Article 2

The Treaty establishing the European Community shall be amended in accordance with the provisions of this Article.

1) The title of the Treaty shall be replaced by "Treaty on the Functioning of the European Union".

A. HORIZONTAL AMENDMENTS

2) Throughout the Treaty:

(a) the words "Community" and "European Community" shall be replaced by "Union" and any necessary grammatical changes shall be made, the words "European Communities" shall be replaced by "European Union", except in paragraph 6(c) of Article 299, renumbered paragraph 5(c) of Article 311a. In respect of Article 136, this amendment shall apply only to the mention of "The Community" at the beginning of the first paragraph;

(b) the words "this Treaty" and "the present Treaty" shall be replaced by "the Treaties", the verb, where applicable, shall be put in the plural and any necessary grammatical changes shall be made; this point shall not apply to the third paragraph of Article 182 and to Articles 312 and 313;

(c) the words "the Council [shall], acting in accordance with the procedure referred to in Article 251" shall be replaced by "the European Parliament and the Council [shall], acting in accordance with the ordinary legislative procedure", and the words "procedure referred to in Article 251" shall be replaced by "ordinary legislative procedure";

(d) the words "acting by a qualified majority" and "by a qualified majority" shall be deleted;

(e) the words "Council meeting in the composition of the Heads of State or Government" shall be replaced by "European Council";

(f) the words "institutions or bodies" and "institutions and bodies" shall be replaced by "institutions, bodies, offices or agencies", except in the first paragraph of Article 193;

(g) the words "common market" shall be replaced by "internal market";

(h) the word "ecu" shall be replaced by "euro";

(i) the words "Member States without a derogation" shall be replaced by "Member States whose currency is the euro";

(j) the abbreviation "ECB" shall be replaced by "European Central Bank";

(k) the words "Statute of the ESCB" shall be replaced by "Statute of the ESCB and of the ECB";

(l) The words "Committee provided for in Article 114" and "Committee referred to in Article 114" shall be replaced by "Economic and Financial Committee";

(m) the words "Statute of the Court of Justice" or "Statute of the Court" shall be replaced by "Statute of the Court of Justice of the European Union";

(n) the words "Court of First Instance" shall be replaced by "General Court";

(o) the words "judicial panel" and "judicial panels" shall be replaced by "specialised court" and "specialised courts" respectively and any necessary grammatical changes shall be made.

3) In the following Articles, the words "acting unanimously on a proposal from the Commission" shall be replaced by "acting unanimously in accordance with a special legislative procedure":

- Article 13, renumbered 16 E, first paragraph

- Article 19(1)

- Article 19(2)

- Article 22, second paragraph

- Article 93

- Article 94, renumbered 95

- Article 104(14), second subparagraph

- Article 175(2), first subparagraph

4) In the following Articles, the words "acting by a simple majority" shall be inserted after "the Council":

- Article 130, first paragraph

- Article 144, first paragraph

- Article 208

- Article 209

- Article 213, final paragraph, third sentence

- Article 216

- Article 284

5) In the following Articles, the words "consulting the European Parliament" shall be replaced by "obtaining the consent of the European Parliament":

- Article 13, renumbered 16 E, first paragraph

- Article 22, second paragraph

6) In the following Articles, the word "institution" or "institutions" shall be replaced by "institution, body, office or agency" or "institutions, bodies, offices or agencies", as appropriate, and any grammatical changes necessary shall be made:

- Article 195(1), second subparagraph

- Article 232, second paragraph

- Article 233, first paragraph:

- Article 234, point (b)

- Article 255(3) which shall become Article 16 A(3), third subparagraph

7) In the following Articles, the words "Court of Justice" shall be replaced by "Court of Justice of the European Union".

- Article 83(2)(d)

- Article 88(2), second subparagraph

- Article 95, renumbered 94(9)

- Article 195(1)

- Article 225a, sixth paragraph

- Article 226, second paragraph

- Article 227, first paragraph

- Article 228(1), first instance

- Article 229

- Article 229a

- Article 230, first paragraph

- Article 231, first paragraph

- Article 232, first and third paragraphs

- Article 233, first paragraph

- Article 234, first paragraph

- Article 235

- Article 236

- Article 237, introductory sentence

- Article 238

- Article 240

- Article 242, first sentence

- Article 243

- Article 244

- Article 247(9), renumbered (8)

- Article 256, second paragraph

In the following Articles, the words "of Justice" shall be deleted after "Court":

- Article 227, fourth paragraph

- Article 228(1), second instance and

- Article 228(2), second subparagraph

- Article 230, third paragraph

- Article 231, second paragraph

- Article 232, third paragraph

- Article 234, second and third paragraphs

- Article 237, point (d), third sentence

- Article 242, second sentence

- Article 256, fourth paragraph

8) In the following Articles, the reference to another Article of the Treaty shall be replaced by the following reference to an Article of the Treaty on European Union:

Article 21, third, now fourth, paragraph | reference to Article 9 (first reference) and to Article 53(1) (second reference) |

Article 97b | reference to Article 2 |

Article 98 | reference to Article 2 (first reference) |

Article 105(1), second sentence | reference to Article 2 |

Article 215, third, now fourth, paragraph | reference to Article 9 D(7), first subparagraph. |

9) (Does not apply to the English version.)

B. SPECIFIC AMENDMENTS

PREAMBLE

10) In the second recital, the word "countries" shall be replaced by "States" and in the last recital, the words "HAVE DECIDED to create a EUROPEAN COMMUNITY and to this end have designated" shall be replaced by "and to this end HAVE DESIGNATED".

COMMON PROVISIONS

11) Articles 1 and 2 shall be repealed. The following Article 1a shall be inserted:

"Article 1a

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".".

CATEGORIES AND AREAS OF COMPETENCE

12) The following new Title and new Articles 2 A to 2 E shall be inserted:

"TITLE I

CATEGORIES AND AREAS OF UNION COMPETENCE

Article 2 A

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.

Article 2 B

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;

(c) monetary policy for the Member States whose currency is the euro;

(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 insofar as its conclusion may affect common rules or alter their scope.

Article 2 C

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 2 B and 2 E.

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;

(c) economic, social and territorial cohesion;

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

(e) environment;

(f) consumer protection;

(g) transport;

(h) trans-European networks;

(i) energy;

(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 2 D

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 2 E

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;

(c) culture;

(d) tourism;

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

(f) civil protection;

(g) administrative cooperation.".

PROVISIONS HAVING GENERAL APPLICATION

13) The following title and Article 2 F shall be inserted:

"TITLE II

PROVISIONS HAVING GENERAL APPLICATION

Article 2 F

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.".

14) Paragraph 1 of Article 3 shall be repealed. Paragraph 2 shall be left unnumbered, and the words "the activities referred to in this Article," shall be replaced by "its activities,".

15) The text of Article 4 shall become Article 97b. It shall be amended as set out below in point 85.

16) Article 5 shall be repealed; it shall be replaced by Article 3b of the Treaty on European Union.

17) The following Article 5a shall be inserted:

"Article 5a

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.".

18) The following Article 5b shall be inserted:

"Article 5b

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.".

19) In Article 6, the words "referred to in Article 3" shall be deleted.

20) An Article 6a shall be inserted, with the wording of Article 153(2).

21) An Article 6b shall be inserted, with the wording of the enacting terms of the Protocol on the protection and welfare of animals; the word "fisheries" shall be inserted after "agriculture", the words "and research" shall be replaced by "research and technological development and space", and the words ", since animals are sentient beings," shall be inserted after "Member States shall".

22) Articles 7 to 10 shall be repealed. Articles 11 and 11a shall be replaced by Article 10 of the Treaty on European Union and by Articles 280 A and 280 I of the Treaty on the Functioning of the European Union, as set out in this Treaty in point 22 of Article 1 above and in point 278 below.

23) The text of Article 12 shall become Article 16 D.

24) The text of Article 13 shall become Article 16 E. It shall be amended as set out below at point 33.

25) The text of Article 14 shall become Article 22a. It shall be amended as set out below at point 41.

26) The text of Article 15 shall become Article 22b. It shall be amended as set out below at point 42.

27) Article 16 shall be amended as follows:

(a) at the beginning, the words "Without prejudice to Articles 73, 86 and 87," shall be replaced by "Without prejudice to Article 3a of the Treaty on European Union or to Articles 73, 86 and 87 of this Treaty,";

(b) at the end of the sentence, the words "and conditions which enable them to fulfil their missions" shall be replaced by "and conditions, particularly economic and financial conditions, which enable them to fulfil their missions.";

(c) the following new sentence shall be added:

"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.".

28) An Article 16 A shall be inserted, with the wording of Article 255; it shall be amended as follows:

(a) paragraph 1 shall be preceded by the following text, paragraph 1 being renumbered 3 and paragraphs 2 and 3 becoming subparagraphs:

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

(b) in paragraph 1, renumbered 3, which shall become the first subparagraph of paragraph 3, a change shall be made to the French which does not concern the English version. The words "European Parliament, Council and Commission documents" shall be replaced by "documents of the Union institutions, bodies, offices and agencies, whatever their medium" and the words "paragraphs 2 and 3" shall be replaced by the words "this paragraph";

(c) in paragraph 2, which shall become the second subparagraph of paragraph 1, renumbered 3, the words "by means of regulations" shall be inserted after "shall be determined by the Council" and the words "within two years of the entry into force of the Treaty of Amsterdam" shall be deleted;

(d) in paragraph 3, which shall become the third subparagraph of paragraph 1, renumbered 3, the words "referred to above shall elaborate" shall be replaced by "shall ensure that its proceedings are transparent and shall elaborate", the words ", in accordance with the regulations referred to in the second subparagraph" shall be inserted at the end of the subparagraph and the following two new subparagraphs shall be added:

"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 regulation referred to in the second subparagraph.".

29) An Article 16 B shall be inserted, replacing Article 286:

"Article 16 B

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 25a of the Treaty on European Union.".

30) The following new Article 16 C shall be inserted:

"Article 16 C

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.".

NON-DISCRIMINATION AND CITIZENSHIP

31) The heading of Part Two shall be replaced by the following heading: "NON-DISCRIMINATION AND CITIZENSHIP OF THE UNION".

32) An Article 16 D shall be inserted, with the wording of Article 12.

33) An Article 16 E shall be inserted, with the wording of Article 13; in paragraph 2, the words "when the Council adopts Community" shall be replaced by "the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may adopt the basic principles of the Union's" and the words at the end of the paragraph "it shall act in accordance with the procedure referred to in Article 251" shall be deleted.

34) Article 17 shall be amended as follows:

(a) in paragraph 1, the word "complement" shall be replaced by "be additional to";

(b) paragraph 2 shall be replaced by the following:

"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;

(c) the right to enjoy, in the territory of a third country in which the Member State of which they 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.".

35) Article 18 shall be amended as follows:

(a) in paragraph 2, the words "the Council may adopt" shall be replaced by "the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may adopt" and the last sentence shall be deleted;

(b) paragraph 3 shall be replaced by the following:

"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.".

36) In Article 20, the words "establish the necessary rules among themselves and" shall be replaced by "adopt the necessary provisions and". The following new paragraph shall be added:

"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.".

37) In Article 21, the following new first paragraph shall be inserted:

"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 8 B of the Treaty on European Union, including the minimum number of Member States from which such citizens must come.".

38) In Article 22, second paragraph, the words "the rights laid down in this Part, which it shall recommend to the Member States for adoption in accordance with their respective constitutional requirements" shall be replaced by "the rights listed in Article 17(2). These provisions shall enter into force after their approval by the Member States in accordance with their respective constitutional requirements.".

39) In the heading of Part Three, the words "AND INTERNAL ACTIONS" shall be inserted after "POLICIES".

INTERNAL MARKET

40) A Title I, with the heading "THE INTERNAL MARKET" shall be inserted at the beginning of Part Three.

41) An Article 22a shall be inserted, with the wording of Article 14. Paragraph 1 shall be replaced by the following:

"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.".

42) An Article 22b shall be inserted, with the wording of Article 15. In the first paragraph, the words "during the period of establishment" shall be replaced by "for the establishment".

43) Title I on the free movement of goods shall become Title Ia.

44) In Article 23(1), the words "shall be based upon" shall be replaced by "shall comprise".

45) A Chapter Ia entitled "CUSTOMS COOPERATION" shall be inserted after Article 27, and an Article 27a shall be inserted with the wording of Article 135, the last sentence of that Article being deleted.

AGRICULTURE AND FISHERIES

46) In the heading of Title II, the words "AND FISHERIES" shall be added.

47) Article 32 shall be amended as follows:

(a) in paragraph 1, the following new first subparagraph shall be inserted:

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

, the current text of paragraph 1 shall become the second subparagraph.

In the second subparagraph, the word ", fisheries" shall be inserted after "agriculture" in the first sentence and the following sentence shall be added as the last sentence of the subparagraph: "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."

(b) in paragraph 2, the words "and functioning" shall be inserted after the word "establishment".

(c) in paragraph 3, the words "to this Treaty" shall be deleted.

48) Article 36 shall be amended as follows:

(a) in the first paragraph, the words "the European Parliament and" shall be inserted before "the Council" and the words "and (3)" shall be deleted;

(b) in the second paragraph, the introductory sentence shall be replaced by the following: "The Council, on a proposal from the Commission, may authorise the granting of aid:".

49) Article 37 shall be amended as follows:

(a) paragraph 1 shall be deleted;

(b) paragraph 2 shall be renumbered 1; the words "Having taken into account the work of the Conference provided for in paragraph 1, after consulting the Economic and Social Committee and within two years of the entry into force of the Treaty, the Commission shall submit proposals" shall be replaced by "The Commission shall submit proposals", and the third subparagraph shall be deleted;

(c) the following paragraphs shall be inserted as new paragraphs 2 and 3, and the remaining paragraphs shall be renumbered accordingly:

"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 34(1) and the other provisions necessary for the pursuit of the objectives of the common agricultural policy and the common fisheries policy;

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.";

(d) in the introductory words to paragraph 3 renumbered 4, the words "The Council may, acting by a qualified majority and in accordance with paragraph 2, replace the national market organisations by the common organisation" shall be replaced by "In accordance with paragraph 2, the national market organisations may be replaced by the common organisation";

(e) at the beginning of paragraph 4 renumbered 5, a change shall be made to the French which does not concern the English version.

FREE MOVEMENT OF WORKERS

50) In Article 39(3)(d), the word "implementing" shall be deleted.

51) Article 42 shall be amended as follows:

(a) in the first paragraph, the words "migrant workers and their dependants:" shall be replaced by "employed and self-employed migrant workers and their dependants:";

(b) the last paragraph shall be replaced by the following:

"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 legislative 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.".

FREEDOM OF ESTABLISHMENT

52) In Article 44(2), the words "The European Parliament," shall be inserted at the beginning of the paragraph.

53) In Article 45, second paragraph, the words "The Council may, acting by a qualified majority on a proposal from the Commission," shall be replaced by "The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may".

54) Article 47 shall be amended as follows:

(a) the following phrase shall be added at the end of paragraph 1: "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.";

(b) paragraph 2 shall be deleted and paragraph 3 shall be renumbered 2; a change shall be made to the French which does not concern the English version.

55) An Article 48a shall be inserted, with the wording of Article 294.

SERVICES

56) Article 49 shall be amended as follows:

(a) in the first paragraph, the words "State of the Community" shall be replaced by "Member State";

(b) in the second paragraph, the words "The Council may, acting by a qualified majority on a proposal from the Commission, extend" shall be replaced by "The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may extend".

57) In Article 50, third paragraph, the words "the State" shall be replaced by "the Member State".

58) In Article 52(1), the words "the Council shall, on a proposal from the Commission and after consulting the Economic and Social Committee and the European Parliament, issue" shall be replaced by "the European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee, shall issue".

59) In Article 53, the words "declare their readiness to" shall be replaced by "shall endeavour to".

CAPITAL

60) In Article 57(2), the words "the Council may, acting by a qualified majority on a proposal from the Commission, adopt measures" shall be replaced by "the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt the measures" and the last sentence of paragraph 2 shall become paragraph 3, reading as follows:

"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."

61) In Article 58, the following new paragraph 4 shall be added:

"4. In the absence of measures pursuant to Article 57(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 insofar 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.".

62) Article 60 shall become Article 61 H. It shall be amended as set out below in point 64.

AREA OF FREEDOM, SECURITY AND JUSTICE;

63) A Title IV, with the heading "AREA OF FREEDOM, SECURITY AND JUSTICE", shall replace the Title IV on visas, asylum, immigration, and other policies related to free movement of persons. Title IV shall contain the following Chapters:

Chapter 1: General provisions

Chapter 2: Policies on border checks, asylum and immigration

Chapter 3: Judicial cooperation in civil matters

Chapter 4: Judicial cooperation in criminal matters

Chapter 5: Police cooperation.

GENERAL PROVISIONS

64) Article 61 shall be replaced by the following Chapter 1 and Articles 61 to 61 I. Article 61 shall also replace the current Article 29 of the Treaty on European Union, Article 61 D shall replace Article 36 thereof, Article 61 E shall replace Article 64(1) of the Treaty establishing the European Community and the current Article 33 of the Treaty on European Union, Article 61G shall replace Article 66 of the Treaty establishing the European Community and Article 61 H shall take over Article 60 thereof, as set out in point 62 above:

"CHAPTER 1

GENERAL PROVISIONS

Article 61

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.

Article 61 A

The European Council shall define the strategic guidelines for legislative and operational planning within the area of freedom, security and justice.

Article 61 B

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 61 C

Without prejudice to Articles 226, 227 and 228, the Council may, on a proposal from the Commission, adopt measures laying down the arrangements whereby Member States, in collaboration 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 61 D

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 207, 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 61 E

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 61 F

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.

Article 61 G

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 61 I, and after consulting the European Parliament.

Article 61 H

Where necessary to achieve the objectives set out in Article 61, 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 61 I

The acts referred to in Chapters 4 and 5, together with the measures referred to in Article 61 G 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.".

BORDER CHECKS, ASYLUM AND IMMIGRATION

65) Articles 62 to 64 shall be replaced by the following Chapter 2 and Articles 62 to 63b. Article 62 shall replace Article 62, paragraphs 1 and 2 of Article 63 shall replace points 1 and 2 of Article 63, paragraph 3 of Article 63 shall replace paragraph 2 of Article 64 and Article 63a shall replace points 3 and 4 of Article 63:

"CHAPTER 2

POLICIES ON BORDER CHECKS, ASYLUM AND IMMIGRATION

Article 62

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;

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

(c) the gradual introduction of an integrated management system for 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;

(c) the conditions under which nationals of third countries shall have the freedom to travel within 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 17(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 63

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 international 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) a common system of temporary protection for displaced persons in the event of a massive 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 63a

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;

(c) illegal immigration and unauthorised residence, including removal and repatriation of persons 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.

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 territories, 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 63b

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.".

JUDICIAL COOPERATION IN CIVIL MATTERS

66) Article 65 shall be replaced by the following Chapter 3 and Article 65:

"CHAPTER 3

JUDICIAL COOPERATION IN CIVIL MATTERS

Article 65

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;

(c) the compatibility of the rules applicable in the Member States concerning conflict of laws and of 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;

(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.".

JUDICIAL COOPERATION IN CRIMINAL MATTERS

67) Article 66 shall be replaced by Article 61 G, as set out in point 64 above, and Articles 67 to 69 shall be repealed. The following Chapter 4 and Articles 69 A to 69 E shall be inserted. Articles 69 A, 69 B and 69 D shall replace the current Article 31 of the Treaty on European Union, as set out above in point 51 of Article 1 of this Treaty:

"CHAPTER 4

JUDICIAL COOPERATION IN CRIMINAL MATTERS

Article 69 A

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 69 B.

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;

(c) support the training of the judiciary and judicial staff;

(d) facilitate cooperation between judicial or equivalent authorities of the Member States in relation to proceedings in criminal matters and the enforcement of decisions.

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;

(c) the rights of victims of crime;

(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 10(2) of the Treaty on European Union and Article 280 D(1) of this Treaty shall be deemed to be granted and the provisions on enhanced cooperation shall apply.

Article 69 B

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.

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 harmonisation 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 61 I.

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 10(2) of the Treaty on European Union and Article 280 D(1) of this Treaty shall be deemed to be granted and the provisions on enhanced cooperation shall apply.

Article 69 C

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 69 D

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.

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);

(c) the strengthening of judicial cooperation, including by resolution of conflicts of jurisdiction and 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 69 E, formal acts of judicial procedure shall be carried out by the competent national officials.

Article 69 E

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, 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 10(2) of the Treaty on European Union and Article 280 D(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 accomplices 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.

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.".

POLICE COOPERATION

68) The following Chapter 5 and Articles 69 F, 69 G and 69 H shall be inserted. Articles 69 F and 69 G shall replace the current Article 30 of the Treaty on European Union, and Article 69 H shall replace Article 32 thereof, as set out above in point 51 of Article 1 of this Treaty:

"CHAPTER 5

POLICE COOPERATION

Article 69 F

1. The Union shall establish police cooperation involving all the Member States' competent authorities, 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;

(c) common investigative techniques in relation to the detection of serious forms of organised crime.

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.

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 10(2) of the Treaty on European Union and Article 280 D(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 69 G

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 69 H

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 69 A and 69 F 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.".

TRANSPORT

69) In Article 70, the words "of this Treaty" shall be replaced by "of the Treaties" and the words "by Member States" shall be deleted.

70) In Article 71, paragraph 2 shall be replaced by the following:

"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.".

71) At the beginning of Article 72, the words ", without the unanimous approval of the Council," shall be replaced by ", unless the Council has unanimously adopted a measure granting a derogation,".

72) Article 75 shall be amended as follows:

(a) in paragraph 1, the words "shall be abolished" shall be replaced by "shall be prohibited";

(b) in paragraph 2, the words "the Council" shall be replaced by "the European Parliament and the Council";

(c) in the first subparagraph of paragraph 3, the words "the Economic and Social Committee" shall be replaced by "the European Parliament and the Economic and Social Committee".

73) In Article 78, the following sentence shall be added:

"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.".

74) In Article 79, the phrase "without prejudice to the powers of the Economic and Social Committee" shall be deleted.

75) In Article 80, paragraph 2 shall be replaced by the following:

"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.".

RULES ON COMPETITION

76) In Article 85, the following new paragraph 3 shall be added:

"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 83(2)(b).".

77) Article 87 shall be amended as follows:

(a) in paragraph 2, the following sentence shall be added at the end of point (c):

"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.";

(b) in paragraph 3, the following words shall be added at the end of point (a): ", and of the regions referred to in Article 299, in view of their structural, economic and social situation;".

78) In Article 88, the following new paragraph 4 shall be added:

"4. The Commission may adopt regulations relating to the categories of State aid that the Council has, pursuant to Article 89, determined may be exempted from the procedure provided for by paragraph 3 of this Article.".

TAX PROVISIONS

79) At the end of Article 93, the words "within the time limit laid down in Article 14" shall be replaced by "and to avoid distortion of competition.".

APPROXIMATION OF LAWS

80) The order of Articles 94 and 95 shall be reversed. Article 94 shall be renumbered 95 and Article 95 shall be renumbered 94.

81) Article 95, renumbered 94, shall be amended as follows:

(a) at the beginning of paragraph 1, the words "By way of derogation from Article 94 and" shall be deleted;

(b) at the beginning of paragraph 4, the words "If, after the adoption by the Council or by the Commission of a harmonisation measure," shall be replaced by "If, after the adoption of a harmonisation measure by the European Parliament and the Council, by the Council or by the Commission,";

(c) at the beginning of paragraph 5, the words "Moreover, without prejudice to paragraph 4, if, after the adoption by the Council or by the Commission of a harmonisation measure," shall be replaced by "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,";

(d) in paragraph 10, the words "Community control procedure" shall be replaced by "Union control procedure".

82) In Article 94, renumbered 95, the words "Without prejudice to Article 94," shall be inserted at the beginning.

83) In Article 96, second paragraph, first sentence, the words ", the Council shall, on a proposal from the Commission, acting by a qualified majority, issue" shall be replaced by ", the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall issue". The second sentence shall be replaced by "Any other appropriate measures provided for in the Treaties may be adopted.".

INTELLECTUAL PROPERTY

84) The following new Article 97a shall be inserted as the final article of Title VI:

"Article 97a

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.".

ECONOMIC AND MONETARY POLICY

85) An Article 97b shall be inserted as the first article of Title VII, with the wording of Article 4; it shall be amended as follows:

(a) in paragraph 1, the words "and in accordance with the timetable set out therein" shall be deleted;

(b) in paragraph 2, the words "Concurrently with the foregoing, and as provided in this Treaty and in accordance with the timetable and the procedures set out therein, these activities shall include the irrevocable fixing of exchange rates leading to the introduction of a single currency, the ecu," shall be replaced by "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,".

86) Article 99 shall be amended as follows:

(a) in paragraph 4, the first sentence of the first subparagraph shall be replaced by the following two sentences:

"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.";

(b) the second subparagraph of paragraph 4 shall become paragraph 5 and the current paragraph 5 shall be renumbered 6;

(c) the following two new subparagraphs shall be inserted in paragraph 4:

"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 205(3)(a).";

(d) in paragraph 5, renumbered 6, the words "The Council, acting in accordance with the procedure referred to in Article 252, may adopt detailed rules" shall be replaced by the following: "The European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, may adopt detailed rules", the words "of this Article" shall be deleted.

DIFFICULTIES IN THE SUPPLY OF CERTAIN PRODUCTS (ENERGY)

87) In Article 100, paragraph 1 shall be replaced by the following:

"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.".

OTHER PROVISIONS — ECONOMIC AND MONETARY POLICY

88) In Article 102, paragraph 2 shall be deleted and paragraph 1 shall not be numbered;

89) In Article 103, paragraph 2 shall be replaced by the following:

"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 101 and 102 and in this Article.".

EXCESSIVE DEFICIT PROCEDURE

90) Article 104 shall be amended as follows:

(a) paragraph 5 shall be replaced by the following:

"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.";

(b) in paragraph 6, the word "recommendation" shall be replaced by "proposal";

(c) in paragraph 7, the first sentence shall be replaced by "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.";

(d) in the introductory words of the first subparagraph of paragraph 11, there is a change to the French which does not affect the English version;

(e) in paragraph 12, at the beginning of the first sentence, the words "its decisions" shall be replaced by "its decisions or recommendations";

(f) paragraph 13 shall be replaced by the following:

"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 205(3)(a).";

(g) in paragraph 14, third subparagraph, the words ", before 1 January 1994" shall be deleted.

MONETARY POLICY

91) Article 105 shall be amended as follows:

(a) in the first sentence of paragraph 1, "ESCB" shall be replaced by "European System of Central Banks, hereinafter referred to as "ESCB",";

(b) in the second indent of paragraph 2, the reference to Article 111 shall be replaced by a reference to Article 188 O;

(c) The text of paragraph 6 shall be replaced by the following:

"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.".

92) Article 106 shall be amended as follows:

(a) in paragraph 1, first sentence, the word "euro" shall be inserted before "banknotes";

(b) in paragraph 2, first sentence, the word "euro" shall be inserted before "coins"; at the beginning of the second sentence, the words "The Council may, acting in accordance with the procedure referred to in Article 252 and after consulting the ECB" shall be replaced by: "The Council, on a proposal from the Commission and after consulting the European Parliament and the European Central Bank, may".

93) Article 107 shall be amended as follows:

(a) paragraphs 1 and 2 shall be deleted and paragraphs 3, 4, 5 and 6 shall be renumbered 1, 2, 3 and 4 respectively;

(b) in paragraph 4, renumbered 2, the words "Statute of the ESCB" shall be replaced by the following: "Statute of the European System of Central Banks and of the European Central Bank, hereinafter referred to as "Statute of the ESCB and of the ECB"";

(c) paragraph 5, renumbered 3, shall be replaced by the following:

"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.".

94) In Article 109, the words ", at the latest at the date of the establishment of the ESCB," shall be deleted.

95) In Article 110, the first four subparagraphs of paragraph 2 shall be deleted.

MEASURES RELATING TO USE OF THE EURO

96) In Article 111, paragraphs 1 to 3 and 5 shall become, respectively, paragraphs 1 to 4 of Article 188 O; they shall be amended as set out below in point 174. The text of paragraph 4 shall become paragraph 1 of Article 115 C; it shall be amended as set out below in point 100.

97) The following Article 111a shall be inserted:

"Article 111a

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.".

INSTITUTIONAL PROVISIONS (EMU)

98) The text of Article 112 shall become Article 245b, and shall be amended as set out in point 228 below. The text of Article 113 shall become Article 245c.

99) Article 114 shall be amended as follows:

(a) in paragraph 1, first subparagraph, the words "a Monetary Committee with advisory status" shall be replaced by "an Economic and Financial Committee";

(b) in paragraph 1, the second and third subparagraphs shall be deleted;

(c) in paragraph 2, the first subparagraph shall be deleted; in the third indent, the reference to paragraphs 2, 3, 4 and 5 of Article 99 shall be replaced by a reference to paragraphs 2, 3, 4 and 6 of Article 99, and the references to paragraph 2 of Article 122 and to paragraphs 4 and 5 of Article 123 shall be replaced by a reference to paragraphs 2 and 3 of Article 117a;

(d) in paragraph 4, the reference to Articles 122 and 123 shall be replaced by a reference to Article 116a.

PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO

100) The following new Chapter 3a and new Articles 115 A, 115 B and 115 C shall be inserted:

"CHAPTER 3a

PROVISIONS SPECIFIC TO MEMBER STATES WHOSE CURRENCY IS THE EURO

Article 115 A

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 99 and 104, with the exception of the procedure set out in Article 104(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 205(3)(a).

Article 115 B

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 115 C

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 205(3)(a).".

TRANSITIONAL PROVISIONS RELATING TO MEMBER STATES WITH A DEROGATION

101) Article 116 shall be repealed, and the following Article 116a shall be inserted:

"Article 116a

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 99(2));

(b) coercive means of remedying excessive deficits (Article 104(9) and (11));

(c) the objectives and tasks of the ESCB (Article 105(1), (2), (3) and (5));

(d) issue of the euro (Article 106);

(e) acts of the European Central Bank (Article 110);

(f) measures governing the use of the euro (Article 111a);

(g) monetary agreements and other measures relating to exchange-rate policy (Article 188 O);

(h) appointment of members of the Executive Board of the European Central Bank (Article 245b(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 115 C(1));

(j) measures to ensure unified representation within the international financial institutions and conferences (Article 115 C(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 SCB.

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 99(4));

(b) measures relating to excessive deficits concerning those Member States whose currency is the euro (Article 104(6), (7), (8), (12) and (13)).

A qualified majority of the other members of the Council shall be defined in accordance with Article 205(3)(a).".

102) Article 117 shall be repealed, with the exception of the first five indents of paragraph 2 thereof, which shall become the first five indents of paragraph 2 of Article 118a; they shall be amended as set out in point 103 below. A new Article 117a shall be inserted as follows:

(a) paragraph 1 thereof shall take over the wording of Article 121(1), with the following amendments:

(i) throughout the paragraph, the words "the EMI" shall be replaced by "the European Central Bank";

(ii) at the beginning of the first subparagraph, the following shall be inserted: "At least once every two years, or at the request of a Member State with a derogation,";

(iii) in the first subparagraph, first sentence, the words "the progress made in the fulfilment by the Member States of their obligations" shall be replaced by "the progress made by the Member States with a derogation in fulfilling their obligations";

(iv) in the first subparagraph, second sentence, the words "each Member State's national legislation" shall be replaced by "the national legislation of each of these Member States" and the words "of this Treaty" shall be deleted;

(v) in the third indent of the first subparagraph, the words "against the currency of any other Member State" shall be replaced by "against the euro;";

(vi) in the fourth indent of the first subparagraph, the words "the Member State" shall be replaced by "the Member State with a derogation" and the words "of the European Monetary System" shall be deleted;

(vii) in the second subparagraph, the words "the development of the ecu" shall be deleted;

(b) paragraph 2 thereof shall take over the wording of the second sentence of Article 122(2), with the following amendments:

(i) at the end of the text, the words "set out in Article 121(1)" shall be replaced by "set out in paragraph 1";

(ii) the following new second and third subparagraphs shall be added:

"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 205(3)(a).";

(c) paragraph 3 thereof shall take over the wording of Article 123(5), with the following amendments:

(i) at the beginning of the paragraph, the words "If it is decided, according to the procedure set out in Article 122(2), to abrogate a derogation," shall be replaced by "If it is decided, in accordance with the procedure set out in paragraph 2, to abrogate a derogation,";

(ii) the words "adopt the rate" shall be replaced by "irrevocably fix the rate".

103) Article 118 shall be repealed. A new Article 118a shall be inserted as follows:

(a) paragraph 1 thereof shall take over the text of Article 123(3); the words "of this Treaty" shall be deleted;

(b) paragraph 2 thereof shall take over the text of the first five indents of Article 117(2); the five indents shall be amended as set out below and shall be preceded by the following introductory words:

"If and as long as there are Member States with a derogation, the European Central Bank shall, as regards those Member States:"

(i) in the third indent, the words "European Monetary System" shall be replaced by "exchange-rate mechanism";

(ii) the fifth indent shall be replaced by the following:

- "— carry out the former tasks of the European Monetary Cooperation Fund which had subsequently been taken over by the European Monetary Institute.".

104) An Article 118b shall be inserted, with the wording of Article 124(1); it shall be amended as follows:

(a) the words "Until the beginning of the third stage, each Member State shall treat" shall be replaced by "Each Member State with a derogation shall treat";

(b) the words "of the European Monetary System (EMS) and in developing the ecu, and shall respect existing powers in this field" shall be replaced by "of the exchange-rate mechanism.".

105) Article 119 shall be amended as follows:

(a) in paragraph 1, the words "with a derogation" shall be inserted after "Member State" in the first and second subparagraphs and the word "progressive" in the first subparagraph shall be deleted;

(b) in paragraph 2(a), the words "with a derogation" shall be inserted after "Member States" and in paragraph 2(b), the words "the State which is in difficulties" shall be replaced by "the Member State with a derogation which is in difficulties,";

(c) in paragraph 3, the words "the Commission shall authorise the State which is in difficulties" shall be replaced by "the Commission shall authorise the Member State with a derogation, which is in difficulties,";

(d) paragraph 4 shall be deleted.

106) Article 120 shall be amended as follows:

(a) in paragraph 1, the words "the Member State concerned" shall be replaced by "a Member State with a derogation";

(b) in paragraph 3, the words "an opinion" shall be replaced by "a recommendation" and the word "Member" shall be inserted before "State";

(c) paragraph 4 shall be deleted.

107) Article 121(1) shall become Article 117a(1); it shall be amended as set out above in point 102. The rest of Article 121 shall be repealed.

108) In Article 122(2), the second sentence shall become the first subparagraph of Article 117a(2); it shall be amended as set out above in point 102. The rest of Article 122 shall be repealed.

109) Article 123(3) shall become Article 118a(1) and Article 123(5) shall become Article 117a(3); they shall be amended as set out above in points 103 and 102 respectively. The rest of Article 123 shall be repealed.

110) Article 124(1) shall become the new Article 118b; it shall be amended as set out above in point 104. The rest of Article 124 shall be repealed.

EMPLOYMENT

111) In Article 125, the words "and in Article 2 of this Treaty" shall be deleted.

TITLES WHICH ARE TO BE MOVED

112) Title IX "COMMON COMMERCIAL POLICY" shall become Title II in Part Five on the Union's external action and Articles 131 and 133 shall become Articles 188 B and 188 C respectively. Article 131 shall be amended as set out below in point 157 and Article 133 shall be replaced by Article 188 C.

Articles 132 and 134 shall be repealed.

113) Title X "CUSTOMS COOPERATION" shall become Chapter 1a in Title Ia, "Free movement of goods" and Article 135 shall become Article 27a, as set out above in point 45.

SOCIAL POLICY

114) The heading of Title XI "SOCIAL POLICY, EDUCATION, VOCATIONAL TRAINING AND YOUTH" shall be replaced by the heading "SOCIAL POLICY", renumbered IX; the heading "Chapter 1 — Social provisions" shall be deleted.

115) The following new Article 136a shall be inserted:

"Article 136a

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.".

116) Article 137 shall be amended as follows:

(a) in paragraph 2, in the introductory words of the first subparagraph, the words "the Council:" shall be replaced by "the European Parliament and the Council:" and the first sentence of the second subparagraph shall be split into two subparagraphs which shall read as follows:

"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 second sentence of the second subparagraph shall become the last subparagraph, and the words "of this Article" shall be deleted;

(b) in paragraph 3, at the end of the first subparagraph, the following words shall be added "or, where appropriate, with the implementation of a Council decision adopted in accordance with Article 139"; in the second subparagraph, the words "a directive must be transposed in accordance with Article 249" shall be replaced by "a directive or a decision must be transposed or implemented," and the words "or that decision" shall be added at the end of the subparagraph.

117) In Article 138(4), first sentence, the words "On the occasion of such consultation," shall be replaced by "On the occasion of the consultation referred to in paragraphs 2 and 3," and, in the second sentence, the words "the procedure" shall be replaced by "this process".

118) Article 139(2) shall be amended as follows:

(a) at the end of the first subparagraph, the following sentence shall be added: "The European Parliament shall be informed.";

(b) in the second subparagraph, at the beginning of the first sentence, "The Council shall act by qualified majority, except where the agreement" shall be replaced by "The Council shall act unanimously where the agreement" and the second sentence shall be deleted.

119) In Article 140, the following words shall be added at the end of the second subparagraph: ", 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.".

120) In Article 143, the second paragraph shall be deleted.

EUROPEAN SOCIAL FUND

121) Chapter 2 shall be renumbered TITLE X.

122) In Article 148, the words "implementing decisions" shall be replaced by "implementing regulations".

EDUCATION, VOCATIONAL TRAINING, YOUTH AND SPORT

123) Chapter 3 shall be renumbered TITLE XI and the words "AND YOUTH" at the end of the heading shall be replaced by ", YOUTH AND SPORT".

124) Article 149 shall be amended as follows:

(a) in paragraph 1, the following subparagraph shall be inserted:

"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.";

(b) in paragraph 2, fifth indent, the words "and encouraging the participation of young people in democratic life in Europe," shall be added at the end; the following shall be inserted as the last indent:

- "— 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.";

(c) in paragraph 3, the words "and sport" shall be added after "in the field of education";

(d) in paragraph 4, the words "the Council" shall be deleted from the introductory phrase and the first indent shall begin with the words "the European Parliament and the Council, acting"; the second indent shall begin with the words "the Council, on a proposal".

125) In Article 150(4), the following words shall be added at the end: ", and the Council, on a proposal from the Commission, shall adopt recommendations".

CULTURE

126) Article 151(5) shall be amended as follows:

(a) in the introductory phrase, the words "the Council" shall be deleted;

(b) in the first indent, the first sentence shall begin with the words "the European Parliament and the Council, acting", and the second sentence shall be deleted;

(c) in the second indent, the words "acting unanimously" shall be deleted and the indent shall begin with the words "the Council, on a proposal".

PUBLIC HEALTH

127) Article 152 shall be amended as follows:

(a) in paragraph 1, second subparagraph, the word "human" shall be replaced by "physical and mental" and, at the end of that subparagraph, the following shall be added: ", and monitoring, early warning of and combating serious cross-border threats to health";

(b) in paragraph 2, at the end of the first subparagraph, the following sentence shall be added: "It shall in particular encourage cooperation between the Member States to improve the complementarity of their health services in cross-border areas.";

(c) In paragraph 2, the following shall be added at the end of the second subparagraph: ", 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.";

(d) paragraph 4 shall be amended as follows:

(i) in the introductory wording to the first subparagraph, the following words shall be inserted at the beginning: "By way of derogation from Article 2 A(5) and Article 2 E(a) and in accordance with Article 2 C(2)(k)" and the following shall be added at the end: "in order to meet common safety concerns:";

(ii) in point (b), the words "by way of derogation from Article 37," shall be deleted;

(iii) the following new point (c) shall be inserted:

"(c) measures setting high standards of quality and safety for medicinal products and devices for medical use.";

(iv) the current point (c) shall be renumbered paragraph 5 and replaced by the following:

"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.";

(e) the second subparagraph of the current paragraph 4 shall become paragraph 6 and paragraph 5, renumbered 7, shall be replaced by the following:

"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 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.".

CONSUMER PROTECTION

128) Article 153(2) shall become Article 6a and paragraphs 3, 4 and 5 shall be renumbered 2, 3 and 4 respectively.

INDUSTRY

129) Article 157 shall be amended as follows:

(a) at the end of paragraph 2, the following shall be added: ", 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.";

(b) in paragraph 3, first subparagraph, the following phrase shall be added at the end of the second sentence: ", excluding any harmonisation of the laws and regulations of the Member States".

ECONOMIC, SOCIAL AND TERRITORIAL COHESION

130) The heading of Title XVII shall be replaced by: "ECONOMIC, SOCIAL AND TERRITORIAL COHESION".

131) Article 158 shall be amended as follows:

(a) in the first paragraph, the words "economic and social cohesion" shall be replaced by "economic, social and territorial cohesion";

(b) in the second paragraph, the words "or islands, including rural areas" shall be deleted;

(c) the following new paragraph shall be added:

"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.".

132) In Article 159, second paragraph, the words "economic and social" shall be replaced by "economic, social and territorial".

133) Article 161 shall be amended as follows:

(a) at the beginning of the first paragraph, first sentence, the words "Without prejudice to Article 162, the Council, acting unanimously on a proposal from the Commission and after obtaining the assent of the European Parliament" shall be replaced by "Without prejudice to Article 162, the European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure". In the second sentence the words "The Council, acting by the same procedure, shall also define" shall be deleted at the beginning and the words "shall also be defined by the same procedure" added at the end;

(b) in the second paragraph the words "by the Council" shall be deleted;

(c) the third paragraph shall be deleted.

134) In Article 162, first paragraph, the words "implementing decisions" shall be replaced by "implementing regulations".

RESEARCH AND TECHNOLOGICAL DEVELOPMENT

135) The words "AND SPACE" shall be added to the heading of Title XVIII.

136) Article 163 shall be amended as follows:

(a) paragraph 1 shall be replaced by the following:

"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.";

(b) in paragraph 2, the words "enabling undertakings to exploit the internal market potential to the full," shall be replaced by "permitting researchers to cooperate freely across borders and at enabling undertakings to exploit the internal market potential to the full,".

137) The following shall be added at the end of Article 165(2): ", 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.".

138) Article 166 shall be amended as follows:

(a) in paragraph 4, the words "The Council, acting by a qualified majority on a proposal from the Commission" shall be replaced by "The Council, acting in accordance with a special legislative procedure";

(b) the following new paragraph 5 shall be added:

"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.".

139) In Article 167, the words "the Council" shall be replaced by "the Union".

140) In Article 168, second paragraph, the words "the Council" shall be replaced by "the Union".

141) In the second paragraph of Article 170, the words ", which shall be negotiated and concluded in accordance with Article 300" shall be deleted.

SPACE

142) The following new Article 172a shall be inserted:

"Article 172a

1. To promote scientific and technical progress, industrial competitiveness and the implementation 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.

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.".

ENVIRONMENT (CLIMATE CHANGE)

143) Article 174 shall be amended as follows:

(a) in paragraph 1, the fourth indent shall be replaced by the following:

- "— promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change.";

(b) in paragraph 2, second subparagraph, the words "Community inspection procedure" shall be replaced by "a procedure of inspection by the Union";

(c) in paragraph 4, first subparagraph, the last phrase ", which shall be negotiated and concluded in acco