OF THE REPRESENTATIVES OF THE GOVERNMENTS Brussels, 5 October 2007 CIG 1/1/07 NOTE Presidency of the IGC 5 October 2007 Intergovernmental Conference (IGC) IGC 2007 DRAFT Articles 1 to 7 of the Reform Treaty The Presidency will submit this text to the Intergovernmental Conference (Foreign Ministers) meeting in Luxembourg on 15 October 2007, with a view to its final adoption at the Intergovernmental Conference (Heads of State or of Government) meeting in Lisbon on 18 October 2007. CIG 1/1/07 REV 1 1 The Treaty on European Union shall be amended in accordance with the provisions of this Article. 1) The preamble shall be amended as follows: "DRAWING INSPIRATION from the cultural, religious and humanist inheritance of Europe, from which have developed the universal values of the inviolable and inalienable rights of the human person, freedom, democracy, equality and the rule of law,"; (c) In the twelfth recital, the words "of this Treaty" shall be replaced by "of this Treaty and of the Treaty on the Functioning of the European Union,". 2) Article 1 shall be amended as follows: "on which the Member States confer competences to attain objectives they have in common."; "The Union shall be founded on the present Treaty and on the Treaty on the Functioning of the European Union (hereinafter referred to as "the Treaties"). Those two Treaties shall have the same legal value. The Union shall replace and succeed the European Community.". EN "Article 2 4) Article 2, renumbered 3, shall be replaced by the following: 1. The Union's aim is to promote peace, its values and the well-being of its peoples. 3. The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance. It shall promote economic, social and territorial cohesion, and solidarity among Member States. 4. The Union shall establish an economic and monetary union whose currency is the euro. EN 6. The Union shall pursue its objectives by appropriate means commensurate with the competences which are conferred upon it in the Treaties.". "Article 4 2. The Union shall respect the equality of Member States before the Treaties as well as their national identities, inherent in their fundamental structures, political and constitutional, inclusive of regional and local self-government. It shall respect their essential State functions, including ensuring the territorial integrity of the State, maintaining law and order and safeguarding national security. In particular, national security remains the sole responsibility of each Member State. The Member States shall take any appropriate measure, general or particular, to ensure fulfilment of the obligations arising out of the Treaties or resulting from the acts of the institutions of the Union. CIG 1/1/07 REV 1 5 6) Article 4, renumbered 5, shall be replaced by the following: 1. The limits of Union competences are governed by the principle of conferral. The use of Union competences is governed by the principles of subsidiarity and proportionality. 3. Under the principle of subsidiarity, in areas which do not fall within its exclusive competence, the Union shall act only if and insofar as the objectives of the proposed action cannot be sufficiently achieved by the Member States, either at central level or at regional and local level, but can rather, by reason of the scale or effects of the proposed action, be better achieved at Union level. 4. Under the principle of proportionality, the content and form of Union action shall not exceed what is necessary to achieve the objectives of the Treaties. 7) Article 5 shall be repealed. "Article 6 The provisions of the Charter shall not extend in any way the competences of the Union as defined in the Treaties. EN 2. The Union shall accede to the European Convention for the Protection of Human Rights and Fundamental Freedoms. Such accession shall not affect the Union's competences as defined in the Treaties. 9) Article 7 shall be amended as follows: (b) at the end of the first sentence of the first subparagraph of paragraph 1, the words "and address appropriate recommendations to that State" shall be deleted; at the end of the last sentence, the words "and, acting in accordance with the same procedure, may call on independent persons to submit within a reasonable time limit a report on the situation in the Member State in question" shall be replaced by "and may address recommendations to it, acting in accordance with the same procedure."; (d) paragraphs 5 and 6 shall be replaced by the following: CIG 1/1/07 REV 1 7 10) The following new Article 7a shall be inserted: 1. The Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation. 11) The provisions of Title II of the EU Treaty shall be incorporated into the Treaty establishing the European Community, as amended elsewhere, which shall become the Treaty on the Functioning of the European Union. 12) Title II and Article 8 shall be replaced by the following new heading and new articles: Article 8 Article 8a 2. Citizens are directly represented at Union level in the European Parliament. EN 3. Every citizen shall have the right to participate in the democratic life of the Union. Decisions shall be taken as openly and as closely as possible to the citizen. Article 8b 2. The institutions shall maintain an open, transparent and regular dialogue with representative associations and civil society. 4. Not less than one million citizens who are nationals of a significant number of Member States may take the initiative of inviting the Commission, within the framework of its powers, to submit any appropriate proposal on matters where citizens consider that a legal act of the Union is required for the purpose of implementing the Treaties. Article 8c (a) through being informed by the institutions of the Union and having draft European legislative acts forwarded to them in accordance with the Protocol on the role of national Parliaments in the European Union; CIG 1/1/07 REV 1 9 (c) by taking part, within the framework of the area of freedom, security and justice, in the evaluation mechanisms for the implementation of the Union policies in that area, in accordance with Article 64 of the Treaty on the Functioning of the European Union, and through being involved in the political monitoring of Europol and the evaluation of Eurojust's activities in accordance with Articles 69k and 69h of that Treaty; (e) by being notified of applications for accession to the Union, in accordance with Article 34 of this Treaty; Institutions "TITLE III PROVISIONS ON THE INSTITUTIONS". "Article 9 The Union's institutions shall be: - the European Council, - the European Commission (hereinafter referred to as the "Commission"), - the European Central Bank, CIG 1/1/07 REV 1 10 2. Each institution shall act within the limits of the powers conferred on it in the Treaties, and in conformity with the procedures, conditions and objectives set out in them. The institutions shall practice mutual sincere cooperation. 4. The European Parliament, the Council and the Commission shall be assisted by an Economic and Social Committee and a Committee of the Regions acting in an advisory capacity.". "Article 9a 2. The European Parliament shall be composed of representatives of the Union's citizens. They shall not exceed seven hundred and fifty in number. Representation of citizens shall be degressively proportional, with a minimum threshold of six members per Member State. No Member State shall be allocated more than ninety-six seats. 3. The members of the European Parliament shall be elected for a term of five years by direct universal suffrage in a free and secret ballot. 16) An Article 9b shall be inserted: 1. The European Council shall provide the Union with the necessary impetus for its development and shall define the general political directions and priorities thereof. It shall not exercise legislative functions. EN 3. The European Council shall meet twice every six months, convened by its President. When the agenda so requires, the members of the European Council may decide each to be assisted by a minister and, in the case of the President of the Commission, by a member of the Commission. When the situation so requires, the President shall convene a special meeting of the European Council. 5. The European Council shall elect its President, by a qualified majority, for a term of two and a half years, renewable once. In the event of an impediment or serious misconduct, the European Council can end his or her term of office in accordance with the same procedure. (a) shall chair it and drive forward its work; (c) shall endeavour to facilitate cohesion and consensus within the European Council; The President of the European Council shall, at his or her level and in that capacity, ensure the external representation of the Union on issues concerning its common foreign and security policy, without prejudice to the powers of the High Representative of the Union for Foreign Affairs and Security Policy. 17) An Article 9c shall be inserted: 1. The Council shall, jointly with the European Parliament, exercise legislative and budgetary functions. It shall carry out policy-making and coordinating functions as laid down in the Treaties. EN 3. The Council shall act by a qualified majority except where the Treaties provide otherwise. A blocking minority must include at least four Council members, failing which the qualified majority shall be deemed attained. 5. The transitional provisions relating to the definition of the qualified majority which shall be applicable until 31 October 2014 and those which shall be applicable from 1 November 2014 to 31 March 2017 are laid down in the Protocol on transitional provisions. The General Affairs Council shall ensure consistency in the work of the different Council configurations. It shall prepare and ensure the follow-up to meetings of the European Council, in liaison with the President of the European Council and the Commission. 7. A Committee of Permanent Representatives of the Governments of the Member States shall be responsible for preparing the work of the Council. 9. The Presidency of Council configurations, other than that of Foreign Affairs, shall be held by Member State representatives in the Council on the basis of equal rotation, in accordance with the conditions established in accordance with Article 201b(b), of the Treaty on the Functioning of the European Union." EN "Article 9d 2. Union legislative acts may be adopted only on the basis of a Commission proposal, except where the Treaties provide otherwise. Other acts shall be adopted on the basis of a Commission proposal where the Treaties so provide. The members of the Commission shall be chosen on the ground of their general competence and European commitment from persons whose independence is beyond doubt. 4. The Commission appointed between the date of entry into force of the Treaty amending the Treaty on European Union and the Treaty establishing the European Community and 31 October 2014 shall consist of one national of each Member State, including its President and the High Representative of the Union for Foreign Affairs and Security Policy who shall be one of its Vice-Presidents. The members of the Commission shall be chosen from among the nationals of the Member States on the basis of a system of strictly equal rotation between the Member States, reflecting the demographic and geographical range of all the Member States. This system shall be established unanimously by the European Council in accordance with Article 211 of the Treaty on the Functioning of the European Union. EN (a) lay down guidelines within which the Commission is to work; (c) appoint Vice-Presidents, other than the High Representative of the Union for Foreign Affairs and Security Policy, from among the members of the Commission. 7. Taking into account the elections to the European Parliament and after having held the appropriate consultations, the European Council, acting by a qualified majority, shall propose to the European Parliament a candidate for President of the Commission. This candidate shall be elected by the European Parliament by a majority of its component members. If he or she does not obtain the required majority, the European Council, acting by a qualified majority, shall within one month propose a new candidate who shall be elected by the European Parliament following the same procedure. The President, the High Representative of the Union for Foreign Affairs and Security Policy and the other members of the Commission shall be subject as a body to a vote of consent by the European Parliament. On the basis of this consent the Commission shall be appointed by the European Council, acting by a qualified majority. CIG 1/1/07 REV 1 15 19) The following new Article 9e shall be inserted: 1. The European Council, acting by a qualified majority, with the agreement of the President of the Commission, shall appoint the High Representative of the Union for Foreign Affairs and Security Policy. The European Council may end his or her term of office by the same procedure. 3. The High Representative shall preside over the Foreign Affairs Council. 20) An Article 9f shall be inserted: 1. The Court of Justice of the European Union shall include the Court of Justice, the General Court and specialised courts. It shall ensure that in the interpretation and application of the Treaties the law is observed. 2. The Court of Justice shall consist of one judge from each Member State. It shall be assisted by Advocates-General. CIG 1/1/07 REV 1 16 The judges and the Advocates-General of the Court of Justice and the judges of the General Court shall be chosen from persons whose independence is beyond doubt and who satisfy the conditions set out in Articles 223 and 224 of the Treaty on the Functioning of the European Union. They shall be appointed by common accord of the governments of the Member States for six years. Retiring judges and Advocates-General may be reappointed. (a) rule on actions brought by a Member State, an institution or a natural or legal person; (c) rule in other cases provided for in the Treaties.". Enhanced cooperation "Article 10 Enhanced cooperation shall aim to further the objectives of the Union, protect its interests and reinforce its integration process. Such cooperation shall be open at any time to all Member States, in accordance with Article 280c of the Treaty on the Functioning of the European Union. EN 3. All members of the Council may participate in its deliberations, but only members of the Council representing the Member States participating in enhanced cooperation shall take part in the vote. The voting rules are set out in Article 280e of the Treaty on the Functioning of the European Union. 23) Title V of the EU Treaty shall be renamed as follows: "GENERAL PROVISIONS ON THE UNION'S EXTERNAL ACTION AND SPECIFIC PROVISIONS ON THE COMMON FOREIGN AND SECURITY POLICY". 24) The following new chapter shall be inserted: Article 10a The Union shall seek to develop relations and build partnerships with third countries, and international, regional or global organisations which share the principles referred to in the first subparagraph. It shall promote multilateral solutions to common problems, in particular in the framework of the United Nations. EN (a) safeguard its values, fundamental interests, security, independence and integrity; (c) preserve peace, prevent conflicts and strengthen international security, in accordance with the purposes and principles of the United Nations Charter, with the principles of the Helsinki Final Act and with the aims of the Charter of Paris, including those relating to external borders; (e) encourage the integration of all countries into the world economy, including through the progressive abolition of restrictions on international trade; (g) assist populations, countries and regions confronting natural or man-made disasters; and 3. The Union shall respect the principles and pursue the objectives set out in paragraphs 1 and 2 in the development and implementation of the different areas of the Union's external action covered by this Title and Part Five of the Treaty on the Functioning of the European Union, and of the external aspects of its other policies. CIG 1/1/07 REV 1 19 Article 10b Decisions of the European Council on the strategic interests and objectives of the Union shall relate to the common foreign and security policy and to other areas of the external action of the Union. Such decisions may concern the relations of the Union with a specific country or region or may be thematic in approach. They shall define their duration, and the means to be made available by the Union and the Member States. 2. The High Representative of the Union for Foreign Affairs and Security Policy, for the area of common foreign and security policy, and the Commission, for other areas of external action, may submit joint proposals to the Council.". 25) The following headings shall be inserted: SECTION 1 COMMON PROVISIONS". "Article 10c CIG 1/1/07 REV 1 20 27) Article 11 shall be amended as follows: "1. The Union's competence in matters of common foreign and security policy shall cover all areas of foreign policy and all questions relating to the Union's security, including the progressive framing of a common defence policy that might lead to a common defence. 2. Within the framework of the principles and objectives of its external action, the Union shall conduct, define and implement a common foreign and security policy, based on the development of mutual political solidarity among Member States, the identification of questions of general interest and the achievement of an ever-increasing degree of convergence of Member States' actions."; (i) The following words shall be added at the end of the first subparagraph: (ii) the third subparagraph shall be replaced by "The Council and the High Representative shall ensure that these principles are complied with.". "The Union shall conduct the common foreign and security policy by: CIG 1/1/07 REV 1 21 (b) adopting decisions defining: (ii) positions to be taken by the Union; (c) strengthening systematic cooperation between Member States in the conduct of policy.". (a) in paragraph 1, the words "define the principles of and general guidelines for" shall be replaced by "shall identify the Union's strategic interests, determine the objectives of and define general guidelines for" and the following sentence shall be added: "It shall adopt the necessary decisions.". The following subparagraph shall be inserted: (b) paragraph 2 shall be deleted and paragraph 3 shall be renumbered 2. The first subparagraph shall be replaced by the following: "The Council shall frame the common foreign and security policy and take the decisions necessary for defining and implementing it on the basis of the general guidelines and strategic lines defined by the European Council." The second subparagraph shall be deleted. In the third subparagraph, which shall become the second, the words "shall ensure" shall be replaced by "and the High Representative of the Union for Foreign Affairs and Security Policy shall ensure"; "3. The common foreign and security policy shall be put into effect by the High Representative and by the Member States, using national and Union resources. "Article 13a CIG 1/1/07 REV 1 22 2. The High Representative shall represent the Union for matters relating to the common foreign and security policy. He or she shall conduct political dialogue with third parties on the Union's behalf and shall express the Union's position in international organisations and at international conferences. 31) Article 14 shall be amended as follows: (b) in paragraph 2, first sentence, the words "to joint action," shall be replaced by "to a decision as referred to in paragraph 1," and the words "that action" shall be replaced by "that decision". The last sentence shall be deleted; (d) paragraph 4 shall be deleted and the remaining paragraphs shall be renumbered accordingly; (f) in the first sentence of paragraph 6, renumbered 5, the words "failing a Council decision," shall be replaced by "failing a review of the Council decision as referred to in paragraph 1," and the words "of the joint action" shall be replaced by "of that decision"; CIG 1/1/07 REV 1 23 32) At the beginning of Article 15, the words "The Council shall adopt common positions. Common positions shall define" shall be replaced by "The Council shall adopt decisions which shall define" and at the end of the Article the words "common positions" shall be replaced by "Union positions". (a) in paragraph 1, the words "Any Member State or the Commission may refer to the Council any question relating to the common foreign and security policy" shall be replaced by "Any Member State, the High Representative of the Union for Foreign Affairs and Security Policy, or the High Representative with the Commission's support, may refer any question relating to the common foreign and security policy to the Council" and the words "submit proposals to the Council" shall be replaced by "submit to it initiatives or proposals as appropriate"; 34) The text of Article 17 shall become Article 27, with the amendments set out in point 48 below. The text of Article 23, with the following amendments, shall become Article 17: (b) paragraph 2 shall be amended as follows: "- when adopting a decision defining a Union action or position on the basis of a decision of the European Council relating to the Union's strategic interests and objectives, as referred to in Article 10b(1), CIG 1/1/07 REV 1 24 (ii) in the second indent, which shall become the third indent, the words "a joint action or a common position," shall be replaced by "a decision defining a Union action or position,"; (iv) the third subparagraph shall be replaced by the following new paragraph 3, the last subparagraph shall become paragraph 4 and paragraph 3 shall be renumbered 5: (c) in the paragraph now numbered 4, the words "This paragraph shall not apply" shall be replaced by "Paragraphs 2 and 3 shall not apply". (a) the words "inform and" shall be deleted, the words "within the Council" shall be replaced by "within the European Council and the Council" and the words "in order to ensure that the Union's influence is exerted as effectively as possible by means of concerted and convergent action" shall be replaced by "in order to determine a common approach"; (c) the following two paragraphs shall be inserted: The diplomatic missions of the Member States and the Union delegations in third countries and at international organisations shall cooperate and shall contribute to formulating and implementing the common approach.". EN (a) paragraphs 1 to 4 shall be deleted; 37) Article 19 shall be amended as follows: (b) paragraph 2 shall be amended as follows: (ii) in the second subparagraph, first sentence, the words "and the High Representative" shall be inserted after "the other Member States"; in the second sentence, the word "permanent" shall be deleted and the words "ensure the defence of the positions" shall be replaced by "defend the positions"; "When the Union has defined a position on a subject which is on the United Nations Security Council agenda, those Member States which sit on the Security Council shall request that the High Representative be asked to present the Union's position.". (a) in the first paragraph, the words "Commission delegations" shall be replaced by "Union delegations" and the words "the common positions and joint actions adopted by the Council" shall be replaced by "decisions defining Union positions and actions adopted pursuant to this Chapter"; EN (c) the following new paragraph shall be inserted: 39) Article 21 shall be amended as follows: "The High Representative of the Union for Foreign Affairs and Security Policy shall regularly consult the European Parliament on the main aspects and the basic choices of the common foreign and security policy and the common security and defence policy and inform it of how those policies evolve. He or she shall ensure that the views of the European Parliament are duly taken into consideration. Special representatives may be involved in briefing the European Parliament."; 40) The text of Article 22 shall become Article 16; it shall be amended as set out above in point 33. 42) Article 24, renumbered 22, shall be replaced by the following: CIG 1/1/07 REV 1 27 43) Article 25, renumbered 23, shall be amended as follows: (b) the text of the second paragraph shall be replaced by the following: "Within the scope of this Chapter, the Political and Security Committee shall exercise, under the responsibility of the Council and of the High Representative, the political control and strategic direction of the crisis management operations referred to in Article 28."; 44) Articles 26 and 27, renumbered 24 and 25, shall be replaced by the following two articles, with Article 25 replacing Article 47: In accordance with Article 15a of the Treaty on the Functioning of the European Union and by way of derogation from paragraph 2 thereof, the Council shall adopt a decision laying down the rules relating to the protection of individuals with regard to the processing of personal data by the Member States when carrying out activities which fall within the scope of this Chapter, 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 implementation of the common foreign and security policy shall not affect the application of the procedures and the extent of the powers of the institutions laid down by the Treaties for the exercise of the Union competences referred to in Articles 3 to 6 of the Treaty on the Functioning of the European Union. 45) Articles 27a to 27e, on enhanced cooperation, shall be replaced by Article 10 in accordance with point 22 above. EN (a) paragraph 1 shall be deleted and the remaining paragraphs shall be renumbered accordingly; throughout the Article the words "budget of the European Communities" shall be replaced by "Union budget"; (c) in paragraph 3, renumbered 2, the words "the implementation of those provisions" in the first subparagraph shall be replaced by "the implementation of this Chapter" and in the second subparagraph the reference to Article 23 shall be replaced by a reference to Article 17; "3. The Council shall adopt a decision establishing the specific procedures for guaranteeing rapid access to appropriations in the Union budget for urgent financing of initiatives in the framework of the common foreign and security policy, and in particular for preparatory activities for the tasks referred to in Article 27(1) and Article 28. It shall act after consulting the European Parliament. The Council shall adopt by a qualified majority, on a proposal from the High Representative of the Union for Foreign Affairs and Security Policy, decisions establishing: (b) the procedures for administering the start-up fund; When the task planned in accordance with Article 27(1) and Article 28 cannot be charged to the Union budget, the Council shall authorise the High Representative to use the fund. The High Representative shall report to the Council on the implementation of this remit.". EN 47) The following new section shall be inserted: 48) Article 27 shall take over the wording of Article 17, with the following amendments: "1. The common security and defence policy shall be an integral part of the common foreign and security policy. It shall provide the Union with an operational capacity drawing on civil and military assets. The Union may use them on missions outside the Union for peace-keeping, conflict prevention and strengthening international security in accordance with the principles of the United Nations Charter. The performance of these tasks shall be undertaken using capabilities provided by the Member States."; (i) the first subparagraph shall be replaced by the following: (ii) in the second subparagraph, the words "in accordance with this Article" shall be replaced by "in accordance with this Section"; (c) paragraph 2, renumbered 3, to paragraph 5 shall be replaced by the following paragraphs: CIG 1/1/07 REV 1 30 Member States shall undertake progressively to improve their military capabilities. The Agency in the field of defence capabilities development, research, acquisition and armaments (European Defence Agency) shall identify operational requirements, shall promote measures to satisfy those requirements, shall contribute to identifying and, where appropriate, implementing any measure needed to strengthen the industrial and technological base of the defence sector, shall participate in defining a European capabilities and armaments policy, and shall assist the Council in evaluating the improvement of military capabilities. 5. The Council may entrust the execution of a task, within the Union framework, to a group of Member States in order to protect the Union's values and serve its interests. The execution of such a task shall be governed by Article 29. 7. If a Member State is the victim of armed aggression on its territory, the other Member States shall have towards it an obligation of aid and assistance by all the means in their power, in accordance with Article 51 of the United Nations Charter. This shall not prejudice the specific character of the security and defence policy of certain Member States. CIG 1/1/07 REV 1 31 49) The following new Articles 28 to 31 shall be inserted: 1. The tasks referred to in Article 27(1), in the course of which the Union may use civilian and military means, shall include joint disarmament operations, humanitarian and rescue tasks, military advice and assistance tasks, conflict prevention and peace-keeping tasks, tasks of combat forces in crisis management, including peace-making and post-conflict stabilisation. All these tasks may contribute to the fight against terrorism, including by supporting third countries in combating terrorism in their territories. Article 29 2. Member States participating in the task shall keep the Council regularly informed of its progress on their own initiative or at the request of another Member State. Those States shall inform the Council immediately should the completion of the task entail major consequences or require amendment of the objective, scope and conditions determined for the task in the decisions referred to in paragraph 1. In such cases, the Council shall adopt the necessary decisions. 1. The European Defence Agency referred to in Article 27(3), subject to the authority of the Council, shall have as its task to: CIG 1/1/07 REV 1 32 (b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods; (d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs; 2. The European Defence Agency shall be open to all Member States wishing to be part of it. The Council, acting by a qualified majority, shall adopt a decision defining the Agency's statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary. 1. Those Member States which wish to participate in the permanent structured cooperation referred to in Article 27(6), which fulfil the criteria and have made the commitments on military capabilities set out in the Protocol on permanent structured cooperation, shall notify their intention to the Council and to the High Representative of the Union for Foreign Affairs and Security Policy. 3. Any Member State which, at a later stage, wishes to participate in the permanent structured cooperation shall notify its intention to the Council and to the High Representative. EN A qualified majority shall be defined in accordance with Article 205(3)(a) of the Treaty on the Functioning of the European Union. The Council shall act by a qualified majority. Only members of the Council representing the participating Member States, with the exception of the Member State in question, shall take part in the vote. 5. Any participating Member State which wishes to withdraw from permanent structured cooperation shall notify its intention to the Council, which shall take note that the Member State in question has ceased to participate. 50) Articles 29 to 39 of Title VI of the EU Treaty, which relate to judicial cooperation in criminal matters and to police cooperation, shall be replaced by Articles 61 to 68 and 69e to 69l of the Treaty on the Functioning of the European Union; they shall be amended as set out in Article 2, points 64, 67 and 68, of this Treaty. The heading of the Title shall be deleted and its number shall become the number of the Title on final provisions. 52) Articles 41 and 42 of the EU Treaty shall be repealed. EN 53) Title VIII, on final provisions, shall be renumbered VI; this Title and Articles 48, 49, 51, 52 and 53 shall be amended as set out respectively in points 55, 56, 60, 61 and 62 below. Article 47 shall be replaced by Article 25, as indicated above in point 44, and Articles 46 and 50 shall be repealed. "Article 32 55) An Article 33 shall be inserted to replace Article 48: 1. The Treaties may be amended in accordance with an ordinary revision procedure. They may also be amended in accordance with simplified revision procedures. 2. The government of any Member State, the European Parliament or the Commission may submit to the Council proposals for the amendment of the Treaties. These proposals may, inter alia, serve either to increase or to reduce the competences conferred on the Union in the Treaties. These proposals shall be submitted to the European Council by the Council and the national Parliaments shall be notified. CIG 1/1/07 REV 1 35 The European Council may decide by a simple majority, after obtaining the consent of the European Parliament, not to convene a Convention should this not be justified by the extent of the proposed amendments. In the latter case, the European Council shall define the terms of reference for a conference of representatives of the governments of the Member States. The amendments shall enter into force after being ratified by all the Member States in accordance with their respective constitutional requirements. Simplified revision procedures The European Council may adopt a decision amending all or part of the provisions of Part Three of the Treaty on the Functioning of the European Union. The European Council shall act by unanimity after consulting the European Parliament and the Commission, and the European Central Bank in the case of institutional changes in the monetary area. That decision shall not enter into force until it is approved by the Member States in accordance with their respective constitutional requirements. 7. Where the Treaty on the Functioning of the European Union or Title V of this Treaty provides for the Council to act by unanimity in a given area or case, the European Council may adopt a decision authorising the Council to act by a qualified majority in that area or in that case. This subparagraph shall not apply to decisions with military implications or those in the area of defence. CIG 1/1/07 REV 1 36 Any initiative taken by the European Council on the basis of the first or 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 referred to in the first or the second subparagraph shall not be adopted. In the absence of opposition, the European Council may adopt the decision. 56) An Article 34 shall be inserted, with the wording of Article 49; the first paragraph shall be amended as follows: (b) in the second sentence, the words "It shall address its application to the Council, which shall act unanimously" shall be replaced by "The European Parliament and national Parliaments shall be notified of this application. The applicant State shall address its application to the Council, which shall act unanimously"; the word "assent" shall be replaced by "consent" and the words "an absolute majority" shall be replaced by "a majority"; 57) The following new Article 35 shall be inserted: 1. Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements. CIG 1/1/07 REV 1 37 3. The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification referred to in paragraph 2, unless the European Council, in agreement with the Member State concerned, unanimously decides to extend this period. A qualified majority shall be defined in accordance with Article 205(3)(b) of the Treaty on the Functioning of the European Union. 58) An Article 36 shall be inserted: The Protocols and Annexes to the Treaties shall form an integral part thereof.". "Article 37 2. The territorial scope of the Treaties is specified in Article 311 of the Treaty on the Functioning of the European Union.". EN 61) An Article 39 shall be inserted, with the wording of Article 52. (a) the first paragraph shall be numbered 1, the languages listed in the second paragraph of the current Article 53 of the Treaty on European Union shall be added to the list in this paragraph and the second paragraph shall be deleted; "2. This Treaty may also be translated into any other languages as determined by Member States among those which, in accordance with their constitutional order, enjoy official status in all or part of their territory. A certified copy of such translations shall be provided by the Member States concerned to be deposited in the archives of the Council.". EN Article 2 2) The title of the Treaty shall be replaced by "Treaty on the Functioning of the European Union". 3) Throughout the Treaty: (b) the words "this Treaty" and "the present Treaty" shall be replaced by "the Treaties" and the verb, where applicable, shall be put in the plural; this point shall not apply to Articles 312 and 313; (d) the words "acting by a qualified majority" and "by a qualified majority" shall be deleted; (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; (h) the word "ecu" shall be replaced by "euro"; CIG 1/1/07 REV 1 41 (j) the abbreviation "ECB" shall be replaced by "European Central Bank"; (l) The words "Committee provided for in Article 114" and "Committee referred to in Article 114" shall be replaced by "Economic and Financial Committee"; (n) the words " Court of First Instance" shall be replaced by "General Court"; 4) In the following Articles, the words "on a proposal from the Commission" shall be replaced by "in accordance with a special legislative procedure": - Article 19(1) - Article 22, second paragraph - Article 95 - Article 166(4) 5) In the following Articles, the words "acting by a simple majority" shall be inserted after "the Council": - Article 144, first paragraph - Article 209 - Article 216 6) In the following Articles, the words "consulting the European Parliament" shall be replaced by "obtaining the consent of the European Parliament": - Article 22, second paragraph. EN - Article 195(1), second subparagraph - Article 233, first paragraph: - Article 255(3) which shall become Article 15(3), third subparagraph. - Article 83(2)(d) - Article 94(9) - Article 225a, sixth paragraph - Article 227, first paragraph - Article 229 - Article 230, first, second and third paragraphs - Article 232, first paragraph - Article 234, first, second and third paragraphs - Article 236 - Article 238 - Article 242 - Article 244 - Article 256, second paragraph and fourth paragraph. - Article 21, fourth paragraph reference to Article 9 (first reference) and Article 40(1) (second reference) - Article 98 reference to Article 3 (first reference) - Article 125 reference to Article 3 CIG 1/1/07 REV 1 43 B. SPECIFIC AMENDMENTS 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 …". 11) Article 1 shall be replaced by the following: 1. This Treaty organises the functioning of the Union and determines the areas, delimitation of, and arrangements for exercising its competences. 12) Article 3(1) shall be repealed. Paragraph 2 thereof shall become Article 8; it shall be amended as set out below in point 21. 14) The text of Article 12 shall become Article 17. CIG 1/1/07 REV 1 44 16) The text of Article 14 shall become Article 22a. It shall be amended as set out below in point 41. 18) The text of Article 16 shall become Article 14. It shall be amended as set out in point 27. 19) Articles 2 to 6 shall be replaced by the following new Title and new Articles: Article 2 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. 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. CIG 1/1/07 REV 1 45 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. Article 3 (a) customs union; (c) monetary policy for the Member States whose currency is the euro; (e) common commercial policy. Article 4 2. Shared competence between the Union and the Member States applies in the following principal areas: (b) social policy, for the aspects defined in this Treaty; (d) agriculture and fisheries, excluding the conservation of marine biological resources; (f) consumer protection; CIG 1/1/07 REV 1 46 (h) trans-European networks; (j) area of freedom, security and justice; 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. Article 5 Specific provisions shall apply to those Member States whose currency is the euro. 3. The Union may take initiatives to ensure coordination of Member States' social policies. 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: (b) industry; (d) tourism; CIG 1/1/07 REV 1 47 (e) education, vocational training, youth and sport; (g) administrative cooperation.". 20) Article 7 shall be replaced by the following title and article: Article 7 21) Article 8 shall be replaced by the wording of Article 3(2). The words "the activities referred to in this Article," shall be replaced by "its activities, ". "In defining and implementing its policies and actions, 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.". "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.". CIG 1/1/07 REV 1 48 25) Article 12 shall be replaced by the wording of Article 153(2). 27) Article 14 shall be replaced by the wording of Article 16; it shall be amended as follows: (b) at the end of the first 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."; "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.". (a) paragraph 1 shall be preceded by the following text, paragraph 1 being renumbered 3 and paragraphs 2 and 3 becoming subparagraphs: 2. The European Parliament shall meet in public, as shall the Council when considering and voting on a draft legislative act."; CIG 1/1/07 REV 1 49 (c) in paragraph 2, which shall become the second subparagraph of paragraph 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; "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. 29) An Article 15a shall be inserted: 1. Everyone has the right to the protection of personal data concerning him or her. The rules adopted on the basis of this Article shall be without prejudice to the specific rules laid down in Article 24 of the Treaty on European Union.". " Article 15b EN 3. Recognising their identity and their specific contribution, the Union shall maintain an open, transparent and regular dialogue with these churches and organisations.". 31) The heading of Part Two shall be replaced by the following heading: "NON-DISCRIMINATION AND CITIZENSHIP OF THE UNION". 33) An Article 17a shall be inserted, with the wording of Article 13; in paragraph 2, the words "when the Council adopts" shall be replaced by "the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may adopt the basic principles" 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. (a) in paragraph 1, the word "complement" shall be replaced by "be additional to"; "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: (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; CIG 1/1/07 REV 1 51 (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. 35) Article 18 shall be amended as follows: (b) paragraph 3 shall be replaced by the following: 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: 37) In Article 21, the following new first paragraph shall be inserted: CIG 1/1/07 REV 1 52 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 17b(2). These provisions shall enter into force after their approval by the Member States in accordance with their respective constitutional requirements.". Internal market 41) An Article 22a shall be inserted, with the wording of Article 14. Paragraph 1 shall be replaced by the following: 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". 44) In Article 23(1), the words "shall be based upon" shall be replaced by "shall comprise". CIG 1/1/07 REV 1 53 Agriculture and fisheries 47) Article 32 shall be amended as follows: 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." 48) Article 36 shall be amended as follows: (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:". (a) paragraph 1 shall be deleted; CIG 1/1/07 REV 1 54 (c) the following paragraphs shall be inserted as new paragraphs 2 and 2a: 2a. 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."; (e) at the beginning of paragraph 4, a change shall be made to the French which does not concern the English version. 50) In Article 39(3)(d), the word "implementing" shall be deleted. (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:"; "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: EN (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.". 52) In Article 44(2), the words "The European Parliament," shall be inserted at the beginning of the paragraph. 54) Article 47 shall be amended as follows: (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. Services (a) in the first paragraph, the words "State of the Community" shall be replaced by "Member State"; CIG 1/1/07 REV 1 56 57) In Article 50, third paragraph, the words "the State" shall be replaced by "the Member State". 59) In Article 53, the words "declare their readiness to" shall be replaced by "shall endeavour to". 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: 61) In Article 58, the following new paragraph 4 shall be added: 62) Article 60 shall become Article 67a. It shall be amended as set out below in point 64. EN 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 2: Policies on border checks, asylum and immigration Chapter 4: Judicial cooperation in criminal matters General provisions "CHAPTER 1 Article 61 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. CIG 1/1/07 REV 1 58 4. The Union shall facilitate access to justice, in particular through the principle of mutual recognition of judicial and extrajudicial decisions in civil matters. The European Council shall define the strategic guidelines for legislative and operational planning within the area of freedom, security and justice. National Parliaments shall 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. Without prejudice to Articles 226 to 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. 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. 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. EN 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. 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 68, and after consulting the European Parliament. 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 acts referred to in this Article shall include necessary provisions on legal safeguards. The acts referred to in Chapters 4 and 5, together with the measures referred to in Article 67 which ensure administrative cooperation in the areas covered by these Chapters, shall be adopted: (b) on the initiative of a quarter of the Member States.". EN 65) Articles 62 to 64 shall be replaced by the following chapter and articles: POLICIES ON BORDER CHECKS, Article 69 (a) ensuring the absence of any controls on persons, whatever their nationality, when crossing internal borders; (c) the gradual introduction of an integrated management system for external borders. (a) the common policy on visas and other short-stay residence permits; (c) the conditions under which nationals of third countries shall have the freedom to travel within the Union for a short period; (e) the absence of any controls on persons, whatever their nationality, when crossing internal borders. EN 4. This Article shall not affect the competence of the Member States concerning the geographical demarcation of their borders, in accordance with international law. 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. (a) a uniform status of asylum for nationals of third countries, valid throughout the Union; (c) a common system of temporary protection for displaced persons in the event of a massive inflow; (e) criteria and mechanisms for determining which Member State is responsible for considering an application 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. EN Article 69b 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: (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; (d) combating trafficking in persons, in particular women and children. 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. CIG 1/1/07 REV 1 63 Article 69c Judicial cooperation in civil matters "CHAPTER 3 Article 69d 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: (b) the cross-border service of judicial and extrajudicial documents; (d) cooperation in the taking of evidence; CIG 1/1/07 REV 1 64 (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; (h) support for the training of the judiciary and judicial staff. 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. Judicial cooperation in criminal matters "CHAPTER 4 Article 69e The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt measures to: CIG 1/1/07 REV 1 65 (b) prevent and settle conflicts of jurisdiction between Member States; (d) facilitate cooperation between judicial or equivalent authorities of the Member States in relation to proceedings in criminal matters and the enforcement of decisions. They shall concern: (b) the rights of individuals in criminal procedure; (d) any other specific aspects of criminal procedure which the Council has identified in advance by a decision; for the adoption of such a decision, the Council shall act unanimously after obtaining the consent of the European Parliament. 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. CIG 1/1/07 REV 1 66 Article 69f 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. 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 68. 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 Articles 10(2) of the Treaty on European Union and Article 208d(1) of this Treaty shall be deemed to be granted and the provisions on enhanced cooperation shall apply. EN 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. 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. (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; (c) the strengthening of judicial cooperation, including by resolution of conflicts of jurisdiction and by close cooperation with the European Judicial Network. 2. In the prosecutions referred to in paragraph 1, and without prejudice to Article 69i, formal acts of judicial procedure shall be carried out by the competent national officials. 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. EN 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 280d(1) of this Treaty shall be deemed to be granted and the provisions on enhanced cooperation shall apply. 3. The regulation 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. CIG 1/1/07 REV 1 69 Police cooperation "CHAPTER 5 Article 69j 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: (b) support for the training of staff, and cooperation on the exchange of staff, on equipment and on research into crime-detection; 3. The Council, acting in accordance with a special legislative procedure, may establish measures concerning operational cooperation between the authorities referred to in this Article. The Council shall act unanimously after consulting the European Parliament. 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 280d(1) of this Treaty shall be deemed to be granted and the provisions on enhanced cooperation shall apply. EN Article 69k 2. In this context, 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: (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. 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. 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 69e and 69j 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.". EN 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. "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.". 72) Article 75 shall be amended as follows: (b) in paragraph 2, the words "the Council" shall be replaced by "the European Parliament and the Council". 73) In Article 78, the following sentence shall be added: 74) In Article 79, the phrase "without prejudice to the powers of the Economic and Social Committee" shall be deleted. EN "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 Committee of the Regions and the Economic and Social Committee.". 76) In Article 85, the following new paragraph 3 shall be added: 77) Article 87 shall be amended as follows: "Five years after the entry into force of the Treaty amending the Treaty on European Union and the Treaty establishing the European Community, the Council, acting on a proposal from the Commission, may adopt a decision repealing this point."; 78) In Article 88, the following new paragraph 4 shall be added: Fiscal provisions CIG 1/1/07 REV 1 73 Approximation of laws 81) Article 95, renumbered 94, shall be amended as follows: (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, …"; (d) in paragraph 10, the words "Community control procedure" shall be replaced by "Union control procedure". 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.". EN 84) The following new Article 97a shall be inserted: 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 intellectual property rights protection throughout the Union and for the setting up of centralised Union-wide authorisation, coordination and supervision arrangements. Economic and monetary policy (a) in paragraph 1, the words "and in accordance with the timetable set out therein" shall be deleted; 86) Article 99 shall be amended as follows: "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."; EN (c) the following two new subparagraphs shall be inserted in paragraph 4: A qualified majority of the other members of the Council shall be defined in accordance with Article 205(3)(a)."; Difficulties in the supply of certain products (energy) "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.". 88) In Article 102, paragraph 2 shall be deleted and paragraph 1 shall not be numbered; "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.". EN 90) Article 104 shall be amended as follows: "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."; (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."; (e) in paragraph 12, at the beginning of the first sentence, the words "its decisions" shall be replaced by "its decisions or recommendations"; "13. When taking the decisions referred to in paragraphs 8, 9, 11 and 12, the Council shall act on a recommendation from the Commission. A qualified majority of the other members of the Council shall be defined in accordance with Article 205(3)(a)."; CIG 1/1/07 REV 1 77 Monetary policy (a) in the first sentence of paragraph 1, "ESCB" shall be replaced by "European System of Central Banks, hereinafter referred to as "ESCB","; "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.". (a) in paragraph 1, first sentence, the word "euro" shall be inserted before "banknotes"; 93) Article 107 shall be amended as follows: (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'"; EN "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 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.". 95) In Article 110, the first four subparagraphs of paragraph 2 shall be deleted. 96) In Article 111, paragraphs 1 to 3 and 5 shall become, respectively, paragraphs 1 to 4 of Article 188o; they shall be amended as set out below in point 174. The text of paragraph 4 shall become paragraph 1 of Article 115a; it shall be amended as set out below in point 100. "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 use of the euro as the single currency. Such measures shall be adopted after consultation of the European Central Bank.". 97) Articles 112 and 113 shall become Articles 245b and 245c respectively; they shall be amended as set out below in points 228 and 229. EN (a) in paragraph 1, first subparagraph, the words "Monetary Committee with advisory status" shall be replaced by "Economic and Financial Committee"; (c) in paragraph 2, the first subparagraph shall be deleted. Provisions specific to Member States whose currency is the euro "CHAPTER 3a Article 114 (a) to strengthen the coordination and surveillance of their budgetary discipline; 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. CIG 1/1/07 REV 1 80 Article 115 Article 115a 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. A qualified majority of the said members shall be defined in accordance with Article 205(3)(a).". 101) Article 116 shall be replaced by the following: 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". (a) adoption of the parts of the broad economic policy guidelines which concern the euro area generally (Article 99(2)); EN (c) the objectives and tasks of the European System of Central Banks (Article 105(1), (2), (3) and (5)); (e) acts of the European Central Bank (Article 110); (g) monetary agreements and other measures relating to exchange-rate policy (Article 188o); (i) decisions establishing common positions on issues of particular relevance for economic and monetary union within the competent international financial institutions and conferences (Article 115a(1)); In the Articles referred to in points (a) to (j), "Member States" shall therefore mean Member States whose currency is the euro. 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: (b) measures relating to excessive deficits concerning those Member States whose currency is the euro (Article 104(6), (7), (8), (12) and (13)). CIG 1/1/07 REV 1 82 102) Article 117 shall be amended as follows: (i) at the beginning of the paragraph, 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"; (v) in the third indent, the words "against the currency of any other Member State" shall be replaced by "against the euro;"; (vii) in the second subparagraph, the words "the development of the ecu" shall be deleted; (i) the first five indents shall become the first five indents of the second paragraph of Article 118; they shall be amended as set out below in point 103. The sixth indent shall be repealed; CIG 1/1/07 REV 1 83 (ii) Article 117(2) shall be replaced by the second sentence of Article 122(2); at the end of the first subparagraph, the words "laid down in Article 121(1)" shall be replaced by "laid down in paragraph 1" and the following new second and third subparagraphs shall be added: The qualified majority of the said members, as referred to in the second subparagraph, shall be defined in accordance with Article 205(3)(a)."; (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,"; (d) paragraphs 4 to 9 shall be repealed. (a) the first subparagraph shall be numbered paragraph 1 and shall be replaced by the text of Article 123(3); the words "of this Treaty" shall be deleted; "If and as long as there are Member States with a derogation, the European Central Bank shall, as regards those Member States:" (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.". EN (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"; 105) Article 119 shall be amended as follows: (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,"; (d) paragraph 4 shall be deleted. (a) in paragraph 1, the words "the Member State concerned" shall be replaced by "a Member State with a derogation"; (c) paragraph 4 shall be deleted. CIG 1/1/07 REV 1 85 108) In Article 122(2), the second sentence shall become the first subparagraph of Article 117(2); it shall be amended as set out above in point 102. The rest of Article 122 shall be repealed. 110) Article 124(1) shall become the new Article 118a; it shall be amended as set out above in point 104. The rest of Article 124 shall be repealed. 111) In Article 125, the words "and in Article 2 of this Treaty" shall be deleted. 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 188b and 188c respectively. Article 131 shall be amended as set out below in point 157 and Article 133 shall be replaced by Article 188c. 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. 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. EN "Article 136a The Tripartite Social Summit for Growth and Employment shall contribute to social dialogue.". (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: In the fields referred to in paragraph 1(c), (d), (f) and (g) of this Article, the Council shall act unanimously, in accordance with a special legislative procedure, after consulting the European Parliament and the said Committees.". (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. CIG 1/1/07 REV 1 87 118) Article 139(2) shall be amended as follows: (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. 120) In Article 143, the second paragraph shall be deleted. 121) Chapter 2 shall be renumbered TITLE X. Education, vocational training, youth and sport 124) Article 149 shall be amended as follows: "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."; EN "- 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."; (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". Culture (a) in the introductory phrase, the words "the Council" 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". EN 127) Article 152 shall be amended as follows: (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."; (d) paragraph 4 shall be amended as follows: (ii) in point (b), the words "by way of derogation from Article 37," shall be deleted; "(c) measures setting high standards of quality and safety for medicinal products and devices for medical use."; EN "5. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Committee of the Regions and the Economic and Social Committee, 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."; "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.". 128) Article 153(2) shall become Article 12; paragraph 2 shall be deleted and paragraphs 3, 4 and 5 shall be renumbered 2, 3 and 4 respectively. EN 129) Article 157 shall be amended as follows: (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". 130) The heading of Title XVII shall be replaced by: "ECONOMIC, SOCIAL AND TERRITORIAL COHESION". (a) in the first paragraph, the words "economic and social cohesion" shall be replaced by "economic, social and territorial cohesion"; (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.". CIG 1/1/07 REV 1 92 133) Article 161 shall be amended as follows: (b) in the second paragraph the words "by the Council " shall be deleted; 134) In Article 162, first paragraph, the words "implementing decisions" shall be replaced by "implementing regulations". 135) The words "AND SPACE" shall be added to the heading of Title XVIII. (a) paragraph 1 shall be replaced by the following: (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,". EN 138) In Article 166, the following new paragraph 5 shall be added: 139) In Article 167, the words "the Council" shall be replaced by "the Union". 141) In Article 170, the last phrase ", which shall be negotiated and concluded in accordance with Article 300" shall be deleted. 142) The following new Article 172a shall be inserted: 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. CIG 1/1/07 REV 1 94 3. The Union shall establish any appropriate relations with the European Space Agency. Environment (climate change) (a) in paragraph 1, the fourth indent shall be replaced by the following: (b) in paragraph 2, second subparagraph, the words "Community inspection procedure" shall be replaced by "a procedure of inspection by the Union"; 144) Article 175 shall be amended as follows: "The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, the Economic and Social Committee and the Committee of the Regions, may make the ordinary legislative procedure applicable to the matters referred to in the first subparagraph."; "The measures necessary for the implementation of these programmes shall be adopted under the terms of paragraph 1 or 2, as the case may be."; CIG 1/1/07 REV 1 95 (d) in paragraph 5, the words "the Council shall, in the act adopting that measure, lay down" shall be replaced by "such measure shall lay down". 145) Title XX "DEVELOPMENT COOPERATION" shall become Chapter I of Title III of Part Five on the Union's external action, and Articles 177 and 179 to 181 shall become Articles 188d to 188g respectively; those articles shall be amended as set out below in points 161 to 164. Article 178 shall be repealed. Energy "TITLE XX ENERGY 1. In the context of the establishment and functioning of the internal market and with regard for the need to preserve and improve the environment, Union policy on energy shall aim, in a spirit of solidarity between Member States, to: (b) ensure security of energy supply in the Union; and (d) promote the interconnection of energy networks. EN Such measures shall not affect a Member State's right to determine the conditions for exploiting its energy resources, its choice between different energy sources and the general structure of its energy supply, without prejudice to Article 175(2)(c). Tourism "TITLE XXI TOURISM 1. The Union shall complement the action of the Member States in the tourism sector, in particular by promoting the competitiveness of Union undertakings in that sector. (a) encouraging the creation of a favourable environment for the development of undertakings in this sector; 2. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall establish specific measures to complement actions within the Member States to achieve the objectives referred to in this Article, excluding any harmonisation of the laws and regulations of the Member States.". EN 149) The following new Title XXII and new Article 176c shall be inserted: Article 176c Union action shall aim to: (b) promote swift, effective operational cooperation within the Union between national civil-protection services; 2. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall establish the measures necessary to help achieve the objectives referred to in paragraph 1, excluding any harmonisation of the laws and regulations of the Member States.". EN 150) The following new Title XXIII and new Article 176d shall be inserted: Article 176d 2. The Union may support the efforts of Member States to improve their administrative capacity to implement Union law. Such action may include facilitating the exchange of information and of civil servants as well as supporting training schemes. No Member State shall be obliged to avail itself of such support. The European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall establish the necessary measures to this end, excluding any harmonisation of the laws and regulations of the Member States. Association of the overseas countries and territories 152) At the end of Article 186, the words "shall be governed by agreements to be concluded subsequently with the unanimous approval of Member States" shall be replaced by "shall be regulated by acts adopted in accordance with Article 187". CIG 1/1/07 REV 1 99 External action by the Union Title I: General provisions on the Union's external action Title III: Cooperation with third countries and humanitarian aid Chapter 2: Economic, financial and technical cooperation with third countries Title IV: Restrictive measures Title VI: The Union's relations with international organisations and third countries Title VII: Solidarity clause. 155) The following new Title I and new Article 188a shall be inserted: Article 188a Common commercial policy CIG 1/1/07 REV 1 100 157) An Article 188b shall be inserted, with the wording of Article 131; it shall be amended as follows: "By establishing a customs union in accordance with Articles 23 to 27, the Union shall contribute, in the common interest, to the harmonious development of world trade, the progressive abolition of restrictions on international trade and on foreign direct investment, and the lowering of customs and other barriers."; 158) An Article 188c shall be inserted, replacing Article 133: 1. The common commercial policy shall be based on uniform principles, particularly with regard to changes in tariff rates, the conclusion of tariff and trade agreements relating to trade in goods and services, and the commercial aspects of intellectual property, foreign direct investment, the achievement of uniformity in measures of liberalisation, export policy and measures to protect trade such as those to be taken in the event of dumping or subsidies. The common commercial policy shall be conducted in the context of the principles and objectives of the Union's external action. 3. Where agreements with one or more third countries or international organisations need to be negotiated and concluded, Article 188n shall apply, subject to the special provisions of this Article. The Commission shall conduct these negotiations in consultation with a special committee appointed by the Council to assist the Commission in this task and within the framework of such directives as the Council may issue to it. The Commission shall report regularly to the special committee and to the European Parliament on the progress of negotiations. EN For the negotiation and conclusion of agreements in the fields of trade in services and the commercial aspects of intellectual property, as well as foreign direct investment, the Council shall act unanimously where such agreements include provisions for which unanimity is required for the adoption of internal rules. (a) in the field of trade in cultural and audiovisual services, where these agreements risk prejudicing the Union's cultural and linguistic diversity; 5. The negotiation and conclusion of international agreements in the field of transport shall be subject to Section 7 of Chapter III of Title III and to Article 188n. Development cooperation 160) A Chapter 1 "DEVELOPMENT COOPERATION" shall be inserted, taking over the heading of Title XX of Part 3. EN (a) paragraphs 1 and 2 shall be replaced by the following: Union development cooperation policy shall have as its primary objective the reduction and, in the long term, the eradication of poverty. The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries."; 162) An Article 188e shall be inserted, with the wording of Article 179; it shall be amended as follows: "1. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt the measures necessary for the implementation of development cooperation policy, which may relate to multiannual cooperation programmes with developing countries or programmes with a thematic approach."; "2. The Union may conclude with third countries and competent international organisations any agreement helping to achieve the objectives referred to in Article 10a of the Treaty on European Union and Article 188d of this Treaty. (c) the current paragraph 2 shall be renumbered "3" and the current paragraph 3 shall be deleted. At the beginning of paragraph 1, the following words shall be inserted: "In order to promote the complementarity and efficiency of their action, the Union". EN Economic, financial and technical cooperation with third countries 166) An Article 188h shall be inserted, with the wording of Article 181a; it shall be amended as follows: "1. Without prejudice to the other provisions of the Treaties, and in particular Articles 188d to 188g, the Union shall carry out economic, financial and technical cooperation measures, including assistance, in particular financial assistance, with third countries other than developing countries. Such measures shall be consistent with the development policy of the Union and shall be carried out within the framework of the principles and objectives of its external action. The Union's operations and those of the Member States shall complement and reinforce each other."; "The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt the measures necessary for the implementation of paragraph 1."; 167) The following new Article 188i shall be inserted: When the situation in a third country requires urgent financial assistance from the Union, the Council shall adopt the necessary decisions on a proposal from the Commission.". EN 168) The following new Chapter 3 and new Article 188j shall be inserted: Article 188j 2. Humanitarian aid operations shall be conducted in compliance with the principles of international law and with the principles of impartiality, neutrality and non-discrimination. 4. The Union may conclude with third countries and competent international organisations any agreement helping to achieve the objectives referred to in paragraph 1 and in Article 10a of the Treaty on European Union. 5. In order to establish a framework for joint contributions from young Europeans to the humanitarian aid operations of the Union, a European Voluntary Humanitarian Aid Corps shall be set up. The European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall determine the rules and procedures for the operation of the Corps. 7. The Union shall ensure that its humanitarian aid operations are coordinated and consistent with those of international organisations and bodies, in particular those forming part of the United Nations system.". EN 169) The following Title IV and Article 188k shall be inserted, replacing Article 301: Article 188k 2. Where a decision adopted in accordance with Chapter 2 of Title V of the Treaty on European Union so provides, the Council may adopt restrictive measures under the procedure referred to in paragraph 1 against natural or legal persons and groups or non-State entities. International agreements 171) The following Article 188 shall be inserted: 1. The Union may conclude an agreement with one or more third countries or international organisations where the Treaties so provide or where the conclusion of an agreement is necessary in order to achieve, within the framework of the Union's policies, one of the objectives referred to in the Treaties, or is provided for in a legally binding Union act or is likely to affect common rules or alter their scope. CIG 1/1/07 REV 1 106 172) An Article 188m shall be inserted, with the wording of Article 310. The word "States" shall be replaced by "third countries". "Article 188n 2. The Council shall authorise the opening of negotiations, adopt negotiating directives, authorise the signing of agreements and conclude them. 4. The Council may address directives to the negotiator and designate a special committee in consultation with which the negotiations must be conducted. 6. The Council, on a proposal by the negotiator, shall adopt a decision concluding the agreement. (a) after obtaining the consent of the European Parliament in the following cases: (ii) agreement on Union accession to the European Convention for the Protection of Human Rights and Fundamental Freedoms; CIG 1/1/07 REV 1 107 (iv) agreements with important budgetary implications for the Union; The European Parliament and the Council may, in an urgent situation, agree upon a time-limit for consent. 7. When concluding an agreement, the Council may, by way of derogation from paragraphs 5, 6 and 9, authorise the negotiator to approve on the Union's behalf modifications to the agreement where it provides for them to be adopted by a simplified procedure or by a body set up by the agreement. The Council may attach specific conditions to such authorisation. However, it shall act unanimously when the agreement covers a field for which unanimity is required for the adoption of a Union act as well as for association agreements and the agreements referred to in Article 188h with the States which are candidates for accession. The Council shall also act unanimously for the agreement on accession of the Union to the European Convention for the Protection of Human Rights and Fundamental Freedoms; the decision concluding this agreement shall enter into force after it has been approved by the Member States in accordance with their respective constitutional requirements. 10. The European Parliament shall be immediately and fully informed at all stages of the procedure. CIG 1/1/07 REV 1 108 174) An Article 188o shall be inserted, with the wording of paragraphs 1 to 3 and 5 of Article 111 and paragraph 1 shall be split into two subparagraphs, the last two sentences becoming the second subparagraph; the Article shall be amended as follows: "By way of derogation from Article 188n, the Council, either on a recommendation from the European Central Bank or on a recommendation from the Commission and after consulting the European Central Bank, in an endeavour to reach a consensus consistent with the objective of price stability, may conclude formal agreements on an exchange-rate system for the euro in relation to the currencies of third States. The Council shall act unanimously after consulting the European Parliament and in accordance with the procedure provided for in paragraph 3.". (b) in paragraph 2, the words "non-Community currencies" shall be replaced by "currencies of third States"; (d) paragraph 5 shall be renumbered "4". 175) The following Title VI and Articles 188p and 188q shall be inserted, with Article 188p replacing Articles 302 to 304: Article 188p The Union shall also maintain such relations as are appropriate with other international organisations. EN Article 188q 2. Union delegations shall be placed under the authority of the High Representative of the Union for Foreign Affairs and Security Policy. They shall act in close cooperation with Member States' diplomatic and consular missions.". 176) The following new Title VII and new Article 188r shall be inserted: Article 188r (a) - prevent the terrorist threat in the territory of the Member States; - assist a Member State in its territory, at the request of its political authorities, in the event of a terrorist attack; 2. Should a Member State be the object of a terrorist attack or the victim of a natural or man-made disaster, the other Member States shall assist it at the request of its political authorities. To that end, the Member States shall coordinate between themselves in the Council. EN For the purposes of this paragraph and without prejudice to Article 207, the Council shall be assisted by the Political and Security Committee with the support of the structures developed in the context of the common security and defence policy and by the Committee referred to in Article 65; the two committees shall, if necessary, submit joint opinions. Institutional and budgetary provisions European Parliament 179) Article 190 shall be amended as follows: (b) paragraph 4, renumbered 1, shall be amended as follows: CIG 1/1/07 REV 1 111 (ii) the second subparagraph shall be replaced by the following: (c) in paragraph 5, renumbered 2, the words ", acting by means of regulations on its own initiative in accordance with a special legislative procedure" shall be inserted after "The European Parliament". 181) In Article 192, the first paragraph shall be deleted; in the second paragraph, the words "of its Members" shall be replaced by "of its component members" and the following sentence shall be added at the end of the paragraph: "If the Commission does not submit a proposal, it shall inform the European Parliament of the reasons". (a) in the first paragraph, the words "of its Members" shall be replaced by "of its component Members"; "The detailed provisions governing the exercise of the right of inquiry shall be determined by the European Parliament, acting by means of regulations on its own initiative in accordance with a special legislative procedure, after obtaining the consent of the Council and the Commission.". (a) in the first subparagraph of paragraph 1, the words at the beginning "The European Parliament shall appoint an Ombudsman, empowered to receive complaints" shall be replaced by "A European Ombudsman, elected by the European Parliament, shall be empowered to receive complaints"; in the last part of the sentence, the words "and the Court of First Instance acting in their judicial role" shall be replaced by: "acting in its judicial role" and the following final sentence shall be added: "He or she shall examine such complaints and report on them."; EN (c) in paragraph 3, the words "from any body" shall be replaced by "from any institution, body, office or agency"; 184) In the second paragraph of Article 196, the words "in extraordinary session" shall be replaced by "in extraordinary part-session" and the words "of its Members" shall be replaced by "of its component members". (a) the first paragraph shall be deleted; (c) the fourth paragraph shall be replaced by the following: "The European Council and the Council shall be heard by the European Parliament in accordance with the conditions laid down in the Rules of Procedure of the European Council and those of the Council.". 187) In the second paragraph of Article 199, the words "... manner laid down in its Rules of Procedure" shall be replaced by "manner laid down in the Treaties and in its Rules of Procedure". "If the motion of censure is carried by a two-thirds majority of the votes cast, representing a majority of the component members of the European Parliament, the members of the Commission shall resign as a body and the High Representative of the Union for Foreign Affairs and Security Policy shall resign from duties that he or she carries out in the Commission. They shall remain in office and continue to deal with current business until they are replaced in accordance with Article 9d of the Treaty on European Union. In this case, the term of office of the members of the Commission appointed to replace them shall expire on the date on which the term of office of the members of the Commission obliged to resign as a body would have expired.". EN 189) The following new Section 1a and new Articles 201a and 201b shall be inserted: Article 201a Paragraph 4 of Article 9c of the Treaty on European Union and paragraph 2 of Article 205 of this Treaty shall apply to the European Council when it is acting by a qualified majority. Where the European Council decides by vote, its President and the President of the Commission shall not take part in the vote. 2. The President of the European Parliament may be invited to be heard by the European Council. 4. The European Council shall be assisted by the General Secretariat of the Council. The European Council shall adopt by a qualified majority: (b) a decision on the Presidency of Council configurations, other than that of Foreign Affairs, in accordance with Article 9c(9) of the Treaty on European Union.". EN 190) Articles 202 and 203 shall be repealed. (a) paragraphs 1 and 2 shall be replaced by the following: 2. By way of derogation from paragraph 4 of Article 9c of the Treaty on European Union, as from 1 November 2014 and subject to the provisions laid down in the Protocol on transitional provisions, where the Council does not act on a proposal from the Commission or from the High Representative of the Union for Foreign Affairs and Security Policy, the qualified majority shall be defined as at least 72 % of the members of the Council, representing Member States comprising at least 65 % of the population of the Union. (a) A qualified majority shall be defined as at least 55 % of the members of the Council representing the participating Member States, comprising at least 65 % of the population of these States. (b) By way of derogation from point (a), where the Council does not act on a proposal from the Commission or from the High Representative of the Union for Foreign Affairs and Security Policy, the qualified majority shall be defined as at least 72 % of the members of the Council representing the participating Member States, comprising at least 65 % of the population of these States.". CIG 1/1/07 REV 1 115 192) Article 207 shall be replaced by the following: 1. A committee consisting of the Permanent Representatives of the Governments of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the latter. The Committee may adopt procedural decisions in cases provided for in the Council's Rules of Procedure. The Council shall decide on the organisation of the General Secretariat by a simple majority. 193) In Article 208, the following sentence shall be added at the end of the Article: "If the Commission does not submit a proposal, it shall inform the Council of the reasons.". 195) Article 210 shall be replaced by the following: CIG 1/1/07 REV 1 116 Commission "In accordance with Article 9d(5) of the Treaty on European Union, the members of the Commission shall be chosen on the basis of a system of rotation established unanimously by the European Council and on the basis of the following principles: (b) subject to point (a), each successive Commission shall be so composed as to reflect satisfactorily the demographic and geographical range of all the Member States.". 198) In Article 213, paragraph 1 shall be deleted and paragraph 2 shall not be numbered; its first two paragraphs shall be merged and shall read as follows: 199) Article 214 shall be repealed. (a) the second paragraph shall be replaced by the following two paragraphs: CIG 1/1/07 REV 1 117 The Council may, acting unanimously on a proposal from the President of the Commission, decide that such a vacancy need not be filled, in particular when the remainder of the member's term of office is short."; "In the event of resignation, compulsory retirement or death, the High Representative of the Union for Foreign Affairs and Security Policy shall be replaced, for the remainder of his or her term of office, in accordance with Article 9e(1) of the Treaty on European Union"; "In the case of the resignation of all the members of the Commission, they shall remain in office and continue to deal with current business until they have been replaced, for the remainder of their term of office, in accordance with Article 9d of the Treaty on European Union.". 202) In Article 218, paragraph 1 shall be deleted; paragraph 2 shall be renumbered 1 and the words "in accordance with the provisions of this Treaty" shall be deleted. A paragraph 2 shall be inserted, with the wording of Article 212. CIG 1/1/07 REV 1 118 Court of Justice 205) Article 220 shall be repealed. 207) In Article 223, the words ", after consultation of the panel provided for in Article 224a" shall be added at the end of the first paragraph. 209) The following new Article 224a shall be inserted: A panel shall be set up in order to give an opinion on candidates' suitability to perform the duties of Judge and Advocate-General of the Court of Justice and the General Court before the governments of the Member States make the appointments referred to in Articles 223 and 224. 210) In Article 225, paragraph 1, first subparagraph, first sentence, the words "assigned to a judicial panel and those" shall be replaced by "assigned to a specialised court set up under Article 225a and those" and in paragraph 2, first subparagraph, the words "set up under Article 225a" shall be deleted. EN (a) the first paragraph shall be replaced by the following text: "The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may establish specialised courts attached to the General Court to hear and determine at first instance certain classes of action or proceeding brought in specific areas. The European Parliament and the Council shall act by means of regulations either on a proposal from the Commission after consultation of the Court of Justice or at the request of the Court of Justice after consultation of the Commission."; (c) in the third paragraph, the words "the panel" shall be replaced by "the specialised court"; 212) Article 228 shall be amended as follows: "If the Commission considers that the Member State concerned has not taken the necessary measures to comply with judgment of the Court, it may bring the case before the Court of Justice of the European Union after giving that State the opportunity to submit its observations. It shall specify the amount of the lump sum or penalty payment to be paid by the Member State concerned which it considers appropriate in the circumstances." (b) the following new paragraph 3 shall be added: If the Court finds that there is an infringement it may impose a lump sum or penalty payment on the Member State concerned not exceeding the amount specified by the Commission. The payment obligation shall take effect on the date set by the Court in its judgment." EN 214) Article 230 shall be amended as follows: (b) in the third paragraph, the words "by the Court of Auditors and by the ECB for the purpose of protecting their prerogatives" shall be replaced by "by the Court of Auditors, by the European Central Bank and by the Committee of the Regions for the purpose of protecting their prerogatives"; "Any natural or legal person may, under the conditions laid down in the first and second paragraphs, institute proceedings against an act addressed to that person or which is of direct and individual concern to him or her, and against a regulatory act which is of direct concern to him or her and does not entail implementing measures."; "Acts setting up bodies, offices and agencies of the Union may lay down specific conditions and arrangements concerning actions brought by natural or legal persons against acts of these bodies, offices or agencies intended to produce legal effects in relation to them.". EN 216) Article 232 shall be amended as follows: (b) in the third paragraph, the words ", body, office or agency" shall be inserted after "an institution"; 217) In Article 233, first paragraph, the words "or institutions" shall be deleted; the third paragraph shall be deleted. 219) In Article 235, the reference to the second paragraph of Article 288 shall be replaced by a reference to the second and third paragraphs of Article 288. "Article 235a Such a request must be made within one month from the date of such determination. The Court shall rule within one month from the date of the request.". EN 222) In Article 237(d), at the beginning of the second sentence, the word "Governing" shall be inserted before "Council" and the words "of Justice" shall be deleted at the end, after the word "Court". "Article 240a However, the Court shall have jurisdiction to monitor compliance with Article 25 of the Treaty on European Union and to rule on proceedings, brought in accordance with the conditions laid down in the fourth paragraph of Article 230 of this Treaty, reviewing the legality of decisions providing for restrictive measures against natural or legal persons adopted by the Council on the basis of Chapter 2 of Title V of the Treaty on European Union. In exercising its powers regarding the provisions of Sections 4 and 5 of Chapter IV of Title III relating to the area of freedom, security and justice, the Court of Justice of the European Union shall have no jurisdiction to review the validity or proportionality of operations carried out by the police or other law-enforcement services of a Member State or the exercise of the responsibilities incumbent upon Member States with regard to the maintenance of law and order and the safeguarding of internal security.". "Article 241 CIG 1/1/07 REV 1 123 225) In Article 242, second sentence, the words "of Justice" after "Court" shall be deleted. "The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may amend the provisions of the Statute, with the exception of Title I and Article 64. The European Parliament and the Council shall act either at the request of the Court of Justice and after consultation of the Commission, or on a proposal from the Commission and after consultation of the Court of Justice.". 227) The following Section 4a and Article 245a shall be inserted: THE EUROPEAN CENTRAL BANK 1. The European Central Bank, together with the national central banks, shall constitute the European System of Central Banks. The European Central Bank, together with the national central banks of the Member States whose currency is the euro, which constitute the Eurosystem, shall conduct the monetary policy of the Union. 3. The European Central Bank shall have legal personality. It alone may authorise the issue of the euro. It shall be independent in the exercise of its powers and in the management of its finances. Union institutions, bodies, offices and agencies and the governments of the Member States shall respect that independence. EN 5. Within the areas falling within its responsibilities, the European Central Bank shall be consulted on all proposed Union acts, and all proposals for regulation at national level, and may give an opinion.". (a) in paragraph 1, the words "of the Member States whose currency is the euro" shall be inserted at the end after "national central banks"; 229) An Article 245c shall be inserted, with the wording of Article 113. 230) In Article 246, the word "Union's" shall be inserted before "audit" and the following new paragraph shall be added as a second paragraph: 231) Article 247 shall be amended as follows: (b) in paragraph 2, renumbered 1, the word "countries" shall be replaced by "States"; CIG 1/1/07 REV 1 125 232) In Article 248, the word "bodies" shall be replaced by "bodies, offices or agencies", singular or plural as the case may be. 233) The heading of Chapter 2 shall be replaced by the following "LEGAL ACTS OF THE UNION, ADOPTION PROCEDURES AND OTHER PROVISIONS". "SECTION 1 THE LEGAL ACTS OF THE UNION". (a) the first paragraph shall be replaced by the following: (b) the fourth paragraph shall be replaced by the following: 236) The following new Articles 249a to 249d shall be inserted: 1. The ordinary legislative procedure shall consist in the joint adoption by the European Parliament and the Council of a regulation, directive or decision on a proposal from the Commission. This procedure is defined in Article 251. CIG 1/1/07 REV 1 126 3. Legal acts adopted by legislative procedure shall constitute legislative acts. Article 249b The objectives, content, scope and duration of the delegation of power shall be explicitly defined in the legislative acts. The essential elements of an area shall be reserved for the legislative act and accordingly shall not be the subject of a delegation of power. (a) the European Parliament or the Council may decide to revoke the delegation; For the purposes of (a) and (b), the European Parliament shall act by a majority of its component members, and the Council by a qualified majority. Article 249c 2. Where uniform conditions for implementing legally binding Union acts are needed, those acts shall confer implementing powers on the Commission, or, in duly justified specific cases and in the cases provided for in Articles 11 and 13 of the Treaty on European Union, on the Council. EN 4. The word "implementing" shall be inserted in the title of implementing acts. The Council shall adopt recommendations. It shall act on a proposal from the Commission in all cases where the Treaties provide that it shall adopt acts on a proposal from the Commission. It shall act unanimously in those areas in which unanimity is required for the adoption of a Union act. The Commission, and the European Central Bank in the specific cases provided for in the Treaties, shall adopt recommendations.". 237) A Section 2 "PROCEDURES FOR THE ADOPTION OF ACTS AND OTHER PROVISIONS" shall be inserted before Article 250. "1. Where, pursuant to the Treaties, the Council acts on a proposal from the Commission, the Council may amend that proposal only by acting unanimously, except in the cases referred to in Articles 270a and 268, Article 251(10) and (13), Article 272 and the second paragraph of Article 273.". (a) in paragraph 1 the words "to this Article" shall be replaced by "to the ordinary legislative procedure"; "First reading CIG 1/1/07 REV 1 128 4. If the Council approves the European Parliament's position, the act concerned shall be adopted in the wording which corresponds to the position of the European Parliament. 6. The Council shall inform the European Parliament fully of the reasons which led it to adopt its position at first reading. The Commission shall inform the European Parliament fully of its position. 7. If, within three months of such communication, the European Parliament: (b) rejects, by a majority of its component members, the Council's position at first reading, the proposed act shall be deemed not to have been adopted; 8. If, within three months of receiving the European Parliament's amendments, the Council, acting by a qualified majority: (b) does not approve all the amendments, the President of the Council, in agreement with the President of the European Parliament, shall within six weeks convene a meeting of the Conciliation Committee. Conciliation CIG 1/1/07 REV 1 129 11. The Commission shall take part in the Conciliation Committee's proceedings and shall take all necessary initiatives with a view to reconciling the positions of the European Parliament and the Council. Third reading 14. The periods of three months and six weeks referred to in this Article shall be extended by a maximum of one month and two weeks respectively at the initiative of the European Parliament or the Council. 15. Where, in the cases provided for in the Treaties, a legislative act is submitted to the ordinary legislative procedure on the initiative of a group of Member States, on a recommendation by the European Central Bank, or at the request of the Court of Justice, paragraph 2, the second sentence of paragraph 6, and paragraph 9 shall not apply. 240) Article 252 shall be replaced by the following: CIG 1/1/07 REV 1 130 241) Article 253 shall be replaced by the following: Legal acts shall state the reasons on which they are based and shall refer to any proposals, initiatives, recommendations, requests or opinions required by the Treaties. 242) Article 254 shall be replaced by the following: Legislative acts adopted under a special legislative procedure shall be signed by the President of the institution which adopted them. 2. Non-legislative acts adopted in the form of regulations, directives or decisions, when the latter do not specify to whom they are addressed, shall be signed by the President of the institution which adopted them. Other directives, and decisions which specify to whom they are addressed, shall be notified to those to whom they are addressed and shall take effect upon such notification.". "Article 254a CIG 1/1/07 REV 1 131 2. In compliance with the Staff Regulations and the Conditions of Employment adopted on the basis of Article 283, the European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall establish provisions to that end.". 245) In Article 256, first paragraph, the words "Decisions of the Council or of the Commission which impose" shall be replaced by "Acts of the Council, the Commission or the European Central Bank which impose". 246) The following new Chapter 3 and Article shall be inserted; Chapters 3 and 4 shall become Section 1 and Section 2 respectively and Chapter 5 shall be renumbered 4: Article 256a 2. The Committee of the Regions shall consist of representatives of regional and local bodies who either hold a regional or local authority electoral mandate or are politically accountable to an elected assembly. 4. The members of the Committee of the Regions and the Economic and Social Committee shall not be bound by any mandatory instructions. They shall be completely independent in the performance of their duties, in the Union's general interest. CIG 1/1/07 REV 1 132 Economic and Social Committee 248) In Article 258, the second and third paragraphs shall be replaced by the following paragraph: 249) Article 259 shall be amended as follows: (b) paragraph 2 shall be replaced by the following: 250) In Article 260, in the first paragraph, the words "two years" shall be replaced by "two and a half years" and in the third paragraph, the words "of the European Parliament," shall be inserted before "of the Council". (a) a reference to the European Parliament shall be inserted before the reference to the Council in the first, second and third paragraphs; (c) in the third paragraph, the words "and that of the specialised section" shall be deleted. CIG 1/1/07 REV 1 133 Committee of the Regions (a) the first paragraph shall be deleted; "The Council, acting unanimously on a proposal from the Commission, shall adopt a decision determining the Committee's composition."; (d) the last paragraph shall be deleted. 254) Article 265 shall be amended as follows: (b) the fourth paragraph shall be deleted; European Investment Bank CIG 1/1/07 REV 1 134 256) In Article 267(b), the word "progressive" shall be deleted and the words "or functioning" shall be inserted after "establishment". 257) Article 268 shall be amended as follows: (b) the second subparagraph shall be replaced by the following: (c) the following new paragraphs shall be inserted: 3. The implementation of expenditure shown in the budget shall require the prior adoption of a legally binding Union act providing a legal basis for its action and for the implementation of the corresponding expenditure in accordance with the regulation referred to in Article 279, except in cases for which that law provides. 5. The budget shall be implemented in accordance with the principle of sound financial management. Member States shall cooperate with the Union to ensure that the appropriations entered in the budget are used in accordance with this principle. CIG 1/1/07 REV 1 135 The Union's own resources 259) Article 269 shall be amended as follows: "The Union shall provide itself with the means necessary to attain its objectives and carry through its policies."; "The Council, acting in accordance with a special legislative procedure, shall unanimously and after consulting the European Parliament adopt a decision laying down the provisions relating to the system of own resources of the Union. In this context it may establish new categories of own resources or abolish an existing category. That decision shall not enter into force until it is approved by the Member States in accordance with their respective constitutional requirements. 260) Article 270 shall be repealed. EN 261) The following new Chapter 2 and new Article 270a shall be inserted: Article 270a It shall be established for a period of at least five years. 2. The Council, acting in accordance with a special legislative procedure, shall adopt a regulation laying down the multiannual financial framework. The Council shall act unanimously after obtaining the consent of the European Parliament, which shall be given by a majority of its component members. 3. The financial framework shall determine the amounts of the annual ceilings on commitment appropriations by category of expenditure and of the annual ceiling on payment appropriations. The categories of expenditure, limited in number, shall correspond to the Union's major sectors of activity. 4. Where no Council regulation determining a new financial framework has been adopted by the end of the previous financial framework, the ceilings and other provisions corresponding to the last year of that framework shall be extended until such time as that act is adopted. CIG 1/1/07 REV 1 137 The Union's annual budget 263) An Article 270b shall be inserted, with the wording of Article 272(1). 265) Article 272(1) shall become Article 270b and paragraphs 2 to 10 shall be replaced by the following: 1. With the exception of the European Central Bank, each institution shall, before 1 July, draw up estimates of its expenditure for the following financial year. The Commission shall consolidate these estimates in a draft budget which may contain different estimates. 2. The Commission shall submit a proposal containing the draft budget to the European Parliament and to the Council not later than 1 September of the year preceding that in which the budget is to be implemented. 3. The Council shall adopt its position on the draft budget and forward it to the European Parliament not later than 1 October of the year preceding that in which the budget is to be implemented. The Council shall inform the European Parliament in full of the reasons which led it to adopt its position. (a) approves the position of the Council, the budget shall be adopted; CIG 1/1/07 REV 1 138 (c) adopts amendments by a majority of its component members, the amended draft shall be forwarded to the Council and to the Commission. The President of the European Parliament, in agreement with the President of the Council, shall immediately convene a meeting of the Conciliation Committee. However, if within ten days of the draft being forwarded the Council informs the European Parliament that it has approved all its amendments, the Conciliation Committee shall not meet. The Commission shall take part in the Conciliation Committee's proceedings and shall take all the necessary initiatives with a view to reconciling the positions of the European Parliament and the Council. 7. If, within the period of fourteen days referred to in paragraph 6: (b) the European Parliament, acting by a majority of its component members, and the Council both reject the joint text, or if one of these institutions rejects the joint text while the other one fails to take a decision, a new draft budget shall be submitted by the Commission; or CIG 1/1/07 REV 1 139 (d) the European Parliament approves the joint text whilst the Council rejects it, the European Parliament may, within fourteen days from the date of the rejection by the Council and acting by a majority of its component members and three-fifths of the votes cast, decide to confirm all or some of the amendments referred to in paragraph 4(c). Where a European Parliament amendment is not confirmed, the position agreed in the Conciliation committee on the budget heading which is the subject of the amendment shall be retained. The budget shall be deemed to be definitively adopted on this basis. 9. When the procedure provided for in this Article has been completed, the President of the European Parliament shall declare that the budget has been definitively adopted. 266) Article 273 shall be amended as follows: (b) in the second paragraph, the words "on a proposal from the Commission," shall be inserted after "The Council" and the following shall be added at the end:"in accordance with the Regulations made pursuant to Article 279. The Council shall forward the decision immediately to the European Parliament."; CIG 1/1/07 REV 1 140 (d) the last paragraph shall be replaced by the following: It shall enter into force thirty days following its adoption if the European Parliament, acting by a majority of its component members, has not decided to reduce this expenditure within that time-limit.". (a) the first paragraph shall be deleted; (c) in the last paragraph, the words "the Council, the Commission and the Court of Justice" shall be replaced by "the European Council and the Council, the Commission and the Court of Justice of the European Union". 268) A Chapter 4 "IMPLEMENTATION OF THE BUDGET AND DISCHARGE", shall be inserted before Article 274, which shall be amended as follows: (b) the second paragraph shall be replaced by the following: "The regulations shall lay down the control and audit obligations of the Member States in the implementation of the budget and the resulting responsibilities. They shall also lay down the responsibilities and detailed rules for each institution concerning its part in effecting its own expenditure.". EN "The Commission shall also submit to the European Parliament and to the Council an evaluation report on the Union's finances based on the results achieved, in particular in relation to the indications given by the European Parliament and the Council pursuant to Article 276". Common financial provisions 272) Article 277 shall be replaced by the following: "The multiannual financial framework and the annual budget shall be drawn up in euro.". (a) paragraph 1 shall be replaced by the following: (a) the financial rules which determine in particular the procedure to be adopted for establishing and implementing the budget and for presenting and auditing accounts; (b) in paragraph 2, the word "unanimously" and the words "obtaining the opinion of" shall be deleted. EN "Article 279a Article 279b Combating fraud 276) Article 280 shall be amended as follows: (b) the following words: "and in all the Union's institutions, bodies, offices and agencies" shall be inserted in paragraph 4, after the words: "in the Member States" and the last sentence in the paragraph shall be deleted. 277) A Title III "ENHANCED COOPERATION" shall be inserted after Article 280. EN "Article 280a Such cooperation shall not undermine the internal market or economic, social and territorial cohesion. It shall not constitute a barrier to or discrimination in trade between Member States, nor shall it distort competition between them. Any enhanced cooperation shall respect the competences, rights and obligations of those Member States which do not participate in it. Those Member States shall not impede its implementation by the participating Member States. 1. When enhanced cooperation is being established, it shall be open to all Member States, subject to compliance with any conditions of participation laid down by the authorising decision. It shall also be open to them at any other time, subject to compliance with the acts already adopted within that framework, in addition to those conditions. 2. The Commission and, where appropriate, the High Representative of the Union for Foreign Affairs and Security Policy shall keep the European Parliament and the Council regularly informed regarding developments in enhanced cooperation. 1. Member States which wish to establish enhanced cooperation between themselves in one of the areas covered by the Treaties, with the exception of fields of exclusive competence and the common foreign and security policy, shall address a request to the Commission, specifying the scope and objectives of the enhanced cooperation proposed. The Commission may submit a proposal to the Council to that effect. In the event of the Commission not submitting a proposal, it shall inform the Member States concerned of the reasons for not doing so. CIG 1/1/07 REV 1 144 2. The request of the Member States which wish to establish enhanced cooperation between themselves within the framework of the common foreign and security policy shall be addressed to the Council. It shall be forwarded to the High Representative of the Union for Foreign Affairs and Security Policy, who shall give an opinion on whether the enhanced cooperation proposed is consistent with the Union's common foreign and security policy, and to the Commission, which shall give its opinion in particular on whether the enhanced cooperation proposed is consistent with other Union policies. It shall also be forwarded to the European Parliament for information. Article 280e Unanimity shall be constituted by the votes of the representatives of the participating Member States only. Article 280f However, if the Commission considers that the conditions of participation have not been fulfilled, it shall indicate the arrangements to be adopted to fulfil those conditions and shall set a deadline for re-examining the request. On the expiry of that deadline, it shall re-examine the request, in accordance with the procedure set out in the second subparagraph. If the Commission considers that the conditions of participation have still not been met, the Member State concerned may refer the matter to the Council, which shall decide on the request. The Council shall act in accordance with Article 280e. It may also adopt the transitional measures referred to in the second subparagraph on a proposal from the Commission. EN The Council shall confirm the participation of the Member State concerned, after consulting the High Representative of the Union for Foreign Affairs and Security Policy and after noting, where necessary, that the conditions of participation have been fulfilled. The Council, on a proposal from the High Representative, may also adopt any transitional measures necessary with regard to the application of the acts already adopted within the framework of enhanced cooperation. However, if the Council considers that the conditions of participation have not been fulfilled, it shall indicate the arrangements to be adopted to fulfil those conditions and shall set a deadline for re-examining the request for participation. Article 280g Article 280h 2. Where a provision of the Treaties which may be applied in the context of enhanced cooperation stipulates that the Council shall adopt acts under a special legislative procedure, the Council, acting unanimously in accordance with the arrangements laid down in Article 280e, may adopt a decision stipulating that it will act under the ordinary legislative procedure. The Council shall act after consulting the European Parliament. CIG 1/1/07 REV 1 146 Article 280i General and final provisions 280) Articles 281, 286, 293 and 305 shall be repealed. 282) At the beginning of Article 283, the words "The Council shall, acting by a qualified majority on a proposal from the Commission and after consulting" shall be replaced by "The European Parliament and the Council shall, acting by means of regulations in accordance with the ordinary legislative procedure on a proposal from the Commission and after consulting" and at the end the words "servants of those Communities" shall be replaced by the words "servants of the Union". "Notwithstanding the second paragraph, the European Central Bank shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by it or by its servants in the performance of their duties.". 285) In Article 291, the words ", the European Monetary Institute" shall be deleted. CIG 1/1/07 REV 1 147 287) Article 299 shall be amended as follows: Paragraph 2 shall not be numbered; (c) at the beginning of the second paragraph, the words "The Council shall, when adopting the relevant measures referred to in the second subparagraph, take into account areas such as" shall be replaced by "The measures referred to in the first paragraph concern in particular areas such as"; 288) Articles 300 and 301 shall be replaced by Articles 188n and 188k respectively and Articles 302 to 304 shall be replaced by Article 188p. "Article 308 CIG 1/1/07 REV 1 148 2. Using the procedure for monitoring the subsidiarity principle referred to in Article 5(3) of the Treaty on European Union, the Commission shall draw national Parliaments' attention to proposals based on this Article. 4. This Article cannot serve as a basis for attaining objectives pertaining to the common foreign and security policy and shall respect the limits set out in Article 25, second paragraph, of the Treaty on European Union.". "Article 308a - 269, third and fourth paragraphs, - 308, and 291) Article 309 shall be replaced by the following: For the purposes of Article 7 of the Treaty on European Union on the suspension of certain rights resulting from Union membership, the member of the European Council or of the Council representing the Member State in question shall not take part in the vote and the Member State in question shall not be counted in the calculation of the one third or four fifths of Member States referred to in paragraphs 1 and 2 of that Article. Abstentions by members present in person or represented shall not prevent the adoption of decisions referred to in paragraph 2 of that Article. Where, following a decision to suspend voting rights adopted pursuant to paragraph 3 of that Article, the Council acts by a qualified majority on the basis of a provision of the Treaties, that qualified majority shall be defined in accordance with Article 205(3)(b), or, where the Council acts on a proposal from the Commission or from the High Representative of the Union for Foreign Affairs and Security Policy, in accordance with Article 205(3)(a). CIG 1/1/07 REV 1 149 For the purposes of that Article, the European Parliament shall act by a two-thirds majority of the votes cast, representing the majority of its component members.". 293) Article 311 shall be replaced by a text combining Article 299(2), first subparagraph, and Article 299(3) to (6); the text shall be amended as follows: "In addition to the provisions of Article 37 of the Treaty on European Union relating to the territorial scope of the Treaties, the following provisions shall apply:"; (c) in paragraph 3, renumbered 2, the words "of this Treaty" shall be deleted; (e) the following new paragraph shall be inserted at the end of the Article: 294) Article 314 shall be replaced by the following: CIG 1/1/07 REV 1 150 FINAL PROVISIONS This Treaty is concluded for an unlimited period. 1. Protocol No 11 annexed to this Treaty contains the amendments to the Protocols annexed to the Treaty on European Union, to the Treaty establishing the European Community and to the Treaty establishing the European Atomic Energy Community. Article 5 2. The cross references to the articles, parts, titles, chapters and sections of the Treaty on European Union and of the Treaty on the Functioning of the European Union, as well as between them, shall be adapted accordingly. The same shall apply as regards references to the articles, parts, titles, chapters and sections of the Treaty on European Union and of the Treaty on the Functioning of the European Union contained in the other treaties and acts of primary legislation on which the Union is founded. Article 6 CIG 1/1/07 REV 1 151 CIG 1/1/07 REV 1 152 2. This Treaty shall enter into force on 1 January 2009, provided that all the instruments of ratification have been deposited, or, failing that, on the first day of the month following the deposit of the instrument of ratification by the last signatory State to take this step. This Treaty, drawn up in a single original in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, the texts in each of these languages being equally authentic, shall be deposited in the archives of the Government of the Italian Republic, which will transmit a certified copy to each of the governments of the other signatory States. Done at, …