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HIS MAJESTY THE KING OF THE BELGIANS, HER MAJESTY THE QUEEN OF DENMARK, THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY, THE PRESIDENT OF THE HELLENIC REPUBLIC, HIS MAJESTY THE KING OF SPAIN, THE PRESIDENT OF THE FRENCH REPUBLIC, THE COMMISSION AUTHORISED BY ARTICLE 14 OF THE CONSTITUTION OF IRELAND TO EXERCISE AND PERFORM THE POWERS AND FUNCTIONS OF THE PRESIDENT OF IRELAND, THE PRESIDENT OF THE ITALIAN REPUBLIC, HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG, HER MAJESTY THE QUEEN OF THE NETHERLANDS, THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA, THE PRESIDENT OF THE PORTUGUESE REPUBLIC, THE PRESIDENT OF THE REPUBLIC OF FINLAND, HIS MAJESTY THE KING OF SWEDEN, HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, HAVE RESOLVED to amend the Treaty on European Union, the Treaties establishing the European Communities and certain related acts, and to this end have designated as their Plenipotentiaries: HIS MAJESTY THE KING OF THE BELGIANS: Mr. Erik DERYCKE, Minister for Foreign Affairs; HER MAJESTY THE QUEEN OF DENMARK: Mr. Niels Helveg PETERSEN, Minister for Foreign Affairs; THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY: Dr. Klaus KINKEL, Federal Minister for Foreign Affairs and Deputy Federal Chancellor; THE PRESIDENT OF THE HELLENIC REPUBLIC: Mr. Theodoros PANGALOS, Minister for Foreign Affairs; HIS MAJESTY THE KING OF SPAIN: Mr. Juan Abel MATUTES, Minister for Foreign Affairs; THE PRESIDENT OF THE FRENCH REPUBLIC: Mr. Hubert VÉDRINE, Minister for Foreign Affairs; THE COMMISSION AUTHORISED BY ARTICLE 14 OF THE CONSTITUTION OF IRELAND TO EXERCISE AND PERFORM THE POWERS AND FUNCTIONS OF THE PRESIDENT OF IRELAND: Mr. Raphael P. BURKE, Minister for Foreign Affairs; THE PRESIDENT OF THE ITALIAN REPUBLIC: Mr. Lamberto DINI, Minister for Foreign Affairs; HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG: Mr. Jacques F. POOS, Deputy Prime Minister, Minister for Foreign Affairs, Foreign Trade and Cooperation; HER MAJESTY THE QUEEN OF THE NETHERLANDS: Mr. Hans VAN MIERLO, Deputy Prime Minister and Minister for Foreign Affairs; THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA: Mr. Wolfgang SCHÜSSEL, Federal Minister for Foreign Affairs and Vice Chancellor; THE PRESIDENT OF THE PORTUGUESE REPUBLIC: Mr. Jaime GAMA, Minister for Foreign Affairs; THE PRESIDENT OF THE REPUBLIC OF FINLAND: Ms. Tarja HALONEN, Minister for Foreign Affairs; HIS MAJESTY THE KING OF SWEDEN: Ms. Lena HJELM-WALLÉN, Minister for Foreign Affairs; HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: Mr. Douglas HENDERSON, Minister of State, Foreign and Commonwealth Office; WHO, having exchanged their full powers found in good and due form, HAVE AGREED AS FOLLOWS: The Treaty on European Union shall be amended in accordance with the provisions of this Article. After the third recital the following recital shall be inserted: ‘CONFIRMING their attachment to fundamental social rights as defined in the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community Charter of the Fundamental Social Rights of Workers,’ 2. The existing seventh recital shall be replaced by the following: ‘DETERMINED to promote economic and social progress for their peoples, taking into account the principle of sustainable development and within the context of the accomplishment of the internal market and of reinforced cohesion and environmental protection, and to implement policies ensuring that advances in economic integration are accompanied by parallel progress in other fields,’ 3. The existing ninth and tenth recitals shall be replaced by the following: ‘RESOLVED to implement a common foreign and security policy including the progressive framing of a common defence policy, which might lead to a common defence in accordance with the provisions of Article J.7, thereby reinforcing the European identity and its independence in order to promote peace, security and progress in Europe and in the world, RESOLVED to facilitate the free movement of persons, while ensuring the safety and security of their peoples, by establishing an area of freedom, security and justice, in accordance with the provisions of this Treaty,’ 4. In Article A the second paragraph shall be replaced by the following: ‘This Treaty marks a new stage in the process of creating an ever closer union among the peoples of Europe, in which decisions are taken as openly as possible and as closely as possible to the citizen.’ Article B shall be replaced by the following: ‘Article B The Union shall set itself the following objectives: – to promote economic and social progress and a high level of employment and to achieve balanced and sustainable development, in particular through the creation of an area without internal frontiers, through the strengthening of economic and social cohesion and through the establishment of economic and monetary union, ultimately including a single currency in accordance with the provisions of this Treaty; – to assert its identity on the international scene, in particular through the implementation of a common foreign and security policy including the progressive framing of a common defence policy, which might lead to a common defence, in accordance with the provisions of Article J.7; – to strengthen the protection of the rights and interests of the nationals of its Member States through the introduction of a citizenship of the Union; – to maintain and develop the Union as an area of freedom, security and justice, in which the free movement of persons is assured in conjunction with appropriate measures with respect to external border controls, asylum, immigration and the prevention and combating of crime; – to maintain in full the acquis communautaire and build on it with a view to considering to what extent the policies and forms of cooperation introduced by this Treaty may need to be revised with the aim of ensuring the effectiveness of the mechanisms and the institutions of the Community. The objectives of the Union shall be achieved as provided in this Treaty and in accordance with the conditions and the timetable set out therein while respecting the principle of subsidiarity as defined in Article 3b of the Treaty establishing the European Community.’ In Article C, the second paragraph shall be replaced by the following: ‘The Union shall in particular ensure the consistency of its external activities as a whole in the context of its external relations, security, economic and development policies. The Council and the Commission shall be responsible for ensuring such consistency and shall cooperate to this end. They shall ensure the implementation of these policies, each in accordance with its respective powers.’ Article E shall be replaced by the following: ‘Article E The European Parliament, the Council, the Commission, the Court of Justice and the Court of Auditors shall exercise their powers under the conditions and for the purposes provided for, on the one hand, by the provisions of the Treaties establishing the European Communities and of the subsequent Treaties and Acts modifying and supplementing them and, on the other hand, by the other provisions of this Treaty.’ Article F shall be amended as follows : (a) paragraph 1 shall be replaced by the following: ‘1. The Union is founded on the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law, principles which are common to the Member States.’; (b) the existing paragraph 3 shall become paragraph 4 and a new paragraph 3 shall be inserted as follows: ‘3. The Union shall respect the national identities of its Member States.’ The following Article shall be inserted at the end of Title I: ‘Article F.1 1. The Council, meeting in the composition of the Heads of State or Government and acting by unanimity on a proposal by one third of the Member States or by the Commission and after obtaining the assent of the European Parliament, may determine the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1), after inviting the government of the Member State in question to submit its observations. Where such a determination has been made, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the application of this Treaty to the Member State in question, including the voting rights of the representative of the government of that Member State in the Council. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons. The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken under paragraph 2 in response to changes in the situation which led to their being imposed. For the purposes of this Article, the Council shall act without taking into account the vote of the representative of the government of the Member State in question. Abstentions by members present in person or represented shall not prevent the adoption of decisions referred to in paragraph 1. A qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 148(2) of the Treaty establishing the European Community. This paragraph shall also apply in the event of voting rights being suspended pursuant to paragraph 2. For the purposes of this Article, the European Parliament shall act by a two thirds majority of the votes cast, representing a majority of its members.’ Title V shall be replaced by the following: ‘Title V PROVISIONS ON A COMMON FOREIGN AND SECURITY POLICY Article J.1 1. The Union shall define and implement a common foreign and security policy covering all areas of foreign and security policy, the objectives of which shall be: – to safeguard the common values, fundamental interests, independence and integrity of the Union in conformity with the principles of the United Nations Charter; – to strengthen the security of the Union in all ways; – to preserve peace and strengthen international security, in accordance with the principles of the United Nations Charter, as well as the principles of the Helsinki Final Act and the objectives of the Paris Charter, including those on external borders; – to promote international cooperation; – to develop and consolidate democracy and the rule of law, and respect for human rights and fundamental freedoms. The Member States shall support the Union’s external and security policy actively and unreservedly in a spirit of loyalty and mutual solidarity. The Member States shall work together to enhance and develop their mutual political solidarity. They shall refrain from any action which is contrary to the interests of the Union or likely to impair its effectiveness as a cohesive force in international relations. The Council shall ensure that these principles are complied with. Article J.2 The Union shall pursue the objectives set out in Article J.1 by: – defining the principles of and general guidelines for the common foreign and security policy; – deciding on common strategies; – adopting joint actions; – adopting common positions; – strengthening systematic cooperation between Member States in the conduct of policy. Article J.3 1. The European Council shall define the principles of and general guidelines for the common foreign and security policy, including for matters with defence implications. The European Council shall decide on common strategies to be implemented by the Union in areas where the Member States have important interests in common. Common strategies shall set out their objectives, duration and the means to be made available by the Union and the Member States. The Council shall take the decisions necessary for defining and implementing the common foreign and security policy on the basis of the general guidelines defined by the European Council. The Council shall recommend common strategies to the European Council and shall implement them, in particular by adopting joint actions and common positions. The Council shall ensure the unity, consistency and effectiveness of action by the Union. Article J.4 1. The Council shall adopt joint actions. Joint actions shall address specific situations where operational action by the Union is deemed to be required. They shall lay down their objectives, scope, the means to be made available to the Union, if necessary their duration, and the conditions for their implementation. If there is a change in circumstances having a substantial effect on a question subject to joint action, the Council shall review the principles and objectives of that action and take the necessary decisions. As long as the Council has not acted, the joint action shall stand. Joint actions shall commit the Member States in the positions they adopt and in the conduct of their activity. The Council may request the Commission to submit to it any appropriate proposals relating to the common foreign and security policy to ensure the implementation of a joint action. Whenever there is any plan to adopt a national position or take national action pursuant to a joint action, information shall be provided in time to allow, if necessary, for prior consultations within the Council. The obligation to provide prior information shall not apply to measures which are merely a national transposition of Council decisions. In cases of imperative need arising from changes in the situation and failing a Council decision, Member States may take the necessary measures as a matter of urgency having regard to the general objectives of the joint action. The Member State concerned shall inform the Council immediately of any such measures. Should there be any major difficulties in implementing a joint action, a Member State shall refer them to the Council which shall discuss them and seek appropriate solutions. Such solutions shall not run counter to the objectives of the joint action or impair its effectiveness. Article J.5 The Council shall adopt common positions. Common positions shall define the approach of the Union to a particular matter of a geographical or thematic nature. Member States shall ensure that their national policies conform to the common positions. Article J.6 Member States shall inform and consult one another within the Council on any matter of foreign and security policy of general interest in order to ensure that the Union’s influence is exerted as effectively as possible by means of concerted and convergent action. Article J.7 1. The common foreign and security policy shall include all questions relating to the security of the Union, including the progressive framing of a common defence policy, in accordance with the second subparagraph, which might lead to a common defence, should the European Council so decide. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements. The Western European Union (WEU) is an integral part of the development of the Union providing the Union with access to an operational capability notably in the context of paragraph 2. It supports the Union in framing the defence aspects of the common foreign and security policy as set out in this Article. The Union shall accordingly foster closer institutional relations with the WEU with a view to the possibility of the integration of the WEU into the Union, should the European Council so decide. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements. The policy of the Union in accordance with this Article shall not prejudice the specific character of the security and defence policy of certain Member States and shall respect the obligations of certain Member States, which see their common defence realised in the North Atlantic Treaty Organisation (NATO), under the North Atlantic Treaty and be compatible with the common security and defence policy established within that framework. The progressive framing of a common defence policy will be supported, as Member States consider appropriate, by cooperation between them in the field of armaments. Questions referred to in this Article shall include humanitarian and rescue tasks, peace-keeping tasks and tasks of combat forces in crisis management, including peacemaking. The Union will avail itself of the WEU to elaborate and implement decisions and actions of the Union which have defence implications. The competence of the European Council to establish guidelines in accordance with Article J.3 shall also obtain in respect of the WEU for those matters for which the Union avails itself of the WEU. When the Union avails itself of the WEU to elaborate and implement decisions of the Union on the tasks referred to in paragraph 2 all Member States of the Union shall be entitled to participate fully in the tasks in question. The Council, in agreement with the institutions of the WEU, shall adopt the necessary practical arrangements to allow all Member States contributing to the tasks in question to participate fully and on an equal footing in planning and decision taking in the WEU. Decisions having defence implications dealt with under this paragraph shall be taken without prejudice to the policies and obligations referred to in paragraph 1, third subparagraph. The provisions of this Article shall not prevent the development of closer cooperation between two or more Member States on a bilateral level, in the framework of the WEU and the Atlantic Alliance, provided such cooperation does not run counter to or impede that provided for in this Title. With a view to furthering the objectives of this Article, the provisions of this Article will be reviewed in accordance with Article N. Article J.8 1. The Presidency shall represent the Union in matters coming within the common foreign and security policy. The Presidency shall be responsible for the implementation of decisions taken under this Title; in that capacity it shall in principle express the position of the Union in international organisations and international conferences. The Presidency shall be assisted by the Secretary-General of the Council who shall exercise the function of High Representative for the common foreign and security policy. The Commission shall be fully associated in the tasks referred to in paragraphs 1 and 2. The Presidency shall be assisted in those tasks if need be by the next Member State to hold the Presidency. The Council may, whenever it deems it necessary, appoint a special representative with a mandate in relation to particular policy issues. Article J.9 1. Member States shall coordinate their action in international organisations and at international conferences. They shall uphold the common positions in such fora. In international organisations and at international conferences where not all the Member States participate, those which do take part shall uphold the common positions. Without prejudice to paragraph 1 and Article J.4(3), Member States represented in international organisations or international conferences where not all the Member States participate shall keep the latter informed of any matter of common interest. Member States which are also members of the United Nations Security Council will concert and keep the other Member States fully informed. Member States which are permanent members of the Security Council will, in the execution of their functions, ensure the defence of the positions and the interests of the Union, without prejudice to their responsibilities under the provisions of the United Nations Charter. Article J.10 The diplomatic and consular missions of the Member States and the Commission Delegations in third countries and international conferences, and their representations to international organisations, shall cooperate in ensuring that the common positions and joint actions adopted by the Council are complied with and implemented. They shall step up cooperation by exchanging information, carrying out joint assessments and contributing to the implementation of the provisions referred to in Article 8c of the Treaty establishing the European Community. Article J.11 The Presidency shall consult the European Parliament on the main aspects and the basic choices of the common foreign and security policy and shall ensure that the views of the European Parliament are duly taken into consideration. The European Parliament shall be kept regularly informed by the Presidency and the Commission of the development of the Union’s foreign and security policy. The European Parliament may ask questions of the Council or make recommendations to it. It shall hold an annual debate on progress in implementing the common foreign and security policy. Article J.12 1. Any Member State or the Commission may refer to the Council any questions relating to the common foreign and security policy and may submit proposals to the Council. In cases requiring a rapid decision, the Presidency, of its own motion, or at the request of the Commission or a Member State, shall convene an extraordinary Council meeting within forty-eight hours or, in an emergency, within a shorter period. Article J.13 1. Decisions under this Title shall be taken by the Council acting unanimously. Abstentions by members present in person or represented shall not prevent the adoption of such decisions. When abstaining in a vote, any member of the Council may qualify its abstention by making a formal declaration under the present subparagraph. In that case, it shall not be obliged to apply the decision, but shall accept that the decision commits the Union. In a spirit of mutual solidarity, the Member State concerned shall refrain from any action likely to conflict with or impede Union action based on that decision and the other Member States shall respect its position. If the members of the Council qualifying their abstention in this way represent more than one third of the votes weighted in accordance with Article 148(2) of the Treaty establishing the European Community, the decision shall not be ad opted. By derogation from the provisions of paragraph 1, the Council shall act by qualified majority: – when adopting joint actions, common positions or taking any other decision on the basis of a common strategy; – when adopting any decision implementing a joint action or a common position. If a member of the Council declares that, for important and stated reasons of national policy, it intends to oppose the adoption of a decision to be taken by qualified majority, a vote shall not be taken. The Council may, acting by a qualified majority, request that the matter be referred to the European Council for decision by unanimity. The votes of the members of the Council shall be weighted in accordance with Article 148(2) of the Treaty establishing the European Community. For their adoption, decisions shall require at least 62 votes in favour, cast by at least 10 members. This paragraph shall not apply to decisions having military or defence implications. For procedural questions, the Council shall act by a majority of its members. Article J.14 When it is necessary to conclude an agreement with one or more States or international organisations in implementation of this Title, the Council, acting unanimously, may authorise the Presidency, assisted by the Commission as appropriate, to open negotiations to that effect. Such agreements shall be concluded by the Council acting unanimously on a recommendation from the Presidency. No agreement shall be binding on a Member State whose representative in the Council states that it has to comply with the requirements of its own constitutional procedure; the other members of the Council may agree that the agreement shall apply provisionally to them. The provisions of this Article shall also apply to matters falling under Title VI. Article J.15 Without prejudice to Article 151 of the Treaty establishing the European Community, a Political Committee shall monitor the international situation in the areas covered by the common foreign and security policy and contribute to the definition of policies by delivering opinions to the Council at the request of the Council or on its own initiative. It shall also monitor the implementation of agreed policies, without prejudice to the responsibility of the Presidency and the Commission. Article J.16 The Secretary-General of the Council, High Representative for the common foreign and security policy, shall assist the Council in matters coming within the scope of the common foreign and security policy, in particular through contributing to the formulation, preparation and implementation of policy decisions, and, when appropriate and acting on behalf of the Council at the request of the Presidency, through conducting political dialogue with third parties. Article J.17 The Commission shall be fully associated with the work carried out in the common foreign and security policy field. Article J.18 1. Articles 137, 138, 139 to 142, 146, 147, 150 to 153, 157 to 163, 191a and 217 of the Treaty establishing the European Community shall apply to the provisions relating to the areas referred to in this Title. Administrative expenditure which the provisions relating to the areas referred to in this Title entail for the institutions shall be charged to the budget of the European Communities. Operational expenditure to which the implementation of those provisions gives rise shall also be charged to the budget of the European Communities, except for such expenditure arising from operations having military or defence implications and cases where the Council acting unanimously decides otherwise. In cases where expenditure is not charged to the budget of the European Communities it shall be charged to the Member States in accordance with the gross national product scale, unless the Council acting unanimously decides otherwise. As for expenditure arising from operations having military or defence implications, Member States whose representatives in the Council have made a formal declaration under Article J.13(1), second subparagraph, shall not be obliged to contribute to the financing thereof. The budgetary procedure laid down in the Treaty establishing the European Community shall apply to the expenditure charged to the budget of the European Communities.’ Title VI shall be replaced by the following: ‘Title VI PROVISIONS ON POLICE AND JUDICIAL COOPERATION IN CRIMINAL MATTERS Article K.1 Without prejudice to the powers of the European Community, the Union’s objective shall be to provide citizens with a high level of safety within an area of freedom, security and justice by developing common action among the Member States in the fields of police and judicial cooperation in criminal matters and by preventing and combating racism and xenophobia. That objective shall be achieved by preventing and combating crime, organised or otherwise, in particular terrorism, trafficking in persons and offences against children, illicit drug trafficking and illicit arms trafficking, corruption and fraud, through: – closer cooperation between police forces, customs authorities and other competent authorities in the Member States, both directly and through the European Police Office (Europol), in accordance with the provisions of Articles K.2 and K.4; – closer cooperation between judicial and other competent authorities of the Member States in accordance with the provisions of Articles K.3(a) to (d) and K.4; – approximation, where necessary, of rules on criminal matters in the Member States, in accordance with the provisions of Article K.3(e). Article K.2 1. Common action in the field of police cooperation shall include: (a) operational cooperation between the competent authorities, including the police, customs and other specialised law enforcement services of the Member States in relation to the prevention, detection and investigation of criminal offences; (b) the collection, storage, processing, analysis and exchange of relevant information, including information held by law enforcement services on reports on suspicious financial transactions, in particular through Europol, subject to appropriate provisions on the protection of personal data; (c) cooperation and joint initiatives in training, the exchange of liaison officers, secondments, the use of equipment, and forensic research; (d) the common evaluation of particular investigative techniques in relation to the detection of serious forms of organised crime. The Council shall promote cooperation through Europol and shall in particular, within a period of five years after the date of entry into force of the Treaty of Amsterdam: (a) enable Europol to facilitate and support the preparation, and to encourage the coordination and carrying out, of specific investigative actions by the competent authorities of the Member States, including operational actions of joint teams comprising representatives of Europol in a support capacity; (b) adopt measures allowing Europol to ask the competent authorities of the Member States to conduct and coordinate their investigations in specific cases and to develop specific expertise which may be put at the disposal of Member States to assist them in investigating cases of organised crime; (c) promote liaison arrangements between prosecuting/investigating officials specialising in the fight against organised crime in close cooperation with Europol; (d) establish a research, documentation and statistical network on cross-border crime. Article K.3 Common action on judicial cooperation in criminal matters shall include: (a) facilitating and accelerating cooperati on between competent ministries and judicial or equivalent authorities of the Member States in relation to proceedings and the enforcement of decisions; (b) facilitating extradition between Member States; (c) ensuring compatibility in rules applicable in the Member States, as may be necessary to improve such cooperation; (d) preventing conflicts of jurisdiction between Member States; (e) progressively adopting measures establishing minimum rules relating to the constituent elements of criminal acts and to penalties in the fields of organised crime, terrorism and illicit drug trafficking. Article K.4 The Council shall lay down the conditions and limitations under which the competent authorities referred to in Articles K.2 and K.3 may operate in the territory of another Member State in liaison and in agreement with the authorities of that State. Article K.5 This Title shall not affect the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security. Article K.6 1. In the areas referred to in this Title, Member States shall inform and consult one another within the Council with a view to coordinating their action. To that end, they shall establish collaboration between the relevant departments of their administrations. The Council shall take measures and promote cooperation, using the appropriate form and procedures as set out in this Title, contributing to the pursuit of the objectives of the Union. To that end, acting unanimously on the initiative of any Member State or of the Commission, the Council may: (a) adopt common positions defining the approach of the Union to a particular matter; (b) adopt framework decisions for the purpose of approximation of the laws and regulations of the Member States. Framework decisions shall be binding upon the Member States as to the result to be achieved but shall leave to the national authorities the choice of form and methods. They shall not entail direct effect; (c) adopt decisions for any other purpose consistent with the objectives of this Title, excluding any approximation of the laws and regulations of the Member States. These decisions shall be binding and shall not entail direct effect; the Council, acting by a qualified majority, shall adopt measures necessary to implement those decisions at the level of the Union; (d) establish conventions which it shall recommend to the Member States for adoption in accordance with their respective constitutional requirements. Member States shall begin the procedures applicable within a time limit to be set by the Council. Unless they provide otherwise, conventions shall, once adopted by at least half of the Member States, enter into force for those Member States. Measures implementing conventions shall be adopted within the Council by a majority of two-thirds of the Contracting Parties. Where the Council is required to act by a qualified majority, the votes of its members shall be weighted as laid down in Article 148(2) of the Treaty establishing the European Community, and for their adoption acts of the Council shall require at least 62 votes in favour, cast by at least 10 members. For procedural questions, the Council shall act by a majority of its members. Article K.7 1. The Court of Justice of the European Communities shall have jurisdiction, subject to the conditions laid down in this Article, to give preliminary rulings on the validity and interpretation of framework decisions, and decisions on the interpretation of conventions established under this Title and on the validity and interpretation of the measures implementing them. By a declaration made at the time of signature of the Treaty of Amsterdam or at any time thereafter, any Member State shall be able to accept the jurisdiction of the Court of Justice to give preliminary rulings as specified in paragraph 1. A Member State making a declaration pursuant to paragraph 2 shall specify that either: (a) any court or tribunal of that State against whose decisions there is no judicial remedy under national law may request the Court of Justice to give a preliminary ruling on a question raised in a case pending before it and concerning the validity or interpretation of an act referred to in paragraph 1 if that court or tribunal considers that a decision on the question is necessary to enable it to give judgment, or (b) any court or tribunal of that State may request the Court of Justice to give a preliminary ruling on a question raised in a case pending before it and concerning the validity or interpretation of an act referred to in paragraph 1 if that court or tribunal considers that a decision on the question is necessary to enable it to give judgment. Any Member State, whether or not it has made a declaration pursuant to paragraph 2, shall be entitled to submit statements of case or written observations to the Court in cases which arise under paragraph 1. The Court of Justice shall have no jurisdiction to review the validity or proportionality of operations carried out by the police or other law enforcement services of a Member State or the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security. The Court of Justice shall have jurisdiction to review the legality of framework decisions and decisions in actions brought by a Member State or the Commission on grounds of lack of competence, infringement of an essential procedural requirement, infringement of this Treaty or of any rule of law relating to its application, or misuse of powers. The proceedings provided for in this paragraph shall be instituted within two months of the publication of the measure. The Court of Justice shall have jurisdiction to rule on any dispute between Member States regarding the interpretation or the application of acts adopted under Article K.6(2) whenever such dispute cannot be settled by the Council within six months of its being referred to the Council by one of its members. The Court shall also have jurisdiction to rule on any dispute between Member States and the Commission regarding the interpretation or the application of conventions established under Article K.6(2)(d). Article K.8 1. A Coordinating Committee shall be set up consisting of senior officials. In addition to its coordinating role, it shall be the task of the Committee to: – give opinions for the attention of the Council, either at the Council’s request or on its own initiative; – contribute, without prejudice to Article 151 of the Treaty establishing the European Community, to the preparation of the Council’s discussions in the areas referred to in Article K.1. The Commission shall be fully associated with the work in the areas referred to in this Title. Article K.9 Within international organisations and at international conferences in which they take part, Member States shall defend the common positions adopted under the provisions of this Title. Articles J.8 and J.9 shall apply as appropriate to matters falling under this Title. Article K.10 Agreements referred to in Article J.14 may cover matters falling under this Title. Article K.11 1. The Council shall consult the European Parliament before adopting any measure referred to in Article K.6(2)(b), (c) and (d). The European Parliament shall deliver its opinion within a time-limit which the Council may lay down, which shall not be less than three months. In the absence of an opinion within that time-limit, the Council may act. The Presidency and the Commission sha ll regularly inform the European Parliament of discussions in the areas covered by this Title. The European Parliament may ask questions of the Council or make recommendations to it. Each year, it shall hold a debate on the progress made in the areas referred to in this Title. Article K.12 1. Member States which intend to establish closer cooperation between themselves may be authorised, subject to Articles K.15 and K.16, to make use of the institutions, procedures and mechanisms laid down by the Treaties provided that the cooperation proposed: (a) respects the powers of the European Community, and the objectives laid down by this Title; (b) has the aim of enabling the Union to develop more rapidly into an area of freedom, security and justice. The authorisation referred to in paragraph 1 shall be granted by the Council, acting by a qualified majority at the request of the Member States concerned and after inviting the Commission to present its opinion; the request shall also be forwarded to the European Parliament. If a member of the Council declares that, for important and stated reasons of national policy, it intends to oppose the granting of an authorisation by qualified majority, a vote shall not be taken. The Council may, acting by a qualified majority, request that the matter be referred to the European Council for decision by unanimity. The votes of the members of the Council shall be weighted in accordance with Article 148(2) of the Treaty establishing the European Community. For their adoption, decisions shall require at least 62 votes in favour, cast by at least 10 members. Any Member State which wishes to become a party to cooperation set up in accordance with this Article shall notify its intention to the Council and to the Commission, which shall give an opinion to the Council within three months of receipt of that notification, possibly accompanied by a recommendation for such specific arrangements as it may deem necessary for that Member State to become a party to the cooperation in question. Within four months of the date of that notification, the Council shall decide on the request and on such specific arrangements as it may deem necessary. The decision shall be deemed to be taken unless the Council, acting by a qualified majority, decides to hold it in abeyance; in this case, the Council shall state the reasons for its decision and set a deadline for re-examining it. For the purposes of this paragraph, the Council shall act under the conditions set out in Article K.16. The provisions of Articles K.1 to K.13 shall apply to the closer cooperation provided for by this Article, save as otherwise provided for in this Article and in Articles K.15 and K.16. The provisions of the Treaty establishing the European Community concerning the powers of the Court of Justice of the European Communities and the exercise of those powers shall apply to paragraphs 1, 2 and 3. This Article is without prejudice to the provisions of the Protocol integrating the Schengen acquis into the framework of the European Union. Article K.13 1. Articles 137, 138, 138e, 139 to 142, 146, 147, 148(3), 150 to 153, 157 to 163, 191a and 217 of the Treaty establishing the European Community shall apply to the provisions relating to the areas referred to in this Title. Administrative expenditure which the provisions relating to the areas referred to in this Title entail for the institutions shall be charged to the budget of the European Communities. Operational expenditure to which the implementation of those provisions gives rise shall also be charged to the budget of the European Communities, except where the Council acting unanimously decides otherwise. In cases where expenditure is not charged to the budget of the European Communities it shall be charged to the Member States in accordance with the gross national product scale, unless the Council acting unanimously decides otherwise. The budgetary procedure laid down in the Treaty establishing the European Community shall apply to the expenditure charged to the budget of the European Communities. Article K.14 The Council, acting unanimously on the initiative of the Commission or a Member State, and after consulting the European Parliament, may decide that action in areas referred to in Article K.1 shall fall under Title IIIa of the Treaty establishing the European Community, and at the same time determine the relevant voting conditions relating to it. It shall recommend the Member States to adopt that decision in accordance with their respective constitutional requirements.’ The following new Title shall be inserted: ‘Title VIa PROVISIONS ON CLOSER COOPERATION Article K.15 1. Member States which intend to establish closer cooperation between themselves may make use of the institutions, procedures and mechanisms laid down by this Treaty and the Treaty establishing the European Community provided that the cooperation: (a) is aimed at furthering the objectives of the Union and at protecting and serving its interests; (b) respects the principles of the said Treaties and the single institutional framework of the Union; (c) is only used as a last resort, where the objectives of the said Treaties could not be attained by applying the relevant procedures laid down therein; (d) concerns at least a majority of Member States; (e) does not affect the acquis communautaire and the measures adopted under the other provisions of the said Treaties; (f) does not affect the competences, rights, obligations and interests of those Member States which do not participate therein; (g) is open to all Member States and allows them to become parties to the cooperation at any time, provided that they comply with the basic decision and with the decisions taken within that framework; (h) complies with the specific additional criteria laid down in Article 5a of the Treaty establishing the European Community and Article K.12 of this Treaty, depending on the area concerned, and is authorised by the Council in accordance with the procedures laid down therein. Member States shall apply, as far as they are concerned, the acts and decisions adopted for the implementation of the cooperation in which they participate. Member States not participating in such cooperation shall not impede the implementation thereof by the participating Member States. Article K.16 1. For the purposes of the adoption of the acts and decisions necessary for the implementation of the cooperation referred to in Article K.15, the relevant institutional provisions of this Treaty and of the Treaty establishing the European Community shall apply. However, while all members of the Council shall be able to take part in the deliberations, only those representing participating Member States shall take part in the adoption of decisions. The qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 148(2) of the Treaty establishing the European Community. Unanimity shall be constituted by only those Council members concerned. Expenditure resulting from implementation of the cooperation, other than administrative costs entailed for the institutions, shall be borne by the participating Member States, unless the Council, acting unanimously, decides otherwise. Article K.17 The Council and the Commission shall regularly inform the European Parliament of the development of closer cooperation established on the basis of this Title.’ Article L shall be replaced by the following: ‘Article L The provisions of the Treaty e stablishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community concerning the powers of the Court of Justice of the European Communities and the exercise of those powers shall apply only to the following provisions of this Treaty: (a) provisions amending the Treaty establishing the European Economic Community with a view to establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community; (b) provisions of Title VI, under the conditions provided for by Article K.7; (c) provisions of Title VIa, under the conditions provided for by Article 5a of the Treaty establishing the European Community and Article K.12 of this Treaty; (d) Article F(2) with regard to action of the institutions, insofar as the Court has jurisdiction under the Treaties establishing the European Communities and under this Treaty; (e) Articles L to S.’ In Article N, paragraph 2 shall be deleted and paragraph 1 shall remain without a number. In Article O, the first paragraph shall be replaced by the following: ‘Any European State which respects the principles set out in Article F(1) may apply to become a member of the Union. It shall address its application to the Council, which shall act unanimously after consulting the Commission and after receiving the assent of the European Parliament, which shall act by an absolute majority of its component members.’ In Article S, a new paragraph shall be added as follows: ‘Pursuant to the 1994 Accession Treaty, the Finnish and Swedish versions of this Treaty shall also be authentic.’ The Treaty establishing the European Community shall be amended in accordance with the provisions of this Article. In the preamble the following recital shall be inserted after the eighth recital: ‘DETERMINED to promote the development of the highest possible level of knowledge for their peoples through a wide access to education and through its continuous updating,’ 2. Article 2 shall be replaced by the following: ‘Article 2 The Community shall have as its task, by establishing a common market and an economic and monetary union and by implementing common policies or activities referred to in Articles 3 and 3a, to promote throughout the Community a harmonious, balanced and sustainable development of economic activities, a high level of employment and of social protection, equality between men and women, sustainable and non-inflationary growth, a high degree of competitiveness and convergence of economic performance, a high level of protection and improvement of the quality of the environment, the raising of the standard of living and quality of life, and economic and social cohesion and solidarity among Member States.’ Article 3 shall be amended as follows: (a) the existing text shall be numbered and become paragraph 1; (b) in new paragraph 1, point (d) shall be replaced by the following: ‘(d) measures concerning the entry and movement of persons as provided for in Title IIIa;’; (c) in new paragraph 1, the following new point (i) shall be inserted after point (h): ‘(i) the promotion of coordination between employment policies of the Member States with a view to enhancing their effectiveness by developing a coordinated strategy for employment;’ (d) in new paragraph 1, the existing point (i) shall become point (j) and the subsequent points shall be renumbered accordingly; (e) the following paragraph shall be added: ‘2. In all the activities referred to in this Article, the Community shall aim to eliminate inequalities, and to promote equality, between men and women.’ The following Article shall be inserted: ‘Article 3c Environmental protection requirements must be integrated into the definition and implementation of the Community policies and activities referred to in Article 3, in particular with a view to promoting sustainable development.’ The following Article shall be inserted: ‘Article 5a 1. Member States which intend to establish closer cooperation between themselves may be authorised, subject to Articles K.15 and K.16 of the Treaty on the European Union, to make use of the institutions, procedures and mechanisms laid down by this Treaty, provided that the cooperation proposed: (a) does not concern areas which fall within the exclusive competence of the Community; (b) does not affect Community policies, actions or programmes; (c) does not concern the citizenship of the Union or discriminate between nationals of Member States; (d) remains within the limits of the powers conferred upon the Community by this Treaty; and (e) does not constitute a discrimination or a restriction of trade between Member States and does not distort the conditions of competition between the latter. The authorisation referred to in paragraph 1 shall be granted by the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament. If a member of the Council declares that, for important and stated reasons of national policy, it intends to oppose the granting of an authorisation by qualified majority, a vote shall not be taken. The Council may, acting by a qualified majority, request that the matter be referred to the Council, meeting in the composition of the Heads of State or Government, for decision by unanimity. Member States which intend to establish closer cooperation as referred to in paragraph 1 may address a request to the Commission, which may submit a proposal to the Council to that effect. In the event of the Commission not submitting a proposal, it shall inform the Member States concerned of the reasons for not doing so. 3. Any Member State which wishes to become a party to cooperation set up in accordance with this Article shall notify its intention to the Council and to the Commission, which shall give an opinion to the Council within three months of receipt of that notification. Within four months of the date of that notification, the Commission shall decide on it and on such specific arrangements as it may deem necessary. The acts and decisions necessary for the implementation of cooperation activities shall be subject to all the relevant provisions of this Treaty, save as otherwise provided for in this Article and in Articles K.15 and K.16 of the Treaty on European Union. This Article is without prejudice to the provisions of the Protocol integrating the Schengen acquis into the framework of the European Union.’ In Article 6, the second paragraph shall be replaced by the following: ‘The Council, acting in accordance with the procedure referred to in Article 189b, may adopt rules designed to prohibit such discrimination.’ The following Article shall be inserted: ‘Article 6a Without prejudice to the other provisions of this Treaty and within the limits of the powers conferred by it upon the Community, the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, may take appropriate action to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.’ The following Article shall be inserted at the end of Part One: ‘Article 7d Without prejudice to Articles 77, 90 and 92, and given the place occupied by services of general economic interest in the shared values of the Union as well as their role in promoting social and territorial cohesion, the Community and the Member States, each within their respective powers and within the scope of application of this Treaty, shall take care that such services operate on the basis of principles and conditions which enable them to fulfil their missions.’ Article 8(1) shall be replaced by the following: ‘1. Citizenship of the Union is hereby established. Every person holding the nationality of a Member State shall be a citizen of the Union. Citizenship of the Union shall complement and not replace national citizenship.’ Article 8a(2) shall be replaced by the following: ‘2. The Council may adopt provisions with a view to facilitating the exercise of the rights referred to in paragraph 1; save as otherwise provided in this Treaty, the Council shall act in accordance with the procedure referred to in Article 189b. The Council shall act unanimously throughout this procedure.’ In Article 8d, the following paragraph shall be added: ‘Every citizen of the Union may write to any of the institutions or bodies referred to in this Article or in Article 4 in one of the languages mentioned in Article 248 and have an answer in the same language.’ Article 51 shall be replaced by the following: ‘Article 51 The Council shall, acting in accordance with the procedure referred to in Article 189b, adopt such measures in the field of social security as are necessary to provide freedom of movement for workers; to this end, it shall make arrangements to secure for migrant workers and their dependants: (a) aggregation, for the purpose of acquiring and retaining the right to benefit and of calculating the amount of benefit, of all periods taken into account under the laws of the several countries; (b) payment of benefits to persons resident in the territories of Member States. The Council shall act unanimously throughout the procedure referred to in Article 189b.’ Article 56(2) shall be replaced by the following: ‘2. The Council shall, acting in accordance with the procedure referred to in Article 189b, issue directives for the coordination of the abovementioned provisions.’ Article 57(2) shall be replaced by the following: ‘2. For the same purpose, the Council shall, acting in accordance with the procedure referred to in Article 189b, issue directives for the coordination of the provisions laid down by law, regulation or administrative action in Member States concerning the taking-up and pursuit of activities as self-employed persons. The Council, acting unanimously throughout the procedure referred to in Article 189b, shall decide on directives the implementation of which involves in at least one Member State amendment of the existing principles laid down by law governing the professions with respect to training and conditions of access for natural persons. In other cases the Council shall act by qualified majority.’ The following title shall be inserted in Part Three: ‘Title IIIa VISAS, ASYLUM, IMMIGRATION AND OTHER POLICIES RELATED TO FREE MOVEMENT OF PERSONS Article 73i In order to establish progressively an area of freedom, security and justice, the Council shall adopt: (a) within a period of five years after the entry into force of the Treaty of Amsterdam, measures aimed at ensuring the free movement of persons in accordance with Article 7a, in conjunction with directly related flanking measures with respect to external border controls, asylum and immigration, in accordance with the provisions of Article 73j(2) and (3) and Article 73k(1)(a) and (2)(a), and measures to prevent and combat crime in accordance with the provisions of Article K.3(e) of the Treaty on European Union; (b) other measures in the fields of asylum, immigration and safeguarding the rights of nationals of third countries, in accordance with the provisions of Article 73k; (c) measures in the field of judicial cooperation in civil matters as provided for in Article 73m; (d) appropriate measures to encourage and strengthen administrative cooperation, as provided for in Article 73n; (e) measures in the field of police and judicial cooperation in criminal matters aimed at a high level of security by preventing and combating crime within the Union in accordance with the provisions of the Treaty on European Union. Article 73j The Council, acting in accordance with the procedure referred to in Article 73o, shall, within a period of five years after the entry into force of the Treaty of Amsterdam, adopt: (1) measures with a view to ensuring, in compliance with Article 7a, the absence of any controls on persons, be they citizens of the Union or nationals of third countries, when crossing internal borders; (2) measures on the crossing of the external borders of the Member States which shall establish: (a) standards and procedures to be followed by Member States in carrying out checks on persons at such borders; (b) rules on visas for intended stays of no more than three months, including: (i) the list of third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement; (ii) the procedures and conditions for issuing visas by Member States; (iii) a uniform format for visas; (iv) rules on a uniform visa; (3) measures setting out the conditions under which nationals of third countries shall have the freedom to travel within the territory of the Member States during a period of no more than three months. Article 73k The Council, acting in accordance with the procedure referred to in Article 73o, shall, within a period of five years after the entry into force of the Treaty of Amsterdam, adopt: (1) measures on asylum, in accordance with the Geneva Convention of 28 July 1951 and the Protocol of 31 January 1967 relating to the status of refugees and other relevant treaties, within the following areas: (a) criteria and mechanisms for determining which Member State is responsible for considering an application for asylum submitted by a national of a third country in one of the Member States, (b) minimum standards on the reception of asylum seekers in Member States, (c) minimum standards with respect to the qualification of nationals of third countries as refugees, (d) minimum standards on procedures in Member States for granting or withdrawing refugee status; (2) measures on refugees and displaced persons within the following areas: (a) minimum standards for giving temporary protection to displaced persons from third countries who cannot return to their country of origin and for persons who otherwise need international protection, (b) promoting a balance of effort between Member States in receiving and bearing the consequences of receiving refugees and displaced persons; (3) measures on immigration policy within the following areas: (a) conditions of entry and residence, and standards on procedures for the issue by Member States of long term visas and residence permits, including those for the purpose of family reunion, (b) illegal immigration and illegal residence, including repatriation of illegal residents; (4) measures defining the rights and conditions under which nationals of third countries who are legally resident in a Member State may reside in other Member States. Measures adopted by the Council pursuant to points 3 and 4 shall not prevent any Member State from maintaining or introducing in the areas concerned national provisions which are compatible with this Treaty and with international agreements. Measures to be adopted pursuant to points 2(b), 3(a) and 4 shall not be subject to the five year period referred to above. Article 73l 1. This Title shall not affect the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security. In the event of one or more Member States being confronted with an emergency situation characterised by a sudden inflow of nationals of third countries and without prejudice to paragraph 1, the Council may, acting by qualified majority on a proposal from the Commission, adopt provisional measures of a duration not exceeding six months for the benefit of the Member States concerned. Article 73m Measures in the field of judicial cooperation in civil matters having cross-border implications, to be taken in accordance with Article 73o and insofar as necessary for the proper functioning of the internal market, shall include: (a) improving and simplifying: – the system for cross-border service of judicial and extrajudicial documents; – cooperation in the taking of evidence; – the recognition and enforcement of decisions in civil and commercial cases, including decisions in extrajudicial cases; (b) promoting the compatibility of the rules applicable in the Member States concerning the conflict of laws and of jurisdiction; (c) eliminating obstacles to the good functioning of civil proceedings, if necessary by promoting the compatibility of the rules on civil procedure applicable in the Member States. Article 73n The Council, acting in accordance with the procedure referred to in Article 73o, shall take measures to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this Title, as well as between those departments and the Commission. Article 73o 1. During a transitional period of five years following the entry into force of the Treaty of Amsterdam, the Council shall act unanimously on a proposal from the Commission or on the initiative of a Member State and after consulting the European Parliament. After this period of five years: – the Council shall act on proposals from the Commission; the Commission shall examine any request made by a Member State that it submit a proposal to the Council; – the Council, acting unanimously after consulting the European Parliament, shall take a decision with a view to providing for all or parts of the areas covered by this Title to be governed by the procedure referred to in Article 189b and adapting the provisions relating to the powers of the Court of Justice. By derogation from paragraphs 1 and 2, measures referred to in Article 73j(2)(b) (i) and (iii) shall, from the entry into force of the Treaty of Amsterdam, be adopted by the Council acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament. By derogation from paragraph 2, measures referred to in Article 73j(2)(b) (ii) and (iv) shall, after a period of five years following the entry into force of the Treaty of Amsterdam, be adopted by the Council acting in accordance with the procedure referred to in Article 189b. Article 73p 1. Article 177 shall apply to this Title under the following circumstances and conditions: where a question on the interpretation of this Title or on the validity or interpretation of acts of the institutions of the Community based on this Title is raised in a case pending before a court or a tribunal of a Member State against whose decisions there is no judicial remedy under national law, that court or tribunal shall, if it considers that a decision on the question is necessary to enable it to give judgment, request the Court of Justice to give a ruling thereon. In any event, the Court of Justice shall not have jurisdiction to rule on any measure or decision taken pursuant to Article 73j(1) relating to the maintenance of law and order and the safeguarding of internal security. The Council, the Commission or a Member State may request the Court of Justice to give a ruling on a question of interpretation of this Title or of acts of the institutions of the Community based on this Title. The ruling given by the Court of Justice in response to such a request shall not apply to judgments of courts or tribunals of the Member States which have become res judicata. Article 73q The application of this Title shall be subject to the provisions of the Protocol on the position of the United Kingdom and Ireland and to the Protocol on the position of Denmark and without prejudice to the Protocol on the application of certain aspects of Article 7a of the Treaty establishing the European Community to the United Kingdom and to Ireland.’ In Article 75(1), the introductory part shall be replaced by the following: ‘1. For the purpose of implementing Article 74, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:’ 17. In Article 100a, paragraphs 3, 4 and 5 shall be replaced by the following paragraphs: ‘3. The Commission, in its proposals envisaged in paragraph 1 concerning health, safety, environmental protection and consumer protection, will take as a base a high level of protection, taking account in particular of any new development based on scientific facts. Within their respective powers, the European Parliament and the Council will also seek to achieve this objective. If, after the adoption by the Council or by the Commission of a harmonisation measure, a Member State deems it necessary to maintain national provisions on grounds of major needs referred to in Article 36, or relating to the protection of the environment or the working environment, it shall notify the Commission of these provisions as well as the grounds for maintaining them. Moreover, without prejudice to paragraph 4, if, after the adoption by the Council or by the Commission of a harmonisation measure, a Member State deems it necessary to introduce national provisions based on new scientific evidence relating to the protection of the environment or the working environment on grounds of a problem specific to that Member State arising after the adoption of the harmonisation measure, it shall notify the Commission of the envisaged provisions as well as the grounds for introducing them. The Commission shall, within six months of the notifications as referred to in paragraphs 4 and 5, approve or reject the national provisions involved after having verified whether or not they are a means of arbitrary discrimination or a disguised restriction on trade between Member States and whether or not they shall constitute an obstacle to the functioning of the internal market. In the absence of a decision by the Commission within this period the national provisions referred to in paragraphs 4 and 5 shall be deemed to have been approved. When justified by the complexity of the matter and in the absence of danger for human health, the Commission may notify the Member State concerned that the period referred to in this paragraph may be extended for a further period of up to six months. When, pursuant to paragraph 6, a Member State is authorised to maintain or introduce national provisions derogating from a harmonisation measure, the Commission shall immediately examine whether to propose an adaptation to that measure. When a Member State raises a specific problem on public health in a field which has been the subject of prior h armonisation measures, it shall bring it to the attention of the Commission which shall immediately examine whether to propose appropriate measures to the Council. By way of derogation from the procedure laid down in Articles 169 and 170, the Commission and any Member State may bring the matter directly before the Court of Justice if it considers that another Member State is making improper use of the powers provided for in this Article. The harmonisation measures referred to above shall, in appropriate cases, include a safeguard clause authorising the Member States to take, for one or more of the non-economic reasons referred to in Article 36, provisional measures subject to a Community control procedure.’ Articles 100c and 100d shall be repealed. The following Title shall be inserted after Title VI: ‘Title VIa EMPLOYMENT Article 109n Member States and the Community shall, in accordance with this Title, work towards developing a coordinated strategy for employment and particularly for promoting a skilled, trained and adaptable workforce and labour markets responsive to economic change with a view to achieving the objectives defined in Article B of the Treaty on European Union and in Article 2 of this Treaty. Article 109o 1. Member States, through their employment policies, shall contribute to the achievement of the objectives referred to in Article 109n in a way consistent with the broad guidelines of the economic policies of the Member States and of the Community adopted pursuant to Article 103(2). Member States, having regard to national practices related to the responsibilities of management and labour, shall regard promoting employment as a matter of common concern and shall coordinate their action in this respect within the Council, in accordance with the provisions of Article 109q. Article 109p 1. The Community shall contribute to a high level of employment by encouraging cooperation between Member States and by supporting and, if necessary, complementing their action. In doing so, the competences of the Member States shall be respected. The objective of a high level of employment shall be taken into consideration in the formulation and implementation of Community policies and activities. Article 109q 1. The European Council shall each year consider the employment situation in the Community and adopt conclusions thereon, on the basis of a joint annual report by the Council and the Commission. On the basis of the conclusions of the European Council, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, the Economic and Social Committee, the Committee of the Regions and the Employment Committee referred to in Article 109s, shall each year draw up guidelines which the Member States shall take into account in their employment policies. These guidelines shall be consistent with the broad guidelines adopted pursuant to Article 103(2). Each Member State shall provide the Council and the Commission with an annual report on the principal measures taken to implement its employment policy in the light of the guidelines for employment as referred to in paragraph 2. The Council, on the basis of the reports referred to in paragraph 3 and having received the views of the Employment Committee, shall each year carry out an examination of the implementation of the employment policies of the Member States in the light of the guidelines for employment. The Council, acting by a qualified majority on a recommendation from the Commission, may, if it considers it appropriate in the light of that examination, make recommendations to Member States. On the basis of the results of that examination, the Council and the Commission shall make a joint annual report to the European Council on the employment situation in the Community and on the implementation of the guidelines for employment. Article 109r The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions, may adopt incentive measures designed to encourage cooperation between Member States and to support their action in the field of employment through initiatives aimed at developing exchanges of information and best practices, providing comparative analysis and advice as well as promoting innovative approaches and evaluating experiences, in particular by recourse to pilot projects. Those measures shall not include harmonisation of the laws and regulations of the Member States. Article 109s The Council, after consulting the European Parliament, shall establish an Employment Committee with advisory status to promote coordination between Member States on employment and labour market policies. The tasks of the Committee shall be: – to monitor the employment situation and employment policies in the Member States and the Community; – without prejudice to Article 151, to formulate opinions at the request of either the Council or the Commission or on its own initiative, and to contribute to the preparation of the Council proceedings referred to in Article 109q. In fulfilling its mandate, the Committee shall consult management and labour. Each Member State and the Commission shall appoint two members of the Committee.’ In Article 113, the following paragraph shall be added: ‘5. The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, may extend the application of paragraphs 1 to 4 to international negotiations and agreements on services and intellectual property insofar as they are not covered by these paragraphs.’ The following Title shall be inserted after Title VII: ‘Title VIIa CUSTOMS COOPERATION Article 116 Within the scope of application of this Treaty, the Council, acting in accordance with the procedure referred to in Article 189b, shall take measures in order to strengthen customs cooperation between Member States and between the latter and the Commission. These measures shall not concern the application of national criminal law or the national administration of justice.’ Articles 117 to 120 shall be replaced by the following Articles: ‘Article 117 The Community and the Member States, having in mind fundamental social rights such as those set out in the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community Charter of the Fundamental Social Rights of Workers, shall have as their objectives the promotion of employment, improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained, proper social protection, dialogue between management and labour, the development of human resources with a view to lasting high employment and the combating of exclusion. To this end the Community and the Member States shall implement measures which take account of the diverse forms of national practices, in particular in the field of contractual relations, and the need to maintain the competitiveness of the Community economy. They believe that such a development will ensue not only from the functioning of the common market, which will favour the harmonisation of social systems, but also from the procedures provided for in this Treaty and from the approximation of provisions laid down by law, regulation or administrative action. Article 118 1. With a view to achieving the objectives of Article 117, the Community shall support and complement the activities of the Member States in the fo llowing fields: – improvement in particular of the working environment to protect workers’ health and safety; – working conditions; – the information and consultation of workers; – the integration of persons excluded from the labour market, without prejudice to Article 127; – equality between men and women with regard to labour market opportunities and treatment at work. To this end, the Council may adopt, by means of directives, minimum requirements for gradual implementation, having regard to the conditions and technical rules obtaining in each of the Member States. Such directives shall avoid imposing administrative, financial and legal constraints in a way which would hold back the creation and development of small and medium-sized undertakings. The Council shall act in accordance with the procedure referred to in Article 189b after consulting the Economic and Social Committee and the Committee of the Regions. The Council, acting in accordance with the same procedure, may adopt measures designed to encourage cooperation between Member States through initiatives aimed at improving knowledge, developing exchanges of information and best practices, promoting innovative approaches and evaluating experiences in order to combat social exclusion. However, the Council shall act unanimously on a proposal from the Commission, after consulting the European Parliament, the Economic and Social Committee and the Committee of the Regions in the following areas: – social security and social protection of workers; – protection of workers where their employment contract is terminated; – representation and collective defence of the interests of workers and employers, including co-determination, subject to paragraph 6; – conditions of employment for third-country nationals legally residing in Community territory; – financial contributions for promotion of employment and job-creation, without prejudice to the provisions relating to the Social Fund. A Member State may entrust management and labour, at their joint request, with the implementation of directives adopted pursuant to paragraphs 2 and 3. In this case, it shall ensure that, no later than the date on which a directive must be transposed in accordance with Article 189, management and labour have introduced the necessary measures by agreement, the Member State concerned being required to take any necessary measure enabling it at any time to be in a position to guarantee the results imposed by that directive. The provisions adopted pursuant to this Article shall not prevent any Member State from maintaining or introducing more stringent protective measures compatible with this Treaty. The provisions of this Article shall not apply to pay, the right of association, the right to strike or the right to impose lock-outs. Article 118a 1. The Commission shall have the task of promoting the consultation of management and labour at Community level and shall take any relevant measure to facilitate their dialogue by ensuring balanced support for the parties. To this end, before submitting proposals in the social policy field, the Commission shall consult management and labour on the possible direction of Community action. If, after such consultation, the Commission considers Community action advisable, it shall consult management and labour on the content of the envisaged proposal. Management and labour shall forward to the Commission an opinion or, where appropriate, a recommendation. On the occasion of such consultation, management and labour may inform the Commission of their wish to initiate the process provided for in Article 118b. The duration of the procedure shall not exceed nine months, unless the management and labour concerned and the Commission decide jointly to extend it. Article 118b 1. Should management and labour so desire, the dialogue between them at Community level may lead to contractual relations, including agreements. Agreements concluded at Community level shall be implemented either in accordance with the procedures and practices specific to management and labour and the Member States or, in matters covered by Article 118, at the joint request of the signatory parties, by a Council decision on a proposal from the Commission. The Council shall act by qualified majority, except where the agreement in question contains one or more provisions relating to one of the areas referred to in Article 118(3), in which case it shall act unanimously. Article 118c With a view to achieving the objectives of Article 117 and without prejudice to the other provisions of this Treaty, the Commission shall encourage cooperation between the Member States and facilitate the coordination of their action in all social policy fields under this chapter, particularly in matters relating to: – employment; – labour law and working conditions; – basic and advanced vocational training; – social security; – prevention of occupational accidents and diseases; – occupational hygiene; – the right of association and collective bargaining between employers and workers. To this end, the Commission shall act in close contact with Member States by making studies, delivering opinions and arranging consultations both on problems arising at national level and on those of concern to international organisations. Before delivering the opinions provided for in this Article, the Commission shall consult the Economic and Social Committee. Article 119 1. Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value is applied. For the purpose of this Article, “pay” means the ordinary basic or minimum wage or salary and any other consideration, whether in cash or in kind, which the worker receives directly or indirectly, in respect of his employment, from his employer. Equal pay without discrimination based on sex means: (a) that pay for the same work at piece rates shall be calculated on the basis of the same unit of measurement; (b) that pay for work at time rates shall be the same for the same job. The Council, acting in accordance with the procedure referred to in Article 189b, and after consulting the Economic and Social Committee, shall adopt measures to ensure the application of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation, including the principle of equal pay for equal work or work of equal value. With a view to ensuring full equality in practice between men and women in working life, the principle of equal treatment shall not prevent any Member State from maintaining or adopting measures providing for specific advantages in order to make it easier for the under-represented sex to pursue a vocational activity or to prevent or compensate for disadvantages in professional careers. Article 119a Member States shall endeavour to maintain the existing equivalence between paid holiday schemes. Article 120 The Commission shall draw up a report each year on progress in achieving the objectives of Article 117, including the demographic situation in the Community. It shall forward the report to the European Parliament, the Council and the Economic and Social Committee. The European Parliament may invite the Commission to draw up reports on particular problems concerning the social situation.’ Article 125 shall be replaced by the following: ‘Article 125 The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committe e and the Committee of the Regions, shall adopt implementing decisions relating to the European Social Fund.’ Article 127(4) shall be replaced by the following: ‘4. The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions, shall adopt measures to contribute to the achievement of the objectives referred to in this Article, excluding any harmonisation of the laws and regulations of the Member States.’ Article 128(4) shall be replaced by the following: ‘4. The Community shall take cultural aspects into account in its action under other provisions of this Treaty, in particular in order to respect and to promote the diversity of its cultures.’ Article 129 shall be replaced by the following: ‘Article 129 1. A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education. The Community shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention. The Community shall encourage cooperation between the Member States in the areas referred to in this Article and, if necessary, lend support to their action. Member States shall, in liaison with the Commission, coordinate among themselves their policies and programmes in the areas referred to in paragraph 1. The Commission may, in close contact with the Member States, take any useful initiative to promote such coordination. The Community and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of public health. The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions, shall contribute to the achievement of the objectives referred to in this Article through adopting: (a) measures setting high standards of quality and safety of organs and substances of human origin, blood and blood derivatives; these measures shall not prevent any Member State from maintaining or introducing more stringent protective measures; (b) by way of derogation from Article 43, measures in the veterinary and phytosanitary fields which have as their direct objective the protection of public health; (c) incentive measures designed to protect and improve human health, excluding any harmonisation of the laws and regulations of the Member States. The Council, acting by a qualified majority on a proposal from the Commission, may also adopt recommendations for the purposes set out in this Article. Community action in the field of public health shall fully respect the responsibilities of the Member States for the organisation and delivery of health services and medical care. In particular, measures referred to in paragraph 4(a) shall not affect national provisions on the donation or medical use of organs and blood.’ Article 129a shall be replaced by the following: ‘Article 129a 1. In order to promote the interests of consumers and to ensure a high level of consumer protection, the Community shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests. Consumer protection requirements shall be taken into account in defining and implementing other Community policies and activities. The Community shall contribute to the attainment of the objectives referred to in paragraph 1 through: (a) measures adopted pursuant to Article 100a in the context of the completion of the internal market; (b) measures which support, supplement and monitor the policy pursued by the Member States. The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee, shall adopt the measures referred to in paragraph 3(b). Measures adopted pursuant to paragraph 4 shall not prevent any Member State from maintaining or introducing more stringent protective measures. Such measures must be compatible with this Treaty. The Commission shall be notified of them.’ In the first subparagraph of Article 129c(1), the first part of the third indent shall be replaced by the following: ‘- may support projects of common interest supported by Member States, which are identified in the framework of the guidelines referred to in the first indent, particularly through feasibility studies, loan guarantees or interest-rate subsidies;’. Article 129d shall be amended as follows: (a) the first paragraph shall be replaced by the following: ‘The guidelines and other measures referred to in Article 129c(1) shall be adopted by the Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions.’; (b) the third paragraph shall be deleted. In Article 130a, the second paragraph shall be replaced by the following: ‘In particular, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas.’ In Article 130e, the first paragraph shall be replaced by the following: ‘Implementing decisions relating to the European Regional Development Fund shall be taken by the Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions.’ In Article 130i(1), the first subparagraph shall be replaced by the following: ‘1. A multi-annual framework programme, setting out all the activities of the Community, shall be adopted by the Council, acting in accordance with the procedure referred to in Article 189b after consulting the Economic and Social Committee.’ Article 130o shall be replaced by the following: ‘Article 130o The Council, acting by qualified majority on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, shall adopt the provisions referred to in Article 130n. The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee, shall adopt the provisions referred to in Articles 130j, 130k and 130l. Adoption of the supplementary programmes shall require the agreement of the Member States concerned.’ Article 130r(2) shall be replaced by the following: ‘2. Community policy on the environment shall aim at a high level of protection taking into account the diversity of situations in the various regions of the Community. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. In this context, harmonisation measures answering environmental protection requirements shall include, where appropriate, a safeguard clause allowing Member States t o take provisional measures, for non-economic environmental reasons, subject to a Community inspection procedure.’ Article 130s shall be amended as follows: (a) Paragraph 1 shall be replaced by the following: ‘1. The Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions, shall decide what action is to be taken by the Community in order to achieve the objectives referred to in Article 130r.’; (b) The introductory part of paragraph 2 shall be replaced by the following: ‘2. By way of derogation from the decision making procedure provided for in paragraph 1 and without prejudice to Article 100a, the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, the Economic and Social Committee and the Committee of the Regions, shall adopt:’; (c) The first subparagraph of paragraph 3 shall be replaced by the following: ‘3. In other areas, general action programmes setting out priority objectives to be attained shall be adopted by the Council, acting in accordance with the procedure referred to in Article 189b and after consulting the Economic and Social Committee and the Committee of the Regions.’ Article 130w(1) shall be replaced by the following: ‘1. Without prejudice to the other provisions of this Treaty, the Council, acting in accordance with the procedure referred to in Article 189b, shall adopt the measures necessary to further the objectives referred to in Article 130u. Such measures may take the form of multi-annual programmes.’ In Article 137, the following paragraph shall be added: ‘The number of Members of the European Parliament shall not exceed seven hundred.’ Article 138 shall be amended as follows: (a) in paragraph 3, the first subparagraph shall be replaced by the following: ‘3. The European Parliament shall draw up a proposal for elections by direct universal suffrage in accordance with a uniform procedure in all Member States or in accordance with principles common to all Member States.’; (b) the following paragraph shall be added: ‘4. The European Parliament shall, after seeking an opinion from the Commission and with the approval of the Council acting unanimously, lay down the regulations and general conditions governing the performance of the duties of its Members.’ Article 151 shall be replaced by the following: ‘Article 151 1. A committee consisting of the Permanent Representatives of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the Council. The Committee may adopt procedural decisions in cases provided for in the Council’s Rules of Procedure. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-General, High Representative for the common foreign and security policy, who shall be assisted by a Deputy Secretary-General responsible for the running of the General Secretariat. The Secretary-General and the Deputy Secretary-General shall be appointed by the Council acting unanimously. The Council shall decide on the organisation of the General Secretariat. The Council shall adopt its Rules of Procedure. For the purpose of applying Article 191a(3), the Council shall elaborate in these Rules the conditions under which the public shall have access to Council documents. For the purpose of this paragraph, the Council shall define the cases in which it is to be regarded as acting in its legislative capacity, with a view to allowing greater access to documents in those cases, while at the same time preserving the effectiveness of its decision making process. In any event, when the Council acts in its legislative capacity, the results of votes and explanations of vote as well as statements in the minutes shall be made public.’ In Article 158(2), the first and second subparagraphs shall be replaced by the following: ‘2. The governments of the Member States shall nominate by common accord the person they intend to appoint as President of the Commission; the nomination shall be approved by the European Parliament. The governments of the Member States shall, by common accord with the nominee for President, nominate the other persons whom they intend to appoint as Members of the Commission.’ In Article 163, the following paragraph shall be inserted as the first paragraph: ‘The Commission shall work under the political guidance of its President.’ In Article 173, the third paragraph shall be replaced by the following: ‘The Court of Justice shall have jurisdiction under the same conditions in actions brought by the European Parliament, by the Court of Auditors and by the ECB for the purpose of protecting their prerogatives.’ Article 188c shall be amended as follows: (a) The second subparagraph of paragraph 1 shall be replaced by the following: ‘The Court of Auditors shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions which shall be published in the Official Journal of the European Communities.’; (b) The first subparagraph of paragraph 2 shall be replaced by the following: ‘2. The Court of Auditors shall examine whether all revenue has been received and all expenditure incurred in a lawful and regular manner and whether the financial management has been sound. In doing so, it shall report in particular on any cases of irregularity.’; (c) Paragraph 3 shall be replaced by the following: ‘3. The audit shall be based on records and, if necessary, performed on the spot in the other institutions of the Community, on the premises of any body which manages revenue or expenditure on behalf of the Community and in the Member States, including on the premises of any natural or legal person in receipt of payments from the budget. In the Member States the audit shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent national departments. The Court of Auditors and the national audit bodies of the Member States shall cooperate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The other institutions of the Community, any bodies managing revenue or expenditure on behalf of the Community, any natural or legal person in receipt of payments from the budget, and the national audit bodies or, if these do not have the necessary powers, the competent national departments, shall forward to the Court of Auditors, at its request, any document or information necessary to carry out its task. In respect of the European Investment Bank’s activity in managing Community expenditure and revenue, the Court’s rights of access to information held by the Bank shall be governed by an agreement between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall nevertheless have access to information necessary for the audit of Community expenditure and revenue managed by the Bank.’ Article 189b shall be replaced by the following: ‘Article 189b 1. Where reference is made in this Treaty to this Article for the adoption of an act, the following procedure shall apply. The Commission shall submit a proposal to the European Parliament and the Council. The Council, acting by a qualified majority after obtaining the opini on of the European Parliament, – if it approves all the amendments contained in the European Parliament’s opinion, may adopt the proposed act thus amended; – if the European Parliament does not propose any amendments, may adopt the proposed act; – shall otherwise adopt a common position and communicate it to the European Parliament. The Council shall inform the European Parliament fully of the reasons which led it to adopt its common position. The Commission shall inform the European Parliament fully of its position. If, within three months of such communication, the European Parliament: (a) approves the common position or has not taken a decision, the act in question shall be deemed to have been adopted in accordance with that common position; (b) rejects, by an absolute majority of its component members, the common position, the proposed act shall be deemed not to have been adopted; (c) proposes amendments to the common position by an absolute majority of its component members, the amended text shall be forwarded to the Council and to the Commission, which shall deliver an opinion on those amendments. If, within three months of the matter being referred to it, the Council, acting by a qualified majority, approves all the amendments of the European Parliament, the act in question shall be deemed to have been adopted in the form of the common position thus amended; however, the Council shall act unanimously on the amendments on which the Commission has delivered a negative opinion. If the Council does not approve all the amendments, the President of the Council, in agreement with the President of the European Parliament, shall within six weeks convene a meeting of the Conciliation Committee. The Conciliation Committee, which shall be composed of the members of the Council or their representatives and an equal number of representatives of the European Parliament, shall have the task of reaching agreement on a joint text, by a qualified majority of the members of the Council or their representatives and by a majority of the representatives of the European Parliament. The Commission shall take part in the Conciliation Committee’s proceedings and shall take all the necessary initiatives with a view to reconciling the positions of the European Parliament and the Council. In fulfilling this task, the Conciliation Committee shall address the common position on the basis of the amendments proposed by the European Parliament. If, within six weeks of its being convened, the Conciliation Committee approves a joint text, the European Parliament, acting by an absolute majority of the votes cast, and the Council, acting by a qualified majority, shall each have a period of six weeks from that approval in which to adopt the act in question in accordance with the joint text. If either of the two institutions fails to approve the proposed act within that period, it shall be deemed not to have been adopted. Where the Conciliation Committee does not approve a joint text, the proposed act shall be deemed not to have been adopted. The periods of three months and six weeks referred to in this Article shall be extended by a maximum of one month and two weeks respectively at the initiative of the European Parliament or the Council.’ The following Article shall be inserted: ‘Article 191a 1. Any citizen of the Union, and any natural or legal person residing or having their registered office in a Member State, shall have a right of access to European Parliament, Council and Commission documents, subject to the principles and the conditions to be defined in accordance with paragraphs 2 and 3. General principles and limits on grounds of public or private interest governing this right of access to documents shall be determined by the Council, acting in accordance with the procedure referred to in Article 189b within two years of the entry into force of the Treaty of Amsterdam. Each institution referred to above shall elaborate in its own Rules of Procedure specific provisions regarding access to its documents.’ In Article 198, the following paragraph shall be added: ‘The Committee may be consulted by the European Parliament.’ In Article 198a, the third paragraph shall be replaced by the following: ‘The members of the Committee and an equal number of alternate members shall be appointed for four years by the Council acting unanimously on proposals from the respective Member States. Their term of office shall be renewable. No member of the Committee shall at the same time be a Member of the European Parliament.’ In Article 198b the second paragraph shall be replaced by the following: ‘It shall adopt its Rules of Procedure.’ Article 198c shall be amended as follows: (a) the first paragraph shall be replaced by the following: ‘The Committee of the Regions shall be consulted by the Council or by the Commission where this Treaty so provides and in all other cases, in particular those which concern cross-border cooperation, in which one of these two institutions considers it appropriate.’; (b) after the third paragraph, the following paragraph shall be inserted: ‘The Committee of the Regions may be consulted by the European Parliament.’ In Article 205, the first paragraph shall be replaced by the following: ‘The Commission shall implement the budget, in accordance with the provisions of the regulations made pursuant to Article 209, on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial management. Member States shall cooperate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management.’ Article 206(1) shall be replaced by the following: ‘1. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give a discharge to the Commission in respect of the implementation of the budget. To this end, the Council and the European Parliament in turn shall examine the accounts and the financial statement referred to in Article 205a, the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, the statement of assurance referred to in Article 188c(1), second subparagraph and any relevant special reports by the Court of Auditors.’ Article 209a shall be replaced by the following: ‘Article 209a 1. The Community and the Member States shall counter fraud and any other illegal activities affecting the financial interests of the Community through measures to be taken in accordance with this Article, which shall act as a deterrent and be such as to afford effective protection in the Member States. Member States shall take the same measures to counter fraud affecting the financial interests of the Community as they take to counter fraud affecting their own financial interests. Without prejudice to other provisions of this Treaty, the Member States shall coordinate their action aimed at protecting the financial interests of the Community against fraud. To this end they shall organise, together with the Commission, close and regular cooperation between the competent authorities. The Council, acting in accordance with the procedure referred to in Article 189b, after consulting the Court of Auditors, shall adopt the necessary measures in the fields of the prevention of and fight against fraud affecting the financial interests of the Community with a view to affording effective and equivalent protection in the Membe r States. These measures shall not concern the application of national criminal law or the national administration of justice. The Commission, in cooperation with Member States, shall each year submit to the European Parliament and to the Council a report on the measures taken for the implementation of this Article.’ The following Article shall be inserted: ‘Article 213a 1. Without prejudice to Article 5 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, the Council, acting in accordance with the procedure referred to in Article 189b, shall adopt measures for the production of statistics where necessary for the performance of the activities of the Community. The production of Community statistics shall conform to impartiality, reliability, objectivity, scientific independence, cost-effectiveness and statistical confidentiality; it shall not entail excessive burdens on economic operators.’ The following Article shall be inserted: ‘Article 213b 1. From 1 January 1999, Community acts on the protection of individuals with regard to the processing of personal data and the free movement of such data shall apply to the institutions and bodies set up by, or on the basis of, this Treaty. Before the date referred to in paragraph 1, the Council, acting in accordance with the procedure referred to in Article 189b, shall establish an independent supervisory body responsible for monitoring the application of such Community acts to Community institutions and bodies and shall adopt any other relevant provisions as appropriate.’ Article 227(2) shall be replaced by the following: ‘2. The provisions of this Treaty shall apply to the French overseas departments, the Azores, Madeira and the Canary Islands. However, taking account of the structural social and economic situation of the French overseas departments, the Azores, Madeira and the Canary Islands, which is compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall adopt specific measures aimed, in particular, at laying down the conditions of application of the present Treaty to those regions, including common policies. The Council shall, when adopting the relevant measures referred to in the second subparagraph, take into account areas such as customs and trade policies, fiscal policy, free zones, agriculture and fisheries policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions of access to structural funds and to horizontal Community programmes. The Council shall adopt the measures referred to in the second subparagraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Community legal order, including the internal market and common policies.’ Article 228 shall be amended as follows: (a) the second subparagraph of paragraph 1 shall be replaced by the following: ‘In exercising the powers conferred upon it by this paragraph, the Council shall act by a qualified majority, except in the cases where the first subparagraph of paragraph 2 provides that the Council shall act unanimously.’; (b) paragraph 2 shall be replaced by the following: ‘2. Subject to the powers vested in the Commission in this field, the signing, which may be accompanied by a decision on provisional application before entry into force, and the conclusion of the agreements shall be decided on by the Council, acting by a qualified majority on a proposal from the Commission. The Council shall act unanimously when the agreement covers a field for which unanimity is required for the adoption of internal rules and for the agreements referred to in Article 238. By way of derogation from the rules laid down in paragraph 3, the same procedures shall apply for a decision to suspend the application of an agreement, and for the purpose of establishing the positions to be adopted on behalf of the Community in a body set up by an agreement based on Article 238, when that body is called upon to adopt decisions having legal effects, with the exception of decisions supplementing or amending the institutional framework of the agreement. The European Parliament shall be immediately and fully informed on any decision under this paragraph concerning the provisional application or the suspension of agreements, or the establishment of the Community position in a body set up by an agreement based on Article 238.’ The following Article shall be inserted: ‘Article 236 1. Where a decision has been taken to suspend the voting rights of the representative of the government of a Member State in accordance with Article F.1(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1) of the Treaty on European Union has been determined in accordance with Article F.1(1) of that Treaty, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the application of this Treaty to the Member State in question. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons. The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed. When taking decisions referred to in paragraphs 2 and 3, the Council shall act without taking into account the votes of the representative of the government of the Member State in question. By way of derogation from Article 148(2) a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 148(2). This paragraph shall also apply in the event of voting rights being suspended in accordance with paragraph 1. In such cases, a decision requiring unanimity shall be taken without the vote of the representative of the government of the Member State in question.’ The Protocol on Social Policy and the Agreement on social policy attached thereto shall be repealed. The Protocol on the Economic and Social Committee and the Committee of the Regions shall be repealed. The Treaty establishing the European Coal and Steel Community shall be amended in accordance with the provisions of this Article. In Article 10(2) the first and second subparagraphs shall be replaced by the following: ‘2. The governments of the Member States shall nominate by common accord the person they intend to appoint as President of the Commission; the nomination shall be approved by the European Parliament. The governments of the Member States shall, by common accord with the nominee for President, nominate the other persons whom they intend to appoint as Members of the Commission.’ In Article 13, the following paragraph shall be inserted as the first paragraph: ‘The Commission shall work under the political guidance of its President.’ In Article 20, the following paragraph shall be added: ‘The number of Members of the European Parliament shall not exceed seven hundred.’ Article 21 shall be amended as follows: (a) in paragraph 3, the first subparagraph shall be replaced by the following: ‘3. The European Parliament shall draw up a proposal for elections by direct universal suffrage in accordance with a uniform procedure in all Member States or in accordance with principles common to all Member States.’; (b) the following paragraph shall be added: ‘4. The European Parliament shall, after seeking an opinion from the Commission and with the approval of the Council acting unanimously, lay down the regulations and general conditions governing the performance of the duties of its Members.’ Article 30 shall be replaced by the following: ‘Article 30 1. A committee consisting of the Permanent Representatives of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the Council. The Committee may adopt procedural decisions in cases provided for in the Council’s Rules of Procedure. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-General, High Representative for the common foreign and security policy, who shall be assisted by a Deputy Secretary-General responsible for the running of the General Secretariat. The Secretary-General and the Deputy Secretary-General shall be appointed by the Council acting unanimously. The Council shall decide on the organisation of the General Secretariat. The Council shall adopt its Rules of Procedure.’ In Article 33, the fourth paragraph shall be replaced by the following: ‘The Court of Justice shall have jurisdiction under the same conditions in actions brought by the European Parliament and by the Court of Auditors for the purpose of protecting their prerogatives.’ Article 45c shall be amended as follows: (a) The second subparagraph of paragraph 1 shall be replaced by the following: ‘The Court of Auditors shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions which shall be published in the Official Journal of the European Communities.’; (b) The first subparagraph of paragraph 2 shall be replaced by the following: ‘2. The Court of Auditors shall examine whether all revenue has been received and all expenditure incurred in a lawful and regular manner and whether the financial management has been sound. In doing so, it shall report in particular on any cases of irregularity.’; (c) Paragraph 3 shall be replaced by the following: ‘3. The audit shall be based on records and, if necessary, performed on the spot in the other institutions of the Community, on the premises of any body which manages revenue or expenditure on behalf of the Community and in the Member States, including on the premises of any natural or legal person in receipt of payments from the budget. In the Member States the audit shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent national departments. The Court of Auditors and the national audit bodies of the Member States shall cooperate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The other institutions of the Community, any bodies managing revenue or expenditure on behalf of the Community, any natural or legal person in receipt of payments from the budget, and the national audit bodies or, if these do not have the necessary powers, the competent national departments, shall forward to the Court of Auditors, at its request, any document or information necessary to carry out its task. In respect of the European Investment Bank’s activity in managing Community expenditure and revenue, the Court’s rights of access to information held by the Bank shall be governed by an agreement between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall nevertheless have access to information necessary for the audit of Community expenditure and revenue managed by the Bank.’ In Article 78c, the first paragraph shall be replaced by the following: ‘The Commission shall implement the budget, in accordance with the provisions of the regulations made pursuant to Article 78h, on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial management. Member States shall cooperate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management.’ Article 78g(1) shall be replaced by the following: ‘1. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give a discharge to the Commission in respect of the implementation of the budget. To this end, the Council and the European Parliament in turn shall examine the accounts and the financial statement referred to in Article 78d, the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, the statement of assurance referred to in Article 45c(1), second subparagraph, and any relevant special reports by the Court of Auditors.’ The following Article shall be inserted: ‘Article 96 1. Where a decision has been taken to suspend the voting rights of the representative of the government of a Member State in accordance with Article F.1(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1) of the Treaty on European Union has been determined in accordance with Article F.1(1) of that Treaty, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the application of this Treaty to the Member State in question. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons. The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed. When taking decisions referred to in paragraphs 2 and 3, the Council shall act without taking into account the votes of the representative of the government of the Member State in question. By way of derogation from Article 28, fourth paragraph, a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 28, fourth paragraph. This paragraph shall also apply in the event of voting rights being suspended in accordance with paragraph 1. In such cases, a decision requiring unanimity shall be taken without the vote of the representative of the government of the Member State in question.’ The Treaty establishing the European Atomic Energy Community shall be amended in accordance with the provisions of this Article. In Article 107, the following paragraph shall be added: ‘The number of Members of the European Parliament shall not exceed seven hundred.’ Article 108 shall be amended as follows: (a) in paragraph 3, the first subparagraph shall be replaced by the following: ‘3. The European Parliament shall draw up a proposal for elections by direct universal suffrage in accordance with a uniform procedure in all Member States or in accordance with principles common to all Member States.’; (b) the following paragraph shall be added: ‘4. The European Parliament shall, after seeking an opinion from the Commission and with the approval of the Council acting unanimously, lay down the regulations and general conditions governing the performance of the duties of its Members.’ Article 121 shall be replaced by the following: ‘Article 121 1. A committee consisting of the Permanent Representatives of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the Council. The Committee may adopt procedural decisions in cases provided for in the Council’s Rules of Procedure. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-General, High Representative for the common foreign and security policy, who shall be assisted by a Deputy Secretary-General responsible for the running of the General Secretariat. The Secretary-General and the Deputy Secretary-General shall be appointed by the Council acting unanimously. The Council shall decide on the organisation of the General Secretariat. The Council shall adopt its Rules of Procedure.’ In Article 127, the first and second subparagraphs of paragraph 2 shall be replaced by the following: ‘2. The governments of the Member States shall nominate by common accord the person they intend to appoint as President of the Commission; the nomination shall be approved by the European Parliament. The governments of the Member States shall, by common accord with the nominee for President, nominate the other persons whom they intend to appoint as Members of the Commission.’ In Article 132, the following paragraph shall be inserted as the first paragraph: ‘The Commission shall work under the political guidance of its President.’ In Article 146, the third paragraph shall be replaced by the following: ‘The Court of Justice shall have jurisdiction under the same conditions in actions brought by the European Parliament and by the Court of Auditors for the purpose of protecting their prerogatives,’ 7. Article 160c shall be amended as follows: (a) the second subparagraph of paragraph 1 shall be replaced by the following: ‘The Court of Auditors shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions which shall be published in the Official Journal of the European Communities.’; (b) the first subparagraph of paragraph 2 shall be replaced by the following: ‘2. The Court of Auditors shall examine whether all revenue has been received and all expenditure incurred in a lawful and regular manner and whether the financial management has been sound. In doing so, it shall report in particular on any cases of irregularity.’; (c) paragraph 3 shall be replaced by the following: ‘3. The audit shall be based on records and, if necessary, performed on the spot in the other institutions of the Community, on the premises of any body which manages revenue or expenditure on behalf of the Community and in the Member States, including on the premises of any natural or legal person in receipt of payments from the budget. In the Member States the audit shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent national departments. The Court of Auditors and the national audit bodies of the Member States shall cooperate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The other institutions of the Community, any bodies managing revenue or expenditure on behalf of the Community, any natural or legal person in receipt of payments from the budget, and the national audit bodies or, if these do not have the necessary powers, the competent national departments, shall forward to the Court of Auditors, at its request, any document or information necessary to carry out its task. In respect of the European Investment Bank’s activity in managing Community expenditure and revenue, the Court’s rights of access to information held by the Bank shall be governed by an agreement between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall nevertheless have access to information necessary for the audit of Community expenditure and revenue managed by the Bank.’ In Article 170, the following paragraph shall be added: ‘The Committee may be consulted by the European Parliament.’ In Article 179, the first paragraph shall be replaced by the following: ‘The Commission shall implement the budget, in accordance with the provisions of the regulations made pursuant to Article 183, on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial management. Member States shall cooperate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management.’ Article 180b(1) shall be replaced by the following: ‘1. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give a discharge to the Commission in respect of the implementation of the budget. To this end, the Council and the European Parliament in turn shall examine the accounts and the financial statement referred to in Article 179a, the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, the statement of assurance referred to in Article 160c(1), second subparagraph, and any relevant special reports by the Court of Auditors.’ The following Article shall be inserted: ‘Article 204 1. Where a decision has been taken to suspend the voting rights of the representative of the government of a Member State in accordance with Article F.1(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1) of the Treaty on European Union has been determined in accordance with Article F.1(1) of that Treaty, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the application of this Treaty to the Member State in question. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons. The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed. When taking decisions referred to in paragraphs 2 and 3, the Council shall act without taking into account the votes of the representative of the government of the Member State in question. By way of derogation from Article 118(2) a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 118(2). This paragraph shall also apply in the event of voting rights being suspended in accordance with paragraph 1. In such cases, a decision requiring unanimity shall be taken without the vote of the representative of the government of the Member State in question.’ The Act concerning the election of the representatives of the European Parliament by direct universal suffrage annexed to the Council Decision of 20 September 1976 shall be amended in accordance with the provisions of this Article. In Article 2, the following paragraph shall be added: ‘In the event of amendments to this Article, the number of representatives elected in each Member State must ensure appropriate representation of the peoples of the States brought together in the Community.’. In Article 6(1), the following indent shall be inserted after the fifth indent: ‘- member of the Committee of the Regions,’. Article 7(2) shall be replaced by the following: ‘2. Pending the entry into force of a uniform electoral procedure or a procedure based on common principles and subject to the other provisions of this Act, the electoral procedure shall be governed in each Member State by its national provisions.’ Article 11 shall be replaced by the following: ‘Pending the entry into force of the uniform electoral procedure or the procedure based on common principles referred to in Article 7, the European Parliament shall verify the credentials of representatives. For this purpose it shall take note of the results declared officially by the Member States and shall rule on any disputes which may arise out of the provisions of this Act other than those arising out of the national provisions to which the Act refers.’ Article 12(1) shall be replaced by the following: ‘1. Pending the entry into force of the uniform electoral procedure or the procedure based on common principles referred to in Article 7 and subject to the other provisions of this Act, each Member State shall lay down appropriate procedures for filling any seat which falls vacant during the five-year term of office referred to in Article 3 for the remainder of that period.’ The Treaty establishing the European Community, including the annexes and protocols thereto, shall be amended in accordance with the provisions of this Article for the purpose of deleting lapsed provisions of the Treaty and adapting in consequence the text of certain of its provisions. TEXT OF THE ARTICLES OF THE TREATY 1. In Article 3, point (a), the word ‘elimination’ shall be replaced by ‘prohibition’. Article 7 shall be repealed. Article 7a shall be amended as follows: (a) the first and second paragraphs shall be numbered and thus become paragraphs 1 and 2; (b) in the new paragraph 1, the following references shall be deleted: ‘7b’, ‘70(1)’ and ‘and 100b’; before the citation of Article 100a, the comma shall be replaced by the word ‘and’; (c) there shall be added a paragraph 3 with the wording of the second paragraph of Article 7b which reads as follows: ‘3. The Council, acting by a qualified majority on a proposal from the Commission, shall determine the guidelines and conditions necessary to ensure balanced progress in all the sectors concerned.’. Article 7b shall be repealed. Article 8b shall be amended as follows: (a) in paragraph 1 the words ‘to be adopted before 31 December 1994’ shall be replaced by ‘adopted’; (b) in paragraph 2, first sentence, the reference to ‘Article 138(3)’ shall become ‘Article 138(4)’; (c) in paragraph 2, second sentence, the words ‘to be adopted before 31 December 1993’ shall be replaced by ‘adopted’. In Article 8c, second sentence, the words ‘Before 31 December 1993, Member States . .’ shall be replaced by ‘Member States . In Article 8e, first paragraph, the words ‘before 31 December 1993 and then,’ shall be deleted, as well as the comma after the words ‘every three years’. In Article 9(2), the words ‘The provisions of Chapter 1, Section 1, and of Chapter 2 . .’ shall be replaced by ‘The provisions of Article 12 and of Chapter 2 . In Article 10, paragraph 2 shall be deleted and paragraph 1 shall remain without a number. Article 11 shall be repealed. In Chapter 1, The Customs Union, the heading ‘Section 1 – Elimination of customs duties between Member States’ shall be deleted. Article 12 shall be replaced by the following: ‘Article 12 Customs duties on imports and exports and charges having equivalent effect shall be prohibited between Member States. This prohibition shall also apply to customs duties of a fiscal nature.’. Articles 13 to 17 shall be repealed. The heading ‘Section 2 – Setting up of the Common Customs Tariff’ shall be deleted. Articles 18 to 27 shall be repealed. Article 28 shall be replaced by the following: ‘Article 28 Common Customs Tariff duties shall be fixed by the Council acting by a qualified majority on a proposal from the Commission.’. In the introductory part of Article 29, the words ‘this Section’ shall be replaced by ‘this Chapter’. In the title of Chapter 2, the word ‘Elimination’ shall be replaced by ‘Prohibition’. In Article 30, the words ‘shall, without prejudice to the following provisions, be prohibited . .’ shall be replaced by ‘shall be prohibited . Articles 31, 32 and 33 shall be repealed. In Article 34, paragraph 2 shall be deleted and paragraph 1 shall remain without a number. Article 35 shall be repealed. In Article 36, the words ‘The provisions of Articles 30 to 34’ shall be replaced by ‘The provisions of Articles 30 and 34’. Article 37 shall be amended as follows: (a) in paragraph 1, first subparagraph, the word ‘progressively’ and the words ‘when the transitional period has ended’ shall be deleted; (b) in paragraph 2, the word ‘abolition’ shall be replaced by ‘prohibition’; (c) paragraphs 3, 5 and 6 shall be deleted and paragraph 4 shall become paragraph 3; (d) in the new paragraph 3, the words ‘account being taken of the adjustments that will be possible and the specialization that will be needed with the passage of time.’ shall be deleted and the comma after ‘concerned’ shall become a full stop. Article 38 shall be amended as follows: (a) in paragraph 3, first sentence, the reference to Annex II shall be replaced by a reference to Annex I and the second sentence, beginning with the words ‘Within two years of the entry into force . .’ shall be deleted; (b) in paragraph 4, the words ‘among the Member States.’ shall be deleted. Article 40 shall be amended as follows: (a) paragraph 1 shall be deleted and paragraphs 2, 3 and 4 shall become paragraphs 1, 2 and 3; (b) (does not concern the English language ver sion); (c) in new paragraph 2, the reference to ‘paragraph 2’ shall become ‘paragraph 1’; (d) in new paragraph 3, the reference to ‘paragraph 2’ shall become ‘paragraph 1’; 27. Article 43 shall be amended as follows: (a) in paragraph 2, third subparagraph, the words ‘acting unanimously during the first two stages and by a qualified majority thereafter’ shall be replaced by ‘acting by a qualified majority’; (b) in paragraphs 2 and 3, the reference to ‘Article 40(2)’ shall become ‘Article 40(1)’. Articles 44 and 45 and Article 47 shall be repealed. In Article 48(1), the words ‘by the end of the transitional period at the latest’ shall be deleted. Article 49 shall be amended as follows: (a) in the introductory part, the words ‘As soon as this Treaty enters into force, the Council . .’ shall be replaced by ‘The Council . .’ and the words ‘by progressive stages’ together with the commas preceding and following those words shall be deleted; (b) in points (b) and (c) respectively, the words ‘systematically and progressively’ shall be deleted. The first paragraph of Article 52 shall be amended as follows: (a) in the first sentence, the words ‘abolished by progressive stages in the course of the transitional period’ shall be replaced by the word ‘prohibited’; (b) in the second sentence, the words ‘progressive abolition’ shall be replaced by the word ‘prohibition’. Article 53 shall be repealed. Article 54 shall be amended as follows: (a) paragraph 1 shall be deleted and paragraphs 2 and 3 shall become paragraphs 1 and 2; (b) in new paragraph 1, the words ‘implement this general programme or, in the absence of such a programme, in order to achieve a stage in attaining’ shall be replaced by ‘attain’. In Article 59, first paragraph, the words ‘progressively abolished during the transitional period’ shall be replaced by ‘prohibited’. In Article 61(2), the word ‘progressive’ shall be deleted. Article 62 shall be repealed. Article 63 shall be amended as follows: (a) paragraph 1 shall be deleted and paragraphs 2 and 3 shall become paragraphs 1 and 2; (b) in new paragraph 1, the words ‘implement this general programme or, in the absence of such a programme, in order to achieve a stage in’ shall be replaced by the word ‘achieve’ and the words ‘unanimously until the end of the first stage and by a qualified majority thereafter’ shall be replaced by the words ‘by a qualified majority’; (c) in new paragraph 2, the words ‘As regards the proposals and decisions referred to in paragraphs 1 and 2’ shall be replaced by ‘As regards the directives referred to in paragraph 1’. In Article 64, first paragraph, ‘Article 63(2)’ shall be replaced by ‘Article 63(1)’. Articles 67 to 73a, Article 73e and Article 73h shall be repealed. Article 75(2) shall be deleted and paragraph 3 shall become paragraph 2. In Article 76, the words ‘when this Treaty enters into force’ shall be replaced by ‘on 1 January 1958 or, for acceding States, the date of their accession’. Article 79 shall be amended as follows: (a) in paragraph 1 the words ‘at the latest, before the end of the second stage’ shall be deleted; (b) in paragraph 3, the words ‘Within two years of the entry into force of this Treaty, the Council shall’ shall be replaced by ‘The Council shall’. In Article 80(1), the words ‘as from the beginning of the second stage’ shall be deleted. In Article 83, the words ‘without prejudice to the powers of the transport section of the Economic and Social Committee.’ shall be replaced by ‘without prejudice to the powers of the Economic and Social Committee.’. In Article 84(2), second subparagraph, the words ‘procedural provisions of Article 75(1) and (3)’ shall be replaced by ‘procedural provisions of Article 75’. In Article 87, the two subparagraphs of paragraph 1 shall be merged into a single paragraph. This new paragraph shall read as follows: ‘1. The appropriate regulations or directives to give effect to the principles set out in Articles 85 and 86 shall be laid down by the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament.’. In Article 89(1), the words ‘, as soon as it takes up its duties,’ shall be deleted. After Article 90, the heading ‘Section 2 – Dumping’ shall be deleted. Article 91 shall be repealed. Before Article 92, the heading ‘Section 3’ shall be replaced by ‘Section 2’. In Article 92(3)(c), the second sentence, beginning ‘However, the aids granted to shipbuilding . .’ and ending ‘towards third countries;’ shall be deleted and the remaining part of point (c) shall end with a semicolon. In Article 95, the third paragraph shall be deleted. Article 97 and Article 100b shall be repealed. In Article 101, second paragraph, the words ‘acting unanimously during the first stage and by a qualified majority thereafter’ shall be replaced by ‘acting by a qualified majority’. In Article 109e(2)(a), first indent, the following words shall be deleted: ‘, without prejudice to Article 73e,’. Article 109f shall be amended as follows: (a) in paragraph 1, second subparagraph, the words ‘on a recommendation from, as the case may be, the Committee of Governors of the central banks of the Member States (hereinafter referred to as “Committee of Governors”) or the Council of the EMI’ shall be replaced by ‘on a recommendation from the Council of the EMI’; (b) in paragraph 1, the fourth subparagraph which states ‘The Committee of Governors shall be dissolved at the start of the second stage.’ shall be deleted; (c) in paragraph 8, the second subparagraph which states ‘Where this Treaty provides for a consultative role for the EMI, references to the EMI shall be read, before 1 January 1994, as referring to the Committee of Governors.’ shall be deleted. Article 112 shall be amended as follows: (a) in paragraph 1, first subparagraph, the words ‘before the end of the transitional period’ shall be deleted; (b) in paragraph 1, second subparagraph, the words ‘acting unanimously until the end of the second stage and by a qualified majority thereafter’ shall be replaced by ‘acting by a qualified majority’. In Article 129c(1), first subparagraph, third indent, the words ‘Cohesion Fund to be set up no later than 31 December 1993’ shall be replaced by ‘Cohesion Fund set up’. In Article 130d, second paragraph, the words ‘The Council, acting in accordance with the same procedure, shall before 31 December 1993 set up a Cohesion Fund to’ shall be replaced by ‘A Cohesion Fund set up by the Council in accordance with the same procedure shall’. In Article 130s, paragraph 5, second indent, the words ‘Cohesion Fund to be set up no later than 31 December 1993 pursuant to Article 130d’ shall be replaced by ‘Cohesion Fund set up pursuant to Article 130d.’. In Article 130w, paragraph 3, the words ‘ACP-EEC Convention’ shall be replaced by ‘ACP-EC Convention’. In Article 131, first paragraph, the words ‘Belgium’ and ‘Italy’ shall be deleted and the reference to Annex IV shall be replaced by a reference to Annex II. 63. Article 133 shall be amended as follows: (a) in paragraph 1, the words ‘completely abolished’ shall be replaced by the word ‘prohibited’ and the words ‘progressive abolition’ shall be replaced by the word ‘prohibition’; (b) in paragraph 2, the words ‘progressively abolished’ shall be replaced by the word ‘prohibited’ and the references to Articles 13, 14, 15 and 17 shall be deleted with the result that the paragraph ends with the words ‘. in accordance with the provisions of Article 12.’; (c) in paragraph 3, second subparagraph, the words ‘shall nevertheless be progressively reduced to’ shall be replaced by ‘may not exceed’ and the second sentence beginning ‘The percentages and the timetable . .’ and ending with ‘importing country or territory.’ shall be deleted; (d) in paragraph 4, the words ‘when this Treaty enters into force’ shall be deleted. Article 136 shall be replaced by the following: ‘Article 136 The Council, acting unanimously, shall, on the basis of the experience acquired under the association of the countries and territories with the Community and of the principles set out in this Treaty, lay down provisions as regards the detailed rules and the procedure for the association of the countries and territories with the Community.’. Article 138 shall be amended as follows, to include Article 1, Article 2 as amended by Article 5 of this Treaty, and Article 3(1) of the Act concerning the election of the representatives of the European Parliament by direct universal suffrage, annexed to the Council Decision of 20 September 1976; Annex II of that Act shall continue to be applied: (a) in the place of paragraphs 1 and 2, which lapsed in accordance with Article 14 of the Act concerning the election of the representatives of the European Parliament, there shall be inserted the text of Articles 1 and 2 of the said Act as paragraphs 1 and 2; the new paragraphs 1 and 2 shall read as follows: ‘1. The representatives in the European Parliament of the peoples of the States brought together in the Community shall be elected by direct universal suffrage. The number of representatives elected in each Member State shall be as follows: In the event of amendments to this paragraph, the number of representatives elected in each Member State must ensure appropriate representation of the peoples of the States brought together in the Community.’; (b) after the new paragraphs 1 and 2, there shall be inserted the text of Article 3(1) of the aforesaid Act as paragraph 3; the new paragraph 3 shall read as follows: ‘3. Representatives shall be elected for a term of five years.’; (c) the existing paragraph 3 as amended by Article 2 of this Treaty shall become paragraph 4; (d) paragraph 4 as added by Article 2 of this Treaty shall become paragraph 5. Article 158(3) shall be deleted. In Article 166, first paragraph, the words ‘as from the date of accession’ shall be replaced by ‘as from 1 January 1995’. In Article 188b(3), the second subparagraph, commencing ‘However, when the first appointments . .’ shall be deleted. In Article 197, the second paragraph, commencing ‘In particular, it shall . .’ shall be deleted. In Article 207, the second, third, fourth and fifth paragraphs shall be deleted. In the place of Article 212 there shall be inserted the text of Article 24(1), second subparagraph, of the Treaty establishing a Single Council and a Single Commission of the European Communities; the new Article 212 shall accordingly read as follows: ‘Article 212 The Council shall, acting by a qualified majority on a proposal from the Commission and after consulting the other institutions concerned, lay down the Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of those Communities.’. In the place of Article 218 there shall be inserted the adapted text of Article 28, first paragraph, of the Treaty establishing a Single Council and a Single Commission of the European Communities; the new Article 218 shall accordingly read as follows: ‘Article 218 The Community shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of its tasks, under the conditions laid down in the Protocol of 8 April 1965 on the privileges and immunities of the European Communities. The same shall apply to the European Central Bank, the European Monetary Institute, and the European Investment Bank.’. In Article 221 the words ‘Within three years of the entry into force of this Treaty, Member States shall accord . .’ shall be replaced by ‘Member States shall accord . In Article 223, paragraphs 2 and 3 shall be merged and replaced by the following: ‘2. The Council may, acting unanimously on a proposal from the Commission, make changes to the list, which it drew up on 15 April 1958, of the products to which the provisions of paragraph 1(b) apply.’. Article 226 shall be repealed. Article 227 shall be amended as follows: (a) in paragraph 3, the reference to Annex IV shall be replaced by a reference to Annex II; (b) after paragraph 4, a new paragraph shall be inserted as follows: ‘5. The provisions of this Treaty shall apply to the Åland Islands in accordance with the provisions set out in Protocol No 2 to the Act concerning the conditions of accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden.’; (c) the former paragraph 5 shall become paragraph 6 and point (d) thereof, concerning the Åland Islands shall be deleted; point (c) shall end with a full stop. In Article 229, first paragraph, the words ‘organs of the United Nations, of its specialised agencies and of the General Agreement on Tariffs and Trade.’ shall be replaced by ‘organs of the United Nations and of its specialised agencies.’ In Article 234, first paragraph, the words ‘before the entry into force of this Treaty’ shall be replaced by ‘before 1 January 1958 or, for acceding States, before the date of their accession’. The heading preceding Article 241 entitled ‘Setting up of the institutions’ shall be deleted. Articles 241 to 246 shall be repealed. In Article 248 a new paragraph shall be added as follows: ‘Pursuant to the Accession Treaties, the Danish, English, Finnish, Greek, Irish, Portuguese, Spanish and Swedish versions of this Treaty shall also be authentic.’. ANNEXES 1. Annex I ‘Lists A to G referred to in Articles 19 and 20 of the Treaty’ shall be deleted. Annex II ‘List referred to in Article 38 of the Treaty’ shall become Annex I and the reference to ‘AnnesAnnex II to the Treaty’ under numbers ex 22.08 and ex 22.09 shall become a reference to ‘Annex I to the Treaty’. Annex III ‘List of invisible transactions referred to in Article 73h of the Treaty’ shall be deleted. Annex IV ‘Overseas countries and territories to which the provisions of Part IV of the Treaty apply’ shall become Annex II. It is brought up to date and reads as follows: ‘ANNEX II OVERSEAS COUNTRIES AND TERRITORIES to which the provisions of Part IV of the Treaty apply – Greenland, – New Caledonia and D ependencies, – French Polynesia, – French Southern and Antarctic Territories, – Wallis and Futuna Islands, – Mayotte, – Saint Pierre and Miquelon, – Aruba, – Netherlands Antilles: – Bonaire, – Curaçao, – Saba, – Sint Eustatius, – Sint Maarten, – Anguilla, – Cayman Islands, – Falkland Islands, – South Georgia and the South Sandwich Islands, – Montserrat, – Pitcairn, – Saint Helena and Dependencies, – British Antarctic Territory, – British Indian Ocean Territory, – Turks and Caicos Islands, – British Virgin Islands, – Bermuda.’. III. PROTOCOLS AND OTHER ACTS 1. The following protocols and acts shall be repealed: (a) Protocol amending the Protocol on the privileges and immunities of the European Communities; (b) Protocol on German internal trade and connected problems; (c) Protocol on certain provisions relating to France; (d) Protocol on the Grand Duchy of Luxembourg; (e) Protocol on the treatment to be applied to products within the province of the European Coal and Steel Community in respect of Algeria and the overseas departments of the French Republic; (f) Protocol on mineral oils and certain of their derivatives; (g) Protocol on the application of the Treaty establishing the European Community to the non-European parts of the Kingdom of the Netherlands; (h) Implementing Convention on the Association of the Overseas Countries and Territories with the Community; – Protocol on the tariff quota for imports of bananas (ex 08.01 of the Brussels Nomenclature); – Protocol on the tariff quota for imports of raw coffee (ex 09.01 of the Brussels Nomenclature). At the end of the Protocol on the Statute of the European Investment Bank, the list of signatories shall be deleted. Protocol on the Statute of the Court of Justice of the European Community shall be amended as follows: (a) the words ‘HAVE DESIGNATED as their plenipotentiaries for this purpose:’ and the list of Heads of State and their plenipotentiaries shall be deleted; (b) the words ‘WHO, having exchanged their full powers, found in good and due form,’ shall be deleted; (c) in Article 3, the adapted text of Article 21 of the Protocol on the privileges and immunities of the European Communities shall be added as a fourth paragraph; this new fourth paragraph shall accordingly read as follows: ‘Articles 12 to 15 and 18 of the Protocol on the privileges and immunities of the European Communities shall apply to the Judges, Advocates-General, Registrar and Assistant Rapporteurs of the Court of Justice, without prejudice to the provisions relating to immunity from legal proceedings of Judges which are set out in the preceding paragraphs.’; (d) Article 57 shall be repealed; (e) the concluding formula ‘IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Protocol.’ shall be deleted; (f) the list of signatories shall be deleted. In Article 40 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, the words ‘annexed to the Treaty establishing a Single Council and a Single Commission of the European Communities’ shall be deleted. In Article 21 of the Protocol on the Statute of the European Monetary Institute, the words ‘annexed to the Treaty establishing a Single Council and a Single Commission of the European Communities’ shall be deleted. The Protocol on Italy shall be amended as follows: (a) in the last paragraph commencing ‘RECOGNISE that in the event . .’, the reference to Articles 108 and 109 shall be replaced by a reference to Articles 109h and 109i; (b) the list of signatories shall be deleted. The Protocol on goods originating in and coming from certain countries and enjoying special treatment when imported into a Member State shall be amended as follows: (a) in the introductory part of point 1: – the words ‘applicable, at the time of the entry into force of this Treaty’ shall be replaced by ‘applicable on 1 January 1958.’; – after the words ‘to imports’, the text of point (a) shall follow on immediately; the text resulting therefrom shall read as follows: ‘. to imports into the Benelux countries of goods originating in and coming from Suriname or the Netherlands Antilles;’; (b) in point 1, points (a), (b) and (c) shall be deleted; (c) in point 3, the words ‘Before the end of the first year after the entry into force of this Treaty, Member States . .’ shall be replaced by ‘Member States’; (d) the list of signatories shall be deleted. The Protocol concerning imports into the European Community of petroleum products refined in the Netherlands Antilles shall be amended as follows: (a) the concluding formula ‘IN WITNESS WHEREOF the undersigned Plenipotentiaries have placed their signatures below this Protocol.’ shall be deleted; (b) the list of signatories shall be deleted. In the Protocol on special arrangements for Greenland, Article 3 shall be repealed. The Treaty establishing the European Coal and Steel Community, including the annexes, protocols and other acts annexed thereto, shall be amended in accordance with the provisions of this Article for the purpose of deleting lapsed provisions of the Treaty and adapting in consequence the text of certain of its provisions. TEXT OF THE ARTICLES OF THE TREATY 1. In Article 2, second paragraph, the word ‘progressively’ shall be deleted. In Article 4, in the introductory part, the words ‘abolished and’ shall be deleted. Article 7 shall be amended as follows: (a) in the first indent, the words ‘a HIGH AUTHORITY (hereinafter referred to as “the Commission”)’ shall be replaced by ‘a COMMISSION’; (b) in the second indent, the words ‘a COMMON ASSEMBLY (hereinafter referred to as “the European Parliament”)’ shall be replaced by ‘a EUROPEAN PARLIAMENT’; (c) in the third indent, the words ‘a SPECIAL COUNCIL OF MINISTERS (hereinafter referred to as “the Council”)’ shall be replaced by ‘a COUNCIL’; 4. Article 10(3) shall be deleted. In Article 16, the first and second paragraphs shall be deleted. Article 21 shall be amended as follows, to include Article 1, Article 2 as amended by Article 5 of this Treaty, and Article 3(1) of the Act concerning the election of the representatives of the European Parliament by direct universal suffrage, annexed to the Council Decision of 20 September 1976; Annex II of that Act shall continue to be applied: (a) in the place of paragraphs 1 and 2, which lapsed in accordance with Article 14 of the Act concerning the election of the representatives of the European Parliament, there shall be inserted the text of Articles 1 and 2 of the said Act as paragraphs 1 and 2; the new paragraphs 1 and 2 shall read as follows: ‘1. The representatives in the European Parliament of the peoples of the States brought together in the Community shall be elected by direct universal suffrage. The number of representatives elected in each Member State shall be as follows: In the event of amendments to this paragraph, the number of representatives elected in each Member State must ensure appropriate representation of the peoples of the States brought together in the Community.’; (b) after the new paragraphs 1 and 2, there shall be inserted the text of Article 3(1) of the aforesaid Act as paragraph 3; the new paragraph 3 shall read as follows: ‘3. Representatives shall be elected for a term of five years.’; (c) the existing paragraph 3 as amended by Article 3 of this Treaty shall become paragraph 4; (d) paragraph 4 as added by Article 3 of this Treaty shall become paragraph 5. In Article 32a, first paragraph, the words ‘the date of accession’ shall be replaced by ‘1 January 1995’. In Article 45b(3), the second subparagraph commencing ‘However, when the first appointments . .’ shall be deleted. In Article 50, the adapted text of paragraphs 2 and 3 of Article 20 of the Treaty establishing a Single Council and a Single Commission of the European Communities shall be inserted as new paragraphs 4 and 5; the new paragraphs 4 and 5 shall accordingly read as follows: ‘4. The portion of the expenditure of the budget of the Communities covered by the levies provided for in Article 49 shall be fixed at 18 million units of account. The Commission shall submit annually to the Council a report on the basis of which the Council shall examine whether there is reason to adjust this figure to changes in the budget of the Communities. The Council shall act by the majority laid down in the first sentence of the fourth paragraph of Article 28. The adjustment shall be made on the basis of an assessment of developments in expenditure arising from the application of this Treaty. The portion of the levies assigned to cover expenditure under the budget of the Communities shall be allocated by the Commission for the implementation of that budget in accordance with the timetable provided for in the financial regulations adopted pursuant to Article 209(b) of the Treaty establishing the European Community and Article 183(b) of the Treaty establishing the Atomic Energy Community.’. Article 52 shall be repealed. In the place of Article 76 there shall be inserted the adapted text of Article 28, first paragraph, of the Treaty establishing a Single Council and a Single Commission of the European Communities; the new Article 76 shall accordingly read as follows: ‘Article 76 The Community shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of its tasks, under the conditions laid down in the Protocol of 8 April 1965 on the privileges and immunities of the European Communities.’. Article 79 shall be amended as follows: (a) in the second sentence of the first paragraph, the part of the sentence which commences ‘as regards the Saar . .’ shall be deleted and the semicolon shall be replaced by a full stop; (b) after the first paragraph, a second paragraph shall be inserted as follows: ‘The provisions of this Treaty shall apply to the Åland Islands in accordance with the provisions of Protocol No 2 of the Act concerning the conditions of accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden.’; (c) in the existing second paragraph, in the introductory part, the words ‘Notwithstanding the preceding paragraph:’ shall be replaced by ‘Notwithstanding the preceding paragraphs:’; (d) in the existing second paragraph, point (d) concerning the Åland Islands shall be deleted. In Article 84, the words ‘Treaty and its Annexes, of the Protocols annexed thereto and of the Convention on the transitional Provisions.’ shall be replaced by ‘Treaty and its Annexes and of the Protocols annexed thereto.’ Article 85 shall be repealed. In Article 93, the words ‘Organisation for European Economic Cooperation’ shall be replaced by ‘Organisation for Economic Cooperation and Development’. In Article 95, third paragraph, the words ‘If, after the end of the transitional period provided in the Convention on the Transitional Provisions, unforeseen difficulties . .’ shall be replaced by ‘If unforeseen difficulties . In Article 97, the wording ‘This Treaty is concluded for a period of 50 years from its entry into force.’ shall be replaced by ‘This Treaty shall expire on 23 July 2002.’. TEXT OF ANNEX III ‘Special steels’ At the end of Annex III, the initials of the plenipotentiaries of the Heads of State and Government shall be deleted. III. PROTOCOLS AND OTHER ACTS ANNEXED TO THE TREATY 1. The following acts shall be repealed: (a) Exchange of letters between the Government of the Federal Republic of Germany and the Government of the French Republic concerning the Saar; (b) Convention on the Transitional Provisions. The Protocol on the Statute of the Court of Justice of the European Coal and Steel Community shall be amended as follows: (a) Titles I and II of the Protocol shall be replaced by the text of Titles I and II of the Protocol on the Statute of the Court of Justice of the European Community annexed to the Treaty establishing the European Community; (b) Article 56 shall be repealed and the heading ‘Transitional provision’ which precedes it shall be deleted; (c) the list of signatories shall be deleted. The Protocol on relations with the Council of Europe shall be amended as follows: (a) Article 1 shall be repealed; (b) the list of signatories shall be deleted. The Treaty establishing the European Atomic Energy Community, including the annexes and protocols thereto, shall be amended in accordance with the provisions of this Article for the purpose of deleting lapsed provisions of the Treaty and adapting in consequence the text of certain of its provisions. TEXT OF THE ARTICLES OF THE TREATY 1. In Article 76, second paragraph, the words ‘after the entry into force of this Treaty’ shall be replaced by ‘after 1 January 1958’. In the introductory part to the first paragraph of Article 93, the words ‘Member States shall abolish between themselves, one year after the entry into force of this Treaty, all customs duties . .’ shall be replaced by ‘Member States shall prohibit between themselves all customs duties . Articles 94 and 95 shall be repealed. In Article 98, second paragraph, the words ‘Within two years of the entry into force of this Treaty, the Council . .’ shall be replaced by ‘The Council . Article 100 shall be repealed. Article 104 shall be amended as follows: (a) in the first paragraph, the words ‘after the entry into force of this Treaty’ shall be replaced by ‘after 1 January 1958 or, for acceding States, after the date of their accession,’; (b) in the second paragraph the words ‘after the entry into force of this Treaty, within the purview thereof’ shall be replaced by ‘after the dates referred to in the first paragraph, within the scope of this Treaty’. Article 105 shall be amended as follows: (a) in the first paragraph, the words ‘concluded before its entry into force by a Member State’ shall be replaced by ‘concluded before 1 January 1958 or, for acceding States, before the date of their accession, by a Member State’. At the end of that paragraph the words ‘the entry into force of this Treaty’ shall be replaced by ‘the aforesaid dates’; (b) in the second paragraph, the words ‘concluded between the signature and the entry into force of this Treaty’ shall be replaced by ‘concluded between 25 March 1957 and 1 January 1958 or, for acceding States, between the signature of the instrument of accession and the date of their accession’. In Article 106, first paragraph, the words ‘before the entry into force of this Treaty’ shall be replaced by ‘before 1 January 1958 or, for acceding States, before the date of their accession’. Article 108 shall be amended as follows, to include Article 1, Article 2 as amended by Article 5 of this Treaty, and Article 3(1) of the Act concerning the election of the representatives of the European Parliament by direct universal suffrage, annexed to the Council Decision of 20 September 1976; Annex II of that Act shall continue to be applied: (a) in the place of paragraphs 1 and 2, which lapsed in accordance with Article 14 of the Act concerning the election of the representatives of the European Parliament, there shall be inserted the text of Articles 1 and 2 of the said Act as paragraphs 1 and 2; the new paragraphs 1 and 2 shall read as follows: ‘1. The representatives in the European Parliament of the peoples of the States brought together in the Community shall be elected by direct universal suffrage. The number of representatives elected in each Member State shall be as follows: In the event of amendments to this paragraph, the number of representatives elected in each Member State must ensure appropriate representation of the peoples of the States brought together in the Community.’; (b) after the new paragraphs 1 and 2, there shall be inserted the text of Article 3(1) of the aforesaid Act as paragraph 3; the new paragraph 3 shall read as follows: ‘3. Representatives shall be elected for a term of five years.’; (c) the existing paragraph 3 as amended by Article 4 of this Treaty shall become paragraph 4; (d) paragraph 4 as added by Article 4 of this Treaty shall become paragraph 5. In Article 127, paragraph 3 shall be deleted. In Article 138, first paragraph, the words ‘the date of accession’ shall be replaced by ‘1 January 1995’. In Article 160b(3), the second subparagraph commencing ‘However, when the first appointments . .’ shall be deleted. In Article 181, the second, third and fourth paragraphs shall be deleted. In the place of Article 191 there shall be inserted the adapted text of Article 28, first paragraph, of the Treaty establishing a Single Council and a Single Commission of the European Communities; the new Article 191 shall accordingly read as follows: ‘Article 191 The Community shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of its tasks, under the conditions laid down in the Protocol of 8 April 1965 on the privileges and immunities of the European Communities.’. Article 198 shall be amended as follows: (a) after the second paragraph there shall be inserted a third paragraph as follows: ‘The provisions of this Treaty shall apply to the Åland Islands in accordance with the provisions set out in Protocol No 2 to the Act concerning the conditions of accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden.’; (b) in the existing third paragraph, point (e) concerning the Åland Islands shall be deleted. In Article 199, first paragraph, the words ‘and of the General Agreement on Tariffs and Trade’ shall be replaced by ‘and of the World Trade Organisation’. Title VI, ‘Provisions relating to the initial period’, comprising Section 1, ‘Setting up of the institutions’, Section 2, ‘Provisions for the initial application of this Treaty’ and Section 3, ‘Transitional provisions’ and Articles 209 to 223, shall be repealed. In Article 225 there shall be added a new paragraph as follows: ‘Pursuant to the Accession treaties the Danish, English, Finnish, Greek, Irish, Portuguese, Spanish and Swedish versions of this Treaty shall also be authentic.’. ANNEXES Annex V, ‘Initial research and training programme referred to in Article 215 of this Treaty’ including the table ‘Breakdown by main headings . .’ shall be deleted. III. PROTOCOLS 1. The Protocol on the application of the Treaty establishing the European Atomic Energy Community to the non-European parts of the Kingdom of the Netherlands shall be repealed. The Protocol on the Statute of the Court of Justice of the European Atomic Energy Community shall be amended as follows: (a) the words ‘HAVE DESIGNATED as their Plenipotentiaries for this Purpose:’ and the list of Heads of State and their plenipotentiaries shall be deleted; (b) the words ‘WHO, having exchanged their full powers, found in good and due form,’ shall be deleted; (c) in Article 3, the adapted text of Article 21 of the Protocol on the privileges and immunities of the European Communities shall be added as a fourth paragraph; this new fourth paragraph shall accordingly read as follows: ‘Articles 12 to 15 and 18 of the Protocol on the privileges and immunities of the European Community shall apply to the Judges, Advocates-General, Registrar and Assistant Rapporteurs of the Court of Justice, without prejudice to the provisions relating to immunity from legal proceedings of Judges which are set out in the preceding paragraphs.’; (d) Article 58 shall be repealed; (e) the concluding formula ‘IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Protocol.’ shall be deleted; (f) the list of signatories shall be deleted. Without prejudice to the paragraphs following hereinafter, which have as their purpose to retain the essential elements of their provisions, the Convention of 25 March 1957 on certain institutions common to the European Communities and the Treaty of 8 April 1965 establishing a Single Council and a Single Commission of the European Communities, but with the exception of the Protocol referred to in paragraph 5, shall be repealed. The powers conferred on the European Parliament, the Council, the Commission, the Court of Justice and the Court of Auditors by the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community shall be exercised by the single institutions under the conditions laid down respectively by the said Treaties and this Article. The functions conferred on the Economic and Social Committee by the Treaty establishing the European Community and the Treaty establishing the European Atomic Energy Community shall be exercised by a single committee under the conditions laid down respectively by the said Treaties. The provisions of Articles 193 and 197 of the Treaty establishing the European Community shall apply to that Committee. The officials and other staff of the European Communities shall form part of the single administration of those Communities and shall be governed by the provisions adopted pursuant to Article 212 of the Treaty establishing the European Community. The European Communities shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of their tasks under the conditions set out in the Protocol referred to in paragraph 5. The position shall be the same as regards the European Central Bank, the European Monetary Institute and the European Investment Bank. In the Protocol of 8 April 1965 on the privileges and immunities of the European Communities there shall be inserted an Article 23, as laid down in Protocol amending the said Protocol; that Article reads as follows: ‘Article 23 This Protocol shall also apply to the European Central Bank, to the members of its organs and to its staff, without prejudice to the provisions of the Protocol on the Statute of the European System of Central Banks and the European Central Bank. The European Central Bank shall, in addition, be exempt from any form of taxation or imposition of a like nature on the occasion of any increase in its capital and from the various formalities which may be connected therewith in the State where the Bank has its seat. The activities of the Bank and of its organs carried on in accordance with the Statute of the European System of Central Banks and of the European Central Bank shall not be subject to any turnover tax. The above provisions shall also apply to the European Monetary Institute. Its dissolution or liquidation shall not give rise to any imposition.’. The revenue and expenditure of the European Community, the administrative expenditure of the European Coal and Steel Community and the revenue relating thereto and the revenue and expenditure of the European Atomic Energy Community, except for those of the Supply Agency and Joint Undertakings, shall be shown in the budget of the European Communities, under the conditions laid down respectively in the Treaties establishing the three Communities. Without prejudice to the application of Article 216 of the Treaty establishing the European Community, Article 77 of the Treaty establishing the European Coal and Steel Community, Article 189 of the Treaty establishing the European Atomic Energy Community and the second paragraph of Article 1 of the Protocol on the Statute of the European Investment Bank, the representatives of the Governments of the Member States shall adopt by common accord the necessary provisions for the purpose of dealing with certain problems particular to the Grand Duchy of Luxembourg which arise from the creation of a Single Council and a Single Commission of the European Communities. The repeal or deletion in this Part of lapsed provisions of the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community as in force before the entry into force of this Treaty of Amsterdam and the adaptation of certain of their provisions shall not bring about any change in the legal effects of the provisions of those Treaties, in particular the legal effects arising from the time limits laid down by the said Treaties, nor of Accession Treaties. There shall be no change in the legal effects of the acts in force adopted on the basis of the said Treaties. The position shall be the same as regards the repeal of the Convention of 25 March 1957 on certain institutions common to the European Communities and the repeal of the Treaty of 8 April 1965 establishing a Single Council and a Single Commission of the European Communities. The provisions of the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community relating to the powers of the Court of Justice of the European Communities and to the exercise of those powers shall apply to the provisions of this Part and to the Protocol on privileges and immunities referred to in Article 9(5). The articles, titles and sections of the Treaty on European Union and of the Treaty establishing the European Community, as amended by the provisions of this Treaty, shall be renumbered in accordance with the tables of equivalences set out in the Annex to this Treaty, which shall form an integral part thereof. The cross references to articles, titles and sections in the Treaty on European Union and in the Treaty establishing the European Community, as well as between them, shall be adapted in consequence. The same shall apply as regards references to articles, titles and sections of those treaties contained in the other Community treaties. The references to the articles, titles and sections of the Treaties referred to in paragraph 2 contained in other instruments or acts shall be understood as references to the articles, titles and sections of the Treaties as renumbered pursuant to paragraph 1 and, respectively, to the paragraphs of the said articles, as renumbered by certain provisions of Article 6. References, contained in other instruments or acts, to paragraphs of articles of the Treaties referred to in Articles 7 and 8 shall be understood as referring to those paragraphs as renumbered by certain provisions of the said Articles 7 and 8. This Treaty is concluded for an unlimited period. This Treaty shall be ratified by the High Contracting Parties in accordance with their respective constitutional requirements. The instruments of ratification shall be deposited with the Government of the Italian Republic. This Treaty shall enter into force on the first day of the second month following that in which the instrument of ratification is deposited by the last signatory State to fulfil that formality. This Treaty, drawn up in a single original in the Danish, Dutch, English, Finnish, French, German, Greek, Irish, Italian, Portuguese, Spanish and Swedish languages, the texts in each of these languages being equally authentic, shall be deposited in the archives of the Government of the Italian Republic, which will transmit a certified copy to each of the governments of the other signatory States. En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente Tratado. Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne traktat. Zu Urkund dessen haben die unterzeichneten Bevollmäc htigten ihre Unterschriften unter diesen Vertrag gesetzt. Eις πίσtwσn twv avwtέpw, oι uπoYeYpauuέvoι πλnpeEoύσιoι uπέYpaψav tnv πapoύσa Euvθήkn. In witness whereof the undersigned Plenipotentiaries have signed this Treaty. En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent traité. Dá fhianú sin, chuir na Lánchumhachtaigh thíos-sínithe a lámh leis an gConradh seo. In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente trattato. Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder dit Verdrag hebben gesteld. Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no presente Tratado. Tämän vakuudeksi alla mainitut täysivaltaiset edustajat ovat allekirjoittaneet tämän sopimuksen. TilTill bevis härpå har undertecknade befullmäktigade undertecknat detta fördrag. Hecho en Amsterdam, el dos de octubre de mil novecientos noventa y siete. Udfærdiget i Amsterdam, den anden oktober nittenhundrede og syvoghalvfems. Geschehen zu Amsterdam am zweiten Oktober neunzehnhundertsiebenundneunzig. ΈYιve σto Άuσtepvtau, σtις δύo OktwBpίou tou έtouς xίλιa evvιakόσιa evevήvta eπtά. Done at Amsterdam this second day of October in the year one thousand nine hundred and ninety-seven. Fait à Amsterdam, le deux octobre de l’an mil neuf cent quatre-vingt-dix-sept. Arna dhéanamh in Amstardam ar an dara lá de Dheireadh Fómhair sa bhliain míle naoi gcéad nócha a seacht. Fatto ad Amsterdam, addì due ottobre millenovecentonovantasette. Gedaan te Amsterdam, de tweede oktober negentienhonderd zevenennegentig. Feito em Amesterdão, em dois de Outubro de mil novecentos e noventa e sete. Tehty Amsterdamissa 2 päivänä lokakuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäseitsemän. Utfärdat i Amsterdam den andra oktober år nittonhundranittiosju. Pour Sa Majesté le Roi des Belges Voor Zijne Majesteit de Koning der Belgen Für Seine Majestät den König der Belgier Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale. Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest. Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt. For Hendes Majestæt Danmarks Dronning Für den Präsidenten der Bundesrepublik Deutschland Γιa tov Πpόeδpo tnς Eλλnvιkής Anuokpatίaς Por Su Majestad el Rey de España Pour le Président de la République française Thar ceann an Choimisiúin arna údarú le hAirteagal 14 de Bhunreacht na hÉireann chun cumhachtaí agus feidhmeanna Uachtarán na hÉireann a oibriú agus a chomhlíonadh For the Commission authorised by Article 14 of the Constitution of Ireland to exercise and perform the powers and functions of the President of Ireland Per il Presidente della Repubblica italiana Pour Son Altesse Royale le Grand-Duc de Luxembourg Voor Hare Majesteit de Koningin der Nederlanden Für den Bundespräsidenten der Republik Österreich Pelo Presidente da República Portuguesa Suomen Tasavallan Presidentin puolesta För Republiken Finlands President För Hans Majestät Konungen av Sverige For Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland TABLES OF EQUIVALENCES REFERRED TO IN ARTICLE 12 OF THE TREATY OF AMSTERDAM A. Treaty on European Union Treaty establishing the European Community PROTOCOLS A. PROTOCOL ANNEXED TO THE TREATY ON EUROPEAN UNION THE HIGH CONTRACTING PARTIES, BEARING IN MIND the need to implement fully the provisions of Article J.7(1), second subparagraph, and (3) of the Treaty on European Union, BEARING IN MIND that the policy of the Union in accordance with Article J.7 shall not prejudice the specific character of the security and defence policy of certain Member States and shall respect the obligations of certain Member States, which see their common defence realised in NATO, under the North Atlantic Treaty and be compatible with the common security and defence policy established within that framework, HAVE AGREED UPON the following provision, which is annexed to the Treaty on European Union, The European Union shall draw up, together with the Western European Union, arrangements for enhanced cooperation between them, within a year from the entry into force of the Treaty of Amsterdam. PROTOCOLS ANNEXED TO THE TREATY ON EUROPEAN UNION AND TO THE TREATY ESTABLISHING THE EUROPEAN COMMUNITY THE HIGH CONTRACTING PARTIES, NOTING that the Agreements on the gradual abolition of checks at common borders signed by some Member States of the European Union in Schengen on 14 June 1985 and on 19 June 1990, as well as related agreements and the rules adopted on the basis of these agreements, are aimed at enhancing European integration and, in particular, at enabling the European Union to develop more rapidly into an area of freedom, security and justice, DESIRING to incorporate the abovementioned agreements and rules into the framework of the European Union, CONFIRMING that the provisions of the Schengen acquis are applicable only if and as far as they are compatible with the European Union and Community law, TAKING INTO ACCOUNT the special position of Denmark, TAKING INTO ACCOUNT the fact that Ireland and the United Kingdom of Great Britain and Northern Ireland are not parties to and have not signed the abovementioned agreements; that provision should, however, be made to allow those Member States to accept some or all of the provisions thereof, RECOGNISING that, as a consequence, it is necessary to make use of the provisions of the Treaty on European Union and of the Treaty establishing the European Community concerning closer cooperation between some Member States and that those provisions should only be used as a last resort, TAKING INTO ACCOUNT the need to maintain a special relationship with the Republic of Iceland and the Kingdom of Norway, both States having confirmed their intention to become bound by the provisions mentioned above, on the basis of the Agreement signed in Luxembourg on 19 December 1996, HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on European Union and to the Treaty establishing the European Community, The Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland and the Kingdom of Sweden, signatories to the Schengen agreements, are authorised to establish closer cooperation among themselves within the scope of those agreements and related provisions, as they are listed in the Annex to this Protocol, hereinafter referred to as the ‘Schengen acquis’. This cooperation shall be conducted within the institutional and legal framework of the European Union and with respect for the relevant provisions of the Treaty on European Union and of the Treaty establishing the European Community. From the date of entry into force of the Treaty of Amsterdam, the Schengen acquis, including the decisions of the Executive Committee established by the Schengen agreements which have been adopted before this date, shall immediately apply to the thirteen Member States referred to in Article 1, without prejudice to the provisions of paragraph 2 of this Article. From the same date, the Council will substitute itself for the said Executive Committee. The Council, acting by the unanimity of its Members referred to in Article 1, shall take any measure necessary for the implementation of this paragraph. The Council, acting unanimously, shall determine, in conformity with the relevant provisions of the Treaties, the legal basis for each of the provisions or decisions which constitute the Schengen acquis. With regard to such provisions and decisions and in accordance with that determination, the Court of Justice of the European Communities shall exercise the powers conferred upon it by the relevant applicable provisions of the Treaties. In any event, the Court of Justice shall have no jurisdiction on measures or decisions relating to the maintenance of law and order and the safeguarding of internal security. As long as the measures referred to above have not been taken and without prejudice to Article 5(2), the provisions or decisions which constitute the Schengen acquis shall be regarded as acts based on Title VI of the Treaty on European Union. The provisions of paragraph 1 shall apply to the Member States which have signed accession protocols to the Schengen agreements, from the dates decided by the Council, acting with the unanimity of its Members mentioned in Article 1, unless the conditions for the accession of any of those States to the Schengen acquis are met before the date of the entry into force of the Treaty of Amsterdam. Following the determination referred to in Article 2(1), second subparagraph, Denmark shall maintain the same rights and obligations in relation to the other signatories to the Schengen agreements, as before the said determination with regard to those parts of the Schengen acquis that are determined to have a legal basis in Title IIIa of the Treaty establishing the European Community. With regard to those parts of the Schengen acquis that are determined to have legal base in Title VI of the Treaty on European Union, Denmark shall continue to have the same rights and obligations as the other signatories to the Schengen agreements. Ireland and the United Kingdom of Great Britain and Northern Ireland, which are not bound by the Schengen acquis, may at any time request to take part in some or all of the provisions of this acquis. The Council shall decide on the request with the unanimity of its members referred to in Article 1 and of the representative of the Government of the State concerned. Proposals and initiatives to build upon the Schengen acquis shall be subject to the relevant provisions of the Treaties. In this context, where either Ireland or the United Kingdom or both have not notified the President of the Council in writing within a reasonable period that they wish to take part, the authorisation referred to in Article 5a of the Treaty establishing the European Community or Article K.12 of the Treaty on European Union shall be deemed to have been granted to the Members States referred to in Article 1 and to Ireland or the United Kingdom where either of them wishes to take part in the areas of cooperation in question. The relevant provisions of the Treaties referred to in the first subparagraph of paragraph 1 shall apply even if the Council has not adopted the measures referred to in Article 2(1), second subparagraph. The Republic of Iceland and the Kingdom of Norway shall be associated with the implementation of the Schengen acquis and its further development on the basis of the Agreement signed in Luxembourg on 19 December 1996. Appropriate procedures shall be agreed to that effect in an Agreement to be concluded with those States by the Council, acting by the unanimity of its Members mentioned in Article 1. Such Agreement shall include provisions on the contribution of Iceland and Norway to any financial consequences resulting from the implementation of this Protocol. A separate Agreement shall be concluded with Iceland and Norway by the Council, acting unanimously, for the establishment of rights and obligations between Ireland and the United Kingdom of Great Britain and Northern Ireland on the one hand, and Iceland and Norway on the other, in domains of the Schengen acquis which apply to these States. The Council shall, acting by a qualified majority, adopt the detailed arrangements for the integration of the Schengen Secretariat into the General Secretariat of the Council. For the purposes of the negotiations for the admission of new Member States into the European Union, the Schengen acquis and further measures taken by the institutions within its scope shall be regarded as an acquis which must be accepted in full by all States candidates for admission. SCHENGEN ACQUIS 1. The Agreement, signed in Schengen on 14 June 1985, between the Governments of the States of the Benelux Economic Union, the Federal Republic of Germany and the French Republic on the gradual abolition of checks at their common borders. The Convention, signed in Schengen on 19 June 1990, between the Kingdom of Belgium, the Federal Republic of Germany, the French Republic, the Grand Duchy of Luxembourg and the Kingdom of the Netherlands, implementing the Agreement on the gradual abolition of checks at their common borders, signed in Schengen on 14 June 1985, with related Final Act and common declarations. The Accession Protocols and Agreements to the 1985 Agreement and the 1990 Implementation Convention with Italy (signed in Paris on 27 November 1990), Spain and Portugal (signed in Bonn on 25 June 1991), Greece (signed in Madrid on 6 November 1992), Austria (signed in Brussels on 28 April 1995) and Denmark, Finland and Sweden (signed in Luxembourg on 19 December 1996), with related Final Acts and declarations. Decisions and declarations adopted by the Executive Committee established by the 1990 Implementation Convention, as well as acts adopted for the implementation of the Convention by the organs upon which the Exec utive Committee has conferred decision making powers. THE HIGH CONTRACTING PARTIES, DESIRING to settle certain questions relating to the United Kingdom and Ireland, HAVING REGARD to the existence for many years of special travel arrangements between the United Kingdom and Ireland, HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty establishing the European Community and to the Treaty on European Union, The United Kingdom shall be entitled, notwithstanding Article 7a of the Treaty establishing the European Community, any other provision of that Treaty or of the Treaty on European Union, any measure adopted under those Treaties, or any international agreement concluded by the Community or by the Community and its Member States with one or more third States, to exercise at its frontiers with other Member States such controls on persons seeking to enter the United Kingdom as it may consider necessary for the purpose: (a) of verifying the right to enter the United Kingdom of citizens of States which are Contracting Parties to the Agreement on the European Economic Area and of their dependants exercising rights conferred by Community law, as well as citizens of other States on whom such rights have been conferred by an agreement by which the United Kingdom is bound; and (b) of determining whether or not to grant other persons permission to enter the United Kingdom. Nothing in Article 7a of the Treaty establishing the European Community or in any other provision of that Treaty or of the Treaty on European Union or in any measure adopted under them shall prejudice the right of the United Kingdom to adopt or exercise any such controls. References to the United Kingdom in this Article shall include territories for whose external relations the United Kingdom is responsible. The United Kingdom and Ireland may continue to make arrangements between themselves relating to the movement of persons between their territories (‘the Common Travel Area’), while fully respecting the rights of persons referred to in Article 1, first paragraph, point (a) of this Protocol. Accordingly, as long as they maintain such arrangements, the provisions of Article 1 of this Protocol shall apply to Ireland under the same terms and conditions as for the United Kingdom. Nothing in Article 7a of the Treaty establishing the European Community, in any other provision of that Treaty or of the Treaty on European Union or in any measure adopted under them, shall affect any such arrangements. The other Member States shall be entitled to exercise at their frontiers or at any point of entry into their territory such controls on persons seeking to enter their territory from the United Kingdom or any territories whose external relations are under its responsibility for the same purposes stated in Article 1 of this Protocol, or from Ireland as long as the provisions of Article 1 of this Protocol apply to Ireland. Nothing in Article 7a of the Treaty establishing the European Community or in any other provision of that Treaty or of the Treaty on European Union or in any measure adopted under them shall prejudice the right of the other Member States to adopt or exercise any such controls. THE HIGH CONTRACTING PARTIES, DESIRING to settle certain questions relating to the United Kingdom and Ireland, HAVING REGARD to the Protocol on the application of certain aspects of Article 7a of the Treaty establishing the European Community to the United Kingdom and to Ireland, HAVE AGREED UPON the following provisions which shall be annexed to the Treaty establishing the European Community and to the Treaty on European Union, Subject to Article 3, the United Kingdom and Ireland shall not take part in the adoption by the Council of proposed measures pursuant to Title IIIa of the Treaty establishing the European Community. By way of derogation from Article 148(2) of the Treaty establishing the European Community, a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in the said Article 148(2). The unanimity of the members of the Council, with the exception of the representatives of the governments of the United Kingdom and Ireland, shall be necessary for decisions of the Council which must be adopted unanimously. In consequence of Article 1 and subject to Articles 3, 4 and 6, none of the provisions of Title IIIa of the Treaty establishing the European Community, no measure adopted pursuant to that Title, no provision of any international agreement concluded by the Community pursuant to that Title, and no decision of the Court of Justice interpreting any such provision or measure shall be binding upon or applicable in the United Kingdom or Ireland; and no such provision, measure or decision shall in any way affect the competences, rights and obligations of those States; and no such provision, measure or decision shall in any way affect the acquis communautaire nor form part of Community law as they apply to the United Kingdom or Ireland. The United Kingdom or Ireland may notify the President of the Council in writing, within three months after a proposal or initiative has been presented to the Council pursuant to Title IIIa of the Treaty establishing the European Community, that it wishes to take part in the adoption and application of any such proposed measure, whereupon that State shall be entitled to do so. By way of derogation from Article 148(2) of the Treaty establishing the European Community, a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in the said Article 148(2). The unanimity of the members of the Council, with the exception of a member which has not made such a notification, shall be necessary for decisions of the Council which must be adopted unanimously. A measure adopted under this paragraph shall be binding upon all Member States which took part in its adoption. If after a reasonable period of time a measure referred to in paragraph 1 cannot be adopted with the United Kingdom or Ireland taking part, the Council may adopt such measure in accordance with Article 1 without the participation of the United Kingdom or Ireland. In that case Article 2 applies. The United Kingdom or Ireland may at any time after the adoption of a measure by the Council pursuant to Title IIIa of the Treaty establishing the European Community notify its intention to the Council and to the Commission that it wishes to accept that measure. In that case, the procedure provided for in Article 5a(3) of the Treaty establishing the European Community shall apply mutatis mutandis. A Member State which is not bound by a measure adopted pursuant to Title IIIa of the Treaty establishing the European Community shall bear no financial consequences of that measure other than administrative costs entailed for the institutions. Where, in cases referred to in this Protocol, the United Kingdom or Ireland is bound by a measure adopted by the Council pursuant to Title IIIa of the Treaty establishing the European Community, the relevant provisions of that Treaty, including Article 73p, shall apply to that State in relation to that measure. Articles 3 and 4 shall be without prejudice to the Protocol integrating the Schengen acquis into the framework of the European Union. Ireland may notify the President of the Council in writing that it no longer wishes to be covered by the terms of this Protocol. In that case, the normal treaty provisions will apply to Ireland. THE HIGH CONTRACTING PARTIES, RECALLING the Decision of the Heads of State or Government, meeting within the European Council at Edinburgh on 12 December 1992, concerning certain problems raised by Denmark on the Treaty on European Union, HAVING NOTED the position of Denmark with regard to Citizenship, Economic and Monetary Union, Defence Policy and Justice and Home Affairs as laid down in the Edinburgh Decision, BEARING IN MIND Article 3 of the Protocol integrating the Schengen acquis into the framework of the European Union, HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty establishing the European Community and to the Treaty on European Union, Denmark shall not take part in the adoption by the Council of proposed measures pursuant to Title IIIa of the Treaty establishing the European Community. By way of derogation from Article 148(2) of the Treaty establishing the European Community, a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in the said Article 148(2). The unanimity of the members of the Council, with the exception of the representative of the government of Denmark, shall be necessary for the decisions of the Council which must be adopted unanimously. None of the provisions of Title IIIa of the Treaty establishing the European Community, no measure adopted pursuant to that Title, no provision of any international agreement concluded by the Community pursuant to that Title, and no decision of the Court of Justice interpreting any such provision or measure shall be binding upon or applicable in Denmark; and no such provision, measure or decision shall in any way affect the competences, rights and obligations of Denmark; and no such provision, measure or decision shall in any way affect the acquis communautaire nor form part of Community law as they apply to Denmark. Denmark shall bear no financial consequences of measures referred to in Article 1, other than administrative costs entailed for the institutions. Articles 1, 2 and 3 shall not apply to measures determining the third countries whose nationals must be in possession of a visa when crossing the external borders of the Member States, or measures relating to a uniform format for visas. Denmark shall decide within a period of 6 months after the Council has decided on a proposal or initiative to build upon the Schengen acquis under the provisions of Title IIIa of the Treaty establishing the European Community, whether it will implement this decision in its national law. If it decides to do so, this decision will create an obligation under international law between Denmark and the other Member States referred to in Article 1 of the Protocol integrating the Schengen acquis into the framework of the European Union as well as Ireland or the United Kingdom if those Member States take part in the areas of cooperation in question. If Denmark decides not to implement a decision of the Council as referred to in paragraph 1, the Member States referred to in Article 1 of the Protocol integrating the Schengen acquis into the framework of the European Union will consider appropriate measures to be taken. With regard to measures adopted by the Council in the field of Articles J.3(1) and J.7 of the Treaty on European Union, Denmark does not participate in the elaboration and the implementation of decisions and actions of the Union which have defence implications, but will not prevent the development of closer cooperation between Member States in this area. Therefore Denmark shall not participate in their adoption. Denmark shall not be obliged to contribute to the financing of operational expenditure arising from such measures. At any time Denmark may, in accordance with its constitutional requirements, inform the other Member States that it no longer wishes to avail itself of all or part of this Protocol. In that event, Denmark will apply in full all relevant measures then in force taken within the framework of the European Union. PROTOCOLS ANNEXED TO THE TREATY ESTABLISHING THE EUROPEAN COMMUNITY THE HIGH CONTRACTING PARTIES, WHEREAS pursuant to the provisions of Article F(2) of the Treaty on European Union the Union shall respect fundamental rights as guaranteed b y the European Convention for the Protection of Human Rights and Fundamental Freedoms signed in Rome on 4 November 1950; WHEREAS the Court of Justice of the European Communities has jurisdiction to ensure that in the interpretation and application of Article F(2) of the Treaty on European Union the law is observed by the European Community; WHEREAS pursuant to Article O of the Treaty on European Union any European State, when applying to become a Member of the Union, must respect the principles set out in Article F(1) of the Treaty on European Union; BEARING IN MIND that Article 236 of the Treaty establishing the European Community establishes a mechanism for the suspension of certain rights in the event of a serious and persistent breach by a Member State of those principles; RECALLING that each national of a Member State, as a citizen of the Union, enjoys a special status and protection which shall be guaranteed by the Member States in accordance with the provisions of Part Two of the Treaty establishing the European Community; BEARING IN MIND that the Treaty establishing the European Community establishes an area without internal frontiers and grants every citizen of the Union the right to move and reside freely within the territory of the Member States; RECALLING that the question of extradition of nationals of Member States of the Union is addressed in the European Convention on Extradition of 13 December 1957 and the Convention of 27 September 1996 drawn up on the basis of Article K.3 of the Treaty on European Union relating to extradition between the Member States of the European Union; WISHING to prevent the institution of asylum being resorted to for purposes alien to those for which it is intended; WHEREAS this Protocol respects the finality and the objectives of the Geneva Convention of 28 July 1951 relating to the status of refugees; HAVE AGREED UPON the following provisions which shall be annexed to the Treaty establishing the European Community, Given the level of protection of fundamental rights and freedoms by the Member States of the European Union, Member States shall be regarded as constituting safe countries of origin in respect of each other for all legal and practical purposes in relation to asylum matters. Accordingly, any application for asylum made by a national of a Member State may be taken into consideration or declared admissible for processing by another Member State only in the following cases: (a) if the Member State of which the applicant is a national proceeds after the entry into force of the Treaty of Amsterdam, availing itself of the provisions of Article 15 of the Convention for the Protection of Human Rights and Fundamental Freedoms, to take measures derogating in its territory from its obligations under that Convention; (b) if the procedure referred to in Article F.1(1) of the Treaty on European Union has been initiated and until the Council takes a decision in respect thereof; (c) if the Council, acting on the basis of Article F.1(1) of the Treaty on European Union, has determined, in respect of the Member State which the applicant is a national, the existence of a serious and persistent breach by that Member State of principles mentioned in Article F(1); (d) if a Member State should so decide unilaterally in respect of the application of a national of another Member State; in that case the Council shall be immediately informed; the application shall be dealt with on the basis of the presumption that it is manifestly unfounded without affecting in any way, whatever the cases may be, the decision-making power of the Member State. THE HIGH CONTRACTING PARTIES, DETERMINED to establish the conditions for the application of the principles of subsidiarity and proportionality enshrined in Article 3b of the Treaty establishing the European Community with a view to defining more precisely the criteria for applying them and to ensure their strict observance and consistent implementation by all institutions; WISHING to ensure that decisions are taken as closely as possible to the citizens of the Union; TAKING ACCOUNT of the Interinstitutional Agreement of 25 October 1993 between the European Parliament, the Council and the Commission on procedures for implementing the principle of subsidiarity; HAVE CONFIRMED that the conclusions of the Birmingham European Council on 16 October 1992 and the overall approach to the application of the subsidiarity principle agreed by the European Council meeting in Edinburgh on 11-12 December 1992 will continue to guide the action of the Union’s institutions as well as the development of the application of the principle of subsidiarity, and, for this purpose, HAVE AGREED UPON the following provisions which shall be annexed to the Treaty establishing the European Community: (1) In exercising the powers conferred on it, each institution shall ensure that the principle of subsidiarity is complied with. It shall also ensure compliance with the principle of proportionality, according to which any action by the Community shall not go beyond what is necessary to achieve the objectives of the Treaty. (2) The application of the principles of subsidiarity and proportionality shall respect the general provisions and the objectives of the Treaty, particularly as regards the maintaining in full of the acquis communautaire and the institutional balance; it shall not affect the principles developed by the Court of Justice regarding the relationship between national and Community law, and it should take into account Article F(4) of the Treaty on European Union, according to which ‘the Union shall provide itself with the means necessary to attain its objectives and carry through its policies’. (3) The principle of subsidiarity does not call into question the powers conferred on the European Community by the Treaty, as interpreted by the Court of Justice. The criteria referred to in the second paragraph of Article 3b of the Treaty shall relate to areas for which the Community does not have exclusive competence. The principle of subsidiarity provides a guide as to how those powers are to be exercised at the Community level. Subsidiarity is a dynamic concept and should be applied in the light of the objectives set out in the Treaty. It allows Community action within the limits of its powers to be expanded where circumstances so require, and conversely, to be restricted or discontinued where it is no longer justified. (4) For any proposed Community legislation, the reasons on which it is based shall be stated with a view to justifying its compliance with the principles of subsidiarity and proportionality; the reasons for concluding that a Community objective can be better achieved by the Community must be substantiated by qualitative or, wherever possible, quantitative indicators. (5) For Community action to be justified, both aspects of the subsidiarity principle shall be met: the objectives of the proposed action cannot be sufficiently achieved by Member States’ action in the framework of their national constitutional system and can therefore be better achieved by action on the part of the Community. The following guidelines should be used in examining whether the abovementioned condition is fulfilled: – the issue under consideration has transnational aspects which cannot be satisfactorily regulated by action by Member States; – action s by Member States alone or lack of Community action would conflict with the requirements of the Treaty (such as the need to correct distortion of competition or avoid disguised restrictions on trade or strengthen economic and social cohesion) or would otherwise significantly damage Member States’ interests; – action at Community level would produce clear benefits by reason of its scale or effects compared with action at the level of the Member States. (6) The form of Community action shall be as simple as possible, consistent with satisfactory achievement of the objective of the measure and the need for effective enforcement. The Community shall legislate only to the extent necessary. Other things being equal, directives should be preferred to regulations and framework directives to detailed measures. Directives as provided for in Article 189 of the Treaty, while binding upon each Member State to which they are addressed as to the result to be achieved, shall leave to the national authorities the choice of form and methods. (7) Regarding the nature and the extent of Community action, Community measures should leave as much scope for national decision as possible, consistent with securing the aim of the measure and observing the requirements of the Treaty. While respecting Community law, care should be taken to respect well established national arrangements and the organisation and working of Member States’ legal systems. Where appropriate and subject to the need for proper enforcement, Community measures should provide Member States with alternative ways to achieve the objectives of the measures. (8) Where the application of the principle of subsidiarity leads to no action being taken by the Community, Member States are required in their action to comply with the general rules laid down in Article 5 of the Treaty, by taking all appropriate measures to ensure fulfilment of their obligations under the Treaty and by abstaining from any measure which could jeopardise the attainment of the objectives of the Treaty. (9) Without prejudice to its right of initiative, the Commission should: – except in cases of particular urgency or confidentiality, consult widely before proposing legislation and, wherever appropriate, publish consultation documents; – justify the relevance of its proposals with regard to the principle of subsidiarity; whenever necessary, the explanatory memorandum accompanying a proposal will give details in this respect. The financing of Community action in whole or in part from the Community budget shall require an explanation; – take duly into account the need for any burden, whether financial or administrative, falling upon the Community, national governments, local authorities, economic operators and citizens, to be minimised and proportionate to the objective to be achieved; – submit an annual report to the European Council, the European Parliament and the Council on the application of Article 3b of the Treaty. This annual report shall also be sent to the Committee of the Regions and to the Economic and Social Committee. (10) The European Council shall take account of the Commission report referred to in the fourth indent of point 9 within the report on the progress achieved by the Union which it is required to submit to the European Parliament in accordance with Article D of the Treaty on European Union. (11) While fully observing the procedures applicable, the European Parliament and the Council shall, as an integral part of the overall examination of Commission proposals, consider their consistency with Article 3b of the Treaty. This concerns the original Commission proposal as well as amendments which the European Parliament and the Council envisage making to the proposal. (12) In the course of the procedures referred to in Articles 189b and 189c of the Treaty, the European Parliament shall be informed of the Council’s position on the application of Article 3b of the Treaty, by way of a statement of the reasons which led the Council to adopt its common position. The Council shall inform the European Parliament of the reasons on the basis of which all or part of a Commission proposal is deemed to be inconsistent with Article 3b of the Treaty. (13) Compliance with the principle of subsidiarity shall be reviewed in accordance with the rules laid down by the Treaty. THE HIGH CONTRACTING PARTIES, TAKING INTO ACCOUNT the need of the Member States to ensure effective controls at their external borders, in cooperation with third countries where appropriate, HAVE AGREED UPON the following provision, which shall be annexed to the Treaty establishing the European Community, The provisions on the measures on the crossing of external borders included in Article 73j(2)(a) of Title IIIa of the Treaty shall be without prejudice to the competence of Member States to negotiate or conclude agreements with third countries as long as they respect Community law and other relevant international agreements. THE HIGH CONTRACTING PARTIES, CONSIDERING that the system of public broadcasting in the Member States is directly related to the democratic, social and cultural needs of each society and to the need to preserve media pluralism, HAVE AGREED UPON the following interpretative provisions, which shall be annexed to the Treaty establishing the European Community, The provisions of the Treaty establishing the European Community shall be without prejudice to the competence of Member States to provide for the funding of public service broadcasting insofar as such funding is granted to broadcasting organisations for the fulfilment of the public service remit as conferred, defined and organised by each Member State, and insofar as such funding does not affect trading conditions and competition in the Community to an extent which would be contrary to the common interest, while the realisation of the remit of that public service shall be taken into account. THE HIGH CONTRACTING PARTIES, DESIRING to ensure improved protection and respect for the welfare of animals as sentient beings, HAVE AGREED UPON the following provision which shall be annexed to the Treaty establishing the European Community, In formulating and implementing the Community’s agriculture, transport, internal market and research policies, the Community and the Member States shall pay full regard to the welfare requirements of animals, while respecting the legislative or administrative provisions and customs of the Member States relating in particular to religious rites, cultural traditions and regional heritage. PROTOCOLS ANNEXED TO THE TREATY ON EUROPEAN UNION AND THE TREATIES ESTABLISHING THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY THE HIGH CONTRACTING PARTIES, HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on E uropean Union and to the Treaties establishing the European Communities, At the date of entry into force of the first enlargement of the Union, notwithstanding Article 157(1) of the Treaty establishing the European Community, Article 9(1) of the Treaty establishing the European Coal and Steel Community and Article 126(1) of the Treaty establishing the European Atomic Energy Community, the Commission shall comprise one national of each of the Member States, provided that, by that date, the weighting of the votes in the Council has been modified, whether by re-weighting of the votes or by dual majority, in a manner acceptable to all Member States, taking into account all relevant elements, notably compensating those Member States which give up the possibility of nominating a second member of the Commission. At least one year before the membership of the European Union exceeds twenty, a conference of representatives of the governments of the Member States shall be convened in order to carry out a comprehensive review of the provisions of the Treaties on the composition and functioning of the institutions. THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES, HAVING REGARD to Article 216 of the Treaty establishing the European Community, Article 77 of the Treaty establishing the European Coal and Steel Community and Article 189 of the Treaty establishing the European Atomic Energy Community, HAVING REGARD to the Treaty on European Union, RECALLING AND CONFIRMING the Decision of 8 April 1965, and without prejudice to the decisions concerning the seat of future institutions, bodies and departments, HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on European Union and the Treaties establishing the European Communities, (a) The European Parliament shall have its seat in Strasbourg where the 12 periods of monthly plenary sessions, including the budget session, shall be held. The periods of additional plenary sessions shall be held in Brussels. The committees of the European Parliament shall meet in Brussels. The General Secretariat of the European Parliament and its departments shall remain in Luxembourg. (b) The Council shall have its seat in Brussels. During the months of April, June and October, the Council shall hold its meetings in Luxembourg. (c) The Commission shall have its seat in Brussels. The departments listed in Articles 7, 8 and 9 of the Decision of 8 April 1965 shall be established in Luxembourg. (d) The Court of Justice and the Court of First Instance shall have their seats in Luxembourg. (e) The Court of Auditors shall have its seat in Luxembourg. (f) The Economic and Social Committee shall have its seat in Brussels. (g) The Committee of the Regions shall have its seat in Brussels. (h) The European Investment Bank shall have its seat in Luxembourg. (i) The European Monetary Institute and the European Central Bank shall have their seat in Frankfurt. (j) The European Police Office (Europol) shall have its seat in The Hague. THE HIGH CONTRACTING PARTIES, RECALLING that scrutiny by individual national parliaments of their own government in relation to the activities of the Union is a matter for the particular constitutional organisation and practice of each Member State, DESIRING, however, to encourage greater involvement of national parliaments in the activities of the European Union and to enhance their ability to express their views on matters which may be of particular interest to them, HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on European Union and the Treaties establishing the European Communities, INFORMATION FOR NATIONAL PARLIAMENTS OF MEMBER STATES All Commission consultation documents (green and white papers and communications) shall be promptly forwarded to national parliaments of the Member States. Commission proposals for legislation as defined by the Council in accordance with Article 151(3) of the Treaty establishing the European Community, shall be made available in good time so that the government of each Member State may ensure that its own national parliament receives them as appropriate. A six-week period shall elapse between a legislative proposal or a proposal for a measure to be adopted under Title VI of the Treaty on European Union being made available in all languages to the European Parliament and the Council by the Commission and the date when it is placed on a Council agenda for decision either for the adoption of an act or for adoption of a common position pursuant to Article 189b or 189c of the Treaty establishing the European Community, subject to exceptions on grounds of urgency, the reasons for which shall be stated in the act or common position. THE CONFERENCE OF EUROPEAN AFFAIRS COMMITTEES 4. The Conference of European Affairs Committees, hereinafter referred to as COSAC, established in Paris on 16-17 November 1989, may make any contribution it deems appropriate for the attention of the institutions of the European Union, in particular on the basis of draft legal texts which representatives of governments of the Member States may decide by common accord to forward to it, in view of the nature of their subject matter. COSAC may examine any legislative proposal or initiative in relation to the establishment of an area of freedom, security and justice which might have a direct bearing on the rights and freedoms of individuals. The European Parliament, the Council and the Commission shall be informed of any contribution made by COSAC under this point. COSAC may address to the European Parliament, the Council and the Commission any contribution which it deems appropriate on the legislative activities of the Union, notably in relation to the application of the principle of subsidiarity, the area of freedom, security and justice as well as questions regarding fundamental rights. Contributions made by COSAC shall in no way bind national parliaments or prejudge their position. The CONFERENCE OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES convened in Turin on the twenty-ninth day of March in the year nineteen hundred and ninety-six to adopt by common accord the amendments to be made to the Treaty on European Union, the Treaties establishing respectively the European Community, the European Coal and Steel Community and the European Atomic Energy Community and certain related Acts has adopted the following texts: The Treaty of Amsterdam amending the Treaty on European Union, the Treaties establishing the European Communities and certain related Acts Protocols A. Protocol annexed to the Treaty on European Union: 1. Protocol on Article J.7 of the Treaty on European Union B. Protocols annexed to the Treaty on European Union and to the Treaty establishing the European Community: 2. Protocol integrating the Schengen acquis into the framework of the European Union 3. Protocol on the application of certain aspects of Article 7a of the Treaty establishing the European Community to the United Kingdom and to Ireland 4. Protocol on the position of the United Kingdom and Ireland 5. Protocol on the position of Denmark C. Protocols annexed to the Treaty establishing the European Community: 6. Protocol on asylum for nationals of Member States of the European Union 7. Protocol on the application of the principles of subsidiarity and proportionality 8. Protocol on external relations of the Member States with regard to the crossing of external borders 9. Protocol on the system of public broadcasting in the Member States 10. Protocol on protection and welfare of animals D. Protocols annexed to the Treaty on European Union and to the Treaties establishing the European Community, the European Coal and Steel Community and the European Atomic Energy Community 11. Protocol on the institutions with the prospect of enlargement of the European Union 12. Protocol on the location of the seats of the institutions and of certain bodies and departments of the European Communities and of Europol 13. Protocol on the role of national parliaments in the European Union III. Declarations The Conference adopted the following declarations annexed to this Final Act: 1. Declaration on the abolition of the death penalty 2. Declaration on enhanced cooperation between the European Union and the Western European Union 3. Declaration relating to Western European Union 4. Declaration on Articles J.14 and K.10 of the Treaty on European Union 5. Declaration on Article J.15 of the Treaty on European Union 6. Declaration on the establishment of a policy planning and early warning unit 7. Declaration on Article K.2 of the Treaty on European Union 8. Declaration on Article K.3(e) of the Treaty on European Union 9. Declaration on Article K.6(2) of the Treaty on European Union 10. Declaration on Article K.7 of the Treaty on European Union 11. Declaration on the status of churches and non-confessional organisations 12. Declaration on environmental impact assessments 13. Declaration on Article 7d of the Treaty establishing the European Community 14. Declaration on the repeal of Article 44 of the Treaty establishing the European Community 15. Declaration on the preservation of the level of protection and security provided by the Schengen acquis 16. Declaration on Article 73j(2)(b) of the Treaty establishing the European Community 17. Declaration on Article 73k of the Treaty establishing the European Community 18. Declaration on Article 73k(3)(a) of the Treaty establishing the European Community 19. Declaration on Article 73l(1) of the Treaty establishing the European Community 20. Declaration on Article 73m of the Treaty establishing the European Community 21. Declaration on Article 73o of the Treaty establishing the European Community 22. Declaration regarding persons with a disability 23. Declaration on incentive measures referred to in Article 109r of the Treaty establishing the European Community 24. Declaration on Article 109r of the Treaty establishing the European Community 25. Declaration on Article 118 of the Treaty establishing the European Community 26. Declaration on Article 118(2) of the Treaty establishing the European Community 27. Declaration on Article 118b(2) of the Treaty establishing the European Community 28. Declaration on Article 119(4) of the Treaty establishing the European Community 29. Declaration on sport 30. Declaration on island regions 31. Declaration relating to the Council Decision of 13 July 1987 32. Declaration on the organisation and functioning of the Commission 33. Declaration on Article 188c(3) of the Treaty establishing the European Community 34. Declaration on respect for time limits under the co-decision procedure 35. Declaration on Article 191a(1) of the Treaty establishing the European Community 36. Declaration on the Overseas Countries and Territories 37. Declaration on public credit institutions in Germany 38. Declaration on voluntary service activities 39. Declaration on the quality of the drafting of Community legislation 40. Declaration concerning the procedure for concluding international agreements by the European Coal and Steel Community 41. Declaration on the provisions relating to transparency, access to documents and the fight against fraud 42. Declaration on the consolidation of the Treaties 43. Declaration relating to the Protocol on the application of the principles of subsidiarity and proportionality 44. Declaration on Article 2 of the Protocol integrating the Schengen acquis into the framework of the European Union 45. Declaration on Article 4 of the Protocol integrating the Schengen acquis into the framework of the European Union 46. Declaration on Article 5 of the Protocol integrating the Schengen acquis into the framework of the European Union 47. Declaration on Article 6 of the Protocol integrating the Schengen acquis into the framework of the European Union 48. Declaration relating to the Protocol on asylum for nationals of Member States of the European Union 49. Declaration relating to subparagraph (d) of the Sole Article of the Protocol on asylum for nationals of Member States of the European Union 50. Declaration relating to the Protocol on the institutions with the prospect of enlargement of the European Union 51. Declaration on Article 10 of the Treaty of Amsterdam The Conference also took note of the following declarations annexed to this Final Act: 1. Declaration by Austria and Luxembourg on credit institutions 2. Declaration by Denmark relating to Article K.14 of the Treaty on European Union 3. Declaration by Germany, Austria and Belgium on subsidiarity 4. Declaration by Ireland on Article 3 of the Protocol on the position of the United Kingdom and Ireland 5. Declaration by Belgium on the Protocol on asylum for nationals of Member States of the European Union 6. Declaration by Belgium, France and Italy on the Protocol on the institutions with the prospect of enlargement of the European Union 7. Declaration by France concerning the situation of the overseas departments in the light of the Protocol integrating the Schengen acquis into the framework of the European Union 8. Declaration by Greece concerning the Declaration on the status of churches and non-confessional organisations Finally, the Conference agreed to attach, for illustrative purposes, to this Final Act the texts of the Treaty on European Union and the Treaty establishing the European Community, as they result from the amendments made by the Conference. Hecho en Amsterdam, el dos de octubre de mil novecientos noventa y siete. Udfærdiget i Amsterdam, den anden oktober nittenhundrede og syvoghalvfems. Geschehen zu Amsterdam am zweiten Oktober neunzehnhundertsiebenundneunzig. ΈYιve σto Άuσtepvtau, σtις δύo OktwBpίou tou έtouς xίλιa evvιakόσιa evevήvta eπtά. Done at Amsterdam this second day of October in the year one thousand nine hundred and ninety-seven. Fait à Amsterdam, le deux octobre de l’an mil neuf cent quatre-vingt-dix-sept. Arna dhéanamh in Amstardam ar an dara lá de Dheireadh Fómhair sa bhliain míle naoi gcéad nócha a seacht. Fatto ad Amsterdam, addì due ottobre millenovecentonovantasette. Gedaan te Amsterdam, de tweede oktober negentienhonderd zevenennegentig. Feito em Amesterdão, em dois de Outubro de mil novecentos e noventa e sete. Tehty Amsterdamissa 2 päivänä lokakuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäseitsemän. Utfärdat i Amsterdam den andra oktober år nittonhundranittiosju. Pour Sa Majesté le Roi des Belges Voor Zijne Majesteit de Koning der Belgen Für Seine Majestät den König der Belgier Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale. Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest. Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt. For Hendes Majestæt Danmarks Dronning Für den Präsidenten der Bundesrepublik Deutschland Γιa tov Πpόeδpo tnς Eλλnvιkής Anuokpatίaς Por Su Majestad el Rey de España Pour le Président de la République française Thar ceann an Choimisiúin arna údarú le hAirteagal 14 de Bhunreacht na hÉireann chun cumhachtaí agus feidhmeanna Uachtarán na hÉireann a oibriú agus a chomhlíonadh For the Commission authorised by Article 14 of the Constitution of Ireland to exercise and perform the powers and functions of the President of Ireland Per il Presidente della Repubblica italiana Pour Son Altesse Royale le Grand-Duc de Luxembourg Voor Hare Majesteit de Koningin der Nederlanden Für den Bundespräsidenten der Republik Österreich Pelo Presidente da República Portuguesa Suomen Tasavallan Presidentin puolesta För Republiken Finlands President För Hans Majestät Konungen av Sverige For Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland DECLARATIONS ADOPTED BY THE CONFERENCE With reference to Article F(2) of the Treaty on European Union, the Conference recalls that Protocol No. No 6 to the European Convention for the Protection of Human Rights and Fundamental Freedoms signed in Rome on 4 November 1950, and which has been signed and ratified by a large majority of Member States, provides for the abolition of the death penalty. In this context, the Conference notes the fact that since the signature of the abovementioned Protocol on 28 April 1983, the death penalty has been abolished in most of the Member States of the Union and has not been applied in any of them. With a view to enhanced cooperation between the European Union and the Western European Union, the Conference invites the Council to seek the early adoption of appropriate arrangements for the security clearance of the personnel of the General Secretariat of the Council. The Conference notes the following Declaration, adopted by the Council of Ministers of the Western European Union on 22 July 1997 ‘DECLARATION OF WESTERN EUROPEAN UNION ON THE ROLE OF WESTERN EUROPEAN UNION AND ITS RELATIONS WITH THE EUROPEAN UNION AND WITH THE ATLANTIC ALLIANCE INTRODUCTION 1. The Western European Union (WEU) Member States agreed at Maastricht in 1991 on the need to develop a genuine European Security and Defence Identity (ESDI) and to assume a greater European responsibility for defence matters. In the light of the Treaty of Amsterdam, they reaffirm the importance of continuing and strengthening these efforts. WEU is an integral part of the development of the European Union (EU) providing the Union with access to an operational capability, notably in the context of the Petersberg tasks and is an essential element of the development of the ESDI within the Atlantic Alliance in accordance with the Paris Declaration and with the decisions taken by NATO ministers in Berlin. Today the WEU Council brings together all the Member States of the European Union and all the European Members of the Atlantic Alliance in accordance with their respective status. The Council also brings together those States with the Central and Eastern European States linked to the European Union by an Association Agreement and that are applicants for accession to both the European Union and the Atlantic Alliance. WEU is thus establishing itself as a genuine framework for dialogue and cooperation among Europeans on wider European security and defence issues. In this context, WEU takes note of Title V of the Treaty on European Union regarding the EU’s common foreign and security policy, in particular Articles J.3(1), J.7 and the Protocol to Article J.7, which read as follows: Article J.3(1) “1. The European Council shall define the principles and general guidelines for the common foreign and security policy, including for matters with defence implications.” Article J.7 “1. The common foreign and security policy shall include all questions relating to the security of the Union, including the progressive framing of a common defence policy, in accordance with the second subparagraph, which might lead to a common defence, should the European Council so decide. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements. The Western European Union (WEU) is an integral part of the development of the Union providing the Union with access to an operational capability notably in the context of paragraph 2. It supports the Union in framing the defence aspects of the common foreign and security policy as set out in this Article. The Union shall accordingly foster closer institutional relations with the WEU with a view to the possibility of the integration of the WEU into the Union, should the European Council so decide. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements. The policy of the Union in accordance with this Article shall not prejudice the specific character of the security and defence policy of certain Member State s and shall respect the obligations of certain Member States, which see their common defence realised in the North Atlantic Treaty Organisation (NATO), under the North Atlantic Treaty and be compatible with the common security and defence policy established within that framework. The progressive framing of a common defence policy will be supported, as Member States consider appropriate, by cooperation between them in the field of armaments. Questions referred to in this Article shall include humanitarian and rescue tasks, peace-keeping tasks and tasks of combat forces in crisis management, including peace making. The Union will avail itself of the WEU to elaborate and implement decisions and actions of the Union which have defence implications. The competence of the European Council to establish guidelines in accordance with Article J.3 shall also obtain in respect of the WEU for those matters for which the Union avails itself of the WEU. When the Union avails itself of the WEU to elaborate and implement decisions of the Union on the tasks referred to in paragraph 2, all Member States of the Union shall be entitled to participate fully in the tasks in question. The Council, in agreement with the institutions of the WEU, shall adopt the necessary practical arrangements to allow all Member States contributing to the tasks in question to participate fully and on an equal footing in planning and decision-taking in the WEU. Decisions having defence implications dealt with under this paragraph shall be taken without prejudice to the policies and obligations referred to in paragraph 1, third subparagraph. The provisions of this Article shall not prevent the development of closer cooperation between two or more Member States on a bilateral level, in the framework of the WEU and the Atlantic Alliance, provided such cooperation does not run counter to or impede that provided for in this Title. With a view to furthering the objectives of this Article, the provisions of this Article will be reviewed in accordance with Article N.” Protocol on Article J.7 “THE HIGH CONTRACTING PARTIES, BEARING IN MIND the need to implement fully the provisions of Article J.7(1), second subparagraph, and (3) of the Treaty on European Union, BEARING IN MIND that the policy of the Union in accordance with Article J.7 shall not prejudice the specific character of the security and defence policy of certain Member States and shall respect the obligations of certain Member States, which see their common defence realised in NATO, under the North Atlantic Treaty and be compatible with the common security and defence policy established within that framework, HAVE AGREED UPON the following provision, which is annexed to the Treaty on European Union, The European Union shall draw up, together with the Western European Union, arrangements for enhanced cooperation between them, within a year from the entry into force of the Treaty of Amsterdam.” A. WEU’s RELATIONS WITH THE EUROPEAN UNION: ACCOMPANYING THE IMPLEMENTATION OF THE TREATY OF AMSTERDAM 4. In the “Declaration on the Role of the Western European Union and its Relations with the European Union and with the Atlantic Alliance” of 10 December 1991, WEU Member States set as their objective “to build up WEU in stages as the defence component of the European Union”. They today reaffirm this aim as developed by the Treaty of Amsterdam. When the Union avails itself of WEU, WEU will elaborate and implement decisions and actions of the EU which have defence implications. In elaborating and implementing decisions and actions of the EU for which the Union avails itself of WEU, WEU will act consistently with guidelines established by the European Council. WEU supports the Union in framing the defence aspects of the European Union Common Foreign and Security Policy as set out in Article J.7 of the Treaty on European Union. WEU confirms that when the European Union avails itself of WEU to elaborate and implement decisions of the Union on the tasks referred to in Article J.7(2) of the Treaty on European Union, all Member States of the Union shall be entitled to participate fully in the tasks in question in accordance with Article J.7(3) of the Treaty on European Union. WEU will develop the role of the Observers in WEU in line with provisions contained in Article J.7(3) and will adopt the necessary practical arrangements to allow all Member States of the EU contributing to the tasks undertaken by WEU at the request of the EU to participate fully and on an equal footing in planning and decision-taking in the WEU. Consistent with the Protocol on Article J.7 of the Treaty on European Union, WEU shall draw up, together with the European Union, arrangements for enhanced cooperation between them. In this regard, a range of measures, on some of which work is already at hand in WEU, can be taken forward now, such as: – arrangements for improving the coordination of the consultation and decision-making processes of the respective Organisations, in particular in crisis situations; – holding of joint meetings of the relevant bodies of the two Organisations; – harmonisation as much as possible of the sequence of the Presidencies of WEU and the EU, as well as the administrative rules and practices of the two Organisations; – close coordination of the work of the staff of the Secretariat-General of the WEU and the General Secretariat of the Council of the EU, including through the exchange and secondment of personnel; – arrangements to allow the relevant bodies of the EU, including its Policy Planning and Early Warning Unit, to draw on the resources of WEU’s Planning Cell, Situation Centre and Satellite Centre; – cooperation in the field of armaments, as appropriate, within the framework of the Western European Armaments Group (WEAG), as the European forum for armaments cooperation, the EU and WEU in the context of rationalisation of the European armaments market and the establishment of a European Armaments Agency; – practical arrangements for ensuring cooperation with the European Commission reflecting its role in the CFSP as defined in the revised Treaty on European Union; – improved security arrangements with the European Union. RELATIONS BETWEEN WEU AND NATO IN THE FRAMEWORK OF THE DEVELOPMENT OF AN ESDI WITHIN THE ATLANTIC ALLIANCE 8. The Atlantic Alliance continues to be the basis of collective defence under the North Atlantic Treaty. It remains the essential forum for consultation among Allies and the framework in which they agree on policies bearing on their security and defence commitments under the Washington Treaty. The Alliance has embarked on a process of adaptation and reform so that it can more effectively carry out the full range of its missions. This process is aimed at strengthening and renewing the transatlantic partnership, including building an ESDI within the Alliance. WEU is an essential element of the development of the European Security and Defence Identity within the Atlantic Alliance and will accordingly continue its efforts to strengthen institutional and practical cooperation with NATO. In addition to its support for the common defence enshrined in Article 5 of the Washington Treaty and Article V of the modified Brussels Treaty, WEU takes an active role in conflict prevention and crisis management as provided for in the Petersberg Declaration. In this context, WEU undertakes to perform its role to the full, respecting the full transparency and complementarity between the two Organisations. WEU affirms that this identity will be grounded on sound military principles and supported by appropriate military planning and will permit the creation of militarily coherent and effective forces capable of operating under the political control and strategic direction of WEU. To this end, WEU will develop its cooperation with NATO, in particular in the following fields: – mechanisms for consultation between WEU and NATO in the context of a crisis; – WEU’s active involvement in the NATO defence planning process; – operational links between WEU and NATO for the pl anning, preparation and conduct of operations using NATO assets and capabilities under the political control and strategic direction of WEU, including: – military planning, conducted by NATO in coordination with WEU, and exercises; – a framework agreement on the transfer, monitoring and return of NATO assets and capabilities; – liaison between WEU and NATO in the context of European command arrangements. This cooperation will continue to evolve, also taking account of the adaptation of the Alliance. WEU’s OPERATIONAL ROLE IN THE DEVELOPMENT OF THE ESDI 13. WEU will develop its role as the European politico-military body for crisis management, by using the assets and capabilities made available by WEU nations on a national or multinational basis, and having recourse, when appropriate, to NATO’s assets and capabilities under arrangements being worked out. In this context, WEU will also support the UN and OSCE in their crisis management tasks. WEU will contribute, in the framework of Article J.7 of the Treaty on European Union, to the progressive framing of a common defence policy and carry forward its concrete implementation through the further development of its own operational role. To this end, WEU will take forward work in the following fields: – WEU has developed crisis management mechanisms and procedures which will be updated as WEU gains experience through exercises and operations. The implementation of Petersberg missions calls for flexible modes of action geared to the diversity of crisis situations and making optimum use of the available capabilities including through recourse to national headquarters, which might be one provided by a framework nation, or to multinational headquarters answerable to WEU or to NATO assets and capabilities; – WEU has already worked out Preliminary Conclusions on the Formulation of a Common European Defence Policy which is an initial contribution on the objectives, scope and means of a common European defence policy. WEU will continue this work on the basis in particular of the Paris Declaration and taking account of the relevant elements of the decisions of WEU and NATO summits and ministerial meetings since Birmingham. It will focus on the following fields: – definition of principles for the use of armed forces of the WEU States for WEU Petersberg operations in pursuit of common European security interests; – organisation of operational means for Petersberg tasks, such as generic and contingency planning and exercising, preparation and interoperability of forces, including through participation in the NATO defence planning process, as appropriate; – strategic mobility on the basis of its current work; – defence intelligence, through its Planning Cell, Situation Centre and Satellite Centre; – WEU has adopted many measures to strengthen its operational role (Planning Cell, Situation Centre, Satellite Centre). The improvement of the functioning of the military components at WEU Headquarters and the establishment, under the Council’s authority, of a military committee will represent a further enhancement of structures which are important for the successful preparation and conduct of WEU operations; – with the aim of opening participation in all its operations to Associate Members and Observer States, WEU will also examine the necessary modalities to allow Associate Members and Observer States to participate fully in accordance with their status in all operations undertaken by WEU; – WEU recalls that Associate Members take part on the same basis as full members in operations to which they contribute, as well as in relevant exercises and planning. WEU will also examine the question of participation of the Observers as fully as possible in accordance with their status in planning and decision-taking within WEU in all operations to which they contribute; – WEU will, in consultation where appropriate with the relevant bodies, examine the possibilities for maximum participation in its activities by Associate Members and Observer States in accordance with their status. It will address in particular activities in the fields of armaments, space and military studies; – WEU will examine how to strengthen the Associate Partners’ participation in an increasing number of activities.’ The provisions of Articles J.14 and K.10 of the Treaty on European Union and any agreements resulting from them shall not imply any transfer of competence from the Member States to the European Union. The Conference agrees that Member States shall ensure that the Political Committee referred to in Article J.15 of the Treaty on European Union is able to meet at any time, in the event of international crises or other urgent matters, at very short notice at Political Director or deputy level. The Conference agrees that: 1. A policy planning and early warning unit shall be established in the General Secretariat of the Council under the responsibility of its Secretary-General, High Representative for the CFSP. Appropriate cooperation shall be established with the Commission in order to ensure full coherence with the Union’s external economic and development policies. The tasks of the unit shall include the following: (a) monitoring and analysing developments in areas relevant to the CFSP; (b) providing assessments of the Union’s foreign and security policy interests and identifying areas where the CFSP could focus in future; (c) providing timely assessments and early warning of events or situations which may have significant repercussions for the Union’s foreign and security policy, including potential political crises; (d) producing, at the request of either the Council or the Presidency or on its own initiative, argued policy options papers to be presented under the responsibility of the Presidency as a contribution to policy formulation in the Council, and which may contain analyses, recommendations and strategies for the CFSP. The unit shall consist of personnel drawn from the General Secretariat, the Member States, the Commission and the WEU. Any Member State or the Commission may make suggestions to the unit for work to be undertaken. Member States and the Commission shall assist the policy planning process by providing, to the fullest extent possible, relevant information, including confidential information. Action in the field of police cooperation under Article K.2 of the Treaty on European Union, including activities of Europol, shall be subject to appropriate judicial review by the competent national authorities in accordance with rules applicable in each Member State. The Conference agrees that the provisions of Article K.3(e) of the Treaty on European Union shall not have the consequence of obliging a Member State whose legal system does not provide for minimum sentences to adopt them. The Conference agrees that initiatives for measures referred to in Article K.6(2) of the Treaty on European Union and acts adopted by the Council thereunder shall be published in the Official Journal of the European Communities, in accordance with the relevant Rules of Procedure of the Council and the Commission. The Conference notes that Member States may, when making a declaration pursuant to Article K.7(2) of the Treaty on European Union, reserve the right to make provisions in their national law to the effect that, where a question relating to the validity or interpretation of an act referred to in Article K.7(1) is raised in a case pending before a national court or tribunal against whose decision there is no judicial remedy under national law, that court or tribunal will be required to refer the matter to the Court of Justice. The European Union respects and does not prejudice the status under national law of churches and religious associations or communities in the Member States. The European Union equally respects the status of philosophical and non-confessional organisations. The Conference notes that the Commission undertakes to prepare environmental impact assessment studies when making proposals which may have significant environmental implications. The provisions of Article 7d of the Treaty establishing the European Community on public services shall be implemented with full respect for the jurisprudence of the Court of Justice, inter alia as regards the principles of equality of treatment, quality and continuity of such services. The repeal of Article 44 of the Treaty establishing the European Community, which contains a reference to a natural preference between Member States in the context of fixing minimum prices during the transitional period, has no effect on the principle of Community preference as defined by the case law of the Court of Justice. The Conference agrees that measures to be adopted by the Council, which will have the effect of replacing provisions on the abolition of checks at common borders contained in the 1990 Schengen Convention, should provide at least the same level of protection and security as under the aforementioned provisions of the Schengen Convention. The Conference agrees that foreign policy considerations of the Union and the Member States shall be taken into account in the application of Article 73j(2)(b) of the Treaty establishing the European Community. Consultations shall be established with the United Nations High Commissioner for Refugees and other relevant international organisations on matters relating to asylum policy. The Conference agrees that Member States may negotiate and conclude agreements with third countries in the domains covered by Article 73k(3)(a) of the Treaty establishing the European Community as long as such agreements respect Community law. The Conference agrees that Member States may take into account foreign policy considerations when exercising their responsibilities under Article 73l(1) of the Treaty establishing the European Community. Measures adopted pursuant to Article 73m of the Treaty establishing the European Community shall not prevent any Member State from applying its constitutional rules relating to freedom of the press and freedom of expression in other media. The Conference agrees that the Council will examine the elements of the decision referred to in Article 73o(2), second indent, of the Treaty establishing the European Community before the end of the five year period referred to in Article 73o with a view to taking and applying this decision immediately after the end of that period. The Conference agrees that, in drawing up measures under Article 100a of the Treaty establishing the European Community, the institutions of the Community shall take account of the needs of persons with a disability. The Conference agrees that the incentive measures referred to in Article 109r of the Treaty establishing the European Community should always specify the following: – the grounds for taking them based on an objective assessment of their need and the existence of an added value at Community level; – their duration, which should not exceed five years; – the maximum amount for their financing, which should reflect the incentive nature of such measures. It is understood that any expenditure under Article 109r of the Treaty establishing the European Community will fall within Heading 3 of the financial perspectives. It is understood that any expenditure under Article 118 of the Treaty establishing the European Community will fall within Heading 3 of the financial perspectives. The High Contracting Parties note that in the discussions on Article 118(2) of the Treaty establishing the European Community it was agreed that the Community does not intend, in laying down minimum requirements for the protection of the safety and health of employees, to discriminate in a manner unjustified by the circumstances against employees in small and medium-sized undertakings. The High Contracting Parties declare that the first of the arrangements for application of the agreements between management and labour at Community level – referred to in Article 118b(2) of the Treaty establishing the European Community – will consist in developing, by collective bargaining according to the rules of each Member State, the content of the agreements, and that consequently this arrangement implies no obligation on the Member States to apply the agreements directly or to work out rules for their transposition, nor any obligation to amend national legislation in force to facilitate their implementation. When adopting measures referred to in Article 119(4) of the Treaty establishing the European Community, Member States should, in the first instance, aim at improving the situation of women in working life. The Conference emphasises the social significance of sport, in particular its role in forging identity and bringing people together. The Conference therefore calls on the bodies of the European Union to listen to sports associations when important questions affecting sport are at issue. In this connection, special consideration should be given to the particular characteristics of amateur sport. The Conference recognises that island regions suffer from structural handicaps linked to their island status, the permanence of which impairs their economic and social development. The Conference accordingly acknowledges that Community legislation must take account of these handicaps and that specific measures may be taken, where justified, in favour of these regions in order to integrate them better into the internal market on fair conditions. The Conference calls on the Commission to submit to the Council by the end of 1998 at the latest a proposal to amend the Council decision of 13 July 1987 laying down the procedures for the exercise of implementing powers conferred on the Commission. The Conference notes the Commission’s intention to prepare a reorganization of tasks within the college in good time for the Commission which will take up office in 2000, in order to ensure an optimum division between conventional portfolios and specific tasks. In this context, it considers that the President of the Commission must enjoy broad discretion in the allocation of tasks within the college, as well as in any reshuffling of those tasks during a Commission’s term of office. The Conference also notes the Commission’s intention to undertake in parallel a corresponding reorganisation of its departments. It notes in particular the desirability of bringing external relations under the responsibility of a Vice-President. The Conference invites the Court of Auditors, the European Investment Bank and the Commission to maintain in force the present Tripartite Agreement. If a succeeding or amending text is required by any party, they shall endeavour to reach agreement on such a text having regard to their respective interests. The Conference calls on the European Parliament, the Council and the Commission to make every effort to ensure that the co-decision procedure operates as expeditiously as possible. It recalls the importance of strict respect for the deadlines set out in Article 189b of the Treaty establishing the European Community and confirms that recourse, provided for in paragraph 7 of that Article, to extension of the periods in question should be considered only when strictly necessary. In no case should the actual period between the second reading by the European Parliament and the outcome of the Conciliation Committee exceed nine months. The Conference agrees that the principles and conditions referred to in Article 191a(1) of the Treaty establishing the European Community will allow a Member State to request the Commission or the Council not to communicate to third parties a document originating from that State without its prior agreement. The Conference recognises that the special arrangements for the association of the overseas countries and territories (OCTs) under Part Four of the Treaty establishing the European Community were designed for countries and territories that were numerous, covered vast areas and had large populations. The arrangements have changed little since 1957. The Conference notes that there are today only 20 OCTs and that they are extremely scattered island territories with a total population of approximately 900 000. Moreover, most OCTs lag far behind in structural terms, a fact linked to their particularly severe geographical and economic handicaps. In these circumstances, the special arrangements for association as they were conceived in 1957 can no longer deal effectively with the challenges of OCT development. The Conference solemnly restates that the purpose of association is to promote the economic and social development of the countries and territories and to establish close economic relations between them and the Community as a whole. The Conference invites the Council, acting in accordance with the provisions of Article 136 of the Treaty establishing the European Community, to review the association arrangements by February 2000, with the fourfold objective of: – promoting the economic and social development of the OCTs more effectively; – developing economic relations between the OCTs and the European Union; – taking greater account of the diversity and specific characteristics of the individual OCTs, including aspects relating to freedom of establishment; – ensuring that the effectiveness of the financial instrument is improved. The Conference notes the Commission’s opinion to the effect that the Community’s existing competition rules allow services of general economic interest provided by public credit institutions existing in Germany and the facilities granted to them to compensate for the costs connected with such services to be taken into account in full. In this context, the way in which Germany enables local authorities to carry out their task of making available in their regions a comprehensive and efficient financial infrastructure is a matter for the organisation of that Member State. Such facilities may not adversely affect the conditions of competition to an extent beyond that required in order to perform these particular tasks and which is contrary to the interests of the Community. The Conference recalls that the European Council has invited the Commission to examine whether similar cases exist in the other Member States, to apply as appropriate the same standards on similar cases and to inform the Council in its ECOFIN formation. The Conference recognises the important contribution made by voluntary service activities to developing social solidarity. The Community will encourage the European dimension of voluntary organisations with particular emphasis on the exchange of information and experiences as well as on the participation of the young and the elderly in voluntary work. The Conference notes that the quality of the drafting of Community legislation is crucial if it is to be properly implemented by the competent national authorities and better understood by the public and in business circles. It recalls the conclusions on this subject reached by the Presidency of the European Council in Edinburgh on 11 and 12 December 1992, as well as the Council Resolution on the quality of drafting of Community legislation adopted on 8 June 1993 (Official Journal of the European Communities, C 166 of 17 June 1993, p. 1). The Conference considers that the three institutions involved in the procedure for adopting Community legislation, the European Parliament, the Council and the Commission, should lay down guidelines on the quality of drafting of the said legislation. It also stresses that Community legislation should be made more accessible and welcomes in this regard the adoption and first implementation of an accelerated working method for official codification of legislative texts, established by the Interinstitutional Agreement of 20 December 1994 (Official Journal of the European Communities, C 102 of 4 April 1996, p. 2). Therefore, the Conference declares that the European Parliament, the Council and the Commission ought to: – establish by common accord guidelines for improving the quality of the drafting of Community legislation and follow those guidelines when considering proposals for Community legislation or draft legislation, taking the internal organisational measures they deem necessary to ensure that these guidelines are properly applied; – make their best efforts to accelerate the codification of legislative texts. The repeal of Article 14 of the Convention on the Transitional Provisions annexed to the Treaty establishing the European Coal and Steel Community does not alter existing practice concerning the procedure for the conclusion of international agreements by the European Coal and Steel Community. The Conference considers that the European Parliament, the Council and the Commission, when they act in pursuance of the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community, should draw guidance from the provisions relating to transparency, access to documents and the fight against fraud in force within the framework of the Treaty establishing the European Community. The High Contracting Parties agreed that the technical work begun during the course of this Intergovernmental Conference shall continue as speedily as possible with the aim of drafting a consolidation of all the relevant Treaties, including the Treaty on European Union. They agreed that the final results of this technical work, which shall be made public for illustrative purposes under the responsibility of the Secretary-General of the Council, shall have no legal value. The High Contracting Parties confirm, on the one hand, the Declaration on the implementation of Community law annexed to the Final Act of the Treaty on European Union and, on the other, the conclusions of the Essen European Council stating that the administrative implementation of Community law shall in principle be the responsibility of the Member States in accordance with their constitutional arrangements. This shall not affect the supervisory, monitoring and implementing powers of the Community Institutions as provided under Articles 145 and 155 of the Treaty establishing the European Community. The High Contracting Parties agree that the Council shall adopt all the necessary measures referred to in Article 2 of the Protocol integrating the Schengen acquis into the framework of the European Union upon the date of entry into force of the Treaty of Amsterdam. To that end, the necessary preparatory work shall be undertaken in due time in order to be completed prior to that date. The High Contracting Parties invite the Council to seek the opinion of the Commission before it decides on a request under Article 4 of the Protocol integrating the Schengen acquis into the framework of the European Union by Ireland or the United Kingdom of Great Britain and Northern Ireland to take part in some or all of the provisions of the Schengen acquis. They also undertake to make their best efforts with a view to allowing Ireland or the United Kingdom of Great Britain and Northern Ireland, if they so wish, to use the provisions of Article 4 of the said Protocol so that the Council may be in a position to take the decisions referred to in that Article upon the date of entry into force of that Protocol or at any time thereafter. The High Contracting Parties undertake to make all efforts in order to make action among all Member States possible in the domains of the Schengen acquis, in particular whenever Ireland and the United Kingdom of Great Britain and Northern Ireland have accepted some or all of the provisions of that acquis in accordance with Article 4 of the Protocol integrating the Schengen acquis into the framework of the European Union. The High Contracting Parties agree to take all necessary steps so that the Agreements referred to in Article 6 of the Protocol integrating the Schengen acquis into the framework of the European Union may enter into force on the same date as the date of entry into force of the Treaty of Amsterdam. The Protocol on asylum for nationals of Member States of the European Union does not prejudice the right of each Member State to take the organisational measures it deems necessary to fulfil its obligations under the Geneva Convention of 28 July 1951 relating to the status of refugees. The Conference declares that, while recognising the importance of the Resolution of the Ministers of the Member States of the European Communities responsible for immigration of 30 November/1 December 1992 on manifestly unfounded applications for asylum and of the Resolution of the Council of 20 June 1995 on minimum guarantees for asylum procedures, the question of abuse of asylum procedures and appropriate rapid procedures to dispense with manifestly unfounded applications for asylum should be further examined with a view to introducing new improvements in order to accelerate these procedures. Until the entry into force of the first enlargement it is agreed that the decision of the Council of 29 March 1994 (‘the Ioannina Compromise’) will be extended and, by that date, a solution for the special case of Spain will be found. The Treaty of Amsterdam repeals and deletes lapsed provisions of the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community as they were in force before the entry into force of the Treaty of Amsterdam and adapts certain of their provisions, including the insertion of certain provisions of the Treaty establishing a single Council and a single Commission of the European Communities and the Act concerning the election of the representatives of the European Parliament by direct universal suffrage. Those operations do not affect the ‘acquis communautaire’. DECLARATIONS OF WHICH THE CONFERENCE TOOK NOTE Austria and Luxembourg consider that the Declaration on public credit institutions in Germany also applies to credit institutions in Austria and Luxembourg with a comparable organisational structure. Article K.14 of the Treaty on European Union requires the unanimity of all members of the Council of the European Union, i.e. all Member States, for the adoption of any decision to apply the provisions of Title IIIa of the Treaty establishing the European Community on visas, asylum, immigration and other policies related to free movement of persons to action in areas referred to in Article K.1. Moreover, any unanimous decision of the Council, before coming into force, will have to be adopted in each Member State, in accordance with its constitutional requirements. In Denmark, such adoption will, in the case of a transfer of sovereignty, as defined in the Danish constitution, require either a majority of five sixths of members of the Folketing or both a majority of the members of the Folketing and a majority of voters in a referendum. It is taken for granted by the German, Austrian and Belgian governments that action by the European Community in accordance with the principle of subsidiarity not only concerns the Member States but also their entities to the extent that they have their own law-making powers conferred on them under national constitutional law. Ireland declares that it intends to exercise its right under Article 3 of the Protocol on the position of the United Kingdom and Ireland to take part in the adoption of measures pursuant to Title IIIa of the Treaty establishing the European Community to the maximum extent compatible with the maintenance of its Common Travel Area with the United Kingdom. Ireland recalls that its participation in the Protocol on the application of certain aspects of Article 7a of the Treaty establishing the European Community reflects its wish to maintain its Common Travel Area with the United Kingdom in order to maximise freedom of movement into and out of Ireland. In approving the Protocol on asylum for nationals of Member States of the European Union, Belgium declares that, in accordance with its obligations under the 1951 Geneva Convention and the 1967 New York Protocol, it shall, in accordance with the provision set out in point (d) of the sole Article of that Protocol, carry out an individual examination of any asylum request made by a national of another Member State. Belgium, France and Italy observe that, on the basis of the results of the Intergovernmental Conference, the Treaty of Amsterdam does not meet the need, reaffirmed at the Madrid European Council, for substantial progress towards reinforcing the institutions. Those countries consider that such reinforcement is an indispensable condition for the conclusion of the first accession negotiations. They are determined to give the fullest effect appropriate to the Protocol as regards the composition of the Commission and the weighting of votes and consider that a significant extension of recourse to qualified majority voting forms part of the relevant factors which should be taken into account. France considers that the implementation of the Protocol integrating the Schengen acquis into the framework of the European Union does not affect the geographical scope of the Convention implementing the Schengen Agreement of 14 June 1985 signed in Schengen on 19 June 1990, as it is defined by Article 138, first paragraph, of that Convention. With reference to the Declaration on the status of churches and non-confessional organisations, Greece recalls the Joint Declaration on Mount Athos annexed to the Final Act of the Treaty of Accession of Greece to the European Communities. CONTENTS Page I. Text of the Treaty Preamble TITLE I – Common provisions ………. 152 TITLE II – Provisions amending the Treaty establishing the European Economic Community with a view to establishing the European Community ………. 154 TITLE III – Provisions amending the Treaty establishing the European Coal and Steel Community ………. 154 TITLE IV – Provisions amending the Treaty establishing the European Atomic Energy Community ………. 155 TITLE V – Provisions on a common foreign and security policy ………. 155 TITLE VI – Provisions on police and judicial cooperation in criminal matters ………. 162 TITLE VII – Provisions on closer cooperation ………. 169 TITLE VIII – Final provisions ………. PROTOCOLS (text not reproduced) Note: The references to Treaty articles, titles and sections contained in the protocols are adapted in accordance with the tables of equivalence set out in the Annex to the Treaty of Amsterdam. Protocol annexed to the Treaty on European Union: – Protocol (No 1) on Article 17 of the Treaty on European Union (1997) Protocols annexed to the Treaty on European Union and to the Treaty establishing the European Community: – Protocol (No 2) integrating the Schengen acquis into the framework of the European Union (1997) – Protocol (No 3) on the application of certain aspects of Article 14 of the Treaty establishing the European Community to the United Kingdom and to Ireland (1997) – Protocol (No 4) on the position of the United Kingdom and Ireland (1997) – Protocol (No 5) on the position of Denmark (1997) Protocols annexed to the Treaty on European Union and to the Treaties establishing the European Community, the European Coal and Steel Community and the European Atomic Energy Community: – Protocol (No 6) annexed to the Treaty on European Union and to the Treaties establishing the European Communities (1992) – Protocol (No 7) on the institutions with the prospect of enlargement of the European Union (1997) – Protocol (No 8) on the location of the seats of the institutions and of certain bodies and departments of the European Communities and of Europol (1997) – Protocol (No 9) on the role of national parliaments in the European Union (1997) HIS MAJESTY THE KING OF THE BELGIANS, HER MAJESTY THE QUEEN OF DENMARK, THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY, THE PRESIDENT OF THE HELLENIC REPUBLIC, HIS MAJESTY THE KING OF SPAIN, THE PRESIDENT OF THE FRENCH REPUBLIC, THE PRESIDENT OF IRELAND, THE PRESIDENT OF THE ITALIAN REPUBLIC, HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG, HER MAJESTY THE QUEEN OF THE NETHERLANDS, THE PRESIDENT OF THE PORTUGUESE REPUBLIC, HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, RESOLVED to mark a new stage in the process of European integration undertaken with the establishment of the European Communities, RECALLING the historic importance of the ending of the division of the European continent and the need to create firm bases for the construction of the future Europe, CONFIRMING their attachment to the principles of liberty, democracy and respect for human rights and fundamental freedoms and of the rule of law, CONFIRMING their attachment to fundamental social rights as defined in the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community Charter of the Fundamental Social Rights of Workers, DESIRING to deepen the solidarity between their peoples while respecting their history, their culture and their traditions, DESIRING to enhance further the democratic and efficient functioning of the institutions so as to enable them better to carry out, within a single institutional framework, the tasks entrusted to them, RESOLVED to achieve the strengthening and the convergence of their economies and to establish an economic and monetary union including, in accordance with the provisions of this Treaty, a single and stable currency, DETERMINED to promote economic and social progress for their peoples, taking into account the principle of sustainable development and within the context of the accomplishment of the internal market and of reinforced cohesion and environmental protection, and to implement policies ensuring that advances in economic integration are accompanied by parallel progress in other fields, RESOLVED to establish a citizenship common to nationals of their countries, RESOLVED to implement a common foreign and security policy including the progressive framing of a common defence policy, which might lead to a common defence in accordance with the provisions of Article 17, thereby reinforcing the European identity and its independence in order to promote peace, security and progress in Europe and in the world, RESOLVED to facilitate the free movement of persons, while ensuring the safety and security of their peoples, by establishing an area of freedom, security and justice, in accordance with the provisions of this Treaty, RESOLVED to continue the process of creating an ever closer union among the peoples of Europe, in which decisions are taken as closely as possible to the citizen in accordance with the principle of subsidiarity, IN VIEW of further steps to be taken in order to advance European integration, HAVE DECIDED to establish a European Union and to this end have designated as their Plenipotentiaries: HIS MAJESTY THE KING OF THE BELGIANS: Mark EYSKENS, Minister for Foreign Affairs, Philippe MAYSTADT, Minister for Finance; HER MAJESTY THE QUEEN OF DENMARK: Uffe ELLEMANN-JENSEN, Minister for Foreign Affairs, Anders FOGH RASMUSSEN, Minister for Economic Affairs; THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY: Hans-Dietrich GENSCHER, Federal Minister for Foreign Affairs, Theodor WAIGEL, Federal Minister for Finance; THE PRESIDENT OF THE HELLENIC REPUBLIC: Antonios SAMARAS, Minister for Foreign Affairs, Efthymios CHRISTODOULOU, Minister for Economic Affairs; HIS MAJESTY THE KING OF SPAIN: Francisco FERNÁNDEZ ORDÓÑEZ, Minister for Foreign Affairs, Carlos SOLCHAGA CATALÁN, Minister for Economic Affairs and Finance; THE PRESIDENT OF THE FRENCH REPUBLIC: Roland DUMAS, Minister for Foreign Affairs, Pierre BÉRÉGOVOY, Minister for Economic and Financial Affairs and the Budget; THE PRESIDENT OF IRELAND: Gerard COLLINS, Minister for Foreign Affairs, Bertie AHERN, Minister for Finance; THE PRESIDENT OF THE ITALIAN REPUBLIC: Gianni DE MICHELIS, Minister for Foreign Affairs, Guido CARLI, Minister for the Treasury; HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG: Jacques F. POOS, Deputy Prime Minister, Minister for Foreign Affairs, Jean-Claude JUNCKER, Minister for Finance; HER MAJESTY THE QUEEN OF THE NETHERLANDS: Hans VAN DEN BROEK, Minister for Foreign Affairs, Willem KOK, Minister for Finance; THE PRESIDENT OF THE PORTUGUESE REPUBLIC: João de Deus PINHEIRO, Minister for Foreign Affairs, Jorge BRAGA DE MACEDO, Minister for Finance; HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: The Rt. Hon. Douglas HURD, Secretary of State for Foreign and Commonwealth Affairs, The Hon. Francis MAUDE, Financial Secretary to the Treasury; WHO, having exchanged their full powers, found in good and due form, have agreed as follows. By this Treaty, the HIGH CONTRACTING PARTIES establish among themselves a EUROPEAN UNION, hereinafter called ‘the Union’. This Treaty marks a new stage in the process of creating an ever closer union among the peoples of Europe, in which decisions are taken as openly as possible and as closely as possible to the citizen. The Union shall be founded on the European Communities, supplemented by the policies and forms of cooperation established by this Treaty. Its task shall be to organise, in a manner demonstrating consistency and solidarity, relations between the Member States and between their peoples. The Union shall set itself the following objectives: – to promote economic and social progress and a high level of employment and to achieve balanced and sustainable development, in particular through the creation of an area without internal frontiers, through the strengthening of economic and social cohesion and through the establishment of economic and monetary union, ultimately including a single currency in accordance with the provisions of this Treaty; – to assert its identity on the international scene, in particular through the implementation of a common foreign and security policy including the progressive framing of a common defence policy, which might lead to a common defence, in accordance with the provisions of Article 17; – to strengthen the protection of the rights and interests of the nationals of its Member States through the introduction of a citizenship of the Union; – to maintain and develop the Union as an area of freedom, security and justice, in which the free movement of persons is assured in conjunction with appropriate measures with respect to external border controls, asylum, immigration and the prevention and combating of crime; – to maintain in full the acquis communautaire and build on it with a view to considering to what extent the policies and forms of cooperation introduced by this Treaty may need to be revised with the aim of ensuring the effectiveness of the mechanisms and the institutions of the Community. The objectives of the Union shall be achieved as provided in this Treaty and in accordance with the conditions and the timetable set out therein while respecting the principle of subsidiarity as defined in Article 5 of the Treaty establishing the European Community. The Union shall be served by a single institutional framework which shall ensure the consistency and the continuity of the activities carried out in order to attain its objectives while respecting and building upon the acquis communautaire. The Union shall in particular ensure the consistency of its external activities as a whole in the context of its external relations, security, economic and development policies. The Council and the Commission shall be responsible for ensuring such consistency and shall cooperate to this end. They shall ensure the implementation of these policies, each in accordance with its respective powers. The European Council shall provide the Union with the necessary impetus for its development and shall define the general political guidelines thereof. The European Council shall bring together the Heads of State or Government of the Member States and the President of the Commission. They shall be assisted by the Ministers for Foreign Affairs of the Member States and by a Member of the Commission. The European Council shall meet at least twice a year, under the chairmanship of the Head of State or Government of the Member State which holds the Presidency of the Council. The European Council shall submit to the European Parliament a report after each of its meetings and a yearly written report on the progress achieved by the Union. The European Parliament, the Council, the Commission, the Court of Justice and the Court of Auditors shall exercise their powers under the conditions and for the purposes provided for, on the one hand, by the provisions of the Treaties establishing the European Communities and of the subsequent Treaties and Acts modifying and supplementing them and, on the other hand, by the other provisions of this Treaty. The Union is founded on the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law, principles which are common to the Member States. The Union shall respect fundamental rights, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms signed in Rome on 4 November 1950 and as they result from the constitutional traditions common to the Member States, as general principles of Community law. The Union shall respect the national identities of its Member States. The Union shall provide itself with the means necessary to attain its objectives and carry through its policies. The Council, meeting in the composition of the Heads of State or Government and acting by unanimity on a proposal by one third of the Member States or by the Commission and after obtaining the assent of the European Parliament, may determine the existence of a serious and persistent breach by a Member State of principles mentioned in Article 6(1), after inviting the government of the Member State in question to submit its observations. Where such a determination has been made, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the application of this Treaty to the Member State in question, including the voting rights of the representative of the government of that Member State in the Council. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons. The obligations of the Member State in question under this Treaty shal l in any case continue to be binding on that State. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken under paragraph 2 in response to changes in the situation which led to their being imposed. For the purposes of this Article, the Council shall act without taking into account the vote of the representative of the government of the Member State in question. Abstentions by members present in person or represented shall not prevent the adoption of decisions referred to in paragraph 1. A qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 205(2) of the Treaty establishing the European Community. This paragraph shall also apply in the event of voting rights being suspended pursuant to paragraph 2. For the purposes of this Article, the European Parliament shall act by a two-thirds majority of the votes cast, representing a majority of its members. (not reproduced) (not reproduced) (not reproduced) The Union shall define and implement a common foreign and security policy covering all areas of foreign and security policy, the objectives of which shall be: – to safeguard the common values, fundamental interests, independence and integrity of the Union in conformity with the principles of the United Nations Charter; – to strengthen the security of the Union in all ways; – to preserve peace and strengthen international security, in accordance with the principles of the United Nations Charter, as well as the principles of the Helsinki Final Act and the objectives of the Paris Charter, including those on external borders; – to promote international cooperation; – to develop and consolidate democracy and the rule of law, and respect for human rights and fundamental freedoms. The Member States shall support the Union’s external and security policy actively and unreservedly in a spirit of loyalty and mutual solidarity. The Member States shall work together to enhance and develop their mutual political solidarity. They shall refrain from any action which is contrary to the interests of the Union or likely to impair its effectiveness as a cohesive force in international relations. The Council shall ensure that these principles are complied with. The Union shall pursue the objectives set out in Article 11 by: – defining the principles of and general guidelines for the common foreign and security policy; – deciding on common strategies; – adopting joint actions; – adopting common positions; – strengthening systematic cooperation between Member States in the conduct of policy. The European Council shall define the principles of and general guidelines for the common foreign and security policy, including for matters with defence implications. The European Council shall decide on common strategies to be implemented by the Union in areas where the Member States have important interests in common. Common strategies shall set out their objectives, duration and the means to be made available by the Union and the Member States. The Council shall take the decisions necessary for defining and implementing the common foreign and security policy on the basis of the general guidelines defined by the European Council. The Council shall recommend common strategies to the European Council and shall implement them, in particular by adopting joint actions and common positions. The Council shall ensure the unity, consistency and effectiveness of action by the Union. The Council shall adopt joint actions. Joint actions shall address specific situations where operational action by the Union is deemed to be required. They shall lay down their objectives, scope, the means to be made available to the Union, if necessary their duration, and the conditions for their implementation. If there is a change in circumstances having a substantial effect on a question subject to joint action, the Council shall review the principles and objectives of that action and take the necessary decisions. As long as the Council has not acted, the joint action shall stand. Joint actions shall commit the Member States in the positions they adopt and in the conduct of their activity. The Council may request the Commission to submit to it any appropriate proposals relating to the common foreign and security policy to ensure the implementation of a joint action. Whenever there is any plan to adopt a national position or take national action pursuant to a joint action, information shall be provided in time to allow, if necessary, for prior consultations within the Council. The obligation to provide prior information shall not apply to measures which are merely a national transposition of Council decisions. In cases of imperative need arising from changes in the situation and failing a Council decision, Member States may take the necessary measures as a matter of urgency having regard to the general objectives of the joint action. The Member State concerned shall inform the Council immediately of any such measures. Should there be any major difficulties in implementing a joint action, a Member State shall refer them to the Council which shall discuss them and seek appropriate solutions. Such solutions shall not run counter to the objectives of the joint action or impair its effectiveness. The Council shall adopt common positions. Common positions shall define the approach of the Union to a particular matter of a geographical or thematic nature. Member States shall ensure that their national policies conform to the common positions. Member States shall inform and consult one another within the Council on any matter of foreign and security policy of general interest in order to ensure that the Union’s influence is exerted as effectively as possible by means of concerted and convergent action. The common foreign and security policy shall include all questions relating to the security of the Union, including the progressive framing of a common defence policy, in accordance with the second subparagraph, which might lead to a common defence, should the European Council so decide. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements. The Western European Union (WEU) is an integral part of the development of the Union providing the Union with access to an operational capability notably in the context of paragraph 2. It supports the Union in framing the defence aspects of the common foreign and security policy as set out in this Article. The Union shall accordingly foster closer institutional relations with the WEU with a view to the possibility of the integration of the WEU into the Union, should the European Council so decide. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements. The policy of the Union in accordance with this Article shall not prejudice the specific character of the security and defence policy of certain Member States and shall respect the obligations of certain Member States, which see their common defence realised in the North Atlantic Treaty Organisation (NATO), under the North Atlantic Treaty and be compatible with the common security and defence policy established within that framework. The progressive framing of a common defence policy will be supported, as Member States consider appropriate, by cooperation between them in the field of armaments. Questions referred to in this Article shall include humanitarian and rescue tasks, peacekeeping tasks and tasks of combat forces in crisis management, including peacemaking. The Union will avail itself of the WEU to elaborate and implement decisions and actions of the Union which have defence implications. The competence of the European Council to establish guidelines in accordance with Article 13 shall also obtain in respect of the WEU for those matters for which the Union avails itself of the WEU. When the Union avails itself of the WEU to elaborate and implement decisions of the Union on the tasks referred to in paragraph 2 all Member States of the Union shall be entitled to participate fully in the tasks in question. The Council, in agreement with the institutions of the WEU, shall adopt the necessary practical arrangements to allow all Member States contributing to the tasks in question to participate fully and on an equal footing in planning and decision-taking in the WEU. Decisions having defence implications dealt with under this paragraph shall be taken without prejudice to the policies and obligations referred to in paragraph 1, third subparagraph. The provisions of this Article shall not prevent the development of closer cooperation between two or more Member States on a bilateral level, in the framework of the WEU and the Atlantic Alliance, provided such cooperation does not run counter to or impede that provided for in this Title. With a view to furthering the objectives of this Article, the provisions of this Article will be reviewed in accordance with Article 48. The Presidency shall represent the Union in matters coming within the common foreign and security policy. The Presidency shall be responsible for the implementation of decisions taken under this Title; in that capacity it shall in principle express the position of the Union in international organisations and international conferences. The Presidency shall be assisted by the Secretary-General of the Council who shall exercise the function of High Representative for the common foreign and security policy. The Commission shall be fully associated in the tasks referred to in paragraphs 1 and 2. The Presidency shall be assisted in those tasks if need be by the next Member State to hold the Presidency. The Council may, whenever it deems it necessary, appoint a special representative with a mandate in relation to particular policy issues. Member States shall coordinate their action in international organisations and at international conferences. They shall uphold the common positions in such fora. In international organisations and at international conferences where not all the Member States participate, those which do take part shall uphold the common positions. Without prejudice to paragraph 1 and Article 14(3), Member States represented in international organisations or international conferences where not all the Member States participate shall keep the latter informed of any matter of common interest. Member States which are also members of the United Nations Security Council will concert and keep the other Member States fully informed. Member States which are permanent members of the Security Council will, in the execution of their functions, ensure the defence of the positions and the interests of the Union, without prejudice to their responsibilities under the provisions of the United Nations Charter. The diplomatic and consular missions of the Member States and the Commission Delegations in third countries and international conferences, and their representations to international organisations, shall cooperate in ensuring that the common positions and joint actions adopted by the Council are complied with and implemented. They shall step up cooperation by exchanging information, carrying out joint assessments and contributing to the implementation of the provisions referred to in Article 20 of the Treaty establishing the European Community. The Presidency shall consult the European Parliament on the main aspects and the basic choices of the common foreign and security policy and shall ensure that the views of the European Parliament are duly taken into consideration. The European Parliament shall be kept regularly informed by the Presidency and the Commission of the development of the Union’s foreign and security policy. The European Parliament may ask questions of the Council or make recommendations to it. It shall hold an annual debate on progress in implementing the common foreign and security policy. Any Member State or the Commission may refer to the Council any question relating to the common foreign and security policy and may submit proposals to the Council. In cases requiring a rapid decision, the Presidency, of its own motion, or at the request of the Commission or a Member State, shall convene an extraordinary Counci l meeting within forty-eight hours or, in an emergency, within a shorter period. Decisions under this Title shall be taken by the Council acting unanimously. Abstentions by members present in person or represented shall not prevent the adoption of such decisions. When abstaining in a vote, any member of the Council may qualify its abstention by making a formal declaration under the present subparagraph. In that case, it shall not be obliged to apply the decision, but shall accept that the decision commits the Union. In a spirit of mutual solidarity, the Member State concerned shall refrain from any action likely to conflict with or impede Union action based on that decision and the other Member States shall respect its position. If the members of the Council qualifying their abstention in this way represent more than one third of the votes weighted in accordance with Article 205(2) of the Treaty establishing the European Community, the decision shall not be adopted. By derogation from the provisions of paragraph 1, the Council shall act by qualified majority: – when adopting joint actions, common positions or taking any other decision on the basis of a common strategy; – when adopting any decision implementing a joint action or a common position. If a member of the Council declares that, for important and stated reasons of national policy, it intends to oppose the adoption of a decision to be taken by qualified majority, a vote shall not be taken. The Council may, acting by a qualified majority, request that the matter be referred to the European Council for decision by unanimity. The votes of the members of the Council shall be weighted in accordance with Article 205(2) of the Treaty establishing the European Community. For their adoption, decisions shall require at least 62 votes in favour, cast by at least 10 members. This paragraph shall not apply to decisions having military or defence implications. For procedural questions, the Council shall act by a majority of its members. When it is necessary to conclude an agreement with one or more States or international organisations in implementation of this Title, the Council, acting unanimously, may authorise the Presidency, assisted by the Commission as appropriate, to open negotiations to that effect. Such agreements shall be concluded by the Council acting unanimously on a recommendation from the Presidency. No agreement shall be binding on a Member State whose representative in the Council states that it has to comply with the requirements of its own constitutional procedure; the other members of the Council may agree that the agreement shall apply provisionally to them. The provisions of this Article shall also apply to matters falling under Title VI. Without prejudice to Article 207 of the Treaty establishing the European Community, a Political Committee shall monitor the international situation in the areas covered by the common foreign and security policy and contribute to the definition of policies by delivering opinions to the Council at the request of the Council or on its own initiative. It shall also monitor the implementation of agreed policies, without prejudice to the responsibility of the Presidency and the Commission. The Secretary-General of the Council, High Representative for the common foreign and security policy, shall assist the Council in matters coming within the scope of the common foreign and security policy, in particular through contributing to the formulation, preparation and implementation of policy decisions, and, when appropriate and acting on behalf of the Council at the request of the Presidency, through conducting political dialogue with third parties. The Commission shall be fully associated with the work carried out in the common foreign and security policy field. Articles 189, 190, 196 to 199, 203, 204, 206 to 209, 213 to 219, 255 and 290 of the Treaty establishing the European Community shall apply to the provisions relating to the areas referred to in this Title. Administrative expenditure which the provisions relating to the areas referred to in this Title entail for the institutions shall be charged to the budget of the European Communities. Operational expenditure to which the implementation of those provisions gives rise shall also be charged to the budget of the European Communities, except for such expenditure arising from operations having military or defence implications and cases where the Council acting unanimously decides otherwise. In cases where expenditure is not charged to the budget of the European Communities it shall be charged to the Member States in accordance with the gross national product scale, unless the Council acting unanimously decides otherwise. As for expenditure arising from operations having military or defence implications, Member States whose representatives in the Council have made a formal declaration under Article 23(1), second subparagraph, shall not be obliged to contribute to the financing thereof. The budgetary procedure laid down in the Treaty establishing the European Community shall apply to the expenditure charged to the budget of the European Communities. Without prejudice to the powers of the European Community, the Union’s objective shall be to provide citizens with a high level of safety within an area of freedom, security and justice by developing common action among the Member States in the fields of police and judicial cooperation in criminal matters and by preventing and combating racism and xenophobia. That objective shall be achieved by preventing and combating crime, organised or otherwise, in particular terrorism, trafficking in persons and offences against children, illicit drug trafficking and illicit arms trafficking, corruption and fraud, through: – closer cooperation between police forces, customs authorities and other competent authorities in the Member States, both directly and through the European Police Office (Europol), in accordance with the provisions of Articles 30 and 32; – closer cooperation between judicial and other competent authorities of the Member States in accordance with the provisions of Articles 31(a) to (d) and 32; – approximation, where necessary, of rules on criminal matters in the Member States, in accordance with the provisions of Article 31(e). Common action in the field of police cooperation shall include: (a) operational cooperation between the competent authorities, including the police, customs and other specialised law enforcement services of the Member States in relation to the prevention, detection and investigation of criminal offences; (b) the collection, storage, processing, analysis and exchange of relevant information, including information held by law enforcement services on reports on suspicious financial transactions, in particular through Europol, subject to appropriate provisions on the protection of personal data; (c) cooperation and joint initiatives in training, the exchange of liaison officers, secondments, the use of equipment, and forensic research; (d) the common evaluation of particular investigative techniques in relation to the detection of serious forms of organised crime. The Council shall promote cooperation through Europol and shall in particular, within a period of five years after the date of entry into force of the Treaty of Amsterdam: (a) enable Europol to facilitate and support the preparation, and to encourage the coordination and carrying out, of specific investigative actions by the competent authorities of the Member States, including operational actions of joint teams comprising representatives of Europol in a support capacity; (b) adopt measures allowing Europol to ask the competent authorities of the Member States to conduct and coordinate their investigations in specific cases and to develop specific expertise which may be put at the disposal of Member States to assist them in investigating cases of organised crime; (c) promote liaison arrangements between prosecuting/investigating officials specialising in the fight against organised crime in close cooperation with Europol; (d) establish a research, documentation and statistical network on cross-border crime. Common action on judicial cooperation in criminal matters shall include: (a) facilitating and accelerating cooperation between competent ministries and judicial or equivalent authorities of the Member States in relation to proceedings and the enforcement of decisions; (b) facilitating extradition between Member States; (c) ensuring compatibility in rules applicable in the Member States, as may be necessary to improve such cooperation; (d) preventing conflicts of jurisdiction between Member States; (e) progressively adopting measures establishing minimum rules relating to the constituent elements of criminal acts and to penalties in the fields of organised crime, terrorism and illicit drug trafficking. The Council shall lay down the conditions and limitations under which the competent authorities referred to in Articles 30 and 31 may operate in the territory of another Member State in liaison and in agreement with the authorities of that State. This Title shall not affect the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security. In the areas referred to in this Title, Member States shall inform and consult one another within the Council with a view to coordinating their action. To that end, they shall establish collaboration between the relevant departments of their administrations. The Council shall take measures and promote cooperation, using the appropriate form and procedures as set out in this Title, contributing to the pursuit of the objectives of the Union. To that end, acting unanimously on the initiative of any Member State or of the Commission, the Council may: (a) adopt common positions defining the approach of the Union to a particular matter; (b) adopt framework decisions for the purpose of approximation of the laws and regulations of the Member States. Framework decisions shall be binding upon the Member States as to the result to be achieved but shall leave to the national authorities the choice of form and methods. They shall not entail direct effect; (c) adopt decisions for any other purpose consistent with the objectives of this Title, excluding any approximation of the laws and regulations of the Member States. These decisions shall be binding and shall not entail direct effect; the Council, acting by a qualified majority, shall adopt measures necessary to implement those decisions at the level of the Union; (d) establish conventions which it shall recommend to the Member States for adoption in accordance with their respective constitutional requirements. Member States shall begin the procedures applicable within a time limit to be set by the Council. Unless they provide otherwise, conventions shall, once adopted by at least half of the Member States, enter into force for those Member States. Measures implementing conventions shall be adopted within the Council by a majority of two-thirds of the Contracting Parties. Where the Council is required to act by a qualified majority, the votes of its members shall be weighted as laid down in Article 205(2) of the Treaty establishing the European Community, and for their adoption acts of the Council shall require at least 62 votes in favour, cast by at least 10 members. For procedural questions, the Council shall act by a majority of its members. The Court of Justice of the European Communities shall have jurisdiction, subject to the conditions laid down in this Article, to give preliminary rulings on the validity and interpretation of framework decisions and decisions, on the interpretation of conventions established under this Title and on the validity and interpretation of the measures implementing them. By a declaration made at the time of signature of the Treaty of Amsterdam or at any time thereafter, any Member State shall be able to accept the jurisdiction of the Court of Justice to give preliminary rulings as specified in paragraph 1. A Member State making a declaration pursuant to paragraph 2 shall specify that either: (a) any court or tribunal of that State against whose decisions there is no judicial remedy under national law may request the Court of Justice to give a preliminary ruling on a question raised in a case pending before it and concerning the validity or interpretation of an act referred to in paragraph 1 if that court or tribunal considers that a decision on the question is necessary to enable it to give judgment, or (b) any court or tribunal of that State may request the Court of Justice to give a preliminary ruling on a question raised in a case pending before it and concerning the validity or interpretation of an act referred to in paragraph 1 if that court or tribunal considers that a decision on the question is necessary to enable it to give judgment. Any Member State, whether or not it has made a declaration pursuant to paragraph 2, shall be entitled to submit statements of case or written observations to the Court in cases which arise under paragraph 1. The Court of Justice shall have no jurisdiction to review the validity or pro portionality of operations carried out by the police or other law enforcement services of a Member State or the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security. The Court of Justice shall have jurisdiction to review the legality of framework decisions and decisions in actions brought by a Member State or the Commission on grounds of lack of competence, infringement of an essential procedural requirement, infringement of this Treaty or of any rule of law relating to its application, or misuse of powers. The proceedings provided for in this paragraph shall be instituted within two months of the publication of the measure. The Court of Justice shall have jurisdiction to rule on any dispute between Member States regarding the interpretation or the application of acts adopted under Article 34(2) whenever such dispute cannot be settled by the Council within six months of its being referred to the Council by one of its members. The Court shall also have jurisdiction to rule on any dispute between Member States and the Commission regarding the interpretation or the application of conventions established under Article 34(2)(d). A Coordinating Committee shall be set up consisting of senior officials. In addition to its coordinating role, it shall be the task of the Committee to: – give opinions for the attention of the Council, either at the Council’s request or on its own initiative; – contribute, without prejudice to Article 207 of the Treaty establishing the European Community, to the preparation of the Council’s discussions in the areas referred to in Article 29. The Commission shall be fully associated with the work in the areas referred to in this Title. Within international organisations and at international conferences in which they take part, Member States shall defend the common positions adopted under the provisions of this Title. Articles 18 and 19 shall apply as appropriate to matters falling under this Title. Agreements referred to in Article 24 may cover matters falling under this Title. The Council shall consult the European Parliament before adopting any measure referred to in Article 34(2)(b), (c) and (d). The European Parliament shall deliver its opinion within a time-limit which the Council may lay down, which shall not be less than three months. In the absence of an opinion within that time-limit, the Council may act. The Presidency and the Commission shall regularly inform the European Parliament of discussions in the areas covered by this Title. The European Parliament may ask questions of the Council or make recommendations to it. Each year, it shall hold a debate on the progress made in the areas referred to in this Title. Member States which intend to establish closer cooperation between themselves may be authorised, subject to Articles 43 and 44, to make use of the institutions, procedures and mechanisms laid down by the Treaties provided that the cooperation proposed: (a) respects the powers of the European Community, and the objectives laid down by this Title; (b) has the aim of enabling the Union to develop more rapidly into an area of freedom, security and justice. The authorisation referred to in paragraph 1 shall be granted by the Council, acting by a qualified majority at the request of the Member States concerned and after inviting the Commission to present its opinion; the request shall also be forwarded to the European Parliament. If a member of the Council declares that, for important and stated reasons of national policy, it intends to oppose the granting of an authorisation by qualified majority, a vote shall not be taken. The Council may, acting by a qualified majority, request that the matter be referred to the European Council for decision by unanimity. The votes of the members of the Council shall be weighted in accordance with Article 205(2) of the Treaty establishing the European Community. For their adoption, decisions shall require at least 62 votes in favour, cast by at least 10 members. Any Member State which wishes to become a party to cooperation set up in accordance with this Article shall notify its intention to the Council and to the Commission, which shall give an opinion to the Council within three months of receipt of that notification, possibly accompanied by a recommendation for such specific arrangements as it may deem necessary for that Member State to become a party to the cooperation in question. Within four months of the date of that notification, the Council shall decide on the request and on such specific arrangements as it may deem necessary. The decision shall be deemed to be taken unless the Council, acting by a qualified majority, decides to hold it in abeyance; in this case, the Council shall state the reasons for its decision and set a deadline for reexamining it. For the purposes of this paragraph, the Council shall act under the conditions set out in Article 44. The provisions of Articles 29 to 41 shall apply to the closer cooperation provided for by this Article, save as otherwise provided for in this Article and in Articles 43 and 44. The provisions of the Treaty establishing the European Community concerning the powers of the Court of Justice of the European Communities and the exercise of those powers shall apply to paragraphs 1, 2 and 3. This Article is without prejudice to the provisions of the Protocol integrating the Schengen acquis into the framework of the European Union. Articles 189, 190, 195, 196 to 199, 203, 204, 205(3), 206 to 209, 213 to 219, 255 and 290 of the Treaty establishing the European Community shall apply to the provisions relating to the areas referred to in this Title. Administrative expenditure which the provisions relating to the areas referred to in this Title entail for the institutions shall be charged to the budget of the European Communities. Operational expenditure to which the implementation of those provisions gives rise shall also be charged to the budget of the European Communities, except where the Council acting unanimously decides otherwise. In cases where expenditure is not charged to the budget of the European Communities it shall be charged to the Member States in accordance with the gross national product scale, unless the Council acting unanimously decides otherwise. The budgetary procedure laid down in the Treaty establishing the European Community shall apply to the expenditure charged to the budget of the European Communities. The Council, acting unanimously on the initiative of the Commission or a Me mber State, and after consulting the European Parliament, may decide that action in areas referred to in Article 29 shall fall under Title IV of the Treaty establishing the European Community, and at the same time determine the relevant voting conditions relating to it. It shall recommend the Member States to adopt that decision in accordance with their respective constitutional requirements. Member States which intend to establish closer cooperation between themselves may make use of the institutions, procedures and mechanisms laid down by this Treaty and the Treaty establishing the European Community provided that the cooperation: (a) is aimed at furthering the objectives of the Union and at protecting and serving its interests; (b) respects the principles of the said Treaties and the single institutional framework of the Union; (c) is only used as a last resort, where the objectives of the said Treaties could not be attained by applying the relevant procedures laid down therein; (d) concerns at least a majority of Member States; (e) does not affect the ‘acquis communautaire’ and the measures adopted under the other provisions of the said Treaties; (f) does not affect the competences, rights, obligations and interests of those Member States which do not participate therein; (g) is open to all Member States and allows them to become parties to the cooperation at any time, provided that they comply with the basic decision and with the decisions taken within that framework; (h) complies with the specific additional criteria laid down in Article 11 of the Treaty establishing the European Community and Article 40 of this Treaty, depending on the area concerned, and is authorised by the Council in accordance with the procedures laid down therein. Member States shall apply, as far as they are concerned, the acts and decisions adopted for the implementation of the cooperation in which they participate. Member States not participating in such cooperation shall not impede the implementation thereof by the participating Member States. For the purposes of the adoption of the acts and decisions necessary for the implementation of the cooperation referred to in Article 43, the relevant institutional provisions of this Treaty and of the Treaty establishing the European Community shall apply. However, while all members of the Council shall be able to take part in the deliberations, only those representing participating Member States shall take part in the adoption of decisions. The qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 205(2) of the Treaty establishing the European Community. Unanimity shall be constituted by only those Council members concerned. Expenditure resulting from implementation of the cooperation, other than administrative costs entailed for the institutions, shall be borne by the participating Member States, unless the Council, acting unanimously, decides otherwise. The Council and the Commission shall regularly inform the European Parliament of the development of closer cooperation established on the basis of this Title. The provisions of the Treaty establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community concerning the powers of the Court of Justice of the European Communities and the exercise of those powers shall apply only to the following provisions of this Treaty: (a) provisions amending the Treaty establishing the European Economic Community with a view to establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community; (b) provisions of Title VI, under the conditions provided for by Article 35; (c) provisions of Title VII, under the conditions provided for by Article 11 of the Treaty establishing the European Community and Article 40 of this Treaty; (d) Article 6(2) with regard to action of the institutions, insofar as the Court has jurisdiction under the Treaties establishing the European Communities and under this Treaty; (e) Articles 46 to 53. Subject to the provisions amending the Treaty establishing the European Economic Community with a view to establishing the European Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community, and to these final provisions, nothing in this Treaty shall affect the Treaties establishing the European Communities or the subsequent Treaties and Acts modifying or supplementing them. The government of any Member State or the Commission may submit to the Council proposals for the amendment of the Treaties on which the Union is founded. If the Council, after consulting the European Parliament and, where appropriate, the Commission, delivers an opinion in favour of calling a conference of representatives of the governments of the Member States, the conference shall be convened by the President of the Council for the purpose of determining by common accord the amendments to be made to those Treaties. The European Central Bank shall also be consulted in the case of institutional changes in the monetary area. The amendments shall enter into force after being ratified by all the Member States in accordance with their respective constitutional requirements. Any European State which respects the principles set out in Article 6(1) may apply to become a member of the Union. It shall address its application to the Council, which shall act unanimously after consulting the Commission and after receiving the assent of the European Parliament, which shall act by an absolute majority of its component members. The conditions of admission and the adjustments to the Treaties on which the Union is founded which such admission entails shall be the subject of an agreement between the Member States and the applicant State. This agreement shall be submitted for ratification by all the contracting States in accordance with their respective constitutional requirements. Articles 2 to 7 and 10 to 19 of the Treaty establishing a Single Council and a Single Commission of the European Communities , signed in Brussels on 8 April 1965, are hereby repealed. Article 2, Article 3(2) and Title III of the Single European Act signed in Luxembourg on 17 February 1986 and in The Hague on 28 February 1986 are hereby repealed. This Treaty is concluded for an unlimited period. This Treaty shall be ratified by the High Contracting Parties in accordance with their respective constitutional requirements. The instruments of ratification shall be deposited with the Government of the Italian Republic. This Treaty shall enter into force on 1 January 1993, provided that all the instruments of ratification have been deposited, or, failing that, on the first day of the month following the deposit of the instrument of ratification by the last signatory State to take this step. This Treaty, drawn up in a single original in the Danish, Dutch, English, French, German, Greek, Irish, Italian, Portuguese and Spanish languages, the texts in each of these languages being equally authentic, shall be deposited in the archives of the government of the Italian Republic, which will transmit a certified copy to each of the governments of the other signatory States. Pursuant to the Accession Treaty of 1994, the Finnish and Swedish versions of this Treaty shall also be authentic. In witness whereof the undersigned Plenipotentiaries have signed this Treaty. Done at Maastricht on the seventh day of February in the year one thousand nine hundred and ninety-two. Mark EYSKENS Uffe ELLEMANN-JENSEN Hans-Dietrich GENSCHER Antonios SAMARAS Francisco FERNÁNDEZ ORDÓÑEZ Roland DUMAS Gerard COLLINS Gianni DE MICHELIS Jacques F. POOS Hans VAN DEN BROEK João de Deus PINHEIRO Douglas HURD Philippe MAYSTADT Anders FOGH RASMUSSEN Theodor WAIGEL Efthymios CHRISTODOULOU Carlos SOLCHAGA CATALÁN Pierre BÉRÉGOVOY Bertie AHERN Guido CARLI Jean-Claude JUNCKER Willem KOK Jorge BRAGA DE MACEDO Francis MAUDE CONTENTS Page I – Text of the Treaty Preamble Part One – Principles ………. 181 Part Two – Citizenship of the Union ………. 186 Part Three – Community policies ………. 187 TITLE I – Free movement of goods ………. 187 Chapter 1 – The Customs Union ………. 188 Chapter 2 – Prohibition of quantitative restrictions between Member States ………. 189 TITLE II – Agriculture ………. 190 TITLE III – Free movement of persons, services and capital ………. 193 Chapter 1 – Workers ………. 193 Chapter 2 – Right of establishment ………. 195 Chapter 3 – Services ………. 197 Chapter 4 – Capital and payments ………. 199 TITLE IV – Visas, asylum, immigration and other policies related to free movement of persons ………. 200 TITLE V – Transport ………. 205 TITLE VI – Common rules on competition, taxation and approximation of laws ………. 208 Chapter 1 – Rules on competition ………. 208 Section 1 – Rules applying to undertakings ………. 208 Section 2 – Aids granted by States ………. 211 Chapter 2 – Tax provisions ………. 212 Chapter 3 – Approximation of laws ………. 213 TITLE VII – Economic and monetary policy ………. 215 Chapter 1 – Economic policy ………. 215 Chapter 2 – Monetary policy ………. 220 Chapter 3 – Institutional provisions ………. 224 Chapter 4 – Transitional provisions ………. 227 TITLE VIII – Employment ………. 235 TITLE IX – Common commercial policy ………. 237 TITLE X – Customs cooperation ………. 238 TITLE XI – Social policy, education, vocational training and youth ………. 239 Chapter 1 – Social provisions ………. 239 Chapter 2 – The European Social Fund ………. 243 Chapter 3 – Education, vocational training and youth ………. 244 TITLE XII – Culture ………. 245 TITLE XIII – Public health ………. 246 TITLE XIV – Consumer protection ………. 247 TITLE XV – Trans-European networks ………. 248 TITLE XVI – Industry ………. 249 TITLE XVII – Economic and social cohesion ………. 250 TITLE XVIII – Research and technological development ………. 251 TITLE XIX – Environment ………. 254 TITLE XX – Development cooperation ………. 256 Part Four – Association of the overseas countries and territories ………. 258 Part Five – Institutions of the Community ………. 260 TITLE I – Provisions governing the institutions ………. 260 Chapter 1 – The institutions ………. 260 Section 1 – The European Parliament ………. 260 Section 2 – The Council ………. 264 Section 3 – The Commission ………. 266 Section 4 – The Court of Justice ………. 269 Section 5 – The Court of Auditors ………. 276 Chapter 2 – Provisions common to several institutions ………. 278 Chapter 3 – The Economic and Social Committee ………. 282 Chapter 4 – The Committee of the Regions ………. 284 Chapter 5 – The European Investment Bank ………. 286 TITLE II – Financial provisions ………. 287 Part Six – General and final provisions ………. 293 Final provisions ………. 302 Annexes ANNEX I – List referred to in Article 32 of the Treaty ………. 303 ANNEX II – Overseas countries and territories to which the provisions of Part Four of the Treaty apply ………. 306 II – Protocols (text not reproduced) Note: The references to Treaty articles, titles and sections contained in the protocols are adapted in accordance with the tables of equivalence set out in the Annex to the Treaty of Amsterdam. Protocols annexed to the Treaty on European Union and to the Treaty establishing the European Community: – Protocol (No 2) integrating the Schengen acquis into the framework of the European Union (1997) – Protocol (No 3) on the application of certain aspects of Article 14 of the Treaty establishing the European Community to the United Kingdom and to Ireland (1997) – Protocol (No 4) on the position of the United Kingdom and Ireland (1997) – Protocol (No 5) on the position of Denmark (1997) Protocols annexed to the Treaty on European Union and to the Treaties establishing the European Community, the European Coal and Steel Community and the European Atomic Energy Community: – Protocol (No 6) annexed to the Treaty on European Union and to the Treaties establishing the European Communities (1992) – Protocol (No 7) on the institutions with the prospect of enlargement of the European Union (1997) – Protocol (No 8) on the location of the seats of the institutions and of certain bodies and departments of the European Communities and of Europol (1997) – Protocol (No 9) on the role of national parliaments in the European Union (1997) Protocols annexed to the Treaty establishing the European Community: – Protocol (No 10) on the Statute of the European Investment Bank (1957) – Protocol (No 11) on the Statute of the Court of Justice of the European Community (1957) – Protocol (No 12) on Italy (1957) – Protocol (No 13) on goods originating in and coming from certain countries and enjoying special treatment when imported into a Member State (1957) – Protocol (No 14) concerning imports into the European Community of petroleum products refined in the Netherlands Antilles (1962) – Pro tocol (No 15) on special arrangements for Greenland (1985) – Protocol (No 16) on the acquisition of property in Denmark (1992) – Protocol (No 17) concerning Article 141 of the Treaty establishing the European Community (1992) – Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (1992) – Protocol (No 19) on the Statute of the European Monetary Institute (1992) – Protocol (No 20) on the excessive deficit procedure (1992) – Protocol (No 21) on the convergence criteria referred to in Article 121 of the Treaty establishing the European Community (1992) – Protocol (No 22) on Denmark (1992) – Protocol (No 23) on Portugal (1992) – Protocol (No 24) on the transition to the third stage of economic and monetary union (1992) – Protocol (No 25) on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland (1992) – Protocol (No 26) on certain provisions relating to Denmark (1992) – Protocol (No 27) on France (1992) – Protocol (No 28) on economic and social cohesion (1992) – Protocol (No 29) on asylum for nationals of Member States of the European Union (1997) – Protocol (No 30) on the application of the principles of subsidiarity and proportionality (1997) – Protocol (No 31) on external relations of the Member States with regard to the crossing of external borders (1997) – Protocol (No 32) on the system of public broadcasting in the Member States (1997) – Protocol (No 33) on protection and welfare of animals (1997) Protocol annexed to the Treaties establishing the European Community, the European Coal and Steel Community and the European Atomic Energy Community: – Protocol (No 34) on the privileges and immunities of the European Communities (1965) HIS MAJESTY THE KING OF THE BELGIANS, THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY, THE PRESIDENT OF THE FRENCH REPUBLIC, THE PRESIDENT OF THE ITALIAN REPUBLIC, HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG, HER MAJESTY THE QUEEN OF THE NETHERLANDS (1), DETERMINED to lay the foundations of an ever closer union among the peoples of Europe, RESOLVED to ensure the economic and social progress of their countries by common action to eliminate the barriers which divide Europe, AFFIRMING as the essential objective of their efforts the constant improvements of the living and working conditions of their peoples, RECOGNISING that the removal of existing obstacles calls for concerted action in order to guarantee steady expansion, balanced trade and fair competition, ANXIOUS to strengthen the unity of their economies and to ensure their harmonious development by reducing the differences existing between the various regions and the backwardness of the less-favoured regions, DESIRING to contribute, by means of a common commercial policy, to the progressive abolition of restrictions on international trade, INTENDING to confirm the solidarity which binds Europe and the overseas countries and desiring to ensure the development of their prosperity, in accordance with the principles of the Charter of the United Nations, RESOLVED by thus pooling their resources to preserve and strengthen peace and liberty, and calling upon the other peoples of Europe who share their ideal to join in their efforts, DETERMINED to promote the development of the highest possible level of knowledge for their peoples through a wide access to education and through its continuous updating, HAVE DECIDED to create a EUROPEAN COMMUNITY and to this end have designated as their Plenipotentiaries: HIS MAJESTY THE KING OF THE BELGIANS: Mr Paul Henri SPAAK, Minister for Foreign Affairs, Baron J. Ch. SNOY ET D’OPPUERS, Secretary-General of the Ministry of Economic Affairs, Head of the Belgian Delegation to the Intergovernmental Conference; THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY: Dr. Konrad ADENAUER, Federal Chancellor, Professor Dr. Walter HALLSTEIN, State Secretary of the Federal Foreign Office; THE PRESIDENT OF THE FRENCH REPUBLIC: Mr Christian PINEAU, Minister for Foreign Affairs, Mr Maurice FAURE, Under-Secretary of State for Foreign Affairs; THE PRESIDENT OF THE ITALIAN REPUBLIC: Mr Antonio SEGNI, President of the Council of Ministers, Professor Gaetano MARTINO, Minister for Foreign Affairs; HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG: Mr Joseph BECH, President of the Government, Minister for Foreign Affairs, Mr Lambert SCHAUS, Ambassador, Head of the Luxembourg Delegation to the Intergovernmental Conference; HER MAJESTY THE QUEEN OF THE NETHERLANDS: Mr Joseph LUNS, Minister for Foreign Affairs, Mr J. LINTHORST HOMAN, Head of the Netherlands Delegation to the Intergovernmental Conference; WHO, having exchanged their full powers, found in good and due form, have agreed as follows. By this Treaty, the HIGH CONTRACTING PARTIES establish among themselves a EUROPEAN COMMUNITY. The Community shall have as its task, by establishing a common market and an economic and monetary union and by implementing common policies or activities referred to in Articles 3 and 4, to promote throughout the Community a harmonious, balanced and sustainable development of economic activities, a high level of employment and of social protection, equality between men and women, sustainable and non-inflationary growth, a high degree of competitiveness and convergence of economic performance, a high level of protection and improvement of the quality of the environment, the raising of the standard of living and quality of life, and economic and social cohesion and solidarity among Member States. For the purposes set out in Article 2, the activities of the Community shall include, as provided in this Treaty and in accordance with the timetable set out therein: (a) the prohibition, as between Member States, of customs duties and quantitative restrictions on the import and export of goods, and of all other measures having equivalent effect; (b) a common commercial policy; (c) an internal market characterised by the abolition, as between Member States, of obstacles to the free movement of goods, persons, services and capital; (d) measures concerning the entry and movement of persons as provided for in Title IV; (e) a common policy in the sphere of agriculture and fisheries; (f) a common policy in the sphere of transport; (g) a system ensuring that competition in the internal market is not distorted; (h) the approximation of the laws of Member States to the extent required for the functioning of the common market; (i) the promotion of coordination between employment policies of the Member States with a view to enhancing their effectiveness by developing a coordinated strategy for employment; (j) a policy in the social sphere comprising a European Social Fund; (k) the strengthening of economic and social cohesion; (l) a policy in the sphere of the environment; (m) the strengthening of the competitiveness of Community industry; (n) the promotion of research and technological development; (o) encouragement for the establishment and development of trans-European networks; (p) a contribution to the attainment of a high level o f health protection; (q) a contribution to education and training of quality and to the flowering of the cultures of the Member States; (r) a policy in the sphere of development cooperation; (s) the association of the overseas countries and territories in order to increase trade and promote jointly economic and social development; (t) a contribution to the strengthening of consumer protection; (u) measures in the spheres of energy, civil protection and tourism. In all the activities referred to in this Article, the Community shall aim to eliminate inequalities, and to promote equality, between men and women. For the purposes set out in Article 2, the activities of the Member States and the Community shall include, as provided in this Treaty and in accordance with the timetable set out therein, the adoption of an economic policy which is based on the close coordination of Member States’ economic policies, on the internal market and on the definition of common objectives, and conducted in accordance with the principle of an open market economy with free competition. Concurrently with the foregoing, and as provided in this Treaty and in accordance with the timetable and the procedures set out therein, these activities shall include the irrevocable fixing of exchange rates leading to the introduction of a single currency, the ECU, and the definition and conduct of a single monetary policy and exchange-rate policy the primary objective of both of which shall be to maintain price stability and, without prejudice to this objective, to support the general economic policies in the Community, in accordance with the principle of an open market economy with free competition. These activities of the Member States and the Community shall entail compliance with the following guiding principles: stable prices, sound public finances and monetary conditions and a sustainable balance of payments. The Community shall act within the limits of the powers conferred upon it by this Treaty and of the objectives assigned to it therein. In areas which do not fall within its exclusive competence, the Community shall take action, in accordance with the principle of subsidiarity, only if and insofar as the objectives of the proposed action cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale or effects of the proposed action, be better achieved by the Community. Any action by the Community shall not go beyond what is necessary to achieve the objectives of this Treaty. Environmental protection requirements must be integrated into the definition and implementation of the Community policies and activities referred to in Article 3, in particular with a view to promoting sustainable development. The tasks entrusted to the Community shall be carried out by the following institutions: – a EUROPEAN PARLIAMENT, – a COUNCIL, – a COMMISSION, – a COURT OF JUSTICE, – a COURT OF AUDITORS. Each institution shall act within the limits of the powers conferred upon it by this Treaty. The Council and the Commission shall be assisted by an Economic and Social Committee and a Committee of the Regions acting in an advisory capacity. A European System of Central Banks (hereinafter referred to as ‘ESCB’) and a European Central Bank (hereinafter referred to as ‘ECB’) shall be established in accordance with the procedures laid down in this Treaty; they shall act within the limits of the powers conferred upon them by this Treaty and by the Statute of the ESCB and of the ECB (hereinafter referred to as ‘Statute of the ESCB’) annexed thereto. A European Investment Bank is hereby established, which shall act within the limits of the powers conferred upon it by this Treaty and the Statute annexed thereto. Member States shall take all appropriate measures, whether general or particular, to ensure fulfilment of the obligations arising out of this Treaty or resulting from action taken by the institutions of the Community. They shall facilitate the achievement of the Community’s tasks. They shall abstain from any measure which could jeopardise the attainment of the objectives of this Treaty. Member States which intend to establish closer cooperation between themselves may be authorised, subject to Articles 43 and 44 of the Treaty on European Union, to make use of the institutions, procedures and mechanisms laid down by this Treaty, provided that the cooperation proposed: (a) does not concern areas which fall within the exclusive competence of the Community; (b) does not affect Community policies, actions or programmes; (c) does not concern the citizenship of the Union or discriminate between nationals of Member States; (d) remains within the limits of the powers conferred upon the Community by this Treaty; and (e) does not constitute a discrimination or a restriction of trade between Member States and does not distort the conditions of competition between the latter. The authorisation referred to in paragraph 1 shall be granted by the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament. If a member of the Council declares that, for important and stated reasons of national policy, it intends to oppose the granting of an authorisation by qualified majority, a vote shall not be taken. The Council may, acting by a qualified majority, request that the matter be referred to the Council, meeting in the composition of the Heads of State or Government, for decision by unanimity. Member States which intend to establish closer cooperation as referred to in paragraph 1 may address a request to the Commission, which may submit a proposal to the Council to that effect. In the event of the Commission not submitting a proposal, it shall inform the Member States concerned of the reasons for not doing so. 3. Any Member State which wishes to become a party to cooperation set up in accordance with this Article shall notify its intention to the Council and to the Commission, which shall give an opinion to the Council within three months of receipt of that notification. Within four months of the date of that notification, the Commission shall decide on it and on such specific arrangements as it may deem necessary. The acts and decisions necessary for the implementation of cooperation activities shall be subject to all the relevant provisions of this Treaty, save as otherwise provided for in this Article and in Articles 43 and 44 of the Treaty on European Uni This Article is without prejudice to the provisions of the Protocol integrating the Schengen acquis into the framework of the European Union. Within the scope of application of this Treaty, and without prejudice to any special provisions contained therein, any discrimination on grounds of nationality shall be prohibited. The Council, acting in accordance with the procedure referred to in Article 251, may adopt rules designed to prohibit such discrimination. Without prejudice to the other provisions of this Treaty and within the limits of the powers conferred by it upon the Community, the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, may take appropriate action to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The Community shall adopt measures with the aim of progressively establishing the internal market over a period expiring on 31 December 1992, in accordance with the provisions of this Article and of Articles 15, 26, 47(2), 49, 80, 93 and 95 and without prejudice to the other provisions of this Treaty. The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of this Treaty. The Council, acting by a qualified majority on a proposal from the Commission, shall determine the guidelines and conditions necessary to ensure balanced progress in all the sectors concerned. When drawing up its proposals with a view to achieving the objectives set out in Article 14, the Commission shall take into account the extent of the effort that certain economies showing differences in development will have to sustain during the period of establishment of the internal market and it may propose appropriate provisions. If these provisions take the form of derogations, they must be of a temporary nature and must cause the least possible disturbance to the functioning of the common market. Without prejudice to Articles 73, 86 and 87, and given the place occupied by services of general economic interest in the shared values of the Union as well as their role in promoting social and territorial cohesion, the Community and the Member States, each within their respective powers and within the scope of application of this Treaty, shall take care that such services operate on the basis of principles and conditions which enable them to fulfil their missions. Citizenship of the Union is hereby established. Every person holding the nationality of a Member State shall be a citizen of the Union. Citizenship of the Union shall complement and not replace national citizenship. Citizens of the Union shall enjoy the rights conferred by this Treaty and shall be subject to the duties imposed thereby. Every citizen of the Union shall have the right to move and reside freely within the territory of the Member States, subject to the limitations and conditions laid down in this Treaty and by the measures adopted to give it effect. The Council may adopt provisions with a view to facilitating the exercise of the rights referred to in paragraph 1; save as otherwise provided in this Treaty, the Council shall act in accordance with the procedure referred to in Article 251. The Council shall act unanimously throughout this procedure. Every citizen of the Union residing in a Member State of which he is not a national shall have the right to vote and to stand as a candidate at municipal elections in the Member State in which he resides, under the same conditions as nationals of that State. This right shall be exercised subject to detailed arrangements adopted by the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament; these arrangements may provide for derogations where warranted by problems specific to a Member State. Without prejudice to Article 190(4) and to the provisions adopted for its implementation, every citizen of the Union residing in a Member State of which he is not a national shall have the right to vote and to stand as a candidate in elections to the European Parliament in the Member State in which he resides, under the same conditions as nationals of that State. This right shall be exercised subject to detailed arrangements adopted by the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament; these arrangements may provide for derogations where warranted by problems specific to a Member State. Every citizen of the Union shall, in the territory of a third country in which the Member State of which he is a national is not represented, be entitled to protection by the diplomatic or consular authorities of any Member State, on the same conditions as the nationals of that State. Member States shall establish the necessary rules among themselves and start the international negotiations required to secure this protection. Every citizen of the Union shall have the right to petition the European Parliament in accordance with Article 194. Every citizen of the Union may apply to the Ombudsman established in accordance with Article 195. Every citizen of the Union may write to any of the institutions or bodies referred to in this Article or in Article 7 in one of the languages mentioned in Article 314 and have an answer in the same language. The Commission shall report to the European Parliament, to the Council and to the Economic and Social Committee every three years on the application of the provisions of this Part. This report shall take account of the development of the Union. On this basis, and without prejudice to the other provisions of this Treaty, the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, may adopt provisions to strengthen or to add to the rights laid down in this Part, which it shall recommend to the M ember States for adoption in accordance with their respective constitutional requirements. The Community shall be based upon a customs union which shall cover all trade in goods and which shall involve the prohibition between Member States of customs duties on imports and exports and of all charges having equivalent effect, and the adoption of a common customs tariff in their relations with third countries. The provisions of Article 25 and of Chapter 2 of this Title shall apply to products originating in Member States and to products coming from third countries which are in free circulation in Member States. Products coming from a third country shall be considered to be in free circulation in a Member State if the import formalities have been complied with and any customs duties or charges having equivalent effect which are payable have been levied in that Member State, and if they have not benefited from a total or partial drawback of such duties or charges. Customs duties on imports and exports and charges having equivalent effect shall be prohibited between Member States. This prohibition shall also apply to customs duties of a fiscal nature. Common Customs Tariff duties shall be fixed by the Council acting by a qualified majority on a proposal from the Commission. In carrying out the tasks entrusted to it under this Chapter the Commission shall be guided by: (a) the need to promote trade between Member States and third countries; (b) developments in conditions of competition within the Community insofar as they lead to an improvement in the competitive capacity of undertakings; (c) the requirements of the Community as regards the supply of raw materials and semi-finished goods; in this connection the Commission shall take care to avoid distorting conditions of competition between Member States in respect of finished goods; (d) the need to avoid serious disturbances in the economies of Member States and to ensure rational development of production and an expansion of consumption within the Community. Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between Member States. Quantitative restrictions on exports, and all measures having equivalent effect, shall be prohibited between Member States. The provisions of Articles 28 and 29 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States. Member States shall adjust any State monopolies of a commercial character so as to ensure that no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States. The provisions of this Article shall apply to any body through which a Member State, in law or in fact, either directly or indirectly supervises, determines or appreciably influences imports or exports between Member States. These provisions shall likewise apply to monopolies delegated by the State to others. Member States shall refrain from introducing any new measure which is contrary to the principles laid down in paragraph 1 or which restricts the scope of the Articles dealing with the prohibition of customs duties and quantitative restrictions between Member States. If a State monopoly of a commercial character has rules which are designed to make it easier to dispose of agricultural products or obtain for them the best return, steps should be taken in applying the rules contained in this Article to ensure equivalent safeguards for the employment and standard of living of the producers concerned. The common market shall extend to agriculture and trade in agricultural products. ‘Agricultural products’ means the products of the soil, of stockfarming and of fisheries and products of first-stage processing directly related to these products. Save as otherwise provided in Articles 33 to 38, the rules laid down for the establishment of the common market shall apply to agricultural products. The products subject to the provisions of Articles 33 to 38 are listed in Annex I to this Treaty. The operation and development of the common market for agricultural products must be accompanied by the establishment of a common agricultural policy. The objectives of the common agricultural policy shall be: (a) to increase agricultural productivity by promoting technical progress and by ensuring the rational development of agricultural production and the optimum utilisation of the factors of production, in particular labour; (b) thus to ensure a fair standard of living for the agricultural community, in particular by increasing the individual earnings of persons engaged in agriculture; (c) to stabilise markets; (d) to assure the availability of supplies; (e) to ensure that supplies reach consumers at reasonable prices. In working out the common agricultural policy and the special methods for its application, account shall be taken of: (a) the particular nature of agricultural activity, which results from the social structure of agriculture and from structural and natural disparities between the various agricultural regions; (b) the nee d to effect the appropriate adjustments by degrees; (c) the fact that in the Member States agriculture constitutes a sector closely linked with the economy as a whole. In order to attain the objectives set out in Article 33, a common organisation of agricultural markets shall be established. This organisation shall take one of the following forms, depending on the product concerned: (a) common rules on competition; (b) compulsory coordination of the various national market organisations; (c) a European market organisation. The common organisation established in accordance with paragraph 1 may include all measures required to attain the objectives set out in Article 33, in particular regulation of prices, aids for the production and marketing of the various products, storage and carryover arrangements and common machinery for stabilising imports or exports. The common organisation shall be limited to pursuit of the objectives set out in Article 33 and shall exclude any discrimination between producers or consumers within the Community. Any common price policy shall be based on common criteria and uniform methods of calculation. In order to enable the common organisation referred to in paragraph 1 to attain its objectives, one or more agricultural guidance and guarantee funds may be set up. To enable the objectives set out in Article 33 to be attained, provision may be made within the framework of the common agricultural policy for measures such as: (a) an effective coordination of efforts in the spheres of vocational training, of research and of the dissemination of agricultural knowledge; this may include joint financing of projects or institutions; (b) joint measures to promote consumption of certain products. The provisions of the Chapter relating to rules on competition shall apply to production of and trade in agricultural products only to the extent determined by the Council within the framework of Article 37(2) and (3) and in accordance with the procedure laid down therein, account being taken of the objectives set out in Article 33. The Council may, in particular, authorise the granting of aid: (a) for the protection of enterprises handicapped by structural or natural conditions; (b) within the framework of economic development programmes. In order to evolve the broad lines of a common agricultural policy, the Commission shall, immediately this Treaty enters into force, convene a conference of the Member States with a view to making a comparison of their agricultural policies, in particular by producing a statement of their resources and needs. Having taken into account the work of the Conference provided for in paragraph 1, after consulting the Economic and Social Committee and within two years of the entry into force of this Treaty, the Commission shall submit proposals for working out and implementing the common agricultural policy, including the replacement of the national organisations by one of the forms of common organisation provided for in Article 34(1), and for implementing the measures specified in this Title. These proposals shall take account of the interdependence of the agricultural matters mentioned in this Title. The Council shall, on a proposal from the Commission and after consulting the European Parliament, acting by a qualified majority, make regulations, issue directives, or take decisions, without prejudice to any recommendations it may also make. The Council may, acting by a qualified majority and in accordance with paragraph 2, replace the national market organisations by the common organisation provided for in Article 34(1) if: (a) the common organisation offers Member States which are opposed to this measure and which have an organisation of their own for the production in question equivalent safeguards for the employment and standard of living of the producers concerned, account being taken of the adjustments that will be possible and the specialisation that will be needed with the passage of time; (b) such an organisation ensures conditions for trade within the Community similar to those existing in a national market. If a common organisation for certain raw materials is established before a common organisation exists for the corresponding processed products, such raw materials as are used for processed products intended for export to third countries may be imported from outside the Community. Where in a Member State a product is subject to a national market organisation or to internal rules having equivalent effect which affect the competitive position of similar production in another Member State, a countervailing charge shall be applied by Member States to imports of this product coming from the Member State where such organisation or rules exist, unless that State applies a countervailing charge on export. The Commission shall fix the amount of these charges at the level required to redress the balance; it may also authorise other measures, the conditions and details of which it shall determine. Freedom of movement for workers shall be secured within the Community. Such freedom of movement shall entail the abolition of any discrimination based on nationality between workers of the Member States as regards employment, remuneration and other conditions of work and employment. It shall entail the right, subject to limitations justified on grounds of public policy, public security or public health: (a) to accept offers of employment actually made; (b) to move freely within the territory of Member States for this purpose; (c) to stay in a Member State for the purpose of employment in accordance with the provisions governing the employment of nationals of that State laid down by law, regulation or administrative action; (d) to remain in the territory of a Member State after having been employed in that State, subject to conditions which shall be embodied in implementing regulations to be drawn up by the Commission. The provisions of this Article shall not apply to employment in the public service. The Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, issue directives or make regulations setting out the measures required to bring about freedom of movement for workers, as defined in Article 39, in particular: (a) by ensuring close cooperation between national employment services; (b) by abolishing those administrative procedures and practices and those qualifying periods in respect of eligibility for available employment, whether resulting from national legislation or from agreements previously concluded between Member States, the maintenance of which would form an obstacle to liberalisation of the movement of workers; (c) by abolishing all such qualifying periods and other restrictions provided for either under national legislation or under agreements previously concluded between Member States as imposed on workers of other Member States conditions regarding the free choice of employment other than those imposed on workers of the State concerned; (d) by setting up appropriate machinery to bring offers of employment into touch with applications for employment and to facilitate the achievement of a balance between supply and demand in the employment market in such a way as to avoid serious threats to the standard of living and level of employment in the various regions and industries. Member States shall, within the framework of a joint programme, encourage the exchange of young workers. The Council shall, acting in accordance with the procedure referred to in Article 251, adopt such measures in the field of social security as are necessary to provide freedom of movement for workers; to this end, it shall make arrangements to secure for migrant workers and their dependants: (a) aggregation, for the purpose of acquiring and retaining the right to benefit and of calculating the amount of benefit, of all periods taken into account under the laws of the several countries; (b) payment of benefits to persons resident in the territories of Member States. The Council shall act unanimously throughout the procedure referred to in Article 251. Within the framework of the provisions set out below, restrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited. Such prohibition shall also apply to restrictions on the setting-up of agencies, branches or subsidiaries by nationals of any Member State established in the territory of any Member State. Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of the second paragraph of Article 48, under the conditions laid down for its own nationals by the law of the country where such establishment is effected, subject to the provisions of the Chapter relating to capital. In order to attain freedom of establishment as regards a particular activity, the Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, shall act by means of directives. The Council and the Commission shall carry out the duties devolving upon them under the preceding provisions, in particular: (a) by according, as a general rule, priority treatment to activities where freedom of establishment makes a particularly valuable contribution to the development of production and trade; (b) by ensuring close cooperation between the competent authorities in the Member States in order to ascertain the particular situation within the Community of the various activities concerned; (c) by abolishing those administrative procedures and practices, whether resulting from national legislation or from agreements previously concluded between Member States, the maintenance of which would form an obstacle to freedom of establishment; (d) by ensuring that workers of one Member State employed in the territory of another Member State may remain in that territory for the purpose of taking up activities therein as self-employed persons, where they satisfy the conditions which they would be required to satisfy if they were entering that State at the time when they intended to take up such activities; (e) by enabling a national of one Member State to acquire and use land and buildings situated in the territory of another Member State, insofar as this does not conflict with the principles laid down in Article 33(2); (f) by effecting the progressive abolition of restrictions on freedom of establishment in every branch of activity under consideration, both as regards the conditions for setting up agencies, branches or subsidiaries in the territory of a Member State and as regards the subsidiaries in the territory of a Member State and as regards the conditions governing the entry of personnel belonging to the main establishment into managerial or supervisory posts in such agencies, branches or subsidiaries; (g) by coordinating to the necessary extent the safeguards which, for the protection of the interests of members and other, are required by Member States of companies or firms within the meaning of the second paragraph of Article 48 with a view to making such safeguards equivalent throughout the Community; (h) by satisfying themselves that the conditions of establishment are not distorted by aids granted by Member States. The provisions of this Chapter shall not apply, so far as any given Member State is concerned, to activities which in that State are connected, even occasionally, with the exercise of official authority. The Council may, acting by a qualified majority on a proposal from the Commission, rule that the provisions of this Chapter shall not apply to certain activities. The provisions of this Chapter and measures taken in pursuance thereof shall not prejudice the applicability of provisions laid down by law, regulation or administrative action providing for special treatment for foreign nationals on grounds of public policy, public security or public health. The Council shall, acting in accordance with the procedure referred to in Article 251, issue directives for the coordination of the abovementioned provisions. In order to make it easier for persons to take up and pursue activities as self-employed persons, the Council shall, acting in accordance with the procedure referred to in Article 251, issue directives for the mutual recognition of diplomas, certificates and other evidence of formal qualifications. For the same purpose, the Council shall, acting in accordance with the procedure referred to in Article 251, issue directives for the coordination of the provisions laid down by law, regulation or administrative action in Member States concerning the taking-up and pursuit of activities as self-employed persons. The Council, acting unanimously throughout the procedure referred to in Article 251, shall decide on directives the implementation of which involves in at least one Member State amendment of the existing principles laid down by law governing the professions with respect to training and conditions of access for natural persons. In other cases the Council shall act by qualified majority. In the case of the medical and allied and pharmaceutical professions, the progressive abolition of restrictions shall be dependent upon coordination of the conditions for their exercise in the various Member States. Companies or firms formed in accordance with the law of a Member State and having their registered office, central administration or principal place of business within the Community shall, for the purposes of this Chapter, be treated in the same way as natural persons who are nationals of Member States. ‘Companies or firms’ means companies or firms constituted under civil or commercial law, including cooperative societies, and other legal persons governed by public or private law, save for those which are non-profit-making. Within the framework of the provisions set out below, restrictions on freedom to provide services within the Community shall be prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended. The Council may, acting by a qualified majority on a proposal from the Commission, extend the provisions of the Chapter to nationals of a third country who provide services and who are established within the Community. Services shall be considered to be ‘services’ within the meaning of this Treaty where they are normally provided for remuneration, insofar as they are not governed by the provisions relating to freedom of movement for goods, capital and persons. ‘Services’ shall in particular include: (a) activities of an industrial character; (b) activities of a commercial character; (c) activities of craftsmen; (d) activities of the professions. Without prejudice to the provisions of the Chapter relating to the right of establishment, the person providing a service may, in order to do so, temporarily pursue his activity in the State where the service is provided, under the same conditions as are imposed by that State on its own nationals. Freedom to provide services in the field of transport shall be governed by the provisions of the Title relating to transport. The liberalisation of banking and insurance services connected with movements of capital shall be effected in step with the liberalisation of movement of capital. In order to achieve the liberalisation of a specific service, the Council shall, on a proposal from the Commission and after consulting the Economic and Social Committee and the European Parliament, issue directives acting by a qualified majority. As regards the directives referred to in paragraph 1, priority shall as a general rule be given to those services which directly affect production costs or the liberalisation of which helps to promote trade in goods. The Member States declare their readiness to undertake the liberalisation of services beyond the extent required by the directives issued pursuant to Article 52(1), if their general economic situation and the situation of the economic sector concerned so permit. To this end, the Commission shall make recommendations to the Member States concerned. As long as restrictions on freedom to provide services have not been abolished, each Member State shall apply such restrictions without distinction on grounds of nationality or residence to all persons providing services within the meaning of the first paragraph of Article 49. The provisions of Articles 45 to 48 shall apply to the matters covered by this Chapter. Within the framework of the provisions set out in this Chapter, all restrictions on the movement of capital between Member States and between Member States and third countries shall be prohibited. Within the framework of the provisions set out in this Chapter, all restrictions on payments between Member States and between Member States and third countries shall be prohibited. The provisions of Article 56 shall be without prejudice to the application to third countries of any restrictions which exist on 31 December 1993 under national or Community law adopted in respect of the movement of capital to or from third countries involving direct investment – including in real estate – establishment, the provision of financial services or the admission of securities to capital markets. Whilst endeavouring to achieve the objective of free movement of capital between Member States and third countries to the greatest extent possible and without prejudice to the other Chapters of this Treaty, the Council may, acting by a qualified majority on a proposal from the Commission, adopt measures on the movement of capital to or from third countries involving direct investment – including investment in real estate – establishment, the provision of financial services or the admission of securities to capital markets. Unanimity shall be required for measures under this paragraph which constitute a step back in Community law as regards the liberalisation of the movement of capital to or from third countries. The provisions of Article 56 shall be without prejudice to the right of Member States: (a) to apply the relevant provisions of their tax law which distinguish between taxpayers who are not in the same situation with regard to their place of residence or with regard to the place where their capital is invested; (b) to take all requisite measures to prevent infringements of national law and regulations, in particular in the field of taxation and the prudential supervision of financial institutions, or to lay down procedures for the declaration of capital movements for purposes of administrative or s tatistical information, or to take measures which are justified on grounds of public policy or public security. The provisions of this Chapter shall be without prejudice to the applicability of restrictions on the right of establishment which are compatible with this Treaty. The measures and procedures referred to in paragraphs 1 and 2 shall not constitute a means of arbitrary discrimination or a disguised restriction on the free movement of capital and payments as defined in Article 56. Where, in exceptional circumstances, movements of capital to or from third countries cause, or threaten to cause, serious difficulties for the operation of economic and monetary union, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the ECB, may take safeguard measures with regard to third countries for a period not exceeding six months if such measures are strictly necessary. If, in the cases envisaged in Article 301, action by the Community is deemed necessary, the Council may, in accordance with the procedure provided for in Article 301, take the necessary urgent measures on the movement of capital and on payments as regards the third countries concerned. Without prejudice to Article 297 and as long as the Council has not taken measures pursuant to paragraph 1, a Member State may, for serious political reasons and on grounds of urgency, take unilateral measures against a third country with regard to capital movements and payments. The Commission and the other Member States shall be informed of such measures by the date of their entry into force at the latest. The Council may, acting by a qualified majority on a proposal from the Commission, decide that the Member State concerned shall amend or abolish such measures. The President of the Council shall inform the European Parliament of any such decision taken by the Council. In order to establish progressively an area of freedom, security and justice, the Council shall adopt: (a) within a period of five years after the entry into force of the Treaty of Amsterdam, measures aimed at ensuring the free movement of persons in accordance with Article 14, in conjunction with directly related flanking measures with respect to external border controls, asylum and immigration, in accordance with the provisions of Article 62(2) and (3) and Article 63(1)(a) and (2)(a), and measures to prevent and combat crime in accordance with the provisions of Article 31(e) of the Treaty on European Union; (b) other measures in the fields of asylum, immigration and safeguarding the rights of nationals of third countries, in accordance with the provisions of Article 63; (c) measures in the field of judicial cooperation in civil matters as provided for in Article 65; (d) appropriate measures to encourage and strengthen administrative cooperation, as provided for in Article 66; (e) measures in the field of police and judicial cooperation in criminal matters aimed at a high level of security by preventing and combating crime within the Union in accordance with the provisions of the Treaty on European Union. The Council, acting in accordance with the procedure referred to in Article 67, shall, within a period of five years after the entry into force of the Treaty of Amsterdam, adopt: (1) measures with a view to ensuring, in compliance with Article 14, the absence of any controls on persons, be they citizens of the Union or nationals of third countries, when crossing internal borders; (2) measures on the crossing of the external borders of the Member States which shall establish: (a) standards and procedures to be followed by Member States in carrying out checks on persons at such borders; (b) rules on visas for intended stays of no more than three months, including: (i) the list of third countries whose nationals must be in possession of visas when crossing the external borders and those whose nationals are exempt from that requirement; (ii) the procedures and conditions for issuing visas by Member States; (iii) a uniform format for visas; (iv) rules on a uniform visa; (3) measures setting out the conditions under which nationals of third countries shall have the freedom to travel within the territory of the Member States during a period of no more than three months. The Council, acting in accordance with the procedure referred to in Article 67, shall, within a period of five years after the entry into force of the Treaty of Amsterdam, adopt: (1) measures on asylum, in accordance with the Geneva Convention of 28 July 1951 and the Protocol of 31 January 1967 relating to the status of refugees and other relevant treaties, within the following areas: (a) criteria and mechanisms for determining which Member State is responsible for considering an application for asylum submitted by a national of a third country in one of the Member States, (b) minimum standards on the reception of asylum seekers in Member States, (c) minimum standards with respect to the qualification of nationals of third countries as refugees, (d) minimum standards on procedures in Member States for granting or withdrawing refugee status; (2) measures on refugees and displaced persons within the following areas: (a) minimum standards for giving temporary protection to displaced persons from third countries who cannot return to their country of origin and for persons who otherwise need international protection, (b) promoting a balance of effort between Member States in receiving and bearing the consequences of receiving refugees and displaced persons; (3) measures on immigration policy within the following areas: (a) conditions of entry and residence, and standards on procedures for the issue by Member States of long term visas and residence permits, including those for the purpose of family reunion, (b) illegal immigration and illegal residence, including repatriation of illegal residents; (4) measures defining the rights and conditions under which nationals of third countries who are legally resident in a Member State may reside in other Member States. Measures adopted by the Council pursuant to points 3 and 4 shall not prevent any Member State from maintaining or introducing in the areas concerned national provisions which are compatible with this Treaty and with international agreements. Measures to be adopted pursuant to points 2(b), 3(a) and 4 shall not be subject to the five year period referred to above. This Title shall not affect the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security. In the event of one or more Member States being confronted with an emergency situation characterised by a sudden inflow of nationals of third countries and without prejudice to paragraph 1, the Council may, acting by qualified majority on a proposal from the Commission, adopt provisional measures of a duration not exceeding six months for the benefit of the Member States concerned. Measures in the field of judicial cooperation in civil matters having cross-border implications, to be taken in accordance with Article 67 and insofar as necessary for the proper functioning of the internal market, shall include: (a) improving and simplifying: – the system for cross-border service of judicial and extrajudicial documents; – cooperation in the taking of evidence; – the recognition and enforcement of decisions in civil and commercial cases, including decisions in extrajudicial cases; (b) promoting the compatibility of the rules applicable in the Member States concerning the conflict of laws and of jurisdiction; (c) eliminating obstacles to the good functioning of civil proceedings, if necessary by promoting the compatibility of the rules on civil procedure applicable in the Member States. The Council, acting in accordance with the procedure referred to in Article 67, shall take measures to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this Title, as well as between those departments and the Commission. During a transitional period of five years following the entry into force of the Treaty of Amsterdam, the Council shall act unanimously on a proposal from the Commission or on the initiative of a Member State and after consulting the European Parliament. After this period of five years: – the Council shall act on proposals from the Commission; the Commission shall examine any request made by a Member State that it submit a proposal to the Council; – the Council, acting unanimously after consulting the European Parliament, shall take a decision with a view to providing for all or parts of the areas covered by this Title to be governed by the procedure referred to in Article 251 and adapting the provisions relating to the powers of the Court of Justice. By derogation from paragraphs 1 and 2, measures referred to in Article 62(2)(b) (i) and (iii) shall, from the entry into force of the Treaty of Amsterdam, be adopted by the Council acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament. By derogation from paragraph 2, measures referred to in Article 62(2)(b) (ii) and (iv) shall, after a period of five years following the entry into force of the Treaty of Amsterdam, be adopted by the Council acting in accordance with the procedure referred to in Article 251. Article 234 shall apply to this Title under the following circumstances and conditions: where a question on the interpretation of this Title or on the validity or interpretation of acts of the institutions of the Community based on this Title is raised in a case pending before a court or a tribunal of a Member State against whose decisions there is no judicial remedy under national law, that court or tribunal shall, if it considers that a decision on the question is necessary to enable it to give judgment, request the Court of Justice to give a ruling thereon. In any event, the Court of Justice shall not have jurisdiction to rule on any measure or decision taken pursuant to Article 62(1) relating to the maintenance of law and order and the safeguarding of internal security. The Council, the Commission or a Member State may request the Court of Justice to give a ruling on a question of interpretation of this Title or of acts of the institutions of the Community based on this Title. The ruling given by the Court of Justice in response to such a request shall not apply to judgments of courts or tribunals of the Member States which have become res judicata. The application of this Title shall be subject to the provisions of the Protocol on the position of the United Kingdom and Ireland and to the Protocol on the position of Denmark and without prejudice to the Protocol on the application of certain aspects of Article 14 of the Treaty establishing the European Community to the United Kingdom and to Ireland. The objectives of this Treaty shall, in matters governed by this Title, be pursued by Member States within the framework of a common transport policy. For the purpose of implementing Article 70, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, lay down: (a) common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States; (b) the conditions under which non-resident carriers may operate transport services within a Member State; (c) measures to improve transport safety; (d) any other appropriate provisions. By way of derogation from the procedure provided for in paragraph 1, where the application of provisions concerning the principles of the regulatory system for transport would be liable to have a serious effect on the standard of living and on employment in certain areas and on the operation of transport facilities, they shall be laid down by the Council acting unanimously on a proposal from the Commission, after consulting the European Parliament and the Economic and Social Committee. In so doing, the Council shall take into account the need for adaptation to the economic development which will result from establishing the common market. Until the provisions referred to in Article 71(1) have been laid down, no Member State may, without the unanimous approval of the Council, make the various provisions governing the subject on 1 January 1958 or, for acceding States, the date of their accession less favourable in their direct or indirect effect on carriers of other Member States as compared with carriers who are nationals of that State. Aids shall be compatible with this Treaty if they meet the need s of coordination of transport or if they represent reimbursement for the discharge of certain obligations inherent in the concept of a public service. Any measures taken within the framework of this Treaty in respect of transport rates and conditions shall take account of the economic circumstances of carriers. In the case of transport within the Community, discrimination which takes the form of carriers charging different rates and imposing different conditions for the carriage of the same goods over the same transport links on grounds of the country of origin or of destination of the goods in question shall be abolished. Paragraph 1 shall not prevent the Council from adopting other measures in pursuance of Article 71(1). The Council shall, acting by a qualified majority on a proposal from the Commission and after consulting the Economic and Social Committee, lay down rules for implementing the provisions of paragraph 1. The Council may in particular lay down the provisions needed to enable the institutions of the Community to secure compliance with the rule laid down in paragraph 1 and to ensure that users benefit from it to the full. The Commission shall, acting on its own initiative or on application by a Member State, investigate any cases of discrimination falling within paragraph 1 and, after consulting any Member State concerned, shall take the necessary decisions within the framework of the rules laid down in accordance with the provisions of paragraph 3. The imposition by a Member State, in respect of transport operations carried out within the Community, of rates and conditions involving any element of support or protection in the interest of one or more particular undertakings or industries shall be prohibited, unless authorised by the Commission. The Commission shall, acting on its own initiative or on application by a Member State, examine the rates and conditions referred to in paragraph 1, taking account in particular of the requirements of an appropriate regional economic policy, the needs of underdeveloped areas and the problems of areas seriously affected by political circumstances on the one hand, and of the effects of such rates and conditions on competition between the different modes of transport on the other. After consulting each Member State concerned, the Commission shall take the necessary decisions. The prohibition provided for in paragraph 1 shall not apply to tariffs fixed to meet competition. Charges or dues in respect of the crossing of frontiers which are charged by a carrier in addition to the transport rates shall not exceed a reasonable level after taking the costs actually incurred thereby into account. Member States shall endeavour to reduce these costs progressively. The Commission may make recommendations to Member States for the application of this Article. The provisions of this Title shall not form an obstacle to the application of measures taken in the Federal Republic of Germany to the extent that such measures are required in order to compensate for the economic disadvantages caused by the division of Germany to the economy of certain areas of the Federal Republic affected by that division. An Advisory Committee consisting of experts designated by the governments of Member States shall be attached to the Commission. The Commission, whenever it considers it desirable, shall consult the Committee on transport matters without prejudice to the powers of the Economic and Social Committee. The provisions of this Title shall apply to transport by rail, road and inland waterway. The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport. The procedural provisions of Article 71 shall apply. The following shall be prohibited as incompatible with the common market: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the common market, and in particular those which: (a) directly or indirectly fix purchase or selling prices or any other trading conditions; (b) limit or control production, markets, technical development, or investment; (c) share markets or sources of supply; (d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; (e) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts. Any agreements or decisions prohibited pursuant to this Article shall be automatically void. The provisions of paragraph 1 may, however, be declared inapplicable in the case of: – any agreement or category of agreements between undertakings; – any decision or category of decisions by associations of undertakings; – any concerted practice or category of concerted practices, which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not: (a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives; (b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question. Any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it shall be prohibited as incompatible with the common market insofar as it may affect trade between Member States. Such abuse may, in particular, consist in: (a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; (b) limiting production, markets or technical develop ment to the prejudice of consumers; (c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; (d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts. The appropriate regulations or directives to give effect to the principles set out in Articles 81 and 82 shall be laid down by the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament. The regulations or directives referred to in paragraph 1 shall be designed in particular: (a) to ensure compliance with the prohibitions laid down in Article 81(1) and in Article 82 by making provision for fines and periodic penalty payments; (b) to lay down detailed rules for the application of Article 81(3), taking into account the need to ensure effective supervision on the one hand, and to simplify administration to the greatest possible extent on the other; (c) to define, if need be, in the various branches of the economy, the scope of the provisions of Articles 81 and 82; (d) to define the respective functions of the Commission and of the Court of Justice in applying the provisions laid down in this paragraph; (e) to determine the relationship between national laws and the provisions contained in this Section or adopted pursuant to this Article. Until the entry into force of the provisions adopted in pursuance of Article 83, the authorities in Member States shall rule on the admissibility of agreements, decisions and concerted practices and on abuse of a dominant position in the common market in accordance with the law of their country and with the provisions of Article 81, in particular paragraph 3, and of Article 82. Without prejudice to Article 84, the Commission shall ensure the application of the principles laid down in Articles 81 and 82. On application by a Member State or on its own initiative, and in cooperation with the competent authorities in the Member States, who shall give it their assistance, the Commission shall investigate cases of suspected infringement of these principles. If it finds that there has been an infringement, it shall propose appropriate measures to bring it to an end. If the infringement is not brought to an end, the Commission shall record such infringement of the principles in a reasoned decision. The Commission may publish its decision and authorise Member States to take the measures, the conditions and details of which it shall determine, needed to remedy the situation. In the case of public undertakings and undertakings to which Member States grant special or exclusive rights, Member States shall neither enact nor maintain in force any measure contrary to the rules contained in this Treaty, in particular to those rules provided for in Article 12 and Articles 81 to 89. Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Treaty, in particular to the rules on competition, insofar as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interests of the Community. The Commission shall ensure the application of the provisions of this Article and shall, where necessary, address appropriate directives or decisions to Member States. Save as otherwise provided in this Treaty, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, insofar as it affects trade between Member States, be incompatible with the common market. The following shall be compatible with the common market: (a) aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned; (b) aid to make good the damage caused by natural disasters or exceptional occurrences; (c) aid granted to the economy of certain areas of the Federal Republic of Germany affected by the division of Germany, insofar as such aid is required in order to compensate for the economic disadvantages caused by that division. The following may be considered to be compatible with the common market: (a) aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment; (b) aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of a Member State; (c) aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest; (d) aid to promote culture and heritage conservation where such aid does not affect trading conditions and competition in the Community to an extent that is contrary to the common interest; (e) such other categories of aid as may be specified by decision of the Council acting by a qualified majority on a proposal from the Commission. The Commission shall, in cooperation with Member States, keep under constant review all systems of aid existing in those States. It shall propose to the latter any appropriate measures required by the progressive development or by the functioning of the common market. If, after giving notice to the parties concerned to submit their comments, the Commission finds that aid granted by a State or through State resources is not compatible with the common market having regard to Article 87, or that such aid is being misused, it shall decide that the State concerned shall abolish or alter such aid within a period of time to be determined by the Commission. If the State concerned does not comply with this decision within the prescribed time, the Commission or any other interested State may, in derogation from the provisions of Articles 226 and 227, refer the matter to the Court of Justice direct. On application by a Member State, the Council may, acting unanimously, decide that aid which that State is granting or intends to grant shall be considered to be compatible with the common market, in derogation from the provisions of Article 87 or from the regulations provided for in Article 89, if suc h a decision is justified by exceptional circumstances. If, as regards the aid in question, the Commission has already initiated the procedure provided for in the first subparagraph of this paragraph, the fact that the State concerned has made its application to the Council shall have the effect of suspending that procedure until the Council has made its attitude known. If, however, the Council has not made its attitude known within three months of the said application being made, the Commission shall give its decision on the case. The Commission shall be informed, in sufficient time to enable it to submit its comments, of any plans to grant or alter aid. If it considers that any such plan is not compatible with the common market having regard to Article 87, it shall without delay initiate the procedure provided for in paragraph 2. The Member State concerned shall not put its proposed measures into effect until this procedure has resulted in a final decision. The Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, may make any appropriate regulations for the application of Articles 87 and 88 and may in particular determine the conditions in which Article 88(3) shall apply and the categories of aid exempted from this procedure. No Member State shall impose, directly or indirectly, on the products of other Member States any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products. Furthermore, no Member State shall impose on the products of other Member States any internal taxation of such a nature as to afford indirect protection to other products. Where products are exported to the territory of any Member State, any repayment of internal taxation shall not exceed the internal taxation imposed on them whether directly or indirectly. In the case of charges other than turnover taxes, excise duties and other forms of indirect taxation, remissions and repayments in respect of exports to other Member States may not be granted and countervailing charges in respect of imports from Member States may not be imposed unless the measures contemplated have been previously approved for a limited period by the Council acting by a qualified majority on a proposal from the Commission. The Council shall, acting unanimously on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, adopt provisions for the harmonisation of legislation concerning turnover taxes, excise duties and other forms of indirect taxation to the extent that such harmonisation is necessary to ensure the establishment and the functioning of the internal market within the time-limit laid down in Article 14. The Council shall, acting unanimously on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, issue directives for the approximation of such laws, regulations or administrative provisions of the Member States as directly affect the establishment or functioning of the common market. By way of derogation from Article 94 and save where otherwise provided in this Treaty, the following provisions shall apply for the achievement of the objectives set out in Article 14. The Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, adopt the measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the establishment and functioning of the internal market. Paragraph 1 shall not apply to fiscal provisions, to those relating to the free movement of persons nor to those relating to the rights and interests of employed persons. The Commission, in its proposals envisaged in paragraph 1 concerning health, safety, environmental protection and consumer protection, will take as a base a high level of protection, taking account in particular of any new development based on scientific facts. Within their respective powers, the European Parliament and the Council will also seek to achieve this objective. If, after the adoption by the Council or by the Commission of a harmonisation measure, a Member State deems it necessary to maintain national provisions on grounds of major needs referred to in Article 30, or relating to the protection of the environment or the working environment, it shall notify the Commission of these provisions as well as the grounds for maintaining them. Moreover, without prejudice to paragraph 4, if, after the adoption by the Council or by the Commission of a harmonisation measure, a Member State deems it necessary to introduce national provisions based on new scientific evidence relating to the protection of the environment or the working environment on grounds of a problem specific to that Member State arising after the adoption of the harmonisation measure, it shall notify the Commission of the envisaged provisions as well as the grounds for introducing them. The Commission shall, within six months of the notifications as referred to in paragraphs 4 and 5, approve or reject the national provisions involved after having verified whether or not they are a means of arbitrary discrimination or a disguised restriction on trade between Member States and whether or not they shall constitute an obstacle to the functioning of the internal market. In the absence of a decision by the Commission within this period the national provisions referred to in paragraphs 4 and 5 shall be deemed to have been approved. When justified by the complexity of the matter and in the absence of danger for human health, the Commission may notify the Member State concerned that the period referred to in this paragraph may be extended for a further period of up to six months. When, pursuant to paragraph 6, a Member State is authorised to maintain or introduce national provisions derogating from a harmonisation measure, the Commission shall immediately examine whether to propose an adaptation to that measure. When a Member State raises a specific problem on public health in a field which has been the subject of prior harmonisation measures, it shall bring it to the attention of the Commission which shall immediately examine whether to propose appropriate measures to the Council. By way of derogation from the procedure laid down i n Articles 226 and 227, the Commission and any Member State may bring the matter directly before the Court of Justice if it considers that another Member State is making improper use of the powers provided for in this Article. The harmonisation measures referred to above shall, in appropriate cases, include a safeguard clause authorising the Member States to take, for one or more of the non-economic reasons referred to in Article 30, provisional measures subject to a Community control procedure. Where the Commission finds that a difference between the provisions laid down by law, regulation or administrative action in Member States is distorting the conditions of competition in the common market and that the resultant distortion needs to be eliminated, it shall consult the Member States concerned. If such consultation does not result in an agreement eliminating the distortion in question, the Council shall, on a proposal from the Commission, acting by a qualified majority, issue the necessary directives. The Commission and the Council may take any other appropriate measures provided for in this Treaty. Where there is a reason to fear that the adoption or amendment of a provision laid down by law, regulation or administrative action may cause distortion within the meaning of Article 96, a Member State desiring to proceed therewith shall consult the Commission. After consulting the Member States, the Commission shall recommend to the States concerned such measures as may be appropriate to avoid the distortion in question. If a State desiring to introduce or amend its own provisions does not comply with the recommendation addressed to it by the Commission, other Member States shall not be required, in pursuance of Article 96, to amend their own provisions in order to eliminate such distortion. If the Member State which has ignored the recommendation of the Commission causes distortion detrimental only to itself, the provisions of Article 96 shall not apply. Member States shall conduct their economic policies with a view to contributing to the achievement of the objectives of the Community, as defined in Article 2, and in the context of the broad guidelines referred to in Article 99(2). The Member States and the Community shall act in accordance with the principle of an open market economy with free competition, favouring an efficient allocation of resources, and in compliance with the principles set out in Article 4. Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council, in accordance with the provisions of Article 98. The Council shall, acting by a qualified majority on a recommendation from the Commission, formulate a draft for the broad guidelines of the economic policies of the Member States and of the Community, and shall report its findings to the European Council. The European Council shall, acting on the basis of the report from the Council, discuss a conclusion on the broad guidelines of the economic policies of the Member States and of the Community. On the basis of this conclusion, the Council shall, acting by a qualified majority, adopt a recommendation setting out these broad guidelines. The Council shall inform the European Parliament of its recommendation. In order to ensure closer coordination of economic policies and sustained convergence of the economic performances of the Member States, the Council shall, on the basis of reports submitted by the Commission, monitor economic developments in each of the Member States and in the Community as well as the consistency of economic policies with the broad guidelines referred to in paragraph 2, and regularly carry out an overall assessment. For the purpose of this multilateral surveillance, Member States shall forward information to the Commission about important measures taken by them in the field of their economic policy and such other information as they deem necessary. Where it is established, under the procedure referred to in paragraph 3, that the economic policies of a Member State are not consistent with the broad guidelines referred to in paragraph 2 or that they risk jeopardising the proper functioning of economic and monetary union, the Council may, acting by a qualified majority on a recommendation from the Commission, make the necessary recommendations to the Member State concerned. The Council may, acting by a qualified majority on a proposal from the Commission, decide to make its recommendations public. The President of the Council and the Commission shall report to the European Parliament on the results of multilateral surveillance. The President of the Council may be invited to appear before the competent committee of the European Parliament if the Council has made its recommendations public. The Council, acting in accordance with the procedure referred to in Article 252, may adopt detailed rules for the multilateral surveillance procedure referred to in paragraphs 3 and 4 of this Article. Without prejudice to any other procedures provided for in this Treaty, the Council may, acting unanimously on a proposal from the Commission, decide upon the measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products. Where a Member State is in difficulties or is seriously threatened with severe difficulties caused by exceptional occurrences beyond its control, the Council may, acting unanimously on a proposal from the Commission, grant, under certain conditions, Community financial assistance to the Member State concerned. Where the severe difficulties are caused by natural disasters, the Council shall act by qualified majority. The President of the Council shall inform the European Parliament of the decision taken. Overdraft facilities or any other type of credit facility with the ECB or with the central banks of the Member States (hereinafter referred to as ‘national central banks’) in favour of Community institutions or bodies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of debt instruments. Paragraph 1 shall not apply to publicly owned credit institutions which, in the context of the supply of reserves by central banks, shall be given the same treatment by national central banks and the ECB as private credit institutions. Any measure, not based on prudential considerations, establishing privileged access by Community institutions or bodies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States to financial institutions, shall be prohibited. The Council, acting in accordance with the procedure referred to in Article 252, shall, before 1 January 1994, specify definitions for the application of the prohibition referred to in paragraph 1. The Community shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project. A Member State shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of another Member State, without prejudice to mutual financial guarantees for the joint execution of a specific project. If necessary, the Council, acting in accordance with the procedure referred to in Article 252, may specify definitions for the application of the prohibition referred to in Article 101 and in this Article. Member States shall avoid excessive government deficits. The Commission shall monitor the development of the budgetary situation and of the stock of government debt in the Member States with a view to identifying gross errors. In particular it shall examine compliance with budgetary discipline on the basis of the following two criteria: (a) whether the ratio of the planned or actual government deficit to gross domestic product exceeds a reference value, unless: – either the ratio has declined substantially and continuously and reached a level that comes close to the reference value; – or, alternatively, the excess over the reference value is only exceptional and temporary and the ratio remains close to the reference value; (b) whether the ratio of government debt to gross domestic product exceeds a reference value, unless the ratio is sufficiently diminishing and approaching the reference value at a satisfactory pace. The reference values are specified in the Protocol on the excessive deficit procedure annexed to this Treaty. If a Member State does not fulfil the requirements under one or both of these criteria, the Commission shall prepare a report. The report of the Commission shall also take into account whether the government deficit exceeds government investment expenditure and take into account all other relevant factors, including the medium-term economic and budgetary position of the Member State. The Commission may also prepare a report if, notwithstanding the fulfilment of the requirements under the criteria, it is of the opinion that there is a risk of an excessive deficit in a Member State. The Committee provided for in Article 114 shall formulate an opinion on the report of the Commission. If the Commission considers that an excessive deficit in a Member State exists or may occur, the Commission shall address an opinion to the Council. The Council shall, acting by a qualified majority on a recommendation from the Commission, and having considered any observations which the Member State concerned may wish to make, decide after an overall assessment whether an excessive deficit exists. Where the existence of an excessive deficit is decided according to paragraph 6, the Council shall make recommendations to the Member State concerned with a view to bringing that situation to an end within a given period. Subject to the provisions of paragraph 8, these recommendations shall not be made public. Where it establishes that there has been no effective action in response to its recommendations within the period laid down, the Council may make its recommendations public. If a Member State persists in failing to put into practice the recommendations of the Council, the Council may decide to give notice to the Member State to take, within a specified time-limit, measures for the deficit reduction which is judged necessary by the Council in order to remedy the situation. In such a case, the Council may request the Member State concerned to submit reports in accordance with a specific timetable in order to examine the adjustment efforts of that Member State. The rights to bring actions provided for in Articles 226 and 227 may not be exercised within the framework of paragraphs 1 to 9 of this Article. As long as a Member State fails to comply with a decision taken in accordance with paragraph 9, the Council may decide to apply or, as the case may be, intensify one or more of the following measures: – to require the Member State concerned to publish additional information, to be specified by the Council, before issuing bonds and securities; – to invite the European Investment Bank to reconsider its lending policy towards the Member State concerned; – to require the Member State concerned to make a non-interest-bearing deposit of an appropriate size with the Community until the excessive deficit has, in the view of the Council, been corrected; – to impose fines of an appropriate size. The President of the Council shall inform the European Parliament of the decisions taken. The Council shall abrogate some or all of its decisions referred to in paragraphs 6 to 9 and 11 to the extent that the excessive deficit in the Member State concerned has, in the view of the Council, been corrected. If the Council has previously made public recommendations, it shall, as soon as the decision under paragraph 8 has been abrogated, make a public statement that an excessive deficit in the Member State concerned no longer exists. When taking the decisions referred to in paragraphs 7 to 9, 11 and 12, the Council shall act on a recommendation from the Commission by a majority of two-thirds of the votes of its members weighted in accordance with Article 205(2), excluding the votes of the representative of the Member State concerned. Further provisions relating to the implementation of the procedure described in this Article are set out in the Protocol on the excessive deficit procedure annexed to this Treaty. The Council shall, acting unanimously on a proposal from the Commission and after consulting the European Parliament and the ECB, adopt the appropriate provisions which shall then replace the said Protocol. Subject to the other provisions of this paragraph, the Council shall, before 1 January 1994, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, lay down detailed rules and definitions for the application of the provisions of the said Protocol. The primary objective of the ESCB shall be to maintain price stability. Without prejudice to the objective of price stability, the ESCB shall support the general econ omic policies in the Community with a view to contributing to the achievement of the objectives of the Community as laid down in Article 2. The ESCB shall act in accordance with the principle of an open market economy with free competition, favouring an efficient allocation of resources, and in compliance with the principles set out in Article 4. The basic tasks to be carried out through the ESCB shall be: – to define and implement the monetary policy of the Community; – to conduct foreign exchange operations consistent with the provisions of Article 111; – to hold and manage the official foreign reserves of the Member States; – to promote the smooth operation of payment systems. The third indent of paragraph 2 shall be without prejudice to the holding and management by the governments of Member States of foreign-exchange working balances. The ECB shall be consulted: – on any proposed Community act in its fields of competence; – by national authorities regarding any draft legislative provision in its fields of competence, but within the limits and under the conditions set out by the Council in accordance with the procedure laid down in Article 107(6). The ECB may submit opinions to the appropriate Community institutions or bodies or to national authorities on matters in its fields of competence. The ESCB shall contribute to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system. The Council may, acting unanimously on a proposal from the Commission and after consulting the ECB and after receiving the assent of the European Parliament, confer upon the ECB specific tasks concerning policies relating to the prudential supervision of credit institutions and other financial institutions with the exception of insurance undertakings. The ECB shall have the exclusive right to authorise the issue of banknotes within the Community. The ECB and the national central banks may issue such notes. The banknotes issued by the ECB and the national central banks shall be the only such notes to have the status of legal tender within the Community. Member States may issue coins subject to approval by the ECB of the volume of the issue. The Council may, acting in accordance with the procedure referred to in Article 252 and after consulting the ECB, adopt measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Community. The ESCB shall be composed of the ECB and of the national central banks. The ECB shall have legal personality. The ESCB shall be governed by the decision-making bodies of the ECB which shall be the Governing Council and the Executive Board. The Statute of the ESCB is laid down in a Protocol annexed to this Treaty. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the ESCB may be amended by the Council, acting either by a qualified majority on a recommendation from the ECB and after consulting the Commission or unanimously on a proposal from the Commission and after consulting the ECB. In either case, the assent of the European Parliament shall be required. The Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the ESCB. When exercising the powers and carrying out the tasks and duties conferred upon them by this Treaty and the Statute of the ESCB, neither the ECB, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Community institutions or bodies, from any government of a Member State or from any other body. The Community institutions and bodies and the governments of the Member States undertake to respect this principle and not to seek to influence the members of the decision-making bodies of the ECB or of the national central banks in the performance of their tasks. Each Member State shall ensure, at the latest at the date of the establishment of the ESCB, that its national legislation including the statutes of its national central bank is compatible with this Treaty and the Statute of the ESCB. In order to carry out the tasks entrusted to the ESCB, the ECB shall, in accordance with the provisions of this Treaty and under the conditions laid down in the Statute of the ESCB: – make regulations to the extent necessary to implement the tasks defined in Article 3.1, first indent, Articles 19.1, 22 and 25.2 of the Statute of the ESCB and in cases which shall be laid down in the acts of the Council referred to in Article 107(6); – take decisions necessary for carrying out the tasks entrusted to the ESCB under this Treaty and the Statute of the ESCB; – make recommendations and deliver opinions. A regulation shall have general application. It shall be binding in its entirety and directly applicable in all Member States. Recommendations and opinions shall have no binding force. A decision shall be binding in its entirety upon those to whom it is addressed. Articles 253 to 256 shall apply to regulations and decisions adopted by the ECB. The ECB may decide to publish its decisions, recommendations and opinions. Within the limits and under the conditions adopted by the Council under the procedure laid down in Article 107(6), the ECB shall be entitled to impose fines or periodic penalty payments on undertakings for failure to comply with obligations under its regulations and decisions. By way of derogation from Article 300, the Council may, acting unanimously on a recommendation from the ECB or from the Commission, and after consulting the ECB in an endeavour to reach a consensus consistent with the objective of price stability, after consulting the European Parliament, in accordance with the procedure in paragraph 3 for determining the arrangements, conclude formal agreements on an exchange-rate system for the ECU in relation to non-Community currencies. The Council may, acting by a qualified majority on a recommendation from the ECB or from the Commission, and after consulting the ECB in an endeavour to reach a consensus consistent with the objective of price stability, adopt, adjust or abandon the central rates of the ECU within the exchange-rate system. The President of the Council shall inform the European Parliament of the adoption, adjustment or abandonment of the ECU central rates. In the absence of an exchange-rate system in relation to one or more non-Community currencies as referred to in paragraph 1, the Council, acting by a qualified majority either on a recommendation from the Commission and after consulting the ECB or on a recommendation from the ECB, may formulate general orientations for exchange-rate policy in relation to these currencies. These general orientations shall be without prejudice to the primary objective of the ESCB to maintain price stability. By way of derogation from Article 300, where agreements concerning monetary or foreign exchange regime matters need to be negotiated by the Community with one or more States or international organisations, the Council, acting by a qualified majority on a recommendation from the Commission and after consulting the ECB, shall decide the arrangements for the negotiation and for the conclusion of such agreements. These arrangements shall ensure that the Community expresses a single position. The Commission shall be fully associated with the negotiations. Agreements concluded in accordance with this paragraph shall be binding on the institutions of the Community, on the ECB and on Member States. Subject to paragraph 1, the Council shall, on a proposal from the Commission and after consulting the ECB, acting by a qualified majority decide on the position of the Community at international level as regards issues of particular relevance to economic and monetary union and, acting unanimously, decide its representation in compliance with the allocation of powers laid down in Articles 99 and 105. Without prejudice to Community competence and Community agreements as regards economic and monetary union, Member States may negotiate in international bodies and conclude international agreements. The Governing Council of the ECB shall comprise the members of the Executive Board of the ECB and the Governors of the national central banks. (a) The Executive Board shall comprise the President, the Vice-President and four other members. (b) The President, the Vice-President and the other members of the Executive Board shall be appointed from among persons of recognised standing and professional experience in monetary or banking matters by common accord of the governments of the Member States at the level of Heads of State or Government, on a recommendation from the Council, after it has consulted the European Parliament and the Governing Council of the ECB. Their term of office shall be eight years and shall not be renewable. Only nationals of Member States may be members of the Executive Board. The President of the Council and a member of the Commission may participate, without having the right to vote, in meetings of the Governing Council of the ECB. The President of the Council may submit a motion for deliberation to the Governing Council of the ECB. The President of the ECB shall be invited to participate in Council meetings when the Council is discussing matters relating to the objectives and tasks of the ESCB. The ECB shall address an annual report on the activities of the ESCB and on the monetary policy of both the previous and current year to the European Parliament, the Council and the Commission, and also to the European Council. The President of the ECB shall present this report to the Council and to the European Parliament, which may hold a general debate on that basis. The President of the ECB and the other members of the Executive Board may, at the request of the European Parliament or on their own initiative, be heard by the competent committees of the European Parliament. In order to promote coordination of the policies of Member States to the full extent needed for the functioning of the internal market, a Monetary Committee with advisory status is hereby set up. It shall have the following tasks: – to keep under review the monetary and financial situation of the Member States and of the Community and the general payments system of the Member States and to report regularly thereon to the Council and to the Commission; – to deliver opinions at the request of the Council or of the Commission, or on its own initiative for submission to those institutions; – without prejudice to Article 207, to contribute to the preparation of the work of the Council referred to in Articles 59, 60, 99(2), (3), (4) and (5), 100, 102, 103, 104, 116(2), 117(6), 119, 120, 121(2) and 122(1); – to examine, at least once a year, the situation regarding the movement of capital and the freedom of payments, as they result from the application of this Treaty and of measures adopted by the Council; the examination shall cover all measures relating to capital movements and payments; the Committee shall report to the Commission and to the Council on the outcome of this examination. The Member States and the Commission shall each appoint two members of the Monetary Committee. At the start of the third stage, an Economic and Financial Committee shall be set up. The Monetary Committee provided for in paragraph 1 shall be dissolved. The Economic and Financial Committee shall have the following tasks: – to deliver opinions at the request of the Council or of the Commission, or on its own initiative for submission to those institutions; – to keep under review the economic and financial situation of the Member States and of the Community and to report regularly thereon to the Council and to the Commission, in particular on financial relations with third countries and international institutions; – without prejudice to Article 207, to contribute to the preparation of the work of the Council referred to in Articles 59, 60, 99(2), (3), (4) and (5), 100, 102, 103, 104, 105(6), 106(2), 107(5) and (6), 111, 119, 120(2) and (3), 122(2), 123(4) and (5), and to carry out other advisory and preparatory tasks assigned to it by the Council; – to examine, at least once a year, the situation regarding the movement of capital and the freedom of payments, as they result from the application of this Treaty and of measures adopted by the Council; the examination shall cover all measures relating to capital movements and payments; the Committee shall report to the Commission and to the Council on the outcome of this examination. The Member States, the Commission and the ECB shall each appoint no more than two members of the Committee. The Council shall, acting by a qualified majority on a proposal from the Commission and after consulting the ECB and the Committee referred to in this Article, lay down detailed provisions concerning the composition of the Economic and Financial Committee. The President of the Council shall inform the European Parliament of such a decision. In addition to the tasks set out in paragraph 2, if and as long as there are Member States with a derogation as referred to in Articles 122 and 123, the Committee shall keep under review the monetary and financial situation and the general payments system of those Member States and report regularly thereon to the Council and to the Commission. For matters within the scope of Articles 99(4), 104 with the exception of paragraph 14, 111, 121, 122 and 123(4) and (5), the Council or a Member State may request the Commission to make a recommendation or a proposal, as appropriate. The Commission shall examine this request and submit its conclusions to the Council without delay. The second stage for achieving economic and monetary union shall begin on 1 January 1994. Before that date: (a) each Member State shall: – adopt, where necessary, appropriate measures to comply with the prohibitions laid down in Article 56 and in Articles 101 and 102(1); – adopt, if necessary, with a view to permitting the assessment provided for in subparagraph (b), multiannual programmes intended to ensure the lasting convergence necessary for the achievement of economic and monetary union, in particular with regard to price stability and sound public finances; (b) the Council shall, on the basis of a report from the Commission, assess the progress made with regard to economic and monetary convergence, in particular with regard to price stability and sound public finances, and the progress made with the implementation of Community law concerning the internal market. The provisions of Articles 101, 102(1), 103(1) and 104 with the exception of paragraphs 1, 9, 11 and 14 shall apply from the beginning of the second stage. The provisions of Articles 100(2), 104(1), (9) and (11), 105, 106, 108, 111, 112, 113 and 114(2) and (4) shall apply from the beginning of the third stage. In the second stage, Member States shall endeavour to avoid excessive government deficits. During the second stage, each Member State shall, as appropriate, start the process leading to the independence of its central bank, in accordance with Article 109. At the start of the second stage, a European Monetary Institute (hereinafter referred to as ‘EMI’) shall be established and take up its duties; it shall have legal personality and be directed and managed by a Council, consisting of a President and the Governors of the national central banks, one of whom shall be Vice-President. The President shall be appointed by common accord of the governments of the Member States at the level of Heads of State or Government, on a recommendation from the Council of the EMI, and after consulting the European Parliament and the Council. The President shall be selected from among persons of recognised standing and professional experience in monetary or banking matters. Only nationals of Member States may be President of the EMI. The Council of the EMI shall appoint the Vice-President. The Statute of the EMI is laid down in a Protocol annexed to this Treaty. The EMI shall: – strengthen cooperation between the national central banks; – strengthen the coordination of the monetary policies of the Member States, with the aim of ensuring price stability; – monitor the functioning of the European Monetary System; – hold consultations concerning issues falling within the competence of the national central banks and affecting the stability of financial institutions and markets; – take over the tasks of the European Monetary Cooperation Fund, which shall be dissolved; the modalities of dissolution are laid down in the Statute of the EMI; – facilitate the use of the ECU and oversee its development, including the smooth functioning of the ECU clearing system. For the preparation of the third stage, the EMI shall: – prepare the instruments and the procedures necessary for carrying out a single monetary policy in the third stage; – promote the harmonisation, where necessary, of the rules and practices governing the collection, compilation and distribution of statistics in the areas within its field of competence; – prepare the rules for operations to be undertaken by the national central banks within the framework of the ESCB; – promote the efficiency of cross-border payments; – supervise the technical preparation of ECU banknotes. At the latest by 31 December 1996, the EMI shall specify the regulatory, organisational and logistical framework necessary for the ESCB to perform its tasks in the third stage. This framework shall be submitted for decision to the ECB at the date of its establishment. The EMI, acting by a majority of two thirds of the members of its Council, may: – formulate opinions or recommendations on the overall orientation of monetary policy and exchange-rate policy as well as on related measures introduced in each Member State; – submit opinions or recommendations to governments and to the Council on policies which might affect the internal or external monetary situation in the Community and, in particular, the functioning of the European Monetary System; – make recommendations to the monetary authorities of the Member States concerning the conduct of their monetary policy. The EMI, acting unanimously, may decide to publish its opinions and its recommendations. The EMI shall be consulted by the Council regarding any proposed Community act within its field of competence. Within the limits and under the conditions set out by the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament and the EMI, the EMI shall be consulted by the authorities of the Member States on any draft legislative provision within its field of competence. The Council may, acting unanimously on a proposal from the Commission and after consulting the European Parliament and the EMI, confer upon the EMI other tasks for the preparation of the third stage. Where this Treaty provides for a consultative role for the ECB, references to the ECB shall be read as referring to the EMI before the establishment of the ECB. During the second stage, the term ‘ECB’ used in Articles 230, 232, 233, 234, 237 and 288 shall be read as referring to the EMI. The currency composition of the ECU basket shall not be changed. From the start of the third stage, the value of the ECU shall be irrevocably fixed in accordance with Article 123(4). Where a Member State is in difficulties or is seriously threatened with difficulties as regards its balance of payments either as a result of an overall disequilibrium in its balance of payments, or as a result of the type of currency at its disposal, and where such difficulties are liable in particular to jeopardise the functioning of the common market or the progressive implementation of the common commercial policy, the Commission shall immediately investigate the position of the State in question and the action which, making use of all the means at its disposal, that State has taken or may take in accordance with the provisions of this Treaty. The Commission shall state what measures it recommends the State concerned to take. If the action taken by a Member S tate and the measures suggested by the Commission do not prove sufficient to overcome the difficulties which have arisen or which threaten, the Commission shall, after consulting the Committee referred to in Article 114, recommend to the Council the granting of mutual assistance and appropriate methods therefor. The Commission shall keep the Council regularly informed of the situation and of how it is developing. The Council, acting by a qualified majority, shall grant such mutual assistance; it shall adopt directives or decisions laying down the conditions and details of such assistance, which may take such forms as: (a) a concerted approach to or within any other international organisations to which Member States may have recourse; (b) measures needed to avoid deflection of trade where the State which is in difficulties maintains or reintroduces quantitative restrictions against third countries; (c) the granting of limited credits by other Member States, subject to their agreement. If the mutual assistance recommended by the Commission is not granted by the Council or if the mutual assistance granted and the measures taken are insufficient, the Commission shall authorise the State which is in difficulties to take protective measures, the conditions and details of which the Commission shall determine. Such authorisation may be revoked and such conditions and details may be changed by the Council acting by a qualified majority. Subject to Article 122(6), this Article shall cease to apply from the beginning of the third stage. Where a sudden crisis in the balance of payments occurs and a decision within the meaning of Article 119(2) is not immediately taken, the Member State concerned may, as a precaution, take the necessary protective measures. Such measures must cause the least possible disturbance in the functioning of the common market and must not be wider in scope than is strictly necessary to remedy the sudden difficulties which have arisen. The Commission and the other Member States shall be informed of such protective measures not later than when they enter into force. The Commission may recommend to the Council the granting of mutual assistance under Article 119. After the Commission has delivered an opinion and the Committee referred to in Article 114 has been consulted, the Council may, acting by a qualified majority, decide that the State concerned shall amend, suspend or abolish the protective measures referred to above. Subject to Article 122(6), this Article shall cease to apply from the beginning of the third stage. The Commission and the EMI shall report to the Council on the progress made in the fulfilment by the Member States of their obligations regarding the achievement of economic and monetary union. These reports shall include an examination of the compatibility between each Member State’s national legislation, including the statutes of its national central bank, and Articles 108 and 109 of this Treaty and the Statute of the ESCB. The reports shall also examine the achievement of a high degree of sustainable convergence by reference to the fulfilment by each Member State of the following criteria: – the achievement of a high degree of price stability; this will be apparent from a rate of inflation which is close to that of, at most, the three best performing Member States in terms of price stability; – the sustainability of the government financial position; this will be apparent from having achieved a government budgetary position without a deficit that is excessive as determined in accordance with Article 104(6); – the observance of the normal fluctuation margins provided for by the exchange-rate mechanism of the European Monetary System, for at least two years, without devaluing against the currency of any other Member State; – the durability of convergence achieved by the Member State and of its participation in the exchange-rate mechanism of the European Monetary System being reflected in the long-term interest-rate levels. The four criteria mentioned in this paragraph and the relevant periods over which they are to be respected are developed further in a Protocol annexed to this Treaty. The reports of the Commission and the EMI shall also take account of the development of the ECU, the results of the integration of markets, the situation and development of the balances of payments on current account and an examination of the development of unit labour costs and other price indices. On the basis of these reports, the Council, acting by a qualified majority on a recommendation from the Commission, shall assess: – for each Member State, whether it fulfils the necessary conditions for the adoption of a single currency; – whether a majority of the Member States fulfil the necessary conditions for the adoption of a single currency, and recommend its findings to the Council, meeting in the composition of the Heads of State or Government. The European Parliament shall be consulted and forward its opinion to the Council, meeting in the composition of the Heads of State or Government. Taking due account of the reports referred to in paragraph 1 and the opinion of the European Parliament referred to in paragraph 2, the Council, meeting in the composition of the Heads of State or Government, shall, acting by a qualified majority, not later than 31 December 1996: – decide, on the basis of the recommendations of the Council referred to in paragraph 2, whether a majority of the Member States fulfil the necessary conditions for the adoption of a single currency; – decide whether it is appropriate for the Community to enter the third stage, and if so: – set the date for the beginning of the third stage. If by the end of 1997 the date for the beginning of the third stage has not been set, the third stage shall start on 1 January 1999. Before 1 July 1998, the Council, meeting in the composition of the Heads of State or Government, after a repetition of the procedure provided for in paragraphs 1 and 2, with the exception of the second indent of paragraph 2, taking into account the reports referred to in paragraph 1 and the opinion of the European Parliament, shall, acting by a qualified majority and on the basis of the recommendations of the Council referred to in paragraph 2, confirm which Member States fulfil the necessary conditions for the adoption of a single currency. If the decision has been taken to set the date in accordance with Article 121(3), the Council shall, on the basis of its recommendations referred to in Article 121(2), acting by a qualified majority on a recommendation from the Commission, decide whether any, and if so which, Member States shall have a derogation as defined in paragraph 3 of this Article. Such Member States shall in this Treaty be referred to as ‘Member States with a derogation’. If the Council has confirmed which Member States fulfil the necessary conditions for the adoption of a single currency, in accordance with Article 121(4), those Member States which do not fulfil the conditions shall have a derogation as defined in paragraph 3 of this Article. Such Member States shall in this Treaty be referred to as ‘Member States with a derogation’. At least once every two years, or at the request of a Member State with a derogation, the Commission and the ECB shall report to the Council in accordance with the procedure laid down in Article 121(1). After consulting the European Parliament and after discussion in the Council, meeting in the composition of the Heads of State or Government, the Council shall, acting by a qualified majority on a proposal from the Commission, decide which Member States with a derogation fulfil the necessary conditions on the basis of the criteria set out in Article 121(1), and abrogate the derogations of the Member States concerned. A derogation referred to in paragraph 1 shall entail that the following Articles do not apply to the Member State concerned: Articles 104(9) and (11), 105(1), (2), (3) and (5), 106, 110, 111, and 112(2)(b). The exclusion of such a Member State and its national central bank from rights and obligations within the ESCB is laid down in Chapter IX of the Statute of the ESCB. In Articles 105(1), (2) and (3), 106, 110, 111 and 112(2)(b), ‘Member States’ shall be read as ‘Member States without a derogation’. The voting rights of Member States with a derogation shall be suspended for the Council decisions referred to in the Articles of this Treaty mentioned in paragraph 3. In that case, by way of derogation from Articles 205 and 250(1), a qualified majority shall be defined as two-thirds of the votes of the representatives of the Member States without a derogation weighted in accordance with Article 205(2), and unanimity of those Member States shall be required for an act requiring unanimity. Articles 119 and 120 shall continue to apply to a Member State with a derogation. Immediately after the decision on the date for the beginning of the third stage has been taken in accordance with Article 121(3), or, as the case may be, immediately after 1 July 1998: – the Council shall adopt the provisions referred to in Article 107(6); – the governments of the Member States without a derogation shall appoint, in accordance with the procedure set out in Article 50 of the Statute of the ESCB, the President, the Vice-President and the other members of the Executive Board of the ECB. If there are Member States with a derogation, the number of members of the Executive Board may be smaller than provided for in Article 11.1 of the Statute of the ESCB, but in no circumstances shall it be less than four. As soon as the Executive Board is appointed, the ESCB and the ECB shall be established and shall prepare for their full operation as described in this Treaty and the Statute of the ESCB. The full exercise of their powers shall start from the first day of the third stage. As soon as the ECB is established, it shall, if necessary, take over tasks of the EMI. The EMI shall go into liquidation upon the establishment of the ECB; the modalities of liquidation are laid down in the Statute of the EMI. If and as long as there are Member States with a derogation, and without prejudice to Article 107(3) of this Treaty, the General Council of the ECB referred to in Article 45 of the Statute of the ESCB shall be constituted as a third decision-making body of the ECB. At the starting date of the third stage, the Council shall, acting with the unanimity of the Member States without a derogation, on a proposal from the Commission and after consulting the ECB, adopt the conversion rates at which their currencies shall be irrevocably fixed and at which irrevocably fixed rate the ECU shall be substituted for these currencies, and the ECU will become a currency in its own right. This measure shall by itself not modify the external value of the ECU. The Council shall, acting according to the same procedure, also take the other measures necessary for the rapid introduction of the ECU as the single currency of those Member States. If it is decided, according to the procedure set out in Article 122(2), to abrogate a derogation, the Council shall, acting with the unanimity of the Member States without a derogation and the Member State concerned, on a proposal from the Commission and after consulting the ECB, adopt the rate at which the ECU shall be substituted for the currency of the Member State concerned, and take the other measures necessary for the introduction of the ECU as the single currency in the Member State concerned. Until the beginning of the third stage, each Member State shall treat its exchange-rate policy as a matter of common interest. In so doing, Member States shall take account of the experience acquired in cooperation within the framework of the European Monetary System (EMS) and in developing the ECU, and shall respect existing powers in this field. From the beginning of the third stage and for as long as a Member State has a derogation, paragraph 1 shall apply by analogy to the exchange-rate policy of that Member State. Member States and the Community shall, in accordance with this Title, work towards developing a coordinated strategy for employment and particularly for promoting a skilled, trained and adaptable workforce and labour markets responsive to economic change with a view to achieving the objectives defined in Article 2 of the Treaty on European Union and in Article 2 of this Treaty. Member States, through their employment policies, shall contribute to the achievement of the objectives referred to in Article 125 in a way consistent with the broad guidelines of the economic policies of the Member States and of the Community adopted pursuant to Article 99(2). Member States, having regard to national practices related to the responsibilities of management and labour, shall regard promoting employment as a matter of common concern and shall coordinate their action in this respect within the Council, in accordance with the provisions of Article 128. The Community shall contribute to a high level of employment by encouraging cooperation between Member States and by supporting and, if necessary, complementing their action. In doing so, the competences of the Member States shall be respected. The objective of a high level of employment shall be taken into consideration in the formulation and implementation of Community policies and activities. The European Council shall each year consider the employment situation in the Community and adopt conclusions thereon, on the basis of a joint annual report by the Council and the Commission. On the basis of the conclusions of the European Council, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, the Economic and Social Committee, t he Committee of the Regions and the Employment Committee referred to in Article 130, shall each year draw up guidelines which the Member States shall take into account in their employment policies. These guidelines shall be consistent with the broad guidelines adopted pursuant to Article 99(2). Each Member State shall provide the Council and the Commission with an annual report on the principal measures taken to implement its employment policy in the light of the guidelines for employment as referred to in paragraph 2. The Council, on the basis of the reports referred to in paragraph 3 and having received the views of the Employment Committee, shall each year carry out an examination of the implementation of the employment policies of the Member States in the light of the guidelines for employment. The Council, acting by a qualified majority on a recommendation from the Commission, may, if it considers it appropriate in the light of that examination, make recommendations to Member States. On the basis of the results of that examination, the Council and the Commission shall make a joint annual report to the European Council on the employment situation in the Community and on the implementation of the guidelines for employment. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, may adopt incentive measures designed to encourage cooperation between Member States and to support their action in the field of employment through initiatives aimed at developing exchanges of information and best practices, providing comparative analysis and advice as well as promoting innovative approaches and evaluating experiences, in particular by recourse to pilot projects. Those measures shall not include harmonisation of the laws and regulations of the Member States. The Council, after consulting the European Parliament, shall establish an Employment Committee with advisory status to promote coordination between Member States on employment and labour market policies. The tasks of the Committee shall be: – to monitor the employment situation and employment policies in the Member States and the Community; – without prejudice to Article 207, to formulate opinions at the request of either the Council or the Commission or on its own initiative, and to contribute to the preparation of the Council proceedings referred to in Article 128. In fulfilling its mandate, the Committee shall consult management and labour. Each Member State and the Commission shall appoint two members of the Committee. By establishing a customs union between themselves Member States aim to contribute, in the common interest, to the harmonious development of world trade, the progressive abolition of restrictions on international trade and the lowering of customs barriers. The common commercial policy shall take into account the favourable effect which the abolition of customs duties between Member States may have on the increase in the competitive strength of undertakings in those States. Without prejudice to obligations undertaken by them within the framework of other international organisations, Member States shall progressively harmonise the systems whereby they grant aid for exports to third countries, to the extent necessary to ensure that competition between undertakings of the Community is not distorted. On a proposal from the Commission, the Council shall, acting by a qualified majority, issue any directives needed for this purpose. The preceding provisions shall not apply to such a drawback of customs duties or charges having equivalent effect nor to such a repayment of indirect taxation including turnover taxes, excise duties and other indirect taxes as is allowed when goods are exported from a Member State to a third country, insofar as such a drawback or repayment does not exceed the amount imposed, directly or indirectly, on the products exported. The common commercial policy shall be based on uniform principles, particularly in regard to changes in tariff rates, the conclusion of tariff and trade agreements, the achievement of uniformity in measures of liberalisation, export policy and measures to protect trade such as those to be taken in the event of dumping or subsidies. The Commission shall submit proposals to the Council for implementing the common commercial policy. Where agreements with one or more States or international organisations need to be negotiated, the Commission shall make recommendations to the Council, which shall authorise the Commission to open the necessary negotiations. The Commission shall conduct these negotiations in consultation with a special committee appointed by the Council to assist the Commission in this task and within the framework of such directives as the Council may issue to it. The relevant provisions of Article 300 shall apply. In exercising the powers conferred upon it by this Article, the Council shall act by a qualified majority. The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, may extend the application of paragraphs 1 to 4 to international negotiations and agreements on services and intellectual property insofar as they are not covered by these paragraphs. In order to ensure that the execution of measures of commercial policy taken in accordance with this Treaty by any Member State is not obstructed by deflection of trade, or where differences between such measures lead to economic difficulties in one or more Member States, the Commission shall recommend the methods for the requisite cooperation between Member States. Failing this, the Commission may authorise Member States to take the necessary protective measures, the conditions and details of which it shall determine. In case of urgency, Member States shall request authorisation to take the necessary measures themselves from the Commission, which shall take a decision as soon as possible; the Member States concerned shall then notify the measures to the other Member States. The Commission may decide at any time that the Member States concerned shall amend or abolish the measures in question. In the selection of such measures, priority shall be given to those which cause the least disturbance of the functioning of the common market. Within the scope of application of this Treat y, the Council, acting in accordance with the procedure referred to in Article 251, shall take measures in order to strengthen customs cooperation between Member States and between the latter and the Commission. These measures shall not concern the application of national criminal law or the national administration of justice. The Community and the Member States, having in mind fundamental social rights such as those set out in the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community Charter of the Fundamental Social Rights of Workers, shall have as their objectives the promotion of employment, improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained, proper social protection, dialogue between management and labour, the development of human resources with a view to lasting high employment and the combating of exclusion. To this end the Community and the Member States shall implement measures which take account of the diverse forms of national practices, in particular in the field of contractual relations, and the need to maintain the competitiveness of the Community economy. They believe that such a development will ensue not only from the functioning of the common market, which will favour the harmonisation of social systems, but also from the procedures provided for in this Treaty and from the approximation of provisions laid down by law, regulation or administrative action. With a view to achieving the objectives of Article 136, the Community shall support and complement the activities of the Member States in the following fields: – improvement in particular of the working environment to protect workers’ health and safety; – working conditions; – the information and consultation of workers; – the integration of persons excluded from the labour market, without prejudice to Article 150; – equality between men and women with regard to labour market opportunities and treatment at work. To this end, the Council may adopt, by means of directives, minimum requirements for gradual implementation, having regard to the conditions and technical rules obtaining in each of the Member States. Such directives shall avoid imposing administrative, financial and legal constraints in a way which would hold back the creation and development of small and medium-sized undertakings. The Council shall act in accordance with the procedure referred to in Article 251 after consulting the Economic and Social Committee and the Committee of the Regions. The Council, acting in accordance with the same procedure, may adopt measures designed to encourage cooperation between Member States through initiatives aimed at improving knowledge, developing exchanges of information and best practices, promoting innovative approaches and evaluating experiences in order to combat social exclusion. However, the Council shall act unanimously on a proposal from the Commission, after consulting the European Parliament, the Economic and Social Committee and the Committee of the Regions in the following areas: – social security and social protection of workers; – protection of workers where their employment contract is terminated; – representation and collective defence of the interests of workers and employers, including co-determination, subject to paragraph 6; – conditions of employment for third-country nationals legally residing in Community territory; – financial contributions for promotion of employment and job-creation, without prejudice to the provisions relating to the Social Fund. A Member State may entrust management and labour, at their joint request, with the implementation of directives adopted pursuant to paragraphs 2 and 3. In this case, it shall ensure that, no later than the date on which a directive must be transposed in accordance with Article 249, management and labour have introduced the necessary measures by agreement, the Member State concerned being required to take any necessary measure enabling it at any time to be in a position to guarantee the results imposed by that directive. The provisions adopted pursuant to this Article shall not prevent any Member State from maintaining or introducing more stringent protective measures compatible with this Treaty. The provisions of this Article shall not apply to pay, the right of association, the right to strike or the right to impose lock-outs. The Commission shall have the task of promoting the consultation of management and labour at Community level and shall take any relevant measure to facilitate their dialogue by ensuring balanced support for the parties. To this end, before submitting proposals in the social policy field, the Commission shall consult management and labour on the possible direction of Community action. If, after such consultation, the Commission considers Community action advisable, it shall consult management and labour on the content of the envisaged proposal. Management and labour shall forward to the Commission an opinion or, where appropriate, a recommendation. On the occasion of such consultation, management and labour may inform the Commission of their wish to initiate the process provided for in Article 139. The duration of the procedure shall not exceed nine months, unless the management and labour concerned and the Commission decide jointly to extend it. Should management and labour so desire, the dialogue between them at Community level may lead to contractual relations, including agreements. Agreements concluded at Community level shall be implemented either in accordance with the procedures and practices specific to management and labour and the Member States or, in matters covered by Article 137, at the joint request of the signatory parties, by a Council decision on a proposal from the Commission. The Council shall act by qualified majority, except where the agreement in question contains one or more provisions relating to one of the areas referred to in Article 137(3), in which case it shall act unanimously. With a view to achieving the objectives of Article 136 and without prejudice to the other provisions of this Treaty, the Commission shall encourage cooperation between the Member States and facilitate the coordination of their action in all social policy fields under this chapter, particularly in matters relating to: – employment; – labour law and working conditions; – basic and advanced vocational training; – social security; – prevention of occupational accidents and diseases; – occupational hygiene; – the right of association and collective bargaining between employ ers and workers. To this end, the Commission shall act in close contact with Member States by making studies, delivering opinions and arranging consultations both on problems arising at national level and on those of concern to international organisations. Before delivering the opinions provided for in this Article, the Commission shall consult the Economic and Social Committee. Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value is applied. For the purpose of this Article, ‘pay’ means the ordinary basic or minimum wage or salary and any other consideration, whether in cash or in kind, which the worker receives directly or indirectly, in respect of his employment, from his employer. Equal pay without discrimination based on sex means: (a) that pay for the same work at piece rates shall be calculated on the basis of the same unit of measurement; (b) that pay for work at time rates shall be the same for the same job. The Council, acting in accordance with the procedure referred to in Article 251, and after consulting the Economic and Social Committee, shall adopt measures to ensure the application of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation, including the principle of equal pay for equal work or work of equal value. With a view to ensuring full equality in practice between men and women in working life, the principle of equal treatment shall not prevent any Member State from maintaining or adopting measures providing for specific advantages in order to make it easier for the under-represented sex to pursue a vocational activity or to prevent or compensate for disadvantages in professional careers. Member States shall endeavour to maintain the existing equivalence between paid holiday schemes. The Commission shall draw up a report each year on progress in achieving the objectives of Article 136, including the demographic situation in the Community. It shall forward the report to the European Parliament, the Council and the Economic and Social Committee. The European Parliament may invite the Commission to draw up reports on particular problems concerning the social situation. The Council may, acting unanimously and after consulting the Economic and Social Committee, assign to the Commission tasks in connection with the implementation of common measures, particularly as regards social security for the migrant workers referred to in Articles 39 to 42. The Commission shall include a separate chapter on social developments within the Community in its annual report to the European Parliament. The European Parliament may invite the Commission to draw up reports on any particular problems concerning social conditions. In order to improve employment opportunities for workers in the internal market and to contribute thereby to raising the standard of living, a European Social Fund is hereby established in accordance with the provisions set out below; it shall aim to render the employment of workers easier and to increase their geographical and occupational mobility within the Community, and to facilitate their adaptation to industrial changes and to changes in production systems, in particular through vocational training and retraining. The Fund shall be administered by the Commission. The Commission shall be assisted in this task by a Committee presided over by a Member of the Commission and composed of representatives of governments, trade unions and employers’ organisations. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, shall adopt implementing decisions relating to the European Social Fund. The Community shall contribute to the development of quality education by encouraging cooperation between Member States and, if necessary, by supporting and supplementing their action, while fully respecting the responsibility of the Member States for the content of teaching and the organisation of education systems and their cultural and linguistic diversity. Community action shall be aimed at: – developing the European dimension in education, particularly through the teaching and dissemination of the languages of the Member States; – encouraging mobility of students and teachers, inter alia by encouraging the academic recognition of diplomas and periods of study; – promoting cooperation between educational establishments; – developing exchanges of information and experience on issues common to the education systems of the Member States; – encouraging the development of youth exchanges and of exchanges of socio-educational instructors; – encouraging the development of distance education. The Community and the Member States shall foster cooperation with third countries and the competent international organisations in the field of education, in particular the Council of Europe. In order to contribute to the achievement of the objectives referred to in this Article, the Council: – acting in accordance with the procedure referred to in Article 251, after consulting the Economic and Social Committee and the Committee of the Regions, shall adopt incentive measures, excluding any harmonisation of the laws and regulations of the Member States; – acting by a qualified majority on a proposal from the Commission, shall adopt recommendations. The Community shall implement a vocational training policy which shall support and supplement the action of the Member States, while fully respecting the responsibility of the Member States for the content and organisation of vocational training. Community action shall aim to: – facilitate adaptation to industrial changes, in particular through vocational training and retraining; – improve initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market; – facilitate access to vocational training and encourage mobility of instructors and trainees and particularly young people; – stimulate cooperation on training between educational or training establishments and firms; – develop exchanges of information and experience on issues common to the training systems of the Member States. The Community and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of vocational training. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, shall adopt measures to contribute to the achievement of the objectives referred to in this Article, excluding any harmonisation of the laws and regulations of the Member States. The Community shall contribute to the flowering of the cultures of the Member States, while respecting their national and regional diversity and at the same time bringing the common cultural heritage to the fore. Action by the Community shall be aimed at encouraging cooperation between Member States and, if necessary, supporting and supplementing their action in the following areas: – improvement of the knowledge and dissemination of the culture and history of the European peoples; – conservation and safeguarding of cultural heritage of European significance; – non-commercial cultural exchanges; – artistic and literary creation, including in the audiovisual sector. The Community and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of culture, in particular the Council of Europe. The Community shall take cultural aspects into account in its action under other provisions of this Treaty, in particular in order to respect and to promote the diversity of its cultures. In order to contribute to the achievement of the objectives referred to in this Article, the Council: – acting in accordance with the procedure referred to in Article 251 and after consulting the Committee of the Regions, shall adopt incentive measures, excluding any harmonisation of the laws and regulations of the Member States. The Council shall act unanimously throughout the procedure referred to in Article 251; – acting unanimously on a proposal from the Commission, shall adopt recommendations. A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education. The Community shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention. The Community shall encourage cooperation between the Member States in the areas referred to in this Article and, if necessary, lend support to their action. Member States shall, in liaison with the Commission, coordinate among themselves their policies and programmes in the areas referred to in paragraph 1. The Commission may, in close contact with the Member States, take any useful initiative to promote such coordination. The Community and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of public health. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, shall contribute to the achievement of the objectives referred to in this Article through adopting: (a) measures setting high standards of quality and safety of organs and substances of human origin, blood and blood derivatives; these measures shall not prevent any Member State from maintaining or introducing more stringent protective measures; (b) by way of derogation from Article 37, measures in the veterinary and phytosanitary fields which have as their direct objective the protection of public health; (c) incentive measures designed to protect and improve human health, excluding any harmonisation of the laws and regulations of the Member States. The Council, acting by a qualified majority on a proposal from the Commission, may also adopt recommendations for the purposes set out in this Article. Community action in the field of public health shall fully respect the responsibilities of the Member States for the organisation and delivery of health services and medical care. In particular, measures referred to in paragraph 4(a) shall not affect national provisions on the donation or medical use of organs and blood. In order to promote the interests of consumers and to ensure a high level of consumer protection, the Community shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests. Consumer protection requirements shall be taken into account in defining and implementing other Community policies and activities. The Community shall contribute to the attainment of the objectives referred to in paragraph 1 through: (a) measures adopted pursuant to Article 95 in the context of the completion of the internal market; (b) measures which support, supplement and monitor the policy pursued by the Member States. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, shall adopt the measures referred to in paragraph 3(b). Measures adopted pursuant to paragraph 4 shall not prevent any Member State from maintaining or introducing more stringent protective measures. Such measures must be compatible with this Treaty. The Commission shall be notified of them. To help achieve the objectives referred to in Articles 14 and 158 and to enable citizens of the Union, economic operators and regional and local communities to derive full benefit from the setting-up of an area without internal frontiers, the Community shall contribute to the establishment and development of trans-European networks in the areas of transport, telecommunications and energy infrastruct ures. Within the framework of a system of open and competitive markets, action by the Community shall aim at promoting the interconnection and interoperability of national networks as well as access to such networks. It shall take account in particular of the need to link island, landlocked and peripheral regions with the central regions of the Community. In order to achieve the objectives referred to in Article 154, the Community: – shall establish a series of guidelines covering the objectives, priorities and broad lines of measures envisaged in the sphere of trans-European networks; these guidelines shall identify projects of common interest; – shall implement any measures that may prove necessary to ensure the interoperability of the networks, in particular in the field of technical standardisation; – may support projects of common interest supported by Member States, which are identified in the framework of the guidelines referred to in the first indent, particularly through feasibility studies, loan guarantees or interest-rate subsidies; the Community may also contribute, through the Cohesion Fund set up pursuant to Article 161, to the financing of specific projects in Member States in the area of transport infrastructure. The Community’s activities shall take into account the potential economic viability of the projects. Member States shall, in liaison with the Commission, coordinate among themselves the policies pursued at national level which may have a significant impact on the achievement of the objectives referred to in Article 154. The Commission may, in close cooperation with the Member State, take any useful initiative to promote such coordination. The Community may decide to cooperate with third countries to promote projects of mutual interest and to ensure the interoperability of networks. The guidelines and other measures referred to in Article 155(1) shall be adopted by the Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions. Guidelines and projects of common interest which relate to the territory of a Member State shall require the approval of the Member State concerned. The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community’s industry exist. For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at: – speeding up the adjustment of industry to structural changes; – encouraging an environment favourable to initiative and to the development of undertakings throughout the Community, particularly small and medium-sized undertakings; – encouraging an environment favourable to cooperation between undertakings; – fostering better exploitation of the industrial potential of policies of innovation, research and technological development. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination. The Community shall contribute to the achievement of the objectives set out in paragraph 1 through the policies and activities it pursues under other provisions of this Treaty. The Council, acting unanimously on a proposal from the Commission, after consulting the European Parliament and the Economic and Social Committee, may decide on specific measures in support of action taken in the Member States to achieve the objectives set out in paragraph 1. This Title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition. In order to promote its overall harmonious development, the Community shall develop and pursue its actions leading to the strengthening of its economic and social cohesion. In particular, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas. Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 158. The formulation and implementation of the Community’s policies and actions and the implementation of the internal market shall take into account the objectives set out in Article 158 and shall contribute to their achievement. The Community shall also support the achievement of these objectives by the action it takes through the Structural Funds (European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund; European Regional Development Fund), the European Investment Bank and the other existing financial instruments. The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic and social cohesion and on the manner in which the various means provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by appropriate proposals. If specific actions prove necessary outside the Funds and without prejudice to the measures decided upon within the framework of the other Community policies, such actions may be adopted by the Council acting unanimously on a proposal from the Commission and after consulting the European Parliament, the Economic and Social Committee and the Committee of the Regions. The European Regional Development Fund is intended to help to redress the main regional imbalances in the Community through participation in the development and structural adjustment of regions whose development is lagging behind and in the conversion of declining industrial regions. Without prejudice to Article 162, the Council, acting unanimously on a proposal from the Commission and after obtaining the assent of the European Parliament and consulting the Economic and Social Committee and the Committee of the Regions, shall define the tasks, priority objectives and the organisation of the Structural Funds, which may involve grouping the Funds. The Council, acting by the same procedure, shall also define the general rules applicable to them and the provisions necessary to ensure their effectiveness and the coordination of the Funds with on e another and with the other existing financial instruments. A Cohesion Fund set up by the Council in accordance with the same procedure shall provide a financial contribution to projects in the fields of environment and trans-European networks in the area of transport infrastructure. Implementing decisions relating to the European Regional Development Fund shall be taken by the Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions. With regard to the European Agricultural Guidance and Guarantee Fund, Guidance Section, and the European Social Fund, Articles 37 and 148 respectively shall continue to apply. The Community shall have the objective of strengthening the scientific and technological bases of Community industry and encouraging it to become more competitive at international level, while promoting all the research activities deemed necessary by virtue of other Chapters of this Treaty. For this purpose the Community shall, throughout the Community, encourage undertakings, including small and medium-sized undertakings, research centres and universities in their research and technological development activities of high quality; it shall support their efforts to cooperate with one another, aiming, notably, at enabling undertakings to exploit the internal market potential to the full, in particular through the opening-up of national public contracts, the definition of common standards and the removal of legal and fiscal obstacles to that cooperation. All Community activities under this Treaty in the area of research and technological development, including demonstration projects, shall be decided on and implemented in accordance with the provisions of this Title. In pursuing these objectives, the Community shall carry out the following activities, complementing the activities carried out in the Member States: (a) implementation of research, technological development and demonstration programmes, by promoting cooperation with and between undertakings, research centres and universities; (b) promotion of cooperation in the field of Community research, technological development and demonstration with third countries and international organisations; (c) dissemination and optimisation of the results of activities in Community research, technological development and demonstration; (d) stimulation of the training and mobility of researchers in the Community. The Community and the Member States shall coordinate their research and technological development activities so as to ensure that national policies and Community policy are mutually consistent. In close cooperation with the Member State, the Commission may take any useful initiative to promote the coordination referred to in paragraph 1. A multiannual framework programme, setting out all the activities of the Community, shall be adopted by the Council, acting in accordance with the procedure referred to in Article 251 after consulting the Economic and Social Committee. The framework programme shall: – establish the scientific and technological objectives to be achieved by the activities provided for in Article 164 and fix the relevant priorities; – indicate the broad lines of such activities; – fix the maximum overall amount and the detailed rules for Community financial participation in the framework programme and the respective shares in each of the activities provided for. The framework programme shall be adapted or supplemented as the situation changes. The framework programme shall be implemented through specific programmes developed within each activity. Each specific programme shall define the detailed rules for implementing it, fix its duration and provide for the means deemed necessary. The sum of the amounts deemed necessary, fixed in the specific programmes, may not exceed the overall maximum amount fixed for the framework programme and each activity. The Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, shall adopt the specific programmes. For the implementation of the multiannual framework programme the Council shall: – determine the rules for the participation of undertakings, research centres and universities; – lay down the rules governing the dissemination of research results. In implementing the multiannual framework programme, supplementary programmes may be decided on involving the participation of certain Member States only, which shall finance them subject to possible Community participation. The Council shall adopt the rules applicable to supplementary programmes, particularly as regards the dissemination of knowledge and access by other Member States. In implementing the multiannual framework programme the Community may make provision, in agreement with the Member States concerned, for participation in research and development programmes undertaken by several Member States, including participation in the structures created for the execution of those programmes. In implementing the multiannual framework programme the Community may make provision for cooperation in Community research, technological development and demonstration with third countries or international organisations. The detailed arrangements for such cooperation may be the subject of agreements between the Community and the third parties concerned, which shall be negotiated and concluded in accordance with Article 300. The Community may set up joint undertakings or any other structure necessary for the efficient execution of Community research, technological development and demonstration programmes. The Council, acting by qualified majority on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, shall adopt the provisions referred to in Article 171. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, shall adopt the provisions referred to in Articles 167, 168 and 169. Adoption of the supplementary programmes shall require the agreement of the Member States concerned. At the beginning of each year the Commission shall send a report to the European Parliament and the Council. The report shall include information on research and technological development activities and the dissemination of results during the previous year, and the work programme for the current year. Community policy on the environment shall contribute to pursuit of the following objectives: – preserving, protecting and improving the quality of the environment; – protecting human health; – prudent and rational utilisation of natural resources; – promoting measures at international level to deal with regional or worldwide environmental problems. Community policy on the environment shall aim at a high level of protection taking into account the diversity of situations in the various regions of the Community. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. In this context, harmonisation measures answering environmental protection requirements shall include, where appropriate, a safeguard clause allowing Member States to take provisional measures, for non-economic environmental reasons, subject to a Community inspection procedure. In preparing its policy on the environment, the Community shall take account of: – available scientific and technical data; – environmental conditions in the various regions of the Community; – the potential benefits and costs of action or lack of action; – the economic and social development of the Community as a whole and the balanced development of its regions. Within their respective spheres of competence, the Community and the Member States shall cooperate with third countries and with the competent international organisations. The arrangements for Community cooperation may be the subject of agreements between the Community and the third parties concerned, which shall be negotiated and concluded in accordance with Article 300. The previous subparagraph shall be without prejudice to Member States’ competence to negotiate in international bodies and to conclude international agreements. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, shall decide what action is to be taken by the Community in order to achieve the objectives referred to in Article 174. By way of derogation from the decision-making procedure provided for in paragraph 1 and without prejudice to Article 95, the Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, the Economic and Social Committee and the Committee of the Regions, shall adopt: – provisions primarily of a fiscal nature; – measures concerning town and country planning, land use with the exception of waste management and measures of a general nature, and management of water resources; – measures significantly affecting a Member State’s choice between different energy sources and the general structure of its energy supply. The Council may, under the conditions laid down in the preceding subparagraph, define those matters referred to in this paragraph on which decisions are to be taken by a qualified majority. In other areas, general action programmes setting out priority objectives to be attained shall be adopted by the Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions. The Council, acting under the terms of paragraph 1 or paragraph 2 according to the case, shall adopt the measures necessary for the implementation of these programmes. Without prejudice to certain measures of a Community nature, the Member States shall finance and implement the environment policy. Without prejudice to the principle that the polluter should pay, if a measure based on the provisions of paragraph 1 involves costs deemed disproportionate for the public authorities of a Member State, the Council shall, in the act adopting that measure, lay down appropriate provisions in the form of: – temporary derogations, and/or – financial support from the Cohesion Fund set up pursuant to Article 161. The protective measures adopted pursuant to Article 175 shall not prevent any Member State from maintaining or introducing more stringent protective measures. Such measures must be compatible with this Treaty. They shall be notified to the Commission. Community policy in the sphere of development cooperation, which shall be complementary to the policies pursued by the Member States, shall foster: – the sustainable economic and social development of the developing countries, and more particularly the most disadvantaged among them; – the smooth and gradual integration of the developing countries into the world economy; – the campaign against poverty in the developing countries. Community policy in this area shall contribute to the general objective of developing and consolidating democracy and the rule of law, and to that of respecting human rights and fundamental freedoms. The Community and the Member States shall comply with the commitments and take account of the objectives they have approved in the context of the United Nations and other competent international organisations. The Community shall take account of the objectives referred to in Article 177 in the policies that it implements which are likely to affect developing countries. Without prejudice to the other provisions of this Treaty, the Council, acting in accordance with the procedure referred to in Article 251, shall adopt the measures necessary to further the objectives referred to in Article 177. Such measures may take the form of multiannual programmes. The European Investment Bank shall contribute, under the terms laid down in its Statute, to the implementation of the measures referred to in par agraph 1. The provisions of this Article shall not affect cooperation with the African, Caribbean and Pacific countries in the framework of the ACP-EC Convention. The Community and the Member States shall coordinate their policies on development cooperation and shall consult each other on their aid programmes, including in international organisations and during international conferences. They may undertake joint action. Member States shall contribute if necessary to the implementation of Community aid programmes. The Commission may take any useful initiative to promote the coordination referred to in paragraph 1. Within their respective spheres of competence, the Community and the Member States shall cooperate with third countries and with the competent international organisations. The arrangements for Community cooperation may be the subject of agreements between the Community and the third parties concerned, which shall be negotiated and concluded in accordance with Article 300. The previous paragraph shall be without prejudice to Member States’ competence to negotiate in international bodies and to conclude international agreements. The Member States agree to associate with the Community the non-European countries and territories which have special relations with Denmark, France, the Netherlands and the United Kingdom. These countries and territories (hereinafter called the ‘countries and territories’) are listed in Annex II to this Treaty. The purpose of association shall be to promote the economic and social development of the countries and territories and to establish close economic relations between them and the Community as a whole. In accordance with the principles set out in the Preamble to this Treaty, association shall serve primarily to further the interests and prosperity of the inhabitants of these countries and territories in order to lead them to the economic, social and cultural development to which they aspire. Association shall have the following objectives. (1) Member States shall apply to their trade with the countries and territories the same treatment as they accord each other pursuant to this Treaty. (2) Each country or territory shall apply to its trade with Member States and with the other countries and territories the same treatment as that which it applies to the European State with which is has special relations. (3) The Member States shall contribute to the investments required for the progressive development of these countries and territories. (4) For investments financed by the Community, participation in tenders and supplies shall be open on equal terms to all natural and legal persons who are nationals of a Member State or of one of the countries and territories. (5) In relations between Member States and the countries and territories the right of establishment of nationals and companies or firms shall be regulated in accordance with the provisions and procedures laid down in the Chapter relating to the right of establishment and on a non-discriminatory basis, subject to any special provisions laid down pursuant to Article 187. Customs duties on imports into the Member States of goods originating in the countries and territories shall be prohibited in conformity with the prohibition of customs duties between Member States in accordance with the provisions of this Treaty. Customs duties on imports into each country or territory from Member States or from the other countries or territories shall be prohibited in accordance with the provisions of Article 25. The countries and territories may, however, levy customs duties which meet the needs of their development and industrialisation or produce revenue for their budgets. The duties referred to in the preceding subparagraph may not exceed the level of those imposed on imports of products from the Member State with which each country or territory has special relations. Paragraph 2 shall not apply to countries and territories which, by reason of the particular international obligations by which they are bound, already apply a non-discriminatory customs tariff. The introduction of or any change in customs duties imposed on goods imported into the countries and territories shall not, either in law or in fact, give rise to any direct or indirect discrimination between imports from the various Member States. If the level of the duties applicable to goods from a third country on entry into a country or territory is liable, when the provisions of Article 184(1) have been applied, to cause deflections of trade to the detriment of any Member State, the latter may request the Commission to propose to the other Member States the measures needed to remedy the situation. Subject to the provisions relating to public health, public security or public policy, freedom of movement within Member States for workers from the countries and territories, and within the countries and territories for workers from Member States, shall be governed by agreements to be concluded subsequently with the unanimous approval of Member States. The Council, acting unanimously, shall, on the basis of the experience acquired under the association of the countries and territories with the Community and of the principles set out in this Treaty, lay down provisions as regards the detailed rules and the procedure for the association of the countries and territories with the Community. The provisions of Articles 182 to 187 shall apply to Greenland, subject to the specific provisions for Greenland set out in the Protocol on special arrangements for Greenland, annexed to this Treaty. The European Parliament, which shall cons ist of representatives of the peoples of the States brought together in the Community, shall exercise the powers conferred upon it by this Treaty. The number of Members of the European Parliament shall not exceed seven hundred. The representatives in the European Parliament of the peoples of the States brought together in the Community shall be elected by direct universal suffrage. The number of representatives elected in each Member State shall be as follows: In the event of amendments to this paragraph, the number of representatives elected in each Member State must ensure appropriate representation of the peoples of the States brought together in the Community. Representatives shall be elected for a term of five years. The European Parliament shall draw up a proposal for elections by direct universal suffrage in accordance with a uniform procedure in all Member States or in accordance with principles common to all Member States. The Council shall, acting unanimously after obtaining the assent of the European Parliament, which shall act by a majority of its component members, lay down the appropriate provisions, which it shall recommend to Member States for adoption in accordance with their respective constitutional requirements. The European Parliament shall, after seeking an opinion from the Commission and with the approval of the Council acting unanimously, lay down the regulations and general conditions governing the performance of the duties of its Members. Political parties at European level are important as a factor for integration within the Union. They contribute to forming a European awareness and to expressing the political will of the citizens of the Union. Insofar as provided in this Treaty, the European Parliament shall participate in the process leading up to the adoption of Community acts by exercising its powers under the procedures laid down in Articles 251 and 252 and by giving its assent or delivering advisory opinions. The European Parliament may, acting by a majority of its Members, request the Commission to submit any appropriate proposal on matters on which it considers that a Community act is required for the purpose of implementing this Treaty. In the course of its duties, the European Parliament may, at the request of a quarter of its Members, set up a temporary Committee of Inquiry to investigate, without prejudice to the powers conferred by this Treaty on other institutions or bodies, alleged contraventions or maladministration in the implementation of Community law, except where the alleged facts are being examined before a court and while the case is still subject to legal proceedings. The temporary Committee of Inquiry shall cease to exist on the submission of its report. The detailed provisions governing the exercise of the right of inquiry shall be determined by common accord of the European Parliament, the Council and the Commission. Any citizen of the Union, and any natural or legal person residing or having its registered office in a Member State, shall have the right to address, individually or in association with other citizens or persons, a petition to the European Parliament on a matter which comes within the Community’s fields of activity and which affects him, her or it directly. The European Parliament shall appoint an Ombudsman empowered to receive complaints from any citizen of the Union or any natural or legal person residing or having its registered office in a Member State concerning instances of maladministration in the activities of the Community institutions or bodies, with the exception of the Court of Justice and the Court of First Instance acting in their judicial role. In accordance with his duties, the Ombudsman shall conduct inquiries for which he finds grounds, either on his own initiative or on the basis of complaints submitted to him direct or through a Member of the European Parliament, except where the alleged facts are or have been the subject of legal proceedings. Where the Ombudsman establishes an instance of maladministration, he shall refer the matter to the institution concerned, which shall have a period of three months in which to inform him of its views. The Ombudsman shall then forward a report to the European Parliament and the institution concerned. The person lodging the complaint shall be informed of the outcome of such inquiries. The Ombudsman shall submit an annual report to the European Parliament on the outcome of his inquiries. The Ombudsman shall be appointed after each election of the European Parliament for the duration of its term of office. The Ombudsman shall be eligible for reappointment. The Ombudsman may be dismissed by the Court of Justice at the request of the European Parliament if he no longer fulfils the conditions required for the performance of his duties or if he is guilty of serious misconduct. The Ombudsman shall be completely independent in the performance of his duties. In the performance of those duties he shall neither seek nor take instructions from any body. The Ombudsman may not, during his term of office, engage in any other occupation, whether gainful or not. The European Parliament shall, after seeking an opinion from the Commission and with the approval of the Council acting by a qualified majority, lay down the regulations and general conditions governing the performance of the Ombudsman’s duties. The European Parliament shall hold an annual session. It shall meet, without requiring to be convened, on the second Tuesday in March. The European Parliament may meet in extraordinary session at the request of a majority of its Members or at the request of the Council or of the Commission. The European Parliament shall elect its President and its officers from among its Members. Members of the Commission may attend all meetings and shall, at their request , be heard on behalf of the Commission. The Commission shall reply orally or in writing to questions put to it by the European Parliament or by its Members. The Council shall be heard by the European Parliament in accordance with the conditions laid down by the Council in its Rules of Procedure. Save as otherwise provided in this Treaty, the European Parliament shall act by an absolute majority of the votes cast. The Rules of Procedure shall determine the quorum. The European Parliament shall adopt its Rules of Procedure, acting by a majority of its Members. The proceedings of the European Parliament shall be published in the manner laid down in its Rules of Procedure. The European Parliament shall discuss in open session the annual general report submitted to it by the Commission. If a motion of censure on the activities of the Commission is tabled before it, the European Parliament shall not vote thereon until at least three days after the motion has been tabled and only by open vote. If the motion of censure is carried by a two-thirds majority of the votes cast, representing a majority of the Members of the European Parliament, the Members of the Commission shall resign as a body. They shall continue to deal with current business until they are replaced in accordance with Article 214. In this case, the term of office of the Members of the Commission appointed to replace them shall expire on the date on which the term of office of the Members of the Commission obliged to resign as a body would have expired. To ensure that the objectives set out in this Treaty are attained the Council shall, in accordance with the provisions of this Treaty: – ensure coordination of the general economic policies of the Member States; – have power to take decisions; – confer on the Commission, in the acts which the Council adopts, powers for the implementation of the rules which the Council lays down. The Council may impose certain requirements in respect of the exercise of these powers. The Council may also reserve the right, in specific cases, to exercise directly implementing powers itself. The procedures referred to above must be consonant with principles and rules to be laid down in advance by the Council, acting unanimously on a proposal from the Commission and after obtaining the Opinion of the European Parliament. The Council shall consist of a representative of each Member State at ministerial level, authorised to commit the government of that Member State. The office of President shall be held in turn by each Member State in the Council for a term of six months in the order decided by the Council acting unanimously. The Council shall meet when convened by its President on his own initiative or at the request of one of its members or of the Commission. Save as otherwise provided in this Treaty, the Council shall act by a majority of its members. Where the Council is required to act by a qualified majority, the votes of its members shall be weighted as follows: For their adoption, acts of the Council shall require at least: – 62 votes in favour where this Treaty requires them to be adopted on a proposal from the Commission, – 62 votes in favour, cast by at least 10 members, in other cases. Abstentions by members present in person or represented shall not prevent the adoption by the Council of acts which require unanimity. Where a vote is taken, any member of the Council may also act on behalf of not more than one other member. A committee consisting of the Permanent Representatives of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the Council. The Committee may adopt procedural decisions in cases provided for in the Council’s Rules of Procedure. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-General, High Representative for the common foreign and security policy, who shall be assisted by a Deputy Secretary-General responsible for the running of the General Secretariat. The Secretary-General and the Deputy Secretary-General shall be appointed by the Council acting unanimously. The Council shall decide on the organisation of the General Secretariat. The Council shall adopt its Rules of Procedure. For the purpose of applying Article 255(3), the Council shall elaborate in these Rules the conditions under which the public shall have access to Council documents. For the purpose of this paragraph, the Council shall define the cases in which it is to be regarded as acting in its legislative capacity, with a view to allowing greater access to documents in those cases, while at the same time preserving the effectiveness of its decision-making process. In any event, when the Council acts in its legislative capacity, the results of votes and explanations of vote as well as statements in the minutes shall be made public. The Council may request the Commission to undertake any studies the Council considers desirable for the attainment of the common objectives, and to submit to it any appropriate proposals. The Council shall, after receiving an opinion from the Commission, determine the rules governing the c ommittees provided for in this Treaty. The Council shall, acting by a qualified majority, determine the salaries, allowances and pensions of the President and Members of the Commission, and of the President, Judges, Advocates-General and Registrar of the Court of Justice. It shall also, again by a qualified majority, determine any payment to be made instead of remuneration. In order to ensure the proper functioning and development of the common market, the Commission shall: – ensure that the provisions of this Treaty and the measures taken by the institutions pursuant thereto are applied; – formulate recommendations or deliver opinions on matters dealt with in this Treaty, if it expressly so provides or if the Commission considers it necessary; – have its own power of decision and participate in the shaping of measures taken by the Council and by the European Parliament in the manner provided for in this Treaty; – exercise the powers conferred on it by the Council for the implementation of the rules laid down by the latter. The Commission shall publish annually, not later than one month before the opening of the session of the European Parliament, a general report on the activities of the Community. The Commission shall consist of 20 Members, who shall be chosen on the grounds of their general competence and whose independence is beyond doubt. The number of Members of the Commission may be altered by the Council, acting unanimously. Only nationals of Member States may be Members of the Commission. The Commission must include at least one national of each of the Member States, but may not include more than two Members having the nationality of the same State. The Members of the Commission shall, in the general interest of the Community, be completely independent in the performance of their duties. In the performance of these duties, they shall neither seek nor take instructions from any government or from any other body. They shall refrain from any action incompatible with their duties. Each Member State undertakes to respect this principle and not to seek to influence the Members of the Commission in the performance of their tasks. The Members of the Commission may not, during their term of office, engage in any other occupation, whether gainful or not. When entering upon their duties they shall give a solemn undertaking that, both during and after their term of office, they will respect the obligations arising therefrom and in particular their duty to behave with integrity and discretion as regards the acceptance, after they have ceased to hold office, of certain appointments or benefits. In the event of any breach of these obligations, the Court of Justice may, on application by the Council or the Commission, rule that the Member concerned be, according to the circumstances, either compulsorily retired in accordance with Article 216 or deprived of his right to a pension or other benefits in its stead. The Members of the Commission shall be appointed, in accordance with the procedure referred to in paragraph 2, for a period of five years, subject, if need be, to Article 201. Their term of office shall be renewable. The governments of the Member States shall nominate by common accord the person they intend to appoint as President of the Commission; the nomination shall be approved by the European Parliament. The governments of the Member States shall, by common accord with the nominee for President, nominate the other persons whom they intend to appoint as Members of the Commission. The President and the other Members of the Commission thus nominated shall be subject as a body to a vote of approval by the European Parliament. After approval by the European Parliament, the President and the other Members of the Commission shall be appointed by common accord of the governments of the Member States. Apart from normal replacement, or death, the duties of a Member of the Commission shall end when he resigns or is compulsorily retired. The vacancy thus caused shall be filled for the remainder of the Member’s term of office by a new Member appointed by common accord of the governments of the Member States. The Council may, acting unanimously, decide that such a vacancy need not be filled. In the event of resignation, compulsory retirement or death, the President shall be replaced for the remainder of his term of office. The procedure laid down in Article 214(2) shall be applicable for the replacement of the President. Save in the case of compulsory retirement under Article 216, Members of the Commission shall remain in office until they have been replaced. If any Member of the Commission no longer fulfils the conditions required for the performance of his duties or if he has been guilty of serious misconduct, the Court of Justice may, on application by the Council or the Commission, compulsorily retire him. The Commission may appoint a Vice-President or two Vice-Presidents from among its Members. The Council and the Commission shall consult each other and shall settle by common accord their methods of cooperation. The Commission shall adopt its Rules of Procedure so as to ensure that both it and its departments operate in accordance with the provisions of this Treaty. It shall ensure that these rules are published. The Commission shall work under the political guidance of its President. The Commission shall act by a majority of the number of Members provided for in Article 213. A meeting of the Commission shall be valid only if the number of Members laid down in its Rules of Procedure is present. The Court of Justice shall ensure that in the interpretation and application of this Treaty the law is observed. The Court of Justice shall co nsist of 15 Judges. The Court of Justice shall sit in plenary session. It may, however, form chambers, each consisting of three, five or seven Judges, either to undertake certain preparatory inquiries or to adjudicate on particular categories of cases in accordance with rules laid down for these purposes. The Court of Justice shall sit in plenary session when a Member State or a Community institution that is a party to the proceedings so requests. Should the Court of Justice so request, the Council may, acting unanimously, increase the number of Judges and make the necessary adjustments to the second and third paragraphs of this Article and to the second paragraph of Article 223. The Court of Justice shall be assisted by eight Advocates-General. However, a ninth Advocate-General shall be appointed as from 1 January 1995 until 6 October 2000. It shall be the duty of the Advocate-General, acting with complete impartiality and independence, to make, in open court, reasoned submissions on cases brought before the Court of Justice, in order to assist the Court in the performance of the task assigned to it in Article 220. Should the Court of Justice so request, the Council may, acting unanimously, increase the number of Advocates-General and make the necessary adjustments to the third paragraph of Article 223. The Judges and Advocates-General shall be chosen from persons whose independence is beyond doubt and who possess the qualifications required for appointment to the highest judicial offices in their respective countries or who are jurisconsults of recognised competence; they shall be appointed by common accord of the governments of the Member States for a term of six years. Every three years there shall be a partial replacement of the Judges. Eight and seven Judges shall be replaced alternately. Every three years there shall be a partial replacement of the Advocates-General. Four Advocates-General shall be replaced on each occasion. Retiring Judges and Advocates-General shall be eligible for reappointment. The Judges shall elect the President of the Court of Justice from among their number for a term of three years. He may be re-elected. The Court of Justice shall appoint its Registrar and lay down the rules governing his service. A Court of First Instance shall be attached to the Court of Justice with jurisdiction to hear and determine at first instance, subject to a right of appeal to the Court of Justice on points of law only and in accordance with the conditions laid down by the Statute, certain classes of action or proceeding defined in accordance with the conditions laid down in paragraph 2. The Court of First Instance shall not be competent to hear and determine questions referred for a preliminary ruling under Article 234. At the request of the Court of Justice and after consulting the European Parliament and the Commission, the Council, acting unanimously, shall determine the classes of action or proceeding referred to in paragraph 1 and the composition of the Court of First Instance and shall adopt the necessary adjustments and additional provisions to the Statute of the Court of Justice. Unless the Council decides otherwise, the provisions of this Treaty relating to the Court of Justice, in particular the provisions of the Protocol on the Statute of the Court of Justice, shall apply to the Court of First Instance. The members of the Court of First Instance shall be chosen from persons whose independence is beyond doubt and who possess the ability required for appointment to judicial office; they shall be appointed by common accord of the governments of the Member States for a term of six years. The membership shall be partially renewed every three years. Retiring members shall be eligible for reappointment. The Court of First Instance shall establish its Rules of Procedure in agreement with the Court of Justice. Those rules shall require the unanimous approval of the Council. If the Commission considers that a Member State has failed to fulfil an obligation under this Treaty, it shall deliver a reasoned opinion on the matter after giving the State concerned the opportunity to submit its observations. If the State concerned does not comply with the opinion within the period laid down by the Commission, the latter may bring the matter before the Court of Justice. A Member State which considers that another Member State has failed to fulfil an obligation under this Treaty may bring the matter before the Court of Justice. Before a Member State brings an action against another Member State for an alleged infringement of an obligation under this Treaty, it shall bring the matter before the Commission. The Commission shall deliver a reasoned opinion after each of the States concerned has been given the opportunity to submit its own case and its observations on the other party’s case both orally and in writing. If the Commission has not delivered an opinion within three months of the date on which the matter was brought before it, the absence of such opinion shall not prevent the matter from being brought before the Court of Justice. If the Court of Justice finds that a Member State has failed to fulfil an obligation under this Treaty, the State shall be required to take the necessary measures to comply with the judgment of the Court of Justice. If the Commission considers that the Member State concerned has not taken such measures it shall, after giving that State the opportunity to submit its observations, issue a reasoned opinion specifying the points on which the Member State concerned has not complied with the judgment of the Court of Justice. If the Member State concerned fails to take the necessary measures to comply with the Court’s judgment within the time-limit laid down by the Commission, the latter may bring the case before the Court of Justice. In so doing it shall specify the amount of the lump sum or penalty payment to be paid by the Member State concerned which it considers appropriate in the circumstances. If the Court of Justice finds that the Member State concerned has not complied with its judgment it may impose a lump sum or penalty payment on it. This procedure shall be without prejudice to Article 227. Regulations adopted jointly by the European Parliament and the Council, and by the Council, pursuant to the provisions of this Treaty, may give the Court of Justice unlimited jurisdiction with regard to the penalties provided for in such regulations. The Court of Justice shall review the legality of acts adopted jointly by the European Parliament and the Council, of acts of the Council, of the Commission and of the ECB, other than recommendations and opinions, and of acts of the European Parliament intended to produce legal effects vis-à-vis third parties. It shall for this purpose have jurisdiction in actions brought by a Member State, the Council or the Commission on grounds of lack of competence, infringement of an essential procedural requirement, infringement of this Treaty or of any rule of law relating to its application, or misuse of powers. The Court of Justice shall have jurisdiction under the same conditions in actions brought by the European Parliament, by the Court of Auditors and by the ECB for the purpose of protecting their prerogatives. Any natural or legal person may, under the same conditions, institute proceedings against a decision addressed to that person or against a decision which, although in the form of a regulation or a decision addressed to another person, is of direct and individual concern to the former. The proceedings provided for in this Article shall be instituted within two months of the publication of the measure, or of its notification to the plaintiff, or, in the absence thereof, of the day on which it came to the knowledge of the latter, as the case may be. If the action is well founded, the Court of Justice shall declare the act concerned to be void. In the case of a regulation, however, the Court of Justice shall, if it considers this necessary, state which of the effects of the regulation which it has declared void shall be considered as definitive. Should the European Parliament, the Council or the Commission, in infringement of this Treaty, fail to act, the Member States and the other institutions of the Community may bring an action before the Court of Justice to have the infringement established. The action shall be admissible only if the institution concerned has first been called upon to act. If, within two months of being so called upon, the institution concerned has not defined its position, the action may be brought within a further period of two months. Any natural or legal person may, under the conditions laid down in the preceding paragraphs, complain to the Court of Justice that an institution of the Community has failed to address to that person any act other than a recommendation or an opinion. The Court of Justice shall have jurisdiction, under the same conditions, in actions or proceedings brought by the ECB in the areas falling within the latter’s field of competence and in actions or proceedings brought against the latter. The institution or institutions whose act has been declared void or whose failure to act has been declared contrary to this Treaty shall be required to take the necessary measures to comply with the judgment of the Court of Justice. This obligation shall not affect any obligation which may result from the application of the second paragraph of Article 288. This Article shall also apply to the ECB. The Court of Justice shall have jurisdiction to give preliminary rulings concerning: (a) the interpretation of this Treaty; (b) the validity and interpretation of acts of the institutions of the Community and of the ECB; (c) the interpretation of the statutes of bodies established by an act of the Council, where those statutes so provide. Where such a question is raised before any court or tribunal of a Member State, that court or tribunal may, if it considers that a decision on the question is necessary to enable it to give judgment, request the Court of Justice to give a ruling thereon. Where any such question is raised in a case pending before a court or tribunal of a Member State against whose decisions there is no judicial remedy under national law, that court or tribunal shall bring the matter before the Court of Justice. The Court of Justice shall have jurisdiction in disputes relating to compensation for damage provided for in the second paragraph of Article 288. The Court of Justice shall have jurisdiction in any dispute between the Community and its servants within the limits and under the conditions laid down in the Staff Regulations or the Conditions of Employment. The Court of Justice shall, within the limits hereinafter laid down, have jurisdiction in disputes concerning: (a) the fulfilment by Member States of obligations under the Statute of the European Investment Bank. In this connection, the Board of Directors of the Bank shall enjoy the powers conferred upon the Commission by Article 226; (b) measures adopted by the Board of Governors of the European Investment Bank. In this connection, any Member State, the Commission or the Board of Directors of the Bank may institute proceedings under the conditions laid down in Article 230; (c) measures adopted by the Board of Directors of the European Investment Bank. Proceedings against such measures may be instituted only by Member States or by the Commission, under the conditions laid down in Article 230, and solely on the grounds of non-compliance with the procedure provided for in Article 21(2), (5), (6) and (7) of the Statute of the Bank; (d) the fulfilment by national central banks of obligations under this Treaty and the Statute of the ESCB. In this connection the powers of the Council of the ECB in respect of national central banks shall be the same as those conferred upon the Commission in respect of Member States by Article 226. If the Court of Justice finds that a national central bank has failed to fulfil an obligation under this Treaty, that bank shall be required to take the necessary measures to comply with the judgment of the Court of Justice. The Court of Justice shall have jurisdiction to give judgment pursuant to any arbitration clause contained in a contract concluded by or on behalf of the Community, whether that contract be governed by public or private law. The Court of Justice shall have jurisdiction in any dispute between Member States which relates to the subject matter of this Treaty if the dispute is submitted to it under a special agreement between the parties. Save where jurisdiction is conferred on the Court of Justice by this Treaty, disputes to which the Community is a party shall not on that ground be excluded from the jurisdiction of the courts or tribunals of the Member States. Notwithstanding the expiry of the period laid down in the fifth paragraph of Article 230, any party may, in proceedings in which a regulation adopted jointly by the European Parliament and the Council, or a regulation of the Council, of the Commission, or of the ECB is at issue, plead the grounds specified in the second paragraph of Article 230 in order to invoke before the Court of Justice the inapplicability of that regulation. Actions brought before the Court of Justice shall not have suspensory effect. The Court of Justice may, however, if it considers that circumstances so require, order that application of the contested act be suspended. The Court of Justice may in any cases before it prescribe any necessary interim measures. The judgments of the Court of Justice shall be enforceable under the conditions laid down in Article 256. The Statute of the Court of Justice is laid down in a separate Protocol. The Council may, acting unanimously at the request of the Court of Justice and after consulting the Commission and the European Parliament, amend the provisions of Title III of the Statute. The Court of Justice shall adopt its Rules of Procedure. These shall require the unanimous approval of the Council. The Court of Auditors shall carry out the audit. The Court of Auditors shall consist of 15 Members. The Members of the Court of Auditors shall be chosen from among persons who belong or have belonged in their respective countries to external audit bodies or who are especially qualified for this office. Their independence must be beyond doubt. The Members of the Court of Auditors shall be appointed for a term of six years by the Council, acting unanimously after consulting the European Parliament. The Members of the Court of Auditors shall be eligible for reappointment. They shall elect the President of the Court of Auditors from among their number for a term of three years. The President may be re-elected. The Members of the Court of Auditors shall, in the general interest of the Community, be completely independent in the performance of their duties. In the performance of these duties, they shall neither seek nor take instructions from any government or from any other body. They shall refrain from any action incompatible with their duties. The Members of the Court of Auditors may not, during their term of office, engage in any other occupation, whether gainful or not. When entering upon their duties they shall give a solemn undertaking that, both during and after their term of office, they will respect the obligations arising therefrom and in particular their duty to behave with integrity and discretion as regards the acceptance, after they have ceased to hold office, of certain appointments or benefits. Apart from normal replacement, or death, the duties of a Member of the Court of Auditors shall end when he resigns, or is compulsorily retired by a ruling of the Court of Justice pursuant to paragraph 7. The vacancy thus caused shall be filled for the remainder of the Member’s term of office. Save in the case of compulsory retirement, Members of the Court of Auditors shall remain in office until they have been replaced. A Member of the Court of Auditors may be deprived of his office or of his right to a pension or other benefits in its stead only if the Court of Justice, at the request of the Court of Auditors, finds that he no longer fulfils the requisite conditions or meets the obligations arising from his office. The Council, acting by a qualified majority, shall determine the conditions of employment of the President and the Members of the Court of Auditors and in particular their salaries, allowances and pensions. It shall also, by the same majority, determine any payment to be made instead of remuneration. The provisions of the Protocol on the privileges and immunities of the European Communities applicable to the Judges of the Court of Justice shall also apply to the Members of the Court of Auditors. The Court of Auditors shall examine the accounts of all revenue and expenditure of the Community. It shall also examine the accounts of all revenue and expenditure of all bodies set up by the Community insofar as the relevant constituent instrument does not preclude such examination. The Court of Auditors shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions which shall be published in the Official Journal of the European Communities. The Court of Auditors shall examine whether all revenue has been received and all expenditure incurred in a lawful and regular manner and whether the financial management has been sound. In doing so, it shall report in particular on any cases of irregularity. The audit of revenue shall be carried out on the basis both of the amounts established as due and the amounts actually paid to the Community. The audit of expenditure shall be carried out on the basis both of commitments undertaken and payments made. These audits may be carried out before the closure of accounts for the financial year in question. The audit shall be based on records and, if necessary, performed on the spot in the other institutions of the Community, on the premises of any body which manages revenue or expenditure on behalf of the Community and in the Member States, including on the premises of any natural or legal person in receipt of payments from the budget. In the Member States the audit shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent national departments. The Court of Auditors and the national audit bodies of the Member States shall cooperate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The other institutions of the Community, any bodies managing revenue or expenditure on behalf of the Community, any natural or legal person in receipt of payments from the budget, and the national audit bodies or, if these do not have the necessary powers, the competent national departments, shall forward to the Court of Auditors, at its request, any document or information necessary to carry out its task. In respect of the European Investment Bank’s activity in managing Community expenditure and revenue, the Court’s rights of access to information held by the Bank shall be governed by an agreement between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall nevertheless have access to information necessary for the audit of Community expenditure and revenue managed by the Bank. The Court of Auditors shall draw up an annual report after the close of each financial year. It shall be forwarded to the other institutions of the Community and shall be published, together with the replies of these institutions to the observations of the Court of Auditors, in the Official Journal of the European Communities. The Court of Auditors may also, at any time, submit observations, particularly in the form of special reports, on specific questions and deliver opinions at the request of one of the other institutions of the Community. It shall adopt its annual reports, special reports or opinions by a majority of its Members. It shall assist the European Parliament and the Council in exercising their powers of control over the implementation of the budget. In order to carry out their task and in accordance with the provisions of this Treaty, the European Parliament acting jointly with the Council, the Council and the Commission shall make regulations and issue directives, take decisions, make recommendations or deliver opinions. A regulation shall have general application. It shall be binding in its entirety and directly applicable in all Member States. A directive shall be binding, as to the result to be achieved, upon each Member State to which it is addressed, but shall leave to the national authorities the choice of form and methods. A decision shall be binding in its entirety upon those to whom it is addressed. Recommendations and opinions shall have no binding force. Where, in pursuance of this Treaty, the Council acts on a proposal from the Commission, unanimity shall be required for an act constituting an amendment to that proposal, subject to Article 251(4) and (5). As long as the Council has not acted, the Commission may alter its proposal at any time during the procedures leading to the adoption of a Community act. Where reference is made in this Treaty to this Article for the adoption of an act, the following procedure shall apply. The Commission shall submit a proposal to the European Parliament and the Council. The Council, acting by a qualified majority after obtaining the opinion of the European Parliament, – if it approves all the amendments contained in the European Parliament’s opinion, may adopt the proposed act thus amended; – if the European Parliament does not propose any amendments, may adopt the proposed act; – shall otherwise adopt a common position and communicate it to the European Parliament. The Council shall inform the European Parliament fully of the reasons which led it to adopt its common position. The Commission shall inform the European Parliament fully of its position. If, within three months of such communication, the European Parliament: (a) approves the common position or has not taken a decision, the act in question shall be deemed to have been adopted in accordance with that common position; (b) rejects, by an absolute majority of its component members, the common position, the proposed act shall be deemed not to have been adopted; (c) proposes amendments to the common position by an absolute majority of its component members, the amended text shall be forwarded to the Council and to the Commission, which shall deliver an opinion on those amendments. If, within three months of the matter being referred to it, the Council, acting by a qualified majority, approves all the amendments of the European Parliament, the act in question shall be deemed to have been adopted in the form of the common position thus amended; however, the Council shall act unanimously on the amendments on which the Commission has delivered a negative opinion. If the Council does not approve all the amendments, the President of the Council, in agreement with the President of the European Parliament, shall within six weeks convene a meeting of the Conciliation Committee. The Conciliation Committee, which shall be composed of the members of the Council or their representatives and an equal number of representatives of the European Parliament, shall have the task of reaching agreement on a joint text, by a qualified majority of the members of the Council or their representatives and by a majority of the representatives of the European Parliament. The Commission shall take part in the Conciliation Committee’s proceedings and shall take all the necessary initiatives with a view to reconciling the positions of the European Parliament and the Council. In fulfilling this task, the Conciliation Committee shall address the common position on the basis of the amendments proposed by the European Parliament. If, within six weeks of its being convened, the Conciliation Committee approves a joint text, the European Parliament, acting by an absolute majority of the votes cast, and the Council, acting by a qualified majority, shall each have a period of six weeks from that approval in which to adopt the act in question in accordance with the joint text. If either of the two institutions fails to approve the proposed act within that period, it shall be deemed not to have been adopted. Where the Conciliation Committee does not approve a joint text, the proposed act shall be deemed not to have been adopted. The periods of three months and six weeks referred to in this Article shall be extended by a maximum of one month and two weeks respectively at the initiative of the European Parliament or the Council. Where reference is made in this Treaty to this Article for the adoption of an act, the following procedure shall apply: (a) The Council, acting by a qualified majority on a proposal from the Commission and after obtaining the opinion of the European Parliament, shall adopt a common position. (b) The Council’s common position shall be communicated to the European Parliament. The Council and the Commission shall inform the European Parliament fully of the reasons which led the Council to adopt its common position and also of the Commission’s position. If, within three months of such communication, the European Parliament approves this common position or has not taken a decision within that period, the Council shall definitively adopt the act in question in accordance with the common position. (c) The European Parliament may, within the period of three months referred to in point (b), by an absolute majority of its component Members, propose amendments to the Council’s common position. The European Parliament may also, by the same majority, reject the Council’s common position. The result of the proceedings shall be transmitted to the Council and the Commission. If the European Parliament has rejected the Council’s common position, unanimity shall be required for the Council to act on a second reading. (d) The Commission shall, within a period of one month, re-examine the proposal on the basis of which the Council adopted its common position, by taking into account the amendments proposed by the European Parliament. The Commission shall forward to the Council, at the same time as its re-examined proposal, the amendments of the European Parliament which it has not accepted, and shall express its opinion on them. The Council may adopt these amendments unanimously. (e) The Council, acting by a qualified majority, shall adopt the proposal as re-examined by the Commission. Unanimity shall be required for the Council to amend the proposal as re-examined by the Commission. (f) In the cases referred to in points (c), (d) and (e), the Council shall be required to act within a period of three months. If no decision is taken within this period, the Commission proposal shall be deemed not to have been adopted. (g) The periods referred to in points (b) and (f) may be extended by a maximum of one month by common accord between the Council and the European Parliament. Regulations, directives and decisions adopted jointly by the European Parliament and the Council, and such acts adopted by the Council or the Commission, shall state the reasons on which they are based and shall refer to any proposals or opinions which were required to be obtained pursuant to this Treaty. Regulations, directives and decisions adopted in accordance with the procedure referred to in Article 251 shall be signed by the President of the European Parliament and by the President of the Council and published in the Official Journal of the European Communities. They shall enter into force on the date specified in them or, in the absence thereof, on the twentieth day following that of their publication. Regulations of the Council and of the Commission, as well as directives of those institutions which are addressed to all Member States, shall be published in the Official Journal of the European Communities. They shall enter into force on the date specified in them or, in the absence thereof, on the twentieth day following that of their publication. Other directives, and decisions, shall be notified to those to whom they are addressed and shall take effect upon such notification. Any citizen of the Union, and any natural or legal person residing or having its registered office in a Member State, shall have a right of access to European Parliament, Council and Commission documents, subject to the principles and the conditions to be defined in accordance with paragraphs 2 and 3. General principles and limits on grounds of public or private interest governing this right of access to documents shall be determined by the Council, acting in accordance with the procedure referred to in Article 251 within two years of the entry into force of the Treaty of Amsterdam. Each institution referred to above shall elaborate in its own Rules of Procedure specific provisions regarding access to its documents. Decisions of the Council or of the Commission which impose a pecuniary obligation on persons other than States, shall be enforceable. Enforcement shall be governed by the rules of civil procedure in force in the State in the territory of which it is carried out. The order for its enforcement shall be appended to the decision, without other formality than verification of the authenticity of the decision, by the national authority which the government of each Member State shall designate for this purpose and shall make known to the Commission and to the Court of Justice. When these formalities have been completed on application by the party concerned, the latter may proceed to enforcement in accordance with the national law, by bringing the matter directly before the competent authority. Enforcement may be suspended only by a decision of the Court of Justice. However, the courts of the country concerned shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner. An Economic and Social Committee is hereby established. It shall have advisory status. The Committee shall consist of representatives of the various categories of economic and social activity, in particular, representatives of producers, farmers, carriers, workers, dealers, craftsmen, professional occupations and representatives of the general public. The number of members of the Economic and Social Committee shall be as follows: The members of the Committee shall be appointed by the Council, acting unanimously, for four years. Their appointments shall be renewable. The members of the Committee may not be bound by any mandatory instructions. They shall be completely independent in the performance of their duties, in the general interest of the Community. The Council, acting by a qualified majority, shall determine the allowances of members of the Committee. For the appointment of the members of the Committee, each Member State shall provide the Council with a list containing twice as many candidates as there are seats allotted to its nationals. The composition of the Committee shall take account of the need to ensure adequate representation of the various categories of economic and social activity. The Council shall consult the Commission. It may obtain the opinion of European bodies which are representative of the various economic and social sectors to which the activities of the Community are of concern. The Committee shall elect its chairman and officers from among its members for a term of two years. It shall adopt its Rules of Procedure. The Committee shall be convened by its chairman at the request of the Council or of the Commission. It may also meet on its own initiative. The Committee shall include specialised sections for the principal fields covered by this Treaty. These specialised sections shall operate within the general terms of reference of the Committee. They may not be consulted independently of the Committee. Subcommittees may also be established within the Committee to prepare on specific questions or in specific fields, draft opinions to be submitted to the Committee for its consideration. The Rules of Procedure shall lay down the methods of composition and the terms of reference of the specialised sections and of the subcommittees. The Committee must be consulted by the Council or by the Commission where this Treaty so provides. The Committee may be consulted by these institutions in all cases in which they consider it appropriate. It may issue an opinion on its own initiative in cases in which it considers such action appropriate. The Council or the Commission shall, if it considers it necessary, set the Committee, for the submission of its opinion, a time-limit which may not be less than one month from the date on which the chairman receives notification to this effect. Upon expiry of the time-limit, the absence of an opinion shall not prevent further action. The opinion of the Committee and that of the specialised section, together with a record of the proceedings, shall be forwarded to the Council and to the Commission. The Committee may be consulted by the European Parliament. A Committee consisting of representatives of regional and local bodies, hereinafter referred to as ‘the Committee of the Regions’, is hereby established with advisory status. The number of members of the Committee of the Regions shall be as follows: The members of the Committee and an equal number of alternate members shall be appointed for four years by the Council acting unanimously on proposals from the respective Member States. Their term of office shall be renewable. No member of the Committee shall at the same time be a Member of the European Parliament. The members of the Committee may not be bound by any mandatory instructions. They shall be completely independent in the performance of their duties, in the general interest of Community. The Committee of the Regions shall elect its chairman and officers from among its members for a term of two years. It shall adopt its Rules of Procedure. The Committee shall be convened by its chairman at the request of the Council or of the Commission. It may also meet on its own initiative. The Committee of the Regions shall be consulted by the Council or by the Commission where this Treaty so provides and in all other cases, in particular those which concern cross-border cooperation, in which one of these two institutions considers it appropriate. The Council or the Commission shall, if it considers it necessary, set the Committee, for the submission of its opinion, a time-limit which may not be less than one month from the date on which the chairman receives notification to this effect. Upon expiry of the time-limit, the absence of an opinion shall not prevent further action. Where the Economic and Social Committee is consulted pursuant to Article 262, the Committee of the Regions shall be informed by the Council or the Commission of the request for an opinion. Where it considers that specific regional interests are involved, the Committee of the Regions may issue an opinion on the matter. The Committee of the Regions may be consulted by the European Parliament. It may issue an opinion on its own initiative in cases in which it considers such action appropriate. The opinion of the Committee, together with a record of the proceedings, shall be forwarded to the Council and to the Commission. The European Investment Bank shall have legal personality. The members of the European Investment Bank shall be the Member States. The Statute of the European Investment Bank is laid down in a Protocol annexed to this Treaty. The task of the European Investment Bank shall be to contribute, by having recourse to the capital market and utilising its own resources, to the balanced and steady development of the common market in the interest of the Community. For this purpose the Bank shall, operating on a non-profit-making basis, grant loans and give guarantees which facilitate the financing of the following projects in all sectors of the economy: (a) projects for developing less-developed regions; (b) projects for modernising or converting undertakings or for developing fresh activities called for by the progressive establishment of the common market, where these projects are of such a size or nature that they cannot be entirely financed by the various means available in the individual Member States; (c) projects of common interest to several Member States which are of such a size or nature that they cannot be entirely financed by the various means available in the individual Member States. In carrying out its task, the Bank shall facilitate the financing of investment programmes in conjunction with assistance from the Structural Funds and other Community financial instruments. All items of revenue and expenditure of the Community, including tho se relating to the European Social Fund, shall be included in estimates to be drawn up for each financial year and shall be shown in the budget. Administrative expenditure occasioned for the institutions by the provisions of the Treaty on European Union relating to common foreign and security policy and to cooperation in the fields of justice and home affairs shall be charged to the budget. The operational expenditure occasioned by the implementation of the said provisions may, under the conditions referred to therein, be charged to the budget. The revenue and expenditure shown in the budget shall be in balance. Without prejudice to other revenue, the budget shall be financed wholly from own resources. The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, shall lay down provisions relating to the system of own resources of the Community, which it shall recommend to the Member States for adoption in accordance with their respective constitutional requirements. With a view to maintaining budgetary discipline, the Commission shall not make any proposal for a Community act, or alter its proposals, or adopt any implementing measure which is likely to have appreciable implications for the budget without providing the assurance that that proposal or that measure is capable of being financed within the limit of the Community’s own resources arising under provisions laid down by the Council pursuant to Article 269. The expenditure shown in the budget shall be authorised for one financial year, unless the regulations made pursuant to Article 279 provide otherwise. In accordance with conditions to be laid down pursuant to Article 279, any appropriations, other than those relating to staff expenditure, that are unexpended at the end of the financial year may be carried forward to the next financial year only. Appropriations shall be classified under different chapters grouping items of expenditure according to their nature or purpose and subdivided, as far as may be necessary, in accordance with the regulations made pursuant to Article 279. The expenditure of the European Parliament, the Council, the Commission and the Court of Justice shall be set out in separate parts of the budget, without prejudice to special arrangements for certain common items of expenditure. The financial year shall run from 1 January to 31 December. Each institution of the Community shall, before 1 July, draw up estimates of its expenditure. The Commission shall consolidate these estimates in a preliminary draft budget. It shall attach thereto an opinion which may contain different estimates. The preliminary draft budget shall contain an estimate of revenue and an estimate of expenditure. The Commission shall place the preliminary draft budget before the Council not later than 1 September of the year preceding that in which the budget is to be implemented. The Council shall consult the Commission and, where appropriate, the other institutions concerned whenever it intends to depart from the preliminary draft budget. The Council, acting by a qualified majority, shall establish the draft budget and forward it to the European Parliament. The draft budget shall be placed before the European Parliament not later than 5 October of the year preceding that in which the budget is to be implemented. The European Parliament shall have the right to amend the draft budget, acting by a majority of its Members, and to propose to the Council, acting by an absolute majority of the votes cast, modifications to the draft budget relating to expenditure necessarily resulting from this Treaty or from acts adopted in accordance therewith. If, within 45 days of the draft budget being placed before it, the European Parliament has given its approval, the budget shall stand as finally adopted. If within this period the European Parliament has not amended the draft budget nor proposed any modifications thereto, the budget shall be deemed to be finally adopted. If within this period the European Parliament has adopted amendments or proposed modifications, the draft budget together with the amendments or proposed modifications shall be forwarded to the Council. After discussing the draft budget with the Commission and, where appropriate, with the other institutions concerned, the Council shall act under the following conditions: (a) the Council may, acting by a qualified majority, modify any of the amendments adopted by the European Parliament; (b) with regard to the proposed modifications: – where a modification proposed by the European Parliament does not have the effect of increasing the total amount of the expenditure of an institution, owing in particular to the fact that the increase in expenditure which it would involve would be expressly compensated by one or more proposed modifications correspondingly reducing expenditure, the Council may, acting by a qualified majority, reject the proposed modification. In the absence of a decision to reject it, the proposed modification shall stand as accepted; – where a modification proposed by the European Parliament has the effect of increasing the total amount of the expenditure of an institution, the Council may, acting by a qualified majority, accept this proposed modification. In the absence of a decision to accept it, the proposed modification shall stand as rejected; – where, in pursuance of one of the two preceding subparagraphs, the Council has rejected a proposed modification, it may, acting by a qualified majority, either retain the amount shown in the draft budget or fix another amount. The draft budget shall be modified on the basis of the proposed modifications accepted by the Council. If, within 15 days of the draft being placed before it, the Council has not modified any of the amendments adopted by the European Parliament and if the modifications proposed by the latter have been accepted, the budget shall be deemed to be finally adopted. The Council shall inform the European Parliament that it has not modified any of the amendments and that the proposed modifications have been accepted. If within this period the Council has modified one or more of the amendments adopted by the European Parliament or if the modifications proposed by the latter have been rejected or modified, the modified draft budget shall again be forwarded to the European Parliament. The Council shall inform the European Parliament of the results of its deliberations. Within 15 days of the draft budget being placed before it, the European Parliament, which shall have been notified of the action taken on its proposed modifications, may, acting by a majority of its Members and three-fifths of the votes cast, amend or reject the modifications to its amendments made by the Council and shall adopt the budget accordingly. If within this period the European Parliament has not acted, the budget shall be deemed to be finally adopted. When the procedure provided for in this Article has been completed, the President of the European Parliament shall declare that the budget has been finally adopted. However, the European Parliament, acting by a majority of its Members and two-thirds of the votes cast, may, if there are important reasons, reject the draft budget and ask for a new draft to be submitted to it. 9. A maximum rate of increase in relation to the expenditure of the same type to be incurred during the current year shall be fixed annually for the total expenditure other than that necessarily resulting from this Treaty or from acts adopted in accordance therewith. The Commission shall, after consulting the Economic Policy Committee, declare what this maximum rate is as it results from: – the trend, in terms of volume, of the gross national product within the Community; – the average variation in the budgets of the Member States; and – the trend of the cost of living during the preceding financial year. The maximum rate shall be communicated, before 1 May, to all the institutions of the Community. The latter shall be required to conform to this during the budgetary procedure, subject to the provisions of the fourth and fifth subparagraphs of this paragraph. If, in respect of expenditure other than that necessarily resulting from this Treaty or from acts adopted in accordance therewith, the actual rate of increase in the draft budget established by the Council is over half the maximum rate, the European Parliament may, exercising its right of amendment, further increase the total amount of that expenditure to a limit not exceeding half the maximum rate. Where the European Parliament, the Council or the Commission consider that the activities of the Communities require that the rate determined according to the procedure laid down in this paragraph should be exceeded, another rate may be fixed by agreement between the Council, acting by a qualified majority, and the European Parliament, acting by a majority of its Members and three-fifths of the votes cast. Each institution shall exercise the powers conferred upon it by this Article, with due regard for the provisions of the Treaty and for acts adopted in accordance therewith, in particular those relating to the Communities’ own resources and to the balance between revenue and expenditure. If, at the beginning of a financial year, the budget has not yet been voted, a sum equivalent to not more than one-twelfth of the budget appropriations for the preceding financial year may be spent each month in respect of any chapter or other subdivision of the budget in accordance with the provisions of the Regulations made pursuant to Article 279; this arrangement shall not, however, have the effect of placing at the disposal of the Commission appropriations in excess of one-twelfth of those provided for in the draft budget in course of preparation. The Council may, acting by a qualified majority, provided that the other conditions laid down in the first subparagraph are observed, authorise expenditure in excess of one-twelfth. If the decision relates to expenditure which does not necessarily result from this Treaty or from acts adopted in accordance therewith, the Council shall forward it immediately to the European Parliament; within 30 days the European Parliament, acting by a majority of its Members and three-fifths of the votes cast, may adopt a different decision on the expenditure in excess of the one-twelfth referred to in the first subparagraph. This part of the decision of the Council shall be suspended until the European Parliament has taken its decision. If within the said period the European Parliament has not taken a decision which differs from the decision of the Council, the latter shall be deemed to be finally adopted. The decisions referred to in the second and third subparagraphs shall lay down the necessary measures relating to resources to ensure application of this Article. The Commission shall implement the budget, in accordance with the provisions of the regulations made pursuant to Article 279, on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial management. Member States shall cooperate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management. The regulations shall lay down detailed rules for each institution concerning its part in effecting its own expenditure. Within the budget, the Commission may, subject to the limits and conditions laid down in the regulations made pursuant to Article 279, transfer appropriations from one chapter to another or from one subdivision to another. The Commission shall submit annually to the Council and to the European Parliament the accounts of the preceding financial year relating to the implementation of the budget. The Commission shall also forward to them a financial statement of the assets and liabilities of the Community. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give a discharge to the Commission in respect of the implementation of the budget. To this end, the Council and the European Parliament in turn shall examine the accounts and the financial statement referred to in Article 275, the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, the statement of assurance referred to in Article 248(1), second subparagraph and any relevant special reports by the Court of Auditors. Before giving a discharge to the Commission, or for any other purpose in connection with the exercise of its powers over the implementation of the budget, the European Parliament may ask to hear the Commission give evidence with regard to the execution of expenditure or the operation of financial control systems. The Commission shall submit any necessary information to the European Parliament at the latter’s request. The Commission shall take all appropriate steps to act on the observations in the decisions giving discharge and on other observations by the European Parliament relating to the execution of expenditure, as well as on comments accompanying the recommendations on discharge adopted by the Council. At the request of the European Parliament or the Council, the Commission shall report on the measures taken in the light of these observations and comments and in particular on the instructions given to the departments which are responsible for the implementation of the budget. These reports shall also be forwarded to the Court of Auditors. The budget shall be drawn up in the unit of account determined in accordance with the provisions of the regulations made pursuant to Article 279. The Commission may, provided it notifies the competent authorities of the Member States concerned, transfer into the currency of one of the Member States its holdings in the currency of another Member State, to the extent necessary to enable them to be used for purposes which come within the scope of this Treaty. The Commission shall as far as possible avoid making such transfers if it possesses cash or liquid assets in the currencies which it needs. The Commission shall deal with each Member State through the authority designated by the State concerned. In carrying out financial operations the Commission shall employ the services of the bank of issue of the Member State concerned or of any other financial institution approved by that State. The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament and obtaining the opinion of the Court of Auditors, shall: (a) make Financial Regulations specifying in particular the procedure to be adopted for establishing and implementing the budget and for presenting and auditing accounts; (b) determine the methods and procedure whereby the budget revenue provided under the arrangements relating to the Community’s own resources shall be made available to the Commission, and determine the measures to be applied, if need be, to meet cash requirements; (c) lay down rules concerning the responsibility of financial controllers, authorising officers and accounting officers, and concerning appropriate arrangements for inspection. The Community and the Member States shall counter fraud and any other illegal activities affecting the financial interests of the Community through measures to be taken in accordance with this Article, which shall act as a deterrent and be such as to afford effective protection in the Member States. Member States shall take the same measures to counter fraud affecting the financial interests of the Community as they take to counter fraud affecting their own financial interests. Without prejudice to other provisions of this Treaty, the Member States shall coordinate their action aimed at protecting the financial interests of the Community against fraud. To this end they shall organise, together with the Commission, close and regular cooperation between the competent authorities. The Council, acting in accordance with the procedure referred to in Article 251, after consulting the Court of Auditors, shall adopt the necessary measures in the fields of the prevention of and fight against fraud affecting the financial interests of the Community with a view to affording effective and equivalent protection in the Member States. These measures shall not concern the application of national criminal law or the national administration of justice. The Commission, in cooperation with Member States, shall each year submit to the European Parliament and to the Council a report on the measures taken for the implementation of this Article. The Community shall have legal personality. In each of the Member States, the Community shall enjoy the most extensive legal capacity accorded to legal persons under their laws; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings. To this end, the Community shall be represented by the Commission. The Council shall, acting by a qualified majority on a proposal from the Commission and after consulting the other institutions concerned, lay down the Staff Regulations of officials of the European Communities and the Conditions of Employment of other servants of those Communities. The Commission may, within the limits and under conditions laid down by the Council in accordance with the provisions of this Treaty, collect any information and carry out any checks required for the performance of the tasks entrusted to it. Without prejudice to Article 5 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, the Council, acting in accordance with the procedure referred to in Article 251, shall adopt measures for the production of statistics where necessary for the performance of the activities of the Community. The production of Community statistics shall conform to impartiality, reliability, objectivity, scientific independence, cost-effectiveness and statistical confidentiality; it shall not entail excessive burdens on economic operators. From 1 January 1999, Community acts on the protection of individuals with regard to the processing of personal data and the free movement of such data shall apply to the institutions and bodies set up by, or on the basis of, this Treaty. Before the date referred to in paragraph 1, the Council, acting in accordance with the procedure referred to in Article 251, shall establish an independent supervisory body responsible for monitoring the application of such Community acts to Community institutions and bodies and shall adopt any other relevant provisions as appropriate. The members of the institutions of the Community, the members of committees, and the officials and other servants of the Community shall be required, even after their duties have ceased, not to disclose information of the kind covered by the obligation of professional secrecy, in particular information about undertakings, their business relations or their cost components. The contractual liability of the Community shall be governed by the law applicable to the contract in question. In the case of non-contractual liability, the Community shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by its institutions or by its servants in the performance of their duties. The preceding paragraph shall apply under the same conditions to damage caused by the ECB or by its servants in the performance of their duties. The personal liability of its servants towards the Community shall be governed by the provisions laid down in their Staff Regulations or in the Conditions of Employment applicable to them. The seat of the institutions of the Community shall be determined by common accord of the Governments of the Member States. The rules governing the languages of the institutions of the Community shall, without prejudice to the provisions contained in the Rules of Procedure of the Court of Justice, be determined by the Council, acting unanimously. The Community shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of its tasks, under the conditions laid down in the Protocol of 8 April 1965 on the privileges and immunities of the European Communities. The same shall apply to the European Central Bank, the European Monetary Institute, and the European Investment Bank. Member States undertake not to submit a dispute concerning the interpretation or application of this Treaty to any method of settlement other than those provided for therein. Member States shall, so far as is necessary, enter into negotiations with each other with a view to securing for the benefit of their nationals: – the protection of persons and the enjoyment and protection of rights under the same conditions as those accorded by each State to its own nationals; – the abolition of double taxation within the Community; – the mutual recognition of companies or firms within the meaning of the second paragraph of Article 48, the retention of legal personality in the event of transfer of their seat from one country to another, and the possibility of mergers between companies or firms governed by the laws of different countries; – the simplification of formalities governing the reciprocal recognition and enforcement of judgments of courts or tribunals and of arbitration awards. Member States shall accord nationals of the other Member States the same treatment as their own nationals as regards participation in the capital of companies or firms within the meaning of Article 48, without prejudice to the application of the other provisions of this Treaty. This Treaty shall in no way prejudice the rules in Member States governing the system of property ownership. The provisions of this Treaty shall not preclude the application of the following rules: (a) no Member State shall be obliged to supply information the disclosure of which it considers contrary to the essential interests of its security; (b) any Member State may take such measures as it considers necessary for the protection of the essential interests of its security which are connected with the production of or trade in arms, munitions and war material; such measures shall not adversely affect the conditions of competition in the common market regarding products which are not intended for specifically military purposes. The Council may, acting unanimously on a proposal from the Commission, make changes to the list, which it drew up on 15 April 1958, of the products to which the provisions of paragraph 1(b) apply. Member States shall consult each other with a view to taking together the steps needed to prevent the functioning of the common market being affected by measures which a Member State may be called upon to take in the event of serious internal disturbances affecting the maintenance of law and order, in the event of war, serious international tension constituting a threat of war, or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security. If measures taken in the circumstances referred to in Articles 296 and 297 have the effect of distorting the conditions of competition in the common market, the Commission shall, together with the State concerned, examine how these measures can be adjusted to the rules laid down in the Treaty. By way of derogation from the procedure laid down in Articles 226 and 227, the Commission or any Member State may bring the matter directly before the Court of Justice if it considers that another Member State is making improper use of the powers provided for in Articles 296 and 297. The Court of Justice shall give its ruling in camera. This Treaty shall apply to the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland. The provisions of this Treaty shall apply to the French overseas departments, the Azores, Madeira and the Canary Islands. However, taking account of the structural social and economic situation of the French overseas departments, the Azores, Madeira and the Canary Islands, which is compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall adopt specific measures aimed, in particular, at laying down the conditions of application of the present Treaty to those regions, including common policies. The Council shall, when adopting the relevant measures referred to in the second subparagraph, take into account areas such as customs and trade policies, fiscal policy, free zones, agriculture and fisheries policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions of access to structural funds and to horizontal Community programmes. The Council shall adopt the measures referred to in the second subparagraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Community legal order, including the internal market and common policies. The special arrangements for association set out in Part Four of this Treaty shall apply to the overseas countries and territories listed in Annex II to this Treaty. This Treaty shall not apply to those overseas countries and territories having special relation s with the United Kingdom of Great Britain and Northern Ireland which are not included in the aforementioned list. The provisions of this Treaty shall apply to the European territories for whose external relations a Member State is responsible. The provisions of this Treaty shall apply to the Åland Islands in accordance with the provisions set out in Protocol No 2 to the Act concerning the conditions of accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden. Notwithstanding the preceding paragraphs: (a) this Treaty shall not apply to the Faeroe Islands; (b) this Treaty shall not apply to the Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland in Cyprus; (c) this Treaty shall apply to the Channel Islands and the Isle of Man only to the extent necessary to ensure the implementation of the arrangements for those islands set out in the Treaty concerning the accession of new Member States to the European Economic Community and to the European Atomic Energy Community signed on 22 January 1972. Where this Treaty provides for the conclusion of agreements between the Community and one or more States or international organisations, the Commission shall make recommendations to the Council, which shall authorise the Commission to open the necessary negotiations. The Commission shall conduct these negotiations in consultation with special committees appointed by the Council to assist it in this task and within the framework of such directives as the Council may issue to it. In exercising the powers conferred upon it by this paragraph, the Council shall act by a qualified majority, except in the cases where the first subparagraph of paragraph 2 provides that the Council shall act unanimously. Subject to the powers vested in the Commission in this field, the signing, which may be accompanied by a decision on provisional application before entry into force, and the conclusion of the agreements shall be decided on by the Council, acting by a qualified majority on a proposal from the Commission. The Council shall act unanimously when the agreement covers a field for which unanimity is required for the adoption of internal rules and for the agreements referred to in Article 310. By way of derogation from the rules laid down in paragraph 3, the same procedures shall apply for a decision to suspend the application of an agreement, and for the purpose of establishing the positions to be adopted on behalf of the Community in a body set up by an agreement based on Article 310, when that body is called upon to adopt decisions having legal effects, with the exception of decisions supplementing or amending the institutional framework of the agreement. The European Parliament shall be immediately and fully informed on any decision under this paragraph concerning the provisional application or the suspension of agreements, or the establishment of the Community position in a body set up by an agreement based on Article 310. The Council shall conclude agreements after consulting the European Parliament, except for the agreements referred to in Article 133(3), including cases where the agreement covers a field for which the procedure referred to in Article 251 or that referred to in Article 252 is required for the adoption of internal rules. The European Parliament shall deliver its opinion within a time-limit which the Council may lay down according to the urgency of the matter. In the absence of an opinion within that time-limit, the Council may act. By way of derogation from the previous subparagraph, agreements referred to in Article 310, other agreements establishing a specific institutional framework by organising cooperation procedures, agreements having important budgetary implications for the Community and agreements entailing amendment of an act adopted under the procedure referred to in Article 251 shall be concluded after the assent of the European Parliament has been obtained. The Council and the European Parliament may, in an urgent situation, agree upon a time-limit for the assent. When concluding an agreement, the Council may, by way of derogation from paragraph 2, authorise the Commission to approve modifications on behalf of the Community where the agreement provides for them to be adopted by a simplified procedure or by a body set up by the agreement; it may attach specific conditions to such authorisation. When the Council envisages concluding an agreement which calls for amendments to this Treaty, the amendments must first be adopted in accordance with the procedure laid down in Article 48 of the Treaty on European Union. The Council, the Commission or a Member State may obtain the opinion of the Court of Justice as to whether an agreement envisaged is compatible with the provisions of this Treaty. Where the opinion of the Court of Justice is adverse, the agreement may enter into force only in accordance with Article 48 of the Treaty on European Union. Agreements concluded under the conditions set out in this Article shall be binding on the institutions of the Community and on Member States. Where it is provided, in a common position or in a joint action adopted according to the provisions of the Treaty on European Union relating to the common foreign and security policy, for an action by the Community to interrupt or to reduce, in part or completely, economic relations with one or more third countries, the Council shall take the necessary urgent measures. The Council shall act by a qualified majority on a proposal from the Commission. It shall be for the Commission to ensure the maintenance of all appropriate relations with the organs of the United Nations and of its specialised agencies. The Commission shall also maintain such relations as are appropriate with all international organisations. The Community shall establish all appropriate forms of cooperation with the Council of Europe. The Community shall establish close cooperation with the Organisation for Economic Cooperation and Development, the details of which shall be determined by common accord. The provisions of this Treaty shall not affect the provisions of the Treaty establishing the European Coal and Steel Community, in particular as regards the rights and obligations of Member States, the powers of the institutions of that Community and the rules laid down by that Treaty for the functioning of the common market in coal and steel. The provisions of this Treaty shall not derogate from those of the Treaty establishing the European Atomic Energy Community. The provisions of this Treaty shall not preclude the existence or comple tion of regional unions between Belgium and Luxembourg, or between Belgium, Luxembourg and the Netherlands, to the extent that the objectives of these regional unions are not attained by application of this Treaty. The rights and obligations arising from agreements concluded before 1 January 1958 or, for acceding States, before the date of their accession, between one or more Member States on the one hand, and one or more third countries on the other, shall not be affected by the provisions of this Treaty. To the extent that such agreements are not compatible with this Treaty, the Member State or States concerned shall take all appropriate steps to eliminate the incompatibilities established. Member States shall, where necessary, assist each other to this end and shall, where appropriate, adopt a common attitude. In applying the agreements referred to in the first paragraph, Member States shall take into account the fact that the advantages accorded under this Treaty by each Member State form an integral part of the establishment of the Community and are thereby inseparably linked with the creation of common institutions, the conferring of powers upon them and the granting of the same advantages by all the other Member States. If action by the Community should prove necessary to attain, in the course of the operation of the common market, one of the objectives of the Community and this Treaty has not provided the necessary powers, the Council shall, acting unanimously on a proposal from the Commission and after consulting the European Parliament, take the appropriate measures. Where a decision has been taken to suspend the voting rights of the representative of the government of a Member State in accordance with Article 7(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article 6(1) of the Treaty on European Union has been determined in accordance with Article 7(1) of that Treaty, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the application of this Treaty to the Member State in question. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons. The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed. When taking decisions referred to in paragraphs 2 and 3, the Council shall act without taking into account the votes of the representative of the government of the Member State in question. By way of derogation from Article 205(2) a qualified majority shall be defined as the same proportion of the weighted votes of the members of the Council concerned as laid down in Article 205(2). This paragraph shall also apply in the event of voting rights being suspended in accordance with paragraph 1. In such cases, a decision requiring unanimity shall be taken without the vote of the representative of the government of the Member State in question. The Community may conclude with one or more States or international organisations agreements establishing an association involving reciprocal rights and obligations, common action and special procedure. The protocols annexed to this Treaty by common accord of the Member States shall form an integral part thereof. This Treaty is concluded for an unlimited period. This Treaty shall be ratified by the High Contracting Parties in accordance with their respective constitutional requirements. The instruments of ratification shall be deposited with the Government of the Italian Republic. This Treaty shall enter into force on the first day of the month following the deposit of the instrument of ratification by the last signatory State to take this step. If, however, such deposit is made less than 15 days before the beginning of the following month, this Treaty shall not enter into force until the first day of the second month after the date of such deposit. This Treaty, drawn up in a single original in the Dutch, French, German, and Italian languages, all four texts being equally authentic, shall be deposited in the archives of the Government of the Italian Republic, which shall transmit a certified copy to each of the Governments of the other signatory States. Pursuant to the Accession Treaties, the Danish, English, Finnish, Greek, Irish, Portuguese, Spanish and Swedish versions of this Treaty shall also be authentic. In witness whereof, the undersigned Plenipotentiaries have signed this Treaty. Done at Rome this twenty-fifth day of March in the year one thousand nine hundred and fifty-seven. P. H. SPAAK ADENAUER PINEAU Antonio SEGNI BECH J. LUNS J. Ch. SNOY ET D’OPPUERS HALLSTEIN M. FAURE Gaetano MARTINO Lambert SCHAUS J. LINTHORST HOMAN ANNEXES LIST referred to in Article 32 of the Treaty OVERSEAS COUNTRIES AND TERRITORIES to which the provisions of Part Four of the Treaty apply – Greenland, – New Caledonia and Dependencies, – French Polynesia, – French Southern and Antarctic Territories, – Wallis and Futuna Islands, – Mayotte, – Saint Pierre and Miquelon, – Aruba, – Netherlands Antilles: – Bonaire, – Curaçao, – Saba, – Sint Eustatius, – Sint Maarten. – Anguilla, – Cayman Islands, – Falkland Islands, – South Georgia and the South Sandwich Islands, – Montserrat, – Pitcairn, – Saint Helena and Dependencies, – British Antarctic Territory, – British Indian Ocean Territory, – Turks and Caicos Islands, – British Virgin Islands, – Bermuda. On 2 October 1997 in Amsterdam the Plenipotentiaries of the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland signed the Treaty of Amsterdam amending the Treaty on European Union, the Treaties establishing the European Communities and certain related acts. On that occasion the Plenipotentiary of the Kingdom of Belgium added the following statement to his signature: ‘This signature also binds the French Community, the Flemish Community, the German-speaking Community, the Walloon Region, the Flemish Region and the Brussels Capital Region’. The Plenipotentiary of the Kingdom of Belgium stated that it was in all cases the Kingdom of Belgium as such that was bound in respect of its entire territory by the Treaty of Amsterdam and that the Kingdom alone, as such, would bear full responsibility for compliance with the obligations entered into in the Treaty. The Plenipotentiaries of the other Signatory States took note thereof. Done in Luxembourg, 22 October 1997 The President of the Intergovernmental Conference (s.) Jacques POOS The Secretary-General of the Council of the European Union, Secretary to the Intergovernmental Conference (s.) Jürgen TRUMPF On the occasion of the signing of the Treaty of Amsterdam on 2 October 1997 the Italian Republic, the depositary of the Treaty, received, pursuant to Article K.7 of the Treaty on European Union as amended by the Treaty of Amsterdam, the following declarations: ‘On the signing of the Treaty of Amsterdam the following Member States stated that they accepted the jurisdiction of the Court of Justice of the European Communities in accordance with the procedure laid down in Article K.7(2) and (3): the Kingdom of Belgium, the Federal R epublic of Germany, the Hellenic Republic, the Grand Duchy of Luxembourg and the Republic of Austria, in accordance with the procedure laid down in paragraph 3(b). When making the above declaration, the Kingdom of Belgium, the Federal Republic of Germany, the Grand Duchy of Luxembourg and the Republic of Austria reserved the right to make provisions in their national law to the effect that, where a question relating to the validity or interpretation of an act referred to in Article K.7(1) is raised in a case pending before a national court or tribunal against whose decision there is no judicial remedy under national law, that court or tribunal will be required to refer the matter to the Court of Justice’. In addition, the Kingdom of the Netherlands declared that the Netherlands would accept the jurisdiction of the Court of Justice of the European Communities as laid down in the aforementioned Article K.7; its government was still considering whether, under Article K.7(3), the option of bringing a matter before the Court could be granted to courts or tribunals other than those against whose decisions there is no remedy. (1) The Kingdom of Denmark, the Hellenic Republic, the Kingdom of Spain, Ireland, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland have since become members of the European Community.
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Na temelju odredbe Članka 12. i 15. Zakona o turističkim zajednicama i promicanju hrvatskog turizma («Narodne novine», broj 152/08.) Skupština Turističke zajednice Grada Krka, uz prethodnu suglasnost Ministarstva turizma, na sjednici održanoj dana 09. veljače 2010. godine, donijela je STATUT TURISTIČKE ZAJEDNICE GRADA KRKA I OPĆE ODREDBE Članak 1. Turistička zajednica Grada Krka (u daljnjem tekstu: Zajednica) je pravna osoba čije su članice pravne i fizičke osobe u djelatnostima ugostiteljstva i turizma, te pravne i fizičke osobe neposredno povezane s tim djelatnostima na području Grada Krka. Članak 2. Zajednica se smatra osnovanom danom stupanja na snagu ovog Statuta, a svojstvo pravne osobe stječe danom upisa u Upisnik turističkih zajednica Ministarstva turizma Članak 3. Turistička zajednica Grada Krka pravni je slijednik Turističke zajednice Grada Krka upisane u Upisnik Turističkih zajednica Ministarstva turizma, list broj 48, stranica A, upisni broj 41 (klasa: 334-03/94-03/47 urbroj:529-02/94-0002) od 27. rujna 1994. godine. Članak 4. Naziv Zajednice je «Turistička zajednica Grada Krka». Skraćeni naziv Zajednice je: «TZG Krka». Sjedište zajednice je u gradu Krku. Članak 5. Zajednica ima pečat okruglog oblika, promjera 40 mm, s tekstom „TURISTIČKA ZAJEDNICA GRADA KRKA-KRK“ i rednim brojem. Članak 6. Zajednica ima znak. Znak se sastoji od obrisa zvonika Krčke katedrale, ispod kojeg se nalazi natpis Krk, te natpis „grad povijesti i kulture“ u podnožju. Oblik i sadržaj znaka određuje posebnom odlukom Turističko vijeće, a o načinu korištenja znaka odlučuje direktor Turističkog ureda. Članak 7. Zajednicom upravljaju njezini članovi i njihova se prava utvrđuju prema visini udjela članova u prihodima Zajednice i njihovom značaju za ukupni razvoj turizma. Članak 8. Za obavljanje stručnih i administrativnih poslova vezanih za zadaće Zajednice, Zajednica ima Turistički ured. Članak 9. Zajednica može osnovati turistička društva kao svoje podružnice polazeći od načela racionalnosti za područja turističkih mjesta. Turističko društvo je ustrojstvena jedinica Zajednice koja obavlja dio djelatnosti u skladu sa Zakonom i ovim Statutom. Članak 10. Rad Zajednice je javan, a osigurava se i ostvaruje na način propisan ovim Statutom. Članak 11. Djelatnost Zajednice temelji se na načelu opće korisnosti i Zajednica ne smije obavljati gospodarske djelatnosti osim onih djelatnosti taksativno navedenih u članku 64. stavak 2. ovog Statuta, niti Zajednica smije imati ulog u temeljenom kapitalu trgovačkog društva. II ZADAĆE ZAJEDNICE Članak 12. Radi unapređivanja općih uvjeta boravka turista, promocije turističkog proizvoda područja Zajednice te razvijanja svijesti o važnosti i gospodarskim, društvenim i drugim učincima turizma, očuvanja i unapređenja svih elemenata turističkog proizvoda a osobite zaštite okoliša, Zajednica ima sljedeće zadaće: - promoviranje turističke destinacije na razini grada samostalno i putem udruženog oglašavanja, - upravljanje javnom turističkom infrastrukturom danom na upravljanje od strane grada, - sudjelovanje u definiranju ciljeva i politike razvoja turizma na nivou grada, - sudjelovanje u stvaranju uvjeta za efikasnu koordinaciju javnog i privatnog sektora, - poticanje optimalizacije i uravnoteženje ekonomskih i društvenih koristi i koristi za okoliš, - izrada strateških i razvojnih planova turizma na nivou grada, - poticanje i sudjelovanje u uređenju grada u cilju unapređenja uvjeta boravka turista, osim izgradnje komunalne infrastrukture, - redovito, a najmanje svaka 4 mjeseca, prikupljanje i ažuriranje podataka o turističkoj ponudi, smještajnim i ugostiteljskim kapacitetima (kulturnim, sportskim i drugim manifestacijama) radnom vremenu zdravstvenih ustanova, banaka, pošte, trgovina i sl. i drugih informacija potrebnih za boravak i putovanje turista, - izdavanje turističkih promotivnih materijala - obavljanje informativnih poslova u svezi s turističkom ponudom, - poticanje i organiziranje kulturnih, zabavnih, umjetničkih, sportskih i drugih manifestacija koje pridonose obogaćivanju turističke ponude, - koordinacija djelovanja svih subjekata koji su neposredno ili posredno uključeni u turistički promet radi zajedničkog dogovaranja, utvrđivanja i provedbe politike razvoja turizma i obogaćivanja turističke ponude, - poticanje, organiziranje i provođenje akcija u cilju očuvanja turističkog prostora, unapređivanja turističkog okružja i zaštite čovjekova okoliša, te prirodne i kulturne baštine, - poticanje, unapređivanje i promicanje specifičnih prirodnih i društvenih vrijednosti koje grad čine turistički prepoznatljivim i stvaranje uvjeta za njihovo gospodarsko korištenje, - vođenje jedinstvenog popisa turista za područje grada, poglavito radi kontrole naplate boravišne pristojbe i stručne obrade podataka, - dnevno prikupljanje, tjedna i mjesečna obrada podataka o turističkom prometu na području grada, - provjera i prikupljanje podataka o prijavi i odjavi boravka turista u cilju suradnje s nadležnim inspekcijskim tijelima u nadzoru nad obračunom, naplatom i uplatom boravišne pristojbe, te prijavom i odjavom turista. - poticanje i sudjelovanje u aktivnostima obrazovanja stanovništva o zaštiti okoliša, očuvanju i unapređenju prirodnih i društvenih vrijednosti prostora u cilju razvijanja svijesti stanovništva o važnosti i učincima turizma, te svojih članova, odnosno njihovih zaposlenika u cilju podizanja kvalitete usluga, - organizacija provođenje i nadzor svih radnji promocije turističkog proizvoda grada sukladno smjernicama skupštine Zajednice, godišnjem programu rada i financijskom planu Zajednice, - ustrojavanje turističkoga informacijskog sustava, sustava prijave i odjave turista i statističke obrade, - obavljanje i drugih poslova propisanih ovim Zakonom ili drugim propisom. Zajednica sudjeluje u provedbi programa i akcijama turističke zajednice županije od zajedničkog interesa za sve subjekte u turizmu s područja županije. Zajednica može na temelju posebne odluke Turističkog vijeća Hrvatske turističke zajednice, biti član međunarodnih turističkih organizacija. III ČLANOVI ZAJEDNICE, NJIHOVA PRAVA, OBVEZE I ODGOVORNOSTI Članak 13. Zajednica ima obvezatne i počasne članove a može imati i dragovoljne članove. Članak 14. Obvezatni članovi Zajednice su sve domaće pravne i fizičke osobe koje na području Zajednice imaju svoje sjedište ili podružnice, pogone ili filijale i slično (u daljnjem tekstu: poslovna jedinica), a koje ostvaruju prihod obavljanjem ugostiteljskih i turističkih, te s turizmom neposredno povezanih djelatnosti. Odredbe stavka 1. ovog članka primjenjuju se i na podružnice, predstavništva i druge oblike fizičkih i pravnih osoba koje imaju sjedište u gradu Krku. Pravne i fizičke osobe postaju obvezatni članovi Zajednice danom osnivanja Zajednice ili danom početka obavljanja djelatnosti na području Grada. Članak 15. Obvezatno članstvo u Zajednici prestaje: prestankom rada Zajednice, prestankom pravne ili smrću fizičke osobe te djelomičnim ili potpunim gubitkom poslovne sposobnosti fizičke osobe, prestankom poslovne jedinice, promjenom sjedišta, prestankom ostvarivanja prihoda pružanjem ugostiteljskih ili drugih turističkih usluga ili obavljanjem s turizmom neposredno povezanih djelatnosti. Na prestanak obvezatnog članstva ne utječe privremena obustava djelatnosti kao ni sezonsko obavljanje djelatnosti. Članak 16. Skupština Zajednice na prijedlog Turističkog vijeća može imenovati domaće i strane fizičke osobe počasnim članom Zajednice ako su one posebno zaslužne za razvoj i promicanje turizma na području Zajednice. Počasni članovi mogu sudjelovati u radu sjednica Skupštine bez prava odlučivanja i ne mogu biti birani u tijela Zajednice. Članak 17. Skupština Zajednice može donijeti odluku o učlanjenju pravnih i fizičkih osoba koje nisu obvezatni članovi Zajednice kao dragovoljnih članova u Zajednicu na njihov zahtjev. Dragovoljno članstvo u Zajednici prestaje istupanjem, neplaćanjem članarine duže od tri mjeseca ili isključenjem. Odluku o isključenju dragovoljnog člana donijeti će Skupština Zajednice ukoliko se taj član ne pridržava odredaba ovoga Statuta, odluka i drugih akata tijela Zajednice ili ako svojim radom nanosi štetu Zajednici. Članak 18. Obvezatni i dragovoljni članovi Zajednice imaju prava, obveze i odgovornosti da: - biraju ili budu birani u tijela Zajednice, - upravljaju poslovima Zajednice i sudjeluju u njenom radu, - daju inicijative za jačanje i promicanje turizma na području Zajednice, - daju prijedloge i primjedbe za rad tijela Zajednica, - predlažu razmatranje pitanja iz djelokruga Zajednice i daju prijedloge za njihovo rješavanje, - predlažu sudjelovanje Zajednice u raznim aktivnostima očuvanja turističkog prostora i zaštite čovjekovog okoliša, - putem Zajednice ostvaruju suradnju s nadležnim tijelima lokalne samouprave i uprave na pitanjima rješavanja poremećaja u turizmu i većih problema u ostvarivanju gospodarskih interesa u djelatnostima ugostiteljstva i turizma i s njima neposredno povezanih djelatnosti, - daju inicijative za donošenje mjera i propisa iz područja turizma, - predlažu izmjene i dopune Statuta i drugih općih akata Zajednice, - sudjeluju u radu Zajednice i manifestacijama koje ona organizira, - provode odluke, zaključke i dogovorene stavove Zajednice u Turističkoj zajednici Županije primorsko-goranske. Počasni članovi imaju prava iz prethodnog stavka alineje 3, 4, 6, 7, 8 i 10. IV TIJELA ZAJEDNICE Članak 19. Tijela Zajednice su: Skupština, Turističko vijeće, Nadzorni odbor i predsjednik Zajednice. a) Skupština Zajednice Članak 20. Skupština Zajednice je najviše tijelo upravljanja u Zajednici. Skupštinu Zajednice čine predstavnici fizičkih osoba članova Zajednice i predstavnici pravnih osoba članova Zajednice, na način da svaki predstavnik u skupštini predstavlja određeni broj članova, s time da predstavnici članova Zajednice ne mogu putem punomoći ovlastiti drugu osobu da umjesto njih sudjeluje u radu skupštine. Broj predstavnika članova skupštine iz stavka 2. ovoga članka utvrđen je razmjerno visini udjela pojedinog člana u prihodu Zajednice, ali jedan član ima maksimalno 40% predstavnika u skupštini. Kao udio u prihodu Zajednice iz stavka 3. ovoga članka, računaju se članarina i 25% boravišne pristojbe koje je taj član uplatio Zajednici u godini koja prethodi godini u kojoj se provode izbori za skupštinu Zajednice, pa se sukladno tome broj predstavnika članova skupštine Zajednice određuje na slijedeći način: - članovi koji ostvaruju od 2% do 6% udjela u prihodu Zajednice ostvaruju pravo na jednog predstavnika u Skupštini - članovi koji ostvaruju od 6-10% udjela u prihodu imaju pravo na dva predstavnika, a na svakih daljnjih započetih 4% udjela u prihodu Zajednice ostvaruju pravo na još jednog predstavnika u Skupštini - članovi koji pojedinačno sudjeluju u ukupnom prihodu Zajednice sa manje od 2% grupiraju se u slijedeće skupine od kojih svaka ima pravo na broj predstavnika koji odgovaraju udjelu pojedine skupine u ukupnom prihodu Zajednice i to: - članovi koji ostvaruju prihod obavljanjem ugostiteljskih djelatnosti, - privatni iznajmljivači i - članovi koji ostvaruju prihod obavljanjem ostalih djelatnosti (turističke agencije, prijevoz, brodski prijevoz i izletnički turizam, trgovina, usluge, proizvodnja hrane,…) Skupine iz stavka 4. alineje 3 ovog članka predstavljaju članovi s najvećim udjelom unutar skupine. Ako tijekom mandata dođe do promjene udjela u prihodima za više od 10%, broj predstavnika članova skupštine iznova će se utvrditi prema stavku 3. ovoga članka, a promjenu utvrđuje skupština Zajednice istodobno s donošenjem godišnjega financijskog izvješća. Članak 21. Skupština Zajednice: - donosi Statut Zajednice, - donosi Poslovnik o radu Skupštine, - donosi odluku o osnivanju, ustroju te pravima i dužnostima Turističkog društva, - bira i razrješava članove Turističkog vijeća, - bira i razrješava članove Nadzornog odbora, - donosi godišnji program rada, financijski plan i godišnje financijsko izvješće Zajednice i Turističkog društva, - imenuje i razrješava počasne članove Zajednice po prijedlogu Turističkog vijeća, - odlučuje o zahtjevu za dragovoljno članstvo - donosi odluku o osnivanju i ustroju Turističkog ureda, - utvrđuje visinu članarine dragovoljnih članova Zajednice, - bira predstavnike Zajednice u Skupštinu Turističke zajednice Županije primorsko-goranske, - donosi Pravilnik o radu Skupštine Zajednice, - daje nadležnim tijelima inicijative za donošenje zakona i drugih propisa, - razmatra pitanja koja proizlaze iz zadaća Zajednice te predlaže mjere i poduzima radnje za njihovo izvršavanje i rješavanje, - prihvaća godišnja izvješća i odlučuje o drugim pitanjima kada je to predviđeno Zakonom i ovim Statutom. Članak 22. Mandat članova Skupštine Zajednice traje četiri godine. Članu Skupštine Zajednice može prestati mandat i prije isteka vremena na koje je izabran: - opozivom od strane člana Zajednice čiji je predstavnik, - prestankom rada člana Zajednice, čiji je predstavnik, - na osobni zahtjev. Skupština Zajednice može predložiti članu Zajednice da opozove svog predstavnika ako svoju dužnost ne obavlja u skladu s zadaćama Zajednice ili je uopće ne obavlja. Novoizabranom članu Skupštine mandat traje do isteka vremena na koji je bio izabran član Skupštine kojem je prestao mandat na jedan od načina utvrđen u stavku 2. ovog članka. Članak 23. Izbore za Skupštinu Zajednice raspisuje Turističko vijeće najkasnije 60 dana prije isteka mandata Skupštine Zajednice. Članak 24. Skupština Zajednice odlučuje na sjednicama. Sjednica Skupštine održava se najmanje dva puta godišnje. Sjednica Skupštine sazvati će se i u slučaju: - izbora članova Turističkog vijeća ako se njihov broj smanji za dva člana ili izboru člana Nadzornog odbora, - izbora predsjednika Zajednice, - ako zahtjev za sazivanje Skupštine podnese Nadzorni odbor, Turističko vijeće, najmanje sedam članova Skupštine ili direktor Turističkog ureda. Podnosilac zahtjeva za sazivanje sjednice dužan je predložiti dnevni red Skupštine Zajednice. Ako predsjednik Zajednice u slučaju iz stavka 3. ovog članka ne sazove Skupštinu Zajednice, Skupštinu Zajednice mogu sazvati Turističko vijeće ili Nadzorni odbor. Članak 25. Skupština Zajednice pravovaljano odlučuje ako je na sjednici prisutno više od polovice ukupnog broja članova Skupštine Zajednice. Skupština Zajednice donosi odluke većinom glasova prisutnih članova Skupštine, ako za pojedino pitanje ovim Statutom nije drugačije određeno. Način sazivanja i vođenja sjednica Skupštine Zajednice i druga pitanja vezana za održavanje sjednice Skupštine uređuje se Poslovnikom. b) Turističko vijeće Članak 26. Turističko vijeće izvršno je tijelo Skupštine Zajednice i odgovorno je Skupštini Zajednice. Članak 27. Turističko vijeće Zajednice: - provodi odluke i zaključke Skupštine Zajednice, - predlaže Skupštini osnovne smjernice, godišnji program rada i financijski plan Zajednice, te godišnje financijsko izvješće, - podnosi skupštini izvješće o svom radu najmanje jednom godišnje, - upravlja imovinom Zajednice sukladno Zakonu i ovom Statutu, te sukladno programu rada i financijskom planu, - imenuje i razrješava direktora Turističkog ureda nakon provedenog javnog natječaja, - zahtjeva i razmatra izvješće direktora Turističkog ureda o njegovom radu i radu Turističkog ureda, te obvezno donosi odluku o prihvaćanju ili neprihvaćanju navedenog izvješća. - donosi opće akte za stručnu službu turističke zajednice - odlučuje o korištenju sredstava za izgradnju, adaptaciju i nabavu poslovnog prostora u skladu s financijskim planom, - donosi opće akte koje ne donosi Skupština Zajednice, - utvrđuje prijedlog Statuta, - priprema prijedloge i daje mišljenja o pitanjima o kojima odlučuje Skupština Zajednice, - donosi Poslovnik Turističkog vijeća, - potiče suradnju s drugim turističkim zajednicama i drugim pravnim i fizičkim osobama koje su neposredno ili posredno uključene u turistički promet, - utvrđuje granice ovlasti za zastupanje Zajednice i raspolaganje financijskim sredstvima Zajednice, - daje ovlaštenje za zastupanje Zajednice u slučaju spriječenosti direktora, - donosi poslovnik o svom radu. - odlučuje i obavlja druge poslove u okviru svoga djelokruga. Članak 28. Turističko vijeće Zajednice ima predsjednika i osam članova koje bira skupština Zajednice iz redova članova Zajednice, vodeći računa o zastupljenosti djelatnosti u turizmu (pružatelji ugostiteljskih usluga, putničke agencije i sl.). Predsjednik Zajednice je predsjednik Turističkog vijeća. Članak 29. Mandat članova Turističkog vijeća traje četiri godine. Članu Turističkog vijeća može prestati mandat i prije isteka vremena na koji je izabran: - razrješenjem od strane Skupštine Zajednice, - na osobni zahtjev. Član Turističkog vijeća može se opozvati ako ne obavlja svoje dužnosti u skladu sa Zakonom i ovim Statutom, ili ako ne provodi odluke Skupštine Zajednice i Turističkog vijeća. Na mjesto člana Turističkog vijeća kojem je mandat prestao na temelju prethodnog stavka, nadležno tijelo bira odnosno delegira novog člana na vrijeme do isteka mandata na koji je izabran član kojemu je ta funkcija prestala na jedan od načina iz stavka 1. ovog članka. Članak 30. Turističko vijeće radi na sjednicama. Predsjednik Zajednice saziva i presjeda sjednici Turističkog vijeća. U slučaju odsutnosti, odnosno spriječenosti predsjednika Zajednice, sjednici Turističkog vijeća predsjedava zamjenik predsjednika Zajednice kojeg on odredi i koji za svoj rad odgovara predsjedniku Zajednice. Članak 31. Turističko vijeće može pravovaljano odlučivati ukoliko sjednici prisustvuje više od polovice članova Vijeća. Turističko vijeće odlučuje većinom glasova prisutnih članova. Članak 32. Način i vođenje sjednice Turističkog vijeća način odlučivanja i druga pitanja vezana za održavanje sjednice Turističkog vijeća uređuju se Poslovnikom. c) Nadzorni odbor Članak 33. Nadzorni odbor je nadzorno tijelo Zajednice. Nadzorni odbor ima najmanje tri člana, a čine ga članovi koje bira skupština Zajednice iz redova svih članova Zajednice i član kojeg delegira turističko vijeće turističke zajednice županije. Članom Nadzornog odbora ne može biti član drugih tijela iste Zajednice. Članak 34. Nadzorni odbor nadzire najmanje dva puta godišnje: - vođenje poslova Zajednice, - materijalno i financijsko poslovanje i raspolaganje sredstvima Zajednice i Turističkog društva, - izvođenje i provedbu programa rada i financijskog plana Zajednice. O obavljenom nadzoru Nadzorni odbor najmanje dva puta godišnje podnosi pismeno izvješće Skupštini Zajednice i Turističkom vijeću Zajednice te turističkom vijeću turističke zajednice županije čiji je Zajednica član. U izvješću iz stavka 2. ovoga članka nadzorni odbor dužan je posebno navesti: djeluje li Zajednica u skladu sa zakonima i aktima Zajednice te odlukama skupštine i turističkog vijeća, jesu li godišnja i druga financijska izvješća sastavljena u skladu sa stanjem u poslovnim knjigama Zajednice i pokazuju li ispravno stanje, ocjenu o poslovanju i vođenju poslova, da li se program rada i financijski plan izvršavaju i provode i u kojoj mjeri, te mišljenje i savjete o mogućnosti poboljšanja njihove provedbe. Članak 35. Sjednicu Nadzornog odbora saziva i rukovodi njenim radom predsjednik. Odbor radi u punom sastavu. Način sazivanja i vođenja sjednice Nadzornog odbora i druga pitanje vezana za održavanje sjednice Nadzornog odbora uređuje se Poslovnikom kojeg donosi Nadzorni odbor. Nadzorni odbor može pravovaljano odlučivati ako sjednici prisustvuje većina članova odbora, a odluke donosi većinom glasova ukupnog broja članova. Članak 36. Mandat članova Nadzornog odbora traje četiri godine. Članu nadzornog odbora može prestati mandat i prije isteka vremena na koji je izabran ako je opozvan od strane tijela koje ga je izabralo, odredilo za člana odnosno imenovalo, ili na osobni zahtjev. Član Nadzornog odbora može se opozvati ako svoju dužnost u Nadzornom odboru ne obavlja u skladu sa Statutom i aktima tijela Zajednice. Na mjesto člana Nadzornog odbora kojem je mandat prestao na temelju prethodnog stavka nadležno tijelo bira novog člana na vrijeme do isteka mandata na koji je izabran član kojemu je na način iz stavka 2. ovog članka prestao mandat. d) Predsjednik Zajednice Članak 37. Zajednica ima predsjednika Zajednice koji predstavlja Zajednicu. Dužnost predsjednika Zajednice obnaša gradonačelnik koji je ujedno i predsjednik skupštine Zajednice i predsjednik Turističkog vijeća Zajednice. U trenutku razrješenja gradonačelnika sukladno propisu kojim se uređuju jedinice lokalne odnosno područne (regionalne) samouprave prestaje njegova dužnost predsjednika Zajednice, te u navedenom slučaju dužnost predsjednika obnaša povjerenik sukladno propisu koji regulira izbore općinskih načelnika, gradonačelnika i župana. Članak 38. Predsjednik Zajednice: - predstavlja Zajednicu, - saziva i presjeda Skupštini Zajednice, - saziva i presjeda Turističkom vijeću, - organizira, koordinira i usklađuje rad i aktivnosti Zajednice u skladu sa Zakonom, ovim Statutom i programom rada Zajednice, - brine se o zakonitom i pravodobnom izvršavanju zadaća Zajednice, - pokreće i brine se o suradnji Zajednice s drugim turističkim zajednicama i drugim tijelima sa zajedničkim interesom, - brine se o pripremi sjednica Skupštine Zajednice i Turističkog vijeća, - potpisuje odluke i druge akte koje donosi Skupština Zajednice i Turističko vijeće, - obavlja i druge poslove utvrđene aktima Skupštine Zajednice i Turističkog vijeća. Članak 39. U slučaju odsutnosti, odnosno spriječenosti predsjednika Zajednice, Skupštini zajednice predsjedava zamjenik predsjednika Zajednice kojeg on odredi i koji za svoj rad odgovara predsjedniku Zajednice. e) Radna tijela Članak 40. Skupština Zajednice i Turističko vijeće mogu osnovati stalna ili privremena radna ili savjetodavna tijela (radne skupine, savjet, komisiju i sl.) radi razmatranja određenog pitanja, davanja mišljenja i prijedloga o značajnim pitanjima iz njihovog djelokruga. Skupština Zajednice i Turističko vijeće odlukom o osnivanju tijela iz prethodnog stavka utvrđuju sastav, djelokrug rada i druga pitanja vezana za rad toga tijela. V PREDSTAVLJANJE I ZASTUPANJE ZAJEDNICE Članak 41. Zajednicu predstavlja predsjednik Zajednice, a zastupa direktor Turističkog ureda. Direktor Turističkog ureda može dati pismenu punomoć drugoj osobi za zastupanje Zajednice. Ako se opća punomoć daje osobi koja nije zaposlena u Zajednici za davanje ove punomoći potrebna je suglasnost Turističkog vijeća. Punomoć iz stavka 2. ovog članka daje se sukladno odredbama zakona kojim se utvrđuju obvezni odnosi. VI TURISTIČKI URED Članak 42. Radi obavljanja stručnih i administrativnih poslova Zajednice osniva se Turistički ured. Sjedište Turističkog ureda je u sjedištu zajednice. Članak 43. Odluku o osnivanju i ustroju Turističkog ureda donosi Skupština Zajednice. Djelokrug, unutarnje ustrojstvo, organizaciju i sistematizaciju radnih mjesta Turističkog ureda utvrđuje Turističko vijeće aktom o ustrojstvu i sistematizaciji, na prijedlog direktora Ureda. Ustrojstvo Turističkog ureda treba odgovarati potrebama i zahtjevima članova Zajednice i mogućnosti za stručno, kvalitetno, pravovremeno i odgovorno izvršavanje zadaća Zajednice. Članak 44. Turistički ured obavlja osobito ove poslove: - provodi zadatke utvrđene programom rada Zajednice, - obavlja stručne i administrativne poslove u svezi pripremanja sjednica tijela Zajednice, - obavlja stručne i administrativne poslove u svezi s izradom i izvršavanjem akata tijela zajednice, - obavlja pravne, financijske i knjigovodstvene poslove, kadrovske i opće poslove, vodi evidencije i statističke podatke utvrđene propisima i aktima Zajednice, - izrađuje analize, informacije i druge materijale za potrebe tijela Zajednice, - daje tijelima Zajednice kao i drugim zainteresiranim stručna mišljenja o pitanjima iz djelokruga Zajednice, - organizira rad turističko-informativnog centra, - obavlja i druge poslove koje mu odrede tijela Zajednice. Članak 45. Na pravni status zaposlenih u Turističkom uredu, uvjete za stupanje na rad i ostala pitanja u svezi s njihovim radom odgovarajuće se primjenjuju opći propisi o radu. Radnici zaposleni u Turističkom uredu moraju ispunjavati i posebne uvjete koje propisuje ministar turizma. Direktor Turističkog ureda i radnici na stručnim poslovima na izvršenju zadaća Zajednice koji u trenutku sklapanja ugovora o radu nemaju položen stručni ispit za rad u turističkom uredu (u daljnjem tekstu: stručni ispit), moraju isti položiti u roku od jedne godine od dana stupanja na rad. Radniku iz prethodnog stavka ovoga članka koji ne položi stručni ispit prestaje radni odnos po isteku posljednjeg dana roka za polaganje stručnog ispita. Položeni stručni ispit ne moraju imati osobe koje imaju odgovarajuću stručnu spremu i najmanje 10 godina radnog staža na poslovima u turizmu u toj stručnoj spremi. Članak 46. Turistički ured Zajednice ima direktora. Direktora Turističkog ureda na temelju javnog natječaja imenuje Turističko vijeće. Direktor mora ispunjavati posebne uvjete koje propisuje ministar turizma i mora ispunjavati uvjet da mu pravomoćnom sudskom presudom ili rješenjem o prekršaju nije izrečena mjera sigurnosti ili zaštitna mjera zabrane obavljanja poslova iz područja turizma, dok ta mjera traje. Članak 47. Ako se na raspisani natječaj nitko ne prijavi ili nitko od prijavljenih kandidata ne bude izabran, natječaj će se ponoviti. Zajednicu do izbora direktora zastupa predsjednik Zajednice. Članak 48. Direktora Turističkog ureda, u slučaju odsutnosti ili spriječenosti, zamjenjuje osoba koju na prijedlog direktora odredi Turističko vijeće iz redova Turističkog ureda. Osoba koja zamjenjuje direktora Turističkog ureda ima prava i dužnosti direktora. Članak 49. Direktor Turističkog ureda organizira i rukovodi radom i poslovanjem Turističkog ureda i u granicama utvrđenih ovlasti odgovoran je za poslovanje Zajednice. Direktor za svoj rad odgovoran je Turističkom vijeću i predsjedniku Zajednice. Direktor i drugi radnici zaposleni u turističkom uredu ne mogu biti predsjednicima niti članovima skupštine, turističkog vijeća i nadzornog odbora niti jedne turističke zajednice. Direktor turističkog ureda ne smije biti član upravnog ili nadzornog tijela trgovačkog društva ili druge pravne osobe koja je član turističke zajednice. Direktor Turističkog ureda: - provodi odluke Turističkog vijeća, - organizira izvršavanje zadaća Zajednice, - zastupa Zajednicu i poduzima sve pravne radnje u ime i za račun Zajednice, - odgovoran je za namjensko korištenje sredstava koja se vode u Zajednici, - usklađuje materijalne i druge uvjete rada Turističkog ureda i brine se da poslovi i zadaci budu na vrijeme i kvalitetno obavljeni u skladu s odlukama, zaključcima i programom rada Zajednice i njezinih tijela, - odlučuje o zapošljavanju radnika u Turističkom uredu i raspoređivanju radnika na određena radna mjesta te o prestanku rada u skladu s aktom o ustrojstvu i sistematizaciji Turističkog ureda, - upozorava radnike Turističkog ureda i tijela Zajednice na zakonitosti njihovih odluka, - predlaže ustrojstvo i sistematizaciju Turističkog ureda, - odlučuje o povjeri pojedinih stručnih poslova trećim osobama ako ocijeni da je potrebno i svrsishodno, a u cilju izvršenja zadataka Zajednice, - potpisuje poslovnu dokumentaciju Zajednice, - podnosi Turističkom vijeću izvješće o svom radu i o radu Turističkog ureda, najmanje jednom godišnje, te predlaže mjere za unapređenje organizacije rada Turističkog ureda, - obavlja i druge poslove utvrđene zakonom, aktima Zajednice i odlukama tijela Zajednice. Članak 50. Direktor Turističkog ureda može biti razriješen: 1. na osobni zahtjev, 2. ako zbog neizvršavanja ili nemarnog vršenja svoje dužnosti Zajednica nije mogla izvršiti svoje zadatke ili je izvršavanje tih zadataka bilo otežano, 3. ako je uslijed nezakonitog, nesavjesnog ili nepravilnog rada ili zbog prekoračenja ovlaštenja nastala ili mogla nastati šteta, 4. ako bez osnovanog razloga ne izvrši ili odbije izvršiti odluke tijela Zajednice ili postupa protivno tim odlukama. 5. ako ne podnese Turističkom vijeću izvješće o svom radu i o radu Turističkog ureda 6. ako Turističko vijeće ne prihvati izvješće o radu direktora i Turističkog ureda Prijedlog za pokretanje postupka za razrješenje direktora Turističkog ureda predsjednik Zajednice, Skupština Zajednice ili Nadzorni odbor moraju podnijeti u slučaju iz stavka 1. točke 2., 3., 4., 5. i 6. ovog članka statuta. Turističko vijeće razmatra i ispituje navode iz prijedloga za pokretanje postupka za razrješenje direktora Turističkog ureda. Prije donošenja odluke o razrješenju direktoru se mora dati mogućnost da se izjasni o razlozima za razrješenje. Odluku o razrješenju direktora Turističkog ureda donosi Turističko vijeće glasovanjem. U slučaju razrješenja direktora Turističkog ureda, Zajednicu do izbora direktora zastupa predsjednik Zajednice. VII TURISTIČKO INFORMATIVNI CENTAR Članak 51. Radi prikupljanja, obrade i raspačavanja informacija o radu Zajednice Skupština zajednice može odlukom o osnivanju Turističkog ureda ustrojiti Turističko-informativni centar (u daljnjem tekstu: Centar) kao užu organizacijsku jedinicu Turističkog ureda. Centar nema svojstvo pravne osobe. Članak 52. Zadaće Centra su: - prikupljanje, obrada i raspačavanje informacija u cilju poticanja i promidžbe turizma na području Zajednice, - prikupljanje informacija o turističkim potrebama i drugim pojavama u zemlji i inozemstvu od značaja za turizam Zajednice, - informiranje turista o znamenitostima i privlačnostima turističkog okružja, spomenicima kulture, i dr. - promocija turističkog proizvoda s područja Zajednice, - davanje ostalih potrebnih turističkih informacija, - suradnja s tuzemnim i inozemnim informativnim organizacijama, - drugi poslovi utvrđeni odlukom o osnivanju Centra i drugim aktima Skupštine Zajednice ili Turističkog vijeća. Centar radi izvršavanja zadataka iz stavka 1. ovog članka može izdavati biltene ili druge periodične publikacije. Članak 53. Poslove Centra vodi i organizira voditelj koji za svoj rad i rad Centra odgovara Turističkom vijeću i direktoru turističkog ureda. Na pravni status voditelja Centra, uvjete za stupanje na rad i ostala pitanja u svezi s njegovim radom odgovarajuće se primjenjuju opći propisi o radu. Članak 54. Unutarnja organizacija i ostala pitanja u svezi rada Centra uredit će se općim aktom kojim se ova pitanja uređuju za Turistički ured. VIII ODGOVORNOSTI ZA OBAVLJANJE DUŽNOSTI U ZAJEDNICI Članak 55. Svaki član tijela Zajednice osobno je odgovoran za savjesno obavljanje svojih dužnosti. Svaki član tijela Zajednice odgovoran je za svoj rad tijelu koje ga je izabralo, a članovi Skupštine Zajednice odgovorni su članu Zajednice kojeg predstavljaju. Direktor Turističkog ureda osobno je odgovoran za zakonito, savjesno i stručno obavljanje dužnosti i zadataka koje mu je utvrdilo tijelo koje ga je izabralo ili imenovalo. Predsjednik Zajednice osobno je odgovoran za zakonito i savjesno obavljanje svojih dužnosti. IX GOSPODARENJE U ZAJEDNICI Članak 56. Zajednica nastupa u pravnom prometu samostalno – u svoje ime i za svoj račun. Za obveze u pravnom prometu Zajednica odgovara cjelokupnom svojom imovinom. Članak 57. Financijsko–materijalno poslovanje Zajednice vodi se po propisima koji uređuju računovodstvo neprofitnih organizacija Članak 58. Za svaku poslovnu godinu Zajednica utvrđuje program rada i financijski plan. Članak 59. Prijedlog programa rada i prijedlog financijskog plana Zajednice za slijedeću godinu utvrđuje Turističko vijeće i podnosi ga Skupštini Zajednice, do 31. listopada tekuće godine. Članak 60. Godišnji program rada i godišnji financijski plan Zajednice sadrže pojedinačno utvrđene planirane zadatke i potrebna financijska sredstva za njihovo izvršenje, te posebno planirane zadatke i financijske planove turističkih društava. Prijedlog programa rada i financijskog plana Zajednica obavezno dostavlja na razmatranje članovima Skupštine zajednice 8 dana prije održavanja sjednice na kojoj se donosi. Godišnji program rada i financijski plan Zajednica je dužna dostaviti turističkoj zajednici županije. Članak 61. Tijekom godine Zajednica može mijenjati i dopunjavati svoj program rada i godišnji financijski plan. Ako tijekom godine dođe do odstupanja od programa rada i financijskog plana u obujmu većem od 5%, Zajednica je dužna donijeti izmjene, odnosno dopune programa rada i financijskog plana. Izmjene iz stavka 1. i 2. ovog članka obavljaju se po postupku koji je propisan za donošenje programa rada i godišnjeg financijskog plana. Članak 62. Za izvršenje programa rada i godišnjeg financijskog plana odgovorno je Turističko vijeće. Naredbodavac za izvršenje financijskog plana je direktor Turističkog ureda. Članak 63. Prijedlog godišnjeg financijskog izvješća za prethodnu godinu Turističko vijeće podnosi Skupštini Zajednice i Nadzornom odboru do kraja veljače tekuće godine. Prijedlog godišnjeg financijskog izvješća mora se staviti na uvid članovima Zajednice osam dana prije razmatranja na Skupštini Zajednice. Skupština Zajednice dužna je svake godine do kraja ožujka tekuće godine donijeti godišnje financijsko izvješće za prethodnu godinu. Godišnje financijsko izvješće obvezno sadržava podatke o izvršenju programom rada pojedinačno utvrđenih zadataka, izdacima njihovog izvršenja, izdacima za poslovanje turističkog ureda i rad tijela turističke zajednice, ostvarenju prihoda po izvorima, financijskom rezultatu poslovanja, usporedbu financijskog plana i njegovog ostvarenja s obrazloženjem odstupanja, analizu i ocjenu izvršenja programa, te procjenu učinka poduzetih aktivnosti na razvoj turizma. Godišnje financijsko izvješće za prethodnu godinu Zajednica je dužna dostaviti turističkoj zajednici županije. Članak 64. Zajednica ostvaruje prihode iz boravišne pristojbe i članarine u skladu s posebnim zakonom, proračuna Grada Krka, zajmova i dragovoljnih prihoda te posebnih sredstava koje po prijedlogu Turističkog vijeća mogu osigurati članovi Skupštine Zajednice i druge zainteresirane osobe. Zajednica ostvaruje prihode i iz imovine u vlasništvu i od obavljanja slijedećih gospodarskih djelatnosti: - upravljanja javnom turističkom infrastrukturom danom na upravljanje od strane jedinice lokalne, odnosno područne (regionalne) samouprave, - organiziranja manifestacija i priredbi, - objavljivanja komercijalnih oglasa na svojim promotivnim materijalima, - prodavanja suvenira, turističkih karata i vodiča, osim vlastitog promotivnog materijala, - posredovanja u rezervaciji privatnog smještaja ako u turističkom mjestu za koje je osnovana Zajednica ne postoji registrirana turistička agencija, - obavljanja drugih poslova i zadaća od javnog interesa u funkciji razvoja turizma i destinacije koji nisu u suprotnosti Zakonom i drugim propisima. Zajednica se može na temelju posebne odluke turističkog vijeća, financijski zaduživati u cilju realizacije programa rada i financijskog plana, ali ukupna vrijednost zaduženja ne smije prelaziti 50% financijskim planom predviđenih prihoda. Članak 65. Za djelovanje turističkog društva koristi se najmanje 50% prihoda od boravišnih pristojbi, članarina i prihoda od obavljanja gospodarskih djelatnosti iz članka 64. stavka 2. ovog Statuta Zajednice ostvarenih na području za koje je turističko društvo osnovano, preostalih nakon raspodjele sredstava ostalim korisnicima. Turističko društvo obvezno je sredstva kojima raspolaže sukladno ovom Zakonu, koristiti namjenski u skladu s utvrđenim godišnjim programom rada i financijskim planom. Turističko društvo predlaže turističkom vijeću Zajednice godišnji program rada i financijski plan, koji su sastavni dio godišnjeg programa rada i financijskog plana Zajednice. Članak 66. Domaće i strane pravne i fizičke osobe plaćaju članarinu Zajednici u skladu s posebnim zakonom. Dragovoljni članovi Zajednice plaćaju članarinu Zajednici u visini koji posebnom odlukom utvrdi Skupština Zajednice Članak 67. Financijskim planom Zajednice utvrđuje se i dio prihoda kao neraspoređena sredstva (tekuća rezerva) koji se koristi tijekom godine za nepredviđene i nedovoljno predviđene poslove i zadatke koji se financiraju iz financijskog plana Zajednice. Sredstvima tekuće rezerve raspolaže Turističko vijeće. Članak 68. Višak prihoda nad rashodima Zajednice koristi se u svrhu promicanja i unapređenja turističkog područja Zajednice. Članak 69. Turističko vijeće Zajednice upravlja imovinom Zajednice s pozornošću urednog i savjesnog gospodarstvenika. Za nabavu i otuđenje nekretnina Turističko vijeće mora zatražiti prethodnu suglasnost Skupštine Zajednice, koja o tome odlučuje većinom glasova svih članova Skupštine Zajednice. X JAVNOST RADA ZAJEDNICE Članak 70. Javnost rada Zajednice osigurava se i ostvaruje dostavom pisanih materijala i putem sjednica tijela Zajednice za članove Zajednice, putem turističko-informativnog centra, objavom na oglasnoj ploči Zajednice, odnosno putem sredstava javnog priopćavanja ili na drugi prikladni način. Članak 71. Predsjednik Zajednice odgovoran je za redovito i potpuno informiranje javnosti o radu Zajednice. XI POSLOVNA TAJNA Članak 72. Poslovnu tajnu Zajednice čine isprave i podaci čije bi odavanje neovlaštenoj osobi bilo protivno poslovanju Zajednice i štetilo interesima i poslovnom ugledu Zajednice. Predsjednik Zajednice određuje koje isprave i podaci su poslovna tajna, te ostala pitanja u vezi s poslovnom tajnom. Poslovnu tajnu dužni su čuvati svi članovi i zaposleni u Zajednici. Povreda odredaba ovog Statuta koja se odnosi na poslovnu tajnu je teža povreda radne dužnosti. XII STATUTI I DRUGI OPĆI AKTI Članak 73. Skupština Zajednice donosi Statut uz prethodnu suglasnost Ministarstva turizma dvotrećinskom većinom svih predstavnika u Skupštini Zajednice. Poslovnik o radu Skupštine donosi Skupština Zajednice većinom glasova. Ostale opće akte donosi Turističko vijeće Zajednice na prijedlog predsjednika Zajednice ili na osobnu inicijativu, a opće akte Turističkog ureda na prijedlog direktora Turističkog ureda. Članak 74. Turističko vijeće donosi opće akte o ustrojstvu, organizaciji i sistematizaciji radnih mjesta Turističkog ureda, zatim o radnim odnosima, disciplinskoj i materijalnoj odgovornosti, te o plaćama i ostalim primanjima iz radnog odnosa zaposlenih. Članak 75. U slučaju nesuglasnosti općih akata sa Statutom neposredno se primjenjuju odgovarajuće odredbe Statuta. Ocjenu suglasnosti općih akata sa Statutom daje Skupština Zajednice. Kada utvrdi da opći akt nije u suglasnosti sa Statutom, Skupština Zajednice svojom odlukom ukida ili poništava taj akt odnosno njegove pojedine odredbe. Članak 76. Izmjene i dopune Statuta donose se u postupku i na način određen za donošenje Statuta. Prijedlog za izmjene i dopune Statuta može podnijeti Turističko vijeće ili najmanje sedam članova Skupštine Zajednice. Prijedlog izmjene i dopuna Statuta dostavlja se članovima Skupštine Zajednice radi davanja primjedbi i prijedloga. Primjedbe i prijedlozi dostavljaju se Turističkom vijeću u roku od osam dana od dana primitka. Nakon razmatranja primjedbi i prijedloga Turističko vijeće utvrđuje prijedlog izmjena i dopuna Statuta i upućuje ga Skupštini Zajednice na usvajanje. Članak 77. Statut Zajednice objavljuje se u «Službenim novinama» Županije primorsko-goranske. Opći akti Zajednice oglašavaju se na oglasnoj ploči Zajednice, a opći akti Turističkog ureda na oglasnoj ploči Ureda. Opći akti zajednice stupaju na snagu danom oglašavanja. XIII PRIJELAZNE I ZAVRŠNE ODREDBE Članak 78. Zajednica je dužna uskladiti svoj ustroj i druge opće akte s odredbama Zakona i ovog Statuta u roku od 30 dana od dana stupanja na snagu Statuta. Do usklađenja općih akata s odredbama ovog Statuta primjenjuju se postojeći opći akti. Članak 79. Stupanjem na snagu ovog Statuta prestaje važiti Statut Turističke zajednice Grada Krka upisane u Upisnik Turističkih zajednica Ministarstva turizma, list broj 48, stranica A, upisni broj 41 (klasa: 334-03/94-03/47 urbroj:529-02/94-0002) od 27. rujna 1994. godine Članak 80. Ovaj Statut stupa na snagu osmog dana po objavi u «Službenim novinama» Županije primorsko-goranske. PREDSJEDNIK TZ GRADA KRKA: Prof. Darijo Vasilić