Treaty establishing a Constitution for Europe (sent in separate document)

A practical guide and selected extracts

On 18 June 2004, the Intergovernmental Conference adopted the constitutional treaty which will be signed on 29 October in Rome. With a view to the debate which will grow over the course of the ratification phase, we have gathered together a presentation of the constitutional treaty, its protocol and the declarations that accompany it in this document (in French and English).

This document is in five parts: the ratification process, a description of the constitutional treaty, a summary of the declarations, extracts from the treaty and annexed documents (in French, English, German and Italian).

I - THE RATIFICATION PROCESS

Once it is signed on 29 October in Rome, the treaty will face a final round of hurdles before it can enter into force: ratification. At present, eleven member states are planning to consult their citizens in referendums which will take place in 2005 and 2006. In twelve states, ratification will take place through the parliament. Two states appear to be uncertain at the present time.

Referendums:

France: President Jacques Chirac decided on 14 July in favour of a referendum. He said that the referendum will take place “in the second half” of 2005.

Belgium: Prime Minister Guy Verhofstadt announced on 2 June that a referendum would be organised, suggesting that the (non-binding) public consultation would be organised within fifty days after the treaty is signed. This will be the first time that the Belgian public give their view on a treaty.

Czech Republic: The new Czech government has not yet been formed. According to some sources, there is a strong possibility that a referendum will be held.

Denmark: The country will hold a referendum (the results of which will be binding), but no date has yet been set. The timetable will depend on parliamentary discussions which will begin in the autumn, but the Prime Minister thought before the IGC that the Danish referendum could be held after that in the United Kingdom.

Ireland: In the Republic of Ireland any constitutional change must be approved in a referendum. A referendum will therefore be held to adopt the future European Constitution like those held for the treaties of Maastricht and Nice. No date has yet been set, however.

Spain: the President of the Spanish government, José Luis Rodriguez Zapatero, announced on 23 June that a referendum would be held “as quickly as possible”, so that Spain “will be one of the first EU countries to ratify the Constitution”. A decision on the date could be taken in September after negotiations between the different political groups. According to some sources, it could ultimately be held at the end of the year or, more likely, at the beginning of 2005.

United Kingdom: Prime Minister Tony Blair announced on 20 April that a referendum would be held, the details of which will be drawn up by the government and the parliament. The scenario most frequently cited is that general elections may be held in the spring of 2005, followed by a referendum in the second half of 2005 or in 2006.

Portugal: Portuguese Prime Minister José Manuel Durão Barroso announced at the end of June that there would be a public consultation. However, it is up to the parliament to decide. This decision is unlikely to be taken before September.

Netherlands: A majority of members of the Dutch lower house are in favour of holding a referendum (the results of which will not be binding), a path which will probably be followed by the Dutch government. The law authorising the referendum has not yet been adopted, but could be in the course of August. One theory is that the referendum will be organised in the fifty days after the treaty is signed, as in Belgium.

Luxembourg: The government decided on 27 June that a consultative referendum would be held. This will be the first action of this kind in the Grand Duchy since 1936. Negotiations on the new government are underway, which will postpone the decision on the date until September.

Poland: Since March; Prime Minister Leszek Miller and President Aleksander Kwasniewski have both announced their support for a referendum, which could take place in the autumn of 2005.

Parliamentary authorisations:

Austria: Vienna will fall into line with the rest of Europe as to whether to hold a referendum. But Chancellor Wolfgang Schüssel has stated on several occasions that he would be against holding a referendum on the ratification of the European Constitution. The parliamentary procedure involves both houses (Nationalrat and Bundesrat).

Germany: Chancellor Gerhard Schröder repeated on 15 July that there would not be a referendum because the procedure would require a change in the German constitution. He has said that he hopes that the ratification will be completed by the end of this year. Bills and draft legislation to approve international treaties are subject to two readings in the two chambers (Bundestag and Bundesrat).

Italy: Foreign Minister Franco Frattini said in mid-July that it would be desirable for his compatriots to approve the Constitution in a referendum, stating that such consultation would be “feasible” after amendments to the basic law. The Italian constitution does not provide for the approval of international treaties through a referendum. A constitutional law would have to be adopted before this is possible.

Greece: the Greek government does not intend to hold a referendum on the European Constitution. Ratification will take place through the parliament.

Sweden: Broad public consultation at the beginning of 2005 will precede ratification through parliamentary procedure.

Finland: a public debate on the European Constitution will be held in the autumn of 2004. The ratification procedure will take place through the parliament (Eduskunda) in three readings.

Lithuania: The Lithuanian government does not intend, at this time, to hold a referendum on the European Constitution. Ratification will take place through the parliament.

Latvia: Holding a referendum has been ruled out. The unicameral parliament (Saeima) ratifies all international agreements.

Slovenia: Ratification will take place through the parliament.

Hungary: The government has not yet made a decision, but according to a source in the Ministry of Foreign Affairs, there will probably not be a referendum. The unicameral parliament ratifies treaties.

Cyprus: The country will not hold a referendum (not provided for by the national constitution). Cyprus was the only one of the ten new member states not to have put their Accession Treaty to a referendum. Ratification involves the adoption of a law by the unicameral parliament (House of Representatives).

Malta: Holding a referendum is not provided for and has been ruled out by the government.

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Slovakia: The majority of the Slovak government are not in favour of holding a referendum on the European Constitution, but the “issue is still open”, according to a spokesperson for the Ministry of Foreign Affairs. Article 95 of the Slovak constitution states that a referendum can be convened by the President at the request of 350 000 citizens or following a resolution of the National Council.

Estonia: Both options are possible. The government should take a decision within a few weeks.

II - THE CONSTITUTIONAL TREATY

In its provisional consolidated version of 25 June 2004, drawn up by the secretariat of the Intergovernmental Conference, the constitutional treaty includes 325 pages. It is in four parts: the constitutional part (59 articles); the Charter of Fundamental Rights (54 articles); the policy and functioning of the Union (342 articles); general and final provisions (12 articles). In addition to these 467 articles there are the protocols (see below), which are an integral part of the treaty, and the declarations which are annexed to it.

In an attempt at simplification, the treaty has retained the removal of the three pillars, the disappearance of the different communities in favour of a European Union which will take on a legal personality and an improved organisation of the different parts. This rationalisation sometimes leaves a much to be desired, as demonstrated Chapter V in the third part, where industry follows public health and culture is separated from education by a section on tourism. On a symbolic level, the treaty introduces a number of "symbols of the Union" and, as the European Convention wanted, it opens with the Union's values and the fundamental rights of European citizens. In the same vein, the free movement of people precedes the free movement of goods and capital in the third part of the new treaty. In terms of advances, note in particular the progress made on the common foreign and security policy (Minister for Foreign Affairs, defence agency, structured cooperation), on health (combating cross-border health threats) and on research. In addition to this, there is also a new space policy. The new treaty also introduces the possibility for one million citizens to invite the Commission to table a proposal. The Intergovernmental Conference did, however, block several significant innovations recommended by the European Convention (legislative council, choice left to the President of the Commission when forming his team, simplified revision procedure etc). Numerous "European laws of the Council" will be adopted without European Parliament participation. Finally, the calculation of qualified majority has become even more complicated than in the Treaty of Nice, with thresholds which represent a real retreat: 65% of the population, compared to 62% in the Treaty of Nice.

This presentation of the treaty reflects its structure. A given subject is often mentioned in several places. As such, to examine the system of qualified majority voting in the Council, it is necessary to refer to certain articles of parts I, III and IV of the treaty, to the protocol on the transitional measures regarding the institutions and the declaration which mentions the modified Ioannina compromise. For the common foreign and security policy, it is necessary to refer to parts I and III Title V of the treaty as well as the protocol on structured cooperation and the declaration on the external action service. The same applies for financial and monetary issues, etc.

Here is a summary of the content of the treaty:

The treaty opens with the Union's values and objectives and provides that the Union has legal personality (article I-6), before listing the "symbols of the Union" (flag, motto, currency etc). The Union adheres to the European Convention for the Protection of Human Rights and Fundamental Freedoms (article I-7). The principles of subsidiarity and proportionality govern the exercise of Union competences, which can be divided into five categories: exclusive competence, shared competence, co-ordination of economic and employment policy, common foreign and security policy, and areas of supporting, coordinating or complementary action. The European Council will elect its president for a period of two and a half years (article I-21). The treaty provides that as a rule the Council will act by qualified majority but unanimity will be retained for several areas. Qualified majority is defined as at least 55% of Council members, comprised of at least 15 of them representing member states with at least 65% of the population of the Union. In addition to this basic rule are several other rules on the composition of blocking minorities, the calculation of qualified majority (72% of states) when the proposals do not originate from the Commission or the Minister for Foreign Affairs, as well as a modified Ioannina compromise which figures in a declaration annexed to the treaty (see below). The Commission will continue to be composed of one national of each member state until 2014 (article I-25). The Minister for Foreign Affairs will be one of the vice-presidents of the Commission (I-27) and will preside over the Foreign Affairs Council. European laws and framework laws will replace directives and regulations. On the common foreign and security policy (CFSP), decisions will be taken unanimously, but the European Council could take a unanimous decision to move to qualified majority. ("switchover"). The treaty creates a defence agency and introduces a clause of solidarity between member states when faced with a terrorist attack or a disaster. Authorisation to institute enhanced cooperation is given by the Council voting unanimously. The Council sets the multiannual financial framework unanimously after approval from the Parliament. Accession is decided unanimously by the Council. Suspension is possible if a decision is taken by a four-fifths majority (article I-58). A procedure for voluntary withdrawal is also created.

Part II contains the text of the Charter of Fundamental Rights.

Part III on the policies and functioning of the Union opens with non-discrimination. In this area, as for measures regarding passports and residence permits as well as for voting and eligibility arrangements, the Council will act unanimously after consultation with the Parliament (approval is required only in non-discrimination). For social security in the context of free movement of workers, unanimity is replaced by qualified majority, but a member state can request the suspension of the adoption procedure for the law or draft law (article III-21). Measures to freeze financial assets are limited to the fight against terrorism. The treaty proposes a new wording of economic and monetary policies (article III-71 onwards). The adoption of the euro by a state will be authorised by Euro Group members by qualified majority (article III-92).

In social policy, unanimity is maintained in the sectors with a switchover (by unanimity) to pass to an ordinary legislative procedure (article III-104), although this switchover existed already and was never used. Article III-116 describes the least favoured regions and zones which should be priorities in the implementation of cohesion policy. Unanimity in the Council after consultation with the Parliament will remain the rule for the new measures on the Structural Fund and Cohesion Fund (2007-2013), as laid down in the Treaty of Nice. The chapter on research has been fleshed out and notably envisages a European law to establish the necessary measures to implement the European research area (article III-149). The Union will be able to draw up a space policy (article III-155) and a European law or framework law will establish the measures necessary for that purpose, which could take the form of a space programme. Finally, the treaty envisages a policy in the field of energy (article III-157).

The European Council will define strategic guidelines for legislative and operational planning within the area of freedom, security and justice (article III-159). Article 169 enshrines the principle of solidarity and fair sharing of responsibility between the member states in the field of asylum and immigration. On judicial cooperation in criminal matters (article III-171), a state can request the suspension of the adoption procedure for the law or draft law, but if this entails a delay, the other states can establish enhanced cooperation. This procedure equally applies to the establishment of minimum rules concerning the definition of criminal offences and sanctions for particularly serious crime with a cross-border dimension. A European law of the Council could create a European Public Prosecutor's office from Eurojust (article III-175). It would have competence only for crimes affecting the Union's financial interests, unless the European Council decides to extend its competence to serious cross-border crime (unanimously after consultation with the European Parliament). In the meantime, Eurojust could launch and coordinate investigations into this type of crime. (article III-174).

On public health, the Union will have competences for "monitoring, early warning of and combating serious cross-border threats to health" (article III-179). It could encourage cooperation between member states to improve the complementarity of their health services in cross-border areas. Following those for blood and blood derivatives, cells and human tissues, the Union will be able to adopt standards for medical products and devices. The European law or framework law could also establish measures with the direct aim of protecting public health with regard to tobacco and alcohol abuse. The Union can complement member states' actions in the tourism sector (article III-181). Provisions on sport are integrated into the section on education, youth and vocational training (article III-182). One article (article III-184) is devoted to civil protection and another (article III-185) to administrative cooperation and exchange of information and civil servants.

Title V of Part III resumes the provisions relating to the "Union's external action". Article III-201 provides that the Council acts by qualified majority when adopting a European decision which defines an Union action or a position, on a proposal which the Union Minister for Foreign Affairs has presented following a specific request to him or her from the European Council. A member state can, however, still oppose the use of the qualified majority vote. Article III-217 envisages the creation of a "European Armaments, Research and Military Capabilities Agency". Permanent, structured cooperation in matters of defence is envisaged in article III-213. European decisions and Council recommendations made in the framework of structured cooperation will be adopted unanimously. Article III-217 provides that European law will establish measures defining the framework for implementing the common commercial policy. In principle, the Council will act by qualified majority on commercial issues. It will, however, act unanimously in the negotiation and conclusion of agreements in the fields of (1) trade in services and the commercial aspects of intellectual property, as well as direct foreign investment, (2) cultural and audiovisual services where these risk prejudicing the Union's cultural and linguistic diversity and (3) social, education and health services where these risk seriously disturbing the national organisation of such services and prejudicing the responsibility of Member States to deliver them. Article III-223 provides that European law will establish the framework of the Union's humanitarian aid operations. The laws will also determine the rules and procedures for a "European Voluntary Humanitarian Aid Corps". Article III-231 describes the functioning of the solidarity clause in case of terrorist attack or disaster. The implementation of this clause would rest on a Council decision on the basis of a joint proposal by the Union Minister for Foreign Affairs and the European Commission. The European Parliament will be informed.

The new treaty envisages consultation with the Parliament if a Commissioner is to be replaced (article III-252). As is currently the case, the Council can decide unanimously that the vacancy will not be filled, but it would do so "on a proposal of the President of the Commission" and "in particular when the remainder of the Member's term of office is short”. The Court of First Instance becomes the “High Court” and seven-person panel will be set up to give an opinion on candidates' suitability to perform the duties of Judge and Advocate-General of the Court of Justice and the High Court (article III-262). The provision which excessively limits the right of individual recourse (for natural or legal persons directly or individually concerned) is maintained in article III-270. The Court of Justice has no jurisdiction in issues of the common foreign and security policy or operations undertaken by the forces of order within the context of the area of freedom, security and justice. The number of members of the Committee of the Regions remains fixed at 350. The same applies for the European Economic and Social Committee. European laws will establish the annual budget of the Union (article III-310). In this regard, “the European Parliament, the Council and the Commission will ensure that the financial means are made available to allow the Union to fulfil its obligations in respect of third parties” (article III-319). Authorisation to proceed with enhanced cooperation will be given by a European decision of the Council acting unanimously (article III-325).

Part IV covers the general and final provisions. The ordinary revision procedure enshrines the convening of a Convention (article IV-7), which will adopt a recommendation for the Intergovernmental Conference to adopt. The treaty must then be ratified. The European Council can decide to relax the decision procedure (replacing unanimity with qualified majority or a special legislative procedure with an ordinary legislative procedure). This can be done unanimously with the consent of the European Parliament, unless a national parliament objects (article IV-7a). Title III of Part III (internal Union policy) can also be modified by the European Council acting unanimously on a proposal from a member state, the Parliament or the Commission. The modification cannot increase the competences of the Union. It must be ratified (article IV-7b). The treaty will enter into force on 1 November or the first day of the second month following the deposit of the instrument of ratification by the last signatory State to take this step.

III - PROTOCOLS

36 protocols and two annexes accompany and complete the Treaty establishing a Constitution for Europe. They refer to:

the role of national parliaments: the text provides for informing the national parliaments ; see below.

the principles of subsidiarity and proportionality: this protocol permits a parliament to send out a warning if it thinks that the principle of subsidiarity is not being respected.; the national parliaments and the Committee of the Regions are given a right of recourse to the Court; see below.

the statute of the Court of Justice: no substantial change.

the statute of the ESCB and the European Central Bank: no substantial change.

the statute of the European Investment Bank: no substantial change.

the seats of the institutions: the text incorporates the provisions already made.

the privileges and immunities of the EU: ceteris paribus.

accession acts and subsequent enlargements: this protocol contains notably provisions relating to Gibraltar, the Channel Islands, the Faroe Islands, the support system for cotton in Ceuta and Melilla, for agriculture in regions of Finland and Sweden situated above the 62nd parallel, the Åland Islands, the exclusive rights accorded to the Sami for breeding reindeer, and rail and combined transport and road transit in Austria.

the accession acts of the last enlargement: this protocol relates notably to the provisions on temporary budgetary compensation and cash-flow facilities available to the ten new member states, restructuring the Czech steel industry, the British sovereign base areas in Cyprus, the Ignalina nuclear facility in Lithuania, the transit of persons between Kalingrad and the Russian Federation, the acquisition of secondary residences in Malta, provisions on abortion in Malta, restructuring the Polish steel industry, the Bohunice nuclear facility in Slovakia, the suspension of the application of the acquis communautaire in "those areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control" (this suspension can be lifted by the Council acting unanimously on a Commission proposal).

the excessive deficit procedure: see below.

the convergence criteria: as for the protocol on excessive deficits, this is a text which provides definitions of these criteria.

the Euro Group: article 1 provides that the ministers of the countries with the euro as currency will meet informally. Article 2 states that they will elect a president for two and a half years by majority of those member states.

certain provisions regarding the United Kingdom regarding EMU: opt out.

the position of Denmark regarding EMU: exemption for the adoption of the euro.

certain tasks of the National bank of Denmark: concerns the Danish territories which are not part of the Union.

the CFP franc system: France retains the privilege of monetary emission in New Caledonia, French Polynesia and Wallis and Futuna.

the Schengen acquis: this protocol describes the methods for the adoption of the Schengen acquis.

The application of certain aspects of article III-14 of the Constitution to the United Kingdom and Ireland: this protocol authorises the United Kingdom to exercise whatever controls it deems necessary on persons wishing to enter its territory (article 3 states that the other member states may do the same). The text also authorises the United Kingdom and Ireland to continue to conclude their own arrangements for the movement of persons between their territories.

the position of the United Kingdom and Ireland on policies in respect of border controls, asylum, immigration, judicial and police cooperation: British and Irish opt out in respect of border controls, asylum, immigration, judicial and police cooperation.

the position of Denmark: a protocol allowing Denmark to adopt certain measures under the area of freedom, security and justice and to renounce its other "opt outs" as it wishes.

the crossing of external borders: states retain the right to conclude agreements with third countries.

asylum for nationals of member states: restrictions on the right to asylum between member states, which shall be considered to be safe countries of origin.

permanent structured cooperation: open to all member states which make commitments on military capacity; see below.

article I-40, paragraph 2: "The Union shall draw up, together with WEU, arrangements for enhanced cooperation between them".

imports of refined petroleum products from the Dutch Antilles: members states undertake to grant preferential tariffs to refined petroleum products from the Dutch Antilles as a result of their association with the Union. 2 million tons of such products are imported into Germany, the Belgo/Luxembourg Economic Union, France, Italy and the Netherlands.

the acquisition of property in Denmark: Denmark can maintain its legislation.

the system of public broadcasting: a single article enshrines the member states' right to finance public service broadcasting.

article III-108: concerns the definition of certain kinds of social security schemes.

cohesion: see below.

special arrangements for Greenland: concerns fisheries products.

article 40.3.3 of the Constitution of Ireland: no provision of the treaty can affect the application of this article which protects the unborn child.

the accession of the EU to the ECHR: the agreement relating to the Union's accession to the European Convention on Human Rights should respect the specific characteristics of the Union.

the acts and treaties which have supplemented and amended the EC Treaty and the TEU: deletion of obsolete acts.

transitional provisions relating to the institutions: this is a protocol which provides for the maintenance of the Nice qualified majority system until 1 November 2009. On this date, the new double majority system will enter into force with an additional transitional clause (modified Ioannina compromise). Article 1 of this protocol also provides that the European Council should adopt a new composition of the seats in the European Parliament "sufficiently in advance of the 2009 Parliamentary elections"; see below.

the financial consequences of the expiry of the ECSC Treaty: the Council will adopt the necessary measures to manage the Research Fund for Coal and Steel.

amendments to the Euratom Treaty: amendments ceteris paribus.

There are two additional annexes: a nomenclature of agricultural products and a list of overseas countries and territories.

IV - DECLARATIONS

No fewer than 34 declarations of the Intergovernmental Conference and 5 declarations from member states are annexed to the constitutional treaty. In the provisional version, they constitute a block of 89 pages in addition to the 351 pages of protocols and 325 pages of the constitutional treaty. In total, the provisional consolidated version is 765 long.

The declarations of the Intergovernmental Conference are on very varied subjects. One of them talks of "regular dialogue between the Court of Justice of the European Union and the European Court of Human Rights; such dialogue could be reinforced when the European Union accedes to the European Convention on Human Rights". In another declaration, we read that "in choosing the persons called upon to hold the offices of President of the European Council, President of the Commission and Union Minister for Foreign Affairs, due account is to be taken of the need to respect the geographical and demographic diversity of the Union and its Member States".

A declaration on the presidency of the Council of Ministers includes the draft decision which should be adopted by the European Council on that subject in the six months following the signing of the treaty. This draft describes the six-monthly rotation within groups of three states formed for a period of 18 months. Another declaration on the modified version of the Ioannina compromise contains the draft decision which the Council should adopt on the day when the treaty enters into force. This text provides that the compromise will enter in to force on 1 November 2009 with the application of the new qualified majority and will remain in force until at least 2014. In this respect, if members of the Council representing "at least three-quarters of the level of population, or at least three-quarters of the number of Member States necessary to constitute blocking minority" indicate their opposition to the adoption of an act subject to qualified majority, the procedure is suspended to allow time for a solution to be found.

The longest declaration - it alone is 50 pages long - contains the entirety of the "explanations" drawn up by the Praesidium of the last Convention on the Charter of Fundamental Rights.

Also notable are: - a declaration which commits the Commission and the member states to begin preparatory work on the European External Action Service once the treaty is signed; - a declaration on article III-308 which stipulates that " where no European law of the Council establishing 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 law is adopted"; - a declaration under which the high contracting parties will take a European decision leading to the modification of the status of Mayotte with regard to the Union in order to make this territory an outermost region, while the French authorities will notify the European Council and the Commission that the evolution currently underway in the internal status of the island so allows; - a declaration on the translation of the treaty into languages, other than the official languages of the Union, which enjoy official status in all or part of the territory of a member state; - a declaration which provides that " if, two years after the signature of the Treaty establishing a Constitution for Europe, four fifths of the Member States have ratified it and one or more Member States have encountered difficulties in proceeding with ratification, the matter will be referred to the European Council".

Among the declarations from member states, there is one by Germany, Ireland and Austria which " note that the core provisions of the Treaty establishing the European Atomic Energy Community have not been substantially amended since its entry into force and need to be brought up to date". The three countries declare themselves to "support the idea of a Conference of the Representatives of the Governments of the Member States, which should be convened as soon as possible".

V. - SELECTED EXTRACTS

V.1. - Constitutional Treaty

Article I-6a: The symbols of the Union

(transferred from Article IV-1)

The flag of the Union shall be a circle of twelve golden stars on a blue background. The anthem of the Union shall be based on the Ode to Joy from the Ninth Symphony by Ludwig van Beethoven. The motto of the Union shall be: United in diversity. The currency of the Union shall be the euro. Europe day shall be celebrated on 9 May throughout the Union.

Article I-21: The European Council President

The European Council shall elect its President, by 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 mandate according to the same procedure.

The President of the European Council:

shall chair it and drive forward its work,

shall ensure its preparation and continuity in cooperation with the President of the Commission, and on the basis of the work of the General Affairs Council,

shall endeavour to facilitate cohesion and consensus within the European Council,

shall present a report to the European Parliament after each of the meetings of 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 Union Minister for Foreign Affairs.

The President of the European Council may not hold a national mandate.

Article I-23: Configurations of the Council of Ministers

The Council shall meet in different configurations.

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.

The Foreign Affairs Council shall elaborate the Union's external action on the basis of strategic guidelines laid down by the European Council, and ensure that the Union's action is consistent.

The European Council shall adopt by a qualified majority a European decision establishing the list of other Council configurations.

4a. A Committee of Permanent Representatives of the Governments of the Member States shall be
responsible for the preparation of the work of the Council.

The Council shall meet in public when it deliberates and votes on a draft legislative act. To this end, each Council meeting shall be divided into two parts, dealing respectively with deliberations on Union legislative acts and non-legislative activities.

The Presidency of Council configurations, other than that of Foreign Affairs, shall be held by Member State representatives the Council on the basis of equal rotation, in accordance with the conditions established by a European decision of the European Council. The European Council shall act by a qualified majority.

Article I-24: Definition of qualified majority within the European Council and the Council

A qualified majority shall be defined as at least 55% of the members of the Council, comprising at least fifteen of them and representing Member States comprising at least 65% of the population of the Union. A blocking minority must include at least four Council members, failing which the qualified majority shall be deemed attained.

By derogation from paragraph 1, when the Council is not acting on a proposal from the Commission or from the Union Minister for Foreign Affairs, 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.

2a. Paragraphs 1 and 2 shall apply to the European Council when it is acting by a qualified majority.
(Paragraph 3 is transferred to Article 2(1) of the Protocol on transitional provisions; paragraph 4 is
transferred to Article IV-7a)

Within the European Council, its President and the President of the Commission do not vote.

Article I-25: The European Commission

The Commission shall promote the general interest of the Union and take appropriate initiatives to that end. It shall ensure the application of the Constitution, and measures adopted by the Institutions under the Constitution. It shall oversee the application of Union law under the control of the Court of Justice of the European Union. It shall execute the budget and manage programmes. It shall exercise coordinating, executive and management functions, as laid down in the Constitution. With the exception of the common foreign and security policy, and other cases provided for in the Constitution, it shall ensure the Union's external representation. It shall initiate the Union's annual and multiannual programming with a view to achieving interinstitutional agreements.

Union legislative acts may be adopted only on the basis of a Commission proposal, except where the Constitution provides otherwise. Other acts shall be adopted on the basis of a Commission proposal where the Constitution so provides.

The Commission's term of office shall be five years.

The Members of the Commission shall be chosen on the ground of their general competence and European commitment and their independence shall be beyond doubt.

The first Commission appointed under the provisions of the Constitution shall consist of one national of each Member State, including its President and the Union Minister for Foreign Affairs who shall be one of its Vice-Presidents.

As from the end of the term of office of the Commission referred to in paragraph 5, the Commission shall consist of a number of Members, including its President and the Union Minister for Foreign Affairs, corresponding to two thirds of the number of Member States, unless the European Council, acting unanimously, decides to alter this figure.

They shall be selected among the nationals of the Member States on the basis of a system of equal rotation between the Member States. This system shall be established by a European decision adopted unanimously by the European Council on the basis of the following principles:

Member States shall be treated on a strictly equal footing as regards determination of the sequence of, and the time spent by, their nationals as Members of the Commission; consequently, the difference between the total number of terms of office held by nationals of any given pair of Member States may never be more than one;

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 of the Union.

In carrying out its responsibilities, the Commission shall be completely independent. Without prejudice to Article I-27(2), the Members of the Commission shall neither seek nor take instructions from any government or other institution, body, office or agency. They shall refrain from any action incompatible with their duties or the performance of their tasks.

The Commission, as a body, shall be responsible to the European Parliament. Under the procedures set out in Article III-243, the European Parliament may vote on a censure motion on the Commission. If such a motion is carried, the Members of the Commission shall resign as a body and the Union Minister for Foreign Affairs shall resign from the Commission.

Article I-26: The President of the European Commission

Taking into account the elections to the European Parliament and after having held the appropriate consultations, the European Council, deciding by a qualified majority, shall put 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 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 Council, by common accord with the President-elect, shall adopt the list of the other persons whom it intends to appoint as Members of the Commission. They shall be selected, on the basis of the suggestions made by Member States, in accordance with the criteria set out in Article I-25(4) and (6) second subparagraph.

The President, the Union Minister for Foreign Affairs and the other Members of the Commission shall be subject as a body to a vote of approval by the European Parliament. On the basis of this approval the Commission shall be appointed by the European Council, acting by a qualified majority.

The President of the Commission shall:

lay down guidelines within which the Commission is to work;

decide on the internal organisation of the Commission, ensuring that it acts consistently, efficiently and as a collegiate body;

appoint Vice-Presidents, other than the Union Minister for Foreign Affairs, from among the members of the Commission.

A Member of the Commission shall resign if the President so requests. The Union Minister for Foreign Affairs shall resign, in accordance with the procedure set out in Article I-27(1), if the President so requests.

Article I-27: The Union Minister for Foreign Affairs

The European Council, acting by qualified majority, with the agreement of the President of the Commission, shall appoint the Union Minister for Foreign Affairs. The European Council may end his or her term of office by the same procedure.

The Union Minister for Foreign Affairs shall conduct the Union's common foreign and security policy. He or she shall contribute by his or her proposals to the development of that policy, which he or she shall carry out as mandated by the Council. The same shall apply to the common security and defence policy.

The Union Minister for Foreign Affairs shall preside over the Foreign Affairs Council.

The Union Minister for Foreign Affairs shall be one of the Vice-Presidents of the Commission.

He or she shall ensure the consistency of the Union's external action. He or she shall be responsible within the Commission for responsibilities falling to it in external relations and for coordinating other aspects of the Union's external action. In exercising these responsibilities within the Commission, and only for these responsibilities, the Union Minister for Foreign Affairs shall be bound by Commission procedures to the extent that this is consistent with paragraphs 2 and 3.

Article I-39: Specific provisions relating to the common foreign and security policy

The European Union shall conduct 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.

The European Council shall identify the Union's strategic interests and determine the objectives of its common foreign and security policy. The Council shall frame this policy within the framework of the strategic guidelines established by the European Council and in accordance with the arrangements in Part III.

The European Council and the Council shall adopt the necessary European decisions.

The common foreign and security policy shall be put into effect by the Union Minister for Foreign Affairs and by the Member States, using national and Union resources.

Member States shall consult one another within the European Council and the Council on any foreign and security policy issue which is of general interest in order to determine a common approach. Before undertaking any action on the international scene or any commitment which could affect the Union's interests, each Member State shall consult the others within the European Council or the Council. Member States shall ensure, through the convergence of their actions, that the Union is able to assert its interests and values on the international scene. Member States shall show mutual solidarity.

The European Parliament shall be regularly consulted on the main aspects and basic choices of the common foreign and security policy. It shall be kept informed of how it evolves.

European decisions relating to the common foreign and security policy shall be adopted by the European Council and the Council unanimously, except in the cases referred to in Part III. The European Council and the Council shall act on an initiative from a Member State, on a proposal from the Union Minister for Foreign Affairs or on a proposal from that Minister with the Commission's support. European laws and framework laws shall be excluded.

The European Council may, unanimously, adopt a European decision providing that the Council should act by qualified majority in cases other than those referred to in Part III.

Article I-40: Specific provisions relating to the common security and defence policy

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 assets civil and military. 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.

The common security and defence policy shall include the progressive framing of a common Union defence policy. This will lead to a common defence, when the European Council, acting unanimously, so decides. It shall in that case recommend to the Member States the adoption of such a decision in accordance with their respective constitutional requirements.

The policy of the Union in accordance with this Article shall not prejudice the specific character of the security and defence policy of certain Member States, it shall respect the obligations of certain Member States, which see their common defence realised in the North Atlantic Treaty Organisation, under the North Atlantic Treaty, and be compatible with the common security and defence policy established within that framework.

Member States shall make civilian and military capabilities available to the Union for the implementation of the common security and defence policy, to contribute to the objectives defined by the Council. Those Member States which together establish multinational forces may also make them available to the common security and defence policy.

Member States shall undertake progressively to improve their military capabilities. A European Armaments, Research and Military Capabilities Agency shall be established to identify operational requirements, to promote measures to satisfy those requirements, to contribute to identifying and, where appropriate, implementing any measure needed to strengthen the industrial and technological base of the defence sector, to participate in defining a European capabilities and armaments policy, and to assist the Council in evaluating the improvement of military capabilities.

European decisions on the implementation of the common security and defence policy, including those initiating a mission as referred to in this Article, shall be adopted by the Council acting unanimously on a proposal from the Union Minister for Foreign Affairs or an initiative from a Member State. The Union Minister for Foreign Affairs may propose the use of both national resources and Union instruments, together with the Commission where appropriate.

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 III-211.

Those Member States whose military capabilities fulfil higher criteria and which have made more binding commitments to one another in this area with a view to the most demanding missions shall establish permanent structured cooperation within the Union framework. Such cooperation shall be governed by the provisions of Article III-213. It shall not affect the provisions of Article III-210.

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.

Commitments and cooperation in this area shall be consistent with commitments under NATO, which, for those States which are members of it, remains the foundation of their collective defence and the forum for its implementation.

The European Parliament shall be regularly consulted on the main aspects and basic choices of the common security and defence policy. It shall be kept informed of how it evolves.

Article I-42: Solidarity clause

The Union and its Member States shall act jointly in a spirit of solidarity if a Member State is the victim of terrorist attack or natural or man-made disaster. The Union shall mobilise all the instruments at its disposal, including the military resources made available by the Member States, to:

prevent the terrorist threat in the territory of the Member States; protect democratic institutions and the civilian population from any terrorist attack; assist a Member State in its territory at the request of its political authorities in the event of a terrorist attack;

assist a Member State in its territory at the request of its political authorities in the event of a natural or man-made disaster.

The detailed arrangements for implementing this Article are at Article III-231.

Article I-43: Enhanced cooperation

Member States which wish to establish enhanced cooperation between themselves within the framework of the Union's non-exclusive competences may make use of its Institutions and exercise those competences by applying the relevant provisions of the Constitution, subject to the limits and in accordance with the procedures laid down in this Article and in Articles III-322 to III-329.

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 III-324.

The European decision authorising enhanced cooperation shall be adopted by the Council as a last resort, when it has established that the objectives of such cooperation cannot be attained within a reasonable period by the Union as a whole, and provided that at least one third of the Member States participate in it. The Council shall act in accordance with the procedure laid down in Article III-325.

All members of the Council may participate in its deliberations, but only members of the Council representing the Member States participating in enhanced cooperation shall take part in the vote.

Unanimity shall be constituted by the votes of the representatives of the participating Member States only. A qualified majority shall be defined as at least 55% of the members of the Council representing the participating Member States, comprising at least 65% of the population of these States.

A blocking minority must include at least the minimum number of Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

By derogation from the third and fourth subparagraphs, where the Council does not act on a Commission proposal or on a proposal from the Union Minister for Foreign Affairs, the required 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.

Acts adopted in the framework of enhanced cooperation shall bind only participating States. They shall not be regarded as an acquis which has to be accepted by candidates for accession to the Union.

Article I-46: The principle of participatory democracy

The Institutions shall, by appropriate means, give citizens and representative associations the opportunity to make known and publicly exchange their views in all areas of Union action.

The Institutions shall maintain an open, transparent and regular dialogue with representative associations and civil society.

The Commission shall carry out broad consultations with parties concerned in order to ensure that the Union's actions are coherent and transparent.

Not less than one million citizens coming from 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 Constitution. A European law shall determine the provisions for the procedures and conditions required for such a citizens' initiative, including the minimum number of Member States from which they must come.

Article I-57: Conditions of eligibility and procedure for accession to the Union

The Union shall be open to all European States which respect the values referred to in Article I-2, and are committed to promoting them together.

Any European State which wishes to become a member of the Union shall address its application to the Council. The European Parliament and the Member States' national Parliaments shall be notified of this application. The Council shall act unanimously after consulting the Commission and after obtaining the consent of the European Parliament, which shall act by a majority of its component members. The conditions and arrangements for admission shall be the subject of an agreement between the Member States and the candidate State. That agreement shall be subject to ratification by each contracting State, in accordance with its respective constitutional requirements.

Article I-58: Suspension of certain rights resulting from Union membership

On the reasoned initiative of one third of the Member States or of the European Parliament or on a proposal from the Commission, the Council may adopt a European decision determining that there is a clear risk of a serious breach by a Member State of the values mentioned in Article I-2.

The Council shall act by a majority of four fifths of its members after obtaining the consent of the European Parliament. Before making such a determination, the Council shall hear the Member State in question and, acting in accordance with the same procedure, may address recommendations to that State. The Council shall regularly verify that the grounds on which such a determination was made continue to apply.

The European Council, on the initiative of one third of the Member States or on a proposal from the Commission, may adopt a European decision determining the existence of a serious and persistent breach by a Member State of the values mentioned in Article I-2, after inviting the Member State in question to submit its observations. The Council shall act unanimously after obtaining the consent of the European Parliament.

Where a determination under paragraph 2 has been made, the Council, acting by a qualified majority, may adopt a European decision suspending certain of the rights deriving from the application of the Constitution to the Member State in question, including the voting rights of the member of the Council representing that State. The Council shall take into account the possible consequences of such a suspension for the rights and obligations of natural and legal persons.

In any case, that State shall continue to be bound by its obligations under the Constitution.

Subsequently, the Council, acting by a qualified majority, may adopt a European decision varying or revoking measures adopted under paragraph 3 in response to changes in the situation which led to their being imposed.

For the purposes of this Article, 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. Abstentions by members present in person or represented shall not prevent the adoption of European decisions referred to in paragraph 2.

For the adoption of the European decisions referred to in paragraphs 3 and 4, a 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.

Where, following a decision to suspend voting rights adopted pursuant to paragraph 3, the Council acts by a qualified majority on the basis of a provision of the Constitution, that qualified majority shall be defined as in the second subparagraph, or, where the Council acts on a proposal from the Commission, 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. In the latter case, a blocking minority must include at least the minimum number of Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

For the purposes of this Article, the European Parliament shall act by a two-thirds majority of the votes cast, representing the majority of its Members.

Article I-59: Voluntary withdrawal from the Union

Any Member State may decide to withdraw from the European Union in accordance with its own constitutional requirements.

A Member State which decides to withdraw shall notify the European Council of its intention. In the light of the guidelines provided by the European Council, the Union shall negotiate and conclude an agreement with that State, setting out the arrangements for its withdrawal, taking account of the framework for its future relationship with the Union. That agreement shall be negotiated in accordance with Article III-227(3); it shall be concluded by the Council, acting by a qualified majority, after obtaining the consent of the European Parliament.

The Constitution 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.

3a. For the purposes of paragraphs 2 and 3, the member of the European Council or of the Council
representing the withdrawing Member State shall not participate in Council or European Council
discussions or European decisions concerning it.

A 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.

If a State which has withdrawn from the Union asks to rejoin, its request shall be subject to the procedure referred to in Article I-57.

Article III-21 (ex Article 42 TEC): social security

In the field of social security, European laws or framework laws shall establish such measures as are necessary to bring about freedom of movement for workers by introducing a system to secure for employed and self-employed migrant workers and their dependants:

aggregation, for the purpose of acquiring and retaining the right to benefit and of calculating the amount of benefit, of all periods taken into account under the laws of the several countries;

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

Where a member of the Council considers that a draft European law or framework law referred to in paragraph 1 would affect fundamental 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 procedure referred to in Article III-302 shall be suspended. After discussion, the European Council shall, within 4 months of this suspension, either:

(a) refer the draft back to the Council, which shall terminate the suspension of the procedure referred to in Article III-302, or

(b) request the Commission to submit a new draft; in that case, the act originally proposed shall be deemed not to have been adopted.

Article III-46: movement of capital (ex Article 57 TEC)

Article III-45 shall be without prejudice to the application to third countries of any restrictions which existed on 31 December 1993 under national or Union law adopted in respect of the movement of capital to or from third countries involving direct investment - including in real estate -, establishment, the provision of financial services or the admission of securities to capital markets. With regard to restrictions which exist under national law in Estonia and Hungary, the date in question shall be 31 December 1999.

European laws or framework laws shall enact measures on the movement of capital to or from third countries involving direct investment - including investment in real estate -, establishment, the provision of financial services or the admission of securities to capital markets.

The European Parliament and the Council shall endeavour to achieve the objective of free movement of capital between Member States and third countries to the greatest extent possible and without prejudice to other provisions of the Constitution.

Notwithstanding paragraph 2, only a European law or framework law of the Council may enact measures which constitute a step back in Union law as regards the liberalisation of the movement of capital to or from third countries. The Council shall act unanimously after consulting the European Parliament.

Article III-49: freezing of funds (ex Article 60 TEC)

Where necessary to achieve the objectives set out in Article III-158, as regards preventing and combating terrorism and related activities, European laws shall define a framework for administrative measures with regard to capital movements and payments, such as the freezing of funds, financial assets or economic gains belonging to, or owned or held by, natural or legal persons, groups or non-state entities.

The Council, on a proposal from the Commission, shall adopt European regulations or European decisions in order to implement the laws referred to in the first paragraph.

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

Article III-68: intellectual-property rights (new)

In establishing an internal market, measures for the introduction of European instruments to provide uniform intellectual-property rights protection throughout the Union and for the setting up of centralised Union-wide authorisation, coordination and supervision arrangements shall be established in European laws or framework laws.

A European law of the Council shall establish language arrangements for the European instruments. The Council shall act unanimously after consulting the European Parliament.

Article III-71: economic policies (ex Article 99 TEC)

Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council, in accordance with Article III-70.

The Council, on a recommendation from the Commission, shall formulate a draft for the broad guidelines of the economic policies of the Member States and of the Union, and shall report its findings to the European Council.

The European Council, on the basis of the report from the Council, shall discuss a conclusion on the broad guidelines of the economic policies of the Member States and of the Union. On the basis of this conclusion, the Council shall adopt a recommendation setting out these broad guidelines. It shall inform the European Parliament of its recommendation.

In order to ensure closer coordination of economic policies and sustained convergence of the economic performances of the Member States, the Council, on the basis of reports submitted by the Commission, shall monitor economic developments in each of the Member States and in the Union, as well as the consistency of economic policies with the broad guidelines referred to in paragraph 2, and shall regularly carry out an overall assessment.

For the purpose of this multilateral surveillance, Member States shall forward information to the Commission on important measures taken by them in the field of their economic policy and such other information as they deem necessary.

Where it is established, under the procedure referred to in paragraph 3, that the economic policies of a Member State are not consistent with the broad guidelines referred to in paragraph 2 or that they risk jeopardising the proper functioning of economic and monetary union, the Commission may address a warning to the Member State concerned. The Council, on a recommendation from the Commission, may address the necessary recommendations to the Member State concerned. The Council, on a proposal from the Commission, may decide to make its recommendations public.

Within the scope of this paragraph, the Council shall act without taking into account the vote of the member of the Council representing the Member State concerned.

A qualified majority shall be defined as at least 55% of the other members of the Council, representing Member States comprising at least 65% of the population of the participating Member States.

A blocking minority must include at least the minimum number of these other Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

The President of the Council and the Commission shall report to the European Parliament on the results of multilateral surveillance. The President of the Council may be invited to appear before the competent committee of the European Parliament if the Council has made its recommendations public.

European laws may lay down detailed rules for the multilateral surveillance procedure referred to in paragraphs 3 and 4.

Article III-76: excessive deficits (ex Article 104 TEC)

Member States shall avoid excessive government deficits.

The Commission shall monitor the development of the budgetary situation and of the stock of government debt in the Member States in order to identify gross errors. In particular it shall examine compliance with budgetary discipline on the basis of the following two criteria:

whether the ratio of the planned or actual government deficit to gross domestic product exceeds a reference value, unless:

(i) either the ratio has declined substantially and continuously and reached a level that comes close to the reference value;

(ii) or, alternatively, the excess over the reference value is only exceptional and temporary and the ratio remains close to the reference value;

whether the ratio of government debt to gross domestic product exceeds a reference value, unless the ratio is diminishing sufficiently and approaching the reference value at a satisfactory pace.

The reference values are specified in the Protocol on the excessive deficit procedure.

If a Member State does not fulfil the requirements under one or both of these criteria, the Commission shall prepare a report. The report of the Commission shall also take into account whether the government deficit exceeds government investment expenditure and take into account all other relevant factors, including the medium-term economic and budgetary position of the Member State.

The Commission may also prepare a report if, notwithstanding the fulfilment of the requirements under the criteria, it is of the opinion that there is a risk of an excessive deficit in a Member State.

The Economic and Financial Committee set up under Article III-86 shall formulate an opinion on the report of the Commission.

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.

The Council shall, on a proposal from the Commission, having considered any observations which the Member State concerned may wish to make and after an overall assessment, decide whether an excessive deficit exists. In that case it shall adopt, without undue delay, on a recommendation from the Commission, recommendations addressed to the Member State concerned with a view to bringing that situation to an end within a given period. Subject to paragraph 8, those recommendations shall not be made public.

Within the scope of this paragraph, the Council shall act without taking into account the vote of the member of the Council representing the Member State concerned.

A qualified majority shall be defined as at least 55% of the other members of the Council, representing Member States comprising at least 65% of the population of the participating Member States. A blocking minority must include at least the minimum number of these other Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

The Council, on a recommendation from the Commission, shall adopt the European decisions and recommendations referred to in paragraphs 8 to 11.

It shall act without taking into account the vote of the member of the Council representing the Member State concerned.

A qualified majority shall be defined as at least 55% of the other members of the Council, representing Member States comprising at least 65% of the population of the participating Member States.

A blocking minority must include at least the minimum number of these other Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

Where it establishes that there has been no effective action in response to its recommendations within the period laid down, the Council may make its recommendations public.

If a Member State persists in failing to put into practice the recommendations of the Council, the Council may adopt a European decision giving notice to the Member State to take, within a specified time-limit, measures for the deficit reduction which is judged necessary by the Council in order to remedy the situation.

In such a case, the Council may request the Member State concerned to submit reports in accordance with a specific timetable in order to examine the adjustment efforts of that Member State.

As long as a Member State fails to comply with a European decision adopted in accordance with paragraph 9, the Council may decide to apply or, as the case may be, intensify one or more of the following measures:

(a) to require the Member State concerned to publish additional information, to be specified by the Council, before issuing bonds and securities;

(b) to invite the European Investment Bank to reconsider its lending policy towards the Member State concerned;

(c) to require the Member State concerned to make a non-interest-bearing deposit of an appropriate size with the Union until the Council considers that the excessive deficit has been corrected;

(d) to impose fines of an appropriate size.

The President of the Council shall inform the European Parliament of the measures adopted.

The Council shall abrogate some or all of the measures referred to in paragraph 6 and paragraphs 8 to 10 if it considers the excessive deficit in the Member State concerned to have been corrected. If the Council has previously made public recommendations, it shall state publicly, as soon as the decision under paragraph 8 has been abrogated, that there is no longer an excessive deficit in the Member State concerned.

The rights to bring actions provided for in Articles III-265 and III-266 may not be exercised within the framework of paragraphs 1 to 6 or paragraphs 8 and 9.

Further provisions relating to the implementation of the procedure described in this Article are set out in the Protocol on the excessive deficit procedure.

A European law of the Council shall lay down the appropriate measures to replace the said Protocol. The Council shall act unanimously after consulting the European Parliament and the European Central Bank.

Subject to the other provisions of this paragraph, the Council, on a proposal from the Commission, shall adopt European regulations or decisions laying down detailed rules and definitions for the application of the said Protocol. It shall act after consulting the European Parliament.

Article III-88: economic and monetary union (new)

In order to ensure the proper functioning of economic and monetary union, and in accordance with the relevant provisions of the Constitution, the Council shall, in accordance with the relevant procedure from among those referred to in Articles III-71 and III-76, with the exception of the procedure set out in paragraph 13 of Article III-76, adopt measures specific to those Member States whose currency is the euro:

(a) to strengthen the coordination of their budgetary discipline and surveillance of it;

(b) to set out economic policy guidelines for them, while ensuring that they are compatible with those adopted for the whole of the Union and are kept under surveillance.

For those measures set out in paragraph 1, only members of the Council representing Member States whose currency is the euro shall vote.

A qualified majority shall be defined as at least 55% of these members of the Council, representing Member States comprising at least 65% of the population of the participating Member States.

A blocking minority must include at least the minimum number of these Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

Article III-89 (new)

Arrangements for meetings between ministers of those Member States whose currency is the euro shall be laid down by the Protocol on the Euro Group.

Article III-90 (new)

In order to secure the euro's place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a European decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.

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.

For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall vote.

A qualified majority shall be defined as the majority at least 55% of these members of the Council, representing Member States comprising at least 65% of the population of the participating Member States.

A blocking minority must include at least the minimum number of these Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

Article III-92 (ex Articles 121, 122(2) and 123(5) TEC)

At least once every two years, or at the request of a Member State with a derogation, the Commission and the European Central Bank shall report to the Council on the progress made by the Member States with a derogation in fulfilling their obligations regarding the achievement of economic and monetary union. These reports shall include an examination of the compatibility between each of these Member States' national legislation, including the statutes of its national central bank, and Articles III-80 and III-81 and the Statute of the European System of Central Banks and the European Central Bank. The reports shall also examine whether a high degree of sustainable convergence has been achieved, by analysing how far each of these Member States has fulfilled the following criteria:

the achievement of a high degree of price stability; this is apparent from a rate of inflation which is close to that of, at most, the three best performing Member States in terms of price stability;

the sustainability of the government financial position; this is apparent from having achieved a government budgetary position without a deficit that is excessive as determined in accordance with Article III-76(6);

the observance of the normal fluctuation margins provided for by the exchange-rate mechanism of the European monetary system, for at least two years, without devaluing against the euro;

the durability of convergence achieved by the Member State with a derogation and of its participation in the exchange-rate mechanism, being reflected in the long-term interest-rate levels.

The four criteria mentioned in this paragraph and the relevant periods over which they are to be respected are developed further in the Protocol on the convergence criteria. The reports of the Commission and the European Central Bank shall also take account of the results of the integration of markets, the situation and development of the balances of payments on current account and an examination of the development of unit labour costs and other price indices.

After consulting the European Parliament and after discussion in the European Council, the Council, on a proposal from the Commission, shall adopt a European decision establishing which Member States with a derogation fulfil the necessary conditions on the basis of the criteria set out in paragraph 1, and shall abrogate the derogations of the Member States concerned.

The Council shall act having received a recommendation of a qualified majority of those among its members representing Member States whose currency is the euro; these members shall act within 6 months of the Council receiving the Commission's proposal.

The qualified majority referred to in the second subparagraph shall be defined as at least 55% of these members of the Council, representing Member States comprising at least 65% of the population of the participating Member States. A blocking minority must include at least the minimum number of these Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

If it is decided, according to the procedure set out in paragraph 2, to abrogate a derogation, the Council, on a proposal from the Commission, adopt the European regulations or decisions irrevocably fixing the rate at which the euro is to be substituted for the currency of the Member State concerned, and laying down the other measures necessary for the introduction of the euro as the single currency in that Member State. The Council shall act with the unanimous agreement of the members representing Member States whose currency is the euro and the Member State concerned, after consulting the European Central Bank.

Article III-116: cohesion (ex Article 158 TEC)

In order to promote its overall harmonious development, the Union shall develop and pursue its action leading to the strengthening of its economic, social and territorial cohesion.

In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions.

Among the regions concerned, particular attention shall be paid to rural areas, areas affected by industrial transition, and areas 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 areas.

Article III-149: research (ex Article 166 TEC)

A multiannual framework programme, setting out all the activities financed by the Union, shall be enacted by European laws. Such laws shall be adopted after consultation of the Economic and Social Committee.

The framework programme shall:

establish the scientific and technological objectives to be achieved by the activities provided for in Article III-147 and lay down the relevant priorities;

indicate the broad lines of such activities;

lay down the maximum overall amount and the detailed rules for the Union's financial participation in the framework programme and the respective shares in each of the activities provided for.

The framework programme shall be adapted or supplemented as the situation changes.

A European law of the Council shall establish specific programmes to implement the framework programme within each activity. Each specific programme shall define the detailed rules for implementing it, fix its duration and provide for the means deemed necessary. The sum of the amounts deemed necessary, fixed in the specific programmes, may not exceed the overall maximum amount fixed for the framework programme and each activity. Such a law shall be adopted after consulting the European Parliament and the Economic and Social Committee.

As a complement to the activities planned in the multiannual framework programme, a European law shall establish the measures necessary for the implementation of the European research area. Such a law shall be adopted after consulting the European Parliament and the Economic and Social Committee.

Article III-150/151/152/153

(ex Articles 167, 168, 169, 170 and second paragraph of ex Article 172 TEC)

For the implementation of the multiannual framework programme, European laws or framework laws shall establish:

the rules for the participation of undertakings, research centres and universities;

the rules governing the dissemination of research results.

Such European laws or framework laws shall be adopted after consultation of the Economic and Social Committee.

In implementing the multiannual framework programme, European laws may establish supplementary programmes involving the participation of certain Member States only, which shall finance them subject to possible participation by the Union.

Such laws shall determine the rules applicable to supplementary programmes, particularly as regards the dissemination of knowledge and access by other Member States. They shall be adopted after consultation of the Economic and Social Committee and with the agreement of the Member States concerned.

In implementing the multiannual framework programme, European laws may make provision, in agreement with the Member States concerned, for participation in research and development programmes undertaken by several Member States, including participation in the structures created for the execution of those programmes.

Such laws shall be adopted after consultation of the Economic and Social Committee.

In implementing the multiannual framework programme the Union may make provision for cooperation in the Union's research, technological development and demonstration with third countries or international organisations.

The detailed arrangements for such cooperation may be the subject of agreements between the Union and the third parties concerned.

Article III-155: space (new)

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.

To contribute to attaining the objectives referred to in paragraph 1, European laws or framework laws shall establish the necessary measures, which may take the form of a European space programme.

The Union shall establish any appropriate relations with the European Space Agency.

Article III-157: energy (new)

In establishing an internal market and with regard for the need to preserve and improve the environment, Union policy on energy shall aim to:

ensure the functioning of the energy market,

ensure security of energy supply in the Union, and

promote energy efficiency and saving and the development of new and renewable forms of energy.

Without prejudice to the application of other provisions of the Constitution, the objectives in paragraph 1 shall be achieved by measures enacted in European laws or framework laws. Such laws or framework laws shall be adopted after consultation of the Committee of the Regions and the Economic and Social Committee.

Such laws or framework laws 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 III-130(2)(c).

By derogation from paragraph 2, a European law or framework law of the Council shall establish the measures referred to therein when they are primarily of a fiscal nature. The Council shall act unanimously after consulting the European Parliament.

Article III-166: JHA (ex Article 62 TEC)

The Union shall develop a policy with a view to:

ensuring the absence of any controls on persons, whatever their nationality, when crossing internal borders;

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

the gradual introduction of an integrated management system for external borders.

For this purpose, European laws or framework laws shall establish measures concerning:

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

the controls to which persons crossing external borders are subject;

the conditions under which nationals of third countries shall have the freedom to travel within the Union for a short period;

any measure necessary for the gradual establishment of an integrated management system for external borders;

the absence of any controls on persons, whatever their nationality, when crossing internal borders.

This Article shall not affect the competence of the Member States concerning the geographical demarcation of their borders, in accordance with international law.

Article III-167 (ex Article 63, points 1 and 2, and ex Article 64(2) TEC)

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.

For this purpose, European laws or framework laws shall lay down measures for a common European asylum system comprising:

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

a uniform status of subsidiary protection for nationals of third countries who, without obtaining European asylum, are in need of international protection;

a common system of temporary protection for displaced persons in the event of a massive inflow;

common procedures for the granting and withdrawing of uniform asylum or subsidiary protection status;

criteria and mechanisms for determining which Member State is responsible for considering an application for asylum or subsidiary protection;

standards concerning the conditions for the reception of applicants for asylum or subsidiary protection;

partnership and cooperation with third countries for the purpose of managing inflows of people applying for asylum or subsidiary or temporary protection.

In the event of one or more Member States being confronted by an emergency situation characterised by a sudden inflow of nationals of third countries, the Council, on a proposal from the Commission, may adopt European regulations or decisions comprising provisional measures for the benefit of the Member State(s) concerned. It shall act after consulting the European Parliament.

Article III-168 (points 3 and 4 of ex Article 63 TEC)

The Union shall develop a common immigration policy aimed at ensuring, at all stages, the efficient management of migration flows, fair treatment of third-country nationals residing legally in Member States, and the prevention of, and enhanced measures to combat, illegal immigration and trafficking in human beings.

To this end, European laws or framework laws shall establish measures in the following areas:

the conditions of entry and residence, and standards on the issue by Member States of long-term visas and residence permits, including those for the purpose of family reunion;

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;

illegal immigration and unauthorised residence, including removal and repatriation of persons residing without authorisation;

combating trafficking in persons, in particular women and children.

The Union may conclude agreements with third countries for the readmission to their countries of origin or provenance of third-country nationals who do not or who no longer fulfil the conditions for entry, presence or residence in the territory of one of the Member States.

European laws or framework laws 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.

This Article shall not affect the right of Member States to determine volumes of admission of third-country nationals coming from third countries to their territory in order to seek work, whether employed or self-employed.

Article III-169 (new)

The policies of the Union set out in this Section and their implementation shall be governed by the principle of solidarity and fair sharing of responsibility, including its financial implications, between the Member States. Whenever necessary, the acts of the Union adopted pursuant to this Section shall contain appropriate measures to give effect to this principle.

Article III-170 (ex Article 65 TEC)

The Union shall develop judicial cooperation in civil matters having cross-border implications, based on the principle of mutual recognition of judgments and decisions in extrajudicial cases. Such cooperation may include the adoption of measures for the approximation of the laws and regulations of the Member States.

To this end, European laws or framework laws shall lay down measures, particularly when necessary for the proper functioning of the internal market, aimed at ensuring:

the mutual recognition and enforcement between Member States of judgments and decisions in extrajudicial cases;

the cross-border service of judicial and extrajudicial documents;

the compatibility of the rules applicable in the Member States concerning conflict of laws and of jurisdiction;

cooperation in the taking of evidence;

effective access to justice;

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;

the development of alternative methods of dispute settlement;

support for the training of the judiciary and judicial staff.

Notwithstanding paragraph 2, measures concerning family law with cross-border implications shall be laid down in a European law or framework law of the Council. The Council shall act unanimously after consulting the European Parliament.

The Council, on a proposal from the Commission, may adopt a European 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.

Article III-171 (ex Article 31(1) TEU)

Judicial cooperation in criminal matters in the Union shall be based on the principle of mutual recognition of judgments and judicial decisions and shall include the approximation of the laws and regulations of the Member States in the areas referred to in paragraph 2 and in Article III-172.

European laws or framework laws shall establish measures to:

establish rules and procedures to ensure the recognition throughout the Union of all forms of judgments and judicial decisions;

prevent and settle conflicts of jurisdiction between Member States;

encourage the training of the judiciary and judicial staff;

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

To the extent necessary to facilitate mutual recognition of judgments and judicial decisions and police and judicial cooperation in criminal matters having a cross-border dimension, European framework laws may establish minimum rules. Such rules shall take into account the differences between the legal traditions and systems of the Member States.

They shall concern:

mutual admissibility of evidence between Member States;

the rights of individuals in criminal procedure;

the rights of victims of crime;

any other specific aspects of criminal procedure which the Council has identified in advance by a European decision., for the adoption of this decision, the Council shall act unanimously after obtaining the consent of the European Parliament.

Adoption of the minimum rules referred to in this paragraph shall not prevent Member States from maintaining or introducing a higher level of protection for individuals.

Where a member of the Council considers that a draft European framework law as referred to in paragraph 2 would affect fundamental aspects of its criminal justice system, it may request that the draft framework law be referred to the European Council. In this case, the procedure referred to in Article III-302 shall be suspended. After discussion, the European Council shall, within 4 months of this suspension, either:

refer the draft back to the Council, which shall terminate the suspension of the procedure referred to in Article III-302, or

request the Commission or the group of Member States from which the draft framework law emanates to submit a new draft; in that case, the act originally proposed shall be deemed not to have been adopted.

If, by the end of the period referred to in paragraph 3, either no action has been taken by the European Council or if, within 12 months from the submission of a new draft under paragraph 3b), the European framework law has not been adopted, and at least one third of the Member States wish to establish enhanced cooperation on the basis of the draft framework law 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 I-43(2) and III-325(1) shall be deemed to be granted and the provisions on enhanced cooperation shall apply.

Article III-172 (new)

European framework laws may establish minimum rules concerning the definition of criminal offences and sanctions in the areas of particularly serious crime with a cross-border dimension resulting from the nature or impact of such offences or from a special need to combat them on a common basis.

These areas of crime are the following: terrorism, trafficking in human beings and sexual exploitation of women and children, illicit drug trafficking, illicit arms trafficking, money laundering, corruption, counterfeiting of means of payment, computer crime and organised crime.

On the basis of developments in crime, the Council may adopt a European decision identifying other areas of crime that meet the criteria specified in this paragraph. It shall act unanimously after obtaining the consent of the European Parliament.

If the approximation of criminal legislation proves essential to ensure the effective implementation of a Union policy in an area which has been subject to harmonisation measures, European framework laws may establish minimum rules with regard to the definition of criminal offences and sanctions in the area concerned. Such framework laws shall be adopted by the same procedure as was followed for the adoption of the harmonisation measures in question, without prejudice to Article III-165.

Where a member of the Council considers that a draft European framework law as referred to in paragraph 1 or 2 would affect fundamental aspects of its criminal justice system, it may request that the draft framework law be referred to the European Council. In this case, where the procedure referred to in Article III-302 is applicable, it shall be suspended. After discussion, the European Council shall, within 4 months of this suspension, either:

refer the draft back to the Council, which shall terminate the suspension of the procedure referred to in Article III-302 where it is applicable, or

request the Commission or the group of Member States from which the draft framework law emanates to submit a new draft; in that case, the act originally proposed shall be deemed not to have been adopted.

If, by the end of the period referred to in paragraph 3, either no action has been taken by the European Council or if, within 12 months from the submission of a new draft under paragraph 3b), the European framework law has not been adopted, and at least one third of the Member States wish to establish enhanced cooperation on the basis of the draft framework law 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 I-43(2) and III-325(1) shall be deemed to be granted and the provisions on enhanced cooperation shall apply.

Article III-173 (new)

European laws or framework laws may establish measures to promote and support the action of Member States in the field of crime prevention. Such measures shall not include the approximation of Member States' legislative and regulatory provisions.

Article III-174 (ex Article 31(2) TEU)

Eurojust's mission shall be to support and strengthen coordination and cooperation between national investigating and prosecuting authorities in relation to serious crime affecting two or more Member States or requiring a prosecution on common bases, on the basis of operations conducted and information supplied by the Member States' authorities and by Europol.

In this context, European laws shall determine Eurojust's structure, operation, field of action and tasks. Those tasks may include:

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;

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

the strengthening of judicial cooperation, including by resolution of conflicts of jurisdiction and by close cooperation with the European Judicial Network.

European laws shall also determine arrangements for involving the European Parliament and Member States' national Parliaments in the evaluation of Eurojust's activities.

In the prosecutions referred to in this Article, and without prejudice to Article III-175, formal acts of judicial procedure shall be carried out by the competent national officials.

Article III-175 (new)

In order to combat crimes affecting the financial interests of the Union, a European law of the Council may establish a European Public Prosecutor's Office from Eurojust. The Council shall act unanimously after obtaining the consent of the European Parliament.

The European Public Prosecutor's Office shall be responsible for investigating, prosecuting and bringing to judgment, where appropriate in liaison with Europol, the perpetrators of and accomplices in serious crimes affecting more than one Member State and of offences against the Union's financial interests, as determined by the European law provided for in paragraph 1. It shall exercise the functions of prosecutor in the competent courts of the Member States in relation to such offences.

The European law 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.

The European Council may, at the same time or subsequently, adopt a European decision amending paragraph 1 in order to extend the powers of the European Public Prosecutor's Office to include serious crime having a cross-border dimension and amending accordingly paragraph 2 as regards the perpetrators of, and accomplices in, serious crimes affecting more than one Member State. The European Council shall act unanimously after obtaining the consent of the European Parliament and after consulting the Commission.

Article III-176 (ex Article 30(1) TEU)

The Union shall establish police cooperation involving all the Member States' competent authorities, including police, customs and other specialised law enforcement services in relation to the prevention, detection and investigation of criminal offences.

To this end, European laws or framework laws may establish measures concerning:

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

support for the training of staff, and cooperation on the exchange of staff, on equipment and on research into crime-detection;

common investigative techniques in relation to the detection of serious forms of organized crime.

A European law or framework law of the Council may establish measures concerning operational cooperation between the authorities referred to in this Article. The Council shall act unanimously after consulting the European Parliament.

Article III-177 (ex Article 30(2) TEU)

Europol's mission is to support and strengthen action by the Member States' police authorities and other law enforcement services and their mutual cooperation in preventing and combating serious crime affecting two or more Member States, terrorism and forms of crime which affect a common interest covered by a Union policy.

European laws shall determine Europol's structure, operation, field of action and tasks. These tasks may include:

the collection, storage, processing, analysis and exchange of information forwarded particularly by the authorities of the Member States or third countries or bodies;

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.

European laws shall also lay down the procedures for scrutiny of Europol's activities by the European Parliament, together with Member States' national parliaments.

Any operational action by Europol must be carried out in liaison and in agreement with the authorities of the Member States whose territory is concerned. The application of coercive measures shall be the exclusive responsibility of the competent national authorities.

Article III-179: public health (ex Article 152 TEC)

A high level of human health protection shall be ensured in the definition and implementation of all the Union's policies and activities.

Action by the Union, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to physical and mental health. Such action shall cover:

the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education;

monitoring, early warning of and combating serious cross-border threats to health.

The Union shall complement the Member States' action in reducing drugs-related health damage, including information and prevention.

The Union shall encourage cooperation between the Member States in the areas referred to in this Article and, if necessary, lend support to their action. It shall in particular encourage cooperation between the Member States to improve the complementarity of their health services in cross-border areas.

Member States shall, in liaison with the Commission, coordinate among themselves their policies and programmes in the areas referred to in paragraph 1. The Commission may, in close contact with the Member States, take any useful initiative to promote such coordination, in particular initiatives aiming at the establishment of guidelines and indicators, the organisation of exchange of best practice, and the preparation of the necessary elements for periodic monitoring and evaluation.

The European Parliament shall be kept fully informed.

The Union and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of public health.

By way of derogation from Article I-11(5) and Article I-16(a) and in accordance with Article I-13(2)(k), European laws or framework laws shall contribute to the achievement of the objectives referred to in this Article by establishing the following measures in order to meet common safety concerns:

measures setting high standards of quality and safety of organs and substances of human origin, blood and blood derivatives; these measures shall not prevent any Member State from maintaining or introducing more stringent protective measures;

measures in the veterinary and phytosanitary fields which have as their direct objective the protection of public health;

measures setting high standards of quality and safety for medical products and devices for medical use;

measures concerning monitoring, early warning of and combating serious cross-border threats to health.

European laws or framework laws shall be adopted after consultation of the Committee of the Regions and the Economic and Social Committee.

European laws or framework laws may also establish incentive measures designed to protect and improve human health and in particular to combat the major cross-border health scourges, as well as 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. They shall be adopted after consultation of the Committee of the Regions and the Economic and Social Committee.

For the purposes set out in this Article, the Council, on a proposal from the Commission, may also adopt recommendations.

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. Measures referred to in paragraph 4(a) shall not affect national provisions on the donation or medical use of organs and blood.

Article III-181a: tourism (new)

The Union shall complement the action of the Member States in the tourism sector, in particular by promoting the competitiveness of Union undertakings in that sector.

To that end, Union action shall be aimed at:

encouraging the creation of a favourable environment for the development of undertakings in this sector;

promoting cooperation between the Member States, particularly by the exchange of good practice;

A European law or framework law 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.

Article III-182: education, youth, sport

(ex Article 149 TEC)

The Union shall contribute to the development of quality education by encouraging cooperation between Member States and, if necessary, by supporting and complementing their action. It shall fully respect the responsibility of the Member States for the content of teaching and the organisation of education systems and their cultural and linguistic diversity.

The Union shall contribute to the promotion of European sporting issues, while taking account of its specific nature, its structures based on voluntary activity and its social and educational function.

Union action shall be aimed at:

developing the European dimension in education, particularly through the teaching and dissemination of the languages of the Member States;

encouraging mobility of students and teachers, inter alia by encouraging the academic recognition of diplomas and periods of study;

promoting cooperation between educational establishments;

developing exchanges of information and experience on issues common to the education systems of the Member States;

encouraging the development of youth exchanges and of exchanges of socio-educational instructors and encouraging the participation of young people in democratic life in Europe;

encouraging the development of distance education;

developing the European dimension in sport, by promoting fairness and openness in sporting competitions and cooperation between bodies responsible for sports, and by protecting the physical and moral integrity of sportsmen and sportswomen, especially young sportsmen and sportswomen.

The Union and the Member States shall foster cooperation with third countries and the competent international organisations in the field of education and sport, in particular the Council of Europe.

In order to contribute to the achievement of the objectives referred to in this Article,

European laws or framework laws shall establish incentive actions, excluding any harmonisation of the laws and regulations of the Member States. They shall be adopted after consultation of the Committee of the Regions and the Economic and Social Committee;

the Council, on a proposal from the Commission, shall adopt recommendations.

Article III-184 (new)

The Union shall encourage cooperation between Member States in order to improve the effectiveness of systems for preventing and protecting against natural or man-made disasters.

Union action shall aim to:

support and complement Member States' action at national, regional and local level in risk prevention, in preparing their civil-protection personnel and in responding to natural or man-made disasters within the Union;

promote swift, effective operational cooperation within the Union between national civil-protection services;

promote consistency in international civil-protection work.

The measures necessary to help achieve the objectives referred to in paragraph 1 shall be enacted in European laws or framework laws, excluding any harmonisation of the laws and regulations of the Member States.

Article III-197: CFSP (ex Articles 18 and 26 TEU)

The Union Minister for Foreign Affairs, who shall chair the Foreign Affairs Council, shall contribute through his or her proposals towards the preparation of the common foreign and security policy and shall ensure implementation of the European decisions adopted by the European Council and the Council.

The Minister for Foreign Affairs 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.

In fulfilling his or her mandate, the Union Minister for Foreign Affairs shall be assisted by a European External Action Service. This service shall work in cooperation with the diplomatic services of the Member States and shall comprise officials from relevant departments of the General Secretariat of the Council and of the Commission as well as staff seconded from national diplomatic services of the Member States. The organisation and functioning of the European External Action Service shall be established by a European decision of the Council. The Council shall act on a proposal from the Union Minister for Foreign Affairs after consulting the European Parliament and after obtaining the consent of the Commission.

Article III-200 (ex Article 22 TEU)

Any Member State, the Union Minister for Foreign Affairs, or that Minister with the Commission's support, may refer to the Council any question relating to the common foreign and security policy and may submit to it initiatives or proposals as appropriate.

In cases requiring a rapid decision, the Union Minister for Foreign Affairs, of the Minister's own motion or at the request of a Member State, shall convene an extraordinary meeting of the Council within forty-eight hours or, in an emergency, within a shorter period.

Article III-201 (ex Article 23 TEU)

The European decisions referred to in this Chapter shall be adopted by the Council acting unanimously.

When abstaining in a vote, any member of the Council may qualify its abstention by making a formal declaration. In that case, it shall not be obliged to apply the European decision, but shall accept that the latter commits the Union. In a spirit of mutual solidarity, the Member State concerned shall refrain from any action likely to conflict with or impede Union action based on that decision and the other Member States shall respect its position. If the members of the Council qualifying their abstention in this way represent at least one third of the Member States comprising at least one third of the population of the Union, the decision shall not be adopted.

By way of derogation from paragraph 1, the Council shall act by a qualified majority:

when adopting European decisions defining a Union action or position on the basis of a European decision of the European Council relating to the Union's strategic interests and objectives, as referred to in Article III-194(1);

when adopting a European decision defining a Union action or position, on a proposal which the Union Minister for Foreign Affairs has presented following a specific request to him or her from the European Council, made on its own initiative or that of the Minister;

when adopting a European decision implementing a European decision defining a Union action or position;

when adopting a European decision concerning the appointment of a special representative in accordance with Article III-203.

If a member of the Council declares that, for vital and stated reasons of national policy, it intends to oppose the adoption of a European decision to be adopted by qualified majority, a vote shall not be taken. The Union Minister for Foreign Affairs will, in close consultation with the Member State involved, search for a solution acceptable to it. If he or she does not succeed, the Council may, acting by a qualified majority, request that the matter be referred to the European Council for a European decision by unanimity.

In accordance with Article I-39(8) the European Council may unanimously adopt a European decision stipulating that the Council shall act by a qualified majority in cases other than those referred to in paragraph 2.

Paragraphs 2 and 3 shall not apply to decisions having military or defence implications.

Article III-212 (new)

The European Armaments, Research and Military Capabilities Agency, established by Article I-40(3) and subject to the authority of the Council, shall have as its task to:

contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;

promote harmonisation of operational needs and adoption of effective, compatible procurement methods;

propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;

support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;

contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.

The Agency shall be open to all Member States wishing to be part of it. The Council, acting by qualified majority, shall adopt a European 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.

Article III-213 (new)

Those Member States which wish to participate in the permanent structured cooperation defined in Article I-40(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 Union Minister for Foreign Affairs.

Within three months following such notification, the Council shall adopt a European decision establishing permanent structured cooperation and determining the list of participating Member States. The Council shall act by a qualified majority after consulting the Union Minister for Foreign Affairs.

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 Union Minister for Foreign Affairs.

The Council shall adopt a European decision confirming the participation of the Member State concerned which fulfils the criteria and makes the commitments referred to in Articles 1 and 2 of the Protocol referred to in paragraph 1. The Council shall act by a qualified majority after consulting the Union Minister for Foreign Affairs. Only members of the Council representing the participating Member States shall take part in the vote.

A qualified majority shall be defined as at least 55% of the members of the Council representing the participating Member States, comprising at least 65% of the population of these States.

A blocking minority must include at least the minimum number of Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

If a participating Member State no longer fulfils the criteria or is no longer able to meet the commitments, referred to in Articles 1 and 2 of the Protocol mentioned in paragraph 1, the Council may adopt a European decision suspending the participation of the Member State concerned.

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.

A qualified majority shall be defined as at least 55% of the members of the Council representing the participating Member States, comprising at least 65% of the population of these States.

A blocking minority must include at least the minimum number of Council members representing more than 35% of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.

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.

The European decisions and recommendations by the Council adopted within the framework of structured cooperation, other than those provided for in paragraphs 2 to 5, shall be adopted by unanimity. For the purposes of this paragraph, unanimity shall be constituted by the votes of the representatives of the participating Member States only.

Article III-231 (new)

Should a Member State fall victim to a terrorist attack or 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.

The arrangements for the implementation by the Union of the solidarity clause referred to in Article I-42 shall be defined by a European decision adopted by the Council acting on a joint proposal by the Commission and the Union Minister for Foreign Affairs. The Council shall act in accordance with Article III-201(1) where this decision has defence implications. The European Parliament shall be informed.

For the purposes of this paragraph and without prejudice to Article III-247, 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 III-162, which shall, if necessary, submit joint opinions.

The European Council shall regularly assess the threats facing the Union in order to enable the Union and its Member States to take effective action.

Article III-325: enhanced cooperation (ex Article 27 C TEU)

Member States which wish to establish enhanced cooperation between themselves in one of the areas covered by the Constitution, with the exception of fields of exclusive competence and the common foreign and security policy, shall address a request to the Commission, specifying the scope and objectives of the enhanced cooperation proposed. The Commission may submit a proposal to the Council to that effect. In the event of the Commission not submitting a proposal, it shall inform the Member States concerned of the reasons for not doing so.

Authorisation to proceed with enhanced cooperation shall be granted by a European decision of the Council, which shall act on a proposal from the Commission and after obtaining the consent of the European Parliament.

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 Union Minister for Foreign Affairs, who shall give an opinion on whether the enhanced cooperation contemplated is consistent with the Union's common foreign and security policy, and to the Commission, which shall give its opinion in particular on whether the enhanced cooperation proposed is consistent with other Union policies. It shall also be forwarded to the European Parliament for information.

Authorisation to proceed with enhanced cooperation shall be granted by a European decision of the Council acting unanimously.

Article IV-7 (ex Article 48 TEU)

Ordinary revision procedure

The government of any Member State, the European Parliament or the Commission may submit to the Council proposals for the amendment of this Treaty. These proposals shall be submitted to the European Council by the Council and the national Parliaments of the Member States shall be notified.

If the European Council, after consulting the European Parliament and the Commission, adopts by a simple majority a decision in favour of examining the proposed amendments, the President of the European Council shall convene a Convention composed of representatives of the national Parliaments of the Member States, of the Heads of State or Government of the Member States, of the European Parliament and of the Commission. The European Central Bank shall also be consulted in the case of institutional changes in the monetary area. The Convention shall examine the proposals for amendments and shall adopt by consensus a recommendation to a conference of representatives of the governments of the Member States as provided for in paragraph 3.

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.

A conference of representatives of the governments of the Member States shall be convened by the President of the Council for the purpose of determining by common accord the amendments to be made to this Treaty.

The amendments shall enter into force after being ratified by all the Member States in accordance with their respective constitutional requirements.

If, two years after the signature of the treaty amending this Treaty, four fifths of the Member States have ratified it and one or more Member States have encountered difficulties in proceeding with ratification, the matter shall be referred to the European Council.

Article IV-7a (new)

Simplified revision procedure

Where Part III provides for the Council to act by unanimity in a given area or case, the European Council may adopt a European decision authorising the Council to act by a qualified majority in that area or in that case.

This paragraph shall not apply to decisions with military implications or those in the area of defence.

Where Part III provides for European laws and framework laws to be adopted by the Council according to a special legislative procedure, the European Council may adopt a European decision allowing for the adoption of such European laws or framework laws according to the ordinary legislative procedure.

Any initiative taken by the European Council on the basis of paragraphs 1 or 2 shall be notified to the national Parliaments of the Member States. If a national Parliament makes known its opposition within six months of the date of such notification, the European decision referred to in paragraphs 1 or 2 shall not be adopted. In the absence of opposition, the European Council may adopt the decision.

For the adoption of the European decisions referred to in paragraphs 1 and 2, the European Council shall act by unanimity after obtaining the consent of the European Parliament, which shall be given by a majority of its component members.

Article IV-7b (new)

Simplified revision procedure concerning internal Union policies

The Government of any Member State, the European Parliament or the Commission may submit to the European Council proposals for revising all or part of the provisions of Title III of Part III on the internal policies of the Union.

The European Council may adopt a European decision amending all or part of the provisions of Title III of Part III. 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.

Such a decision shall not come into force until it has been approved by the Member States in accordance with their respective constitutional requirements.

The European decision referred to in paragraph 2 may not increase the competences attributed to the Union by this Treaty.

V.2 - PROTOCOLES

Protocol on the role of Member States' national parliaments in the European Union

THE HIGH CONTRACTING PARTIES,

RECALLING that the way in which national Parliaments scrutinise their governments in relation to the activities of the Union is a matter for the particular constitutional organisation and practice of each Member State,

DESIRING to encourage greater involvement of national Parliaments in the activities of the European Union and to enhance their ability to express their views on draft European legislative acts as well as on other matters which may be of particular interest to them,

HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty establishing a Constitution for Europe and to the Treaty establishing the European Atomic Energy Community:

TITLE 1

Information for national Parliaments

Article 1

Commission consultation documents (green and white papers and communications) shall be forwarded directly by the Commission to national Parliaments upon publication. The Commission shall also forward the annual legislative programme as well as any other instrument of legislative planning or policy to national Parliaments, at the same time as to the European Parliament and the Council.

Article 2

Draft European legislative acts sent to the European Parliament and to the Council shall be forwarded to national Parliaments.

"Draft European legislative acts" shall mean proposals from the Commission, initiatives from a group of Member States, initiatives from the European Parliament, requests from the Court of Justice, recommendations from the European Central Bank or requests for the European Investment Bank for the adoption of a European legislative act.

Draft European legislative acts originating from the Commission shall be forwarded to national Parliaments directly by the Commission, at the same time as to the European Parliament and the Council.

Draft European legislative acts originating from the European Parliament shall be forwarded to national Parliaments directly by the European Parliament.

Draft European legislative acts originating from a group of Member States, the Court of Justice, the European Central Bank or the European Investment Bank shall be forwarded to national Parliaments by the Council.

Article 3

National Parliaments may send to the Presidents of the European Parliament, the Council and the Commission a reasoned opinion on whether a draft European legislative act complies with the principle of subsidiarity, according to the procedure laid down in the Protocol on the application of the principles of subsidiarity and proportionality.

If the draft European legislative act originates from a group of Member States, the President of the Council shall forward the reasoned opinion(s) to the governments of those Member States.

If the draft European legislative act originates from the Court of Justice, the European Central Bank or the European Investment Bank, the President of the Council shall forward the reasoned opinion(s) to the institution or body concerned.

Article 4

A six-week period shall elapse between a draft European legislative act being made available to national Parliaments in the official languages of the Union and the date when it is placed on a provisional agenda for the Council for its adoption or for adoption of a position under a legislative procedure. Exceptions shall be possible in cases of urgency, the reasons for which shall be stated in the act or position of the Council. Save in urgent cases for which due reasons have been given, no agreement may be established on a draft European legislative act during those six weeks. Save in urgent cases for which due reasons have been given, a ten-day period shall elapse between the placing of a draft European legislative act on the provisional agenda for the Council and the adoption of a position.

Article 5

The agendas for and the outcome of meetings of the Council, including the minutes of meetings where the Council is deliberating on draft European legislative acts, shall be forwarded directly to national Parliaments, at the same time as to Member States' governments.

Article 6

When the European Council intends to make use of the provision in Article I-33(4) of the Constitution, national Parliaments shall be informed at least six months before any European decision is adopted.

When the European Council intends to make use of the provision in Article I-22(4) of the Constitution, national Parliaments shall be informed at least four months before any European decision is adopted.

Article 7

The Court of Auditors shall forward its annual report to national Parliaments, for information, at the same time as to the European Parliament and to the Council.

Article 8

Where the national Parliamentary system is not unicameral, Articles 1 to 7 shall apply to the component chambers.

TITLE 2

Interparliamentary cooperation

Article 9

The European Parliament and the national Parliaments shall together determine the organisation and promotion of effective and regular interparliamentary cooperation within the European Union.

Article 10

The Conference of European Affairs Committees may submit any contribution it deems appropriate for the attention of the European Parliament, the Council and the Commission. That Conference shall in addition promote the exchange of information and best practice between national Parliaments and the European Parliament, including their special committees. It may also organize interparliamentary conferences on specific topics, in particular to debate matters of common foreign and security policy, including common security and defence policy. Contributions from the Conference shall not bind national Parliaments and shall not prejudge their positions.

Protocol on the application of the principles of subsidiarity and proportionality

THE HIGH CONTRACTING PARTIES,

WISHING to ensure that decisions are taken as closely as possible to the citizens of the Union,

RESOLVED to establish the conditions for the application of the principles of subsidiarity and proportionality, as enshrined in Article I-9 of the Constitution, and to establish a system for monitoring the application of those principles by the Institutions,

HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty establishing a Constitution for Europe:

Article 1

Each Institution shall ensure constant respect for the principles of subsidiarity and proportionality, as laid down in Article I-9 of the Constitution.

Article 2

Before proposing European legislative acts, the Commission shall consult widely. Such consultations shall, where appropriate, take into account the regional and local dimension of the action envisaged. In cases of exceptional urgency, the Commission shall not conduct such consultations. It shall give reasons for the decision in its proposal.

Article 2a

The term "draft European legislative act" shall denote Commission proposals, initiatives of groups of Member States, initiatives of the European Parliament, requests from the Court of Justice, recommendations from the European Central Bank and requests from the European Investment Bank for the adoption of a European legislative act.

Article 3

The Commission shall forward its proposals for European legislative acts and its amended proposals to the national Parliaments of the Member States at the same time as to the Union legislator.

The European Parliament shall forward its draft European legislative acts and its amended drafts to the national Parliaments.

The Council shall forward draft legislative acts originating from a group of Member States, the Court of Justice, the European Central Bank or the European Investment Bank and amended drafts to the national Parliaments of the Member States.

Upon adoption, legislative resolutions of the European Parliament and positions of the Council shall be forwarded by them to the national Parliaments.

Article 4

Draft European legislative acts shall be justified with regard to the principles of subsidiarity and proportionality. Any draft European legislative act should contain a detailed statement making it possible to appraise compliance with the principles of subsidiarity and proportionality.

This statement should contain some assessment of the proposal's financial impact and, in the case of a European framework law, of its implications for the rules to be put in place by Member States, including, where necessary, the regional legislation. The reasons for concluding that a Union objective can be better achieved at Union level shall be substantiated by qualitative and, wherever possible, quantitative indicators. Draft European legislative acts shall take account of the need for any burden, whether financial or administrative, falling upon the Union, national governments, regional or local authorities, economic operators and citizens, to be minimised and commensurate with the objective to be achieved.

Article 5

Any national Parliament or any chamber of a national Parliament of a Member State may, within six weeks from the date of transmission of a draft European legislative act, send to the Presidents of the European Parliament, the Council and the Commission a reasoned opinion stating why it considers that the draft in question does not comply with the principle of subsidiarity. It will be for each national Parliament or each chamber of a national Parliament to consult, where appropriate, regional parliaments with legislative powers.

If the draft European legislative act originates from a group of Member States, the President of the Council shall forward the opinion to the governments of those Member States.

If the draft European legislative act originates from the Court of Justice, the European Central Bank or the European Investment Bank, the President of the Council shall forward the opinion to the institution or body concerned.

Article 6

The European Parliament, the Council of Ministers and the Commission, and, where appropriate, the group of Member States, the Court of Justice, the European Central Bank or the European Investment Bank if the draft legislative act originates from them, shall take account of the reasoned opinions issued by national Parliaments or by a chamber of a national Parliament.

Each national Parliament shall have two votes, shared out on the basis of the national parliamentary system. In the case of a bicameral Parliamentary system, each of the two chambers shall have one vote.

Where reasoned opinions on a draft European legislative act's non-compliance with the principle of subsidiarity represent at least one third of all the votes allocated to the national Parliaments and their chambers, the draft must be reviewed. This threshold shall be a quarter in the case of a draft European legislative act submitted on the basis of Article III-165 of the Constitution on the area of freedom, security and justice.

After such review, the Commission or, where appropriate, the group of Member States, the European Parliament, the Court of Justice, the European Central Bank or the European Investment Bank if the draft European legislative act originates from them, may decide to maintain, amend or withdraw the draft. Reasons must be given for this decision.

Article 7

The Court of Justice of the European Union shall have jurisdiction to hear actions on grounds of infringement of the principle of subsidiarity by a European legislative act, brought in accordance with the rules laid down in Article III-270 of the Constitution by Member States, or notified by them in accordance with their legal order on behalf of their national Parliament or a chamber of it.

In accordance with the same Article of the Constitution, the Committee of the Regions may also bring such actions as regards European legislative acts for the adoption of which the Constitution provides that it be consulted.

Article 8

The Commission shall submit each year to the European Council, the European Parliament, the Council and the national Parliaments a report on the application of Article I-9 of the Constitution.

This annual report shall also be forwarded to the Committee of the Regions and to the Economic and Social Committee.

Protocol on the excessive deficit procedure

THE HIGH CONTRACTING PARTIES,

DESIRING to lay down the details of the excessive deficit procedure referred to in Article III-76 of the Constitution,

HAVE AGREED upon the following provisions, which shall be annexed to the Treaty establishing a Constitution for Europe:

Article 1

The reference values referred to in Article III-76(2) of the Constitution are:

3% for the ratio of the planned or actual government deficit to gross domestic product at market prices;

60% for the ratio of government debt to gross domestic product at market prices.

Article 2

In Article III-76 of the Constitution and in this Protocol:

government means general government, that is central government, regional or local government and social security funds, to the exclusion of commercial operations, as defined in the European System of Integrated Economic Accounts;

deficit means net borrowing as defined in the European System of Integrated Economic Accounts;

investment means gross fixed capital formation as defined in the European System of Integrated Economic Accounts;

debt means total gross debt at nominal value outstanding at the end of the year and consolidated between and within the sectors of general government as defined in point (a).

Article 3

In order to ensure the effectiveness of the excessive deficit procedure, the governments of the Member States shall be responsible under this procedure for the deficits of general government as defined in point (a) of Article 2. The Member States shall ensure that national procedures in the budgetary area enable them to meet their obligations in this area deriving from the Constitution.

The Member States shall report their planned and actual deficits and the levels of their debt promptly and regularly to the Commission.

Article 4

The statistical data to be used for the application of this Protocol shall be provided by the Commission.

Protocol on permanent structured cooperation established by Articles I-40(6)
and III-213 of the Constitution

THE HIGH CONTRACTING PARTIES,

Having regard to Articles I-40(6) and III-213 of the Constitution,

RECALLING that the Union is pursuing a common foreign and security policy based on the achievement of growing convergence of action by Member States.

RECALLING that the common security and defence policy is an integral part of the common foreign and security policy; that it provides the Union with operational capacity drawing on civil and military assets; that the Union may use such assets on missions referred to in Article III-210 outside the Union for peace-keeping, conflict prevention and strengthening international security in accordance with the principles of the United Nations Charter; that the performance of these tasks is to be undertaken using capabilities provided by the Member States in accordance with the principle of a single set of forces;

RECALLING that the common security and defence policy of the Union does not prejudice the specific character of the security and defence policy of certain Member States;

RECALLING that the common security and defence policy of the Union respects the obligations under the North Atlantic Treaty of those Member States, which see their common defence realized in the North Atlantic Treaty Organisation, which remains the foundation of the collective defence of its members, and is compatible with the common security and defence policy established within that framework;

CONVINCED that a more assertive Union role in security and defence matters will contribute to the vitality of a renewed Atlantic Alliance, in accordance with the Berlin Plus arrangements;

DETERMINED to ensure that the Union is capable of fully assuming its responsibilities within the international community;

RECOGNISING that the United Nations Organisation may request the Union's assistance for the urgent implementation of missions undertaken under Chapters VI and VII of the United Nations Charter;

RECOGNISING that the strengthening of the security and defence policy will require efforts by Member States in the area of capabilities;

CONSCIOUS that embarking on a new stage in the development of the European security and defence policy involves a determined effort by the Member States concerned;

RECALLING the importance of the Minister for Foreign Affairs being fully involved in proceedings relating to permanent structured cooperation;

HAVE AGREED UPON the following provisions, which shall be annexed to the Constitution:

Article 1

The permanent structured cooperation referred to in Article I-40(6) of the Constitution shall be open to any Member State which undertakes, from the date of entry into force of the Treaty establishing a Constitution for Europe, to:

proceed more intensively to develop its defence capacities through the development of its national contributions and participation, where appropriate, in multinational forces, in the main European equipment programmes, and in the activity of the European agency in the field of defence capabilities development, research, acquisition and armaments (hereinafter referred to as the "Agency"), and

have the capacity to supply by 2007 at the latest, either at national level or as a component of multinational force groups, targeted combat units for the missions planned, structured at a tactical level as combat formations, with support elements including transport and logistics, capable of carrying out the tasks referred in Article III-210, within a period of 5 to 30 days, in particular in response to requests from the United Nations Organisation, and which can be sustained for an initial period of 30 days and be extended up to at least 120 days.

Article 2

To achieve the objectives laid down in Article 1, Member States participating in permanent structured cooperation shall undertake to:

cooperate, as from the entry into force of the Treaty establishing a Constitution for Europe, with a view to achieving approved objectives concerning the level of investment expenditure on defence equipment, and regularly review these objectives in the light of the security environment and of the Union's international responsibilities;

bring their defence apparatus into line with each other as far as possible, particularly by harmonising the identification of their military needs, by pooling and, where appropriate, specialising their defence means and capabilities, and by encouraging cooperation in the fields of training and logistics;

take concrete measures to enhance the availability, interoperability, flexibility and deployability of their forces, in particular by identifying common objectives regarding the commitment of forces, including possibly reviewing their national decision-making procedures;

work together to ensure that they take the necessary measures to make good, including through multinational approaches, and without prejudice to undertakings in this regard within NATO, the shortfalls perceived in the framework of the "Capability Development Mechanism;

take part, where appropriate, in the development of major joint or European equipment programmes in the framework of the Agency.

Article 3

The Agency shall contribute to the regular assessment of participating Member States' contributions with regard to capabilities, in particular contributions made in accordance with the criteria to be established inter alia on the basis of Article 2, and shall report thereon at least once a year. The assessment may serve as a basis for Council recommendations, and decisions adopted in accordance with Article III-213 of the Constitution.

Protocol on economic, social and territorial cohesion

THE HIGH CONTRACTING PARTIES,

RECALLING that Article I-3 of the Constitution includes the objective of promoting economic, social and territorial cohesion and solidarity between Member States and that economic, social and territorial cohesion figures among the areas of shared competence of the Union listed in Article I-13 of the Constitution,

RECALLING that the provisions of Section 3 of Chapter III of Title III of Part III of the Constitution, on economic, social and territorial cohesion as a whole provide the legal basis for consolidating and further developing the Union's action in the field of economic, social and territorial cohesion, including the creation of a fund,

RECALLING that Article III-119 of the Constitution envisages setting up a Cohesion Fund,

NOTING that the European Investment Bank is lending large and increasing amounts for the benefit of the poorer regions,

NOTING the desire for greater flexibility in the arrangements for allocations from the Structural Funds,

NOTING the desire for modulation of the levels of Union participation in programmes and projects in certain countries,

NOTING the proposal to take greater account of the relative prosperity of Member States in the system of own resources,

HAVE AGREED upon the following provisions, which shall be annexed to the Treaty establishing a Constitution for Europe:

Sole Article

The Member States reaffirm that the promotion of economic, social and territorial cohesion is vital to the full development and enduring success of the Union.

They reaffirm their conviction that the Structural Funds should continue to play a considerable part in the achievement of Union objectives in the field of cohesion.

They reaffirm their conviction that the European Investment Bank should continue to devote the majority of its resources to the promotion of economic, social and territorial cohesion, and declare their willingness to review the capital needs of the European Investment Bank as soon as this is necessary for that purpose.

They agree that the Cohesion Fund shall provide Union financial contributions to projects in the fields of environment and trans-European networks in Member States with a per capita GNP of less than 90% of the Union average which have a programme leading to the fulfilment of the conditions of economic convergence as set out in Article III-76 of the Constitution.

They declare their intention of allowing a greater margin of flexibility in allocating financing from the Structural Funds to specific needs not covered under the present Structural Funds regulations.

They declare their willingness to modulate the levels of Union participation in the context of programmes and projects of the Structural Funds, with a view to avoiding excessive increases in budgetary expenditure in the less prosperous Member States.

They recognise the need to monitor regularly the progress made towards achieving economic, social and territorial cohesion, and state their willingness to study all necessary measures in this respect.

They declare their intention of taking greater account of the contributive capacity of individual Member States in the system of own resources, and of examining means of correcting, for the less prosperous Member States, regressive elements existing in the present own resources system.

Protocol on the transitional provisions relating to the Institutions and bodies of the Union

THE HIGH CONTRACTING PARTIES,

WHEREAS, in order to organise the transition between the European Union established by the Treaty on European Union and the European Community and the European Union established by the Treaty establishing a Constitution for Europe which is their successor, it is necessary to lay down transitional provisions which will apply before all the provisions of the Constitution and the instruments necessary for their implementation take full effect,

HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty establishing a Constitution for Europe and to the Treaty establishing the European Atomic Energy Community:

TITLE 1

Provisions concerning the European Parliament

Article 1

In accordance with Article I-19(2) of the Constitution, the European Council shall adopt a European decision determining the composition of the European Parliament sufficiently in advance of the 2009 parliamentary elections.

During the 2004-2009 parliamentary term, the composition and the number of representatives elected to the European Parliament in each Member State shall remain the same as on the date of the entry into force of the Treaty establishing a Constitution for Europe, the number of representatives being as follows:

Belgium 24

Czech Republic 24

Denmark 14

Germany 99

Estonia 6

Greece 24

Spain 54

France 78

Ireland 13

Italy 78

Cyprus 6

Latvia 9

Lithuania 13

Luxembourg 6

Hungary 24

Malta 5

Netherlands 27

Austria 18

Poland 54

Portugal 24

Slovenia 7

Slovakia 14

Finland 14

Sweden 19

United Kingdom 78

TITLE 2

Provisions concerning the European Council and the Council of Ministers

Article 2

The provisions of Article I-24(1) (2) and (2a) of the Constitution on the definition of the qualified majority in the European Council and the Council shall take effect on 1 November 2009, after the 2009 European Parliament elections have taken place in accordance with Article I-19(2).

The following provisions shall remain in force until 31 October 2009, without prejudice to Article I-24 of the Constitution.

For acts of the European Council and of the Council requiring a qualified majority, members' votes shall be weighted as follows:

Belgium 12

Czech Republic 12

Denmark 7

Germany 29

Estonia 4

Greece 12

Spain 27

France 29

Ireland 7

Italy 29

Cyprus 4

Latvia 4

Lithuania 7

Luxembourg 4

Hungary 12

Malta 3

Netherlands 13

Austria 10

Poland 27

Portugal 12

Slovenia 4

Slovakia 7

Finland 7

Sweden 10

United Kingdom 29

Acts shall be adopted if there are at least 232 votes in favour representing a majority of the members where, under the Constitution, they must be adopted on a proposal from the Commission. In other cases decisions shall be adopted if there are at least 232 votes in favour representing at least two thirds of the members.

A member of the European Council or the Council may request that, where an act is adopted by the European Council or the Council by a qualified majority, a check is made to ensure that the member States comprising the qualified majority represent at least 62% of the total population of the Union. If that proves not to be the case, the act shall not be adopted.

For subsequent accessions, the threshold referred to in paragraph 2 shall be calculated to ensure that the qualified majority threshold expressed in votes does not exceed that resulting from the table in the Declaration on the enlargement of the European Union in the Final Act of the Conference which adopted the Treaty of Nice.

The provisions of the following Articles shall take effect on 1 November 2009:

Article I-43(3), third, fourth and fifth subparagraphs, of the Constitution;

Article I-58(5), second and third subparagraphs, of the Constitution;

Article I-59(3a), second subparagraph, of the Constitution;

Article III-71(4), third and fourth subparagraphs, of the Constitution;

Article III-76(6), third and fourth subparagraphs, of the Constitution;

Article III-76(7), third and fourth subparagraphs, of the Constitution;

Article III-88(2), second and third subparagraphs, of the Constitution;

Article III-90(3), second and third subparagraphs, of the Constitution;

Article III-91(4), second and third subparagraphs, of the Constitution;

Article III-92(2), third subparagraph, of the Constitution;

Article III-213(3), third and fourth subparagraphs, of the Constitution;

Article III-213(4) third and fourth subparagraphs, of the Constitution;

Article 1, second, third and fourth subparagraphs, and Article 3(1), second, third and fourth subparagraphs, of the Protocol on the position of the United Kingdom and Ireland on policies in respect of border controls, asylum and immigration, on judicial cooperation in civil matters and on police cooperation;

Article 1, second, third and fourth subparagraphs, of the Protocol on the position on Denmark and Article 1, second, third and fourth subparagraphs, of the Annex to that Protocol.

Until 31 October 2009, the qualified majority shall, in cases where not all the members of the Council participate in voting, namely in the cases referred to in the articles mentioned in the first subparagraph, be defined as the same proportion of the weighted votes and the same proportion of the number of the Council members and, if appropriate, the same percentage of the population of the Member States concerned as laid down in paragraph 2.

Article 3

Until entry into force of the decision referred to in Article I-23(3) of the Constitution, the Council may meet in the configurations laid down in Article I-23(1) and (2) and in the other configurations on the list established by a decision of the General Affairs Council, acting by a simple majority.

TITLE 3

Provisions concerning the Commission, including the Union's Minister of Foreign Affairs

Article 4

The Members of the Commission in office on the date of entry into force of the Treaty establishing a Constitution for Europe shall remain in office until the end of their term of office. However, on the day of the appointment of the Union Minister for Foreign Affairs, the term of office of the Member having the same nationality as the Union Minister for Foreign Affairs shall end.

TITLE 3a

Provisions concerning the Secretary-General of the Council, High Representative for the common foreign and security policy and the Deputy Secretary-General of the Council Article 4a

The terms of office of the Secretary-General of the Council, High Representative for the common foreign and security policy and the Deputy Secretary-General of the Council shall end on the date of entry into force of the Treaty establishing a Constitution for Europe. The Council shall appoint a Secretary-General in conformity with Article III-247(2) of the Constitution.

TITLE 4

Provisions concerning advisory bodies

Article 5

Until entry into force of the decision referred to in Article III-292, the allocation of members of the Committee of the Regions shall be as follows:

Belgium 12

Czech Republic 12

Denmark 9

Germany 24

Estonia 7

Greece 12

Spain 21

France 24

Ireland 9

Italy 24

Cyprus 6

Latvia 7

Lithuania 9

Luxembourg 6

Hungary 12

Malta 5

Netherlands 12

Austria 12

Poland 21

Portugal 12

Slovenia 7

Slovakia 9

Finland 9

Sweden 12

United Kingdom 24

Article 6

Until entry into force of the decision referred to in Article III-295, the allocation of members
of the Economic and Social Committee shall be as follows:

Belgium 12

Czech Republic 12

Denmark 9

Germany 24

Estonia 7

Greece 12

Spain 21

France 24

Ireland 9

Italy 24

Cyprus 6

Latvia 7

Lithuania 9

Luxembourg 6

Hungary 12

Malta 5

Netherlands 12

Austria 12

Poland 21

Portugal 12

Slovenia 7

Slovakia 9

Finland 9

Sweden 12

United Kingdom 24

V.3 - DECLARATIONS

Declaration re Article I-22, paragraph 6, concerning the European Council decision
on the exercise of the Presidency of the Council of Ministers

The Conference declares that the European Council should begin preparing the European decision establishing the procedures for implementing the decision on the exercise of the Presidency of the Council as soon as the Treaty establishing a Constitution for Europe is signed and should give its political approval within six months. A draft decision is set out below:

Draft decision of the European Council on the exercise of the Presidency of the Council of Ministers

Article 1

The Presidency of the Council, with the exception of the Foreign Affairs configuration, shall be held by pre-established groups of three Member States for a period of 18 months. The groups shall be made up on a basis of equal rotation among the Member States, taking into account their diversity and geographical balance within the Union.

Each member of the group shall in turn chair for a six-month period all configurations of the Council, with the exception of the Foreign Affairs configuration. The other members of the group shall assist the Chair in all its responsibilities on the basis of a common programme. Members of the team may decide alternative arrangements among themselves.

Article 2

The Committee of Permanent Representatives shall be chaired by a representative of the member of the group chairing the General Affairs Council.

The Chair of the Political and Security Committee shall be held by a representative of the Union Minister for Foreign Affairs.

The chair of the preparatory bodies of the Council configurations referred to in Article 1 shall fall to the member of the group chairing the related configuration, unless decided otherwise in accordance with the procedure laid down in Article 4.

Article 3

The General Affairs Council shall ensure consistency and continuity in the work of the different Council configurations in the framework of multiannual programmes in cooperation with the Commission. The Member States holding the Presidency shall take all necessary measures for the organisation and smooth operation of the Council's work, with the assistance of the General Secretariat of the Council.

Article 4

The Council shall adopt a European decision establishing the measures for the implementation of this decision.

Declaration re Article I-24

The Conference declares that the European decision relating to the implementation of Article I-24 will be adopted by the Council on the day the Treaty establishing a Constitution for Europe enters into force. The draft decision is set out below:

Draft Council Decision relating to the implementation of Article I-24

THE COUNCIL OF THE EUROPEAN UNION,

Whereas:

It is considered appropriate to adopt provisions allowing for a smooth transition from the system for decision-making in the Council by qualified majority as defined in the Treaty of Nice and set out in Article 2, paragraph 2 of the Protocol on the transitional provisions relating to the institutions and bodies of the Union annexed to the Constitution, which will continue to apply until 31 October 2009 and the voting system foreseen under Article I-24 of the Constitution, which will apply with effect from 1 November 2009.

It is recalled that it is the practice of the Council to devote every effort to strengthening the democratic legitimacy of decisions taken by qualified majority.

It is judged appropriate to maintain the present Decision as long as is necessary to ensure smooth transition to the new voting system foreseen in the Constitution,

DECIDES:

Article 1

If members of the Council, representing:

at least three-quarters of the level of population, or

at least three-quarters of the number of Member States necessary to constitute a blocking minority resulting from the application of Article I-24, first subparagraph, or second subparagraph, indicate their opposition to the Council adopting an act by a qualified majority, the Council shall discuss the issue.

Article 2

The Council shall, in the course of these discussions, do all in its power to reach, within a reasonable time and without prejudicing obligatory time limits laid down by Union law, a satisfactory solution to address concerns raised by the members of the Council referred to in Article 1.

Article 3

To this end, the President of the Council, with the assistance of the Commission and respecting the Rules of Procedure of the Council, shall undertake any initiative necessary to facilitate a wider basis of agreement in the Council. The members of the Council shall lend him or her their assistance.

Article 4

The present Decision shall take effect on 1 November 2009. It shall remain in force at least until 2014. Thereafter the Council may adopt a European decision repealing it.

Declaration re Article I-25

The Conference considers that when the Commission no longer includes nationals of all Member States, the Commission should pay particular attention to the need to ensure full transparency in relations with all Member States. Accordingly, the Commission should liaise closely with all Member States, whether or not they have a national serving as Member of the Commission, and in this context pay special attention to the need to share information and consult with all Member States.

The Conference also considers that the Commission should take all the necessary measures to ensure that political, social and economic realities in all Member States, including those which have no national serving as Member of the Commission, are fully taken into account. These measures should include ensuring that the position of those Member States is addressed by appropriate organisational arrangements.

Declaration re Article I-26

The Conference considers that, in accordance with the provisions of the Constitution, the European Parliament and the European Council are jointly responsible for the smooth running of the process leading to the election of the President of the European Commission. Prior to the decision of the European Council, representatives of the European Parliament and of the European Council will thus conduct the necessary consultations in the framework deemed the most appropriate. In accordance with Article I-26(1), these consultations will focus on the backgrounds of the candidates for President of the Commission, taking account of the elections to the European Parliament, in accordance. The arrangements for such consultations may be determined in due course by mutual agreement between the European Parliament and the European Council.