From: hellmond@phoenix.Princeton.EDU (Peter H. Hellmonds)
Subject: Maastricht Treaty Text complete (Part 5)
Summary: Part 5: Title 2 (3)
Originator: news@ernie.Princeton.EDU
Organization: Princeton University
Date: Wed, 22 Jul 1992 01:26:22 GMT


=== MAASTRICHT TREATY TEXT -- PART 5: TITLE 2 (3) ===
	(continutation and conclusion of Title 2)

50) Article 168a shall be replaced by the following:
"ARTICLE 168a
1. The Court of First Instance shall be attached to the Court of Justice with 
jurisdiction to hear and determine at first instance, subject to a right of 
appeal to the Court of Justice on points of law only and in accordance with 
the conditions laid down by Statute, certain classes of action or proceeding 
defined in accordance with the conditions laid down in paragraph 2. The Court 
of First Instance shall not be competent to hear and determine questions 
referred for a preliminary ruling under Article 177.
2. At the request of the Court of Justice and after consulting the European 
Parliament and the Commission, the Council, acting unanimously, shall 
determine the classes of action or proceeding referred to in paragraph 1 and 
the composition of the Court of First Instance and shall adopt the necessary 
adjustments and additional provisions to the Statute of the the Court of 
Justice. Unless the Council decides otherwise, the provisions of this Treaty 
relating to the Court of Justice, in particular the provisions of the Protocol 
on the Statute of the Court of Justice, shall apply to the Court of First 
Instance.
3. The members of the Court of First Instance shall be chosen from persons 
whose independence is beyond doubt and who possess the ability required for 
appointment to judicial office; they shall be appointed by common accord of 
the governments of the Member States for a term of six years. The membership 
shall be partially renewed every three years. Retiring members shall be 
eligible for re-appointment.
4. The Court of First Instance shall establish its rules of procedure in 
agreement with the Court of Justice. Those rules shall require the unanimous 
approval of the Council."

51) Article 171 shall be replaced by the following:
"ARTICLE 171
1. If the Court of Justice finds that a Member State has failed to fulfil an 
obligation under this Treaty, the State shall be required to take the 
necessary measures to comply with the judgment of the Court of Justice.
2. If the Commission considers that the Member State concerned has not taken 
such measures it shall, after giving that State the opportunity to submit its 
observations, issue a reasoned opinion specifying the points on which the 
Member State concerned has not complied with the judgment of the Court of 
Justice.
If the Member State concerned fails to take the necessary measures to comply 
with the Court's judgment within the time-limit laid down by the Commission, 
the latter may bring the case before the Court of Justice. In so doing it 
shall specify the amount of lump sum or penalty payment to be paid by the 
Member State concerned which it considers appropriate in the circumstances.
If the Court of Justice finds that the Member State concerned has not complied 
with its judgment it may impose a lump sum or penalty payment on it.
This procedure shall be without prejudice to Article 170."

52) Article 172 shall be replaced by the following:
"ARTICLE 172
Regulations adopted jointly by the European Parliament and the Council, and by 
the Council, pursuant to the provisions of this Treaty, may give the Court of 
Justice unlimited jurisdiction with regard to the penalties provided for in 
such regulations."

53) Article 173 shall be replaced by the following:
"ARTICLE 173
The Court of Justice shall review the legality of acts adopted jointly by the 
European Parliament and the Council, of acts of the Council, of the Commission 
and of the ECB, other than recommendations and opinions, and of acts of the 
European Parliament intended to produce legal effects vis-a-vis third parties.
It shall for this purpose have jurisdiction in actions brought by a Member 
State, the Council or the Commission on grounds of lack of competence, 
infringement of an essential procedural requirement, infringement of this 
Treaty or of any rule of law relating to its application, or misuse of powers.
The Court shall have jurisdiction under the same conditions, in actions 
brought by the European Parliament and by the ECB for the purpose of 
protecting their prerogatives.
Any natural or legal person may, under the same conditions, institute 
proceedings against a decision addressed to that person or against a decision 
which, although in the form of a regulation or a decision addressed to another 
person, is of direct and individual concern to the former.
The proceedings provided for in this Article shall be instituted within two 
months of the publication of the measure, or of its notification to the 
plaintiff, or, in the absence thereof, of the day on which it came to the 
knowledge of the latter, as the case may be."

54) Article 175 shall be replaced by the following:
"ARTICLE 175
Should the European Parliament, the Council or the Commission, in infringement 
of this Treaty, fail to act, The Member States and the other institutions of 
the Community may bring an action before the Court of Justice to have the 
infringement established.
The action shall be admissible only if the institution concerned has first 
been called upon to act. If, within two months of being so called upon, the 
institution concerned has not defined its position, the action may be brought 
within a further period of two months.
Any natural or legal person may, under the conditions laid down in the 
preceding paragraphs, complain to the Court of Justice that an institution of 
the Community has failed to address to that person any act other than a 
recommendation or an opinion.
The Court of Justice shall have jurisdiction, under the same conditions, in 
actions or proceedings brought by the ECB in the areas falling within the 
latter's field of competence and in actions or proceedings brought against the 
latter."

55) Article 176 shall be replaced by the following:
"ARTICLE 176
The institution or institutions whose act has been declared void or whose 
failure to act has been declared contrary to this Treaty shall be required to 
take the necessary measures to comply with the judgment of the Court of 
Justice.
This obligation shall not affect any obligation which may result from the 
application of the second paragraph of Article 215.
This Article shall also apply to the ECB."

56) Article 177 shall be replaced by the following:
"ARTICLE 177
The Court of Justice shall have jurisdiction to give preliminary rulings 
concerning:
(a) the interpretation of the Treaty;
(b) the validity and interpretation of acts of the institutions of the 
Community and of the ECB;
(c) the interpretation of the statutes of bodies established by an act of the 
Council, where those statutes so provide.
Where such a question is raised before any court or tribunal of a Member 
State, that Court of tribunal may, if it considers that a decision on the 
question is necessary to enable it to give judgment, request the Court of 
Justice to give a ruling thereon.
Where any such question is raised in a case pending before a court or tribunal 
of a Member State against whose decisions there is no judicial remedy under 
national law, the court or tribunal shall bring the matter before the Court of 
Justice."

57) Article 180 shall be replaced by the following:
"ARTICLE 180
The Court of Justice shall, within the limits hereinafter laid down, have 
jurisdiction in disputes concerning:
(a) the fulfillment by Member States of obligations under the Statute of the 
European Investment Bank. In this connection, the Board of Directors of the 
Bank shall enjoy the powers conferred upon the Commission by Article 169;
(b) measures adopted by the Board of Governors of the European Investment 
Bank. In this connection, any Member State, the Commission of the Board of 
Directors of the Bank may institute proceedings under the conditions laid down 
in Article 173;
(c) measures adopted by the Board of Directors of the European Investment 
Bank. Proceedings against such measures may be instituted only by Member 
States or by the Commission, under the conditions laid down in Article 173, 
and solely on the grounds of non-compliance with the procedure provided for in 
Article 21(2), (5), (6) and (7) of the Statute of the Bank;
(d) the fulfillment by the national central banks of obligations under this 
Treaty and the Statute of the ESCB. In this connection the powers of the 
Council of the ECB in respect of national central banks shall be the same as 
those conferred upon the commission in respect of Member States by Article 
169. If the Court of Justice finds that a national central bank has failed to 
fulfill an obligation under this Treaty, that bank shall be required to take 
the necessary measures to comply with the judgment of the Court of Justice."

58) Article 184 shall be replaced by the following:
"ARTICLE 184
Notwithstanding the expiry of the period laid down in the fifth paragraph of 
Article 173, any party may, in proceedings in which a regulation adopted 
jointly by the European Parliament and the Council, or a regulation of the 
Council, of the Commission, or of the ECB is at issue, plead the grounds 
specified in the second paragraph of Article 173 in order to invoke before the 
Court of Justice the inapplicability of that regulation."

59) The following section shall be inserted:
"SECTION 5
THE COURT OF AUDITORS
ARTICLE 188a
The Court of Auditors shall carry out the audit.
ARTICLE 188b
1. The Court of Auditors shall consist of twelve members.
2. The members of the Court of Auditors shall be chosen from among persons who 
belong or have belonged in their respective countries to external audit bodies 
or who are especially qualified for this office. Their independence must be 
beyond doubt.
3. The members of the Court of Auditors shall be appointed for a term of six 
years by the Council, acting unanimously after consulting the European 
Parliament.
However, when the first appointments are made, four members of the Court of 
Auditors, chosen by lot, shall be appointed for a term of office of four years 
only.
The members of the Court of Auditors shall be eligible for reappointment.
They shall elect the President of the Court of Auditors from among their 
number for a term of three years. The President may be re-elected.
4. The members of the Court of Auditors shall, in the general interest of the 
Community, be completely independent in the performance of their duties.
In the performance of these duties, they shall neither seek nor take 
instructions from any government or from any other body. They shall refrain 
from any action incompatible with their duties.
5. 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.
6. Apart from normal replacement, or death, the duties of a member of the 
Court of Auditors shall end when he resigns, or is compulsorily retired by a 
ruling of the Court of Justice pursuant to paragraph 7.
The vacancy thus caused shall be filled for the remainder of the member's term 
of office.
Save in the case of compulsory retirement, members of the Court of Auditors 
shall remain in office until they have been replaced.
7. 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 
fulfills the requisite conditions or meets the obligations arising from his 
office.
8. The Council, acting by a qualified majority, shall determine the conditions 
of employment of the President and the members of the Court of Auditors and in 
particular their salaries, allowances and pensions. It shall also, by the same 
majority, determine any payment to be made instead of remuneration.
9. The provisions of the Protocol on the Privileges and Immunities of the 
European Communities applicable to the Judges of the Court of Justice shall 
also apply to the members of the Court of Auditors.
ARTICLE 188c
1. The Court of Auditors shall examine the accounts of all revenue and 
expenditure of the Community. It shall also examine the accounts of all 
revenue and expenditure of all bodies set up by the Community in so far as the 
relevant constituent instrument does not preclude such examination.
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.
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 arrangement has been sound.
The audit of revenue shall be carried out on the basis both of the amounts 
established as due and the amounts actually paid to the Community.
The audit of expenditure shall be carried out on the basis both of commitments 
undertaken and payments made.
These audits may be carried out before the closure of accounts for the 
financial year in question.
3. The audit shall be based on records and, if necessary, performed on the 
spot in other institutions of the Community and Member States. In the Member 
States the audit shall be carried out in liaison with the national audit 
bodies or, if these do not have the necessary powers, with the competent 
national departments. These bodies or departments shall inform the Court of 
Auditors whether they intend to take part in the audit.
The other institutions of the Community and the national audit bodies or, if 
these do not have the necessary powers, the competent national departments, 
shall forward to the Court of Auditors, at its request, any document or 
information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close of 
each financial year. It shall be forwarded to the other institutions of the 
Community and shall be published, together with the replies of these 
institutions to the observations of the Court of Auditors, in the Official 
Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations, particularly 
in the form of special reports, on specific questions and deliver opinions at 
the request of one of the other institutions of the Community.
It shall adopt its annual reports, special reports or opinions by a majority 
of its members.
It shall assist the European Parliament and the Council in exercising their 
powers of control over the implementation of the budget."

60) Article 189 shall be replace by the following:
"ARTICLE 189
In order to carry out their task and in accordance with the provisions of the 
Treaty, the European Parliament acting jointly with the Council, the Council 
and the Commission shall make regulations and issue directives, take decision, 
make recommendations or deliver opinions.
A regulation shall have general application. It shall be binding in its 
entirety and directly applicable in all Member States.
A directive shall be binding, as to the result to be achieved, upon each 
Member State to which it is addressed, but shall leave to the national 
authorities the choice of form and methods.
A decision shall be binding in its entirety upon those to whom it is 
addressed.
Recommendations and opinions shall have no binding force."

61) The following Articles shall be inserted:
"ARTICLE 189a
1. Where, in pursuance of the Treaty, the Council acts on a proposal from the 
Commission, unanimity shall be required for an act constituting an amendment 
to that proposal, subject to Article 189b(4) and (5).
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 Community act.
ARTICLE 189b
1. Where reference is made in the Treaty to this Article for the adoption of 
an act, the following procedures shall apply.
2. The Commission shall submit a proposal to the European Parliament and the 
Council.
The Council, acting by a qualified majority after obtaining the opinion of the 
European Parliament, shall adopt a common position. The common position shall 
be communicated to the European Parliament. The Council shall inform the 
European Parliament fully of the reasons which led it to adopt its common 
position. The Commission shall inform the European Parliament fully of its 
position.
If, within three months of such communication, the European Parliament:
(a) approves the common position, the Council shall definitively adopt the act 
in question in accordance with that common position;
(b) has not taken a decision, the Council shall adopt the act in question in 
accordance with its common position;
(c) indicates, by an absolute majority of its component members, that it 
intends to reject the common position, it shall immediately inform the 
Council. The Council may convene a meeting of the Conciliation Committee 
referred to in paragraph 4 to explain further its position. The European 
parliament shall thereafter either confirm, by an absolute majority of its 
component members, its rejection of the common position, in which event the 
proposed act shall be deemed not to have been adopted, or propose amendments 
in accordance with subparagraph (d) of this paragraph;
(d) proposes amendments to the common position by an absolute majority of its 
component members, the amended text shall be forwarded to the Council and to 
the Commission which shall deliver an opinion on those amendments.
3. If, within three months of the matter being referred to it, the Council 
action by a qualified majority, approves all the amendments of the European 
parliament, it shall amend its common position accordingly and adopt the act 
in question; however, the Council shall act unanimously on the amendments on 
which the Commission has delivered a negative opinion. If the Council does not 
approve the act in question, the President of the Council, in agreement with 
the President of the European Parliament, shall forthwith convene a meeting of 
the Conciliation Committee.
4. The Conciliation Committee, which shall be composed of the members of the 
Council or their representatives and an equal number of representative of the 
European Parliament, shall have the task of reaching agreement on a joint 
text, by a qualified majority of the members of the Council or their 
representatives and by a majority of the representatives of the European 
Parliament. The Commission shall take part in the Conciliation Committee's 
proceedings and shall take all the necessary initiatives with a view to 
reconciling the positions of the European Parliament and the Council.
5. If within six weeks of its being convened, the Conciliation Committee 
approves a joint text, the European Parliament, acting by an absolute majority 
of the votes cast, and the Council, acting by a qualified majority, shall have 
a period of six weeks from that approval in which to adopt the act in question 
in accordance with the joint text. If one of the two institutions fails to 
approve the proposed act, it shall be deemed not to have been adopted.
6. Where the Conciliation Committee does not approve a joint text, the 
proposed act shall be deemed not to have been adopted unless the Council, 
acting by a qualified majority within six weeks of expiry of the period 
granted to the Conciliation Committee, confirms the common position to which 
it agreed before the conciliation procedure was initiated, possibly with the 
amendments proposed by the European Parliament. In this case, the act in 
question shall be finally adopted unless the European parliament, within six 
weeks of the date of confirmation by the Council, rejects the text by an 
absolute majority of its component members, in which case the proposed act 
shall be deemed not to have been adopted.
7. The periods of three months and six weeks referred to in this Article may 
be extended by a maximum of one month and two weeks respectively by common 
accord of the European Parliament and the Council. The period of three months 
referred to in paragraph 2 shall be automatically extended by two months where 
paragraph 2(c) applies.
8. The scope of the procedure under this Article may be widened, in accordance 
with the procedure provided for in Article N(2) of the Treaty on European 
Union, on the basis of a report to be submitted to the Council by the 
Commission by 1996 at the latest.
ARTICLE 189c
Where reference is made in this Treaty to this Article for the adoption of an 
act, the following procedure shall apply:
(a) The Council, acting by a qualified majority on a proposal from the 
Commission and after obtaining the opinion of the European Parliament, shall 
adopt a common position.
(b) The Council's common position shall be communicated to the European 
Parliament. The Council and the Commission shall inform the European 
Parliament fully of the reasons which led the Council to adopt its common 
position and also of the Commission's position.
If, within three months of such communication, the European Parliament 
approves this common position or has not taken a decision within that period, 
the Council shall definitively adopt the act in question in accordance with 
the common position.
(c) The European Parliament may, within the period of three months referred to 
in point (b), by an absolute majority of its component members, propose 
amendments to the Council's common position. The European Parliament may also, 
by the same majority, reject the Council's common position. The result of the 
proceedings shall be transmitted to the Council and the Commission.
If the European Parliament has rejected the Council's common position, 
unanimity shall be required for the Council to act on a second reading.
(d) The Commission shall, within a period of one month, re-examine the 
proposal on the basis of which the Council adopted its common position, by 
taking into account the amendments proposed by the European Parliament.
The Commission shall forward to the Council, at the same time as its re-
examined proposal, the amendments of the European Parliament which it has not 
accepted, and shall express its opinion on them. The Council may adopt these 
amendments unanimously.
(e) The Council, acting by a qualified majority, shall adopt the proposal as 
re-examined by the Commission.
Unanimity shall be required for the Council to amend the proposal as re-
examined by the Commission.
(f) In the cases referred to in points (c),(d) and (e), the Council shall be 
required to act within a period of three months. If no decision is taken 
within this period, the commission proposal shall be deemed not to have been 
adopted.
(g) The periods referred to in points (b) and (f) may be extended by a maximum 
of one month by common accord between the Council and the European 
Parliament."

62) Article 190 shall be replaced by the following:
"ARTICLE 190
Regulations, directives and decisions adopted jointly by the European 
Parliament and the Council, and such acts adopted by the Council or the 
Commission, shall state the reasons on which they are based and shall refer to 
any proposals or opinions which were required to be obtained pursuant to this 
Treaty."

63) Article 191 shall be replaced by the following:
"ARTICLE 191
1. Regulations, directives and decisions adopted in accordance with the 
procedures referred to in Article 189b shall be signed by the President of the 
European Parliament and by the President of the Council and published in the 
Official Journal of the Community. 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. Regulations of the Council and of the Commission, as well as directives of 
those institutions which are address to all Member States, shall be published 
in the Official Journal of the Community. They shall enter into force on the 
date specified in them or, in the absence thereof, on the twentieth day 
following that of their publication.
3. Other directives, and decisions, shall be notified to those whom they are 
address and shall take effect upon such notification."

64) Article 194 shall be replaced by the following:
"ARTICLE 194
The number of members of the Economic and Social Committee shall be as 
follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24
The members of the Committee shall be appointed by the Council, acting 
unanimously, for four years. Their appointments shall be renewable.
The members of the Committee may not be bound by any mandatory instructions. 
They shall be completely independent in the performance of their duties, in 
the general interest of the Community.
The Council, acting by a qualified majority, shall determine the allowances of 
members of the Committee."

65) Article 196 shall be replaced by the following:
"ARTICLE 196
The Committee shall elect its chairman and officers from among its members for 
a term of two years.
It shall adopt its rules of procedure.
The Committee shall be convened by its chairman at the request of the Council 
or of the Commission. It may also meet on its own initiative."

66) Article 198 shall be replaced by the following:
"ARTICLE 198
The Committee must be consulted by the Council of the Commission where this 
Treaty so provides. The Committee may be consulted by these institutions in 
all cases in which they consider it appropriate. It may issue an opinion on 
its own initiative in cases in which it considers such action appropriate.
The Council or the Commission shall, if it considers it necessary, set the 
Committee, for the submission of its opinion, a time limit which may not be 
less than one month from the date on which the chairman receives notification 
to this effect. Upon expiry of the time limit, the absence of an opinion shall 
not prevent further action.
The opinion of the Committee and that of the specialized section, together 
with a record of the proceedings, shall be forwarded to the Council and to the 
Commission.

67) The following Chapter shall be inserted:
"CHAPTER 4
THE COMMITTEE OF THE REGIONS
ARTICLE 198a
A Committee consisting of representatives of regional and local bodies, 
hereinafter referred to as "the Committee of the Regions", is hereby 
established with advisory status.
The number of members of the Committee of the Regions shall be as follows:
Belgium 12
Denmark 9
Germany 24
Greece 12
Spain 21
France 24
Ireland 9
Italy 24
Luxembourg 6
Netherlands 12
Portugal 12
United Kingdom 24
The members of the Committee and an equal number of alternate members shall be 
appointed for four years by the Council acting unanimously on proposals from 
the respective Member States. Their term of office shall be renewable.
The members of the Committee may not be bound by any mandatory instructions. 
They shall be completely independent in the performance of their duties, in 
the general interest of the Community.
ARTICLE 198b
The Committee of the Regions shall elect its chairman and officers from among 
its members for a term of two years.
It shall adopt its rules of procedure and shall submit them for approval to 
the Council, acting unanimously.
The Committee shall be convened by its chairman at the request of the Council 
or of the Commission. It may also meet on its own initiative.
ARTICLE 198c
The Committee of the Regions shall be consulted by the Council or by the 
Commission where this Treaty so provides and in all other cases in which one 
of these two institutions considers it appropriate.
The Council of 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 198, 
the Committee of the Regions shall be informed by the Council of 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 Council and to the Commission."

68) The following chapter shall be inserted:
"CHAPTER 5
EUROPEAN INVESTMENT BANK
ARTICLE 198d
The European Investment Bank shall have legal personality.
The members of the European Investment Bank shall be the Member States.
The Statute of the European Investment Bank is laid down in a Protocol annexed 
to this Treaty.
ARTICLE 198e
The task of the European Investment Bank shall be to contribute, by having 
recourse to the capital market and utilizing its own resources, to the 
balanced and steady development of the common market in the interest of the 
Community. For this purpose the Bank shall, operating on a non-profit-making 
basis, grant loans and give guarantees which facilitate the financing of the 
following projects in all sectors of the economy:
(a) projects for developing less-developed regions;
(b) projects for modernizing or converting undertakings or for developing 
fresh activities called for by the progressive establishment of the common 
market, where these projects are of such a size or nature that they cannot be 
entirely financed by the various means available in the individual Member 
States;
(c) projects of common interest to several Member States which are of such a 
size or nature that they cannot be entirely financed by the various means 
available in the individual Member States.
In carrying out its task, the Bank shall facilitate the financing of 
investment programmes in conjunction with assistance from the structural Funds 
and other Community Financial instruments."

69) Article 199 shall be replaced by the following:
"ARTICLE 199
All items of revenue and expenditure of the Community, including those 
relating to the European Social Fund, shall be included in estimates to be 
drawn up for each financial year and shall be shown in the budget.
Administrative expenditure occasioned for the institutions by the provisions 
of the Treaty on European Union relating to common foreign and security policy 
and to cooperation in the fields of justice and home affairs shall be charged 
to the budget. The operational expenditure occasioned by the implementation of 
the said provisions may, under the conditions referred to therein, be charged 
to the budget.
The revenue and expenditure shown in the budget shall be in balance."

70) Article 200 shall be repealed.

71) Article 201 shall be replaced by the following:
"ARTICLE 201
Without prejudice to other revenue, the budget shall be financed wholly from 
own resources.
The Council, acting unanimously on a proposal from the Commission and after 
consulting the European Parliament, shall lay down provisions relating to the 
system of own resources of the Community, which it shall recommend to the 
Member States for adoption in accordance with their respective constitutional 
requirements."

72) The following Article shall be inserted:
"ARTICLE 201a
With a view to maintaining budgetary discipline, the Commission shall not make 
any proposal for a Community act, or alter its proposals, or adopt any 
implementing measure which is likely to have appreciable implications for the 
budget without providing the assurance that the proposal or that measure is 
capable of being financed within the limit of the Community's own resources 
arising under provisions laid down by the Council pursuant to Article 201."

73) Article 205 shall be replaced by the following;
"ARTICLE 205
The Commission shall implement the budget, in accordance with the provisions 
of the regulations made pursuant to Article 209, on its own responsibility and 
within the limits of the appropriations, having regard tot he principles of 
sound financial management.
The regulations shall lay down detailed rules for each institution concerning 
its part in effecting its own expenditure.
Within the budget, the Commission may, subject to the limits and conditions 
laid down in the regulations made pursuant to Article 209, transfer 
appropriations from one chapter to another or from one subdivision to 
another."

74) Article 206 shall be replaced by the following:
"ARTICLE 206
1. The European Parliament, acting on a recommendation from the Council which 
shall act by qualified majority, shall give a discharge to the Commission in 
respect of the implementation of the budget. To this end, the Council and the 
European Parliament in turn shall examine the accounts and the financial 
statement referred to in Article 205a, the annual report by the Court of 
Auditors together with the replies of the institutions under audit to the 
observations of the Court of Auditors and any relevant special reports by the 
Court of Auditors.
2 Before giving a discharge to the Commission, or for any other purpose in 
connection with the exercise of its power 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 Commissions 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."

75) Articles 206a and 206b shall be repealed.

76) Article 209 shall be replaced by the following:
"ARTICLE 209
The Council, acting unanimously on a proposal from the Commission and after 
consulting the European Parliament and obtaining the opinion of the Court of 
Auditors, shall:
(a) make Financial Regulations specifying in particular the procedure to be 
adopted for establishing and implementing the budget and for presenting and 
auditing accounts;
(b) determine the methods and procedure whereby the budget revenue provided 
under the arrangements relating to the Community's own resources shall be made 
available to the Commission, and determine the measures to be applied, if need 
be, to meet cash requirements;
(c) lay down rules concerning the responsibility of financial controllers, 
authorizing officers and accounting officers, and concerning appropriate 
arrangements for inspection."

77) The following article shall be inserted:
"ARTICLE 209a
Member States shall take the same measures to counter fraud affecting the 
financial interests of the Community as they take to counter fraud affecting 
their own financial interests.
Without prejudice to the other provisions of the Treaty, Member States shall 
coordinate their action aimed at protecting the financial interests of the 
Community against fraud. To this end they shall organize, with the help of the 
Commission, close and regular cooperation between the competent departments of 
their administrations."

78) Article 215 shall be replaced by the following:
"ARTICLE 215
The contractual liability of the Community shall be governed by the law 
applicable to the contract in question.
In the case of non-contractual liability, the Community shall, in accordance 
with the general principles common to the law of the Member States, make good 
any damage caused by its institutions or by its servants in the performance of 
their duties.
The preceding paragraph shall apply under the same conditions to damage caused 
by the ECB or by its servants in the performance of their duties.
The personal liability of its servants towards the Community shall be governed 
by the provisions laid down in their Staff Regulations or in the Conditions of 
Employment applicable to them."

79) Article 227 shall be amended as follows:
(a) paragraph 2 shall be replaced by the following:
"2. With regard to the French overseas departments, the general and particular 
provisions of this Treaty relating to:
- the free movement of goods;
- agriculture, save for Article 40 (4);
- the liberalization of services
- the rules on competition;
- the protective measures provided for in Articles 109h, 109i and 226;
- the institutions,
shall apply as soon as this Treaty enters into force.
The conditions under which the other provisions of this Treaty are to apply 
shall be determined, within two years of entry into force of this Treaty, by 
decisions of the Council, acting unanimously on a proposal from the 
Commission.
The institutions of the Community will, within the framework of the procedures 
provided for in this Treaty, in particular Article  226, take care that the 
economic and social developments of these areas is made possible."
(b) in paragraph 5, subparagraph (a) shall be replaced by the following:
"(a) this Treaty shall not apply to the Faroe Islands."

80) Article 228 shall be replaced by the following:
"ARTICLE 228
1. Where this Treaty provides for the conclusion of agreements between the 
Community and one or more States or international organizations, the 
Commission shall make recommendations to the Council, which shall authorize 
the Commission to open the necessary negotiations. The Commission shall 
conduct these negotiations in consultation with special committees appointed 
by the Council to assist it in this task and within the framework of such 
directives as the Council may issue to it.
In exercising the powers conferred upon it by this paragraph, the Council 
shall act by a qualified majority, except in the cases provided for in the 
second sentence of paragraph 2, for which it shall act unanimously.
2. Subject to the powers vested in the Commission in this field, the 
agreements shall be concluded by the Council, acting by a qualified majority 
on a proposal from the Commission. The Council shall act unanimously when the 
agreement covers a field for which unanimity is required for the adoption of 
internal rules, and for the agreements referred to in Article 238.
3. The Council shall conclude agreements after consulting the European 
Parliament, except for the agreements referred to in Article 113(3), including 
cases where the agreement covers a field for which the procedure referred to 
in Article 189b or that referred to in Article 189c is required for the 
adoption of internal rules. The European Parliament shall deliver its opinion 
within a time limit which the Council may lay down according to the urgency of 
the matter. In the absence of an opinion within that time limit, the Council 
may act.
By way of derogation from the previous subparagraph, agreements referred to in 
Article 238, other agreements establishing a specific institutional framework 
by organizing cooperation procedures, agreements having important budgetary 
implications for the Community and agreements entailing amendment of an act 
adopted under the procedure referred to in Article 189b shall be concluded 
after the assent of the European Parliament has been obtained.
The Council and the European Parliament may, in an urgent situation, agree 
upon a time limit for the assent.
4. When concluding an agreement , the Council may, by way of derogation from 
paragraph 2, authorize the Commission to approve modifications on behalf of 
the Community where the agreement provides for them to be adopted by a 
simplified procedure or by a body set up by the agreement; it may attach 
specific conditions to such authorization.
5. When the Council envisages concluding an agreement which calls for 
amendments to the Treaty, the amendments must first be adopted in accordance 
with the procedure laid down in Article N of the Treaty on European Union.
6. The Council, the Commission or a Member State may obtain the opinion of the 
Court of Justice as to whether an agreement envisaged is compatible with the 
provisions of this Treaty. Where the opinion of the Court of Justice is 
adverse, the agreement may enter into force only in accordance with Article N 
of the Treaty on European Union.
7. Agreements concluded under the conditions set out in this Article shall be 
binding on the institutions of the Community and on Member States."

81) The following Article shall be inserted:
"ARTICLE 228a
Where it is provided, in a common position or in a joint action adopted 
according to the provisions of the Treaty on European Union relating to the 
common foreign and security policy, for an action by the Community to 
interrupt or to reduce, in part or completely, economic relations with one or 
more third countries, the Council shall take the necessary urgent measures. 
The Council shall act by a qualified majority on a proposal from the 
Commission."

82) Article 231 shall be replaced by the following:
"ARTICLE 231
The Community shall establish close cooperation with the Organization for 
Economic Cooperation and Development, the details of which shall be determined 
by common accord."

83) Article 236 and 237 shall be repealed.

84) Article 328 shall be replaced by the following:
"ARTICLE 238
The Community may conclude with one or more states or international 
organizations agreements establishing an association involving reciprocal 
rights and obligations, common action and special procedures."
F. In Annex III:

85) The title shall be replaced by the following:
"List of invisible transactions referred to in Article 73h of this Treaty".
G. In the Protocol on the Statue of the European Investment Bank:
86) The reference to Articles 129 and 130 shall be replaced by a reference to 
Articles 198b and 198e.


-- 
Peter H. Hellmonds - Princeton University - Princeton, NJ, 08544, USA 
Tel (609) 683-4893 (home) - (609) 258-4804 (off) - Fax (609) 258-2809 
Internet: hellmond@phoenix.Princeton.EDU ------ BITNET: hellmond@PUCC 
"If you think education is expensive, try ignorance".   --  Derek Bok 
Newsgroups: soc.culture.europe