THE TREATY OF ROME
25 March 1957
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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,
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 improvement 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,
HAVE DECIDED to create a European Economic Community and to this end have
designated as their Plenipotentiaries:
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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 exchanges their Full Powers, found in good and due form, HAVE
AGREED as follows:
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PART ONE
PRINCIPLES
ARTICLE 1
By this Treaty, the HIGH CONTRACTING PARTIES establish among themselves a
EUROPEAN ECONOMIC COMMUNITY.
ARTICLE 2
The Community shall have as its task, by establishing a common market and
progressively approximating the economic policies of Member States, to promote
throughout the Community a harmonious development of economic activities, a
continuous and balanced expansion, an increase in stability, an accelerated raising of the
standard of living and closer relations between the States belonging to it.
ARTICLE 3
For the purposes set out in Article 2, the activities of the Community shall include, as
provided in this Treaty and in accordance with the timetable set out therein
(a) the elimination, as between Member States, of customs duties and of quantitative
restrictions on the import and export of goods, and of all other measures having
equivalent effect;
(b) the establishment of a common customs tariff and of a common commercial
policy towards third countries;
(c) the abolition, as between Member States, of obstacles to freedom of movement for
persons, services and capital;
(d) the adoption of a common policy in the sphere of agriculture;
(e) the adoption of a common policy in the sphere of transport;
(f) the institution of a system ensuring that competition in the common market is not
distorted;
(g) the application of procedures by which the economic policies of Member States
can he co-ordinated and disequilibria in their balances of payments remedied;
(h) the approximation of the laws of Member States to the extent required for the
proper functioning of the common market;
(i) the creation of a European Social Fund in order to improve employment
opportunities for workers and to contribute to the raising of their standard of
living;
(j) the establishment of a European Investment Bank to facilitate the economic
expansion of the Community by opening up fresh resources;
(k) the association of the overseas countries and territories in order to increase trade
and to promote jointly economic and social development.
ARTICLE 4
1. The tasks entrusted to the Community shall be carried out by the following
institutions:
an ASSEMBLY [EUROPEAN PARLIAMENT],
a COUNCIL,
a COMMISSION,
a COURT OF JUSTICE.
5
Each institution shall act within the limits of the powers conferred upon it by this
Treaty.
2. The Council and the Commission shall be assisted by an economic and Social
Committee acting in an advisory capacity.
ARTICLE 5
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
objections of this Treaty.
ARTICLE 6
1. Member States shall, in close co-operation with the institutions of the Community,
co-ordinate their respective economic policies to the extent necessary to attain the
objectives of this Treaty.
2. The institutions of the Community shall take care not to prejudice the internal and
external financial stability of the Member States.
ARTICLE 7
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 may, on a proposal from the Commission and after consulting the
Assembly [European Parliament], adopt, by a qualified majority, rules designed to
prohibit such discrimination.
ARTICLE 8
1. The common market shall be progressively established during a transitional period
of twelve years.
This transitional period shall be divided into three stages of four years each; the length
of each stage may be altered in accordance with the provisions set out below.
2. To each stage there shall be assigned a set of actions to be initiated and carried
through concurrently.
3. Transition from the first to the second stage shall be conditional upon a finding
that the objectives specifically laid down in this Treaty for the first stage have in fact
been attained in substance and that, subject to the exceptions and procedures provided
for in this Treaty, the obligations have been fulfilled.
This finding shall be made at the end of the fourth year by the Council, acting
unanimously on a report from the Commission. A Member State may not, however,
prevent unanimity by relying upon the non-fulfilment of its own obligations. Failing
unanimity, the first stage shall automatically be extended for one year.
At the end of the fifth year, the Council shall make its finding under the same
conditions. Failing unanimity, the first stage shall be automatically be extended for a
further year.
At the end of the sixth year, the Council shall make its finding, acting by a qualified
majority on a report from the Commission.
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4. Within one month of the last-mentioned vote any Member State which voted with
the minority or, if the required majority was not obtained, any Member State shall be
entitled to call upon the Council to appoint an arbitration board whose decision shall be
binding upon all Member States and upon the institutions of the Community. The
arbitration board shall consist of three members appointed by the Council acting
unanimously on a proposal from the Commission.
If the Council has not appointed the members of the arbitration board within one month
of being called upon to do so, they shall be appointed by the Court of Justice within a
further period of one month.
The arbitration board shall elect its own Chairman.
The board shall make its award within six months of the date of the Council vote
referred to in the last subparagraph of paragraph 3.
5. The second and third stages may not be extended or curtailed except by a decision
of the Council, acting unanimously on a proposal from the Commission.
6. Nothing in the preceding paragraphs shall cause the transitional period to last
more than fifteen years after the entry into force of this Treaty.
7. Save for the exceptions or derogations provided for in this Treaty, the expiry of
the transitional period shall constitute the latest date by which all the rules laid down
must enter into force and all the measures required for establishing the common market
must be implemented.
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PART TWO
FOUNDATIONS OF THE COMMUNITY
TITLE I
FREE MOVEMENT OF GOODS
ARTICLE 9
1. 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.
2. The provisions of Chapter 1, Section 1, 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.
ARTICLE 10
1. 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.
2. The Commission shall, before the end of the first year after the entry into force of
this Treaty, determine the methods of administrative co-operation to be adopted for the
purpose of applying Article 9(2), taking into account the need to reduce as much as
possible formalities imposed on trade.
Before the end of the first year after the entry into force of this Treaty, the Commission
shall lay down the provisions applicable, as regards trade between Member States, to
goods originating in another Member State in whose manufacture products have been
used on which the exporting Member State has not levied the appropriate customs
duties or charges having equivalent effect- or which have benefited from a total or
partial drawback of such duties or charges.
In adopting these provisions, the Commission shall take into account the rules for the
elimination of customs duties within the Community and for the progressive application
of the common customs tariff.
ARTICLE 11
Member States shall take all appropriate measures to enable Governments to carry out,
within the periods of time laid down, the obligations with regard to customs duties
which devolve upon them pursuant to this Treaty.
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CHAPTER 1
THE CUSTOMS UNION
SECTION 1
ELIMINATION OF CUSTOMS DUTIES BETWEEN MEMBER STATES
ARTICLE 12
Member States shall refrain from introducing between themselves any new customs
duties on imports or exports or any charges having equivalent effect, and from
increasing those which they already apply in their trade with each other.
ARTICLE 13
1. Customs duties on imports in force between Member States shall be progressively
abolished by them during the transitional period in accordance with Articles 14 and 15.
2. Charges having an effect equivalent to customs duties on imports, in force
between Member States, shall be progressively abolished by them during the
transitional period. The Commission shall determine by means of directives the
timetable for such abolition. It shall be guided by the rules contained in Article 14(2)
and (3) and by the directives issued by the Council pursuant to Article 14(2).
ARTICLE 14
1. For each product, the basic duty to which the successive reductions shall be applied
shall be the duty applied on 1 January 1957.
2. The timetable for the reductions shall be determined as follows:
(a) during the first stage, the first reduction shall be made one year after the date when
this Treaty enters into force; the second reduction, eighteen months later; the third
reduction, at the end of the fourth year after the date when this Treaty enters into
force;
(b) during the second stage, a reduction shall be made eighteen months after that stage
begins; a second reduction, eighteen months after the preceding one; a third
reduction, one year later;
(c) any remaining reductions shall be made during the third stage; the Council shall,
acting by a qualified majority on a proposal from the Commission, determine the
timetable therefor by means of directives.
3. At the time of the first reduction, Member States shall introduce between
themselves a duty on each product equal to the basic duty minus 10%.
At the time of each subsequent reduction, each Member State shall reduce its customs
duties as a whole in such manner as to lower by 10% its total customs receipts as
defined in paragraph 4 and to reduce the duty on each product by at least 5% of the
basic duty.
In the case, however, of products on which the duty is still in excess of 30%, each
reduction must be at least 10% of the basic duty.
4. The total customs receipts of each Member State, as referred to in paragraph 3,
shall be calculated by multiplying the value of its imports from other Member States
during 1956 by the basic duties.
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5. Any special problems raised in applying paragraphs 1 to 4 shall be settled by
directives issued by the Council acting by a qualified majority on a proposal from the
Commission.
6. Member States shall report to the Commission on the manner in which effect has
been given to the preceding rules for the reduction of duties. They shall endeavour to
ensure that the reduction made in the duties on each product shall amount:
- at the end of the first stage, to at least 25% of the basic duty;
- at the end of the second stage, to at least 50% of the basic duty.
If the Commission finds that there is a risk that the objectives laid down in Article 13,
and the percentages laid down in this paragraph, cannot be attained, it shall make all
appropriate recommendations to Member States.
7. The provisions of this Article may be amended by the Council, acting
unanimously on a proposal from the Commission and after consulting the Assembly
[European Parliament].
ARTICLE 15
1. Irrespective of the provisions of Article 14, any Member State may, in the course
of the transitional period, suspend in whole or in part the collection of duties applied by
it to products imported from other Member States. It shall inform the other member
States and the Commission thereof.
2. The Member States declare their readiness to reduce customs duties against the
other Member States more rapidly than is provided for in Article 14 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.
ARTICLE 16
Member States shall abolish between themselves customs duties on exports and charges
having equivalent effect by the end of the first stage at the latest.
ARTICLE 17
1. The provisions of Articles 9 to 15(1) shall also apply to customs duties of a fiscal
nature. Such duties shall not, however, be taken into consideration for the purpose of
calculating either total customs receipts or the reduction of customs duties as a whole as
referred to in Article 14(3) and (4).
Such duties shall, at each reduction, be lowered by not less than 10% of the basic duty.
Member States may reduce such duties more rapidly than is provided for in Article 14.
2. Member States shall, before the end of the first year after the entry into force of
this Treaty, inform the Commission of their customs duties of a fiscal nature.
3. Member States shall retain the right to substitute for these duties an internal tax
which complies with the provisions of Article 95.
4. If the Commission finds that substitution for any customs duty of a fiscal nature
meets with serious difficulties in a Member State, it shall authorise that State to retain
the duty on condition that it shall abolish it not later than six years after the entry into
force of this Treaty. Such authorisation must be applied for before the end of the first
year after the entry into force of this Treaty.
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SECTION 2
SETTING UP OF THE COMMON CUSTOMS TARIFF
ARTICLE 18
The Member States declare their readiness to contribute to the development of
international trade and the lowering of barriers to trade by entering into agreements
designed, on a basis of reciprocity and mutual advantage, to reduce customs duties
below the general level of which they could avail themselves as a result of the
establishment of a customs union between them.
ARTICLE 19
1. Subject to the conditions and within the limits provided for hereinafter, duties in
the common customs tariff shall be at the level of the arithmetical average of the duties
applied in the four customs territories comprised in the Community.
2. The duties taken as the basis for calculating this average shall be those applied by
Member States on i January 1959.
In the case of the Italian tariff, however, the duty applied shall be that without the
temporary 10% reduction. Furthermore, with respect to items on which the Italian tariff
contains a conventional duty, this duty shall be substituted for the duty applied as
defined above, provided that it does not exceed the latter by more than 10%. Where the
conventional duty exceeds the duty applied as defined above by more than 10%, the
latter duty plus 10% shall be taken as the basis for calculating the arithmetical average.
With regard to the tariff headings in List A, the duties shown in that List shall, for the
purpose of calculating the arithmetical average, be substituted for the duties applied.
3. The duties in the common customs tariff shall not exceed:
(a) 3% for products within the tariff headings in List B;
(b) 10% for products within the tariff headings in List C;
(c) 15% for products within the tariff headings in List D;
(d) 25% for products within the tariff headings in List E; where in respect of such
products, the tariff of the Benelux countries contains a duty not exceeding 3%,
such duty shall, for the purpose of calculating the arithmetical average, be raised
to 12%.
4. List F prescribes the duties applicable to the products listed therein.
5. The Lists of tariff headings referred to in this Article and in Article 20 are set out
in Annex 1 to this Treaty.
ARTICLE 20
The duties applicable to the products in List G shall be determined by negotiation
between the Member States. Each Member State may add further products to this List to
a value not exceeding 2% of the total value of its imports from third countries in the
course of the year 1956.
The Commission shall take all appropriate steps to ensure that such negotiations shall be
undertaken before the end of the second year after the entry into force of this Treaty and
be concluded before the end of the first stage.
If, for certain products, no agreement can be reached within these periods, the Council
shall, on a proposal from the Commission, acting unanimously until the end of the
11
second stage and by a qualified majority thereafter, determine the duties in the common
customs tariff.
ARTICLE 21
1. Technical difficulties which may arise in applying Articles 19 and 20 shall be
resolved, within two years of the entry into force of this Treaty, by directives issued by
the Council acting by a qualified majority on a proposal from the Commission.
2. Before the end of the first stage, or at latest when the duties are determined, the
Council shall, acting by a qualified majority on a proposal from the Commission, decide
on any adjustments required in the interests of the internal consistency of the common
customs tariff as a result of applying the rules set out in Articles 19 and 20, taking
account in particular of the degree of processing undergone by the various goods to
which the common tariff applies.
ARTICLE 22
The commission shall, within two years of the entry into force of this Treaty, determine
the extent to which the customs duties of a fiscal nature referred to in Article 17(2) shall
be taken into account in calculating the arithmetical average provided for in Article
19(1). The Commission shall take account of any protective character which such duties
may have.
Within six months of such determination, any Member State may request that the
procedure provided for in Article 20 should be applied to the product in question, but in
this event the percentage limit provided in that Article shall not be applicable to that
State.
ARTICLE 23
1. For the purpose of the progressive introduction of the common customs tariff,
Member States shall amend their tariffs applicable to third countries as follows:
(a) in the case of tariff headings on which the duties applied in practice on 1 January
1957 do not differ by more than 15% in either direction from the duties in the
common customs tariff, the latter duties shall be applied at the end of the fourth
year after the entry into force of this Treaty;
(b) in any other case, each Member State shall, as from the same date, apply a duty
reducing by 30% the difference between the duty applied in practice on 1 January
1957 and the duty in the common customs tariff;
(c) at the end of the second stage this difference shall again be reduced by 30%;
(d) in the case of tariff headings for which the duties in the common customs tariff are
not yet available at the end of the first stage, each Member State shall, within six
months of the Council’s action in accordance with Article 20, apply such duties as
would result from application of the rules contained in this paragraph.
2. Where a Member State has been granted an authorisation under Article 17(4), it
need not, for as long as that authorisation remains valid, apply the preceding provisions
to the tariff headings to which the authorisation applies. When such authorisation
expires, the Member State concerned shall apply such duty as would have resulted from
application of the rules contained in paragraph 1.
3. The common customs tariff shall be applied in its entirety by the end of the
transitional period at the latest.
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ARTICLE 24
Member States shall remain free to change their duties more rapidly than is provided for
in Article 23 in order to bring them into line with the common customs tariff.
ARTICLE 25
1. If the Commission finds that the production in Member States of particular
products contained in Lists B, C and D is insufficient to supply the demands of one of
the Member States, and that such supply traditionally depends to a considerable extent
on imports from third countries, the Council shall, acting by a qualified majority on a
proposal from the Commission, grant the Member State concerned tariff quotas at a
reduced rate of duty or duty free.
Such quotas may not exceed the limits beyond which the risk might arise of activities
being transferred to the detriment of other Member States.
2. In the case of the products in List E, and of those in List G for which the rates of
duty have been determined in accordance with the procedure provided for in the third
paragraph of Article 20, the Commission shall, where a change in sources of supply or
shortage of supplies within the Community is such as to entail harmful consequences
for the processing industries of a Member State, at the request of that Member State,
grant it tariff quotas at a reduced rate of duty or duty free.
Such quotas may not exceed the limits beyond which the risk might arise of activities
being transferred to the detriment of other Member States.
3. In the case of the products listed in Annex II to this Treaty, the Commission may
authorise any Member State to suspend, in whole or in part, collection of the duties
applicable or may grant such Member State tariff quotas at a reduced rate of duty or
duty free, provided that no serious disturbance of the market of the products concerned
results therefrom.
4. The Commission shall periodically examine tariff quotas granted pursuant to this
Article.
ARTICLE 26
The Commission may authorise any Member State encountering special difficulties to
postpone the lowering or raising of duties provided for in Article 23 in respect of
particular headings in its tariff.
Such authorisation may only be granted for a limited period and in respect of tariff
headings which, taken together, represent for such State not more than 5% of the value
of its imports from third countries in the course of the latest year for which statistical
data are available.
ARTICLE 27
Before the end of the first stage, Member States shall, in so far as may be necessary,
take steps to approximate their provisions laid down by law, regulation or
administrative action in respect of customs matters. To this end, the Commission shall
make all appropriate recommendations to Member States.
ARTICLE 28
Any autonomous alteration or suspension of duties in the common customs tariff shall
be decided unanimously by the Council. After the transitional period has ended,
however, the Council may, acting by a qualified majority on a proposal from the
13
Commission, decide on alterations or suspensions which shall not exceed 20% of the
rate in the case of any one duty for a maximum period of six months. Such alterations or
suspensions may only be extended, under the same conditions, for one further period of
six months.
ARTICLE 29
In carrying out the tasks entrusted to it under this Section 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 in so far 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.
CHAPTER 2
ELIMINATION OF QUANTITATIVE RESTRICTIONS
BETWEEN MEMBER STATES
ARTICLE 30
Quantitative restrictions on imports and all measures having equivalent effect shall,
without prejudice to the following provisions, be prohibited between Member States.
ARTICLE 31
Member States shall refrain from introducing between themselves any new quantitative
restrictions or measures having equivalent effect.
This obligation shall, however, relate only to the degree of liberalisation attained in
pursuance of the decisions of the Council of the Organisation for European Economic
Co-operation of 14 January 1955. Member States shall supply the Commission, not later
than six months after the entry into force of this Treaty, with lists of the products
liberalised by them in pursuance of these decisions. These lists shall be consolidated
between Member States.
ARTICLE 32
In their trade with one another Member States shall refrain from making more
restrictive the quotas and measures having equivalent effect existing at the date of the
entry into force of this Treaty.
These quotas shall be abolished by the end of the transitional period at the latest. During
that period, they shall be progressively abolished in accordance with the following
provisions.
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ARTICLE 33
1. One year after the entry into force of this Treaty, each Member State shall convert
any bilateral quotas open to any other Member States into global quotas open without
discrimination to all other Member States.
On the same date, Member States shall increase the aggregate of the global quotas so
established in such a manner as to bring about an increase of not less than 20% in their
total value as compared with the preceding year. The global quota for each product,
however, shall be increased by not less than 10%.
The quotas shall be increased annually in accordance with the same rules and in the
same proportions in relation to the preceding year.
The fourth increase shall take place at the end of the fourth year after the entry into
force of this Treaty; the fifth, one year after the beginning of the second stage.
2. Where, in the case of a product which has not been liberalised, the global quota
does not amount to 3% of the national production of the State concerned, a quota equal
to not less than 3% of such national production shall be introduced not later than one
year after the entry into force of this Treaty. This quota shall be raised to 4% at the end
of the second year, and to 5% at the end of the third. Thereafter, the Member State
concerned shall increase the quota by not less than 15% annually.
Where there is no such national production, the Commission shall take a decision
establishing an appropriate quota.
3. At the end of the tenth year, each quota shall be equal to not less than 20% of the
national production.
4. If the Commission finds by means of a decision that during two successive years
the imports of any product have been below the level of the quota opened, this global
quota shall not be taken into account in calculating the total value of the global quotas.
In such case, the Member State shall abolish quota restrictions on the product
concerned.
5. In the case of quotas representing more than 20% of the national production of the
product concerned, the Council may, acting by a qualified majority on a proposal from
the Commission, reduce the minimum percentage of 10% laid down in paragraph 1.
This alteration shall not, however, affect the obligation to increase the total value of
global quotas by 20% annually.
6. Member States which have exceeded their obligations as regards the degree of
liberalisation attained in pursuance of the decisions of the Council of the Organisation
for European Economic Co-operation of 14 January 1955 shall be entitled, when
calculating the annual total increase of 20% provided for n paragraph 1, to take into
account the amount of imports liberalised by autonomous action. Such calculation shall
be submitted to the Commission for its prior approval.
7. The Commission shall issue directives establishing the procedure and timetable in
accordance with which Member States shall abolish, as between themselves, any
measures in existence when this Treaty enters into force which have an effect equivalent
to quotas.
8. If the Commission finds that the application of the provisions of this Article, and
in particular of the provisions concerning percentages, makes it impossible to ensure
that the abolition of quotas provided for in the second paragraph of Article 32 is carried
out progressively, the Council may, on a proposal from the Commission, acting
unanimously during the first stage and by a qualified majority thereafter, amend the
15
procedure laid down in this Article and may, in particular, increase the percentages
fixed.
ARTICLE 34
1. Quantitative restrictions on exports, and all measures having equivalent effect,
shall be prohibited between Member States.
2. Member States shall, by the end of the first stage at the latest, abolish all
quantitative restrictions on exports and any measures having equivalent effect which are
in existence when this Treaty enters into force.
ARTICLE 35
The Member States declare their readiness to abolish quantitative restrictions on imports
from and exports to other Member States more rapidly than is provided for in the
preceding Articles, if their economic situation and the situation of the economic sector
concerned so permit.
To this end, the Commission shall make recommendations to the States concerned.
ARTICLE 36
The provisions of Articles 30 to 34 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.
ARTICLE 37
1. Member States shall progressively adjust any State monopolies of a commercial
character so as to ensure that when the transitional period has ended 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.
2. 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 abolition of customs duties and quantitative restrictions between
Member States.
3. The timetable for the measures referred to in paragraph 1 shall be harmonised with
the abolition of quantitative restrictions on the same products provided for in Articles 30
to 34.
If a product is subject to a State monopoly of a commercial character in only one or
some Member States, the Commission may authorise the other Member States to apply
protective measures until the adjustment provided for in paragraph 1 has been effected;
the Commission shall determine the conditions and details of such measures.
4. 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,
16
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,
account being taken of the adjustments that will be possible and the specialisation that
will be needed with the passage of time.
5. The obligations on Member States shall be binding only in so far as they are
compatible with existing international agreements.
6. With effect from the first stage the Commission shall make recommendations as to
the manner in which and the timetable according to which the adjustment provided for
in this Article shall be carried out.
TITLE II
AGRICULTURE
ARTICLE 38
1. The common market shall extend to agriculture and trade in agricultural products.
“Agricultural products” means the products of the soil, of stock-farming and of fisheries
and products of first-stage processing directly related to these products.
2. Save as otherwise provided in Articles 39 to 46, the rules laid down for the
establishment of the common market shall apply to agricultural products.
3. The products subject to the provisions of Articles 39 to 46 are listed in Annex II to
this Treaty. Within two years of the entry into force of this Treaty, however, the Council
shall, acting by a qualified majority on a proposal from the Commission, decide what
products are to be added to this list.
4. The operation and development of the common market for agricultural products
must be accompanied by the establishment of a common agricultural policy among the
Member States.
ARTICLE 39
1. 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.
2. 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;
17
(b) the need 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.
ARTICLE 40
1. Member States shall develop the common agricultural policy by degrees during
the transitional period and shall bring it into force by the end of that period at the latest.
2. In order to attain the objectives set out in Article 39 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 co-ordination of the various national market organisations;
(c) a European market organisation.
3. The common organisation established in accordance with paragraph 2 may include
all measures required to attain the objectives set out in Article 39, in particular
regulation of prices, aids for the production and marketing of the various products,
storage and carry-over arrangements and common machinery for stabilising imports or
exports.
The common organisation shall be limited to pursuit of the objectives set out in
Article 39 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.
4. In order to enable the common organisation referred to in paragraph 2 to attain its
objectives, one or more agricultural guidance and guarantee funds may be set up.
ARTICLE 41
To enable the objectives set out in Article 39 to attained, provision may be made within
the framework of the common agricultural policy for measures such as:
(a) an effective co-ordination 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.
ARTICLE 42
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 43(2) and (3) and in accordance with the procedure laid down
therein, account being taken of the objectives set out in Article 39.
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.
ARTICLE 43
1. 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
18
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.
2. 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 40(2),
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
Assembly [European Parliament], acting unanimously during the first two stages and by
a qualified majority thereafter, make regulations, issue directives, or take decisions,
without prejudice to any recommendations it may also make.
3. 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 40(2) 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.
4. 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.
ARTICLE 44
1. In so far as progressive abolition of customs duties and quantitative restrictions
between Member States may result in prices likely to jeopardise the attainment of the
objectives set out in Article 39, each Member State shall, during the transitional period,
be entitled to apply to particular products, in a non-discriminatory manner and in
substitution for quotas and to such an extent as shall not impede the expansion of the
volume of trade provided for in Article 45(2), a system of minimum prices below which
imports may be either:
- temporarily suspended or reduced; or
- allowed, but subjected to the condition that they are made at a price higher than
the minimum price for the product concerned.
In the latter case the minimum prices shall not include customs duties.
2. Minimum prices shall neither cause a reduction of the trade existing between
Member States when this Treaty enters into force nor form an obstacle to progressive
expansion of this trade. Minimum prices shall not be applied so as to form an obstacle
to the development of a natural preference between Member States.
3. As soon as this Treaty enters into force the Council shall, on a proposal from the
Commission, determine objective criteria for the establishment of minimum price
systems and for the fixing of such prices.
19
These criteria shall in particular take account of the average national production costs in
the Member State applying the minimum price, of the position of the various
undertakings concerned in relation to such average production costs, and of the need to
promote both the progressive improvement of agricultural practice and the adjustments
and specialisation needed within the common market.
The Commission shall further propose a procedure for revising these criteria in order to
allow for and speed up technical progress and to approximate prices progressively
within the common market.
These criteria and the procedure for revising them shall be determined by the Council
acting unanimously within three years of the entry into force of this Treaty.
4. Until the decision of the Council takes effect, member States may fix minimum
prices on condition that these are communicated beforehand to the Commission and to
the other Member States so that they may submit their comments.
Once the Council has taken its decision, Member States shall fix minimum prices on the
basis of the criteria determined as above.
The Council may, acting by a qualified majority on a proposal from the Commission,
rectify any decisions taken by Member States which do not conform to the criteria
defined above.
5. If it does not prove possible to determine the said objective criteria for certain
products by the beginning of the third stage, the Council may, acting by a qualified
majority on a proposal from the Commission, vary the minimum prices applied to these
products.
6. At the end of the transitional period, a table of minimum prices still in force shall
be drawn up. The Council shall, acting on a proposal from the Commission and by a
majority of nine votes in accordance with the weighting laid down in the first
subparagraph of Article 148(2), determine the system to be applied within the
framework of the common agricultural policy.
ARTICLE 45
1. Until national market organisations have been replaced by one of the forms of
common organisation referred to in Article 40(2), trade in products in respect of which
certain Member States:
- have arrangements designed to guarantee national producers a market for their
products; and
- are in need of imports,
shall be developed by the conclusion of long-term agreements or contracts between
importing and exporting Member States.
These agreements or contracts shall be directed towards the progressive abolition of any
discrimination in the application of these arrangements to the various producers within
the Community.
Such agreements or contracts shall be concluded during the first stage; account shall be
taken of the principle of reciprocity.
2. As regards quantities, these agreements or contracts shall be based on the average
volume of trade between Member States in the products concerned during the three
years before the entry into force of this Treaty and shall provide for an increase in the
volume of trade within the limits of existing requirements, account being taken of
traditional patterns of trade.
20
As regards prices, these agreements or contracts shall enable producers to dispose of the
agreed quantities at prices which shall be progressively approximated to those paid to
national producers on the domestic market of the purchasing country.
This approximation shall proceed as steadily as possible and shall be completed by the
end of the transitional period at the latest.
Prices shall be negotiated between the parties concerned within the framework of
directives issued by the Commission for the purpose of implementing the two preceding
subparagraphs.
If the first stage is extended, these agreements or contracts shall continue to be carried
out in accordance with the conditions applicable at the end of the fourth year after the
entry into force of this Treaty, the obligation to increase quantities and to approximate
prices being suspended until the transition to the second stage.
Member States shall avail themselves of any opportunity open to them under their
legislation, particularly in respect of import policy, to ensure the conclusion and
carrying out of these agreements or contracts.
3. To the extent that Member States require raw materials for the manufacture of
products to be exported outside the Community in competition with products of third
countries, the above-agreements or contracts shall not form an obstacle to the
importation of raw materials for this purpose from third countries. This provision shall
not, however, apply if the Council unanimously decides to make provision for payments
required to compensate for the higher price paid on goods imported for this purpose on
the basis of these agreements or contracts in relation to the delivered price of the same
goods purchased on the world market.
ARTICLE 46
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.
ARTICLE 47
As to the functions to be performed by the Economic and Social Committee in
pursuance of this Title, its agricultural section shall hold itself at the disposal of the
Commission to prepare, in accordance with the provisions of Articles 197 and 198, the
deliberations of the Committee.
21
TITLE III
FREE MOVEMENT OF PERSONS, SERVICES AND CAPITAL
CHAPTER 1
WORKERS
ARTICLE 48
1. Freedom of movement for workers shall be secured within the Community by the
end of the transitional period at the latest.
2. 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.
3. 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.
4. The provisions of this Article shall not apply to employment in the public service.
ARTICLE 49
As soon as this Treaty enters into force, the Council shall, acting on a proposal from the
Commission and after consulting the Economic and Social Committee, issue directives
or make regulations setting out the measures required to bring about, by progressive
stages, freedom of movement for workers, as defined in Article 48, in particular:
(a) by ensuring close co-operation between national employment services;
(b) by systematically and progressively 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 systematically and progressively 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.
22
ARTICLE 50
Member States shall, within the framework of a joint programme, encourage the
exchange of young workers.
ARTICLE 51
The Council shall, acting unanimously on a proposal from the Commission, 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.
CHAPTER 2
RIGHT OF ESTABLISHMENT
ARTICLE 52
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 abolished by progressive stages in the course of the transitional period. Such
progressive abolition 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 selfemployed
persons and to set up and manage undertakings, in particular companies or
firms within the meaning of the second paragraph of Article 58, 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.
ARTICLE 53
Member States shall not introduce any new restrictions on the right of establishment in
their territories of nationals of other Member States, save as otherwise provided in this
Treaty.
ARTICLE 54
1. Before the end of the first stage, the Council shall, acting unanimously on a
proposal from the Commission and after consulting the Economic and Social
Committee and the Assembly [European Parliament], draw up a general programme for
the abolition of existing restrictions on freedom of establishment within the
Community. The Commission shall submit its proposal to the Council during the first
two years of the first stage.
The programme shall set out the general conditions under which freedom of
establishment is to be attained in the case of each type of activity and in particular the
stages by which it is to be attained.
2. In order to implement this general programme or, in the absence of such
programme, in order to achieve a stage in attaining freedom of establishment as regards
23
a particular activity, the Council shall, on a proposal from the Commission and after
consulting the Economic and Social Committee and the Assembly [European
Parliament], issue directives, acting unanimously until the end of the first stage and by a
qualified majority thereafter.
3. 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 co-operation 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 Sate 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, in so far as this does not conflict
with the principles laid down in Article 39(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 of 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 co-ordinating to the necessary extent the safeguards which, for the protection of
the interests of members and others, are required by Member States of companies
or firms within the meaning of the second paragraph of Article 58 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.
ARTICLE 55
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.
ARTICLE 56
1. 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.
24
2. Before the end of the transitional period, the Council shall, acting unanimously on
a proposal from the Commission and after consulting the Assembly [European
Parliament], issue directives for the co-ordination of the aforementioned provisions laid
down by law, regulation or administrative action. After the end of the second stage,
however, the Council shall, acting by a qualified majority on a proposal from the
Commission, issue directives for the co-ordination of such provisions as, in each
Member State, area matter for regulation or administrative action.
ARTICLE 57
1. In order to make it easier for persons to take up and pursue activities as selfemployed
persons, the Council shall, on a proposal from the Commission and after
consulting the Assembly [European Parliament], acting unanimously during the first
stage and by a qualified majority thereafter, issue directives for the mutual recognition
of diplomas, certificates and other evidence of formal qualifications.
2. For the same purpose, the Council shall, before the end of the transitional period,
acting on a proposal from the Commission and after consulting the Assembly [European
Parliament], issue directives for the co-ordination of the provisions laid down by law,
regulation or administrative action in Member States concerning the taking up and
pursuit of activities as self-employed persons. Unanimity shall be required on matters
which are the subject of legislation in at least one Member State and measures
concerned with the protection of savings, in particular the granting of credit and the
exercise of the banking profession, and with the conditions governing the exercise of
the medical and allied, and pharmaceutical professions in the various Member States. In
other cases, the Council shall act unanimously during the first stage and by a qualified
majority thereafter.
3. In the case of the medical and allied and pharmaceutical professions, the
progressive abolition of restrictions shall be dependent upon co-ordination of the
conditions for their exercise in the various Member States.
ARTICLE 58
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 co-operative societies, and other legal persons governed by public or
private law, save for those which are non-profit-making.
CHAPTER 3
SERVICES
ARTICLE 59
Within the framework of the provisions set out below, restrictions on freedom to
provide services within the Community shall be progressively abolished during the
transitional period 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.
25
The Council may, acting unanimously on a proposal from the Commission, extend the
provisions of this Chapter to nationals of a third country who provide services and who
are established within the Community.
ARTICLE 60
Services shall be considered to be “services” within the meaning of this Treaty where
they are normally provided for remuneration, in so far 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.
ARTICLE 61
1. Freedom to provide services in the field of transport shall be governed by the
provisions of the Title relating to transport.
2. The liberalisation of banking and insurance services connected with movements of
capital shall be effected in step with the progressive liberalisation of movement of
capital.
ARTICLE 62
Save as otherwise provided in this Treaty, Member States shall not introduce any new
restrictions on the freedom to provide services which have in fact been attained at the
date of the entry into force of this Treaty.
ARTICLE 63
1. Before the end of the first stage, the Council shall, acting unanimously on a
proposal from the Commission and after consulting the Economic and Social
Committee and the Assembly [European Parliament], draw up a general programme for
the abolition of existing restrictions on freedom to provide services within the
Community. The Commission shall submit its proposal to the Council during the first
two years of the first stage.
The programme shall set out the general conditions under which and the stages by
which each type of service is to be liberalised.
2. In order to implement this general programme or, in the absence of such
programme, in order to achieve a stage in 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 Assembly [European Parliament], issue directives acting
unanimously until the end of the first stage and by a qualified majority thereafter.
3. As regards the proposals and decisions referred to in paragraphs 1 and 2, 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.
26
ARTICLE 64
The Member States declare their readiness to undertake the liberalisation of services
beyond the extent required by the directives issued pursuant to Article 63(2), 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.
ARTICLE 65
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 59.
ARTICLE 66
The provisions of Articles 55 to 58 shall apply to the matters covered by this Chapter.
CHAPTER 4
CAPITAL
ARTICLE 67
1. During the transitional period and to the extent necessary to ensure the proper
functioning of the common market, Member States shall progressively abolish between
themselves all restrictions on the movement of capital belonging to persons resident in
Member States and any discrimination based on the nationality or ca the place of
residence of the parties or on the place where such capital is invested.
2. Current payments connected with the movement of capital between Member
States shall be freed from all restrictions by the end of the first stage at the latest.
ARTICLE 68
1. Member States shall, as regards the matters dealt with in this Chapter, be as liberal
as possible in granting such exchange authorisations as are still necessary after the entry
into force of this Treaty.
2. Where a Member State applies to the movements of capital liberalised in
accordance with the provisions of this Chapter the domestic rules governing the capital
market and the credit system, it shall do so in a non-discriminatory manner.
3. Loans for the direct or indirect financing of a Member State or its regional or local
authorities shall not be issued or placed in other Member States unless the States
concerned have reached agreement thereon. This provision shall not preclude the
application of Article 22 of the Protocol on the Statute of the European Investment
Bank.
ARTICLE 69
The Council shall, on a proposal from the Commission, which for this purpose shall
consult the Monetary Committee provided for in Article 105, issue the necessary
27
directives for the progressive implementation of the provisions of Article 67, acting
unanimously during the first two stages and by a qualified majority thereafter.
ARTICLE 70
1. The Commission shall propose to the Council measures for the progressive coordination
of the exchange policies of Member States in respect of the movement of
capital between those States and third countries. For this purpose the Council shall issue
directives, acting unanimously. It shall endeavour to attain the highest possible degree
of liberalisation.
2. Where the measures taken in accordance with paragraph 1 do not permit the
elimination of differences between the exchange rules of Member States and where such
differences could lead persons resident in one of the Member States to use the freer
transfer facilities within the Community which are provided for in Article 67 in order to
evade the rules of one of the Member States concerning the movement of capital to or
from third countries, that State may, after consulting the other Member States and the
Commission, take appropriate measures to overcome these difficulties.
Should the Council find that these measures are restricting the free movement of capital
within the Community to a greater extent than is required for the purpose of overcoming
the difficulties, it may, acting by a qualified majority on a proposal from the
Commission, decide that the State concerned shall amend or abolish these measures.
ARTICLE 71
Member States shall endeavour to avoid introducing within the Community any new
exchange restrictions on the movement of capital
and current payments connected with such movements, and shall endeavour not to make
existing rules more restrictive.
They declare their readiness to go beyond the degree of liberalisation of capital
movements provided for in the preceding Articles in so far as their economic situation,
in particular the situation of their balance of payments, so permits.
The Commission may, after consulting the Monetary Committee, make
recommendations to Member States on this subject.
ARTICLE 72
Member States shall keep the Commission informed of any movements of capital to and
from third countries which come to their knowledge. The Commission may deliver to
Member States any opinions which it considers appropriate on this subject.
ARTICLE 73
1. If movements of capital lead to disturbances in the functioning of the capital
market in any Member State, the Commission shall, after consulting the Monetary
Committee, authorise that State to take protective measures in the field of capital
movements, the conditions and details of which the Commission shall determine.
The Council may, acting by a qualified majority, revoke this authorisation or amend the
conditions or details thereof.
2. A Member State which is in difficulties may, however, on grounds of secrecy or
urgency, take the measures mentioned above, where this proves necessary, on its own
initiative. The Commission and the other Member States shall be informed of such
measures by the date of their entry into force at the latest. In this event the Commission
28
may, after consulting the Monetary Committee, decide that the State concerned shall
amend or abolish the measures.
TITLE IV
TRANSPORT
ARTICLE 74
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.
ARTICLE 75
1. For the purpose of implementing Article 74, and taking into account the
distinctive features of transport, the Council shall, acting unanimously until the end of
the second stage and by a qualified majority thereafter, lay down, on a proposal from
the Commission and after consulting the Economic and Social Committee and the
Assembly [European Parliament]:
(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) any other appropriate provisions.
2. The provisions referred to in (a) and (b) of paragraph 1 shall be laid down during
the transitional period.
3. By way of derogation from the procedure provided for in paragraph 1, where the
application of provisions concerning the principles of the regulatory system for
transport would be liable to have a serious effect on the standard of living and on
employment in certain areas and on the operation of transport facilities, they shall be
laid down by the Council acting unanimously. 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.
ARTICLE 76
Until the provisions referred to in Article 75(1) have been laid down, no Member State
may, without the unanimous approval of the Council, make the various provisions
governing the subject when this Treaty enters into force less favourable in their direct or
indirect effect on carriers of other Member States as compared with carriers who are
nationals of that State.
ARTICLE 77
Aids shall be compatible with this Treaty if they meet the needs of co-ordination of
transport or if they represent reimbursement for the discharge of certain obligations
inherent in the concept of a public service.
29
ARTICLE 78
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.
ARTICLE 79
1. 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, at the latest, before
the end of the second stage.
2. Paragraph 1 shall not prevent the Council from adopting other measures in
pursuance of Article 75(1).
3. Within two years of the entry into force of this Treaty, 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 mile laid down in paragraph 1 and to
ensure that users benefit from it to the full.
4. 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.
ARTICLE 80
1. 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 as from the beginning of the second stage, unless authorised by the
Commission.
2. 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.
3. The prohibition provided for in paragraph 1 shall not apply to tariffs fixed to meet
competition.
ARTICLE 81
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.
30
ARTICLE 82
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.
ARTICLE 83
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 transport section of the Economic and Social Committee.
ARTICLE 84
1. The provisions of this Title shall apply to transport by rail, road and inland
waterway.
2. The Council may, acting unanimously, decide whether, to what extent and by
what procedure appropriate provisions may be laid down for sea and air transport.
31
PART THREE
POLICY OF THE COMMUNITY
TITLE I
COMMON RULES
CHAPTER 1
RULES ON COMPETITION
SECTION 1
RULES APPLYING TO UNDERTAKINGS
ARTICLE 85
1. The following shall be prohibited as incompatible with the common market: all
agreements between undertakings, decision 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.
2. Any agreements or decisions prohibited pursuant to this Article shall be
automatically void.
3. 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.
32
ARTICLE 86
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 in so far 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 development 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.
ARTICLE 87
1. Within three years of the entry into force of this Treaty the Council shall, acting
unanimously on a proposal from the Commission and after consulting the Assembly
[European Parliament], adopt any appropriate regulations or directives to give effect to
the principles set out in Articles 85 and 86.
If such provisions have not been adopted within the period mentioned, they shall be laid
down by the Council, acting by a qualified majority on a proposal from the Commission
and after consulting the Assembly [European Parliament].
2. 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 85(1) and in
Article 86 by making provision for fines and periodic penalty payments;
(b) to lay down detailed rules for the application of Article 85(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 85 and 86;
(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.
ARTICLE 88
Until the entry into force of the provisions adopted in pursuance of Article 87, 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 85, in
particular paragraph 3, and of Article 86.
ARTICLE 89
1. Without prejudice to Article 88, the Commission shall, as soon as it takes up its
duties, ensure the application of the principles laid down in Articles 85 and 86. On
application by a Member State or on its own initiative, and in co-operation with the
competent authorities in the Member States, who shall give it their assistance, the
33
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.
2. 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.
ARTICLE 90
1. 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 7 and Articles 85 to 94.
2. 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, in so far 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.
3. The Commission shall ensure the application of the provisions of this Article and
shall, where necessary, address appropriate directives or decisions to Member States.
SECTION 2
DUMPING
ARTICLE 91
1. If, during the transitional period, the Commission, on application by a Member
State or by any other interested party, finds that dumping is being practised within the
common market, it shall address recommendations to the person or persons with whom
such practices originate for the purpose of putting an end to them.
Should the practices continue, the Commission shall authorise the injured Member State
to take protective measures, the conditions and details of which the Commission shall
determine.
2. As soon as this Treaty enters into force, products which originate in or are in free
circulation in one Member State and which have been exported to another Member
State shall, on reimportation, be admitted into the territory of the first-mentioned State
free of all customs duties, quantitative restrictions or measures having equivalent effect.
The Commission shall lay down appropriate rules for the application of this paragraph.
34
SECTION 3
AIDS GRANTED BY STATES
ARTICLE 92
1. 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,
in so far as it affects trade between Member States, be incompatible with the common
market.
2. 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, in so far as such aid is required in order to
compensate for the economic disadvantages caused by that division.
3. 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. However, the aids granted to shipbuilding
as of 1 January 1957 shall, in so far as they serve only to compensate for the
absence of customs protection, be progressively reduced under the same
conditions as apply to the elimination of customs duties, subject to the provisions
of this Treaty concerning common commercial policy towards third countries;
(d) 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.
ARTICLE 93
1. The Commission shall, in co-operation 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.
2. 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 92, 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 169 and 170, refer the matter to the Court of Justice direct.
35
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 92 or from the regulations provided for in Article 94, if such 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.
3. 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 92, 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.
ARTICLE 94
The Council may, acting by a qualified majority on a proposal from the Commission,
make any appropriate regulations for the application of Articles 92 and 93 and may in
particular determine the conditions in which Article 93(3) shall apply and the categories
of aid exempted from this procedure.
CHAPTER 2
TAX PROVISIONS
ARTICLE 95
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.
Member States shall, not later than at the beginning of the second stage, repeal or
amend any provisions existing when this Treaty enters into force which conflict with the
preceding rules.
ARTICLE 96
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.
ARTICLE 97
Member States which levy a turnover tax calculated on a cumulative multi-stage tax
system may, in the case of internal taxation imposed by them on imported products or
of repayments allowed by them on exported products, establish average rates for
36
products or groups of products, provided that there is no infringement of the principles
laid down in Articles 95 and 96.
Where the average rates established by a Member State do not conform to these
principles, the Commission shall address appropriate directives or decisions to the State
concerned.
ARTICLE 98
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 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.
ARTICLE 99
The Commission shall consider how the legislation of the various Member States
concerning turnover taxes, excise duties and other forms of indirect taxation, including
countervailing measures applicable to trade between Member States, can be harmonised
in the interest of the common market.
The Commission shall submit proposals to the Council, which shall act unanimously
without prejudice to the provisions of Articles 100 and 101.
CHAPTER 3
APPROXIMATION OF LAWS
ARTICLE 100
The Council shall. acting unanimously on a proposal from the Commission, issue
directives for the approximation of such provisions laid down by law, regulation or
administrative action in Member States as directly affect the establishment or
functioning of the common market.
The Assembly [European Parliament] and the Economic and Social Committee shall be
consulted in the case of directives whose implementation would, in one or more
Member States, involve the amendment of legislation.
ARTICLE 101
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 unanimously
during the first stage and by a qualified majority thereafter, issue the necessary
directives. The Commission and the Council may take any other appropriate measures
provided for in this Treaty.
ARTICLE 102
1. Where there is reason to fear that the adoption or amendment of a provision laid
down by law, regulation or administrative action may cause distortion within the
37
meaning of Article 101, 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.
2. 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 101, 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 101 shall not apply.
TITLE II
ECONOMIC POLICY
CHAPTER 1
CONJUNCTURAL POLICY
ARTICLE 103
1. Member States shall regard their conjunctural policies as a matter of common
concern. They shall consult each other and the Commission on the measures to be taken
in the light of the prevailing circumstances.
2. 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 situation.
3. Acting by a qualified majority on a proposal from the Commission, the Council
shall, where required, issue any directives needed to give effect to the measures decided
upon under paragraph 2.
4. The procedures provided for in this Article shall also apply if any difficulty should
arise in the supply of certain products.
CHAPTER 2
BALANCE OF PAYMENTS
ARTICLE 104
Each Member State shall pursue the economic policy needed to ensure the equilibrium
of its overall balance of payments and to
maintain confidence in its currency, while taking care to ensure a high level of
employment and a stable level of prices.
38
ARTICLE 105
1. In order to facilitate attainment of the objectives set out in Article 104, Member
States shall co-ordinate their economic policies. They shall for this purpose provide for
co-operation between their appropriate administrative departments and between their
central banks.
The Commission shall submit to the Council recommendations on how to achieve such
co-operation.
2. In order to promote co-ordination of the policies of Member States in the
monetary field to the full extent needed for the functioning of the common 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 these institutions.
The Member States and the Commission shall each appoint two members of the
Monetary Committee.
ARTICLE 106
1. Each Member State undertakes to authorise, in the currency of the Member State
in which the creditor or the beneficiary resides, any payments connected with the
movement of goods, services or capital, and any transfers of capital and earnings, to the
extent that the movement of goods, services, capital and persons between Member
States has been liberalised pursuant to this Treaty.
The Member States declare their readiness to undertake the liberalisation of payments
beyond the extent provided in the preceding sub-paragraph, in so far as their economic
situation in general and the state of their balance of payments in particular so permit.
2. In so far as movements of goods, services, and capital are limited only by
restrictions on payments connected therewith, these restrictions shall be progressively
abolished by applying, mutatis mutandis, the provisions of the Chapters relating to the
abolition of quantitative restrictions, to the liberalisation of services and to the free
movement of capital.
3. Member States undertake not to introduce between themselves any new
restrictions on transfers connected with the invisible transactions listed in Annex III to
this Treaty.
The progressive abolition of existing restrictions shall be effected in accordance with
the provisions of Articles 63 to 65, in so far as such abolition is not governed by the
provisions contained in Paragraphs 1 and 2 or by the Chapter relating to the free
movement of capital.
4. If need be, Member States shall consult each other on the measures to be taken to
enable the payments and transfers mentioned in this Article to be effected; such
measures shall not prejudice the attainment of the objectives set out in this Chapter.
ARTICLE 107
1. Each Member State shall treat its policy with regard to rates of exchange as a
matter of common concern.
39
2. If a Member State makes an alternation in its rate of exchange which is
inconsistent with the objectives set out in Article 104 and which seriously distorts
conditions of competition, the Commission may, after consulting the Monetary
Committee, authorise other Member States to take for a strictly limited period the
necessary measures, the conditions and details of which it shall determine, in order to
counter the consequences of such alteration.
ARTICLE 108
1. Where a Member State is in difficulties or is seriously threatened with difficulties
as regards its balance of payments either as a result of 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 Article 104. The Commission shall state what
measures it recommends the State concerned to take.
If the action taken by a Member State 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 Monetary Committee, 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.
2. The Council, acting by a qualified majority, shall grant such mutual assistance; it
shall adopt directives or decisions laying down the conditions and details of such
assistance, which may take such forms as:
(a) a concerted approach to or within any other international 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.
During the transitional period, mutual assistance may also take the form of special
reductions in customs duties or enlargements of quotas in order to facilitate an increase
in imports from the State which is in difficulties, subject to the agreement of the States
by which such measures would have to be taken.
3. If the mutual assistance recommended by the Commission is not granted by the
Council or if the mutual assistance granted and the measures taken are insufficient, the
Commission shall 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.
ARTICLE 109
1. Where a sudden crisis in the balance of payments occurs and a decision within the
meaning of Article 108(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
40
wider in scope than is strictly necessary to remedy the sudden difficulties which have
arisen.
2. 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 108.
3. After the Commission has delivered an opinion and the Monetary Committee 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.
CHAPTER 3
COMMERCIAL POLICY
ARTICLE 110
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.
ARTICLE 111
The following provisions shall, without prejudice to Articles 115 and 116, apply during
the transitional period:
1. Member States shall co-ordinate their trade relations with third countries so as to
bring about, by the end of the transitional period, the conditions needed for
implementing a common policy in the field of external trade.
The Commission shall submit to the Council proposals regarding the procedure for
common action to be followed during the transitional period and regarding the
achievement of uniformity in their commercial policies.
2. The Commission shall submit to the Council recommendations for tariff
negotiations with third countries in respect of the common customs tariff.
The Council shall authorise the Commission to open such 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.
3. In exercising the powers conferred upon it by this Article, the Council shall act
unanimously during the first two stages and by a qualified majority thereafter.
4. Member States shall, in consultation with the Commission, take all necessary
measures, particularly those designed to bring about an adjustment of tariff agreements
in force with third countries, in order that the entry into force of the common customs
tariff shall not be delayed.
5. Member States shall aim at securing as high a level of uniformity as possible
between themselves as regards their liberalisation lists in relation to third countries or
groups of third countries. To this end, the Commission shall make all appropriate
recommendations to Member States.
41
If Member States abolish or reduce quantitative restrictions in relation to third countries,
they shall inform the Commission beforehand and shall accord the same treatment to
other Member States.
ARTICLE 112
1. Without prejudice to obligations undertaken by them within the framework of
other international organisations, Member States shall, before the end of the transitional
period, 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 unanimously until the
end of the second stage and by a qualified majority thereafter, issue any directives
needed for this purpose.
2. The preceding provisions shall not apply to such drawback of customs duties or
charges having equivalent effect nor to such 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, in so far as such drawback or
repayment does not exceed the amount imposed, directly or indirectly, on the products
exported.
ARTICLE 113
1. After the transitional period has ended, 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
case of dumping or subsidies.
2. The Commission shall submit proposals to the Council for implementing the
common commercial policy.
3. Where agreements with third countries 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.
4. In exercising the powers conferred upon it by this Article, the Council shall act by
a qualified majority.
ARTICLE 114
The agreements referred to in Article 111(2) and in Article 113 shall be concluded by
the Council on behalf of the Community, acting unanimously during the first two stages
and by a qualified majority thereafter.
ARTICLE 115
In order to ensure that the execution of measures of commercial policy taken in
accordance with this Treaty by any Member State is not obstructed by deflection of
trade, or where differences between such measures lead to economic difficulties in one
or more of the Member States, the Commission shall recommend the methods for the
requisite co-operation between Member States. Failing this, the Commission shall
42
authorise Member States to take the necessary protective measures, the conditions and
details of which it shall determine.
In case of urgency during the transitional period, Member States may themselves take
the necessary measures and shall notify them to the other Member States and to the
Commission, which may decide that the States concerned shall amend or abolish such
measures.
In the selection of such measures, priority shall be given to those which cause the least
disturbance to the functioning of the common market and which take into account the
need to expedite, as far as possible, the introduction of the common customs tariff.
ARTICLE 116
From the end of the transitional period onwards, Member States shall, in respect of all
matters of particular interest to the common market, proceed within the framework of
international organisations of an economic character only by common action. To this
end, the Commission shall submit to the Council, which shall act by a qualified
majority, proposals concerning the scope and implementation of such common action.
During the transitional period, Member States shall consult each other for the purpose
of concerting the action they take and adopting as far as possible a uniform attitude.
TITLE III
SOCIAL POLICY
CHAPTER 1
SOCIAL PROVISIONS
ARTICLE 117
Member States agree upon the need to promote improved working conditions and an
improved standard of living for workers, so as to make possible their harmonisation
while the improvement is being maintained.
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
Without prejudice to the other provisions of this Treaty and in conformity with its
general objectives, the Commission shall have the task of promoting close co-operation
between Member States in the social field, particularly in matters relating to:
- employment;
- labour law and working conditions;
- basic and advanced vocational training;
- social security;
- prevention of occupational accident, and diseases; l - occupational hygiene;
- the right of association, and collective bargaining between employers and workers.
43
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 hose 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
Each Member State shall during the first stage ensure and subsequently maintain the
application of the principle that men and women should receive equal pay for equal
work.
For the purpose of this Article, “pay” means the ordinary basic it minimum wage or
salary and any other consideration, whether n 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.
ARTICLE 120
Member States shall endeavour to maintain the existing equivalence between paid
holiday schemes.
ARTICLE 121
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 48 to 51.
ARTICLE 122
The Commission shall include a separate chapter on social developments within the
Community in its annual report to the Assembly [European Parliament].
The Assembly [European Parliament] may invite the Commission to draw up reports on
any particular problems concerning social conditions.
CHAPTER 2
THE EUROPEAN SOCIAL FUND
ARTICLE 123
In order to improve employment opportunities for workers in the common 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 have the task of
rendering the employment of workers easier and of increasing their geographical and
occupational mobility within the Community.
ARTICLE 124
The Fund shall be administered by the Commission.
44
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.
ARTICLE 125
1. On application by a Member State the Fund shall, within the framework of the
rules provided for in Article 127, meet 50% of the expenditure incurred after the entry
into force of this Treaty by that State or by a body governed by public law for the
purposes of:
(a) ensuring productive re-employment of workers by means of:
- vocational retraining;
- resettlement allowances;
(b) granting aid for the benefit of workers whose employment is reduced or
temporarily suspended, in whole or in part, as a result of the conversion of an
undertaking to other production, in order that they may retain the same wage level
pending their full re-employment.
2. Assistance granted by the Fund towards the cost of vocational retraining shall be
granted only if the unemployed workers could not be found employment except in a
new occupation and only if they have been in productive employment for at least six
months in the occupation for which they have been retrained.
Assistance towards resettlement allowances shall be granted only if the unemployed
workers have been caused to change their home within the Community and have been
in productive employment for at least six months in their new place of residence.
Assistance for workers in the case of the conversion of an undertaking shall be granted
only if:
(a) the workers concerned have again been fully employed in that undertaking for at
least six months;
(b) the Government concerned has submitted a plan beforehand, drawn up by the
undertaking in question, for that particular conversion and for financing it;
(c) the Commission has given its prior approval to the conversion plan.
ARTICLE 126
When the transitional period has ended, the Council, after receiving the opinion of the
Commission and after consulting the Economic and Social Committee and the
Assembly [European Parliament], may:
(a) rule, by a qualified majority, that all qr part of the assistance referred to in Article
125 shall no longer be granted; or
(b) unanimously determine what new tasks may be entrusted to the Fund within the
framework of its terms of reference as laid down in Article 123.
ARTICLE 127
The Council shall, acting by a qualified majority on a proposal from the Commission
and after consulting the Economic and Social Committee and the Assembly [European
Parliament], lay down the provisions required to implement Articles 124 to 126; in
particular it shall determine in detail the conditions under which assistance shall be
granted by the Fund in accordance with Article 125 and the classes of undertakings
whose workers shall benefit from the assistance provided for in Article 125(1)(b).
45
ARTICLE 128
The Council shall, acting on a proposal from the Commission and after consulting the
Economic and Social Committee, lay down general principles for implementing a
common vocational training policy capable of contributing to the harmonious
development both of the national economies and of the common market.
TITLE IV
THE EUROPEAN INVESTMENT BANK
ARTICLE 129
A European Investment Bank is hereby established; it shall have legal personality.
The members of the European Investment Bank shall be the Member States.
The Statute of the European Investment Bank is laid down in a Protocol annexed to this
Treaty.
ARTICLE 130
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 till 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 axe 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.
46
PART FOUR
ASSOCIATION OF THE OVERSEAS COUNTRIES AND
TERRITORIES
ARTICLE 131
The Member States agree to associate with the Community the non-European countries
and territories which have special relations with Belgium, France, Italy, the Netherlands
and the United Kingdom. These countries and territories (hereinafter called the
“countries and territories”) are listed in Annex IV 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.
ARTICLE 132
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 it 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 136.
ARTICLE 133
1. Customs duties on imports into the Member States of goods originating in the
countries and territories shall be completely abolished in conformity with the
progressive abolition of customs duties between Member States in accordance with the
provisions of this Treaty.
2. Customs duties on imports into each country or territory from Member States or
from the other countries or territories shall be progressively abolished in accordance
with the provisions of Articles 12, 13, 14, 15 and 17.
47
3. 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 sub-paragraph shall nevertheless be
progressively reduced to the level of those imposed on imports of products from the
Member State with which each country or territory has special relations. The
percentages and the timetable of the reductions provided for under this Treaty shall
apply to the difference between the duty imposed on a product coming from the
Member State which has special relations with the country or territory concerned and
the duty imposed on the same product coming from within the Community on entry into
the importing country or territory.
4. 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 nondiscriminatory
customs tariff when this Treaty enters into force.
5. 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.
ARTICLE 134
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 133(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.
ARTICLE 135
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.
ARTICLE 136
For an initial period of five years after the entry into force of this Treaty, the details of
and procedure for the association of the countries and territories with the Community
shall be determined by an Implementing Convention annexed to this Treaty.
Before the Convention referred to in the preceding paragraph expires, the Council shall,
acting unanimously, lay down provisions for a further period, on the basis of the
experience acquired and of the principles set out in this Treaty.
48
PART FIVE
INSTITUTIONS OF THE COMMUNITY
TITLE I
PROVISIONS GOVERNING THE INSTITUTIONS
CHAPTER 1
THE INSTITUTIONS
SECTION 1
THE ASSEMBLY [EUROPEAN PARLIAMENT]
ARTICLE 137
The Assembly [European Parliament], which shall consist of representatives of the
peoples of the States brought together in the Community, shall exercise the advisory
and supervisory powers which are conferred upon it by this Treaty.
ARTICLE 138
1. The Assembly [European Parliament] shall consist of delegates who shall be
designated by the respective Parliaments from among their members in accordance with
the procedure laid down by each Member State.
2. The number of these delegates shall be as follows:
Belgium 14
Denmark 10
Germany 36
France 36
Ireland 10
Italy 36
Luxembourg 6
Netherlands 14
United Kingdom 36.
Paragraphs 1 and 2 lapsed on 17 July 1979 in accordance with Article 14 of the Act
concerning the election of the representatives of the European Parliament.
[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.
2. The number of representatives elected in each Member State is as follows:
49
Belgium 24
Denmark 16
Germany 81
Greece 24
Spain 60
France 81
Ireland 15
Italy 81
Luxembourg 6
Netherlands 25
Portugal 24
United Kingdom 81.]
3. The Assembly [European Parliament] shall draw up proposals for elections by
direct universal suffrage in accordance with a uniform procedure in all Member States.
The Council shall, acting unanimously, lay down the appropriate provisions, which it
shall recommend to Member States for adoption in accordance with their respective
constitutional requirements.
ARTICLE 139
The Assembly [European Parliament] shall hold an annual session. It shall meet,
without requiring to be convened, on the second Tuesday in March.
The Assembly [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.
ARTICLE 140
The Assembly [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 Assembly
[European Parliament] or by its members.
The Council shall be heard by the Assembly [European Parliament] in accordance with
the conditions laid down by the Council in its rules of procedure.
ARTICLE 141
Save as otherwise provided in this Treaty, the Assembly [European Parliament] shall act
by an absolute majority of the votes cast.
The rules of procedure shall determine the quorum.
ARTICLE 142
The Assembly [European Parliament] shall adopt its rules of procedure, acting by a
majority of its members.
The proceedings of the Assembly [European Parliament] shall be published in the
manner laid down in its rules of procedure.
50
ARTICLE 143
The Assembly [European Parliament] shall discuss in open session the annual general
report submitted to it by the Commission.
ARTICLE 144
If a motion of censure on the activities of the Commission is tabled before it, the
Assembly [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 Assembly [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 158.
SECTION 2
THE COUNCIL
ARTICLE 145
To ensure that the objectives set out in this Treaty are attained, the Council shall, in
accordance with the provisions of this Treaty:
- ensure co-ordination of the general economic policies of the Member States;
- have power to take decisions.
ARTICLE 146
Repealed by Article 7 of the Merger Treaty; see Merger Treaty, Article 2.
[The Council shall consist of representatives of the Member States. Each Government
shall delegate to it one of its members.
The office of President shall be held for a term of six months by each member of the
Council in turn, in the following order of Member States:
- For a first cycle of six years: Belgium, Denmark, Germany, Greece, Spain, France,
Ireland, Luxembourg, Netherlands, Portugal, United Kingdom.
- for the following cycle of six years: Denmark, Belgium, Greece, Germany,
France, Spain, Italy, Ireland, Netherlands, Luxembourg, United Kingdom, Portugal.]
ARTICLE 147
Repealed by Article 7 of the Merger Treaty; see Merger Treaty, Article 3.
[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.]
ARTICLE 148
1. Save as otherwise provided in this Treaty, the Council shall act by a majority of its
members.
2. Where the Council is required to act by a qualified majority, the votes of its
members shall be weighted as follows:
51
Belgium 5
Denmark 3
Germany 10
Greece 5
Spain 8
France 10
Ireland 3
Italy 10
Luxembourg 2
Netherlands 5
Portugal 5
United Kingdom 10.
For their adoption, acts of the Council shall require at least:
- forty-one [fifty-four] votes in favour where this Treaty requires them to be adopted
on a proposal from the Commission,
- forty-one [fifty-four] votes in favour, cast by at least six members, in other cases.
3. Abstentions by members present in person or represented shall not prevent the
adoption by the Council of acts which require unanimity.
ARTICLE 149
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.
As long as the Council has not acted, the Commission may alter its original proposal, in
particular where the Assembly [European Parliament] has been consulted on that
proposal.
ARTICLE 150
Where a vote is taken, any member of the Council may also act on behalf of not more
than one other member.
ARTICLE 151
Repealed by Article 7 of the Merger Treaty; see Merger Treaty, Articles 4 and 5.
[The Council shall adopt its rules of procedure.]
ARTICLE 152
The Council may request the Commission to undertake any studies which the Council
considers desirable for the attainment of the common objectives, and to submit to it any
appropriate proposals.
ARTICLE 153
The Council shall, after receiving an opinion from the Commission, determine the rules
governing the committees provided for in this Treaty.
52
ARTICLE 154
Repealed by Article 7 of the Merger Treaty; see Merger Treaty, Articles 4 and 5.
[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
qualified majority, determine any payment to be made instead of remuneration.]
SECTION 3
THE COMMISSION
ARTICLE 155
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 Assembly [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.
ARTICLES 156 to 163
Repealed by Article 19 of the Merger Treaty; see Merger Treaty, Articles 10 to 18.
ARTICLE 156
[Article repealed by Article 19 of the Merger Treaty]
[See Article 18 of the Merger Treaty, which reads as follows:
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
Communities.]
ARTICLE 157
[Article repealed by Article 19 of the Merger Treaty]
[See Article 10 of the Merger Treaty, which reads as follows:
1. The Commission shall consist of seventeen members, who shall be chosen on the
grounds of their general competence and whose independence is beyond doubt.
The number of members of the Commission may be altered by the Council, acting
unanimously.
Only nationals of Member States may be members of the Commission.
The Commission must include at least one national of each of the Member States, but
may not include more than two members having the nationality of the same State.
53
2. The members of the Commission shall, in the general interest of the Communities,
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 the provisions of Article 13 or deprived of his right to a pension or
other benefits in its stead.]
ARTICLE 158
[Article repealed by Article 19 of the Merger Treaty]
[See Article 11 of the Merger Treaty, which reads as follows:
The members of the Commission shall be appointed by common accord of the
Governments of the Member States.
Their term of office shall be four years. It shall be renewable.]
ARTICLE 159
[Article repealed by Article 19 of the Merger Treaty]
[See Article 72 of the Merger Treaty, which reads as follows:
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. The Council may, acting unanimously, decide that such a vacancy need not be
filled.
Save in the case of compulsory retirement under the provisions of Article 13 [of the
Merger Treaty], members of the Commission shall remain in office until they have been
replaced.]
ARTICLE 160
[Article repealed by Article 19 of the Merger Treaty]
[See Article 13 of the Merger Treaty, which reads as follows:
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.]
54
ARTICLE 161
[Article repealed by Article 19 of the Merger Treaty]
[See Article 14 of the Merger Treaty, which reads as follows:
The President and the six Vice-Presidents of the Commission shall be appointed from
among its members for a term of two years in accordance with the same procedure as
that laid down for the appointment of members of the Commission. Their appointments
may be renewed.
The Council, acting unanimously, may amend the provisions concerning Vice-
Presidents.
Save where the entire Commission is replaced, such appointments shall be made after
the Commission has been consulted.
In the event of retirement or death, the President and the Vice-Presidents shall be
replaced for the remainder of their term of office in accordance with the preceding
provisions.]
ARTICLE 162
[Article repealed by Article 79 of the Merger Treaty]
[See Articles 15 and 16 of the Merger Treaty, which read as follows:
Article 15:
The Council and the Commission shall consult each other and shall settle by common
accord their methods of cooperation.
Article 16:
The Commission shall adopt its rules of procedure so as to ensure that both it and its
departments operate in accordance with the provisions of the Treaties establishing the
European Coal and Ste Community, the European Economic Community and the
European Atomic Energy Community, and of this Treaty. It shall ensure that these rules
are published.]
ARTICLE 163
[Article repealed by Article 19 of the Merger Treaty]
[See Article 17 of the Merger Treaty, which reads as follows:
The Commission shall act by a majority of the number of members provided for in
Article 10.
A meeting of the Commission shall be valid only if the number of members laid down
in its rules of procedure is present.]
Section 4
The Court of Justice
ARTICLE 164
The Court of Justice shall ensure that in the interpretation and application of this Treaty
the law is observed.
ARTICLE 165
The Court of Justice shall consist of nine [thirteen] Judges.
55
The Court of Justice shall sit in plenary session. It may, however, form chambers, each
consisting of three or five Judges, either to undertake certain preparatory inquiries or to
adjudicate on particular categories of cases in accordance with rules laid down for these
purposes.
Whenever the Court of Justice hears cases brought before it by a Member State or by
one of the institutions of the Community or has to give preliminary rulings on questions
submitted to it pursuant to Article 177, it shall sit in plenary session.
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 167.
ARTICLE 166
The Court of Justice shall be assisted by four Advocates-General.
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 164.
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 167.
ARTICLE 167
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. Five [seven] and
four [six] Judges shall be replaced alternately.
Every three years there shall be a partial replacement of the Advocates-General. Two
[three] 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.
ARTICLE 168
The Court of Justice shall appoint its Registrar and lay down the rules governing his
service.
ARTICLE 169
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.
ARTICLE 170
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.
56
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.
ARTICLE 171
If the Court of Justice finds that a Member State has tailed to fulfil an obligation under
this Treaty, the State shall be required to take the necessary measures to comply with
the judgement of the Court of Justice.
ARTICLE 172
Regulations made by the Council pursuant to the provisions of this Treaty may give the
Court of Justice unlimited jurisdiction in regard to the penalties provided for in such
regulations.
ARTICLE 173
The Court of Justice shall review the legality of acts of the Council and the Commission
other than recommendations or opinions. 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.
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.
ARTICLE 174
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.
ARTICLE 175
Should 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.
57
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.
ARTICLE 176
The institution 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 judgement of the Court of Justice.
This obligation shall not affect any obligation which may result from the application of
the second paragraph of Article 215.
ARTICLE 177
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;
(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 judgement, 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.
ARTICLE 178
The Court of Justice shall have jurisdiction in disputes relating to compensation for
damage provided for in the second paragraph of Article 215.
ARTICLE 179
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.
ARTICLE 180
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 169;
(b) measures adopted by the Board of Governors of the 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 173;
(c) measures adopted by the Board of Directors of the Bank. Proceedings against such
measures may be instituted only by Member States or by the Commission, under
the conditions laid down in Article 173, and solely on the grounds of noncompliance
with the procedure provided for in Article 21(2), (5), (6) and (7) of the
Statute of the Bank.
58
ARTICLE 181
The Court of Justice shall have jurisdiction to give judgement 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.
ARTICLE 182
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.
ARTICLE 183
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.
ARTICLE 184
Notwithstanding the expiry of the period laid down in the third paragraph of Article
173, any party may, in proceedings in which a regulation of the Council or of the
Commission is in issue, plead the grounds specified in the first paragraph of Article
173, in order to invoke before the Court of Justice the inapplicability of that regulation.
ARTICLE 185
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.
ARTICLE 186
The Court of Justice may in any cases before it prescribe any necessary interim
measures.
ARTICLE 187
The judgements of the Court of Justice shall be enforceable under the conditions laid
down in Article 192.
ARTICLE 188
The Statute of the Court of Justice is laid down in a separate Protocol.
The Court of Justice shall adopt its rules of procedure. These shall require the
unanimous approval of the Council.
CHAPTER 2
PROVISIONS COMMON TO SEVERAL INSTITUTIONS
ARTICLE 189
In order to carry out their task the Council and the Commission shall, in accordance
with the provisions of this Treaty, make regulations, 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.
59
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.
ARTICLE 190
Regulations, directives and decisions of the Council and of 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.
ARTICLE 191
Regulations shall be published in the Official Journal of the Community. They shall
enter into force on the date specified in them or, in the absence thereof, on the twentieth
day following their publication.
Directives and decisions shall be notified to those to whom they are addressed and shall
take effect upon such notification.
ARTICLE 192
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.
CHAPTER 3
THE ECONOMIC AND SOCIAL COMMITTEE
ARTICLE 193
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.
60
ARTICLE 194
The number of members of the Committee shall be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24.
The members of the Committee shall be appointed by the Council, acting unanimously,
for four years. Their appointments shall be renewable.
The members of the Committee shall be appointed in their personal capacity and may
not be bound by any mandatory instructions.
ARTICLE 195
1. 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.
2. 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.
ARTICLE 196
The Committee shall elect its chairman and officers from among its members for a term
of two years.
It shall adopt its rules of procedure and shall submit them to the Council for its
approval, which must be unanimous.
The Committee shall be convened by its chairman at the request of the Council or of the
Commission.
ARTICLE 197
The Committee shall include specialised sections for the principal fields covered by this
Treaty.
In particular, it shall contain an agricultural section and a transport section, which are
the subject of special provisions in the Titles relating to agriculture and transport.
These specialised sections shall operate within the general terms of reference of the
Committee. They may not be consulted independently of the Committee.
Sub-committees may also established within the Committee to prepare, on specific
questions or in specific fields, draft opinions to be submitted to the Committee for its
consideration.
61
The rules of procedure shall lay down the methods of composition and the terms of
reference of the specialised sections and of the subcommittees.
ARTICLE 198
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.
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 ten days from the
date which the chairman receives notification to this affect. 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.
TITLE II
FINANCIAL PROVISIONS
ARTICLE 199
All items of revenue and expenditure of the Community, including those relating to the
European Social Fund, shall be included in estimates to be drawn up for each financial
year and shall be shown in the budget.
The revenue and expenditure shown in the budget shall be in balance.
ARTICLE 200
1. The budget revenue shall include, irrespective of any other revenue, financial
contributions of Member States on the following scale:
Netherlands 7.9
Germany 28
France 28
Italy 28
Luxembourg 0.2
Netherlands 7.9
2. The financial contributions of Member States to cover the expenditure of the
European Social Fund, however shall be determined on the following scale:
Belgium 8.8
Germany 32
France 32
Italy 20
Luxembourg 0.2
Netherlands 7
62
3. The scales may be modified by the Council, acting unanimously.
ARTICLE 201
The Commission shall examine the conditions under which the financial contributions
of Member States provided for in Article 200 could be replaced by the Community’s
own resources, in particular by revenue accruing from the common customs tariff when
it has been finally introduced.
To this end, the Commission shall submit proposals to the Council.
After consulting the Assembly [European Parliament] on these proposals the Council
may, acting unanimously, lay down the appropriate provisions, which it shall
recommend to the Member States for adoption in accordance with their respective
constitutional requirements.
ARTICLE 202
The expenditure shown in the budget shall be authorised for one financial year, unless
the regulations made pursuant to Article 209 provide otherwise.
In accordance with conditions to be laid down pursuant to Article 209, 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 209.
The expenditure of the Assembly [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.
ARTICLE 203
1. The financial year shall run from 1 January to 31 December.
2. 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.
3. 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 shall, acting by a qualified majority, establish the draft budget and forward
it to the Assembly [European Parliament].
4. The draft budget shall be placed before the Assembly [European Parliament] not
later than 5 October of the year preceding that in which the budget is to be
implemented.
The Assembly [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.
63
If, within forty-five days of the draft budget being placed before it, the Assembly
[European Parliament] has given its approval, the budget shall stand as finally adopted.
If within this period the Assembly [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 Assembly [European Parliament] has adopted amendments or
proposed modifications, the draft budget together with the amendments or proposed
modifications shall be forwarded to the Council.
5. After discussing the draft budget with the Commission and, where appropriate,
with the other institutions concerned, the Council may, acting by a qualified majority,
modify any of the amendments adopted by the Assembly [European Parliament] and
shall pronounce, also by a qualified majority, on the modifications proposed by the
latter. The draft budget shall be modified on the basis of the proposed modifications
accepted by the Council.
If, within fifteen days of the draft budget being placed before it, the Council has not
modified any of the amendments adopted by the Assembly [European Parliament] and
has accepted the modifications proposed by the latter, the budget shall be deemed to be
finally adopted. The Council shall inform the Assembly [European Parliament] that it
has not modified any of the amendments and has accepted the proposed modifications.
If within this period the Council has modified one or more of the amendments adopted
by the Assembly [European Parliament] or has not accepted the modifications proposed
by the latter, the draft budget shall again be forwarded to the Assembly [European
Parliament]. The Council shall inform the Assembly [European Parliament] of the
results of its deliberations.
6. Within fifteen days of the draft budget being placed before it, the Assembly
[European Parliament], which shall have been notified of the action taken on its
proposed modifications, shall act, by a majority of its members and three fifths of the
votes cast, on the modifications to its amendments made by the Council, and shall adopt
the budget accordingly. If within this period the Assembly [European Parliament] has
not acted, the budget shall be deemed to be finally adopted.
7. When the procedure provided for in this Article has been completed, the President
of the Assembly [European Parliament] shall declare that the budget has been finally
adopted.
8. 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 Conjunctural Policy Committee and the
Budgetary 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.
64
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 Assembly [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, in exceptional cases, the Assembly [European Parliament], the Council or the
Commission considers 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 Assembly [European Parliament], acting by a majority of its members
and three fifths of the votes cast.
9. Each institution shall exercise the powers conferred upon it by this Article, with
due regard for the provisions of this 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.
Amended by:
Article 12 of the Treaty amending Certain Financial Provisions, 22 July 1975
ARTICLE 203
1. The financial year shall run from 1 January to 31 December.
2. 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.
3. 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.
4. 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.
5. After discussing the draft budget with the Commission and, where appropriate,
with the other institutions concerned, the Council shall act under the following
conditions:
65
(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.
6. 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.
7. 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.
8. However, the European Parliament, acting by a majority of its members and twothirds
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:
66
- 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.
10. 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.
ARTICLE 203 a
By way of derogation from the provisions of Article 203, the following provisions shall
apply to budgets for financial years preceding the financial year 1975:
1. The financial year shall run from 1 January to 31 December.
2. 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.
3. 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 shall, acting by a qualified majority, establish the draft budget and forward
it to the Assembly [European Parliament].
4. The draft budget shall be placed before the Assembly [European Parliament] not
later than 5 October of the year preceding that in which the budget is to be
implemented.
The Assembly [European Parliament] shall have the right to propose to the Council
modifications to the draft budget.
If, within forty-five days of the draft budget being placed before it, the Assembly
[European Parliament] has given its approval or has not proposed any modifications to
the draft budget, the budget shall be deemed to be finally adopted.
67
If within this period the Assembly [European Parliament] has proposed modifications,
the draft budget together with the proposed modifications shall be forwarded to the
Council.
5. The Council shall, after discussing the draft budget with the Commission and,
where appropriate, with the other institutions concerned, adopt the budget, within thirty
days of the draft budget being placed before it, under the following conditions.
Where a modification proposed by the Assembly [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 Assembly [European Parliament] has the effect
of increasing the total amount of the expenditure of an institution, the Council must act
by a qualified majority in accepting the proposed modification.
Where, in pursuance of the second or third subparagraph of this paragraph, the Council
has rejected or has not accepted a proposed modification, it may, acting by a qualified
majority, either retain the amount shown in the draft budget or fix another amount.
6. When the procedure provided for in this Article has been completed, the President
of the Council shall declare that the budget has been finally adopted.
7. Each institution shall exercise the powers conferred upon it by this Article, with
due regard for the provisions of this 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.”
ARTICLE 204
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
209; 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 paragraph are observed, authorise expenditure in excess of one twelfth.
Member States shall pay every month, on a provisional basis and in accordance with the
scales laid down for the preceding financial year, the amounts necessary to ensure
application of this Article.
Amended by:
Article 13 of the Treaty amending Certain Financial Provisions, 22 July 1975:
ARTICLE 204
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 209; this arrangement shall not, however, have the effect of placing at the
68
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, authorize 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.
‘Ibis 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.
ARTICLE 205
The Commission shall implement the budget, in accordance with the provisions of the
regulations made pursuant to Article 209, on its own responsibility and within the limits
of the appropriations.
The regulations shall lay down detailed rules for each institution concerning its part in
effecting its own expenditure.
Within the budget, the Commission may, subject to the limits and conditions laid down
in the regulations made pursuant to Article 209, transfer appropriations from one
chapter to another or from one sub-division to another.
Article added by:
Article 14 of the Treaty amending Certain Financial Provisions, 22 July 1975:
ARTICLE 205a
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.
ARTICLE 206
The accounts of all revenue and expenditure shown in the budget shall be examined by
an Audit Board consisting of auditors whose independence is beyond doubt, one of
whom shall be chairman. The Council shall, acting unanimously, determine the number
of the auditors. The auditors and the chairman of the Audit Board shall be appointed by
the Council, acting unanimously, for a period of five years. Their remuneration shall be
determined by the Council, acting by a qualified majority.
The purpose of the audit, which shall be based on records and, if necessary, performed
on the spot, shall be to establish that all revenue has been received and all expenditure
incurred in a lawful and regular manner and that the financial management has been
sound. After the close of each financial year, the Audit Board shall draw up a report,
which shall be adopted by a majority of its members.
The Commission shall submit annually to the Council and to the Assembly [European
Parliament] the accounts of the preceding financial year relating to the implementation
69
of the budget, together with the report of the Audit Board. The Commission shall also
forward to them a financial statement of the assets and liabilities of the Community.
The Council and the Assembly [European Parliament] shall give a discharge to the
Commission in respect of the implementation of the budget. To this end, the report of
the Audit Board shall be examined in turn by the Council, which shall act by a qualified
majority, and by the Assembly [European Parliament]. The Commission shall stand
discharged only after the Council and the Assembly [European Parliament] have acted.
Amended by:
Article 15 of the Treaty amending Certain Financial Provisions, 22 July 1975:
ARTICLE 206
1. A Court of Auditors is hereby established.
2. The Court of Auditors shall consist of nine [twelve] members.
3. 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.
4. The members of the Court of Auditors shall be appointed for a term of six years
by the Council, acting unanimously after consulting the European Parliament.
However, when the first appointments are made, four members of the Court of
Auditors, chosen by lot, shall be appointed for a term of office of four years only.
The members of the Court of Auditors shall be eligible for reappointment.
They shall elect the President of the Court of Auditors from among their number for a
term of three years. The President may be re-elected.
5. 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.
6. 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.
7. 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 8.
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.
8. 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.
70
9. 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.
10. 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.
New Article introduced and added by:
Article 16 of the Treaty amending Certain Financial Provisions, 22 July 1975:
ARTICLE 206a
1. The Court of Auditors shall examine the accounts of all revenue and expenditure
of the Community. It shall also examine the accounts of all revenue and expenditure of
all bodies set up by the Community in so far as the relevant constituent instrument does
not preclude such examination.
2. The Court of Auditors shall examine whether all revenue has been received and all
expenditure incurred in a lawful and regular manner and whether the financial
management has been sound.
The audit of revenue shall be carried out on the basis both of the amounts established as
due and the amounts actually paid to the Community.
The audit of expenditure shall be carried out on the basis both of commitments
undertaken and payments made.
These audits may be carried out before the closure of accounts for the financial year in
question.
3. The audit shall be based on records and, if necessary, performed on the spot in the
institutions of the Community and in the Member States. In the Member States the audit
shall be carried out in liaison with the national audit bodies or, if these do not have the
necessary powers, with the competent national departments. These bodies or
departments shall inform the Court of Auditors whether they intend to take part in the
audit.
The institutions of the Community and the national audit bodies or, if these do not have
the necessary powers, the competent national departments, shall forward to the Court of
Auditors, at its request, any document or information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close of each
financial year. It shall be forwarded to the 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 on specific questions
and deliver opinions at the request of one of the institutions of the Community.
It shall adopt its annual 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.
New Article introduced and added by:
Article 17 of the Treaty amending Certain Financial Provisions, 22 July 1975:
ARTICLE 206b
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
71
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
and 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.
ARTICLE 207
The budget shall be drawn up in the unit of account determined in accordance with the
provisions of the regulations made pursuant to Article 209.
The financial contributions provided for in Article 200(1) shall be placed at the disposal
of the Community by the Member States in their national currencies.
The available balances of these contributions shall be deposited with the Treasuries of
Member States or with bodies designated by them. While on deposit, such funds shall
retain the value corresponding to the parity, at the date of deposit, in relation to the unit
of account referred to in the first paragraph.
The balances may be invested on terms to be agreed between the Commission and the
Member State concerned.
The regulations made pursuant to Article 209 shall lay down the technical conditions
under which financial operations relating to the European Social Fund shall be carried
out.
ARTICLE 208
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.
ARTICLE 209
The Council shall, acting unanimously on a proposal from the Commission:
(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 contributions of Member States
shall be made available to the Commission;
(c) lay down rules concerning the responsibility of authorising officers and
accounting officers and concerning appropriate arrangements for inspection.
Amended by:
Article 18 of the Treaty amending Certain Financial Provisions, 22 July 1975
ARTICLE 209
The Council, acting unanimously on a proposal from the Commission and after
consulting the European Parliament and obtaining the opinion the Court of Auditors,
shall:
72
(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 Communities’ own resources shall be made
available to the Commission, and determine the measures to be applied, if need be,
to meet cash requirements;
(c) lay down rules concerning the responsibility of authorizing officers and
accounting officers and concerning appropriate arrangements for inspection.
73
PART SIX
GENERAL AND FINAL PROVISIONS
ARTICLE 210
The Community shall have legal personality.
ARTICLE 211
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.
ARTICLE 212
[Repealed by Article 24(2) of the Merger Treaty; see Merger Treaty, Article 24(1),
second subparagraph.]
[See Article 24(1) of the Merger Treaty, which reads as follows:
1. The officials and other servants of the European Coal and Steel Community, the
European Economic Community and the European Atomic Energy Community shall, at
the date of entry into force of this Treaty, become officials and other servants of the
European Communities and form part of the single administration of those
Communities.
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.]
ARTICLE 213
The Commission may, within the limits and under the 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.
ARTICLE 214
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.
ARTICLE 215
The contractual liability of the Community shall be governed by the law applicable to
the contract in question.
In the case of non-contractual liability, the Community shall, in accordance with the
general principles common to the laws of the Member States, make good any damage
caused by its institutions or by its servants in the performance of their duties.
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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.
ARTICLE 216
The seat of the institutions of the Community shall be determined by common accord of
the Governments of the Member States.
ARTICLE 217
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.
ARTICLE 218
[Repealed by the second paragraph of Article 28 of the Merger Treaty; see Merger
Treaty, first paragraph of Article 28.]
[See the first paragraph of Article 28 of the Merger Treaty, which reads as follows:
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 laid down in the Protocol annexed to this Treaty. The same apply to the
European investment Bank.]
ARTICLE 219
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.
ARTICLE 220
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 58, 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 judgements of courts or tribunals and of arbitration awards.
ARTICLE 221
Within three years of the entry into force of this Treaty, 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
58, without prejudice to the application of the other provisions of this Treaty.
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ARTICLE 222
This Treaty shall in no way prejudice the rules in Member States governing the system
of property ownership.
ARTICLE 223
1. 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.
2. During the first year after the entry into force of this Treaty, the Council shall,
acting unanimously, draw up a list of products to which the provisions of paragraph 1(b)
shall apply.
3. The Council may, acting unanimously on a proposal from the Commission, make
changes in this list.
ARTICLE 224
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.
ARTICLE 225
If measures taken in the circumstances referred to in Articles 223 and 224 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 this Treaty.
By way of derogation from the procedure laid down in Articles 169 and 170, 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 223 and 224. The Court of Justice shall give its ruling in
camera.
ARTICLE 226
1. If, during the transitional period, difficulties arise which are serious and liable to
persist in any sector of the economy or which could bring about serious deterioration in
the economic situation of a given area, a Member State may apply for authorisation to
take protective measures in order to rectify the situation and adjust the sector concerned
to the economy of the common market.
2. On application by the State concerned, the Commission shall, by emergency
procedure, determine without delay the protective measures which it considers
76
necessary, specifying the circumstances and the manner in which they are to be put into
effect.
3. The measures authorised under paragraph 2 may involve derogations from the
rules of this Treaty, to such an extent and for such periods as are strictly necessary in
order to attain the objectives referred to in paragraph 1. Priority shall be given to such
measures as will least disturb the functioning of the common market.
ARTICLE 227
1. 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 Portuguese Republic and the United Kingdom of Great Britain
and Northern Ireland.
2. With regard to Algeria and the French overseas departments, the general and
particular provisions of this Treaty relating to:
- the free movement of goods;
- agriculture, save for Article 40(4);
- the liberalisation of services;
- the rules on competition;
- the protective measures provided for in Articles 108, 109 and 226;
- the institutions,
shall apply as soon as this Treaty enters into force.
The conditions under which the other provisions of this Treaty are to apply shall be
determined, within two years of the entry into force of this Treaty, by decisions of the
Council, acting unanimously on a proposal from the Commission.
The institutions of the Community will, within the framework of the procedures
provided for in this Treaty, in particular Article c 226, take care that the economic and
social development of these areas is made possible.
3. The special arrangements for association set out in Part Four of this Treaty shall
apply to the overseas countries and territories listed in Annex IV to this Treaty.
This Treaty shall not apply to those overseas countries and territories having special
relations with the United Kingdom of Great Britain and Northern Ireland which are not
included in the aforementioned list.
4. The provisions of this Treaty shall apply to the European territories for whose
external relations a Member State is responsible.
5. Notwithstanding the preceding paragraphs:
(a) This Treaty shall not apply to the Faroe Islands. The Government of the Kingdom
of Denmark may, however, give notice, by a declaration deposited by 31
December 1975 at the latest with the Government of the Italian Republic, which
shall transmit it certified copy thereof to each of the Governments of the other
Member States, that this Treaty shall apply to those Islands. In that event, this
Treaty shall apply to those Islands from the first day of the second month
following the deposit of the declaration.
(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
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European Economic Community and to the European Atomic Energy Community
signed on 22 January 1972.
ARTICLE 228
1. Where this Treaty provides for the conclusion of agreements between the
Community and one or more States or an international organisation, such agreements
shall be negotiated by the Commission. Subject to the powers vested in the Commission
in this field, such agreements shall be concluded by the Council, after consulting the
Assembly [European Parliament] where required by this Treaty.
The Council, the Commission or a Member State may obtain beforehand 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 236.
2. Agreements concluded under these conditions shall be binding on the institutions
of the Community and on Member States.
ARTICLE 229
It shall be for the Commission to ensure the maintenance of all appropriate relations
with the organs of the United Nations, of its specialised agencies and of the General
Agreement on Tariffs and Trade.
The Commission shall also maintain such relations as are appropriate with all
international organisations.
ARTICLE 230
The Community shall establish all appropriate forms of co-operation with the Council
of Europe.
ARTICLE 231
The Community shall establish close co-operation with the Organisation for European
Economic Co-operation, the details to be determined by common accord.
ARTICLE 232
1. 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.
2. The provisions of this Treaty shall not derogate from those of the Treaty
establishing the European Atomic Energy Community.
ARTICLE 233
The provisions of this Treaty shall not preclude the existence or completion 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.
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ARTICLE 234
The rights and obligations arising from agreements concluded before the entry into
force of this Treaty 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.
ARTICLE 235
If action by the Community should prove necessary to attain, in the course of the
operation of the common market, one of they 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 Assembly [European
Parliament], take the appropriate measures.
ARTICLE 236
The Government of any Member State or the Commission may submit to the Council
proposals for the amendment of this Treaty.
If the Council, after consulting the Assembly [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 this Treaty.
The amendments shall enter into force after being ratified by all the Member States in
accordance with their respective constitutional requirements.
ARTICLE 237
Any European State may apply to become a member of the Community. It shall address
its application to the Council, which shall act unanimously after obtaining the opinion
of the Commission.
The conditions of admission and the adjustments to this Treaty necessitated thereby
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.
ARTICLE 238
The Community may conclude with a third State, a union of States or an international
organisation agreements establishing an association involving reciprocal rights and
obligations, common action and special procedures.
These agreements shall be concluded by the Council, acting unanimously after
consulting the Assembly [European Parliament].
Where such agreements call for amendments to this Treaty, these amendments shall first
be adopted in accordance with the procedure laid down in Article 236.
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ARTICLE 239
The Protocols annexed to this Treaty by common accord of the Member States shall
form an integral part thereof.
SETTING UP OF THE INSTITUTIONS
ARTICLE 240
This Treaty is concluded for an unlimited period.
ARTICLE 241
The Council shall meet within one month of the entry into force of this Treaty.
ARTICLE 242
The Council shall, within three months of its first meeting, take all appropriate measures
to constitute the Economic and Social Committee.
ARTICLE 243
The Assembly [European Parliament] shall meet within two months of the first meeting
of the Council, having been convened by the President of the Council, in order to elect
its officers and draw up its rules of procedure. Pending the election of its officers, the
oldest member shall take the chair.
ARTICLE 244
The Court of Justice shall take up its duties as soon as its members have been appointed.
Its first President shall be appointed for three years in the same manner as its members.
The Court of Justice shall adopt its rules of procedure within three months of taking up
its duties.
No matter may be brought before the Court of Justice until its rules of procedure have
been published. The time within which an action must be brought shall run only from
the date of this publication.
Upon his appointment, the President of the Court of Justice shall exercise the powers
conferred upon him by this Treaty.
ARTICLE 245
The Commission shall take up its duties and assume the responsibilities conferred upon
it by this Treaty as soon as its members have been appointed.
Upon taking up its duties, the Commission shall undertake the studies and arrange the
contacts needed for making an overall survey of the economic situation of the
Community,
ARTICLE 246
1. The first financial year shall run from the date on which this Treaty enters into
force until 31 December following. Should this Treaty, however, enter into force during
the second half of the Year, the first financial year shall run until 31 December of the
following year.
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2. Until the budget for the first financial year has been established, Member States
shall make the Community interest-free advances which shall be deducted from their
financial contributions to the implementation of the budget.
3. Until the Staff Regulations of officials and the Conditions of Employment of other
servants of the Community provided for in Article 212 have been laid down, each
institution shall recruit the Staff it needs and to this end conclude contracts of limited
duration.
Each institution shall examine together with the Council any question concerning the
number, remuneration and distribution of posts.
FINAL PROVISIONS
ARTICLE 247
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 fifteen 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.
ARTICLE 248
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.
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 Antonio SEGNI
J. Ch. SNOY ET D’OPPUERS Gaetano MARTINO
ADENAUER BECH
HALLSTEIN Lambert SCHAUS
PINEAU J. LUNS
M. FAURE J. LINTHORST HOMAN