CONSOLIDATED VERSION OF THE TREATY ON THE

CONSOLIDATED VERSION

THE TREATY ON THE FUNCTIONING OF THE

EUROPEAN UNION

26.10.2012 Official Journal of the European Union C 326/47

PREAMBLE

HIS MAJESTY THE KING OF THE BELGIANS, THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY, THE

PRESIDENT OF THE FRENCH REPUBLIC, THE PRESIDENT OF THE ITALIAN REPUBLIC, HER ROYAL HIGHNESS

THE GRAND DUCHESS OF LUXEMBOURG, HER MAJESTY THE QUEEN OF THE NETHERLANDS, (

)

DETERMINED

to lay the foundations of an ever closer union among the peoples of Europe,

RESOLVED

to ensure the economic and social progress of their States by common action to eliminate

the barriers which divide Europe,

AFFIRMING

as the essential objective of their efforts the constant improvements of the living and

working conditions of their peoples,

RECOGNISING

that the removal of existing obstacles calls for concerted action in order to guarantee

steady expansion, balanced trade and fair competition,

ANXIOUS

to strengthen the unity of their economies and to ensure their harmonious development by

reducing the differences existing between the various regions and the backwardness of the less

favoured regions,

DESIRING

to contribute, by means of a common commercial policy, to the progressive abolition of

restrictions on international trade,

INTENDING

to confirm the solidarity which binds Europe and the overseas countries and desiring to

ensure the development of their prosperity, in accordance with the principles of the Charter of the

United Nations,

RESOLVED

by thus pooling their resources to preserve and strengthen peace and liberty, and calling

upon the other peoples of Europe who share their ideal to join in their efforts,

DETERMINED

to promote the development of the highest possible level of knowledge for their peoples

through a wide access to education and through its continuous updating,

and to this end

HAVE DESIGNATED as their Plenipotentiaries:

(List of plenipotentiaries not reproduced)

WHO

, having exchanged their full powers, found in good and due form, have agreed as follows.

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(

) The Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Republic of Estonia, Ireland, the Hellenic

Republic, the Kingdom of Spain, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the

Republic of Hungary, the Republic of Malta, the Republic of Austria, the Republic of Poland, the Portuguese

Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland, the Kingdom of

Sweden and the United Kingdom of Great Britain and Northern Ireland have since become members of the

European Union.

PART ONE

PRINCIPLES

Article 1

1. This Treaty organises the functioning of the Union and determines the areas of, delimitation of,

and arrangements for exercising its competences.

2. This Treaty and the Treaty on European Union constitute the Treaties on which the Union is

founded. These two Treaties, which have the same legal value, shall be referred to as ‘the Treaties’.

TITLE I

CATEGORIES AND AREAS OF UNION COMPETENCE

Article 2

1. When the Treaties confer on the Union exclusive competence in a specific area, only the Union

may legislate and adopt legally binding acts, the Member States being able to do so themselves only

if so empowered by the Union or for the implementation of Union acts.

2. When the Treaties confer on the Union a competence shared with the Member States in a

specific area, the Union and the Member States may legislate and adopt legally binding acts in that

area. The Member States shall exercise their competence to the extent that the Union has not

exercised its competence. The Member States shall again exercise their competence to the extent

that the Union has decided to cease exercising its competence.

3. The Member States shall coordinate their economic and employment policies within

arrangements as determined by this Treaty, which the Union shall have competence to provide.

4. The Union shall have competence, in accordance with the provisions of the Treaty on European

Union, to define and implement a common foreign and security policy, including the progressive

framing of a common defence policy.

5. In certain areas and under the conditions laid down in the Treaties, the Union shall have

competence to carry out actions to support, coordinate or supplement the actions of the Member

States, without thereby superseding their competence in these areas.

Legally binding acts of the Union adopted on the basis of the provisions of the Treaties relating to

these areas shall not entail harmonisation of Member States' laws or regulations.

6. The scope of and arrangements for exercising the Union's competences shall be determined by

the provisions of the Treaties relating to each area.

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Article 3

1. The Union shall have exclusive competence in the following areas:

(a) customs union;

(b) the establishing of the competition rules necessary for the functioning of the internal market;

(d) the conservation of marine biological resources under the common fisheries policy;

(e) common commercial policy.

2. The Union shall also have exclusive competence for the conclusion of an international

agreement when its conclusion is provided for in a legislative act of the Union or is necessary to

enable the Union to exercise its internal competence, or in so far as its conclusion may affect

common rules or alter their scope.

Article 4

1. The Union shall share competence with the Member States where the Treaties confer on it a

competence which does not relate to the areas referred to in Articles 3 and 6.

2. Shared competence between the Union and the Member States applies in the following

principal areas:

(a) internal market;

(b) social policy, for the aspects defined in this Treaty;

(d) agriculture and fisheries, excluding the conservation of marine biological resources;

(e) environment;

(f) consumer protection;

(g) transport;

(h) trans-European networks;

(i) energy;

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(j) area of freedom, security and justice;

(k) common safety concerns in public health matters, for the aspects defined in this Treaty.

3. In the areas of research, technological development and space, the Union shall have

competence to carry out activities, in particular to define and implement programmes; however,

the exercise of that competence shall not result in Member States being prevented from exercising

theirs.

4. In the areas of development cooperation and humanitarian aid, the Union shall have

competence to carry out activities and conduct a common policy; however, the exercise of that

competence shall not result in Member States being prevented from exercising theirs.

Article 5

1. The Member States shall coordinate their economic policies within the Union. To this end, the

Council shall adopt measures, in particular broad guidelines for these policies.

Specific provisions shall apply to those Member States whose currency is the euro.

2. The Union shall take measures to ensure coordination of the employment policies of the

Member States, in particular by defining guidelines for these policies.

3. The Union may take initiatives to ensure coordination of Member States' social policies.

Article 6

The Union shall have competence to carry out actions to support, coordinate or supplement the

actions of the Member States. The areas of such action shall, at European level, be:

(a) protection and improvement of human health;

(b) industry;

(d) tourism;

(e) education, vocational training, youth and sport;

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(f) civil protection;

(g) administrative cooperation.

TITLE II

PROVISIONS HAVING GENERAL APPLICATION

Article 7

The Union shall ensure consistency between its policies and activities, taking all of its objectives into

account and in accordance with the principle of conferral of powers.

Article 8

(ex Article 3(2) TEC) (

)

In all its activities, the Union shall aim to eliminate inequalities, and to promote equality, between

men and women.

Article 9

In defining and implementing its policies and activities, the Union shall take into account

requirements linked to the promotion of a high level of employment, the guarantee of adequate

social protection, the fight against social exclusion, and a high level of education, training and

protection of human health.

Article 10

In defining and implementing its policies and activities, the Union shall aim to combat discrimination

based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

Article 11

(ex Article 6 TEC)

Environmental protection requirements must be integrated into the definition and implementation of

the Union's policies and activities, in particular with a view to promoting sustainable development.

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(

) These references are merely indicative. For more ample information, please refer to the tables of equivalences between

the old and the new numbering of the Treaties.

Article 12

(ex Article 153(2) TEC)

Consumer protection requirements shall be taken into account in defining and implementing other

Union policies and activities.

Article 13

In formulating and implementing the Union's agriculture, fisheries, transport, internal market,

research and technological development and space policies, the Union and the Member States

shall, since animals are sentient beings, pay full regard to the welfare requirements of animals,

while respecting the legislative or administrative provisions and customs of the Member States

relating in particular to religious rites, cultural traditions and regional heritage.

Article 14

(ex Article 16 TEC)

Without prejudice to Article 4 of the Treaty on European Union or to Articles 93, 106 and 107 of

this Treaty, and given the place occupied by services of general economic interest in the shared values

of the Union as well as their role in promoting social and territorial cohesion, the Union and the

Member States, each within their respective powers and within the scope of application of the

Treaties, shall take care that such services operate on the basis of principles and conditions,

particularly economic and financial conditions, which enable them to fulfil their missions. The

European Parliament and the Council, acting by means of regulations in accordance with the

ordinary legislative procedure, shall establish these principles and set these conditions without

prejudice to the competence of Member States, in compliance with the Treaties, to provide, to

commission and to fund such services.

Article 15

(ex Article 255 TEC)

1. In order to promote good governance and ensure the participation of civil society, the Union's

institutions, bodies, offices and agencies shall conduct their work as openly as possible.

2. The European Parliament shall meet in public, as shall the Council when considering and

voting on a draft legislative act.

3. Any citizen of the Union, and any natural or legal person residing or having its registered office

in a Member State, shall have a right of access to documents of the Union's institutions, bodies,

offices and agencies, whatever their medium, subject to the principles and the conditions to be

defined in accordance with this paragraph.

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General principles and limits on grounds of public or private interest governing this right of access to

documents shall be determined by the European Parliament and the Council, by means of regu

lations, acting in accordance with the ordinary legislative procedure.

Each institution, body, office or agency shall ensure that its proceedings are transparent and shall

elaborate in its own Rules of Procedure specific provisions regarding access to its documents, in

accordance with the regulations referred to in the second subparagraph.

The Court of Justice of the European Union, the European Central Bank and the European

Investment Bank shall be subject to this paragraph only when exercising their administrative tasks.

The European Parliament and the Council shall ensure publication of the documents relating to the

legislative procedures under the terms laid down by the regulations referred to in the second

subparagraph.

Article 16

(ex Article 286 TEC)

1. Everyone has the right to the protection of personal data concerning them.

2. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, shall lay down the rules relating to the protection of individuals with regard to the

processing of personal data by Union institutions, bodies, offices and agencies, and by the

Member States when carrying out activities which fall within the scope of Union law, and the

rules relating to the free movement of such data. Compliance with these rules shall be subject to

the control of independent authorities.

The rules adopted on the basis of this Article shall be without prejudice to the specific rules laid

down in Article 39 of the Treaty on European Union.

Article 17

1. The Union respects and does not prejudice the status under national law of churches and

religious associations or communities in the Member States.

2. The Union equally respects the status under national law of philosophical and non-confessional

organisations.

3. Recognising their identity and their specific contribution, the Union shall maintain an open,

transparent and regular dialogue with these churches and organisations.

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PART TWO

NON-DISCRIMINATION AND CITIZENSHIP OF THE UNION

Article 18

(ex Article 12 TEC)

Within the scope of application of the Treaties, and without prejudice to any special provisions

contained therein, any discrimination on grounds of nationality shall be prohibited.

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may adopt rules designed to prohibit such discrimination.

Article 19

(ex Article 13 TEC)

1. Without prejudice to the other provisions of the Treaties and within the limits of the powers

conferred by them upon the Union, the Council, acting unanimously in accordance with a special

legislative procedure and after obtaining the consent of the European Parliament, may take appro

priate action to combat discrimination based on sex, racial or ethnic origin, religion or belief,

disability, age or sexual orientation.

2. By way of derogation from paragraph 1, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, may adopt the basic principles of Union incentive

measures, excluding any harmonisation of the laws and regulations of the Member States, to support

action taken by the Member States in order to contribute to the achievement of the objectives

referred to in paragraph 1.

Article 20

(ex Article 17 TEC)

1. Citizenship of the Union is hereby established. Every person holding the nationality of a

Member State shall be a citizen of the Union. Citizenship of the Union shall be additional to and

not replace national citizenship.

2. Citizens of the Union shall enjoy the rights and be subject to the duties provided for in the

Treaties. They shall have, inter alia:

(a) the right to move and reside freely within the territory of the Member States;

(b) the right to vote and to stand as candidates in elections to the European Parliament and in

municipal elections in their Member State of residence, under the same conditions as nationals of

that State;

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are nationals is not represented, the protection of the diplomatic and consular authorities of any

Member State on the same conditions as the nationals of that State;

(d) the right to petition the European Parliament, to apply to the European Ombudsman, and to

address the institutions and advisory bodies of the Union in any of the Treaty languages and to

obtain a reply in the same language.

These rights shall be exercised in accordance with the conditions and limits defined by the Treaties

and by the measures adopted thereunder.

Article 21

(ex Article 18 TEC)

1. Every citizen of the Union shall have the right to move and reside freely within the territory of

the Member States, subject to the limitations and conditions laid down in the Treaties and by the

measures adopted to give them effect.

2. If action by the Union should prove necessary to attain this objective and the Treaties have not

provided the necessary powers, the European Parliament and the Council, acting in accordance with

the ordinary legislative procedure, may adopt provisions with a view to facilitating the exercise of the

rights referred to in paragraph 1.

3. For the same purposes as those referred to in paragraph 1 and if the Treaties have not provided

the necessary powers, the Council, acting in accordance with a special legislative procedure, may

adopt measures concerning social security or social protection. The Council shall act unanimously

after consulting the European Parliament.

Article 22

(ex Article 19 TEC)

1. Every citizen of the Union residing in a Member State of which he is not a national shall have

the right to vote and to stand as a candidate at municipal elections in the Member State in which he

resides, under the same conditions as nationals of that State. This right shall be exercised subject to

detailed arrangements adopted by the Council, acting unanimously in accordance with a special

legislative procedure and after consulting the European Parliament; these arrangements may

provide for derogations where warranted by problems specific to a Member State.

2. Without prejudice to Article 223(1) and to the provisions adopted for its implementation,

every citizen of the Union residing in a Member State of which he is not a national shall have the

right to vote and to stand as a candidate in elections to the European Parliament in the Member State

in which he resides, under the same conditions as nationals of that State. This right shall be exercised

subject to detailed arrangements adopted by the Council, acting unanimously in accordance with a

special legislative procedure and after consulting the European Parliament; these arrangements may

provide for derogations where warranted by problems specific to a Member State.

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Article 23

(ex Article 20 TEC)

Every citizen of the Union shall, in the territory of a third country in which the Member State of

which he is a national is not represented, be entitled to protection by the diplomatic or consular

authorities of any Member State, on the same conditions as the nationals of that State. Member

States shall adopt the necessary provisions and start the international negotiations required to secure

this protection.

The Council, acting in accordance with a special legislative procedure and after consulting the

European Parliament, may adopt directives establishing the coordination and cooperation measures

necessary to facilitate such protection.

Article 24

(ex Article 21 TEC)

The European Parliament and the Council, acting by means of regulations in accordance with the

ordinary legislative procedure, shall adopt the provisions for the procedures and conditions required

for a citizens' initiative within the meaning of Article 11 of the Treaty on European Union, including

the minimum number of Member States from which such citizens must come.

Every citizen of the Union shall have the right to petition the European Parliament in accordance

with Article 227.

Every citizen of the Union may apply to the Ombudsman established in accordance with Article 228.

Every citizen of the Union may write to any of the institutions or bodies referred to in this Article or

in Article 13 of the Treaty on European Union in one of the languages mentioned in Article 55(1) of

the Treaty on European Union and have an answer in the same language.

Article 25

(ex Article 22 TEC)

The Commission shall report to the European Parliament, to the Council and to the Economic and

Social Committee every three years on the application of the provisions of this Part. This report shall

take account of the development of the Union.

On this basis, and without prejudice to the other provisions of the Treaties, the Council, acting

unanimously in accordance with a special legislative procedure and after obtaining the consent of the

European Parliament, may adopt provisions to strengthen or to add to the rights listed in

Article 20(2). These provisions shall enter into force after their approval by the Member States in

accordance with their respective constitutional requirements.

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PART THREE

UNION POLICIES AND INTERNAL ACTIONS

TITLE I

THE INTERNAL MARKET

Article 26

(ex Article 14 TEC)

1. The Union shall adopt measures with the aim of establishing or ensuring the functioning of the

internal market, in accordance with the relevant provisions of the Treaties.

2. The internal market shall comprise an area without internal frontiers in which the free

movement of goods, persons, services and capital is ensured in accordance with the provisions of

the Treaties.

3. The Council, on a proposal from the Commission, shall determine the guidelines and

conditions necessary to ensure balanced progress in all the sectors concerned.

Article 27

(ex Article 15 TEC)

When drawing up its proposals with a view to achieving the objectives set out in Article 26, the

Commission shall take into account the extent of the effort that certain economies showing

differences in development will have to sustain for the establishment of the internal market and it

may propose appropriate provisions.

If these provisions take the form of derogations, they must be of a temporary nature and must cause

the least possible disturbance to the functioning of the internal market.

TITLE II

FREE MOVEMENT OF GOODS

Article 28

(ex Article 23 TEC)

1. The Union shall comprise a customs union which shall cover all trade in goods and which shall

involve the prohibition between Member States of customs duties on imports and exports and of all

charges having equivalent effect, and the adoption of a common customs tariff in their relations with

third countries.

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2. The provisions of Article 30 and of Chapter 3 of this Title shall apply to products originating

in Member States and to products coming from third countries which are in free circulation in

Member States.

Article 29

(ex Article 24 TEC)

Products coming from a third country shall be considered to be in free circulation in a Member State

if the import formalities have been complied with and any customs duties or charges having

equivalent effect which are payable have been levied in that Member State, and if they have not

benefited from a total or partial drawback of such duties or charges.

CHAPTER 1

THE CUSTOMS UNION

Article 30

(ex Article 25 TEC)

Customs duties on imports and exports and charges having equivalent effect shall be prohibited

between Member States. This prohibition shall also apply to customs duties of a fiscal nature.

Article 31

(ex Article 26 TEC)

Common Customs Tariff duties shall be fixed by the Council on a proposal from the Commission.

Article 32

(ex Article 27 TEC)

In carrying out the tasks entrusted to it under this Chapter the Commission shall be guided by:

(a) the need to promote trade between Member States and third countries;

(b) developments in conditions of competition within the Union in so far as they lead to an

improvement in the competitive capacity of undertakings;

this connection the Commission shall take care to avoid distorting conditions of competition

between Member States in respect of finished goods;

(d) the need to avoid serious disturbances in the economies of Member States and to ensure rational

development of production and an expansion of consumption within the Union.

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CHAPTER 2

CUSTOMS COOPERATION

Article 33

(ex Article 135 TEC)

Within the scope of application of the Treaties, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, shall take measures in order to strengthen

customs cooperation between Member States and between the latter and the Commission.

CHAPTER 3

PROHIBITION OF QUANTITATIVE RESTRICTIONS BETWEEN MEMBER STATES

Article 34

(ex Article 28 TEC)

Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited

between Member States.

Article 35

(ex Article 29 TEC)

Quantitative restrictions on exports, and all measures having equivalent effect, shall be prohibited

between Member States.

Article 36

(ex Article 30 TEC)

The provisions of Articles 34 and 35 shall not preclude prohibitions or restrictions on imports,

exports or goods in transit justified on grounds of public morality, public policy or public security;

the protection of health and life of humans, animals or plants; the protection of national treasures

possessing artistic, historic or archaeological value; or the protection of industrial and commercial

property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary

discrimination or a disguised restriction on trade between Member States.

Article 37

(ex Article 31 TEC)

1. Member States shall adjust any State monopolies of a commercial character so as to ensure that

no discrimination regarding the conditions under which goods are procured and marketed exists

between nationals of Member States.

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The provisions of this Article shall apply to any body through which a Member State, in law or in

fact, either directly or indirectly supervises, determines or appreciably influences imports or exports

between Member States. These provisions shall likewise apply to monopolies delegated by the State

to others.

2. Member States shall refrain from introducing any new measure which is contrary to the

principles laid down in paragraph 1 or which restricts the scope of the articles dealing with the

prohibition of customs duties and quantitative restrictions between Member States.

3. If a State monopoly of a commercial character has rules which are designed to make it easier to

dispose of agricultural products or obtain for them the best return, steps should be taken in applying

the rules contained in this Article to ensure equivalent safeguards for the employment and standard

of living of the producers concerned.

TITLE III

AGRICULTURE AND FISHERIES

Article 38

(ex Article 32 TEC)

1. The Union shall define and implement a common agriculture and fisheries policy.

The internal market shall extend to agriculture, fisheries and trade in agricultural products. ‘Agri

cultural products’ means the products of the soil, of stockfarming and of fisheries and products of

first-stage processing directly related to these products. References to the common agricultural policy

or to agriculture, and the use of the term ‘agricultural’, shall be understood as also referring to

fisheries, having regard to the specific characteristics of this sector.

2. Save as otherwise provided in Articles 39 to 44, the rules laid down for the establishment and

functioning of the internal market shall apply to agricultural products.

3. The products subject to the provisions of Articles 39 to 44 are listed in Annex I.

4. The operation and development of the internal market for agricultural products must be

accompanied by the establishment of a common agricultural policy.

Article 39

(ex Article 33 TEC)

1. The objectives of the common agricultural policy shall be:

(a) to increase agricultural productivity by promoting technical progress and by ensuring the rational

development of agricultural production and the optimum utilisation of the factors of production,

in particular labour;

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(b) thus to ensure a fair standard of living for the agricultural community, in particular by increasing

the individual earnings of persons engaged in agriculture;

(d) to assure the availability of supplies;

(e) to ensure that supplies reach consumers at reasonable prices.

2. In working out the common agricultural policy and the special methods for its application,

account shall be taken of:

(a) the particular nature of agricultural activity, which results from the social structure of agriculture

and from structural and natural disparities between the various agricultural regions;

(b) the need to effect the appropriate adjustments by degrees;

economy as a whole.

Article 40

(ex Article 34 TEC)

1. In order to attain the objectives set out in Article 39, a common organisation of agricultural

markets shall be established.

This organisation shall take one of the following forms, depending on the product concerned:

(a) common rules on competition;

(b) compulsory coordination of the various national market organisations;

2. The common organisation established in accordance with paragraph 1 may include all

measures required to attain the objectives set out in Article 39, in particular regulation of prices,

aids for the production and marketing of the various products, storage and carryover arrangements

and common machinery for stabilising imports or exports.

The common organisation shall be limited to pursuit of the objectives set out in Article 39 and shall

exclude any discrimination between producers or consumers within the Union.

Any common price policy shall be based on common criteria and uniform methods of calculation.

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3. In order to enable the common organisation referred to in paragraph 1 to attain its objectives,

one or more agricultural guidance and guarantee funds may be set up.

Article 41

(ex Article 35 TEC)

To enable the objectives set out in Article 39 to be attained, provision may be made within the

framework of the common agricultural policy for measures such as:

(a) an effective coordination of efforts in the spheres of vocational training, of research and of the

dissemination of agricultural knowledge; this may include joint financing of projects or institu

tions;

(b) joint measures to promote consumption of certain products.

Article 42

(ex Article 36 TEC)

The provisions of the Chapter relating to rules on competition shall apply to production of and trade

in agricultural products only to the extent determined by the European Parliament and the Council

within the framework of Article 43(2) and in accordance with the procedure laid down therein,

account being taken of the objectives set out in Article 39.

The Council, on a proposal from the Commission, may authorise the granting of aid:

(a) for the protection of enterprises handicapped by structural or natural conditions;

(b) within the framework of economic development programmes.

Article 43

(ex Article 37 TEC)

1. The Commission shall submit proposals for working out and implementing the common

agricultural policy, including the replacement of the national organisations by one of the forms of

common organisation provided for in Article 40(1), and for implementing the measures specified in

this Title.

These proposals shall take account of the interdependence of the agricultural matters mentioned in

this Title.

2. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee, shall establish the common

organisation of agricultural markets provided for in Article 40(1) and the other provisions necessary

for the pursuit of the objectives of the common agricultural policy and the common fisheries policy.

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3. The Council, on a proposal from the Commission, shall adopt measures on fixing prices, levies,

aid and quantitative limitations and on the fixing and allocation of fishing opportunities.

4. In accordance with paragraph 2, the national market organisations may be replaced by the

common organisation provided for in Article 40(1) if:

(a) the common organisation offers Member States which are opposed to this measure and which

have an organisation of their own for the production in question equivalent safeguards for the

employment and standard of living of the producers concerned, account being taken of the

adjustments that will be possible and the specialisation that will be needed with the passage of

time;

(b) such an organisation ensures conditions for trade within the Union similar to those existing in a

national market.

5. If a common organisation for certain raw materials is established before a common organi

sation exists for the corresponding processed products, such raw materials as are used for processed

products intended for export to third countries may be imported from outside the Union.

Article 44

(ex Article 38 TEC)

Where in a Member State a product is subject to a national market organisation or to internal rules

having equivalent effect which affect the competitive position of similar production in another

Member State, a countervailing charge shall be applied by Member States to imports of this

product coming from the Member State where such organisation or rules exist, unless that State

applies a countervailing charge on export.

The Commission shall fix the amount of these charges at the level required to redress the balance; it

may also authorise other measures, the conditions and details of which it shall determine.

TITLE IV

FREE MOVEMENT OF PERSONS, SERVICES AND CAPITAL

CHAPTER 1

WORKERS

Article 45

(ex Article 39 TEC)

1. Freedom of movement for workers shall be secured within the Union.

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2. Such freedom of movement shall entail the abolition of any discrimination based on nationality

between workers of the Member States as regards employment, remuneration and other conditions

of work and employment.

3. It shall entail the right, subject to limitations justified on grounds of public policy, public

security or public health:

(a) to accept offers of employment actually made;

(b) to move freely within the territory of Member States for this purpose;

governing the employment of nationals of that State laid down by law, regulation or adminis

trative action;

(d) to remain in the territory of a Member State after having been employed in that State, subject to

conditions which shall be embodied in regulations to be drawn up by the Commission.

4. The provisions of this Article shall not apply to employment in the public service.

Article 46

(ex Article 40 TEC)

The European Parliament and the Council shall, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee, issue directives or make regu

lations setting out the measures required to bring about freedom of movement for workers, as

defined in Article 45, in particular:

(a) by ensuring close cooperation between national employment services;

(b) by abolishing those administrative procedures and practices and those qualifying periods in

respect of eligibility for available employment, whether resulting from national legislation or

from agreements previously concluded between Member States, the maintenance of which would

form an obstacle to liberalisation of the movement of workers;

legislation or under agreements previously concluded between Member States as imposed on

workers of other Member States conditions regarding the free choice of employment other than

those imposed on workers of the State concerned;

(d) by setting up appropriate machinery to bring offers of employment into touch with applications

for employment and to facilitate the achievement of a balance between supply and demand in

the employment market in such a way as to avoid serious threats to the standard of living and

level of employment in the various regions and industries.

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Article 47

(ex Article 41 TEC)

Member States shall, within the framework of a joint programme, encourage the exchange of young

workers.

Article 48

(ex Article 42 TEC)

The European Parliament and the Council shall, acting in accordance with the ordinary legislative

procedure, adopt such measures in the field of social security as are necessary to provide freedom of

movement for workers; to this end, they shall make arrangements to secure for employed and self-

employed migrant workers and their dependants:

(a) aggregation, for the purpose of acquiring and retaining the right to benefit and of calculating the

amount of benefit, of all periods taken into account under the laws of the several countries;

(b) payment of benefits to persons resident in the territories of Member States.

Where a member of the Council declares that a draft legislative act referred to in the first

subparagraph would affect important aspects of its social security system, including its scope, cost

or financial structure, or would affect the financial balance of that system, it may request that the

matter be referred to the European Council. In that case, the ordinary legislative procedure shall be

suspended. After discussion, the European Council shall, within four months of this suspension,

either:

(a) refer the draft back to the Council, which shall terminate the suspension of the ordinary legis

lative procedure; or

(b) take no action or request the Commission to submit a new proposal; in that case, the act

originally proposed shall be deemed not to have been adopted.

CHAPTER 2

RIGHT OF ESTABLISHMENT

Article 49

(ex Article 43 TEC)

Within the framework of the provisions set out below, restrictions on the freedom of establishment

of nationals of a Member State in the territory of another Member State shall be prohibited. Such

prohibition shall also apply to restrictions on the setting-up of agencies, branches or subsidiaries by

nationals of any Member State established in the territory of any Member State.

Freedom of establishment shall include the right to take up and pursue activities as self-employed

persons and to set up and manage undertakings, in particular companies or firms within the meaning

of the second paragraph of Article 54, under the conditions laid down for its own nationals by the

law of the country where such establishment is effected, subject to the provisions of the Chapter

relating to capital.

26.10.2012 Official Journal of the European Union C 326/67

Article 50

(ex Article 44 TEC)

1. In order to attain freedom of establishment as regards a particular activity, the European

Parliament and the Council, acting in accordance with the ordinary legislative procedure and after

consulting the Economic and Social Committee, shall act by means of directives.

2. The European Parliament, the Council and the Commission shall carry out the duties devolving

upon them under the preceding provisions, in particular:

(a) by according, as a general rule, priority treatment to activities where freedom of establishment

makes a particularly valuable contribution to the development of production and trade;

(b) by ensuring close cooperation between the competent authorities in the Member States in order

to ascertain the particular situation within the Union of the various activities concerned;

legislation or from agreements previously concluded between Member States, the maintenance

of which would form an obstacle to freedom of establishment;

(d) by ensuring that workers of one Member State employed in the territory of another Member

State may remain in that territory for the purpose of taking up activities therein as self-employed

persons, where they satisfy the conditions which they would be required to satisfy if they were

entering that State at the time when they intended to take up such activities;

(e) by enabling a national of one Member State to acquire and use land and buildings situated in the

territory of another Member State, in so far as this does not conflict with the principles laid

down in Article 39(2);

(f) by effecting the progressive abolition of restrictions on freedom of establishment in every branch

of activity under consideration, both as regards the conditions for setting up agencies, branches

or subsidiaries in the territory of a Member State and as regards the subsidiaries in the territory of

a Member State and as regards the conditions governing the entry of personnel belonging to the

main establishment into managerial or supervisory posts in such agencies, branches or

subsidiaries;

(g) by coordinating to the necessary extent the safeguards which, for the protection of the interests

of members and others, are required by Member States of companies or firms within the

meaning of the second paragraph of Article 54 with a view to making such safeguards equivalent

throughout the Union;

(h) by satisfying themselves that the conditions of establishment are not distorted by aids granted by

Member States.

Article 51

(ex Article 45 TEC)

The provisions of this Chapter shall not apply, so far as any given Member State is concerned, to

activities which in that State are connected, even occasionally, with the exercise of official authority.

C 326/68 Official Journal of the European Union 26.10.2012

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may rule that the provisions of this Chapter shall not apply to certain activities.

Article 52

(ex Article 46 TEC)

1. The provisions of this Chapter and measures taken in pursuance thereof shall not prejudice the

applicability of provisions laid down by law, regulation or administrative action providing for special

treatment for foreign nationals on grounds of public policy, public security or public health.

2. The European Parliament and the Council shall, acting in accordance with the ordinary legis

lative procedure, issue directives for the coordination of the abovementioned provisions.

Article 53

(ex Article 47 TEC)

1. In order to make it easier for persons to take up and pursue activities as self-employed persons,

the European Parliament and the Council shall, acting in accordance with the ordinary legislative

procedure, issue directives for the mutual recognition of diplomas, certificates and other evidence of

formal qualifications and for the coordination of the provisions laid down by law, regulation or

administrative action in Member States concerning the taking-up and pursuit of activities as self-

employed persons.

2. In the case of the medical and allied and pharmaceutical professions, the progressive abolition

of restrictions shall be dependent upon coordination of the conditions for their exercise in the

various Member States.

Article 54

(ex Article 48 TEC)

Companies or firms formed in accordance with the law of a Member State and having their

registered office, central administration or principal place of business within the Union shall, for

the purposes of this Chapter, be treated in the same way as natural persons who are nationals of

Member States.

‘Companies or firms’ means companies or firms constituted under civil or commercial law, including

cooperative societies, and other legal persons governed by public or private law, save for those which

are non-profit-making.

Article 55

(ex Article 294 TEC)

Member States shall accord nationals of the other Member States the same treatment as their own

nationals as regards participation in the capital of companies or firms within the meaning of

Article 54, without prejudice to the application of the other provisions of the Treaties.

26.10.2012 Official Journal of the European Union C 326/69

CHAPTER 3

SERVICES

Article 56

(ex Article 49 TEC)

Within the framework of the provisions set out below, restrictions on freedom to provide services

within the Union shall be prohibited in respect of nationals of Member States who are established in

a Member State other than that of the person for whom the services are intended.

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may extend the provisions of the Chapter to nationals of a third country who provide

services and who are established within the Union.

Article 57

(ex Article 50 TEC)

Services shall be considered to be ‘services’ within the meaning of the Treaties where they are

normally provided for remuneration, in so far as they are not governed by the provisions relating

to freedom of movement for goods, capital and persons.

‘Services’ shall in particular include:

(a) activities of an industrial character;

(b) activities of a commercial character;

(d) activities of the professions.

Without prejudice to the provisions of the Chapter relating to the right of establishment, the person

providing a service may, in order to do so, temporarily pursue his activity in the Member State where

the service is provided, under the same conditions as are imposed by that State on its own nationals.

Article 58

(ex Article 51 TEC)

1. Freedom to provide services in the field of transport shall be governed by the provisions of the

Title relating to transport.

2. The liberalisation of banking and insurance services connected with movements of capital shall

be effected in step with the liberalisation of movement of capital.

C 326/70 Official Journal of the European Union 26.10.2012

Article 59

(ex Article 52 TEC)

1. In order to achieve the liberalisation of a specific service, the European Parliament and the

Council, acting in accordance with the ordinary legislative procedure and after consulting the

Economic and Social Committee, shall issue directives.

2. As regards the directives referred to in paragraph 1, priority shall as a general rule be given to

those services which directly affect production costs or the liberalisation of which helps to promote

trade in goods.

Article 60

(ex Article 53 TEC)

The Member States shall endeavour to undertake the liberalisation of services beyond the extent

required by the directives issued pursuant to Article 59(1), if their general economic situation and the

situation of the economic sector concerned so permit.

To this end, the Commission shall make recommendations to the Member States concerned.

Article 61

(ex Article 54 TEC)

As long as restrictions on freedom to provide services have not been abolished, each Member State

shall apply such restrictions without distinction on grounds of nationality or residence to all persons

providing services within the meaning of the first paragraph of Article 56.

Article 62

(ex Article 55 TEC)

The provisions of Articles 51 to 54 shall apply to the matters covered by this Chapter.

CHAPTER 4

CAPITAL AND PAYMENTS

Article 63

(ex Article 56 TEC)

1. Within the framework of the provisions set out in this Chapter, all restrictions on the

movement of capital between Member States and between Member States and third countries

shall be prohibited.

2. Within the framework of the provisions set out in this Chapter, all restrictions on payments

between Member States and between Member States and third countries shall be prohibited.

26.10.2012 Official Journal of the European Union C 326/71

Article 64

(ex Article 57 TEC)

1. The provisions of Article 63 shall be without prejudice to the application to third countries of

any restrictions which exist on 31 December 1993 under national or Union law adopted in respect

of the movement of capital to or from third countries involving direct investment – including in real

estate – establishment, the provision of financial services or the admission of securities to capital

markets. In respect of restrictions existing under national law in Bulgaria, Estonia and Hungary, the

relevant date shall be 31 December 1999.

2. Whilst endeavouring to achieve the objective of free movement of capital between Member

States and third countries to the greatest extent possible and without prejudice to the other Chapters

of the Treaties, the European Parliament and the Council, acting in accordance with the ordinary

legislative procedure, shall adopt the measures on the movement of capital to or from third countries

involving direct investment – including investment in real estate – establishment, the provision of

financial services or the admission of securities to capital markets.

3. Notwithstanding paragraph 2, only the Council, acting in accordance with a special legislative

procedure, may unanimously, and after consulting the European Parliament, adopt measures which

constitute a step backwards in Union law as regards the liberalisation of the movement of capital to

or from third countries.

Article 65

(ex Article 58 TEC)

1. The provisions of Article 63 shall be without prejudice to the right of Member States:

(a) to apply the relevant provisions of their tax law which distinguish between taxpayers who are not

in the same situation with regard to their place of residence or with regard to the place where

their capital is invested;

(b) to take all requisite measures to prevent infringements of national law and regulations, in

particular in the field of taxation and the prudential supervision of financial institutions, or to

lay down procedures for the declaration of capital movements for purposes of administrative or

statistical information, or to take measures which are justified on grounds of public policy or

public security.

2. The provisions of this Chapter shall be without prejudice to the applicability of restrictions on

the right of establishment which are compatible with the Treaties.

3. The measures and procedures referred to in paragraphs 1 and 2 shall not constitute a means of

arbitrary discrimination or a disguised restriction on the free movement of capital and payments as

defined in Article 63.

C 326/72 Official Journal of the European Union 26.10.2012

4. In the absence of measures pursuant to Article 64(3), the Commission or, in the absence of a

Commission decision within three months from the request of the Member State concerned, the

Council, may adopt a decision stating that restrictive tax measures adopted by a Member State

concerning one or more third countries are to be considered compatible with the Treaties in so

far as they are justified by one of the objectives of the Union and compatible with the proper

functioning of the internal market. The Council shall act unanimously on application by a Member

State.

Article 66

(ex Article 59 TEC)

Where, in exceptional circumstances, movements of capital to or from third countries cause, or

threaten to cause, serious difficulties for the operation of economic and monetary union, the Council,

on a proposal from the Commission and after consulting the European Central Bank, may take

safeguard measures with regard to third countries for a period not exceeding six months if such

measures are strictly necessary.

TITLE V

AREA OF FREEDOM, SECURITY AND JUSTICE

CHAPTER 1

GENERAL PROVISIONS

Article 67

(ex Article 61 TEC and ex Article 29 TEU)

1. The Union shall constitute an area of freedom, security and justice with respect for fundamental

rights and the different legal systems and traditions of the Member States.

2. It shall ensure the absence of internal border controls for persons and shall frame a common

policy on asylum, immigration and external border control, based on solidarity between Member

States, which is fair towards third-country nationals. For the purpose of this Title, stateless persons

shall be treated as third-country nationals.

3. The Union shall endeavour to ensure a high level of security through measures to prevent and

combat crime, racism and xenophobia, and through measures for coordination and cooperation

between police and judicial authorities and other competent authorities, as well as through the

mutual recognition of judgments in criminal matters and, if necessary, through the approximation

of criminal laws.

4. The Union shall facilitate access to justice, in particular through the principle of mutual

recognition of judicial and extrajudicial decisions in civil matters.

26.10.2012 Official Journal of the European Union C 326/73

Article 68

The European Council shall define the strategic guidelines for legislative and operational planning

within the area of freedom, security and justice.

Article 69

National Parliaments ensure that the proposals and legislative initiatives submitted under Chapters 4

and 5 comply with the principle of subsidiarity, in accordance with the arrangements laid down by

the Protocol on the application of the principles of subsidiarity and proportionality.

Article 70

Without prejudice to Articles 258, 259 and 260, the Council may, on a proposal from the

Commission, adopt measures laying down the arrangements whereby Member States, in collab

oration with the Commission, conduct objective and impartial evaluation of the implementation

of the Union policies referred to in this Title by Member States' authorities, in particular in order to

facilitate full application of the principle of mutual recognition. The European Parliament and

national Parliaments shall be informed of the content and results of the evaluation.

Article 71

(ex Article 36 TEU)

A standing committee shall be set up within the Council in order to ensure that operational

cooperation on internal security is promoted and strengthened within the Union. Without

prejudice to Article 240, it shall facilitate coordination of the action of Member States' competent

authorities. Representatives of the Union bodies, offices and agencies concerned may be involved in

the proceedings of this committee. The European Parliament and national Parliaments shall be kept

informed of the proceedings.

Article 72

(ex Article 64(1) TEC and ex Article 33 TEU)

This Title shall not affect the exercise of the responsibilities incumbent upon Member States with

regard to the maintenance of law and order and the safeguarding of internal security.

Article 73

It shall be open to Member States to organise between themselves and under their responsibility such

forms of cooperation and coordination as they deem appropriate between the competent

departments of their administrations responsible for safeguarding national security.

C 326/74 Official Journal of the European Union 26.10.2012

Article 74

(ex Article 66 TEC)

The Council shall adopt measures to ensure administrative cooperation between the relevant

departments of the Member States in the areas covered by this Title, as well as between those

departments and the Commission. It shall act on a Commission proposal, subject to Article 76,

and after consulting the European Parliament.

Article 75

(ex Article 60 TEC)

Where necessary to achieve the objectives set out in Article 67, as regards preventing and combating

terrorism and related activities, the European Parliament and the Council, acting by means of

regulations in accordance with the ordinary legislative procedure, shall define a framework for

administrative measures with regard to capital movements and payments, such as the freezing of

funds, financial assets or economic gains belonging to, or owned or held by, natural or legal persons,

groups or non-State entities.

The Council, on a proposal from the Commission, shall adopt measures to implement the framework

referred to in the first paragraph.

The acts referred to in this Article shall include necessary provisions on legal safeguards.

Article 76

The acts referred to in Chapters 4 and 5, together with the measures referred to in Article 74 which

ensure administrative cooperation in the areas covered by these Chapters, shall be adopted:

(a) on a proposal from the Commission, or

(b) on the initiative of a quarter of the Member States.

CHAPTER 2

POLICIES ON BORDER CHECKS, ASYLUM AND IMMIGRATION

Article 77

(ex Article 62 TEC)

1. The Union shall develop a policy with a view to:

(a) ensuring the absence of any controls on persons, whatever their nationality, when crossing

internal borders;

26.10.2012 Official Journal of the European Union C 326/75

(b) carrying out checks on persons and efficient monitoring of the crossing of external borders;

2. For the purposes of paragraph 1, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, shall adopt measures concerning:

(a) the common policy on visas and other short-stay residence permits;

(b) the checks to which persons crossing external borders are subject;

the Union for a short period;

(d) any measure necessary for the gradual establishment of an integrated management system for

external borders;

(e) the absence of any controls on persons, whatever their nationality, when crossing internal

borders.

3. If action by the Union should prove necessary to facilitate the exercise of the right referred to

in Article 20(2)(a), and if the Treaties have not provided the necessary powers, the Council, acting in

accordance with a special legislative procedure, may adopt provisions concerning passports, identity

cards, residence permits or any other such document. The Council shall act unanimously after

consulting the European Parliament.

4. This Article shall not affect the competence of the Member States concerning the geographical

demarcation of their borders, in accordance with international law.

Article 78

(ex Articles 63, points 1 and 2, and 64(2) TEC)

1. The Union shall develop a common policy on asylum, subsidiary protection and temporary

protection with a view to offering appropriate status to any third-country national requiring inter

national protection and ensuring compliance with the principle of non-refoulement. This policy must

be in accordance with the Geneva Convention of 28 July 1951 and the Protocol of 31 January 1967

relating to the status of refugees, and other relevant treaties.

2. For the purposes of paragraph 1, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, shall adopt measures for a common European

asylum system comprising:

(a) a uniform status of asylum for nationals of third countries, valid throughout the Union;

(b) a uniform status of subsidiary protection for nationals of third countries who, without obtaining

European asylum, are in need of international protection;

C 326/76 Official Journal of the European Union 26.10.2012

inflow;

(d) common procedures for the granting and withdrawing of uniform asylum or subsidiary

protection status;

(e) criteria and mechanisms for determining which Member State is responsible for considering an

application for asylum or subsidiary protection;

(f) standards concerning the conditions for the reception of applicants for asylum or subsidiary

protection;

(g) partnership and cooperation with third countries for the purpose of managing inflows of people

applying for asylum or subsidiary or temporary protection.

3. In the event of one or more Member States being confronted by an emergency situation

characterised by a sudden inflow of nationals of third countries, the Council, on a proposal from

the Commission, may adopt provisional measures for the benefit of the Member State(s) concerned.

It shall act after consulting the European Parliament.

Article 79

(ex Article 63, points 3 and 4, TEC)

1. The Union shall develop a common immigration policy aimed at ensuring, at all stages, the

efficient management of migration flows, fair treatment of third-country nationals residing legally in

Member States, and the prevention of, and enhanced measures to combat, illegal immigration and

trafficking in human beings.

2. For the purposes of paragraph 1, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, shall adopt measures in the following areas:

(a) the conditions of entry and residence, and standards on the issue by Member States of long-term

visas and residence permits, including those for the purpose of family reunification;

(b) the definition of the rights of third-country nationals residing legally in a Member State, including

the conditions governing freedom of movement and of residence in other Member States;

residing without authorisation;

(d) combating trafficking in persons, in particular women and children.

3. The Union may conclude agreements with third countries for the readmission to their countries

of origin or provenance of third-country nationals who do not or who no longer fulfil the conditions

for entry, presence or residence in the territory of one of the Member States.

26.10.2012 Official Journal of the European Union C 326/77

4. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may establish measures to provide incentives and support for the action of Member States

with a view to promoting the integration of third-country nationals residing legally in their terri

tories, excluding any harmonisation of the laws and regulations of the Member States.

5. This Article shall not affect the right of Member States to determine volumes of admission of

third-country nationals coming from third countries to their territory in order to seek work, whether

employed or self-employed.

Article 80

The policies of the Union set out in this Chapter and their implementation shall be governed by the

principle of solidarity and fair sharing of responsibility, including its financial implications, between

the Member States. Whenever necessary, the Union acts adopted pursuant to this Chapter shall

contain appropriate measures to give effect to this principle.

CHAPTER 3

JUDICIAL COOPERATION IN CIVIL MATTERS

Article 81

(ex Article 65 TEC)

1. The Union shall develop judicial cooperation in civil matters having cross-border implications,

based on the principle of mutual recognition of judgments and of decisions in extrajudicial cases.

Such cooperation may include the adoption of measures for the approximation of the laws and

regulations of the Member States.

2. For the purposes of paragraph 1, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, shall adopt measures, particularly when

necessary for the proper functioning of the internal market, aimed at ensuring:

(a) the mutual recognition and enforcement between Member States of judgments and of decisions

in extrajudicial cases;

(b) the cross-border service of judicial and extrajudicial documents;

jurisdiction;

(d) cooperation in the taking of evidence;

(e) effective access to justice;

(f) the elimination of obstacles to the proper functioning of civil proceedings, if necessary by

promoting the compatibility of the rules on civil procedure applicable in the Member States;

C 326/78 Official Journal of the European Union 26.10.2012

(g) the development of alternative methods of dispute settlement;

(h) support for the training of the judiciary and judicial staff.

3. Notwithstanding paragraph 2, measures concerning family law with cross-border implications

shall be established by the Council, acting in accordance with a special legislative procedure. The

Council shall act unanimously after consulting the European Parliament.

The Council, on a proposal from the Commission, may adopt a decision determining those aspects

of family law with cross-border implications which may be the subject of acts adopted by the

ordinary legislative procedure. The Council shall act unanimously after consulting the European

Parliament.

The proposal referred to in the second subparagraph shall be notified to the national Parliaments. If a

national Parliament makes known its opposition within six months of the date of such notification,

the decision shall not be adopted. In the absence of opposition, the Council may adopt the decision.

CHAPTER 4

JUDICIAL COOPERATION IN CRIMINAL MATTERS

Article 82

(ex Article 31 TEU)

1. Judicial cooperation in criminal matters in the Union shall be based on the principle of mutual

recognition of judgments and judicial decisions and shall include the approximation of the laws and

regulations of the Member States in the areas referred to in paragraph 2 and in Article 83.

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, shall adopt measures to:

(a) lay down rules and procedures for ensuring recognition throughout the Union of all forms of

judgments and judicial decisions;

(b) prevent and settle conflicts of jurisdiction between Member States;

(d) facilitate cooperation between judicial or equivalent authorities of the Member States in relation

to proceedings in criminal matters and the enforcement of decisions.

26.10.2012 Official Journal of the European Union C 326/79

2. To the extent necessary to facilitate mutual recognition of judgments and judicial decisions and

police and judicial cooperation in criminal matters having a cross-border dimension, the European

Parliament and the Council may, by means of directives adopted in accordance with the ordinary

legislative procedure, establish minimum rules. Such rules shall take into account the differences

between the legal traditions and systems of the Member States.

They shall concern:

(a) mutual admissibility of evidence between Member States;

(b) the rights of individuals in criminal procedure;

(d) any other specific aspects of criminal procedure which the Council has identified in advance by a

decision; for the adoption of such a decision, the Council shall act unanimously after obtaining

the consent of the European Parliament.

Adoption of the minimum rules referred to in this paragraph shall not prevent Member States from

maintaining or introducing a higher level of protection for individuals.

3. Where a member of the Council considers that a draft directive as referred to in paragraph 2

would affect fundamental aspects of its criminal justice system, it may request that the draft directive

be referred to the European Council. In that case, the ordinary legislative procedure shall be

suspended. After discussion, and in case of a consensus, the European Council shall, within four

months of this suspension, refer the draft back to the Council, which shall terminate the suspension

of the ordinary legislative procedure.

Within the same timeframe, in case of disagreement, and if at least nine Member States wish to

establish enhanced cooperation on the basis of the draft directive concerned, they shall notify the

European Parliament, the Council and the Commission accordingly. In such a case, the authorisation

to proceed with enhanced cooperation referred to in Article 20(2) of the Treaty on European Union

and Article 329(1) of this Treaty shall be deemed to be granted and the provisions on enhanced

cooperation shall apply.

Article 83

(ex Article 31 TEU)

1. The European Parliament and the Council may, by means of directives adopted in accordance

with the ordinary legislative procedure, establish minimum rules concerning the definition of

criminal offences and sanctions in the areas of particularly serious crime with a cross-border

dimension resulting from the nature or impact of such offences or from a special need to combat

them on a common basis.

C 326/80 Official Journal of the European Union 26.10.2012

These areas of crime are the following: terrorism, trafficking in human beings and sexual exploitation

of women and children, illicit drug trafficking, illicit arms trafficking, money laundering, corruption,

counterfeiting of means of payment, computer crime and organised crime.

On the basis of developments in crime, the Council may adopt a decision identifying other areas of

crime that meet the criteria specified in this paragraph. It shall act unanimously after obtaining the

consent of the European Parliament.

2. If the approximation of criminal laws and regulations of the Member States proves essential to

ensure the effective implementation of a Union policy in an area which has been subject to harmon

isation measures, directives may establish minimum rules with regard to the definition of criminal

offences and sanctions in the area concerned. Such directives shall be adopted by the same ordinary

or special legislative procedure as was followed for the adoption of the harmonisation measures in

question, without prejudice to Article 76.

3. Where a member of the Council considers that a draft directive as referred to in paragraph 1 or

2 would affect fundamental aspects of its criminal justice system, it may request that the draft

directive be referred to the European Council. In that case, the ordinary legislative procedure shall

be suspended. After discussion, and in case of a consensus, the European Council shall, within four

months of this suspension, refer the draft back to the Council, which shall terminate the suspension

of the ordinary legislative procedure.

Within the same timeframe, in case of disagreement, and if at least nine Member States wish to

establish enhanced cooperation on the basis of the draft directive concerned, they shall notify the

European Parliament, the Council and the Commission accordingly. In such a case, the authorisation

to proceed with enhanced cooperation referred to in Article 20(2) of the Treaty on European Union

and Article 329(1) of this Treaty shall be deemed to be granted and the provisions on enhanced

cooperation shall apply.

Article 84

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may establish measures to promote and support the action of Member States in the

field of crime prevention, excluding any harmonisation of the laws and regulations of the Member

States.

Article 85

(ex Article 31 TEU)

1. Eurojust's mission shall be to support and strengthen coordination and cooperation between

national investigating and prosecuting authorities in relation to serious crime affecting two or more

Member States or requiring a prosecution on common bases, on the basis of operations conducted

and information supplied by the Member States' authorities and by Europol.

26.10.2012 Official Journal of the European Union C 326/81

In this context, the European Parliament and the Council, by means of regulations adopted in

accordance with the ordinary legislative procedure, shall determine Eurojust's structure, operation,

field of action and tasks. These tasks may include:

(a) the initiation of criminal investigations, as well as proposing the initiation of prosecutions

conducted by competent national authorities, particularly those relating to offences against the

financial interests of the Union;

(b) the coordination of investigations and prosecutions referred to in point (a);

by close cooperation with the European Judicial Network.

These regulations shall also determine arrangements for involving the European Parliament and

national Parliaments in the evaluation of Eurojust's activities.

2. In the prosecutions referred to in paragraph 1, and without prejudice to Article 86, formal acts

of judicial procedure shall be carried out by the competent national officials.

Article 86

1. In order to combat crimes affecting the financial interests of the Union, the Council, by means

of regulations adopted in accordance with a special legislative procedure, may establish a European

Public Prosecutor's Office from Eurojust. The Council shall act unanimously after obtaining the

consent of the European Parliament.

In the absence of unanimity in the Council, a group of at least nine Member States may request that

the draft regulation be referred to the European Council. In that case, the procedure in the Council

shall be suspended. After discussion, and in case of a consensus, the European Council shall, within

four months of this suspension, refer the draft back to the Council for adoption.

Within the same timeframe, in case of disagreement, and if at least nine Member States wish to

establish enhanced cooperation on the basis of the draft regulation concerned, they shall notify the

European Parliament, the Council and the Commission accordingly. In such a case, the authorisation

to proceed with enhanced cooperation referred to in Article 20(2) of the Treaty on European Union

and Article 329(1) of this Treaty shall be deemed to be granted and the provisions on enhanced

cooperation shall apply.

2. The European Public Prosecutor's Office shall be responsible for investigating, prosecuting and

bringing to judgment, where appropriate in liaison with Europol, the perpetrators of, and accom

plices in, offences against the Union's financial interests, as determined by the regulation provided for

in paragraph 1. It shall exercise the functions of prosecutor in the competent courts of the Member

States in relation to such offences.

C 326/82 Official Journal of the European Union 26.10.2012

3. The regulations referred to in paragraph 1 shall determine the general rules applicable to the

European Public Prosecutor's Office, the conditions governing the performance of its functions, the

rules of procedure applicable to its activities, as well as those governing the admissibility of evidence,

and the rules applicable to the judicial review of procedural measures taken by it in the performance

of its functions.

4. The European Council may, at the same time or subsequently, adopt a decision amending

paragraph 1 in order to extend the powers of the European Public Prosecutor's Office to include

serious crime having a cross-border dimension and amending accordingly paragraph 2 as regards the

perpetrators of, and accomplices in, serious crimes affecting more than one Member State. The

European Council shall act unanimously after obtaining the consent of the European Parliament

and after consulting the Commission.

CHAPTER 5

POLICE COOPERATION

Article 87

(ex Article 30 TEU)

1. The Union shall establish police cooperation involving all the Member States' competent auth

orities, including police, customs and other specialised law enforcement services in relation to the

prevention, detection and investigation of criminal offences.

2. For the purposes of paragraph 1, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, may establish measures concerning:

(a) the collection, storage, processing, analysis and exchange of relevant information;

(b) support for the training of staff, and cooperation on the exchange of staff, on equipment and on

research into crime-detection;

3. The Council, acting in accordance with a special legislative procedure, may establish measures

concerning operational cooperation between the authorities referred to in this Article. The Council

shall act unanimously after consulting the European Parliament.

In case of the absence of unanimity in the Council, a group of at least nine Member States may

request that the draft measures be referred to the European Council. In that case, the procedure in the

Council shall be suspended. After discussion, and in case of a consensus, the European Council shall,

within four months of this suspension, refer the draft back to the Council for adoption.

26.10.2012 Official Journal of the European Union C 326/83

Within the same timeframe, in case of disagreement, and if at least nine Member States wish to

establish enhanced cooperation on the basis of the draft measures concerned, they shall notify the

European Parliament, the Council and the Commission accordingly. In such a case, the authorisation

to proceed with enhanced cooperation referred to in Article 20(2) of the Treaty on European Union

and Article 329(1) of this Treaty shall be deemed to be granted and the provisions on enhanced

cooperation shall apply.

The specific procedure provided for in the second and third subparagraphs shall not apply to acts

which constitute a development of the Schengen acquis.

Article 88

(ex Article 30 TEU)

1. Europol's mission shall be to support and strengthen action by the Member States' police

authorities and other law enforcement services and their mutual cooperation in preventing and

combating serious crime affecting two or more Member States, terrorism and forms of crime

which affect a common interest covered by a Union policy.

2. The European Parliament and the Council, by means of regulations adopted in accordance with

the ordinary legislative procedure, shall determine Europol's structure, operation, field of action and

tasks. These tasks may include:

(a) the collection, storage, processing, analysis and exchange of information, in particular that

forwarded by the authorities of the Member States or third countries or bodies;

(b) the coordination, organisation and implementation of investigative and operational action carried

out jointly with the Member States' competent authorities or in the context of joint investigative

teams, where appropriate in liaison with Eurojust.

These regulations shall also lay down the procedures for scrutiny of Europol's activities by the

European Parliament, together with national Parliaments.

3. Any operational action by Europol must be carried out in liaison and in agreement with the

authorities of the Member State or States whose territory is concerned. The application of coercive

measures shall be the exclusive responsibility of the competent national authorities.

Article 89

(ex Article 32 TEU)

The Council, acting in accordance with a special legislative procedure, shall lay down the conditions

and limitations under which the competent authorities of the Member States referred to in Articles

82 and 87 may operate in the territory of another Member State in liaison and in agreement with the

authorities of that State. The Council shall act unanimously after consulting the European Parliament.

C 326/84 Official Journal of the European Union 26.10.2012

TITLE VI

TRANSPORT

Article 90

(ex Article 70 TEC)

The objectives of the Treaties shall, in matters governed by this Title, be pursued within the

framework of a common transport policy.

Article 91

(ex Article 71 TEC)

1. For the purpose of implementing Article 90, and taking into account the distinctive features of

transport, the European Parliament and the Council shall, acting in accordance with the ordinary

legislative procedure and after consulting the Economic and Social Committee and the Committee of

the Regions, lay down:

(a) common rules applicable to international transport to or from the territory of a Member State or

passing across the territory of one or more Member States;

(b) the conditions under which non-resident carriers may operate transport services within a Member

State;

(d) any other appropriate provisions.

2. When the measures referred to in paragraph 1 are adopted, account shall be taken of cases

where their application might seriously affect the standard of living and level of employment in

certain regions, and the operation of transport facilities.

Article 92

(ex Article 72 TEC)

Until the provisions referred to in Article 91(1) have been laid down, no Member State may, unless

the Council has unanimously adopted a measure granting a derogation, make the various provisions

governing the subject on 1 January 1958 or, for acceding States, the date of their accession less

favourable in their direct or indirect effect on carriers of other Member States as compared with

carriers who are nationals of that State.

26.10.2012 Official Journal of the European Union C 326/85

Article 93

(ex Article 73 TEC)

Aids shall be compatible with the Treaties if they meet the needs of coordination of transport or if

they represent reimbursement for the discharge of certain obligations inherent in the concept of a

public service.

Article 94

(ex Article 74 TEC)

Any measures taken within the framework of the Treaties in respect of transport rates and conditions

shall take account of the economic circumstances of carriers.

Article 95

(ex Article 75 TEC)

1. In the case of transport within the Union, discrimination which takes the form of carriers

charging different rates and imposing different conditions for the carriage of the same goods over the

same transport links on grounds of the country of origin or of destination of the goods in question

shall be prohibited.

2. Paragraph 1 shall not prevent the European Parliament and the Council from adopting other

measures pursuant to Article 91(1).

3. The Council shall, on a proposal from the Commission and after consulting the European

Parliament and the Economic and Social Committee, lay down rules for implementing the provisions

of paragraph 1.

The Council may in particular lay down the provisions needed to enable the institutions of the Union

to secure compliance with the rule laid down in paragraph 1 and to ensure that users benefit from it

to the full.

4. The Commission shall, acting on its own initiative or on application by a Member State,

investigate any cases of discrimination falling within paragraph 1 and, after consulting any

Member State concerned, shall take the necessary decisions within the framework of the rules laid

down in accordance with the provisions of paragraph 3.

Article 96

(ex Article 76 TEC)

1. The imposition by a Member State, in respect of transport operations carried out within the

Union, of rates and conditions involving any element of support or protection in the interest of one

or more particular undertakings or industries shall be prohibited, unless authorised by the

Commission.

C 326/86 Official Journal of the European Union 26.10.2012

2. The Commission shall, acting on its own initiative or on application by a Member State,

examine the rates and conditions referred to in paragraph 1, taking account in particular of the

requirements of an appropriate regional economic policy, the needs of underdeveloped areas and the

problems of areas seriously affected by political circumstances on the one hand, and of the effects of

such rates and conditions on competition between the different modes of transport on the other.

After consulting each Member State concerned, the Commission shall take the necessary decisions.

3. The prohibition provided for in paragraph 1 shall not apply to tariffs fixed to meet

competition.

Article 97

(ex Article 77 TEC)

Charges or dues in respect of the crossing of frontiers which are charged by a carrier in addition to

the transport rates shall not exceed a reasonable level after taking the costs actually incurred thereby

into account.

Member States shall endeavour to reduce these costs progressively.

The Commission may make recommendations to Member States for the application of this Article.

Article 98

(ex Article 78 TEC)

The provisions of this Title shall not form an obstacle to the application of measures taken in the

Federal Republic of Germany to the extent that such measures are required in order to compensate

for the economic disadvantages caused by the division of Germany to the economy of certain areas

of the Federal Republic affected by that division. Five years after the entry into force of the Treaty of

Lisbon, the Council, acting on a proposal from the Commission, may adopt a decision repealing this

Article.

Article 99

(ex Article 79 TEC)

An Advisory Committee consisting of experts designated by the governments of Member States shall

be attached to the Commission. The Commission, whenever it considers it desirable, shall consult the

Committee on transport matters.

Article 100

(ex Article 80 TEC)

1. The provisions of this Title shall apply to transport by rail, road and inland waterway.

26.10.2012 Official Journal of the European Union C 326/87

2. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may lay down appropriate provisions for sea and air transport. They shall act after

consulting the Economic and Social Committee and the Committee of the Regions.

TITLE VII

COMMON RULES ON COMPETITION, TAXATION AND APPROXIMATION OF LAWS

CHAPTER 1

RULES ON COMPETITION

SECTION 1

RULES APPLYING TO UNDERTAKINGS

Article 101

(ex Article 81 TEC)

1. The following shall be prohibited as incompatible with the internal market: all agreements

between undertakings, decisions by associations of undertakings and concerted practices which may

affect trade between Member States and which have as their object or effect the prevention,

restriction or distortion of competition within the internal market, and in particular those which:

(a) directly or indirectly fix purchase or selling prices or any other trading conditions;

(b) limit or control production, markets, technical development, or investment;

(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing

them at a competitive disadvantage;

(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary

obligations which, by their nature or according to commercial usage, have no connection with

the subject of such contracts.

2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void.

3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of:

— any agreement or category of agreements between undertakings,

— any decision or category of decisions by associations of undertakings,

C 326/88 Official Journal of the European Union 26.10.2012

— any concerted practice or category of concerted practices,

which contributes to improving the production or distribution of goods or to promoting technical or

economic progress, while allowing consumers a fair share of the resulting benefit, and which does

not:

(a) impose on the undertakings concerned restrictions which are not indispensable to the attainment

of these objectives;

(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part

of the products in question.

Article 102

(ex Article 82 TEC)

Any abuse by one or more undertakings of a dominant position within the internal market or in a

substantial part of it shall be prohibited as incompatible with the internal market in so far as it may

affect trade between Member States.

Such abuse may, in particular, consist in:

(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

(b) limiting production, markets or technical development to the prejudice of consumers;

placing them at a competitive disadvantage;

(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary

obligations which, by their nature or according to commercial usage, have no connection with

the subject of such contracts.

Article 103

(ex Article 83 TEC)

1. The appropriate regulations or directives to give effect to the principles set out in Articles 101

and 102 shall be laid down by the Council, on a proposal from the Commission and after consulting

the European Parliament.

2. The regulations or directives referred to in paragraph 1 shall be designed in particular:

(a) to ensure compliance with the prohibitions laid down in Article 101(1) and in Article 102 by

making provision for fines and periodic penalty payments;

26.10.2012 Official Journal of the European Union C 326/89

(b) to lay down detailed rules for the application of Article 101(3), taking into account the need to

ensure effective supervision on the one hand, and to simplify administration to the greatest

possible extent on the other;

Articles 101 and 102;

(d) to define the respective functions of the Commission and of the Court of Justice of the European

Union in applying the provisions laid down in this paragraph;

(e) to determine the relationship between national laws and the provisions contained in this Section

or adopted pursuant to this Article.

Article 104

(ex Article 84 TEC)

Until the entry into force of the provisions adopted in pursuance of Article 103, the authorities in

Member States shall rule on the admissibility of agreements, decisions and concerted practices and on

abuse of a dominant position in the internal market in accordance with the law of their country and

with the provisions of Article 101, in particular paragraph 3, and of Article 102.

Article 105

(ex Article 85 TEC)

1. Without prejudice to Article 104, the Commission shall ensure the application of the principles

laid down in Articles 101 and 102. On application by a Member State or on its own initiative, and

in cooperation with the competent authorities in the Member States, which shall give it their

assistance, the Commission shall investigate cases of suspected infringement of these principles. If

it finds that there has been an infringement, it shall propose appropriate measures to bring it to an

end.

2. If the infringement is not brought to an end, the Commission shall record such infringement of

the principles in a reasoned decision. The Commission may publish its decision and authorise

Member States to take the measures, the conditions and details of which it shall determine,

needed to remedy the situation.

3. The Commission may adopt regulations relating to the categories of agreement in respect of

which the Council has adopted a regulation or a directive pursuant to Article 103(2)(b).

Article 106

(ex Article 86 TEC)

1. In the case of public undertakings and undertakings to which Member States grant special or

exclusive rights, Member States shall neither enact nor maintain in force any measure contrary to the

rules contained in the Treaties, in particular to those rules provided for in Article 18 and Articles

101 to 109.

C 326/90 Official Journal of the European Union 26.10.2012

2. Undertakings entrusted with the operation of services of general economic interest or having

the character of a revenue-producing monopoly shall be subject to the rules contained in the Treaties,

in particular to the rules on competition, in so far as the application of such rules does not obstruct

the performance, in law or in fact, of the particular tasks assigned to them. The development of trade

must not be affected to such an extent as would be contrary to the interests of the Union.

3. The Commission shall ensure the application of the provisions of this Article and shall, where

necessary, address appropriate directives or decisions to Member States.

SECTION 2

AIDS GRANTED BY STATES

Article 107

(ex Article 87 TEC)

1. Save as otherwise provided in the Treaties, any aid granted by a Member State or through State

resources in any form whatsoever which distorts or threatens to distort competition by favouring

certain undertakings or the production of certain goods shall, in so far as it affects trade between

Member States, be incompatible with the internal market.

2. The following shall be compatible with the internal market:

(a) aid having a social character, granted to individual consumers, provided that such aid is granted

without discrimination related to the origin of the products concerned;

(b) aid to make good the damage caused by natural disasters or exceptional occurrences;

division of Germany, in so far as such aid is required in order to compensate for the economic

disadvantages caused by that division. Five years after the entry into force of the Treaty of Lisbon,

the Council, acting on a proposal from the Commission, may adopt a decision repealing this

point.

3. The following may be considered to be compatible with the internal market:

(a) aid to promote the economic development of areas where the standard of living is abnormally

low or where there is serious underemployment, and of the regions referred to in Article 349, in

view of their structural, economic and social situation;

(b) aid to promote the execution of an important project of common European interest or to

remedy a serious disturbance in the economy of a Member State;

26.10.2012 Official Journal of the European Union C 326/91

where such aid does not adversely affect trading conditions to an extent contrary to the common

interest;

(d) aid to promote culture and heritage conservation where such aid does not affect trading

conditions and competition in the Union to an extent that is contrary to the common interest;

(e) such other categories of aid as may be specified by decision of the Council on a proposal from

the Commission.

Article 108

(ex Article 88 TEC)

1. The Commission shall, in cooperation with Member States, keep under constant review all

systems of aid existing in those States. It shall propose to the latter any appropriate measures

required by the progressive development or by the functioning of the internal market.

2. If, after giving notice to the parties concerned to submit their comments, the Commission finds

that aid granted by a State or through State resources is not compatible with the internal market

having regard to Article 107, or that such aid is being misused, it shall decide that the State

concerned shall abolish or alter such aid within a period of time to be determined by the

Commission.

If the State concerned does not comply with this decision within the prescribed time, the

Commission or any other interested State may, in derogation from the provisions of Articles 258

and 259, refer the matter to the Court of Justice of the European Union direct.

On application by a Member State, the Council may, acting unanimously, decide that aid which that

State is granting or intends to grant shall be considered to be compatible with the internal market, in

derogation from the provisions of Article 107 or from the regulations provided for in Article 109, if

such a decision is justified by exceptional circumstances. If, as regards the aid in question, the

Commission has already initiated the procedure provided for in the first subparagraph of this

paragraph, the fact that the State concerned has made its application to the Council shall have

the effect of suspending that procedure until the Council has made its attitude known.

If, however, the Council has not made its attitude known within three months of the said application

being made, the Commission shall give its decision on the case.

3. The Commission shall be informed, in sufficient time to enable it to submit its comments, of

any plans to grant or alter aid. If it considers that any such plan is not compatible with the internal

market having regard to Article 107, it shall without delay initiate the procedure provided for in

paragraph 2. The Member State concerned shall not put its proposed measures into effect until this

procedure has resulted in a final decision.

C 326/92 Official Journal of the European Union 26.10.2012

4. The Commission may adopt regulations relating to the categories of State aid that the Council

has, pursuant to Article 109, determined may be exempted from the procedure provided for by

paragraph 3 of this Article.

Article 109

(ex Article 89 TEC)

The Council, on a proposal from the Commission and after consulting the European Parliament, may

make any appropriate regulations for the application of Articles 107 and 108 and may in particular

determine the conditions in which Article 108(3) shall apply and the categories of aid exempted

from this procedure.

CHAPTER 2

TAX PROVISIONS

Article 110

(ex Article 90 TEC)

No Member State shall impose, directly or indirectly, on the products of other Member States any

internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic

products.

Furthermore, no Member State shall impose on the products of other Member States any internal

taxation of such a nature as to afford indirect protection to other products.

Article 111

(ex Article 91 TEC)

Where products are exported to the territory of any Member State, any repayment of internal

taxation shall not exceed the internal taxation imposed on them whether directly or indirectly.

Article 112

(ex Article 92 TEC)

In the case of charges other than turnover taxes, excise duties and other forms of indirect taxation,

remissions and repayments in respect of exports to other Member States may not be granted and

countervailing charges in respect of imports from Member States may not be imposed unless the

measures contemplated have been previously approved for a limited period by the Council on a

proposal from the Commission.

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Article 113

(ex Article 93 TEC)

The Council shall, acting unanimously in accordance with a special legislative procedure and after

consulting the European Parliament and the Economic and Social Committee, adopt provisions for

the harmonisation of legislation concerning turnover taxes, excise duties and other forms of indirect

taxation to the extent that such harmonisation is necessary to ensure the establishment and the

functioning of the internal market and to avoid distortion of competition.

CHAPTER 3

APPROXIMATION OF LAWS

Article 114

(ex Article 95 TEC)

1. Save where otherwise provided in the Treaties, the following provisions shall apply for the

achievement of the objectives set out in Article 26. The European Parliament and the Council shall,

acting in accordance with the ordinary legislative procedure and after consulting the Economic and

Social Committee, adopt the measures for the approximation of the provisions laid down by law,

regulation or administrative action in Member States which have as their object the establishment

and functioning of the internal market.

2. Paragraph 1 shall not apply to fiscal provisions, to those relating to the free movement of

persons nor to those relating to the rights and interests of employed persons.

3. The Commission, in its proposals envisaged in paragraph 1 concerning health, safety, environ

mental protection and consumer protection, will take as a base a high level of protection, taking

account in particular of any new development based on scientific facts. Within their respective

powers, the European Parliament and the Council will also seek to achieve this objective.

4. If, after the adoption of a harmonisation measure by the European Parliament and the Council,

by the Council or by the Commission, a Member State deems it necessary to maintain national

provisions on grounds of major needs referred to in Article 36, or relating to the protection of the

environment or the working environment, it shall notify the Commission of these provisions as well

as the grounds for maintaining them.

5. Moreover, without prejudice to paragraph 4, if, after the adoption of a harmonisation measure

by the European Parliament and the Council, by the Council or by the Commission, a Member State

deems it necessary to introduce national provisions based on new scientific evidence relating to the

protection of the environment or the working environment on grounds of a problem specific to that

Member State arising after the adoption of the harmonisation measure, it shall notify the

Commission of the envisaged provisions as well as the grounds for introducing them.

C 326/94 Official Journal of the European Union 26.10.2012

6. The Commission shall, within six months of the notifications as referred to in paragraphs 4

and 5, approve or reject the national provisions involved after having verified whether or not they

are a means of arbitrary discrimination or a disguised restriction on trade between Member States

and whether or not they shall constitute an obstacle to the functioning of the internal market.

In the absence of a decision by the Commission within this period the national provisions referred to

in paragraphs 4 and 5 shall be deemed to have been approved.

When justified by the complexity of the matter and in the absence of danger for human health, the

Commission may notify the Member State concerned that the period referred to in this paragraph

may be extended for a further period of up to six months.

7. When, pursuant to paragraph 6, a Member State is authorised to maintain or introduce

national provisions derogating from a harmonisation measure, the Commission shall immediately

examine whether to propose an adaptation to that measure.

8. When a Member State raises a specific problem on public health in a field which has been the

subject of prior harmonisation measures, it shall bring it to the attention of the Commission which

shall immediately examine whether to propose appropriate measures to the Council.

9. By way of derogation from the procedure laid down in Articles 258 and 259, the Commission

and any Member State may bring the matter directly before the Court of Justice of the European

Union if it considers that another Member State is making improper use of the powers provided for

in this Article.

10. The harmonisation measures referred to above shall, in appropriate cases, include a safeguard

clause authorising the Member States to take, for one or more of the non-economic reasons referred

to in Article 36, provisional measures subject to a Union control procedure.

Article 115

(ex Article 94 TEC)

Without prejudice to Article 114, the Council shall, acting unanimously in accordance with a special

legislative procedure and after consulting the European Parliament and the Economic and Social

Committee, issue directives for the approximation of such laws, regulations or administrative

provisions of the Member States as directly affect the establishment or functioning of the internal

market.

Article 116

(ex Article 96 TEC)

Where the Commission finds that a difference between the provisions laid down by law, regulation

or administrative action in Member States is distorting the conditions of competition in the internal

market and that the resultant distortion needs to be eliminated, it shall consult the Member States

concerned.

26.10.2012 Official Journal of the European Union C 326/95

If such consultation does not result in an agreement eliminating the distortion in question, the

European, Parliament and the Council, acting in accordance with the ordinary legislative procedure,

shall issue the necessary directives. Any other appropriate measures provided for in the Treaties may

be adopted.

Article 117

(ex Article 97 TEC)

1. Where there is a reason to fear that the adoption or amendment of a provision laid down by

law, regulation or administrative action may cause distortion within the meaning of Article 116, a

Member State desiring to proceed therewith shall consult the Commission. After consulting the

Member States, the Commission shall recommend to the States concerned such measures as may

be appropriate to avoid the distortion in question.

2. If a State desiring to introduce or amend its own provisions does not comply with the

recommendation addressed to it by the Commission, other Member States shall not be required,

pursuant to Article 116, to amend their own provisions in order to eliminate such distortion. If the

Member State which has ignored the recommendation of the Commission causes distortion detri

mental only to itself, the provisions of Article 116 shall not apply.

Article 118

In the context of the establishment and functioning of the internal market, the European Parliament

and the Council, acting in accordance with the ordinary legislative procedure, shall establish measures

for the creation of European intellectual property rights to provide uniform protection of intellectual

property rights throughout the Union and for the setting up of centralised Union-wide authorisation,

coordination and supervision arrangements.

The Council, acting in accordance with a special legislative procedure, shall by means of regulations

establish language arrangements for the European intellectual property rights. The Council shall act

unanimously after consulting the European Parliament.

TITLE VIII

ECONOMIC AND MONETARY POLICY

Article 119

(ex Article 4 TEC)

1. For the purposes set out in Article 3 of the Treaty on European Union, the activities of the

Member States and the Union shall include, as provided in the Treaties, the adoption of an economic

policy which is based on the close coordination of Member States' economic policies, on the internal

market and on the definition of common objectives, and conducted in accordance with the principle

of an open market economy with free competition.

C 326/96 Official Journal of the European Union 26.10.2012

2. Concurrently with the foregoing, and as provided in the Treaties and in accordance with the

procedures set out therein, these activities shall include a single currency, the euro, and the definition

and conduct of a single monetary policy and exchange-rate policy the primary objective of both of

which shall be to maintain price stability and, without prejudice to this objective, to support the

general economic policies in the Union, in accordance with the principle of an open market

economy with free competition.

3. These activities of the Member States and the Union shall entail compliance with the following

guiding principles: stable prices, sound public finances and monetary conditions and a sustainable

balance of payments.

CHAPTER 1

ECONOMIC POLICY

Article 120

(ex Article 98 TEC)

Member States shall conduct their economic policies with a view to contributing to the achievement

of the objectives of the Union, as defined in Article 3 of the Treaty on European Union, and in the

context of the broad guidelines referred to in Article 121(2). The Member States and the Union 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 119.

Article 121

(ex Article 99 TEC)

1. Member States shall regard their economic policies as a matter of common concern and shall

coordinate them within the Council, in accordance with the provisions of Article 120.

2. The Council shall, on a recommendation from the Commission, formulate a draft for the broad

guidelines of the economic policies of the Member States and of the Union, and shall report its

findings to the European Council.

The European Council shall, acting on the basis of the report from the Council, discuss a conclusion

on the broad guidelines of the economic policies of the Member States and of the Union.

On the basis of this conclusion, the Council shall adopt a recommendation setting out these broad

guidelines. The Council shall inform the European Parliament of its recommendation.

3. In order to ensure closer coordination of economic policies and sustained convergence of the

economic performances of the Member States, the Council shall, on the basis of reports submitted by

the Commission, monitor economic developments in each of the Member States and in the Union as

well as the consistency of economic policies with the broad guidelines referred to in paragraph 2,

and regularly carry out an overall assessment.

26.10.2012 Official Journal of the European Union C 326/97

For the purpose of this multilateral surveillance, Member States shall forward information to the

Commission about important measures taken by them in the field of their economic policy and such

other information as they deem necessary.

4. Where it is established, under the procedure referred to in paragraph 3, that the economic

policies of a Member State are not consistent with the broad guidelines referred to in paragraph 2 or

that they risk jeopardising the proper functioning of economic and monetary union, the Commission

may address a warning to the Member State concerned. The Council, on a recommendation from the

Commission, may address the necessary recommendations to the Member State concerned. The

Council may, on a proposal from the Commission, decide to make its recommendations public.

Within the scope of this paragraph, the Council shall act without taking into account the vote of the

member of the Council representing the Member State concerned.

A qualified majority of the other members of the Council shall be defined in accordance with

Article 238(3)(a).

5. The President of the Council and the Commission shall report to the European Parliament on

the results of multilateral surveillance. The President of the Council may be invited to appear before

the competent committee of the European Parliament if the Council has made its recommendations

public.

6. The European Parliament and the Council, acting by means of regulations in accordance with

the ordinary legislative procedure, may adopt detailed rules for the multilateral surveillance procedure

referred to in paragraphs 3 and 4.

Article 122

(ex Article 100 TEC)

1. Without prejudice to any other procedures provided for in the Treaties, the Council, on a

proposal from the Commission, may decide, in a spirit of solidarity between Member States, upon

the measures appropriate to the economic situation, in particular if severe difficulties arise in the

supply of certain products, notably in the area of energy.

2. Where a Member State is in difficulties or is seriously threatened with severe difficulties caused

by natural disasters or exceptional occurrences beyond its control, the Council, on a proposal from

the Commission, may grant, under certain conditions, Union financial assistance to the Member State

concerned. The President of the Council shall inform the European Parliament of the decision taken.

C 326/98 Official Journal of the European Union 26.10.2012

Article 123

(ex Article 101 TEC)

1. Overdraft facilities or any other type of credit facility with the European Central Bank or with

the central banks of the Member States (hereinafter referred to as ‘national central banks’) in favour

of Union institutions, bodies, offices or agencies, 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 European Central Bank or national central

banks of debt instruments.

2. Paragraph 1 shall not apply to publicly owned credit institutions which, in the context of the

supply of reserves by central banks, shall be given the same treatment by national central banks and

the European Central Bank as private credit institutions.

Article 124

(ex Article 102 TEC)

Any measure, not based on prudential considerations, establishing privileged access by Union insti

tutions, bodies, offices or agencies, central governments, regional, local or other public authorities,

other bodies governed by public law, or public undertakings of Member States to financial institu

tions, shall be prohibited.

Article 125

(ex Article 103 TEC)

1. The Union shall not be liable for or assume the commitments of central governments, regional,

local or other public authorities, other bodies governed by public law, or public undertakings of any

Member State, without prejudice to mutual financial guarantees for the joint execution of a specific

project. A Member State shall not be liable for or assume the commitments of central governments,

regional, local or other public authorities, other bodies governed by public law, or public under

takings of another Member State, without prejudice to mutual financial guarantees for the joint

execution of a specific project.

2. The Council, on a proposal from the Commission and after consulting the European

Parliament, may, as required, specify definitions for the application of the prohibitions referred to

in Articles 123 and 124 and in this Article.

Article 126

(ex Article 104 TEC)

1. Member States shall avoid excessive government deficits.

26.10.2012 Official Journal of the European Union C 326/99

2. The Commission shall monitor the development of the budgetary situation and of the stock of

government debt in the Member States with a view to identifying gross errors. In particular it shall

examine compliance with budgetary discipline on the basis of the following two criteria:

(a) whether the ratio of the planned or actual government deficit to gross domestic product exceeds

a reference value, unless:

— either the ratio has declined substantially and continuously and reached a level that comes

close to the reference value,

— or, alternatively, the excess over the reference value is only exceptional and temporary and

the ratio remains close to the reference value;

(b) whether the ratio of government debt to gross domestic product exceeds a reference value, unless

the ratio is sufficiently diminishing and approaching the reference value at a satisfactory pace.

The reference values are specified in the Protocol on the excessive deficit procedure annexed to the

Treaties.

3. If a Member State does not fulfil the requirements under one or both of these criteria, the

Commission shall prepare a report. The report of the Commission shall also take into account

whether the government deficit exceeds government investment expenditure and take into account

all other relevant factors, including the medium-term economic and budgetary position of the

Member State.

The Commission may also prepare a report if, notwithstanding the fulfilment of the requirements

under the criteria, it is of the opinion that there is a risk of an excessive deficit in a Member State.

4. The Economic and Financial Committee shall formulate an opinion on the report of the

Commission.

5. If the Commission considers that an excessive deficit in a Member State exists or may occur, it

shall address an opinion to the Member State concerned and shall inform the Council accordingly.

6. The Council shall, on a proposal from the Commission, and having considered any obser

vations which the Member State concerned may wish to make, decide after an overall assessment

whether an excessive deficit exists.

7. Where the Council decides, in accordance with paragraph 6, that an excessive deficit exists, it

shall adopt, without undue delay, on a recommendation from the Commission, recommendations

addressed to the Member State concerned with a view to bringing that situation to an end within a

given period. Subject to the provisions of paragraph 8, these recommendations shall not be made

public.

8. Where it establishes that there has been no effective action in response to its recommendations

within the period laid down, the Council may make its recommendations public.

C 326/100 Official Journal of the European Union 26.10.2012

9. If a Member State persists in failing to put into practice the recommendations of the Council,

the Council may decide to give notice to the Member State to take, within a specified time limit,

measures for the deficit reduction which is judged necessary by the Council in order to remedy the

situation.

In such a case, the Council may request the Member State concerned to submit reports in accordance

with a specific timetable in order to examine the adjustment efforts of that Member State.

10. The rights to bring actions provided for in Articles 258 and 259 may not be exercised within

the framework of paragraphs 1 to 9 of this Article.

11. As long as a Member State fails to comply with a decision taken in accordance with

paragraph 9, the Council may decide to apply or, as the case may be, intensify one or more of

the following measures:

— to require the Member State concerned to publish additional information, to be specified by the

Council, before issuing bonds and securities,

— to invite the European Investment Bank to reconsider its lending policy towards the Member

State concerned,

— to require the Member State concerned to make a non-interest-bearing deposit of an appropriate

size with the Union until the excessive deficit has, in the view of the Council, been corrected,

— to impose fines of an appropriate size.

The President of the Council shall inform the European Parliament of the decisions taken.

12. The Council shall abrogate some or all of its decisions or recommendations referred to in

paragraphs 6 to 9 and 11 to the extent that the excessive deficit in the Member State concerned has,

in the view of the Council, been corrected. If the Council has previously made public recommen

dations, it shall, as soon as the decision under paragraph 8 has been abrogated, make a public

statement that an excessive deficit in the Member State concerned no longer exists.

13. When taking the decisions or recommendations referred to in paragraphs 8, 9, 11 and 12, the

Council shall act on a recommendation from the Commission.

When the Council adopts the measures referred to in paragraphs 6 to 9, 11 and 12, it shall act

without taking into account the vote of the member of the Council representing the Member State

concerned.

A qualified majority of the other members of the Council shall be defined in accordance with

Article 238(3)(a).

14. Further provisions relating to the implementation of the procedure described in this Article

are set out in the Protocol on the excessive deficit procedure annexed to the Treaties.

26.10.2012 Official Journal of the European Union C 326/101

The Council shall, acting unanimously in accordance with a special legislative procedure and after

consulting the European Parliament and the European Central Bank, adopt the appropriate provisions

which shall then replace the said Protocol.

Subject to the other provisions of this paragraph, the Council shall, on a proposal from the

Commission and after consulting the European Parliament, lay down detailed rules and definitions

for the application of the provisions of the said Protocol.

CHAPTER 2

MONETARY POLICY

Article 127

(ex Article 105 TEC)

1. The primary objective of the European System of Central Banks (hereinafter referred to as ‘the

ESCB’) shall be to maintain price stability. Without prejudice to the objective of price stability, the

ESCB shall support the general economic policies in the Union with a view to contributing to the

achievement of the objectives of the Union as laid down in Article 3 of the Treaty on European

Union. 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 119.

2. The basic tasks to be carried out through the ESCB shall be:

— to define and implement the monetary policy of the Union,

— to conduct foreign-exchange operations consistent with the provisions of Article 219,

— to hold and manage the official foreign reserves of the Member States,

— to promote the smooth operation of payment systems.

3. The third indent of paragraph 2 shall be without prejudice to the holding and management by

the governments of Member States of foreign-exchange working balances.

4. The European Central Bank shall be consulted:

— on any proposed Union 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 129(4).

The European Central Bank may submit opinions to the appropriate Union institutions, bodies,

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

C 326/102 Official Journal of the European Union 26.10.2012

5. The ESCB shall contribute to the smooth conduct of policies pursued by the competent auth

orities relating to the prudential supervision of credit institutions and the stability of the financial

system.

6. The Council, acting by means of regulations in accordance with a special legislative procedure,

may unanimously, and after consulting the European Parliament and the European Central Bank,

confer specific tasks upon the European Central Bank concerning policies relating to the prudential

supervision of credit institutions and other financial institutions with the exception of insurance

undertakings.

Article 128

(ex Article 106 TEC)

1. The European Central Bank shall have the exclusive right to authorise the issue of euro

banknotes within the Union. The European Central Bank and the national central banks may

issue such notes. The banknotes issued by the European Central Bank and the national central

banks shall be the only such notes to have the status of legal tender within the Union.

2. Member States may issue euro coins subject to approval by the European Central Bank of the

volume of the issue. The Council, on a proposal from the Commission and after consulting the

European Parliament and the European Central Bank, may adopt measures to harmonise the denomi

nations and technical specifications of all coins intended for circulation to the extent necessary to

permit their smooth circulation within the Union.

Article 129

(ex Article 107 TEC)

1. The ESCB shall be governed by the decision-making bodies of the European Central Bank

which shall be the Governing Council and the Executive Board.

2. The Statute of the European System of Central Banks and of the European Central Bank

(hereinafter referred to as ‘the Statute of the ESCB and of the ECB’) is laid down in a Protocol

annexed to the Treaties.

3. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of

the Statute of the ESCB and of the ECB may be amended by the European Parliament and the

Council, acting in accordance with the ordinary legislative procedure. They shall act either on a

recommendation from the European Central Bank and after consulting the Commission or on a

proposal from the Commission and after consulting the European Central Bank.

4. The Council, either on a proposal from the Commission and after consulting the European

Parliament and the European Central Bank or on a recommendation from the European Central Bank

and after consulting the European Parliament and the Commission, shall adopt the provisions

referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the ESCB and

of the ECB.

26.10.2012 Official Journal of the European Union C 326/103

Article 130

(ex Article 108 TEC)

When exercising the powers and carrying out the tasks and duties conferred upon them by the

Treaties and the Statute of the ESCB and of the ECB, neither the European Central Bank, nor a

national central bank, nor any member of their decision-making bodies shall seek or take instructions

from Union institutions, bodies, offices or agencies, from any government of a Member State or from

any other body. The Union institutions, bodies, offices or agencies 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 European Central Bank or of the national central banks in the

performance of their tasks.

Article 131

(ex Article 109 TEC)

Each Member State shall ensure that its national legislation including the statutes of its national

central bank is compatible with the Treaties and the Statute of the ESCB and of the ECB.

Article 132

(ex Article 110 TEC)

1. In order to carry out the tasks entrusted to the ESCB, the European Central Bank shall, in

accordance with the provisions of the Treaties and under the conditions laid down in the Statute of

the ESCB and of the ECB:

— make regulations to the extent necessary to implement the tasks defined in Article 3.1, first

indent, Articles 19.1, 22 and 25.2 of the Statute of the ESCB and of the ECB in cases which shall

be laid down in the acts of the Council referred to in Article 129(4),

— take decisions necessary for carrying out the tasks entrusted to the ESCB under the Treaties and

the Statute of the ESCB and of the ECB,

— make recommendations and deliver opinions.

2. The European Central Bank may decide to publish its decisions, recommendations and

opinions.

3. Within the limits and under the conditions adopted by the Council under the procedure laid

down in Article 129(4), the European Central Bank shall be entitled to impose fines or periodic

penalty payments on undertakings for failure to comply with obligations under its regulations and

decisions.

C 326/104 Official Journal of the European Union 26.10.2012

Article 133

Without prejudice to the powers of the European Central Bank, the European Parliament and the

Council, acting in accordance with the ordinary legislative procedure, shall lay down the measures

necessary for the use of the euro as the single currency. Such measures shall be adopted after

consultation of the European Central Bank.

CHAPTER 3

INSTITUTIONAL PROVISIONS

Article 134

(ex Article 114 TEC)

1. In order to promote coordination of the policies of Member States to the full extent needed for

the functioning of the internal market, an Economic and Financial Committee is hereby set up.

2. The Economic and Financial Committee shall have the following tasks:

— to deliver opinions at the request of the Council or of the Commission, or on its own initiative

for submission to those institutions,

— to keep under review the economic and financial situation of the Member States and of the

Union and to report regularly thereon to the Council and to the Commission, in particular on

financial relations with third countries and international institutions,

— without prejudice to Article 240, to contribute to the preparation of the work of the Council

referred to in Articles 66, 75, 121(2), (3), (4) and (6), 122, 124, 125, 126, 127(6), 128(2),

129(3) and (4), 138, 140(2) and (3), 143, 144(2) and (3), and in Article 219, and to carry out

other advisory and preparatory tasks assigned to it by the Council,

— to examine, at least once a year, the situation regarding the movement of capital and the freedom

of payments, as they result from the application of the Treaties and of measures adopted by the

Council; the examination shall cover all measures relating to capital movements and payments;

the Committee shall report to the Commission and to the Council on the outcome of this

examination.

The Member States, the Commission and the European Central Bank shall each appoint no more

than two members of the Committee.

26.10.2012 Official Journal of the European Union C 326/105

3. The Council shall, on a proposal from the Commission and after consulting the European

Central Bank and the Committee referred to in this Article, lay down detailed provisions concerning

the composition of the Economic and Financial Committee. The President of the Council shall inform

the European Parliament of such a decision.

4. In addition to the tasks set out in paragraph 2, if and as long as there are Member States with a

derogation as referred to in Article 139, the Committee shall keep under review the monetary and

financial situation and the general payments system of those Member States and report regularly

thereon to the Council and to the Commission.

Article 135

(ex Article 115 TEC)

For matters within the scope of Articles 121(4), 126 with the exception of paragraph 14, 138,

140(1), 140(2), first subparagraph, 140(3) and 219, the Council or a Member State may request the

Commission to make a recommendation or a proposal, as appropriate. The Commission shall

examine this request and submit its conclusions to the Council without delay.

CHAPTER 4

PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO

Article 136

1. In order to ensure the proper functioning of economic and monetary union, and in accordance

with the relevant provisions of the Treaties, the Council shall, in accordance with the relevant

procedure from among those referred to in Articles 121 and 126, with the exception of the

procedure set out in Article 126(14), adopt measures specific to those Member States whose

currency is the euro:

(a) to strengthen the coordination and surveillance of their budgetary discipline;

(b) to set out economic policy guidelines for them, while ensuring that they are compatible with

those adopted for the whole of the Union and are kept under surveillance.

2. For those measures set out in paragraph 1, only members of the Council representing Member

States whose currency is the euro shall take part in the vote.

A qualified majority of the said members shall be defined in accordance with Article 238(3)(a).

C 326/106 Official Journal of the European Union 26.10.2012

Article 137

Arrangements for meetings between ministers of those Member States whose currency is the euro are

laid down by the Protocol on the Euro Group.

Article 138

(ex Article 111(4), TEC)

1. In order to secure the euro's place in the international monetary system, the Council, on a

proposal from the Commission, shall adopt a decision establishing common positions on matters of

particular interest for economic and monetary union within the competent international financial

institutions and conferences. The Council shall act after consulting the European Central Bank.

2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure

unified representation within the international financial institutions and conferences. The Council

shall act after consulting the European Central Bank.

3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing

Member States whose currency is the euro shall take part in the vote.

A qualified majority of the said members shall be defined in accordance with Article 238(3)(a).

CHAPTER 5

TRANSITIONAL PROVISIONS

Article 139

1. Member States in respect of which the Council has not decided that they fulfil the necessary

conditions for the adoption of the euro shall hereinafter be referred to as ‘Member States with a

derogation’.

2. The following provisions of the Treaties shall not apply to Member States with a derogation:

(a) adoption of the parts of the broad economic policy guidelines which concern the euro area

generally (Article 121(2));

(b) coercive means of remedying excessive deficits (Article 126(9) and (11));

(d) issue of the euro (Article 128);

(e) acts of the European Central Bank (Article 132);

26.10.2012 Official Journal of the European Union C 326/107

(f) measures governing the use of the euro (Article 133);

(g) monetary agreements and other measures relating to exchange-rate policy (Article 219);

(h) appointment of members of the Executive Board of the European Central Bank (Article 283(2));

(i) decisions establishing common positions on issues of particular relevance for economic and

monetary union within the competent international financial institutions and conferences

(Article 138(1));

(j) measures to ensure unified representation within the international financial institutions and

conferences (Article 138(2)).

In the Articles referred to in points (a) to (j), ‘Member States’ shall therefore mean Member States

whose currency is the euro.

3. Under Chapter IX of the Statute of the ESCB and of the ECB, Member States with a derogation

and their national central banks are excluded from rights and obligations within the ESCB.

4. The voting rights of members of the Council representing Member States with a derogation

shall be suspended for the adoption by the Council of the measures referred to in the Articles listed

in paragraph 2, and in the following instances:

(a) recommendations made to those Member States whose currency is the euro in the framework of

multilateral surveillance, including on stability programmes and warnings (Article 121(4));

(b) measures relating to excessive deficits concerning those Member States whose currency is the

euro (Article 126(6), (7), (8), (12) and (13)).

A qualified majority of the other members of the Council shall be defined in accordance with

Article 238(3)(a).

Article 140

(ex Articles 121(1), 122(2), second sentence, and 123(5) TEC)

1. At least once every two years, or at the request of a Member State with a derogation, the

Commission and the European Central Bank shall report to the Council on the progress made by the

Member States with a derogation in fulfilling their obligations regarding the achievement of

C 326/108 Official Journal of the European Union 26.10.2012

economic and monetary union. These reports shall include an examination of the compatibility

between the national legislation of each of these Member States, including the statutes of its

national central bank, and Articles 130 and 131 and the Statute of the ESCB and of the ECB.

The reports shall also examine the achievement of a high degree of sustainable convergence by

reference to the fulfilment by each Member State of the following criteria:

— the achievement of a high degree of price stability; this will be apparent from a rate of inflation

which is close to that of, at most, the three best performing Member States in terms of price

stability,

— the sustainability of the government financial position; this will be apparent from having achieved

a government budgetary position without a deficit that is excessive as determined in accordance

with Article 126(6),

— the observance of the normal fluctuation margins provided for by the exchange-rate mechanism

of the European Monetary System, for at least two years, without devaluing against the euro,

— the durability of convergence achieved by the Member State with a derogation and of its

participation in the exchange-rate mechanism being reflected in the long-term interest-rate levels.

The four criteria mentioned in this paragraph and the relevant periods over which they are to be

respected are developed further in a Protocol annexed to the Treaties. The reports of the Commission

and the European Central Bank shall also take account of the results of the integration of markets,

the situation and development of the balances of payments on current account and an examination

of the development of unit labour costs and other price indices.

2. After consulting the European Parliament and after discussion in the European Council, the

Council shall, on a proposal from the Commission, decide which Member States with a derogation

fulfil the necessary conditions on the basis of the criteria set out in paragraph 1, and abrogate the

derogations of the Member States concerned.

The Council shall act having received a recommendation of a qualified majority of those among its

members representing Member States whose currency is the euro. These members shall act within six

months of the Council receiving the Commission's proposal.

The qualified majority of the said members, as referred to in the second subparagraph, shall be

defined in accordance with Article 238(3)(a).

3. If it is decided, in accordance with the procedure set out in paragraph 2, to abrogate a

derogation, the Council shall, acting with the unanimity of the Member States whose currency is

the euro and the Member State concerned, on a proposal from the Commission and after consulting

26.10.2012 Official Journal of the European Union C 326/109

the European Central Bank, irrevocably fix the rate at which the euro shall be substituted for the

currency of the Member State concerned, and take the other measures necessary for the introduction

of the euro as the single currency in the Member State concerned.

Article 141

(ex Articles 123(3) and 117(2) first five indents, TEC)

1. If and as long as there are Member States with a derogation, and without prejudice to

Article 129(1), the General Council of the European Central Bank referred to in Article 44 of the

Statute of the ESCB and of the ECB shall be constituted as a third decision-making body of the

European Central Bank.

2. If and as long as there are Member States with a derogation, the European Central Bank shall,

as regards those Member States:

— 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 exchange-rate mechanism,

— hold consultations concerning issues falling within the competence of the national central banks

and affecting the stability of financial institutions and markets,

— carry out the former tasks of the European Monetary Cooperation Fund which had subsequently

been taken over by the European Monetary Institute.

Article 142

(ex Article 124(1) TEC)

Each Member State with a derogation shall treat its exchange-rate policy as a matter of common

interest. In so doing, Member States shall take account of the experience acquired in cooperation

within the framework of the exchange-rate mechanism.

Article 143

(ex Article 119 TEC)

1. Where a Member State with a derogation is in difficulties or is seriously threatened with

difficulties as regards its balance of payments either as a result of an overall disequilibrium in its

balance of payments, or as a result of the type of currency at its disposal, and where such difficulties

are liable in particular to jeopardise the functioning of the internal market or the implementation of

the common commercial policy, the Commission shall immediately investigate the position of the

State in question and the action which, making use of all the means at its disposal, that State has

taken or may take in accordance with the provisions of the Treaties. The Commission shall state

what measures it recommends the State concerned to take.

C 326/110 Official Journal of the European Union 26.10.2012

If the action taken by a Member State with a derogation and the measures suggested by the

Commission do not prove sufficient to overcome the difficulties which have arisen or which

threaten, the Commission shall, after consulting the Economic and Financial Committee,

recommend to the Council the granting of mutual assistance and appropriate methods therefor.

The Commission shall keep the Council regularly informed of the situation and of how it is

developing.

2. The Council shall grant such mutual assistance; it shall adopt directives or decisions laying

down the conditions and details of such assistance, which may take such forms as:

(a) a concerted approach to or within any other international organisations to which Member States

with a derogation may have recourse;

(b) measures needed to avoid deflection of trade where the Member State with a derogation which is

in difficulties maintains or reintroduces quantitative restrictions against third countries;

3. If the mutual assistance recommended by the Commission is not granted by the Council or if

the mutual assistance granted and the measures taken are insufficient, the Commission shall authorise

the Member State with a derogation which is in difficulties to take protective measures, the

conditions and details of which the Commission shall determine.

Such authorisation may be revoked and such conditions and details may be changed by the Council.

Article 144

(ex Article 120 TEC)

1. Where a sudden crisis in the balance of payments occurs and a decision within the meaning of

Article 143(2) is not immediately taken, a Member State with a derogation may, as a precaution, take

the necessary protective measures. Such measures must cause the least possible disturbance in the

functioning of the internal market and must not be wider in scope than is strictly necessary to

remedy the sudden difficulties which have arisen.

2. The Commission and the other Member States shall be informed of such protective measures

not later than when they enter into force. The Commission may recommend to the Council the

granting of mutual assistance under Article 143.

3. After the Commission has delivered a recommendation and the Economic and Financial

Committee has been consulted, the Council may decide that the Member State concerned shall

amend, suspend or abolish the protective measures referred to above.

26.10.2012 Official Journal of the European Union C 326/111

TITLE IX

EMPLOYMENT

Article 145

(ex Article 125 TEC)

Member States and the Union shall, in accordance with this Title, work towards developing a

coordinated strategy for employment and particularly for promoting a skilled, trained and

adaptable workforce and labour markets responsive to economic change with a view to achieving

the objectives defined in Article 3 of the Treaty on European Union.

Article 146

(ex Article 126 TEC)

1. Member States, through their employment policies, shall contribute to the achievement of the

objectives referred to in Article 145 in a way consistent with the broad guidelines of the economic

policies of the Member States and of the Union adopted pursuant to Article 121(2).

2. Member States, having regard to national practices related to the responsibilities of

management and labour, shall regard promoting employment as a matter of common concern

and shall coordinate their action in this respect within the Council, in accordance with the provisions

of Article 148.

Article 147

(ex Article 127 TEC)

1. The Union shall contribute to a high level of employment by encouraging cooperation between

Member States and by supporting and, if necessary, complementing their action. In doing so, the

competences of the Member States shall be respected.

2. The objective of a high level of employment shall be taken into consideration in the formu

lation and implementation of Union policies and activities.

Article 148

(ex Article 128 TEC)

1. The European Council shall each year consider the employment situation in the Union and

adopt conclusions thereon, on the basis of a joint annual report by the Council and the Commission.

2. On the basis of the conclusions of the European Council, the Council, on a proposal from the

Commission and after consulting the European Parliament, the Economic and Social Committee, the

Committee of the Regions and the Employment Committee referred to in Article 150, shall each year

draw up guidelines which the Member States shall take into account in their employment policies.

These guidelines shall be consistent with the broad guidelines adopted pursuant to Article 121(2).

C 326/112 Official Journal of the European Union 26.10.2012

3. Each Member State shall provide the Council and the Commission with an annual report on

the principal measures taken to implement its employment policy in the light of the guidelines for

employment as referred to in paragraph 2.

4. The Council, on the basis of the reports referred to in paragraph 3 and having received the

views of the Employment Committee, shall each year carry out an examination of the implemen

tation of the employment policies of the Member States in the light of the guidelines for

employment. The Council, on a recommendation from the Commission, may, if it considers it

appropriate in the light of that examination, make recommendations to Member States.

5. On the basis of the results of that examination, the Council and the Commission shall make a

joint annual report to the European Council on the employment situation in the Union and on the

implementation of the guidelines for employment.

Article 149

(ex Article 129 TEC)

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions, may adopt incentive measures designed to encourage cooperation between Member

States and to support their action in the field of employment through initiatives aimed at developing

exchanges of information and best practices, providing comparative analysis and advice as well as

promoting innovative approaches and evaluating experiences, in particular by recourse to pilot

projects.

Those measures shall not include harmonisation of the laws and regulations of the Member States.

Article 150

(ex Article 130 TEC)

The Council, acting by a simple majority after consulting the European Parliament, shall establish an

Employment Committee with advisory status to promote coordination between Member States on

employment and labour market policies. The tasks of the Committee shall be:

— to monitor the employment situation and employment policies in the Member States and the

Union,

— without prejudice to Article 240, to formulate opinions at the request of either the Council or the

Commission or on its own initiative, and to contribute to the preparation of the Council

proceedings referred to in Article 148.

In fulfilling its mandate, the Committee shall consult management and labour.

Each Member State and the Commission shall appoint two members of the Committee.

26.10.2012 Official Journal of the European Union C 326/113

TITLE X

SOCIAL POLICY

Article 151

(ex Article 136 TEC)

The Union and the Member States, having in mind fundamental social rights such as those set out in

the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community

Charter of the Fundamental Social Rights of Workers, shall have as their objectives the promotion of

employment, improved living and working conditions, so as to make possible their harmonisation

while the improvement is being maintained, proper social protection, dialogue between management

and labour, the development of human resources with a view to lasting high employment and the

combating of exclusion.

To this end the Union and the Member States shall implement measures which take account of the

diverse forms of national practices, in particular in the field of contractual relations, and the need to

maintain the competitiveness of the Union economy.

They believe that such a development will ensue not only from the functioning of the internal

market, which will favour the harmonisation of social systems, but also from the procedures

provided for in the Treaties and from the approximation of provisions laid down by law, regulation

or administrative action.

Article 152

The Union recognises and promotes the role of the social partners at its level, taking into account the

diversity of national systems. It shall facilitate dialogue between the social partners, respecting their

autonomy.

The Tripartite Social Summit for Growth and Employment shall contribute to social dialogue.

Article 153

(ex Article 137 TEC)

1. With a view to achieving the objectives of Article 151, the Union shall support and

complement the activities of the Member States in the following fields:

(a) improvement in particular of the working environment to protect workers' health and safety;

(b) working conditions;

(d) protection of workers where their employment contract is terminated;

(e) the information and consultation of workers;

C 326/114 Official Journal of the European Union 26.10.2012

(f) representation and collective defence of the interests of workers and employers, including

co-determination, subject to paragraph 5;

(g) conditions of employment for third-country nationals legally residing in Union territory;

(h) the integration of persons excluded from the labour market, without prejudice to Article 166;

(i) equality between men and women with regard to labour market opportunities and treatment at

work;

(j) the combating of social exclusion;

(k) the modernisation of social protection systems without prejudice to point (c).

2. To this end, the European Parliament and the Council:

(a) may adopt measures designed to encourage cooperation between Member States through

initiatives aimed at improving knowledge, developing exchanges of information and best prac

tices, promoting innovative approaches and evaluating experiences, excluding any harmonisation

of the laws and regulations of the Member States;

(b) may adopt, in the fields referred to in paragraph 1(a) to (i), 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 European Parliament and the Council shall act in accordance with the ordinary legislative

procedure after consulting the Economic and Social Committee and the Committee of the Regions.

In the fields referred to in paragraph 1(c), (d), (f) and (g), the Council shall act unanimously, in

accordance with a special legislative procedure, after consulting the European Parliament and the said

Committees.

The Council, acting unanimously on a proposal from the Commission, after consulting the European

Parliament, may decide to render the ordinary legislative procedure applicable to paragraph 1(d), (f)

and (g).

3. A Member State may entrust management and labour, at their joint request, with the imple

mentation of directives adopted pursuant to paragraph 2, or, where appropriate, with the imple

mentation of a Council decision adopted in accordance with Article 155.

In this case, it shall ensure that, no later than the date on which a directive or a decision must be

transposed or implemented, management and labour have introduced the necessary measures by

agreement, the Member State concerned being required to take any necessary measure enabling it at

any time to be in a position to guarantee the results imposed by that directive or that decision.

26.10.2012 Official Journal of the European Union C 326/115

4. The provisions adopted pursuant to this Article:

— shall not affect the right of Member States to define the fundamental principles of their social

security systems and must not significantly affect the financial equilibrium thereof,

— shall not prevent any Member State from maintaining or introducing more stringent protective

measures compatible with the Treaties.

5. 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 154

(ex Article 138 TEC)

1. The Commission shall have the task of promoting the consultation of management and labour

at Union 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 Union action.

3. If, after such consultation, the Commission considers Union 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 the consultation referred to in paragraphs 2 and 3, management and labour

may inform the Commission of their wish to initiate the process provided for in Article 155. The

duration of this process shall not exceed nine months, unless the management and labour concerned

and the Commission decide jointly to extend it.

Article 155

(ex Article 139 TEC)

1. Should management and labour so desire, the dialogue between them at Union level may lead

to contractual relations, including agreements.

2. Agreements concluded at Union 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 153, at the joint request of the signatory parties, by a Council

decision on a proposal from the Commission. The European Parliament shall be informed.

The Council shall act unanimously where the agreement in question contains one or more provisions

relating to one of the areas for which unanimity is required pursuant to Article 153(2).

C 326/116 Official Journal of the European Union 26.10.2012

Article 156

(ex Article 140 TEC)

With a view to achieving the objectives of Article 151 and without prejudice to the other provisions

of the Treaties, the Commission shall encourage cooperation between the Member States and

facilitate the coordination of their action in all social policy fields under this Chapter, particularly

in matters relating to:

— employment,

— labour law and working conditions,

— basic and advanced vocational training,

— social security,

— prevention of occupational accidents and diseases,

— occupational hygiene,

— the right of association and collective bargaining between employers and workers.

To this end, the Commission shall act in close contact with Member States by making studies,

delivering opinions and arranging consultations both on problems arising at national level and on

those of concern to international organisations, in particular initiatives aiming at the establishment of

guidelines and indicators, the organisation of exchange of best practice, and the preparation of the

necessary elements for periodic monitoring and evaluation. The European Parliament shall be kept

fully informed.

Before delivering the opinions provided for in this Article, the Commission shall consult the

Economic and Social Committee.

Article 157

(ex Article 141 TEC)

1. Each Member State shall ensure that the principle of equal pay for male and female workers for

equal work or work of equal value is applied.

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;

26.10.2012 Official Journal of the European Union C 326/117

(b) that pay for work at time rates shall be the same for the same job.

3. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, and after consulting the Economic and Social Committee, shall adopt measures to ensure

the application of the principle of equal opportunities and equal treatment of men and women in

matters of employment and occupation, including the principle of equal pay for equal work or work

of equal value.

4. With a view to ensuring full equality in practice between men and women in working life, the

principle of equal treatment shall not prevent any Member State from maintaining or adopting

measures providing for specific advantages in order to make it easier for the underrepresented sex

to pursue a vocational activity or to prevent or compensate for disadvantages in professional careers.

Article 158

(ex Article 142 TEC)

Member States shall endeavour to maintain the existing equivalence between paid holiday schemes.

Article 159

(ex Article 143 TEC)

The Commission shall draw up a report each year on progress in achieving the objectives of

Article 151, including the demographic situation in the Union. It shall forward the report to the

European Parliament, the Council and the Economic and Social Committee.

Article 160

(ex Article 144 TEC)

The Council, acting by a simple majority after consulting the European Parliament, shall establish a

Social Protection Committee with advisory status to promote cooperation on social protection

policies between Member States and with the Commission. The tasks of the Committee shall be:

— to monitor the social situation and the development of social protection policies in the Member

States and the Union,

— to promote exchanges of information, experience and good practice between Member States and

with the Commission,

— without prejudice to Article 240, to prepare reports, formulate opinions or undertake other work

within its fields of competence, at the request of either the Council or the Commission or on its

own initiative.

In fulfilling its mandate, the Committee shall establish appropriate contacts with management and

labour.

C 326/118 Official Journal of the European Union 26.10.2012

Each Member State and the Commission shall appoint two members of the Committee.

Article 161

(ex Article 145 TEC)

The Commission shall include a separate chapter on social developments within the Union in its

annual report to the European Parliament.

The European Parliament may invite the Commission to draw up reports on any particular problems

concerning social conditions.

TITLE XI

THE EUROPEAN SOCIAL FUND

Article 162

(ex Article 146 TEC)

In order to improve employment opportunities for workers in the internal market and to contribute

thereby to raising the standard of living, a European Social Fund is hereby established in accordance

with the provisions set out below; it shall aim to render the employment of workers easier and to

increase their geographical and occupational mobility within the Union, and to facilitate their

adaptation to industrial changes and to changes in production systems, in particular through voca

tional training and retraining.

Article 163

(ex Article 147 TEC)

The Fund shall be administered by the Commission.

The Commission shall be assisted in this task by a Committee presided over by a Member of the

Commission and composed of representatives of governments, trade unions and employers' organi

sations.

Article 164

(ex Article 148 TEC)

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions, shall adopt implementing regulations relating to the European Social Fund.

26.10.2012 Official Journal of the European Union C 326/119

TITLE XII

EDUCATION, VOCATIONAL TRAINING, YOUTH AND SPORT

Article 165

(ex Article 149 TEC)

1. The Union shall contribute to the development of quality education by encouraging

cooperation between Member States and, if necessary, by supporting and supplementing their

action, while fully respecting the responsibility of the Member States for the content of teaching

and the organisation of education systems and their cultural and linguistic diversity.

The Union shall contribute to the promotion of European sporting issues, while taking account of

the specific nature of sport, its structures based on voluntary activity and its social and educational

function.

2. Union action shall be aimed at:

— developing the European dimension in education, particularly through the teaching and dissemi

nation of the languages of the Member States,

— encouraging mobility of students and teachers, by encouraging inter alia, the academic recog

nition of diplomas and periods of study,

— promoting cooperation between educational establishments,

— developing exchanges of information and experience on issues common to the education systems

of the Member States,

— encouraging the development of youth exchanges and of exchanges of socio-educational

instructors, and encouraging the participation of young people in democratic life in Europe,

— encouraging the development of distance education,

— developing the European dimension in sport, by promoting fairness and openness in sporting

competitions and cooperation between bodies responsible for sports, and by protecting the

physical and moral integrity of sportsmen and sportswomen, especially the youngest

sportsmen and sportswomen.

3. The Union and the Member States shall foster cooperation with third countries and the

competent international organisations in the field of education and sport, in particular the Council

of Europe.

4. In order to contribute to the achievement of the objectives referred to in this Article:

— the European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, after consulting the Economic and Social Committee and the Committee of the

Regions, shall adopt incentive measures, excluding any harmonisation of the laws and regulations

of the Member States,

C 326/120 Official Journal of the European Union 26.10.2012

— the Council, on a proposal from the Commission, shall adopt recommendations.

Article 166

(ex Article 150 TEC)

1. The Union shall implement a vocational training policy which shall support and supplement

the action of the Member States, while fully respecting the responsibility of the Member States for the

content and organisation of vocational training.

2. Union action shall aim to:

— facilitate adaptation to industrial changes, in particular through vocational training and retraining,

— improve initial and continuing vocational training in order to facilitate vocational integration and

reintegration into the labour market,

— facilitate access to vocational training and encourage mobility of instructors and trainees and

particularly young people,

— stimulate cooperation on training between educational or training establishments and firms,

— develop exchanges of information and experience on issues common to the training systems of

the Member States.

3. The Union and the Member States shall foster cooperation with third countries and the

competent international organisations in the sphere of vocational training.

4. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions, shall adopt measures to contribute to the achievement of the objectives referred to in

this Article, excluding any harmonisation of the laws and regulations of the Member States, and

the Council, on a proposal from the Commission, shall adopt recommendations.

TITLE XIII

CULTURE

Article 167

(ex Article 151 TEC)

1. The Union shall contribute to the flowering of the cultures of the Member States, while

respecting their national and regional diversity and at the same time bringing the common

cultural heritage to the fore.

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2. Action by the Union shall be aimed at encouraging cooperation between Member States and, if

necessary, supporting and supplementing their action in the following areas:

— improvement of the knowledge and dissemination of the culture and history of the European

peoples,

— conservation and safeguarding of cultural heritage of European significance,

— non-commercial cultural exchanges,

— artistic and literary creation, including in the audiovisual sector.

3. The Union and the Member States shall foster cooperation with third countries and the

competent international organisations in the sphere of culture, in particular the Council of Europe.

4. The Union shall take cultural aspects into account in its action under other provisions of the

Treaties, in particular in order to respect and to promote the diversity of its cultures.

5. In order to contribute to the achievement of the objectives referred to in this Article:

— the European Parliament and the Council acting in accordance with the ordinary legislative

procedure and after consulting the Committee of the Regions, shall adopt incentive measures,

excluding any harmonisation of the laws and regulations of the Member States,

— the Council, on a proposal from the Commission, shall adopt recommendations.

TITLE XIV

PUBLIC HEALTH

Article 168

(ex Article 152 TEC)

1. A high level of human health protection shall be ensured in the definition and implementation

of all Union policies and activities.

Union action, which shall complement national policies, shall be directed towards improving public

health, preventing physical and mental illness and diseases, and obviating sources of danger to

physical and mental health. Such action shall cover the fight against the major health scourges,

by promoting research into their causes, their transmission and their prevention, as well as health

information and education, and monitoring, early warning of and combating serious cross-border

threats to health.

The Union shall complement the Member States' action in reducing drugs-related health damage,

including information and prevention.

C 326/122 Official Journal of the European Union 26.10.2012

2. The Union shall encourage cooperation between the Member States in the areas referred to in

this Article and, if necessary, lend support to their action. It shall in particular encourage cooperation

between the Member States to improve the complementarity of their health services in cross-border

areas.

Member States shall, in liaison with the Commission, coordinate among themselves their policies and

programmes in the areas referred to in paragraph 1. The Commission may, in close contact with the

Member States, take any useful initiative to promote such coordination, in particular initiatives

aiming at the establishment of guidelines and indicators, the organisation of exchange of best

practice, and the preparation of the necessary elements for periodic monitoring and evaluation.

The European Parliament shall be kept fully informed.

3. The Union and the Member States shall foster cooperation with third countries and the

competent international organisations in the sphere of public health.

4. By way of derogation from Article 2(5) and Article 6(a) and in accordance with Article 4(2)(k)

the European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions, shall contribute to the achievement of the objectives referred to in this Article through

adopting in order to meet common safety concerns:

(a) measures setting high standards of quality and safety of organs and substances of human origin,

blood and blood derivatives; these measures shall not prevent any Member State from main

taining or introducing more stringent protective measures;

(b) measures in the veterinary and phytosanitary fields which have as their direct objective the

protection of public health;

medical use.

5. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions, may also adopt incentive measures designed to protect and improve human health and

in particular to combat the major cross-border health scourges, measures concerning monitoring,

early warning of and combating serious cross-border threats to health, and measures which have as

their direct objective the protection of public health regarding tobacco and the abuse of alcohol,

excluding any harmonisation of the laws and regulations of the Member States.

6. The Council, on a proposal from the Commission, may also adopt recommendations for the

purposes set out in this Article.

7. Union action shall respect the responsibilities of the Member States for the definition of their

health policy and for the organisation and delivery of health services and medical care. The

26.10.2012 Official Journal of the European Union C 326/123

responsibilities of the Member States shall include the management of health services and medical

care and the allocation of the resources assigned to them. The measures referred to in paragraph 4(a)

shall not affect national provisions on the donation or medical use of organs and blood.

TITLE XV

CONSUMER PROTECTION

Article 169

(ex Article 153 TEC)

1. In order to promote the interests of consumers and to ensure a high level of consumer

protection, the Union shall contribute to protecting the health, safety and economic interests of

consumers, as well as to promoting their right to information, education and to organise themselves

in order to safeguard their interests.

2. The Union shall contribute to the attainment of the objectives referred to in paragraph 1

through:

(a) measures adopted pursuant to Article 114 in the context of the completion of the internal

market;

(b) measures which support, supplement and monitor the policy pursued by the Member States.

3. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee, shall adopt the measures

referred to in paragraph 2(b).

4. Measures adopted pursuant to paragraph 3 shall not prevent any Member State from main

taining or introducing more stringent protective measures. Such measures must be compatible with

the Treaties. The Commission shall be notified of them.

TITLE XVI

TRANS-EUROPEAN NETWORKS

Article 170

(ex Article 154 TEC)

1. To help achieve the objectives referred to in Articles 26 and 174 and to enable citizens of the

Union, economic operators and regional and local communities to derive full benefit from the

setting-up of an area without internal frontiers, the Union shall contribute to the establishment

and development of trans-European networks in the areas of transport, telecommunications and

energy infrastructures.

C 326/124 Official Journal of the European Union 26.10.2012

2. Within the framework of a system of open and competitive markets, action by the Union shall

aim at promoting the interconnection and interoperability of national networks as well as access to

such networks. It shall take account in particular of the need to link island, landlocked and peripheral

regions with the central regions of the Union.

Article 171

(ex Article 155 TEC)

1. In order to achieve the objectives referred to in Article 170, the Union:

— shall establish a series of guidelines covering the objectives, priorities and broad lines of measures

envisaged in the sphere of trans-European networks; these guidelines shall identify projects of

common interest,

— shall implement any measures that may prove necessary to ensure the interoperability of the

networks, in particular in the field of technical standardisation,

— may support projects of common interest supported by Member States, which are identified in

the framework of the guidelines referred to in the first indent, particularly through feasibility

studies, loan guarantees or interest-rate subsidies; the Union may also contribute, through the

Cohesion Fund set up pursuant to Article 177, to the financing of specific projects in Member

States in the area of transport infrastructure.

The Union's activities shall take into account the potential economic viability of the projects.

2. Member States shall, in liaison with the Commission, coordinate among themselves the policies

pursued at national level which may have a significant impact on the achievement of the objectives

referred to in Article 170. The Commission may, in close cooperation with the Member State, take

any useful initiative to promote such coordination.

3. The Union may decide to cooperate with third countries to promote projects of mutual interest

and to ensure the interoperability of networks.

Article 172

(ex Article 156 TEC)

The guidelines and other measures referred to in Article 171(1) shall be adopted by the European

Parliament and the Council, acting in accordance with the ordinary legislative procedure and after

consulting the Economic and Social Committee and the Committee of the Regions.

Guidelines and projects of common interest which relate to the territory of a Member State shall

require the approval of the Member State concerned.

26.10.2012 Official Journal of the European Union C 326/125

TITLE XVII

INDUSTRY

Article 173

(ex Article 157 TEC)

1. The Union and the Member States shall ensure that the conditions necessary for the competi

tiveness of the Union's industry exist.

For that purpose, in accordance with a system of open and competitive markets, their action shall be

aimed at:

— speeding up the adjustment of industry to structural changes,

— encouraging an environment favourable to initiative and to the development of undertakings

throughout the Union, particularly small and medium-sized undertakings,

— encouraging an environment favourable to cooperation between undertakings,

— fostering better exploitation of the industrial potential of policies of innovation, research and

technological development.

2. The Member States shall consult each other in liaison with the Commission and, where

necessary, shall coordinate their action. The Commission may take any useful initiative to

promote such coordination, in particular initiatives aiming at the establishment of guidelines and

indicators, the organisation of exchange of best practice, and the preparation of the necessary

elements for periodic monitoring and evaluation. The European Parliament shall be kept fully

informed.

3. The Union shall contribute to the achievement of the objectives set out in paragraph 1 through

the policies and activities it pursues under other provisions of the Treaties. The European Parliament

and the Council, acting in accordance with the ordinary legislative procedure and after consulting the

Economic and Social Committee, may decide on specific measures in support of action taken in the

Member States to achieve the objectives set out in paragraph 1, excluding any harmonisation of the

laws and regulations of the Member States.

This Title shall not provide a basis for the introduction by the Union of any measure which could

lead to a distortion of competition or contains tax provisions or provisions relating to the rights and

interests of employed persons.

C 326/126 Official Journal of the European Union 26.10.2012

TITLE XVIII

ECONOMIC, SOCIAL AND TERRITORIAL COHESION

Article 174

(ex Article 158 TEC)

In order to promote its overall harmonious development, the Union shall develop and pursue its

actions leading to the strengthening of its economic, social and territorial cohesion.

In particular, the Union shall aim at reducing disparities between the levels of development of the

various regions and the backwardness of the least favoured regions.

Among the regions concerned, particular attention shall be paid to rural areas, areas affected by

industrial transition, and regions which suffer from severe and permanent natural or demographic

handicaps such as the northernmost regions with very low population density and island, cross-

border and mountain regions.

Article 175

(ex Article 159 TEC)

Member States shall conduct their economic policies and shall coordinate them in such a way as, in

addition, to attain the objectives set out in Article 174. The formulation and implementation of the

Union's policies and actions and the implementation of the internal market shall take into account

the objectives set out in Article 174 and shall contribute to their achievement. The Union shall also

support the achievement of these objectives by the action it takes through the Structural Funds

(European Agricultural Guidance and Guarantee Fund, Guidance Section; European Social Fund;

European Regional Development Fund), the European Investment Bank and the other existing

Financial Instruments.

The Commission shall submit a report to the European Parliament, the Council, the Economic and

Social Committee and the Committee of the Regions every three years on the progress made towards

achieving economic, social and territorial cohesion and on the manner in which the various means

provided for in this Article have contributed to it. This report shall, if necessary, be accompanied by

appropriate proposals.

If specific actions prove necessary outside the Funds and without prejudice to the measures decided

upon within the framework of the other Union policies, such actions may be adopted by the

European Parliament and the Council acting in accordance with the ordinary legislative procedure

and after consulting the Economic and Social Committee and the Committee of the Regions.

Article 176

(ex Article 160 TEC)

The European Regional Development Fund is intended to help to redress the main regional

imbalances in the Union through participation in the development and structural adjustment of

regions whose development is lagging behind and in the conversion of declining industrial regions.

26.10.2012 Official Journal of the European Union C 326/127

Article 177

(ex Article 161 TEC)

Without prejudice to Article 178, the European Parliament and the Council, acting by means of

regulations in accordance with the ordinary legislative procedure and consulting the Economic and

Social Committee and the Committee of the Regions, shall define the tasks, priority objectives and

the organisation of the Structural Funds, which may involve grouping the Funds. The general rules

applicable to them and the provisions necessary to ensure their effectiveness and the coordination of

the Funds with one another and with the other existing Financial Instruments shall also be defined by

the same procedure.

A Cohesion Fund set up in accordance with the same procedure shall provide a financial contribution

to projects in the fields of environment and trans-European networks in the area of transport

infrastructure.

Article 178

(ex Article 162 TEC)

Implementing regulations relating to the European Regional Development Fund shall be taken by the

European Parliament and the Council, acting in accordance with the ordinary legislative procedure

and after consulting the Economic and Social Committee and the Committee of the Regions.

With regard to the European Agricultural Guidance and Guarantee Fund, Guidance Section, and the

European Social Fund, Articles 43 and 164 respectively shall continue to apply.

TITLE XIX

RESEARCH AND TECHNOLOGICAL DEVELOPMENT AND SPACE

Article 179

(ex Article 163 TEC)

1. The Union shall have the objective of strengthening its scientific and technological bases by

achieving a European research area in which researchers, scientific knowledge and technology

circulate freely, and encouraging it to become more competitive, including in its industry, while

promoting all the research activities deemed necessary by virtue of other Chapters of the Treaties.

2. For this purpose the Union shall, throughout the Union, encourage undertakings, including

small and medium-sized undertakings, research centres and universities in their research and tech

nological development activities of high quality; it shall support their efforts to cooperate with one

another, aiming, notably, at permitting researchers to cooperate freely across borders and at enabling

undertakings to exploit the internal market potential to the full, in particular through the opening-up

of national public contracts, the definition of common standards and the removal of legal and fiscal

obstacles to that cooperation.

C 326/128 Official Journal of the European Union 26.10.2012

3. All Union activities under the Treaties in the area of research and technological development,

including demonstration projects, shall be decided on and implemented in accordance with the

provisions of this Title.

Article 180

(ex Article 164 TEC)

In pursuing these objectives, the Union shall carry out the following activities, complementing the

activities carried out in the Member States:

(a) implementation of research, technological development and demonstration programmes, by

promoting cooperation with and between undertakings, research centres and universities;

(b) promotion of cooperation in the field of Union research, technological development and demon

stration with third countries and international organisations;

opment and demonstration;

(d) stimulation of the training and mobility of researchers in the Union.

Article 181

(ex Article 165 TEC)

1. The Union and the Member States shall coordinate their research and technological devel

opment activities so as to ensure that national policies and Union policy are mutually consistent.

2. In close cooperation with the Member State, the Commission may take any useful initiative to

promote the coordination referred to in paragraph 1, in particular initiatives aiming at the estab

lishment of guidelines and indicators, the organisation of exchange of best practice, and the prep

aration of the necessary elements for periodic monitoring and evaluation. The European Parliament

shall be kept fully informed.

Article 182

(ex Article 166 TEC)

1. A multiannual framework programme, setting out all the activities of the Union, shall be

adopted by the European Parliament and the Council, acting in accordance with the ordinary legis

lative procedure after consulting the Economic and Social Committee.

The framework programme shall:

— establish the scientific and technological objectives to be achieved by the activities provided for in

Article 180 and fix the relevant priorities,

26.10.2012 Official Journal of the European Union C 326/129

— indicate the broad lines of such activities,

— fix the maximum overall amount and the detailed rules for Union financial participation in the

framework programme and the respective shares in each of the activities provided for.

2. The framework programme shall be adapted or supplemented as the situation changes.

3. The framework programme shall be implemented through specific programmes developed

within each activity. Each specific programme shall define the detailed rules for implementing it,

fix its duration and provide for the means deemed necessary. The sum of the amounts deemed

necessary, fixed in the specific programmes, may not exceed the overall maximum amount fixed for

the framework programme and each activity.

4. The Council, acting in accordance with a special legislative procedure and after consulting the

European Parliament and the Economic and Social Committee, shall adopt the specific programmes.

5. As a complement to the activities planned in the multiannual framework programme, the

European Parliament and the Council, acting in accordance with the ordinary legislative procedure

and after consulting the Economic and Social Committee, shall establish the measures necessary for

the implementation of the European research area.

Article 183

(ex Article 167 TEC)

For the implementation of the multiannual framework programme the Union shall:

— determine the rules for the participation of undertakings, research centres and universities,

— lay down the rules governing the dissemination of research results.

Article 184

(ex Article 168 TEC)

In implementing the multiannual framework programme, supplementary programmes may be

decided on involving the participation of certain Member States only, which shall finance them

subject to possible Union participation.

The Union shall adopt the rules applicable to supplementary programmes, particularly as regards the

dissemination of knowledge and access by other Member States.

C 326/130 Official Journal of the European Union 26.10.2012

Article 185

(ex Article 169 TEC)

In implementing the multiannual framework programme, the Union may make provision, in

agreement with the Member States concerned, for participation in research and development

programmes undertaken by several Member States, including participation in the structures created

for the execution of those programmes.

Article 186

(ex Article 170 TEC)

In implementing the multiannual framework programme the Union may make provision for

cooperation in Union research, technological development and demonstration with third countries

or international organisations.

The detailed arrangements for such cooperation may be the subject of agreements between the

Union and the third parties concerned.

Article 187

(ex Article 171 TEC)

The Union may set up joint undertakings or any other structure necessary for the efficient execution

of Union research, technological development and demonstration programmes.

Article 188

(ex Article 172 TEC)

The Council, on a proposal from the Commission and after consulting the European Parliament and

the Economic and Social Committee, shall adopt the provisions referred to in Article 187.

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee, shall adopt the provisions

referred to in Articles 183, 184 and 185. Adoption of the supplementary programmes shall

require the agreement of the Member States concerned.

Article 189

1. To promote scientific and technical progress, industrial competitiveness and the implemen

tation of its policies, the Union shall draw up a European space policy. To this end, it may promote

joint initiatives, support research and technological development and coordinate the efforts needed

for the exploration and exploitation of space.

26.10.2012 Official Journal of the European Union C 326/131

2. To contribute to attaining the objectives referred to in paragraph 1, the European Parliament

and the Council, acting in accordance with the ordinary legislative procedure, shall establish the

necessary measures, which may take the form of a European space programme, excluding any

harmonisation of the laws and regulations of the Member States.

3. The Union shall establish any appropriate relations with the European Space Agency.

4. This Article shall be without prejudice to the other provisions of this Title.

Article 190

(ex Article 173 TEC)

At the beginning of each year the Commission shall send a report to the European Parliament and to

the Council. The report shall include information on research and technological development

activities and the dissemination of results during the previous year, and the work programme for

the current year.

TITLE XX

ENVIRONMENT

Article 191

(ex Article 174 TEC)

1. Union policy on the environment shall contribute to pursuit of the following objectives:

— preserving, protecting and improving the quality of the environment,

— protecting human health,

— prudent and rational utilisation of natural resources,

— promoting measures at international level to deal with regional or worldwide environmental

problems, and in particular combating climate change.

2. Union policy on the environment shall aim at a high level of protection taking into account the

diversity of situations in the various regions of the Union. It shall be based on the precautionary

principle and on the principles that preventive action should be taken, that environmental damage

should as a priority be rectified at source and that the polluter should pay.

In this context, harmonisation measures answering environmental protection requirements shall

include, where appropriate, a safeguard clause allowing Member States to take provisional

measures, for non-economic environmental reasons, subject to a procedure of inspection by the

Union.

C 326/132 Official Journal of the European Union 26.10.2012

3. In preparing its policy on the environment, the Union shall take account of:

— available scientific and technical data,

— environmental conditions in the various regions of the Union,

— the potential benefits and costs of action or lack of action,

— the economic and social development of the Union as a whole and the balanced development of

its regions.

4. Within their respective spheres of competence, the Union and the Member States shall

cooperate with third countries and with the competent international organisations. The arrangements

for Union cooperation may be the subject of agreements between the Union and the third parties

concerned.

The previous subparagraph shall be without prejudice to Member States' competence to negotiate in

international bodies and to conclude international agreements.

Article 192

(ex Article 175 TEC)

1. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions, shall decide what action is to be taken by the Union in order to achieve the objectives

referred to in Article 191.

2. By way of derogation from the decision-making procedure provided for in paragraph 1 and

without prejudice to Article 114, the Council acting unanimously in accordance with a special

legislative procedure and after consulting the European Parliament, the Economic and Social

Committee and the Committee of the Regions, shall adopt:

(a) provisions primarily of a fiscal nature;

(b) measures affecting:

— town and country planning,

— quantitative management of water resources or affecting, directly or indirectly, the availability

of those resources,

— land use, with the exception of waste management;

general structure of its energy supply.

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

European Parliament, the Economic and Social Committee and the Committee of the Regions,

may make the ordinary legislative procedure applicable to the matters referred to in the first

subparagraph.

26.10.2012 Official Journal of the European Union C 326/133

3. General action programmes setting out priority objectives to be attained shall be adopted by

the European Parliament and the Council, acting in accordance with the ordinary legislative

procedure and after consulting the Economic and Social Committee and the Committee of the

Regions.

The measures necessary for the implementation of these programmes shall be adopted under the

terms of paragraph 1 or 2, as the case may be.

4. Without prejudice to certain measures adopted by the Union, the Member States shall finance

and implement the environment policy.

5. Without prejudice to the principle that the polluter should pay, if a measure based on the

provisions of paragraph 1 involves costs deemed disproportionate for the public authorities of a

Member State, such measure shall lay down appropriate provisions in the form of:

— temporary derogations, and/or

— financial support from the Cohesion Fund set up pursuant to Article 177.

Article 193

(ex Article 176 TEC)

The protective measures adopted pursuant to Article 192 shall not prevent any Member State from

maintaining or introducing more stringent protective measures. Such measures must be compatible

with the Treaties. They shall be notified to the Commission.

TITLE XXI

ENERGY

Article 194

1. In the context of the establishment and functioning of the internal market and with regard for

the need to preserve and improve the environment, Union policy on energy shall aim, in a spirit of

solidarity between Member States, to:

(a) ensure the functioning of the energy market;

(b) ensure security of energy supply in the Union;

of energy; and

(d) promote the interconnection of energy networks.

C 326/134 Official Journal of the European Union 26.10.2012

2. Without prejudice to the application of other provisions of the Treaties, the European

Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall

establish the measures necessary to achieve the objectives in paragraph 1. Such measures shall be

adopted after consultation of the Economic and Social Committee and the Committee of the

Regions.

Such measures shall not affect a Member State's right to determine the conditions for exploiting its

energy resources, its choice between different energy sources and the general structure of its energy

supply, without prejudice to Article 192(2)(c).

3. By way of derogation from paragraph 2, the Council, acting in accordance with a special

legislative procedure, shall unanimously and after consulting the European Parliament, establish

the measures referred to therein when they are primarily of a fiscal nature.

TITLE XXII

TOURISM

Article 195

1. The Union shall complement the action of the Member States in the tourism sector, in

particular by promoting the competitiveness of Union undertakings in that sector.

To that end, Union action shall be aimed at:

(a) encouraging the creation of a favourable environment for the development of undertakings in

this sector;

(b) promoting cooperation between the Member States, particularly by the exchange of good

practice.

2. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, shall establish specific measures to complement actions within the Member States to

achieve the objectives referred to in this Article, excluding any harmonisation of the laws and

regulations of the Member States.

TITLE XXIII

CIVIL PROTECTION

Article 196

1. The Union shall encourage cooperation between Member States in order to improve the

effectiveness of systems for preventing and protecting against natural or man-made disasters.

26.10.2012 Official Journal of the European Union C 326/135

Union action shall aim to:

(a) support and complement Member States' action at national, regional and local level in risk

prevention, in preparing their civil-protection personnel and in responding to natural or man-

made disasters within the Union;

(b) promote swift, effective operational cooperation within the Union between national civil-

protection services;

2. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure shall establish the measures necessary to help achieve the objectives referred to in

paragraph 1, excluding any harmonisation of the laws and regulations of the Member States.

TITLE XXIV

ADMINISTRATIVE COOPERATION

Article 197

1. Effective implementation of Union law by the Member States, which is essential for the proper

functioning of the Union, shall be regarded as a matter of common interest.

2. The Union may support the efforts of Member States to improve their administrative capacity

to implement Union law. Such action may include facilitating the exchange of information and of

civil servants as well as supporting training schemes. No Member State shall be obliged to avail itself

of such support. The European Parliament and the Council, acting by means of regulations in

accordance with the ordinary legislative procedure, shall establish the necessary measures to this

end, excluding any harmonisation of the laws and regulations of the Member States.

3. This Article shall be without prejudice to the obligations of the Member States to implement

Union law or to the prerogatives and duties of the Commission. It shall also be without prejudice to

other provisions of the Treaties providing for administrative cooperation among the Member States

and between them and the Union.

C 326/136 Official Journal of the European Union 26.10.2012

PART FOUR

ASSOCIATION OF THE OVERSEAS COUNTRIES AND TERRITORIES

Article 198

(ex Article 182 TEC)

The Member States agree to associate with the Union the non-European countries and territories

which have special relations with Denmark, France, the Netherlands and the United Kingdom. These

countries and territories (hereinafter called the ‘countries and territories’) are listed in Annex II.

The purpose of association shall be to promote the economic and social development of the

countries and territories and to establish close economic relations between them and the Union

as a whole.

In accordance with the principles set out in the preamble to this Treaty, association shall serve

primarily to further the interests and prosperity of the inhabitants of these countries and territories in

order to lead them to the economic, social and cultural development to which they aspire.

Article 199

(ex Article 183 TEC)

Association shall have the following objectives.

1. Member States shall apply to their trade with the countries and territories the same treatment as

they accord each other pursuant to the Treaties.

2. Each country or territory shall apply to its trade with Member States and with the other countries

and territories the same treatment as that which it applies to the European State with which is has

special relations.

3. The Member States shall contribute to the investments required for the progressive development

of these countries and territories.

4. For investments financed by the Union, participation in tenders and supplies shall be open on

equal terms to all natural and legal persons who are nationals of a Member State or of one of the

countries and territories.

5. In relations between Member States and the countries and territories the right of establishment of

nationals and companies or firms shall be regulated in accordance with the provisions and

procedures laid down in the Chapter relating to the right of establishment and on a non-

discriminatory basis, subject to any special provisions laid down pursuant to Article 203.

26.10.2012 Official Journal of the European Union C 326/137

Article 200

(ex Article 184 TEC)

1. Customs duties on imports into the Member States of goods originating in the countries and

territories shall be prohibited in conformity with the prohibition of customs duties between Member

States in accordance with the provisions of the Treaties.

2. Customs duties on imports into each country or territory from Member States or from the

other countries or territories shall be prohibited in accordance with the provisions of Article 30.

3. The countries and territories may, however, levy customs duties which meet the needs of their

development and industrialisation or produce revenue for their budgets.

The duties referred to in the preceding subparagraph may not exceed the level of those imposed on

imports of products from the Member State with which each country or territory has special

relations.

4. Paragraph 2 shall not apply to countries and territories which, by reason of the particular

international obligations by which they are bound, already apply a non-discriminatory customs tariff.

5. The introduction of or any change in customs duties imposed on goods imported into the

countries and territories shall not, either in law or in fact, give rise to any direct or indirect

discrimination between imports from the various Member States.

Article 201

(ex Article 185 TEC)

If the level of the duties applicable to goods from a third country on entry into a country or territory

is liable, when the provisions of Article 200(1) have been applied, to cause deflections of trade to the

detriment of any Member State, the latter may request the Commission to propose to the other

Member States the measures needed to remedy the situation.

Article 202

(ex Article 186 TEC)

Subject to the provisions relating to public health, public security or public policy, freedom of

movement within Member States for workers from the countries and territories, and within the

countries and territories for workers from Member States, shall be regulated by acts adopted in

accordance with Article 203.

C 326/138 Official Journal of the European Union 26.10.2012

Article 203

(ex Article 187 TEC)

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

experience acquired under the association of the countries and territories with the Union and of the

principles set out in the Treaties, lay down provisions as regards the detailed rules and the procedure

for the association of the countries and territories with the Union. Where the provisions in question

are adopted by the Council in accordance with a special legislative procedure, it shall act unani

mously on a proposal from the Commission and after consulting the European Parliament.

Article 204

(ex Article 188 TEC)

The provisions of Articles 198 to 203 shall apply to Greenland, subject to the specific provisions for

Greenland set out in the Protocol on special arrangements for Greenland, annexed to the Treaties.

PART FIVE

THE UNION'S EXTERNAL ACTION

TITLE I

GENERAL PROVISIONS ON THE UNION'S EXTERNAL ACTION

Article 205

The Union's action on the international scene, pursuant to this Part, shall be guided by the principles,

pursue the objectives and be conducted in accordance with the general provisions laid down in

Chapter 1 of Title V of the Treaty on European Union.

TITLE II

COMMON COMMERCIAL POLICY

Article 206

(ex Article 131 TEC)

By establishing a customs union in accordance with Articles 28 to 32, the Union shall contribute, in

the common interest, to the harmonious development of world trade, the progressive abolition of

restrictions on international trade and on foreign direct investment, and the lowering of customs and

other barriers.

26.10.2012 Official Journal of the European Union C 326/139

Article 207

(ex Article 133 TEC)

1. The common commercial policy shall be based on uniform principles, particularly with regard

to changes in tariff rates, the conclusion of tariff and trade agreements relating to trade in goods and

services, and the commercial aspects of intellectual property, foreign direct investment, the

achievement of uniformity in measures of liberalisation, export policy and measures to protect

trade such as those to be taken in the event of dumping or subsidies. The common commercial

policy shall be conducted in the context of the principles and objectives of the Union's external

action.

2. The European Parliament and the Council, acting by means of regulations in accordance with

the ordinary legislative procedure, shall adopt the measures defining the framework for implementing

the common commercial policy.

3. Where agreements with one or more third countries or international organisations need to be

negotiated and concluded, Article 218 shall apply, subject to the special provisions of this Article.

The Commission shall make recommendations to the Council, which shall authorise it to open the

necessary negotiations. The Council and the Commission shall be responsible for ensuring that the

agreements negotiated are compatible with internal Union policies and rules.

The Commission shall conduct these negotiations in consultation with a special committee appointed

by the Council to assist the Commission in this task and within the framework of such directives as

the Council may issue to it. The Commission shall report regularly to the special committee and to

the European Parliament on the progress of negotiations.

4. For the negotiation and conclusion of the agreements referred to in paragraph 3, the Council

shall act by a qualified majority.

For the negotiation and conclusion of agreements in the fields of trade in services and the

commercial aspects of intellectual property, as well as foreign direct investment, the Council shall

act unanimously where such agreements include provisions for which unanimity is required for the

adoption of internal rules.

The Council shall also act unanimously for the negotiation and conclusion of agreements:

(a) in the field of trade in cultural and audiovisual services, where these agreements risk prejudicing

the Union's cultural and linguistic diversity;

(b) in the field of trade in social, education and health services, where these agreements risk seriously

disturbing the national organisation of such services and prejudicing the responsibility of Member

States to deliver them.

5. The negotiation and conclusion of international agreements in the field of transport shall be

subject to Title VI of Part Three and to Article 218.

C 326/140 Official Journal of the European Union 26.10.2012

6. The exercise of the competences conferred by this Article in the field of the common

commercial policy shall not affect the delimitation of competences between the Union and the

Member States, and shall not lead to harmonisation of legislative or regulatory provisions of the

Member States in so far as the Treaties exclude such harmonisation.

TITLE III

COOPERATION WITH THIRD COUNTRIES AND HUMANITARIAN AID

CHAPTER 1

DEVELOPMENT COOPERATION

Article 208

(ex Article 177 TEC)

1. Union policy in the field of development cooperation shall be conducted within the framework

of the principles and objectives of the Union's external action. The Union's development cooperation

policy and that of the Member States complement and reinforce each other.

Union development cooperation policy shall have as its primary objective the reduction and, in the

long term, the eradication of poverty. The Union shall take account of the objectives of development

cooperation in the policies that it implements which are likely to affect developing countries.

2. The Union and the Member States shall comply with the commitments and take account of the

objectives they have approved in the context of the United Nations and other competent inter

national organisations.

Article 209

(ex Article 179 TEC)

1. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, shall adopt the measures necessary for the implementation of development cooperation

policy, which may relate to multiannual cooperation programmes with developing countries or

programmes with a thematic approach.

2. The Union may conclude with third countries and competent international organisations any

agreement helping to achieve the objectives referred to in Article 21 of the Treaty on European

Union and in Article 208 of this Treaty.

The first subparagraph shall be without prejudice to Member States' competence to negotiate in

international bodies and to conclude agreements.

3. The European Investment Bank shall contribute, under the terms laid down in its Statute, to the

implementation of the measures referred to in paragraph 1.

26.10.2012 Official Journal of the European Union C 326/141

Article 210

(ex Article 180 TEC)

1. In order to promote the complementarity and efficiency of their action, the Union and the

Member States shall coordinate their policies on development cooperation and shall consult each

other on their aid programmes, including in international organisations and during international

conferences. They may undertake joint action. Member States shall contribute if necessary to the

implementation of Union aid programmes.

2. The Commission may take any useful initiative to promote the coordination referred to in

paragraph 1.

Article 211

(ex Article 181 TEC)

Within their respective spheres of competence, the Union and the Member States shall cooperate

with third countries and with the competent international organisations.

CHAPTER 2

ECONOMIC, FINANCIAL AND TECHNICAL COOPERATION WITH THIRD

COUNTRIES

Article 212

(ex Article 181a TEC)

1. Without prejudice to the other provisions of the Treaties, and in particular Articles 208 to 211,

the Union shall carry out economic, financial and technical cooperation measures, including

assistance, in particular financial assistance, with third countries other than developing countries.

Such measures shall be consistent with the development policy of the Union and shall be carried out

within the framework of the principles and objectives of its external action. The Union's operations

and those of the Member States shall complement and reinforce each other.

2. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, shall adopt the measures necessary for the implementation of paragraph 1.

3. Within their respective spheres of competence, the Union and the Member States shall

cooperate with third countries and the competent international organisations. The arrangements

for Union cooperation may be the subject of agreements between the Union and the third parties

concerned.

The first subparagraph shall be without prejudice to the Member States' competence to negotiate in

international bodies and to conclude international agreements.

C 326/142 Official Journal of the European Union 26.10.2012

Article 213

When the situation in a third country requires urgent financial assistance from the Union, the

Council shall adopt the necessary decisions on a proposal from the Commission.

CHAPTER 3

HUMANITARIAN AID

Article 214

1. The Union's operations in the field of humanitarian aid shall be conducted within the

framework of the principles and objectives of the external action of the Union. Such operations

shall be intended to provide ad hoc assistance and relief and protection for people in third countries

who are victims of natural or man-made disasters, in order to meet the humanitarian needs resulting

from these different situations. The Union's measures and those of the Member States shall

complement and reinforce each other.

2. Humanitarian aid operations shall be conducted in compliance with the principles of inter

national law and with the principles of impartiality, neutrality and non-discrimination.

3. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, shall establish the measures defining the framework within which the Union's humani

tarian aid operations shall be implemented.

4. The Union may conclude with third countries and competent international organisations any

agreement helping to achieve the objectives referred to in paragraph 1 and in Article 21 of the Treaty

on European Union.

The first subparagraph shall be without prejudice to Member States' competence to negotiate in

international bodies and to conclude agreements.

5. In order to establish a framework for joint contributions from young Europeans to the humani

tarian aid operations of the Union, a European Voluntary Humanitarian Aid Corps shall be set up.

The European Parliament and the Council, acting by means of regulations in accordance with the

ordinary legislative procedure, shall determine the rules and procedures for the operation of the

Corps.

6. The Commission may take any useful initiative to promote coordination between actions of the

Union and those of the Member States, in order to enhance the efficiency and complementarity of

Union and national humanitarian aid measures.

7. The Union shall ensure that its humanitarian aid operations are coordinated and consistent

with those of international organisations and bodies, in particular those forming part of the United

Nations system.

26.10.2012 Official Journal of the European Union C 326/143

TITLE IV

RESTRICTIVE MEASURES

Article 215

(ex Article 301 TEC)

1. Where a decision, adopted in accordance with Chapter 2 of Title V of the Treaty on European

Union, provides for the interruption or reduction, in part or completely, of economic and financial

relations with one or more third countries, the Council, acting by a qualified majority on a joint

proposal from the High Representative of the Union for Foreign Affairs and Security Policy and the

Commission, shall adopt the necessary measures. It shall inform the European Parliament thereof.

2. Where a decision adopted in accordance with Chapter 2 of Title V of the Treaty on European

Union so provides, the Council may adopt restrictive measures under the procedure referred to in

paragraph 1 against natural or legal persons and groups or non-State entities.

3. The acts referred to in this Article shall include necessary provisions on legal safeguards.

TITLE V

INTERNATIONAL AGREEMENTS

Article 216

1. The Union may conclude an agreement with one or more third countries or international

organisations where the Treaties so provide or where the conclusion of an agreement is necessary in

order to achieve, within the framework of the Union's policies, one of the objectives referred to in

the Treaties, or is provided for in a legally binding Union act or is likely to affect common rules or

alter their scope.

2. Agreements concluded by the Union are binding upon the institutions of the Union and on its

Member States.

Article 217

(ex Article 310 TEC)

The Union may conclude with one or more third countries or international organisations agreements

establishing an association involving reciprocal rights and obligations, common action and special

procedure.

Article 218

(ex Article 300 TEC)

1. Without prejudice to the specific provisions laid down in Article 207, agreements between the

Union and third countries or international organisations shall be negotiated and concluded in

accordance with the following procedure.

C 326/144 Official Journal of the European Union 26.10.2012

2. The Council shall authorise the opening of negotiations, adopt negotiating directives, authorise

the signing of agreements and conclude them.

3. The Commission, or the High Representative of the Union for Foreign Affairs and Security

Policy where the agreement envisaged relates exclusively or principally to the common foreign and

security policy, shall submit recommendations to the Council, which shall adopt a decision auth

orising the opening of negotiations and, depending on the subject of the agreement envisaged,

nominating the Union negotiator or the head of the Union's negotiating team.

4. The Council may address directives to the negotiator and designate a special committee in

consultation with which the negotiations must be conducted.

5. The Council, on a proposal by the negotiator, shall adopt a decision authorising the signing of

the agreement and, if necessary, its provisional application before entry into force.

6. The Council, on a proposal by the negotiator, shall adopt a decision concluding the agreement.

Except where agreements relate exclusively to the common foreign and security policy, the Council

shall adopt the decision concluding the agreement:

(a) after obtaining the consent of the European Parliament in the following cases:

(i) association agreements;

(ii) agreement on Union accession to the European Convention for the Protection of Human

Rights and Fundamental Freedoms;

(iii) agreements establishing a specific institutional framework by organising cooperation

procedures;

(iv) agreements with important budgetary implications for the Union;

(v) agreements covering fields to which either the ordinary legislative procedure applies, or the

special legislative procedure where consent by the European Parliament is required.

The European Parliament and the Council may, in an urgent situation, agree upon a time-limit

for consent.

(b) after consulting the European Parliament in other cases. The European Parliament shall deliver its

opinion within a time-limit which the Council may set depending on the urgency of the matter.

In the absence of an opinion within that time-limit, the Council may act.

26.10.2012 Official Journal of the European Union C 326/145

7. When concluding an agreement, the Council may, by way of derogation from paragraphs 5, 6

and 9, authorise the negotiator to approve on the Union's behalf modifications to the agreement

where it provides for them to be adopted by a simplified procedure or by a body set up by the

agreement. The Council may attach specific conditions to such authorisation.

8. The Council shall act by a qualified majority throughout the procedure.

However, it shall act unanimously when the agreement covers a field for which unanimity is required

for the adoption of a Union act as well as for association agreements and the agreements referred to

in Article 212 with the States which are candidates for accession. The Council shall also act

unanimously for the agreement on accession of the Union to the European Convention for the

Protection of Human Rights and Fundamental Freedoms; the decision concluding this agreement shall

enter into force after it has been approved by the Member States in accordance with their respective

constitutional requirements.

9. The Council, on a proposal from the Commission or the High Representative of the Union for

Foreign Affairs and Security Policy, shall adopt a decision suspending application of an agreement

and establishing the positions to be adopted on the Union's behalf in a body set up by an agreement,

when that body is called upon to adopt acts having legal effects, with the exception of acts

supplementing or amending the institutional framework of the agreement.

10. The European Parliament shall be immediately and fully informed at all stages of the

procedure.

11. A Member State, the European Parliament, the Council or the Commission may obtain the

opinion of the Court of Justice as to whether an agreement envisaged is compatible with the Treaties.

Where the opinion of the Court is adverse, the agreement envisaged may not enter into force unless

it is amended or the Treaties are revised.

Article 219

(ex Article 111(1) to (3) and (5) TEC)

1. By way of derogation from Article 218, the Council, either on a recommendation from the

European Central Bank or on a recommendation from the Commission and after consulting the

European Central Bank, in an endeavour to reach a consensus consistent with the objective of price

stability, may conclude formal agreements on an exchange-rate system for the euro in relation to the

currencies of third States. The Council shall act unanimously after consulting the European

Parliament and in accordance with the procedure provided for in paragraph 3.

The Council may, either on a recommendation from the European Central Bank or on a recom

mendation from the Commission, and after consulting the European Central Bank, in an endeavour

to reach a consensus consistent with the objective of price stability, adopt, adjust or abandon the

central rates of the euro within the exchange-rate system. The President of the Council shall inform

the European Parliament of the adoption, adjustment or abandonment of the euro central rates.

C 326/146 Official Journal of the European Union 26.10.2012

2. In the absence of an exchange-rate system in relation to one or more currencies of third States

as referred to in paragraph 1, the Council, either on a recommendation from the Commission and

after consulting the European Central Bank or on a recommendation from the European Central

Bank, may formulate general orientations for exchange-rate policy in relation to these currencies.

These general orientations shall be without prejudice to the primary objective of the ESCB to

maintain price stability.

3. By way of derogation from Article 218, where agreements concerning monetary or foreign

exchange regime matters need to be negotiated by the Union with one or more third States or

international organisations, the Council, on a recommendation from the Commission and after

consulting the European Central Bank, shall decide the arrangements for the negotiation and for

the conclusion of such agreements. These arrangements shall ensure that the Union expresses a single

position. The Commission shall be fully associated with the negotiations.

4. Without prejudice to Union competence and Union agreements as regards economic and

monetary union, Member States may negotiate in international bodies and conclude international

agreements.

TITLE VI

THE UNION'S RELATIONS WITH INTERNATIONAL ORGANISATIONS AND

THIRD COUNTRIES AND UNION DELEGATIONS

Article 220

(ex Articles 302 to 304 TEC)

1. The Union shall establish all appropriate forms of cooperation with the organs of the United

Nations and its specialised agencies, the Council of Europe, the Organisation for Security and

Cooperation in Europe and the Organisation for Economic Cooperation and Development.

The Union shall also maintain such relations as are appropriate with other international organi

sations.

2. The High Representative of the Union for Foreign Affairs and Security Policy and the

Commission shall implement this Article.

Article 221

1. Union delegations in third countries and at international organisations shall represent the

Union.

2. Union delegations shall be placed under the authority of the High Representative of the Union

for Foreign Affairs and Security Policy. They shall act in close cooperation with Member States'

diplomatic and consular missions.

26.10.2012 Official Journal of the European Union C 326/147

TITLE VII

SOLIDARITY CLAUSE

Article 222

1. The Union and its Member States shall act jointly in a spirit of solidarity if a Member State is

the object of a terrorist attack or the victim of a natural or man-made disaster. The Union shall

mobilise all the instruments at its disposal, including the military resources made available by the

Member States, to:

(a) — prevent the terrorist threat in the territory of the Member States;

— protect democratic institutions and the civilian population from any terrorist attack;

— assist a Member State in its territory, at the request of its political authorities, in the event of a

terrorist attack;

(b) assist a Member State in its territory, at the request of its political authorities, in the event of a

natural or man-made disaster.

2. Should a Member State be the object of a terrorist attack or the victim of a natural or man-

made disaster, the other Member States shall assist it at the request of its political authorities. To that

end, the Member States shall coordinate between themselves in the Council.

3. The arrangements for the implementation by the Union of the solidarity clause shall be defined

by a decision adopted by the Council acting on a joint proposal by the Commission and the High

Representative of the Union for Foreign Affairs and Security Policy. The Council shall act in

accordance with Article 31(1) of the Treaty on European Union where this decision has defence

implications. The European Parliament shall be informed.

For the purposes of this paragraph and without prejudice to Article 240, the Council shall be assisted

by the Political and Security Committee with the support of the structures developed in the context

of the common security and defence policy and by the Committee referred to in Article 71; the two

committees shall, if necessary, submit joint opinions.

4. The European Council shall regularly assess the threats facing the Union in order to enable the

Union and its Member States to take effective action.

C 326/148 Official Journal of the European Union 26.10.2012

PART SIX

INSTITUTIONAL AND FINANCIAL PROVISIONS

TITLE I

INSTITUTIONAL PROVISIONS

CHAPTER 1

THE INSTITUTIONS

SECTION 1

THE EUROPEAN PARLIAMENT

Article 223

(ex Article 190(4) and (5) TEC)

1. The European Parliament shall draw up a proposal to lay down the provisions necessary for the

election of its Members by direct universal suffrage in accordance with a uniform procedure in all

Member States or in accordance with principles common to all Member States.

The Council, acting unanimously in accordance with a special legislative procedure and after

obtaining the consent of the European Parliament, which shall act by a majority of its component

Members, shall lay down the necessary provisions. These provisions shall enter into force following

their approval by the Member States in accordance with their respective constitutional requirements.

2. The European Parliament, acting by means of regulations on its own initiative in accordance

with a special legislative procedure after seeking an opinion from the Commission and with the

consent of the Council, shall lay down the regulations and general conditions governing the

performance of the duties of its Members. All rules or conditions relating to the taxation of

Members or former Members shall require unanimity within the Council.

Article 224

(ex Article 191, second subparagraph, TEC)

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, by means of regulations, shall lay down the regulations governing political parties at

European level referred to in Article 10(4) of the Treaty on European Union and in particular the

rules regarding their funding.

26.10.2012 Official Journal of the European Union C 326/149

Article 225

(ex Article 192, second subparagraph, TEC)

The European Parliament may, acting by a majority of its component Members, request the

Commission to submit any appropriate proposal on matters on which it considers that a Union

act is required for the purpose of implementing the Treaties. If the Commission does not submit a

proposal, it shall inform the European Parliament of the reasons.

Article 226

(ex Article 193 TEC)

In the course of its duties, the European Parliament may, at the request of a quarter of its component

Members, set up a temporary Committee of Inquiry to investigate, without prejudice to the powers

conferred by the Treaties on other institutions or bodies, alleged contraventions or maladministration

in the implementation of Union law, except where the alleged facts are being examined before a

court and while the case is still subject to legal proceedings.

The temporary Committee of Inquiry shall cease to exist on the submission of its report.

The detailed provisions governing the exercise of the right of inquiry shall be determined by the

European Parliament, acting by means of regulations on its own initiative in accordance with a

special legislative procedure, after obtaining the consent of the Council and the Commission.

Article 227

(ex Article 194 TEC)

Any citizen of the Union, and any natural or legal person residing or having its registered office in a

Member State, shall have the right to address, individually or in association with other citizens or

persons, a petition to the European Parliament on a matter which comes within the Union's fields of

activity and which affects him, her or it directly.

Article 228

(ex Article 195 TEC)

1. A European Ombudsman, elected by the European Parliament, shall be empowered to receive

complaints from any citizen of the Union or any natural or legal person residing or having its

registered office in a Member State concerning instances of maladministration in the activities of the

Union institutions, bodies, offices or agencies, with the exception of the Court of Justice of the

European Union acting in its judicial role. He or she shall examine such complaints and report on

them.

In accordance with his duties, the Ombudsman shall conduct inquiries for which he finds grounds,

either on his own initiative or on the basis of complaints submitted to him direct or through a

Member of the European Parliament, except where the alleged facts are or have been the subject of

legal proceedings. Where the Ombudsman establishes an instance of maladministration, he shall refer

the matter to the institution, body, office or agency concerned, which shall have a period of three

months in which to inform him of its views. The Ombudsman shall then forward a report to the

European Parliament and the institution, body, office or agency concerned. The person lodging the

complaint shall be informed of the outcome of such inquiries.

C 326/150 Official Journal of the European Union 26.10.2012

The Ombudsman shall submit an annual report to the European Parliament on the outcome of his

inquiries.

2. The Ombudsman shall be elected after each election of the European Parliament for the

duration of its term of office. The Ombudsman shall be eligible for reappointment.

The Ombudsman may be dismissed by the Court of Justice at the request of the European Parliament

if he no longer fulfils the conditions required for the performance of his duties or if he is guilty of

serious misconduct.

3. The Ombudsman shall be completely independent in the performance of his duties. In the

performance of those duties he shall neither seek nor take instructions from any Government,

institution, body, office or entity. The Ombudsman may not, during his term of office, engage in

any other occupation, whether gainful or not.

4. The European Parliament acting by means of regulations on its own initiative in accordance

with a special legislative procedure shall, after seeking an opinion from the Commission and with the

consent of the Council, lay down the regulations and general conditions governing the performance

of the Ombudsman's duties.

Article 229

(ex Article 196 TEC)

The European Parliament shall hold an annual session. It shall meet, without requiring to be

convened, on the second Tuesday in March.

The European Parliament may meet in extraordinary part-session at the request of a majority of its

component Members or at the request of the Council or of the Commission.

Article 230

(ex Article 197, second, third and fourth paragraph, TEC)

The Commission may attend all the meetings and shall, at its request, be heard.

The Commission shall reply orally or in writing to questions put to it by the European Parliament or

by its Members.

The European Council and the Council shall be heard by the European Parliament in accordance with

the conditions laid down in the Rules of Procedure of the European Council and those of the

Council.

26.10.2012 Official Journal of the European Union C 326/151

Article 231

(ex Article 198 TEC)

Save as otherwise provided in the Treaties, the European Parliament shall act by a majority of the

votes cast.

The Rules of Procedure shall determine the quorum.

Article 232

(ex Article 199 TEC)

The European Parliament shall adopt its Rules of Procedure, acting by a majority of its Members.

The proceedings of the European Parliament shall be published in the manner laid down in the

Treaties and in its Rules of Procedure.

Article 233

(ex Article 200 TEC)

The European Parliament shall discuss in open session the annual general report submitted to it by

the Commission.

Article 234

(ex Article 201 TEC)

If a motion of censure on the activities of the Commission is tabled before it, the European

Parliament shall not vote thereon until at least three days after the motion has been tabled and

only by open vote.

If the motion of censure is carried by a two-thirds majority of the votes cast, representing a majority

of the component Members of the European Parliament, the members of the Commission shall

resign as a body and the High Representative of the Union for Foreign Affairs and Security Policy

shall resign from duties that he or she carries out in the Commission. They shall remain in office and

continue to deal with current business until they are replaced in accordance with Article 17 of the

Treaty on European Union. In this case, the term of office of the members of the Commission

appointed to replace them shall expire on the date on which the term of office of the members of

the Commission obliged to resign as a body would have expired.

SECTION 2

THE EUROPEAN COUNCIL

Article 235

1. Where a vote is taken, any member of the European Council may also act on behalf of not

more than one other member.

C 326/152 Official Journal of the European Union 26.10.2012

Article 16(4) of the Treaty on European Union and Article 238(2) of this Treaty shall apply to the

European Council when it is acting by a qualified majority. Where the European Council decides by

vote, its President and the President of the Commission shall not take part in the vote.

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

European Council of acts which require unanimity.

2. The President of the European Parliament may be invited to be heard by the European Council.

3. The European Council shall act by a simple majority for procedural questions and for the

adoption of its Rules of Procedure.

4. The European Council shall be assisted by the General Secretariat of the Council.

Article 236

The European Council shall adopt by a qualified majority:

(a) a decision establishing the list of Council configurations, other than those of the General Affairs

Council and of the Foreign Affairs Council, in accordance with Article 16(6) of the Treaty on

European Union;

(b) a decision on the Presidency of Council configurations, other than that of Foreign Affairs, in

accordance with Article 16(9) of the Treaty on European Union.

SECTION 3

THE COUNCIL

Article 237

(ex Article 204 TEC)

The Council shall meet when convened by its President on his own initiative or at the request of one

of its Members or of the Commission.

Article 238

(ex Article 205(1) and (2), TEC)

1. Where it is required to act by a simple majority, the Council shall act by a majority of its

component members.

2. By way of derogation from Article 16(4) of the Treaty on European Union, as from

1 November 2014 and subject to the provisions laid down in the Protocol on transitional provisions,

26.10.2012 Official Journal of the European Union C 326/153

where the Council does not act on a proposal from the Commission or from the High Representative

of the Union for Foreign Affairs and Security Policy, the qualified majority shall be defined as at least

72 % of the members of the Council, representing Member States comprising at least 65 % of the

population of the Union.

3. As from 1 November 2014 and subject to the provisions laid down in the Protocol on

transitional provisions, in cases where, under the Treaties, not all the members of the Council

participate in voting, a qualified majority shall be defined as follows:

(a) A qualified majority shall be defined as at least 55 % of the members of the Council representing

the participating Member States, comprising at least 65 % of the population of these States.

A blocking minority must include at least the minimum number of Council members repre

senting more than 35 % of the population of the participating Member States, plus one member,

failing which the qualified majority shall be deemed attained;

(b) By way of derogation from point (a), where the Council does not act on a proposal from the

Commission or from the High Representative of the Union for Foreign Affairs and Security

Policy, the qualified majority shall be defined as at least 72 % of the members of the Council

representing the participating Member States, comprising at least 65 % of the population of these

States.

4. Abstentions by Members present in person or represented shall not prevent the adoption by

the Council of acts which require unanimity.

Article 239

(ex Article 206 TEC)

Where a vote is taken, any Member of the Council may also act on behalf of not more than one

other member.

Article 240

(ex Article 207 TEC)

1. A committee consisting of the Permanent Representatives of the Governments of the Member

States shall be responsible for preparing the work of the Council and for carrying out the tasks

assigned to it by the latter. The Committee may adopt procedural decisions in cases provided for in

the Council's Rules of Procedure.

2. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-

General appointed by the Council.

The Council shall decide on the organisation of the General Secretariat by a simple majority.

3. The Council shall act by a simple majority regarding procedural matters and for the adoption

of its Rules of Procedure.

C 326/154 Official Journal of the European Union 26.10.2012

Article 241

(ex Article 208 TEC)

The Council, acting by a simple majority, may request the Commission to undertake any studies the

Council considers desirable for the attainment of the common objectives, and to submit to it any

appropriate proposals. If the Commission does not submit a proposal, it shall inform the Council of

the reasons.

Article 242

(ex Article 209 TEC)

The Council, acting by a simple majority shall, after consulting the Commission, determine the rules

governing the committees provided for in the Treaties.

Article 243

(ex Article 210 TEC)

The Council shall determine the salaries, allowances and pensions of the President of the European

Council, the President of the Commission, the High Representative of the Union for Foreign Affairs

and Security Policy, the Members of the Commission, the Presidents, Members and Registrars of the

Court of Justice of the European Union, and the Secretary-General of the Council. It shall also

determine any payment to be made instead of remuneration.

SECTION 4

THE COMMISSION

Article 244

In accordance with Article 17(5) of the Treaty on European Union, the Members of the Commission

shall be chosen on the basis of a system of rotation established unanimously by the European

Council and on the basis of the following principles:

(a) Member States shall be treated on a strictly equal footing as regards determination of the

sequence of, and the time spent by, their nationals as members of the Commission; consequently,

the difference between the total number of terms of office held by nationals of any given pair of

Member States may never be more than one;

(b) subject to point (a), each successive Commission shall be so composed as to reflect satisfactorily

the demographic and geographical range of all the Member States.

26.10.2012 Official Journal of the European Union C 326/155

Article 245

(ex Article 213 TEC)

The Members of the Commission shall refrain from any action incompatible with their duties.

Member States shall respect their independence and shall not seek to influence them in the

performance of their tasks.

The Members of the Commission may not, during their term of office, engage in any other occu

pation, whether gainful or not. When entering upon their duties they shall give a solemn undertaking

that, both during and after their term of office, they will respect the obligations arising therefrom and

in particular their duty to behave with integrity and discretion as regards the acceptance, after they

have ceased to hold office, of certain appointments or benefits. In the event of any breach of these

obligations, the Court of Justice may, on application by the Council acting by a simple majority or

the Commission, rule that the Member concerned be, according to the circumstances, either compul

sorily retired in accordance with Article 247 or deprived of his right to a pension or other benefits in

its stead.

Article 246

(ex Article 215 TEC)

Apart from normal replacement, or death, the duties of a Member of the Commission shall end

when he resigns or is compulsorily retired.

A vacancy caused by resignation, compulsory retirement or death shall be filled for the remainder of

the Member's term of office by a new Member of the same nationality appointed by the Council, by

common accord with the President of the Commission, after consulting the European Parliament and

in accordance with the criteria set out in the second subparagraph of Article 17(3) of the Treaty on

European Union.

The Council may, acting unanimously on a proposal from the President of the Commission, decide

that such a vacancy need not be filled, in particular when the remainder of the Member's term of

office is short.

In the event of resignation, compulsory retirement or death, the President shall be replaced for the

remainder of his term of office. The procedure laid down in the first subparagraph of Article 17(7) of

the Treaty on European Union shall be applicable for the replacement of the President.

In the event of resignation, compulsory retirement or death, the High Representative of the Union for

Foreign Affairs and Security Policy shall be replaced, for the remainder of his or her term of office, in

accordance with Article 18(1) of the Treaty on European Union.

In the case of the resignation of all the Members of the Commission, they shall remain in office and

continue to deal with current business until they have been replaced, for the remainder of their term

of office, in accordance with Article 17 of the Treaty on European Union.

C 326/156 Official Journal of the European Union 26.10.2012

Article 247

(ex Article 216 TEC)

If any Member of the Commission no longer fulfils the conditions required for the performance of

his duties or if he has been guilty of serious misconduct, the Court of Justice may, on application by

the Council acting by a simple majority or the Commission, compulsorily retire him.

Article 248

(ex Article 217(2) TEC)

Without prejudice to Article 18(4) of the Treaty on European Union, the responsibilities incumbent

upon the Commission shall be structured and allocated among its members by its President, in

accordance with Article 17(6) of that Treaty. The President may reshuffle the allocation of those

responsibilities during the Commission's term of office. The Members of the Commission shall carry

out the duties devolved upon them by the President under his authority.

Article 249

(ex Articles 218(2) and 212 TEC)

1. The Commission shall adopt its Rules of Procedure so as to ensure that both it and its

departments operate. It shall ensure that these Rules are published.

2. The Commission shall publish annually, not later than one month before the opening of the

session of the European Parliament, a general report on the activities of the Union.

Article 250

(ex Article 219 TEC)

The Commission shall act by a majority of its Members.

Its Rules of Procedure shall determine the quorum.

SECTION 5

THE COURT OF JUSTICE OF THE EUROPEAN UNION

Article 251

(ex Article 221 TEC)

The Court of Justice shall sit in chambers or in a Grand Chamber, in accordance with the rules laid

down for that purpose in the Statute of the Court of Justice of the European Union.

When provided for in the Statute, the Court of Justice may also sit as a full Court.

26.10.2012 Official Journal of the European Union C 326/157

Article 252

(ex Article 222 TEC)

The Court of Justice shall be assisted by eight Advocates-General. Should the Court of Justice so

request, the Council, acting unanimously, may increase the number of Advocates-General.

It shall be the duty of the Advocate-General, acting with complete impartiality and independence, to

make, in open court, reasoned submissions on cases which, in accordance with the Statute of the

Court of Justice of the European Union, require his involvement.

Article 253

(ex Article 223 TEC)

The Judges and Advocates-General of the Court of Justice shall be chosen from persons whose

independence is beyond doubt and who possess the qualifications required for appointment to the

highest judicial offices in their respective countries or who are jurisconsults of recognised

competence; they shall be appointed by common accord of the governments of the Member

States for a term of six years, after consultation of the panel provided for in Article 255.

Every three years there shall be a partial replacement of the Judges and Advocates-General, in

accordance with the conditions laid down in the Statute of the Court of Justice of the European

Union.

The Judges shall elect the President of the Court of Justice from among their number for a term of

three years. He may be re-elected.

Retiring Judges and Advocates-General may be reappointed.

The Court of Justice shall appoint its Registrar and lay down the rules governing his service.

The Court of Justice shall establish its Rules of Procedure. Those Rules shall require the approval of

the Council.

Article 254

(ex Article 224 TEC)

The number of Judges of the General Court shall be determined by the Statute of the Court of Justice

of the European Union. The Statute may provide for the General Court to be assisted by Advocates-

General.

The members of the General Court shall be chosen from persons whose independence is beyond

doubt and who possess the ability required for appointment to high judicial office. They shall be

appointed by common accord of the governments of the Member States for a term of six years, after

consultation of the panel provided for in Article 255. The membership shall be partially renewed

every three years. Retiring members shall be eligible for reappointment.

C 326/158 Official Journal of the European Union 26.10.2012

The Judges shall elect the President of the General Court from among their number for a term of

three years. He may be re-elected.

The General Court shall appoint its Registrar and lay down the rules governing his service.

The General Court shall establish its Rules of Procedure in agreement with the Court of Justice. Those

Rules shall require the approval of the Council.

Unless the Statute of the Court of Justice of the European Union provides otherwise, the provisions

of the Treaties relating to the Court of Justice shall apply to the General Court.

Article 255

A panel shall be set up in order to give an opinion on candidates' suitability to perform the duties of

Judge and Advocate-General of the Court of Justice and the General Court before the governments of

the Member States make the appointments referred to in Articles 253 and 254.

The panel shall comprise seven persons chosen from among former members of the Court of Justice

and the General Court, members of national supreme courts and lawyers of recognised competence,

one of whom shall be proposed by the European Parliament. The Council shall adopt a decision

establishing the panel's operating rules and a decision appointing its members. It shall act on the

initiative of the President of the Court of Justice.

Article 256

(ex Article 225 TEC)

1. The General Court shall have jurisdiction to hear and determine at first instance actions or

proceedings referred to in Articles 263, 265, 268, 270 and 272, with the exception of those assigned

to a specialised court set up under Article 257 and those reserved in the Statute for the Court of

Justice. The Statute may provide for the General Court to have jurisdiction for other classes of action

or proceeding.

Decisions given by the General Court under this paragraph may be subject to a right of appeal to the

Court of Justice on points of law only, under the conditions and within the limits laid down by the

Statute.

2. The General Court shall have jurisdiction to hear and determine actions or proceedings brought

against decisions of the specialised courts.

Decisions given by the General Court under this paragraph may exceptionally be subject to review by

the Court of Justice, under the conditions and within the limits laid down by the Statute, where there

is a serious risk of the unity or consistency of Union law being affected.

3. The General Court shall have jurisdiction to hear and determine questions referred for a

preliminary ruling under Article 267, in specific areas laid down by the Statute.

26.10.2012 Official Journal of the European Union C 326/159

Where the General Court considers that the case requires a decision of principle likely to affect the

unity or consistency of Union law, it may refer the case to the Court of Justice for a ruling.

Decisions given by the General Court on questions referred for a preliminary ruling may excep

tionally be subject to review by the Court of Justice, under the conditions and within the limits laid

down by the Statute, where there is a serious risk of the unity or consistency of Union law being

affected.

Article 257

(ex Article 225a TEC)

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may establish specialised courts attached to the General Court to hear and determine

at first instance certain classes of action or proceeding brought in specific areas. The European

Parliament and the Council shall act by means of regulations either on a proposal from the

Commission after consultation of the Court of Justice or at the request of the Court of Justice

after consultation of the Commission.

The regulation establishing a specialised court shall lay down the rules on the organisation of the

court and the extent of the jurisdiction conferred upon it.

Decisions given by specialised courts may be subject to a right of appeal on points of law only or,

when provided for in the regulation establishing the specialised court, a right of appeal also on

matters of fact, before the General Court.

The members of the specialised courts shall be chosen from persons whose independence is beyond

doubt and who possess the ability required for appointment to judicial office. They shall be

appointed by the Council, acting unanimously.

The specialised courts shall establish their Rules of Procedure in agreement with the Court of Justice.

Those Rules shall require the approval of the Council.

Unless the regulation establishing the specialised court provides otherwise, the provisions of the

Treaties relating to the Court of Justice of the European Union and the provisions of the Statute of

the Court of Justice of the European Union shall apply to the specialised courts. Title I of the Statute

and Article 64 thereof shall in any case apply to the specialised courts.

Article 258

(ex Article 226 TEC)

If the Commission considers that a Member State has failed to fulfil an obligation under the Treaties,

it shall deliver a reasoned opinion on the matter after giving the State concerned the opportunity to

submit its observations.

If the State concerned does not comply with the opinion within the period laid down by the

Commission, the latter may bring the matter before the Court of Justice of the European Union.

C 326/160 Official Journal of the European Union 26.10.2012

Article 259

(ex Article 227 TEC)

A Member State which considers that another Member State has failed to fulfil an obligation under

the Treaties may bring the matter before the Court of Justice of the European Union.

Before a Member State brings an action against another Member State for an alleged infringement of

an obligation under the Treaties, it shall bring the matter before the Commission.

The Commission shall deliver a reasoned opinion after each of the States concerned has been given

the opportunity to submit its own case and its observations on the other party's case both orally and

in writing.

If the Commission has not delivered an opinion within three months of the date on which the

matter was brought before it, the absence of such opinion shall not prevent the matter from being

brought before the Court.

Article 260

(ex Article 228 TEC)

1. If the Court of Justice of the European Union finds that a Member State has failed to fulfil an

obligation under the Treaties, the State shall be required to take the necessary measures to comply

with the judgment of the Court.

2. If the Commission considers that the Member State concerned has not taken the necessary

measures to comply with the judgment of the Court, it may bring the case before the Court after

giving that State the opportunity to submit its observations. It shall specify the amount of the lump

sum or penalty payment to be paid by the Member State concerned which it considers appropriate in

the circumstances.

If the Court finds that the Member State concerned has not complied with its judgment it may

impose a lump sum or penalty payment on it.

This procedure shall be without prejudice to Article 259.

3. When the Commission brings a case before the Court pursuant to Article 258 on the grounds

that the Member State concerned has failed to fulfil its obligation to notify measures transposing a

directive adopted under a legislative procedure, it may, when it deems appropriate, specify the

amount of the lump sum or penalty payment to be paid by the Member State concerned which

it considers appropriate in the circumstances.

If the Court finds that there is an infringement it may impose a lump sum or penalty payment on

the Member State concerned not exceeding the amount specified by the Commission. The payment

obligation shall take effect on the date set by the Court in its judgment.

26.10.2012 Official Journal of the European Union C 326/161

Article 261

(ex Article 229 TEC)

Regulations adopted jointly by the European Parliament and the Council, and by the Council,

pursuant to the provisions of the Treaties, may give the Court of Justice of the European Union

unlimited jurisdiction with regard to the penalties provided for in such regulations.

Article 262

(ex Article 229a TEC)

Without prejudice to the other provisions of the Treaties, the Council, acting unanimously in

accordance with a special legislative procedure and after consulting the European Parliament, may

adopt provisions to confer jurisdiction, to the extent that it shall determine, on the Court of Justice of

the European Union in disputes relating to the application of acts adopted on the basis of the

Treaties which create European intellectual property rights. These provisions shall enter into force

after their approval by the Member States in accordance with their respective constitutional require

ments.

Article 263

(ex Article 230 TEC)

The Court of Justice of the European Union shall review the legality of legislative acts, of acts of the

Council, of the Commission and of the European Central Bank, other than recommendations and

opinions, and of acts of the European Parliament and of the European Council intended to produce

legal effects vis-à-vis third parties. It shall also review the legality of acts of bodies, offices or agencies

of the Union intended to produce legal effects vis-à-vis third parties.

It shall for this purpose have jurisdiction in actions brought by a Member State, the European

Parliament, the Council or the Commission on grounds of lack of competence, infringement of

an essential procedural requirement, infringement of the Treaties or of any rule of law relating to

their application, or misuse of powers.

The Court shall have jurisdiction under the same conditions in actions brought by the Court of

Auditors, by the European Central Bank and by the Committee of the Regions for the purpose of

protecting their prerogatives.

Any natural or legal person may, under the conditions laid down in the first and second paragraphs,

institute proceedings against an act addressed to that person or which is of direct and individual

concern to them, and against a regulatory act which is of direct concern to them and does not entail

implementing measures.

Acts setting up bodies, offices and agencies of the Union may lay down specific conditions and

arrangements concerning actions brought by natural or legal persons against acts of these bodies,

offices or agencies intended to produce legal effects in relation to them.

C 326/162 Official Journal of the European Union 26.10.2012

The proceedings provided for in this Article shall be instituted within two months of the publication

of the measure, or of its notification to the plaintiff, or, in the absence thereof, of the day on which it

came to the knowledge of the latter, as the case may be.

Article 264

(ex Article 231 TEC)

If the action is well founded, the Court of Justice of the European Union shall declare the act

concerned to be void.

However, the Court shall, if it considers this necessary, state which of the effects of the act which it

has declared void shall be considered as definitive.

Article 265

(ex Article 232 TEC)

Should the European Parliament, the European Council, the Council, the Commission or the

European Central Bank, in infringement of the Treaties, fail to act, the Member States and the

other institutions of the Union may bring an action before the Court of Justice of the European

Union to have the infringement established. This Article shall apply, under the same conditions, to

bodies, offices and agencies of the Union which fail to act.

The action shall be admissible only if the institution, body, office or agency concerned has first been

called upon to act. If, within two months of being so called upon, the institution, body, office or

agency concerned has not defined its position, the action may be brought within a further period of

two months.

Any natural or legal person may, under the conditions laid down in the preceding paragraphs,

complain to the Court that an institution, body, office or agency of the Union has failed to

address to that person any act other than a recommendation or an opinion.

Article 266

(ex Article 233 TEC)

The institution whose act has been declared void or whose failure to act has been declared contrary

to the Treaties shall be required to take the necessary measures to comply with the judgment of the

Court of Justice of the European Union.

This obligation shall not affect any obligation which may result from the application of the second

paragraph of Article 340.

26.10.2012 Official Journal of the European Union C 326/163

Article 267

(ex Article 234 TEC)

The Court of Justice of the European Union shall have jurisdiction to give preliminary rulings

concerning:

(a) the interpretation of the Treaties;

(b) the validity and interpretation of acts of the institutions, bodies, offices or agencies of the Union;

Where such a question is raised before any court or tribunal of a Member State, that court or

tribunal may, if it considers that a decision on the question is necessary to enable it to give judgment,

request the Court to give a ruling thereon.

Where any such question is raised in a case pending before a court or tribunal of a Member State

against whose decisions there is no judicial remedy under national law, that court or tribunal shall

bring the matter before the Court.

If such a question is raised in a case pending before a court or tribunal of a Member State with

regard to a person in custody, the Court of Justice of the European Union shall act with the

minimum of delay.

Article 268

(ex Article 235 TEC)

The Court of Justice of the European Union shall have jurisdiction in disputes relating to compen

sation for damage provided for in the second and third paragraphs of Article 340.

Article 269

The Court of Justice shall have jurisdiction to decide on the legality of an act adopted by the

European Council or by the Council pursuant to Article 7 of the Treaty on European Union

solely at the request of the Member State concerned by a determination of the European Council

or of the Council and in respect solely of the procedural stipulations contained in that Article.

Such a request must be made within one month from the date of such determination. The Court

shall rule within one month from the date of the request.

Article 270

(ex Article 236 TEC)

The Court of Justice of the European Union shall have jurisdiction in any dispute between the Union

and its servants within the limits and under the conditions laid down in the Staff Regulations of

Officials and the Conditions of Employment of other servants of the Union.

C 326/164 Official Journal of the European Union 26.10.2012

Article 271

(ex Article 237 TEC)

The Court of Justice of the European Union shall, within the limits hereinafter laid down, have

jurisdiction in disputes concerning:

(a) the fulfilment by Member States of obligations under the Statute of the European Investment

Bank. In this connection, the Board of Directors of the Bank shall enjoy the powers conferred

upon the Commission by Article 258;

(b) measures adopted by the Board of Governors of the European Investment Bank. In this

connection, any Member State, the Commission or the Board of Directors of the Bank may

institute proceedings under the conditions laid down in Article 263;

against such measures may be instituted only by Member States or by the Commission, under

the conditions laid down in Article 263, and solely on the grounds of non-compliance with the

procedure provided for in Article 19(2), (5), (6) and (7) of the Statute of the Bank;

(d) the fulfilment by national central banks of obligations under the Treaties and the Statute of the

ESCB and of the ECB. In this connection the powers of the Governing Council of the European

Central Bank in respect of national central banks shall be the same as those conferred upon the

Commission in respect of Member States by Article 258. If the Court finds that a national central

bank has failed to fulfil an obligation under the Treaties, that bank shall be required to take the

necessary measures to comply with the judgment of the Court.

Article 272

(ex Article 238 TEC)

The Court of Justice of the European Union shall have jurisdiction to give judgment pursuant to any

arbitration clause contained in a contract concluded by or on behalf of the Union, whether that

contract be governed by public or private law.

Article 273

(ex Article 239 TEC)

The Court of Justice shall have jurisdiction in any dispute between Member States which relates to

the subject matter of the Treaties if the dispute is submitted to it under a special agreement between

the parties.

Article 274

(ex Article 240 TEC)

Save where jurisdiction is conferred on the Court of Justice of the European Union by the Treaties,

disputes to which the Union is a party shall not on that ground be excluded from the jurisdiction of

the courts or tribunals of the Member States.

26.10.2012 Official Journal of the European Union C 326/165

Article 275

The Court of Justice of the European Union shall not have jurisdiction with respect to the provisions

relating to the common foreign and security policy nor with respect to acts adopted on the basis of

those provisions.

However, the Court shall have jurisdiction to monitor compliance with Article 40 of the Treaty on

European Union and to rule on proceedings, brought in accordance with the conditions laid down in

the fourth paragraph of Article 263 of this Treaty, reviewing the legality of decisions providing for

restrictive measures against natural or legal persons adopted by the Council on the basis of Chapter 2

of Title V of the Treaty on European Union.

Article 276

In exercising its powers regarding the provisions of Chapters 4 and 5 of Title V of Part Three relating

to the area of freedom, security and justice, the Court of Justice of the European Union shall have no

jurisdiction to review the validity or proportionality of operations carried out by the police or other

law-enforcement services of a Member State or the exercise of the responsibilities incumbent upon

Member States with regard to the maintenance of law and order and the safeguarding of internal

security.

Article 277

(ex Article 241 TEC)

Notwithstanding the expiry of the period laid down in Article 263, sixth paragraph, any party may,

in proceedings in which an act of general application adopted by an institution, body, office or

agency of the Union is at issue, plead the grounds specified in Article 263, second paragraph, in

order to invoke before the Court of Justice of the European Union the inapplicability of that act.

Article 278

(ex Article 242 TEC)

Actions brought before the Court of Justice of the European Union shall not have suspensory effect.

The Court may, however, if it considers that circumstances so require, order that application of the

contested act be suspended.

Article 279

(ex Article 243 TEC)

The Court of Justice of the European Union may in any cases before it prescribe any necessary

interim measures.

C 326/166 Official Journal of the European Union 26.10.2012

Article 280

(ex Article 244 TEC)

The judgments of the Court of Justice of the European Union shall be enforceable under the

conditions laid down in Article 299.

Article 281

(ex Article 245 TEC)

The Statute of the Court of Justice of the European Union shall be laid down in a separate Protocol.

The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, may amend the provisions of the Statute, with the exception of Title I and Article 64.

The European Parliament and the Council shall act either at the request of the Court of Justice and

after consultation of the Commission, or on a proposal from the Commission and after consultation

of the Court of Justice.

SECTION 6

THE EUROPEAN CENTRAL BANK

Article 282

1. The European Central Bank, together with the national central banks, shall constitute the

European System of Central Banks (ESCB). The European Central Bank, together with the national

central banks of the Member States whose currency is the euro, which constitute the Eurosystem,

shall conduct the monetary policy of the Union.

2. The ESCB shall be governed by the decision-making bodies of the European Central Bank. The

primary objective of the ESCB shall be to maintain price stability. Without prejudice to that objective,

it shall support the general economic policies in the Union in order to contribute to the achievement

of the latter's objectives.

3. The European Central Bank shall have legal personality. It alone may authorise the issue of the

euro. It shall be independent in the exercise of its powers and in the management of its finances.

Union institutions, bodies, offices and agencies and the governments of the Member States shall

respect that independence.

4. The European Central Bank shall adopt such measures as are necessary to carry out its tasks in

accordance with Articles 127 to 133, with Article 138, and with the conditions laid down in the

Statute of the ESCB and of the ECB. In accordance with these same Articles, those Member States

whose currency is not the euro, and their central banks, shall retain their powers in monetary

matters.

5. Within the areas falling within its responsibilities, the European Central Bank shall be consulted

on all proposed Union acts, and all proposals for regulation at national level, and may give an

opinion.

26.10.2012 Official Journal of the European Union C 326/167

Article 283

(ex Article 112 TEC)

1. The Governing Council of the European Central Bank shall comprise the members of the

Executive Board of the European Central Bank and the Governors of the national central banks of

the Member States whose currency is the euro.

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

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

by the European Council, acting by a qualified majority, from among persons of recognised standing

and professional experience in monetary or banking matters, on a recommendation from the

Council, after it has consulted the European Parliament and the Governing Council of the

European Central Bank.

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

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

Article 284

(ex Article 113 TEC)

1. The President of the Council and a Member of the Commission may participate, without having

the right to vote, in meetings of the Governing Council of the European Central Bank.

The President of the Council may submit a motion for deliberation to the Governing Council of the

European Central Bank.

2. The President of the European Central Bank shall be invited to participate in Council meetings

when the Council is discussing matters relating to the objectives and tasks of the ESCB.

3. The European Central Bank shall address an annual report on the activities of the ESCB and on

the monetary policy of both the previous and current year to the European Parliament, the Council

and the Commission, and also to the European Council. The President of the European Central Bank

shall present this report to the Council and to the European Parliament, which may hold a general

debate on that basis.

The President of the European Central Bank and the other members of the Executive Board may, at

the request of the European Parliament or on their own initiative, be heard by the competent

committees of the European Parliament.

C 326/168 Official Journal of the European Union 26.10.2012

SECTION 7

THE COURT OF AUDITORS

Article 285

(ex Article 246 TEC)

The Court of Auditors shall carry out the Union's audit.

It shall consist of one national of each Member State. Its Members shall be completely independent

in the performance of their duties, in the Union's general interest.

Article 286

(ex Article 247 TEC)

1. The Members of the Court of Auditors shall be chosen from among persons who belong or

have belonged in their respective States to external audit bodies or who are especially qualified for

this office. Their independence must be beyond doubt.

2. The Members of the Court of Auditors shall be appointed for a term of six years. The Council,

after consulting the European Parliament, shall adopt the list of Members drawn up in accordance

with the proposals made by each Member State. The term of office of the Members of the Court of

Auditors shall be renewable.

They shall elect the President of the Court of Auditors from among their number for a term of three

years. The President may be re-elected.

3. In the performance of these duties, the Members of the Court of Auditors shall neither seek nor

take instructions from any government or from any other body. The Members of the Court of

Auditors shall refrain from any action incompatible with their duties.

4. The Members of the Court of Auditors may not, during their term of office, engage in any

other occupation, whether gainful or not. When entering upon their duties they shall give a solemn

undertaking that, both during and after their term of office, they will respect the obligations arising

therefrom and in particular their duty to behave with integrity and discretion as regards the

acceptance, after they have ceased to hold office, of certain appointments or benefits.

5. Apart from normal replacement, or death, the duties of a Member of the Court of Auditors

shall end when he resigns, or is compulsorily retired by a ruling of the Court of Justice pursuant to

paragraph 6.

The vacancy thus caused shall be filled for the remainder of the Member's term of office.

Save in the case of compulsory retirement, Members of the Court of Auditors shall remain in office

until they have been replaced.

26.10.2012 Official Journal of the European Union C 326/169

6. A Member of the Court of Auditors may be deprived of his office or of his right to a pension

or other benefits in its stead only if the Court of Justice, at the request of the Court of Auditors, finds

that he no longer fulfils the requisite conditions or meets the obligations arising from his office.

7. The Council shall determine the conditions of employment of the President and the Members

of the Court of Auditors and in particular their salaries, allowances and pensions. It shall also

determine any payment to be made instead of remuneration.

8. The provisions of the Protocol on the privileges and immunities of the European Union

applicable to the Judges of the Court of Justice of the European Union shall also apply to the

Members of the Court of Auditors.

Article 287

(ex Article 248 TEC)

1. The Court of Auditors shall examine the accounts of all revenue and expenditure of the Union.

It shall also examine the accounts of all revenue and expenditure of all bodies, offices or agencies set

up by the Union in so far as the relevant constituent instrument does not preclude such examination.

The Court of Auditors shall provide the European Parliament and the Council with a statement of

assurance as to the reliability of the accounts and the legality and regularity of the underlying

transactions which shall be published in the Official Journal of the European Union. This statement

may be supplemented by specific assessments for each major area of Union activity.

2. The Court of Auditors shall examine whether all revenue has been received and all expenditure

incurred in a lawful and regular manner and whether the financial management has been sound. In

doing so, it shall report in particular on any cases of irregularity.

The audit of revenue shall be carried out on the basis both of the amounts established as due and the

amounts actually paid to the Union.

The audit of expenditure shall be carried out on the basis both of commitments undertaken and

payments made.

These audits may be carried out before the closure of accounts for the financial year in question.

3. The audit shall be based on records and, if necessary, performed on the spot in the other

institutions of the Union, on the premises of any body, office or agency which manages revenue or

expenditure on behalf of the Union and in the Member States, including on the premises of any

natural or legal person in receipt of payments from the budget. In the Member States the audit shall

be carried out in liaison with national audit bodies or, if these do not have the necessary powers,

with the competent national departments. The Court of Auditors and the national audit bodies of the

Member States shall cooperate in a spirit of trust while maintaining their independence. These bodies

or departments shall inform the Court of Auditors whether they intend to take part in the audit.

C 326/170 Official Journal of the European Union 26.10.2012

The other institutions of the Union, any bodies, offices or agencies managing revenue or expenditure

on behalf of the Union, any natural or legal person in receipt of payments from the budget, and the

national audit bodies or, if these do not have the necessary powers, the competent national depart

ments, shall forward to the Court of Auditors, at its request, any document or information necessary

to carry out its task.

In respect of the European Investment Bank's activity in managing Union expenditure and revenue,

the Court's rights of access to information held by the Bank shall be governed by an agreement

between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall

nevertheless have access to information necessary for the audit of Union expenditure and revenue

managed by the Bank.

4. The Court of Auditors shall draw up an annual report after the close of each financial year. It

shall be forwarded to the other institutions of the Union and shall be published, together with the

replies of these institutions to the observations of the Court of Auditors, in the Official Journal of the

European Union.

The Court of Auditors may also, at any time, submit observations, particularly in the form of special

reports, on specific questions and deliver opinions at the request of one of the other institutions of

the Union.

It shall adopt its annual reports, special reports or opinions by a majority of its Members. However, it

may establish internal chambers in order to adopt certain categories of reports or opinions under the

conditions laid down by its Rules of Procedure.

It shall assist the European Parliament and the Council in exercising their powers of control over the

implementation of the budget.

The Court of Auditors shall draw up its Rules of Procedure. Those rules shall require the approval of

the Council.

CHAPTER 2

LEGAL ACTS OF THE UNION, ADOPTION PROCEDURES AND OTHER

PROVISIONS

SECTION 1

THE LEGAL ACTS OF THE UNION

Article 288

(ex Article 249 TEC)

To exercise the Union's competences, the institutions shall adopt regulations, directives, decisions,

recommendations and opinions.

A regulation shall have general application. It shall be binding in its entirety and directly applicable in

all Member States.

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A directive shall be binding, as to the result to be achieved, upon each Member State to which it is

addressed, but shall leave to the national authorities the choice of form and methods.

A decision shall be binding in its entirety. A decision which specifies those to whom it is addressed

shall be binding only on them.

Recommendations and opinions shall have no binding force.

Article 289

1. The ordinary legislative procedure shall consist in the joint adoption by the European

Parliament and the Council of a regulation, directive or decision on a proposal from the Commission.

This procedure is defined in Article 294.

2. In the specific cases provided for by the Treaties, the adoption of a regulation, directive or

decision by the European Parliament with the participation of the Council, or by the latter with the

participation of the European Parliament, shall constitute a special legislative procedure.

3. Legal acts adopted by legislative procedure shall constitute legislative acts.

4. In the specific cases provided for by the Treaties, legislative acts may be adopted on the

initiative of a group of Member States or of the European Parliament, on a recommendation from

the European Central Bank or at the request of the Court of Justice or the European Investment Bank.

Article 290

1. A legislative act may delegate to the Commission the power to adopt non-legislative acts of

general application to supplement or amend certain non-essential elements of the legislative act.

The objectives, content, scope and duration of the delegation of power shall be explicitly defined in

the legislative acts. The essential elements of an area shall be reserved for the legislative act and

accordingly shall not be the subject of a delegation of power.

2. Legislative acts shall explicitly lay down the conditions to which the delegation is subject; these

conditions may be as follows:

(a) the European Parliament or the Council may decide to revoke the delegation;

(b) the delegated act may enter into force only if no objection has been expressed by the European

Parliament or the Council within a period set by the legislative act.

For the purposes of (a) and (b), the European Parliament shall act by a majority of its component

members, and the Council by a qualified majority.

3. The adjective ‘delegated’ shall be inserted in the title of delegated acts.

C 326/172 Official Journal of the European Union 26.10.2012

Article 291

1. Member States shall adopt all measures of national law necessary to implement legally binding

Union acts.

2. Where uniform conditions for implementing legally binding Union acts are needed, those acts

shall confer implementing powers on the Commission, or, in duly justified specific cases and in the

cases provided for in Articles 24 and 26 of the Treaty on European Union, on the Council.

3. For the purposes of paragraph 2, the European Parliament and the Council, acting by means of

regulations in accordance with the ordinary legislative procedure, shall lay down in advance the rules

and general principles concerning mechanisms for control by Member States of the Commission's

exercise of implementing powers.

4. The word ‘implementing’ shall be inserted in the title of implementing acts.

Article 292

The Council shall adopt recommendations. It shall act on a proposal from the Commission in all

cases where the Treaties provide that it shall adopt acts on a proposal from the Commission. It shall

act unanimously in those areas in which unanimity is required for the adoption of a Union act. The

Commission, and the European Central Bank in the specific cases provided for in the Treaties, shall

adopt recommendations.

SECTION 2

PROCEDURES FOR THE ADOPTION OF ACTS AND OTHER PROVISIONS

Article 293

(ex Article 250 TEC)

1. Where, pursuant to the Treaties, the Council acts on a proposal from the Commission, it may

amend that proposal only by acting unanimously, except in the cases referred to in paragraphs 10

and 13 of Article 294, in Articles 310, 312 and 314 and in the second paragraph of Article 315.

2. As long as the Council has not acted, the Commission may alter its proposal at any time

during the procedures leading to the adoption of a Union act.

Article 294

(ex Article 251 TEC)

1. Where reference is made in the Treaties to the ordinary legislative procedure for the adoption

of an act, the following procedure shall apply.

2. The Commission shall submit a proposal to the European Parliament and the Council.

26.10.2012 Official Journal of the European Union C 326/173

First reading

3. The European Parliament shall adopt its position at first reading and communicate it to the

Council.

4. If the Council approves the European Parliament's position, the act concerned shall be adopted

in the wording which corresponds to the position of the European Parliament.

5. If the Council does not approve the European Parliament's position, it shall adopt its position at

first reading and communicate it to the European Parliament.

6. The Council shall inform the European Parliament fully of the reasons which led it to adopt its

position at first reading. The Commission shall inform the European Parliament fully of its position.

Second reading

7. If, within three months of such communication, the European Parliament:

(a) approves the Council's position at first reading or has not taken a decision, the act concerned

shall be deemed to have been adopted in the wording which corresponds to the position of the

Council;

(b) rejects, by a majority of its component members, the Council's position at first reading, the

proposed act shall be deemed not to have been adopted;

reading, the text thus amended shall be forwarded to the Council and to the Commission, which

shall deliver an opinion on those amendments.

8. If, within three months of receiving the European Parliament's amendments, the Council, acting

by a qualified majority:

(a) approves all those amendments, the act in question shall be deemed to have been adopted;

(b) does not approve all the amendments, the President of the Council, in agreement with the

President of the European Parliament, shall within six weeks convene a meeting of the

Conciliation Committee.

9. The Council shall act unanimously on the amendments on which the Commission has

delivered a negative opinion.

Conciliation

10. The Conciliation Committee, which shall be composed of the members of the Council or their

representatives and an equal number of members representing the European Parliament, shall have

the task of reaching agreement on a joint text, by a qualified majority of the members of the Council

or their representatives and by a majority of the members representing the European Parliament

within six weeks of its being convened, on the basis of the positions of the European Parliament and

the Council at second reading.

C 326/174 Official Journal of the European Union 26.10.2012

11. The Commission shall take part in the Conciliation Committee's proceedings and shall take all

necessary initiatives with a view to reconciling the positions of the European Parliament and the

Council.

12. If, within six weeks of its being convened, the Conciliation Committee does not approve the

joint text, the proposed act shall be deemed not to have been adopted.

Third reading

13. If, within that period, the Conciliation Committee approves a joint text, the European

Parliament, acting by a majority of the votes cast, and the Council, acting by a qualified majority,

shall each have a period of six weeks from that approval in which to adopt the act in question in

accordance with the joint text. If they fail to do so, the proposed act shall be deemed not to have

been adopted.

14. The periods of three months and six weeks referred to in this Article shall be extended by a

maximum of one month and two weeks respectively at the initiative of the European Parliament or

the Council.

Special provisions

15. Where, in the cases provided for in the Treaties, a legislative act is submitted to the ordinary

legislative procedure on the initiative of a group of Member States, on a recommendation by the

European Central Bank, or at the request of the Court of Justice, paragraph 2, the second sentence of

paragraph 6, and paragraph 9 shall not apply.

In such cases, the European Parliament and the Council shall communicate the proposed act to the

Commission with their positions at first and second readings. The European Parliament or the

Council may request the opinion of the Commission throughout the procedure, which the

Commission may also deliver on its own initiative. It may also, if it deems it necessary, take part

in the Conciliation Committee in accordance with paragraph 11.

Article 295

The European Parliament, the Council and the Commission shall consult each other and by common

agreement make arrangements for their cooperation. To that end, they may, in compliance with the

Treaties, conclude interinstitutional agreements which may be of a binding nature.

Article 296

(ex Article 253 TEC)

Where the Treaties do not specify the type of act to be adopted, the institutions shall select it on a

case-by-case basis, in compliance with the applicable procedures and with the principle of propor

tionality.

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Legal acts shall state the reasons on which they are based and shall refer to any proposals, initiatives,

recommendations, requests or opinions required by the Treaties.

When considering draft legislative acts, the European Parliament and the Council shall refrain from

adopting acts not provided for by the relevant legislative procedure in the area in question.

Article 297

(ex Article 254 TEC)

1. Legislative acts adopted under the ordinary legislative procedure shall be signed by the President

of the European Parliament and by the President of the Council.

Legislative acts adopted under a special legislative procedure shall be signed by the President of the

institution which adopted them.

Legislative acts shall be published in the Official Journal of the European Union. They shall enter into

force on the date specified in them or, in the absence thereof, on the twentieth day following that of

their publication.

2. Non-legislative acts adopted in the form of regulations, directives or decisions, when the latter

do not specify to whom they are addressed, shall be signed by the President of the institution which

adopted them.

Regulations and directives which are addressed to all Member States, as well as decisions which do

not specify to whom they are addressed, shall be published in the Official Journal of the European

Union. They shall enter into force on the date specified in them or, in the absence thereof, on the

twentieth day following that of their publication.

Other directives, and decisions which specify to whom they are addressed, shall be notified to those

to whom they are addressed and shall take effect upon such notification.

Article 298

1. In carrying out their missions, the institutions, bodies, offices and agencies of the Union shall

have the support of an open, efficient and independent European administration.

2. In compliance with the Staff Regulations and the Conditions of Employment adopted on the

basis of Article 336, the European Parliament and the Council, acting by means of regulations in

accordance with the ordinary legislative procedure, shall establish provisions to that end.

Article 299

(ex Article 256 TEC)

Acts of the Council, the Commission or the European Central Bank which impose a pecuniary

obligation on persons other than States, shall be enforceable.

Enforcement shall be governed by the rules of civil procedure in force in the State in the territory of

which it is carried out. The order for its enforcement shall be appended to the decision, without

other formality than verification of the authenticity of the decision, by the national authority which

the government of each Member State shall designate for this purpose and shall make known to the

Commission and to the Court of Justice of the European Union.

C 326/176 Official Journal of the European Union 26.10.2012

When these formalities have been completed on application by the party concerned, the latter may

proceed to enforcement in accordance with the national law, by bringing the matter directly before

the competent authority.

Enforcement may be suspended only by a decision of the Court. However, the courts of the country

concerned shall have jurisdiction over complaints that enforcement is being carried out in an

irregular manner.

CHAPTER 3

THE UNION'S ADVISORY BODIES

Article 300

1. The European Parliament, the Council and the Commission shall be assisted by an Economic

and Social Committee and a Committee of the Regions, exercising advisory functions.

2. The Economic and Social Committee shall consist of representatives of organisations of

employers, of the employed, and of other parties representative of civil society, notably in socio-

economic, civic, professional and cultural areas.

3. The Committee of the Regions shall consist of representatives of regional and local bodies who

either hold a regional or local authority electoral mandate or are politically accountable to an elected

assembly.

4. The members of the Economic and Social Committee and of the Committee of the Regions

shall not be bound by any mandatory instructions. They shall be completely independent in the

performance of their duties, in the Union's general interest.

5. The rules referred to in paragraphs 2 and 3 governing the nature of the composition of the

Committees shall be reviewed at regular intervals by the Council to take account of economic, social

and demographic developments within the Union. The Council, on a proposal from the Commission,

shall adopt decisions to that end.

SECTION 1

THE ECONOMIC AND SOCIAL COMMITTEE

Article 301

(ex Article 258 TEC)

The number of members of the Economic and Social Committee shall not exceed 350.

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

determining the Committee's composition.

The Council shall determine the allowances of members of the Committee.

26.10.2012 Official Journal of the European Union C 326/177

Article 302

(ex Article 259 TEC)

1. The members of the Committee shall be appointed for five years The Council shall adopt the

list of members drawn up in accordance with the proposals made by each Member State. The term

of office of the members of the Committee shall be renewable.

2. The Council shall act after consulting the Commission. It may obtain the opinion of European

bodies which are representative of the various economic and social sectors and of civil society to

which the Union's activities are of concern.

Article 303

(ex Article 260 TEC)

The Committee shall elect its chairman and officers from among its members for a term of two and

a half years.

It shall adopt its Rules of Procedure.

The Committee shall be convened by its chairman at the request of the European Parliament, the

Council or of the Commission. It may also meet on its own initiative.

Article 304

(ex Article 262 TEC)

The Committee shall be consulted by the European Parliament, by the Council or by the Commission

where the Treaties so provide. The Committee may be consulted by these institutions in all cases in

which they consider it appropriate. It may issue an opinion on its own initiative in cases in which it

considers such action appropriate.

The European Parliament, the Council or the Commission shall, if it considers it necessary, set the

Committee, for the submission of its opinion, a time limit which may not be less than one month

from the date on which the chairman receives notification to this effect. Upon expiry of the time

limit, the absence of an opinion shall not prevent further action.

The opinion of the Committee, together with a record of the proceedings, shall be forwarded to the

European Parliament, to the Council and to the Commission.

SECTION 2

THE COMMITTEE OF THE REGIONS

Article 305

(ex Article 263, second, third and fourth paragraphs, TEC)

The number of members of the Committee of the Regions shall not exceed 350.

C 326/178 Official Journal of the European Union 26.10.2012

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

determining the Committee's composition.

The members of the Committee and an equal number of alternate members shall be appointed for

five years. Their term of office shall be renewable. The Council shall adopt the list of members and

alternate members drawn up in accordance with the proposals made by each Member State. When

the mandate referred to in Article 300(3) on the basis of which they were proposed comes to an end,

the term of office of members of the Committee shall terminate automatically and they shall then be

replaced for the remainder of the said term of office in accordance with the same procedure. No

member of the Committee shall at the same time be a Member of the European Parliament.

Article 306

(ex Article 264 TEC)

The Committee of the Regions shall elect its chairman and officers from among its members for a

term of two and a half years.

It shall adopt its Rules of Procedure.

The Committee shall be convened by its chairman at the request of the European Parliament, the

Council or of the Commission. It may also meet on its own initiative.

Article 307

(ex Article 265 TEC)

The Committee of the Regions shall be consulted by the European Parliament, by the Council or by

the Commission where the Treaties so provide and in all other cases, in particular those which

concern cross-border cooperation, in which one of these institutions considers it appropriate.

The European Parliament, the Council or the Commission shall, if it considers it necessary, set the

Committee, for the submission of its opinion, a time limit which may not be less than one month

from the date on which the chairman receives notification to this effect. Upon expiry of the time

limit, the absence of an opinion shall not prevent further action.

Where the Economic and Social Committee is consulted pursuant to Article 304, the Committee of

the Regions shall be informed by the European Parliament, the Council or the Commission of the

request for an opinion. Where it considers that specific regional interests are involved, the Committee

of the Regions may issue an opinion on the matter.

It may issue an opinion on its own initiative in cases in which it considers such action appropriate.

The opinion of the Committee, together with a record of the proceedings, shall be forwarded to the

European Parliament, to the Council and to the Commission.

26.10.2012 Official Journal of the European Union C 326/179

CHAPTER 4

THE EUROPEAN INVESTMENT BANK

Article 308

(ex Article 266 TEC)

The European Investment Bank shall have legal personality.

The members of the European Investment Bank shall be the Member States.

The Statute of the European Investment Bank is laid down in a Protocol annexed to the Treaties. The

Council acting unanimously in accordance with a special legislative procedure, at the request of the

European Investment Bank and after consulting the European Parliament and the Commission, or on

a proposal from the Commission and after consulting the European Parliament and the European

Investment Bank, may amend the Statute of the Bank.

Article 309

(ex Article 267 TEC)

The task of the European Investment Bank shall be to contribute, by having recourse to the capital

market and utilising its own resources, to the balanced and steady development of the internal

market in the interest of the Union. For this purpose the Bank shall, operating on a non-profit-

making basis, grant loans and give guarantees which facilitate the financing of the following projects

in all sectors of the economy:

(a) projects for developing less-developed regions;

(b) projects for modernising or converting undertakings or for developing fresh activities called for

by the establishment or functioning of the internal market, where these projects are of such a

size or nature that they cannot be entirely financed by the various means available in the

individual Member States;

they cannot be entirely financed by the various means available in the individual Member States.

In carrying out its task, the Bank shall facilitate the financing of investment programmes in

conjunction with assistance from the Structural Funds and other Union Financial Instruments.

C 326/180 Official Journal of the European Union 26.10.2012

TITLE II

FINANCIAL PROVISIONS

Article 310

(ex Article 268 TEC)

1. All items of revenue and expenditure of the Union shall be included in estimates to be drawn

up for each financial year and shall be shown in the budget.

The Union's annual budget shall be established by the European Parliament and the Council in

accordance with Article 314.

The revenue and expenditure shown in the budget shall be in balance.

2. The expenditure shown in the budget shall be authorised for the annual budgetary period in

accordance with the regulation referred to in Article 322.

3. The implementation of expenditure shown in the budget shall require the prior adoption of a

legally binding Union act providing a legal basis for its action and for the implementation of the

corresponding expenditure in accordance with the regulation referred to in Article 322, except in

cases for which that law provides.

4. With a view to maintaining budgetary discipline, the Union shall not adopt any act which is

likely to have appreciable implications for the budget without providing an assurance that the

expenditure arising from such an act is capable of being financed within the limit of the Union's

own resources and in compliance with the multiannual financial framework referred to in

Article 312.

5. The budget shall be implemented in accordance with the principle of sound financial

management. Member States shall cooperate with the Union to ensure that the appropriations

entered in the budget are used in accordance with this principle.

6. The Union and the Member States, in accordance with Article 325, shall counter fraud and any

other illegal activities affecting the financial interests of the Union.

CHAPTER 1

THE UNION'S OWN RESOURCES

Article 311

(ex Article 269 TEC)

The Union shall provide itself with the means necessary to attain its objectives and carry through its

policies.

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Without prejudice to other revenue, the budget shall be financed wholly from own resources.

The Council, acting in accordance with a special legislative procedure, shall unanimously and after

consulting the European Parliament adopt a decision laying down the provisions relating to the

system of own resources of the Union. In this context it may establish new categories of own

resources or abolish an existing category. That decision shall not enter into force until it is

approved by the Member States in accordance with their respective constitutional requirements.

The Council, acting by means of regulations in accordance with a special legislative procedure, shall

lay down implementing measures for the Union's own resources system in so far as this is provided

for in the decision adopted on the basis of the third paragraph. The Council shall act after obtaining

the consent of the European Parliament.

CHAPTER 2

THE MULTIANNUAL FINANCIAL FRAMEWORK

Article 312

1. The multiannual financial framework shall ensure that Union expenditure develops in an

orderly manner and within the limits of its own resources.

It shall be established for a period of at least five years.

The annual budget of the Union shall comply with the multiannual financial framework.

2. The Council, acting in accordance with a special legislative procedure, shall adopt a regulation

laying down the multiannual financial framework. The Council shall act unanimously after obtaining

the consent of the European Parliament, which shall be given by a majority of its component

members.

The European Council may, unanimously, adopt a decision authorising the Council to act by a

qualified majority when adopting the regulation referred to in the first subparagraph.

3. The financial framework shall determine the amounts of the annual ceilings on commitment

appropriations by category of expenditure and of the annual ceiling on payment appropriations. The

categories of expenditure, limited in number, shall correspond to the Union's major sectors of

activity.

The financial framework shall lay down any other provisions required for the annual budgetary

procedure to run smoothly.

4. Where no Council regulation determining a new financial framework has been adopted by the

end of the previous financial framework, the ceilings and other provisions corresponding to the last

year of that framework shall be extended until such time as that act is adopted.

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5. Throughout the procedure leading to the adoption of the financial framework, the European

Parliament, the Council and the Commission shall take any measure necessary to facilitate its

adoption.

CHAPTER 3

THE UNION'S ANNUAL BUDGET

Article 313

(ex Article 272(1), TEC)

The financial year shall run from 1 January to 31 December.

Article 314

(ex Article 272(2) to (10), TEC)

The European Parliament and the Council, acting in accordance with a special legislative procedure,

shall establish the Union's annual budget in accordance with the following provisions.

1. With the exception of the European Central Bank, each institution shall, before 1 July, draw up

estimates of its expenditure for the following financial year. The Commission shall consolidate these

estimates in a draft budget. which may contain different estimates.

The draft budget shall contain an estimate of revenue and an estimate of expenditure.

2. The Commission shall submit a proposal containing the draft budget to the European

Parliament and to the Council not later than 1 September of the year preceding that in which

the budget is to be implemented.

The Commission may amend the draft budget during the procedure until such time as the

Conciliation Committee, referred to in paragraph 5, is convened.

3. The Council shall adopt its position on the draft budget and forward it to the European

Parliament not later than 1 October of the year preceding that in which the budget is to be

implemented. The Council shall inform the European Parliament in full of the reasons which led

it to adopt its position.

4. If, within forty-two days of such communication, the European Parliament:

(a) approves the position of the Council, the budget shall be adopted;

(b) has not taken a decision, the budget shall be deemed to have been adopted;

forwarded to the Council and to the Commission. The President of the European Parliament,

in agreement with the President of the Council, shall immediately convene a meeting of the

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Conciliation Committee. However, if within ten days of the draft being forwarded the Council

informs the European Parliament that it has approved all its amendments, the Conciliation

Committee shall not meet.

5. The Conciliation Committee, which shall be composed of the members of the Council or their

representatives and an equal number of members representing the European Parliament, shall have

the task of reaching agreement on a joint text, by a qualified majority of the members of the Council

or their representatives and by a majority of the representatives of the European Parliament within

twenty-one days of its being convened, on the basis of the positions of the European Parliament and

the Council.

The Commission shall take part in the Conciliation Committee's proceedings and shall take all the

necessary initiatives with a view to reconciling the positions of the European Parliament and the

Council.

6. If, within the twenty-one days referred to in paragraph 5, the Conciliation Committee agrees on

a joint text, the European Parliament and the Council shall each have a period of fourteen days from

the date of that agreement in which to approve the joint text.

7. If, within the period of fourteen days referred to in paragraph 6:

(a) the European Parliament and the Council both approve the joint text or fail to take a decision, or

if one of these institutions approves the joint text while the other one fails to take a decision, the

budget shall be deemed to be definitively adopted in accordance with the joint text; or

(b) the European Parliament, acting by a majority of its component members, and the Council both

reject the joint text, or if one of these institutions rejects the joint text while the other one fails to

take a decision, a new draft budget shall be submitted by the Commission; or

while the Council approves it, a new draft budget shall be submitted by the Commission; or

(d) the European Parliament approves the joint text whilst the Council rejects it, the European

Parliament may, within fourteen days from the date of the rejection by the Council and

acting by a majority of its component members and three-fifths of the votes cast, decide to

confirm all or some of the amendments referred to in paragraph 4(c). Where a European

Parliament amendment is not confirmed, the position agreed in the Conciliation Committee

on the budget heading which is the subject of the amendment shall be retained. The budget

shall be deemed to be definitively adopted on this basis.

8. If, within the twenty-one days referred to in paragraph 5, the Conciliation Committee does not

agree on a joint text, a new draft budget shall be submitted by the Commission.

C 326/184 Official Journal of the European Union 26.10.2012

9. When the procedure provided for in this Article has been completed, the President of the

European Parliament shall declare that the budget has been definitively adopted.

10. Each institution shall exercise the powers conferred upon it under this Article in compliance

with the Treaties and the acts adopted thereunder, with particular regard to the Union's own

resources and the balance between revenue and expenditure.

Article 315

(ex Article 273 TEC)

If, at the beginning of a financial year, the budget has not yet been definitively adopted, a sum

equivalent to not more than one twelfth of the budget appropriations for the preceding financial year

may be spent each month in respect of any chapter of the budget in accordance with the provisions

of the Regulations made pursuant to Article 322; that sum shall not, however, exceed one twelfth of

the appropriations provided for in the same chapter of the draft budget.

The Council on a proposal by the Commission, may, provided that the other conditions laid down in

the first paragraph are observed, authorise expenditure in excess of one twelfth in accordance with

the regulations made pursuant to Article 322. The Council shall forward the decision immediately to

the European Parliament.

The decision referred to in the second paragraph shall lay down the necessary measures relating to

resources to ensure application of this Article, in accordance with the acts referred to in Article 311.

It shall enter into force thirty days following its adoption if the European Parliament, acting by a

majority of its component Members, has not decided to reduce this expenditure within that time-

limit.

Article 316

(ex Article 271 TEC)

In accordance with conditions to be laid down pursuant to Article 322, any appropriations, other

than those relating to staff expenditure, that are unexpended at the end of the financial year may be

carried forward to the next financial year only.

Appropriations shall be classified under different chapters grouping items of expenditure according to

their nature or purpose and subdivided in accordance with the regulations made pursuant to

Article 322.

The expenditure of the European Parliament, the European Council and the Council, the Commission

and the Court of Justice of the European Union shall be set out in separate parts of the budget,

without prejudice to special arrangements for certain common items of expenditure.

26.10.2012 Official Journal of the European Union C 326/185

CHAPTER 4

IMPLEMENTATION OF THE BUDGET AND DISCHARGE

Article 317

(ex Article 274 TEC)

The Commission shall implement the budget in cooperation with the Member States, in accordance

with the provisions of the regulations made pursuant to Article 322, on its own responsibility and

within the limits of the appropriations, having regard to the principles of sound financial

management. Member States shall cooperate with the Commission to ensure that the appropriations

are used in accordance with the principles of sound financial management.

The regulations shall lay down the control and audit obligations of the Member States in the

implementation of the budget and the resulting responsibilities. They shall also lay down the

responsibilities and detailed rules for each institution concerning its part in effecting its own expen

diture.

Within the budget, the Commission may, subject to the limits and conditions laid down in the

regulations made pursuant to Article 322, transfer appropriations from one chapter to another or

from one subdivision to another.

Article 318

(ex Article 275 TEC)

The Commission shall submit annually to the European Parliament and to the Council the accounts

of the preceding financial year relating to the implementation of the budget. The Commission shall

also forward to them a financial statement of the assets and liabilities of the Union.

The Commission shall also submit to the European Parliament and to the Council an evaluation

report on the Union's finances based on the results achieved, in particular in relation to the

indications given by the European Parliament and the Council pursuant to Article 319.

Article 319

(ex Article 276 TEC)

1. The European Parliament, acting on a recommendation from the Council, shall give a discharge

to the Commission in respect of the implementation of the budget. To this end, the Council and the

European Parliament in turn shall examine the accounts, the financial statement and the evaluation

report referred to in Article 318, the annual report by the Court of Auditors together with the replies

of the institutions under audit to the observations of the Court of Auditors, the statement of

assurance referred to in Article 287(1), second subparagraph and any relevant special reports by

the Court of Auditors.

C 326/186 Official Journal of the European Union 26.10.2012

2. Before giving a discharge to the Commission, or for any other purpose in connection with the

exercise of its powers over the implementation of the budget, the European Parliament may ask to

hear the Commission give evidence with regard to the execution of expenditure or the operation of

financial control systems. The Commission shall submit any necessary information to the European

Parliament at the latter's request.

3. The Commission shall take all appropriate steps to act on the observations in the decisions

giving discharge and on other observations by the European Parliament relating to the execution of

expenditure, as well as on comments accompanying the recommendations on discharge adopted by

the Council.

At the request of the European Parliament or the Council, the Commission shall report on the

measures taken in the light of these observations and comments and in particular on the instructions

given to the departments which are responsible for the implementation of the budget. These reports

shall also be forwarded to the Court of Auditors.

CHAPTER 5

COMMON PROVISIONS

Article 320

(ex Article 277 TEC)

The multiannual financial framework and the annual budget shall be drawn up in euro.

Article 321

(ex Article 278 TEC)

The Commission may, provided it notifies the competent authorities of the Member States

concerned, transfer into the currency of one of the Member States its holdings in the currency of

another Member State, to the extent necessary to enable them to be used for purposes which come

within the scope of the Treaties. The Commission shall as far as possible avoid making such transfers

if it possesses cash or liquid assets in the currencies which it needs.

The Commission shall deal with each Member State through the authority designated by the State

concerned. In carrying out financial operations the Commission shall employ the services of the bank

of issue of the Member State concerned or of any other financial institution approved by that State.

Article 322

(ex Article 279 TEC)

1. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, and after consulting the Court of Auditors, shall adopt by means of regulations:

(a) the financial rules which determine in particular the procedure to be adopted for establishing and

implementing the budget and for presenting and auditing accounts;

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(b) rules providing for checks on the responsibility of financial actors, in particular authorising

officers and accounting officers.

2. The Council, acting on a proposal from the Commission and after consulting the European

Parliament and the Court of Auditors, shall determine the methods and procedure whereby the

budget revenue provided under the arrangements relating to the Union's own resources shall be

made available to the Commission, and determine the measures to be applied, if need be, to meet

cash requirements.

Article 323

The European Parliament, the Council and the Commission shall ensure that the financial means are

made available to allow the Union to fulfil its legal obligations in respect of third parties.

Article 324

Regular meetings between the Presidents of the European Parliament, the Council and the

Commission shall be convened, on the initiative of the Commission, under the budgetary procedures

referred to in this Title. The Presidents shall take all the necessary steps to promote consultation and

the reconciliation of the positions of the institutions over which they preside in order to facilitate the

implementation of this Title.

CHAPTER 6

COMBATTING FRAUD

Article 325

(ex Article 280 TEC)

1. The Union and the Member States shall counter fraud and any other illegal activities affecting

the financial interests of the Union through measures to be taken in accordance with this Article,

which shall act as a deterrent and be such as to afford effective protection in the Member States, and

in all the Union's institutions, bodies, offices and agencies.

2. Member States shall take the same measures to counter fraud affecting the financial interests of

the Union as they take to counter fraud affecting their own financial interests.

3. Without prejudice to other provisions of the Treaties, the Member States shall coordinate their

action aimed at protecting the financial interests of the Union against fraud. To this end they shall

organise, together with the Commission, close and regular cooperation between the competent

authorities.

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4. The European Parliament and the Council, acting in accordance with the ordinary legislative

procedure, after consulting the Court of Auditors, shall adopt the necessary measures in the fields of

the prevention of and fight against fraud affecting the financial interests of the Union with a view to

affording effective and equivalent protection in the Member States and in all the Union's institutions,

bodies, offices and agencies.

5. The Commission, in cooperation with Member States, shall each year submit to the European

Parliament and to the Council a report on the measures taken for the implementation of this Article.

TITLE III

ENHANCED COOPERATION

Article 326

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

Any enhanced cooperation shall comply with the Treaties and Union law.

Such cooperation shall not undermine the internal market or economic, social and territorial

cohesion. It shall not constitute a barrier to or discrimination in trade between Member States,

nor shall it distort competition between them.

Article 327

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

Any enhanced cooperation shall respect the competences, rights and obligations of those Member

States which do not participate in it. Those Member States shall not impede its implementation by

the participating Member States.

Article 328

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

1. When enhanced cooperation is being established, it shall be open to all Member States, subject

to compliance with any conditions of participation laid down by the authorising decision. It shall

also be open to them at any other time, subject to compliance with the acts already adopted within

that framework, in addition to those conditions.

The Commission and the Member States participating in enhanced cooperation shall ensure that they

promote participation by as many Member States as possible.

2. The Commission and, where appropriate, the High Representative of the Union for Foreign

Affairs and Security Policy shall keep the European Parliament and the Council regularly informed

regarding developments in enhanced cooperation.

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Article 329

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

1. Member States which wish to establish enhanced cooperation between themselves in one of the

areas covered by the Treaties, with the exception of fields of exclusive competence and the common

foreign and security policy, shall address a request to the Commission, specifying the scope and

objectives of the enhanced cooperation proposed. The Commission may submit a proposal to the

Council to that effect. In the event of the Commission not submitting a proposal, it shall inform the

Member States concerned of the reasons for not doing so.

Authorisation to proceed with the enhanced cooperation referred to in the first subparagraph shall be

granted by the Council, on a proposal from the Commission and after obtaining the consent of the

European Parliament.

2. The request of the Member States which wish to establish enhanced cooperation between

themselves within the framework of the common foreign and security policy shall be addressed

to the Council. It shall be forwarded to the High Representative of the Union for Foreign Affairs and

Security Policy, who shall give an opinion on whether the enhanced cooperation proposed is

consistent with the Union's common foreign and security policy, and to the Commission, which

shall give its opinion in particular on whether the enhanced cooperation proposed is consistent with

other Union policies. It shall also be forwarded to the European Parliament for information.

Authorisation to proceed with enhanced cooperation shall be granted by a decision of the Council

acting unanimously.

Article 330

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

All members of the Council may participate in its deliberations, but only members of the Council

representing the Member States participating in enhanced cooperation shall take part in the vote.

Unanimity shall be constituted by the votes of the representatives of the participating Member States

only.

A qualified majority shall be defined in accordance with Article 238(3).

Article 331

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

1. Any Member State which wishes to participate in enhanced cooperation in progress in one of

the areas referred to in Article 329(1) shall notify its intention to the Council and the Commission.

The Commission shall, within four months of the date of receipt of the notification, confirm the

participation of the Member State concerned. It shall note where necessary that the conditions of

participation have been fulfilled and shall adopt any transitional measures necessary with regard to

the application of the acts already adopted within the framework of enhanced cooperation.

C 326/190 Official Journal of the European Union 26.10.2012

However, if the Commission considers that the conditions of participation have not been fulfilled, it

shall indicate the arrangements to be adopted to fulfil those conditions and shall set a deadline for re-

examining the request. On the expiry of that deadline, it shall re-examine the request, in accordance

with the procedure set out in the second subparagraph. If the Commission considers that the

conditions of participation have still not been met, the Member State concerned may refer the

matter to the Council, which shall decide on the request. The Council shall act in accordance

with Article 330. It may also adopt the transitional measures referred to in the second subparagraph

on a proposal from the Commission.

2. Any Member State which wishes to participate in enhanced cooperation in progress in the

framework of the common foreign and security policy shall notify its intention to the Council, the

High Representative of the Union for Foreign Affairs and Security Policy and the Commission.

The Council shall confirm the participation of the Member State concerned, after consulting the High

Representative of the Union for Foreign Affairs and Security Policy and after noting, where necessary,

that the conditions of participation have been fulfilled. The Council, on a proposal from the High

Representative, may also adopt any transitional measures necessary with regard to the application of

the acts already adopted within the framework of enhanced cooperation. However, if the Council

considers that the conditions of participation have not been fulfilled, it shall indicate the

arrangements to be adopted to fulfil those conditions and shall set a deadline for re-examining

the request for participation.

For the purposes of this paragraph, the Council shall act unanimously and in accordance with

Article 330.

Article 332

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

Expenditure resulting from implementation of enhanced cooperation, other than administrative costs

entailed for the institutions, shall be borne by the participating Member States, unless all members of

the Council, acting unanimously after consulting the European Parliament, decide otherwise.

Article 333

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

1. Where a provision of the Treaties which may be applied in the context of enhanced

cooperation stipulates that the Council shall act unanimously, the Council, acting unanimously in

accordance with the arrangements laid down in Article 330, may adopt a decision stipulating that it

will act by a qualified majority.

2. Where a provision of the Treaties which may be applied in the context of enhanced

cooperation stipulates that the Council shall adopt acts under a special legislative procedure, the

Council, acting unanimously in accordance with the arrangements laid down in Article 330, may

adopt a decision stipulating that it will act under the ordinary legislative procedure. The Council shall

act after consulting the European Parliament.

26.10.2012 Official Journal of the European Union C 326/191

3. Paragraphs 1 and 2 shall not apply to decisions having military or defence implications.

Article 334

(ex Articles 27a to 27e, 40 to 40b and 43 to 45 TEU and ex Articles 11 and 11a TEC)

The Council and the Commission shall ensure the consistency of activities undertaken in the context

of enhanced cooperation and the consistency of such activities with the policies of the Union, and

shall cooperate to that end.

PART SEVEN

GENERAL AND FINAL PROVISIONS

Article 335

(ex Article 282 TEC)

In each of the Member States, the Union shall enjoy the most extensive legal capacity accorded to

legal persons under their laws; it may, in particular, acquire or dispose of movable and immovable

property and may be a party to legal proceedings. To this end, the Union shall be represented by the

Commission. However, the Union shall be represented by each of the institutions, by virtue of their

administrative autonomy, in matters relating to their respective operation.

Article 336

(ex Article 283 TEC)

The European Parliament and the Council shall, acting by means of regulations in accordance with

the ordinary legislative procedure and after consulting the other institutions concerned, lay down the

Staff Regulations of Officials of the European Union and the Conditions of Employment of other

servants of the Union.

Article 337

(ex Article 284 TEC)

The Commission may, within the limits and under conditions laid down by the Council acting by a

simple majority in accordance with the provisions of the Treaties, collect any information and carry

out any checks required for the performance of the tasks entrusted to it.

Article 338

(ex Article 285 TEC)

1. Without prejudice to Article 5 of the Protocol on the Statute of the European System of Central

Banks and of the European Central Bank, the European Parliament and the Council, acting in

accordance with the ordinary legislative procedure, shall adopt measures for the production of

statistics where necessary for the performance of the activities of the Union.

C 326/192 Official Journal of the European Union 26.10.2012

2. The production of Union statistics shall conform to impartiality, reliability, objectivity, scientific

independence, cost-effectiveness and statistical confidentiality; it shall not entail excessive burdens on

economic operators.

Article 339

(ex Article 287 TEC)

The members of the institutions of the Union, the members of committees, and the officials and

other servants of the Union shall be required, even after their duties have ceased, not to disclose

information of the kind covered by the obligation of professional secrecy, in particular information

about undertakings, their business relations or their cost components.

Article 340

(ex Article 288 TEC)

The contractual liability of the Union shall be governed by the law applicable to the contract in

question.

In the case of non-contractual liability, the Union shall, in accordance with the general principles

common to the laws of the Member States, make good any damage caused by its institutions or by

its servants in the performance of their duties.

Notwithstanding the second paragraph, the European Central Bank shall, in accordance with the

general principles common to the laws of the Member States, make good any damage caused by it or

by its servants in the performance of their duties.

The personal liability of its servants towards the Union shall be governed by the provisions laid

down in their Staff Regulations or in the Conditions of Employment applicable to them.

Article 341

(ex Article 289 TEC)

The seat of the institutions of the Union shall be determined by common accord of the governments

of the Member States.

Article 342

(ex Article 290 TEC)

The rules governing the languages of the institutions of the Union shall, without prejudice to the

provisions contained in the Statute of the Court of Justice of the European Union, be determined by

the Council, acting unanimously by means of regulations.

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Article 343

(ex Article 291 TEC)

The Union shall enjoy in the territories of the Member States such privileges and immunities as are

necessary for the performance of its tasks, under the conditions laid down in the Protocol of 8 April

1965 on the privileges and immunities of the European Union. The same shall apply to the European

Central Bank and the European Investment Bank.

Article 344

(ex Article 292 TEC)

Member States undertake not to submit a dispute concerning the interpretation or application of the

Treaties to any method of settlement other than those provided for therein.

Article 345

(ex Article 295 TEC)

The Treaties shall in no way prejudice the rules in Member States governing the system of property

ownership.

Article 346

(ex Article 296 TEC)

1. The provisions of the Treaties shall not preclude the application of the following rules:

(a) no Member State shall be obliged to supply information the disclosure of which it considers

contrary to the essential interests of its security;

(b) any Member State may take such measures as it considers necessary for the protection of the

essential interests of its security which are connected with the production of or trade in arms,

munitions and war material; such measures shall not adversely affect the conditions of

competition in the internal market regarding products which are not intended for specifically

military purposes.

2. The Council may, acting unanimously on a proposal from the Commission, make changes to

the list, which it drew up on 15 April 1958, of the products to which the provisions of paragraph

1(b) apply.

Article 347

(ex Article 297 TEC)

Member States shall consult each other with a view to taking together the steps needed to prevent

the functioning of the internal market being affected by measures which a Member State may be

called upon to take in the event of serious internal disturbances affecting the maintenance of law and

order, in the event of war, serious international tension constituting a threat of war, or in order to

carry out obligations it has accepted for the purpose of maintaining peace and international security.

C 326/194 Official Journal of the European Union 26.10.2012

Article 348

(ex Article 298 TEC)

If measures taken in the circumstances referred to in Articles 346 and 347 have the effect of

distorting the conditions of competition in the internal market, the Commission shall, together

with the State concerned, examine how these measures can be adjusted to the rules laid down in

the Treaties.

By way of derogation from the procedure laid down in Articles 258 and 259, the Commission or

any Member State may bring the matter directly before the Court of Justice if it considers that

another Member State is making improper use of the powers provided for in Articles 346 and 347.

The Court of Justice shall give its ruling in camera.

Article 349

(ex Article 299(2), second, third and fourth subparagraphs, TEC)

Taking account of the structural social and economic situation of Guadeloupe, French Guiana,

Martinique, Réunion, Saint-Barthélemy, Saint-Martin, the Azores, Madeira and the Canary Islands,

which is compounded by their remoteness, insularity, small size, difficult topography and climate,

economic dependence on a few products, the permanence and combination of which severely

restrain their development, the Council, on a proposal from the Commission and after consulting

the European Parliament, shall adopt specific measures aimed, in particular, at laying down the

conditions of application of the Treaties to those regions, including common policies. Where the

specific measures in question are adopted by the Council in accordance with a special legislative

procedure, it shall also act on a proposal from the Commission and after consulting the European

Parliament.

The measures referred to in the first paragraph concern in particular areas such as customs and trade

policies, fiscal policy, free zones, agriculture and fisheries policies, conditions for supply of raw

materials and essential consumer goods, State aids and conditions of access to structural funds

and to horizontal Union programmes.

The Council shall adopt the measures referred to in the first paragraph taking into account the

special characteristics and constraints of the outermost regions without undermining the integrity

and the coherence of the Union legal order, including the internal market and common policies.

Article 350

(ex Article 306 TEC)

The provisions of the Treaties shall not preclude the existence or completion of regional unions

between Belgium and Luxembourg, or between Belgium, Luxembourg and the Netherlands, to the

extent that the objectives of these regional unions are not attained by application of the Treaties.

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Article 351

(ex Article 307 TEC)

The rights and obligations arising from agreements concluded before 1 January 1958 or, for acceding

States, before the date of their accession, between one or more Member States on the one hand, and

one or more third countries on the other, shall not be affected by the provisions of the Treaties.

To the extent that such agreements are not compatible with the Treaties, the Member State or States

concerned shall take all appropriate steps to eliminate the incompatibilities established. Member

States shall, where necessary, assist each other to this end and shall, where appropriate, adopt a

common attitude.

In applying the agreements referred to in the first paragraph, Member States shall take into account

the fact that the advantages accorded under the Treaties by each Member State form an integral part

of the establishment of the Union and are thereby inseparably linked with the creation of common

institutions, the conferring of powers upon them and the granting of the same advantages by all the

other Member States.

Article 352

(ex Article 308 TEC)

1. If action by the Union should prove necessary, within the framework of the policies defined in

the Treaties, to attain one of the objectives set out in the Treaties, and the Treaties have not provided

the necessary powers, the Council, acting unanimously on a proposal from the Commission and after

obtaining the consent of the European Parliament, shall adopt the appropriate measures. Where the

measures in question are adopted by the Council in accordance with a special legislative procedure, it

shall also act unanimously on a proposal from the Commission and after obtaining the consent of

the European Parliament.

2. Using the procedure for monitoring the subsidiarity principle referred to in Article 5(3) of the

Treaty on European Union, the Commission shall draw national Parliaments' attention to proposals

based on this Article.

3. Measures based on this Article shall not entail harmonisation of Member States' laws or

regulations in cases where the Treaties exclude such harmonisation.

4. This Article cannot serve as a basis for attaining objectives pertaining to the common foreign

and security policy and any acts adopted pursuant to this Article shall respect the limits set out in

Article 40, second paragraph, of the Treaty on European Union.

C 326/196 Official Journal of the European Union 26.10.2012

Article 353

Article 48(7) of the Treaty on European Union shall not apply to the following Articles:

— Article 311, third and fourth paragraphs,

— Article 312(2), first subparagraph,

— Article 352, and

— Article 354.

Article 354

(ex Article 309 TEC)

For the purposes of Article 7 of the Treaty on European Union on the suspension of certain rights

resulting from Union membership, the member of the European Council or of the Council repre

senting the Member State in question shall not take part in the vote and the Member State in

question shall not be counted in the calculation of the one third or four fifths of Member States

referred to in paragraphs 1 and 2 of that Article. Abstentions by members present in person or

represented shall not prevent the adoption of decisions referred to in paragraph 2 of that Article.

For the adoption of the decisions referred to in paragraphs 3 and 4 of Article 7 of the Treaty on

European Union, a qualified majority shall be defined in accordance with Article 238(3)(b) of this

Treaty.

Where, following a decision to suspend voting rights adopted pursuant to paragraph 3 of Article 7 of

the Treaty on European Union, the Council acts by a qualified majority on the basis of a provision of

the Treaties, that qualified majority shall be defined in accordance with Article 238(3)(b) of this

Treaty, or, where the Council acts on a proposal from the Commission or from the High Repre

sentative of the Union for Foreign Affairs and Security Policy, in accordance with Article 238(3)(a).

For the purposes of Article 7 of the Treaty on European Union, the European Parliament shall act by

a two-thirds majority of the votes cast, representing the majority of its component Members.

Article 355

(ex Article 299(2), first subparagraph, and Article 299(3) to (6) TEC)

In addition to the provisions of Article 52 of the Treaty on European Union relating to the territorial

scope of the Treaties, the following provisions shall apply:

1. The provisions of the Treaties shall apply to Guadeloupe, French Guiana, Martinique, Réunion,

Saint-Barthélemy, Saint-Martin, the Azores, Madeira and the Canary Islands in accordance with

Article 349.

2. The special arrangements for association set out in Part Four shall apply to the overseas

countries and territories listed in Annex II.

The Treaties shall not apply to those overseas countries and territories having special relations with

the United Kingdom of Great Britain and Northern Ireland which are not included in the afore

mentioned list.

26.10.2012 Official Journal of the European Union C 326/197

3. The provisions of the Treaties shall apply to the European territories for whose external

relations a Member State is responsible.

4. The provisions of the Treaties shall apply to the Åland Islands in accordance with the

provisions set out in Protocol 2 to the Act concerning the conditions of accession of the

Republic of Austria, the Republic of Finland and the Kingdom of Sweden.

5. Notwithstanding Article 52 of the Treaty on European Union and paragraphs 1 to 4 of this

Article:

(a) the Treaties shall not apply to the Faeroe Islands;

(b) the Treaties shall not apply to the United Kingdom Sovereign Base Areas of Akrotiri and

Dhekelia in Cyprus except to the extent necessary to ensure the implementation of the

arrangements set out in the Protocol on the Sovereign Base Areas of the United Kingdom of

Great Britain and Northern Ireland in Cyprus annexed to the Act concerning the conditions of

accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of

Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of

Poland, the Republic of Slovenia and the Slovak Republic to the European Union and in

accordance with the terms of that Protocol;

ensure the implementation of the arrangements for those islands set out in the Treaty concerning

the accession of new Member States to the European Economic Community and to the European

Atomic Energy Community signed on 22 January 1972.

6. The European Council may, on the initiative of the Member State concerned, adopt a decision

amending the status, with regard to the Union, of a Danish, French or Netherlands country or

territory referred to in paragraphs 1 and 2. The European Council shall act unanimously after

consulting the Commission.

Article 356

(ex Article 312 TEC)

This Treaty is concluded for an unlimited period.

Article 357

(ex Article 313 TEC)

This Treaty shall be ratified by the High Contracting Parties in accordance with their respective

constitutional requirements. The Instruments of ratification shall be deposited with the Government

of the Italian Republic.

C 326/198 Official Journal of the European Union 26.10.2012

This Treaty shall enter into force on the first day of the month following the deposit of the

Instrument of ratification by the last signatory State to take this step. If, however, such deposit is

made less than 15 days before the beginning of the following month, this Treaty shall not enter into

force until the first day of the second month after the date of such deposit.

Article 358

The provisions of Article 55 of the Treaty on European Union shall apply to this Treaty.

IN WITNESS WHEREOF

, the undersigned Plenipotentiaries have signed this Treaty.

Done at Rome this twenty-fifth day of March in the year one thousand nine hundred and fifty-seven.

(List of signatories not reproduced)

26.10.2012 Official Journal of the European Union C 326/199

PROTOCOLS

26.10.2012 Official Journal of the European Union C 326/201

PROTOCOL (No 1)

ON THE ROLE OF NATIONAL PARLIAMENTS IN THE

EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

RECALLING

that the way in which national Parliaments scrutinise their governments in relation to the

activities of the Union is a matter for the particular constitutional organisation and practice of each

Member State,

DESIRING

to encourage greater involvement of national Parliaments in the activities of the European

Union and to enhance their ability to express their views on draft legislative acts of the Union as well

as on other matters which may be of particular interest to them,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union, to the Treaty on the Functioning of the European Union and to the Treaty establishing the

European Atomic Energy Community:

TITLE I

INFORMATION FOR NATIONAL PARLIAMENTS

Article 1

Commission consultation documents (green and white papers and communications) shall be

forwarded directly by the Commission to national Parliaments upon publication. The Commission

shall also forward the annual legislative programme as well as any other instrument of legislative

planning or policy to national Parliaments, at the same time as to the European Parliament and the

Council.

Article 2

Draft legislative acts sent to the European Parliament and to the Council shall be forwarded to

national Parliaments.

For the purposes of this Protocol, ‘draft legislative acts’ shall mean proposals from the Commission,

initiatives from a group of Member States, initiatives from the European Parliament, requests from

the Court of Justice, recommendations from the European Central Bank and requests from the

European Investment Bank, for the adoption of a legislative act.

Draft legislative acts originating from the Commission shall be forwarded to national Parliaments

directly by the Commission, at the same time as to the European Parliament and the Council.

Draft legislative acts originating from the European Parliament shall be forwarded to national

Parliaments directly by the European Parliament.

26.10.2012 Official Journal of the European Union C 326/203

Draft legislative acts originating from a group of Member States, the Court of Justice, the European

Central Bank or the European Investment Bank shall be forwarded to national Parliaments by the

Council.

Article 3

National Parliaments may send to the Presidents of the European Parliament, the Council and the

Commission a reasoned opinion on whether a draft legislative act complies with the principle of

subsidiarity, in accordance with the procedure laid down in the Protocol on the application of the

principles of subsidiarity and proportionality.

If the draft legislative act originates from a group of Member States, the President of the Council shall

forward the reasoned opinion or opinions to the governments of those Member States.

If the draft legislative act originates from the Court of Justice, the European Central Bank or the

European Investment Bank, the President of the Council shall forward the reasoned opinion or

opinions to the institution or body concerned.

Article 4

An eight-week period shall elapse between a draft legislative act being made available to national

Parliaments in the official languages of the Union and the date when it is placed on a provisional

agenda for the Council for its adoption or for adoption of a position under a legislative procedure.

Exceptions shall be possible in cases of urgency, the reasons for which shall be stated in the act or

position of the Council. Save in urgent cases for which due reasons have been given, no agreement

may be reached on a draft legislative act during those eight weeks. Save in urgent cases for which due

reasons have been given, a ten-day period shall elapse between the placing of a draft legislative act on

the provisional agenda for the Council and the adoption of a position.

Article 5

The agendas for and the outcome of meetings of the Council, including the minutes of meetings

where the Council is deliberating on draft legislative acts, shall be forwarded directly to national

Parliaments, at the same time as to Member States' governments.

Article 6

When the European Council intends to make use of the first or second subparagraphs of

Article 48(7) of the Treaty on European Union, national Parliaments shall be informed of the

initiative of the European Council at least six months before any decision is adopted.

Article 7

The Court of Auditors shall forward its annual report to national Parliaments, for information, at the

same time as to the European Parliament and to the Council.

C 326/204 Official Journal of the European Union 26.10.2012

Article 8

Where the national Parliamentary system is not unicameral, Articles 1 to 7 shall apply to the

component chambers.

TITLE II

INTERPARLIAMENTARY COOPERATION

Article 9

The European Parliament and national Parliaments shall together determine the organisation and

promotion of effective and regular interparliamentary cooperation within the Union.

Article 10

A conference of Parliamentary Committees for Union Affairs may submit any contribution it deems

appropriate for the attention of the European Parliament, the Council and the Commission. That

conference shall in addition promote the exchange of information and best practice between national

Parliaments and the European Parliament, including their special committees. It may also organise

interparliamentary conferences on specific topics, in particular to debate matters of common foreign

and security policy, including common security and defence policy. Contributions from the

conference shall not bind national Parliaments and shall not prejudge their positions.

26.10.2012 Official Journal of the European Union C 326/205

PROTOCOL (No 2)

ON THE APPLICATION OF THE PRINCIPLES OF

SUBSIDIARITY AND PROPORTIONALITY

THE HIGH CONTRACTING PARTIES,

WISHING

to ensure that decisions are taken as closely as possible to the citizens of the Union,

RESOLVED

to establish the conditions for the application of the principles of subsidiarity and propor

tionality, as laid down in Article 5 of the Treaty on European Union, and to establish a system for

monitoring the application of those principles,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

Each institution shall ensure constant respect for the principles of subsidiarity and proportionality, as

laid down in Article 5 of the Treaty on European Union.

Article 2

Before proposing legislative acts, the Commission shall consult widely. Such consultations shall,

where appropriate, take into account the regional and local dimension of the action envisaged. In

cases of exceptional urgency, the Commission shall not conduct such consultations. It shall give

reasons for its decision in its proposal.

Article 3

For the purposes of this Protocol, "draft legislative acts" shall mean proposals from the Commission,

initiatives from a group of Member States, initiatives from the European Parliament, requests from

the Court of Justice, recommendations from the European Central Bank and requests from the

European Investment Bank, for the adoption of a legislative act.

Article 4

The Commission shall forward its draft legislative acts and its amended drafts to national Parliaments

at the same time as to the Union legislator.

The European Parliament shall forward its draft legislative acts and its amended drafts to national

Parliaments.

The Council shall forward draft legislative acts originating from a group of Member States, the Court

of Justice, the European Central Bank or the European Investment Bank and amended drafts to

national Parliaments.

C 326/206 Official Journal of the European Union 26.10.2012

Upon adoption, legislative resolutions of the European Parliament and positions of the Council shall

be forwarded by them to national Parliaments.

Article 5

Draft legislative acts shall be justified with regard to the principles of subsidiarity and proportionality.

Any draft legislative act should contain a detailed statement making it possible to appraise

compliance with the principles of subsidiarity and proportionality. This statement should contain

some assessment of the proposal's financial impact and, in the case of a directive, of its implications

for the rules to be put in place by Member States, including, where necessary, the regional legislation.

The reasons for concluding that a Union objective can be better achieved at Union level shall be

substantiated by qualitative and, wherever possible, quantitative indicators. Draft legislative acts shall

take account of the need for any burden, whether financial or administrative, falling upon the Union,

national governments, regional or local authorities, economic operators and citizens, to be minimised

and commensurate with the objective to be achieved.

Article 6

Any national Parliament or any chamber of a national Parliament may, within eight weeks from the

date of transmission of a draft legislative act, in the official languages of the Union, send to the

Presidents of the European Parliament, the Council and the Commission a reasoned opinion stating

why it considers that the draft in question does not comply with the principle of subsidiarity. It will

be for each national Parliament or each chamber of a national Parliament to consult, where appro

priate, regional parliaments with legislative powers.

If the draft legislative act originates from a group of Member States, the President of the Council shall

forward the opinion to the governments of those Member States.

If the draft legislative act originates from the Court of Justice, the European Central Bank or the

European Investment Bank, the President of the Council shall forward the opinion to the institution

or body concerned.

Article 7

1. The European Parliament, the Council and the Commission, and, where appropriate, the group

of Member States, the Court of Justice, the European Central Bank or the European Investment Bank,

if the draft legislative act originates from them, shall take account of the reasoned opinions issued by

national Parliaments or by a chamber of a national Parliament.

Each national Parliament shall have two votes, shared out on the basis of the national Parliamentary

system. In the case of a bicameral Parliamentary system, each of the two chambers shall have one

vote.

26.10.2012 Official Journal of the European Union C 326/207

2. Where reasoned opinions on a draft legislative act's non-compliance with the principle of

subsidiarity represent at least one third of all the votes allocated to the national Parliaments in

accordance with the second subparagraph of paragraph 1, the draft must be reviewed. This

threshold shall be a quarter in the case of a draft legislative act submitted on the basis of Article 76

of the Treaty on the Functioning of the European Union on the area of freedom, security and justice.

After such review, the Commission or, where appropriate, the group of Member States, the European

Parliament, the Court of Justice, the European Central Bank or the European Investment Bank, if the

draft legislative act originates from them, may decide to maintain, amend or withdraw the draft.

Reasons must be given for this decision.

3. Furthermore, under the ordinary legislative procedure, where reasoned opinions on the non-

compliance of a proposal for a legislative act with the principle of subsidiarity represent at least a

simple majority of the votes allocated to the national Parliaments in accordance with the second

subparagraph of paragraph 1, the proposal must be reviewed. After such review, the Commission

may decide to maintain, amend or withdraw the proposal.

If it chooses to maintain the proposal, the Commission will have, in a reasoned opinion, to justify

why it considers that the proposal complies with the principle of subsidiarity. This reasoned opinion,

as well as the reasoned opinions of the national Parliaments, will have to be submitted to the Union

legislator, for consideration in the procedure:

(a) before concluding the first reading, the legislator (the European Parliament and the Council) shall

consider whether the legislative proposal is compatible with the principle of subsidiarity, taking

particular account of the reasons expressed and shared by the majority of national Parliaments as

well as the reasoned opinion of the Commission;

(b) if, by a majority of 55 % of the members of the Council or a majority of the votes cast in the

European Parliament, the legislator is of the opinion that the proposal is not compatible with the

principle of subsidiarity, the legislative proposal shall not be given further consideration.

Article 8

The Court of Justice of the European Union shall have jurisdiction in actions on grounds of

infringement of the principle of subsidiarity by a legislative act, brought in accordance with the

rules laid down in Article 263 of the Treaty on the Functioning of the European Union by Member

States, or notified by them in accordance with their legal order on behalf of their national Parliament

or a chamber thereof.

In accordance with the rules laid down in the said Article, the Committee of the Regions may also

bring such actions against legislative acts for the adoption of which the Treaty on the Functioning of

the European Union provides that it be consulted.

C 326/208 Official Journal of the European Union 26.10.2012

Article 9

The Commission shall submit each year to the European Council, the European Parliament, the

Council and national Parliaments a report on the application of Article 5 of the Treaty on European

Union. This annual report shall also be forwarded to the Economic and Social Committee and the

Committee of the Regions.

26.10.2012 Official Journal of the European Union C 326/209

PROTOCOL (No 3)

ON THE STATUTE OF THE COURT OF JUSTICE OF

THE EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

DESIRING

to lay down the Statute of the Court of Justice of the European Union provided for in

Article 281 of the Treaty on the Functioning of the European Union,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union, the Treaty on the Functioning of the European Union and the Treaty establishing the

European Atomic Energy Community:

Article 1

The Court of Justice of the European Union shall be constituted and shall function in accordance

with the provisions of the Treaties, of the Treaty establishing the European Atomic Energy

Community (the EAEC Treaty) and of this Statute.

TITLE I

JUDGES AND ADVOCATES-GENERAL

Article 2

Before taking up his duties each Judge shall, before the Court of Justice sitting in open court, take an

oath to perform his duties impartially and conscientiously and to preserve the secrecy of the deliber

ations of the Court.

Article 3

The Judges shall be immune from legal proceedings. After they have ceased to hold office, they shall

continue to enjoy immunity in respect of acts performed by them in their official capacity, including

words spoken or written.

The Court of Justice, sitting as a full Court, may waive the immunity. If the decision concerns a

member of the General Court or of a specialised court, the Court shall decide after consulting the

court concerned.

Where immunity has been waived and criminal proceedings are instituted against a Judge, he shall be

tried, in any of the Member States, only by the court competent to judge the members of the highest

national judiciary.

C 326/210 Official Journal of the European Union 26.10.2012

Articles 11 to 14 and Article 17 of the Protocol on the privileges and immunities of the European

Union shall apply to the Judges, Advocates-General, Registrar and Assistant Rapporteurs of the Court

of Justice of the European Union, without prejudice to the provisions relating to immunity from legal

proceedings of Judges which are set out in the preceding paragraphs.

Article 4

The Judges may not hold any political or administrative office.

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

granted by the Council, acting by a simple majority.

When taking up their duties, they shall give a solemn undertaking that, both during and after their

term of office, they will respect the obligations arising therefrom, in particular the duty to behave

with integrity and discretion as regards the acceptance, after they have ceased to hold office, of

certain appointments or benefits.

Any doubt on this point shall be settled by decision of the Court of Justice. If the decision concerns a

member of the General Court or of a specialised court, the Court shall decide after consulting the

court concerned.

Article 5

Apart from normal replacement, or death, the duties of a Judge shall end when he resigns.

Where a Judge resigns, his letter of resignation shall be addressed to the President of the Court of

Justice for transmission to the President of the Council. Upon this notification a vacancy shall arise

on the bench.

Save where Article 6 applies, a Judge shall continue to hold office until his successor takes up his

duties.

Article 6

A Judge may be deprived of his office or of his right to a pension or other benefits in its stead only

if, in the unanimous opinion of the Judges and Advocates-General of the Court of Justice, he no

longer fulfils the requisite conditions or meets the obligations arising from his office. The Judge

concerned shall not take part in any such deliberations. If the person concerned is a member of the

General Court or of a specialised court, the Court shall decide after consulting the court concerned.

The Registrar of the Court shall communicate the decision of the Court to the President of the

European Parliament and to the President of the Commission and shall notify it to the President of

the Council.

In the case of a decision depriving a Judge of his office, a vacancy shall arise on the bench upon this

latter notification.

26.10.2012 Official Journal of the European Union C 326/211

Article 7

A Judge who is to replace a member of the Court whose term of office has not expired shall be

appointed for the remainder of his predecessor’s term.

Article 8

The provisions of Articles 2 to 7 shall apply to the Advocates-General.

TITLE II

ORGANISATION OF THE COURT OF JUSTICE

Article 9

When, every three years, the Judges are partially replaced, 14 and 13 Judges shall be replaced

alternately.

When, every three years, the Advocates-General are partially replaced, four Advocates-General shall

be replaced on each occasion.

Article 10

The Registrar shall take an oath before the Court of Justice to perform his duties impartially and

conscientiously and to preserve the secrecy of the deliberations of the Court of Justice.

Article 11

The Court of Justice shall arrange for replacement of the Registrar on occasions when he is prevented

from attending the Court of Justice.

Article 12

Officials and other servants shall be attached to the Court of Justice to enable it to function. They

shall be responsible to the Registrar under the authority of the President.

Article 13

At the request of the Court of Justice, the European Parliament and the Council may, acting in

accordance with the ordinary legislative procedure, provide for the appointment of Assistant

Rapporteurs and lay down the rules governing their service. The Assistant Rapporteurs may be

required, under conditions laid down in the Rules of Procedure, to participate in preparatory

inquiries in cases pending before the Court and to cooperate with the Judge who acts as Rapporteur.

The Assistant Rapporteurs shall be chosen from persons whose independence is beyond doubt and

who possess the necessary legal qualifications; they shall be appointed by the Council, acting by a

simple majority. They shall take an oath before the Court to perform their duties impartially and

conscientiously and to preserve the secrecy of the deliberations of the Court.

C 326/212 Official Journal of the European Union 26.10.2012

Article 14

The Judges, the Advocates-General and the Registrar shall be required to reside at the place where the

Court of Justice has its seat.

Article 15

The Court of Justice shall remain permanently in session. The duration of the judicial vacations shall

be determined by the Court with due regard to the needs of its business.

Article 16

The Court of Justice shall form chambers consisting of three and five Judges. The Judges shall elect

the Presidents of the chambers from among their number. The Presidents of the chambers of five

Judges shall be elected for three years. They may be re-elected once.

The Grand Chamber shall consist of 13 Judges. It shall be presided over by the President of the

Court. The Presidents of the chambers of five Judges and other Judges appointed in accordance with

the conditions laid down in the Rules of Procedure shall also form part of the Grand Chamber.

The Court shall sit in a Grand Chamber when a Member State or an institution of the Union that is

party to the proceedings so requests.

The Court shall sit as a full Court where cases are brought before it pursuant to Article 228(2),

Article 245(2), Article 247 or Article 286(6) of the Treaty on the Functioning of the European

Union.

Moreover, where it considers that a case before it is of exceptional importance, the Court may decide,

after hearing the Advocate-General, to refer the case to the full Court.

Article 17

Decisions of the Court of Justice shall be valid only when an uneven number of its members is

sitting in the deliberations.

Decisions of the chambers consisting of either three or five Judges shall be valid only if they are

taken by three Judges.

Decisions of the Grand Chamber shall be valid only if nine Judges are sitting.

Decisions of the full Court shall be valid only if 15 Judges are sitting.

In the event of one of the Judges of a chamber being prevented from attending, a Judge of another

chamber may be called upon to sit in accordance with conditions laid down in the Rules of

Procedure.

26.10.2012 Official Journal of the European Union C 326/213

Article 18

No Judge or Advocate-General may take part in the disposal of any case in which he has previously

taken part as agent or adviser or has acted for one of the parties, or in which he has been called

upon to pronounce as a member of a court or tribunal, of a commission of inquiry or in any other

capacity.

If, for some special reason, any Judge or Advocate-General considers that he should not take part in

the judgment or examination of a particular case, he shall so inform the President. If, for some

special reason, the President considers that any Judge or Advocate-General should not sit or make

submissions in a particular case, he shall notify him accordingly.

Any difficulty arising as to the application of this Article shall be settled by decision of the Court of

Justice.

A party may not apply for a change in the composition of the Court or of one of its chambers on

the grounds of either the nationality of a Judge or the absence from the Court or from the chamber

of a Judge of the nationality of that party.

TITLE III

PROCEDURE BEFORE THE COURT OF JUSTICE

Article 19

The Member States and the institutions of the Union shall be represented before the Court of Justice

by an agent appointed for each case; the agent may be assisted by an adviser or by a lawyer.

The States, other than the Member States, which are parties to the Agreement on the European

Economic Area and also the EFTA Surveillance Authority referred to in that Agreement shall be

represented in same manner.

Other parties must be represented by a lawyer.

Only a lawyer authorised to practise before a court of a Member State or of another State which is a

party to the Agreement on the European Economic Area may represent or assist a party before the

Court.

Such agents, advisers and lawyers shall, when they appear before the Court, enjoy the rights and

immunities necessary to the independent exercise of their duties, under conditions laid down in the

Rules of Procedure.

As regards such advisers and lawyers who appear before it, the Court shall have the powers normally

accorded to courts of law, under conditions laid down in the Rules of Procedure.

University teachers being nationals of a Member State whose law accords them a right of audience

shall have the same rights before the Court as are accorded by this Article to lawyers.

C 326/214 Official Journal of the European Union 26.10.2012

Article 20

The procedure before the Court of Justice shall consist of two parts: written and oral.

The written procedure shall consist of the communication to the parties and to the institutions of the

Union whose decisions are in dispute, of applications, statements of case, defences and observations,

and of replies, if any, as well as of all papers and documents in support or of certified copies of

them.

Communications shall be made by the Registrar in the order and within the time laid down in the

Rules of Procedure.

The oral procedure shall consist of the reading of the report presented by a Judge acting as

Rapporteur, the hearing by the Court of agents, advisers and lawyers and of the submissions of

the Advocate-General, as well as the hearing, if any, of witnesses and experts.

Where it considers that the case raises no new point of law, the Court may decide, after hearing the

Advocate-General, that the case shall be determined without a submission from the Advocate-

General.

Article 21

A case shall be brought before the Court of Justice by a written application addressed to the

Registrar. The application shall contain the applicant’s name and permanent address and the

description of the signatory, the name of the party or names of the parties against whom the

application is made, the subject-matter of the dispute, the form of order sought and a brief

statement of the pleas in law on which the application is based.

The application shall be accompanied, where appropriate, by the measure the annulment of which is

sought or, in the circumstances referred to in Article 265 of the Treaty on the Functioning of the

European Union, by documentary evidence of the date on which an institution was, in accordance

with those Articles, requested to act. If the documents are not submitted with the application, the

Registrar shall ask the party concerned to produce them within a reasonable period, but in that event

the rights of the party shall not lapse even if such documents are produced after the time limit for

bringing proceedings.

Article 22

A case governed by Article 18 of the EAEC Treaty shall be brought before the Court of Justice by an

appeal addressed to the Registrar. The appeal shall contain the name and permanent address of the

applicant and the description of the signatory, a reference to the decision against which the appeal is

brought, the names of the respondents, the subject-matter of the dispute, the submissions and a brief

statement of the grounds on which the appeal is based.

The appeal shall be accompanied by a certified copy of the decision of the Arbitration Committee

which is contested.

If the Court rejects the appeal, the decision of the Arbitration Committee shall become final.

If the Court annuls the decision of the Arbitration Committee, the matter may be re-opened, where

appropriate, on the initiative of one of the parties in the case, before the Arbitration Committee. The

latter shall conform to any decisions on points of law given by the Court.

26.10.2012 Official Journal of the European Union C 326/215

Article 23

In the cases governed by Article 267 of the Treaty on the Functioning of the European Union, the

decision of the court or tribunal of a Member State which suspends its proceedings and refers a case

to the Court of Justice shall be notified to the Court by the court or tribunal concerned. The decision

shall then be notified by the Registrar of the Court to the parties, to the Member States and to the

Commission, and to the institution, body, office or agency of the Union which adopted the act the

validity or interpretation of which is in dispute.

Within two months of this notification, the parties, the Member States, the Commission and, where

appropriate, the institution, body, office or agency which adopted the act the validity or interpre

tation of which is in dispute, shall be entitled to submit statements of case or written observations to

the Court.

In the cases governed by Article 267 of the Treaty on the Functioning of the European Union, the

decision of the national court or tribunal shall, moreover, be notified by the Registrar of the Court to

the States, other than the Member States, which are parties to the Agreement on the European

Economic Area and also to the EFTA Surveillance Authority referred to in that Agreement which

may, within two months of notification, where one of the fields of application of that Agreement is

concerned, submit statements of case or written observations to the Court.

Where an agreement relating to a specific subject matter, concluded by the Council and one or more

non-member States, provides that those States are to be entitled to submit statements of case or

written observations where a court or tribunal of a Member State refers to the Court of Justice for a

preliminary ruling a question falling within the scope of the agreement, the decision of the national

court or tribunal containing that question shall also be notified to the non-member States concerned.

Within two months from such notification, those States may lodge at the Court statements of case or

written observations.

Article 23a (*)

The Rules of Procedure may provide for an expedited or accelerated procedure and, for references for

a preliminary ruling relating to the area of freedom, security and justice, an urgent procedure.

Those procedures may provide, in respect of the submission of statements of case or written

observations, for a shorter period than that provided for by Article 23, and, in derogation from

the fourth paragraph of Article 20, for the case to be determined without a submission from the

Advocate General.

In addition, the urgent procedure may provide for restriction of the parties and other interested

persons mentioned in Article 23, authorised to submit statements of case or written observations

and, in cases of extreme urgency, for the written stage of the procedure to be omitted.

C 326/216 Official Journal of the European Union 26.10.2012

(*) Article inserted by Decision 2008/79/EC, Euratom (OJ L 24, 29.1.2008, p. 42).

Article 24

The Court of Justice may require the parties to produce all documents and to supply all information

which the Court considers desirable. Formal note shall be taken of any refusal.

The Court may also require the Member States and institutions, bodies, offices and agencies not

being parties to the case to supply all information which the Court considers necessary for the

proceedings.

Article 25

The Court of Justice may at any time entrust any individual, body, authority, committee or other

organisation it chooses with the task of giving an expert opinion.

Article 26

Witnesses may be heard under conditions laid down in the Rules of Procedure.

Article 27

With respect to defaulting witnesses the Court of Justice shall have the powers generally granted to

courts and tribunals and may impose pecuniary penalties under conditions laid down in the Rules of

Procedure.

Article 28

Witnesses and experts may be heard on oath taken in the form laid down in the Rules of Procedure

or in the manner laid down by the law of the country of the witness or expert.

Article 29

The Court of Justice may order that a witness or expert be heard by the judicial authority of his place

of permanent residence.

The order shall be sent for implementation to the competent judicial authority under conditions laid

down in the Rules of Procedure. The documents drawn up in compliance with the letters rogatory

shall be returned to the Court under the same conditions.

The Court shall defray the expenses, without prejudice to the right to charge them, where appro

priate, to the parties.

Article 30

A Member State shall treat any violation of an oath by a witness or expert in the same manner as if

the offence had been committed before one of its courts with jurisdiction in civil proceedings. At the

instance of the Court of Justice, the Member State concerned shall prosecute the offender before its

competent court.

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Article 31

The hearing in court shall be public, unless the Court of Justice, of its own motion or on application

by the parties, decides otherwise for serious reasons.

Article 32

During the hearings the Court of Justice may examine the experts, the witnesses and the parties

themselves. The latter, however, may address the Court of Justice only through their representatives.

Article 33

Minutes shall be made of each hearing and signed by the President and the Registrar.

Article 34

The case list shall be established by the President.

Article 35

The deliberations of the Court of Justice shall be and shall remain secret.

Article 36

Judgments shall state the reasons on which they are based. They shall contain the names of the

Judges who took part in the deliberations.

Article 37

Judgments shall be signed by the President and the Registrar. They shall be read in open court.

Article 38

The Court of Justice shall adjudicate upon costs.

Article 39

The President of the Court of Justice may, by way of summary procedure, which may, in so far as

necessary, differ from some of the rules contained in this Statute and which shall be laid down in the

Rules of Procedure, adjudicate upon applications to suspend execution, as provided for in Article 278

of the Treaty on the Functioning of the European Union and Article 157 of the EAEC Treaty, or to

prescribe interim measures pursuant to Article 279 of the Treaty on the Functioning of the European

Union, or to suspend enforcement in accordance with the fourth paragraph of Article 299 of the

Treaty on the Functioning of the European Union or the third paragraph of Article 164 of the EAEC

Treaty.

C 326/218 Official Journal of the European Union 26.10.2012

Should the President be prevented from attending, his place shall be taken by another Judge under

conditions laid down in the Rules of Procedure.

The ruling of the President or of the Judge replacing him shall be provisional and shall in no way

prejudice the decision of the Court on the substance of the case.

Article 40

Member States and institutions of the Union may intervene in cases before the Court of Justice.

The same right shall be open to the bodies, offices and agencies of the Union and to any other

person which can establish an interest in the result of a case submitted to the Court. Natural or legal

persons shall not intervene in cases between Member States, between institutions of the Union or

between Member States and institutions of the Union.

Without prejudice to the second paragraph, the States, other than the Member States, which are

parties to the Agreement on the European Economic Area, and also the EFTA Surveillance Authority

referred to in that Agreement, may intervene in cases before the Court where one of the fields of

application of that Agreement is concerned.

An application to intervene shall be limited to supporting the form of order sought by one of the

parties.

Article 41

Where the defending party, after having been duly summoned, fails to file written submissions in

defence, judgment shall be given against that party by default. An objection may be lodged against

the judgment within one month of it being notified. The objection shall not have the effect of staying

enforcement of the judgment by default unless the Court of Justice decides otherwise.

Article 42

Member States, institutions, bodies, offices and agencies of the Union and any other natural or legal

persons may, in cases and under conditions to be determined by the Rules of Procedure, institute

third-party proceedings to contest a judgment rendered without their being heard, where the

judgment is prejudicial to their rights.

Article 43

If the meaning or scope of a judgment is in doubt, the Court of Justice shall construe it on

application by any party or any institution of the Union establishing an interest therein.

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Article 44

An application for revision of a judgment may be made to the Court of Justice only on discovery of

a fact which is of such a nature as to be a decisive factor, and which, when the judgment was given,

was unknown to the Court and to the party claiming the revision.

The revision shall be opened by a judgment of the Court expressly recording the existence of a new

fact, recognising that it is of such a character as to lay the case open to revision and declaring the

application admissible on this ground.

No application for revision may be made after the lapse of 10 years from the date of the judgment.

Article 45

Periods of grace based on considerations of distance shall be determined by the Rules of Procedure.

No right shall be prejudiced in consequence of the expiry of a time limit if the party concerned

proves the existence of unforeseeable circumstances or of force majeure.

Article 46

Proceedings against the Union in matters arising from non-contractual liability shall be barred after a

period of five years from the occurrence of the event giving rise thereto. The period of limitation

shall be interrupted if proceedings are instituted before the Court of Justice or if prior to such

proceedings an application is made by the aggrieved party to the relevant institution of the

Union. In the latter event the proceedings must be instituted within the period of two months

provided for in Article 263 of the Treaty on the Functioning of the European Union; the provisions

of the second paragraph of Article 265 of the Treaty on the Functioning of the European Union shall

apply where appropriate.

This Article shall also apply to proceedings against the European Central Bank regarding non-

contractual liability.

TITLE IV

GENERAL COURT

Article 47

The first paragraph of Article 9, Articles 14 and 15, the first, second, fourth and fifth paragraphs of

Article 17 and Article 18 shall apply to the General Court and its members.

The fourth paragraph of Article 3 and Articles 10, 11 and 14 shall apply to the Registrar of the

General Court mutatis mutandis.

Article 48

The General Court shall consist of 27 Judges.

C 326/220 Official Journal of the European Union 26.10.2012

Article 49

The Members of the General Court may be called upon to perform the task of an Advocate-General.

It shall be the duty of the Advocate-General, acting with complete impartiality and independence, to

make, in open court, reasoned submissions on certain cases brought before the General Court in

order to assist the General Court in the performance of its task.

The criteria for selecting such cases, as well as the procedures for designating the Advocates-General,

shall be laid down in the Rules of Procedure of the General Court.

A Member called upon to perform the task of Advocate-General in a case may not take part in the

judgment of the case.

Article 50

The General Court shall sit in chambers of three or five Judges. The Judges shall elect the Presidents

of the chambers from among their number. The Presidents of the chambers of five Judges shall be

elected for three years. They may be re-elected once.

The composition of the chambers and the assignment of cases to them shall be governed by the

Rules of Procedure. In certain cases governed by the Rules of Procedure, the General Court may sit as

a full court or be constituted by a single Judge.

The Rules of Procedure may also provide that the General Court may sit in a Grand Chamber in

cases and under the conditions specified therein.

Article 51

By way of derogation from the rule laid down in Article 256(1) of the Treaty on the Functioning of

the European Union, jurisdiction shall be reserved to the Court of Justice in the actions referred to in

Articles 263 and 265 of the Treaty on the Functioning of the European Union when they are

brought by a Member State against:

(a) an act of or failure to act by the European Parliament or the Council, or by those institutions

acting jointly, except for:

— decisions taken by the Council under the third subparagraph of Article 108(2) of the Treaty

on the Functioning of the European Union;

— acts of the Council adopted pursuant to a Council regulation concerning measures to protect

trade within the meaning of Article 207 of the Treaty on the Functioning of the European

Union;

— acts of the Council by which the Council exercises implementing powers in accordance with

the second paragraph of Article 291 of the Treaty on the Functioning of the European Union;

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(b) against an act of or failure to act by the Commission under the first paragraph of Article 331 of

the Treaty on the Functioning of the European Union.

Jurisdiction shall also be reserved to the Court of Justice in the actions referred to in the same

Articles when they are brought by an institution of the Union against an act of or failure to act by

the European Parliament, the Council, both those institutions acting jointly, or the Commission, or

brought by an institution of the Union against an act of or failure to act by the European Central

Bank.

Article 52

The President of the Court of Justice and the President of the General Court shall determine, by

common accord, the conditions under which officials and other servants attached to the Court of

Justice shall render their services to the General Court to enable it to function. Certain officials or

other servants shall be responsible to the Registrar of the General Court under the authority of the

President of the General Court.

Article 53

The procedure before the General Court shall be governed by Title III.

Such further and more detailed provisions as may be necessary shall be laid down in its Rules of

Procedure. The Rules of Procedure may derogate from the fourth paragraph of Article 40 and from

Article 41 in order to take account of the specific features of litigation in the field of intellectual

property.

Notwithstanding the fourth paragraph of Article 20, the Advocate-General may make his reasoned

submissions in writing.

Article 54

Where an application or other procedural document addressed to the General Court is lodged by

mistake with the Registrar of the Court of Justice, it shall be transmitted immediately by that

Registrar to the Registrar of the General Court; likewise, where an application or other procedural

document addressed to the Court of Justice is lodged by mistake with the Registrar of the General

Court, it shall be transmitted immediately by that Registrar to the Registrar of the Court of Justice.

Where the General Court finds that it does not have jurisdiction to hear and determine an action in

respect of which the Court of Justice has jurisdiction, it shall refer that action to the Court of Justice;

likewise, where the Court of Justice finds that an action falls within the jurisdiction of the General

Court, it shall refer that action to the General Court, whereupon that Court may not decline

jurisdiction.

Where the Court of Justice and the General Court are seised of cases in which the same relief is

sought, the same issue of interpretation is raised or the validity of the same act is called in question,

the General Court may, after hearing the parties, stay the proceedings before it until such time as the

Court of Justice has delivered judgment or, where the action is one brought pursuant to Article 263

of the Treaty on the Functioning of the European Union, may decline jurisdiction so as to allow the

Court of Justice to rule on such actions. In the same circumstances, the Court of Justice may also

decide to stay the proceedings before it; in that event, the proceedings before the General Court shall

continue.

Where a Member State and an institution of the Union are challenging the same act, the General

Court shall decline jurisdiction so that the Court of Justice may rule on those applications.

C 326/222 Official Journal of the European Union 26.10.2012

Article 55

Final decisions of the General Court, decisions disposing of the substantive issues in part only or

disposing of a procedural issue concerning a plea of lack of competence or inadmissibility, shall be

notified by the Registrar of the General Court to all parties as well as all Member States and the

institutions of the Union even if they did not intervene in the case before the General Court.

Article 56

An appeal may be brought before the Court of Justice, within two months of the notification of the

decision appealed against, against final decisions of the General Court and decisions of that Court

disposing of the substantive issues in part only or disposing of a procedural issue concerning a plea

of lack of competence or inadmissibility.

Such an appeal may be brought by any party which has been unsuccessful, in whole or in part, in its

submissions. However, interveners other than the Member States and the institutions of the Union

may bring such an appeal only where the decision of the General Court directly affects them.

With the exception of cases relating to disputes between the Union and its servants, an appeal may

also be brought by Member States and institutions of the Union which did not intervene in the

proceedings before the General Court. Such Member States and institutions shall be in the same

position as Member States or institutions which intervened at first instance.

Article 57

Any person whose application to intervene has been dismissed by the General Court may appeal to

the Court of Justice within two weeks from the notification of the decision dismissing the appli

cation.

The parties to the proceedings may appeal to the Court of Justice against any decision of the General

Court made pursuant to Article 278 or Article 279 or the fourth paragraph of Article 299 of the

Treaty on the Functioning of the European Union or Article 157 or the third paragraph of

Article 164 of the EAEC Treaty within two months from their notification.

The appeal referred to in the first two paragraphs of this Article shall be heard and determined under

the procedure referred to in Article 39.

Article 58

An appeal to the Court of Justice shall be limited to points of law. It shall lie on the grounds of lack

of competence of the General Court, a breach of procedure before it which adversely affects the

interests of the appellant as well as the infringement of Union law by the General Court.

No appeal shall lie regarding only the amount of the costs or the party ordered to pay them.

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Article 59

Where an appeal is brought against a decision of the General Court, the procedure before the Court

of Justice shall consist of a written part and an oral part. In accordance with conditions laid down in

the Rules of Procedure, the Court of Justice, having heard the Advocate-General and the parties, may

dispense with the oral procedure.

Article 60

Without prejudice to Articles 278 and 279 of the Treaty on the Functioning of the European Union

or Article 157 of the EAEC Treaty, an appeal shall not have suspensory effect.

By way of derogation from Article 280 of the Treaty on the Functioning of the European Union,

decisions of the General Court declaring a regulation to be void shall take effect only as from the

date of expiry of the period referred to in the first paragraph of Article 56 of this Statute or, if an

appeal shall have been brought within that period, as from the date of dismissal of the appeal,

without prejudice, however, to the right of a party to apply to the Court of Justice, pursuant to

Articles 278 and 279 of the Treaty on the Functioning of the European Union or Article 157 of the

EAEC Treaty, for the suspension of the effects of the regulation which has been declared void or for

the prescription of any other interim measure.

Article 61

If the appeal is well founded, the Court of Justice shall quash the decision of the General Court. It

may itself give final judgment in the matter, where the state of the proceedings so permits, or refer

the case back to the General Court for judgment.

Where a case is referred back to the General Court, that Court shall be bound by the decision of the

Court of Justice on points of law.

When an appeal brought by a Member State or an institution of the Union, which did not intervene

in the proceedings before the General Court, is well founded, the Court of Justice may, if it considers

this necessary, state which of the effects of the decision of the General Court which has been quashed

shall be considered as definitive in respect of the parties to the litigation.

Article 62

In the cases provided for in Article 256(2) and (3) of the Treaty on the Functioning of the European

Union, where the First Advocate-General considers that there is a serious risk of the unity or

consistency of Union law being affected, he may propose that the Court of Justice review the

decision of the General Court.

The proposal must be made within one month of delivery of the decision by the General Court.

Within one month of receiving the proposal made by the First Advocate-General, the Court of Justice

shall decide whether or not the decision should be reviewed.

Article 62a

The Court of Justice shall give a ruling on the questions which are subject to review by means of an

urgent procedure on the basis of the file forwarded to it by the General Court.

C 326/224 Official Journal of the European Union 26.10.2012

Those referred to in Article 23 of this Statute and, in the cases provided for in Article 256(2) of the

EC Treaty, the parties to the proceedings before the General Court shall be entitled to lodge

statements or written observations with the Court of Justice relating to questions which are

subject to review within a period prescribed for that purpose.

The Court of Justice may decide to open the oral procedure before giving a ruling.

Article 62b

In the cases provided for in Article 256(2) of the Treaty on the Functioning of the European Union,

without prejudice to Articles 278 and 279 of the Treaty on the Functioning of the European Union,

proposals for review and decisions to open the review procedure shall not have suspensory effect. If

the Court of Justice finds that the decision of the General Court affects the unity or consistency of

Union law, it shall refer the case back to the General Court which shall be bound by the points of

law decided by the Court of Justice; the Court of Justice may state which of the effects of the decision

of the General Court are to be considered as definitive in respect of the parties to the litigation. If,

however, having regard to the result of the review, the outcome of the proceedings flows from the

findings of fact on which the decision of the General Court was based, the Court of Justice shall give

final judgment.

In the cases provided for in Article 256(3) of the Treaty on the Functioning of the European Union,

in the absence of proposals for review or decisions to open the review procedure, the answer(s) given

by the General Court to the questions submitted to it shall take effect upon expiry of the periods

prescribed for that purpose in the second paragraph of Article 62. Should a review procedure be

opened, the answer(s) subject to review shall take effect following that procedure, unless the Court of

Justice decides otherwise. If the Court of Justice finds that the decision of the General Court affects

the unity or consistency of Union law, the answer given by the Court of Justice to the questions

subject to review shall be substituted for that given by the General Court.

TITLE IVa

SPECIALISED COURTS

Article 62c

The provisions relating to the jurisdiction, composition, organisation and procedure of the specialised

courts established under Article 257 of the Treaty on the Functioning of the European Union are set

out in an Annex to this Statute.

TITLE V

FINAL PROVISIONS

Article 63

The Rules of Procedure of the Court of Justice and of the General Court shall contain any provisions

necessary for applying and, where required, supplementing this Statute.

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Article 64

The rules governing the language arrangements applicable at the Court of Justice of the European

Union shall be laid down by a regulation of the Council acting unanimously. This regulation shall be

adopted either at the request of the Court of Justice and after consultation of the Commission and

the European Parliament, or on a proposal from the Commission and after consultation of the Court

of Justice and of the European Parliament.

Until those rules have been adopted, the provisions of the Rules of Procedure of the Court of Justice

and of the Rules of Procedure of the General Court governing language arrangements shall continue

to apply. By way of derogation from Articles 253 and 254 of the Treaty on the Functioning of the

European Union, those provisions may only be amended or repealed with the unanimous consent of

the Council.

ANNEX

THE EUROPEAN UNION CIVIL SERVICE TRIBUNAL

Article 1

The European Union Civil Service Tribunal (hereafter ‘the Civil Service Tribunal’) shall exercise at first instance jurisdiction

in disputes between the Union and its servants referred to in Article 270 of the Treaty on the Functioning of the

European Union, including disputes between all bodies or agencies and their servants in respect of which jurisdiction is

conferred on the Court of Justice of the European Union.

Article 2

The Civil Service Tribunal shall consist of seven judges. Should the Court of Justice so request, the Council, acting by a

qualified majority, may increase the number of judges.

The judges shall be appointed for a period of six years. Retiring judges may be reappointed.

Any vacancy shall be filled by the appointment of a new judge for a period of six years.

Article 3

1. The judges shall be appointed by the Council, acting in accordance with the fourth paragraph of Article 257 of the

Treaty on the Functioning of the European Union, after consulting the committee provided for by this Article. When

appointing judges, the Council shall ensure a balanced composition of the Civil Service Tribunal on as broad a

geographical basis as possible from among nationals of the Member States and with respect to the national legal

systems represented.

2. Any person who is a Union citizen and fulfils the conditions laid down in the fourth paragraph of Article 257 of

the Treaty on the Functioning of the European Union may submit an application. The Council, acting on a recom

mendation from the Court of Justice, shall determine the conditions and the arrangements governing the submission and

processing of such applications.

3. A committee shall be set up comprising seven persons chosen from among former members of the Court of Justice

and the General Court and lawyers of recognised competence. The committee's membership and operating rules shall be

determined by the Council, acting on a recommendation by the President of the Court of Justice.

C 326/226 Official Journal of the European Union 26.10.2012

4. The committee shall give an opinion on candidates' suitability to perform the duties of judge at the Civil Service

Tribunal. The committee shall append to its opinion a list of candidates having the most suitable high-level experience.

Such list shall contain the names of at least twice as many candidates as there are judges to be appointed by the Council.

Article 4

1. The judges shall elect the President of the Civil Service Tribunal from among their number for a term of three years.

He may be re-elected.

2. The Civil Service Tribunal shall sit in chambers of three judges. It may, in certain cases determined by its rules of

procedure, sit in full court or in a chamber of five judges or of a single judge.

3. The President of the Civil Service Tribunal shall preside over the full court and the chamber of five judges. The

Presidents of the chambers of three judges shall be designated as provided in paragraph 1. If the President of the Civil

Service Tribunal is assigned to a chamber of three judges, he shall preside over that chamber.

4. The jurisdiction of and quorum for the full court as well as the composition of the chambers and the assignment of

cases to them shall be governed by the Rules of Procedure.

Article 5

Articles 2 to 6, 14, 15, the first, second and fifth paragraphs of Article 17, and Article 18 of the Statute of the Court of

Justice of the European Union shall apply to the Civil Service Tribunal and its members.

The oath referred to in Article 2 of the Statute shall be taken before the Court of Justice, and the decisions referred to in

Articles 3, 4 and 6 thereof shall be adopted by the Court of Justice after consulting the Civil Service Tribunal.

Article 6

1. The Civil Service Tribunal shall be supported by the departments of the Court of Justice and of the General Court.

The President of the Court of Justice or, in appropriate cases, the President of the General Court, shall determine by

common accord with the President of the Civil Service Tribunal the conditions under which officials and other servants

attached to the Court of Justice or the General Court shall render their services to the Civil Service Tribunal to enable it to

function. Certain officials or other servants shall be responsible to the Registrar of the Civil Service Tribunal under the

authority of the President of that Tribunal.

2. The Civil Service Tribunal shall appoint its Registrar and lay down the rules governing his service. The fourth

paragraph of Article 3 and Articles 10, 11 and 14 of the Statute of the Court of Justice of the European Union shall apply

to the Registrar of the Tribunal.

Article 7

1. The procedure before the Civil Service Tribunal shall be governed by Title III of the Statute of the Court of Justice of

the European Union, with the exception of Articles 22 and 23. Such further and more detailed provisions as may be

necessary shall be laid down in the Rules of Procedure.

2. The provisions concerning the General Court's language arrangements shall apply to the Civil Service Tribunal.

3. The written stage of the procedure shall comprise the presentation of the application and of the statement of

defence, unless the Civil Service Tribunal decides that a second exchange of written pleadings is necessary. Where there is

such second exchange, the Civil Service Tribunal may, with the agreement of the parties, decide to proceed to judgment

without an oral procedure.

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4. At all stages of the procedure, including the time when the application is filed, the Civil Service Tribunal may

examine the possibilities of an amicable settlement of the dispute and may try to facilitate such settlement.

5. The Civil Service Tribunal shall rule on the costs of a case. Subject to the specific provisions of the Rules of

Procedure, the unsuccessful party shall be ordered to pay the costs should the court so decide.

Article 8

1. Where an application or other procedural document addressed to the Civil Service Tribunal is lodged by mistake

with the Registrar of the Court of Justice or General Court, it shall be transmitted immediately by that Registrar to the

Registrar of the Civil Service Tribunal. Likewise, where an application or other procedural document addressed to the

Court of Justice or to the General Court is lodged by mistake with the Registrar of the Civil Service Tribunal, it shall be

transmitted immediately by that Registrar to the Registrar of the Court of Justice or General Court.

2. Where the Civil Service Tribunal finds that it does not have jurisdiction to hear and determine an action in respect

of which the Court of Justice or the General Court has jurisdiction, it shall refer that action to the Court of Justice or to

the General Court. Likewise, where the Court of Justice or the General Court finds that an action falls within the

jurisdiction of the Civil Service Tribunal, the Court seised shall refer that action to the Civil Service Tribunal,

whereupon that Tribunal may not decline jurisdiction.

3. Where the Civil Service Tribunal and the General Court are seised of cases in which the same issue of interpretation

is raised or the validity of the same act is called in question, the Civil Service Tribunal, after hearing the parties, may stay

the proceedings until the judgment of the General Court has been delivered.

Where the Civil Service Tribunal and the General Court are seised of cases in which the same relief is sought, the Civil

Service Tribunal shall decline jurisdiction so that the General Court may act on those cases.

Article 9

An appeal may be brought before the General Court, within two months of notification of the decision appealed against,

against final decisions of the Civil Service Tribunal and decisions of that Tribunal disposing of the substantive issues in

part only or disposing of a procedural issue concerning a plea of lack of jurisdiction or inadmissibility.

Such an appeal may be brought by any party which has been unsuccessful, in whole or in part, in its submissions.

However, interveners other than the Member States and the institutions of the Union may bring such an appeal only

where the decision of the Civil Service Tribunal directly affects them.

Article 10

1. Any person whose application to intervene has been dismissed by the Civil Service Tribunal may appeal to the

General Court within two weeks of notification of the decision dismissing the application.

2. The parties to the proceedings may appeal to the General Court against any decision of the Civil Service Tribunal

made pursuant to Article 278 or Article 279 or the fourth paragraph of Article 299 of the Treaty on the Functioning of

the European Union or Article 157 or the third paragraph of Article 164 of the EAEC Treaty within two months of its

notification.

3. The President of the General Court may, by way of summary procedure, which may, in so far as necessary, differ

from some of the rules contained in this Annex and which shall be laid down in the rules of procedure of the General

Court, adjudicate upon appeals brought in accordance with paragraphs 1 and 2.

C 326/228 Official Journal of the European Union 26.10.2012

Article 11

1. An appeal to the General Court shall be limited to points of law. It shall lie on the grounds of lack of jurisdiction of

the Civil Service Tribunal, a breach of procedure before it which adversely affects the interests of the appellant, as well as

the infringement of Union law by the Tribunal.

2. No appeal shall lie regarding only the amount of the costs or the party ordered to pay them.

Article 12

1. Without prejudice to Articles 278 and 279 of the Treaty on the Functioning of the European Union or Article 157

of the EAEC Treaty, an appeal before the General Court shall not have suspensory effect.

2. Where an appeal is brought against a decision of the Civil Service Tribunal, the procedure before the General Court

shall consist of a written part and an oral part. In accordance with conditions laid down in the rules of procedure, the

General Court, having heard the parties, may dispense with the oral procedure.

Article 13

1. If the appeal is well founded, the General Court shall quash the decision of the Civil Service Tribunal and itself give

judgment in the matter. It shall refer the case back to the Civil Service Tribunal for judgment where the state of the

proceedings does not permit a decision by the Court.

2. Where a case is referred back to the Civil Service Tribunal, the Tribunal shall be bound by the decision of the

General Court on points of law.

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PROTOCOL (No 4)

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 the second paragraph of Article 129 of the Treaty on the Functioning

of the European Union,

HAVE AGREED

upon the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

CHAPTER I

THE EUROPEAN SYSTEM OF CENTRAL BANKS

Article 1

The European System of Central Banks

In accordance with Article 282(1) of the Treaty on the Functioning of the European Union, the

European Central Bank (ECB) and the national central banks shall constitute the European System of

Central Banks (ESCB). The ECB and the national central banks of those Member States whose

currency is the euro shall constitute the Eurosystem.

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

provisions of the Treaties and of this Statute.

CHAPTER II

OBJECTIVES AND TASKS OF THE ESCB

Article 2

Objectives

In accordance with Article 127(1) and Article 282(2) of the Treaty on the Functioning of the

European Union, 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

Union with a view to contributing to the achievement of the objectives of the Union as laid down in

Article 3 of the Treaty on European Union. 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 119 of the Treaty on the Functioning of the

European Union.

C 326/230 Official Journal of the European Union 26.10.2012

Article 3

Tasks

3.1. In accordance with Article 127(2) of the Treaty on the Functioning of the European Union,

the basic tasks to be carried out through the ESCB shall be:

— to define and implement the monetary policy of the Union;

— to conduct foreign-exchange operations consistent with the provisions of Article 219 of that

Treaty;

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

— to promote the smooth operation of payment systems.

3.2. In accordance with Article 127(3) of the Treaty on the Functioning of the European Union,

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 127(5) of the Treaty on the Functioning of the European Union,

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 127(4) of the Treaty on the Functioning of the European Union:

(a) the ECB shall be consulted:

— on any proposed Union 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 41;

(b) the ECB may submit opinions to the Union institutions, bodies, offices or agencies 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 Union institutions,

bodies, offices or agencies and with the competent authorities of the Member States or third

countries and with international organisations.

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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 harmonisation, 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 41, 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 inter

national monetary institutions.

6.3. Articles 6.1 and 6.2 shall be without prejudice to Article 138 of the Treaty on the Func

tioning of the European Union.

CHAPTER III

ORGANISATION OF THE ESCB

Article 7

Independence

In accordance with Article 130 of the Treaty on the Functioning of the European Union, when

exercising the powers and carrying out the tasks and duties conferred upon them by the Treaties 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 Union institutions, bodies, offices or agencies, from any

government of a Member State or from any other body. The Union institutions, bodies, offices or

agencies 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.

C 326/232 Official Journal of the European Union 26.10.2012

Article 9

The European Central Bank

9.1. The ECB which, in accordance with Article 282(3) of the Treaty on the Functioning of the

European Union, 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 127(2), (3) and (5)

of the Treaty on the Functioning of the European Union are implemented either by its own activities

pursuant to this Statute or through the national central banks pursuant to Articles 12.1 and 14.

9.3. In accordance with Article 129(1) of the Treaty on the Functioning of the European Union,

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 283(1) of the Treaty on the Functioning of the European Union,

the Governing Council shall comprise the members of the Executive Board of the ECB and the

governors of the national central banks of the Member States whose currency is the euro.

10.2. Each member of the Governing Council shall have one vote. As from the date on which the

number of members of the Governing Council exceeds 21, each member of the Executive Board shall

have one vote and the number of governors with a voting right shall be 15. The latter voting rights

shall be assigned and shall rotate as follows:

— as from the date on which the number of governors exceeds 15, until it reaches 22, the

governors shall be allocated to two groups, according to a ranking of the size of the share of

their national central bank's Member State in the aggregate gross domestic product at market

prices and in the total aggregated balance sheet of the monetary financial institutions of the

Member States whose currency is the euro. The shares in the aggregate gross domestic product at

market prices and in the total aggregated balance sheet of the monetary financial institutions shall

be assigned weights of 5/6 and 1/6, respectively. The first group shall be composed of five

governors and the second group of the remaining governors. The frequency of voting rights

of the governors allocated to the first group shall not be lower than the frequency of voting

rights of those of the second group. Subject to the previous sentence, the first group shall be

assigned four voting rights and the second group eleven voting rights,

— as from the date on which the number of governors reaches 22, the governors shall be allocated

to three groups according to a ranking based on the above criteria. The first group shall be

composed of five governors and shall be assigned four voting rights. The second group shall be

composed of half of the total number of governors, with any fraction rounded up to the nearest

integer, and shall be assigned eight voting rights. The third group shall be composed of the

remaining governors and shall be assigned three voting rights,

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— within each group, the governors shall have their voting rights for equal amounts of time,

— for the calculation of the shares in the aggregate gross domestic product at market prices

Article 29.2 shall apply. The total aggregated balance sheet of the monetary financial institutions

shall be calculated in accordance with the statistical framework applying in the Union at the time

of the calculation,

— whenever the aggregate gross domestic product at market prices is adjusted in accordance with

Article 29.3, or whenever the number of governors increases, the size and/or composition of the

groups shall be adjusted in accordance with the above principles,

— the Governing Council, acting by a two-thirds majority of all its members, with and without a

voting right, shall take all measures necessary for the implementation of the above principles and

may decide to postpone the start of the rotation system until the date on which the number of

governors exceeds 18.

The right to vote shall be exercised in person. 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 attending meetings of the Governing Council for a

prolonged period may appoint an alternate as a member of the Governing Council.

The provisions of the previous paragraphs are without prejudice to the voting rights of all members

of the Governing Council, with and without a voting right, under Articles 10.3, 40.2 and 40.3.

Save as otherwise provided for in this Statute, the Governing Council shall act by a simple majority

of the members having a voting right. In the event of a tie, the President shall have the casting vote.

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

having a voting right. If the quorum is not met, the President may convene an 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 and 33, the votes in the

Governing Council shall be weighted according to the national central banks' shares in the subscribed

capital of the ECB. The weights 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 is 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 10 times a year.

C 326/234 Official Journal of the European Union 26.10.2012

Article 11

The Executive Board

11.1. In accordance with the first subparagraph of Article 283(2) of the Treaty on the Functioning

of the European Union, 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 the second subparagraph of Article 283(2) of the Treaty on the Func

tioning of the European Union, the President, the Vice-President and the other members of the

Executive Board shall be appointed by the European Council, acting by a qualified majority, from

among persons of recognised standing and professional experience in monetary or banking matters,

on a recommendation from the Council after it has consulted the European Parliament and the

Governing Council.

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

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

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.

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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 these Treaties and this Statute. The

Governing Council shall formulate the monetary policy of the Union 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 responsibility for the preparation of meetings of the

Governing Council.

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

sation of the ECB and its decision-making bodies.

12.4. The Governing Council shall exercise the advisory functions referred to in Article 4.

12.5. The Governing Council shall take the decisions referred to in 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 38, the President or his nominee shall represent the ECB

externally.

Article 14

National central banks

14.1. In accordance with Article 131 of the Treaty on the Functioning of the European Union,

each Member State shall ensure that its national legislation, including the statutes of its national

central bank, is compatible with these Treaties 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 five years.

C 326/236 Official Journal of the European Union 26.10.2012

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 these Treaties or of any rule of law relating to their 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 the

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 the 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 284(3) of the Treaty on the Functioning of the European Union,

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 to 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

Banknotes

In accordance with Article 128(1) of the Treaty on the Functioning of the European Union, the

Governing Council shall have the exclusive right to authorise the issue of euro banknotes within the

Union. The ECB and the national central banks may issue such notes. The banknotes issued by the

ECB and the national central banks shall be the only such notes to have the status of legal tender

within the Union.

The ECB shall respect as far as possible existing practices regarding the issue and design of bank

notes.

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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 and forward) or under

repurchase agreement and by lending or borrowing claims and marketable instruments, whether

in euro or other 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 reserve 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 41, define the basis for minimum reserves and the maximum permissible ratios

between those reserves and their basis, as well as the appropriate sanctions in cases of non-

compliance.

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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 41, 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 123 of the Treaty on the Functioning of the European Union,

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

favour of Union institutions, bodies, offices or agencies, 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

Article 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 Union 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 organisations;

— 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 and in whatever form held;

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

— conduct all types of banking transactions in relations with third countries and international

organisations, 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 Union legislation

relating to the prudential supervision of credit institutions and to the stability of the financial system.

25.2. In accordance with any regulation of the Council under Article 127(6) of the Treaty on the

Functioning of the European Union, 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 by 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 analytical 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.

C 326/240 Official Journal of the European Union 26.10.2012

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

for standardising the accounting and reporting of operations undertaken by the national central

banks.

Article 27

Auditing

27.1. The accounts 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 287 of the Treaty on the Functioning of the European Union 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 shall be euro 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 41.

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.

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Article 29

Key for capital subscription

29.1. The key for subscription of the ECB's capital, fixed for the first time in 1998 when the ESCB

was established, shall be determined by assigning to each national central bank a weighting in this

key equal to the sum of:

— 50 % of the share of its respective Member State in the population of the Union 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 Union as recorded in the last five years preceding the penultimate year before the

establishment of the ESCB.

The percentages shall be rounded up or down to the nearest multiple of 0,0001 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 41.

29.3. The weightings 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, euro, IMF reserve positions and

SDRs, up to an amount equivalent to euro 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 41.

C 326/242 Official Journal of the European Union 26.10.2012

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 organisations 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 Union.

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. 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 introduction of the euro, 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 from

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 banknotes 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.

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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 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 132 of the Treaty on the Functioning of the European Union, 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 41;

— take decisions necessary for carrying out the tasks entrusted to the ESCB under these Treaties and

this Statute;

— make recommendations and deliver opinions.

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

C 326/244 Official Journal of the European Union 26.10.2012

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

down in Article 41, 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 of the European Union in the cases and under the conditions laid down in the Treaty on the

Functioning of the European Union. The ECB may institute proceedings in the cases and under the

conditions laid down in the Treaties.

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 of the European Union.

35.3. The ECB shall be subject to the liability regime provided for in Article 340 of the Treaty on

the Functioning of the European Union. The national central banks shall be liable according to their

respective national laws.

35.4. The Court of Justice of the European Union 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 of the European Union

shall be taken by the Governing Council.

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

the fulfilment by a national central bank of obligations under the Treaties and this Statute. If the ECB

considers that a national central bank has failed to fulfil an obligation under the Treaties and 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 of the European Union.

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 of the European Union 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.

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Article 37 (ex Article 38)

Professional secrecy

37.1. 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.

37.2. Persons having access to data covered by Union legislation imposing an obligation of

secrecy shall be subject to such legislation.

Article 38

(ex 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

authorised by the President to sign on behalf of the ECB.

Article 39

(ex 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 Union.

CHAPTER VIII

AMENDMENT OF THE STATUTE AND COMPLEMENTARY LEGISLATION

Article 40

(ex Article 41)

Simplified amendment procedure

40.1. In accordance with Article 129(3) of the Treaty on the Functioning of the European Union,

Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of this

Statute may be amended by the European Parliament and the Council, acting in accordance with the

ordinary legislative procedure either on a recommendation from the ECB and after consulting the

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

40.2. Article 10.2 may be amended by a decision of the European Council, acting unanimously,

either on a recommendation from the European Central Bank and after consulting the European

Parliament and the Commission, or on a recommendation from the Commission and after consulting

the European Parliament and the European Central Bank. These amendments shall not enter into

force until they are approved by the Member States in accordance with their respective constitutional

requirements.

C 326/246 Official Journal of the European Union 26.10.2012

40.3. A recommendation made by the ECB under this Article shall require a unanimous decision

by the Governing Council.

Article 41

(ex Article 42)

Complementary legislation

In accordance with Article 129(4) of the Treaty on the Functioning of the European Union, the

Council, 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 42

(ex Article 43)

General provisions

42.1. A derogation as referred to in Article 139 of the Treaty on the Functioning of the European

Union shall entail that the following Articles of this Statute 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, and 49.

42.2. The central banks of Member States with a derogation as specified in Article 139(1) of the

Treaty on the Functioning of the European Union shall retain their powers in the field of monetary

policy according to national law.

42.3. In accordance with Article 139 of the Treaty on the Functioning of the European Union,

‘Member States’ shall be read as ‘Member States whose currency is the euro’ in the following Articles

of this Statute: 3, 11.2 and 19.

42.4. ‘National central banks’ shall be read as ‘central banks of Member States whose currency is

the euro’ in the following Articles of this Statute: 9.2, 10.2, 10.3, 12.1, 16, 17, 18, 22, 23, 27, 30,

31, 32, 33.2 and 49.

42.5. ‘Shareholders’ shall be read as ‘central banks of Member States whose currency is the euro’

in Articles 10.3 and 33.1.

42.6. ‘Subscribed capital of the ECB’ shall be read as ‘capital of the ECB subscribed by the central

banks of Member States whose currency is the euro’ in Articles 10.3 and 30.2.

26.10.2012 Official Journal of the European Union C 326/247

Article 43 (ex Article 44)

Transitional tasks of the ECB

The ECB shall take over the former tasks of the EMI referred to in Article 141(2) of the Treaty on the

Functioning of the European Union which, because of the derogations of one or more Member

States, still have to be performed after the introduction of the euro.

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

Article 140 of the Treaty on the Functioning of the European Union.

Article 44

(ex Article 45)

The General Council of the ECB

44.1. Without prejudice to Article 129(1) of the Treaty on the Functioning of the European

Union, the General Council shall be constituted as a third decision-making body of the ECB.

44.2. The General Council shall comprise the President and Vice-President of the ECB and the

Governors of the national central banks. The other members of the Executive Board may participate,

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

44.3. The responsibilities of the General Council are listed in full in Article 46 of this Statute.

Article 45

(ex Article 46)

Rules of Procedure of the General Council

45.1. The President or, in his absence, the Vice-President of the ECB shall chair the General

Council of the ECB.

45.2. The President of the Council and a Member of the Commission may participate, without

having the right to vote, in meetings of the General Council.

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

45.4. By way of derogation from Article 12.3, the General Council shall adopt its Rules of

Procedure.

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

Article 46

(ex Article 47)

Responsibilities of the General Council

46.1. The General Council shall:

— perform the tasks referred to in Article 43;

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

C 326/248 Official Journal of the European Union 26.10.2012

46.2. 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 in

Article 29.4;

— the laying down of the conditions of employment of the staff of the ECB as referred to in

Article 36.

46.3. The General Council shall contribute to the necessary preparations for irrevocably fixing the

exchange rates of the currencies of Member States with a derogation against the euro as referred to in

Article 140(3) of the Treaty on the Functioning of the European Union.

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

Governing Council.

Article 47

(ex 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 a 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 48

(ex Article 49)

Deferred payment of capital, reserves and provisions of the ECB

48.1. 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 whose currency is the euro, 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 euro 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.

48.2. In addition to the payment to be made in accordance with Article 48.1, 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.

26.10.2012 Official Journal of the European Union C 326/249

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 by the

other central banks.

48.3. Upon one or more countries becoming Member States and their respective national central

banks becoming part of the ESCB, the subscribed capital of the ECB and the limit on the amount of

foreign reserve assets that may be transferred to the ECB shall be automatically increased. The

increase shall be determined by multiplying the respective amounts then prevailing by the ratio,

within the expanded capital key, between the weighting of the entering national central banks

concerned and the weighting of the national central banks already members of the ESCB. Each

national central bank's weighting in the capital key shall be calculated by analogy with Article 29.1

and in compliance with Article 29.2. The reference periods to be used for the statistical data shall be

identical to those applied for the latest quinquennial adjustment of the weightings under Article 29.3.

Article 49

(ex Article 52)

Exchange of banknotes in the currencies of the Member States

Following the irrevocable fixing of exchange rates in accordance with Article 140 of the Treaty on

the Functioning of the European Union, the Governing Council shall take the necessary measures to

ensure that banknotes denominated in currencies with irrevocably fixed exchange rates are exchanged

by the national central banks at their respective par values.

Article 50

(ex Article 53)

Applicability of the transitional provisions

If and as long as there are Member States with a derogation, Articles 42 to 47 shall be applicable.

C 326/250 Official Journal of the European Union 26.10.2012

PROTOCOL (No 5)

ON THE STATUTE OF THE EUROPEAN INVESTMENT

BANK

THE HIGH CONTRACTING PARTIES,

DESIRING

to lay down the Statute of the European Investment Bank provided for in Article 308 of the

Treaty on the Functioning of the European Union,

HAVE AGREED

upon the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

The European Investment Bank established by Article 308 of the Treaty on the Functioning of the

European Union (hereinafter called the ‘Bank’) is hereby constituted; it shall perform its functions and

carry on its activities in accordance with the provisions of the Treaties and of this Statute.

Article 2

The task of the Bank shall be that defined in Article 309 of the Treaty on the Functioning of the

European Union.

Article 3

In accordance with Article 308 of the Treaty on the Functioning of the European Union, the Bank's

members shall be the Member States.

Article 4

1. The capital of the Bank shall be EUR 232 392 989 000, subscribed by the Member States as

follows:

Germany 37 578 019 000

France 37 578 019 000

Italy 37 578 019 000

United Kingdom 37 578 019 000

Spain 22 546 811 500

Belgium 10 416 365 500

Netherlands 10 416 365 500

Sweden 6 910 226 000

Denmark 5 274 105 000

Austria 5 170 732 500

Poland 4 810 160 500

Finland 2 970 783 000

26.10.2012 Official Journal of the European Union C 326/251

Greece 2 825 416 500

Portugal 1 820 820 000

Czech Republic 1 774 990 500

Hungary 1 679 222 000

Ireland 1 318 525 000

Romania 1 217 626 000

Slovakia 604 206 500

Slovenia 560 951 500

Bulgaria 410 217 500

Lithuania 351 981 000

Luxembourg 263 707 000

Cyprus 258 583 500

Latvia 214 805 000

Estonia 165 882 000

Malta 98 429 500

The Member States shall be liable only up to the amount of their share of the capital subscribed and

not paid up.

2. The admission of a new member shall entail an increase in the subscribed capital corresponding

to the capital brought in by the new member.

3. The Board of Governors may, acting unanimously, decide to increase the subscribed capital.

4. The share of a member in the subscribed capital may not be transferred, pledged or attached.

Article 5

1. The subscribed capital shall be paid in by Member States to the extent of 5 % on average of the

amounts laid down in Article 4(1).

2. In the event of an increase in the subscribed capital, the Board of Governors, acting unani

mously, shall fix the percentage to be paid up and the arrangements for payment. Cash payments

shall be made exclusively in euro.

3. The Board of Directors may require payment of the balance of the subscribed capital, to such

extent as may be required for the Bank to meet its obligations.

Each Member State shall make this payment in proportion to its share of the subscribed capital.

C 326/252 Official Journal of the European Union 26.10.2012

Article 6

(ex Article 8)

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

Management Committee.

Article 7

(ex Article 9)

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

2. The Board of Governors shall lay down general directives for the credit policy of the Bank, in

accordance with the Union's objectives. The Board of Governors shall ensure that these directives are

implemented.

3. The Board of Governors shall in addition:

(a) decide whether to increase the subscribed capital in accordance with Article 4(3) and Article 5(2);

(b) for the purposes of Article 9(1), determine the principles applicable to financing operations

undertaken within the framework of the Bank's task;

compulsory retirement of the members of the Board of Directors and of the Management

Committee, and those powers provided in the second subparagraph of Article 11(1);

(d) take decisions in respect of the granting of finance for investment operations to be carried out, in

whole or in part, outside the territories of the Member States in accordance with Article 16(1);

(e) approve the annual report of the Board of Directors;

(f) approve the annual balance sheet and profit and loss account;

(g) exercise the other powers and functions conferred by this Statute;

(h) approve the rules of procedure of the Bank.

4. Within the framework of the Treaty and this Statute, the Board of Governors shall be

competent to take, acting unanimously, any decisions concerning the suspension of the operations

of the Bank and, should the event arise, its liquidation.

26.10.2012 Official Journal of the European Union C 326/253

Article 8

(ex Article 10)

Save as otherwise provided in this Statute, decisions of the Board of Governors shall be taken by a

majority of its members. This majority must represent at least 50 % of the subscribed capital.

A qualified majority shall require eighteen votes in favour and 68 % of the subscribed capital.

Abstentions by members present in person or represented shall not prevent the adoption of decisions

requiring unanimity.

Article 9

(ex Article 11)

1. The Board of Directors shall take decisions in respect of granting finance, in particular in the

form of loans and guarantees, and raising loans; it shall fix the interest rates on loans granted and the

commission and other charges. It may, on the basis of a decision taken by a qualified majority,

delegate some of its functions to the Management Committee. It shall determine the terms and

conditions for such delegation and shall supervise its execution.

The Board of Directors shall see that the Bank is properly run; it shall ensure that the Bank is

managed in accordance with the provisions of the Treaties and of this Statute and with the general

directives laid down by the Board of Governors.

At the end of the financial year the Board of Directors shall submit a report to the Board of

Governors and shall publish it when approved.

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

The directors shall be appointed by the Board of Governors for five years, one nominated by each

Member State, and one nominated by the Commission.

The alternate directors shall be appointed by the Board of Governors for five years as shown below:

— two alternates nominated by the Federal Republic of Germany,

— two alternates nominated by the French Republic,

— two alternates nominated by the Italian Republic,

— two alternates nominated by the United Kingdom of Great Britain and Northern Ireland,

— one alternate nominated by common accord of the Kingdom of Spain and the Portuguese

Republic,

C 326/254 Official Journal of the European Union 26.10.2012

— one alternate nominated by common accord of the Kingdom of Belgium, the Grand Duchy of

Luxembourg and the Kingdom of the Netherlands,

— two alternates nominated by common accord of the Kingdom of Denmark, the Hellenic Republic,

Ireland and Romania,

— two alternates nominated by common accord of the Republic of Estonia, the Republic of Latvia,

the Republic of Lithuania, the Republic of Austria, the Republic of Finland and the Kingdom of

Sweden,

— three alternates nominated by common accord of the Republic of Bulgaria, the Czech Republic,

the Republic of Cyprus, the Republic of Hungary, the Republic of Malta, the Republic of Poland,

the Republic of Slovenia and the Slovak Republic,

— one alternate nominated by the Commission.

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

The appointments of the directors and the alternates shall be renewable.

The Rules of Procedure shall lay down arrangements for participating in the meetings of the Board of

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

The President of the Management Committee or, in his absence, one of the Vice-Presidents, shall

preside over meetings of the Board of Directors but shall not vote.

Members of the Board of Directors shall be chosen from persons whose independence and

competence are beyond doubt; they shall be responsible only to the Bank.

3. A director may be compulsorily retired by the Board of Governors only if he no longer fulfils

the conditions required for the performance of his duties; the Board must act by a qualified majority.

If the annual report is not approved, the Board of Directors shall resign.

4. Any vacancy arising as a result of death, voluntary resignation, compulsory retirement or

collective resignation shall be filled in accordance with paragraph 2. A member shall be replaced

for the remainder of his term of office, save where the entire Board of Directors is being replaced.

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

Directors. The Board of Governors shall lay down what activities are incompatible with the duties

of a director or an alternate.

26.10.2012 Official Journal of the European Union C 326/255

Article 10

(ex Article 12)

1. Each director shall have one vote on the Board of Directors. He may delegate his vote in all

cases, according to procedures to be laid down in the Rules of Procedure of the Bank.

2. Save as otherwise provided in this Statute, decisions of the Board of Directors shall be taken by

at least one third of the members entitled to vote representing at least fifty per cent of the subscribed

capital. A qualified majority shall require eighteen votes in favour and sixty-eight per cent of the

subscribed capital. The rules of procedure of the Bank shall lay down the quorum required for the

decisions of the Board of Directors to be valid.

Article 11

(ex Article 13)

1. The Management Committee shall consist of a President and eight Vice-Presidents appointed for

a period of six years by the Board of Governors on a proposal from the Board of Directors.

Their appointments shall be renewable. The Board of Governors, acting unanimously, may vary the

number of members on the Management Committee.

2. On a proposal from the Board of Directors adopted by a qualified majority, the Board of

Governors may, acting in its turn by a qualified majority, compulsorily retire a member of the

Management Committee.

3. The Management Committee shall be responsible for the current business of the Bank, under

the authority of the President and the supervision of the Board of Directors.

It shall prepare the decisions of the Board of Directors, in particular decisions on the raising of loans

and the granting of finance, in particular in the form of loans and guarantees; it shall ensure that

these decisions are implemented.

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

raising loans or granting of finance, in particular in the form of loans and guarantees.

5. The Board of Governors shall determine the remuneration of members of the Management

Committee and shall lay down what activities are incompatible with their duties.

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

other matters.

7. The staff of the Bank shall be under the authority of the President. They shall be engaged and

discharged by him. In the selection of staff, account shall be taken not only of personal ability and

qualifications but also of an equitable representation of nationals of Member States. The Rules of

Procedure shall determine which organ is competent to adopt the provisions applicable to staff.

C 326/256 Official Journal of the European Union 26.10.2012

8. The Management Committee and the staff of the Bank shall be responsible only to the Bank

and shall be completely independent in the performance of their duties.

Article 12

(ex Article 14)

1. A Committee consisting of six members, appointed on the grounds of their competence by the

Board of Governors, shall verify that the activities of the Bank conform to best banking practice and

shall be responsible for the auditing of its accounts.

2. The Committee referred to in paragraph 1 shall annually ascertain that the operations of the

Bank have been conducted and its books kept in a proper manner. To this end, it shall verify that the

Bank's operations have been carried out in compliance with the formalities and procedures laid down

by this Statute and the Rules of Procedure.

3. The Committee referred to in paragraph 1 shall confirm that the financial statements, as well as

any other financial information contained in the annual accounts drawn up by the Board of

Directors, give a true and fair view of the financial position of the Bank in respect of its assets

and liabilities, and of the results of its operations and its cash flows for the financial year under

review.

4. The Rules of Procedure shall specify the qualifications required of the members of the

Committee and lay down the terms and conditions for the Committee's activity.

Article 13

(ex Article 15)

The Bank shall deal with each Member State through the authority designated by that State. In the

conduct of financial operations the Bank shall have recourse to the national central bank of the

Member State concerned or to other financial institutions approved by that State.

Article 14

(ex Article 16)

1. The Bank shall cooperate with all international organisations active in fields similar to its own.

2. The Bank shall seek to establish all appropriate contacts in the interests of cooperation with

banking and financial institutions in the countries to which its operations extend.

Article 15

(ex Article 17)

At the request of a Member State or of the Commission, or on its own initiative, the Board of

Governors shall, in accordance with the same provisions as governed their adoption, interpret or

supplement the directives laid down by it under Article 7 of this Statute.

26.10.2012 Official Journal of the European Union C 326/257

Article 16

(ex Article 18)

1. Within the framework of the task set out in Article 309 of the Treaty on the Functioning of

the European Union, the Bank shall grant finance, in particular in the form of loans and guarantees

to its members or to private or public undertakings for investments to be carried out in the terri

tories of Member States, to the extent that funds are not available from other sources on reasonable

terms.

However, by decision of the Board of Governors, acting by a qualified majority on a proposal from

the Board of Directors, the Bank may grant financing for investment to be carried out, in whole or in

part, outside the territories of Member States.

2. As far as possible, loans shall be granted only on condition that other sources of finance are

also used.

3. When granting a loan to an undertaking or to a body other than a Member State, the Bank

shall make the loan conditional either on a guarantee from the Member State in whose territory the

investment will be carried out or on other adequate guarantees, or on the financial strength of the

debtor.

Furthermore, in accordance with the principles established by the Board of Governors pursuant to

Article 7(3)(b), and where the implementation of projects provided for in Article 309 of the Treaty

on the Functioning of the European Union so requires, the Board of Directors shall, acting by a

qualified majority, lay down the terms and conditions of any financing operation presenting a

specific risk profile and thus considered to be a special activity.

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

the purpose of carrying out projects provided for in Article 309 of the Treaty on the Functioning of

the European Union.

5. The aggregate amount outstanding at any time of loans and guarantees granted by the Bank

shall not exceed 250 % of its subscribed capital, reserves, non-allocated provisions and profit and loss

account surplus. The latter aggregate amount shall be reduced by an amount equal to the amount

subscribed (whether or not paid in) for any equity participation of the Bank.

The amount of the Bank's disbursed equity participations shall not exceed at any time an amount

corresponding to the total of its paid-in subscribed capital, reserves, non-allocated provisions and

profit and loss account surplus.

By way of exception, the special activities of the Bank, as decided by the Board of Governors and the

Board of Directors in accordance with paragraph 3, will have a specific allocation of reserve.

This paragraph shall also apply to the consolidated accounts of the Bank.

6. The Bank shall protect itself against exchange risks by including in contracts for loans and

guarantees such clauses as it considers appropriate.

C 326/258 Official Journal of the European Union 26.10.2012

Article 17

(ex Article 19)

1. Interest rates on loans to be granted by the Bank and commission and other charges shall be

adjusted to conditions prevailing on the capital market and shall be calculated in such a way that the

income therefrom shall enable the Bank to meet its obligations, to cover its expenses and risks and to

build up a reserve fund as provided for in Article 22.

2. The Bank shall not grant any reduction in interest rates. Where a reduction in the interest rate

appears desirable in view of the nature of the investment to be financed, the Member State concerned

or some other agency may grant aid towards the payment of interest to the extent that this is

compatible with Article 107 of the Treaty on the Functioning of the European Union.

Article 18

(ex Article 20)

In its financing operations, the Bank shall observe the following principles:

1. It shall ensure that its funds are employed as rationally as possible in the interests of the Union.

It may grant loans or guarantees only:

(a) where, in the case of investments by undertakings in the production sector, interest and amor

tisation payments are covered out of operating profits or, in the case of other investments, either

by a commitment entered into by the State in which the investment is made or by some other

means; and

(b) where the execution of the investment contributes to an increase in economic productivity in

general and promotes the attainment of the internal market.

2. It shall neither acquire any interest in an undertaking nor assume any responsibility in its

management unless this is required to safeguard the rights of the Bank in ensuring recovery of funds

lent.

However, in accordance with the principles determined by the Board of Governors pursuant to

Article 7(3)(b), and where the implementation of operations provided for in Article 309 of the

Treaty on the Functioning of the European Union so requires, the Board of Directors shall, acting

by a qualified majority, lay down the terms and conditions for taking an equity participation in a

commercial undertaking, normally as a complement to a loan or a guarantee, in so far as this is

required to finance an investment or programme.

3. It may dispose of its claims on the capital market and may, to this end, require its debtors to

issue bonds or other securities.

26.10.2012 Official Journal of the European Union C 326/259

4. Neither the Bank nor the Member States shall impose conditions requiring funds lent by the

Bank to be spent within a specified Member State.

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

6. The Bank shall not finance, in whole or in part, any investment opposed by the Member State

in whose territory it is to be carried out.

7. As a complement to its lending activity, the Bank may provide technical assistance services in

accordance with the terms and conditions laid down by the Board of Governors, acting by a qualified

majority, and in compliance with this Statute.

Article 19

(ex Article 21)

1. Any undertaking or public or private entity may apply directly to the Bank for financing.

Applications to the Bank may also be made either through the Commission or through the Member

State on whose territory the investment will be carried out.

2. Applications made through the Commission shall be submitted for an opinion to the Member

State in whose territory the investment will be carried out. Applications made through a Member

State shall be submitted to the Commission for an opinion. Applications made direct by an under

taking shall be submitted to the Member State concerned and to the Commission.

The Member State concerned and the Commission shall deliver their opinions within two months. If

no reply is received within this period, the Bank may assume that there is no objection to the

investment in question.

3. The Board of Directors shall rule on financing operations submitted to it by the Management

Committee.

4. The Management Committee shall examine whether financing operations submitted to it

comply with the provisions of this Statute, in particular with Articles 16 and 18. Where the

Management Committee is in favour of the financing operation, it shall submit the corresponding

proposal to the Board of Directors; the Committee may make its favourable opinion subject to such

conditions, as it considers essential. Where the Management Committee is against granting the

finance, it shall submit the relevant documents together with its opinion to the Board of Directors.

5. Where the Management Committee delivers an unfavourable opinion, the Board of Directors

may not grant the finance concerned unless its decision is unanimous.

6. Where the Commission delivers an unfavourable opinion, the Board of Directors may not grant

the finance concerned unless its decision is unanimous, the director nominated by the Commission

abstaining.

C 326/260 Official Journal of the European Union 26.10.2012

7. Where both the Management Committee and the Commission deliver an unfavourable opinion,

the Board of Directors may not grant the finance.

8. In the event that a financing operation relating to an approved investment has to be

restructured in order to safeguard the Bank's rights and interests, the Management Committee

shall take without delay the emergency measures which it deems necessary, subject to immediate

reporting thereon to the Board of Directors.

Article 20

(ex Article 22)

1. The Bank shall borrow on the capital markets the funds necessary for the performance of its

tasks.

2. The Bank may borrow on the capital markets of the Member States in accordance with the

legal provisions applying to those markets.

The competent authorities of a Member State with a derogation within the meaning of Article 139(1)

of the Treaty on the Functioning of the European Union may oppose this only if there is reason to

fear serious disturbances on the capital market of that State.

Article 21

(ex Article 23)

1. The Bank may employ any available funds which it does not immediately require to meet its

obligations in the following ways:

(a) it may invest on the money markets;

(b) it may, subject to the provisions of Article 18(2), buy and sell securities;

2. Without prejudice to the provisions of Article 23, the Bank shall not, in managing its invest

ments, engage in any currency arbitrage not directly required to carry out its lending operations or

fulfil commitments arising out of loans raised or guarantees granted by it.

3. The Bank shall, in the fields covered by this Article, act in agreement with the competent

authorities or with the national central bank of the Member State concerned.

26.10.2012 Official Journal of the European Union C 326/261

Article 22

(ex Article 24)

1. A reserve fund of up to 10 % of the subscribed capital shall be built up progressively. If the

state of the liabilities of the Bank should so justify, the Board of Directors may decide to set aside

additional reserves. Until such time as the reserve fund has been fully built up, it shall be fed by:

(a) interest received on loans granted by the Bank out of sums to be paid up by the Member States

pursuant to Article 5;

(b) interest received on loans granted by the Bank out of funds derived from repayment of the loans

referred to in (a);

to the extent that this income is not required to meet the obligations of the Bank or to cover its

expenses.

2. The resources of the reserve fund shall be so invested as to be available at any time to meet the

purpose of the fund.

Article 23

(ex Article 25)

1. The Bank shall at all times be entitled to transfer its assets in the currency of a Member State

whose currency is not the euro in order to carry out financial operations corresponding to the task

set out in Article 309 of the Treaty on the Functioning of the European Union, taking into account

the provisions of Article 21 of this Statute. The Bank shall, as far as possible, avoid making such

transfers if it has cash or liquid assets in the currency required.

2. The Bank may not convert its assets in the currency of a Member State whose currency is not

the euro into the currency of a third country without the agreement of the Member State concerned.

3. The Bank may freely dispose of that part of its capital which is paid up and of any currency

borrowed on markets outside the Union.

4. The Member States undertake to make available to the debtors of the Bank the currency needed

to repay the capital and pay the interest on loans or commission on guarantees granted by the Bank

for investments to be carried out in their territory.

C 326/262 Official Journal of the European Union 26.10.2012

Article 24

(ex Article 26)

If a Member State fails to meet the obligations of membership arising from this Statute, in particular

the obligation to pay its share of the subscribed capital or to service its borrowings, the granting of

loans or guarantees to that Member State or its nationals may be suspended by a decision of the

Board of Governors, acting by a qualified majority.

Such decision shall not release either the State or its nationals from their obligations towards the

Bank.

Article 25

(ex Article 27)

1. If the Board of Governors decides to suspend the operations of the Bank, all its activities shall

cease forthwith, except those required to ensure the due realisation, protection and preservation of its

assets and the settlement of its liabilities.

2. In the event of liquidation, the Board of Governors shall appoint the liquidators and give them

instructions for carrying out the liquidation. It shall ensure that the rights of the members of staff are

safeguarded.

Article 26

(ex Article 28)

1. In each of the Member States, the Bank shall enjoy the most extensive legal capacity accorded

to legal persons under their laws; it may, in particular, acquire or dispose of movable or immovable

property and may be a party to legal proceedings.

2. The property of the Bank shall be exempt from all forms of requisition or expropriation.

Article 27

(ex Article 29)

Disputes between the Bank on the one hand, and its creditors, debtors or any other person on the

other, shall be decided by the competent national courts, save where jurisdiction has been conferred

on the Court of Justice of the European Union. The Bank may provide for arbitration in any contract.

The Bank shall have an address for service in each Member State. It may, however, in any contract,

specify a particular address for service.

The property and assets of the Bank shall not be liable to attachment or to seizure by way of

execution except by decision of a court.

26.10.2012 Official Journal of the European Union C 326/263

Article 28

(ex Article 30)

1. The Board of Governors may, acting unanimously, decide to establish subsidiaries or other

entities, which shall have legal personality and financial autonomy.

2. The Board of Governors shall establish the Statutes of the bodies referred to in paragraph 1.

The Statutes shall define, in particular, their objectives, structure, capital, membership, the location of

their seat, their financial resources, means of intervention and auditing arrangements, as well as their

relationship with the organs of the Bank.

3. The Bank shall be entitled to participate in the management of these bodies and contribute to

their subscribed capital up to the amount determined by the Board of Governors, acting unani

mously.

4. The Protocol on the privileges and immunities of the European Union shall apply to the bodies

referred to in paragraph 1 in so far as they are incorporated under the law of the Union, to the

members of their organs in the performance of their duties as such and to their staff, under the same

terms and conditions as those applicable to the Bank.

Those dividends, capital gains or other forms of revenue stemming from such bodies to which the

members, other than the European Union and the Bank, are entitled, shall however remain subject to

the fiscal provisions of the applicable legislation.

5. The Court of Justice of the European Union shall, within the limits hereinafter laid down, have

jurisdiction in disputes concerning measures adopted by organs of a body incorporated under Union

law. Proceedings against such measures may be instituted by any member of such a body in its

capacity as such or by Member States under the conditions laid down in Article 263 of the Treaty on

the Functioning of the European Union.

6. The Board of Governors may, acting unanimously, decide to admit the staff of bodies incor

porated under Union law to joint schemes with the Bank, in compliance with the respective internal

procedures.

C 326/264 Official Journal of the European Union 26.10.2012

PROTOCOL (No 6)

ON THE LOCATION OF THE SEATS OF THE

INSTITUTIONS AND OF CERTAIN BODIES, OFFICES,

AGENCIES AND DEPARTMENTS OF THE EUROPEAN

UNION

THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES,

HAVING REGARD

to Article 341 of the Treaty on the Functioning of the European Union and

Article 189 of the Treaty establishing the European Atomic Energy Community,

RECALLING AND CONFIRMING

the Decision of 8 April 1965, and without prejudice to the decisions

concerning the seat of future institutions, bodies, offices, agencies and departments,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union, and to the Treaty establishing

the European Atomic Energy Community:

Sole Article

(a) The European Parliament shall have its seat in Strasbourg where the 12 periods of monthly

plenary sessions, including the budget session, shall be held. The periods of additional plenary

sessions shall be held in Brussels. The committees of the European Parliament shall meet in

Brussels. The General Secretariat of the European Parliament and its departments shall remain in

Luxembourg.

(b) The Council shall have its seat in Brussels. During the months of April, June and October, the

Council shall hold its meetings in Luxembourg.

the Decision of 8 April 1965 shall be established in Luxembourg.

(d) The Court of Justice of the European Union shall have its seat in Luxembourg.

(e) The Court of Auditors shall have its seat in Luxembourg.

(f) The Economic and Social Committee shall have its seat in Brussels.

(g) The Committee of the Regions shall have its seat in Brussels.

(h) The European Investment Bank shall have its seat in Luxembourg.

(i) The European Central Bank shall have its seat in Frankfurt.

(j) The European Police Office (Europol) shall have its seat in The Hague.

26.10.2012 Official Journal of the European Union C 326/265

PROTOCOL (No 7)

ON THE PRIVILEGES AND IMMUNITIES OF THE EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

CONSIDERING

that, in accordance with Article 343 of the Treaty on the Functioning of the European

Union and Article 191 of the Treaty establishing the European Atomic Energy Community (‘EAEC’),

the European Union and the EAEC 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 on European

Union, the Treaty on the Functioning of the European Union and the Treaty establishing the

European Atomic Energy Community:

CHAPTER I

PROPERTY, FUNDS, ASSETS AND OPERATIONS OF THE EUROPEAN UNION

Article 1

The premises and buildings of the Union shall be inviolable. They shall be exempt from search,

requisition, confiscation or expropriation. The property and assets of the Union shall not be the

subject of any administrative or legal measure of constraint without the authorisation of the Court of

Justice.

Article 2

The archives of the Union shall be inviolable.

Article 3

The Union, its assets, revenues and other property shall be exempt from all direct taxes.

The governments of the Member States shall, wherever possible, take the appropriate measures to

remit or refund the amount of indirect taxes or sales taxes included in the price of movable or

immovable property, where the Union makes, for its official use, substantial purchases the price of

which includes taxes of this kind. These provisions shall not be applied, however, so as to have the

effect of distorting competition within the Union.

No exemption shall be granted in respect of taxes and dues which amount merely to charges for

public utility services.

C 326/266 Official Journal of the European Union 26.10.2012

Article 4

The Union shall be exempt from all customs duties, prohibitions and restrictions on imports and

exports in respect of articles intended for its official use: articles so imported shall not be disposed of,

whether or not in return for payment, in the territory of the country into which they have been

imported, except under conditions approved by the government of that country.

The Union shall also be exempt from any customs duties and any prohibitions and restrictions on

import and exports in respect of its publications.

CHAPTER II

COMMUNICATIONS AND LAISSEZ-PASSER

Article 5

(ex Article 6)

For their official communications and the transmission of all their documents, the institutions of the

Union shall enjoy in the territory of each Member State the treatment accorded by that State to

diplomatic missions.

Official correspondence and other official communications of the institutions of the Union shall not

be subject to censorship.

Article 6

(ex Article 7)

Laissez-passer in a form to be prescribed by the Council, acting by a simple majority, which shall be

recognised as valid travel documents by the authorities of the Member States, may be issued to

members and servants of the institutions of the Union by the Presidents of these institutions. These

laissez-passer shall be issued to officials and other servants under conditions laid down in the Staff

Regulations of Officials and the Conditions of Employment of other servants of the Union.

The Commission may conclude agreements for these laissez-passer to be recognised as valid travel

documents within the territory of third countries.

CHAPTER III

MEMBERS OF THE EUROPEAN PARLIAMENT

Article 7

(ex Article 8)

No administrative or other restriction shall be imposed on the free movement of Members of the

European Parliament travelling to or from the place of meeting of the European Parliament.

26.10.2012 Official Journal of the European Union C 326/267

Members of the European Parliament shall, in respect of customs and exchange control, be accorded:

(a) by their own government, the same facilities as those accorded to senior officials travelling

abroad on temporary official missions;

(b) by the government of other Member States, the same facilities as those accorded to

representatives of foreign governments on temporary official missions.

Article 8

(ex Article 9)

Members of the European Parliament shall not be subject to any form of inquiry, detention or legal

proceedings in respect of opinions expressed or votes cast by them in the performance of their

duties.

Article 9

(ex Article 10)

During the sessions of the European Parliament, its Members shall enjoy:

(a) in the territory of their own State, the immunities accorded to members of their parliament;

(b) in the territory of any other Member State, immunity from any measure of detention and from

legal proceedings.

Immunity shall likewise apply to Members while they are travelling to and from the place of meeting

of the European Parliament.

Immunity cannot be claimed when a Member is found in the act of committing an offence and shall

not prevent the European Parliament from exercising its right to waive the immunity of one of its

Members.

CHAPTER IV

REPRESENTATIVES OF MEMBER STATES TAKING PART IN THE WORK OF THE INSTITUTIONS

OF THE EUROPEAN UNION

Article 10

(ex Article 11)

Representatives of Member States taking part in the work of the institutions of the Union, their

advisers and technical experts shall, in the performance of their duties and during their travel to and

from the place of meeting, enjoy the customary privileges, immunities and facilities.

This Article shall also apply to members of the advisory bodies of the Union.

C 326/268 Official Journal of the European Union 26.10.2012

CHAPTER V

OFFICIALS AND OTHER SERVANTS OF THE EUROPEAN UNION

Article 11

(ex Article 12)

In the territory of each Member State and whatever their nationality, officials and other servants of

the Union shall:

(a) subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability of

officials and other servants towards the Union and, on the other hand, to the jurisdiction of the

Court of Justice of the European Union in disputes between the Union and its officials and other

servants, be immune from legal proceedings in respect of acts performed by them in their official

capacity, including their words spoken or written. They shall continue to enjoy this immunity

after they have ceased to hold office;

(b) together with their spouses and dependent members of their families, not be subject to

immigration restrictions or to formalities for the registration of aliens;

accorded to officials of international organisations;

(d) enjoy the right to import free of duty their furniture and effects at the time of first taking up

their post in the country concerned, and the right to re-export free of duty their furniture and

effects, on termination of their duties in that country, subject in either case to the conditions

considered to be necessary by the government of the country in which this right is exercised;

(e) have the right to import free of duty a motor car for their personal use, acquired either in the

country of their last residence or in the country of which they are nationals on the terms ruling

in the home market in that country, and to re-export it free of duty, subject in either case to the

conditions considered to be necessary by the government of the country concerned.

Article 12

(ex Article 13)

Officials and other servants of the Union shall be liable to a tax for the benefit of the Union on

salaries, wages and emoluments paid to them by the Union, in accordance with the conditions and

procedure laid down by the European Parliament and the Council, acting by means of regulations in

accordance with the ordinary legislative procedure and after consultation of the institutions

concerned.

They shall be exempt from national taxes on salaries, wages and emoluments paid by the Union.

26.10.2012 Official Journal of the European Union C 326/269

Article 13

(ex Article 14)

In the application of income tax, wealth tax and death duties and in the application of conventions

on the avoidance of double taxation concluded between Member States of the Union, officials and

other servants of the Union who, solely by reason of the performance of their duties in the service of

the Union, establish their residence in the territory of a Member State other than their country of

domicile for tax purposes at the time of entering the service of the Union, shall be considered, both

in the country of their actual residence and in the country of domicile for tax purposes, as having

maintained their domicile in the latter country provided that it is a member of the Union. This

provision shall also apply to a spouse, to the extent that the latter is not separately engaged in a

gainful occupation, and to children dependent on and in the care of the persons referred to in this

Article.

Movable property belonging to persons referred to in the preceding paragraph and situated in the

territory of the country where they are staying shall be exempt from death duties in that country;

such property shall, for the assessment of such duty, be considered as being in the country of

domicile for tax purposes, subject to the rights of third countries and to the possible application

of provisions of international conventions on double taxation.

Any domicile acquired solely by reason of the performance of duties in the service of other

international organisations shall not be taken into consideration in applying the provisions of this

Article.

Article 14

(ex Article 15)

The European Parliament and the Council, acting by means of regulations in accordance with the

ordinary legislative procedure and after consultation of the institutions concerned, shall lay down the

scheme of social security benefits for officials and other servants of the Union.

Article 15

(ex Article 16)

The European Parliament and the Council, acting by means of regulations in accordance with the

ordinary legislative procedure, and after consulting the other institutions concerned, shall determine

the categories of officials and other servants of the Union to whom the provisions of Article 11, the

second paragraph of Article 12, and Article 13 shall apply, in whole or in part.

The names, grades and addresses of officials and other servants included in such categories shall be

communicated periodically to the governments of the Member States.

C 326/270 Official Journal of the European Union 26.10.2012

CHAPTER VI

PRIVILEGES AND IMMUNITIES OF MISSIONS OF THIRD COUNTRIES ACCREDITED TO THE

EUROPEAN UNION

Article 16

(ex Article 17)

The Member State in whose territory the Union has its seat shall accord the customary diplomatic

immunities and privileges to missions of third countries accredited to the Union.

CHAPTER VII

GENERAL PROVISIONS

Article 17

(ex Article 18)

Privileges, immunities and facilities shall be accorded to officials and other servants of the Union

solely in the interests of the Union.

Each institution of the Union shall be required to waive the immunity accorded to an official or

other servant wherever that institution considers that the waiver of such immunity is not contrary to

the interests of the Union.

Article 18

(ex Article 19)

The institutions of the Union shall, for the purpose of applying this Protocol, cooperate with the

responsible authorities of the Member States concerned.

Article 19

(ex Article 20)

Articles 11 to 14 and Article 17 shall apply to the President of the European Council.

They shall also apply to Members of the Commission.

Article 20

(ex Article 21)

Articles 11 to 14 and Article 17 shall apply to the Judges, the Advocates-General, the Registrars and

the Assistant Rapporteurs of the Court of Justice of the European Union, without prejudice to the

provisions of Article 3 of the Protocol on the Statute of the Court of Justice of the European Union

relating to immunity from legal proceedings of Judges and Advocates-General.

26.10.2012 Official Journal of the European Union C 326/271

Article 21

(ex Article 22)

This Protocol shall also apply to the European Investment Bank, to the members of its organs, to its

staff and to the representatives of the Member States taking part in its activities, without prejudice to

the provisions of the Protocol on the Statute of the Bank.

The European Investment 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. Similarly, its dissolution or

liquidation shall not give rise to any imposition. Finally, the activities of the Bank and of its organs

carried on in accordance with its Statute shall not be subject to any turnover tax.

Article 22

(ex 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.

C 326/272 Official Journal of the European Union 26.10.2012

PROTOCOL (No 8)

RELATING TO ARTICLE 6(2) OF THE TREATY ON EUROPEAN UNION

ON THE ACCESSION OF THE UNION TO THE EUROPEAN

CONVENTION ON THE PROTECTION OF HUMAN RIGHTS AND

FUNDAMENTAL FREEDOMS

THE HIGH CONTRACTING PARTIES,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

The agreement relating to the accession of the Union to the European Convention on the Protection

of Human Rights and Fundamental Freedoms (hereinafter referred to as the ‘European Convention’)

provided for in Article 6(2) of the Treaty on European Union shall make provision for preserving the

specific characteristics of the Union and Union law, in particular with regard to:

(a) the specific arrangements for the Union's possible participation in the control bodies of the

European Convention;

(b) the mechanisms necessary to ensure that proceedings by non-Member States and individual

applications are correctly addressed to Member States and/or the Union as appropriate.

Article 2

The agreement referred to in Article 1 shall ensure that accession of the Union shall not affect the

competences of the Union or the powers of its institutions. It shall ensure that nothing therein affects

the situation of Member States in relation to the European Convention, in particular in relation to

the Protocols thereto, measures taken by Member States derogating from the European Convention

in accordance with Article 15 thereof and reservations to the European Convention made by Member

States in accordance with Article 57 thereof.

Article 3

Nothing in the agreement referred to in Article 1 shall affect Article 344 of the Treaty on the

Functioning of the European Union.

26.10.2012 Official Journal of the European Union C 326/273

PROTOCOL (No 9)

ON THE DECISION OF THE COUNCIL RELATING

TO THE IMPLEMENTATION OF ARTICLE 16(4) OF THE

TREATY ON EUROPEAN UNION AND ARTICLE 238(2)

OF THE TREATY ON THE FUNCTIONING OF THE

EUROPEAN UNION BETWEEN 1 NOVEMBER 2014

AND 31 MARCH 2017 ON THE ONE HAND, AND AS

FROM 1 APRIL 2017 ON THE OTHER

THE HIGH CONTRACTING PARTIES,

TAKING INTO ACCOUNT

the fundamental importance that agreeing on the Decision of the Council

relating to the implementation of Article 16(4) of the Treaty on European Union and Article 238(2)

of the Treaty on the Functioning of the European Union between 1 November 2014 and 31 March

2017 on the one hand, and as from 1 April 2017 on the other (hereinafter ‘the Decision’), had when

approving the Treaty of Lisbon,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Sole Article

Before the examination by the Council of any draft which would aim either at amending or

abrogating the Decision or any of its provisions, or at modifying indirectly its scope or its

meaning through the modification of another legal act of the Union, the European Council shall

hold a preliminary deliberation on the said draft, acting by consensus in accordance with Article 15(4)

of the Treaty on European Union.

C 326/274 Official Journal of the European Union 26.10.2012

PROTOCOL (No 10)

ON PERMANENT STRUCTURED COOPERATION

ESTABLISHED BY ARTICLE 42 OF THE TREATY ON

EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

HAVING REGARD TO

Article 42(6) and Article 46 of the Treaty on European Union,

RECALLING

that the Union is pursuing a common foreign and security policy based on the

achievement of growing convergence of action by Member States,

RECALLING

that the common security and defence policy is an integral part of the common foreign

and security policy; that it provides the Union with operational capacity drawing on civil and military

assets; that the Union may use such assets in the tasks referred to in Article 43 of the Treaty on

European Union outside the Union for peace-keeping, conflict prevention and strengthening inter

national security in accordance with the principles of the United Nations Charter; that the

performance of these tasks is to be undertaken using capabilities provided by the Member States

in accordance with the principle of a single set of forces,

RECALLING

that the common security and defence policy of the Union does not prejudice the specific

character of the security and defence policy of certain Member States,

RECALLING

that the common security and defence policy of the Union respects the obligations under

the North Atlantic Treaty of those Member States which see their common defence realised in the

North Atlantic Treaty Organisation, which remains the foundation of the collective defence of its

members, and is compatible with the common security and defence policy established within that

framework,

CONVINCED

that a more assertive Union role in security and defence matters will contribute to the

vitality of a renewed Atlantic Alliance, in accordance with the Berlin Plus arrangements,

DETERMINED

to ensure that the Union is capable of fully assuming its responsibilities within the

international community,

RECOGNISING

that the United Nations Organisation may request the Union's assistance for the urgent

implementation of missions undertaken under Chapters VI and VII of the United Nations Charter,

RECOGNISING

that the strengthening of the security and defence policy will require efforts by Member

States in the area of capabilities,

CONSCIOUS

that embarking on a new stage in the development of the European security and defence

policy involves a determined effort by the Member States concerned,

RECALLING

the importance of the High Representative of the Union for Foreign Affairs and Security

Policy being fully involved in proceedings relating to permanent structured cooperation,

26.10.2012 Official Journal of the European Union C 326/275

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

Union and to the Treaty on the Functioning of the European Union:

Article 1

The permanent structured cooperation referred to in Article 42(6) of the Treaty on European Union

shall be open to any Member State which undertakes, from the date of entry into force of the Treaty

of Lisbon, to:

(a) proceed more intensively to develop its defence capacities through the development of its

national contributions and participation, where appropriate, in multinational forces, in the

main European equipment programmes, and in the activity of the Agency in the field of

defence capabilities development, research, acquisition and armaments (European Defence

Agency), and

(b) have the capacity to supply by 2010 at the latest, either at national level or as a component of

multinational force groups, targeted combat units for the missions planned, structured at a

tactical level as a battle group, with support elements including transport and logistics,

capable of carrying out the tasks referred to in Article 43 of the Treaty on European Union,

within a period of five to 30 days, in particular in response to requests from the United Nations

Organisation, and which can be sustained for an initial period of 30 days and be extended up to

at least 120 days.

Article 2

To achieve the objectives laid down in Article 1, Member States participating in permanent structured

cooperation shall undertake to:

(a) cooperate, as from the entry into force of the Treaty of Lisbon, with a view to achieving

approved objectives concerning the level of investment expenditure on defence equipment,

and regularly review these objectives, in the light of the security environment and of the

Union's international responsibilities;

(b) bring their defence apparatus into line with each other as far as possible, particularly by

harmonising the identification of their military needs, by pooling and, where appropriate,

specialising their defence means and capabilities, and by encouraging cooperation in the fields

of training and logistics;

their forces, in particular by identifying common objectives regarding the commitment of forces,

including possibly reviewing their national decision-making procedures;

(d) work together to ensure that they take the necessary measures to make good, including through

multinational approaches, and without prejudice to undertakings in this regard within the North

Atlantic Treaty Organisation, the shortfalls perceived in the framework of the ‘Capability

Development Mechanism’;

C 326/276 Official Journal of the European Union 26.10.2012

(e) take part, where appropriate, in the development of major joint or European equipment

programmes in the framework of the European Defence Agency.

Article 3

The European Defence Agency shall contribute to the regular assessment of participating Member

States' contributions with regard to capabilities, in particular contributions made in accordance with

the criteria to be established, inter alia, on the basis of Article 2, and shall report thereon at least once

a year. The assessment may serve as a basis for Council recommendations and decisions adopted in

accordance with Article 46 of the Treaty on European Union.

26.10.2012 Official Journal of the European Union C 326/277

PROTOCOL (No 11)

ON ARTICLE 42 OF THE TREATY ON EUROPEAN

UNION

THE HIGH CONTRACTING PARTIES,

BEARING IN MIND

the need to implement fully the provisions of Article 42(2) of the Treaty on

European Union,

BEARING IN MIND

that the policy of the Union in accordance with Article 42 shall not prejudice the

specific character of the security and defence policy of certain Member States and shall respect the

obligations of certain Member States, which see their common defence realised in NATO, under the

North Atlantic Treaty and be compatible with the common security and defence policy established

within that framework,

HAVE AGREED UPON

the following provision, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

The European Union shall draw up, together with the Western European Union, arrangements for

enhanced cooperation between them.

C 326/278 Official Journal of the European Union 26.10.2012

PROTOCOL (No 12)

ON THE EXCESSIVE DEFICIT PROCEDURE

THE HIGH CONTRACTING PARTIES,

DESIRING TO

lay down the details of the excessive deficit procedure referred to in Article 126 of the

Treaty on the Functioning of the European Union,

HAVE AGREED

upon the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

The reference values referred to in Article 126(2) of the Treaty on the Functioning of the European

Union 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 126 of the said 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

26.10.2012 Official Journal of the European Union C 326/279

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 these Treaties.

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.

C 326/280 Official Journal of the European Union 26.10.2012

PROTOCOL (No 13)

ON THE CONVERGENCE CRITERIA

THE HIGH CONTRACTING PARTIES,

DESIRING

to lay down the details of the convergence criteria which shall guide the Union in taking

decisions to end the derogations of those Member States with a derogation, referred to in Article 140

of the Treaty on the Functioning of the European Union,

HAVE AGREED

upon the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

The criterion on price stability referred to in the first indent of Article 140(1) of the Treaty on the

Functioning of the European Union 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 examin

ation, that does not exceed by more than 1 ½ 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 140(1)

of the said Treaty shall mean that at the time of the examination the Member State is not the subject

of a Council decision under Article 126(6) of the said 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 140(1) of the said Treaty shall mean that a Member State has

respected the normal fluctuation margins provided for by the exchange-rate mechanism on the

European Monetary System without severe tensions for at least the last two years before the examin

ation. In particular, the Member State shall not have devalued its currency's bilateral central rate

against the euro 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 140(1) of

the said 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

26.10.2012 Official Journal of the European Union C 326/281

than two 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 ECB and the Economic and Financial Committee, adopt appropriate

provisions to lay down the details of the convergence criteria referred to in Article 140(1) of the

said Treaty, which shall then replace this Protocol.

C 326/282 Official Journal of the European Union 26.10.2012

PROTOCOL (No 14)

ON THE EURO GROUP

THE HIGH CONTRACTING PARTIES,

DESIRING

to promote conditions for stronger economic growth in the European Union and, to that

end, to develop ever-closer coordination of economic policies within the euro area,

CONSCIOUS

of the need to lay down special provisions for enhanced dialogue between the Member

States whose currency is the euro, pending the euro becoming the currency of all Member States of

the Union,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

The Ministers of the Member States whose currency is the euro shall meet informally. Such meetings

shall take place, when necessary, to discuss questions related to the specific responsibilities they share

with regard to the single currency. The Commission shall take part in the meetings. The European

Central Bank shall be invited to take part in such meetings, which shall be prepared by the represen

tatives of the Ministers with responsibility for finance of the Member States whose currency is the

euro and of the Commission.

Article 2

The Ministers of the Member States whose currency is the euro shall elect a president for two and a

half years, by a majority of those Member States.

26.10.2012 Official Journal of the European Union C 326/283

PROTOCOL (No 15)

ON CERTAIN PROVISIONS RELATING TO THE

UNITED KINGDOM OF GREAT BRITAIN AND

NORTHERN IRELAND

THE HIGH CONTRACTING PARTIES,

RECOGNISING

that the United Kingdom shall not be obliged or committed to adopt the euro without

a separate decision to do so by its government and parliament,

GIVEN

that on 16 October 1996 and 30 October 1997 the United Kingdom government notified the

Council of its intention not to participate in the third stage of economic and monetary union,

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

upon the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

1. Unless the United Kingdom notifies the Council that it intends to adopt the euro, it shall be

under no obligation to do so.

2. In view of the notice given to the Council by the United Kingdom government on 16 October

1996 and 30 October 1997, paragraphs 3 to 8 and 10 shall apply to the United Kingdom.

3. The United Kingdom shall retain its powers in the field of monetary policy according to

national law.

4. Articles 119, second paragraph, 126(1), (9) and (11), 127(1) to (5), 128, 130, 131, 132, 133,

138, 140(3), 219, 282(2), with the exception of the first and last sentences thereof, 282(5), and 283

of the Treaty on the Functioning of the European Union shall not apply to the United Kingdom. The

same applies to Article 121(2) of this Treaty as regards the adoption of the parts of the broad

economic policy guidelines which concern the euro area generally. In these provisions references to

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

central banks shall not include the Bank of England.

5. The United Kingdom shall endeavour to avoid an excessive government deficit.

Articles 143 and 144 of the Treaty on the Functioning of the European Union shall continue to

apply to the United Kingdom. Articles 134(4) and 142 shall apply to the United Kingdom as if it had

a derogation.

C 326/284 Official Journal of the European Union 26.10.2012

6. The voting rights of the United Kingdom shall be suspended in respect of acts of the Council

referred to in the Articles listed in paragraph 4 and in the instances referred to in the first

subparagraph of Article 139(4) of the Treaty on the Functioning of the European Union. For this

purpose the second subparagraph of Article 139(4) of the Treaty shall apply.

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 the second

subparagraph of Article 283(2) of the said Treaty.

7. 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 and

49 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 Union 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.

8. Article 141(1) of the Treaty on the Functioning of the European Union and Articles 43 to 47

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 43 to 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

adopt the euro.

(b) In addition to the tasks referred to in Article 46, 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 9(a) and 9(c).

its operational costs on the same basis as national central banks of Member States with a

derogation.

9. The United Kingdom may notify the Council at any time of its intention to adopt the euro. In

that event:

(a) The United Kingdom shall have the right to adopt the euro 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 140(1) and (2) of the

Treaty on the Functioning of the European Union, shall decide whether it fulfils 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.

26.10.2012 Official Journal of the European Union C 326/285

Article 140(3) of the said Treaty, shall take all other necessary decisions to enable the United

Kingdom to adopt the euro.

If the United Kingdom adopts the euro pursuant to the provisions of this Protocol, paragraphs 3 to 8

shall cease to have effect.

10. Notwithstanding Article 123 of the Treaty on the Functioning of the European Union 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 adopt the

euro.

C 326/286 Official Journal of the European Union 26.10.2012

PROTOCOL (No 16)

ON CERTAIN PROVISIONS RELATING TO DENMARK

THE HIGH CONTRACTING PARTIES,

TAKING INTO ACCOUNT

that the Danish Constitution contains provisions which may imply a

referendum in Denmark prior to Denmark renouncing its exemption,

GIVEN THAT

, on 3 November 1993, the Danish Government notified the Council of its intention not

to participate in the third stage of economic and monetary union,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

1. In view of the notice given to the Council by the Danish Government on 3 November 1993,

Denmark shall have an exemption. The effect of the exemption shall be that all Articles and

provisions of the Treaties and the Statute of the ESCB referring to a derogation shall be

applicable to Denmark.

2. As for the abrogation of the exemption, the procedure referred to in Article 140 shall only be

initiated at the request of Denmark.

3. In the event of abrogation of the exemption status, the provisions of this Protocol shall cease to

apply.

26.10.2012 Official Journal of the European Union C 326/287

PROTOCOL (No 17)

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 on European

Union and the Treaty on the Functioning of the European Union:

The provisions of Article 14 of the Protocol on the Statute 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 existing tasks concerning those parts of the Kingdom of Denmark which are not part of the

Union.

C 326/288 Official Journal of the European Union 26.10.2012

PROTOCOL (No 18)

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 on European

Union and to the Treaty on the Functioning of the European Union:

France will keep the privilege of monetary emission in New Caledonia, French Polynesia and Wallis

and Futuna under the terms established by its national laws, and will be solely entitled to determine

the parity of the CFP franc.

26.10.2012 Official Journal of the European Union C 326/289

PROTOCOL (No 19)

ON THE SCHENGEN ACQUIS INTEGRATED INTO THE

FRAMEWORK OF THE EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

NOTING

that the Agreements on the gradual abolition of checks at common borders signed by some

Member States of the European Union in Schengen on 14 June 1985 and on 19 June 1990, as well

as related agreements and the rules adopted on the basis of these agreements, have been integrated

into the framework of the European Union by the Treaty of Amsterdam of 2 October 1997,

DESIRING

to preserve the Schengen acquis, as developed since the entry into force of the Treaty of

Amsterdam, and to develop this acquis in order to contribute towards achieving the objective of

offering citizens of the Union an area of freedom, security and justice without internal borders,

TAKING INTO ACCOUNT

the special position of Denmark,

TAKING INTO ACCOUNT

the fact that Ireland and the United Kingdom of Great Britain and Northern

Ireland do not participate in all the provisions of the Schengen acquis; that provision should,

however, be made to allow those Member States to accept other provisions of this acquis in full

or in part,

RECOGNISING

that, as a consequence, it is necessary to make use of the provisions of the Treaties

concerning closer cooperation between some Member States,

TAKING INTO ACCOUNT

the need to maintain a special relationship with the Republic of Iceland and

the Kingdom of Norway, both States being bound by the provisions of the Nordic passport union,

together with the Nordic States which are members of the European Union,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

The Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark,

the Federal Republic of Germany, the Republic of Estonia, the Hellenic Republic, the Kingdom of

Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the

Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, Malta, the

Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese

Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland and

the Kingdom of Sweden shall be authorised to establish closer cooperation among themselves in

areas covered by provisions defined by the Council which constitute the Schengen acquis. This

cooperation shall be conducted within the institutional and legal framework of the European

Union and with respect for the relevant provisions of the Treaties.

C 326/290 Official Journal of the European Union 26.10.2012

Article 2

The Schengen acquis shall apply to the Member States referred to in Article 1, without prejudice to

Article 3 of the Act of Accession of 16 April 2003 or to Article 4 of the Act of Accession of

25 April 2005. The Council will substitute itself for the Executive Committee established by the

Schengen agreements.

Article 3

The participation of Denmark in the adoption of measures constituting a development of the

Schengen acquis, as well as the implementation of these measures and their application to

Denmark, shall be governed by the relevant provisions of the Protocol on the position of Denmark.

Article 4

Ireland and the United Kingdom of Great Britain and Northern Ireland may at any time request to

take part in some or all of the provisions of the Schengen acquis.

The Council shall decide on the request with the unanimity of its members referred to in Article 1

and of the representative of the Government of the State concerned.

Article 5

1. Proposals and initiatives to build upon the Schengen acquis shall be subject to the relevant

provisions of the Treaties.

In this context, where either Ireland or the United Kingdom has not notified the Council in writing

within a reasonable period that it wishes to take part, the authorisation referred to in Article 329 of

the Treaty on the Functioning of the European Union shall be deemed to have been granted to the

Member States referred to in Article 1 and to Ireland or the United Kingdom where either of them

wishes to take part in the areas of cooperation in question.

2. Where either Ireland or the United Kingdom is deemed to have given notification pursuant to a

decision under Article 4, it may nevertheless notify the Council in writing, within three months, that

it does not wish to take part in such a proposal or initiative. In that case, Ireland or the United

Kingdom shall not take part in its adoption. As from the latter notification, the procedure for

adopting the measure building upon the Schengen acquis shall be suspended until the end of the

procedure set out in paragraphs 3 or 4 or until the notification is withdrawn at any moment during

that procedure.

3. For the Member State having made the notification referred to in paragraph 2, any decision

taken by the Council pursuant to Article 4 shall, as from the date of entry into force of the proposed

measure, cease to apply to the extent considered necessary by the Council and under the conditions

to be determined in a decision of the Council acting by a qualified majority on a proposal from the

Commission. That decision shall be taken in accordance with the following criteria: the Council shall

26.10.2012 Official Journal of the European Union C 326/291

seek to retain the widest possible measure of participation of the Member State concerned without

seriously affecting the practical operability of the various parts of the Schengen acquis, while

respecting their coherence. The Commission shall submit its proposal as soon as possible after

the notification referred to in paragraph 2. The Council shall, if needed after convening two

successive meetings, act within four months of the Commission proposal.

4. If, by the end of the period of four months, the Council has not adopted a decision, a Member

State may, without delay, request that the matter be referred to the European Council. In that case,

the European Council shall, at its next meeting, acting by a qualified majority on a proposal from the

Commission, take a decision in accordance with the criteria referred to in paragraph 3.

5. If, by the end of the procedure set out in paragraphs 3 or 4, the Council or, as the case may be,

the European Council has not adopted its decision, the suspension of the procedure for adopting the

measure building upon the Schengen acquis shall be terminated. If the said measure is subsequently

adopted any decision taken by the Council pursuant to Article 4 shall, as from the date of entry into

force of that measure, cease to apply for the Member State concerned to the extent and under the

conditions decided by the Commission, unless the said Member State has withdrawn its notification

referred to in paragraph 2 before the adoption of the measure. The Commission shall act by the date

of this adoption. When taking its decision, the Commission shall respect the criteria referred to in

paragraph 3.

Article 6

The Republic of Iceland and the Kingdom of Norway shall be associated with the implementation of

the Schengen acquis and its further development. Appropriate procedures shall be agreed to that

effect in an Agreement to be concluded with those States by the Council, acting by the unanimity of

its Members mentioned in Article 1. Such Agreement shall include provisions on the contribution of

Iceland and Norway to any financial consequences resulting from the implementation of this

Protocol.

A separate Agreement shall be concluded with Iceland and Norway by the Council, acting

unanimously, for the establishment of rights and obligations between Ireland and the United

Kingdom of Great Britain and Northern Ireland on the one hand, and Iceland and Norway on the

other, in domains of the Schengen acquis which apply to these States.

Article 7

For the purposes of the negotiations for the admission of new Member States into the European

Union, the Schengen acquis and further measures taken by the institutions within its scope shall be

regarded as an acquis which must be accepted in full by all States candidates for admission.

C 326/292 Official Journal of the European Union 26.10.2012

PROTOCOL (No 20)

ON THE APPLICATION OF CERTAIN ASPECTS OF ARTICLE 26

OF THE TREATY ON THE FUNCTIONING

OF THE EUROPEAN UNION TO THE UNITED

KINGDOM AND TO IRELAND

THE HIGH CONTRACTING PARTIES,

DESIRING

to settle certain questions relating to the United Kingdom and Ireland,

HAVING REGARD

to the existence for many years of special travel arrangements between the United

Kingdom and Ireland,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and the Treaty on the Functioning of the European Union:

Article 1

The United Kingdom shall be entitled, notwithstanding Articles 26 and 77 of the Treaty on the

Functioning of the European Union, any other provision of that Treaty or of the Treaty on European

Union, any measure adopted under those Treaties, or any international agreement concluded by the

Union or by the Union and its Member States with one or more third States, to exercise at its

frontiers with other Member States such controls on persons seeking to enter the United Kingdom as

it may consider necessary for the purpose:

(a) of verifying the right to enter the United Kingdom of citizens of Member States and of their

dependants exercising rights conferred by Union law, as well as citizens of other States on whom

such rights have been conferred by an agreement by which the United Kingdom is bound; and

(b) of determining whether or not to grant other persons permission to enter the United Kingdom.

Nothing in Articles 26 and 77 of the Treaty on the Functioning of the European Union or in any

other provision of that Treaty or of the Treaty on European Union or in any measure adopted under

them shall prejudice the right of the United Kingdom to adopt or exercise any such controls.

References to the United Kingdom in this Article shall include territories for whose external

relations the United Kingdom is responsible.

Article 2

The United Kingdom and Ireland may continue to make arrangements between themselves relating

to the movement of persons between their territories ("the Common Travel Area"), while fully

respecting the rights of persons referred to in Article 1, first paragraph, point (a) of this Protocol.

26.10.2012 Official Journal of the European Union C 326/293

Accordingly, as long as they maintain such arrangements, the provisions of Article 1 of this Protocol

shall apply to Ireland under the same terms and conditions as for the United Kingdom. Nothing in

Articles 26 and 77 of the Treaty on the Functioning of the European Union, in any other provision

of that Treaty or of the Treaty on European Union or in any measure adopted under them, shall

affect any such arrangements.

Article 3

The other Member States shall be entitled to exercise at their frontiers or at any point of entry into

their territory such controls on persons seeking to enter their territory from the United Kingdom or

any territories whose external relations are under its responsibility for the same purposes stated in

Article 1 of this Protocol, or from Ireland as long as the provisions of Article 1 of this Protocol apply

to Ireland.

Nothing in Articles 26 and 77 of the Treaty on the Functioning of the European Union or in any

other provision of that Treaty or of the Treaty on European Union or in any measure adopted under

them shall prejudice the right of the other Member States to adopt or exercise any such controls.

C 326/294 Official Journal of the European Union 26.10.2012

PROTOCOL (No 21)

ON THE POSITION OF THE UNITED KINGDOM AND

IRELAND IN RESPECT OF THE AREA OF FREEDOM,

SECURITY AND JUSTICE

THE HIGH CONTRACTING PARTIES,

DESIRING

to settle certain questions relating to the United Kingdom and Ireland,

HAVING REGARD

to the Protocol on the application of certain aspects of Article 26 of the Treaty on

the Functioning of the European Union to the United Kingdom and to Ireland,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and the Treaty on the Functioning of the European Union:

Article 1

Subject to Article 3, the United Kingdom and Ireland shall not take part in the adoption by the

Council of proposed measures pursuant to Title V of Part Three of the Treaty on the Functioning of

the European Union. The unanimity of the members of the Council, with the exception of the

representatives of the governments of the United Kingdom and Ireland, shall be necessary for

decisions of the Council which must be adopted unanimously.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 238(3)

of the Treaty on the Functioning of the European Union.

Article 2

In consequence of Article 1 and subject to Articles 3, 4 and 6, none of the provisions of Title V of

Part Three of the Treaty on the Functioning of the European Union, no measure adopted pursuant to

that Title, no provision of any international agreement concluded by the Union pursuant to that

Title, and no decision of the Court of Justice interpreting any such provision or measure shall be

binding upon or applicable in the United Kingdom or Ireland; and no such provision, measure or

decision shall in any way affect the competences, rights and obligations of those States; and no such

provision, measure or decision shall in any way affect the Community or Union acquis nor form part

of Union law as they apply to the United Kingdom or Ireland.

Article 3

1. The United Kingdom or Ireland may notify the President of the Council in writing, within three

months after a proposal or initiative has been presented to the Council pursuant to Title V of Part

Three of the Treaty on the Functioning of the European Union, that it wishes to take part in the

adoption and application of any such proposed measure, whereupon that State shall be entitled

to do so.

26.10.2012 Official Journal of the European Union C 326/295

The unanimity of the members of the Council, with the exception of a member which has not made

such a notification, shall be necessary for decisions of the Council which must be adopted unani

mously. A measure adopted under this paragraph shall be binding upon all Member States which

took part in its adoption.

Measures adopted pursuant to Article 70 of the Treaty on the Functioning of the European Union

shall lay down the conditions for the participation of the United Kingdom and Ireland in the

evaluations concerning the areas covered by Title V of Part Three of that Treaty.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 238(3)

of the Treaty on the Functioning of the European Union.

2. If after a reasonable period of time a measure referred to in paragraph 1 cannot be adopted

with the United Kingdom or Ireland taking part, the Council may adopt such measure in accordance

with Article 1 without the participation of the United Kingdom or Ireland. In that case Article 2

applies.

Article 4

The United Kingdom or Ireland may at any time after the adoption of a measure by the Council

pursuant to Title V of Part Three of the Treaty on the Functioning of the European Union notify its

intention to the Council and to the Commission that it wishes to accept that measure. In that case,

the procedure provided for in Article 331(1) of the Treaty on the Functioning of the European Union

shall apply mutatis mutandis.

Article 4a

1. The provisions of this Protocol apply for the United Kingdom and Ireland also to measures

proposed or adopted pursuant to Title V of Part Three of the Treaty on the Functioning of the

European Union amending an existing measure by which they are bound.

2. However, in cases where the Council, acting on a proposal from the Commission, determines

that the non-participation of the United Kingdom or Ireland in the amended version of an existing

measure makes the application of that measure inoperable for other Member States or the Union, it

may urge them to make a notification under Article 3 or 4. For the purposes of Article 3, a further

period of two months starts to run as from the date of such determination by the Council.

If at the expiry of that period of two months from the Council's determination the United Kingdom

or Ireland has not made a notification under Article 3 or Article 4, the existing measure shall no

longer be binding upon or applicable to it, unless the Member State concerned has made a notifi

cation under Article 4 before the entry into force of the amending measure. This shall take effect

from the date of entry into force of the amending measure or of expiry of the period of two months,

whichever is the later.

C 326/296 Official Journal of the European Union 26.10.2012

For the purpose of this paragraph, the Council shall, after a full discussion of the matter, act by a

qualified majority of its members representing the Member States participating or having participated

in the adoption of the amending measure. A qualified majority of the Council shall be defined in

accordance with Article 238(3)(a) of the Treaty on the Functioning of the European Union.

3. The Council, acting by a qualified majority on a proposal from the Commission, may

determine that the United Kingdom or Ireland shall bear the direct financial consequences, if any,

necessarily and unavoidably incurred as a result of the cessation of its participation in the existing

measure.

4. This Article shall be without prejudice to Article 4.

Article 5

A Member State which is not bound by a measure adopted pursuant to Title V of Part Three of the

Treaty on the Functioning of the European Union shall bear no financial consequences of that

measure other than administrative costs entailed for the institutions, unless all members of the

Council, acting unanimously after consulting the European Parliament, decide otherwise.

Article 6

Where, in cases referred to in this Protocol, the United Kingdom or Ireland is bound by a measure

adopted by the Council pursuant to Title V of Part Three of the Treaty on the Functioning of the

European Union, the relevant provisions of the Treaties shall apply to that State in relation to that

measure.

Article 6a

The United Kingdom and Ireland shall not be bound by the rules laid down on the basis of Article 16

of the Treaty on the Functioning of the European Union which relate to the processing of personal

data by the Member States when carrying out activities which fall within the scope of Chapter 4 or

Chapter 5 of Title V of Part Three of that Treaty where the United Kingdom and Ireland are not

bound by the rules governing the forms of judicial cooperation in criminal matters or police

cooperation which require compliance with the provisions laid down on the basis of Article 16.

Article 7

Articles 3, 4 and 4a shall be without prejudice to the Protocol on the Schengen acquis integrated into

the framework of the European Union.

Article 8

Ireland may notify the Council in writing that it no longer wishes to be covered by the terms of this

Protocol. In that case, the normal treaty provisions will apply to Ireland.

26.10.2012 Official Journal of the European Union C 326/297

Article 9

With regard to Ireland, this Protocol shall not apply to Article 75 of the Treaty on the Functioning of

the European Union.

C 326/298 Official Journal of the European Union 26.10.2012

PROTOCOL (No 22)

ON THE POSITION OF DENMARK

THE HIGH CONTRACTING PARTIES,

RECALLING

the Decision of the Heads of State or Government, meeting within the European Council

at Edinburgh on 12 December 1992, concerning certain problems raised by Denmark on the Treaty

on European Union,

HAVING NOTED

the position of Denmark with regard to Citizenship, Economic and Monetary Union,

Defence Policy and Justice and Home Affairs as laid down in the Edinburgh Decision,

CONSCIOUS

of the fact that a continuation under the Treaties of the legal regime originating in the

Edinburgh decision will significantly limit Denmark's participation in important areas of cooperation

of the Union, and that it would be in the best interest of the Union to ensure the integrity of the

acquis in the area of freedom, security and justice,

WISHING

therefore to establish a legal framework that will provide an option for Denmark to

participate in the adoption of measures proposed on the basis of Title V of Part Three of the

Treaty on the Functioning of the European Union and welcoming the intention of Denmark to

avail itself of this option when possible in accordance with its constitutional requirements,

NOTING

that Denmark will not prevent the other Member States from further developing their

cooperation with respect to measures not binding on Denmark,

BEARING IN MIND

Article 3 of the Protocol on the Schengen acquis integrated into the framework of

the European Union,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and the Treaty on the Functioning of the European Union:

PART I

Article 1

Denmark shall not take part in the adoption by the Council of proposed measures pursuant to Title

V of Part Three of the Treaty on the Functioning of the European Union. The unanimity of the

members of the Council, with the exception of the representative of the government of Denmark,

shall be necessary for the decisions of the Council which must be adopted unanimously.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 238(3)

of the Treaty on the Functioning of the European Union.

26.10.2012 Official Journal of the European Union C 326/299

Article 2

None of the provisions of Title V of Part Three of the Treaty on the Functioning of the European

Union, no measure adopted pursuant to that Title, no provision of any international agreement

concluded by the Union pursuant to that Title, and no decision of the Court of Justice of the

European Union interpreting any such provision or measure or any measure amended or

amendable pursuant to that Title shall be binding upon or applicable in Denmark; and no such

provision, measure or decision shall in any way affect the competences, rights and obligations of

Denmark; and no such provision, measure or decision shall in any way affect the Community or

Union acquis nor form part of Union law as they apply to Denmark. In particular, acts of the Union

in the field of police cooperation and judicial cooperation in criminal matters adopted before the

entry into force of the Treaty of Lisbon which are amended shall continue to be binding upon and

applicable to Denmark unchanged.

Article 2a

Article 2 of this Protocol shall also apply in respect of those rules laid down on the basis of

Article 16 of the Treaty on the Functioning of the European Union which relate to the processing

of personal data by the Member States when carrying out activities which fall within the scope of

Chapter 4 or Chapter 5 of Title V of Part Three of that Treaty.

Article 3

Denmark shall bear no financial consequences of measures referred to in Article 1, other than

administrative costs entailed for the institutions.

Article 4

1. Denmark shall decide within a period of six months after the Council has decided on a

proposal or initiative to build upon the Schengen acquis covered by this Part, whether it will

implement this measure in its national law. If it decides to do so, this measure will create an

obligation under international law between Denmark and the other Member States bound by the

measure.

2. If Denmark decides not to implement a measure of the Council as referred to in paragraph 1,

the Member States bound by that measure and Denmark will consider appropriate measures to be

taken.

PART II

Article 5

With regard to measures adopted by the Council pursuant to Article 26(1), Article 42 and Articles

43 to 46 of the Treaty on European Union, Denmark does not participate in the elaboration and the

implementation of decisions and actions of the Union which have defence implications. Therefore

C 326/300 Official Journal of the European Union 26.10.2012

Denmark shall not participate in their adoption. Denmark will not prevent the other Member States

from further developing their cooperation in this area. Denmark shall not be obliged to contribute to

the financing of operational expenditure arising from such measures, nor to make military capa

bilities available to the Union.

The unanimity of the members of the Council, with the exception of the representative of the

government of Denmark, shall be necessary for the acts of the Council which must be adopted

unanimously.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 238(3)

of the Treaty on the Functioning of the European Union.

PART III

Article 6

Articles 1, 2 and 3 shall not apply to measures determining the third countries whose nationals must

be in possession of a visa when crossing the external borders of the Member States, or measures

relating to a uniform format for visas.

PART IV

Article 7

At any time Denmark may, in accordance with its constitutional requirements, inform the other

Member States that it no longer wishes to avail itself of all or part of this Protocol. In that event,

Denmark will apply in full all relevant measures then in force taken within the framework of the

European Union.

Article 8

1. At any time and without prejudice to Article 7, Denmark may, in accordance with its consti

tutional requirements, notify the other Member States that, with effect from the first day of the

month following the notification, Part I shall consist of the provisions in the Annex. In that case

Articles 5 to 8 shall be renumbered in consequence.

2. Six months after the date on which the notification referred to in paragraph 1 takes effect all

Schengen acquis and measures adopted to build upon this acquis, which until then have been binding

on Denmark as obligations under international law, shall be binding upon Denmark as Union law.

26.10.2012 Official Journal of the European Union C 326/301

ANNEX

Article 1

Subject to Article 3, Denmark shall not take part in the adoption by the Council of measures proposed pursuant to Title

V of Part Three of the Treaty on the Functioning of the European Union. The unanimity of the members of the Council,

with the exception of the representative of the government of Denmark, shall be necessary for the acts of the Council

which must be adopted unanimously.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 238(3) of the Treaty on

the Functioning of the European Union.

Article 2

Pursuant to Article 1 and subject to Articles 3, 4 and 8, none of the provisions in Title V of Part Three of the Treaty on

the Functioning of the European Union, no measure adopted pursuant to that Title, no provision of any international

agreements concluded by the Union pursuant to that Title, no decision of the Court of Justice of the European Union

interpreting any such provision or measure shall be binding upon or applicable in Denmark; and no such provision,

measure or decision shall in any way affect the competences, rights and obligations of Denmark; and no such provision,

measure or decision shall in any way affect the Community or Union acquis nor form part of Union law as they apply to

Denmark.

Article 3

1. Denmark may notify the President of the Council in writing, within three months after a proposal or initiative has

been presented to the Council pursuant to Title V of Part Three of the Treaty on the Functioning of the European Union,

that it wishes to take part in the adoption and application of any such proposed measure, whereupon Denmark shall be

entitled to do so.

2. If after a reasonable period of time a measure referred to in paragraph 1 cannot be adopted with Denmark taking

part, the Council may adopt that measure referred to in paragraph 1 in accordance with Article 1 without the

participation of Denmark. In that case Article 2 applies.

Article 4

Denmark may at any time after the adoption of a measure pursuant to Title V of Part Three of the Treaty on the

Functioning of the European Union notify its intention to the Council and the Commission that it wishes to accept that

measure. In that case, the procedure provided for in Article 331(1) of that Treaty shall apply mutatis mutandis.

Article 5

1. The provisions of this Protocol apply for Denmark also to measures proposed or adopted pursuant to Title V of Part

Three of the Treaty on the Functioning of the European Union amending an existing measure by which it is bound.

2. However, in cases where the Council, acting on a proposal from the Commission, determines that the non-

participation of Denmark in the amended version of an existing measure makes the application of that measure

inoperable for other Member States or the Union, it may urge it to make a notification under Article 3 or 4. For the

purposes of Article 3 a further period of two months starts to run as from the date of such determination by the Council.

C 326/302 Official Journal of the European Union 26.10.2012

If, at the expiry of that period of two months from the Council's determination, Denmark has not made a notification

under Article 3 or Article 4, the existing measure shall no longer be binding upon or applicable to it, unless it has made a

notification under Article 4 before the entry into force of the amending measure. This shall take effect from the date of

entry into force of the amending measure or of expiry of the period of two months, whichever is the later.

For the purpose of this paragraph, the Council shall, after a full discussion of the matter, act by a qualified majority of its

members representing the Member States participating or having participated in the adoption of the amending measure. A

qualified majority of the Council shall be defined in accordance with Article 238(3)(a) of the Treaty on the Functioning of

the European Union.

3. The Council, acting by a qualified majority on a proposal from the Commission, may determine that Denmark shall

bear the direct financial consequences, if any, necessarily and unavoidably incurred as a result of the cessation of its

participation in the existing measure.

4. This Article shall be without prejudice to Article 4.

Article 6

1. Notification pursuant to Article 4 shall be submitted no later than six months after the final adoption of a measure

if this measure builds upon the Schengen acquis.

If Denmark does not submit a notification in accordance with Articles 3 or 4 regarding a measure building upon the

Schengen acquis, the Member States bound by that measure and Denmark will consider appropriate measures to be taken.

2. A notification pursuant to Article 3 with respect to a measure building upon the Schengen acquis shall be deemed

irrevocably to be a notification pursuant to Article 3 with respect to any further proposal or initiative aiming to build

upon that measure to the extent that such proposal or initiative builds upon the Schengen acquis.

Article 7

Denmark shall not be bound by the rules laid down on the basis of Article 16 of the Treaty on the Functioning of the

European Union which relate to the processing of personal data by the Member States when carrying out activities which

fall within the scope of Chapter 4 or Chapter 5 of Title V of Part Three of that Treaty where Denmark is not bound by

the rules governing the forms of judicial cooperation in criminal matters or police cooperation which require compliance

with the provisions laid down on the basis of Article 16.

Article 8

Where, in cases referred to in this Part, Denmark is bound by a measure adopted by the Council pursuant to Title V of

Part Three of the Treaty on the Functioning of the European Union, the relevant provisions of the Treaties shall apply to

Denmark in relation to that measure.

Article 9

Where Denmark is not bound by a measure adopted pursuant to Title V of Part Three of the Treaty on the Functioning of

the European Union, it shall bear no financial consequences of that measure other than administrative costs entailed for

the institutions unless the Council, with all its Members acting unanimously after consulting the European Parliament,

decides otherwise.

26.10.2012 Official Journal of the European Union C 326/303

PROTOCOL (No 23)

ON EXTERNAL RELATIONS OF THE MEMBER STATES

WITH REGARD TO THE CROSSING OF EXTERNAL

BORDERS

THE HIGH CONTRACTING PARTIES,

TAKING INTO ACCOUNT

the need of the Member States to ensure effective controls at their external

borders, in cooperation with third countries where appropriate,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

The provisions on the measures on the crossing of external borders included in Article 77(2)(b) of

the Treaty on the Functioning of the European Union shall be without prejudice to the competence

of Member States to negotiate or conclude agreements with third countries as long as they respect

Union law and other relevant international agreements.

C 326/304 Official Journal of the European Union 26.10.2012

PROTOCOL (No 24)

ON ASYLUM FOR NATIONALS OF MEMBER STATES

OF THE EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

WHEREAS,

in accordance with Article 6(1) of the Treaty on European Union, the Union recognises the

rights, freedoms and principles set out in the Charter of Fundamental Rights,

WHEREAS

pursuant to Article 6(3) of the Treaty on European Union, fundamental rights, as guar

anteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms,

constitute part of the Union's law as general principles,

WHEREAS

the Court of Justice of the European Union has jurisdiction to ensure that in the inter

pretation and application of Article 6, paragraphs (1) and (3) of the Treaty on European Union the

law is observed by the European Union,

WHEREAS

pursuant to Article 49 of the Treaty on European Union any European State, when

applying to become a Member of the Union, must respect the values set out in Article 2 of the

Treaty on European Union,

BEARING IN MIND

that Article 7 of the Treaty on European Union establishes a mechanism for the

suspension of certain rights in the event of a serious and persistent breach by a Member State of

those values,

RECALLING

that each national of a Member State, as a citizen of the Union, enjoys a special status and

protection which shall be guaranteed by the Member States in accordance with the provisions of Part

Two of the Treaty on the Functioning of the European Union,

BEARING IN MIND

that the Treaties establish an area without internal frontiers and grant every citizen

of the Union the right to move and reside freely within the territory of the Member States,

WISHING

to prevent the institution of asylum being resorted to for purposes alien to those for which

it is intended,

WHEREAS

this Protocol respects the finality and the objectives of the Geneva Convention of 28 July

1951 relating to the status of refugees,

26.10.2012 Official Journal of the European Union C 326/305

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

Union and to the Treaty on the Functioning of the European Union:

Sole Article

Given the level of protection of fundamental rights and freedoms by the Member States of the

European Union, Member States shall be regarded as constituting safe countries of origin in respect

of each other for all legal and practical purposes in relation to asylum matters. Accordingly, any

application for asylum made by a national of a Member State may be taken into consideration or

declared admissible for processing by another Member State only in the following cases:

(a) if the Member State of which the applicant is a national proceeds after the entry into force of the

Treaty of Amsterdam, availing itself of the provisions of Article 15 of the European Convention

for the Protection of Human Rights and Fundamental Freedoms, to take measures derogating in

its territory from its obligations under that Convention;

(b) if the procedure referred to Article 7(1) of the Treaty on European Union has been initiated and

until the Council, or, where appropriate, the European Council, takes a decision in respect thereof

with regard to the Member State of which the applicant is a national;

Union in respect of the Member State of which the applicant is a national or if the European

Council has adopted a decision in accordance with Article 7(2) of that Treaty in respect of the

Member State of which the applicant is a national;

(d) if a Member State should so decide unilaterally in respect of the application of a national of

another Member State; in that case the Council shall be immediately informed; the application

shall be dealt with on the basis of the presumption that it is manifestly unfounded without

affecting in any way, whatever the cases may be, the decision-making power of the Member

State.

C 326/306 Official Journal of the European Union 26.10.2012

PROTOCOL (No 25)

ON THE EXERCISE OF SHARED COMPETENCE

THE HIGH CONTRACTING PARTIES,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Sole Article

With reference to Article 2(2) of the Treaty on the Functioning of the European Union on shared

competence, when the Union has taken action in a certain area, the scope of this exercise of

competence only covers those elements governed by the Union act in question and therefore does

not cover the whole area.

26.10.2012 Official Journal of the European Union C 326/307

PROTOCOL (No 26)

ON SERVICES OF GENERAL INTEREST

THE HIGH CONTRACTING PARTIES,

WISHING

to emphasise the importance of services of general interest,

HAVE AGREED UPON

the following interpretative provisions, which shall be annexed to the Treaty on

European Union and to the Treaty on the Functioning of the European Union:

Article 1

The shared values of the Union in respect of services of general economic interest within the

meaning of Article 14 of the Treaty on the Functioning of the European Union include in particular:

— the essential role and the wide discretion of national, regional and local authorities in providing,

commissioning and organising services of general economic interest as closely as possible to the

needs of the users;

— the diversity between various services of general economic interest and the differences in the

needs and preferences of users that may result from different geographical, social or cultural

situations;

— a high level of quality, safety and affordability, equal treatment and the promotion of universal

access and of user rights.

Article 2

The provisions of the Treaties do not affect in any way the competence of Member States to provide,

commission and organise non-economic services of general interest.

C 326/308 Official Journal of the European Union 26.10.2012

PROTOCOL (No 27)

ON THE INTERNAL MARKET AND COMPETITION

THE HIGH CONTRACTING PARTIES,

CONSIDERING

that the internal market as set out in Article 3 of the Treaty on European Union

includes a system ensuring that competition is not distorted,

HAVE AGREED

that:

To this end, the Union shall, if necessary, take action under the provisions of the Treaties, including

under Article 352 of the Treaty on the Functioning of the European Union.

This protocol shall be annexed to the Treaty on European Union and to the Treaty on the

Functioning of the European Union.

26.10.2012 Official Journal of the European Union C 326/309

PROTOCOL (No 28)

ON ECONOMIC, SOCIAL AND TERRITORIAL

COHESION

THE HIGH CONTRACTING PARTIES,

RECALLING

that Article 3 of the Treaty on European Union includes the objective of promoting

economic, social and territorial cohesion and solidarity between Member States and that the said

cohesion figures among the areas of shared competence of the Union listed in Article 4(2)(c) of the

Treaty on the Functioning of the European Union,

RECALLING

that the provisions of Part Three, Title XVIII, on economic, social and territorial cohesion

as a whole provide the legal basis for consolidating and further developing the Union's action in the

field of economic, social and territorial cohesion, including the creation of a new fund,

RECALLING

that the provisions of Article 177 of the Treaty on the Functioning of the European Union

envisage setting up a Cohesion Fund,

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 allocations from the Structural Funds,

NOTING

the desire for modulation of the levels of Union 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, social and territorial cohesion is vital to the full devel

opment and enduring success of the Union,

REAFFIRM

their conviction that the Structural Funds should continue to play a considerable part in the

achievement of Union 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, social and territorial cohesion, and declare their

willingness to review the capital needs of the European Investment Bank as soon as this is necessary

for that purpose,

AGREE

that the Cohesion Fund will provide Union 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 Union average which have a programme leading to the fulfilment of the conditions of

economic convergence as set out in Article 126,

C 326/310 Official Journal of the European Union 26.10.2012

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 Union 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,

RECOGNISE

the need to monitor regularly the progress made towards achieving economic, social and

territorial 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 on European Union and the Treaty on the Functioning of

the European Union.

26.10.2012 Official Journal of the European Union C 326/311

PROTOCOL (No 29)

ON THE SYSTEM OF PUBLIC BROADCASTING IN THE

MEMBER STATES

THE HIGH CONTRACTING PARTIES,

CONSIDERING

that the system of public broadcasting in the Member States is directly related to the

democratic, social and cultural needs of each society and to the need to preserve media pluralism,

HAVE AGREED UPON

the following interpretive provisions, which shall be annexed to the Treaty on

European Union and to the Treaty on the Functioning of the European Union:

The provisions of the Treaties shall be without prejudice to the competence of Member States to

provide for the funding of public service broadcasting and in so far as such funding is granted to

broadcasting organisations for the fulfilment of the public service remit as conferred, defined and

organised by each Member State, and in so far as such funding does not affect trading conditions and

competition in the Union to an extent which would be contrary to the common interest, while the

realisation of the remit of that public service shall be taken into account.

C 326/312 Official Journal of the European Union 26.10.2012

PROTOCOL (No 30)

ON THE APPLICATION OF THE CHARTER OF

FUNDAMENTAL RIGHTS OF THE EUROPEAN UNION

TO POLAND AND TO THE UNITED KINGDOM

THE HIGH CONTRACTING PARTIES,

WHEREAS

in Article 6 of the Treaty on European Union, the Union recognises the rights, freedoms

and principles set out in the Charter of Fundamental Rights of the European Union,

WHEREAS

the Charter is to be applied in strict accordance with the provisions of the aforementioned

Article 6 and Title VII of the Charter itself,

WHEREAS

the aforementioned Article 6 requires the Charter to be applied and interpreted by the

courts of Poland and of the United Kingdom strictly in accordance with the explanations referred to

in that Article,

WHEREAS

the Charter contains both rights and principles,

WHEREAS

the Charter contains both provisions which are civil and political in character and those

which are economic and social in character,

WHEREAS

the Charter reaffirms the rights, freedoms and principles recognised in the Union and

makes those rights more visible, but does not create new rights or principles,

RECALLING

the obligations devolving upon Poland and the United Kingdom under the Treaty on

European Union, the Treaty on the Functioning of the European Union, and Union law generally,

NOTING

the wish of Poland and the United Kingdom to clarify certain aspects of the application of

the Charter,

DESIROUS

therefore of clarifying the application of the Charter in relation to the laws and adminis

trative action of Poland and of the United Kingdom and of its justiciability within Poland and within

the United Kingdom,

REAFFIRMING

that references in this Protocol to the operation of specific provisions of the Charter are

strictly without prejudice to the operation of other provisions of the Charter,

REAFFIRMING

that this Protocol is without prejudice to the application of the Charter to other Member

States,

REAFFIRMING

that this Protocol is without prejudice to other obligations devolving upon Poland and

the United Kingdom under the Treaty on European Union, the Treaty on the Functioning of the

European Union, and Union law generally,

26.10.2012 Official Journal of the European Union C 326/313

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

Union and to the Treaty on the Functioning of the European Union:

Article 1

1. The Charter does not extend the ability of the Court of Justice of the European Union, or any

court or tribunal of Poland or of the United Kingdom, to find that the laws, regulations or adminis

trative provisions, practices or action of Poland or of the United Kingdom are inconsistent with the

fundamental rights, freedoms and principles that it reaffirms.

2. In particular, and for the avoidance of doubt, nothing in Title IV of the Charter creates

justiciable rights applicable to Poland or the United Kingdom except in so far as Poland or the

United Kingdom has provided for such rights in its national law.

Article 2

To the extent that a provision of the Charter refers to national laws and practices, it shall only apply

to Poland or the United Kingdom to the extent that the rights or principles that it contains are

recognised in the law or practices of Poland or of the United Kingdom.

C 326/314 Official Journal of the European Union 26.10.2012

PROTOCOL (No 31)

CONCERNING IMPORTS INTO THE EUROPEAN UNION OF

PETROLEUM PRODUCTS REFINED IN THE NETHERLANDS ANTILLES

THE HIGH CONTRACTING PARTIES,

BEING DESIROUS

of giving fuller details about the system of trade applicable to imports into the

European Union of petroleum products refined in the Netherlands Antilles,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

This Protocol is applicable to petroleum products coming under the Brussels Nomenclature numbers

27.10, 27.11, 27.12, ex 27.13 (paraffin wax, petroleum or shale wax and paraffin residues) and

27.14, imported for use in Member States.

Article 2

Member States shall undertake to grant to petroleum products refined in the Netherlands Antilles the

tariff preferences resulting from the association of the latter with the Union, under the conditions

provided for in this Protocol. These provisions shall hold good whatever may be the rules of origin

applied by the Member States.

Article 3

1. When the Commission, at the request of a Member State or on its own initiative, establishes

that imports into the Union of petroleum products refined in the Netherlands Antilles under the

system provided for in Article 2 above are giving rise to real difficulties on the market of one or

more Member States, it shall decide that customs duties on the said imports shall be introduced,

increased or re-introduced by the Member States in question, to such an extent and for such a period

as may be necessary to meet that situation. The rates of the customs duties thus introduced, increased

or re-introduced may not exceed the customs duties applicable to third countries for these same

products.

2. The provisions of paragraph 1 can in any case be applied when imports into the Union of

petroleum products refined in the Netherlands Antilles reach two million metric tons a year.

3. The Council shall be informed of decisions taken by the Commission in pursuance of para

graphs 1 and 2, including those directed at rejecting the request of a Member State. The Council

shall, at the request of any Member State, assume responsibility for the matter and may at any time

amend or revoke them.

26.10.2012 Official Journal of the European Union C 326/315

Article 4

1. If a Member State considers that imports of petroleum products refined in the Netherlands

Antilles, made either directly or through another Member State under the system provided for in

Article 2 above, are giving rise to real difficulties on its market and that immediate action is

necessary to meet them, it may on its own initiative decide to apply customs duties to such

imports, the rate of which may not exceed those of the customs duties applicable to third

countries in respect of the same products. It shall notify its decision to the Commission which

shall decide within one month whether the measures taken by the State should be maintained or

must be amended or cancelled. The provisions of Article 3(3) shall be applicable to such decision of

the Commission.

2. When the quantities of petroleum products refined in the Netherlands Antilles imported either

directly or through another Member State, under the system provided for in Article 2 above, into a

Member State or States of the European Union exceed during a calendar year the tonnage shown in

the Annex to this Protocol, the measures taken in pursuance of paragraph 1 by that or those

Member States for the current year shall be considered to be justified; the Commission shall, after

assuring itself that the tonnage fixed has been reached, formally record the measures taken. In such a

case the other Member States shall abstain from formally placing the matter before the Council.

Article 5

If the Union decides to apply quantitative restrictions to petroleum products, no matter whence they

are imported, these restrictions may also be applied to imports of such products from the

Netherlands Antilles. In such a case preferential treatment shall be granted to the Netherlands

Antilles as compared with third countries.

Article 6

1. The provisions of Articles 2 to 5 shall be reviewed by the Council, by unanimous decision,

after consulting the European Parliament and the Commission, when a common definition of origin

for petroleum products from third countries and associated countries is adopted, or when decisions

are taken within the framework of a common commercial policy for the products in question or

when a common energy policy is established.

2. When such revision is made, however, equivalent preferences must in any case be maintained

in favour of the Netherlands Antilles in a suitable form and for a minimum quantity of 21½ million

metric tons of petroleum products.

3. The Union's commitments in regard to equivalent preferences as mentioned in paragraph 2 of

this Article may, if necessary, be broken down country by country taking into account the tonnage

indicated in the Annex to this Protocol.

C 326/316 Official Journal of the European Union 26.10.2012

Article 7

For the implementation of this Protocol, the Commission is responsible for following the pattern of

imports into the Member States of petroleum products refined in the Netherlands Antilles. Member

States shall communicate to the Commission, which shall see that it is circulated, all useful

information to that end in accordance with the administrative conditions recommended by it.

ANNEX TO THE PROTOCOL

For the implementation of Article 4(2) of the Protocol concerning imports into the European Union of petroleum

products refined in the Netherlands Antilles, the High Contracting Parties have decided that the quantity of 2 million

metric tons of petroleum products from the Antilles shall be allocated among the Member States as follows:

Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 000 metric tons

Belgo-Luxembourg Economic Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 000 metric tons

France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 000 metric tons

Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 000 metric tons

Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 000 000 metric tons

26.10.2012 Official Journal of the European Union C 326/317

PROTOCOL (No 32)

ON THE ACQUISITION OF PROPERTY IN 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 on European

Union and to the Treaty on the Functioning of the European Union:

Notwithstanding the provisions of the Treaties, Denmark may maintain the existing legislation on the

acquisition of second homes.

C 326/318 Official Journal of the European Union 26.10.2012

PROTOCOL (No 33)

CONCERNING ARTICLE 157 OF THE TREATY ON THE

FUNCTIONING OF THE EUROPEAN UNION

THE HIGH CONTRACTING PARTIES,

HAVE AGREED

upon the following provision, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

For the purposes of Article 157 of the Treaty on the Functioning of the European Union, benefits

under occupational social security schemes shall not be considered as remuneration if and 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.

26.10.2012 Official Journal of the European Union C 326/319

PROTOCOL (No 34)

ON SPECIAL ARRANGEMENTS FOR GREENLAND

Sole Article

1. The treatment on import into the Union of products subject to the common organisation of

the market in fishery products, originating in Greenland, shall, while complying with the mechanisms

of the internal market organisation, involve exemption from customs duties and charges having

equivalent effect and the absence of quantitative restrictions or measures having equivalent effect if

the possibilities for access to Greenland fishing zones granted to the Union pursuant to an agreement

between the Union and the authority responsible for Greenland are satisfactory to the Union.

2. All measures relating to the import arrangements for such products, including those relating to

the adoption of such measures, shall be adopted in accordance with the procedure laid down in

Article 43 of the Treaty establishing the European Union.

C 326/320 Official Journal of the European Union 26.10.2012

PROTOCOL (No 35)

ON ARTICLE 40.3.3 OF THE CONSTITUTION OF IRELAND

THE HIGH CONTRACTING PARTIES,

HAVE AGREED

upon the following provision, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union and to the Treaty establishing

the European Atomic Energy Community:

Nothing in the Treaties, or in the Treaty establishing the European Atomic Energy Community, 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.

26.10.2012 Official Journal of the European Union C 326/321

PROTOCOL (No 36)

ON TRANSITIONAL PROVISIONS

THE HIGH CONTRACTING PARTIES,

WHEREAS

, in order to organise the transition from the institutional provisions of the Treaties

applicable prior to the entry into force of the Treaty of Lisbon to the provisions contained in

that Treaty, it is necessary to lay down transitional provisions,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union, to the Treaty on the Functioning of the European Union and to the Treaty establishing the

European Atomic Energy Community:

Article 1

In this Protocol, the words ‘the Treaties’ shall mean the Treaty on European Union, the Treaty on the

Functioning of the European Union and the Treaty establishing the European Atomic Energy

Community.

TITLE I

PROVISIONS CONCERNING THE EUROPEAN PARLIAMENT

Article 2

1. For the period of the 2009-2014 parliamentary term remaining at the date of entry into force

of this Article, and by way of derogation from Articles 189, second paragraph, and 190(2) of the

Treaty establishing the European Community and Articles 107, second paragraph, and 108(2) of the

Treaty establishing the European Atomic Energy Community, which were in force at the time of the

European Parliament elections in June 2009, and by way of derogation from the number of seats

provided for in the first subparagraph of Article 14(2) of the Treaty on European Union, the

following 18 seats shall be added to the existing 736 seats, thus provisionally bringing the total

number of members of the European Parliament to 754 until the end of the 2009-2014 parlia

mentary term:

Bulgaria 1

Spain 4

France 2

Italy 1

Latvia 1

Malta 1

Netherlands 1

Austria 2

Poland 1

Slovenia 1

Sweden 2

United Kingdom 1

2. By way of derogation from Article 14(3) of the Treaty on European Union, the Member States

concerned shall designate the persons who will fill the additional seats referred to in paragraph 1, in

accordance with the legislation of the Member States concerned and provided that the persons in

question have been elected by direct universal suffrage:

(a) in ad hoc elections by direct universal suffrage in the Member State concerned, in accordance with

the provisions applicable for elections to the European Parliament;

C 326/322 Official Journal of the European Union 26.10.2012

(b) by reference to the results of the European Parliament elections from 4 to 7 June 2009; or

members, of the requisite number of members, according to the procedure determined by

each of those Member States.

3. In accordance with the second subparagraph of Article 14(2) of the Treaty on European Union,

the European Council shall adopt a decision determining the composition of the European Parliament

in good time before the 2014 European Parliament elections.

TITLE II

PROVISIONS CONCERNING THE QUALIFIED MAJORITY

Article 3

1. In accordance with Article 16(4) of the Treaty on European Union, the provisions of that

paragraph and of Article 238(2) of the Treaty on the Functioning of the European Union relating to

the definition of the qualified majority in the European Council and the Council shall take effect

on1 November 2014.

2. Between 1 November 2014 and 31 March 2017, when an act is to be adopted by qualified

majority, a member of the Council may request that it be adopted in accordance with the qualified

majority as defined in paragraph 3. In that case, paragraphs 3 and 4 shall apply.

3. Until 31 October 2014, the following provisions shall remain in force, without prejudice to the

second subparagraph of Article 235(1) of the Treaty on the Functioning of the European Union.

For acts of the European Council and of the Council requiring a qualified majority, members' votes

shall be weighted as follows:

Belgium 12

Bulgaria 10

Czech Republic 12

Denmark 7

Germany 29

Estonia 4

Ireland 7

Greece 12

Spain 27

France 29

Italy 29

Cyprus 4

Latvia 4

Lithuania 7

Luxembourg 4

Hungary 12

Malta 3

Netherlands 13

Austria 10

Poland 27

Portugal 12

Romania 14

Slovenia 4

Slovakia 7

Finland 7

Sweden 10

United Kingdom 29

Acts shall be adopted if there are at least 255 votes in favour representing a majority of the members

where, under the Treaties, they must be adopted on a proposal from the Commission. In other cases

decisions shall be adopted if there are at least 255 votes in favour representing at least two thirds of

the members.

26.10.2012 Official Journal of the European Union C 326/323

A member of the European Council or the Council may request that, where an act is adopted by the

European Council or the Council by a qualified majority, a check is made to ensure that the Member

States comprising the qualified majority represent at least 62 % of the total population of the Union.

If that proves not to be the case, the act shall not be adopted.

4. Until 31 October 2014, the qualified majority shall, in cases where, under the Treaties, not all

the members of the Council participate in voting, namely in the cases where reference is made to the

qualified majority as defined in Article 238(3) of the Treaty on the Functioning of the European

Union, be defined as the same proportion of the weighted votes and the same proportion of the

number of the Council members and, if appropriate, the same percentage of the population of the

Member States concerned as laid down in paragraph 3 of this Article.

TITLE III

PROVISIONS CONCERNING THE CONFIGURATIONS OF THE COUNCIL

Article 4

Until the entry into force of the decision referred to in the first subparagraph of Article 16(6) of the

Treaty on European Union, the Council may meet in the configurations laid down in the second and

third subparagraphs of that paragraph and in the other configurations on the list established by a

decision of the General Affairs Council, acting by a simple majority.

TITLE IV

PROVISIONS CONCERNING THE COMMISSION, INCLUDING

THE HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY

Article 5

The members of the Commission in office on the date of entry into force of the Treaty of Lisbon

shall remain in office until the end of their term of office. However, on the day of the appointment

of the High Representative of the Union for Foreign Affairs and Security Policy, the term of office of

the member having the same nationality as the High Representative shall end.

TITLE V

PROVISIONS CONCERNING THE SECRETARY-GENERAL OF THE

COUNCIL, HIGH REPRESENTATIVE FOR THE COMMON FOREIGN AND SECURITY POLICY, AND

THE DEPUTY SECRETARY-GENERAL OF THE COUNCIL

Article 6

The terms of office of the Secretary-General of the Council, High Representative for the common

foreign and security policy, and the Deputy Secretary-General of the Council shall end on the date of

entry into force of the Treaty of Lisbon. The Council shall appoint a Secretary-General in conformity

with Article 240(2) of the Treaty on the Functioning of the European Union.

C 326/324 Official Journal of the European Union 26.10.2012

TITLE VI

PROVISIONS CONCERNING ADVISORY BODIES

Article 7

Until the entry into force of the decision referred to in Article 301 of the Treaty on the Functioning

of the European Union, the allocation of members of the Economic and Social Committee shall be as

follows:

Belgium 12

Bulgaria 12

Czech Republic 12

Denmark 9

Germany 24

Estonia 7

Ireland 9

Greece 12

Spain 21

France 24

Italy 24

Cyprus 6

Latvia 7

Lithuania 9

Luxembourg 6

Hungary 12

Malta 5

Netherlands 12

Austria 12

Poland 21

Portugal 12

Romania 15

Slovenia 7

Slovakia 9

Finland 9

Sweden 12

United Kingdom 24

Article 8

Until the entry into force of the decision referred to in Article 305 of the Treaty on the Functioning

of the European Union, the allocation of members of the Committee of the Regions shall be as

follows:

Belgium 12

Bulgaria 12

Czech Republic 12

Denmark 9

Germany 24

Estonia 7

Ireland 9

Greece 12

Spain 21

France 24

Italy 24

Cyprus 6

Latvia 7

Lithuania 9

Luxembourg 6

Hungary 12

Malta 5

Netherlands 12

Austria 12

Poland 21

Portugal 12

Romania 15

Slovenia 7

Slovakia 9

Finland 9

Sweden 12

United Kingdom 24

26.10.2012 Official Journal of the European Union C 326/325

TITLE VII

TRANSITIONAL PROVISIONS CONCERNING ACTS ADOPTED ON THE BASIS OF

TITLES V AND VI OF THE TREATY ON EUROPEAN UNION PRIOR TO THE ENTRY

INTO FORCE OF THE TREATY OF LISBON

Article 9

The legal effects of the acts of the institutions, bodies, offices and agencies of the Union adopted on

the basis of the Treaty on European Union prior to the entry into force of the Treaty of Lisbon shall

be preserved until those acts are repealed, annulled or amended in implementation of the Treaties.

The same shall apply to agreements concluded between Member States on the basis of the Treaty on

European Union.

Article 10

1. As a transitional measure, and with respect to acts of the Union in the field of police

cooperation and judicial cooperation in criminal matters which have been adopted before the

entry into force of the Treaty of Lisbon, the powers of the institutions shall be the following at

the date of entry into force of that Treaty: the powers of the Commission under Article 258 of the

Treaty on the Functioning of the European Union shall not be applicable and the powers of the

Court of Justice of the European Union under Title VI of the Treaty on European Union, in the

version in force before the entry into force of the Treaty of Lisbon, shall remain the same, including

where they have been accepted under Article 35(2) of the said Treaty on European Union.

2. The amendment of an act referred to in paragraph 1 shall entail the applicability of the powers

of the institutions referred to in that paragraph as set out in the Treaties with respect to the amended

act for those Member States to which that amended act shall apply.

3. In any case, the transitional measure mentioned in paragraph 1 shall cease to have effect five

years after the date of entry into force of the Treaty of Lisbon.

4. At the latest six months before the expiry of the transitional period referred to in paragraph 3,

the United Kingdom may notify to the Council that it does not accept, with respect to the acts

referred to in paragraph 1, the powers of the institutions referred to in paragraph 1 as set out in the

Treaties. In case the United Kingdom has made that notification, all acts referred to in paragraph 1

shall cease to apply to it as from the date of expiry of the transitional period referred to in paragraph

3. This subparagraph shall not apply with respect to the amended acts which are applicable to the

United Kingdom as referred to in paragraph 2.

The Council, acting by a qualified majority on a proposal from the Commission, shall determine the

necessary consequential and transitional arrangements. The United Kingdom shall not participate in

the adoption of this decision. A qualified majority of the Council shall be defined in accordance with

Article 238(3)(a) of the Treaty on the Functioning of the European Union.

The Council, acting by a qualified majority on a proposal from the Commission, may also adopt a

decision determining that the United Kingdom shall bear the direct financial consequences, if any,

necessarily and unavoidably incurred as a result of the cessation of its participation in those acts.

C 326/326 Official Journal of the European Union 26.10.2012

5. The United Kingdom may, at any time afterwards, notify the Council of its wish to participate

in acts which have ceased to apply to it pursuant to paragraph 4, first subparagraph. In that case, the

relevant provisions of the Protocol on the Schengen acquis integrated into the framework of the

European Union or of the Protocol on the position of the United Kingdom and Ireland in respect of

the area of freedom, security and justice, as the case may be, shall apply. The powers of the

institutions with regard to those acts shall be those set out in the Treaties. When acting under

the relevant Protocols, the Union institutions and the United Kingdom shall seek to re-establish the

widest possible measure of participation of the United Kingdom in the acquis of the Union in the area

of freedom, security and justice without seriously affecting the practical operability of the various

parts thereof, while respecting their coherence.

26.10.2012 Official Journal of the European Union C 326/327

PROTOCOL (No 37)

ON THE FINANCIAL CONSEQUENCES OF THE EXPIRY

OF THE ECSC TREATY AND ON THE RESEARCH

FUND FOR COAL AND STEEL

THE HIGH CONTRACTING PARTIES,

RECALLING

that all assets and liabilities of the European Coal and Steel Community, as they existed on

23 July 2002, were transferred to the European Community on 24 July 2002,

TAKING ACCOUNT

of the desire to use these funds for research in sectors related to the coal and steel

industry and therefore the necessity to provide for certain special rules in this regard,

HAVE AGREED UPON

the following provisions, which shall be annexed to the Treaty on European

Union and to the Treaty on the Functioning of the European Union:

Article 1

1. The net worth of these assets and liabilities, as they appear in the balance sheet of the ECSC of

23 July 2002, subject to any increase or decrease which may occur as a result of the liquidation

operations, shall be considered as assets intended for research in the sectors related to the coal and

steel industry, referred to as the ‘ECSC in liquidation’. On completion of the liquidation they shall be

referred to as the ‘assets of the Research Fund for Coal and Steel’.

2. The revenue from these assets, referred to as the ‘Research Fund for Coal and Steel’, shall be

used exclusively for research, outside the research framework programme, in the sectors related to

the coal and steel industry in accordance with the provisions of this Protocol and of acts adopted on

the basis hereof.

Article 2

The Council, acting in accordance with a special legislative procedure and after obtaining the consent

of the European Parliament, shall adopt all the necessary provisions for the implementation of this

Protocol, including essential principles.

The Council shall adopt, on a proposal from the Commission and after consulting the European

Parliament, measures establishing multiannual financial guidelines for managing the assets of the

Research Fund for Coal and Steel and technical guidelines for the research programme of the

Research Fund for Coal and Steel.

C 326/328 Official Journal of the European Union 26.10.2012

Article 3

Except as otherwise provided in this Protocol and in the acts adopted on the basis hereof, the

provisions of the Treaties shall apply.

26.10.2012 Official Journal of the European Union C 326/329

ANNEXES

26.10.2012 Official Journal of the European Union C 326/331

ANNEX I

LIST REFERRED TO IN ARTICLE 38 OF THE TREATY ON THE FUNCTIONING OF THE

EUROPEAN UNION

(1) (2)

No in the Brussels

nomenclature

Description of products

Chapter 1 Live animals

Chapter 2 Meat and edible meat offal

Chapter 3 Fish, crustaceans and molluscs

Chapter 4 Dairy produce; birds' eggs; natural honey

Chapter 5

05.04 Guts, bladders and stomachs of animals (other than fish), whole and

pieces thereof

05.15 Animal products not elsewhere specified or included; dead animals of

Chapter 1 or Chapter 3, unfit for human consumption

Chapter 6 Live trees and other plants; bulbs, roots and the like; cut flowers and

ornamental foliage

Chapter 7 Edible vegetables and certain roots and tubers

Chapter 8 Edible fruit and nuts; peel of melons or citrus fruit

Chapter 9 Coffee, tea and spices, excluding maté (heading No 09.03)

Chapter 10 Cereals

Chapter 11 Products of the milling industry; malt and starches; gluten; inulin

Chapter 12 Oil seeds and oleaginous fruit; miscellaneous grains, seeds and fruit;

industrial and medical plants; straw and fodder

Chapter 13

ex 13.03 Pectin

Chapter 15

15.01 Lard and other rendered pig fat; rendered poultry fat

15.02 Unrendered fats of bovine cattle, sheep or goats; tallow (including

‘premier jus’) produced from those fats

15.03 Lard stearin, oleostearin and tallow stearin; lard oil, oleo-oil and tallow

oil, not emulsified or mixed or prepared in any way

15.04 Fats and oil, of fish and marine mammals, whether or not refined

15.07 Fixed vegetable oils, fluid or solid, crude, refined or purified

15.12 Animal or vegetable fats and oils, hydrogenated, whether or not refined,

but not further prepared

26.10.2012 Official Journal of the European Union C 326/333

(1) (2)

No in the Brussels

nomenclature

Description of products

15.13 Margarine, imitation lard and other prepared edible fats

15.17 Residues resulting from the treatment of fatty substances or animal or

vegetable waxes

Chapter 16 Preparations of meat, of fish, of crustaceans or molluscs

Chapter 17

17.01 Beet sugar and cane sugar, solid

17.02 Other sugars; sugar syrups; artificial honey (whether or not mixed with

natural honey); caramel

17.03 Molasses, whether or not decolourised

17.05 (*) Flavoured or coloured sugars, syrups and molasses (including vanilla

sugar or vanillin), with the exception of fruit juice containing added

sugar in any proportion

Chapter 18

18.01 Cocoa beans, whole or broken, raw or roasted

18.02 Cocoa shells, husks, skins and waste

Chapter 20 Preparations of vegetables, fruit or other parts of plants

Chapter 22

22.04 Grape must, in fermentation or with fermentation arrested otherwise

than by the addition of alcohol

22.05 Wine of fresh grapes; grape must with fermentation arrested by the

addition of alcohol

22.07 Other fermented beverages (for example, cider, perry and mead)

ex 22.08 (*)

ex 22.09 (*)

Ethyl alcohol or neutral spirits, whether or not denatured, of any

strength, obtained from agricultural products listed in Annex I,

excluding liqueurs and other spirituous beverages and compound

alcoholic preparations (known as ‘concentrated extracts’) for the manu

facture of beverages

22.10 (*) Vinegar and substitutes for vinegar

Chapter 23 Residues and waste from the food industries; prepared animal fodder

Chapter 24

24.01 Unmanufactured tobacco, tobacco refuse

Chapter 45

45.01 Natural cork, unworked, crushed, granulated or ground; waste cork

C 326/334 Official Journal of the European Union 26.10.2012

(1) (2)

No in the Brussels

nomenclature

Description of products

Chapter 54

54.01 Flax, raw or processed but not spun; flax tow and waste (including pulled

or garnetted rags)

Chapter 57

57.01 True hemp (Cannabis sativa), raw or processed but not spun; tow and

waste of true hemp (including pulled or garnetted rags or ropes)

(*) Entry added by Article 1 of Regulation No 7a of the Council of the European Economic

Community of 18 December 1959 (OJ No 7, 30.1.1961, p. 71/61).

26.10.2012 Official Journal of the European Union C 326/335

ANNEX II

OVERSEAS COUNTRIES AND TERRITORIES TO WHICH THE PROVISIONS OF PART

FOUR OF THE TREATY ON THE FUNCTIONING OF THE EUROPEAN UNION APPLY

— Greenland,

— New Caledonia and Dependencies,

— French Polynesia,

— French Southern and Antarctic Territories,

— Wallis and Futuna Islands,

— Mayotte,

— Saint Pierre and Miquelon,

— Aruba,

— Netherlands Antilles:

— Bonaire,

— Curaçao,

— Saba,

— Sint Eustatius,

— Sint Maarten,

— Anguilla,

— Cayman Islands,

— Falkland Islands,

— South Georgia and the South Sandwich Islands,

— Montserrat,

— Pitcairn,

— Saint Helena and Dependencies,

— British Antarctic Territory,

— British Indian Ocean Territory,

— Turks and Caicos Islands,

— British Virgin Islands,

— Bermuda.

C 326/336 Official Journal of the European Union 26.10.2012

DECLARATIONS

ANNEXED TO THE FINAL ACT OF THE INTERGOVERNMENTAL

CONFERENCE WHICH ADOPTED THE TREATY OF LISBON,

signed on 13 December 2007

26.10.2012 Official Journal of the European Union C 326/337

A. DECLARATIONS CONCERNING PROVISIONS OF THE TREATIES

1. Declaration concerning the Charter of Fundamental Rights of the

European Union

The Charter of Fundamental Rights of the European Union, which has legally binding force, confirms

the fundamental rights guaranteed by the European Convention for the Protection of Human Rights

and Fundamental Freedoms and as they result from the constitutional traditions common to the

Member States.

The Charter does not extend the field of application of Union law beyond the powers of the Union

or establish any new power or task for the Union, or modify powers and tasks as defined by the

Treaties.

2. Declaration on Article 6(2) of the Treaty on European Union

The Conference agrees that the Union's accession to the European Convention for the Protection of

Human Rights and Fundamental Freedoms should be arranged in such a way as to preserve the

specific features of Union law. In this connection, the Conference notes the existence of a regular

dialogue between the Court of Justice of the European Union and the European Court of Human

Rights; such dialogue could be reinforced when the Union accedes to that Convention.

3. Declaration on Article 8 of the Treaty on European Union

The Union will take into account the particular situation of small-sized countries which maintain

specific relations of proximity with it.

4. Declaration on the composition of the European Parliament

The additional seat in the European Parliament will be attributed to Italy.

5. Declaration on the political agreement by the European Council

concerning the draft Decision on the composition of the European

Parliament

The European Council will give its political agreement on the revised draft Decision on the

composition of the European Parliament for the legislative period 2009-2014, based on the

proposal from the European Parliament.

26.10.2012 Official Journal of the European Union C 326/339

6. Declaration on Article 15(5) and (6), Article 17(6) and (7) and

Article 18 of the Treaty on European Union

In choosing the persons called upon to hold the offices of President of the European Council,

President of the Commission and High Representative of the Union for Foreign Affairs and

Security Policy, due account is to be taken of the need to respect the geographical and

demographic diversity of the Union and its Member States.

7. Declaration on Article 16(4) of the Treaty on European Union and

Article 238(2) of the Treaty on the Functioning of the European Union

The Conference declares that the decision relating to the implementation of Article 16(4) of the

Treaty on European Union and Article 238(2) of the Treaty on the Functioning of the European

Union will be adopted by the Council on the date of the signature of the Treaty of Lisbon and will

enter into force on the day that Treaty enters into force. The draft decision is set out below:

Draft Decision of the Council

relating to the implementation of Article 16(4) of the Treaty on European Union

and Article 238(2) of the Treaty on the Functioning of the European Union

between 1 November 2014 and 31 March 2017 on the one hand, and as from

1 April 2017 on the other

THE COUNCIL OF THE EUROPEAN UNION,

Whereas:

(1)

Provisions should be adopted allowing for a smooth transition from the system for decision-

making in the Council by a qualified majority as defined in Article 3(3) of the Protocol on the

transitional provisions, which will continue to apply until 31 October 2014, to the voting

system provided for in Article 16(4) of the Treaty on European Union and Article 238(2) of the

Treaty on the Functioning of the European Union, which will apply with effect from

1 November 2014, including, during a transitional period until 31 March 2017, specific

provisions laid down in Article 3(2) of that Protocol.

(2)

It is recalled that it is the practice of the Council to devote every effort to strengthening the

democratic legitimacy of decisions taken by a qualified majority,

C 326/340 Official Journal of the European Union 26.10.2012

HAS DECIDED AS FOLLOWS:

Section 1

Provisions to be applied from 1 November 2014 to 31 March 2017

Article 1

From 1 November 2014 to 31 March 2017, if members of the Council, representing:

(a) at least three quarters of the population, or

(b) at least three quarters of the number of Member States

necessary to constitute a blocking minority resulting from the application of Article 16(4), first

subparagraph, of the Treaty on European Union or Article 238(2) of the Treaty on the

Functioning of the European Union, indicate their opposition to the Council adopting an act by a

qualified majority, the Council shall discuss the issue.

Article 2

The Council shall, in the course of these discussions, do all in its power to reach, within a reasonable

time and without prejudicing obligatory time limits laid down by Union law, a satisfactory solution

to address concerns raised by the members of the Council referred to in Article 1.

Article 3

To this end, the President of the Council, with the assistance of the Commission and in compliance

with the Rules of Procedure of the Council, shall undertake any initiative necessary to facilitate a

wider basis of agreement in the Council. The members of the Council shall lend him or her their

assistance.

Section 2

Provisions to be applied as from 1 April 2017

Article 4

As from 1 April 2017, if members of the Council, representing:

(a) at least 55 % of the population, or

(b) at least 55 % of the number of Member States

26.10.2012 Official Journal of the European Union C 326/341

necessary to constitute a blocking minority resulting from the application of Article 16(4), first

subparagraph, of the Treaty on European Union or Article 238(2) of the Treaty on the

Functioning of the European Union, indicate their opposition to the Council adopting an act by a

qualified majority, the Council shall discuss the issue.

Article 5

The Council shall, in the course of these discussions, do all in its power to reach, within a reasonable

time and without prejudicing obligatory time limits laid down by Union law, a satisfactory solution

to address concerns raised by the members of the Council referred to in Article 4.

Article 6

To this end, the President of the Council, with the assistance of the Commission and in compliance

with the Rules of Procedure of the Council, shall undertake any initiative necessary to facilitate a

wider basis of agreement in the Council. The members of the Council shall lend him or her their

assistance.

Section 3

Entry into force

Article 7

This Decision shall enter into force on the date of the entry into force of the Treaty of Lisbon.

8. Declaration on practical measures to be taken upon the entry into

force of the Treaty of Lisbon as regards the Presidency of the European

Council and of the Foreign Affairs Council

In the event that the Treaty of Lisbon enters into force later than 1 January 2009, the Conference

requests the competent authorities of the Member State holding the six-monthly Presidency of the

Council at that time, on the one hand, and the person elected President of the European Council and

the person appointed High Representative of the Union for Foreign Affairs and Security Policy, on

the other hand, to take the necessary specific measures, in consultation with the following six-

monthly Presidency, to allow an efficient handover of the material and organisational aspects of

the Presidency of the European Council and of the Foreign Affairs Council.

C 326/342 Official Journal of the European Union 26.10.2012

9. Declaration on Article 16(9) of the Treaty on European Union

concerning the European Council decision on the exercise of the Presidency

of the Council

The Conference declares that the Council should begin preparing the decision establishing the

procedures for implementing the decision on the exercise of the Presidency of the Council as

soon as the Treaty of Lisbon is signed, and should give its political approval within six months.

A draft decision of the European Council, which will be adopted on the date of entry into force of

the said Treaty, is set out below:

Draft decision of the European Council

on the exercise of the Presidency of the Council

Article 1

1. The Presidency of the Council, with the exception of the Foreign Affairs configuration, shall be

held by pre-established groups of three Member States for a period of 18 months. The groups shall

be made up on a basis of equal rotation among the Member States, taking into account their

diversity and geographical balance within the Union.

2. Each member of the group shall in turn chair for a six-month period all configurations of the

Council, with the exception of the Foreign Affairs configuration. The other members of the group

shall assist the Chair in all its responsibilities on the basis of a common programme. Members of the

team may decide alternative arrangements among themselves.

Article 2

The Committee of Permanent Representatives of the Governments of the Member States shall be

chaired by a representative of the Member State chairing the General Affairs Council.

The Chair of the Political and Security Committee shall be held by a representative of the High

Representative of the Union for Foreign Affairs and Security Policy.

The chair of the preparatory bodies of the various Council configurations, with the exception of the

Foreign Affairs configuration, shall fall to the member of the group chairing the relevant

configuration, unless decided otherwise in accordance with Article 4.

Article 3

The General Affairs Council shall ensure consistency and continuity in the work of the different

Council configurations in the framework of multiannual programmes in cooperation with the

Commission. The Member States holding the Presidency shall take all necessary measures for the

organisation and smooth operation of the Council's work, with the assistance of the General

Secretariat of the Council.

26.10.2012 Official Journal of the European Union C 326/343

Article 4

The Council shall adopt a decision establishing the measures for the implementation of this decision.

10. Declaration on Article 17 of the Treaty on European Union

The Conference considers that when the Commission no longer includes nationals of all

Member States, the Commission should pay particular attention to the need to ensure full

transparency in relations with all Member States. Accordingly, the Commission should liaise

closely with all Member States, whether or not they have a national serving as member of the

Commission, and in this context pay special attention to the need to share information and consult

with all Member States.

The Conference also considers that the Commission should take all the necessary measures to ensure

that political, social and economic realities in all Member States, including those which have no

national serving as member of the Commission, are fully taken into account. These measures should

include ensuring that the position of those Member States is addressed by appropriate organisational

arrangements.

11. Declaration on Article 17(6) and (7) of the Treaty on European Union

The Conference considers that, in accordance with the provisions of the Treaties, the

European Parliament and the European Council are jointly responsible for the smooth running of

the process leading to the election of the President of the European Commission. Prior to the

decision of the European Council, representatives of the European Parliament and of the European

Council will thus conduct the necessary consultations in the framework deemed the most

appropriate. These consultations will focus on the backgrounds of the candidates for President of

the Commission, taking account of the elections to the European Parliament, in accordance with the

first subparagraph of Article 17(7). The arrangements for such consultations may be determined, in

due course, by common accord between the European Parliament and the European Council.

12. Declaration on Article 18 of the Treaty on European Union

1. The Conference declares that, in the course of the preparatory work preceding the appointment

of the High Representative of the Union for Foreign Affairs and Security Policy which is due to take

place on the date of entry into force of the Treaty of Lisbon in accordance with Article 18 of the

Treaty on European Union and Article 5 of the Protocol on transitional provisions and whose term

of office will be from that date until the end of the term of office of the Commission in office on

that date, appropriate contacts will be made with the European Parliament.

2. Furthermore, the Conference recalls that, as regards the High Representative of the Union for

Foreign Affairs and Security Policy whose term of office will start in November 2009 at the same

time and for the same duration as the next Commission, he or she will be appointed in accordance

with the provisions of Articles 17 and 18 of the Treaty on European Union.

C 326/344 Official Journal of the European Union 26.10.2012

13. Declaration concerning the common foreign and security policy

The Conference underlines that the provisions in the Treaty on European Union covering the

Common Foreign and Security Policy, including the creation of the office of High Representative

of the Union for Foreign Affairs and Security Policy and the establishment of an External Action

Service, do not affect the responsibilities of the Member States, as they currently exist, for the

formulation and conduct of their foreign policy nor of their national representation in third

countries and international organisations.

The Conference also recalls that the provisions governing the Common Security and Defence Policy

do not prejudice the specific character of the security and defence policy of the Member States.

It stresses that the European Union and its Member States will remain bound by the provisions of the

Charter of the United Nations and, in particular, by the primary responsibility of the Security Council

and of its Members for the maintenance of international peace and security.

14. Declaration concerning the common foreign and security policy

In addition to the specific rules and procedures referred to in paragraph 1 of Article 24 of the Treaty

on European Union, the Conference underlines that the provisions covering the Common Foreign

and Security Policy including in relation to the High Representative of the Union for Foreign Affairs

and Security Policy and the External Action Service will not affect the existing legal basis,

responsibilities, and powers of each Member State in relation to the formulation and conduct of

its foreign policy, its national diplomatic service, relations with third countries and participation in

international organisations, including a Member State's membership of the Security Council of the

United Nations.

The Conference also notes that the provisions covering the Common Foreign and Security Policy do

not give new powers to the Commission to initiate decisions nor do they increase the role of the

European Parliament.

The Conference also recalls that the provisions governing the Common Security and Defence Policy

do not prejudice the specific character of the security and defence policy of the Member States.

15. Declaration on Article 27 of the Treaty on European Union

The Conference declares that, as soon as the Treaty of Lisbon is signed, the Secretary-General of the

Council, High Representative for the common foreign and security policy, the Commission and the

Member States should begin preparatory work on the European External Action Service.

26.10.2012 Official Journal of the European Union C 326/345

16. Declaration on Article 55(2) of the Treaty on European Union

The Conference considers that the possibility of producing translations of the Treaties in the

languages mentioned in Article 55(2) contributes to fulfilling the objective of respecting the

Union's rich cultural and linguistic diversity as set forth in the fourth subparagraph of

Article 3(3). In this context, the Conference confirms the attachment of the Union to the cultural

diversity of Europe and the special attention it will continue to pay to these and other languages.

The Conference recommends that those Member States wishing to avail themselves of the possibility

recognised in Article 55(2) communicate to the Council, within six months from the date of the

signature of the Treaty of Lisbon, the language or languages into which translations of the Treaties

will be made.

17. Declaration concerning primacy

The Conference recalls that, in accordance with well settled case law of the Court of Justice of the

European Union, the Treaties and the law adopted by the Union on the basis of the Treaties have

primacy over the law of Member States, under the conditions laid down by the said case law.

The Conference has also decided to attach as an Annex to this Final Act the Opinion of the Council

Legal Service on the primacy of EC law as set out in 11197/07 (JUR 260):

‘Opinion of the Council Legal Service

of 22 June 2007

It results from the case-law of the Court of Justice that primacy of EC law is a cornerstone principle of

Community law. According to the Court, this principle is inherent to the specific nature of the European

Community. At the time of the first judgment of this established case law (Costa/ENEL, 15 July 1964, Case

6/641 (

)) there was no mention of primacy in the treaty. It is still the case today. The fact that the principle of

primacy will not be included in the future treaty shall not in any way change the existence of the principle and

the existing case-law of the Court of Justice.

___________

(

) “It follows (…) that the law stemming from the treaty, an independent source of law, could not, because of its special and original

nature, be overridden by domestic legal provisions, however framed, without being deprived of its character as Community law and

without the legal basis of the Community itself being called into question.” ’

18. Declaration in relation to the delimitation of competences

The Conference underlines that, in accordance with the system of division of competences between

the Union and the Member States as provided for in the Treaty on European Union and the Treaty

on the Functioning of the European Union, competences not conferred upon the Union in the

Treaties remain with the Member States.

C 326/346 Official Journal of the European Union 26.10.2012

When the Treaties confer on the Union a competence shared with the Member States in a specific

area, the Member States shall exercise their competence to the extent that the Union has not

exercised, or has decided to cease exercising, its competence. The latter situation arises when the

relevant EU institutions decide to repeal a legislative act, in particular better to ensure constant

respect for the principles of subsidiarity and proportionality. The Council may, at the initiative of

one or several of its members (representatives of Member States) and in accordance with Article 241

of the Treaty on the Functioning of the European Union, request the Commission to submit

proposals for repealing a legislative act. The Conference welcomes the Commission's declaration

that it will devote particular attention to these requests.

Equally, the representatives of the governments of the Member States, meeting in an

Intergovernmental Conference, in accordance with the ordinary revision procedure provided for in

Article 48(2) to (5) of the Treaty on European Union, may decide to amend the Treaties upon which

the Union is founded, including either to increase or to reduce the competences conferred on the

Union in the said Treaties.

19. Declaration on Article 8 of the Treaty on the Functioning of the

European Union

The Conference agrees that, in its general efforts to eliminate inequalities between women and men,

the Union will aim in its different policies to combat all kinds of domestic violence. The Member

States should take all necessary measures to prevent and punish these criminal acts and to support

and protect the victims.

20. Declaration on Article 16 of the Treaty on the Functioning of the

European Union

The Conference declares that, whenever rules on protection of personal data to be adopted on the

basis of Article 16 could have direct implications for national security, due account will have to be

taken of the specific characteristics of the matter. It recalls that the legislation presently applicable

(see in particular Directive 95/46/EC) includes specific derogations in this regard.

21. Declaration on the protection of personal data in the fields of judicial

cooperation in criminal matters and police cooperation

The Conference acknowledges that specific rules on the protection of personal data and the free

movement of such data in the fields of judicial cooperation in criminal matters and police

cooperation based on Article 16 of the Treaty on the Functioning of the European Union may

prove necessary because of the specific nature of these fields.

26.10.2012 Official Journal of the European Union C 326/347

22. Declaration on Articles 48 and 79 of the Treaty on the Functioning of

the European Union

The Conference considers that in the event that a draft legislative act based on Article 79(2) would

affect important aspects of the social security system of a Member State, including its scope, cost or

financial structure, or would affect the financial balance of that system as set out in the second

paragraph of Article 48, the interests of that Member State will be duly taken into account.

23. Declaration on the second paragraph of Article 48 of the Treaty on

the Functioning of the European Union

The Conference recalls that in that case, in accordance with Article 15(4) of the Treaty on

European Union, the European Council acts by consensus.

24. Declaration concerning the legal personality of the European Union

The Conference confirms that the fact that the European Union has a legal personality will not in any

way authorise the Union to legislate or to act beyond the competences conferred upon it by the

Member States in the Treaties.

25. Declaration on Articles 75 and 215 of the Treaty on the Functioning

of the European Union

The Conference recalls that the respect for fundamental rights and freedoms implies, in particular,

that proper attention is given to the protection and observance of the due process rights of the

individuals or entities concerned. For this purpose and in order to guarantee a thorough judicial

review of decisions subjecting an individual or entity to restrictive measures, such decisions must be

based on clear and distinct criteria. These criteria should be tailored to the specifics of each restrictive

measure.

26. Declaration on non-participation by a Member State in a measure

based on Title V of Part Three of the Treaty on the Functioning of the

European Union

The Conference declares that, where a Member State opts not to participate in a measure based on

Title V of Part Three of the Treaty on the Functioning of the European Union, the Council will hold a

full discussion on the possible implications and effects of that Member State's non-participation in

the measure.

In addition, any Member State may ask the Commission to examine the situation on the basis of

Article 116 of the Treaty on the Functioning of the European Union.

The above paragraphs are without prejudice to the entitlement of a Member State to refer the matter

to the European Council.

C 326/348 Official Journal of the European Union 26.10.2012

27. Declaration on Article 85(1), second subparagraph, of the Treaty on the

Functioning of the European Union

The Conference considers that the regulations referred to in the second subparagraph of Article 85(1)

of the Treaty on the Functioning of the European Union should take into account national rules and

practices relating to the initiation of criminal investigations.

28. Declaration on Article 98 of the Treaty on the Functioning of the

European Union

The Conference notes that the provisions of Article 98 shall be applied in accordance with the

current practice. The terms ‘such measures are required in order to compensate for the economic

disadvantages caused by the division of Germany to the economy of certain areas of the Federal

Republic affected by that division’ shall be interpreted in accordance with the existing case law of the

Court of Justice of the European Union.

29. Declaration on Article 107(2)(c) of the Treaty on the Functioning of

the European Union

The Conference notes that Article 107(2)(c) shall be interpreted in accordance with the existing case

law of the Court of Justice of the European Union regarding the applicability of the provisions to aid

granted to certain areas of the Federal Republic of Germany affected by the former division of

Germany.

30. Declaration on Article 126 of the Treaty on the Functioning of the

European Union

With regard to Article 126, the Conference confirms that raising growth potential and securing

sound budgetary positions are the two pillars of the economic and fiscal policy of the Union and the

Member States. The Stability and Growth Pact is an important tool to achieve these goals.

The Conference reaffirms its commitment to the provisions concerning the Stability and Growth Pact

as the framework for the coordination of budgetary policies in the Member States.

The Conference confirms that a rule-based system is the best guarantee for commitments to be

enforced and for all Member States to be treated equally.

Within this framework, the Conference also reaffirms its commitment to the goals of the

Lisbon Strategy: job creation, structural reforms, and social cohesion.

The Union aims at achieving balanced economic growth and price stability. Economic and budgetary

policies thus need to set the right priorities towards economic reforms, innovation, competitiveness

and strengthening of private investment and consumption in phases of weak economic growth. This

should be reflected in the orientations of budgetary decisions at the national and Union level in

26.10.2012 Official Journal of the European Union C 326/349

particular through restructuring of public revenue and expenditure while respecting budgetary

discipline in accordance with the Treaties and the Stability and Growth Pact.

Budgetary and economic challenges facing the Member States underline the importance of sound

budgetary policy throughout the economic cycle.

The Conference agrees that Member States should use periods of economic recovery actively to

consolidate public finances and improve their budgetary positions. The objective is to gradually

achieve a budgetary surplus in good times which creates the necessary room to accommodate

economic downturns and thus contribute to the long-term sustainability of public finances.

The Member States look forward to possible proposals of the Commission as well as further

contributions of Member States with regard to strengthening and clarifying the implementation of

the Stability and Growth Pact. The Member States will take all necessary measures to raise the growth

potential of their economies. Improved economic policy coordination could support this objective.

This Declaration does not prejudge the future debate on the Stability and Growth Pact.

31. Declaration on Article 156 of the Treaty on the Functioning of the

European Union

The Conference confirms that the policies described in Article 156 fall essentially within the

competence of the Member States. Measures to provide encouragement and promote coordination

to be taken at Union level in accordance with this Article shall be of a complementary nature. They

shall serve to strengthen cooperation between Member States and not to harmonise national systems.

The guarantees and practices existing in each Member State as regards the responsibility of the social

partners will not be affected.

This Declaration is without prejudice to the provisions of the Treaties conferring competence on the

Union, including in social matters.

32. Declaration on Article 168(4)(c) of the Treaty on the Functioning of

the European Union

The Conference declares that the measures to be adopted pursuant to Article 168(4)(c) must meet

common safety concerns and aim to set high standards of quality and safety where national

standards affecting the internal market would otherwise prevent a high level of human health

protection being achieved.

C 326/350 Official Journal of the European Union 26.10.2012

33. Declaration on Article 174 of the Treaty on the Functioning of the

European Union

The Conference considers that the reference in Article 174 to island regions can include island States

in their entirety, subject to the necessary criteria being met.

34. Declaration on Article 179 of the Treaty on the Functioning of the

European Union

The Conference agrees that the Union's action in the area of research and technological development

will pay due respect to the fundamental orientations and choices of the research policies of the

Member States.

35. Declaration on Article 194 of the Treaty on the Functioning of the

European Union

The Conference believes that Article 194 does not affect the right of the Member States to take the

necessary measures to ensure their energy supply under the conditions provided for in Article 347.

36. Declaration on Article 218 of the Treaty on the Functioning of the

European Union concerning the negotiation and conclusion of international

agreements by Member States relating to the area of freedom, security and

justice

The Conference confirms that Member States may negotiate and conclude agreements with

third countries or international organisations in the areas covered by Chapters 3, 4 and 5 of Title

V of Part Three in so far as such agreements comply with Union law.

37. Declaration on Article 222 of the Treaty on the Functioning of the

European Union

Without prejudice to the measures adopted by the Union to comply with its solidarity obligation

towards a Member State which is the object of a terrorist attack or the victim of natural or man-

made disaster, none of the provisions of Article 222 is intended to affect the right of another

Member State to choose the most appropriate means to comply with its own solidarity obligation

towards that Member State.

26.10.2012 Official Journal of the European Union C 326/351

38. Declaration on Article 252 of the Treaty on the Functioning of the

European Union regarding the number of Advocates-General in the Court of

Justice

The Conference declares that if, in accordance with Article 252, first paragraph, of the Treaty on the

Functioning of the European Union, the Court of Justice requests that the number of Advocates-

General be increased by three (eleven instead of eight), the Council will, acting unanimously, agree on

such an increase.

In that case, the Conference agrees that Poland will, as is already the case for Germany, France, Italy,

Spain and the United Kingdom, have a permanent Advocate-General and no longer take part in the

rotation system, while the existing rotation system will involve the rotation of five Advocates-General

instead of three.

39. Declaration on Article 290 of the Treaty on the Functioning of the

European Union

The Conference takes note of the Commission's intention to continue to consult experts appointed

by the Member States in the preparation of draft delegated acts in the financial services area, in

accordance with its established practice.

40. Declaration on Article 329 of the Treaty on the Functioning of the

European Union

The Conference declares that Member States may indicate, when they make a request to establish

enhanced cooperation, if they intend already at that stage to make use of Article 333 providing for

the extension of qualified majority voting or to have recourse to the ordinary legislative procedure.

41. Declaration on Article 352 of the Treaty on the Functioning of the

European Union

The Conference declares that the reference in Article 352(1) of the Treaty on the Functioning of the

European Union to objectives of the Union refers to the objectives as set out in Article 3(2) and (3)

of the Treaty on European Union and to the objectives of Article 3(5) of the said Treaty with respect

to external action under Part Five of the Treaty on the Functioning of the European Union. It is

therefore excluded that an action based on Article 352 of the Treaty on the Functioning of the

European Union would only pursue objectives set out in Article 3(1) of the Treaty on European

Union. In this connection, the Conference notes that in accordance with Article 31(1) of the Treaty

on European Union, legislative acts may not be adopted in the area of the Common Foreign and

Security Policy.

C 326/352 Official Journal of the European Union 26.10.2012

42. Declaration on Article 352 of the Treaty on the Functioning of the

European Union

The Conference underlines that, in accordance with the settled case law of the Court of Justice of the

European Union, Article 352 of the Treaty on the Functioning of the European Union, being an

integral part of an institutional system based on the principle of conferred powers, cannot serve as a

basis for widening the scope of Union powers beyond the general framework created by the

provisions of the Treaties as a whole and, in particular, by those that define the tasks and the

activities of the Union. In any event, this Article cannot be used as a basis for the adoption of

provisions whose effect would, in substance, be to amend the Treaties without following the

procedure which they provide for that purpose.

43. Declaration on Article 355(6) of the Treaty on the Functioning of the

European Union

The High Contracting Parties agree that the European Council, pursuant to Article 355(6), will take a

decision leading to the modification of the status of Mayotte with regard to the Union in order to

make this territory an outermost region within the meaning of Article 355(1) and Article 349, when

the French authorities notify the European Council and the Commission that the evolution currently

under way in the internal status of the island so allows.

26.10.2012 Official Journal of the European Union C 326/353

B. DECLARATIONS CONCERNING PROTOCOLS ANNEXED TO THE TREATIES

44. Declaration on Article 5 of the Protocol on the Schengen acquis

integrated into the framework of the European Union

The Conference notes that where a Member State has made a notification under Article 5(2) of the

Protocol on the Schengen acquis integrated into the framework of the European Union that it does

not wish to take part in a proposal or initiative, that notification may be withdrawn at any moment

before the adoption of the measure building upon the Schengen acquis.

45. Declaration on Article 5(2) of the Protocol on the Schengen acquis

integrated into the framework of the European Union

The Conference declares that whenever the United Kingdom or Ireland indicates to the Council its

intention not to participate in a measure building upon a part of the Schengen acquis in which it

participates, the Council will have a full discussion on the possible implications of the non-

participation of that Member State in that measure. The discussion within the Council should be

conducted in the light of the indications given by the Commission concerning the relationship

between the proposal and the Schengen acquis.

46. Declaration on Article 5(3) of the Protocol on the Schengen acquis

integrated into the framework of the European Union

The Conference recalls that if the Council does not take a decision after a first substantive discussion

of the matter, the Commission may present an amended proposal for a further substantive re-

examination by the Council within the deadline of 4 months.

47. Declaration on Article 5(3), (4) and (5) of the Protocol on the

Schengen acquis integrated into the framework of the European Union

The Conference notes that the conditions to be determined in the decision referred to in paragraphs

3, 4 or 5 of Article 5 of the Protocol on the Schengen acquis integrated into the framework of the

European Union may determine that the Member State concerned shall bear the direct financial

consequences, if any, necessarily and unavoidably incurred as a result of the cessation of its

participation in some or all of the acquis referred to in any decision taken by the Council

pursuant to Article 4 of the said Protocol.

C 326/354 Official Journal of the European Union 26.10.2012

48. Declaration concerning the Protocol on the position of Denmark

The Conference notes that with respect to legal acts to be adopted by the Council acting alone or

jointly with the European Parliament and containing provisions applicable to Denmark as well as

provisions not applicable to Denmark because they have a legal basis to which Part I of the Protocol

on the position of Denmark applies, Denmark declares that it will not use its voting right to prevent

the adoption of the provisions which are not applicable to Denmark.

Furthermore, the Conference notes that on the basis of the Declaration by the Conference on

Article 222, Denmark declares that Danish participation in actions or legal acts pursuant to

Article 222 will take place in accordance with Part I and Part II of the Protocol on the position

of Denmark.

49. Declaration concerning Italy

The Conference notes that the Protocol on Italy annexed in 1957 to the Treaty establishing the

European Economic Community, as amended upon adoption of the Treaty on European Union,

stated that:

‘THE HIGH CONTRACTING PARTIES,

DESIRING to settle certain particular problems relating to Italy,

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

THE MEMBER STATES OF THE COMMUNITY

TAKE NOTE of the fact that the Italian Government is carrying out a ten-year programme of

economic expansion designed to rectify the disequilibria in the structure of the Italian economy,

in particular by providing an infrastructure for the less developed areas in Southern Italy and in the

Italian islands and by creating new jobs in order to eliminate unemployment;

RECALL that the principles and objectives of this programme of the Italian Government have been

considered and approved by organisations for international cooperation of which the Member States

are members;

RECOGNISE that it is in their common interest that the objectives of the Italian programme should

be attained;

AGREE, in order to facilitate the accomplishment of this task by the Italian Government, to

recommend to the institutions of the Community that they should employ all the methods and

procedures provided in this Treaty and, in particular, make appropriate use of the resources of the

European Investment Bank and the European Social Fund;

26.10.2012 Official Journal of the European Union C 326/355

ARE OF THE OPINION that the institutions of the Community should, in applying this Treaty, take

account of the sustained effort to be made by the Italian economy in the coming years and of the

desirability of avoiding dangerous stresses in particular within the balance of payments or the level of

employment, which might jeopardise the application of this Treaty in Italy;

RECOGNISE that in the event of Articles 109 H and 109 I being applied it will be necessary to take

care that any measures required of the Italian Government do not prejudice the completion of its

programme for economic expansion and for raising the standard of living of the population.’.

50. Declaration concerning Article 10 of the Protocol on transitional

provisions

The Conference invites the European Parliament, the Council and the Commission, within their

respective powers, to seek to adopt, in appropriate cases and as far as possible within the five-

year period referred to in Article 10(3) of the Protocol on transitional provisions, legal acts amending

or replacing the acts referred to in Article 10(1) of that Protocol.

C 326/356 Official Journal of the European Union 26.10.2012

C. DECLARATIONS BY MEMBER STATES

51. Declaration by the Kingdom of Belgium on national Parliaments

Belgium wishes to make clear that, in accordance with its constitutional law, not only the Chamber

of Representatives and Senate of the Federal Parliament but also the parliamentary assemblies of the

Communities and the Regions act, in terms of the competences exercised by the Union, as

components of the national parliamentary system or chambers of the national Parliament.

52. Declaration by the Kingdom of Belgium, the Republic of Bulgaria, the

Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain,

the Italian Republic, the Republic of Cyprus, the Republic of Lithuania, the

Grand-Duchy of Luxembourg, the Republic of Hungary, the Republic of

Malta, the Republic of Austria, the Portuguese Republic, Romania, the

Republic of Slovenia and the Slovak Republic on the symbols of the

European Union

Belgium, Bulgaria, Germany, Greece, Spain, Italy, Cyprus, Lithuania, Luxemburg, Hungary, Malta,

Austria, Portugal, Romania, Slovenia and the Slovak Republic declare that the flag with a circle of

twelve golden stars on a blue background, the anthem based on the ‘Ode to Joy’ from the Ninth

Symphony by Ludwig van Beethoven, the motto ‘United in diversity’, the euro as the currency of the

European Union and Europe Day on 9 May will for them continue as symbols to express the sense

of community of the people in the European Union and their allegiance to it.

53. Declaration by the Czech Republic on the Charter of Fundamental

Rights of the European Union

1. The Czech Republic recalls that the provisions of the Charter of Fundamental Rights of the

European Union are addressed to the institutions and bodies of the European Union with due regard

for the principle of subsidiarity and division of competences between the European Union and its

Member States, as reaffirmed in Declaration (No 18) in relation to the delimitation of competences.

The Czech Republic stresses that its provisions are addressed to the Member States only when they

are implementing Union law, and not when they are adopting and implementing national law

independently from Union law.

2. The Czech Republic also emphasises that the Charter does not extend the field of application of

Union law and does not establish any new power for the Union. It does not diminish the field of

application of national law and does not restrain any current powers of the national authorities in

this field.

26.10.2012 Official Journal of the European Union C 326/357

3. The Czech Republic stresses that, in so far as the Charter recognises fundamental rights and

principles as they result from constitutional traditions common to the Member States, those rights

and principles are to be interpreted in harmony with those traditions.

4. The Czech Republic further stresses that nothing in the Charter may be interpreted as

restricting or adversely affecting human rights and fundamental freedoms as recognised, in their

respective field of application, by Union law and by international agreements to which the Union or

all the Member States are party, including the European Convention for the Protection of Human

Rights and Fundamental Freedoms, and by the Member States' Constitutions.

54. Declaration by the Federal Republic of Germany, Ireland, the

Republic of Hungary, the Republic of Austria and the Kingdom of Sweden

Germany, Ireland, Hungary, Austria and Sweden note that the core provisions of the Treaty

establishing the European Atomic Energy Community have not been substantially amended since

its entry into force and need to be brought up to date. They therefore support the idea of a

Conference of the Representatives of the Governments of the Member States, which should be

convened as soon as possible.

55. Declaration by the Kingdom of Spain and the United Kingdom of

Great Britain and Northern Ireland

The Treaties apply to Gibraltar as a European territory for whose external relations a Member State is

responsible. This shall not imply changes in the respective positions of the Member States concerned.

56. Declaration by Ireland on Article 3 of the Protocol on the position of

the United Kingdom and Ireland in respect of the area of freedom, security

and justice

Ireland affirms its commitment to the Union as an area of freedom, security and justice respecting

fundamental rights and the different legal systems and traditions of the Member States within which

citizens are provided with a high level of safety.

Accordingly, Ireland declares its firm intention to exercise its right under Article 3 of the Protocol on

the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice

to take part in the adoption of measures pursuant to Title V of Part Three of the Treaty on the

Functioning of the European Union to the maximum extent it deems possible.

Ireland will, in particular, participate to the maximum possible extent in measures in the field of

police cooperation.

C 326/358 Official Journal of the European Union 26.10.2012

Furthermore, Ireland recalls that in accordance with Article 8 of the Protocol it may notify

the Council in writing that it no longer wishes to be covered by the terms of the Protocol.

Ireland intends to review the operation of these arrangements within three years of the entry into

force of the Treaty of Lisbon.

57. Declaration by the Italian Republic on the composition of the

European Parliament

Italy notes that, pursuant to Articles 10 and 14 of the Treaty on European Union, the

European Parliament is to be composed of representatives of the Union's citizens; this

representation is to be degressively proportional.

Italy likewise notes that on the basis of Article 9 of the Treaty on European Union and Article 20 of

the Treaty on the Functioning of the European Union, every national of a Member State is a citizen

of the Union.

Italy therefore considers that, without prejudice to the decision on the 2009-2014 legislative period,

any decision adopted by the European Council, at the initiative of the European Parliament and with

its consent, establishing the composition of the European Parliament, must abide by the principles

laid down out in the first subparagraph of Article 14.

58. Declaration by the Republic of Latvia, the Republic of Hungary and

the Republic of Malta on the spelling of the name of the single currency in

the Treaties

Without prejudice to the unified spelling of the name of the single currency of the European Union

referred to in the Treaties as displayed on the banknotes and on the coins, Latvia, Hungary and Malta

declare that the spelling of the name of the single currency, including its derivatives as applied

throughout the Latvian, Hungarian and Maltese text of the Treaties, has no effect on the existing rules

of the Latvian, Hungarian or Maltese languages.

59. Declaration by the Kingdom of the Netherlands on Article 312 of the

Treaty on the Functioning of the European Union

The Kingdom of the Netherlands will agree to a decision as referred to in the second subparagraph of

Article 312(2) of the Treaty on the Functioning of the European Union once a revision of the

decision referred to in the third paragraph of Article 311 of that Treaty has provided the Netherlands

with a satisfactory solution for its excessive negative net payment position vis-à-vis the Union budget.

26.10.2012 Official Journal of the European Union C 326/359

60. Declaration by the Kingdom of the Netherlands on Article 355 of the

Treaty on the Functioning of the European Union

The Kingdom of the Netherlands declares that an initiative for a decision, as referred to in

Article 355(6) aimed at amending the status of the Netherlands Antilles and/or Aruba with regard

to the Union, will be submitted only on the basis of a decision taken in conformity with the Charter

for the Kingdom of the Netherlands.

61. Declaration by the Republic of Poland on the Charter of Fundamental

Rights of the European Union

The Charter does not affect in any way the right of Member States to legislate in the sphere of public

morality, family law, as well as the protection of human dignity and respect for human physical and

moral integrity.

62. Declaration by the Republic of Poland concerning the Protocol on

the application of the Charter of Fundamental Rights of the European Union

in relation to Poland and the United Kingdom

Poland declares that, having regard to the tradition of social movement of ‘Solidarity’ and its

significant contribution to the struggle for social and labour rights, it fully respects social and

labour rights, as established by European Union law, and in particular those reaffirmed in Title IV

of the Charter of Fundamental Rights of the European Union.

63. Declaration by the United Kingdom of Great Britain and Northern

Ireland on the definition of the term "nationals"

In respect of the Treaties and the Treaty establishing the European Atomic Energy Community, and

in any of the acts deriving from those Treaties or continued in force by those Treaties, the United

Kingdom reiterates the Declaration it made on 31 December 1982 on the definition of the term

‘nationals’ with the exception that the reference to ‘British Dependent Territories Citizens’ shall be

read as meaning ‘British overseas territories citizens’.

64. Declaration by the United Kingdom of Great Britain and Northern Ireland on the

franchise for elections to the European Parliament

The United Kingdom notes that Article 14 of the Treaty on European Union and other provisions of

the Treaties are not intended to change the basis for the franchise for elections to the European

Parliament.

C 326/360 Official Journal of the European Union 26.10.2012

65. Declaration by the United Kingdom of Great Britain and Northern

Ireland on Article 75 of the Treaty on the Functioning of the

European Union

The United Kingdom fully supports robust action with regard to adopting financial sanctions

designed to prevent and combat terrorism and related activities. Therefore, the United Kingdom

declares that it intends to exercise its right under Article 3 of the Protocol on the position of the

United Kingdom and Ireland in respect of the area of freedom, security and justice to take part in the

adoption of all proposals made under Article 75 of the Treaty on the Functioning of the European

Union.

26.10.2012 Official Journal of the European Union C 326/361

TABLES OF EQUIVALENCES (*)

Treaty on European Union

Old numbering of the Treaty on European

Union

New numbering of the Treaty on European

Union

TITLE I – COMMON PROVISIONS TITLE I – COMMON PROVISIONS

Article 1 Article 1

Article 2

Article 2 Article 3

Article 3 (repealed) (

)

Article 4

Article 5 (

)

Article 4 (repealed) (

)

Article 5 (repealed) (

)

Article 6 Article 6

Article 7 Article 7

Article 8

TITLE II – PROVISIONS AMENDING THE

TREATY ESTABLISHING THE EUROPEAN

ECONOMIC COMMUNITY WITH A VIEW TO

ESTABLISHING THE EUROPEAN

COMMUNITY

TITLE II – PROVISIONS ON DEMOCRATIC

PRINCIPLES

Article 8 (repealed) (

) Article 9

Article 10 (

)

(

) Replaced, in substance, by Article 7 of the Treaty on the Functioning of the European Union (‘TFEU’)

and by Articles 13(1) and 21, paragraph 3, second subparagraph of the Treaty on European Union

(‘TEU’).

(

) Replaces Article 5 of the Treaty establishing the European Community (‘TEC’).

(

) Replaced, in substance, by Article 15.

(

) Replaced, in substance, by Article 13, paragraph 2.

(

) Article 8 TEU, which was in force until the entry into force of the Treaty of Lisbon (hereinafter

‘current’), amended the TEC. Those amendments are incorporated into the latter Treaty and

Article 8 is repealed. Its number is used to insert a new provision.

(

) Paragraph 4 replaces, in substance, the first subparagraph of Article 191 TEC.

26.10.2012 Official Journal of the European Union C 326/363

(*) Tables of equivalences as referred to in Article 5 of the Treaty of Lisbon. The original centre column,

which set out the intermediate numbering as used in that Treaty, has been omitted.

Old numbering of the Treaty on European

Union

New numbering of the Treaty on European

Union

Article 11

Article 12

TITLE III – PROVISIONS AMENDING THE

TREATY ESTABLISHING THE EUROPEAN

COAL AND STEEL COMMUNITY

TITLE III – PROVISIONS ON THE INSTITU

TIONS

Article 9 (repealed) (

) Article 13

Article 14 (

)

Article 15 (

)

Article 16 (

)

Article 17 (

)

Article 18

Article 19 (

)

TITLE IV – PROVISIONS AMENDING THE

TREATY ESTABLISHING THE EUROPEAN

ATOMIC ENERGY COMMUNITY

TITLE IV – PROVISIONS ON ENHANCED

COOPERATION

Article 10 (repealed) (

)

Articles 27a to 27e (replaced)

Articles 40 to 40b (replaced)

Articles 43 to 45 (replaced)

Article 20 (

)

(

) The current Article 9 TEU amended the Treaty establishing the European Coal and Steel Community.

This latter expired on 23 July 2002. Article 9 is repealed and the number thereof is used to insert

another provision.

(

) — Paragraphs 1 and 2 replace, in substance, Article 189 TEC;

— paragraphs 1 to 3 replace, in substance, paragraphs 1 to 3 of Article 190 TEC;

— paragraph 1 replaces, in substance, the first subparagraph of Article 192 TEC;

— paragraph 4 replaces, in substance, the first subparagraph of Article 197 TEC.

(

) Replaces, in substance, Article 4.

(

) — Paragraph 1 replaces, in substance, the first and second indents of Article 202 TEC;

— paragraphs 2 and 9 replace, in substance, Article 203 TEC;

— paragraphs 4 and 5 replace, in substance, paragraphs 2 and 4 of Article 205 TEC.

(

) — Paragraph 1 replaces, in substance, Article 211 TEC;

— paragraphs 3 and 7 replace, in substance, Article 214 TEC.

— paragraph 6 replaces, in substance, paragraphs 1, 3 and 4 of Article 217 TEC.

(

) — Replaces, in substance, Article 220 TEC.

— the first subparagraph of paragraph 2 replaces, in substance, the first subparagraph of Article 221

TEC.

(

) The current Article 10 TEU amended the Treaty establishing the European Atomic Energy Community.

Those amendments are incorporated into the Treaty of Lisbon. Article 10 is repealed and the number

thereof is used to insert another provision.

(

) Also replaces Articles 11 and 11a TEC.

C 326/364 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty on European

Union

New numbering of the Treaty on European

Union

TITLE V – PROVISIONS ON A COMMON

FOREIGN AND SECURITY POLICY

TITLE V – GENERAL PROVISIONS ON THE

UNION'S EXTERNAL ACTION AND SPECIFIC

PROVISIONS ON THE COMMON FOREIGN

AND SECURITY POLICY

Chapter 1 – General provisions on the Union's

external action

Article 21

Article 22

Chapter 2 – Specific provisions on the

common foreign and security policy

Section 1 – Common provisions

Article 23

Article 11 Article 24

Article 12 Article 25

Article 13 Article 26

Article 27

Article 14 Article 28

Article 15 Article 29

Article 22 (moved) Article 30

Article 23 (moved) Article 31

Article 16 Article 32

Article 17 (moved) Article 42

Article 18 Article 33

Article 19 Article 34

Article 20 Article 35

Article 21 Article 36

Article 22 (moved) Article 30

Article 23 (moved) Article 31

Article 24 Article 37

26.10.2012 Official Journal of the European Union C 326/365

Old numbering of the Treaty on European

Union

New numbering of the Treaty on European

Union

Article 25 Article 38

Article 39

Article 47 (moved) Article 40

Article 26 (repealed)

Article 27 (repealed)

Article 27a (replaced) (

) Article 20

Article 27b (replaced) (

) Article 20

Article 27c (replaced) (

) Article 20

Article 27d (replaced) (

) Article 20

Article 27e (replaced) (

) Article 20

Article 28 Article 41

Section 2 – Provisions on the common security

and defence policy

Article 17 (moved) Article 42

Article 43

Article 44

Article 45

Article 46

TITLE VI – PROVISIONS ON POLICE AND

JUDICIAL COOPERATION IN CRIMINAL

MATTERS (repealed) (

)

Article 29 (replaced) (

)

Article 30 (replaced) (

)

Article 31 (replaced) (

)

(

) The current Articles 27a to 27e, on enhanced cooperation, are also replaced by Articles 326 to 334

TFEU.

(

) The current provisions of Title VI of the TEU, on police and judicial cooperation in criminal matters,

are replaced by the provisions of Chapters 1, 4 and 5 of Title IV (renumbered V) of Part Three of the

TFEU.

(

) Replaced by Article 67 TFEU.

(

) Replaced by Articles 87 and 88 TFEU.

(

) Replaced by Articles 82, 83 and 85 TFEU.

C 326/366 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty on European

Union

New numbering of the Treaty on European

Union

Article 32 (replaced) (

)

Article 33 (replaced) (

)

Article 34 (repealed)

Article 35 (repealed)

Article 36 (replaced) (

)

Article 37 (repealed)

Article 38 (repealed)

Article 39 (repealed)

Article 40 (replaced) (

) Article 20

Article 40 A (replaced) (

) Article 20

Article 40 B (replaced) (

) Article 20

Article 41 (repealed)

Article 42 (repealed)

TITLE VII – PROVISIONS ON ENHANCED

COOPERATION (replaced) (

)

TITLE IV – PROVISIONS ON ENHANCED

COOPERATION

Article 43 (replaced) (

) Article 20

Article 43 A (replaced) (

) Article 20

Article 43 B (replaced) (

) Article 20

Article 44 (replaced) (

) Article 20

Article 44 A (replaced) (

) Article 20

Article 45 (replaced) (

) Article 20

TITRE VIII – FINAL PROVISIONS TITLE VI – FINAL PROVISIONS

Article 46 (repealed)

Article 47

(

) Replaced by Article 89 TFEU.

(

) Replaced by Article 72 TFEU.

(

) Replaced by Article 71 TFEU.

(

) The current Articles 40 to 40 B TEU, on enhanced cooperation, are also replaced by Articles 326 to

334 TFEU.

(

) The current Articles 43 to 45 and Title VII of the TEU, on enhanced cooperation, are also replaced by

Articles 326 to 334 TFEU.

26.10.2012 Official Journal of the European Union C 326/367

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Union

New numbering of the Treaty on European

Union

Article 47 (replaced) Article 40

Article 48 Article 48

Article 49 Article 49

Article 50

Article 51

Article 52

Article 50 (repealed)

Article 51 Article 53

Article 52 Article 54

Article 53 Article 55

Treaty on the Functioning of the European Union

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

PART ONE – PRINCIPLES PART ONE – PRINCIPLES

Article 1 (repealed)

Article 1

Article 2 (repealed) (

)

Title I – Categories and areas of union

competence

Article 2

Article 3

Article 4

Article 5

Article 6

Title II – Provisions having general application

(

) Replaced, in substance, by Article 3 TEU.

C 326/368 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 7

Article 3, paragraph 1 (repealed) (

)

Article 3, paragraph 2 Article 8

Article 4 (moved) Article 119

Article 5 (replaced) (

)

Article 9

Article 10

Article 6 Article 11

Article 153, paragraph 2 (moved) Article 12

Article 13 (

)

Article 7 (repealed) (

)

Article 8 (repealed) (

)

Article 9 (repealed)

Article 10 (repealed) (

)

Article 11 (replaced) (

) Articles 326 to 334

Article 11a (replaced) (

) Articles 326 to 334

Article 12 (moved) Article 18

Article 13 (moved) Article 19

Article 14 (moved) Article 26

Article 15 (moved) Article 27

Article 16 Article 14

Article 255 (moved) Article 15

Article 286 (moved) Article 16

(

) Replaced, in substance, by Articles 3 to 6 TFEU.

(

) Replaced by Article 5 TEU.

(

) Insertion of the operative part of the protocol on protection and welfare of animals.

(

) Replaced, in substance, by Article 13 TEU.

(

) Replaced, in substance, by Article 13 TEU and Article 282, paragraph 1, TFEU.

(

) Replaced, in substance, by Article 4, paragraph 3, TEU.

(

) Also replaced by Article 20 TEU.

26.10.2012 Official Journal of the European Union C 326/369

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 17

PART TWO – CITIZENSHIP OF THE UNION PART TWO – NONDISCRIMINATION AND

CITIZENSHIP OF THE UNION

Article 12 (moved) Article 18

Article 13 (moved) Article 19

Article 17 Article 20

Article 18 Article 21

Article 19 Article 22

Article 20 Article 23

Article 21 Article 24

Article 22 Article 25

PART THREE – COMMUNITY POLICIES PART THREE – POLICIES AND INTERNAL

ACTIONS OF THE UNION

Title I – The internal market

Article 14 (moved) Article 26

Article 15 (moved) Article 27

Title I – Free movement of goods Title II – Free movement of goods

Article 23 Article 28

Article 24 Article 29

Chapter 1 – The customs union Chapter 1 – The customs union

Article 25 Article 30

Article 26 Article 31

Article 27 Article 32

Part Three, Title X, Customs cooperation (moved) Chapter 2 – Customs cooperation

Article 135 (moved) Article 33

Chapter 2 – Prohibition of quantitative

restrictions between Member States

Chapter 3 – Prohibition of quantitative

restrictions between Member States

Article 28 Article 34

C 326/370 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 29 Article 35

Article 30 Article 36

Article 31 Article 37

Title II – Agriculture Title III – Agriculture and fisheries

Article 32 Article 38

Article 33 Article 39

Article 34 Article 40

Article 35 Article 41

Article 36 Article 42

Article 37 Article 43

Article 38 Article 44

Title III – Free movement of persons, services

and capital

Title IV – Free movement of persons, services

and capital

Chapter 1 – Workers Chapter 1 – Workers

Article 39 Article 45

Article 40 Article 46

Article 41 Article 47

Article 42 Article 48

Chapter 2 – Right of establishment Chapter 2 – Right of establishment

Article 43 Article 49

Article 44 Article 50

Article 45 Article 51

Article 46 Article 52

Article 47 Article 53

Article 48 Article 54

Article 294 (moved) Article 55

Chapter 3 – Services Chapter 3 – Services

Article 49 Article 56

26.10.2012 Official Journal of the European Union C 326/371

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European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 50 Article 57

Article 51 Article 58

Article 52 Article 59

Article 53 Article 60

Article 54 Article 61

Article 55 Article 62

Chapter 4 – Capital and payments Chapter 4 – Capital and payments

Article 56 Article 63

Article 57 Article 64

Article 58 Article 65

Article 59 Article 66

Article 60 (moved) Article 75

Title IV – Visas, asylum, immigration and other

policies related to free movement of persons

Title V – Area of freedom, security and justice

Chapter 1 – General provisions

Article 61 Article 67 (

)

Article 68

Article 69

Article 70

Article 71 (

)

Article 64, paragraph 1 (replaced) Article 72 (

)

Article 73

Article 66 (replaced) Article 74

Article 60 (moved) Article 75

Article 76

(

) Also replaces the current Article 29 TEU.

(

) Replaces the current Article 36 TEU.

(

) Also replaces the current Article 33 TEU.

C 326/372 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Chapter 2 – Policies on border checks, asylum

and immigration

Article 62 Article 77

Article 63, points 1 et 2, and Article 64,

paragraph 2 (

)

Article 78

Article 63, points 3 and 4 Article 79

Article 80

Article 64, paragraph 1 (replaced) Article 72

Chapter 3 – Judicial cooperation in civil

matters

Article 65 Article 81

Article 66 (replaced) Article 74

Article 67 (repealed)

Article 68 (repealed)

Article 69 (repealed)

Chapter 4 – Judicial cooperation in criminal

matters

Article 82 (

)

Article 83 (

)

Article 84

Article 85 (

)

Article 86

Chapter 5 – Police cooperation

Article 87 (

)

Article 88 (

)

Article 89 (

)

(

) Points 1 and 2 of Article 63 EC are replaced by paragraphs 1 and 2 of Article 78 TFEU, and

paragraph 2 of Article 64 is replaced by paragraph 3 of Article 78 TFEU.

(

) Replaces the current Article 31 TEU.

(

) Replaces the current Article 30 TEU.

(

) Replaces the current Article 32 TEU.

26.10.2012 Official Journal of the European Union C 326/373

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Title V – Transport Title VI – Transport

Article 70 Article 90

Article 71 Article 91

Article 72 Article 92

Article 73 Article 93

Article 74 Article 94

Article 75 Article 95

Article 76 Article 96

Article 77 Article 97

Article 78 Article 98

Article 79 Article 99

Article 80 Article 100

Title VI – Common rules on competition,

taxation and approximation of laws

Title VII – Common rules on competition,

taxation and approximation of laws

Chapter 1 – Rules on competition Chapter 1 – Rules on competition

Section 1 – Rules applying to undertakings Section 1 – Rules applying to undertakings

Article 81 Article 101

Article 82 Article 102

Article 83 Article 103

Article 84 Article 104

Article 85 Article 105

Article 86 Article 106

Section 2 – Aids granted by States Section 2 – Aids granted by States

Article 87 Article 107

Article 88 Article 108

Article 89 Article 109

Chapter 2 – Tax provisions Chapter 2 – Tax provisions

C 326/374 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 90 Article 110

Article 91 Article 111

Article 92 Article 112

Article 93 Article 113

Chapter 3 – Approximation of laws Chapter 3 – Approximation of laws

Article 95 (moved) Article 114

Article 94 (moved) Article 115

Article 96 Article 116

Article 97 Article 117

Article 118

Title VII – Economic and monetary policy Title VIII – Economic and monetary policy

Article 4 (moved) Article 2

Chapter 1 – Economic policy Chapter 1 – Economic policy

Article 98 Article 120

Article 99 Article 121

Article 100 Article 122

Article 101 Article 123

Article 102 Article 124

Article 103 Article 125

Article 104 Article 126

Chapter 2 – monetary policy Chapter 2 – monetary policy

Article 105 Article 127

Article 106 Article 128

Article 107 Article 129

Article 108 Article 130

Article 109 Article 131

Article 110 Article 132

26.10.2012 Official Journal of the European Union C 326/375

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European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 111, paragraphs 1 to 3 and 5 (moved) Article 219

Article 111, paragraph 4 (moved) Article 138

Article 133

Chapter 3 – Institutional provisions Chapter 3 – Institutional provisions

Article 112 (moved) Article 283

Article 113 (moved) Article 284

Article 114 Article 134

Article 115 Article 135

Chapter 4 – Provisions specific to Member

States whose currency is the euro

Article 136

Article 137

Article 111, paragraph 4 (moved) Article 138

Chapter 4 – Transitional provisions Chapter 5 – Transitional provisions

Article 116 (repealed)

Article 139

Article 117, paragraphs 1, 2, sixth indent, and

3 to 9 (repealed)

Article 117, paragraph 2, first five indents

(moved)

Article 141, paragraph 2

Article 121, paragraph 1 (moved)

Article 122, paragraph 2, second sentence (moved)

Article 123, paragraph 5 (moved)

Article 140 (

)

Article 118 (repealed)

Article 123, paragraph 3 (moved)

Article 117, paragraph 2, first five indents (moved)

Article 141 (

)

(

) — Article 140, paragraph 1 takes over the wording of paragraph 1 of Article 121.

— Article 140, paragraph 2 takes over the second sentence of paragraph 2 of Article 122.

— Article 140, paragraph 3 takes over paragraph 5 of Article 123.

(

) — Article 141, paragraph 1 takes over paragraph 3 of Article 123.

— Article 141, paragraph 2 takes over the first five indents of paragraph 2 of Article 117.

C 326/376 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 124, paragraph 1 (moved) Article 142

Article 119 Article 143

Article 120 Article 144

Article 121, paragraph 1 (moved) Article 140, paragraph 1

Article 121, paragraphs 2 to 4 (repealed)

Article 122, paragraphs 1, 2, first sentence, 3,

4, 5 and 6 (repealed)

Article 122, paragraph 2, second sentence

(moved)

Article 140, paragraph 2, first subparagraph

Article 123, paragraphs 1, 2 and 4 (repealed)

Article 123, paragraph 3 (moved) Article 141, paragraph 1

Article 123, paragraph 5 (moved) Article 140, paragraph 3

Article 124, paragraph 1 (moved) Article 142

Article 124, paragraph 2 (repealed)

Title VIII – Employment Title IX – Employment

Article 125 Article 145

Article 126 Article 146

Article 127 Article 147

Article 128 Article 148

Article 129 Article 149

Article 130 Article 150

Title IX – Common commercial policy (moved) Part Five, Title II, common commercial policy

Article 131 (moved) Article 206

Article 132 (repealed)

Article 133 (moved) Article 207

Article 134 (repealed)

Title X – Customs cooperation (moved) Part Three, Title II, Chapter 2, Customs cooperation

26.10.2012 Official Journal of the European Union C 326/377

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European Community

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Functioning of the European Union

Article 135 (moved) Article 33

Title XI – Social policy, education, vocational

training and youth

Title X – Social policy

Chapter 1 – social provisions (repealed)

Article 136 Article 151

Article 152

Article 137 Article 153

Article 138 Article 154

Article 139 Article 155

Article 140 Article 156

Article 141 Article 157

Article 142 Article 158

Article 143 Article 159

Article 144 Article 160

Article 145 Article 161

Chapter 2 – The European Social Fund Title XI – The European Social Fund

Article 146 Article 162

Article 147 Article 163

Article 148 Article 164

Chapter 3 – Education, vocational training and

youth

Title XII – Education, vocational training, youth

and sport

Article 149 Article 165

Article 150 Article 166

Title XII – Culture Title XIII – Culture

Article 151 Article 167

Title XIII – Public health Title XIV – Public health

Article 152 Article 168

Title XIV – Consumer protection Title XV – Consumer protection

C 326/378 Official Journal of the European Union 26.10.2012

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European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 153, paragraphs 1, 3, 4 and 5 Article 169

Article 153, paragraph 2 (moved) Article 12

Title XV – Trans–European networks Title XVI – Trans–European networks

Article 154 Article 170

Article 155 Article 171

Article 156 Article 172

Title XVI – Industry Title XVII – Industry

Article 157 Article 173

Title XVII – Economic and social cohesion Title XVIII – Economic, social and territorial

cohesion

Article 158 Article 174

Article 159 Article 175

Article 160 Article 176

Article 161 Article 177

Article 162 Article 178

Title XVIII – Research and technological

development

Title XIX – Research and technological

development and space

Article 163 Article 179

Article 164 Article 180

Article 165 Article 181

Article 166 Article 182

Article 167 Article 183

Article 168 Article 184

Article 169 Article 185

Article 170 Article 186

Article 171 Article 187

Article 172 Article 188

Article 189

26.10.2012 Official Journal of the European Union C 326/379

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New numbering of the Treaty on the

Functioning of the European Union

Article 173 Article 190

Title XIX – Environment Title XX – Environment

Article 174 Article 191

Article 175 Article 192

Article 176 Article 193

Titre XXI – Energy

Article 194

Title XXII – Tourism

Article 195

Title XXIII – Civil protection

Article 196

Title XXIV – Administrative cooperation

Article 197

Title XX – Development cooperation (moved) Part Five, Title III, Chapter 1, Development

cooperation

Article 177 (moved) Article 208

Article 178 (repealed) (

)

Article 179 (moved) Article 209

Article 180 (moved) Article 210

Article 181 (moved) Article 211

Title XXI – Economic, financial and technical

cooperation with third countries (moved)

Part Five, Title III, Chapter 2, Economic, financial

and technical cooperation with third countries

Article 181a (moved) Article 212

PART FOUR – ASSOCIATION OF THE

OVERSEAS COUNTRIES AND TERRITORIES

PART FOUR – ASSOCIATION OF THE

OVERSEAS COUNTRIES AND TERRITORIES

Article 182 Article 198

Article 183 Article 199

(

) Replaced, in substance, by the second sentence of the second subparagraph of paragraph 1 of

Article 208 TFEU.

C 326/380 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 184 Article 200

Article 185 Article 201

Article 186 Article 202

Article 187 Article 203

Article 188 Article 204

PART FIVE – THE UNION'S EXTERNAL

ACTION

Title I – General provisions on the Union's

external action

Article 205

Part Three, Title IX, Common commercial policy

(moved)

Title II – Common commercial policy

Article 131 (moved) Article 206

Article 133 (moved) Article 207

Title III – Cooperation with third countries and

humanitarian aid

Part Three, Title XX, Development cooperation

(moved)

Chapter 1 – development cooperation

Article 177 (moved) Article 208 (

)

Article 179 (moved) Article 209

Article 180 (moved) Article 210

Article 181 (moved) Article 211

Part Three, Title XXI, Economic, financial and

technical cooperation with third countries (moved)

Chapter 2 – Economic, financial and technical

cooperation with third countries

Article 181a (moved) Article 212

Article 213

Chapter 3 – Humanitarian aid

Article 214

Title IV – Restrictive measures

(

) The second sentence of the second subparagraph of paragraph 1 replaces, in substance, Article 178

TEC.

26.10.2012 Official Journal of the European Union C 326/381

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European Community

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Functioning of the European Union

Article 301 (replaced) Article 215

Title V – International agreements

Article 216

Article 310 (moved) Article 217

Article 300 (replaced) Article 218

Article 111, paragraphs 1 to 3 and 5 (moved) Article 219

Title VI – The Union's relations with

international organisations and third countries

and the Union delegations

Articles 302 to 304 (replaced) Article 220

Article 221

Title VII – Solidarity clause

Article 222

PART FIVE – INSTITUTIONS OF THE

COMMUNITY

PART SIX – INSTITUTIONAL AND

FINANCIAL PROVISIONS

Title I – Institutional provisions Title I – Institutional provisions

Chapter 1 – The institutions Chapter 1 – The institutions

Section 1 – The European Parliament Section 1 – The European Parliament

Article 189 (repealed) (

)

Article 190, paragraphs 1 to 3 (repealed) (

)

Article 190, paragraphs 4 and 5 Article 223

Article 191, first paragraph (repealed) (

)

Article 191, second paragraph Article 224

Article 192, first paragraph (repealed) (

)

Article 192, second paragraph Article 225

Article 193 Article 226

(

) Replaced, in substance, by Article 14, paragraphs 1 and 2, TEU.

(

) Replaced, in substance, by Article 14, paragraphs 1 to 3, TEU.

(

) Replaced, in substance, by Article 11, paragraph 4, TEU.

(

) Replaced, in substance, by Article 14, paragraph 1, TEU.

C 326/382 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 194 Article 227

Article 195 Article 228

Article 196 Article 229

Article 197, first paragraph (repealed) (

)

Article 197, second, third and fourth para

graphs

Article 230

Article 198 Article 231

Article 199 Article 232

Article 200 Article 233

Article 201 Article 234

Section 2 – The European Council

Article 235

Article 236

Section 2 – The Council Section 3 – The Council

Article 202 (repealed) (

)

Article 203 (repealed) (

)

Article 204 Article 237

Article 205, paragraphs 2 and 4 (repealed) (

)

Article 205, paragraphs 1 and 3 Article 238

Article 206 Article 239

Article 207 Article 240

Article 208 Article 241

Article 209 Article 242

Article 210 Article 243

Section 3 – The Commission Section 4 – The Commission

(

) Replaced, in substance, by Article 14, paragraph 4, TEU.

(

) Replaced, in substance, by Article 16, paragraph 1, TEU and by Articles 290 and 291 TFEU.

(

) Replaced, in substance, by Article 16, paragraphs 2 and 9 TEU.

(

) Replaced, in substance, by Article 16, paragraphs 4 and 5 TEU.

26.10.2012 Official Journal of the European Union C 326/383

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European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 211 (repealed) (

)

Article 244

Article 212 (moved) Article 249, paragraph 2

Article 213 Article 245

Article 214 (repealed) (

)

Article 215 Article 246

Article 216 Article 247

Article 217, paragraphs 1, 3 and 4

(repealed) (

)

Article 217, paragraph 2 Article 248

Article 218, paragraph 1 (repealed) (

)

Article 218, paragraph 2 Article 249

Article 219 Article 250

Section 4 – The Court of Justice Section 5 – The Court of Justice of the

European Union

Article 220 (repealed) (

)

Article 221, first paragraph (repealed) (

)

Article 221, second and third paragraphs Article 251

Article 222 Article 252

Article 223 Article 253

Article 224 (

) Article 254

Article 255

Article 225 Article 256

Article 225a Article 257

(

) Replaced, in substance, by Article 17, paragraph 1 TEU.

(

) Replaced, in substance, by Article 17, paragraphs 3 and 7 TEU.

(

) Replaced, in substance, by Article 17, paragraph 6, TEU.

(

) Replaced, in substance, by Article 295 TFEU.

(

) Replaced, in substance, by Article 19 TEU.

(

) Replaced, in substance, by Article 19, paragraph 2, first subparagraph, of the TEU.

(

) The first sentence of the first subparagraph is replaced, in substance, by Article 19, paragraph 2,

second subparagraph of the TEU.

C 326/384 Official Journal of the European Union 26.10.2012

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European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 226 Article 258

Article 227 Article 259

Article 228 Article 260

Article 229 Article 261

Article 229a Article 262

Article 230 Article 263

Article 231 Article 264

Article 232 Article 265

Article 233 Article 266

Article 234 Article 267

Article 235 Article 268

Article 269

Article 236 Article 270

Article 237 Article 271

Article 238 Article 272

Article 239 Article 273

Article 240 Article 274

Article 275

Article 276

Article 241 Article 277

Article 242 Article 278

Article 243 Article 279

Article 244 Article 280

Article 245 Article 281

Section 6 – The European Central Bank

Article 282

Article 112 (moved) Article 283

26.10.2012 Official Journal of the European Union C 326/385

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Functioning of the European Union

Article 113 (moved) Article 284

Section 5 – The Court of Auditors Section 7 – The Court of Auditors

Article 246 Article 285

Article 247 Article 286

Article 248 Article 287

Chapter 2 – Provisions common to several

institutions

Chapter 2 – Legal acts of the Union, adoption

procedures and other provisions

Section 1 – The legal acts of the Union

Article 249 Article 288

Article 289

Article 290 (

)

Article 291 (

)

Article 292

Section 2 – Procedures for the adoption of acts

and other provisions

Article 250 Article 293

Article 251 Article 294

Article 252 (repealed)

Article 295

Article 253 Article 296

Article 254 Article 297

Article 298

Article 255 (moved) Article 15

Article 256 Article 299

Chapter 3 – The Union's advisory bodies

Article 300

Chapter 3 – The Economic and Social

Committee

Section 1 – The Economic and Social

Committee

(

) Replaces, in substance, the third indent of Article 202 TEC.

C 326/386 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 257 (repealed) (

)

Article 258, first, second and fourth paragraphs Article 301

Article 258, third paragraph (repealed) (

)

Article 259 Article 302

Article 260 Article 303

Article 261 (repealed)

Article 262 Article 304

Chapter 4 – The Committee of the Regions Section 2 – The Committee of the Regions

Article 263, first and fifth paragraphs

(repealed) (

)

Article 263, second to fourth paragraphs Article 305

Article 264 Article 306

Article 265 Article 307

Chapter 5 – The European Investment Bank Chapter 4 – The European Investment Bank

Article 266 Article 308

Article 267 Article 309

Title II – Financial provisions Title II – Financial provisions

Article 268 Article 310

Chapter 1 – The Union's own resources

Article 269 Article 311

Article 270 (repealed) (

)

Chapter 2 – The multiannual financial

framework

Article 312

Chapter 3 – The Union's annual budget

(

) Replaced, in substance, by Article 300, paragraph 2 of the TFEU.

(

) Replaced, in substance, by Article 300, paragraph 4 of the TFEU.

(

) Replaced, in substance, by Article 300, paragraphs 3 and 4, TFEU.

(

) Replaced, in substance, by Article 310, paragraph 4, TFEU.

26.10.2012 Official Journal of the European Union C 326/387

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 272, paragraph 1 (moved) Article 313

Article 271 (moved) Article 316

Article 272, paragraph 1 (moved) Article 313

Article 272, paragraphs 2 to 10 Article 314

Article 273 Article 315

Article 271 (moved) Article 316

Chapter 4 – Implementation of the budget and

discharge

Article 274 Article 317

Article 275 Article 318

Article 276 Article 319

Chapter 5 – Common provisions

Article 277 Article 320

Article 278 Article 321

Article 279 Article 322

Article 323

Article 324

Chapter 6 – Combating fraud

Article 280 Article 325

Title III – Enhanced cooperation

Articles 11 and 11a (replaced) Article 326 (

)

Articles 11 and 11a (replaced) Article 327 (

)

Articles 11 and 11a (replaced) Article 328 (

)

Articles 11 and 11a (replaced) Article 329 (

)

Articles 11 and 11a (replaced) Article 330 (

)

Articles 11 and 11a (replaced) Article 331 (

)

Articles 11 and 11a (replaced) Article 332 (

)

(

) Also replaces the current Articles 27a to 27e, 40 to 40b, and 43 to 45 TEU.

C 326/388 Official Journal of the European Union 26.10.2012

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Articles 11 and 11a (replaced) Article 333 (

)

Articles 11 and 11a (replaced) Article 334 (

)

PART SIX – GENERAL AND FINAL

PROVISIONS

PART SEVEN – GENERAL AND FINAL

PROVISIONS

Article 281 (repealed) (

)

Article 282 Article 335

Article 283 Article 336

Article 284 Article 337

Article 285 Article 338

Article 286 (replaced) Article 16

Article 287 Article 339

Article 288 Article 340

Article 289 Article 341

Article 290 Article 342

Article 291 Article 343

Article 292 Article 344

Article 293 (repealed)

Article 294 (moved) Article 55

Article 295 Article 345

Article 296 Article 346

Article 297 Article 347

Article 298 Article 348

Article 299, paragraph 1 (repealed) (

)

Article 299, paragraph 2, second, third and

fourth subparagraphs

Article 349

Article 299, paragraph 2, first subparagraph,

and paragraphs 3 to 6 (moved)

Article 355

(

) Also replaces the current Articles 27a to 27e, 40 to 40b, and 43 to 45 TEU.

(

) Replaced, in substance, by Article 47 TEU.

(

) Replaced, in substance by Article 52 TEU.

26.10.2012 Official Journal of the European Union C 326/389

Old numbering of the Treaty establishing the

European Community

New numbering of the Treaty on the

Functioning of the European Union

Article 300 (replaced) Article 218

Article 301 (replaced) Article 215

Article 302 (replaced) Article 220

Article 303 (replaced) Article 220

Article 304 (replaced) Article 220

Article 305 (repealed)

Article 306 Article 350

Article 307 Article 351

Article 308 Article 352

Article 353

Article 309 Article 354

Article 310 (moved) Article 217

Article 311 (repealed) (

)

Article 299, paragraph 2, first subparagraph, and

paragraphs 3 to 6 (moved)

Article 355

Article 312 Article 356

Final Provisions

Article 313 Article 357

Article 358

Article 314 (repealed) (

)

(

) Replaced, in substance by Article 51 TEU.

(

) Replaced, in substance by Article 55 TEU.

C 326/390 Official Journal of the European Union 26.10.2012