With a view to continuing and reviving the democratic unification of Europe, of which the European Communities, the European Monetary System and European Political Cooperation represent the first achievements, and convinced that it is increasingly important for Europe to assert its identity;

Welcoming the positive results achieved so far, but aware of the present need to redefine the objectives of European integration, and to confer on more efficient and more democratic institutions the means of attaining them;

Basing their actions on their commitment to the principles of pluralist democracy, respect for human rights and the rule of law;

Reaffirming their desire to contribute to the construction of an international society based on cooperation between peoples and between States, the peaceful settlement of disputes, security and the strengthening of international organizations;

Resolved to strengthen and preserve peace and liberty by an ever closer union, and calling on the other peoples of Europe who share their ideal to join in their efforts;

Determined to increase solidarity between the peoples of Europe, while respecting their historical identity, their dignity and their freedom within the framework of freely accepted common institutions;

Convinced of the need to enable local and regional authorities to participate by appropriate methods in the unification of Europe;

Desirous of attaining their common objectives progressively, accepting the requisite transitional periods and submitting all further development for the approval of their peoples and States;

Intending to entrust common institutions, in accordance with the principle of subsidiarity, only with those powers required to complete successfully the tasks they may carry out more satisfactorily than the States acting independently;

The High Contracting Parties, Member States of the European Communities, have decided to create a European Union.

Part One THE UNION

Article 1 Creation of the Union

By this Treaty, the High Contracting Parties establish among themselves a European Union.

Article 2 Accession of new members

Any democratic European State may apply to become a member of the Union. The procedures for accession, together with any adjustments which accession entails, shall be the subject of a treaty between the Union and the applicant State. That treaty shall be concluded in accordance with the procedure laid down in Article 65 of this Treaty.

An accession treaty which entails revision of this Treaty may not be concluded until the revision procedure laid down in Article 84 of this Treaty has been completed.

Article 3 Citizenship of the Union

The citizens of the Member States shall ipso facto be citizens of the Union. Citizenship of the Union shall be dependent upon citizenship of a Member State; it may not be independently acquired or forfeited. Citizens of the Union shall take part in the political life of the Union in the forms laid down by this Treaty, enjoy the rights granted to them by the legal system of the Union and be subject to its laws.

Article 4 Fundamental rights

1. The Union shall protect the dignity of the individual and grant every person coming within its jurisdiction the fundamental rights and freedoms derived in particular from the common principles of the Constitutions of the Member States and from the European Convention for the Protection of Human Rights and Fundamental Freedoms.

2. The Union undertakes to maintain and develop, within the limits of its competences, the economic, social and cultural rights derived from the Constitutions of the Member States and from the European Social Charter.

3. Within a period of five years, the Union shall take a decision on its accession to the international instruments referred to above and to the United Nations Covenants on Civil and Political Rights and on Economic, Social and Cultural Rights. Within the same period, the Union shall adopt its own declaration on fundamental rights in accordance with the procedure for revision laid down in Article 84 of this Treaty.

4. In the event of serious and persistent violation of democratic principles or fundamental rights by a Member State, penalties may be imposed in accordance with the provisions of Article 44 of this Treaty.

Article 5 Territory of the Union

The territory of the Union shall consist of all the territories of the Member States as specified by the Treaty establishing the European Economic Community and by the treaties of accession, account being taken of obligations arising out of international law.

Article 6 Legal personality of the Union

The Union shall have legal personality. In each of the Member States, the Union shall enjoy the most extensive legal capacity accorded to legal persons under national legislation. It may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings. In international relations, the Union shall enjoy the legal capacity it requires to performs its functions and attain its objectives.

Article 7 The Community patrimony

1. The Union shall take over the Community patrimony.

2. The provisions of the treaties establishing the European Communities and of the conventions and protocols relating thereto which concern their objectives and scope and which are not explicitly or implicitly amended by this Treaty, shall constitute part of the law of the Union. They may only be amended in accordance with the procedure for revision laid down in Article �84 of this Treaty.

3. The other provisions of the treaties, conventions and protocols referred to above shall also constitute part of the law of the Union, in so far as they are not incompatible with this Treaty. They may only be amended by the procedure for organic laws laid down in Article 38 of this Treaty.

4. The acts of the European Communities, together with the measures adopted within the context of the European Monetary System and European Political Cooperation, shall continue to be effective, in so far as they are not incompatible with this Treaty, until such time as they have been replaced by acts or measures adopted by the institutions of the Union in accordance with their respective competences.

5. The Union shall respect all the commitments of the European Communities, in particular the agreements or conventions concluded with one or more non-member States or with an international organization.

Article 8 Institutions of the Union

The fulfilment of the tasks conferred on the Union shall be the responsibility of its institutions and its organs. The institutions of the Union shall be:

the European Parliament,

the Council of the Union,

the Commission,

the Court of Justice,

the European Council.

Part Two THE OBJECTIVES, METHODS OF ACTION AND COMPETENCES OF THE UNION

Article 9 Objectives

The objectives of the Union shall be:

the attainment of a humane and harmonious development of society based principally on endeavours to attain full employment, the progressive elimination of the existing imbalances between its regions, protection and improvement in the quality of the environment, scientific progress and the cultural development of its peoples,

the economic development of its peoples with a free internal market and stable currency, equilibrium in external trade and constant economic growth, without discrimination between nationals or undertakings of the Members States by strengthening the capacity of the States, their citizens and their undertakings to act together to adjust their organization and activities to economic changes,

the promotion in international relations of security, peace, cooperation, détente, disarmament and the free movement of persons and ideas, together with the improvement of international commercial and monetary relations,

the harmonious and equitable development of all the peoples of the world to enable them to escape from under-development and hunger and exercise their full political, economic and social rights.

Article 10 Methods of action

1. To attain these objectives, the Union shall act either by common action or by cooperation between the Member States; the fields within which each method applies shall be determined by this Treaty.

2. Common action means all normative, administrative, financial and judicial acts, internal or international, and the programmes and recommendations, issued by the Union itself, originating in its institutions and addressed to those institutions, or to States, or to individuals.

3. Cooperation means all the commitments which the Member States undertake within the European Council.

The measures resulting from cooperation shall be implemented by the Member States or by the institutions of the Union in accordance with the procedures laid down by the European Council.

Article 11 Transfer from cooperation to common action

1. In the instances laid down in Article 54(1) and 68(2) of this Treaty, a matter subject to the method of cooperation between Member States may become the subject of common action. On a proposal from the Commission, or the Council of the Union, or the Parliament, or one or more Member States, the European Council may decide, after consulting the Commission and with the agreement of the Parliament, to bring those matters within the exclusive or concurrent competence of the Union.

2. In the fields subject to common action, common action may not be replaced by cooperation.

Article 12 Competences

1. Where this Treaty confers exclusive competence on the Union, the institutions of the Union shall have sole power to act; national authorities may only legislate to the extent laid down by the law of the Union. Until the Union has legislated, national legislation shall remain in force.

2. Where this Treaty confers concurrent competence on the Union, the Member States shall continue to act so long as the Union has not legislated. The Union shall only act to carry out those tasks which may be undertaken more effectively in common than by the Member States acting separately, in particular those whose execution requires action by the Union because their dimension or effects extend beyond national frontiers. A law which initiates or extends common action in a field where action has not been taken hitherto by the Union or by the Communities must be adopted in accordance with the procedure for organic laws.

Article 13 Implementation of the law of the Union

The Union and the Member States shall cooperate in good faith in the implementation of the law of the Union. 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 Union. They shall facilitate the achievement of the Union's tasks. They shall abstain from any measure which could jeopardize the attainment of the objectives of the Union.

Part Three INSTITUTIONAL PROVISIONS

TITLE I The institutions of the Union

Article 14 The European Parliament

The European Parliament shall be elected by direct universal suffrage in a free and secret vote by the citizens of the Union. The term of each Parliament shall be five years.

An organic law shall lay down a uniform electoral procedure; until such a law comes into force, the procedure applicable shall be that for the election of the Parliament of the European Communities.

Article 15 Members of Parliament

The members of the Parliament shall act and vote in an individual and personal capacity. They may not be bound by any instruction nor receive a binding mandate.

Article 16 Functions of the Parliament

The Parliament shall:

participate, in accordance with this Treaty, in the legislative and budgetary procedures and in the conclusion of international agreements,

enable the Commission to take office by approving its political programme,

exercise political supervision over the Commission,

have power to adopt by a qualified majority a motion of censure requiring the members of the Commission to resign as a body,

have the power to conduct inquiries and receive petitions addressed to it by citizens of the Union,

exercise the other powers attributed to it by this Treaty.

Article 17 Majorities in the Parliament

1. The Parliament shall vote by a simple majority, i.e. a majority of votes cast, abstentions not counted.

2. Where expressly specified by this Treaty, the Parliament shall vote:

(a) either by an absolute majority, i.e. a mmajority of its members;

(b) or by a qualified majority, i.e. �a majority of its members and of two-thirds of votes cast, abstentions not counted. On the second reading of the budget, the qualified majority required shall be a majority of the members of Parliament and three-fifths of votes cast, abstentions not counted.

Article 18 Power to conduct inquiries and right of petition

The procedures for the exercise of the power of the Parliament to conduct inquiries and of the right of citizens to address petitions to the Parliament shall be laid down by organic laws.

Article 19 Rules of procedure of the Parliament

The Parliament shall adopt its rules of procedure by an absolute majority.

Article 20 The Council of the Union

The Council of the Union shall consist of representations of the Members States appointed by their respective governments; each representation shall be led by a minister who is permanently and specifically responsible for Union affairs.

Article 21 Functions of the Council of the Union

The Council shall:

participate, in accordance with this Treaty, in the legislative and budgetary procedures and in the conclusion of international agreements,

exercise the powers attributed to it in the field of international relations, and answer written and oral questions tabled by members of the Parliament in this field,

exercise the other powers attributed to it by this Treaty.

Article 22 Weighting of votes in the Council of the Union

The votes of the representations shall be weighted in accordance with the provisions of Article �148(2) of the Treaty establishing the European Economic Community.

In the event of the accession of new Member States, the weighting of their votes shall be laid down in the treaty of accession.

Article 23 Majorities in the Council of the Union

1. The Council shall vote by a simple majority, i.e. a majority of the weighted votes cast, abstentions not counted.

2. Where expressly specified by this Treaty, the Council shall vote:

(a) either by an absolute majority, i.e. �by a majority of the weighted votes cast, abstentions not counted, comprising at least half of the representations;

100

(b) or by a qualified majority, i.e. �by a majority of two-thirds of the weighted votes cast, abstentions not counted, comprising a majority of the representations. On the second reading of the budget, the qualified majority required shall be a majority of three-fifths of the weighted votes cast, abstentions not counted, comprising a majority of the representations;

101

102

3. During a transitional period of 10 years, where a representation invokes a vital national interest which is jeopardized by the decision to be taken and recognized as such by the Commission, the vote shall be postponed so that the matter may be re-examined. The grounds for requesting a postponement shall be published.

103

Article 24 Rules of procedure of the Council of the Union

104

The Council shall adopt its rules of procedure by an absolute majority. These rules shall lay down that meetings in which the Council is acting as a legislative or budgetary authority shall be open to the public.

105

Article 25 The Commission

106

The Commission shall take office within a period of six months following the election of the Parliament.

107

At the beginning of each parliamentary term, the European Council shall designate the President of the Commission. The President shall constitute the Commission after consulting the European Council.

108

The Commission shall submit its programme to the Parliament. It shall take office after its investiture by the Parliament. It shall remain in office until the investiture of a new Commission.

109

Article 26 Membership of the Commission

110

The structure and operation of the Commission and the Statute of its members shall be determined by an organic law. Until such a law comes into force, the rules governing the structure and operation of the Commission of the European Communities and the Statute of its members shall apply to the Commission of the Union.

111

Article 27 Rules of procedure of the Commission

112

The Commission shall adopt its rules of procedure.

113

Article 28 Functions of the Commission

114

The Commission shall:

115

define the guidelines for action by the Union in the programme which it submits to the Parliament for its approval,

116

introduce the measures required to initiate that action,

117

have the right to propose draft laws and participate in the legislative procedure,

118

issue the regulations needed to implement the laws and take the requisite implementing decisions,

119

submit the draft budget, implement the budget,

120

represent the Union in external relations in the instances laid down by this Treaty,

121

ensure that this Treaty and the laws of the Union are applied, and

122

exercise the other powers attributed to it by this Treaty.

123

Article 29 Responsibility of the Commission to the Parliament

124

1. The Commission shall be responsible to the Parliament.

125

2. It shall answer written and oral questions tabled by members of the Parliament.

126

3. The members of the Commission shall resign as a body in the event of Parliament's adopting a motion of censure by a qualified majority. The vote on a motion of censure shall be by public ballot and not be held until at least three days after the motion has been tabled.

127

4. On the adoption of a motion of censure a new Commission shall be constituted in accordance with the procedure laid down in Article 25 of this Treaty. Pending the investiture of the new Commission, the Commission which has been censured shall be responsible for day-to-day business.

128

Article 30 The Court of Justice

129

1. The Court of Justice shall ensure that in the interpretation and application of this Treaty, and of any act adopted pursuant thereto, the law is observed.

130

2. Half the members of the Court shall be appointed by the Parliament and half by the Council of the Union. Where there is an odd number of members, the Parliament shall appoint one more than the Council.

131

3. The organization of the Court, the number and Statute of its members and the duration of their term of office shall be governed by an organic law which shall also lay down the procedure and majorities required for their appointment. Until such a law comes into force, the relevant provisions laid down in the Community Treaties and their implementing measures shall apply to the Court of Justice of the Union.

132

4. The Court shall adopt its rules of procedure.

133

Article 31 The European Council

134

The European Council shall consist of the Heads of State or Government of the Member States of the Union and the President of the Commission who shall participate in the work of the European Council except for the debate on the designation of his successor and the drafting of communications and recommendations to the Commission.

135

Article 32 Functions of the European Council

136

1. The European Council shall:

137

formulate recommendations and undertake commitments in the field of cooperation,

138

take decisions in the cases laid down by this Treaty and in accordance with the provisions of ArticleÃÂ 11 thereof on the extension of the competences of the Union,

139

designate the President of the Commission,

140

address communications to the other institutions of the Union,

141

periodically inform the Parliament of the activities of the Union in the fields in which it is competent to act,

142

answer written and oral questions tabled by the members of the Parliament,

143

exercise the other powers attributed to it by this Treaty.

144

2. The European Council shall determine its own decision-making procedures.

145

Article 33 Organs of the Union

146

1. The Union shall have the following organs:

147

the Court of Auditors,

148

the Economic and Social Committee,

149

the European Investment Bank,

150

the European Monetary Fund.

151

Organic laws shall lay down the rules governing the competences and powers of these organs, their organization and their membership.

152

2. Half the members of the Court of Auditors shall be appointed by the Parliament and half by the Council of the Union.

153

3. The Economic and Social Committee shall be an organ which advises the Commission, the Parliament, the Council of the Union and the European Council; it may address to them opinions drawn up on its own initiative. The Committee shall be consulted on every proposal which has a determining influence on the drawing up and implementation of economic policy and policy for society. The Committee shall adopt its rules of procedure. The membership of the Committee shall ensure adequate representation of the various categories of economic and social activity.

154

4. The European Monetary Fund shall have the autonomy required to guarantee monetary stability.

155

5. Each of the organs referred to above shall be governed by the provisions applicable to the corresponding Community organs at the moment when this Treaty enters into force.

156

The Union may create other organs necessary for its operation by means of an organic law.

157

TITLE II Acts of the Union

158

Article 34 Definition of laws

159

1. Laws shall lay down the rules governing common action. As far as possible, they shall restrict themselves to determining the fundamental principles governing common action and entrust the responsible authorities in the Union or the Member States with setting out in detail the procedures for their implementation.

160

2. The organization and operation of the institutions and other matters expressly provided for in this Treaty shall be governed by organic laws adopted in accordance with the specific procedures laid down in Article 38 of this Treaty.

161

3. Budgetary laws shall be adopted pursuant to the provisions of Article 76 of this Treaty.

162

Article 35 Differentiated application of laws

163

A law may subject to time-limits, or link to transitional measures which may vary according to the addressee, the implementation of its provisions where uniform application thereof would encounter specific difficulties caused by the particular situation of some of its addressees. How ever, such time-limits and measures must be designed to facilitate the subsequent application of all the provisions of the law to all its addressees.

164

Article 36 Legislative authority

165

The Parliament and the Council of the Union shall jointly exercise legislative authority with the active participation of the Commission.

166

Article 37 Right to propose draft laws and amendments thereto

167

1. The Commission shall have the right to propose draft laws. It may withdraw a draft law it has submitted at any time until the Parliament or the Council of the Union have expressly adopted it on first reading.

168

2. On a reasoned request from the Parliament or the Council, the Commission shall submit a draft law conforming to such request. If the Commission declines to do so, the Parliament or the Council may, in accordance with procedures laid down in their rules of procedure, introduce a draft law conforming to their original request. The Commission must express its opinion on the draft.

169

3. Under the conditions laid down in Article 38 of this Treaty:

170

the Commission may put forward amendments to any draft law. Such amendments must be put to the vote as a matter of priority,

171

members of the Parliament and national representations within the Council may similarly put forward amendments during the debates within their respective institutions.

172

Article 38 Voting procedure for draft laws

173

1. All draft laws shall be submitted to the Parliament. Within a period of six months, it may approve the draft with or without amendment. In the case of draft organic laws the Parliament may amend them by an absolute majority; their approval shall require a qualified majority.

174

Where the majority required for approval of the draft is not secured, the Commission shall have the right to amend it and to submit it to the Parliament again.

175

2. The draft law, approved by the Parliament with or without amendment, shall be forwarded to the Council of the Union. Within a period of one month following approval by the Parliament, the Commission may deliver an opinion which shall also be forwarded to the Council.

176

3. The Council shall take a decision within a period of six months. Where it approves the draft by an absolute majority without amending it, or where it rejects it unanimously, the legislative procedure is terminated.

177

Where the Commission has expressly delivered an unfavourable opinion on the draft, or in the case of a draft organic law, the Council shall by a qualified majority approve the draft without amending it or reject it, in which cases the legislative procedure is terminated.

178

Where the draft has been put to the vote but has not secured the majorities referred to above, or where the draft has been amended by a simple majority or, in the case of organic laws, by an absolute majority, the conciliation procedure laid down in paragraph 4 below shall be opened.

179

4. In the cases provided for in the final subparagraph of paragraph 3 aabove, the Conciliation Committee shall be convened. The Committee shall consist of a delegation from the Council of the Union and a delegation from the Parliament. The Commission shall participate in the work of the Committee.

180

Where, within a period of three months, the Committee reaches agreement on a joint text, that text shall be submitted for approval to the Parliament and the Council; they shall take a decision by an absolute majority or, in the case of organic laws, by a qualified majority within a period of three months. No amendments shall be admissible.

181

Where, within the period referred to above the Committee fails to reach agreement, the text forwarded by the Council shall be submitted for approval to the Parliament which shall, within a period of three months, take a decision by an absolute majority or, in the case of organic laws, by a qualified majority. Only amendments tabled by the Commission shall be admissible. Within a period of three months, the Council may reject by a qualified majority the text adopted by the Parliament. No amendments shall then be admissible.

182

5. Without prejudice to Article �23(3) of this Treaty, where the Parliament or the Council fails to submit the draft to a vote within the time-limits laid down, the draft shall be deemed to have been adopted by the institution which has not taken a decision. However, a law may not be regarded as having been adopted unless it has been expressly approved either by the Parliament or by the Council.

183

6. Where a particular situation so requires, the Parliament and the Council may, by common accord, extend the time-limits laid down in this Article.

184

Article 39 Publication of laws

185

Without prejudice to Article 76(4) of this Treaty, the President of the arm of the legislative authority which has taken the last express decision shall establish that the legislative procedure has been completed and shall cause laws to be published without delay in the Official Journal of the Union.

186

Article 40 Power to issue regulations

187

The Commission shall determine the regulations and decisions required for the implementation of laws in accordance with the procedures laid down by those laws. Regulations shall be published in the Official Journal of the Union; decisions shall be notified to the addressees. The Parliament and the Council of the Union shall be immediately informed thereof.

188

Article 41 Hearing of persons affected

189

Before adopting any measure, the institutions of the Union shall, wherever possible and useful, hear the persons thereby affected. Laws of the Union shall lay down the procedures for such hearings.

190

Article 42 The law of the Union

191

The law of the Union shall be directly applicable in the Member States. It shall take precedence over national law. Without prejudice to the powers conferred on the Commission, the implementation of the law shall be the responsibility of the authorities of the Member States. An organic law shall lay down the procedures in accordance with which the Commission shall ensure the implementation of the law. National courts shall apply the law of the Union.

192

Article 43 Judicial review

193

The Community rules governing judicial review shall apply to the Union. They shall be supplemented by an organic law on the basis of the following principles:

194

extension of the right of action of individuals against acts of the Union adversely affecting them,

195

equal right of appeal and equal treatment for all the institutions before the Court of Justice,

196

jurisdiction of the Court for the protection of fundamental rights vis-a-vis the Union,

197

jurisdiction of the Court to annul an act of the Union within the context of an application for a preliminary ruling or of a plea of illegality,

198

creation of a right of appeal to the Court against the decisions of national courts of last instance where reference to the Court for a preliminary ruling is refused or where a preliminary ruling of the Court has been disregarded,

199

jurisdiction of the Court to impose sanctions on a Member State failing to fulfil its obligation under the law of the Union,

200

compulsory jurisdiction of the Court to rule on any dispute between Member States in connection with the objectives of the Union.

201

Article 44 Sanctions

202

In the case provided for in Article 4(4) of this Treaty, and in every other case of serious and persistent violation by a Member State of the provisions of the Treaty, established by the Court of Justice at the request of the Parliament or the Commission, the European Council may, after hearing the Member State concerned and with the approval of the Parliament, take measures:

203

suspending the rights deriving from the application of part or the whole of the Treaty provisions to the State in question and its nationals without prejudice to the rights acquired by the latter,

204

which may go as far as suspending participation by the State in question in the European Council, the Council of the Union and any other organ in which that State is represented as such.

205

The State in question shall not participate in the vote on the sanctions.

206

Part Four THE POLICIES OF THE UNION

207

Article 45 General provisions

208

1. Starting from the Community patrimony, the Union shall continue the actions already undertaken and undertake new actions in compliance with this Treaty and, in particular, with Article 9 thereof.

209

2. The structural and conjunctural policies of the Union shall be drawn up and implemented so as to promote, together with balanced expansion throughout the Union, the progressive elimination of the existing imbalances between its various areas and regions.

210

Article 46 Homogeneous judicial area

211

In addition to the fields subject to common action, the coordination of national law with a view to constituting a homogeneous judicial area shall be carried out in accordance with the method of cooperation. This shall be done in particular:

212

to take measures designed to reinforce the feeling of individual citizens that they are citizens of the Union,

213

to fight international forms of crime, including terrorism.

214

The Commission and the Parliament may submit appropriate recommendations to the European Council.

215

TITLE I Economic policy

216

Article 47 Internal market and freedom of movement

217

1. The Union shall have exclusive competence to complete, safeguard and develop the free movement of persons, services, goods and capital within its territory; it shall have exclusive competence for trade between Member States.

218

2. This liberalization process shall take place on the basis of detailed and binding programmes and timetables laid down by the legislative authority in accordance with the procedures for adopting laws. The Commission shall adopt the implementing procedures for those programmes.

219

3. Through those programmes, the Union must attain:

220

within a period of two years following the entry into force of this Treaty, the free movement of persons and goods; this implies in particular the abolition of personal checks at internal frontiers,

221

within a period of five years following the entry into force of this Treaty, the free movement of services, including banking and all forms of insurance,

222

within a period of 10 years following the entry into force of this Treaty, the free movement of capital.

223

Article 48 Competition

224

The Union shall have exclusive competence to complete and develop competition policy at the level of the Union, bearing in mind:

225

the need to establish a system for the authorization of concentrations of undertakings based on the criteria laid down by Article 66 of the Treaty establishing the European Coal and Steel Community,

226

the need to restructure and strengthen the industry of the Union in the light of the profound disturbances which may be caused by international competition,

227

the need to prohibit any form of discrimination between private and public undertakings.

228

Article 49 Approximation of the laws relating to undertakings and taxation

229

The Union shall take measures designed to approximate the laws, regulations and administrative provisions relating to undertakings, and in particular to companies, in so far as such provisions have a direct effect on a common action of the Union. A law shall lay down a Statute for European Undertakings.

230

In so far as necessary for economic integration within the Union, a law shall effect the approximation of the laws relating to taxation.

231

Article 50 Conjunctural policy

232

1. The Union shall have concurrent competence in respect of conjunctural policy, with a particular view to facilitating the coordination of economic policies within the Union.

233

2. The Commission shall define the guidelines and objectives to which the action of the Member States shall be subject on the basis of the principles and within the limits laid down by laws.

234

3. Laws shall lay down the conditions under which the Commission shall ensure that the measures taken by the Member States conform with the objectives it has defined. Laws shall authorize the Commission to make the monetary, budgetary or financial aid of the Union conditional on compliance with the measures taken under paragraph 2 above.

235

4. Laws shall lay down the conditions under which the Commission, in conjunction with the Member States, shall utilize the budgetary or financial mechanisms of the Union for conjunctural ends.

236

Article 51 Credit policy

237

The Union shall exercise concurrent competence as regards European monetary and credit policies, with the particular objective of coordinating the use of capital market resources by the creation of a European capital market committee and the establishment of a European bank supervisory authority.

238

Article 52 European Monetary System

239

1. All the Member States shall participate in the European Monetary System, subject to the principle set out in Article 35 of this Treaty.

240

2. The Union shall have concurrent competence for the progressive achievement of full monetary union.

241

3. An organic law shall lay down rules governing:

242

the Statute and the operation of the European Monetary Fund in accordance with Article 33 of this Treaty,

243

the conditions for the effective transfer to the European Monetary Fund of part of the reserves of the Member States,

244

the conditions for the progressive conversion of the ECU into a reserve currency and a means of payment, and its wider use,

245

the procedures and the stages for attaining monetary union,

246

the duties and obligations of the central banks in the determination of their objectives regarding money supply.

247

4. During the five years following the entry into force of this Treaty, by derogation from Articles 36, 38 and 39 thereof, the European Council may suspend the entry into force of the organic laws referred to above within a period of one month following their adoption and refer them back to the Parliament and the Council of the Union for fresh consideration.

248

Article 53 Sectoral policies

249

In order to meet the particular needs for the organization, development or coordination of specific sectors of economic activity, the Union shall have concurrent competence with the Member States to pursue sectoral policies at the level of the Union. In the fields referred to below, such policies shall, by the establishment of reliable framework conditions, in particular pursue the aim of facilitating the decisions which undertakings subject to competition must take concerning investment and innovation.

250

The sectors concerned are in particular:

251

agriculture and fisheries,

252

transport,

253

telecommunications,

254

research and development,

255

industry,

256

energy.

257

(a) In the fields of agriculture and fisheries, the Union shall pursue a policy designed to attain the objectives laid down in Article 39 of the Treaty establishing the European Economic Community.

258

(b) In the field of transport, the Union shall pursue a policy designed to contribute to the economic integration of the Member States. It shall, in particular, undertake common actions to put an end to all forms of discrimination, harmonize the basic terms of competition between the various modes of transport, eliminate obstacles to transfrontier traffic and develop the capacity of transport routes so as to create a transport network commensurate with European needs.

259

(c) In the field of telecommunications, the Union shall take common action to establish a telecommunications network with common standards and harmonize tariffs; it shall exercise competence in particular with regard to the high technology sectors, research and development activities and public procurement policy.

260

(d) In the field of research and development, the Union may draw up common strategies with a view to coordinating and guiding national activities and encouraging cooperation between the Member States and between research institutes. It may provide financial support for joint research, may take responsibility for some of the risks involved and may undertake research in its own establishments.

261

(e) In the field of industry, the Union may draw up development strategies with a view to guiding and coordinating the policies of the Member States in those industrial branches which are of particular significance to the economic and political security of the Union. The Commission shall be responsible for taking the requisite implementing measures. It shall submit to the Parliament and the Council of the Union a periodic report on industrial policy problems.

262

(f) In the field of energy, action by the Union shall be designed to ensure security of supplies, stability on the market of the Union and, to the extent that prices are regulated, a harmonized pricing policy compatible with fair competitive practices. It shall also be designed to encourage the development of alternative and renewable energy sources, to introduce common technical standards for efficiency, safety, the protection of the environment and of the population, and to encourage the exploitation of European sources of energy.

263

Article 54 Other forms of cooperation

264

1. Where Member States have taken the initiative to establish industrial cooperation structures outside the scope of this Treaty, the European Council may, if the common interest justifies it, decide to convert those forms of cooperation into a common action of the Union.

265

2. In specific sectors subject to common action, laws may establish specialized European agencies and define those forms of supervision applicable thereto.

266

TITLE II Policy for society

267

Article 55 General provisions

268

The Union shall have concurrent competence in the field of social, health, consumer protection, regional, environmental, education and research, cultural and information policies.

269

Article 56 Social and health policy

270

The Union may take action in the field of social and health policy, in particular in matters relating to:

271

employment, and in particular the establishment of general comparable conditions for the maintenance and creation of jobs,

272