Amsterdam

2. Before the date referred to in paragraph 1, the Council, acting in accordance with he procedure referred to in Article 189b, shall establish an independent supervisory body responsible for monitoring the application of such Community acts to Community institutions and bodies and shall adopt any other relevant provisions as appropriate.”

55) Article 227(2) shall be replaced by the following: “2. The provisions of this Treaty shall apply to the French overseas departments, the Azores, Madeira and the Canary Islands. However, taking account of the structural social and economic situation of the French overseas departments, the Azores, Madeira and the Canary Islands, which is compounded by their remoteness, insularity, small size, difficult topography and climate, economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, shall adopt specific measures aimed, in particular, at laying down the conditions of application of the present Treaty to those regions, including common policies. The Council shall, when adopting the relevant measures referred to in the second subparagraph, take into account areas such as customs and trade policies, fiscal

policy, free zones, agriculture and fisheries policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions of access to structural funds and to horizontal Community programmes. The Council shall adopt the measures referred to in the second subparagraph taking into account the special characteristics and constraints of the outermost regions without undermining the integrity and the coherence of the Community legal order, including the internal market and common policies.”

56) Article 228 shall be amended as follows:

(a) the second subparagraph of paragraph 1 shall be replaced by the following: “In exercising the powers conferred upon it by this paragraph, the Council shall act by a qualified majority, except in the cases where the first subparagraph of paragraph 2 provides that the Council shall act unanimously.”;  

(b) paragraph 2 shall be replaced by the following: “2. Subject to the powers vested in the Commission in this field, the signing, which may be accompanied by a decision on provisional application before entry into force,

and the conclusion of the agreements shall be decided on by the Council, acting by a qualified majority on a proposal from the Commission. The Council shall act unanimously when the agreement covers a field for which unanimity is required for the adoption of internal rules and for the agreements referred to in Article 238. By way of derogation from the rules laid down in paragraph 3, the same procedures

shall apply for a decision to suspend the application of an agreement, and for the purpose of establishing the positions to be adopted on behalf of the Community in a body set up by an agreement based on Article 238, when that body is called upon to adopt decisions having legal effects, with the exception of decisions supplementing or

amending the institutional framework of the agreement. The European Parliament shall be immediately and fully informed on any decision under this paragraph concerning the provisional application or the suspension of

agreements, or the establishment of the Community position in a body set up by an agreement based on Article 238.” 57) The following Article shall be inserted: “Article 236 1. Where a decision has been taken to suspend the voting rights of the representative of the government of a Member State in accordance with Article F.1(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty.

2. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1) of the Treaty on European Union has been determined in accordance with Article F.1(1) of that Treaty, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the

application of this Treaty to the Member State in question. In doing so, the Councilshall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons.

The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State.

3. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed.

4. When taking decisions referred to in paragraphs 2 and 3, the Council shall act without taking into account the votes of the representative of the government of the Member State in question. By way of derogation from Article 148(2) a qualified majority shall be defined as the same proportion of the weighted votes of the members

of the Council concerned as laid down in Article 148(2). This paragraph shall also apply in the event of voting rights being suspended in accordance with paragraph 1. In such cases, a decision requiring unanimity shall be

taken without the vote of the representative of the government of the Member State in question.”

58) Protocol on Social Policy and the Agreement on social policy attached thereto shall be repealed.

59) Protocol on the Economic and Social Committee and the Committee of the

Regions shall be repealed.  

ARTICLE 3 The Treaty establishing the European Coal and Steel Community shall be amended in accordance with the provisions of this Article.

1) In Article 10(2) the first and second subparagraphs shall be replaced by the following: “2. The governments of the Member States shall nominate by common accord the person they intend to appoint as President of the Commission; the nomination shall be approved by the European Parliament. The governments of the Member States shall, by common accord with the nominee for President, nominate the other persons whom they intend to appoint as Members of the Commission.” 2) In Article 13, the following paragraph shall be inserted as the first paragraph: “The Commission shall work under the political guidance of its President.” 3) In Article 20, the following paragraph shall be added: “The number of Members of the European Parliament shall not exceed

seven hundred.” 4) Article 21 shall be amended as follows: (a) in paragraph 3, the first subparagraph shall be replaced by the following: “3. The European Parliament shall draw up a proposal for elections by direct

universal suffrage in accordance with a uniform procedure in all Member States or in accordance with principles common to all Member States.”;

(b) the following paragraph shall be added: “4. The European Parliament shall, after seeking an opinion from the Commission and with the approval of the Council acting unanimously, lay down the regulations and general conditions governing the performance of the duties of its Members.”

5) Article 30 shall be replaced by the following: “Article 30 1. A committee consisting of the Permanent Representatives of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the Council. The Committee may adopt procedural decisions in cases provided for in the Council's Rules of Procedure.

2. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-General, High Representative for the common foreign and security policy, who shall be assisted by a Deputy Secretary-General responsible for the running of the General Secretariat. The Secretary-General and the Deputy Secretary-General

shall be appointed by the Council acting unanimously. The Council shall decide on the organisation of the General Secretariat. 3. The Council shall adopt its Rules of Procedure.”

6) In Article 33, the fourth paragraph shall be replaced by the following: “The Court of Justice shall have jurisdiction under the same conditions in actions brought by the European Parliament and by the Court of Auditors for the purpose of protecting their prerogatives.”

7) Article 45c shall be amended as follows: (a) The second subparagraph of paragraph 1 shall be replaced by the following: “The Court of Auditors shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions which shall be published in the Official Journal of the European Communities.”;

(b) The first subparagraph of paragraph 2 shall be replaced by the following: “2. The Court of Auditors shall examine whether all revenue has been received and all expenditure incurred in a lawful and regular manner and whether the financial management has been sound. In doing so, it shall report in particular on any cases of

irregularity.”;

(c) Paragraph 3 shall be replaced by the following: “3. The audit shall be based on records and, if necessary, performed on the spot in the other institutions of the Community, on the premises of any body which manages

revenue or expenditure on behalf of the Community and in the Member States,including on the premises of any natural or legal person in receipt of payments from the budget. In the Member States the audit shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent

national departments. The Court of Auditors and the national audit bodies of the Member States shall co-operate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The other institutions of the Community, any bodies managing revenue or expenditure on behalf of the Community, any natural or legal person in receipt of payments from the budget, and the national audit bodies or, if these do not have the necessary powers, the competent national departments, shall forward to the Court of Auditors, at its request, any document or information necessary to carry out its task. In respect of the European Investment Bank's activity in managing Community expenditure and revenue, the Court's rights of access to information held by the Bank shall be governed by an agreement between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall nevertheless have access to information necessary for the audit of Community expenditure and revenue managed by the Bank.”

8) In Article 78c, the first paragraph shall be replaced by the following: “The Commission shall implement the budget, in accordance with the provisions of the regulations made pursuant to Article 78h, on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial management. Member States shall co-operate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management.”

9) Article 78g(1) shall be replaced by the following:

“1. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give a discharge to the Commission in respect of the implementation of the budget. To this end, the Council and the European Parliament in turn shall examine the accounts and the financial statement referred to

in Article 78d, the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, the statement of assurance referred to in Article 45c(1), second subparagraph, and any relevant special reports by the Court of Auditors.”10) The following Article shall be inserted: “Article 96 1. Where a decision has been taken to suspend the voting rights of the representative

of the government of a Member State in accordance with Article F.1(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty.

2. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1) of the Treaty on European Union has been determined in accordance with Article F.1(1) of that Treaty, the Council, acting by a qualified majority, may decide to suspend certain of the rights deriving from the

application of this Treaty to the Member State in question. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons.

The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State.

3. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed.

4. When taking decisions referred to in paragraphs 2 and 3, the Council shall act without taking into account the votes of the representative of the government of the Member State in question. By way of derogation from Article 28, fourth paragraph, a qualified majority shall be defined as the same proportion of the weighted votes of the

members of the Council concerned as laid down in Article 28, fourth paragraph. This paragraph shall also apply in the event of voting rights being suspended in accordance with paragraph 1. In such cases, a decision requiring unanimity shall be taken without the vote of the representative of the government of the Member State in question.”  

ARTICLE 4 The Treaty establishing the European Atomic Energy Community shall be amended in accordance with the provisions of this Article. 1) In Article 107, the following paragraph shall be added: “The number of Members of the European Parliament shall not exceed seven hundred.” 2) Article 108 shall be amended as follows: (a) in paragraph 3, the first subparagraph shall be replaced by the following: 53 “3. The European Parliament shall draw up a proposal for elections by direct universal suffrage in accordance with a uniform procedure in all Member States or in accordance with principles common to all Member States.”; (b) the following paragraph shall be added: “4. The European Parliament shall, after seeking an opinion from the Commission

and with the approval of the Council acting unanimously, lay down the regulations and general conditions governing the performance of the duties of its Members.” 3) Article 121 shall be replaced by the following: “Article 121 1. A committee consisting of the Permanent Representatives of the Member States shall be responsible for preparing the work of the Council and for carrying out the tasks assigned to it by the Council. The Committee may adopt procedural decisions in cases provided for in the Council's Rules of Procedure.

2. The Council shall be assisted by a General Secretariat, under the responsibility of a Secretary-General, High Representative for the common foreign and security policy, who shall be assisted by a Deputy Secretary-General responsible for the running of he General Secretariat. The Secretary-General and the Deputy Secretary-General

shall be appointed by the Council acting unanimously. The Council shall decide on the organisation of the General Secretariat. 3. The Council shall adopt its Rules of Procedure.”

4) In Article 127, the first and second subparagraphs of paragraph 2 shall be

replaced by the following: “2. The governments of the Member States shall nominate by common accord the

person they intend to appoint as President of the Commission; the nomination shall be

approved by the European Parliament. The governments of the Member States shall, by common accord with the nominee for President, nominate the other persons whom they intend to appoint as Members of the Commission.” 5) In Article 132, the following paragraph shall be inserted as the first paragraph:“The Commission shall work under the political guidance of its President.”

6) In Article 146, the third paragraph shall be replaced by the following: “The Court of Justice shall have jurisdiction under the same conditions in actions brought by the European Parliament and by the Court of Auditors for the purpose of protecting their prerogatives”

7) Article 160c shall be amended as follows: (a) the second subparagraph of paragraph 1 shall be replaced by the following: “The Court of Auditors shall provide the European Parliament and the Council with a

statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions which shall be published in the Official Journal of the European Communities.”;

(b) the first subparagraph of paragraph 2 shall be replaced by the following: “2. The Court of Auditors shall examine whether all revenue has been received and all expenditure incurred in a lawful and regular manner and whether the financial management has been sound. In doing so, it shall report in particular on any cases of

irregularity.”;  

(c) paragraph 3 shall be replaced by the following: “3. The audit shall be based on records and, if necessary, performed on the spot in the other institutions of the Community, on the premises of any body which manages

revenue or expenditure on behalf of the Community and in the Member States, including on the premises of any natural or legal person in receipt of payments from the budget. In the Member States the audit shall be carried out in liaison with national audit bodies or, if these do not have the necessary powers, with the competent

national departments. The Court of Auditors and the national audit bodies of theMember States shall co-operate in a spirit of trust while maintaining their independence. These bodies or departments shall inform the Court of Auditors whether they intend to take part in the audit. The other institutions of the Community, any bodies managing revenue or expenditure on behalf of the Community, any natural or legal person in receipt of payments from the budget, and the national audit bodies or, if these do not have the necessary powers, the competent national departments, shall forward to the Court of Auditors, at its request, any document or information necessary to carry out its task. In respect of the European Investment Bank's activity in managing Community expenditure and revenue, the Court's rights of access to information held by the Bank shall be governed by an agreement between the Court, the Bank and the Commission. In the absence of an agreement, the Court shall nevertheless have access to information necessary for the audit of Community expenditure and revenue managed by the Bank.”

8) In Article 170, the following paragraph shall be added: “The Committee may be consulted by the European Parliament.” 9) In Article 179, the first paragraph shall be replaced by the following: “The Commission shall implement the budget, in accordance with the provisions of the regulations made pursuant to Article 183, on its own responsibility and within the limits of the appropriations, having regard to the principles of sound financial

management. Member States shall co-operate with the Commission to ensure that the appropriations are used in accordance with the principles of sound financial management.”

10) Article 180b(1) shall be replaced by the following: “1. The European Parliament, acting on a recommendation from the Council which shall act by a qualified majority, shall give a discharge to the Commission in respect

of the implementation of the budget. To this end, the Council and the EuropeanParliament in turn shall examine the accounts and the financial statement referred to n Article 179a, the annual report by the Court of Auditors together with the replies of the institutions under audit to the observations of the Court of Auditors, the statement

of assurance referred to in Article 160c(1), second subparagraph, and any relevant special reports by the Court of Auditors.” 11) The following Article shall be inserted: “Article 204 1. Where a decision has been taken to suspend the voting rights of the representative of the government of a Member State in accordance with Article F.1(2) of the Treaty on European Union, these voting rights shall also be suspended with regard to this Treaty.

2. Moreover, where the existence of a serious and persistent breach by a Member State of principles mentioned in Article F(1) of the Treaty on European Union has been determined in accordance with Article F.1(1) of that Treaty, the Council, actingby a qualified majority, may decide to suspend certain of the rights deriving from the

application of this Treaty to the Member State in question. In doing so, the Council shall take into account the possible consequences of such a suspension on the rights and obligations of natural and legal persons.

The obligations of the Member State in question under this Treaty shall in any case continue to be binding on that State.

3. The Council, acting by a qualified majority, may decide subsequently to vary or revoke measures taken in accordance with paragraph 2 in response to changes in the situation which led to their being imposed.