Maastricht Treaty PROTOCOLS

HEAD-EMU

 

PROTOCOLS

 

PROTOCOL

ON THE ACQUISITION OF PROPERTY IN DENMARK

THE HIGH CONTRACTING PARTIES,

DESIRING to settle certain particular problems relating to Denmark,

HAVING AGREED UPON the following provision, which shall be annexed to the

Treaty establishing the European Community:

Notwithstanding the provisions of this Treaty, Denmark may maintain the

existing legislation on the acquisition of second homes.

 

PROTOCOL

CONCERNING ARTICLE 119 OF THE TREATY ESTABLISHING THE EUROPEAN COMMUNITY

THE HIGH CONTRACTING PARTIES,

HAVE AGREED UPON the following provision, which shall be annexed to the treaty

establishing the European Community:

For the purposes of Article 119 of this Treaty, benefits under occupational

social security schemes shall not be considered as remuneration if an in so

far as they are attributable to periods of employment prior to 17 May 1990,

except in the case of workers or those claiming under them who have before

that date initiated legal proceedings or introduced an equivalent claim under

the applicable national law.

 

PROTOCOL

ON THE STATUTE OF THE EUROPEAN SYSTEM OF CENTRAL BANKS AND OF THE EUROPEAN

CENTRAL BANK

THE HIGH CONTRACTING PARTIES,

DESIRING to lay down the Statute of the European System of Central Banks and

of the European Central Bank provided for in Article 4a of the Treaty

establishing the European Community.

HAVE AGREED upon the following provisions, which shall be annexed to the

treaty establishing the European Community:

 

CHAPTER 1

CONSTITUTION OF THE ESCB

ARTICLE 1

The European System of Central Banks.

1.1. The European System of Central Banks (ESCB) and the European Central Bank

(ECB) shall be established in accordance with Article 4a of this Treaty; they

shall perform their tasks and carry on their activities in accordance with the

provisions of this Treaty of this Statute.

1.2. In accordance with Article 106(1) on this Treaty, the ESCB shall be

composed of the ECB and of the central banks of the Member States (“national

central banks”). The Insitut monetaire luxembourgeois will be the central bank

of Luxembourg.

 

CHAPTER II

OBJECTIVES AND TASKS OF ESCB

ARTICLE 2

Objectives

In accordance with Article 105(1) of this Treaty, the primary objective of the

ESCB shall be to maintain price stability. Without prejudice to the objective

of price stability, it shall support the general economic policies in the

Community with a view to contributing to the achievement of the objectives of

the Community as laid down in Article 2 of this Treaty. The ESCB shall act in

accordance with the principle of an open market economy with free competition,

favouring an efficient allocation of resources, and in compliance with the

principles set out in Article 3a of this Treaty.

ARTICLE 3

Tasks

3.1. In accordance with Article 105(2) of this Treaty, the basic tasks to be

carried out through the ESCB shall be:

– to define and implement the monetary policy of the Community;

– to conduct foreign exchange operations consistent with the provisions of

Article 109 of this Treaty;

– to hold and manage the official foreign reserves of the Member States;

– to promote the smooth operation on payment systems.

3.2. In accordance with Article 105(3) of this Treaty, the third indent of

Article 3.1 shall be without prejudice to the holding and management by the

governments of Member States of foreign exchange working balances.

3.3. In accordance with Article 105(5) of this Treaty, the ESCB shall

contribute to the smooth conduct of policies pursued by the competent

authorities relating to the prudential supervision of credit institutions and

the stability of the financial system.

ARTICLE 4

Advisory functions

In accordance with Article 105(4) of this Treaty:

(a) the ECB shall be consulted:

– on any proposed Community act in its fields of competence;

– by national authorities regarding any draft legislative provision in its

fields of competence, but within the limits and under the conditions set out

by the Council in accordance with the procedure laid down in Article 42;

(b) the ECB may submit opinions to the appropriate Community institutions or

bodies or to national authorities on matters in its fields of competence.

ARTICLE 5

Collection of statistical information

5.1. In order to undertake the tasks of the ESCB, the ECB, assisted by the

national central banks, shall collect the necessary statistical information

either from the competent national authorities or directly from economic

agents. For these purposes it shall cooperate with the Community institutions

or bodies and with the competent authorities of the Member States or third

countries and with international organizations.

5.2. The national central banks shall carry out, to the extent possible, the

tasks described in Article 5.1.

5.3. The ECB shall contribute to the harmonization, where necessary, of the

rules and practices governing the collection, compilation and distribution of

statistics in the areas within its fields of competence.

5.4. The Council, in accordance with the procedure laid down in Article 42,

shall define the natural and legal persons subject to reporting requirements,

the confidentiality regime and the appropriate provisions for enforcement.

ARTICLE 6

International cooperation

6.1. In the field of international cooperation involving the tasks entrusted

to the ESCB, the ECB shall decide how the ESCB shall be represented.

6.2. The ECB and, subject to its approval, the national central banks may

participate in international monetary institutions.

6.3. Articles 6.1 and 6.2 shall be without prejudice to Article 109(4) of this

Treaty.

 

CHAPTER III

ORGANIZATION OF THE ESCB

ARTICLE 7

Independence

In accordance with Article 107 of this Treaty, when exercising the powers and

carrying out the tasks and duties conferred upon them by this Treaty and this

Statute, neither the ECB, nor a national central bank, nor any member of their

decision-making bodies shall seek or take instructions from Community

institutions or bodies, from any government of a Member State or from any

other body. The Community institutions and bodies and the governments of the

Member States undertake to respect this principle and not to seek to influence

the members of the decision-making bodies of the ECB or of the national

central banks in the performance of their tasks.

ARTICLE 8

General principle

The ESCB shall be governed by the decision-making bodies of the ECB.

ARTICLE 9

The European Central Bank

9.1. The ECB which, in accordance with Article 106(2) of this Treaty, shall

have legal personality, shall enjoy in each of the Member States the most

extensive legal capacity accorded to legal persons under its law; it may, in

particular, acquire or dispose of movable and immovable property and may be a

party to legal proceedings.

9.2. The ECB shall ensure that the tasks conferred upon the ESCB under Article

105(2), (3) and (5) of this Treaty are implemented either by its own

activities pursuant to this Statute or through the national central bank

pursuant to Articles 12.1 and 14.

9.3 In accordance with Article 106(3) of this Treaty, the decision-making

bodies of the ECB shall be the Governing Council and the Executive Board.

ARTICLE 10

The Governing Council

10.1. In accordance with Article 109a(1) of this Treaty, the Governing Council

shall comprise the members of the Executive Board of the ECB and the Governors

of the national central banks.

10.2. Subject to Article 10.3, only members of the Governing Council present

in person shall have the right to vote. By way of derogation from this rule,

the Rules of Procedure referred to in Article 12.3 may lay down that members

of the Governing Council may cast their vote by means of teleconferencing.

These rules shall also provide that a member of the Governing Council who is

prevented from voting for a prolonged period may appoint an alternate as a

member of the Governing Council.

Subject to Articles 10.3 and 11.3, each member of the Governing Council shall

have one vote. Save as otherwise provided for in this Statue, the Governing

Council shall act by a simple majority. In the event of a tie the President

shall have the casting vote.

In order for the Governing Council to vote, there shall be quorum of two-

thirds of the members. If the quorum is not met, the President may convene and

extraordinary meeting at which decisions may be taken without regard to the

quorum.

10.3. For any decisions to be taken under Articles 28, 29, 30, 32, 33 and 51,

the votes in the Governing Council shall be weighted according to the national

central banks’ shares in the subscribed capital of the ECB. The weight of the

votes of the members of the Executive Board shall be zero. A decision

requiring a qualified majority shall be adopted if the votes cast in favour

represent at least two thirds of the subscribed capital of the ECB and

represent at least half of the shareholders. If a Governor in unable to be

present, he may nominate an alternate to cast his weighted vote.

10.4. The proceedings of the meetings shall be confidential. The Governing

Council may decide to make the outcome of its deliberations public.

10.5. The Governing Council shall meet at least ten times a year.

ARTICLE 11

The Executive Board

11.1. In accordance with Article 109a(2)(a) of this Treaty, the Executive

Board shall comprise the President, the Vice-President and four other members.

The members shall perform their duties on a full-time basis. No member shall

engage in any occupation, whether gainful or not, unless exemption is

exceptionally granted by the Governing Council.

11.2. In accordance with Article 109a(2)(b) of this Treaty, the President, the

Vice-President and the other Members of the Executive Board shall be appointed

from among persons of recognized standing and professional experience in

monetary or banking matters by common accord of the governments of the Member

States at the level of the Heads of State or of government, on a

recommendation from the Council after it has consulted the European Parliament

and the Governing Council.

Their term of office shall be 8 years and shall not be renewable.

Only nationals of Member States may be members of the Executive Board.

11.3. The terms and conditions of employment of the members of the Executive

Board, in particular their salaries, pensions and other social security

benefits shall be the subject of contracts with the ECB and shall be fixed by

the Governing Council on a proposal from a Committee comprising three members

appointed by the Governing Council and three members appointed by the Council.

The members of the Executive Board shall not have the right to vote on matters

referred to in this paragraph.

11.4. If a member of the Executive Board 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 Governing Council

or the Executive Board, compulsorily retire him.

11.5. Each member of the Executive Board present in person shall have the

right to vote and shall have, for that purpose, one vote. Save as otherwise

provided, the Executive Board shall act by a simple majority of the votes

cast. In the event of a tie, the President shall have the casting vote. The

voting arrangements shall be specified in the Rules of Procedure referred to

in Article 12.3.

11.6. The Executive Board shall be responsible for the current business of the

ECB.

11.7. Any vacancy on the Executive Board shall be filled by the appointment of

a new member in accordance with Article 11.2.

ARTICLE 12

Responsibilities of the decision-making bodies

12.1. The Governing Council shall adopt the guidelines and take the decisions

necessary to ensure the performance of the tasks entrusted to the ESCB under

this Treaty and this Statute. The Governing Council shall formulate the

monetary policy of the Community including, as appropriate, decisions relating

to intermediate monetary objectives, key interest rates and the supply of

reserves in the ESCB and shall establish the necessary guidelines for their

implementation.

The Executive Board shall implement monetary policy in accordance with the

guidelines and decisions laid down by the Governing Council. In doing so the

Executive Board shall give the necessary instructions to national central

banks. In addition the Executive Board may have certain powers delegated to it

where the Governing Council so decides.

To the extent deemed possible and appropriate and without prejudice to the

provisions of this Article, the ECB shall have recourse to the national

central banks to carry out operations which form part of the tasks of the

ESCB.

12.2. The Executive Board shall have the responsibility for the preparation of

meetings of the Governing Council.

12.3. The Governing Council shall adopt Rules of Procedure which determine the

internal organization of the ECB and its decision-making bodies.

12.4. The Governing Council shall exercise the advisory functions referred to

Article 4.

12.5. The Governing Council shall take the decisions referred to Article 6.

ARTICLE 13

The President

13.1. The President or, in his absence, the Vice-President shall chair the

governing Council and the Executive Board of the ECB.

13.2. Without prejudice to Article 39, the President or his nominee shall

represent the ECB externally.

ARTICLE 14

National Central Banks

14.1. In accordance with Article 108 of this Treaty, each Member State shall

ensure, at the latest at the date of the establishment of the ESCB, that its

national legislation, including the statues of its national central bank, is

compatible with this Treaty and this Statute.

14.2. The statutes of the national central banks shall, in particular, provide

that the term of office of a Governor of a national central bank shall be no

less than 5 years.

A Governor may be relieved from office only if he no longer fulfils the

conditions required for the performance of his duties or if he has been guilty

of serious misconduct. A decision to this effect may be referred to the Court

of Justice by the Governor concerned or the Governing Council on grounds of

infringement of this Treaty or of any rule of law relating to its application.

Such proceedings shall be instituted within two months of the publication of

the decision or of its notification to the plaintiff or, in the absence

thereof, of the day on which it came to knowledge of the latter, as the case

may be.

14.3. The national central banks are an integral part of the ESCB and shall

act in accordance with the guidelines and instructions of ECB. The Governing

Council shall take the necessary steps to ensure compliance with the

guidelines and instructions of the ECB, and shall require that any necessary

information be given to it.

14.4 National central banks may perform functions other than those specified

in this Statute unless the Governing Council finds, by a majority of two

thirds of the votes cast, that these interfere with the objectives and tasks

of the ESCB. Such functions shall be performed on the responsibility and

liability of national central banks and shall not be regarded as being part of

the functions of the ESCB.

ARTICLE 15

Reporting commitments.

15.1. The ECB shall draw up and publish reports on the activities of the ESCB

at least quarterly.

15.2. A consolidated financial statement of the ESCB shall be published each

week.

15.3. In accordance with Article 109b(3) of this Treaty, the ECB shall address

an annual report on the activities of the ESCB and on the monetary policy of

both the previous and the current year to the European Parliament, the Council

and the Commission, and also the European Council.

15.4. The reports and statements referred to in this Article shall be made

available to interested parties free of charge.

ARTICLE 16

Bank notes.

In accordance with Article 105a(1) of this Treaty, the Governing Council shall

have the exclusive right to authorize the issue of bank notes within the

Community. The ECB and the national central banks may issue such notes. The

bank notes issued by the ECB and the national central banks shall be the only

such notes to have the status of legal tender within the Community.

The ECB shall respect as far as possible existing practices regarding the

issue and design of bank notes.

 

CHAPTER IV

MONETARY FUNCTIONS AND OPERATIONS OF THE ESCB

ARTICLE 17

Accounts with the ECB and the national central banks.

In order to conduct their operations, the ECB and the national central banks

may open accounts for credit institutions, public entities and other market

participants and accept assets, including book-entry securities, as

collateral.

ARTICLE 18

Open market and credit operations.

18.1. In order to achieve the objectives of the ESCB and to carry out its

tasks, the ECB and the national central banks may:

– operate in the financial markets by buying and selling outright (spot or

forward) or under repurchase agreement and by lending or borrowing claims and

marketable instruments, whether in Com munity or in non-Community currencies,

as well as precious metals;

– conduct credit operations with credit institutions and other market

participants, with lending being based on adequate collateral.

18.2. The ECB shall establish general principles for open market and credit

operations carried out by itself or the national central banks, including for

the announcement of conditions under which they stand ready to enter into such

transactions.

ARTICLE 19

Minimum reserves

19.1. Subject to Article 2, the ECB may require credit institutions

established in Member States to hold minimum reserves on accounts with the ECB

and national central banks in pursuance of monetary policy objectives.

Regulations concerning the calculation and determination of the required

minimum reserves may be established by the Governing Council. In cases of non-

compliance the ECB shall be entitled to levy penalty interest and to impose

other sanctions with comparable effect.

19.2. For the application of this Article, the Council shall, in accordance

with the procedure laid down in Article 42, define the basis for minimum

reserves and the maximum reserves and the maximum permissible ratios between

those reserves and their basis, as well as the appropriate sanctions in cases

of non-compliance.

ARTICLE 20

Other instruments of monetary control

The Governing Council may, by a majority of two thirds of the votes cast,

decide upon the use of such other operational methods of monetary control as

it sees fit, respecting Article 2.

The Council shall, in accordance with the procedure laid down in Article 42,

define the scope of such methods if they impose obligations on third parties.

ARTICLE 21

Operations with public entities.

21.1. In accordance with Article 104 of the Treaty, overdrafts or any other

type of credit facility with the ECB or with the national central banks in

favour of Community institutions or bodies, central governments, regional,

local or other public authorities, other bodies governed by public law, or

public undertakings of Member States shall be prohibited, as shall the

purchase directly from them by the ECB or national central banks of debt

instruments.

21.2. The ECB and national central banks may act as fiscal agents for the

entities referred to in 21.1.

21.3. The provisions of this Article shall not apply to publicly-owned credit

institutions which, in the context of the supply of reserves by central banks,

shall be given the same treatment by national central banks and the ECB as

private credit institutions.

ARTICLE 22

Clearing and payment systems

The ECB and national central banks may provide facilities, and the ECB may

make regulations, to ensure efficient and sound clearing and payment systems

within the Community and with other countries.

ARTICLE 23

External operations

The ECB and national central banks may:

– establish relations with central banks and financial institutions in other

countries and, where appropriate, with international organizations;

– acquire and sell spot and forward all types of foreign exchange assets and

precious metals; the term “foreign exchange asset” shall include securities

and all other assets in the currency of any country or units of account in

whatever form held;

– hold and manage the assets referred to in this Article;

– conduct all types of banking transactions in relations with third countries

and international organizations, including borrowing and lending operations.

ARTICLE 24

Other operations

In addition to operations arising from their tasks, the ECB and national

central banks may enter into operations for their administrative purposes or

for their staff.

 

CHAPTER V

PRUDENTIAL SUPERVISION

ARTICLE 25

Prudential supervision

25.1. The ECB may offer advice to and be consulted by the Council, the

Commission and the competent authorities of the Member States on the scope and

implementation of Community legislation relating to the prudential supervision

of credit institutions and to the stability of the financial system.

25.2. In accordance with any decision of the Council under Article 105(6) of

this Treaty, the ECB may perform specific tasks concerning policies relating

to the prudential supervision of credit institutions and other financial

institutions with the exception of insurance undertakings.

 

CHAPTER VI

FINANCIAL PROVISIONS OF THE ESCB

ARTICLE 26

Financial accounts

26.1. The financial year of the ECB and national central banks shall begin on

the first day of January and end on the last day of December.

26.2. The annual accounts of the ECB shall be drawn up the Executive Board, in

accordance with the principles established by the Governing Council. The

accounts shall be approved by the Governing Council and shall thereafter be

published.

26.3. For analytic and operational purposes, the Executive Board shall draw up

a consolidated balance sheet of the ESCB, comprising those assets and

liabilities of the national central banks that fall within the ESCB.

26.4. For the application of this Article, the Governing Council shall

establish the necessary rules for standardizing the accounting and reporting

of operations undertaken by the national central banks.

ARTICLE 27

Auditing

27.1. The account of the ECB and national central banks shall be audited by

independent external auditors recommended by the Governing Council and

approved by the Council. The auditors shall have full power to examine all

books and accounts of the ECB and national central banks and obtain full

information about their transactions.

27.2. The provisions of Article 188c of this Treaty shall only apply to an

examination of the operational efficiency of the management of the ECB.

 

ARTICLE 28

Capital of the ECB

28.1. The capital of the ECB, which shall become operational upon its

establishment, shall be ECU 5 000 million. The capital may be increased by

such amounts as may be decided by the Governing Council acting by the

qualified majority provided for in Article 10.3, within the limits and under

the conditions set by the Council under the procedure laid down in Article 42.

28.2. The national central banks shall be the sole subscribers to and holders

of the capital of the ECB. The subscription of capital shall be according to

the key established in accordance with Article 29.

28.3. The Governing Council, acting by the qualified majority provided for in

Article 10.3, shall determine the extent to which and the form in which the

capital shall be paid up.

28.4. Subject to Article 28.5, the shares of the national central banks in the

subscribed capital of the ECB may not be transferred, pledged or attached.

28.5. If the key referred to in Article 29 is adjusted, the national central

banks shall transfer among themselves capital shares to the extent necessary

to ensure that the distribution of capital shares corresponds to the adjusted

key. The Governing Council shall determine the terms and conditions of such

transfers.

ARTICLE 29

Key for capital subscription

29.1. When in accordance with the procedure referred to in Article 109l(1) of

this Treaty the ESCB and the ECB have been established, the key for

subscription of the ECB’s capital shall be established. Each national central

bank shall be assigned a weighting in this key which shall be equal to the sum

of:

– 50% of the share of its respective Member State in the population of the

Community in the penultimate year preceding the establishment of the ESCB;

– 50% of the share of its respective Member State in the gross domestic

product at market prices of the Community as recorded in the last five years

preceding the penultimate year before the establishment of the ESCB;

The percentages shall be rounded up to the nearest multiple 0.05 percentage

points.

29.2 The statistical data to be used for the application of this Article shall

be provided by the Commission in accordance with the rules adopted by the

Council under the procedure provided for in Article 42.

29.3. The weighting assigned to the national central banks shall be adjusted

every five years after the establishment of the ESCB by analogy with the

provisions laid down in Article 29.1. The adjusted key shall apply with effect

from the first day of the following year.

29.4. The Governing Council shall take all other measures necessary for the

application of this Article.

ARTICLE 30

Transfer of foreign reserve assets to the ECB

30.1. Without prejudice to Article 28, the ECB shall be provided by the

national central banks with foreign reserve assets, other than Member States’

currencies, ECUs, IMF reserve positions and SDRs, up to an amount equivalent

to ECU 50 000 million. The Governing Council shall decide upon the proportion

to be called up by the ECB following its establishment and the amounts called

up at later dates. The ECB shall have the full right to hold and manage the

foreign reserves that are transferred to it and to use them for the purposes

set out in this Statute.

30.2. The contributions of each national central bank shall be fixed in

proportion to its share in the subscribed capital of the ECB.

30.3. Each national central bank shall be credited by the ECB with a claim

equivalent to its contribution. The Governing Council shall determine the

denomination and remuneration of such claims.

30.4. Further calls of foreign reserve assets beyond the limit set in Article

30.1. may be effected by the ECB, in accordance with Article 30.2, within the

limits and under the conditions set by the Council in accordance with the

procedure laid down in Article 42.

30.5. The ECB may hold and manage IMF reserve positions and SDRs and provide

for the pooling of such assets.

30.6. The Governing Council shall take all other measures necessary for the

application of this Article.

ARTICLE 31

Foreign reserve assets held by national central banks

31.1. The national central banks shall be allowed to perform transactions in

fulfilment of their obligations towards international organizations in

accordance with Article 23.

31.2. All other operations in foreign reserve assets remaining with the

national central banks after the transfers referred to in Article 30, and

Member States’ transactions with their foreign exchange working balances

shall, above a certain limit to be established within the framework of Article

31.3, be subject to approval by the ECB in order to ensure consistency with

the exchange rate and monetary policies of the Community.

31.3. The Governing Council shall issue guidelines with a view to facilitating

such operations.

ARTICLE 32

Allocation of monetary income of national central banks.

32.1. The income accruing to the national central banks in the performance of

the ESCB’s monetary policy function (hereinafter referred to as “monetary

income”) shall be allocated at the end of each financial year in accordance

with the provisions of this Article.

32.2. Subject to Article 32.3, the amount of each national central bank’s

monetary income shall be equal to its annual income derived from its assets

held against notes in circulation and deposit liabilities to credit

institutions. These assets shall be earmarked by national central banks in

accordance with guidelines to be established by the Governing Council.

32.3. If, after the start of the third stage, the balance sheet structures of

the national central banks do not, in the judgment of the Governing Council,

permit the application of Article 32.2, the Governing Council, acting by a

qualified majority, may decide that, by way of derogation form Article 32.2,

monetary income shall be measured according to an alternative method for a

period of not more than five years.

32.4. The amount of each national central bank’s monetary income shall be

reduced by an amount equivalent to any interest paid by that central bank on

its deposit liabilities to credit institutions in accordance with Article 19.

The Governing Council may decide that national central banks shall be

indemnified against costs incurred in connection with the issue of bank notes

or in exceptional circumstances for specific losses arising from monetary

policy operations undertaken for the ESCB. Indemnification shall be in a form

deemed appropriate in the judgment of the Governing Council; these amounts may

be offset against the national central banks’ monetary income.

32.5. The sum of the national central banks’ monetary income shall be

allocated to the national central banks in proportion to their paid-up shares

in the capital of the ECB, subject to any decision taken by the Governing

Council pursuant to Article 33.2.

32.6. The clearing and settlement of the balances arising from the allocation

of monetary income shall be carried out by the ECB in accordance with

guidelines established by the Governing Council.

32.7. The Governing Council shall take all other measures necessary for the

application of this Article.

ARTICLE 33

Allocation of net profits and losses of the ECB

33.1. The net profit of the ECB shall be transferred in the following order:

(a) an amount to be determined by the Governing Council, which may not exceed

20% of the net profit, shall be transferred to the general reserve fund

subject to a limit equal to a 100% of the capital;

(b) the remaining net profit shall be distributed to the shareholders of the

ECB in proportion to their paid-up shares.

33.2. In the event of a loss incurred by the ECB, the shortfall may be offset

against the general reserve fund of the ECB and, if necessary, following a

decision by the Governing Council, against the monetary income of the relevant

financial year in proportion and up to the amounts allocated to the national

central banks in accordance with Article 32.5.

 

CHAPTER VII

GENERAL PROVISIONS

ARTICLE 34

Legal acts

34.1. In accordance with Article 108a of this Treaty, the ECB shall:

– make regulations to the extent necessary to implement the tasks defined in

Article 3.1., first indent, Articles 19.1, 22 or 25.2 and in cases which shall

be laid down in the acts of the Council referred to in Article 42;

– take decisions necessary for carrying out the tasks entrusted to the ESCB

under this Treaty and this Statute;

– make recommendations and deliver opinions.

34.2. A regulation shall have general application. It shall be binding in its

entirety and directly applicable in all Member States.

Recommendations and opinions shall have no binding force.

A decision shall be binding in its entirety upon those to whom it is

addressed.

Articles 190 to 192 of this Treaty shall apply to regulations and decisions

adopted by the ECB.

The ECB may decide to publish its decisions, recommendations and opinions.

34.3. Within the limits and under the conditions adopted by the Council under

the procedure laid down in Article 42, the ECB shall be entitled to impose

fines or periodic penalty payments on undertakings for failure to comply with

obligations under its regulations and decisions.

ARTICLE 35

Judicial control and related matters

35.1. The acts or omissions of the ECB shall be open to review or

interpretation by the Court of Justice in the cases and under the conditions

laid down in this Treaty. The ECB may institute proceedings in the cases and

under the conditions laid down in this Treaty.

35.2. Disputes between the ECB, on the one hand, and its creditors, debtors or

any other person, on the other, shall be decided by the competent national

courts, save where jurisdiction has been conferred upon the Court of Justice.

35.3. The ECB shall be subject to the liability regime provided for in Article

215 of this Treaty. The national central banks shall be liable according to

their respective national laws.

35.4. The Court of Justice shall have jurisdiction to give judgment pursuant

to any arbitration clause contained in a contract concluded by or on behalf of

the ECB, whether that contract be governed by public or private law.

35.5. A decision of the ECB to bring an action before the Court of Justice

shall be taken by the Governing Council.

35.6. The Court of Justice shall have jurisdiction in disputes concerning the

fulfillment by a national central bank of obligations under this Statute. If

the ECB considers that a national central bank has failed to fulfill an

obligation under this Statute, it shall deliver a reasoned opinion on the

matter after giving the national central bank concerned the opportunity to

submit its observations. If the national central bank concerned does not

comply with the opinion within the period laid down by the ECB, the latter may

bring the matter before the Court of Justice.

ARTICLE 36

Staff

36.1. The Governing Council, on a proposal from the Executive Board, shall lay

down the conditions of employment of the staff of the ECB.

36.2. The Court of Justice shall have jurisdiction in any dispute between the

ECB and its servants within the limits and under the conditions laid down in

the conditions of employment.

ARTICLE 37

Seat

Before the end of 1992, the decision as to where the seat of the ECB will be

established shall be taken by common accord of the governments of the Member

States at the level of Heads of State or of Government.

ARTICLE 38

Professional secrecy

38.1. Members of the governing bodies and the staff of the ECB and the

national central banks shall be required, even after their duties have ceased,

not to disclose information of the kind covered by the obligation of

professional secrecy.

38.2. Persons having access to data covered by Community legislation imposing

an obligation of secrecy shall be subject to such legislation.

ARTICLE 39

Signatories

The ECB shall be legally committed to third parties by the President or by two

members of the Executive Board or by the signatures of two members of the

staff of the ECB who have been duly authorized by the President to sign on

behalf of the ECB.

ARTICLE 40

Privileges and immunities.

The ECB shall enjoy in the territories of the Member States such privileges

and immunities as are necessary for the performance of its tasks, under the

conditions laid down in the Protocol on the Privileges and Immunities of the

European Communities annexed to the Treaty establishing a Single Council and a

Single Commission of the European Communities.

 

CHAPTER VIII

AMENDMENT OF THE STATUTE AND COMPLEMENTARY LEGISLATION

ARTICLE 41

Simplified amendment procedure

41.1. In accordance with Article 106(5) of this Treaty, Articles 5.1, 5.2,

5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.3, 32.4, 32.2, 32.6, 33.1(a) and 36 of

this Statute may be amended by the Council, acting either by a qualified

majority on a recommendation from the ECB and after consulting the Commission,

or unanimously on a proposal from the Commission and after consulting the ECB.

In either case the assent of the European Parliament shall be required.

41.2. A recommendation made by the ECB under this Article shall require a

unanimous decision by the Governing Council.

ARTICLE 42

Complementary legislation

In accordance with Article 106(6) of this Treaty, immediately after the

decision on the date for the beginning of the third stage, the Council, acting

by a qualified majority either on a proposal from the Commission and after

consulting the European Parliament and the ECB or on a recommendation from the

ECB and after consulting the European Parliament and the Commission, shall

adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2,

30.4, and 34.3. of this Statute.

 

CHAPTER IX

TRANSITIONAL AND OTHER PROVISIONS

FOR THE ESCB

ARTICLE 43

General Provisions

43.1. A derogation as referred to in Article 109k(1) of this Treaty shall

entail that the following Articles of this Statue shall not confer any rights

or impose any obligations on the Member State concerned: 3, 6, 9.2, 12.1,

14.3, 16, 18, 19, 20, 22, 23, 26.2, 27, 30, 31, 32, 33, 34, 50 and 52.

43.2. The central banks of Member States with derogation as specified in

Article 109k(1) of this Treaty shall retain their powers in the field of

monetary policy according to national law.

43.3. In accordance with Article 109k(4) of this Treaty, “Member States” shall

be read as “Member States without derogation” in the following Articles of

this Statute: 3, 11.2, 19, 34.2 and 50.

43.4 “National central banks” shall be read as central banks of Member States

without a derogation” in the following Articles of this Statute: 9.2, 10.1,

10.3, 12.1, 16, 17, 18, 22, 23, 27, 30, 31, 32, 33.2 and 52.

43.5. “Shareholders” shall be read as “central banks of Member States without

a derogation” in Articles 10.3 and 33.1.

43.6. “Subscribed capital of the ECB” shall be read as “capital of the ECB

subscribed by the central banks of Member States without a derogation” in

Articles 10.3 and 30.2.

ARTICLE 44

Transitional tasks of the ECB

The ECB shall take over those tasks of the EMI which, because of the

derogations of one or more Member States, still have to be performed in the

third stage.

The ECB shall give advice in the preparations for the abrogation of the

derogations specified in Article 109k of this Treaty.

ARTICLE 45

The General Council of the ECB

45.1. Without prejudice to Article 106(3) of this Treaty, the General Council

shall be constituted as a third decision-making body of the ECB.

45.2. The General Council shall compromise the President and Vice-President of

the ECB and the Governors of the national central banks. The others members of

the Executive Board may participate, without having the right to vote, in

meetings of the General Council.

45.3. The responsibilities of the General Council are listed in full in

Article 47 of this Statute.

ARTICLE 46

Rules of procedure of the General Council

46.1. The President or, in his absence, the Vice-President of the ECB shall

chair the General Council of the ECB.

46.2. The President of the Council and a member of the Commission may

participate, without having to right to vote, meetings of the General Council.

46.3. The President shall prepare the meetings of the General Council.

46.4. By way of derogation from Article 12.3, the General Council shall adopt

its Rules of Procedure.

46.5. The Secretariat of the General Council shall be provided by the ECB.

ARTICLE 47

Responsibilities of the General Council

47.1. The General Council shall:

– perform the tasks referred to in Article 44;

– contribute to the advisory functions referred to in Articles 4 and 25.1.

47.2. The General Council shall contribute to:

– the collection of statistical information as referred to in Article 5;

– the reporting activities of the ECB as referred to in Article 15;

– the establishment of the necessary rules for the application of Article 26

as referred to in Article 26.4;

– the taking of all other measures necessary for the application of Article 29

as referred to Article 29.4;

– the laying down of the conditions of employment of the staff of the ECB as

referred to in Article 36.

47.3. The General Council shall contribute to the necessary preparations for

irrevocably fixing the exchange rates of the currencies of Member States with

a derogations against the currencies, or the single currency, of the Member

States without a derogation, as referred to in Article 109(5) of this Treaty.

47.4. The General Council shall be informed by the President of the ECB of

decisions of the Governing Council.

ARTICLE 48

Transitional provisions for the capital of the ECB

In accordance with Article 29.1 each national central bank shall be assigned a

weighting in the key for subscription of the ECB’s capital. By way of

derogation from Article 28.3, central banks of Member States with a derogation

shall not pay up their subscribed capital unless the General Council, acting

by as majority representing at least two thirds of the subscribed capital of

the ECB and at least half of the shareholders, decides that a minimal

percentage has to be paid up as a contribution to the operational costs of the

ECB.

ARTICLE 49

Deferred payment of capital,

reserves and provisions of the ECB

49.1. The central bank of a Member State whose derogation has been abrogated

shall pay up its subscribed share of the capital of the ECB to the same extent

as the central banks of other Member States without a derogation, and shall

transfer to the ECB foreign reserve assets in accordance with Article 30.1.

The sum to be transferred shall be determined by multiplying the ECU value at

current exchange rates of the foreign reserve assets which have already been

transferred to the ECB in accordance with Article 30.1, by the ratio between

the number of shares subscribed by the national central bank concerned and the

number of shares already paid up by the other national central banks.

49.2. In addition to the payment to be made in accordance with Article 49.1,

the central bank concerned shall contribute to the reserves of the ECB, to

those provisions equivalent to reserves, and to the amount still to be

appropriated to the reserves and provisions corresponding to the balance of

the profit and loss account as at 31 December of the year prior to the

abrogation of the derogation. The sum to be contributed shall be determined by

multiplying the amount of the reserves, as defined above and as stated in the

approved balance sheet of the ECB, by the ratio between the number of shares

subscribed by the central bank concerned and the number of shares already paid

up the other central banks.

ARTICLE 50

Initial appointment of the members of the Executive Board.

When the Executive Board of the ECB is being established, the President, the

Vice-President and the other members of the Executive Board shall be appointed

by common accord of the governments of the Member States at the level of Heads

of State or of Government, on a recommendation from the Council and after

consulting the European Parliament and the Council of the EMI. The President

of the Executive Board shall be appointed for 8 year. By way of derogation

from Article 11.2, the Vice-President shall be appointed for 4 years and the

other members of the Executive Board for terms of office of between 5 and 8

years. No term of office shall be renewable. The number of members of the

Executive Board may be smaller than provided for in Article 11.1, but in no

circumstance shall it be less than four.

ARTICLE 51

Derogation from Article 32

51.1. If, after the start of the third stage, the Governing Council decides

that the application of Article 32 results in significant changes in national

central banks’ relative income positions, the amount of income to allocated

pursuant to Article 32 shall be reduced by a uniform percentage which shall

not exceed 60% in the first financial year after the start of the third stage

and which shall decrease by at least 12 percentage points in each subsequent

financial year.

51.2. Article 51.1. shall be applicable for not more than five financial years

after the start of the third stage.

ARTICLE 52

Exchange of banknotes in Community currencies.

Following the irrevocable fixing of exchange rates, the Governing Council

shall take the necessary measures to ensure that bank notes denominated in

currencies with irrevocably fixed exchange rates are exchanged by the national

central banks at their respective par values.

ARTICLE 53

Applicability of the transitional provisions

If and as long as there are Member States with a derogation Articles 43 to 48

shall be applicable.

 

PROTOCOL

ON THE STATUTE OF THE EUROPEAN MONETARY INSTITUTE

THE HIGH CONTRACTING PARTIES,

DESIRING to lay down the Statute of the European Monetary Institute,

HAVE AGREED upon the following provision, which shall be annexed to the Treaty

establishing the European Community;

ARTICLE 1

Constitution and name

1.1. The European Monetary Institute (EMI) shall be established in accordance

with Article 109f of this Treaty; it shall perform its functions and carry out

its activities in accordance with the provisions of this Treaty and of this

Statute.

1.2. The members of the EMI shall be the central banks of the Member States

(“national central banks”). For the purposes of the Statute, the Institut

monetaire luxembourgeois shall be regarded as the central bank of Luxembourg.

1.3. Pursuant to Article 109f of this Treaty, both the Committee of Governors

and the European Monetary Cooperation Fund (EMCF) shall be dissolved. All

assets and liabilities of the EMCF shall pass automatically to the EMI.

ARTICLE 2

Objectives

The EMI shall contribute to the realization of the conditions necessary for

the transition to the third stage of Economic and Monetary Union, in

particular by:

– strengthening the coordination of monetary policies with a view to ensuring

price stability;

– making the preparations required for the establishment of the European

System of Central Banks (ESCB), and for the conduct of a single monetary

policy and the creation of a single currency in the third stage;

– overseeing the development of the ECU.

ARTICLE 3

General principles

3.1. The EMI shall carry out the tasks and functions conferred upon it by this

Treaty and this Statute without prejudice to the responsibility of the

competent authorities for the conduct of the monetary policy within the

respective Member States.

3.2. The EMI shall act in accordance with the objectives and principles stated

in Article 2 of the Statute of the ESCB.

ARTICLE 4

Primary tasks

4.1. In accordance with Article 109f(2) of this Treaty, the EMI shall:

– strengthen cooperation between the national central banks;

– strengthen the coordination of the monetary policies of the Member States

with the aim of ensuring price stability;

– monitor the functioning of the European Monetary System (EMS);

– hold consultations concerning issues falling within the competence of the

national central banks and affecting the stability of financial institutions

and markets;

– take over the tasks of the EMCF; in particular it shall perform the

functions referred to in Articles 6.1, 6.2 and 6.3;

– facilitate the use of the ECU and oversee its development, including the

smooth functioning of the ECU clearing system.

The EMI shall also:

– hold regular consultations concerning the course of monetary policies and

the use of monetary policy instruments;

– normally be consulted by the national monetary authorities before they take

decisions on the course of monetary policy in the context of the common

framework for ex ante coordination.

4.2. At the latest by 31 December 1996, the EMI shall specify the regulatory,

organizational and logistical framework necessary for the ESCB to perform its

tasks in the third stage, in accordance with the principle of an open market

economy with free competition. This framework shall be submitted by the

Council of the EMI for decision to the ECB at the date of its establishment.

In accordance with Article 109f(3) of this Treaty, the EMI shall in

particular:

– prepare the instruments and the procedures necessary for carrying out a

single monetary policy in the third stage;

– promote the harmonization, where necessary, of the rules and practices

governing the collection, compilation and distribution of statistics in the

areas within its field of competence;

– prepare the rules for operations to be undertaken by the national central

banks in the framework of the ESCB;

– promote the efficiency of cross-border payments;

– supervise the technical preparation of ECU bank notes.

ARTICLE 5

Advisory functions.

5.1. In accordance with Article 109f(4) of this Treaty, the Council of the EMI

may formulate opinions or recommendations on the overall orientation of

monetary policy and exchange rate policy as well as on related measures

introduced in each Member State. The EMI may submit opinions or

recommendations to governments and to the Council on policies which might

affect the internal or external monetary situation in the Community and, in

particular, the functioning of the EMS.

5.2. The Council of the EMI may also make recommendations to the monetary

authorities of the Member States concerning the conduct of their monetary

policy.

5.3. In accordance with Article 109f(6) of this Treaty, the EMI shall be

consulted by the Council regarding any proposed Community act within its field

of competence.

Within the limits and under the conditions set out by the Council acting by a

qualified majority on a proposal from the Commission and after consulting the

European Parliament and the EMI shall be consulted by the authorities of the

Member States on any draft legislative provision within its field of

competence, in particular with regard to Article 4.2.

5.4. In accordance with Article 109f(5) of this Treaty, the EMI may decide to

publish its opinions and its recommendations.

ARTICLE 6

Operational and technical functions

6.1. The EMI shall;

– provide for the multilateralization of positions resulting from

interventions by the national central banks in Community currencies and the

multilateralization of intra-Community settlements;

– administer the very short-term financing mechanism provided for by the

Agreement of 13 March 1979 between the central banks of the Member States of

the European Economic Community laying down the operating procedures for the

European Monetary System (hereinafter referred to as “EMS Agreement”) and the

short-term monetary support mechanism provided for in the Agreement between

the central banks of the Member States of the European Economic Community of 9

February 1970, as amended;

– perform the functions referred to in Article 11 of Council Regulation (EEC)

No 1969/88 of 24 June 1988 establishing a single facility providing medium-

term financial assistance for Member States’ balances of payments.

6.2. The EMI may receive monetary reserves from the national central banks and

issue ECUs against such assets for the purpose of implementing the EMS

Agreement. These ECUs may be used by the EMI and the national central banks as

a means of settlement and for transactions between them and the EMI. The EMI

shall take the necessary administrative measures for the implementation of

this paragraph.

6.3. The EMI may grant to the monetary authorities of third countries and to

international monetary institutions the status of “Other Holders” of ECUs and

fix the terms and conditions under which such ECUs may be acquired, held or

used by Other Holders.

6.4. The EMI shall be entitled to hold and manage foreign exchange reserves as

an agent for and at the request of national central banks. Profits and losses

regarding these reserves shall be for the account of the national central bank

depositing the reserves. The EMI shall perform this function on the basis of

bilateral contracts in accordance with rules laid down in a decision of the

EMI. These rules shall ensure that transactions with these reserves shall not

interfere with the monetary policy and exchange rate policy of the competent

monetary authority of any Member State and shall be consistent with the

objectives of the EMI and the proper functioning of the Exchange Rate

Mechanism of the EMS.

ARTICLE 7

Other tasks

7.1. Once a year the EMI shall address a report to the Council on the state of

the preparations for the third stage. These reports shall include an

assessment of the progress towards convergence in the Community, and cover in

particular the adaptation of monetary policy instruments and the preparation

of the procedures necessary for carrying out a single monetary policy in the

third stage, as well as the statutory requirements to be fulfilled for

national central banks to become an integral part of the ESCB.

7.2. In accordance with the Council decisions referred to in Article 109f(7)

of this Treaty, the EMI may perform other tasks for the preparation of the

third stage.

ARTICLE 8

Independence

The members of the Council of the EMI who are the representatives of their

institutions shall, with respect to their activities, act according to their

own responsibilities. In exercising the powers and performing the tasks and

duties conferred upon them by this Treaty and this Statute, the Council of the

EMI may not seek or take any instructions from Community institutions or

bodies or governments of Member States.The Community institutions and bodies

as well as the governments of the Member States undertake to respect this

principle and not seek to influence the Council of the EMI in the performance

of its tasks.

ARTICLE 9

Administration

9.1. In accordance with Article 109f(1) of this Treaty, the EMI shall be

directed and managed by the Council of the EMI.

9.2. The Council of the EMI shall consist of a President and the Governors of

the national central banks, on of whom shall be Vice-President. If a Governor

is prevented from attending a meeting, he may nominate another representative

of his institution.

9.3. The President shall be appointed by common accord of the governments of

the Member States at the level of Heads of State or of Government, on a

recommendation from, as the case may be, the Committee of Governors or the

Council of the EMI, and after consulting the European Parliament and the

Council. The President shall be selected from among persons of recognized

standing and professional experience in monetary or banking matters. Only

nationals of Member States may be President of the EMI. The Council of the EMI

shall appoint the Vice-President. The President and Vice-President shall be

appointed for a period of three years.

9.4. The President shall perform his duties on a full-time basis. He shall not

engage in any occupation, whether gainful or not, unless exemption is

exceptionally granted by the Council of the EMI.

9.5. The President shall

– prepare and chair meetings of the Council of the EMI;

– without prejudice to Article 22, present the views of the EMI externally;

– be responsible for the day-to-day management of the EMI.

In the absence of the President, his duties shall be performed by the Vice-

President.

9.6. The terms and conditions of employment of the President, in particular

his salary, pension and other social security benefits, shall be the subject

of a contract with the EMI and shall be fixed by the Council of the EMI on a

proposal from a Committee comprising three members appointed by the Committee

of Governors or the Council of the EMI, as the case may be, and three members

appointed by the Council. The President shall not have the right to vote on

matters referred to in this paragraph.

9.7. If the President 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 of the EMI, compulsorily

retire him.

9.8. The Rules of Procedure of the EMI shall be adopted by the Council of the

EMI.

ARTICLE 10

Meetings of the Council of the EMI and voting procedures

10.1 The Council of the EMI shall meet at least ten times a year. The

proceedings of Council meetings shall be confidential. The Council of the EMI

may, acting unanimously, decide to make the outcome of its deliberations

public.

10.2. Each member of the Council of the EMI or his nominee shall have one

vote.

10.3. Save as otherwise provided for in this Statute, the Council of the EMI

shall act by a simple majority of its members.

10.4. Decisions to be taken in the context of Articles 4.2, 5.4, 6.2, and 6.3

shall require unanimity of the members of the Council of the EMI.

The adoption of opinions and recommendations under Articles 5.1 and 5.2, the

adoption of decisions under Articles 6.4, 16 and 23.6 and the adoption of

guidelines under Article 15.3 shall require a qualified majority of two thirds

of the members of the Council of the EMI.

ARTICLE 11

Interinstitutional cooperation and reporting requirements

11.1 The President of the Council and a member of the Commission may

participate, without having the right to vote, in meetings of the Council of

the EMI.

11.2. The President of the EMI shall be invited to participate in Council

meetings when the Council is discussing matters relating to the objectives and

tasks of the EMI.

11.3. At a date to be established in the Rules of Procedure, the EMI shall

prepare an annual report on its activities and on monetary and financial

conditions in the Community. The annual report, together with the annual

accounts of the EMI, shall be addressed to the European Parliament, the

Council and the Commission and also to the European Council.

The President of the EMI may, at the request of the European Parliament or on

his own initiative, be heard by the competent Committees of the European

Parliament.

11.4. Reports published by the EMI shall be made available to interested

parties free of charge.

ARTICLE 12

Currency denomination

The operations of the EMI shall be expressed in ECUs.

ARTICLE 13

Seat

Before the end of 1992, the decision as to where the seat of the EMI will be

established shall be taken by common accord of the governments of the Member

States at the level of Heads of State or of Government.

ARTICLE 14

Legal capacity

The EMI, which in accordance with Article 109f(1) of this Treaty shall have

legal personality, shall enjoy in each of the Member States the most extensive

legal capacity accorded to legal persons under their law; it may, in

particular, acquire or dispose of movable or immovable property and may be a

party to legal proceedings.

ARTICLE 15

Legal acts.

15.1. In the performance of its tasks, and under the conditions laid down in

this Statute, the EMI shall:

– deliver opinions

– make recommendations;

– adopt guidelines, and take decisions, which shall be addressed to the

national central banks.

15.2. Opinions and recommendations of the EMI shall have no binding force

15.3. The Council of the EMI may adopt guidelines laying down the methods for

the implementation of the conditions necessary for the ESCB to perform its

functions in the third stage. EMI guidelines shall have no binding force; they

shall be submitted for decision to the ECB.

15.4. Without prejudice to Article 3.1, a decision of the EMI shall be binding

in its entirety upon those to whom it is addressed. Articles 190 and 191 of

this Treaty shall apply to these decisions.

ARTICLE 16

Financial resources.

16.1. The EMI shall be endowed with its own resources. The size of the

resources of the EMI shall be determined by the Council of the EMI with a view

to ensuring the income deemed necessary to cover the administrative

expenditure incurred in the performance of the tasks and functions of the EMI.

16.2. The resources of the EMI determined in accordance with Article 16.1

shall be provided out of contributions by the national central banks in

accordance with the key referred to in Article 29.1 of the Statute of the ESCB

and be paid up at the establishment of the EMI. For this purpose, the

statistical data to be used for the determination of the key shall be provided

by the Commission, in accordance with the rules adopted by the Council, acting

by a qualified majority on a proposal from the Commission and after consulting

the European Parliament, the Committee of Governors and the Committee referred

to in Article 109c of this Treaty.

16.3. The Council of the EMI shall determine the form in which contributions

shall be paid up.

ARTICLE 17

Annual accounts and auditing

17.1. The financial year of the EMI shall begin on the first day of January

and end on the last day of December.

17.2. The Council of the EMI shall adopt an annual budget before the beginning

of each financial year.

17.3. The annual accounts shall be drawn up in accordance with the principles

established by the Council of the EMI. The annual accounts shall be approved

by the Council of the EMI and shall thereafter be published.

17.4. The annual accounts shall be audited by independent external auditors

approved by the Council of the EMI. The auditors shall have full power to

examine all books and accounts of the EMI and to obtain full information about

its transactions.

The provisions of Article 188c of this Treaty shall only apply to an

examination of the operational efficiency of the management of the EMI.

17.5. Any surplus of the EMI shall be transferred in the following order

(a) an amount to be determined by the Council of the EMI shall be transferred

to the general reserve fund of the EMI.

(b) any remaining surplus shall be distributed to the national central banks

in accordance with the key referred to in Article 16.2.

17.6. In the event of a loss incurred by the EMI, the shortfall shall be

offset against the general reserve fund of the EMI. Any remaining shortfall

shall be made good by contributions from the national central banks, in

accordance with the key as referred to in Article 16.2.

ARTICLE 18

Staff

18.1. The Council of the EMI shall lay down the conditions of employment of

the staff of the EMI.

18.2. The Court of Justice shall have jurisdiction in any dispute between the

EMI and its servants within the limits and under the conditions laid down in

the conditions of employment.

ARTICLE 19

Judicial control and related matters.

19.1. The acts or omissions of the EMI shall be open to review or

interpretation by the Court of Justice in the cases and under the conditions

laid down in this Treaty. The EMI may institute proceedings in the cases and

under the conditions laid down in this Treaty.

19.2. Disputes between the EMI, on the one hand, and its creditors, debtors or

any other person, on the other, shall fall within the jurisdiction of the

competent national courts, save where jurisdiction has been conferred upon the

Court of Justice.

19.3. The EMI shall be subject to the liability regime provided for in Article

215 of this Treaty.

19.4. The Court of Justice shall have jurisdiction to give judgment pursuant

to any arbitration clause contained in a contract concluded by or on behalf of

the EMI, whether that contract be governed by public or private law.

19.5. A decision of the EMI to bring an action before the Court of Justice

shall be taken by the Council of the EMI.

ARTICLE 20

Professional Secrecy

20.1. Members of the Council of the EMI and the staff of the EMI shall be

required, even after their duties have ceased, not to disclose information of

the kind covered by the obligation of professional secrecy.

20.2. Persons having access to data covered by Community legislation imposing

and obligation of secrecy shall be subject to such legislation.

ARTICLE 21

Privileges and immunities

The EMI shall enjoy in the territories of the Member States such privileges

and immunities as are necessary for the performance of its tasks, under the

conditions laid down in the Protocol on the Privileges and Immunities of the

European Communities annexed to the Treaty establishing a Single Council and a

Single Commission of the European Communities.

ARTICLE 22

Signatories

The EMI shall be legally committed to third parties by the President or the

Vice-President or by the signatures of two members of the staff of the EMI who

have been duly authorized by the President to sign on behalf of the EMI.

ARTICLE 23

Liquidation of the EMI

23.1. In accordance with Article 109l of this Treaty, the EMI shall go into

liquidation on the establishment of the ECB. All assets and liabilities of the

EMI shall then pass automatically to the ECB. The latter shall liquidate the

EMI according to the provisions of this Article. The liquidation shall be

completed by the beginning of the third stage.

23.2. The mechanism for the creation of ECUs against gold and US dollars as

provided for by Article 17 of the EMS agreement shall be unwound by the first

day of the third stage in accordance with Article 20 of the said Agreement.

23.3. All claims and liabilities arising from the very short-term financing

mechanism and the short-term monetary support mechanism, under the Agreements

referred to in Article 6.1, shall be settled by the first day of the third

stage.

23.4. All remaining assets of the EMI shall be disposed of and all remaining

liabilities of the EMI shall be settled.

23.5. The proceeds of the liquidation described in Article 23.4. shall be

distributed to the national central banks in accordance with the key referred

to in Article 16.2

23.6. The Council of the EMI may take the measures necessary for the

application of Articles 23.4. and 23.5.

23.7. Upon the establishment of the ECB, the President of the EMI shall

relinquish his office.

 

PROTOCOL

ON THE EXCESSIVE DEFICIT PROCEDURE

THE HIGH CONTRACTING PARTIES

DESIRING to lay down the details of the excessive deficit procedure referred

to in Article 104c of the treaty establishing the European Community,

HAVE AGREED upon the following provisions, which shall be annexed to the

Treaty establishing the European Community:

ARTICLE 1

The reference values referred to in Article 104c(2) of this Treaty are:

– 3% for the ratio of the planned or actual government deficit to gross

domestic product at market prices;

– 60% for the ratio of government debt to gross domestic product at market

prices.

ARTICLE 2

In Article 104c of this Treaty and in this Protocol:

– government means general government, that is central government, regional or

local government and social security funds, to the exclusion of commercial

operations, as defined in the European System of Integrated Economic Accounts;

– deficit means net borrowing as defined in the European System of Integrated

Economic Accounts;

– investment means gross fixed capital formation as defined in the European

System of Integrated Economic Accounts;

– debt means total gross debt at nominal value outstanding at the end of the

year and consolidated between and within the sectors of general government as

defined in the first indent.

ARTICLE 3

In order to ensure the effectiveness of the excessive deficit procedure, the

governments of the Member States shall be responsible under this procedure for

the deficits of general government as defined in the first indent of Article

2. The Member States shall ensure that national procedures in the Budgetary

area enable them to meet their obligations in this area deriving from this

Treaty. The Member States shall report their planned and actual deficits and

the levels of their debt promptly and regularly to the Commission.

ARTICLE 4.

The statistical data to be used for the application of this Protocol shall be

provided by the Commission.

 

PROTOCOL

ON THE CONVERGENCE CRITERIA REFERRED TO IN ARTICLE 109j OF THE TREATY

ESTABLISHING THE EUROPEAN COMMUNITY

THE HIGH CONTRACTING PARTIES,

DESIRING to lay down the details of the convergence criteria which shall guide

the Community in taking decisions on the passage to the third stage of

economic and monetary union, referred to in Article 109j(1) of this Treaty,

HAVE AGREED upon the following provisions, which shall be annexed to the

Treaty establishing the European Community:

ARTICLE 1

The criterion on price stability referred to in the first indent of Article

109j(1) of this Treaty shall mean that a Member State has a price performance

that is sustainable and an average rate of inflation, observed over a period

of one year before the examination, that does not exceed by more than 1 1/2

percentage points that of, at most, the three best performing Member States in

terms of price stability. Inflation shall be measured by means of the consumer

price index on a comparable basis, taking into account differences in national

definitions.

ARTICLE 2

The criterion on the government budgetary position referred to in the second

indent of Article 109j(1) of this treaty shall mean that at the time of the

examination the Member State is not the subject of a Council decision under

Article 104c(6) of this Treaty that an excessive deficit exists.

ARTICLE 3

The criterion on participation in the Exchange Rate mechanism of the European

Monetary System referred to in the third indent of Article 109j(1) of this

Treaty shall mean that a Member State has respected the normal fluctuation

margins provided for by the Exchange Rate Mechanism of the European Monetary

System without severe tensions for at least the last two years before the

examination. In particular, the Member State shall not have devalued its

currency’s bilateral central rate against any other Member State’s currency on

its own initiative for the same period.

ARTICLE 4

The criterion on the convergence of interest rates referred to in the fourth

indent of Article 109j(1) of this Treaty shall mean that, observed over a

period of one year before the examination, a Member State has had an average

nominal long-term interest rate that does not exceed by more than 2 percentage

points that of, at most, the three best performing Member States in terms of

price stability. Interest rates shall be measured on the basis of long term

government bonds or comparable securities, taking into account differences in

national definitions.

ARTICLE 5

The statistical data to be used for the application of this protocol shall be

provided by the Commission.

ARTICLE 6

The Council shall, acting unanimously on a proposal from the Commission and

after consulting the European Parliament, the EMI or the ECB as the case may

be, and the Committee referred to in Article 109c, adopt appropriate

provisions to lay down the details of the convergence criteria referred to

Article 109j of this Treaty, which shall then replace this Protocol.

 

PROTOCOL

AMENDING THE

PROTOCOL ON THE PRIVILEGES AND IMMUNITIES OF THE EUROPEAN COMMUNITIES

THE HIGH CONTRACTING PARTIES,

CONSIDERING that, in accordance with Article 40 of the Statute of the European

Central Bank and Article 21 of the Statute of the European Monetary Institute,

the European Central Bank and the European Monetary Institute shall enjoy in

the territories of the Member States such privileges and immunities as are

necessary for the performance of their tasks,

HAVE AGREED upon the following provisions, which shall be annexed to the

Treaty establishing the European Community:

SOLE ARTICLE

The Protocol on the Privileges and Immunities of the European Communities,

annexed to the Treaty establishing a Single Council and a Single Commission of

the European Communities, shall be supplemented by the following provisions:

“Article 23

This Protocol shall also apply to the European Central Bank, to the members of

its organs and to its staff, without prejudice to the provisions of the

Protocol on the Statute of the European System of Central Banks and the

European Central Bank.

The European Central Bank shall, in addition, be exempt from any form of

taxation or imposition of a like nature on the occasion of any increase in its

capital and from the various formalities which may be connected therewith in

the State where the bank has its seat. The activities of the Bank and of its

organs carried on in accordance with the Statute of the European System of

Central Banks and of the European Central Bank shall not be subject to any

turnover tax.

The above provisions shall also apply to the European Monetary Institute. Its

dissolution or liquidation shall not give rise to any imposition.”

 

PROTOCOL

ON DENMARK

THE HIGH CONTRACTING PARTIES,

DESIRING to settle certain particular problems relating to Denmark,

HAVE AGREED UPON the following provisions, which shall be annexed to the

Treaty establishing the European Community:

The provisions of Article 14 of the Protocol on the Statute of the European

System of Central Banks and of the European System of Central Banks and of the

European Central Bank shall not affect the right of the National Bank of

Denmark to carry out its exist ing tasks concerning those parts of the Kingdom

of Denmark which are not part of the Community.

 

PROTOCOL

ON PORTUGAL

THE HIGH CONTRACTING PARTIES,

DESIRING to settle certain particular problems relating to Portugal,

HAVE AGREED upon the following provisions, which shall be annexed to the

Treaty establishing the European Community:

1. Portugal is hereby authorized to maintain the facility afforded to the

Autonomous Regions of Azores and Madeira to benefit from an interest-free

credit facility with the Banco de Portugal under the terms established by

existing Portuguese law.

2. Portugal commits itself to pursue its best endeavors in order to put an end

to the above mentioned facility as soon as possible.

 

PROTOCOL

ON THE TRANSITION TO THE THIRD STAGE OF ECONOMIC AND MONETARY UNION

THE HIGH CONTRACTING PARTIES,

Declare the irreversible character of the Community’s movement to the third

stage of Economic and Monetary Union by signing the new Treaty provisions on

Economic and Monetary Union.

Therefore all Member States shall, whether they fulfil the necessary

conditions for the adoption of a single currency or not, respect the will for

the Community to enter swiftly into the third stage, and therefore no Member

State shall prevent the entering into the third stage.

If by the end of 1997 the date of the beginning of the third stage has not

been set, the Member States concerned, the Community institutions and other

bodies involved shall expedite all preparatory work during 1998, in order to

enable the Community to enter the third stage irrevocably on 1 January 1999

and to enable the ECB and ESCB to start their full functioning from this date.

This Protocol shall be annexed to the Treaty establishing the European

Community.

 

PROTOCOL

ON CERTAIN PROVISIONS RELATING TO THE UNITED KINGDOM OF GREAT BRITAIN AND

NORTHERN IRELAND

THE HIGH CONTRACTING PARTIES,

RECOGNIZING that the United Kingdom shall not be obliged or committed to move

to the third stage of economic and monetary union without a separate decision

to do so by its government and Parliament,

NOTING the practice of the government of the United Kingdom to fund its

borrowing requirement by the sale of debt to the private sector.

HAVE AGREED the following provisions, which shall be annexed to the Treaty

establishing the European Community:

1. The United Kingdom shall notify the Council whether it intends to move to

the third stage before the Council makes its assessment under Article 109j(2)

of this Treaty;

Unless the United Kingdom notifies the Council that it intends to move to the

third stage, it shall be under no obligation to do so.

If no date is set for the beginning of the third stage under Article 109j(3)

of this Treaty, the United Kingdom may notify its intention to move to the

third stage before 1 January 1998.

2. Paragraphs 3 to 9 shall have effect if the United Kingdom notifies the

Council that it does not intend to move to the third stage.

3.The United Kingdom shall not be included among the majority of Member States

which fulfil the necessary conditions referred to in the second indent of

Article 109j(2) and the first indent of Article 109j(3) of this Treaty.

4. The United Kingdom shall retain its powers in the field of monetary policy

according to national law.

5. Articles 3a(2), 104c(1), (9) and (11), 105(1) to (5), 105a, 107, 108, 108a,

109, 109a(1) and (2)(b) and 109l(4) and (5) of this Treaty shall not apply to

the United Kingdom. In these provisions references to the Community or the

Member States shall not include the United Kingdom and references to national

central banks shall not include the Bank of England.

6. Articles 109e(4) and 109h and i of this Treaty shall continue to apply to

the United Kingdom. Articles 109c(4) and 109m shall apply to the united

Kingdom as if it had a derogation.

7. The voting rights of the United Kingdom shall be suspended in respect of

acts of the Council referred to in Articles listed in paragraph 5. For this

purpose the weighted votes of the United Kingdom shall be excluded form any

calculation of a qualified majority under Article 109k(5) of this Treaty.

The United Kingdom shall also have no right to participate in the appointment

of the President, the Vice-President and the other members of the Executive

Board of the ECB under Articles 109a(2)(b) and 109l(1) of this Treaty.

8. Articles 3, 4, 6, 7, 9.2, 10.1, 10.3, 11.2, 12.1, 14, 16, 18 to 20, 22, 23,

26, 27, 30 to 34, 50 and 52 of the Protocol on the Statute of the European

System of Central Banks and of the European Central Bank (“the Statute”) shall

not apply to the United Kingdom.

In those Articles, references to the Community or the Member States shall not

include the United Kingdom and references to national central banks or

shareholders shall not include the Bank of England.

References in Articles 10.3 and 30.2. of the Statute to “subscribed capital of

the ECB” shall not include capital subscribed by the Bank of England.

9. Article 109(3) of this Treaty and Articles 44 to 48 of the Statute shall

have effect, whether or not there is any Member State with a derogation,

subject to the following amendments:

(a) References in Article 44 ot the tasks of the ECB and the EMI shall include

those tasks that still need to be performed in the third stage owing to any

decision of the United kingdom not to move to that Stage.

(b) In addition to the tasks referred to in Article 47 the ECB shall also give

advice in relation to and contribute to the preparation of any decision of the

Council with regard to the United Kingdom taken in accordance with paragraphs

10(a) and 10(c).

(c) The Bank of England shall pay up its subscription to the capital of the

ECB as a contribution of its operational costs on the same basis as national

central banks of Member States with a derogation.

10. If the United Kingdom does not move to the third stage, it may change its

notification at any time after the beginning of that stage. In that event:

(a) The United Kingdom shall have the right to move to the third stage

provided only that it satisfies the necessary conditions. The Council, acting

at the request of the United Kingdom and under the conditions and in

accordance with the procedure laid down in Article 109k(2) of this Treaty,

shall decide whether it fulfills the necessary conditions.

(b) The Bank of England shall pay up its subscribed capital, transfer to the

ECB foreign reserve assets and contribute to its reserves on the same basis as

the national central bank of a Member State whose derogation has been

abrogated.

(c) The Council, acting under the conditions and in accordance with the

procedure laid down in Article 109(5) of this Treaty, shall take all other

necessary decisions to enable the United Kingdom to move to the third stage.

If the United Kingdom moves to the third stage pursuant to the provisions of

this protocol, paragraphs 3 to 9 shall cease to have effect.

11. Notwithstanding Articles 104 and 109e(3) of this Treaty and Article 21.1.

of the Statute, the government of the United Kingdom may maintain its ways and

means facility with the Bank of England if and so long as the United Kingdom

does not move to the third stage.

 

PROTOCOL

ON CERTAIN PROVISIONS RELATING TO DENMARK

THE HIGH CONTRACTING PARTIES,

DESIRING to settle, in accordance with the general objectives of the Treaty

establishing the European Community, certain particular problems existing at

the present time,

TAKING INTO ACCOUNT that the Danish Constitution contains provisions which may

imply a referendum in Denmark prior to Danish participation in the third stage

of Economic and Monetary Union,

HAVE AGREED on the following provisions, which shall be annexed to the Treaty

establishing the European Community:

1. The Danish Government shall notify the Council of its position concerning

participation in the third stage before the Council makes its assessment under

Article 109j(2) of this Treaty.

2. In the event of a notification that Denmark will not participate in the

third stage, Denmark shall have an exemption. The effect of the exemption

shall be that all Articles and provisions of this Treaty and the Statute of

the ESCB referring to a derogation shall be applicable to Denmark.

3. In such case, Denmark shall not be included among the majority of Member

States which fulfil the necessary conditions referred to in the second indent

of Article 109j(2) and the first indent of Article 109j(3) of this Treaty.

4. As for the abrogation of the exemption, the procedure referred to in

Article 109k(2) shall only be initiated at the request of Denmark.

5. In the event of abrogation of the exemption status, the provisions of this

Protocol shall cease to apply.

 

PROTOCOL

ON FRANCE

THE HIGH CONTRACTING PARTIES,

DESIRING to take into account a particular point relating to France,

HAVE AGREED upon the following provisions, which shall be annexed to the

Treaty establishing the European Community.

France will keep the privilege of monetary emission in its overseas

territories under the terms established by its national laws, and will be

solely entitled to determine the parity of the CFP franc.

 

PROTOCOL

ON SOCIAL POLICY

THE HIGH CONTRACTING PARTIES,

NOTING that eleven Member States, that is to say the Kingdom of Belgium, the

Kingdom of Denmark and 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 and the Portuguese

Republic, wish to continue along the path laid down in the 1989 Social

Charter; that they have adopted among themselves an Agreement to this end;

that this Agreement is annexed to this Protocol; that this Protocol and the

said Agreement are without prejudice to the provisions of this Treaty,

particularly those relating to social policy which constitute an integral part

of the “acquis communautaire”:

1. Agree to authorize those eleven Member States to have recourse to the

institutions, procedures and mechanisms of the Treaty for the purposes of

taking among themselves and applying as far as they are concerned the acts and

decisions required for giving effect to the abovementioned Agreement.

2. The United Kingdom of Great Britain and Northern Ireland shall not take

part in the deliberations and the adoption by the Council of Commission

proposals made on the basis of the Protocol and the above mentioned Agreement.

By way of derogation from Article 148(2) of the Treaty, acts of the Council

which are made pursuant to this Protocol and which must be adopted by a

qualified majority shall be deemed to be so adopted if they have received at

least forty-four votes in favour. The unanimity of the members of the Council,

with the exception of the United Kingdom of Great Britain and Northern

Ireland, shall be necessary for acts of the Council which must be adopted

unanimously and for those amending the Commission proposal.

Acts adopted by the Council and any financial consequences other than

administrative costs entailed for the institutions shall not be applicable to

the United Kingdom of Great Britain and Northern Ireland.

3. This Protocol shall be annexed to the Treaty establishing the European

Community.

 

AGREEMENT

ON SOCIAL POLICY CONCLUDED BETWEEN THE MEMBER STATES OF THE EUROPEAN COMMUNITY

WITH THE EXCEPTION OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN

IRELAND.

The undersigned eleven HIGH CONTRACTING PARTIES, that is to say, the Kingdom

of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the

Hellenic Republic, the Grand Duchy of Luxembourg, the Kingdom of the

Netherlands and the Portuguese Republic (hereinafter referred to the “the

Member States”),

WISHING TO implement to the 1989 Social Charter on the basis of the “acquis

communautaire”,

CONSIDERING the Protocol on social policy,

HAVE AGREED as follows:

ARTICLE 1

The Community and the Member States shall have as their objectives the

promotion of employment, improved living and working conditions, proper social

protection, dialogue between management and labour, the development of human

resources with a view to lasting high employment and the combating of

exclusion. To this end the Community and Member States shall implement

measures which take account of the diverse forms of national practices, in

particular in the field of contractual relations, and the need to maintain the

competitiveness of the Community economy.

ARTICLE 2

1. With a view to achieving the objectives of Article 1, the Community shall

support and complement the activities of the Member States in the following

fields:

– improvement in particular of the working environment to protect workers’

health and safety;

– working conditions;

– the information and consultation of workers;

– equality between men and women with regard to labour market opportunities

and treatment at work;

– the integration of persons excluded from the labour market, without

prejudice to Article 127 of the Treaty establishing the European Community

(hereinafter referred to as “the Treaty”).

2. To this end, the Council may adopt, by means of directives, minimum

requirements for gradual implementation, having regard to the conditions and

technical rules obtaining in each of the Member States. Such directives shall

avoid imposing administrative, financial and legal constraints in a way which

would hold back the creation and development of small and medium-sized

undertakings.

The Council shall act in accordance with the procedure referred to in Article

189c of the Treaty after consulting the Economic and Social Committee.

3. However, the Council shall act unanimously on a proposal from the

Commission, after consulting the European Parliament and the Economic and

Social Committee, in following areas:

– social security and social protection of workers;

– protection of workers where their employment contract is terminated;

– representation and collective defence of the interests of worker and

employers, including co-determination, subject to paragraph 6;’

– conditions of employment for third-country nationals legally residing in

Community territory;

– financial contributions for promotion of employment and job-creation,

without prejudice to the provisions relating to the Social Fund.

4. A Member State may entrust management and labour, at their joint request,

with the implementation of directives adopted pursuant to paragraphs 2 and 3.

In this case, it shall ensure that, no later than the date on which a

directive must be transposed in accordance with Article 189, management and

labour have introduced the necessary measures by agreement, the Member State

concerned being required to take any necessary measure enabling it at any time

to be in a posi tion to guarantee the results imposed by that directive.

5. The provisions adopted pursuant to this Article shall not prevent any

Member State from maintaining or introducing more stringent protective

measures compatible with the Treaty.

6. The provisions of this Article shall not apply to pay, the right of

association, the right to strike or the right to impose lock-outs.

ARTICLE 3

1. The Commission shall have the task of promoting the consultation of

management and labour at Community level and shall take any relevant measure

to facilitate their dialogue by ensuring balanced support for the parties.

2. To this end, before submitting proposals in the social policy field, the

Commission shall consult management and labour on the possible direction of

Community action.

3. If, after such consultation, the Commission considers Community action

advisable, it shall consult management and labour on the content of the

envisaged proposal. Management and labour shall forward to the Commission an

opinion or, where appropriate, a recommendation.

4. On the occasion of such consultation, management and labour may inform the

Commission of their wish to initiate the process provided for in Article 4.

The duration of the procedure shall not exceed nine months, unless the

management and labour concerned and the Commission decide jointly to extend

it.

ARTICLE 4

1. Should management and labour so desire, the dialogue between them at

Community level may lead to contractual relations, including agreements.

2. Agreements concluded at Community level shall be implemented either in

accordance with the procedures and practices specific to management and labour

and the Member States or, in matters covered by Article 2, at the joint

request of the signatory parties, by a Council decision on a proposal from the

Commission.

The Council shall act by qualified majority, except where the agreement in

question contains one or more provisions relating to one of the areas referred

to in Article 2(3), in which case it shall act unanimously.

ARTICLE 5

With a view to achieving the objectives of Article 1 and without prejudice to

the other provisions of the Treaty, the Commission shall encourage cooperation

between the Member States and facilitate the coordination of their action in

all social policy fields under this Agreement.

ARTICLE 6

1. Each Member State shall ensure that the principle of equal pay for male and

female workers for equal work is applied.

2. For the purpose of this Article, “pay” means the ordinary basic or minimum

wage or salary and any other consideration, whether in cash or in kind, which

the worker receives directly or indirectly, in respect of his employment, from

his employer.

Equal pay without discrimination based on sex means:

(a) that pay for the same work at piece rates shall be calculated on the basis

of the same unit of measurement.

(b) that pay for work at time rates shall be the same for the same job.

3. This Article shall not prevent any Member State from maintaining or

adopting measures providing for specific advantages in order to make it easier

for women to pursue a vocational activity or to prevent or compensate for

disadvantages in their professional careers.

ARTICLE 7

The Commission shall draw up a report each year on progress in achieving the

objective of Article 1, including the demographic situation in the Community.

It shall forward the report to the European Parliament, the Council and the

Economic and Social Committee.

The European Parliament may invite the Commission to draw up reports on

particular problems concerning the social situation.

DECLARATIONS

1. Declaration on Article 2(2)

The eleven High Contracting Parties note that in the discussions on Article

2(2) of the Agreement it was agreed that the Community does not intend, in

laying down minimum requirements for the protection of the safety and health

of employees, to discriminate in a manner unjustified by the circumstances

against employees in small and medium-sized undertakings.

2. Declaration on Article 4(2)

The eleven High Contracting Parties declare that the first of the arrangements

for application of the agreements between man agement and labour at Community

level – referred to in Article 4(2) – will consist in developing, by

collective bargaining according to the rules of each Member State, the content

of the agreements, and that consequently this arrangement implies no

obligation on the Member States to apply the agreements directly or to work

out rules for their transposition, or any obligation to amend national

legislation in force to facilitate their implementation.

 

PROTOCOL

ON ECONOMIC AND SOCIAL COHESION THE HIGH CONTRACTING PARTIES,

RECALLING that the Union has set itself the objective of promoting economic

and social progress, inter alia, through the strengthening of economic and

social cohesion;

RECALLING that Article 2 of the Treaty establishing the European Community

includes the task of promoting economic and social cohesion and solidarity

between Member States and that the strengthening of economic and social

cohesion figures among the activities of the Community listed in Article 3;

RECALLING that the provisions of Part Three, Title XIV, on economic and social

cohesion as a whole provide the legal basis for consolidating and further

developing the Community’s action in the field of economic and social

cohesion, including the creation of a new fund;

RECALLING that the provisions of Part Three, Title XII on trans-European

networks and Title XVI on environment envisage a Cohesion Fund to be set up

before 31 December 1993;

STATING their belief that progress towards Economic and Monetary Union will

contribute to the economic growth of all Member States;

NOTING that the Community’s Structural Funds are being doubled in real terms

between 1987 and 1993, implying large transfers, especially as a proportion of

GDP of the less prosperous Member States;

NOTING that the European Investment Bank is lending large and increasing

amounts for the benefit of the poorer regions;

NOTING the desire for greater flexibility in the arrangements for allocation

from the structural Funds;

NOTING the desire for modulation of the levels of Community participation in

programmes and projects in certain countries;

NOTING the proposal to take greater account of the relative prosperity of

Member States in the system of own resources,

REAFFIRM that the promotion of economic and social cohesion is vital to the

full development and enduring success of the Community, and underline the

importance of the inclusion of economic and social cohesion in Articles 2 and

3 of this Treaty;

REAFFIRM their conviction that the Structural Funds should continue to play a

considerable part in the achievement of Community objectives in the field of

cohesion;

REAFFIRM their conviction that the European Investment Bank should continue to

devote the majority of its resources to the promotion of economic and social

cohesion, and declare their willingness to review the capital needs of the

European Investment Bank as soon as this is necessary for that purpose;

REAFFIRM the need for a thorough evaluation of the operation and effectiveness

of the Structural Funds in 1992, and the need to review, on that occasion, the

appropriate size of these Funds in the light of the tasks of the Community in

the area of economic and social cohesion;

AGREE that the Cohesion Fund to be set up before 31 December 1993 will provide

Community financial contributions to projects in the fields of environment and

trans-European networks in Member States with a per capita GNP of less than

90% of the Community average which have a programme leading to the fulfilment

of the conditions of economic convergence as set out in Article 104c;

DECLARE their intention of allowing a greater margin of flexibility in

allocating financing from the Structural Funds to specific needs not covered

under the present Structural Funds regulations;

DECLARE their willingness to modulate the levels of Community participation in

the context of programmes and projects of the Structural Funds, with a view to

avoiding excessive increases in budgetary expenditure in the less prosperous

Member States;

RECOGNIZE the need to monitor regularly the progress made towards achieving

economic and social cohesion and state their willingness to study all

necessary measures in this respect;

DECLARE their intention of taking greater account of the contributive capacity

of individual Member States in the system of own resources, and of examining

means of correcting, for the less prosperous Member States, regressive

elements existing in the present own resources system;

AGREE to annex this Protocol to the Treaty establishing the European

Community.

 

PROTOCOL

ON THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

THE HIGH CONTRACTING PARTIES

HAVE AGREED upon the following provision, which shall be annexed to this

Treaty establishing the European Community:

The Economic and Social Committee and the Committee of the Regions shall have

a common organizational structure.

 

PROTOCOL

ANNEXED TO THE TREATY ON EUROPEAN UNION AND TO THE TREATIES ESTABLISHING THE

EUROPEAN COMMUNITIES

THE HIGH CONTRACTING PARTIES,

HAVE AGREED upon the following provision, which shall be annexed to the Treaty

on European Union and to the Treaties establishing the European Communities:

Nothing in the Treaty on European Union, or in the Treaties establishing the

European Communities, or in the Treaties or Acts modifying or supplementing

those Treaties, shall affect the application in Ireland of Article 40.3.3 of

the Constitution of Ireland.

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