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PART III
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TITLE III - INTERNAL POLICIES AND ACTION
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CHAPTER I - INTERNAL MARKET
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SECTION
1 - ESTABLISHMENT AND FUNCTIONING OF THE
INTERNAL MARKET
SECTION
2 - FREE MOVEMENT OF PERSONS AND SERVICES
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1. The Union shall adopt measures with the aim of establishing or ensuring the
functioning of the internal market, in accordance with the relevant provisions of the
Constitution.
2. The internal market shall
comprise an area without internal frontiers in which the free
movement of persons, services, goods and capital is ensured in accordance with the
Constitution.
3. The Council, on a proposal
from the Commission, shall adopt European regulations
and decisions determining the guidelines and conditions necessary to ensure balanced
progress in all the sectors concerned.
4. When drawing up its proposals
for achieving the objectives set out in paragraphs 1
and 2, the Commission shall take into account the extent of the effort that certain
economies showing differences in development will have to sustain for the
establishment of the internal market and it may propose appropriate measures.
If these measures take the
form of derogations, they must be of a temporary nature and
must cause the least possible disturbance to the functioning of the internal market.
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Member States shall consult each other with a view to taking together the steps needed
to prevent the functioning of the internal market being affected by measures which a
Member State may be called upon to take in the event of serious internal disturbances
affecting the maintenance of law and order, in the event of war, serious international
tension constituting a threat of war, or in order to carry out obligations it has accepted for
the purpose of maintaining peace and international security.
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If measures taken in the circumstances referred to in Articles III-131
and III-436 have the
effect of distorting the conditions of competition in the internal market, the Commission
shall, together with the Member State concerned, examine how these measures can be
adjusted to the rules laid down in the Constitution.
By way of derogation from the procedure laid down in Articles III-360
and III-361, the
Commission or any Member State may bring the matter directly before the Court of
Justice if the Commission or Member State considers that another Member State is
making improper use of the powers provided for in Articles III-131 and III-436. The Court
of Justice shall give its ruling in camera.
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1. Workers shall have the
right to move freely within the Union.
2. Any discrimination based
on nationality between workers of the Member States as
regards employment, remuneration and other conditions of work and employment shall
be prohibited.
3. Workers shall have the
right, subject to limitations justified on grounds of public policy,
public security or public health:
(a) to accept offers of
employment actually made;
(b) to move freely within
the territory of Member States for this purpose;
(c) to stay in a Member
State for the purpose of employment in accordance with the
provisions governing the employment of nationals of that State laid down by law,
regulation or administrative action;
(d) to remain in the territory
of a Member State after having been employed in that State,
subject to conditions which shall be embodied in European regulations adopted by the
Commission.
4. This Article shall not
apply to employment in the public service.
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European laws or framework
laws shall establish the measures needed to bring about
freedom of movement for workers, as defined in Article III- 133. They shall be adopted
after consultation of the Economic and Social Committee.
Such European laws or framework laws shall aim, in particular, to:
(a) ensure close cooperation
between national employment services;
(b) abolish those administrative
procedures and practices and those qualifying periods in
respect of eligibility for available employment, whether resulting from national legislation
or from agreements previously concluded between Member States, the maintenance of
which would form an obstacle to liberalisation of the movement of workers;
(c) abolish all such qualifying
periods and other restrictions provided for either under
national legislation or under agreements previously concluded between Member States
as impose on workers of other Member States conditions regarding the free choice of
employment other than those imposed on workers of the State concerned;
(d) set up appropriate machinery
to bring offers of employment into touch with
applications for employment and to facilitate the achievement of a balance between
supply and demand in the employment market in such a way as to avoid serious threats
to the standard of living and level of employment in the various regions and industries.
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Member States shall, within
the framework of a joint programme, encourage the
exchange of young workers.
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In the field of social security,
European laws or framework laws shall establish such
measures as are necessary to bring about freedom of movement for workers by making
arrangements to secure for employed and self-employed migrant workers and their
dependants:
(a) aggregation, for the
purpose of acquiring and retaining the right to benefit and of
calculating the amount of benefit, of all periods taken into account under the laws of the
different countries;
(b) payment of benefits
to persons resident in the territories of Member States.
Where a member of the Council
considers that a draft European law or framework law
referred to in paragraph 1 would affect fundamental aspects of its social security
system, including its scope, cost or financial structure, or would affect the financial
balance of that system, it may request that the matter be referred to the European
Council. In that case, the procedure referred to in Article III-396 shall be suspended. After
discussion, the European Council shall, within four months of this suspension, either:
(a) refer the draft back
to the Council, which shall terminate the suspension of the
procedure referred to in Article III-396, or
(b) request the Commission
to submit a new proposal; in that case, the act originally
proposed shall be deemed not to have been adopted.
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Within the framework of
this Subsection, restrictions on the freedom of establishment of
nationals of a Member State in the territory of another Member State shall be prohibited.
Such prohibition shall also apply to restrictions on the setting-up of agencies, branches
or subsidiaries by nationals of any Member State established in the territory of any
Member State.
Nationals of a Member State
shall have the right, in the territory of another Member State,
to take up and pursue activities as self-employed persons and to set up and manage
undertakings, in particular companies or firms within the meaning of the second
paragraph of Article III-142,
under the conditions laid down for its own nationals by the
law of the Member State where such establishment is effected, subject to Section 4
relating to capital and payments.
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1. European framework laws shall establish measures to attain freedom of
establishment as regards a particular activity. They shall be adopted after consultation of
the Economic and Social Committee.
2. The European Parliament, the Council and the Commission shall carry out the duties
devolving upon them under paragraph 1, in particular:
(a) by according, as a general rule, priority treatment to activities where freedom
of
establishment makes a particularly valuable contribution to the development of
production and trade;
(b) by ensuring close cooperation between the competent authorities in the Member
States in order to ascertain the particular situation within the Union of the various
activities concerned;
(c) by abolishing those administrative procedures and practices, whether resulting
from
national legislation or from agreements previously concluded between Member States,
the maintenance of which would form an obstacle to freedom of establishment;
(d) by ensuring that workers from one Member State employed in the territory of another
Member State may remain in that territory for the purpose of taking up activities therein
as self-employed persons, where they satisfy the conditions which they would be
required to satisfy if they were entering that State at the time when they intended to take
up such activities;
(e) by enabling a national of one Member State to acquire and use land and buildings
situated in the territory of another Member State, insofar as this does not conflict with
the principles laid down in Article III-227(2);
(f) by effecting the progressive abolition of restrictions on freedom of establishment
in
every branch of activity under consideration, both as regards the conditions for setting
up agencies, branches or subsidiaries in the territory of a Member State and as regards
the conditions governing the entry of personnel belonging to the main establishment into
managerial or supervisory posts in such agencies, branches or subsidiaries;
(g) by coordinating to the necessary extent the safeguards which, for the protection
of
the interests of members and others, are required by Member States of companies or
firms within the meaning of the second paragraph of Article III-142
with a view to making
such safeguards equivalent throughout the Union;
(h) by satisfying themselves that the conditions of establishment are not distorted
by
aids granted by Member States.
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This Subsection shall not
apply, so far as any given Member State is concerned, to
activities which in that State are connected, even occasionally, with the exercise of
official authority.
European laws or framework
laws may exclude certain activities from application of this
Subsection.
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1. This Subsection and measures
adopted in pursuance thereof shall not prejudice the
applicability of provisions laid down by law, regulation or administrative action in Member
States providing for special treatment for foreign nationals on grounds of public policy,
public security or public health.
2. European framework laws
shall coordinate the national provisions referred to in
paragraph 1.
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1. European framework laws
shall make it easier for persons to take up and pursue
activities as self-employed persons. They shall cover:
(a) the mutual recognition
of diplomas, certificates and other evidence of formal
qualifications;
(b) the coordination of
the provisions laid down by law, regulation or administrative action
in Member States concerning the taking-up and pursuit of activities as self- employed
persons.
2. In the case of the medical
and allied and pharmaceutical professions, the progressive
abolition of restrictions shall be dependent upon coordination of the conditions for the
exercise of such professions in the various Member States.
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Companies or firms formed
in accordance with the law of a Member State and having
their registered office, central administration or principal place of business within the
Union shall, for the purposes of this Subsection, be treated in the same way as natural
persons who are nationals of Member States.
"Companies or firms"
means companies or firms constituted under civil or commercial
law, including cooperative societies, and other legal persons governed by public or
private law, save for those which are non-profit-making.
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Member States shall accord
nationals of the other Member States the same treatment
as their own nationals as regards participation in the capital of companies or firms within
the meaning of the second paragraph of Article III-142, without prejudice to the
application of the other provisions of the Constitution.
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Within the framework of this Subsection, restrictions on freedom to provide services
within the Union shall be prohibited in respect of nationals of Member States who are
established in a Member State other than that of the person for whom the services are
intended.
European laws or framework laws may extend this Subsection to service providers who
are nationals of a third State and who are established within the Union.
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Services shall be considered
to be "services" for the purposes of the Constitution where
they are normally provided for remuneration, insofar as they are not governed by the
provisions relating to freedom of movement for persons, goods and capital.
"Services" shall in particular include:
(a) activities of an industrial
character;
(b) activities of a commercial
character;
(c) activities of craftsmen;
(d) activities of the professions.
Without prejudice to Subsection
2 relating to freedom of establishment, the person
providing a service may, in order to do so, temporarily pursue his or her activity in the
Member State where the service is provided, under the same conditions as are imposed
by that State on its own nationals.
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1. Freedom to provide services
in the field of transport shall be governed by Section 7 of
Chapter III relating to transport.
2. The liberalisation of
banking and insurance services connected with movements of
capital shall be effected in step with the liberalisation of movement of capital.
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1. European framework laws
shall establish measures to achieve the liberalisation of a
specific service. They shall be adopted after consultation of the Economic and Social
Committee.
2. European framework laws
referred to in paragraph 1 shall as a general rule give
priority to those services which directly affect production costs or the liberalisation of
which helps to promote trade in goods.
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The Member States shall
endeavour to undertake liberalisation of services beyond the
extent required by the European framework laws adopted pursuant to Article III-147(1), if
their general economic situation and the situation of the economic sector concerned so
permit.
To this end, the Commission
shall make recommendations to the Member States
concerned.
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As long as restrictions
on freedom to provide services have not been abolished, the
Member States shall apply such restrictions without distinction on grounds of nationality
or of residence to all persons providing services within the meaning of the first paragraph
of Article III- 144.
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Articles III-139 to III-142 shall apply to the matters covered by this Subsection.
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1. The Union shall comprise
a customs union which shall cover all trade in goods and
which shall involve the prohibition between Member States of customs duties on imports
and exports and of all charges having equivalent effect, and the adoption of a common
customs tariff in their relations with third countries.
2. Paragraph 4 and Subsection
3 on the prohibition of quantitative restrictions shall apply
to products originating in Member States and to products coming from third countries
which are in free circulation in Member States.
3. Products coming from
a third country shall be considered to be in free circulation in a
Member State if the import formalities have been complied with and any customs duties
or charges having equivalent effect which are payable have been levied in that Member
State, and if they have not benefited from a total or partial drawback of such duties or
charges.
4. Customs duties on imports
and exports and charges having equivalent effect shall be
prohibited between Member States. This prohibition shall also apply to customs duties of
a fiscal nature.
5. The Council, on a proposal
from the Commission, shall adopt the European
regulations and decisions fixing Common Customs Tariff duties.
6. In carrying out the tasks
entrusted to it under this Article the Commission shall be
guided by:
(a) the need to promote
trade between Member States and third countries;
(b) developments in conditions
of competition within the Union insofar as they lead to an
improvement in the competitive capacity of undertakings;
(c) the requirements of
the Union as regards the supply of raw materials and semi-
finished goods; in this connection the Commission shall take care to avoid distorting
conditions of competition between Member States in respect of finished goods;
(d) the need to avoid serious
disturbances in the economies of Member States and to
ensure rational development of production and an expansion of consumption within the
Union.
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Within the scope of application
of the Constitution, European laws or framework laws
shall establish measures in order to strengthen customs cooperation between Member
States and between them and the Commission.
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Quantitative restrictions
on imports and exports and all measures having equivalent
effect shall be prohibited between Member States.
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Article III-153 shall not preclude prohibitions or restrictions
on imports, exports or goods
in transit justified on grounds of public morality, public policy or public security; the
protection of health and life of humans, animals or plants; the protection of national
treasures possessing artistic, historic or archaeological value; or the protection of
industrial and commercial property. Such prohibitions or restrictions shall not, however,
constitute a means of arbitrary discrimination or a disguised restriction on trade between
Member States.
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1. Member States shall adjust
any State monopolies of a commercial character so as to
ensure that no discrimination regarding the conditions under which goods are procured
and marketed exists between nationals of Member States.
This Article shall apply
to any body through which a Member State, in law or in fact,
either directly or indirectly supervises, determines or appreciably influences imports or
exports between Member States. It shall likewise apply to monopolies delegated by the
State to others.
2. Member States shall refrain
from introducing any new measure which is contrary to
the principles laid down in paragraph 1 or which restricts the scope of the Articles
dealing with the prohibition of customs duties and quantitative restrictions between
Member States.
3. If a State monopoly of
a commercial character has rules which are designed to make
it easier to dispose of agricultural products or obtain for them the best return, steps
should be taken in applying this Article to ensure equivalent safeguards for the
employment and standard of living of the producers concerned.
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Within the framework of
this Section, restrictions both on the movement of capital and
on payments between Member States and between Member States and third countries
shall be prohibited.
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1. Article III-156 shall be without prejudice to the application to
third countries of any
restrictions which existed on 31 December 1993 under national or Union law adopted in
respect of the movement of capital to or from third countries involving direct investment
– including investment in real estate, establishment, the provision of financial services or
the admission of securities to capital markets. With regard to restrictions which exist
under national law in Estonia and Hungary, the date in question shall be 31 December
1999.
2. European laws or framework
laws shall enact measures on the movement of capital
to or from third countries involving direct investment – including investment in real estate,
establishment, the provision of financial services or the admission of securities to capital
markets.
The European Parliament
and the Council shall endeavour to achieve the objective of
free movement of capital between Member States and third countries to the greatest
extent possible and without prejudice to other provisions of the Constitution.
3. Notwithstanding paragraph
2, only a European law or framework law of the Council
may enact measures which constitute a step backwards in Union law as regards the
liberalisation of the movement of capital to or from third countries. The Council shall act
unanimously after consulting the European Parliament.
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Article III-156 shall be without prejudice to the right of Member
States:
(a) to apply the relevant
provisions of their tax law which distinguish between taxpayers
who are not in the same situation with regard to their place of residence or with regard to
the place where their capital is invested;
(b) to take all requisite
measures to prevent infringements of national provisions laid
down by law or regulation, in particular in the field of taxation and the prudential
supervision of financial institutions, or to lay down procedures for the declaration of
capital movements for purposes of administrative or statistical information, or to take
measures which are justified on grounds of public policy or public security.
2. This Section shall be
without prejudice to the applicability of restrictions on the right of
establishment which are compatible with the Constitution.
3. The measures and procedures
referred to in paragraphs 1 and 2 shall not constitute a
means of arbitrary discrimination or a disguised restriction on the free movement of
capital and payments as defined in Article III-156.
4. In the absence of a European
law or framework law provided for in Article III-157(3),
the Commission or, in the absence of a European decision of the Commission within
three months from the request of the Member State concerned, the Council, may adopt
a European decision stating that restrictive tax measures adopted by a Member State
concerning one or more third countries are to be considered compatible with the
Constitution insofar as they are justified by one of the objectives of the Union and
compatible with the proper functioning of the internal market. The Council shall act
unanimously on application by a Member State.
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Where, in exceptional circumstances,
movements of capital to or from third countries
cause, or threaten to cause, serious difficulties for the functioning of economic and
monetary union, the Council, on a proposal from the Commission, may adopt European
regulations or decisions introducing safeguard measures with regard to third countries
for a period not exceeding six months if such measures are strictly necessary. It shall
act after consulting the European Central Bank.
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Where necessary to achieve
the objectives set out in Article III-257, as regards
preventing and combating terrorism and related activities, European laws shall define a
framework for administrative measures with regard to capital movements and
payments, such as the freezing of funds, financial assets or economic gains belonging
to, or owned or held by, natural or legal persons, groups or non- State entities.
The Council, on a proposal
from the Commission, shall adopt European regulations or
European decisions in order to implement the European laws referred to in the first
paragraph.
The acts referred to in
this Article shall include necessary provisions on legal
safeguards.
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1. The following shall be
prohibited as incompatible with the internal market: all
agreements between undertakings, decisions by associations of undertakings and
concerted practices which may affect trade between Member States and which have as
their object or effect the prevention, restriction or distortion of competition within the
internal market, and in particular those which:
(a) directly or indirectly
fix purchase or selling prices or any other trading conditions;
(b) limit or control production,
markets, technical development, or investment;
(c) share markets or sources
of supply;
(d) apply dissimilar conditions
to equivalent transactions with other trading parties,
thereby placing them at a competitive disadvantage;
(e) make the conclusion
of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage,
have no connection with the subject of such contracts.
2. Any agreements or decisions
prohibited pursuant to this Article shall be automatically
void.
3. Paragraph 1 may, however,
be declared inapplicable in the case of:
– any agreement or category
of agreements between undertakings,
– any decision or category
of decisions by associations of undertakings,
– any concerted practice
or category of concerted practices,
which contributes to improving
the production or distribution of goods or to promoting
technical or economic progress, while allowing consumers a fair share of the resulting
benefit, and which does not:
(a) impose on the undertakings
concerned restrictions which are not indispensable to
the attainment of these objectives;
(b) afford such undertakings
the possibility of eliminating competition in respect of a
substantial part of the products in question.
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Any abuse by one or more
undertakings of a dominant position within the internal market
or in a substantial part of it shall be prohibited as incompatible with the internal market
insofar as it may affect trade between Member States.
Such abuse may, in particular,
consist in:
(a) directly or indirectly
imposing unfair purchase or selling prices or other unfair trading
conditions;
(b) limiting production,
markets or technical development to the prejudice of consumers;
(c) applying dissimilar
conditions to equivalent transactions with other trading parties,
thereby placing them at a competitive disadvantage;
(d) making the conclusion
of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage,
have no connection with the subject of such contracts.
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The Council, on a proposal
from the Commission, shall adopt the European regulations
to give effect to the principles set out in Articles III- 161 and III-162. It shall act after
consulting the European Parliament.
Such regulations shall be designed in particular:
(a) to ensure compliance
with the prohibitions laid down in Article III- 161(1) and in Article
III-162 by making provision for fines and periodic penalty payments;
(b) to lay down detailed
rules for the application of Article III-161(3), taking into account
the need to ensure effective supervision on the one hand, and to simplify administration
to the greatest possible extent on the other;
(c) to define, if need be,
in the various branches of the economy, the scope of Articles III-
161 and III-162;
(d) to define the respective
functions of the Commission and of the Court of Justice of
the European Union in applying the provisions laid down in this paragraph;
(e) to determine the relationship
between Member States' laws and this Subsection as
well as the European regulations adopted pursuant to this Article.
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Until the entry into force
of the European regulations adopted pursuant to Article III-163,
the authorities in Member States shall rule on the admissibility of agreements, decisions
and concerted practices and on abuse of a dominant position in the internal market in
accordance with their national law and Article III-161, in particular paragraph 3, and
Article III-162.
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1. Without prejudice to
Article III-164,
the Commission shall ensure the application of the
principles set out in Articles III-161 and III-162. On application by a Member State or on its
own initiative, and in cooperation with the competent authorities in the Member States,
which shall give it their assistance, the Commission shall investigate cases of
suspected infringement of these principles. If it finds that there has been an infringement,
it shall propose appropriate measures to bring it to an end.
2. If the infringement referred
to in paragraph 1 is not brought to an end, the Commission
shall adopt a reasoned European decision recording the infringement of the principles.
The Commission may publish its decision and authorise Member States to take the
measures, the conditions and details of which it shall determine, needed to remedy the
situation.
3. The Commission may adopt
European regulations relating to the categories of
agreement in respect of which the Council has adopted a European regulation pursuant
to Article III-163, second paragraph, (b).
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1. In the case of public
undertakings and undertakings to which Member States grant
special or exclusive rights, Member States shall neither enact nor maintain in force any
measure contrary to the Constitution, in particular Article I-4(2) and Articles III-161 to III-
169.
2. Undertakings entrusted
with the operation of services of general economic interest or
having the character of an income-producing monopoly shall be subject to the provisions
of the Constitution, in particular to the rules on competition, insofar as the application of
such provisions does not obstruct the performance, in law or in fact, of the particular
tasks assigned to them. The development of trade must not be affected to such an
extent as would be contrary to the Union's interests.
3. The Commission shall
ensure the application of this Article and shall, where
necessary, adopt appropriate European regulations or decisions.
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1. Save as otherwise provided
in the Constitution, any aid granted by a Member State or
through State resources in any form whatsoever which distorts or threatens to distort
competition by favouring certain undertakings or the production of certain goods shall,
insofar as it affects trade between Member States, be incompatible with the internal
market.
2. The following shall be
compatible with the internal market:
(a) aid having a social
character, granted to individual consumers, provided that such aid
is granted without discrimination related to the origin of the products concerned;
(b) aid to make good the
damage caused by natural disasters or exceptional
occurrences;
(c) aid granted to the economy
of certain areas of the Federal Republic of Germany
affected by the division of Germany, insofar as such aid is required in order to
compensate for the economic disadvantages caused by that division. Five years after
the entry into force of the Treaty establishing a Constitution for Europe, the Council,
acting on a proposal from the Commission, may adopt a European decision repealing
this point.
3. The following may be
considered to be compatible with the internal market:
(a) aid to promote the economic
development of areas where the standard of living is
abnormally low or where there is serious underemployment, and of the regions referred
to in Article III-424,
in view of their structural, economic and social situation;
(b) aid to promote the execution
of an important project of common European interest or
to remedy a serious disturbance in the economy of a Member State;
c) aid to facilitate the
development of certain economic activities or of certain economic
areas, where such aid does not adversely affect trading conditions to an extent contrary
to the common interest;
(d) aid to promote culture
and heritage conservation where such aid does not affect
trading conditions and competition in the Union to an extent that is contrary to the
common interest;
(e) such other categories
of aid as may be specified by European regulations or
decisions adopted by the Council on a proposal from the Commission.
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1. The Commission, in cooperation
with Member States, shall keep under constant
review all systems of aid existing in those States. It shall propose to the latter any
appropriate measures required by the progressive development or by the functioning of
the internal market.
2. If, after giving notice
to the parties concerned to submit their comments, the
Commission finds that aid granted by a Member State or through State resources is not
compatible with the internal market having regard to Article III-167, or that such aid is
being misused, it shall adopt a European decision requiring the Member State
concerned to abolish or alter such aid within a period of time to be determined by the
Commission.
If the Member State concerned
does not comply with this European decision within the
prescribed time, the Commission or any other interested Member State may, in
derogation from Articles III-360 and III- 361, refer the matter to the Court of Justice of the
European Union directly.
On application by a Member
State, the Council may adopt unanimously a European
decision that aid which that State is granting or intends to grant shall be considered to be
compatible with the internal market, in derogation from Article III-167 or from European
regulations provided for in Article III-169, if such a decision is justified by exceptional
circumstances. If, as regards the aid in question, the Commission has already initiated
the procedure provided for in the first subparagraph of this paragraph, the fact that the
Member State concerned has made its application to the Council shall have the effect of
suspending that procedure until the Council has made its attitude known.
If, however, the Council has not made its attitude known within three months of the
said
application being made, the Commission shall act.
3. The Commission shall
be informed by the Member States, in sufficient time to enable
it to submit its comments, of any plans to grant or alter aid. If it considers that any such
plan is not compatible with the internal market having regard to Article III-167, it shall
without delay initiate the procedure provided for in paragraph 2 of this Article. The
Member State concerned shall not put its proposed measures into effect until this
procedure has resulted in a final decision.
4. The Commission may adopt
European regulations relating to the categories of State
aid that the Council has, pursuant to Article III- 169, determined may be exempted from
the procedure provided for by paragraph 3 of this Article.
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The Council, on a proposal
from the Commission, may adopt European regulations for
the application of Articles III-167 and III-168 and for determining in particular the
conditions in which Article III-168(3) shall apply and the categories of aid exempted from
the procedure provided for in Article III-168(3). It shall act after consulting the European
Parliament.
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1. No Member State shall
impose, directly or indirectly, on the products of other Member
States any internal taxation of any kind in excess of that imposed directly or indirectly on
similar domestic products.
Furthermore, no Member State
shall impose on the products of other Member States
any internal taxation of such a nature as to afford indirect protection to other products.
2. Where products are exported
by a Member State to the territory of another Member
State, any repayment of internal taxation shall not exceed the internal taxation imposed
on them whether directly or indirectly.
3. In the case of charges
other than turnover taxes, excise duties and other forms of
indirect taxation, remissions and repayments in respect of exports to other Member
States may not be granted and countervailing charges in respect of imports from
Member States may not be imposed unless the provisions contemplated have been
previously approved for a limited period by a European decision adopted by the Council
on a proposal from the Commission.
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A European law or framework
law of the Council shall establish measures for the
harmonisation of legislation concerning turnover taxes, excise duties and other forms of
indirect taxation provided that such harmonisation is necessary to ensure the
establishment and the functioning of the internal market and to avoid distortion of
competition. The Council shall act unanimously after consulting the European
Parliament and the Economic and Social Committee.
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1. Save where otherwise
provided in the Constitution, this Article shall apply for the
achievement of the objectives set out in Article III-130. European laws or framework laws
shall establish measures for the approximation of the provisions laid down by law,
regulation or administrative action in Member States which have as their object the
establishment and functioning of the internal market. Such laws shall be adopted after
consultation of the Economic and Social Committee.
2. Paragraph 1 shall not
apply to fiscal provisions, to those relating to the free movement
of persons or to those relating to the rights and interests of employed persons.
3. The Commission, in its
proposals submitted under paragraph 1 concerning health,
safety, environmental protection and consumer protection, shall take as a base a high
level of protection, taking account in particular of any new development based on
scientific facts. Within their respective powers, the European Parliament and the Council
shall also seek to achieve this objective.
4. If, after the adoption
of a harmonisation measure by means of a European law or
framework law or by means of a European regulation of the Commission, a Member
State deems it necessary to maintain national provisions on grounds of major needs
referred to in Article III-154,
or relating to the protection of the environment or the working
environment, it shall notify the Commission of these provisions as well as the grounds
for maintaining them.
5. Moreover, without prejudice
to paragraph 4, if, after the adoption of a harmonisation
measure by means of a European law or framework law or by means of a European
regulation of the Commission, a Member State deems it necessary to introduce national
provisions based on new scientific evidence relating to the protection of the environment
or the working environment on grounds of a problem specific to that Member State
arising after the adoption of the harmonisation measure, it shall notify the Commission of
the envisaged provisions and the reasons for them.
6. The Commission shall,
within six months of the notifications referred to in paragraphs
4 and 5, adopt a European decision approving or rejecting the national provisions
involved after having verified whether or not they are a means of arbitrary discrimination
or a disguised restriction on trade between Member States and whether or not they
constitute an obstacle to the functioning of the internal market.
In the absence of a decision
by the Commission within this period the national provisions
referred to in paragraphs 4 and 5 shall be deemed to have been approved.
When justified by the complexity
of the matter and in the absence of danger to human
health, the Commission may notify the Member State concerned that the period referred
to in this paragraph will be extended for a further period of up to six months.
7. When, pursuant to paragraph
6, a Member State is authorised to maintain or introduce
national provisions derogating from a harmonisation measure, the Commission shall
immediately examine whether to propose an adaptation to that measure.
8. When a Member State raises
a specific problem on public health in a field which has
been the subject of prior harmonisation measures, it shall bring it to the attention of the
Commission which shall immediately examine whether to propose appropriate
measures.
9. By way of derogation
from the procedure laid down in Articles III-360 and III-361, the
Commission and any Member State may bring the matter directly before the Court of
Justice of the European Union if it considers that another Member State is making
improper use of the powers provided for in this Article.
10. The harmonisation measures
referred to in this Article shall, in appropriate cases,
include a safeguard clause authorising the Member States to take, for one or more of the
non-economic reasons referred to in Article III-154, provisional measures subject to a
Union control procedure.
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Without prejudice to Article III-172, a European framework law of the Council shall
establish measures for the approximation of such laws, regulations or administrative
provisions of the Member States as directly affect the establishment or functioning of the
internal market. The Council shall act unanimously after consulting the European
Parliament and the Economic and Social Committee.
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Where the Commission finds
that a difference between the provisions laid down by law,
regulation or administrative action in Member States is distorting the conditions of
competition in the internal market and that the resultant distortion needs to be eliminated,
it shall consult the Member States concerned.
If such consultation does
not result in agreement, European framework laws shall
establish the measures necessary to eliminate the distortion in question. Any other
appropriate measures provided for in the Constitution may be adopted.
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1. Where there is reason
to fear that the adoption or amendment of a provision laid down
by law, regulation or administrative action of a Member State may cause distortion within
the meaning of Article III-174,
a Member State desiring to proceed therewith shall consult
the Commission. After consulting the Member States, the Commission shall address to
the Member States concerned a recommendation on such measures as may be
appropriate to avoid the distortion in question.
2. If a Member State desiring
to introduce or amend its own provisions does not comply
with the recommendation addressed to it by the Commission, other Member States shall
not be required, pursuant to Article III-174, to amend their own provisions in order to
eliminate such distortion. If the Member State which has ignored the recommendation of
the Commission causes distortion detrimental only to itself, Article III-174 shall not apply.
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In the context of the establishment
and functioning of the internal market, European laws
or framework laws shall establish measures for the creation of European intellectual
property rights to provide uniform intellectual property rights protection throughout the
Union and for the setting up of centralised Union-wide authorisation, coordination and
supervision arrangements.
A European law of the Council
shall establish language arrangements for the European
intellectual property rights. The Council shall act unanimously after consulting the
European Parliament.
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