Article 1 
A Community action entitled ‘European Capital of Culture’ shall be established. Its objective shall be to highlight the richness and diversity of European cultures and the features they share, as well as to promote greater mutual acquaintance between European citizens.
Article 2 
1. Cities in Member States shall be designated as European Capital of Culture, in turn, as set out on the list contained in Annex I. Up until 2008 inclusive, the designation shall apply to one city of the Member State appearing on the list. From 2009 onwards, the designation shall apply to one city of each of the Member States appearing on the list. The chronological order set out in Annex I may be altered by mutual agreement between the Member States concerned. Each Member State shall submit, in turn, its nomination of one or more cities to the European Parliament, the Council, the Commission and the Committee of the Regions. This nomination shall be submitted no later than four years before the event in question is due to begin and may be accompanied by a recommendation from the Member State concerned. 2. The Commission shall each year form a selection panel which shall issue a report on the nomination or nominations judged against the objectives and characteristics of this action. The selection panel shall be composed of seven leading independent figures who are experts on the cultural sector, of whom two shall be appointed by the European Parliament, two by the Council, two by the Commission and one by the Committee of the Regions. The selection panel shall submit its report to the Commission, the European Parliament and the Council. 3. The European Parliament may forward an opinion to the Commission on the nomination or nominations not later than three months after receipt of the report. The Council, acting on a recommendation from the Commission drawn up in the light of the opinion of the European Parliament and of the selection panel's report, shall officially designate the city in question as a European Capital of Culture for the year for which it has been nominated.
Article 3 
The nomination shall include a cultural project of European dimension, based principally on cultural cooperation, in accordance with the objectives and action provided for by Article 151 of the Treaty. The submission shall specify how the nominated city intends: — to highlight artistic movements and styles shared by Europeans which it has inspired or to which it has made a significant contribution, — to promote events involving people active in culture from other cities in Member States and leading to lasting cultural cooperation, and to foster their movement within the European Union, — to support and develop creative work, which is an essential element in any cultural policy, — to ensure the mobilisation and participation of large sections of the population and, as a consequence, the social impact of the action and its continuity beyond the year of the events, — to encourage the reception of citizens of the Union and the widest possible dissemination of the various events by employing all forms of multimedia, — to promote dialogue between European cultures and those from other parts of the world and, in that spirit, to optimise the opening up to, and understanding of others, which are fundamental cultural values, — to exploit the historic heritage, urban architecture and quality of life in the city.
Article 4 
European non-member countries may participate in this action. Any such country may nominate one city as a European Capital of Culture and should notify its nomination to the European Parliament, the Council, the Commission and the Committee of the Regions. The Council, acting unanimously on a recommendation from the Commission, shall officially designate one of these nominated cities as a European Capital of Culture for each year, bearing in mind the desirability of four years' preparation time.
Article 5 
Each city shall organise a programme of cultural events highlighting the city's own culture and cultural heritage as well as its place in the common cultural heritage, and involving people concerned with cultural activities from other European countries with a view to establishing lasting cooperation. In addition to the foregoing, the list indicating planning and evaluation criteria set out in Annex II should be taken into account to the greatest possible extent by the designated city in planning its programme. In principle this programme should last one year but as an exception designated cities may opt for a shorter period of time. Cities may choose to involve their surrounding region in their programme. A linkage between the programmes of the designated cities of the same year should be made.
Article 6 
Each year the Commission shall produce a report evaluating the results of the previous year's event, including an analysis by the organisers of the latter. This report shall be presented to the European Parliament, the Council and the Committee of the Regions. The Commission may also make any proposals for revision of this Decision which it judges necessary for the smooth operation of this action and, in particular, with a view to the future enlargement of the Union.