenicRepublic,theKingdomoISpain,theFrenchRepublic,theItalianRepublic,
theRepublicoICyprus,theRepublicoILatvia,theRepublicoILithuania,theGrand
DuchyoILuxembourg,theRepublicoIHungary,Malta,theKingdomoIthe
Netherlands,theRepublicoIAustria,theRepublicoIPoland,thePortuguese
Republic,Romania,theRepublicoISlovenia,theSlovakRepublic,theRepublicoI
FinlandandtheKingdomoISwedenshallbeauthorisedtoimplementcloser
286

cooperationamongthemselvesinareascoveredbyprovisionsdeIinedbytheCouncil
whichconstitutetheSchengenacquis.Thiscooperationshallbeconductedwithinthe
institutionalandlegalIrameworkoItheEuropeanUnionandwithrespectIorthe
relevantprovisionsoItheTreaties.


Article 2

TheSchengenacquisshallapplytotheMemberStatesreIerredtoinArticle1,
withoutprejudicetoArticle3oItheActoIAccessionoI16April2003andArticle4
oItheActoIAccessionoI25April2005.TheCouncilwillsubstituteitselIIorthe
ExecutiveCommitteeestablishedbytheSchengenagreements.

Article 3

TheparticipationoIDenmarkintheadoptionoImeasuresconstitutingadevelopment
oItheSchengenacquis,aswellastheimplementationoIthosemeasuresandtheir
applicationtoDenmark,shallbegovernedbytherelevantprovisionsoItheProtocol
onthepositionoIDenmark.

Article 4

IrelandandtheUnitedKingdomoIGreatBritainandNorthernIreland,mayatany
timerequesttotakepartinsomeoralloItheprovisionsoIthisacquis.

TheCouncilshalldecideontherequestwiththeunanimityoIitsmembersreIerredto
inArticle1andoItherepresentativeoItheGovernmentoItheStateconcerned.

Article 5

1.ProposalsandinitiativestobuildupontheSchengenacquis shallbesubjecttothe
relevantprovisionsoItheTreaties.

Inthiscontext,whereeitherIrelandortheUnitedKingdomhavenotnotiIiedthe
PresidentoItheCouncilinwritingwithinareasonableperiodthatitwishestotake
part,theauthorisationreIerredtoinArticle329oItheTreatyontheFunctioningoI
theEuropeanUnionshallbedeemedtohavebeengrantedtotheMembersStates
reIerredtoinArticle1andtoIrelandortheUnitedKingdomwhereeitheroIthem
wishestotakepartintheareasoIcooperationinquestion.

2.WhereeitherIrelandortheUnitedKingdomisdeemedtohavegivennotiIication
pursuanttoadecisionunderArticle4,itmayneverthelessnotiIytheCouncilin
writing,within3months,thatitdoesnotwishtotakepartinsuchaproposalor
287

initiative.Inthatcase,IrelandortheUnitedKingdomshallnottakepartinits
adoption.AsIromthelatternotiIication,theprocedureIoradoptingthemeasure
buildingupontheSchengenacquisshallbesuspendeduntiltheendoItheprocedure
setoutinparagraphs3or4oruntilthenotiIicationiswithdrawnatanymoment
duringthatprocedure.

3.FortheMemberStatehavingmadethenotiIicationreIerredtoinparagraph2,any
decisiontakenbytheCouncilpursuanttoArticle4shall,asIromthedateoIentry
intoIorceoItheproposedmeasure,ceasetoapplytotheextentconsiderednecessary
bytheCouncilandundertheconditionstobedeterminedinadecisionoItheCouncil
actingbyaqualiIiedmajorityonaproposalIromtheCommission.Thatdecisionshall
betakeninaccordancewiththeIollowingcriteria:theCouncilshallseektoretainthe
widestpossiblemeasureoIparticipationoItheMemberStateconcernedwithout
seriouslyaIIectingthepracticaloperabilityoIthevariouspartsoItheSchengen
acquis,whilerespectingtheircoherence.TheCommissionshallsubmititsproposalas
soonaspossibleaIterthenotiIicationreIerredtoinparagraph2.TheCouncilshall,iI
neededaIterconveningtwosuccessivemeetings,actwithinIourmonthsoIthe
Commissionproposal.

4.II,bytheendoItheperiodoIIourmonths,theCouncilhasnotadoptedadecision,
aMemberStatemay,withoutdelay,requestthatthematterbereIerredtothe
EuropeanCouncil.Inthatcase,theEuropeanCouncilshall,atitsnextmeeting,acting
byaqualiIiedmajorityonaproposalIromtheCommission,takeadecisionin
accordancewiththecriteriareIerredtoinparagraph3.

5.II,bytheendoItheproceduresetoutinparagraphs3or4,theCouncilor,asthe
casemaybe,theEuropeanCouncilhasnotadopteditsdecision,thesuspensionoIthe
procedureIoradoptingthemeasurebuildingupontheSchengenacquis shallbe
terminated.IIthesaidmeasureissubsequentlyadoptedanydecisiontakenbythe
CouncilpursuanttoArticle4shall,asIromthedateoIentryintoIorceoIthat
measure,ceasetoapplyIortheMemberStateconcernedtotheextentandunderthe
conditionsdecidedbytheCommission,unlessthesaidMemberStatehaswithdrawn
itsnotiIicationreIerredtoinparagraph2beIoretheadoptionoIthemeasure.The
CommissionshallactbythedateoIthisadoption.Whentakingitsdecision,the
CommissionshallrespectthecriteriareIerredtoinparagraph3.

Article 6

TheRepublicoIIcelandandtheKingdomoINorwayshallbeassociatedwiththe
implementationoItheSchengenacquis anditsIurtherdevelopment.Appropriate
proceduresshallbeagreedtothateIIectinanAgreementtobeconcludedwiththose
StatesbytheCouncil,actingbytheunanimityoIitsMembersmentionedinArticle1.
SuchAgreementshallincludeprovisionsonthecontributionoIIcelandandNorway
toanyIinancialconsequencesresultingIromtheimplementationoIthisProtocol.

AseparateAgreementshallbeconcludedwithIcelandandNorwaybytheCouncil,
actingunanimously,IortheestablishmentoIrightsandobligationsbetweenIreland
andtheUnitedKingdomoIGreatBritainandNorthernIrelandontheonehand,and
288

IcelandandNorwayontheother,indomainsoItheSchengenacquis whichapplyto
theseStates.

Article 7

ForthepurposesoIthenegotiationsIortheadmissionoInewMemberStatesintothe
EuropeanUnion,theSchengenacquis andIurthermeasurestakenbytheinstitutions
withinitsscopeshallberegardedasanacquis whichmustbeacceptedinIullbyall
StatescandidatesIoradmission.
289

PROTOCOL

ONTHEAPPLICATIONOFCERTAINASPECTSOFARTICLE26OFTHE
TREATYONTHEFUNCTIONINGOFTHEEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,

DESIRINGtosettlecertainquestionsrelatingtotheUnitedKingdomandIreland,

HAVINGREGARDtotheexistenceIormanyyearsoIspecialtravelarrangements
betweentheUnitedKingdomandIreland,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtheTreatyontheFunctioningoItheEuropeanUnion,

Article 1

TheUnitedKingdomshallbeentitled,notwithstandingArticles26and77oIthe
TreatyontheFunctioningoItheEuropeanUnion,anyotherprovisionoIthatTreaty
oroItheTreatyonEuropeanUnion,anymeasureadoptedunderthoseTreaties,or
anyinternationalagreementconcludedbytheUnionorbytheUnionanditsMember
StateswithoneormorethirdStates,toexerciseatitsIrontierswithotherMember
StatessuchcontrolsonpersonsseekingtoentertheUnitedKingdomasitmay
considernecessaryIorthepurpose:

(a)oIveriIyingtherighttoentertheUnitedKingdomoIcitizensoIMemberStates
andoItheirdependantsexercisingrightsconIerredbyUnionlaw,aswellascitizens
oIotherStatesonwhomsuchrightshavebeenconIerredbyanagreementbywhich
theUnitedKingdomisbound;and

(b)oIdeterminingwhetherornottograntotherpersonspermissiontoenterthe
UnitedKingdom.

NothinginArticles26and77oItheTreatyontheFunctioningoItheEuropeanUnion
orinanyotherprovisionoIthatTreatyoroItheTreatyonEuropeanUnionorinany
measureadoptedunderthemshallprejudicetherightoItheUnitedKingdomtoadopt
orexerciseanysuchcontrols.ReIerencestotheUnitedKingdominthisArticleshall
includeterritoriesIorwhoseexternalrelationstheUnitedKingdomisresponsible.

Article 2

TheUnitedKingdomandIrelandmaycontinuetomakearrangementsbetween
themselvesrelatingtothemovementoIpersonsbetweentheirterritories(the
CommonTravelArea),whileIullyrespectingtherightsoIpersonsreIerredtoin
Article1,Iirstparagraph,point(a)oIthisProtocol.Accordingly,aslongasthey
290

maintainsucharrangements,theprovisionsoIArticle1oIthisProtocolshallapplyto
IrelandunderthesametermsandconditionsasIortheUnitedKingdom.Nothingin
Articles26and77oItheTreatyontheFunctioningoItheEuropeanUnion,inany
otherprovisionoIthatTreatyoroItheTreatyonEuropeanUnionorinanymeasure
adoptedunderthem,shallaIIectanysucharrangements.

Article 3

TheotherMemberStatesshallbeentitledtoexerciseattheirIrontiersoratanypoint
oIentryintotheirterritorysuchcontrolsonpersonsseekingtoentertheirterritory
IromtheUnitedKingdomoranyterritorieswhoseexternalrelationsareunderits
responsibilityIorthesamepurposesstatedinArticle1oIthisProtocol,orIrom
IrelandaslongastheprovisionsoIArticle1oIthisProtocolapplytoIreland.

NothinginArticles26and77oItheTreatyontheFunctioningoItheEuropeanUnion
orinanyotherprovisionoIthatTreatyoroItheTreatyonEuropeanUnionorinany
measureadoptedunderthemshallprejudicetherightoItheotherMemberStatesto
adoptorexerciseanysuchcontrols.
291

PROTOCOL

ONTHEPOSITIONOFTHEUNITEDKINGDOMANDIRELANDINRESPECT
OFTHEAREAOFFREEDOM,SECURITYANDJUSTICE

THEHIGHCONTRACTINGPARTIES,

DESIRINGtosettlecertainquestionsrelatingtotheUnitedKingdomandIreland,

HAVINGREGARDtotheProtocolontheapplicationoIcertainaspectsoIArticle26
oItheTreatyontheFunctioningoItheEuropeanUniontotheUnitedKingdomandto
Ireland,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtheTreatyontheFunctioningoItheEuropeanUnion,

Article 1


SubjecttoArticle3,theUnitedKingdomandIrelandshallnottakepartinthe
adoptionbytheCounciloIproposedmeasurespursuanttoTitleVoIPartThreeoIthe
TreatyontheFunctioningoItheEuropeanUnion.TheunanimityoIthemembersoI
theCouncil,withtheexceptionoItherepresentativesoIthegovernmentsoIthe
UnitedKingdomandIreland,shallbenecessaryIordecisionsoItheCouncilwhich
mustbeadoptedunanimously.

ForthepurposesoIthisArticle,aqualiIiedmajorityshallbedeIinedinaccordance
withArticle238(3)oItheTreatyontheFunctioningoItheEuropeanUnion.


Article 2


InconsequenceoIArticle1andsubjecttoArticles3,4and6,noneoItheprovisions
oITitleVoIPartThreeoItheTreatyontheFunctioningoItheEuropeanUnion,no
measureadoptedpursuanttothatTitle,noprovisionoIanyinternationalagreement
concludedbytheUnionpursuanttothatTitle,andnodecisionoItheCourtoIJustice
interpretinganysuchprovisionormeasureshallbebindinguponorapplicableinthe
UnitedKingdomorIreland;andnosuchprovision,measureordecisionshallinany
wayaIIectthecompetences,rightsandobligationsoIthoseStates;andnosuch
provision,measureordecisionshallinanywayaIIecttheCommunityorUnion
acquis norIormpartoIUnionlawastheyapplytotheUnitedKingdomorIreland.

Article 3

1.TheUnitedKingdomorIrelandmaynotiIythePresidentoItheCouncilinwriting,
withinthreemonthsaIteraproposalorinitiativehasbeenpresentedtotheCouncil
pursuanttoTitleVoIPartThreeoItheTreatyontheFunctioningoItheEuropean
292

Union,thatitwishestotakepartintheadoptionandapplicationoIanysuchproposed
measure,whereuponthatStateshallbeentitledtodoso.

TheunanimityoIthemembersoItheCouncil,withtheexceptionoIamemberwhich
hasnotmadesuchanotiIication,shallbenecessaryIordecisionsoItheCouncil
whichmustbeadoptedunanimously.Ameasureadoptedunderthisparagraphshall
bebindinguponallMemberStateswhichtookpartinitsadoption.

MeasuresadoptedpursuanttoArticle70oItheTreatyontheFunctioningoIthe
EuropeanUnionshalllaydowntheconditionsIortheparticipationoItheUnited
KingdomandIrelandintheevaluationsconcerningtheareascoveredbyTitleVoI
PartThreeoIthatTreaty.

ForthepurposesoIthisarticle,aqualiIiedmajorityshallbedeIinedinaccordance
withArticle238(3)oItheTreatyontheFunctioningoItheEuropeanUnion.

2.IIaIterareasonableperiodoItimeameasurereIerredtoinparagraph1cannotbe
adoptedwiththeUnitedKingdomorIrelandtakingpart,theCouncilmayadoptsuch
measureinaccordancewithArticle1withouttheparticipationoItheUnitedKingdom
orIreland.InthatcaseArticle2applies.

Article 4

TheUnitedKingdomorIrelandmayatanytimeaItertheadoptionoIameasureby
theCouncilpursuanttoTitleVoIPartThreeoItheTreatyontheFunctioningoIthe
EuropeanUnionnotiIyitsintentiontotheCouncilandtotheCommissionthatit
wishestoacceptthatmeasure.Inthatcase,theprocedureprovidedIorinArticle
331(1)oItheTreatyontheFunctioningoItheEuropeanUnionshallapplymutatis
mutandis.


Article 4a

1.TheprovisionsoIthisProtocolapplyIortheUnitedKingdomandIrelandalsoto
measuresproposedoradoptedpursuanttoTitleVoIPartThreeoItheTreatyonthe
FunctioningoItheEuropeanUnionamendinganexistingmeasurebywhichtheyare
bound.

2.However,incaseswheretheCouncil,actingonaproposalIromtheCommission,
determinesthatthenon-participationoItheUnitedKingdomorIrelandinthe
amendedversionoIanexistingmeasuremakestheapplicationoIthatmeasure
inoperableIorotherMemberStatesortheUnion,itmayurgethemtomakea
notiIicationunderArticle3or4.ForthepurposesoIArticle3aIurtherperiodoItwo
monthsstartstorunasIromthedateoIsuchdeterminationbytheCouncil.

IIattheexpiryoIthatperiodoItwomonthsIromtheCouncilsdeterminationthe
UnitedKingdomorIrelandhasnotmadeanotiIicationunderArticle3orArticle4,
293

theexistingmeasureshallnolongerbebindinguponorapplicabletoit,unlessthe
MemberStateconcernedhasmadeanotiIicationunderArticle4beIoretheentryinto
IorceoItheamendingmeasure.ThisshalltakeeIIectIromthedateoIentryintoIorce
oItheamendingmeasureoroIexpiryoItheperiodoItwomonths,whicheveristhe
later.

ForthepurposeoIthisparagraph,theCouncilshall,aIteraIulldiscussionoIthe
matter,actbyaqualiIiedmajorityoIitsmembersrepresentingtheMemberStates
participatingorhavingparticipatedintheadoptionoItheamendingmeasure.A
qualiIiedmajorityoItheCouncilshallbedeIinedinaccordancewithArticle238(3)(a)
oItheTreatyontheFunctioningoItheEuropeanUnion.

3.TheCouncil,actingbyaqualiIiedmajorityonaproposalIromtheCommission,
maydeterminethattheUnitedKingdomorIrelandshallbearthedirectIinancial
consequences,iIany,necessarilyandunavoidablyincurredasaresultoIthecessation
oIitsparticipationintheexistingmeasure.

4.ThisArticleshallbewithoutprejudicetoArticle4.


Article 5


AMemberStatewhichisnotboundbyameasureadoptedpursuanttoTitleVoIPart
ThreeoItheTreatyontheFunctioningoItheEuropeanUnionshallbearnoIinancial
consequencesoIthatmeasureotherthanadministrativecostsentailedIorthe
institutions,unlessallmembersoItheCouncil,actingunanimouslyaIterconsulting
theEuropeanParliament,decideotherwise.


Article 6


Where,incasesreIerredtointhisProtocol,theUnitedKingdomorIrelandisbound
byameasureadoptedbytheCouncilpursuanttoTitleVoIPartThreeoItheTreaty
ontheFunctioningoItheEuropeanUnion,therelevantprovisionsoItheTreaties
shallapplytothatStateinrelationtothatmeasure.


Article 6a

TheUnitedKingdomandIrelandshallnotbeboundbytheruleslaiddownonthe
basisoIArticle16oItheTreatyontheFunctioningoItheEuropeanUnionwhich
relatetotheprocessingoIpersonaldatabytheMemberStateswhencarryingout
activitieswhichIallwithinthescopeoIChapter4orChapter5oITitleVoI
PartThreeoIthatTreatywheretheUnitedKingdomandIrelandarenotboundbythe
rulesgoverningtheIormsoIjudicialcooperationincriminalmattersorpolice
cooperationwhichrequirecompliancewiththeprovisionslaiddownonthebasisoI
Article16.
294



Article 7


Articles3,4and4ashallbewithoutprejudicetotheProtocolontheSchengenacquis
integratedintotheIrameworkoItheEuropeanUnion.


Article 8


IrelandmaynotiIytheCouncilinwritingthatitnolongerwishestobecoveredbythe
termsoIthisProtocol.Inthatcase,thenormaltreatyprovisionswillapplytoIreland.

Article 9


WithregardtoIreland,thisProtocolshallnotapplytoArticle75oItheTreatyonthe
FunctioningoItheEuropeanUnion.
295

PROTOCOL

ONTHEPOSITIONOFDENMARK

THEHIGHCONTRACTINGPARTIES,

RECALLINGtheDecisionoItheHeadsoIStateorGovernment,meetingwithinthe
EuropeanCouncilatEdinburghon12December1992,concerningcertainproblems
raisedbyDenmarkontheTreatyonEuropeanUnion,

HAVINGNOTEDthepositionoIDenmarkwithregardtoCitizenship,Economicand
MonetaryUnion,DeIencePolicyandJusticeandHomeAIIairsaslaiddowninthe
EdinburghDecision,

CONSCIOUSoItheIactthatacontinuationundertheTreatiesoIthelegalregime
originatingintheEdinburghdecisionwillsigniIicantlylimitDenmarksparticipation
inimportantareasoIcooperationoItheUnion,andthatitwouldbeinthebestinterest
oItheUniontoensuretheintegrityoItheacquisintheareaoIIreedom,securityand
justice;

WISHINGthereIoretoestablishalegalIrameworkthatwillprovideanoptionIor
DenmarktoparticipateintheadoptionoImeasuresproposedonthebasisoITitleV
oIPartThreeoItheTreatyontheFunctioningoItheEuropeanUnionandwelcoming
theintentionoIDenmarktoavailitselIoIthisoptionwhenpossibleinaccordance
withitsconstitutionalrequirements;

NOTINGthatDenmarkwillnotpreventtheotherMemberStatesIromIurther
developingtheircooperationwithrespecttomeasuresnotbindingonDenmark;

BEARINGINMINDArticle3oItheProtocolontheSchengenacquisintegratedinto
theIrameworkoItheEuropeanUnion,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtheTreatyontheFunctioningoItheEuropeanUnion,

PARTI

Article 1

DenmarkshallnottakepartintheadoptionbytheCounciloIproposedmeasures
pursuanttoTitleVoIPartThreeoItheTreatyontheFunctioningoItheEuropean
Union.TheunanimityoIthemembersoItheCouncil,withtheexceptionoIthe
representativeoIthegovernmentoIDenmark,shallbenecessaryIorthedecisionsoI
theCouncilwhichmustbeadoptedunanimously.

296

ForthepurposesoIthisArticle,aqualiIiedmajorityshallbedeIinedinaccordance
withArticle238(3)oItheTreatyontheFunctioningoItheEuropeanUnion.

Article 2

NoneoItheprovisionsoITitleVoIPartThreeoItheTreatyontheFunctioningoI
theEuropeanUnion,nomeasureadoptedpursuanttothatTitle,noprovisionoIany
internationalagreementconcludedbytheUnionpursuanttothatTitle,andno
decisionoItheCourtoIJusticeoItheEuropeanUnioninterpretinganysuchprovision
ormeasureoranymeasureamendedoramendablepursuanttothatTitleshallbe
bindinguponorapplicableinDenmark;andnosuchprovision,measureordecision
shallinanywayaIIectthecompetences,rightsandobligationsoIDenmark;andno
suchprovision,measureordecisionshallinanywayaIIecttheCommunityorUnion
acquis norIormpartoIUnionlawastheyapplytoDenmark.Inparticular,actsoIthe
UnionintheIieldoIpolicecooperationandjudicialcooperationincriminalmatters
adoptedbeIoretheentryintoIorceoItheTreatyoILisbonwhichareamendedshall
continuetobebindinguponandapplicabletoDenmarkunchanged.


Article 2a

Article2oIthisProtocolshallalsoapplyinrespectoIthoseruleslaiddownonthe
basisoIArticle16oItheTreatyontheFunctioningoItheEuropeanUnionwhich
relatetotheprocessingoIpersonaldatabytheMemberStateswhencarryingout
activitieswhichIallwithinthescopeoIChapter4oIChapter5oITitleVoIPart
ThreeoIthatTreaty.


Article 3


DenmarkshallbearnoIinancialconsequencesoImeasuresreIerredtoinArticle1,
otherthanadministrativecostsentailedIortheinstitutions.


Article 4

1.DenmarkshalldecidewithinaperiodoI6monthsaItertheCouncilhasdecidedon
aproposalorinitiativetobuildupontheSchengenacquis coveredbythisPart,
whetheritwillimplementthismeasureinitsnationallaw.IIitdecidestodoso,this
measurewillcreateanobligationunderinternationallawbetweenDenmarkandthe
otherMemberStatesboundbythemeasure.

2.IIDenmarkdecidesnottoimplementameasureoItheCouncilasreIerredtoin
paragraph1,theMemberStatesboundbythatmeasureandDenmarkwillconsider
appropriatemeasurestobetaken.
297

PARTII

Article 5

WithregardtomeasuresadoptedbytheCouncilpursuanttoArticle26(1),Article42
andArticles43to46oItheTreatyonEuropeanUnion,Denmarkdoesnotparticipate
intheelaborationandtheimplementationoIdecisionsandactionsoItheUnionwhich
havedeIenceimplications.ThereIoreDenmarkshallnotparticipateintheiradoption.
DenmarkwillnotpreventtheotherMemberStatesIromIurtherdevelopingtheir
cooperationinthisarea.DenmarkshallnotbeobligedtocontributetotheIinancing
oIoperationalexpenditurearisingIromsuchmeasures,nortomakemilitary
capabilitiesavailabletotheUnion.

TheunanimityoIthemembersoItheCouncil,withtheexceptionoItherepresentative
oIthegovernmentoIDenmark,shallbenecessaryIortheactsoItheCouncilwhich
mustbeadoptedunanimously.

ForthepurposesoIthisArticle,aqualiIiedmajorityshallbedeIinedinaccordance
withArticle238(3)oItheTreatyontheFunctioningoItheEuropeanUnion.

PARTIII


Article 6


Articles1,2and3shallnotapplytomeasuresdeterminingthethirdcountrieswhose
nationalsmustbeinpossessionoIavisawhencrossingtheexternalbordersoIthe
MemberStates,ormeasuresrelatingtoauniIormIormatIorvisas.


PARTIV

Article 7


AtanytimeDenmarkmay,inaccordancewithitsconstitutionalrequirements,inIorm
theotherMemberStatesthatitnolongerwishestoavailitselIoIallorpartoIthis
Protocol.Inthatevent,DenmarkwillapplyinIullallrelevantmeasurestheninIorce
takenwithintheIrameworkoItheEuropeanUnion.

Article 8

298

1.AtanytimeandwithoutprejudicetoArticle7,Denmarkmay,inaccordancewith
itsconstitutionalrequirements,notiIytheotherMemberStatesthat,witheIIectIrom
theIirstdayoIthemonthIollowingthenotiIication,PartIshallconsistoIthe
provisionsintheAnnex.InthatcaseArticles5to8shallberenumberedin
consequence.

2.SixmonthsaIterthedateonwhichthenotiIicationreIerredtoinparagraph1takes
eIIectallSchengenacquisandmeasuresadoptedtobuilduponthisacquis,which
untilthenhavebeenbindingonDenmarkasobligationsunderinternationallaw,shall
bebindinguponDenmarkasthelawoItheUnion.

ANNEX

Article 1

SubjecttoArticle3,DenmarkshallnottakepartintheadoptionbytheCounciloI
measuresproposedpursuanttoTitleVoIPartThreeoItheTreatyontheFunctioning
oItheEuropeanUnion.TheunanimityoIthemembersoItheCouncil,withthe
exceptionoItherepresentativeoIthegovernmentoIDenmark,shallbenecessaryIor
theactsoItheCouncilwhichmustbeadoptedunanimously.

ForthepurposesoIthisArticle,aqualiIiedmajorityshallbedeIinedinaccordance
withArticle238(3)oItheTreatyontheFunctioningoItheEuropeanUnion.

Article 2

PursuanttoArticle1andsubjecttoArticles3,4and8,noneoItheprovisionsinTitle
VoIPartThreeoItheTreatyontheFunctioningoItheEuropeanUnion,nomeasure
adoptedpursuanttothatTitle,noprovisionoIanyinternationalagreementsconcluded
bytheUnionpursuanttothatTitle,nodecisionoItheCourtoIJusticeoIthe
EuropeanUnioninterpretinganysuchprovisionormeasureshallbebindinguponor
applicableinDenmark;andnosuchprovision,measureordecisionshallinanyway
aIIectthecompetences,rightsandobligationsoIDenmark;andnosuchprovision,
measureordecisionshallinanywayaIIecttheCommunityorUnionacquisnorIorm
partoIthelawoItheUnionastheyapplytoDenmark.

Article 3

1.DenmarkmaynotiIythePresidentoItheCouncilinwriting,withinthreemonths
aIteraproposalorinitiativehasbeenpresentedtotheCouncilpursuanttoTitleVoI
PartThreeoItheTreatyontheFunctioningoItheEuropeanUnion,thatitwishesto
299

takepartintheadoptionandapplicationoIanysuchproposedmeasure,whereupon
Denmarkshallbeentitledtodoso.

2.IIaIterareasonableperiodoItimeameasurereIerredtoinparagraph1cannotbe
adoptedwithDenmarktakingpart,theCouncilmayadoptthatmeasurereIerredtoin
paragraph1inaccordancewithArticle1withouttheparticipationoIDenmark.Inthat
caseArticle2applies.

Article 4

DenmarkmayatanytimeaItertheadoptionoIameasurepursuanttoTitleVoIPart
ThreeoItheTreatyontheFunctioningoItheEuropeanUnionnotiIyitsintentionto
theCouncilandtheCommissionthatitwishestoacceptthatmeasure.Inthatcase,the
procedureprovidedIorinArticle331(1)oIthatTreatyshallapplymutatis mutandis.

Article 5


1.TheprovisionsoIthisProtocolapplyIorDenmarkalsotomeasuresproposedor
adoptedpursuanttoTitleVoIPartThreeoItheTreatyontheFunctioningoIthe
EuropeanUnionamendinganexistingmeasurebywhichitisbound.

2.However,incaseswheretheCouncil,actingonaproposalIromtheCommission,
determinesthatthenon-participationoIDenmarkintheamendedversionoIan
existingmeasuremakestheapplicationoIthatmeasureinoperableIorotherMember
StatesortheUnion,itmayurgeittomakeanotiIicationunderArticle3or4.Forthe
purposesoIArticle3aIurtherperiodoItwomonthsstartstorunasIromthedateoI
suchdeterminationbytheCouncil.

IIattheexpiryoIthatperiodoItwomonthsIromtheCouncilsdetermination
DenmarkhasnotmadeanotiIicationunderArticle3orArticle4,theexisting
measureshallnolongerbebindinguponorapplicabletoit,unlessithasmadea
notiIicationunderArticle4beIoretheentryintoIorceoItheamendingmeasure.This
shalltakeeIIectIromthedateoIentryintoIorceoItheamendingmeasureoroI
expiryoItheperiodoItwomonths,whicheverislater.

ForthepurposesoIthisparagraph,theCouncilshall,aIteraIulldiscussionoIthe
matter,actbyaqualiIiedmajorityoIitsmembersrepresentingtheMemberStates
participatingorhavingparticipatedintheadoptionoItheamendingmeasure.A
qualiIiedmajorityoItheCouncilshallbedeIinedinaccordancewithArticle238(3)(a)
oItheTreatyontheFunctioningoItheEuropeanUnion.

3.TheCouncil,actingbyaqualiIiedmajorityonaproposalIromtheCommission,
maydeterminethatDenmarkshallbearthedirectIinancialconsequences,iIany,
necessarilyandunavoidablyincurredasaresultoIthecessationoIitsparticipationin
theexistingmeasure.

300

4.ThisArticleshallbewithoutprejudicetoArticle4.

Article 6

1.NotiIicationpursuanttoArticle4shallbesubmittednolaterthansixmonthsaIter
theIinaladoptionoIameasureiIthismeasurebuildsupontheSchengenacquis.

IIDenmarkdoesnotsubmitanotiIicationinaccordancewithArticles3or4
regardingameasurebuildingupontheSchengenacquis,theMemberStatesboundby
thatmeasureandDenmarkwillconsiderappropriatemeasurestobetaken.

2.AnotiIicationpursuanttoArticle3withrespecttoameasurebuildinguponthe
SchengenacquisshallbedeemedirrevocablytobeanotiIicationpursuanttoArticle3
withrespecttoanyIurtherproposalorinitiativeaimingtobuilduponthatmeasureto
theextentthatsuchproposalorinitiativebuildsupontheSchengenacquis.

Article 7

DenmarkshallnotbeboundbytheruleslaiddownonthebasisoIArticle16oIthe
TreatyontheFunctioningoItheEuropeanUnionwhichrelatetotheprocessingoI
personaldatabytheMemberStateswhencarryingoutactivitieswhichIallwithinthe
scopeoIChapter4orChapter5oITitleVoIPartThreeoIthatTreatywhere
DenmarkisnotboundbytherulesgoverningtheIormsoIjudicialcooperationin
criminalmattersorpolicecooperationwhichrequirecompliancewiththeprovisions
laiddownonthebasisoIArticle16.

Article 8

Where,incasesreIerredtointhisPart,Denmarkisboundbyameasureadoptedby
theCouncilpursuanttoTitleVoIPartThreeoItheTreatyontheFunctioningoIthe
EuropeanUnion,therelevantprovisionsoItheTreatiesshallapplytoDenmarkin
relationtothatmeasure.

Article 9

WhereDenmarkisnotboundbyameasureadoptedpursuanttoTitleVoIPartThree
oItheTreatyontheFunctioningoItheEuropeanUnion,itshallbearnoIinancial
consequencesoIthatmeasureotherthanadministrativecostsentailedIorthe
institutionsunlesstheCouncil,withallitsMembersactingunanimouslyaIter
consultingtheEuropeanParliament,decidesotherwise.
301

PROTOCOL

ONEXTERNALRELATIONSOFTHEMEMBERSTATESWITHREGARDTO
THECROSSINGOFEXTERNALBORDERS

THEHIGHCONTRACTINGPARTIES,

TAKINGINTOACCOUNTtheneedoItheMemberStatestoensureeIIective
controlsattheirexternalborders,incooperationwiththirdcountrieswhere
appropriate,
HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union,

Sole Article

TheprovisionsonthemeasuresonthecrossingoIexternalbordersincludedinArticle
77(2)(b)oItheTreatyontheFunctioningoItheEuropeanUnionshallbewithout
prejudicetothecompetenceoIMemberStatestonegotiateorconcludeagreements
withthirdcountriesaslongastheyrespectUnionlawandotherrelevantinternational
agreements.
302

PROTOCOL

ONASYLUMFORNATIONALSOFMEMBERSTATESOFTHEEUROPEAN
UNION

THEHIGHCONTRACTINGPARTIES

WHEREAS,inaccordancewithArticle6(1)oItheTreatyonEuropeanUnion,the
Unionrecognisestherights,IreedomsandprinciplessetoutintheCharteroI
FundamentalRights;

WHEREASpursuanttoArticle6(3)oItheTreatyonEuropeanUnion,Iundamental
rights,asguaranteedbytheEuropeanConventionIortheProtectionoIHumanRights
andFundamentalFreedoms,constitutepartoItheUnionslawasgeneralprinciples;

WHEREAStheCourtoIJusticeoItheEuropeanUnionhasjurisdictiontoensurethat
intheinterpretationandapplicationoIArticle6,paragraphs(1)and(3)oItheTreaty
onEuropeanUnionthelawisobservedbytheEuropeanUnion;

WHEREASpursuanttoArticle49oItheTreatyonEuropeanUnionanyEuropean
State,whenapplyingtobecomeaMemberoItheUnion,mustrespectthevaluesset
outinArticle2oItheTreatyonEuropeanUnion,

BEARINGINMINDthatArticle7oItheTreatyonEuropeanUnionestablishesa
mechanismIorthesuspensionoIcertainrightsintheeventoIaseriousandpersistent
breachbyaMemberStateoIthosevalues;

RECALLINGthateachnationaloIaMemberState,asacitizenoItheUnion,enjoys
aspecialstatusandprotectionwhichshallbeguaranteedbytheMemberStatesin
accordancewiththeprovisionsoIPartTwooItheTreatyontheFunctioningoIthe
EuropeanUnion;

BEARINGINMINDthattheTreatiesestablishanareawithoutinternalIrontiersand
granteverycitizenoItheUniontherighttomoveandresideIreelywithintheterritory
oItheMemberStates;

WISHINGtopreventtheinstitutionoIasylumbeingresortedtoIorpurposesaliento
thoseIorwhichitisintended;

WHEREASthisProtocolrespectstheIinalityandtheobjectivesoItheGeneva
ConventionoI28July1951relatingtotheStatusoIReIugees;
HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union,

Sole Article

303

GiventheleveloIprotectionoIIundamentalrightsandIreedomsbytheMember
StatesoItheEuropeanUnion,MemberStatesshallberegardedasconstitutingsaIe
countriesoIorigininrespectoIeachotherIoralllegalandpracticalpurposesin
relationtoasylummatters.Accordingly,anyapplicationIorasylummadebya
nationaloIaMemberStatemaybetakenintoconsiderationordeclaredadmissibleIor
processingbyanotherMemberStateonlyintheIollowingcases:

(a)iItheMemberStateoIwhichtheapplicantisanationalproceedsaItertheentry
intoIorceoItheTreatyoIAmsterdam,availingitselIoItheprovisionsoIArticle15
oItheConventionIortheProtectionoIHumanRightsandFundamentalFreedoms,to
takemeasuresderogatinginitsterritoryIromitsobligationsunderthatConvention;

(b)iItheprocedurereIerredtoArticle7(1)oItheTreatyonEuropeanUnionhasbeen
initiatedanduntiltheCouncil,or,whereappropriate,theEuropeanCouncil,takesa
decisioninrespectthereoIwithregardtotheMemberStateoIwhichtheapplicantisa
national;

(c)iItheCouncilhasadoptedadecisioninaccordancewithArticle7(1)oItheTreaty
onEuropeanUnioninrespectoItheMemberStateoIwhichtheapplicantisa
nationaloriItheEuropeanCouncilhasadoptedadecisioninaccordancewithArticle
7(2)oIthatTreatyinrespectoItheMemberStateoIwhichtheapplicantisanational;

(d)iIaMemberStateshouldsodecideunilaterallyinrespectoItheapplicationoIa
nationaloIanotherMemberState;inthatcasetheCouncilshallbeimmediately
inIormed;theapplicationshallbedealtwithonthebasisoIthepresumptionthatitis
maniIestlyunIoundedwithoutaIIectinginanyway,whateverthecasesmaybe,the
decision-makingpoweroItheMemberState.

304

PROTOCOL

ONPERMANENTSTRUCTUREDCOOPERATION
ESTABLISHEDBYARTICLE42OFTHETREATYONEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,

HAVINGREGARDTOArticle42(6)andArticle46oItheTreatyonEuropean
Union,

RECALLINGthattheUnionispursuingacommonIoreignandsecuritypolicybased
ontheachievementoIgrowingconvergenceoIactionbyMemberStates;

RECALLINGthatthecommonsecurityanddeIencepolicyisanintegralpartoIthe
commonIoreignandsecuritypolicy;thatitprovidestheUnionwithoperational
capacitydrawingoncivilandmilitaryassets;thattheUnionmayusesuchassetsin
thetasksreIerredtoinArticle43oItheTreatyonEuropeanUnionoutsidetheUnion
Iorpeace-keeping,conIlictpreventionandstrengtheninginternationalsecurityin
accordancewiththeprinciplesoItheUnitedNationsCharter;thattheperIormanceoI
thesetasksistobeundertakenusingcapabilitiesprovidedbytheMemberStates
inaccordancewiththeprincipleoIasinglesetoIIorces;

RECALLINGthatthecommonsecurityanddeIencepolicyoItheUniondoesnot
prejudicethespeciIiccharacteroIthesecurityanddeIencepolicyoIcertainMember
States;

RECALLINGthatthecommonsecurityanddeIencepolicyoItheUnionrespectsthe
obligationsundertheNorthAtlanticTreatyoIthoseMemberStateswhichseetheir
commondeIencerealisedintheNorthAtlanticTreatyOrganisation,whichremains
theIoundationoIthecollectivedeIenceoIitsmembers,andiscompatiblewiththe
commonsecurityanddeIencepolicyestablishedwithinthatIramework;

CONVINCEDthatamoreassertiveUnionroleinsecurityanddeIencematterswill
contributetothevitalityoIarenewedAtlanticAlliance,inaccordancewiththeBerlin
Plusarrangements;

DETERMINEDtoensurethattheUnioniscapableoIIullyassumingits
responsibilitieswithintheinternationalcommunity;

RECOGNISINGthattheUnitedNationsOrganisationmayrequesttheUnions
assistanceIortheurgentimplementationoImissionsundertakenunderChaptersVI
andVIIoItheUnitedNationsCharter;

RECOGNISINGthatthestrengtheningoIthesecurityanddeIencepolicywillrequire
eIIortsbyMemberStatesintheareaoIcapabilities;

305

CONSCIOUSthatembarkingonanewstageinthedevelopmentoItheEuropean
securityanddeIencepolicyinvolvesadeterminedeIIortbytheMemberStates
concerned;

RECALLINGtheimportanceoItheHighRepresentativeoItheUnionIorForeign
AIIairsandSecurityPolicybeingIullyinvolvedinproceedingsrelatingtopermanent
structuredcooperation,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union:

Article 1

ThepermanentstructuredcooperationreIerredtoinArticle42(6)oItheTreatyon
EuropeanUnionshallbeopentoanyMemberStatewhichundertakes,Iromthedate
oIentryintoIorceoItheTreatyoILisbon,to:

(a) proceedmoreintensivelytodevelopitsdeIencecapacitiesthroughthe
developmentoIitsnationalcontributionsandparticipation,whereappropriate,
inmultinationalIorces,inthemainEuropeanequipmentprogrammes,andin
theactivityoItheAgencyintheIieldoIdeIencecapabilitiesdevelopment,
research,acquisitionandarmaments(EuropeanDeIenceAgency),and

(b) havethecapacitytosupplyby2010atthelatest,eitheratnationallevelorasa
componentoImultinationalIorcegroups,targetedcombatunitsIorthemissions
planned,structuredatatacticallevelasabattlegroup,withsupportelements
includingtransportandlogistics,capableoIcarryingoutthetasksreIerredtoin
Article43oItheTreatyonEuropeanUnion,withinaperiodoI5to30days,in
particularinresponsetorequestsIromtheUnitedNationsOrganisation,and
whichcanbesustainedIoraninitialperiodoI30daysandbeextendeduptoat
least120days.

Article 2

ToachievetheobjectiveslaiddowninArticle1,MemberStatesparticipatingin
permanentstructuredcooperationshallundertaketo:

(a) cooperate,asIromtheentryintoIorceoItheTreatyoILisbon,withaviewto
achievingapprovedobjectivesconcerningtheleveloIinvestmentexpenditure
ondeIenceequipment,andregularlyreviewtheseobjectives,inthelightoIthe
securityenvironmentandoItheUnionsinternationalresponsibilities;

(b) bringtheirdeIenceapparatusintolinewitheachotherasIaraspossible,
particularlybyharmonisingtheidentiIicationoItheirmilitaryneeds,bypooling
306

and,whereappropriate,specialisingtheirdeIencemeansandcapabilities,and
byencouragingcooperationintheIieldsoItrainingandlogistics;

(c) takeconcretemeasurestoenhancetheavailability,interoperability,Ilexibility
anddeployabilityoItheirIorces,inparticularbyidentiIyingcommonobjectives
regardingthecommitmentoIIorces,includingpossiblyreviewingtheirnational
decision-makingprocedures;

(d) worktogethertoensurethattheytakethenecessarymeasurestomakegood,
includingthroughmultinationalapproaches,andwithoutprejudiceto
undertakingsinthisregardwithintheNorthAtlanticTreatyOrganisation,the
shortIallsperceivedintheIrameworkoItheCapabilityDevelopment
Mechanism;

(e) takepart,whereappropriate,inthedevelopmentoImajorjointorEuropean
equipmentprogrammesintheIrameworkoItheEuropeanDeIenceAgency.

Article 3

TheEuropeanDeIenceAgencyshallcontributetotheregularassessmentoI
participatingMemberStatescontributionswithregardtocapabilities,inparticular
contributionsmadeinaccordancewiththecriteriatobeestablished,interalia,onthe
basisoIArticle2,andshallreportthereonatleastonceayear.Theassessmentmay
serveasabasisIorCouncilrecommendationsanddecisionsadoptedinaccordance
withArticle46oItheTreatyonEuropeanUnion.
307

PROTOCOL

ONARTICLE42(2)OFTHETREATYONEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,

BEARING IN MIND the need to implement Iully the provisions oI Article 42(2),
secondsubparagraph,oItheTreatyonEuropeanUnion,

BEARINGINMINDthatthepolicyoItheUnioninaccordancewithArticle42shall
not prejudice the speciIic character oI the security and deIence policy oI certain
MemberStatesandshallrespecttheobligationsoIcertainMemberStates,whichsee
their common deIence realised in NATO, under the North Atlantic Treaty and be
compatible with the common security and deIence policy established within that
Iramework,

HAVE AGREED UPON the Iollowing provision, which shall be annexed to the
Treaty on European Union and to the Treaty on the Functioning oI the European
Union:

The European Union shall draw up, together with the Western European Union,
arrangementsIorenhancedcooperationbetweenthem

308

PROTOCOL

RELATINGTOARTICLE6(2)OFTHETREATYONEUROPEANUNIONON
THEACCESSIONOFTHEUNIONTOTHEEUROPEANCONVENTIONON
THEPROTECTIONOFHUMANRIGHTSANDFUNDAMENTALFREEDOMS

THEHIGHCONTRACTINGPARTIES,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union:

Article 1

TheagreementrelatingtotheaccessionoItheUniontotheEuropeanConventionon
theProtectionoIHumanRightsandFundamentalFreedoms(hereinaIterreIerredtoas
theEuropeanConvention)providedIorinArticle6(2)oItheTreatyonEuropean
UnionshallmakeprovisionIorpreservingthespeciIiccharacteristicsoItheUnion
andUnionlaw,inparticularwithregardto:

(a) thespeciIicarrangementsIortheUnionspossibleparticipationinthecontrol
bodiesoItheEuropeanConvention;

(b) themechanismsnecessarytoensurethatproceedingsbynon-MemberStates
andindividualapplicationsarecorrectlyaddressedtoMemberStatesand/orthe
Unionasappropriate.

Article 2

TheagreementreIerredtoinArticle1shallensurethataccessionoItheUnionshall
notaIIectthecompetencesoItheUnionorthepowersoIitsinstitutions.Itshall
ensurethatnothingthereinaIIectsthesituationoIMemberStatesinrelationtothe
EuropeanConvention,inparticularinrelationtotheProtocolsthereto,measures
takenbyMemberStatesderogatingIromtheEuropeanConventioninaccordance
withArticle15thereoIandreservationstotheEuropeanConventionmadeby
MemberStatesinaccordancewithArticle57thereoI.

Article 3

NothingintheagreementreIerredtoinArticle1shallaIIectArticle344oItheTreaty
ontheFunctioningoItheEuropeanUnion.

309

PROTOCOL

ONTHEAPPLICATIONOFTHECHARTEROFFUNDAMENTALRIGHTSOF
THEEUROPEANUNIONTOPOLANDANDTOTHEUNITEDKINGDOM

THEHIGHCONTRACTINGPARTIES,

WHEREAS in Article 6 oI the Treaty on European Union, the Union recognises the
rights, Ireedoms and principles set out in the Charter oI Fundamental Rights oI the
EuropeanUnion;

WHEREAStheCharteristobeappliedinstrictaccordancewiththeprovisionsoIthe
aIorementionedArticle6andTitleVIIoItheCharteritselI;

WHEREAS the aIorementioned Article 6 requires the Charter to be applied and

interpretedbythecourtsoIPolandandoItheUnitedKingdomstrictlyinaccordance
withtheexplanationsreIerredtointhatArticle;

WHEREAStheChartercontainsbothrightsandprinciples;

WHEREAS the Charter contains both provisions which are civil and political in
characterandthosewhichareeconomicandsocialincharacter;

WHEREAS the Charter reaIIirms the rights, Ireedoms and principles recognised in
the Union and makes those rights more visible, but does not create new rights or
principles;

RECALLINGtheobligationsdevolvinguponPolandandtheUnitedKingdomunder
theTreatyonEuropeanUnion,theTreatyontheFunctioningoItheEuropeanUnion,
andUnionlawgenerally;

NOTINGthewishoIPolandandtheUnitedKingdomtoclariIycertainaspectsoIthe
applicationoItheCharter;

DESIROUS thereIore oI clariIying the application oI the Charter in relation to the

laws and administrative action oI Poland and oI the United Kingdom and oI its
justiciabilitywithinPolandandwithintheUnitedKingdom;

REAFFIRMING that reIerences in this Protocol to the operation oI speciIic

provisions oI the Charter are strictly without prejudice to the operation oI other
provisionsoItheCharter;

REAFFIRMING that this Protocol is without prejudice to the application oI the

ChartertootherMemberStates;

310

REAFFIRMINGthatthisProtocoliswithoutprejudicetootherobligationsdevolving
upon Poland and the United Kingdom under the Treaty on European Union, the
TreatyontheFunctioningoItheEuropeanUnion,andUnionlawgenerally,

HAVE AGREED UPON the Iollowing provisions, which shall be annexed to the
Treaty on European Union and to the Treaty on the Functioning oI the European
Union:

Article 1

1. The Charter does not extend the ability oI the Court oI Justice oI the European
Union, or any court or tribunal oI Poland or oI the United Kingdom, to Iind that the
laws,regulationsoradministrativeprovisions,practicesoractionoIPolandoroIthe
United Kingdom are inconsistent with the Iundamental rights, Ireedoms and
principlesthatitreaIIirms.

2. In particular, and Ior the avoidance oI doubt, nothing in TitleIV oI the Charter
createsjusticiablerightsapplicabletoPolandortheUnitedKingdomexceptinsoIar
asPolandortheUnitedKingdomhasprovidedIorsuchrightsinitsnationallaw.

Article 2

To the extent that a provision oI the Charter reIers to national laws and practices, it
shall only apply to Poland or the United Kingdom to the extent that the rights or
principles that it contains are recognised in the law or practices oI Poland or oI the
UnitedKingdom.
311

PROTOCOL

ONTHEINTERNALMARKETANDCOMPETITION

THEHIGHCONTRACTINGPARTIES,

CONSIDERING that the internal market as set out in Article 3 oI the Treaty on
EuropeanUnionincludesasystemensuringthatcompetitionisnotdistorted,

HAVEAGREEDthat:

to this end, the Union shall, iI necessary, take action under the provisions oI the
Treaties, including under Article 352 oI the Treaty on the Functioning oI the
EuropeanUnion.

ThisprotocolshallbeannexedtotheTreatyonEuropeanUnionandtotheTreatyon
theFunctioningoItheEuropeanUnion.

312

PROTOCOL

ONTHEEXERCISEOFSHAREDCOMPETENCE

THEHIGHCONTRACTINGPARTIES

HAVE AGREED UPON the Iollowing provisions, which shall be annexed to the
Treaty on European Union and to the Treaty on the Functioning oI the European
Union:

Sole Article

WithreIerencetoArticle2oItheTreatyontheFunctioningoItheEuropeanUnion
onsharedcompetence,whentheUnionhastakenactioninacertainarea,thescopeoI
thisexerciseoIcompetenceonlycoversthoseelementsgovernedbytheUnionactin
questionandthereIoredoesnotcoverthewholearea.

313

PROTOCOL

ONSERVICESOFGENERALINTEREST

THEHIGHCONTRACTINGPARTIES,

WISHINGtoemphasisetheimportanceoIservicesoIgeneralinterest,

HAVEAGREEDUPONtheIollowinginterpretativeprovisions,whichshallbe
annexedtotheTreatyonEuropeanUnionandtotheTreatyontheFunctioningoIthe
EuropeanUnion:

Article 1

ThesharedvaluesoItheUnioninrespectoIservicesoIgeneraleconomicinterest
withinthemeaningoIArticle14oItheTreatyontheFunctioningoItheEuropean
Unionincludeinparticular:

theessentialroleandthewidediscretionoInational,
regionalandlocalauthoritiesinproviding,commissioningandorganising
servicesoIgeneraleconomicinterestascloselyaspossibletotheneedsoIthe
users;

thediversitybetweenvariousservicesoIgeneraleconomic
interestandthediIIerencesintheneedsandpreIerencesoIusersthatmayresult
IromdiIIerentgeographical,socialorculturalsituations;

ahighleveloIquality,saIetyandaIIordability,equal
treatmentandthepromotionoIuniversalaccessandoIuserrights.

Article 2

TheprovisionsoItheTreatiesdonotaIIectinanywaythecompetenceoIMember
Statestoprovide,commissionandorganisenon-economicservicesoIgeneralinterest.
314

PROTOCOL

ONTHESYSTEMOFPUBLICSERVICEBROADCASTINGINTHEMEMBER
STATES

THEHIGHCONTRACTINGPARTIES,

CONSIDERINGthatthesystemoIpublicbroadcastingintheMemberStatesis
directlyrelatedtothedemocratic,socialandculturalneedsoIeachsocietyandtothe
needtopreservemediapluralism;
HAVEAGREEDUPONtheIollowinginterpretiveprovisions,whichshallbe
annexedtotheTreatyonEuropeanUnionandtotheTreatyontheFunctioningoIthe
EuropeanUnion,
TheprovisionsoItheTreatiesshallbewithoutprejudicetothecompetenceoI
MemberStatestoprovideIortheIundingoIpublicservicebroadcastingandinsoIar
assuchIundingisgrantedtobroadcastingorganisationsIortheIulIilmentoIthe
publicserviceremitasconIerred,deIinedandorganisedbyeachMemberState,and
insoIarassuchIundingdoesnotaIIecttradingconditionsandcompetitioninthe
Uniontoanextentwhichwouldbecontrarytothecommoninterest,whilethe
realisationoItheremitoIthatpublicserviceshallbetakenintoaccount.
315

PROTOCOL

CONCERNINGARTICLE157OFTHETREATYONTHEFUNCTIONINGOF
THEEUROPEANUNION

THEHIGHCONTRACTINGPARTIES,
HAVEAGREEDupontheIollowingprovision,whichshallbeannexedtotheTreaty
onEuropeanUnionandtotheTreatyontheFunctioningoItheEuropeanUnion:
ForthepurposesoIArticle157oItheTreatyontheFunctioningoItheEuropean
Union,beneIitsunderoccupationalsocialsecurityschemesshallnotbeconsideredas
remunerationiIandinsoIarastheyareattributabletoperiodsoIemploymentpriorto
17May1990,exceptinthecaseoIworkersorthoseclaimingunderthemwhohave
beIorethatdateinitiatedlegalproceedingsorintroducedanequivalentclaimunder
theapplicablenationallaw.
316

PROTOCOL

ONECONOMIC,SOCIALANDTERRITORIALCOHESION

THEHIGHCONTRACTINGPARTIES,
RECALLINGthatArticle3oItheTreatyonEuropeanUnionincludestheobjective
oIpromotingeconomic,socialandterritorialcohesionandsolidaritybetween
MemberStatesandthatthesaidcohesionIiguresamongtheareasoIshared
competenceoItheUnionlistedinArticle4(2)(c)oItheTreatyontheFunctioningoI
theEuropeanUnion;
RECALLINGthattheprovisionsoIPartThree,TitleXVIII,oneconomic,socialand
territorialcohesionasawholeprovidethelegalbasisIorconsolidatingandIurther
developingtheUnionsactionintheIieldoIeconomic,socialandterritorialcohesion,
includingthecreationoIanewIund,
RECALLINGthattheprovisionsoIArticle177oItheTreatyontheFunctioningoI
theEuropeanUnionenvisagesettingupaCohesionFund;
NOTINGthattheEuropeanInvestmentBankislendinglargeandincreasingamounts
IorthebeneIitoIthepoorerregions,
NOTINGthedesireIorgreaterIlexibilityinthearrangementsIorallocationIromthe
StructuralFunds,
NOTINGthedesireIormodulationoIthelevelsoIUnionparticipationin
programmesandprojectsincertaincountries,
NOTINGtheproposaltotakegreateraccountoItherelativeprosperityoIMember
StatesinthesystemoIownresources,
REAFFIRMthatthepromotionoIeconomic,socialandterritorialcohesionisvitalto
theIulldevelopmentandenduringsuccessoItheUnion;
REAFFIRMtheirconvictionthattheStructuralFundsshouldcontinuetoplaya
considerablepartintheachievementoIUnionobjectivesintheIieldoIcohesion;
REAFFIRMtheirconvictionthattheEuropeanInvestmentBankshouldcontinueto
devotethemajorityoIitsresourcestothepromotionoIeconomic,socialand
territorialcohesion,anddeclaretheirwillingnesstoreviewthecapitalneedsoIthe
EuropeanInvestmentBankassoonasthisisnecessaryIorthatpurpose;

AGREEthattheCohesionFundwillprovideUnionIinancialcontributionsto
projectsintheIieldsoIenvironmentandtrans-EuropeannetworksinMemberStates
withapercapitaGNPoIlessthan90oItheUnionaveragewhichhavea
programmeleadingtotheIulIilmentoItheconditionsoIeconomicconvergenceasset
outinArticle126;

317

DECLAREtheirintentionoIallowingagreatermarginoIIlexibilityinallocating
IinancingIromtheStructuralFundstospeciIicneedsnotcoveredunderthepresent
StructuralFundsregulations;
DECLAREtheirwillingnesstomodulatethelevelsoIUnionparticipationinthe
contextoIprogrammesandprojectsoItheStructuralFunds,withaviewtoavoiding
excessiveincreasesinbudgetaryexpenditureinthelessprosperousMemberStates;
RECOGNIZEtheneedtomonitorregularlytheprogressmadetowardsachieving
economic,socialandterritorialcohesionandstatetheirwillingnesstostudyall
necessarymeasuresinthisrespect;
DECLAREtheirintentionoItakinggreateraccountoIthecontributivecapacityoI
individualMemberStatesinthesystemoIownresources,andoIexaminingmeansoI
correcting,IorthelessprosperousMemberStates,regressiveelementsexistinginthe
presentownresourcessystem;
AGREEtoannexthisProtocoltotheTreatyontheEuropeanUnionandtheTreatyon
theFunctioningoItheEuropeanUnion.
318

PROTOCOL

ONARTICLE40.3.3OFTHECONSTITUTIONOFIRELAND

THEHIGHCONTRACTINGPARTIES,

HAVEAGREEDupontheIollowingprovisions,whichshallbeannexedtotheTreaty
onEuropeanUnionandtotheTreatyontheFunctioningoItheEuropeanUnionand
totheTreatyestablishingtheEuropeanAtomicEnergyCommunity;

NothingintheTreaties,orintheTreatyestablishingtheEuropeanAtomicEnergy
Community,orintheTreatiesorActsmodiIyingorsupplementingthoseTreaties,
shallaIIecttheapplicationinIrelandoIArticle40.3.3oItheConstitutionoIIreland.
319

PROTOCOL

ONTHEFINANCIALCONSEQUENCESOFTHEEXPIRYOFTHEECSC
TREATYANDONTHERESEARCHFUNDFORCOALANDSTEEL

THEHIGHCONTRACTINGPARTIES,
RECALLINGthatallassetsandliabilitiesoItheEuropeanCoalandSteel
Community,astheyexistedon23July2002,weretransIerredtotheEuropean
Communityon24July2002;
TAKINGACCOUNToIthedesiretousetheseIundsIorresearchinsectorsrelatedto
thecoalandsteelindustryandthereIorethenecessitytoprovideIorcertainspecial
rulesinthisregard,
HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union:

Article 1

1.ThenetworthoItheseassetsandliabilities,astheyappearinthebalancesheetoI
theECSCoI23July2002,subjecttoanyincreaseordecreasewhichmayoccurasa
resultoItheliquidationoperations,shallbeconsideredasassetsintendedIorresearch
inthesectorsrelatedtothecoalandsteelindustry,reIerredtoastheECSCin
liquidation.OncompletionoItheliquidationtheyshallbereIerredtoastheassetsoI
theResearchFundIorCoalandSteel.
2..TherevenueIromtheseassets,reIerredtoastheResearchFundIorCoaland
Steel,shallbeusedexclusivelyIorresearch,outsidetheresearchIramework
programme,inthesectorsrelatedtothecoalandsteelindustryinaccordancewiththe
provisionsoIthisProtocolandoIactsadoptedonthebasishereoI.

Article 2

TheCouncil,actinginaccordancewithaspeciallegislativeprocedureandaIter
obtainingtheconsentoItheEuropeanParliament,shalladoptallthenecessary
provisionsIortheimplementationoIthisProtocol,includingessentialprinciples.
TheCouncilshalladopt,onaproposalIromtheCommissionandaIterconsultingthe
EuropeanParliament,measuresestablishingmultiannualIinancialguidelinesIor
managingtheassetsoItheResearchFundIorCoalandSteelandtechnicalguidelines
IortheresearchprogrammeoItheResearchFundIorCoalandSteel.

320

Article 3

ExceptasotherwiseprovidedinthisProtocolandintheactsadoptedonthebasis
hereoI,theprovisionsoItheTreatiesshallapply.

321


PROTOCOL

ONTHEDECISIONOFTHECOUNCILRELATINGTOTHE
IMPLEMENTATIONOFARTICLE16(4)OFTHETREATYONEUROPEAN
UNIONANDARTICLE238(2)OFTHETREATYONTHEFUNCTIONINGOF
THEEUROPEANUNIONBETWEEN1NOVEMBER2014AND31MARCH
2017ONTHEONEHAND,ANDASFROM1APRIL2017ONTHEOTHER

THEHIGHCONTRACTINGPARTIES,

TAKINGINTOACCOUNTtheIundamentalimportancethatagreeingonthe
DecisionoItheCouncilrelatingtotheimplementationoIArticle16(4)oItheTreaty
onEuropeanUnionandArticle238(2)oItheTreatyontheFunctioningoIthe
EuropeanUnionbetween1November2014and31March2017ontheonehand,and
asIrom1April2017ontheother(hereinaItertheDecision),hadwhenapproving
theTreatyoILisbon,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnionandtotheTreatyontheFunctioningoItheEuropean
Union:

Sole Article

BeIoretheexaminationbytheCounciloIanydraItwhichwouldaimeitherat
amendingorabrogatingtheDecisionoranyoIitsprovisions,oratmodiIying
indirectlyitsscopeoritsmeaningthroughthemodiIicationoIanotherlegalactoIthe
Union,theEuropeanCouncilshallholdapreliminarydeliberationonthesaiddraIt,
actingbyconsensusinaccordancewithArticle15(4)oItheTreatyonEuropean
Union.
322

PROTOCOL

ONTRANSITIONALPROVISIONS

THEHIGHCONTRACTINGPARTIES,

WHEREAS,inordertoorganisethetransitionIromtheinstitutionalprovisionsoIthe
TreatiesapplicablepriortotheentryintoIorceoItheTreatyoILisbontothe
provisionscontainedinthatTreaty,itisnecessarytolaydowntransitionalprovisions,

HAVEAGREEDUPONtheIollowingprovisions,whichshallbeannexedtothe
TreatyonEuropeanUnion,totheTreatyontheFunctioningoItheEuropeanUnion
andtotheTreatyestablishingtheEuropeanAtomicEnergyCommunity:

Article 1

InthisProtocol,thewordstheTreatiesshallmeantheTreatyonEuropeanUnion,
theTreatyontheFunctioningoItheEuropeanUnionandtheTreatyestablishingthe
EuropeanAtomicEnergyCommunity.

TITLEI

PROVISIONSCONCERNINGTHEEUROPEANPARLIAMENT

Article 2

InaccordancewiththesecondsubparagraphoIArticle14(2)oItheTreatyon
EuropeanUnion,theEuropeanCouncilshalladoptadecisiondeterminingthe
compositionoItheEuropeanParliamentingoodtimebeIorethe2009European
Parliamentelections.

UntiltheendoIthe2004-2009parliamentaryterm,thecompositionandthenumber
oIrepresentativeselectedtotheEuropeanParliamentshallremainthesameasonthe
dateoItheentryintoIorceoItheTreatyoILisbon.

TITLEII

PROVISIONSCONCERNINGTHEQUALIFIEDMAJORITY

Article 3
323

1. InaccordancewithArticle16(4)oItheTreatyonEuropeanUnion,the
provisionsoIthatparagraphandoIArticle238(2)oItheTreatyontheFunctioningoI
theEuropeanUnionrelatingtothedeIinitionoIthequaliIiedmajorityintheEuropean
CouncilandtheCouncilshalltakeeIIecton1November2014.

2. Between1November2014and31March2017,whenanactistobeadopted
byqualiIiedmajority,amemberoItheCouncilmayrequestthatitbeadoptedin
accordancewiththequaliIiedmajorityasdeIinedinparagraph3.Inthatcase,
paragraphs3and4shallapply.

3. Until31October2014,theIollowingprovisionsshallremaininIorce,without
prejudicetothesecondsubparagraphoIArticle235(1)oItheTreatyonthe
FunctioningoItheEuropeanUnion.

ForactsoItheEuropeanCouncilandoItheCouncilrequiringaqualiIiedmajority,
membersvotesshallbeweightedasIollows:

Belgium 12
Bulgaria 10
CzechRepublic 12
Denmark 7
Germany 29
Estonia 4
Ireland 7
Greece 12
Spain 27
France 29
Italy 29
Cyprus 4
Latvia 4
Lithuania 7
Luxembourg 4
Hungary 12
Malta 3
Netherlands 13
Austria 10
Poland 27
Portugal 12
Romania 14
Slovenia 4
Slovakia 7
Finland 7
Sweden 10
UnitedKingdom 29

ActsshallbeadoptediIthereareatleast255votesinIavourrepresentingamajority
oIthememberswhere,undertheTreaties,theymustbeadoptedonaproposalIrom
theCommission.InothercasesdecisionsshallbeadoptediIthereareatleast
255votesinIavourrepresentingatleasttwothirdsoIthemembers.
324

AmemberoItheEuropeanCouncilortheCouncilmayrequestthat,whereanactis
adoptedbytheEuropeanCouncilortheCouncilbyaqualiIiedmajority,acheckis
madetoensurethattheMemberStatescomprisingthequaliIiedmajorityrepresentat
least62oIthetotalpopulationoItheUnion.IIthatprovesnottobethecase,the
actshallnotbeadopted.

4. Until31October2014,thequaliIiedmajorityshall,incaseswhere,underthe
Treaties,notallthemembersoItheCouncilparticipateinvoting,namelyinthecases
wherereIerenceismadetothequaliIiedmajorityasdeIinedinArticle238(3)oIthe
TreatyontheFunctioningoItheEuropeanUnion,bedeIinedasthesameproportion
oItheweightedvotesandthesameproportionoIthenumberoItheCouncilmembers
and,iIappropriate,thesamepercentageoIthepopulationoItheMemberStates
concernedaslaiddowninparagraph3oIthisArticle.

TITLEIII

PROVISIONSCONCERNINGTHECONFIGURATIONSOFTHECOUNCIL

Article 4

UntiltheentryintoIorceoIthedecisionreIerredtointheIirstsubparagraphoI
Article16(6)oItheTreatyonEuropeanUnion,theCouncilmaymeetinthe
conIigurationslaiddowninthesecondandthirdsubparagraphsoIthatparagraphand
intheotherconIigurationsonthelistestablishedbyadecisionoItheGeneralAIIairs
Council,actingbyasimplemajority.

TITLEIV

PROVISIONSCONCERNINGTHECOMMISSION,INCLUDINGTHEHIGH
REPRESENTATIVEOFTHEUNIONFORFOREIGNAFFAIRSANDSECURITY
POLICY

Article 5

ThemembersoItheCommissioninoIIiceonthedateoIentryintoIorceoItheTreaty
oILisbonshallremaininoIIiceuntiltheendoItheirtermoIoIIice.However,onthe
dayoItheappointmentoItheHighRepresentativeoItheUnionIorForeignAIIairs
andSecurityPolicy,thetermoIoIIiceoIthememberhavingthesamenationalityas
theHighRepresentativeshallend.

325

TITLEV

PROVISIONSCONCERNINGTHESECRETARY-GENERALOFTHE
COUNCIL,HIGHREPRESENTATIVEFORTHECOMMONFOREIGNAND
SECURITYPOLICY,ANDTHEDEPUTYSECRETARY-GENERALOFTHE
COUNCIL

Article 6

ThetermsoIoIIiceoItheSecretary-GeneraloItheCouncil,HighRepresentativeIor
thecommonIoreignandsecuritypolicy,andtheDeputySecretary-GeneraloIthe
CouncilshallendonthedateoIentryintoIorceoItheTreatyoILisbon.TheCouncil
shallappointaSecretary-GeneralinconIormitywithArticle240(2)oItheTreatyon
theFunctioningoItheEuropeanUnion.

TITLEVI

PROVISIONSCONCERNINGADVISORYBODIES

Article 7

UntilentryintoIorceoIthedecisionreIerredtoinArticle301oItheTreatyonthe
FunctioningoItheEuropeanUnion,theallocationoImembersoItheEconomicand
SocialCommitteeshallbeasIollows:

Belgium 12 Luxembourg 6
Bulgaria 12 Hungary 12
CzechRepublic 12 Malta 5
Denmark 9 Netherlands 12
Germany 24 Austria 12
Estonia 7 Poland 21
Ireland 9 Portugal 12
Greece 12 Romania 15
Spain 21 Slovenia 7
France 24 Slovakia 9
Italy 24 Finland 9
Cyprus 6 Sweden 12
Latvia 7 UnitedKingdom 24
Lithuania 9
326

Article 8

UntilentryintoIorceoIthedecisionreIerredtoinArticle305oItheTreatyonthe
FunctioningoItheEuropeanUnion,theallocationoImembersoItheCommitteeoI
theRegionsshallbeasIollows:

Belgium 12 Luxembourg 6
Bulgaria 12 Hungary 12
CzechRepublic 12 Malta 5
Denmark 9 Netherlands 12
Germany 24 Austria 12
Estonia 7 Poland 21
Ireland 9 Portugal 12
Greece 12 Romania 15
Spain 21 Slovenia 7
France 24 Slovakia 9
Italy 24 Finland 9
Cyprus 6 Sweden 12
Latvia 7 UnitedKingdom 24
Lithuania 9

TITLEVII

TRANSITIONALPROVISIONSCONCERNINGACTSADOPTEDONTHE
BASISOFTITLESVANDVIOFTHETREATYONEUROPEANUNION
PRIORTOTHEENTRYINTOFORCEOFTHETREATYOFLISBON

Article 9

ThelegaleIIectsoItheactsoItheinstitutions,bodies,oIIicesandagenciesoIthe
UnionadoptedonthebasisoItheTreatyonEuropeanUnionpriortotheentryinto
IorceoItheTreatyoILisbonshallbepreserveduntilthoseactsarerepealed,annulled
oramendedinimplementationoItheTreaties.Thesameshallapplytoagreements
concludedbetweenMemberStatesonthebasisoItheTreatyonEuropeanUnion.

Article 10

1. Asatransitionalmeasure,andwithrespecttoactsoItheUnionintheIieldoI
policecooperationandjudicialcooperationincriminalmatterswhichhavebeen
adoptedbeIoretheentryintoIorceoItheTreatyoILisbon,thepowersoIthe
institutionsshallbetheIollowingatthedateoIentryintoIorceoIthatTreaty:the
327

powersoItheCommissionunderArticle258oItheTreatyontheFunctioningoIthe
EuropeanUnionshallnotbeapplicableandthepowersoItheCourtoIJusticeoIthe
EuropeanUnionunderTitleVIoItheTreatyonEuropeanUnion,intheversionin
IorcebeIoretheentryintoIorceoItheTreatyoILisbon,shallremainthesame,
includingwheretheyhavebeenacceptedunderArticle35(2)oIthesaidTreatyon
EuropeanUnion.

2. TheamendmentoIanactreIerredtoinparagraph1shallentailthe
applicabilityoIthepowersoItheinstitutionsreIerredtointhatparagraphassetoutin
theTreatieswithrespecttotheamendedactIorthoseMemberStatestowhichthat
amendedactshallapply.

3. Inanycase,thetransitionalmeasurementionedinparagraph1shallceaseto
haveeIIectIiveyearsaIterthedateoIentryintoIorceoItheTreatyoILisbon.

4. AtthelatestsixmonthsbeIoretheexpiryoIthetransitionalperiodreIerredto
inparagraph3,theUnitedKingdommaynotiIytotheCouncilthatitdoesnotaccept,
withrespecttotheactsreIerredtoinparagraph1,thepowersoItheinstitutions
reIerredtoinparagraph1assetoutintheTreaties.IncasetheUnitedKingdomhas
madethatnotiIication,allactsreIerredtoinparagraph1shallceasetoapplytoitas
IromthedateoIexpiryoIthetransitionalperiodreIerredtoinparagraph3.This
subparagraphshallnotapplywithrespecttotheamendedactswhichareapplicableto
theUnitedKingdomasreIerredtoinparagraph2.

TheCouncil,actingbyaqualiIiedmajorityonaproposalIromtheCommission,shall
determinethenecessaryconsequentialandtransitionalarrangements.TheUnited
KingdomshallnotparticipateintheadoptionoIthisdecision.AqualiIiedmajorityoI
theCouncilshallbedeIinedinaccordancewithArticle238(3)(a)oItheTreatyonthe
FunctioningoItheEuropeanUnion.

TheCouncil,actingbyaqualiIiedmajorityonaproposalIromtheCommission,may
alsoadoptadecisiondeterminingthattheUnitedKingdomshallbearthedirect
Iinancialconsequences,iIany,necessarilyandunavoidablyincurredasaresultoIthe
cessationoIitsparticipationinthoseacts.

5. TheUnitedKingdommay,atanytimeaIterwards,notiIytheCounciloIits
wishtoparticipateinactswhichhaveceasedtoapplytoitpursuanttoparagraph4,
Iirstsubparagraph.Inthatcase,therelevantprovisionsoItheProtocolonthe
SchengenacquisintegratedintotheIrameworkoItheEuropeanUnionoroIthe
ProtocolonthepositionoItheUnitedKingdomandIrelandinrespectoItheareaoI
Ireedom,securityandjustice,asthecasemaybe,shallapply.ThepowersoIthe
institutionswithregardtothoseactsshallbethosesetoutintheTreaties.Whenacting
undertherelevantProtocols,theUnioninstitutionsandtheUnitedKingdomshall
seektore-establishthewidestpossiblemeasureoIparticipationoItheUnited
KingdomintheacquisoItheUnionintheareaoIIreedom,securityandjustice
withoutseriouslyaIIectingthepracticaloperabilityoIthevariouspartsthereoI,while
respectingtheircoherence.

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