THE EUROPEAN COUNCIL

LUXEMBOURG3 DECEMBER 1985

Documents in the dossier include:

Luxembourg European CouncilReproduced from the Bulletin of the European Communities, No. 11/1985

European Community Leaders Agree to Modify Founding TreatyEuropean Community News No. 41/1985European Community Information Service

Washington DC

1 . Luxembourg European Council

1. The European Council , which metin Luxembourg on 2 and 3 Decemberreached agreement in principle on a reformof the Community s institutions designed toimprove its efficiency and extend its powersand responsibilities.

The final agreement includes monetarycooperation , the internal market, economicand social cohesion, technological cooper~

ation and the social dimension , which .Ddors sees as constituting the basis of theCommunity s revival. 'The agreement givesthe Community new horizons for the next20 years

The agreement, secured after thirty hoursof relentless discussion , includes wider useof majority voting in order to achieve asingle large Community market betweennow and the end of 1992 , extension of Com~munity competence to cover new areas~monetary policy, research and technology,and the environment-stronger financialsolidarity between Member States, in-creased powers for the European Parliamentand a legal framework of cooperation onforeign policy.

The Italian Prime Minister, Mr BettinoCraxi , reserved his final agreement until theEuropean Parliament had given its opinionin the belief that the reform did not gofar enough; the Danish Prime Minister, MrPoul Schluter, made his final agreementdependent on consultation with the DanishParliament.

It is for the Foreign Ministers , who willmeet again at the Intergovernmental Con-ferenceon 16 and 17 December, to settle anumber of matters left unresolved by theHeads of State or Government. They willalso consider the ' single act' containingamendments to the EEC Treaty and the texton political cooperation.

The agreement cannot come into force untilthe national parliaments of the enlarged

Community have considered it with a viewto ratification.

The conclusions of the President of theEuropean Council on the proceedings of the

Bull. EC 11-1985

Conference, the conclusions of the Presi-dency, the texts agreed by the EuropeanCouncil on the revision of the EEC Treatyand the draft Treaty on European cooper-ation in the sphere of foreign policy arereproduced below.

Conclusions of the Presidentof the European Councilon the proceedings of theConference of Representativesof the Governments of the MemberStates

The President made the following statement:

I. The outcome of the deliberations of the Euro-pean Council is to be considered the final decisionOn the matters dealt with.

Denmark has stated that it is unable to take aposition.

Italy has made its final acceptance conditionalupon examination by Parliament.

There are also a few reservations on specific points,namely:

(a) cohesion: reservations by Greece, Ireland andItaly;

(b) European Parliament: reservation by Italy;

(c) so.;:ial policy: reservation by the UnitedKingdom.

II. The Conference will meet again at ForeignMinister level on 16 December 1985 to finalize thetexts and take decisions, where appropriate, on

those points on which the European Coundl hasreached no decision and which are referred to theMinisters.

The Ministers will also determine the form inwhich the results of the Conference On the amend-ment of the Treaty establishing the EEC and thedraft Treaty on political cooperation on foreignpolicy are to be presented.

The President of the European Council will com-municate the texts to the European Parliament.The President of the European Coun.;:il will alsomake an oral presentation of the results of theConferen.;:e and will take part in the debate to beorganized by the European Parliament on thato.;:.;:aSlOn.

Luxembourg European Council

Conclusions of the EuropeanCouncil

Conclusions of the Presidency

Economic and social situation

I. The European Coundl examined the economkand sodal situation in the Community on thebasis of an initial statement of the strengths andweaknesses of the European economies whkh thePresident of the Commission had submitted at itsrequest.

It stresses the importan.;:e of the progress alreadymade by the European ewnomies over the lastten years with a signifi.;:ant reduction in energydependen.;:e and modernization of traditionalindustries, while maintaining a high degree ofopenness to international competition.

For the future, the Council reaffirms that theachievement of the full internal market by 1992and increased technologi.;:al .;:ooperation in Europewill make it possible to lay the foundations forthe international competitiveness of the Europeane.;:onomies and to meet the .;:hallenges of the thirdindustrial revolution.

II. The Council wekomed the very signifkantprogress made by most of the Member Statestowards rationalization and economi.;: recovery. Itnotes that this progress and the increased .;:onver-gen.;:e of e.;:onomi.;: polides have already made itpossible to stabilize the level of unemployment inthe Community and' even to redu.;:e it in some.;:ountries.

The Cound considers that , on this basis, the Euro-pean ewnomies are able to a.;:hieve better perform-ance as regards growth and employment.

It took note of the strategy of woperation forgrowth and employment outlined by the Com-mission in its annual economic report; it calls uponthe Ewfin Council to examine, on that basis, thewnditions for establishing non-inflationarygrowth leading to a substantial drop in unemploy-ment.

The European Coun.;:il stressed the role whi.;:h theCommunity must play in the recovery of worldtrade, more espedally with a view to the forth~coming GATT multilateral negotiations. It alsoagain referred to the Community s responsibility

towards wuntries of the Third World , whi.;:h willthrough growth and e.;:onomi.;: developmentbe.;:ome a.;:tive partners in world trade.

III. The Coun.;:il also wished to emphasize thatapart from general ewnomic polides, progress

was ne.;:essary to improve the environment forundertakings. Referring to its wndusions in Brus~sels in Mar.;:h 1985, the Cound wanted a practkalsign to be given of its desire to redu.;:e the adminis-trative and legal .;:ontraints whi.;:h hold back thecreation .and development of small and medium-sized undertakings. In this .;:onne.;:tion, it noted

with interest that the Commission was undertakingto:

(i) assess the implkations ea.;:h new proposalwould have for undertakings and job creation;(ii) wmmen.;:e examining the most important of

the existing Community regulations in order toestablish how far simplifying them might be ben~efidal to small and medium-sized undertakingsand enwurage an environment more favourableto job .;:reation;

(iii) make arrangements for internal wordi-nation of the preparation of initiatives designed tosimplify the administrative, fis.;:al an legal environ-ment for SMUs, with the wider aim of includingthe development of SMUs and employment amongthe priorities for work in the legal field.

The European Coundl atta.;:hes partkular import-an.;:e to those measures being given practical effectas soon as possible.

In the same spirit, the Cound held an exchangeof views on the numerous steps taken in ea.;:h ofthe Member States to improve the functioning ofthe labour market. It agreed on the importan.;:e ofmeasures to promote training, motivationmobility and flexibility of the labour market. Forthis reason, it attaches major importan.;:e to thejoint statement of intent by ::nanagement and la-bour on a European s.;:ale regarding social dialogueand new technology. l It emphasized the useful-ness of su.;:h .;:onta.;:ts and would like these to.;:ontinue with the assistan.;:e of the Commissionin the sear.;:h for solutions to praai.;:al problems.

Finally, the Coun.;:il asked the Commission to wm-plete the work it had begun further to its requestsin Mar.;:h and June 1985 and to report ba.;:k to itin 1986.

Monetary cooperation

The European Cound requested the Commissionto let it have a progress report, before the end of1987, on the European Monetary System and theliberalization of .;:apital movements.

Joint statement by the Union of Industries of the Euro-pean Community, the Economic and Social Committee andthe European Centre of Public Enterprises , Val DuchesseBrussels, 12 November 1985.

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Luxembourg European Council

Fight against .cancer

On the initiative of France, the European Councilin Milan stressed the importance of launching aEuropean programme against .;:an.;:er.

The European Council took note of a communi-.;:ation from the Italian and Fren.;:h Governmentson this matter. It requested the Ministers for For-eign Affairs to examine at their next meeting thebest way of quickly and effe.;:tively following that initiative.

Texts from the European Council

Internal market

Article

The Community shall adopt measures intendedprogressively to establish the internal market the wurse of a period expiring on 31 De.;:ember1992, in a.;:.;:ordan.;:e with the following provisionswithout prejudi.;:e to the other provisions of theTreaty.

The internal market shall wmprise an area with-out internal frontiers in whi.;:h the free movementof goods , persons, servi.;:es and capital is ensuredin a.;:wrdan.;:e with the provisions of the Treaty.

Article

1. In Artides 28; 57(2), sewnd sentence; 2 59sewnd paragraph; 70(1) 2 and 84 the terms ' unan-imously' or ' unanimity ' shall be repla.;:ed by 'by a

qualified majority ' or ' qualified majority

respectively.

2. The provisions of Artide 99 shall be replacedby the following: The Coundl shall , a.;:ting unan-imously on a proposal from the Commission andafter wnsulting the European Parliament, adoptprovisions on the harmonization of legislation wn-.;:erning turnover taxes, exdse duties and otherforms of indire.;:t taxation to the extent that su.;:hharmonization is ne.;:essary to ensure the establish-ment and the operation of the internal marketwithin the time limits laid down in Artide 1.

Artide 1O0a shall be inserted after Artide 100.

Article 100a

By way of derogation from Artide 100 and savewhere otherwise provided in this Treaty, the fol-lowing provisions shall apply for the attainmentof the obje.;:tives of Artide 1. The Coun.;:il shall,

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a.;:ting by a qualified majority on a proposal fromthe Commission after wnsulting the European Par-liament and the E.;:onomi.;: and Sodal Commiteeadopt the measures for the approximation of theprovisions laid down by law , regulation or admin-istrative action in Member States whkh have astheir obje.;:t the establishment and operation of theinternal market.

The first paragraph shall not apply to fis.;:al pro-visions, to those relating to the free movement ofpersons nor to those relating to the rights andinterests of employed persons.

The Commission s proposals for the approxi-

mation of laws on health, safety, environmentprote.;:tion and wnsumer prote.;:tion will be basedOn a high level of prote.;:tion.

If, after the adoption of a harmonization measureora Decision pursuant to Article 6 by the Coundlacting by a qualified majority, a Member Statedeems it ne.;:essary to apply national provisions ongrounds of major needs as referred to in Artkle, or relating to protection of the working

environment and the natural environment , it shallnotify the Commission of these provisions.

The Commission shall wnfirm the provisionsinvolved after having verified that they are nota means of arbitrary disnimination or disguisedrestri.;:tion in trade between Member States.

By way of derogation from the pro.;:edure laiddown in Artides 169 and 170, the Commission orany Member State may bring the matter dire.;:tlybefore the Court of Justice if it wnsiders thatanother Member State is making improper use ofthe powers provided for in this Artide.

The harmonization measures referred to aboveshall, in appropriate .;:ases, indude a safeguarddauseauthorizing the Member States to take , forone or more of the non-e.;:onomk reasons referredto in Artide 36 of the Treaty, provisional measuressubje.;:t to a Community .;:ontrol pro.;:edure.

Article

When drawing up its proposals with a view toa.;:hieving the obje.;:tives of Artide 1 , the Com-mission shall take into a.;:count the extent of theeffort that .;:ertain e.;:onomies showing differen.;:es

1 The final texts emerging from the IntergovernmentalConference of 16 and 17 December will be published in theDecember Bulletin.

The Conference signified its agreement to retention ofthe unanimity rule for measures affecting the fundamentalprinciples of professional organization (Berufsordrzurzg) andfor measures constituting a step back with regard to liberal~ization of capital movements.

Luxembourg European Council

in development will have to sustain during theperiod of establishment of the internal market andit may propose appropriate provisions.

If these provisions take the form of derogationsthey must be of a temporary nature and must .;:ausethe least possible disturbance to the functioning ofthe .;:ommon market.

Article

Delegation of competence to the Commission tobe regulated on the basis of the decision on thepowers of exe.;:ution of the Commission. The Com-mission has proposed an Advisory Committee.

Article

The Commission shall deliver a report to theCouncil before 31 De.;:ember 1988 and again before

31 De.;:ember 1990 on the progress made towardsa.;:hieving the internal market within the time limitfixed in Artide 1.

The Council, a.;:ting by a qualified majority on aproposal from the Commission, shall determinethe guidelines and wnditions ne.;:essary to ensurebalan.;:ed progress in all the se.;:tors .;:on.;:erned.

Article

During 1992, the Commission shall, together withea.;:h Member State, draw up an enumeration ofnational laws, regulations and administrative pro-visions whkh fall under Artide 1O0a and whi.;:hhave not been harmonized pursuant to that Artkle.

The Council , a.;:ting in a.;:wrdan.;:e with the pro~visions of Artide 100a , may dedde that the pro-visions in for.;:e in a Member State must be re.;:og.nized as being equivalent to those applied byanother Member State.

The Commission shall draw up the enumerationreferred to in the first paragraph and shall submitappropriate proposals in good time so as to allowthe Coun.;:il to a.;:t before the end of 1992.

Article

The preceding provisions shall not derogate fromthe stipulations of the Treaty of A.;:.;:ession of Spainand Portugal.

Statements for inclusion in the recordof the Conference

Re Article

The Conferen.;:e wishes by means of the provisionsin Artide 1 to firmly express its politi.;:al wiIl to

take the de.;:isions necessary before 1 January 1993to wmplete the internal market defined in theprovisions in question. This particularly wn.;:erns

decisions ne.;:essary to implement the Com~mission s programme des.;:rihed in the White Paperon the Internal Market.

By setting the date of 31 De.;:ember 1992, the Mem-ber States have not .;:reated a legal obligation.

Unilateral statement by Greece

Greece considers that the development of Com-munity policies and a.;:tions, and the adoption measures on the basis of Artkles 70(1) and 84must both take pla.;:e in su.;:h a way as not to harmsensitive sectOrs of Member States ' ewnomies.

Re Article 2(3)

In its proposals pursuant to the first paragraph ofArtide 1O0a the Commission shall give precedenceto the use of the instrument of a dire.;:tive if har-monization involves the amendment of legislativeprovisions in one or more Member States.

Re Article

The Conferen.;:e .;:onsiders that, since Artide 3 is ofgeneral application , it also applies to the proposalswhi.;:h the Commission is required to make underArtkle 6.

General statement

Nothing in these provisions shall affect the rightof Member States to take su.;:h measures as they.;:onsider ne.;:essary for the purpose of wntrollingimmigration from third wuntries , and to combatterrorism, .;:rime, the traffic in drugs and iIlidttrading in works of art and antiques.

Political declaration by the Gov.ernmentof the Member States

In order to promote the free movement of personsthe Member States shall woperate, without preju-di.;:eto the powers of the Community, in partiwlaras regards the entry, movement and residen.;:e ofnationals of third .;:ountries. They shall also wop-erate in the combating of terrorism, crime, the

traffi.;: in drugs and illkit trading in works of artand antiques.

This provision should be made to apply generally to allamendments made to the EEC Treaty.

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Luxembourg European Council

Monetary capacity

1. The referen.;:e to E.;:onomk and MonetaryUnion appears in the preamble to the text amend-ing the Treaty of Rome, whkh reads as follows:

Whereas the Heads of State or Government, attheir Conferen.;:e in Paris from 19 to 21 O.;:tober1972, approved the obje.;:tive of the progressivea.;:hievement of Ewnomk and Monetary Union;

Considering the Annex to the condusions ofthe Presidency of the European Coundl meetingin Bremen on 6 and 7 July 1978 and the Resolutionof the European Coun.;:il meeting in Brussels on 5De.;:ember 1978, .;:on.;:erning the setting-up of theEuropean Monetary System (EMS) and relatedquestions;

48 Whereas, on the basis of that Resolution , theCommunity and the Central Banks of the MemberStates have taken a number of measures designedto implement monetary woperation.

2. In Tide II 'Economi.;: Poli.;:y , the following

should be added before the .;:hapter on .;:onjun.;:-

tural policy:

Chapter 1 'Cooperation in ewnomi.;: and monetarypoli.;:y ' (Ewnomi.;: and Monetary Union)

New Artide to be added before Artkle 103:

(1) In order to ensure the convergen.;:e of econ-omi.;: and monetary polides whkh i, ne.;:essaryfor the further development of the Community,Member States shall cooperate in a.;:wrdan.;:e withthe objectives of Artide 104. In doing so, theyshall take a';:Wunt of the experien.;:e acquired inwoperation in the framework of the European

Monetary System and in developing the ECU , andshall respe.;:t existing powers in this field.

(2) In so far as further development in the fieldof ewnomk and monetary polky ne.;:essitates insti-tutional .;:hanges, the procedure laid down inArtide 236 shall be applkable. The Commissionthe Monetary Committee and the Committee ofGovernors of the Central Banks shall be wnsultedregarding institutional .;:hanges in the area of mon-etary policy.

CohesionArticle

In order to promote its harmonious developmentoverall , the Community shall develop and pursueits a.;:tions leading to strengthening its ewnomi.;:and social whesion.

In partimlar the Community shall aim at redu.;:ingdisparities between the various regions and miti-

Bull. EC 11-1985

gating the backwardness of the least-favouredregIOns.

Article

Member States shall conduct their ewnomic pol-icies, and shallwordinate them, in su.;:h a way asin addition, to attain the obje.;:tives of Artide 1.The implementation of the wmmon polkies andof the internal market shall take into a.;:wunt theobje.;:tives of Artkle 1 and of Artide 3 and shallwntribute to their a.;:hievement. The Communityshall support the a.;:hievement of these objectives

by the action it takes through the structural Funds(EAGGF (Guidan.;:e Se.;:tion), Social Fund, ERDF),the EIB and other existing finan.;:ial instrumel1ts.

Article

The ERDF is intended to help redress the prindpalregional imbalan.;:es in the Community throughparti.;:ipating in the development and struauraladjustment of regions whose development is lag-ging and in the rewnversion of declining industrialregIOns.

Article

On.;:e the Treaty enters into for.;:e the Commissionshall submit a wmprehensive proposal to theCoun.;:il; the purpose of this proposal will be thatthe structure and operational rules of the existingstructural Funds whi.;:h are adequately finan.;:ed sofar as budgetary resour.;:es permit (EAGGF (Guid-an.;:e Se.;:tion), European So.;:ial Fund , ERDF) areto be amended as ne.;:essary to darify and rational-ize the Funds ' tasks in order to .;:ontribute to thea.;:hievement of the obje.;:tives of Artkle 1 andArtide 3 and to in.;:rease their effi.;:ien.;:y and coor-dinate their aaivities between themselves and withthe a.;:tivities of the existing finan.;:ial instruments.The Council shall act unanimously on this pro-posal within a period of one year, having before"hand wnsulted the European Parliament and theE.;:onomi.;: and So.;:ial Commitee.

Article

After adoption of the dedsion referred to in Artide4, implementing de.;:isions relating to the ERDFshall be taken by the Council a.;:ting by a qualifiedmajority on a proposal from the Commission , afterwnsulting the European Parliament.

With regard to the EAGFF (Guidance Se.;:tion) andthe So.;:ial Fund , the provisions of Artides 43, 126and 127 shall remain appli.;:able respe.;:tively.

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European Parliament

Article

woperation pro.;:edure shall be introdu.;:edwhich shall apply to a.;:ts based on Articles 7, 4954(2), 57 and lOOa of the Treaty establishing the

European Economk Community. The .;:ooperationpro.;:edure shall also apply to a.;:ts based on Artide11 (2) of the text On resear.;:h and te.;:hnologicaldevelopment and On Artide 5 of the text on.;:ohesion and also on a.;:ts to be taken by a qualifiedmajority pursuant to Article 118.

Article

The provisions of Article 149 of the Treaty estab-lishing the European E.;:anomi.;: Community shallbe repla.;:ed by the following:

1. Where, in pursuan.;:e of this Treaty, theCoun.;:il acts on a proposal from the Commissionunanimity shall be required for an a.;:t .;:onstitutingan amendment to that proposal.

2. Where, in pursuance of this Treaty, a Coun.;:iIa.;:t is adopted in cooperation with the EuropeanParliament, the following pro.;:edure shall apply:(a) The Coundl , aaing by a qualified majorityunder the .;:anditions of paragraph 1 above, on aproposal from the Commission and after obtainingthe opinion of the European Parliament, shalladopt a wmmon position.(b) The Coun.;:il's .;:ommon position shall transmitted to the European Parliament. TheCouncil and the Commission shall inform the Par-liament fully of the reasons whi.;:h led the Coun.;:ilto adopt its .;:ammon position and also of theCommission s position.

, within three months of su.;:h communi.;:ationthe European Parliament approves this wmmonposition or has not taken a de.;:ision within thatperiod , the Coundl shall definitively adopt thea.;:t in question in a.;:cordan.;:e with the wmmonposition.

(.;:) Within the period of three months referred toin paragraph 2(b), the European Parliament may,by an absolute majority oUts constituent memberspropose amendments to the Council's .;:ommonposition. The European Parliament may also reje.;:tthe Coun.;:il's wmmon position by the samemajority. The result of the pro.;:eedings shall betransmitted to the Council and the Commission.If the Parliament has reje.;:ted the Coundl' S .;:om-mon position , unanimity shall be required for theCoun.;:il to aa on a se.;:ond reading.

(d) The Commission shall , within the period ofone month , re-examine the proposal , on the basisof whi.;:h the Council adopted its .;:ommon pos-

ition, by taking into a.;:.;:ount the amendments pro-posed by the European Parliament.

(e) The Council, a.;:ting by a qualified majority,shall adopt the proposal re-examined by the Com-mission.Unanimity shall be required for the Coundl amend the Commission s re-examined proposal.

(f) The Coundl shall be required to a.;:t within aperiod of three months.

3. As long as the Coun.;:il has not a.;:ted, the

Commission may alter its original proposal at anytime during the pro.;:edure.

Article

The provisions of the first paragraph of Article237 shall be replaced by the following:

Any European State may apply to be.;:ome a mem-ber of the Community. It shall address its appli-.;:ation to the Coundl whkh, after .;:onsulting the

Commission, shall a.;:t unanimously after re.;:eivingthe assent of the European Parliament whkh shallact by a majority of its members.

Article

The ptovisions of the second paragraph of Artide238 shall be repla.;:ed by the following:

The agreements shall be .;:ancluded by the Coun.;:ilacting unanimously and after receiving the assentof the European Parliament which shall a.;:t by .majority of its members.

In respe.;:t of the woperation pro.;:edure, the Euro-pe:m Coundl instru.;:ted the Conferen.;:e of Rep-resentatives of the Member States to:

(i) clarify the pro.;:edure to be followed in theevent of the European Parliament rejecting theCoun.;:il's position at its se.;:ond reading;

(ii) spell out the procedure to be followed inorder to avoid any legal vamum, in the event ofthe Council not aaing by the three-month deadlinelaid down in point (f), it being agreed that theCoun.;:il will take the final dedsion.

The Commission s managementand implementing powers

Article 145

To ensure that the obje.;:tives set out in this Treatyare attained, the Coundl shall , in a.;:.;:ardan.;:e withthe provisions of this Treaty:

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Luxembourg European Council

(i) ensure coordination of the general economkpolicies of the Member States;

(ii) have power to take dedsions;

(iii) .;:onfer on the Commission, in the a.;:ts whichit adopts, powers for the implementation of therules it lays down. The Council may impose .;:ertainrequirements in respect of the exer.;:ise of thesepowers. The Council may also reserve the right inspedfk .;:ases to exercise implementing powersitself directly. The pro.;:edures referred to abovemust be consonant with prindples and rules tobe laid down in advan.;:e by the Council , a.;:tingunanimously on a proposal from the Commissionand after obtaining the opinion of the EuropeanParliament.

Research and technologicaldevelopment

Article

1. The Community s aim shaH be to strengthenthe sdentifk and te.;:hnological basis of Europeanindustry and to enwurage it to bewme more .;:om"petitive at international level.

2. In order to achieve this, it shaH enwurageundertakings including small and medium"sizedundertakings, resear.;:h .;:entres and universities intheir resear.;:h and technological developmentaaivities; it shaH support their efforts to woperatewith one another, aiming, in partiwlar, to enableundertakings to exploit the Community s internalmarket potential to the fuH inter alia throughthe opening up of national public wntraas, thedefinition of common standards and the removalof legal and fis.;:al barriers to that .;:ooperation.

3. In the a.;:hievement of these aims, partkulara.;:wunt shaH be taken of the wnne.;:tion betweenthe joint resear.;:h and te.;:hnologkal developmenteffort, the establishment of the internal market andthe implementation of joint policies, parti.;:ularly asregards competition and trade.

Article

In pursuing these objectives the Community shaH.;:arry out the following a.;:tivities , .;:omplementingthe a.;:tivities carried out in the Member States:

(a) implementation of research, demonstration

and te.;:hnologi.;:al development (RDTD) pro-grammes , by promoting woperation with under-takings, resear.;:h .;:entres and universities;

(b) promotion of .;:ooperation with thirdwuntries and international organizations in thefield of Community RDTD;

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(c) dissemination and optimization of the use ofthe results of Community RDTD activities;

(d) stimulation of the training and mobility ofresear.;:hers in the Community.

Article

In liaison with the Commission, the Member StatesshaH coordinate among themselves the policies andprogrammes carried Out at national level. In closeconta.;:t with the Member States, the Commissionmay take any useful initiative to promote su.;:h

coordination.

Article

The Community shaH adopt a multiannual frame~work programme setting out aH its a.;:tivities. Theframework programme shall lay down the scien-tifk and te.;:hnical obje.;:tives, define their respectivepriorities, set out the main lines of the activitiesenvisaged and fix the amount deemed necessary,the detailed rules for finandal participation by theCommunity in the programme as a whole and thebreakdown of this amount between the variousactivities envisaged.

2. The framework programme may be adaptedor supplemented, as the situation changes.

Article

The framework programme shaH be implementedthrough specific programmes developed withinea.;:h a.;:tivity. Ea.;:h specifk programme shall definethe .detailed rules for implementing it, fix its dur-ation and provide for the means deemed necessary.

The Coun.;:il shall define the detailed arrangementsfor the dissemination of knowledge resulting fromthe spe.;:ifi.;: programmes.

Article

In implementing the multiannual framework pro-gramme, supplementary programmes may bedecided involving the participation of .;:ertainMember States only, whi.;:h shall finan.;:e themsubje.;:t to possible Community parti.;:ipation.

The Coun.;:il shaH adopt the rules applicable supplementary programmes, partkularly asregards the dissemination of knowledge and thea.;:.;:ess of other Member States.

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Article

In implementing the multiannual framework pro-gramme, the Community may make provision,with the agreement of the Member States .;:on-cerned, for participation in resear.;:h and develop-ment programmes undertaken by several MemberStates, including partidpation in the structures.;:reated for the execution of those programmes.

Article

In implementing the multi annual framework pro-gramme, the Community may make provision forRDTD cooperation with third countries or inter-national organizations.

The detailed arrangements for su.;:h woperationmay be the subje.;:t of international agreementsbetween the Community and the third parties con-.;:erned whkh shall be negotiated and concluded inaccordan.;:e with Article 229.

Article

The Community may set up joint undertakingsor any other stru.;:ture ne.;:essary for the efficientexemtion of Community RDTD' programmes.

Article

1. The detailed arrangements for financing ea.;:hprogramme, including any Community wntri-bution, shall be established at the time of theadoption of the programme.

2. The amount of the Community s annual .;:on-tribution shall be laid down under the budgetprocedure, without prejudi.;:e to other possiblemethods of Community finandng. The estimatedcost of the spedfic programmes must not in aggre.gate ex.;:eed the finandal provision in the frame-work programme.

Article

1. The Coundl shall , a.;:ting unanimously on aproposal from the Commission and after wnsult-ing the European Parliament, adopt the provisionsreferred to in Artides 4 and 9.

2. The Council shall, acting by a qualifiedmajority on a proposal from the Commission andafter mnsulting the European Parliament, adoptthe provisions referred to in Articles 5, 6, 7 and10. The adoption of the supplementary pro-

grammes shall also require the agreement of theMember States con.;:erned. 1

Environment

Article

1. Action by the Community relating to the en-vironment shall have the following objectives:

(i) to preserve, prote.;:t and improve the qualityof the environment;(ii) to contribute towards protecting humanhealth;

(iii) to ensure a prudent and rational utilizationof natural resources.

2. Action by the Community relating to theenvironment shall be based on the prindples thatpreventive action should be taken, that environ-

mental damage should as a priority be re.;:tified atsource, and that the polluter should pay. Environ-mental protection requirements shall be a com-ponent of the Community s other polides.

3. In preparing its a.;:tion relating to the environ-ment, the Community shall take a.;:.;:ount of:

(i) available s.;:ientific and te.;:hnkal data;

(ii) environmental wnditions in the variousregions of the Community;

(iii) the potential benefits and .;:osts of a.;:tion orof lack of a.;:tion;

(iv) the emnomic and sodal development of theCommunity,as a whole and the balanced develop-ment of its regions.

4. The Community shall take a.;:tion relating tothe environment to the extent to which the objec-tives referred to in paragraph 1 can be attainedbetter at Community level than at the level of theindividual Member States. Without prejudke to.;:ertain measures of a Community nature, theMember States shall finan.;:e and implement theother measures.

5. Within their respe.;:tive spheres of competen.;:ethe Community and the Member States shall coop.erate with third wuntries and with the wmpetentinternational organizations. The arrangements forCommunity woperation may be the subje.;:t ofagreements between the Community and the thirdparties mncerned , whi.;:h shall be negotiated and.;:onduded in a.;:.;:ordan.;:e with Artide 228.

Following the adoption of this provision it will be

necessary to make technical adjustments to the last para-graph of Article 4 of the Decision on own resources.

Bull. EC 11- 1985

Luxembourg European Council

The previous paragraph shall be without prejudketo Member States' .;:ompetence to negotiate ininternational bodies and to wnclude internationalagreements.

Article

The Council, a.;:ting unanimously on a proposalfrom the Commission and after wnsulting theEuropean Parliament and the E.;:onomic and SocialCommittee, shall de.;:ide what a.;:tion is to be takenby the Community.

Article

The prote.;:tive measures adopted in wmmon pur-suant to Article 2 shall not prevent any MemberState from maintaining and introdudng morestringent protective measures wmpatible with theTreaty. Declaration to be insertedin the record of the Conference

The Community s a.;:tivities in the sphere of theenvironment must not interfere with national pol-ides regarding the exploitation of energyreSOUKes.

Social policy

Draft texts supplementing Article 118

(a) Working environment

1. The Member States shall pay partimlar atten-tion to enwuraging improvements, espedally inthe working environment, as regards the health

and safety of workers, and shall set as their obje.;:,tive the harmonization of .;:onditions in this area,while maintaining the improvements.

2. In order to help a.;:hieve the objenive laiddown in the first paragraph , the Coundl , aaingby a qualified majority on a proposal from theCommission and after .;:onsulting the EuropeanParliament and the Economi.;:and Social Commit-tee, shall adopt, by means of Dire.;:tives, minimumrequirements for gradual implementation , havingregard to the wnditions and techni.;:al rules obtain-ing in ea.;:h of the Member States.

3. The provisions adopted pursuant to thisArtide shall not prevent any Member State fromretaining or introdu.;:ing more stingent measuresfor the prote.;:tion of working wnditions wmpat-ible with the Treaty.

Bull. EC 11- 1985

(b) Dialogue between both sides of industry

The Commission shall endeavour to develop thedialogue between management and labour at Euro-pean level which wuld, if those two sides wnsiderit desirable, lead to agreements.

Draft Treaty on Europeancooperation in the sphereof foreign policy

Article

The High Contracting Parties, being members ofthe European Communities, shall endeavourjointly to formulate and implement a Europeanforeign polky.

Article

1. The High Contra.;:ting Parties undertake toinform and .;:onsult ea.;:h other on any foreignpolky matters of general interest so as to ensurethat their wmbined influen.;:e is exer.;:ised as effe.;:-tive1y as possible through .;:oordination, the align-ment of their positions and the implementation ofjoint a.;:tion.

2. Consultations shall take Pla.;:e before the HighContra.;:ting Parties decide on their final position.

3. In adopting its. positions and in its nationalmeasures ea.;:h High Contra.;:ting Party shall takefull a.;:wunt of the positions of the other partnersand shall give due consideration to the desirabilityof adopting and implementing .;:ommon Europeanpositions.

In order to increase their .;:apa.;:ity for joint a.;:tionin the foreign policy field, the High Contra.;:tingParties shall ensure that common principles andobje.;:tives are gradually developed and defined.

The determination of wmmon positions shall .;:on~

stitute a point of referen.;:e for the polides of theHigh Contra.;:ting Parties.

4. The High Contra.;:ting Parties shall endeavourto avoid any a.;:tion or position whi.;:h impairs theireffe.;:tiveness as a whesive force in intenationalrelations or within international organizations.

Article

1. The Ministers for Foreign Affairs and a Mem-ber of the Commission shall meet at least fourtimes a year within the framework of Europeanpoliti.;:al .;:ooperation. They may also discuss for-eignpoli.;:y matters within the framework of politi-.;:al woperation on the o.;:.;:asion of meetings of theCoun.;:il of the European Communities.

Luxembourg European Council

tials: references to economic and monetaryunion, the EMS and the ECU, and scopefor the Commission to speak in that sphere.

Chancellor Helmut Kohl said that Germanywould have been willing to go further, par-ticularly with regard to Parliament s pow-ers. As for the internal market, he concededthat its achievement would demand sacri-fices from everyone but emphasized theenormous ' opportunities it offered to Ger-man industry. He also welcomed the swift-ness with which the European Council hadmanaged to resolve the 'extraordinarily dif-ficult ' problem of monetary policy.

Mrs Thatcher thought that the EuropeanCouncil' s conclusions were clear and decis-ive but pointed out that for the UnitedKingdom the Intergovernmental Confer-ence had been quite unnecessary. Back inLondon, she said that what they had hadto do was reduce grossly exaggerated expec-tations to reasonable proportions. And thisthey had done.

Mr Wilfried Martens, the Belgian PrimeMinister , expressed his country s satisfac-

tion. On the issue of the single market hesaid that he had asked his colleagues to voteon the procedure to be followed in the eventof derogations, a move which would haveadvanced the discussion.

For the Dutch Prime Minister, Mr RuudLubbers , the results obtained in respect ofthe internal market were quite substantialconsidering the scale of the problemsinvolved.

At the other extreme , Mr Poul Schluter, theDanish Prime Minister, said he was pleasedwith the results because in the end they didnot involve any erosion of sovereignty.

The Prime Ministers of the two new Mem-ber States , Mr Anibal Cavaco Silva and MrFelipe Gonzalez Marquez, also took a fairlypositive view, as did Mr Andreas Papan-dreou.

Mr Bertino Craxi , the Italian prime Minis-ter, expressed his dissatisfaction , confirm-ing that Italy intended to wait for the Euro-pean Parliament's conclusions before giving

a final judgment. Mr Craxi' s attack focusedon the refusal to increase Parliament's role

the obstacles preventing a clear definitionof the monetary dimension of Europeaneconomic cooperation , the resistance to theprinciple of equal distribution of resourceS

in order to achieve a satisfactory balancewithin the Community and the open hos-tility to any bid to put European cooper-ation on social affairs into effective practice.

Speaking in The Hague on 4 December, MrPierre pflimlin , President of the EuropeanParliament, on an official visit to theNetherlands at the invitation of the DutchParliament, expressed his disappointmentat the outcome of the European Council.The Luxembourg decisions had brought noreal improvement to the functioning of theinstitutions. No real legislative power hadbeen conferred on Parliament, and theCommunity was still a strange democracyin which legislative power was wieldedsolely by the governments. The Luxem-bourg Summit had missed 'an historicopportunity to take a step towards Euro-pean unity

Intergovernmental Conference

1.1.3. The Intergovernmental Conferenceconvened to amend the EEC Treaty and.todraft a treaty on a common foreign andsecurity policy held three meetings duringthe month (11, 19 and 25-26 November)followed by a 'conclave ' on 30 November

. and 1 December, at which it consideredall the key issues put by the chair to theEuropean Council in a summary memor-andum.

At its meetings on 19 and 25-26 Novemberit received a delegation from the EuropeanParliament.

The 11 November meeting concentrated onresearch and technological developmentand the environment. On 19 November del-egates continued the discussion started on21 October on the internal market , cohesionand the powers of the European Parlia-

Bull. EC 11- 1985

Luxembourg European Council

ment; 1 monetary policy was discussed forthe first time at Conf~rence level, as werepolitical cooperation and the draft singleact. On 25 and 26 November the proceed~ings focused on the internal marketcohesion , the powers of the European Par~liament, technology and social policy, aswell as on political cooperation and thesingle act.

Discussions took place .at all the meetingson precisely how to define the internalmarket: the Conference was unable tochoose between the two alternatives-single market without internal frontiersand 'area without frontiers and the mat-ter was referred to the European Council.

The key feature of this particular discussionat the conclave Was the about-turn byFrance to join those firmly supporting theCommission s phrase ('area without fron-tiers ). The question whether harmoniza~tion of indirect taxation (Article 99 of the

EEC Treaty) really mattered to the internalmarket could not be resolved and was alsoreferred to the European Council. The shiftto majority voting for specific Articles ofthe EEC Treaty was also a talking point allthrough the meetings. Here the concern toexclude taxation provisions voiced from theoutset 2 was maintained throughout. Onthe subject of the new Article 100a, muchtime was devoted to solving the problemshared by Denmark and Germany, whichwith their high standards were afraid ofhaving to 'harmonize downwards , as wellas the difficulties of the United Kingdomand Ireland , both of which called for dero-gations for the protection of health , animalsand plants (' insular ' clause).

At the ' conclave' a more positive attitudewas noted on the part of Germany, whichhad expressed concern on the matter ofstandards: the Federal Republic declareditself willing to forgo a derogation forhigher standards, while the Commissionundertook to take account of higher stan-dards in its proposals.

The discussions on monetary policy con-firmed the importance attached by most ofthe Member States to the principle of adding

Bull. EC 11- 1985

this dimension to the Treaty and, in cOn~

trast, the opposition to such a move alreadyexpounded by Germany and the UnitedKingdom.

The Conference already had before it aCommission proposal 3 and an amendmentby Belgium. These were supplemented by aproposal from the Netherlands as well as apaper from both the Commission and theNetherlands; the Commission proposal hadmeanwhile been amended. At the 'conclaveGermany moderated its stance somewhat.

On the subject of cohesion , widely differingpositions of principle emerged. Mr Delorsrestated the principles underlying the Com-mission proposal4 and stressed that , unlessthese were followed , the Community woulddegenerate into nothing more than a frl::e-trade area with provision for budgetarytransfers. Yet during the 'conclave ' none ofthe Member States contested the principleswhich the chair, in its summary memor-andum , had asked the European Council toendorse: the vital importance of cohesion;national responsibility for economic devel-opment; boosting the efficiency andcohesion of the financial instruments; andthe role of the ERDF.

The biggest bones of contention as regardsresearch and technology were the contentof the framework programme and specificprogrammes and the procedure for votingon them. Unlike the Presidency and theCommission certain Member Stateswanted framework programmes containingbroad indicative guidelines to be adoptedby qualified majorities and detailed specificprogrammes , including decisions on finan-cing, adopted unanimously.

Mr Delors stressed the need to adopt pro-visions affording maximum possible secur-ity for European industry. He also warnedMember States against an excessively detai-led framework programme; some flexibilitywas essential and could only be ensured if

Bull. EC 10-1985 , point 1. 1.2.Bull. EC 10- 1985, point 1.1.2.

Bull. EC 10-1985 , points 1.1.5 and 1.1.6.Bull. EC 9-1985, point 1.1.6.

Luxembourg European Council

the definition of the programme was nottoo rigid.

The environment did not give rise to majorproblems. The main difficulty was causedby Member States afraid of ' harmonizingdownwards ' from standards they had alre~ady adopted. Germany wanted to introdu.:ea 'qualitative' or ' selective' veto (the needfor the majority in majority voting toindude a positive vote from the MemberState with the highest standards); thissuggestion was not taken Up.

The discussions on social policy were basedon a Commission proposal in the form ofan addition to Article 117 and neW Artides

118a and 118b. This did not produ.:e anymajor problems apart from a reservation bythe United Kingdom on majority voting forthe adoption of directives involving 'mini-mum requirements' on improvements working conditions and another by Ger-many and the United Kingdom on theinclusion in the Treaty of provisions con-cerning the two sides of industry.

With regard to the powers of the EuropeanParliament the Conference , during the 'con-clave , embarked on a fence-mending exer-cise with Parliament. This change of hearton the part of certain Member States wasinspired by the 'new feeling ' which hadprevailed at the meeting on 26 Novemberbetween the Conference and Parliamentdelegation, which had seen the first genuinediscussion, with each of the Member Statesmaking a contribution. Parliament s del-

egation had appreciated this gesture by theConference, which had been requested byMr Delors the day before.

Italy formally indicated that it would notendorse the conclusions of the Conferenceunless some way was found of substantiallyincreasing Parliament's role; it proposedvesting Parliament with the power of co-decision , possibly on a gradual basis (alig-ned on the target date for the internal mar-ket). Denmark, on the other hand , contestedboth the principle of a second reading andthe possibility offered to Parliament ofinfluencing the Council's decision-making

procedure (unanimity in the event of rejec-

tion by Parliament). The other MemberStates supported the Presidency s proposalfor a procedure with three basic elements:introdu.:tion of a second reading by Parlia-ment and the Council; vesting in Parliamentof real powers in the decision-making pro-cess; definition of a system atta.:hing spe~cifk legal consequences to Parliament s vo-ting. For second readings by the Counciltwo arrangements are being .:onsidered:either the basic text would be the Com-mission proposal subject to amendment inaccordance with Artide 149 , in which casethe Commission would be involvedthroughout; or the basic text would be thetext amended by Parliament, in which caseArticle 149 would no longer apply.

Following the meeting of 26 Novemberbetween the Conference and a parliamen-tary delegation, in an attempt to takegreater account of Parliament's concern , MrDelors had submitted an alternative sol-ution for the second reading, whereby theproposal re-examined by the Commissionwould be deemed adopted if the Councilacting by a simple majority did not rejectit. Subject to a slight amendment, Belgiumsupported this idea.

These three alternatives~the gradualacquisition of the power of codecision , thePresidency suggestion and the Com-mission s idea-were laid before the Euro-pean Council.

On 2 December Parliament enlargedBureau sent a message to the European

Council expressing its concern at and dis-agreement with the preparatory work sub-mitted to the European Council concerningthe reform of the Treaties. It stated that 'would be dangerous for Europe if the Headsof State or Government were to try to con~ceal their differences behind a compromisewithout any real content or impact ' andadded that, if the Heads of State or Govern-ment could not reach a consensus, theywould have to consider matters furtherrather than abandon the far-reachingreforms which are necessary.

1.1.4. The draft Treaty on Europeancooperation in the sphere of foreign policy,

Bull. EC 11- 1985

Community and Central America

drawn up by the Political Committee, Wasdiscussed by the Conference for the firsttime at its meetings on 19 and 26 Novemberand waS finalized by the Ministers duringthe 'conclave

Unlike the other issues dealt with by theConference , endorsement of the Treaty onpolitical cooperation did not raise any spe-cial problems. The general approach takenwas to convert into a legal text all theprovisions which had hitherto been the sub-ject of non- legal documents (the Luxem-

Bull. EC 11- 1985

bourg, Copenhagen and London reportsand the Stuttgart Declaration) or Were partof current practice.

It was decided to devote an article to secur-ity based on the above guidelines. The pro-posals of certain Member States to includeprovisions that went further than current

practice did not secure a consensus.The main procedural innovation was thecreation of a small Brussels-based seC-retariat working under the authority of thePresidency.

European 'Comm unity A...

No. 41/1985December 16. 1985

Contact: Ella Krucoff(202) 862-9540

EUROPEAN COMMUNITY LEADERS AGREE TO MODIFY FODNDIBG TREATY

European Community leaders have approved .a packa~ of reforms designed tostreamline Community decision-m.aking. build up Europe s economic andtechnological strength and improve political cooperation.

The E. C. Heads of State or Government (the European Council) endorsed themeasures at a December 2-3 summit meeting in Luxembourg. agreeing to makefundamental revisions in the Community s 1957 founding Treaty Establishingthe European Economic Community (E.

The measures are weaker than those proposed by the E. C. Commission . whichhas strongly promoted efforts to revitalize the Community--particularly byremoving national barriers to the free movement of people . goods. servicesand capital--and adapt its institutions to modern times. But CommissionPresident Jacques Delors praised the summit results as a positive sign.The Commission would have liked more . but it is nevertheless a compromisefor progress . which we must try to transform into a dynamic compromise " hf:

said.

The reform package provides for majority voting by the Council of Ministersin certain areas where a unanimous decision is now required. and itstrengthens slightly the powers of the European Parliament. It also coversmonetary cooperation , research and technology. environmental protection andsocial policy. It includes a separate treaty on coordinating memberstates ' foreign policies.

The summ~t leaders worked from texts prepared by an IntergovernmentalConference composed of representatives of the 10 E. C. member states andfuture members Spain and Portugal. The Conference completed its work onDecember 1 in Luxembourg. At the summit . Denmark reserved its decision onthe reform package . and Italy withheld final approval pending considerationby the European and Italian Parliaments. Those positions . and othermatters relating to the reform measures . were scheduled for discussion by

C. Foreign Ministers at a meeting today in Brussels.

/..

Washington office: 2100 M Street NW Washington DC 20037 telephone (202) 862.9500 telex: 89.539 EURCOM

EUROPEAN COMMUNITY INFORMATION SERVICENew York office: 1 Dag Hammarskjold Plaza, 245 E 47th Street New York, New York 10017 telephone (212) 371.3804

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All treaty revisions must be ratified by the parliaments of the E. C. memberstates.

Ruud Lubbers, Prime Minister of the Netherlands ~ said his country will tryto apply the "spirit of the agreement of Luxembourg" when it assumes therotating Community presidency next month. Member states could beginimmediately to m.ake more decisions by 11lIljority voting~ he said.

The text of the Luxembourg summit's communique ~ including statements onseveral matters unrelated to the reform package (economic and socialsituation ~ monetary cooperation and cancer)~ follows. The provisionaltreaty reforms appear as Annex I (p. 5)~ and the draft Treaty on EuropeanCoope~ation in the Sphere of Foreign Policy as Annex II (p. ll). Alsoattached (Annex tII

~ p.

20) are E. C. articles that would be modified underthe summit agreement.

CONCLUSIONS OF THE EUROPEAN COUNCIL

LUXEMBOURG~ DECEMBER 2 AND 3~ 1985

OOIICWSIOIIS OF DIE PDSIDBIII' OF DIE BOROPIWf COUIIICILON DIE PROCEEDDIGS OF DIE IIII'B"RGOVRIU!IHIIIDL OOIIFEKDCK

The European Council noted that the Governments of the Member Statesreached agreement on the following chapters:

- internal market- monetary capacity- cohesion- European Par liament- management and implementing powers of the Commission- research and technological development- environment- social policy- European Cooperation in the sphere of forei gn policy

(the texts are set out in the Annex hereto)

Denmark has stated that it was unable to take a position on these texts.blanket reservation on the part of Denmark therefore remains. Italy hasmade its final acceptance conditional upon examination by the ItalianParliament. There are also a few reservations On specific points.

These issues and a number of topics that the Conference WaS not in aposition to consider in detail will be taken up again by the Ministers forForeign Affairs ~ who are due to meet on December 16 , 1985.

. . / . .

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Another issue which the Ministers for Foreign Affairs will consider is thesubmission of the results of the Conference on the amendment of the Treatyestablishing the European Economic Community and the text on PoliticalCooperation , possibly in the form of a single act.

The President of the European Council will communicate to the EuropeanParliament the texts which have been drawn up and approved. The Presidentof the European Council will also make an oral presentation of the resultsof the Conference and will take part in the debate to be organized by theEuropean Parliament on that occasion.

OOBCWSIOIIS. OF TIlE PBBSmacy

Economic and Social Situation

I. The European Council examined the economic and social situation in theCommunity on the basis of an initial statement of the strengths andweaknesses of the European economies which the President of the Commissionhad submitted at its request.

It stresses the importance of the progress already made by the Europeaneconomies over the last 10 years with a aignificant reduction in energydependence and modernization of traditional industries , while maintaining a

high degree of openness to international c~mpetition.

For the future , the Council reaffirms that the achieveme~t of the largeinternal market by 1992 and increased technological cooperation in Europewill make it possible to lay the foundations for . the European economiesinternational competitiveness and to meet the challenges of the thirdindustrial revolution.

II. The Council welcomed the very significant progress made by most of theMember States towards rationalization and economic recovery. It notes that

this progress and the increased convergence of economic policies hasalready made it possible to stabilize the level of unemployment in the

. Community and even to reduce it in some countries.

The Council considers that . on this basis . the European economies are ableto achieve better performance as regards growth and employment.

It took note of the strategy of cooperation for growth and employmentoutlined by the Commission in its annual economic report; it calls upOn theEconomic and Financial Council to examine. on that basis , :the conditionsfor establishing noninflationary growth leading to a substantial drop inunemp 10yment..

The European Council stressed the role which the Community must play in therecovery ,of world trade . mOre especially with a view to the forthcomingGeneral Agreement on Tariffs and Trade multilateral negotiations. It alsoagain referred to the Community s responsibi!ity towards countries of theThird World . which will through growth and economic development becomeacti ve partners in world trade.

f.

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III. Furthermore , the Council wished to emphasize that apart from generaleconomic policies , progress was necessary to improve the environment forundertakings. Referring to its conclusions in Brussels in March 1985, theCouncil wanted a practical sign to be given of its desire to reduce theadministrative and legal constraints which hold back the creation anddevelopment of small and medium-sized undertakings. In this connection , itnoted with interest that the Commission was undertaking to:

- assess the implications each new proposal would have for undertakings and. job creation;

- commence examining the most important of the existing Communityregulations in order to establish how far simplifying them might bebeneficial to small and medium-sized undertakings (S.M. U. ' s) and encouragethe creation of an environment more favorable to job creation;

- make arrangements for internal coordination of the preparation ofinitiatives designed to simplify the administrative, fiscal and legalenvironment for S. s, with the wider aim of including the developmentof S. U. ' s and employment among the priorities for work in the legalfield.

The European Council attaches particular importance to those measureshaving practical effect as SOon as possible.

In the same spirit , the Councii held an exchange of views on the numeroussteps taken in each of the Member States to improve the functioning of thelabor market. It agreed on the importance of measures to promote training,motivation , mobility and flexibility of the labor market. . For this reasonit attaches major importance to the joint statement of intent by managementand labor on a European scale regarding social dialogue and newtechnology. * It emphasized the usefulness of such contacts and would likethese to continue with the assistance of the Commission, in the search forsolutions to practical problems.

Finally, the Council asked the Commission to complete the work it had begunfurther to its requests in March and June 1985 and to report back to it in1986 .

* Joint statement by the Union of Industries of the European Communi ty, the

Economic and Social Committee and the European Center of PublicEnterprises , Val Duchesse , November 12 , 1985.

Monetary Cooperation

The European Council requested the Commission to let it have a progressreport , before the end of 1987, on the European Monetary System and theliberalization of capital markets.

f.

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Fight Against Cancer

On the initiative of France , the European Council in Milan stressed theimportance of launching a European program against cancel:".

The European Council took note of a communication from the Italian andFrench Governments on this. It requested the Ministers for Foreign Affairsto examine at their next meeting the best way of quickly and effectivelyfollowing up that initiative.

ANNEX I

PROVISIONAL TEXTS RESULTDfG FROM THE EUROPEAN COUNCILDf LUXEHBOURG, DRCEHBER 2 AND 3, 1985

INTERNAL MARKET

Article 1

The Community shall adopt measures intended progressively to establish theinternal market in the course of a period expiring on December 31, 1992 , inaccordance with the following provisions , without prejudice to the otherprovisions of the Treaty.

The internal market shall comprise an area without frontiers in which thefree movement of goods , persons, services and capital is ensured inaccordance with the provisions of the Treaty.

Article 2

1. In Articles 28, 57 (2), second sentence , 59, second paragraph , 70(1) and84 the terms "unanimously" or "unanimity" shall be replaced by "by aqualified majority" or "a qualified majority" respectively.

The provisions of Article 99 shall be replaced by the following:

The Council shall , acting unanimously on a proposal from the Commission andafter consulting the Eu~opeanParliament , ~dopt provisions on theharmonization of legisb:tio)1 concerning turnover taxes , excise duties, andother forms of indirect taxation to the extent that such harmonization isnecessary to ensure the establishment and the operation of the internalmarket within the time-limits laid down in Article

Article lO'Oa shall be inserted after Article 100:

Arti cle 1O0a

By way of derogati-on from Article 100 and save where otherwise provided inthis Treaty, the following provisions shall apply for the attainment of theobjectives of Article 1: the Council shall, acting by a qualified majorityon a proposal from the Commission after consulting the European Parliamentand the Economic and Social Committee , adopt the measures for the

. . /..

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approximation of such provisions laid down by law, regulation oradministrative action in Member States as have as their object theestablishment and operation of the internal market.

The first paragraph shall not apply to fiscal provisions, to those relatingto the free movement of persons nor to ,those relating to the rights andinterests of employed persons.

The Commission s proposals for the approximation of laws on health , safety,environmental protection and consumer protection will be based on a highlevel of protection.

, after adoption of a harmonization measure ora decision pursuant toArticle 6 by the Council acting bya qualified majority, a Member Statedeems it necessary to implement national provisions on grounds of majorneeds as referred to in Article 36, or relating to protection of theworking environment and the natural environment , it shall notify theCommission thereof.

The Commission shall confirm the provisions involved after having verifiedthat they are not a means of arbitrary discrimination or disguisedrestriction in trade between Member States.

By way of derogation from the procedures in Articles 169 and 170, theCommission or any Member State may bring the matter directly before theCourt of Justice if it considers that another Member State is abusing thepowers provided for in this Article.

The harmonization measures referred to above shall , in appropriate casesinclude a safeguard clause authorizing the Member States to take , for oneor more of the noneconomic reasons referred to in Article 36 of the Treaty,provisional measures subject to a Community control procedure.

Article 3

When drawing up its proposals with a view to achieving the objectives ofArticle 1 , the Commission shall take into account the extent of the effortthat certain economies showing differences in development will have tosustain during the period of establishment of the internal market and itmay propose appropriate provisions.

If these provisions take the form of derogations, they must be of atemporary nature and must cause the least disturbance possible to thefunctioning of the common market.

Article 4

(Delegation of competence to the Commission to be regulated on the basis ofthe decision on the powers of execution of the Commission. The Commissionhas proposed an Advisory Committee

f.

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Article 5

The Commission shall deliver a report to the Council before December 311988, and December 31 , 1990, on the state of progress of work with a viewto achieving the internal market within the time limit fixed in Article

The Council, acting by a qualified majority on a proposal from theCommission , shall determine the guidelines and conditions necessary toensure balanced progress in all the sectors concerned.

Article 6

During 199. , the Commission shall , together with each Member State, draw upan enumeration of national laws, regulations and administrative provisionswhich fall under Article 100a and which have not been harmoni~ed pursuantto that Article.

The Council, acting in accordance with the provisions of Article 100a maydecide that the provisions in force ina Member State must be recogni~ed asbeing equivalent to those applied by another Member State.

The Commission shall draw up the enumeration referred to in the firstparagraph and shall submit appropriate proposals in good time so as toallow the Council to act before the end of 1992.

Article 7*

The preceding provisions shall not derogate from the stipulations of theTreaty of Accession of Spain and Portugal.

* This provision should apply generally to all amendments made to theC. Treaty.

Internal Market: Statements for Inclusion in the Record of the Conference

Re Article 1

The Conference wishes by means of the provisions in Article 1 to firmlyexpress its political will to take the decisions necessary before January, 1993, to complete the internal market defined in the provisions in

questi!'n. , This particularly concerns decisions necessary to implement . theCommiss~on program described in the White Paper on the Internal ~rket.By setting the date of December 31, 1992 , the Member States have notcreated a legal obl1gationhaving direct effect in the area of any nationalprovIsions that have not been the subject of parmoni~ation measures ormutually recogni~ed decisions.

Re Article 2(1)

- Concerning the reference to Article 57(2), second sentence:

f.

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The Conference signified its agreement to retention of the unanimity rulefor measures affecting a professional organization and for measuresconstituting a step back with regard to liberalization of capitalmovements.

- Unilateral statement by Greece:

Greece considers that the development of Community policies and actions,and the adoption of measures on the basis of Articles 70( 1) and 84, mustboth take place in such a way as not to harm sensitive sectors of MemberStates I economies.

Re Article 2(3)

In its proposals pursuant to the first paragraph of Article 100a theCommission shall favor the use of the instrument of a Directive ifharmonization involves the amendment of legislative provisions in one ormore Member States.

Re general statement

Nothing in these provisions shall affect the right of Member States to takesuch measures as they consider necessary for the purposes of controllingimmigration from third countries, and to combat terrorism, crime and thetraffic in drugs.

Political Declaration by the Governments of the Member States:

In order to promote the free movement of persons , the Member States shallcooperate , without prejudice to the powers of the Community, in particularas regards the entry, movement and residence of nationals of thirdcountries. They shall also cooperate in the combating of terrorism, crimeand the traffic in drugs.

MONETARY CAPACITY

1. The reference to Economic and Monetary Union would appear in thePreamble to the text amending the Treaty of Rome , which would read asfollows:

- Whereas the Heads of State or Government, at their Conference in Parisfrom 19 to 21 October 1972 , approved the objective of the progressiveachievement of Economic and Monetary Union;

- Considering the Annex to the conclusions of the Presidency of theEuropean Council meeting in Bremen on 6 and 7 July 1978 and the Resolutionof the European Council meeting in Brussels on 5 December 1978 , concerningthe se t ting-up of the European Monetary Sys tem (E. M. S. ) and relatedquestions;

- Whereas, on the basis of that Resolution , the Community and the CentralBanks of the Member States have taken a number of measures designed toimplement monetary cooperation;

f.

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2. In Title II

, "

Economic Policy, " the following should be added beforethe chapter on conjunctural policy:

Chapter 1 "Cooperation in economic and monetary policy" (Economic andMonetary Union)

New Article to be added before Article 103

(1) In order to ensure the convergency of economic and monetary policywhich is necessary for the further development of the Community, MemberStates shall cooperate in accordance with the objectives of Article 104.In doing so , they shall take account of the experience acquired incooperation in the framework of the European Monetary System and indeveloping the ECU, and shall respect existing powers in this field.

(2) Insofar as further development in the field of economic and monetarypolicy necessitates institutional changes, the procedure laid down inArticle 236 shall be applicable. The Commission , the Monetary Committeeand the Committee of Governors of the Central Banks shall be consultedregarding institutional changes in the area of monetary policy.

COHESION

Article 1

In order to promote its harmonious development overall the Community shalldevelop and pursue its actions leading to strengthening its economic andsocial cohesion.

In particular the Community shall aim at reducing disparities between thevarious regions and the backwardness of the least-favored regions.

Article 2

Member States shall conduct their economic policy and shall coordinate itboth with a view to attaining the objectives of Article 1. Theimplementation of the common policies and of the internal market shall takeinto account the objectives of Article 1 and shall contribute to theirachievement. The Community shall support the achievement of theseobjectives by the action it takes through the structural Funds--EuropeanAgricultural Guidance and Guarantee Fund (E. A. G. G.F . ), Guidance Section;Social Fund, European Regional Development Fund (E. ), the EuropeanInvestment Bank (E. I. ) and other existing financial instruments.

Article 3

The E. R. D.F. is intended to help redress the principal regional imbalancesin the Community through participating in the development and structuraladjustment of regions whose development is lagging and in the reconversionof declining industrial regions.

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Article 4

Once the Treaty enters into force the Commission shall submit comprehensiveproposals to the Council; the purpose of these proposals will be that thestructure and operational rules of the existing structural funds which areadequately financed so fa~ as budgetary resources permit (E.Guidance Section , European Social Fund , E. ) are to be amended asnecessary to clarify and rationalize the funds I tasks in order to

contribute to the achievement of the objectives of Article 1 and Article 3and to increase their efficiency and coordinate their activities betweenthemselves and with the activities of the existing financial instruments.The Council shall act unanimously On this proposal within a period of oneyear , having beforehand consulted the European Parliament and the Economicand Social Committee.

Article 5

After adoption of the decision referred to in Article 4 , the decisionsrelating to the E. F. shall be taken by the Council acting by aqualified majority on a proposal from the Commission . after consulting theEuropean Parliament.

With regard to E. F. (Guidance Section) and the Social Fund, theprovisions of Articles 43, 126 and 127 shall remain applicablerespectively.

EUROPEAN PARLIAMENT

The European Council reached agreement in principle on the basis of theattached text on the institution of a procedure for cooperation with theParliament; at the same time the Council is given a brief to

- clarify the procedure in the event of the European Parliament rejectingthe common position of the Council at its second reading;

- spell out the procedure to be followed in the event of the Council notacting by the three month deadline laid down in point (f) in order to avoidany legal vacuum, it being agreed that the Council will have the last say.

Article 1

A Cooperation procedure shall be introduced which shall apply to acts basedon Articles 7 , 49, 54(2), 56, 57 and 100a of the Treaty establishing theEuropean Economic Community. The Cooperation procedure shall also apply to

acts based on Article 11(2) of the text on research and technologicaldevelopment and on Article 5 of the text on cohesion and also on acts to betaken by a qualified majority pursuant to Article 118.

Article 2

The provisions of Article 149 of the Treaty establishing the EuropeanEconomic Community shall be replaced by the following:

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1. Where, in pursuance of this Treaty, the Council acts on a proposal fromthe Commission , unanimity shall be required for an act constituting anamendment to that proposal.

2. Where, in pursuance of this Treaty, a Council act is adopted incooperation with the European Parliament, the following procedure shallapply:

(a) The Council, acting by a qualified majority under the conditions ofparagraph 1 abov~, on a proposal from the Commission and afterobtaining the Opinion of the European Parliament, shall adopt a commonposition.

(b) The common position of the Council shall be transmitted to theEuropean Parliament. The Council and the Commission shall inform theParliament fully of the reasons which led the Council to adopt itscommon position and also of the Commission s position.

, within three months of such communication , the European Parliamentapproves this common position or has not taken a decision within thatperiod, the Council shall definitively adopt the act in question inaccordance with the .COmmon position.

(c) Within the period of three months referred to in paragraph 2(b),the European Parliament may, by an absolute majority of its constituentmembers , propose amendments to the common position of the Council. TheEuropean Parliament may also reject the common position of the Councilby the same majority. The result of the proceedings shall betransmitted to the Council and the Commission.

If the Parliament has rejected the common position of the Council,unanimity shall be required for the Council to act on a second reading.

(d) The Commission shall, within the period of one month , reexamine theproposal , on the basis of which the Council adopted its commonposition , by taking into account the amendments proposed by theEuropean Parliament.

(e) The Council, acting by a qualified majority, shall adopt theproposal reexamined by the Commission.

Unanimity shall be required for the Council to amend the reexaminedCommission proposal.

(f) The Council shall be required to act within a period of threemonths.

3. As long as the Council has not acted , the Commission may alter itsoriginal propos~l at any time during the procedure.

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Article 3

The provisions of the first paragraph of Article 237 shall be replaced bythe following:

Any European State may apply to become a member of the Community. It shall

address its application to the Council which, after consulting theCommission , shall act unanimously after receiving the assent of theEuropean Parliament which shall act by a majority of its members.

Article 4

The provisions of the second paragraph of Article 238 shall be replaced bythe following:

These agreements shall be concluded by the Council, acting unanimously andafter receiving the assent of the European Parliament which shall act by amajority of its members.

MANAGEMENT AND IMPLEMENTING POWERS OF THE COMMISSION

Article 145

To ensure that the objectives set out in this Treaty are attained, theCouncil shall, in accordance with the provisions of this Treaty:

- ensure coordination of the general economic policies of the MemberStates;

- have power to take decisions;

- confer on the Commission , in the acts it adopts, powers for theimplementation of the rules it lays down. The Council may impose certainrequirements in respect of the exercise of those powers. The Council mayalso reserve the right in specific cases to exercise implementing powersitself directly.

The requirements referred to above must be consonant with principles andrules to be laid down in advance by the Council, acting unanimously on aproposal from the Commission and after obtaining the Opinion of theEuropean Parliament.

RESEARCH AND TECHNOLOGICAL DEVELOPMENT

Article 1

1. The Community s aim shall be to strengthen the scientific andtechnological basis of European industry and to encourage it to become morecompetitive at international level.

2. In order to achieve this , it shall encourage undertakings includingsmall and medium-sized undertakings, research centers and universities in

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their research and technological development activities; it shall suppo~ttheir efforts to cooperate with one anoth~r , aiming, in particular, toenable undertakings to exploit the Community s internal market potential tothe full , inter alia through the opening up of national public contracts,the definition of common standards and the removal of legal and fiscalbarriers to that cooperation.

3. In the achievement of these aims, the connection shall be especiallyborne in mind, between the joint resea~ch and technological developmenteffort, the establishment of the internal market and the implementation ofjoint policies particularly in competition and trade.

Article 2

In pursuing these objectives, the Community shall carry out the followingactivities complementing the activities carried out in the Member States:

(a) implementation of resea~ch , demonstration and technologicaldevelopment (R. ) programs, by promoting coope~ation withu:ndertakings, research centers and universities;

(b) promotion of cooperation with third countries and internationalorganizations in the field of Community R. D. T. D.;

(c) diss~mination and optimization of use of .the results of CommunityR. D. T. D. activities;

(d) stimulation of the training and. mobility of researchers in theCommunity.

Article 3

In liaison with the Commission , the Member States shall coordinate betweenthemselves the policies and programs carried out at a national level. close contact with the Member States, the Commission may take any usefulinitiati ve to promote such coordination.

Article 4

1. The Community shall adopt a multiannual framework program setting outall its activities. The framework program shall lay down the scientificand technical objectives , define their respective priorities , set the mainlines of the ~nvisaged activities and fix the amount deemed necessary, thedetailed rules for financial participation by the Commu:nity in the overallprogram and the breakdown of this amount between th~ various activitiesenvisaged.

2. The framework program may be adapted or supplemented on the basis ofthe development of the situation.

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Article 5

The framework program shall be implemented through specific programsdeveloped within each activity. Each specific program shall define the

detailed rules for implementing the activity, fix its duration and providefor the means deemed necessary.

The Council shall define the detailed arrangements for the dissemination ofknowledge resulting from the specific programs.

Article 6

In implementing the multiannual framework program, supplementary programsmay be decided involving the participation of only certain Member States,which shall ensure the financing thereof subject to possible Communityparticipation.

The Council shall adopt the rules applicable to supplementary programsparticularly as regards the dissemination of knowledge and the access ofother Member States.

Article 7

In implementing the multiannual framework program, the Community may makeprovision, with the agreement of the Member States concerned, forparticipation in research and development programs undertaken by severalMember States, including participation in structures created for theexecution of those programs.

Article 8

In implementing the multiannual framework program, the Community may makeprovision for R. D. T. D. cooperation with third countries or internationalorganizations.

The detailed arrangements for such cooperation may be the subject ofinternational agreements between the community and the third partiesconcerned which shall be negotiated and concluded in accordance withArticle 228.

Article 9

The .Community may set up joint undertakings on any other structurenecessary for the efficient execution of Community R. D. programs.

Article 10

1. The detailed arrangements for finan~ing each program, including anyCommunity contribution , shall be established at the time of the adoption ofthe program.

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2. The amount of the annual Community contribution shall be laid downunder the budget procedure , Without prejudice to .otber possible methods ofCommunity financing. The estimated cost of the specific programs must notin aggregate exceed the financial provision in the framework program.

Article 11

1. The Council shall , acting unanimously on a proposal from the Commissionand after consulting the European Parliament , adopt the provisions referredto in Articles 4 and 9.

2. The Council shall; acting by a. qualified majority on a proposal fromthe Commission and after consulting the European Parliament, adopt theprovisions referred to in Articles 5, 6, 7 and 10. The adoption of thesupplementary programs shall also require the agreement of the MemberStates concerned. *

* Following the adoption of this provision .it will be necessary to maketechnical adjustments to the last paragraph of Article 4 of the Decisionon own resources.

ENVIRONMENT

Article 1

1. Action by the Community relating to the environment shall have thefollowing objectives:

- to preserve , protect and improve the quality of the environment;

contribute towards protecting human health;

ensure the prudent and rational use natural resources.

2. Action by the Community relating to the environment shall be based onthe principles that preventive action should be taken , that environmentaldamage should as a priority be rectified at source , and that the pollutershould pay. Environmental protection requirements shall be a component ofthe Community s other policies.

3. In preparing its action relating to the environment , the Communityshall take account of:

- available scientific and technical data;

- environmental conditions in the various regions of the Community;

- the potential benefits and costs of action or of lack of action;

- the economic an9 ~pcial development of the Community as a whole and thebalanced development of its regions.

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4. The Community shall take action relating to the environment to theextent to which the objectives referred to in paragraph 1 Can better beattained at Community level than at the level of the individual MemberStates.

5. The previous paragraph shall be without prejudice to Member Statescompetence to negotiate in international agencies and to concludeinternational agreements.

Article 2

The Council, acting unanimously on a proposal from the Commission and afterconsulting the European Parliament and the Economic and Social Co$mittee,shall decide what action is to be taken by the Co~unity~

The Council shall, under the conditions laid down in the precedingsubparagraph, define which fields are to be covered by decisions taken by aqualified maj ori ty.

Article 3

The protective measures adopted in common pursuant to Article 2 shall notprevent each Membar State from maintaining and introducing more stringentprotective measures compatible with the Treaty, and with the operation ofthe internal market in particular.

* This provision should be seen in relation to Article 100a in the text onthe internal market.

SOCIAL POLICY

Draft texts supplementing Article 118.

(a) Workine; environment.

The Member States shall pay particular attention to encouragingimprovements, especially in the working environment, as regards thehe~lth an~afety of workers, and shall set as their objective theharmonization of conditions in this area, while maintaining theimprovements.

In order to help achieve the objective laid down in the firstparagraph, the Council, acting by a qualified majority on a proposalfrom the Commission and after consulting the European Parliament andthe Economic and Social Committee , shall adopt , by means of Directives,minimum requirements for gradual implementation , having regard to theconditions and technical rules obtaining in each of the Member States.

The provisions adopted pursuant to this Article shall not prevent eachMember State from introducing more stringent measures for theprotection of working conditions compatible with the Treaty.

(b) Dialogue between both sides of industry.

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The Commission shall endeavor to develop the dialogue between managementand labor at European level which could , if those two sides consider itdesirable. lead to contractual relations.

ANNE X II

D.RAPT TREATY ON EUROPEAN COOPERATIONIN THE SPHERE OF FOREIGN POLICY

Article 1

The High Contracting Parties , being members of the European Communities,shall endeavor jointly to formulate and implement a European foreignpolicy.

Article 2

1. The High Contracting Parties undertake to inform and consult each otheron any foreign policy matters of general interest so as to ensure thattheir combined influence is exercised as effectively as pos$ible throughcoordination , the alignment of their positions and the implementation ofjoint measures.

2. Consultations shall take place before the High Contracting Partiesdecide on their final position.

3. In adopting its positions and in its national measures each HighContracting Party shall take full account of the positions of the otherpartners and shall give due consideration to the desirability of adoptingand implementing common European positions.

In order to increase their capacity for joint action in the foreign policyfield, the High Contracting Parties shall ensure that common principles andobjectives are gradually developed and defined.

The formulation of common positions shall constitute a point of referencefor the policies of the High Contracting Parties.

4. The High Contracting Parties shall endeavor to avoid any action orposition which impairs their effectiveness as a cohesive force ininternational relations or within international organizations.

Article 3

1. The Ministers for Foreign Affairs and a member of the Commission shallmeet at least four times a year within the framework of European PoliticalCooperation. They may also discuss foreign policy matters within theframework of Political Cooperation on the occasion of meetings of theCouncil of the European Communities.

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2. The Commission shall be fully involved in the proceedings of PoliticalCooperation.

3. In order to ensure the swift adoption of commOn positions and theimplementation of joint measures, the High Contracting Parties shall, asfar as possible , refrain from impeding the formation of a consenSUS and thejoint action which this could produce.

Article 4

The external policies of the European Community and the policies agreed inEuropean Political Cooperation must be consistent.

The Presidency and the Commission. each within its own sphere ofcompetence , shall have special responsibility for ensuring that suchconsistency is sought and maintained.

Article 5

1. In international institutions and at international conferences whichthey attend , the High Contracting Parties shall endeavor to adopt commonpositions on the subjects covered by this Treaty.

2. In international institutions and at international conferences in whichnot all the High Contracting Parties participate , those who do participateshall take full account of positions agreed in European PoliticalCooper;ition.

Article 6

The High Contracting Parties shall organize a political dialogue with thirdcountries and regional groupings whenever they deem it necessary.

Article 7

The High Contracting Parties and the Commission

. .

through mutual assistance

and information , shall intensify cooperation between their representationsaccredited to third countries and to international organizations.

Article 8

1. The High Contracting Parties consider that closer cooperation onquestions of European security would contribute in an essential way to thedevelopment ofa European external policy identity. They are ready tocoordinate their positions more closely on the political and economicaspects of security.

2. The High Contracting Parties are determined to maintain thetechnological and industrial conditions necessary for their security. Theyshall work to that end both at national level and, where appropriate, inthe framework of the relevant institutions and bodies.

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3.. Nothing in this Treaty shall stand in the way of closer cooperation inthe field of security between certain of the High Contracting Parties inthe framework of the Western European Union or the Atlantic Alliance.

Article 9

1;he High Contracting Partie.s shall ensure that the European Parliament isclosely associated with Political Cooperation. To that end the Presidencyshall regularly inform the European Parliament of the foreign policy issueswhich are being e~amined in the framework of Political Cooperation andshall ensure that the views of the European Parliament are duly taken intoconsideration.

Article 10

1. The Presidency of Politi.ca1Cooperation shall be held by the HighContracting Party which holds the Presidency of the Council of the EuropeanConnnunities.

2. The Presidency shall be responsible for initiating action and forcoordinating and representing the positions of the Member States inrelations with third countries in respect of Political Cooperationactivities. It shall also be responsible for the management of PoliticalCooperation and in particular for drawing up the timetable of meetings andfor convening and organizing meetings.

3. The Political Directors shall meet regularly in the political Connnitteein order to give the necessary impetus, maintain the continui ty ofPolitical Cooperation and prepare Ministers ' discussions.

4. The Political Connnittee or . if necessary. a ministerial meeting shallconvene within 48 hours at the request of at least three Member States.

5. The European Correspondents ' Group shall be responsible . under thedirection of the Political Connnittee . for monitoring the implementation ofPolitical Cooperation and for studying general organizational problems.

Working Parties shall meet as directed by the political Connnittee.

7. A Secretariat based in Brussels shall assist the Presidency inpreparing for and implementing the activities of European PoliticalCooperation and in administrative matters. It shall carry out its dutiesunder the authority of the Presidency.

Final Article

1. This Treaty shall be open for signature by the Member States of theEuropeanConnnunity. In accordance with the provisions peculiar to eachState. it shall enter into force following the deposit of instruments ofratification or approval by all the High Contracting Parties.

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2. Nothing in this Tr~aty shall affect the provisions of the Treatyestablishing the European Coal and Steel Community t the Treaty establishingthe E. C. or the Treaty establi$hing the European Atomic Energy Community.

3. Five years after the entry into force of this Treaty the HighContracting Parties shall examine whether any revision thereof is required.

ANNEX III

C. TREATY AUICLES SUBJECT TO MODIFICATION

Article

Any autonomous alteration or suspension of duties in the com.mon customs tariff sball be decided unanimously by the CouncilAfter tbe transitional period has ended, however, the Council may,acting by a qualified majority on a proposal from the Commission,

decide on alterations or suspensions which shall not exceed 2.0 %of the rate in the case of anyone duty for a maximum period ofsix months. Such alterations or suspensions may only be extended,under the same conditions, for one further period of six months.

Article

The provisions of Articles 30 to 34 shall not preclude prohibitionsor restrictions on imports, exports or goods in transit justified ongrounds of public morality, pllblic policy or public security; the pro-tection of health and life of humans, animals or plants; the protectionof .national treasures possessing artistic, historic or archaeologicalvalue; or the protection of industrial and commercial property. Suchprohibitions or restrictions shall not, however, constitute a means ofarbitrary discrimination or a disguised restriction on trade betweenMember States.

Article

J. In order to make it easier for Persons to take up and pursueac-tivities as self-employed persons, the Council shall, on a proposalfrom the Commission and after consulting the Assembly, acting un-animously during the first stage and by a qualified majoritythereafter, issue directives for the mutual recognition of diplomas,certificates and other evidence of formal qualifications.

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2. For the same purpose, the Council shall, before the end of thetransitional period, acting on a proposal from the Commission andafter consulting the Assembly, issue directives for the coordination ofthe provisions laid down by law, regulation or administrative 1I.Ction inMember States concerning the taking up and pursuit of a.ctivities asself-employed persons. Unanimity shall be required on matters whichare the subject of legislation in at least one Member State Idldmeasures concerned with the protection of savings, in particular thegranting of credit and the exercise of the banking profession. and withthe .conditions governing the exercise of the medical and allied, andpharmaceutical professions in the various Member States. In othercases, the Council shall act unanimously during the fif$t stage and bya qualified majority thereafter.

3. In the case of the medical and allied and pharmaceutical pro.fessions, the progressive abolition of restrictions shall be dependentupon coordination of the conditions for their exercise in the vanQUIMember States.

Article

Within the framewQrk of the provisions set Qut belQw. restrictionson freedom to provide services within the Community shall be pro-gressively abolished during the transitional period in respec:t ofnationals of Member States who are established in a State DftheCommunity other than that of the person for whom the services areintended.

The Council may, acting unanimously on a proposal from theCommission, extend the provisions of this Chapter to nationals of Iithird country who provide services and who are established withinthe Community.

Article 70

1. The Commission shall propose to the Council measures for theprogressive coordination of the exchange policies of Member Statesin respect of the movement of capital between those States Idld thirdcountries. For this purpose tbe Council sball issue directives. actingurnmimously. It shall endeavour to attain the highest possible degreeof liberalisation.

2. Where the measures ta.lcen in accordance with paragraph 1 do notpermit the elimination of differences between the exchange rules ofMember States and where such differences could lead persons residentin one of the Member States to use the freer transfer facilities withinthe Community which are provided fQr in Article 67 in order to evadethe rules of one of the Member States concerning the movement ofcapital to or from third countries, that State may, after consulting theother Member States and tbe Commission, ta.lce appropriate measuresto overcome these difficulties.

Should the Council find that these measures are restricting thefree movement of capital within the Community to a greater extentthan is required for the purpose of overcoming tbe difficulties, it may,acting by a qualified majority on Ii proposal from the Commission,decide that the State concerned shall amend or abolish these measures.

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Article

1. The provisions of this Title shall apply to transport by rail, roadand inland waterway.

. The Council may, acting unanimously, decide whether, to whatextent and by what procedure appropriate provisions may be laiddown for sea and air transport.

Article

The Commission shall consider how the legislation of the variousMember States concerning tunJovc:r taxes, excise duties and otherform of indirect taxation, including countervailing measures ap.plicable to trade between Member States, can be harmonised in theinterest of the common market.

The Commission shall submit proposals to the Council, whichshall act unanimously without prejudice to the provisions of Articles100 and 101.

Article 100

The Council shall, acting unanimously on a proposal from theCommission, issue directives for the approxim=,tion of such provisionslaid down by law, regulation or administrative action in MemberStates as directly affect the establishment or functioning of the com-mon market.

The Assembly and the Economic and Social Committee shall beconsulted in the case of directives whose implementation would, inone or more Member States. involve the amendment of legislation.

Article 118

Without prejudice to the other provisions of this Treaty and inconformity with its general objectives, the Commission shall havethe task of promoting close cooperation between Member Statesin the social field pariicularly in maUers relating to:

employment;labour law and working conditions;

-:- basic and advanced vocational training;social security;

prevention of occupational accidli:nts and diseases;occupational hygiene;

the right of association, and collective bargaining betweenemployers and workers.

Tv this end, the Commission shall act in close contact withMember States by making studies, delivering opinions and arrangingconsultittions both on problems arising at national level and onthose of concern to international organisations.

Before delivering the opinions provided for in this Article, theCommission shall consult the Economic and Social Committee.

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Article /45

To ensure that the objectives set out in this Treaty are attained, tbeCouncil shall. in accordance with the provisions of this Treaty:

ensure coordination of the general economic policies oftbe MemberStates;

- have power to take decisions.

Article /49

Where. in pursuance of this Treaty. the Council acts on a proposal fromthe Commission. unanimity shall be required for an act constituting anamendment to that proposal.

As long as the Council has not acted, the Commission may alter its orig-inal proposal. in particular where the Assembly has been consulted on thatproposal.

Article 169

If the Commission considers that a Member State has failedto fulfil an obligation under this Treaty, it shall deliver a reasonedopinion on the matter after giving the State concerned the op-portunity to submit its observations.

If the State concerned does not comply with the opinion withinthe period laid down by the Commission, the latter may bring thematter before the Court of Justice.

Article 170

A Member State which considers that another Member Statehas failed to fulfil an obligation under this Treaty may bring thematter before the Court of Justice.

Before a Member State brings an action against anotber Mem-ber State for an alleged infringement of an obligation under thisTreaty, it shall bring the matter before the Commission.

The Commission shall deliver a reasoned opinion after eachof the States concerned has been given the opportunity to submitits own case and its observations on the other party s case bothorally and in writing.

If the Commission has not delivered an opinion within threemonths of the date on which the matter was brought before it, ' theabsence of such opinion shall not prevent the mattel: from beingbrought before the Court of Justice.

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Article 237

Any European State may apply to become a member of theCommunity. It shall address its application to the Council, whichshall act unanimously after ototaining the opinion of the Com-mission.

The conditions of admission and the adjustments to this Tn:atynecessitated thcreby shall be the subject of an agreement betweenthe Member States and the applicant State. This agreement shallbe submitted for ratification by all the Contracting States in ac-cordance with their respective constitutional n:quirements.

Article 238

The Community may conclude with a third State, a union States or an international organisation agreements establishing anassociation involving reciprocal rights and obligations, commOn ac-tion and special procedures.

These agreements shall be concluded toy the CoUJlcil, actingunanimously after consulting the Assembly.

Where such agreements call for amendments to this Tn:aty,these amendments shall first be adopted in accordaJlce with theprocedure laid down in Article 236.