Treaty establishing the European international organizations concerned Atomic Energy Community (Non- with the peaceful development of atomic official consolidated version 1996) energy,

I - Text of the Treaty(*) HAVE DECIDED to create a EUROPEAN ATOMIC ENERGY HIS MAJESTY THE KING OF THE COMMUNITY (EURATOM) and to BELGIANS, THE PRESIDENT OF this end have designated as their THE FEDERAL REPUBLIC OF Plenipotentiaries: GERMANY, THE PRESIDENT OF THE FRENCH REPUBLIC, THE HIS MAJESTY THE KING OF THE PRESIDENT OF THE ITALIAN BELGIANS: REPUBLIC, HER ROYAL HIGHNESS THE GRAND DUCHESS OF Mr. Paul Henri SPAAK, Minister for LUXEMBOURG, HER MAJESTY THE Foreign Affairs, QUEEN OF THE NETHERLANDS, Baron J. Ch. SNOY ET D'OPPUERS, RECOGNIZING that nuclear energy Secretary General of the Ministry of represents an essential resource for the Economic Affairs, Head of the Belgian development and invigoration of Delegation to the Intergovernmental industry and will permit the Conference; advancement of the cause of peace, THE PRESIDENT OF THE FEDERAL CONVINCED that only a joint effort REPUBLIC OF GERMANY: undertaken without delay can offer the prospect of achievements commensurate Dr Konrad ADENAUER, Federal with the creative capacities of their Chancellor, countries, Professor Dr Walter HALLSTEIN, State RESOLVED to create the conditions Secretary of the Federal Foreign Office; necessary for the development of a powerful nuclear industry which will THE PRESIDENT OF THE FRENCH provide extensive energy resources, lead REPUBLIC: to the modernization of technical processes and contribute, through its Mr. Christian PINEAU, Minister for many other applications, to the Foreign Affairs, prosperity of their peoples, Mr. Maurice FAURE, Under Secretary ANXIOUS to create the conditions of of State for Foreign Affairs; safety necessary to eliminate hazards to the life and health of the public, THE PRESIDENT OF THE ITALIAN REPUBLIC: DESIRING to associate other countries with their work and to cooperate with Inventory of International Nonproliferation Organizations and Regimes 1 © Center for Nonproliferation Studies

Mr. Antonio SEGNI, President of the (EURATOM). It shall be the task of the Council of Ministers, Community to contribute to the raising of the standard of living in the Member Professor Gaetano MARTINO, Minister States and to the development of for Foreign Affairs; relations with the other countries by creating the conditions necessary for the HER ROYAL HIGHNESS THE speedy establishment and growth of GRAND DUCHESS OF nuclear industries. LUXEMBOURG: Article 2 Mr. Joseph BECH, President of the Government, Minister for Foreign In order to perform its task, the Affairs, Community shall, as provided in this Treaty: Mr. Lambert SCHAUS, Ambassador, Head of the Luxembourg Delegation to a. promote research and ensure the the Intergovernmental Conference; dissemination of technical information; HER MAJESTY THE QUEEN OF THE b. establish uniform safety NETHERLANDS: standards to protect the health of workers and of the general public Mr. Joseph LUNS, Minister for Foreign and ensure that they are applied; Affairs, c. facilitate investment and ensure, particularly by encouraging Mr. J. LINTHORST HOMAN, Head of ventures on the part of the Netherlands Delegation to the undertakings, the establishment Intergovernmental Conference; of the basic installations necessary for the development of WHO, having exchanged their full nuclear energy in the powers, found in good and due form, Community; have agreed as follows. d. ensure that all users in the Community receive a regular and TITLE I equitable supply of ores and nuclear fuels; THE TASKS OF THE e. make certain, by appropriate supervision, that nuclear COMMUNITY materials are not diverted to purposes other than those for Article 1 which they are intended; f. exercise the right of ownership By this Treaty the HIGH conferred upon it with respect to CONTRACTING PARTIES establish special fissile materials; among themselves a EUROPEAN g. ensure wide commercial outlets ATOMIC ENERGY COMMUNITY and access to the best technical Inventory of International Nonproliferation Organizations and Regimes 2 © Center for Nonproliferation Studies

facilities by the creation of PROGRESS IN THE FIELD OF a common market in specialized NUCLEAR ENERGY materials and equipment, by the free movement of capital for investment in the field of nuclear energy and by freedom of CHAPTER 1: PROMOTION OF employment for specialists RESEARCH within the Community; h. establish with other countries and Article 4 international organizations such relations as will foster progress in the peaceful uses of nuclear 1. The Commission shall be responsible energy. for promoting and facilitating nuclear research in the Member States and for complementing it by carrying out Article 3(*^2) a Community research and training programme. 1. The tasks entrusted to the

Community shall be carried out by the 2. The activity of the Commission in following institutions: this respect shall be carried out within the fields listed in Annex I to this Treaty. • a EUROPEAN PARLIAMENT, This list may be amended by the Council, acting by a qualified majority • a COUNCIL, on a proposal from the Commission. The latter shall consult the Scientific and • a COMMISSION, Technical Committee established under Article 134. • a COURT OF JUSTICE, Article 5 • a COURT OF AUDITORS. For purposes of coordinating and Each institution shall act within the complementing research undertaken in limits of the powers conferred upon it by Member States, the Commission shall, this Treaty. either by a specific request addressed to a given recipient and conveyed to the 2. The Council and the Commission government concerned, or by a general shall be assisted by an Economic and published request, call upon Member Social Committee acting in an advisory States, persons or undertakings to capacity. communicate to it their programmes relating to the research which it specifies TITLE II in the request.

PROVISIONS FOR THE After giving those concerned full ENCOURAGEMENT OF opportunity to comment, the

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Commission may deliver a reasoned materials or special fissile materials opinion on each of the programmes which it has available; communicated to it. The Commission shall deliver such an opinion if the State, c. place installations, equipment person or undertaking which has or expert assistance at the disposal of communicated the programme so Member States, persons or requests. undertakings, either free of charge or against payment; By such opinions the Commission shall discourage unnecessary duplication and d. promote joint financing by the shall direct research towards sectors Member States, persons or undertakings which are insufficiently explored. The concerned. Commission may not publish these programmes without the consent of the Article 7 State, person or undertaking which has communicated them. Community research and training programmes shall be determined by the The Commission shall publish at regular Council, acting unanimously on intervals a list of those sectors of nuclear a proposal from the Commission, which research which it considers to be shall consult the Scientific and Technical insufficiently explored. Committee.

The Commission may bring together These programmes shall be drawn up for representatives of public and private a period of not more than five years. research centres as well as any experts engaged in research in the same or The funds required for carrying out these related fields for mutual consultation and programmes shall be included each year exchanges of information. in the research and investment budget of the Community. Article 6 The Commission shall ensure that these To encourage the carrying out of programmes are carried out and shall research programmes communicated to submit an annual report thereon to the it the Commission may: Council.

a. provide financial assistance The Commission shall keep the within the framework of research Economic and Social Committee contracts, without, however, informed of the broad outlines of offering subsidies; Community research and training programmes. b. supply, either free of charge or against payment, for carrying out such Article 8 programmes, any source

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1. After consulting the Scientific and The Commission may, by contract, Technical Committee, the Commission entrust the carrying out of certain parts shall establish a Joint Nuclear Research of the Community research programme Centre. to Member States, persons or undertakings, or to third countries, This Centre shall ensure that the research international organizations or nationals programmes and other tasks assigned to of third countries. it by the Commission are carried out. Article 11 It shall also ensure that a uniform nuclear terminology and a standard The Commission shall publish the system of measurements are established. research programmes referred to in Articles 7, 8 and 10, and also regular It shall set up a central bureau for progress reports on their nuclear measurements. implementation.

2. The activities of the Centre may, for geographical or functional reasons, be CHAPTER 2: DISSEMINATION OF carried out in separate establishments. INFORMATION

Article 9 Section 1: Information over which the Community has power of disposal 1. After obtaining the opinion of the Economic and Social Committee the Article 12 Commission may, within the framework of the Joint Nuclear Research Centre, set Member States, persons or undertakings up schools for the training of specialists, shall have the right, on application to the particularly in the fields of prospecting Commission, to obtain non exclusive for minerals, the production of high licences under patents, provisionally purity nuclear materials, the processing protected patent rights, utility models or of irradiated fuels, nuclear engineering, patent applications owned by the health and safety and the production and Community, where they are able to use of radioisotopes. make effective use of the inventions covered thereby. The Commission shall determine the details of such training. Under the same conditions, the Commission shall grant sublicences 2. An institution of university status under patents, provisionally protected shall be established; the way in which it patent rights, utility models or patent will function shall be determined by the applications, where the Community Council, acting by a qualified majority holds contractual licences conferring on a proposal from the Commission. power to do so.

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The Commission shall grant such (a) Dissemination by amicable licences or sublicences on terms to be agreement agreed with the licensees and shall furnish all the information required for Article 14 their use. These terms shall relate in particular to suitable remuneration and, The Commission shall endeavour, by where appropriate, to the right of the amicable agreement, to secure both the licensee to grant sublicences to third communication of information which is parties and to the obligation to treat the of use to the Community in the information as a trade secret. attainment of its objectives and the granting of licences under patents, Failing agreement on the terms referred provisionally protected patent rights, to in the third paragraph, the licensees utility models or patent applications may bring the matter before the Court of covering such information. Justice so that appropriate terms may be fixed. Article 15

Article 13 The Commission shall establish a procedure by which Member States, The Commission shall communicate to persons and undertakings may use it as Member States, persons and an intermediary for exchanging undertakings information acquired by provisional or final results of their the Community which is not covered by research, in so far as these results have the provisions of Article 12, whether not been acquired by the Community such information is derived from its own under research contracts awarded by the research programme or communicated to Commission. the Commission with authority to make free use of it. This procedure must be such as to ensure the confidential nature of the exchange. The Commission may, however, make The results communicated may, the disclosure of such information however, be transmitted by the conditional on its being treated as Commission to the Joint Nuclear confidential and not passed on to third Research Centre for documentation parties. purposes; this shall not entail any right of use to which the communicating party The Commission may not disclose has not agreed. information which has been acquired subject to restrictions on its use or (b) Compulsory communication to the dissemination such as information Commission known as classified information unless it ensures compliance with these Article 16 restrictions. 1. As soon as an application for Section 2: Other information a patent or a utility model relating to Inventory of International Nonproliferation Organizations and Regimes 6 © Center for Nonproliferation Studies

a specifically nuclear subject is filed although not specifically nuclear, is with a Member State, that State shall ask directly connected with and essential to the applicant to agree that the contents of the development of nuclear energy in the the application be communicated to the Community. Commission forthwith. If the Commission so requests, the If the applicant agrees, this contents of the application shall be communication shall be made within communicated to it within two months. three months of the date of filing the application. If the applicant does not 3. In order that publication may take agree, the Member State shall, within the place as soon as possible, Member States same period, notify the Commission of shall reduce to a minimum the time the existence of the application. taken to process applications for patents or utility models relating to subjects The Commission may require a Member referred to in paragraphs 1 and State to communicate the contents of an 2 concerning which a request has been application of whose existence it has made by the Commission. been notified. 4. The Commission shall treat the The Commission shall make any such abovementioned communications as request within two months of the date of confidential. They may only be made for notification. Any extension of this period documentation purposes. The shall entail a corresponding extension of Commission may, however, make use of the period referred to in the sixth the inventions communicated to it, either subparagraph of this paragraph. with the consent of the applicant or in accordance with Articles 17 to 23. On receiving such a request from the Commission, the Member State shall 5. The provisions of this Article shall again ask the applicant to agree to not apply when an agreement concluded communication of the contents of the with a third State or an international application. If the applicant agrees, organization precludes communication. communication shall be made forthwith. If the applicant does not agree, the (c) Grant of licences by arbitration or Member State shall nevertheless be under compulsory powers required to make this communication to the Commission within 18 months of the Article 17 date on which the application was filed. 1. Failing amicable agreement, non 2. Member States shall inform the exclusive licences may be granted either Commission, within 18 months of the by arbitration or under compulsory filing date, of the existence of any as yet powers in accordance with Articles 18 to unpublished application for a patent or 23: utility model which seems to them, prima facie, to deal with a subject which, Inventory of International Nonproliferation Organizations and Regimes 7 © Center for Nonproliferation Studies

a. to the Community or to Joint either himself or through his licensees, Undertakings accorded this right under has not complied with this request; Article 48 in respect of patents, provisionally protected patent rights or iv. the persons or undertakings utility models relating to inventions applying for licences are in a position to directly connected with nuclear research, meet such requirements effectively where the granting of such licences is by making use of the invention. necessary for the continuance of their own research or indispensable to Member States may not, in order to meet the operation of their installations. such requirements, take any coercive measures provided for in their national If the Commission so requests, such legislation which will limit the licences shall include the right to protection accorded to the invention, authorize third parties to make use of the save at the prior request of the invention, where they are carrying out Commission. work for or orders placed by the Community or Joint Undertakings; 2. A non exclusive licence may not be granted as provided for in paragraph b. to persons or undertakings 1 where the proprietor can establish the which have applied to the Commission existence of legitimate reasons, in for them in respect of patents, particular that he has not had sufficient provisionally protected patent rights or time at his disposal. utility models relating to inventions directly connected with and 3. The granting of a licence pursuant to essential to the development of nuclear paragraph 1 shall confer a right to full energy in the Community, compensation, the amount of which shall provided that all the following be agreed between the proprietor of the conditions are fulfilled: patent, provisionally protected patent right or utility model and the licensee. i. at least four years have elapsed since the filing of the patent application, 4. The provisions of this Article shall save in the case of an invention not affect those of the Paris Convention relating to a specifically nuclear subject; for the Protection of Industrial Property.

ii. the requirements arising out of Article 18 the development of nuclear energy, in the Commission's conception of such An Arbitration Committee is hereby development, in the territory of established for the purposes provided for a Member State where an in this Section. The Council shall invention is protected, are not being met appoint the members and lay down the with regard to that invention; Rules of Procedure of this Committee, acting on a proposal from the Court of iii. the proprietor, having been Justice. called upon to meet such requirements Inventory of International Nonproliferation Organizations and Regimes 8 © Center for Nonproliferation Studies

An appeal, having suspensory effect, authorities to grant the licence or cause it may be brought by the parties before the to be granted. Court of Justice against a decision of the Arbitration Committee within one month If, when the matter is referred to it under of notification thereof. The Court of a special agreement, the Arbitration Justice shall confine its examination to Committee finds that the request from the formal validity of the decision and to the Commission complies with the the interpretation of the provisions of provisions of Article 17, it shall give this Treaty by the Arbitration a reasoned decision containing a grant of Committee. the licence to the applicant and laying down the terms of the licence and the The final decisions of the Arbitration remuneration therefore, to the extent that Committee shall have the force of res the parties have not reached agreement judicata between the parties concerned. on these points. They shall be enforceable as provided in Article 164. Article 21

Article 19 If the proprietor does not propose that the matter be referred to the Arbitration Where, failing amicable agreement, the Committee, the Commission may call Commission intends to secure the upon the Member State concerned or its granting of licences in one of the cases appropriate authorities to grant the provided for in Article 17, it shall give licence or cause it to be granted. notice of its intention to the proprietor of the patent, provisionally protected patent If, having heard the proprietor's case, the right, utility model or patent application, Member State, or its appropriate and shall specify in such notice the name authorities, considers that the conditions of the applicant for and the scope of the of Article 17 have not been complied licence. with, it shall notify the Commission of its refusal to grant the licence or to cause Article 20 it to be granted.

The proprietor may, within one month of If it refuses to grant the licence or to receipt of the notice referred to in Article cause it to be granted, or if, within four 19, propose to the Commission and, months of the date of the request, no where appropriate, to the applicant that information is forthcoming with regard they conclude a special agreement to to the granting of the licence, the refer the matter to the Arbitration Commission shall have two months in Committee. which to bring the matter before the Court of Justice. The proprietor must be Should the Commission or the applicant heard in the proceedings before the refuse to enter into such an agreement, Court of Justice. the Commission shall not require the Member State or its appropriate Inventory of International Nonproliferation Organizations and Regimes 9 © Center for Nonproliferation Studies

If the judgment of the Court of Justice Section 3: Security provisions establishes that the conditions of Article 17 have been complied with, the Article 24 Member State concerned, or its appropriate authorities, shall take such Information which the Community measures as enforcement of that acquires as a result of carrying out its judgment may require. research programme, and the disclosure of which is liable to harm the defence Article 22 interests of one or more Member States, shall be subject to a security system in 1. If the proprietor of the patent, accordance with the following provisionally protected patent right or provisions. utility model and the licensee fail to agree on the amount of compensation, 1. The Council shall, acting on the parties concerned may conclude a proposal from the Commission, adopt a special agreement to refer the matter to security regulations which, account the Arbitration Committee. being taken of the provisions of this Article, lay down the various security By doing so, the parties waive the right gradings to be applied and the security to institute any proceedings other than measures appropriate to each grading those provided for in Article 18. Where the Commission considers that 2. If the licensee refuses to conclude the disclosure of certain information is a special agreement, the licence he has liable to harm the defence interests of been granted shall be deemed void. one or more Member States, it shall provisionally apply to that information If the proprietor refuses to conclude the security grading required in that case a special agreement, the compensation by the security regulations. referred to in this Article shall be determined by the appropriate national 2. It shall communicate such information authorities. forthwith to the Member States, which shall provisionally ensure its security in Article 23 the same manner.

After the lapse of one year, the decisions Member States shall inform the of the Arbitration Committee or the Commission within three months appropriate national authorities may, if whether they wish to maintain the there are new facts to justify it, be grading provisionally applied, substitute revised with respect to the terms of the another or declassify the information. licence. Upon the expiry of this period, the Such revision shall be a matter for the highest grading of those requested shall body which gave the decision. be applied. The Commission shall notify the Member States accordingly. Inventory of International Nonproliferation Organizations and Regimes 10 © Center for Nonproliferation Studies

At the request of the Commission or of undertaking operating in its a Member State, the Council may, acting territory. unanimously, at any time apply another grading or declassify the information. Article 25 The Council shall obtain the opinion of the Commission before taking any action 1. A Member State notifying the on a request from a Member State. existence or communicating the contents of an application for a patent or utility 3. The provisions of Articles 12 and 13 model relating to a subject specified in shall not apply to information subject to Article 16(1) or (2) shall, where a security grading. appropriate, draw attention to the need to apply a given security grading for Nevertheless, provided that the defence reasons, at the same time stating appropriate security measures are the probable duration of such grading. observed, The Commission shall pass on to the a. the information referred to in other Member States all communications Articles 12 and 13 may be received in accordance with the communicated by the Commission: preceding subparagraph. The Commission and the Member States i. to a Joint Undertaking; shall take those measures which, under the security regulations, correspond to ii. to a person or the grading required by the State of undertaking other than a Joint origin. Undertaking, through the Member State in whose 2. The Commission may also pass on territory that person or undertaking these communications to Joint operates; Undertakings or, through a Member State, to a person or to an undertaking b. the information referred to in other than a Joint Undertaking operating Article 13 may be communicated by in the territory of that State. a Member State to a person or to an undertaking other than a Joint Inventions which are the subject of Undertaking, operating in the applications referred to in paragraph territory of that State, provided that the 1 may be used only with the consent of Commission is notified of this the applicant or in accordance with communication; Articles 17 to 23.

c. each Member State has, The communications and, where however, the right to require the appropriate, the use referred to in this Commission to grant a licence under paragraph shall be subject to the Article 12 to meet the needs of that State measures which, under the security or those of a person or regulations, correspond to the security grading required by the State of origin. Inventory of International Nonproliferation Organizations and Regimes 11 © Center for Nonproliferation Studies

information was communicated to the The communications shall in all cases be Member States by the Commission. subject to the consent of the State of origin. Consent to communication and Article 27 use may be withheld only for defence reasons. Compensation for any damage suffered by the applicant as a result of 3. At the request of the Commission or classification for defence reasons shall of a Member State, the Council may, be governed by the provisions of the acting unanimously, at any time apply national laws of the Member States and another grading or declassify the shall be the responsibility of the State information. The Council shall obtain which applied for such classification or the opinion of the Commission before which either obtained the upgrading or taking any action on a request from extension of the classification or caused a Member State. the filing of applications outside the Community to be prohibited. Article 26 Where several Member States have 1. Where information covered by either obtained the upgrading or patents, patent applications, extension of the classification or caused provisionally protected patent rights, the filing of applications outside the utility models or applications for utility Community to be prohibited, they shall models has been classified in accordance be jointly responsible for making good with Articles 24 and 25, the States which any damage arising out of their action. have applied for such classification may not refuse to allow corresponding The Community may not claim any applications to be filed in the other compensation under this Article. Member States. Section 4: Special provisions Each Member State shall take the necessary measures to maintain the Article 28 security of such rights and applications in accordance with the procedure laid Where, as a result of their down in its own laws and regulations. communication to the Commission, unpublished applications for patents or 2. No applications relating to utility models, or patents or utility information classified in accordance models classified for defence reasons, with Article 24 may be filed outside the are improperly used or come to the Member States except with the knowledge of an unauthorized person, unanimous consent of the latter. Should the Community shall make good the Member States fail to make known their damage suffered by the party concerned. attitude, their consent shall be deemed to have been obtained on the expiry of six Without prejudice to its own rights months from the date on which the against the person responsible for the Inventory of International Nonproliferation Organizations and Regimes 12 © Center for Nonproliferation Studies

damage, the Community shall, to the a. maximum permissible doses extent that it has made good such compatible with adequate safety; damage, acquire any rights of action enjoyed by those concerned against third b. maximum permissible levels parties. This shall not affect the right of of exposure and contamination; the Community to take action against the person responsible for the damage in c. the fundamental principles accordance with the general provisions governing the health surveillance of in force. workers.

Article 29 Article 31

Where an agreement or contract for the The basic standards shall be worked out exchange of scientific or industrial by the Commission after it has obtained information in the nuclear field between the opinion of a group of persons a Member State, a person or an appointed by the Scientific and undertaking on the one hand, and a third Technical Committee from among State, an international organization or scientific experts, and in particular a national of a third State on the other, public health experts, in the Member requires, on either part, the signature of States. The Commission shall obtain the a State acting in its sovereign capacity, it opinion of the Economic and Social shall be concluded by the Commission. Committee on these basic standards.

Subject to the provisions of Articles 103 After consulting the European and 104, the Commission may, however, Parliament the Council shall, on on such conditions as it considers a proposal from the Commission, which appropriate, authorize a Member State, shall forward to it the opinions obtained a person or an undertaking to conclude from these Committees, establish the such agreements. basic standards; the Council shall act by a qualified majority.

CHAPTER 3: HEALTH AND Article 32 SAFETY At the request of the Commission or of Article 30 a Member State, the basic standards may be revised or supplemented in Basic standards shall be laid down accordance with the procedure laid down within the Community for the protection in Article 31. of the health of workers and the general public against the dangers arising from The Commission shall examine any ionizing radiations. request made by a Member State.

The expression ‘basic standards’ means: Article 33

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Each Member State shall lay down the continuous monitoring of the level of appropriate provisions, whether by radioactivity in the air, water and soil legislation, regulation or administrative and to ensure compliance with the basic action, to ensure compliance with the standards. basic standards which have been established and shall take the necessary The Commission shall have the right of measures with regard to teaching, access to such facilities; it may verify education and vocational training. their operation and efficiency.

The Commission shall make appropriate Article 36 recommendations for harmonizing the provisions applicable in this field in the The appropriate authorities shall Member States. periodically communicate information on the checks referred to in Article 35 to To this end, the Member States shall the Commission so that it is kept communicate to the Commission the informed of the level of radioactivity to provisions applicable at the date of entry which the public is exposed. into force of this Treaty and any subsequent draft provisions of the same Article 37 kind. Each Member State shall provide the Any recommendations the Commission Commission with such general data may wish to issue with regard to such relating to any plan for the disposal of draft provisions shall be made within radioactive waste in whatever forms will three months of the date on which such make it possible to determine whether draft provisions are communicated. the implementation of such plan is liable to result in the radioactive contamination Article 34 of the water, soil or airspace of another Member State. Any Member State in whose territories particularly dangerous experiments are The Commission shall deliver its to take place shall take additional health opinion within six months, after and safety measures, on which it shall consulting the group of experts referred first obtain the opinion of the to in Article 31. Commission. The assent of the Commission shall be Article 38 required where the effects of such experiments are liable to affect the The Commission shall make territories of other Member States. recommendations to the Member States with regard to the level of radioactivity Article 35 in the air, water and soil.

Each Member State shall establish the In cases of urgency, the Commission facilities necessary to carry out shall issue a directive requiring the Inventory of International Nonproliferation Organizations and Regimes 14 © Center for Nonproliferation Studies

Member State concerned to take, within a period laid down by the Commission, The Commission shall obtain the all necessary measures to prevent opinion of the Economic and Social infringement of the basic standards and Committee on such programmes before to ensure compliance with regulations. their publication.

Should the State in question fail to Article 41 comply with the Commission directive within the period laid down, the Persons and undertakings engaged in the Commission or any Member State industrial activities listed in Annex II to concerned may forthwith, by way of this Treaty shall communicate to the derogation from Articles 141 and 142, Commission investment projects relating bring the matter before the Court of to new installations and also to Justice. replacements or conversions which fulfil the criteria as to type and size laid down Article 39 by the Council on a proposal from the Commission. The Commission shall set up within the framework of the Joint Nuclear Research The list of industrial activities referred to Centre, as soon as the latter has been above may be altered by the Council, established, a health and safety acting by a qualified majority on documentation and study section. a proposal from the Commission, which shall first obtain the opinion of the This section shall in particular have the Economic and Social Committee. task of collecting the documentation and information referred to in Articles 33, 36 Article 42 and 37 and of assisting the Commission in carrying out the tasks assigned to it by The projects referred to in Article 41 this Chapter. shall be communicated to the Commission and, for information purposes, to the Member State CHAPTER 4: INVESTMENT concerned not later than three months before the first contracts are concluded Article 40 with the suppliers or, if the work is to be carried out by the undertaking with its In order to stimulate action by persons own resources, three months before the and undertakings and to facilitate work begins. coordinated development of their investment in the nuclear field, the The Council may, acting on a proposal Commission shall periodically publish from the Commission, alter this time illustrative programmes indicating in limit. particular nuclear energy production targets and all the types of investment Article 43 required for their attainment. Inventory of International Nonproliferation Organizations and Regimes 15 © Center for Nonproliferation Studies

The Commission shall discuss with the If the Commission delivers a favourable persons or undertakings all aspects of opinion on the need for the proposed investment projects which relate to the Joint Undertaking, it shall submit objectives of this Treaty. proposals to the Council concerning:

It shall communicate its views to the a. location; Member State concerned. b. statutes; Article 44 c. the scale of and timetable for The Commission may, with the consent financing; of the Member States, persons and undertakings concerned, publish any d. possible participation by the investment projects communicated to it. Community in the financing of the Joint Undertaking;

CHAPTER 5: JOINT e. possible participation by UNDERTAKINGS a third State, an international organization or a national of Article 45 a third State in the financing or management of the Joint Undertakings which are of fundamental Undertaking; importance to the development of the nuclear industry in the Community may f. the conferring of any or all of be established as Joint Undertakings the advantages listed in Annex III to this within the meaning of this Treaty, in Treaty. accordance with the following Articles. The Commission shall attach a detailed Article 46 report on the project as a whole.

1. Every project for establishing a Joint Article 47 Undertaking, whether originating from the Commission, a Member State or any The Council may, when the matter has other quarter, shall be the subject of an been submitted to it by the Commission, inquiry by the Commission. request the latter to supply such further information or to undertake such further For this purpose, the Commission shall inquiries as the Council may consider obtain the views of Member States and necessary. of any public or private body which in its opinion can usefully advise it.2. The If the Council, acting by a qualified Commission shall forward to the majority, considers that a project Council any project for establishing forwarded by the Commission with an a Joint Undertaking, together with its unfavourable opinion should reasoned opinion. nevertheless be carried out, the Inventory of International Nonproliferation Organizations and Regimes 16 © Center for Nonproliferation Studies

Commission shall submit to the Council Each Joint Undertaking shall have legal the proposals and the detailed report personality. referred to in Article 46. In each of the Member States, it shall Where the opinion of the Commission is enjoy the most extensive legal capacity favourable or in the case referred to in accorded to legal persons under their the preceding paragraph, the Council respective national laws; it may, in shall act by a qualified majority on each particular, acquire or dispose of movable of the proposals from the Commission. and immovable property and may be a party to legal proceedings. The Council shall, however, act unanimously in respect of: Save as otherwise provided in this Treaty or in its own statutes, each Joint a. participation by the Undertaking shall be governed by the Community in the financing of the Joint rules applying to industrial or Undertaking; commercial undertakings; its statutes may make subsidiary reference to the b. participation by a third State, national laws of the Member States. an international organization or a national of a third State in the Save where jurisdiction is conferred financing or management of the Joint upon the Court of Justice by this Treaty, Undertaking. disputes in which Joint Undertakings are concerned shall be determined by the Article 48 appropriate national courts or tribunals.

The Council may, acting unanimously Article 50 on a proposal from the Commission, make applicable to each Joint The statutes of Joint Undertakings shall Undertaking any or all of the advantages be amended, where necessary, in listed in Annex III to this Treaty; each accordance with the special provisions Member State shall for its part ensure which they contain for this purpose. that these advantages are conferred. Such amendments shall not, however, The Council may, in accordance with the enter into force until they have been same procedure, lay down the conditions approved by the Council, acting in governing the conferment of these accordance with the procedure laid down advantages. in Article 47 on a proposal from the Commission. Article 49 Article 51 Joint Undertakings shall be established by Council decision. The Commission shall be responsible for carrying out all decisions of the Council relating to the establishment of Joint Inventory of International Nonproliferation Organizations and Regimes 17 © Center for Nonproliferation Studies

Undertakings until the bodies Article 53 responsible for the operation of such undertakings have been set up. The Agency shall be under the supervision of the Commission, which shall issue directives to it, possess a right CHAPTER 6: SUPPLIES of veto over its decisions and appoint its Director General and Deputy Director Article 52 General.

1. The supply of ores, source materials Any act, whether implied or expressed, and special fissile materials shall be performed by the Agency in the exercise ensured, in accordance with the of its right of option or of its exclusive provisions of this Chapter, by means of right to conclude supply contracts, may a common supply policy on the principle be referred by the parties concerned to of equal access to sources of supply. the Commission, which shall give a decision thereon within one month. 2. For this purpose and under the conditions laid down in this Chapter: Article 54

a. all practices designed to secure The Agency shall have legal personality a privileged position for certain users and financial autonomy. shall be prohibited; The Council shall lay down the statutes b. an Agency is hereby of the Agency, acting by a qualified established; it shall have a right of majority on a proposal from the option on ores, source materials Commission. and special fissile materials produced in the territories of Member States and The statutes may be amended in an exclusive right to conclude contracts accordance with the same procedure. relating to the supply of ores, source materials and special fissile The statutes shall determine the materials coming from inside the Agency's capital and the terms upon Community or from outside. which it is to be subscribed. The major part of the capital shall always belong to The Agency may not discriminate in any the Community and to the Member way between users on grounds of the use States. The contributions to the capital which they intend to make of the shall be determined by common accord supplies requested unless such use is of the Member States. unlawful or is found to be contrary to the conditions imposed by suppliers outside The rules for the commercial the Community on the consignment in management of the activities of the question. Agency shall be laid down in the statutes. The latter may provide for Section 1: The Agency Inventory of International Nonproliferation Organizations and Regimes 18 © Center for Nonproliferation Studies

a charge on transactions to defray the producers of ores, source materials and operating expenses of the Agency. special fissile materials.

Article 55 Subject to Articles 58, 62 and 63, every producer shall offer to the Agency the The Member States shall communicate ores, source materials or special fissile or cause to be communicated to the materials which he produces within the Agency all the information necessary to territories of Member States before they enable it to exercise its right of option are used, transferred or stored. and its exclusive right to conclude supply contracts. Article 58

Article 56 Where a producer carries out several stages of production from extraction of The Member States shall be responsible the ore up to and including production of for ensuring that the Agency may the metal, he may offer the product to operate freely in their territories. the Agency at whichever stage of production he chooses. They may establish one or more bodies having authority to represent, in relations The same shall apply to two or more with the Agency, producers and users in connected undertakings, where the the non European territories under their connection has been duly communicated jurisdiction. to the Commission and discussed with it in accordance with the procedures laid Section 2: Ores, source materials and down in Articles 43 and 44. special fissile materials coming from inside the Community Article 59

Article 57 If the Agency does not exercise its right of option on the whole or any part of the 1. The right of option of the Agency output of a producer, the latter: shall cover: a. may, either by using his own a. the acquisition of rights to use resources or under contract, process or and consume materials owned by the cause to be processed the ores, source Community under the provisions materials or special fissile materials, of Chapter 8; provided that he offers to the Agency the product of such processing; b. the acquisition of the right of ownership in all other cases. b. shall be authorized by a decision of the Commission to dispose 2. The Agency shall exercise its right of of his available production outside option by concluding contracts with the Community, provided that the terms he offers are not more favourable Inventory of International Nonproliferation Organizations and Regimes 19 © Center for Nonproliferation Studies

than those previously offered to the Agency. However, special fissile If the Agency cannot meet in their materials may be exported only entirety all the orders received, it shall, through the Agency and in accordance subject to the provisions of Articles 68 with the provisions of Article 62. and 69, share out the supplies proportionately among the orders The Commission may not grant such relating to each offer. authorization if the recipients of the supplies fail to satisfy it that the general Agency rules, which shall require interests of the Community will be approval by the Commission, shall safeguarded or if the terms and determine the manner in which demand conditions of such contracts are contrary is to be balanced against supply. to the objectives of this Treaty. Article 61 Article 60 The Agency shall meet all orders unless Potential users shall periodically inform prevented from so doing by legal or the Agency of the supplies they require, material obstacles. specifying the quantities, the physical and chemical nature, the place of origin, When concluding a contract, the Agency the intended use, delivery dates and may, while complying with the price terms, which are to form the terms provisions of Article 52, require users to and conditions of the supply contract make appropriate advance payments which they wish to conclude. either as security or to assist in meeting the Agency's own long term Similarly, producers shall inform the commitments to producers where these Agency of offers which they are able to are essential to carrying out the order. make, stating all the specifications, and in particular the duration of contracts, Article 62 required to enable their production programmes to be drawn up. Such 1. The Agency shall exercise its right of contracts shall be of not more than 10 option on special fissile materials years duration save with the agreement produced in the territories of Member of the Commission. States in order:

The Agency shall inform all potential a. to meet demand from users users of the offers and of the volume of within the Community in accordance applications which it has received and with Article 60; or shall call upon them to place their orders by a specified time limit. b. to store such materials itself; or When the Agency has received all such orders, it shall make known the terms on c. to export such materials with which it can meet them. the authorization of the Commission Inventory of International Nonproliferation Organizations and Regimes 20 © Center for Nonproliferation Studies

which shall comply with the second Section 3: Ores, source materials and subparagraph of Article 59(b). special fissile materials coming from outside the Community 2. Nevertheless, while continuing to be subject to the provisions of Chapter 7, Article 64 such materials and any fertile wastes shall be left in the possession of the The Agency, acting where appropriate producer, so that he may: within the framework of agreements concluded between the Community and a. store them with the a third State or an international authorization of the Agency; or organization, shall, subject to the exceptions provided for in this Treaty, b. use them within the limits of have the exclusive right to enter into his own requirements; or agreements or contracts whose principal aim is the supply of ores, source c. make them available to materials or special fissile materials undertakings in the Community, within coming from outside the Community. the limits of their requirements, where for carrying out a programme duly Article 65 communicated to the Commission, these undertakings have with the Article 60 shall apply applications from producer a direct connection which has users and to contracts between users and neither the aim nor the effect of limiting the Agency relating to the supply of production, technical development or ores, source materials or special fissile investment or of improperly creating materials coming from outside the inequalities between users in the Community. Community. The Agency may, however, decide on 3. The provisions of Article 89(1)(a) the geographical origin of supplies shall apply to special fissile materials provided that conditions which are at which are produced in the territories of least as favourable as those specified in Member States and on which the Agency the order are thereby secured for the has not exercised its right of option. user.

Article 63 Article 66

Ores, source materials and special fissile Should the Commission find, on materials produced by Joint application by the users concerned, that Undertakings shall be allotted to users in the Agency is not in a position to deliver accordance with the rules laid down in within a reasonable period of time all or the statutes or agreements of such part of the supplies ordered, or that it can undertakings. only do so at excessively high prices, the users shall have the right to conclude directly contracts relating to supplies Inventory of International Nonproliferation Organizations and Regimes 21 © Center for Nonproliferation Studies

from outside the Community, provided The Commission may, if it accepts the that such contracts meet in essential findings, set the prices of the offers in respects the requirements specified in issue at a level compatible with the their orders. principle of equal access.

This right shall be granted for a period of Article 69 one year; it may be extended if the situation which justified its granting The Council may fix prices, acting continues. unanimously on a proposal from the Commission. Users who avail themselves of the right provided for in this Article shall When the Agency lays down, in communicate to the Commission the pursuance of Article 60, the terms on direct contracts which they propose to which orders can be met, it may propose conclude. The Commission may, within to the users who have placed orders that one month, object to the conclusion of prices be equalized. such contracts if they are contrary to the objectives of this Treaty. Section 5: Provisions relating to supply policy Section 4: Prices Article 70 Article 67 Within the limits set by the budget of the Save where exceptions are provided for Community, the Commission may, on in this Treaty, prices shall be determined such conditions as it shall determine, as a result of balancing supply against give financial support to prospecting demand as provided in Article 60; the programmes in the territories of Member national regulations of the Member States. States shall not contravene such provisions. The Commission may make recommendations to the Member States Article 68 with a view to the development of prospecting for and exploitation of Pricing practices designed to secure mineral deposits. a privileged position for certain users in violation of the principle of equal access The Member States shall submit laid down in the provisions of this annually to the Commission a report on Chapter shall be prohibited. the development of prospecting and production, on probable reserves and on If the Agency finds that any such investment in mining which has been practices are being employed it shall made or is planned in their territories. report them to the Commission. The reports shall be submitted to the Council, together with an opinion from the Commission which shall state in Inventory of International Nonproliferation Organizations and Regimes 22 © Center for Nonproliferation Studies

particular what action has been taken by Article 73 Member States on recommendations made to them under the preceding Where an agreement or contract between paragraph. a Member State, a person or an undertaking on the one hand, and a third If, when the matter has been submitted State, an international organization or to it by the Commission, the Council a national of a third State on the other, finds by a qualified majority that, provides inter alia for delivery of although the prospects for extraction products which come within the appear economically justified on a long province of the Agency, the prior term basis, prospecting activities and the consent of the Commission shall be expansion of mining operations continue required for the conclusion or renewal of to be markedly inadequate, the Member that agreement or contract, as far as State concerned shall, for as long as it delivery of the products is concerned. has failed to remedy this situation, be deemed to have waived, both for itself Article 74 and for its nationals, the right of equal access to other sources of supply within The Commission may exempt from the the Community. provisions of this Chapter the transfer, import or export of small quantities of Article 71 ores, source materials or special fissile materials such as are normally used in The Commission shall make all research. appropriate recommendations to Member States with regard to revenue or The Agency shall be notified of every mining regulations. transfer, import or export operation effected by virtue of this provision. Article 72 Article 75 The Agency may, from material available inside or outside the The provisions of this Chapter shall not Community, build up the necessary apply to commitments relating to the commercial stocks to facilitate supplies processing, conversion or shaping of to or normal deliveries by the ores, source materials or special fissile Community. materials and entered into:

The Commission may, where necessary, a. by several persons or decide to build up emergency stocks. undertakings, where the material is to The method of financing such stocks return to the original person or shall be approved by the Council, acting undertaking after being processed, by a qualified majority on a proposal converted or shaped; or from the Commission. b. by a person or undertaking and Section 6: Special provisions an international organization or Inventory of International Nonproliferation Organizations and Regimes 23 © Center for Nonproliferation Studies

a national of a third State, where the unforeseen circumstances create material is processed, converted or a situation of general shortage, the shaped outside the Community and Council may, acting unanimously on then returned to the original person or a proposal from the Commission and undertaking; or after consulting the European Parliament, amend the provisions of this c. by a person or undertaking and Chapter. The Commission shall inquire an international organization or into any request made by a Member a national of a third State, where the State. material is processed, converted or shaped inside the Community and is Seven years after the entry into force of then returned either to the original this Treaty, the Council may confirm organization or national or to any these provisions in their entirety. Failing other consignee likewise outside the confirmation, new provisions relating to Community designated by such the subject matter of this Chapter shall organization or national. be adopted in accordance with the procedure laid down in the preceding The persons and undertakings concerned paragraph. shall, however, notify the Agency of the existence of such commitments and, as soon as the contracts are signed, of the CHAPTER 7: SAFEGUARDS quantities of material involved in the movements. The Commission may Article 77 prevent the commitments referred to in subparagraph (b) from being undertaken In accordance with the provisions of this if it considers that the conversion or Chapter, the Commission shall satisfy shaping cannot be carried out efficiently itself that, in the territories of Member and safely and without the loss of States: material to the detriment of the Community. a. ores, source materials and special fissile materials are not diverted The materials to which such from their intended uses as declared commitments relate shall be subject in by the users; the territories of the Member States to the safeguards laid down in Chapter 7. b. the provisions relating to The provisions of Chapter 8 shall not, supply and any particular safeguarding however, be applicable to special fissile obligations assumed by the materials covered by the commitments Community under an agreement referred to in subparagraph (c). concluded with a third State or an international organization are complied Article 76 with.

On the initiative of a Member State or of Article 78 the Commission, and particularly if Inventory of International Nonproliferation Organizations and Regimes 24 © Center for Nonproliferation Studies

Anyone setting up or operating an The Commission may require that any installation for the production, excess special fissile materials recovered separation or other use of source or obtained as by products and not materials or special fissile materials or actually being used or ready for use shall for the processing of irradiated nuclear be deposited with the Agency or in other fuels shall declare to the Commission the stores which are or can be supervised by basic technical characteristics of the the Commission. installations, to the extent that knowledge of these characteristics is Special fissile materials deposited in this necessary for the attainment of the way must be returned forthwith to those objectives set out in Article 77.The concerned at their request. Commission must approve the techniques to be used for the chemical Article 81 processing of irradiated materials, to the extent necessary to attain the objectives The Commission may send inspectors set out in Article 77. into the territories of Member States. Before sending an inspector on his first Article 79 assignment in the territory of a Member State, the Commission shall consult the The Commission shall require that State concerned; such consultation shall operating records be kept and produced suffice to cover all future assignments of in order to permit accounting for ores, this inspector. source materials and special fissile materials used or produced. The same On presentation of a document requirement shall apply in the case of the establishing their authority, inspectors transport of source materials and special shall at all times have access to all places fissile materials. and data and to all persons who, by reason of their occupation, deal with Those subject to such requirements shall materials, equipment or installations notify the authorities of the Member subject to the safeguards provided for in State concerned of any communications this Chapter, to the extent necessary in they make to the Commission pursuant order to apply such safeguards to ores, to Article 78 and to the first paragraph of source materials and special fissile this Article. materials and to ensure compliance with the provisions of Article 77. Should the The nature and the extent of the State concerned so request, inspectors requirements referred to in the first appointed by the Commission shall be paragraph of this Article shall be defined accompanied by representatives of the in a regulation made by the Commission authorities of that State; however, the and approved by the Council. inspectors shall not thereby be delayed or otherwise impeded in the performance Article 80 of their duties.

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If the carrying out of an inspection is refer the matter to the Court of Justice opposed, the Commission shall apply to direct. the President of the Court of Justice for an order to ensure that the inspection be Article 83 carried out compulsorily. The President of the Court of Justice shall give 1. In the event of an infringement on a decision within three days. the part of persons or undertakings of the obligations imposed on them by this If there is danger in delay, the Chapter, the Commission may impose Commission may itself issue a written sanctions on such persons or order, in the form of a decision, to undertakings. proceed with the inspection. This order shall be submitted without delay to the These sanctions shall be in order of President of the Court of Justice for severity: subsequent approval. a. a warning; After the order or decision has been issued, the authorities of the State b. the withdrawal of special concerned shall ensure that the benefits such as financial or technical inspectors have access to the places assistance; specified in the order or decision. c. the placing of the undertaking Article 82 for a period not exceeding four months under the administration of a person Inspectors shall be recruited by the or board appointed by common accord Commission. of the Commission and the State having jurisdiction over the undertaking; They shall be responsible for obtaining and verifying the records referred to in d. total or partial withdrawal of Article 79. They shall report any source materials or special fissile infringement to the Commission. materials.

The Commission may issue a directive 2. Decisions taken by the Commission calling upon the Member State in implementation of paragraph 1 and concerned to take, by a time limit set by requiring the surrender of materials shall the Commission, all measures necessary be enforceable. They may be enforced in to bring such infringement to an end; it the territories of Member States in shall inform the Council thereof. accordance with Article 164.By way of If the Member State does not comply derogation from Article 157, appeals with the Commission directive by the brought before the Court of Justice time limit set, the Commission or any against decisions of the Commission Member State concerned may, in which impose any of the sanctions derogation from Articles 141 and 142, provided for in paragraph 1 shall have suspensory effect. The Court of Justice Inventory of International Nonproliferation Organizations and Regimes 26 © Center for Nonproliferation Studies

may, however, on application by the Article 85 Commission or by any Member State concerned, order that the decision be Where new circumstances so require, the enforced forthwith. procedures for applying the safeguards laid down in this Chapter may, at the There shall be an appropriate legal request of a Member State or of the procedure to ensure the protection of Commission, be adapted by the Council, interests that have been prejudiced. acting unanimously on a proposal from the Commission and after consulting the 3. The Commission may make any European Parliament. The Commission recommendations to Member States shall examine any such request made by concerning laws or regulations which are a Member State. designed to ensure compliance in their territories with the obligations arising under this Chapter. CHAPTER 8: PROPERTY OWNERSHIP 4. Member States shall ensure that sanctions are enforced and, where Article 86 necessary, that the infringements are remedied by those committing them. Special fissile materials shall be the property of the Community. Article 84 The Community's right of ownership In the application of the safeguards, no shall extend to all special fissile discrimination shall be made on grounds materials which are produced or of the use for which ores, source imported by a Member State, a person or materials and special fissile materials are an undertaking and are subject to the intended. safeguards provided for in Chapter 7.

The scope of and procedure for the Article 87 safeguards and the powers of the bodies responsible for their application shall be Member States, persons or undertakings confined to the attainment of the shall have the unlimited right of use and objectives set out in this Chapter. consumption of special fissile materials which have properly come into their The safeguards may not extend to possession, subject to the obligations materials intended to meet defence imposed on them by this Treaty, in requirements which are in the course of particular those relating to safeguards, being specially processed for this the right of option conferred on the purpose or which, after being so Agency and health and safety. processed, are, in accordance with an operational plan, placed or stored in Article 88 a military establishment.

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The Agency shall keep a special account in the name of the Community, called 4. Where the Agency undertakes ‘Special Fissile Materials Financial transactions for its own account, it shall, Account’. for the purposes of this Chapter, be deemed to be an undertaking. Article 89 Article 90 1. In the Special Fissile Materials Financial Account: Where new circumstances so require, the provisions of this Chapter relating to the a. the value of special fissile Community's right of ownership may, at materials left in the possession of or put the request of a Member State or of the at the disposal of a Member State, Commission, be adjusted by the Council, person or undertaking shall be credited acting unanimously on a proposal from to the Community and debited to that the Commission and after consulting the Member State, person or undertaking; European Parliament. The Commission shall examine any such request made by b. the value of special fissile a Member State. materials which are produced or imported by a Member State, person Article 91 or undertaking and become the property of the Community shall be debited to The system of ownership applicable to the Community and credited to that all objects, materials and assets which Member State, person or are not vested in the Community under undertaking. A similar entry shall be this Chapter shall be determined by the made when a Member State, person or law of each Member State. undertaking restores to the Community special fissile materials previously left in the possession CHAPTER 9: THE NUCLEAR of or put at the disposal of that State, COMMON MARKET person or undertaking. Article 92 2. Variations in value affecting the quantities of special fissile material shall The provisions of this Chapter shall be expressed for accounting purposes in apply to the goods and products such a way as not to give rise to any loss specified in the lists forming Annex IV or gain to the Community. Any loss or to this Treaty. gain shall be borne by or accrue to the holder. These lists may, at the request of the Commission or of a Member State, be 3. Balances arising from the amended by the Council, acting on transactions referred to above shall a proposal from the Commission. become payable forthwith upon the request of the creditor. Article 93 Inventory of International Nonproliferation Organizations and Regimes 28 © Center for Nonproliferation Studies

Member States shall abolish between ensure that negotiations between themselves, one year after the entry into Member States shall begin within three force of this Treaty, all customs duties months of the entry into force of this on imports and exports or charges Treaty. If, on some of these products, no having equivalent effect, and all agreement can be reached within one quantitative restrictions on imports and year of the entry into force of this exports, in respect of: Treaty, the Council shall, acting by a qualified majority on a proposal a. products in List A1 and A2; from the Commission, determine the applicable duties in the Common b. products in List B if subject to Customs Tariff; a Common Customs Tariff and accompanied by a certificate issued c. the Common Customs Tariff by the Commission stating that they are on the products specified in Lists A1 and intended to be used for nuclear A2 shall be applied from the end purposes. of the first year following the entry into force of this Treaty. Non European territories under the jurisdiction of a Member State may, Article 95 however, continue to levy import and export duties or charges having The Council may, acting unanimously equivalent effect where they are of an on a proposal from the Commission, exclusively fiscal nature. The rates of decide on the earlier application of the such duties and charges and the system duties in the Common Customs Tariff on governing them shall not give rise to any products in List B where such a measure discrimination between that State and would tend to contribute to the the other Member States. development of nuclear energy in the Community. Article 94 Article 96 The Member States shall set up a Common Customs Tariff in The Member States shall abolish all accordance with the following restrictions based on nationality provisions: affecting the right of nationals of any Member State to take skilled a. with regard to products employment in the field of nuclear specified in List A1, the Common energy, subject to the limitations Customs Tariff shall be fixed at the resulting from the basic requirements of level of the lowest tariff in force in any public policy, public security or public Member State on 1 January 1957; health.

b. with regard to products After consulting the European specified in List A2, the Commission Parliament, the Council may, acting by shall take all appropriate measures to a qualified majority on a proposal from Inventory of International Nonproliferation Organizations and Regimes 29 © Center for Nonproliferation Studies

the Commission, which shall first Each Member State undertakes to request the opinion of the Economic and authorize, in the currency of the Member Social Committee, issue directives for State in which the creditor or the the application of this Article. beneficiary resides, any payments connected with the movement of goods, Article 97 services or capital, and any transfers of capital and earnings, to the extent that No restrictions based on nationality may the movement of goods, services, capital be applied to natural or legal persons, and persons between Member States has whether public or private, under the been liberalized pursuant to this Treaty. jurisdiction of a Member State, where they desire to participate in the construction of nuclear installations of CHAPTER 10: EXTERNAL a scientific or industrial nature in the RELATIONS Community. Article 101 Article 98 The Community may, within the limits Member States shall take all measures of its powers and jurisdiction, enter into necessary to facilitate the conclusion of obligations by concluding agreements or insurance contracts covering nuclear contracts with a third State, an risks. international organization or a national of a third State. Within two years of the entry into force of this Treaty, the Council, acting by Such agreements or contracts shall be a qualified majority on a proposal from negotiated by the Commission in the Commission, which shall first accordance with the directives of the request the opinion of the Economic and Council: they shall be concluded by the Social Committee, shall, after consulting Commission with the approval of the the European Parliament, issue Council, which shall act by a qualified directives for the application of this majority. Article. Agreements or contracts whose Article 99 implementation does not require action by the Council and can be effected The Commission may make any within the limits of the relevant budget recommendations for facilitating shall, however, be negotiated and movements of capital intended to concluded solely by the Commission; finance the industrial activities listed in the Commission shall keep the Council Annex II to this Treaty. informed.

Article 100 Article 102

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Agreements or contracts concluded with No person or undertaking concluding or a third State, an international renewing an agreement or contract with organization or a national of a third State a third State, an international to which, in addition to the Community, organization or a national of a third State one or more Member States are parties, after the entry into force of this Treaty shall not enter into force until the may invoke that agreement or contract in Commission has been notified by all the order to evade the obligations imposed Member States concerned that those by this Treaty. agreements or contracts have become applicable in accordance with the Each Member State shall take such provisions of their respective national measures as it considers necessary in laws. order to communicate to the Commission, at the request of the latter, Article 103 all information relating to agreements or contracts concluded after the entry into Member States shall communicate to the force of this Treaty, within the purview Commission draft agreements or thereof, by a person or undertaking with contracts with a third State, an a third State, an international international organization or a national organization or a national of a third of a third State to the extent that such State. The Commission may require such agreements or contracts concern matters communication only for the purpose of within the purview of this Treaty. verifying that such agreements or contracts do not contain clauses If a draft agreement or contract contains impeding the implementation of this clauses which impede the application of Treaty. this Treaty, the Commission shall, within one month of receipt of such On application by the Commission, the communication, make its comments Court of Justice shall give a ruling on the known to the State concerned. compatibility of such agreements or contracts with the provisions of this The State shall not conclude the Treaty. proposed agreement or contract until it has satisfied the objections of the Article 105 Commission or complied with a ruling by the Court of Justice, adjudicating The provisions of this Treaty shall not be urgently upon an application from the invoked so as to prevent the State, on the compatibility of the implementation of agreements or proposed clauses with the provisions of contracts concluded before its entry into this Treaty. An application may be made force by a Member State, a person or an to the Court of Justice at any time after undertaking with a third State, an the State has received the comments of international organization or a national the Commission. of a third State where such agreements or contracts have been communicated to Article 104 Inventory of International Nonproliferation Organizations and Regimes 31 © Center for Nonproliferation Studies

the Commission not later than 30 days after the entry into force of this Treaty. CHAPTER 1: THE INSTITUTIONS Agreements or contracts concluded OF THE COMMUNITY between the signature and the entry into force of this Treaty by a person or an Section 1: The European Parliament undertaking with a third State, an international organization or a national Article 107 of a third State shall not, however, be invoked as grounds for failure to The European Parliament, which shall implement this Treaty if, in the opinion consist of representatives of the peoples of the Court of Justice, ruling on an of the States brought together in the application from the Commission, one of Community, shall exercise the advisory the decisive reasons on the part of either and supervisory powers which are of the parties in concluding the conferred upon it by this Treaty. agreement or contract was an intention to evade the provisions of this Treaty. Article 107a(*^3)

Article 106 The European Parliament may, acting by a majority of its Members, request the Member States which, before the entry Commission to submit any appropriate into force of this Treaty, have concluded proposal on matters on which it agreements with third States providing considers that a Community act is for cooperation in the field of nuclear required for the purpose of energy shall be required to undertake implementing this Treaty. jointly with the Commission the necessary negotiations with these third Article 107b(*^3) States in order to ensure that the rights and obligations arising out of such In the course of its duties, the European agreements shall as far as possible be Parliament may, at the request of assumed by the Community. a quarter of its Members, set up a temporary Committee of Inquiry to Any new agreement ensuing from such investigate, without prejudice to the negotiations shall require the consent of powers conferred by this Treaty on other the Member State or States signatory to institutions or bodies, alleged the agreements referred to above and the contraventions or maladministration in approval of the Council, which shall act the implementation of Community law, by a qualified majority. except where the alleged facts are being examined before a court and while the TITLE III case is still subject to legal proceedings.

PROVISIONS GOVERNING The temporary Committee of Inquiry THE INSTITUTIONS shall cease to exist on the submission of its report. Inventory of International Nonproliferation Organizations and Regimes 32 © Center for Nonproliferation Studies

maladministration, he shall refer the The detailed provisions governing the matter to the institution concerned, exercise of the right of inquiry shall be which shall have a period of three determined by common accord of the months in which to inform of its views. European Parliament, the Council and The Ombudsman shall then forward the Commission. a report to the European Parliament and the institution concerned. The person Article 107c(*^3) lodging the complaint shall be informed of the outcome of such inquiries. Any citizen of the Union, and any natural or legal person residing or having The Ombudsman shall submit an annual its registered office in a Member State, report to the European Parliament on the shall have the right to address, outcome of his inquiries. individually or in association with other citizens or persons, a petition to the 2. The Ombudsman shall be appointed European Parliament on a matter which after each election of the European comes within the Community's fields of Parliament for the duration of its term of activity and which affects him, her or it office. The Ombudsman shall be eligible directly. for reappointment.

Article 107d(*^3) The Ombudsman may be dismissed by the Court of Justice at the request of the 1. The European Parliament shall European Parliament if he no longer appoint an Ombudsman empowered to fulfils the conditions required for the receive complaints from any citizen of performance of his duties or if he is the Union or any natural or legal person guilty of serious misconduct. residing or having its registered office in a Member State concerning instances of 3. The Ombudsman shall be completely maladministration in the activities of the independent in the performance of his Community institutions or bodies, with duties. In the performance of those the exception of the Court of Justice and duties he shall neither seek nor take the Court of First Instance acting in their instructions from any body. The judicial role. Ombudsman may not, during his term of office, engage in any other occupation, In accordance with his duties, the whether gainful or not. Ombudsman shall conduct inquiries for which he finds grounds, either on his 4. The European Parliament shall, after own initiative or on the basis of seeking an opinion from the complaints submitted to him direct or Commission and with the approval of through a Member of the European the Council acting by a qualified Parliament, except where the alleged majority, lay down the regulations and facts are or have been the subject of general conditions governing the legal proceedings. Where the performance of the Ombudsman's duties. Ombudsman establishes an instance of Inventory of International Nonproliferation Organizations and Regimes 33 © Center for Nonproliferation Studies

Article 108

(Paragraphs 1 and 2 lapsed on 17 July 1979 in accordance with Article 14 of the Act 3. The European Parliament shall draw [See Article 1 of that Act which reads as up proposals for elections by direct follows: universal suffrage in accordance with a uniform procedure in all Member 1. The representatives in the European States.(*^4) The Council shall, acting Parliament of the peoples of the States unanimously after obtaining the assent brought together in the Community shall of the European Parliament, which shall be elected by direct universal suffrage.] act by a majority of its component Members, lay down the appropriate [See Article 2 of that Act which reads as provisions, which it shall recommend to follows: Member States for adoption in accordance with their respective 2. The number of representatives constitutional requirements.(*^5) elected in each Member State is as follows: Article 109

Belgium 25 The European Parliament shall hold an annual session. It shall meet, without Denmark 16 requiring to be convened, on the second Germany 99 Tuesday in March.(*^6)(*^7)The Greece 25 European Parliament may meet in extraordinary session at the request of Spain 64 a majority of its Members or at the France 87 request of the Council or of the Ireland 15 Commission. Italy 87 Article 110 Luxembourg 6 Netherlands 31 The European Parliament shall elect its President and its officers from among its Austria 21 Members. Portugal 25 Finland 16 Members of the Commission may attend all meetings and shall, at their request, Sweden 22 be heard on behalf of the Commission. United Kingdom 87](*) The Commission shall reply orally or in (*) Number of representatives as laid writing to questions put to it by the down by Article 11 AA European Parliament or by its Members. Inventory of International Nonproliferation Organizations and Regimes 34 © Center for Nonproliferation Studies

representing a majority of the Members The Council shall be heard by the of the European Parliament, the European Parliament in accordance with Members of the Commission shall resign the conditions laid down by the Council as a body. They shall continue to deal in its Rules of Procedure. with current business until they are replaced in accordance with Article 127. Article 111 In this case, the term of office of the Members of the Commission appointed Save as otherwise provided in this to replace them shall expire on the date Treaty, the European Parliament shall on which the term of office of the act by an absolute majority of the votes Members of the Commission obliged to cast. resign as a body would have expired.

The Rules of Procedure shall determine Section 2: The Council the quorum. Article 115 Article 112 The Council shall carry out its duties and The European Parliament shall adopt its exercise its powers of decision in Rules of Procedure, acting by a majority accordance with the provisions of this of its Members. Treaty.

The proceedings of the European It shall take all measures within its Parliament shall be published in the powers to coordinate the actions of the manner laid down in its Rules of Member States and of the Community. Procedure. Article 116(*^9) Article 113 The Council shall consist of The European Parliament shall discuss a representative of each Member State at in open session the annual general report ministerial level, authorized to commit submitted to it by the Commission. the government of that Member State.

Article 114(*^8) The office of President shall be held in turn by each Member State in the If a motion of censure on the activities of Council for a term of six months in the the Commission is tabled before it, the order decided by the Council acting European Parliament shall not vote unanimously.(*^10) thereon until at least three days after the motion has been tabled and only by open Article 117(*^11) vote. The Council shall meet when convened If the motion of censure is carried by by its President on his own initiative or a two thirds majority of the votes cast, Inventory of International Nonproliferation Organizations and Regimes 35 © Center for Nonproliferation Studies

at the request of one of its Members or 3. Abstentions by Members present in of the Commission. person or represented shall not prevent the adoption by the Council of acts Article 118 which require unanimity.

1. Save as otherwise provided in this Article 119 Treaty, the Council shall act by a majority of its Members. Where, in pursuance of this Treaty, the Council acts on a proposal from the 2. Where the Council is required to act Commission, unanimity shall be by a qualified majority, the votes of its required for an act constituting an Members shall be weighted as follows: amendment to that proposal.

Belgium 5 As long as the Council has not acted, the Commission may alter its original Denmark 3 proposal, in particular where the Germany 10 European Parliament has been consulted Greece 5 on that proposal. Spain 8 Article 120 France 10 Ireland 3 Where a vote is taken, any Member of the Council may also act on behalf of not Italy 10 more than one other Member. Luxembourg 2 Netherlands 5 Article 121(*^13) Austria 4 1. A committee consisting of the Portugal 5 Permanent Representatives of the Finland 3 Member States shall be responsible for Sweden 4 preparing the work of the Council and for carrying out the tasks assigned to it United Kingdom 10 by the Council.

For their adoption, acts of the Council 2. The Council shall be assisted by shall require at least: a General Secretariat, under the direction of a Secretary General. The Secretary • 62 votes in favour where this Treaty General shall be appointed by the requires them to be adopted on Council acting unanimously. a proposal from the Commission, The Council shall decide on the • 62 votes in favour, cast by at least 10 organization of the General Members, in other cases.(*^12) Secretariat.3. The Council shall adopt its Rules of Procedure. Inventory of International Nonproliferation Organizations and Regimes 36 © Center for Nonproliferation Studies

Article 122 • exercise the powers conferred on it by the Council for the implementation of The Council may request the the rules laid down by the latter. Commission to undertake any studies which the Council considers desirable Article 125(*^15) for the attainment of the common objectives and to submit to it any The Commission shall publish annually, appropriate proposals. not later than one month before the opening of the session of the European Article 123(*^14) Parliament, a general report on the activities of the Community. The Council shall, acting by a qualified majority, determine the salaries, Article 126(*^15) allowances and pensions of the President and Members of the Commission, and of 1. The Commission shall consist of 20 the President, Judges, Advocates Members, who shall be chosen on the General and Registrar of the Court of grounds of their general competence and Justice. It shall also, again by a qualified whose independence is beyond majority, determine any payment to be doubt.(*^16) made instead of remuneration. The number of Members of the Section 3: The Commission Commission may be altered by the Council, acting unanimously. Article 124 Only nationals of the Member States In order to ensure the development of may be Members of the Commission. nuclear energy within the Community, the Commission shall: The Commission must include at least one national of each of the Member • ensure that the provisions of this Treaty States, but may not include more than and the measures taken by the two Members having the nationality of institutions pursuant thereto are applied; the same State.

• formulate recommendations or deliver 2. The Members of the Commission opinions in the fields covered by this shall, in the general interest of the Treaty, if the Treaty expressly so Community, be completely independent provides or if the Commission considers in the performance of their duties. it necessary; In the performance of these duties, they • have its own power of decision and shall neither seek nor take instructions participate in the shaping of measures from any government or from any other taken by the Council and by the body. They shall refrain from any action European Parliament in the manner incompatible with their duties. Each provided for in this Treaty; Member State undertakes to respect this Inventory of International Nonproliferation Organizations and Regimes 37 © Center for Nonproliferation Studies

principle and not to seek to influence the whom they intend to appoint as Members of the Commission in the Members of the Commission. performance of their tasks. The President and the other Members of The Members of the Commission may the Commission thus nominated shall be not, during their term of office, engage subject as a body to a vote of approval in any other occupation, whether gainful by the European Parliament. After or not. When entering upon their duties approval by the European Parliament, they shall give a solemn undertaking the President and the other Members of that, both during and after their term of the Commission shall be appointed by office, they will respect the obligations common accord of the governments of arising there from and in particular their the Member States. duty to behave with integrity and discretion as regards the acceptance, 3. Paragraphs 1 and 2 shall be applied after they have ceased to hold office, of for the first time to the President and the certain appointments or benefits. In the other Members of the Commission event of any breach of these obligations, whose term of office begins on the Court of Justice may, on application 7 January 1995. The President and the by the Council or the Commission, rule other Members of the Commission that the Member concerned be, whose term of office begins on according to the circumstances, either 7 January 1993 shall be appointed by compulsorily retired in accordance with common accord of the governments of Article 129 or deprived of his right to the Member States. Their term of office a pension or other benefits in its stead. shall expire on 6 January 1995.

Article 127(*^17) Article 128(*^17)

1. The Members of the Commission Apart from normal replacement, or shall be appointed, in accordance with death, the duties of a Member of the the procedure referred to in paragraph 2, Commission shall end when he resigns for a period of five years, subject, if need or is compulsorily retired. be, to Article 114.Their term of office shall be renewable. The vacancy thus caused shall be filled for the remainder of the Member's term 2. The governments of the Member of office by a new Member appointed by States shall nominate by common common accord of the governments of accord, after consulting the European the Member States. The Council may, Parliament, the person they intend to acting unanimously, decide that such appoint as President of the Commission. a vacancy need not be filled.

The governments of the Member States In the event of resignation, compulsory shall, in consultation with the nominee retirement or death, the President shall for President, nominate the other persons be replaced for the remainder of his term of office. The procedure laid down in Inventory of International Nonproliferation Organizations and Regimes 38 © Center for Nonproliferation Studies

Article 127(2) shall be applicable for the number of Members laid down in its replacement of the President. Rules of Procedure is present.

Save in the case of compulsory Article 133 retirement under Article 129, Members of the Commission shall remain in office (Repealed) until they have been replaced. Article 134 Article 129(*^18) 1. A Scientific and Technical If any Member of the Commission no Committee is hereby set up; it shall be longer fulfils the conditions required for attached to the Commission and shall the performance of his duties or if he has have advisory status. been guilty of serious misconduct, the Court of Justice may, on application by The Committee must be consulted where the Council or the Commission, this Treaty so provides. The Committee compulsorily retire him. may be consulted in all cases in which the Commission considers this Article 130(*^18) appropriate.

The Commission may appoint a Vice 2. The Committee shall consist of 38 President or two Vice Presidents from Members, appointed by the Council after among its Members. consultation with the Commission.(*^19)The Members of the Article 131(*^18) Committee shall be appointed in their personal capacity for five years. Their The Council and the Commission shall appointment shall be renewable. They consult each other and shall settle by shall not be bound by any mandatory common accord their methods of instructions. cooperation. The Scientific and Technical Committee The Commission shall adopt its Rules of shall each year elect its chairman and Procedure so as to ensure that both it and officers from among its Members. its departments operate in accordance with the provisions of this Treaty. It Article 135 shall ensure that these rules are published. The Commission may undertake any consultations and establish any study Article 132(*^18) groups necessary to the performance of its tasks. The Commission shall act by a majority of the number of Members provided for Section 4: The Court of Justice in Article 126.A meeting of the Commission shall be valid only if the Article 136 Inventory of International Nonproliferation Organizations and Regimes 39 © Center for Nonproliferation Studies

The Court of Justice shall ensure that in General and make the necessary the interpretation and application of this adjustments to the third paragraph of Treaty the law is observed. Article 139.

Article 137(*^20) Article 139

The Court of Justice shall consist of 15 The Judges and Advocates General shall Judges.(*^21)The Court of Justice shall be chosen from persons whose sit in plenary session. It may, however, independence is beyond doubt and who form chambers, each consisting of three, possess the qualifications required for five or seven Judges, either to undertake appointment to the highest judicial certain preparatory inquiries or to offices in their respective countries or adjudicate on particular categories of who are jurisconsults of recognized cases in accordance with the rules laid competence; they shall be appointed by down for these purposes.(*^22). The common accord of the governments of Court of Justice shall sit in plenary the Member States for a term of six session when a Member State or years. a Community institution that is a party to the proceedings so requests. Every three years there shall be a partial replacement of the Judges. Eight and Should the Court of Justice so request, seven Judges shall be replaced the Council may, acting unanimously, alternately.(*^24). Every three years increase the number of Judges and make there shall be a partial replacement of the necessary adjustments to the second the Advocates General. Four Advocates and third paragraphs of this Article and General shall be replaced on each to the second paragraph of Article 139. occasion.(*^25)Retiring Judges and Advocates General shall be eligible for Article 138 reappointment.

The Court of Justice shall be assisted by The Judges shall elect the President of eight Advocates General. However, the Court of Justice from among their a ninth Advocate General shall be number for a term of three years. He appointed as from the date of accession may be re elected. until 6 October 2000.(*^23). It shall be the duty of the Advocate General, acting Article 140 with complete impartiality and independence, to make, in open court, The Court of Justice shall appoint its reasoned submissions on cases brought Registrar and lay down the rules before the Court of Justice, in order to governing his service. assist the Court in the performance of the task assigned to it in Article 136. Article 140a(*^26) Should the Court of Justice so request, the Council may, acting unanimously, 1. A Court of First Instance shall be increase the number of Advocates attached to the Court of Justice with Inventory of International Nonproliferation Organizations and Regimes 40 © Center for Nonproliferation Studies

jurisdiction to hear and determine at first agreement with the Court of Justice. instance, subject to a right of appeal to Those rules shall require the unanimous the Court of Justice on points of law approval of the Council. only and in accordance with the conditions laid down by the Statute, Article 141 certain classes of action or proceeding defined in accordance with the If the Commission considers that conditions laid down in paragraph 2. The a Member State has failed to fulfil an Court of First Instance shall not be obligation under this Treaty, it shall competent to hear and determine deliver a reasoned opinion on the matter questions referred for a preliminary after giving the State concerned the ruling under Article 150. opportunity to submit its observations.

2. At the request of the Court of Justice If the State concerned does not comply and after consulting the European with the opinion within the period laid Parliament and the Commission, the down by the Commission, the latter may Council, acting unanimously, shall bring the matter before the Court of determine the classes of action or Justice. proceeding referred to in paragraph 1 and the composition of the Court of Article 142 First Instance and shall adopt the necessary adjustments and additional A Member State which considers that provisions to the Statute of the Court of another Member State has failed to fulfil Justice. Unless the Council decides an obligation under this Treaty may otherwise, the provisions of this Treaty bring the matter before the Court of relating to the Court of Justice, in Justice. particular the provisions of the Protocol on the Statute of the Court of Justice, Before a Member State brings an action shall apply to the Court of First Instance. against another Member State for an alleged infringement of an obligation 3. The Members of the Court of First under this Treaty, it shall bring the Instance shall be chosen from persons matter before the Commission. whose independence is beyond doubt and who possess the ability required for The Commission shall deliver appointment to judicial office; they shall a reasoned opinion after each of the be appointed by common accord of the States concerned has been given the governments of the Member States for opportunity to submit its own case and a term of six years. The membership its observations on the other party's case shall be partially renewed every three both orally and in writing. years. Retiring Members shall be eligible for re appointment. If the Commission has not delivered an opinion within three months of the date 4. The Court of First Instance shall on which the matter was brought before establish its Rules of Procedure in it, the absence of such opinion shall not Inventory of International Nonproliferation Organizations and Regimes 41 © Center for Nonproliferation Studies

prevent the matter from being brought The Court of Justice shall have unlimited before the Court of Justice. jurisdiction in:

Article 143(*^27) a. proceedings instituted under Article 12 to have the appropriate terms fixed 1. If the Court of Justice finds that for the granting by the Commission of a Member State has failed to fulfil an licences or sub licences; obligation under this Treaty, the State shall be required to take the necessary b. proceedings instituted by persons or measures to comply with the judgment undertakings against sanctions imposed of the Court of Justice. on them by the Commission under Article 83. 2. If the Commission considers that the Member State concerned has not taken Article 145 such measures it shall, after giving that State the opportunity to submit its If the Commission considers that observations, issue a reasoned opinion a person or undertaking has committed specifying the points on which the an infringement of this Treaty to which Member State concerned has not the provisions of Article 83 do not apply, complied with the judgment of the Court it shall call upon the Member State of Justice. having jurisdiction over that person or undertaking to cause sanctions to be If the Member State concerned fails to imposed in respect of the infringement in take the necessary measures to comply accordance with its national law. with the Court's judgment within the time limit laid down by the Commission, If the State concerned does not comply the latter may bring the case before the with such a request within the period Court of Justice. In so doing it shall laid down by the Commission, the latter specify the amount of the lump sum or may bring an action before the Court of penalty payment to be paid by the Justice to have the infringement of Member State concerned which it which the person or undertaking is considers appropriate in the accused established. circumstances. Article 146(*^28) If the Court of Justice finds that the Member State concerned has not The Court of Justice shall review the complied with its judgment it may legality of acts of the Council and of the impose a lump sum or penalty payment Commission, other than on it. recommendations and opinions, and of acts of the European Parliament intended This procedure shall be without to produce legal effects vis à vis third prejudice to Article 142. parties.

Article 144 Inventory of International Nonproliferation Organizations and Regimes 42 © Center for Nonproliferation Studies

It shall for this purpose have jurisdiction Article 148 in actions brought by a Member State, the Council or the Commission on Should the Council or the Commission, grounds of lack of competence, in infringement of this Treaty, fail to act, infringement of an essential procedural the Member States and the other requirement, infringement of this Treaty institutions of the Community may bring or of any rule of law relating to its an action before the Court of Justice to application, or misuse of powers. have the infringement established. The action shall be admissible only if the The Court shall have jurisdiction under institution concerned has first been the same conditions in actions brought called upon to act. If, within two months by the European Parliament for the of being so called upon, the institution purpose of protecting its prerogatives. concerned has not defined its position, the action may be brought within Any natural or legal person may, under a further period of two months. the same conditions, institute proceedings against a decision addressed Any natural or legal person may, under to that person or against a decision the conditions laid down in the which, although in the form of preceding paragraphs, complain to the a regulation or a decision addressed to Court of Justice that an institution of the another person, is of direct and Community has failed to address to that individual concern to the former. person any act other than a recommendation or an opinion. The proceedings provided for in this Article shall be instituted within two Article 149 months of the publication of the measure, or of its notification to the The institution whose act has been plaintiff, or, in the absence thereof, of declared void or whose failure to act has the day on which it came to the been declared contrary to this Treaty knowledge of the latter, as the case may shall be required to take the necessary be. measures to comply with the judgment of the Court of Justice. Article 147 This obligation shall not affect any If the action is well founded, the Court obligation which may result from the of Justice shall declare the act concerned application of the second paragraph of to be void. Article 188.

In the case of a regulation, however, the Article 150 Court of Justice shall, if it considers this necessary, state which of the effects of The Court of Justice shall have the regulation which it has declared void jurisdiction to give preliminary rulings shall be considered as definitive. concerning:

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a. the interpretation of this Article 153 Treaty; The Court of Justice shall have b. the validity and interpretation jurisdiction to give judgment pursuant to of acts of the institutions of the any arbitration clause contained in Community; a contract concluded by or on behalf of the Community, whether that contract be c. the interpretation of the governed by public or private law. statutes of bodies established by an act of the Council, save where those Article 154 statutes provide otherwise. The Court of Justice shall have Where such a question is raised before jurisdiction in any dispute between any court or tribunal of a Member State, Member States which relates to the that court or tribunal may, if it considers subject matter of this Treaty if the that a decision on the question is dispute is submitted to it under a special necessary to enable it to give judgment, agreement between the parties. request the Court of Justice to give a ruling thereon. Article 155

Where any such question is raised in Save where jurisdiction is conferred on a case pending before a court or tribunal the Court of Justice by this Treaty, of a Member State, against whose disputes to which the Community is decisions there is no judicial remedy a party shall not on that ground be under national law, that court or tribunal excluded from the jurisdiction of the shall bring the matter before the Court of courts or tribunals of the Member States. Justice. Article 156 Article 151 Notwithstanding the expiry of the period The Court of Justice shall have laid down in the third paragraph of jurisdiction in disputes relating to the Article 146, any party may, in compensation for damage provided for proceedings in which a regulation of the in the second paragraph of Article 188. Council or of the Commission is in issue, plead the grounds specified in the Article 152 first paragraph of Article 146, in order to invoke before the Court of Justice the The Court of Justice shall have inapplicability of that regulation. jurisdiction in any dispute between the Community and its servants within the Article 157 limits and under the conditions laid down in the Staff Regulations or the Save as otherwise provided in this Conditions of Employment. Treaty, actions brought before the Court of Justice shall not have suspensory Inventory of International Nonproliferation Organizations and Regimes 44 © Center for Nonproliferation Studies

effect. The Court of Justice may, 1. The Court of Auditors shall consist however, if it considers that of 15 Members.(*^31) circumstances so require, order that application of the contested act be 2. The Members of the Court of suspended. Auditors shall be chosen from among persons who belong or have belonged in Article 158 their respective countries to external audit bodies or who are especially The Court of Justice may in any cases qualified for this office. Their before it prescribe any necessary interim independence must be beyond doubt. measures. 3. The Members of the Court of Article 159 Auditors shall be appointed for a term of six years by the Council, acting The judgments of the Court of Justice unanimously after consulting the shall be enforceable under the conditions European Parliament. laid down in Article 164. However, when the first appointments Article 160 are made, four Members of the Court of Auditors, chosen by lot, shall be The Statute of the Court of Justice is laid appointed for a term of office of four down in a separate Protocol. years only.

The Council may, acting unanimously at The Members of the Court of Auditors the request of the Court of Justice and shall be eligible for reappointment. after consulting the Commission and the European Parliament, amend the They shall elect the President of the provisions of Title III of the Court of Auditors from among their Statute.(*^29)The Court of Justice shall number for a term of three years. The adopt its Rules of Procedure. These shall President may be re elected. require the unanimous approval of the Council. 4. The Members of the Court of Auditors shall, in the general interest of Section 5(*^30): The Court of the Community, be completely Auditors independent in the performance of their duties. Article 160a In the performance of these duties, they The audit shall be carried out by the shall neither seek nor take instructions Court of Auditors. from any government or from any other body. They shall refrain from any action Article 160b incompatible with their duties.

Inventory of International Nonproliferation Organizations and Regimes 45 © Center for Nonproliferation Studies

5. The Members of the Court of majority, determine any payment to be Auditors may not, during their term of made instead of remuneration. office, engage in any other occupation, whether gainful or not. When entering 9. The provisions of the Protocol on the upon their duties they shall give privileges and immunities of the a solemn undertaking that, both during European Communities applicable to the and after their term of office, they will Judges of the Court of Justice shall also respect the obligations arising there from apply to the Members of the Court of and in particular their duty to behave Auditors. with integrity and discretion as regards the acceptance, after they have ceased to Article 160c hold office, of certain appointments or benefits. 1. The Court of Auditors shall examine the accounts of all revenue and 6. Apart from normal replacement, or expenditure of the Community. It shall death, the duties of a Member of the also examine the accounts of all revenue Court of Auditors shall end when he and expenditure of all bodies set up by resigns, or is compulsorily retired by the Community in so far as the relevant a ruling of the Court of Justice pursuant constituent instrument does not preclude to paragraph 7. The vacancy thus caused such examination. shall be filled for the remainder of the Member's term of office. The Court of Auditors shall provide the European Parliament and the Council Save in the case of compulsory with a statement of assurance as to the retirement, Members of the Court of reliability of the accounts and the Auditors shall remain in office until they legality and regularity of the underlying have been replaced. transactions.

7. A Member of the Court of Auditors 2. The Court of Auditors shall examine may be deprived of his office or of his whether all revenue has been received right to a pension or other benefits in its and all expenditure incurred in a lawful stead only if the Court of Justice, at the and regular manner and whether the request of the Court of Auditors, finds financial management has been sound. that he no longer fulfils the requisite conditions or meets the obligations The audit of revenue shall be carried out arising from his office. on the basis of the amounts established as due and the amounts actually paid to 8. The Council, acting by a qualified the Community. majority, shall determine the conditions of employment of the President and the The audit of expenditure shall be carried Members of the Court of Auditors and in out on the basis both of commitments particular their salaries, allowances and undertaken and payments made. pensions. It shall also, by the same

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These audits may be carried out before It shall adopt its annual reports, special the closure of accounts for the financial reports or opinions by a majority of its year in question. Members.

3. The audit shall be based on records It shall assist the European Parliament and, if necessary, performed on the spot and the Council in exercising their in the other institutions of the powers of control over the Community and in the Member States. implementation of the budget. In the Member States the audit shall be carried out in liaison with the national CHAPTER 2: PROVISIONS audit bodies or, if these do not have the COMMON TO SEVERAL necessary powers, with the competent INSTITUTIONS national departments. These bodies or departments shall inform the Court of Article 161 Auditors whether they intend to take part in the audit. In order to carry out their task the Council and the Commission shall, in The other institutions of the Community accordance with the provisions of this and the national audit bodies or, if these Treaty, make regulations, issue do not have the necessary powers, the directives, take decisions, make competent national department, shall recommendations or deliver opinions. forward to the Court of Auditors, at its request, any document or information A regulation shall have general necessary to carry out its task. application. It shall be binding in its entirety and directly applicable in all 4. The Court of Auditors shall draw up Member States. an annual report after the close of each financial year. It shall be forwarded to A directive shall be binding, as to the the other institutions of the Community result to be achieved, upon each Member and shall be published, together with the State to which it is addressed, but shall replies of these institutions to the leave to the national authorities the observations of the Court of Auditors, in choice of form and methods. the Official Journal of the European Communities. A decision shall be binding in its entirety upon those to whom it is addressed. The Court of Auditors may also, at any time, submit observations, particularly in Recommendations and opinions shall the form of special reports, on specific have no binding force. questions and deliver opinions at the request of one of the other institutions of Article 162 the Community. Regulations, directives and decisions of the Council and of the Commission shall state the reasons on which they are based Inventory of International Nonproliferation Organizations and Regimes 47 © Center for Nonproliferation Studies

and shall refer to any proposals or complaints that enforcement is being opinions which were required to be carried out in an irregular manner. obtained pursuant to this Treaty. CHAPTER 3: THE ECONOMIC Article 163 AND SOCIAL COMMITTEE

Regulations shall be published in the Article 165 Official Journal of the European Communities. They shall enter into force An Economic and Social Committee is on the date specified in them or, in the hereby established. It shall have advisory absence thereof, on the twentieth day status. following their publication. The Committee shall consist of Directives and decisions shall be notified representatives of the various categories to those to whom they are addressed and of economic and social activity. shall take effect upon such notification. Article 166(*^32) Article 164 The number of members of the Enforcement shall be governed by the Economic and Social Committee shall rules of civil procedure in force in the be as follows: State in the territory of which it is carried out. The order for its Belgium 12 enforcement shall be appended to the decision, without other formality than Denmark 9 verification of the authenticity of the Germany 24 decision, by the national authority which Greece 12 the government of each Member State Spain 21 shall designate for this purpose and shall make known to the Commission, to the France 24 Court of Justice and to the Arbitration Ireland 9 Committee set up by Article 18. Italy 24

When these formalities have been Luxembourg 6 completed on application by the party Netherlands 12 concerned, the latter may proceed to Austria 12 enforcement in accordance with the national law, by bringing the matter Portugal 12 directly before the competent authority. Finland 9

Sweden 12 Enforcement may be suspended only by a decision of the Court of Justice. United Kingdom 24(*) However, the courts of the country First paragraph as amended by concerned shall have jurisdiction over Article 23 AA A/FIN/SWE in the (*) Inventory of International Nonproliferation Organizationsversion resulting and Regimesfrom Article 14 48 AD AA A/FIN/SWE. © Center for Nonproliferation Studies

Article 23 AA A/FIN/SWE in the The Committee shall elect its chairman version resulting from Article 14 and officers from among its members for AD AA A/FIN/SWE. a term of two years.

It shall adopt its Rules of Procedure. The members of the Committee shall be appointed by the Council, acting The Committee shall be convened by its unanimously, for four years. Their chairman at the request of the Council or appointments shall be renewable. of the Commission. It may also meet on its own initiative. The members of the Committee may not be bound by any mandatory instructions. Article 169 They shall be completely independent in the performance of their duties, in the The Committee may be divided into general interest of the Community. specialized sections.

The Council, acting by a qualified These specialized sections shall operate majority, shall determine the allowances within the general terms of reference of of members of the Committee. the Committee. They may not be consulted independently of the Article 167 Committee.

1. For the appointment of the members Subcommittees may also be established of the Committee, each Member State within the Committee to prepare, on shall provide the Council with a list specific questions or in specific fields, containing twice as many candidates as draft opinions to be submitted to the there are seats allotted to its nationals. Committee for its consideration.

The composition of the Committee shall The Rules of Procedure shall lay down take account of the need to ensure the methods of composition and the adequate representation of the various terms of reference of the specialized categories of economic and social sections and of the subcommittees. activity. Article 170(*^34) 2. The Council shall consult the Commission. It may obtain the opinion The Committee must be consulted by the of European bodies which are Council or by the Commission where representative of the various economic this Treaty so provides. The Committee and social sectors to which the activities may be consulted by these institutions in of the Community are of concern. all cases in which they consider it appropriate. It may issue an opinion on Article 168(*^33) its own initiative in cases in which it considers such action appropriate.

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The Council or the Commission shall, if regard to the statutes of the Agency, in it considers it necessary, set the financial regulations made pursuant to Committee, for the submission of its Article 183.3. The estimates of revenue opinion, a time limit which may not be and expenditure, together with the less than one month from the date on operating accounts and the balance which the chairman receives notification sheets of the Joint Undertakings for each to this effect. Upon expiry of the time financial year, shall be placed before the limit, the absence of an opinion shall not Commission, the Council and the prevent further action. European Parliament in accordance with the statutes of those undertakings. The opinion of the Committee and that of the specialized section, together with Article 172 a record of the proceedings, shall be forwarded to the Council and to the (Paragraphs 1, 2 and 3 repealed) Commission. 4. Loans for the financing of research or investment shall be raised on terms TITLE IV fixed by the Council in the manner provided for in Article 177(5). FINANCIAL PROVISIONS The Community may borrow on the Article 171 capital market of a Member State, either in accordance with the legal provisions 1. Estimates shall be drawn up for each applying to internal issues, or, if there financial year of all revenue and are no such provisions in a Member expenditure of the Community, other State, after the Member State concerned than those of the Agency and the Joint and the Commission have conferred Undertakings, and such revenue and together and have reached agreement expenditure shall be shown either in the upon the proposed loan. operating budget or in the research and investment budget. The competent authorities of the Member State concerned may refuse to The revenue and expenditure shown in give their assent only if there is reason to each budget shall be in balance. fear serious disturbances on the capital market of that State. 2. The revenue and expenditure of the Agency, which shall operate in Article 173(*^35) accordance with commercial principles, shall be budgeted for in a special Without prejudice to other revenue, the account. budget shall be financed wholly from own resources. The manner of estimating, implementing and auditing such revenue and The Council, acting unanimously on expenditure shall be laid down, with due a proposal from the Commission and Inventory of International Nonproliferation Organizations and Regimes 50 © Center for Nonproliferation Studies

after consulting the European b. any participation in the capital Parliament, shall lay down provisions of the Agency and in its investment relating to the system of own resources expenditure; of the Community, which it shall recommend to the Member States for c. expenditure relating to the adoption in accordance with their equipment of training establishments; respective constitutional requirements. d. any participation in Joint Article 173a(*^36) Undertakings or in certain joint operations. With a view to maintaining budgetary discipline, the Commission shall not Article 175 make any proposal for a Community act, or alter its proposals, or adopt any The expenditure shown in the operating implementing measure which is likely to budget shall be authorized for one have appreciable implications for the financial year, unless the regulations budget without providing the assurance made pursuant to Article 183 provide that that proposal or that measure is otherwise. capable of being financed within the limit of the Community's own resources In accordance with conditions to be laid arising under provisions laid down by down pursuant to Article 183, any the Council pursuant to Article 173. appropriations, other than those relating to staff expenditure, that are unexpended Article 174 at the end of the financial year may be carried forward to the next financial year 1. The expenditure shown in the only. operating budget shall include in particular: Appropriations to cover expenditure shall be classified under different a. administrative expenditure; chapters grouping items of expenditure according to their nature or purpose and b. expenditure relating to subdivided, as far as may be necessary, safeguards and to health and safety. in accordance with the regulations made pursuant to Article 183. 2. The expenditure shown in the research and investment budget shall The expenditure of the European include in particular: Parliament, the Council, the Commission and the Court of Justice shall be set out a. expenditure relating to the in separate parts of the budget, without implementation of the Community prejudice to special arrangements for research programme; certain common items of expenditure.

Article 176

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1. Subject to the limits resulting from Within the meaning of this Article, programmes or decisions involving ‘budget’ shall include the operating expenditure which, in pursuance of this budget and the research and investment Treaty, require the unanimous approval budget. of the Council, allocations for research and investment expenditure shall 2. Each institution of the Community include: shall, before 1 July, draw up estimates of its expenditure. The Commission shall a. commitment appropriations, consolidate these estimates in covering a series of items which a preliminary draft budget. It shall attach constitute a separate unit and form thereto an opinion which may contain a coherent whole; different estimates.

b. payment appropriations which The preliminary draft budget shall represent the maximum amount payable include an estimate of revenue and an each year in respect of the estimate of expenditure. commitments entered into under subparagraph (a). 3. The Commission shall place the preliminary draft budget before the 2. The schedule of due dates for Council not later than 1 September of commitments and payments shall be the year preceding that in which the annexed to the corresponding draft budget is to be implemented. budget proposed by the Commission. The Council shall consult the 3. Appropriations for research and Commission and, where appropriate, the investment shall be classified under other institutions concerned whenever it different chapters grouping items of intends to depart from the preliminary expenditure according to their nature or draft budget. purpose and subdivided, as far as may be necessary, in accordance with the The Council shall, acting by a qualified regulations made pursuant to Article majority, establish the draft budget and 183. forward it to the European Parliament.

4. Unused payment authorizations shall 4. The draft budget shall be placed be carried forward to the next financial before the European Parliament not later year by decision of the Commission, than 5 October of the year preceding that unless the Council decides otherwise. in which the budget is to be implemented. Article 177(*^37)(*^38) The European Parliament shall have the 1. The financial year shall run from right to amend the draft budget acting by 1 January to 31 December. a majority of its Members, and to propose to the Council, acting by an absolute majority of the votes cast, Inventory of International Nonproliferation Organizations and Regimes 52 © Center for Nonproliferation Studies

modifications to the draft budget relating it would involve would be expressly to expenditure necessarily resulting from compensated by one this Treaty or from acts adopted in or more proposed modifications accordance therewith. correspondingly reducing expenditure, the Council If, within 45 days of the draft budget may, acting by a qualified majority, being placed before it, the European reject the proposed Parliament has given its approval, the modification. In the absence of budget shall stand as finally adopted. If a decision to reject it, the within this period the European proposed modification Parliament has not amended the draft shall stand as accepted; budget or proposed any modifications thereto, the budget shall be deemed to be • where a modification finally adopted. proposed by the European Parliament has the effect of increasing the If within this period the European total amount of the expenditure of an Parliament has adopted amendments or institution, the proposed modifications, the draft budget Council may, acting by together with the amendments or a qualified majority, accept this proposed modifications shall be proposed forwarded to the Council. modification. In the absence of a decision to accept it, the proposed 5. After discussing the draft budget modification shall stand with the Commission and, where as rejected; appropriate, with the other institutions concerned, the Council shall act under • where, in pursuance of the following conditions: the two preceding subparagraphs, the Council has rejected a. the Council may, acting by a proposed modification, it may, acting a qualified majority, modify any of the by a qualified majority, amendments adopted by the European either retain the amount shown in Parliament; the draft budget or fix another amount.

b. with regard to the proposed The draft shall be modified on the basis modifications: of the proposed modifications accepted by the Council. • where a modification proposed by the European Parliament If, within 15 days of the draft budget does not have the being placed before it, the Council has effect of increasing the total amount of not modified any of the amendments the expenditure of an adopted by the European Parliament and institution, owing in particular to if the modifications proposed by the the fact — that the increase in latter have been accepted, the budget expenditure which shall be deemed to be finally adopted. Inventory of International Nonproliferation Organizations and Regimes 53 © Center for Nonproliferation Studies

The Council shall inform the European 9. A maximum rate of increase in Parliament that it has not modified any relation to the expenditure of the same of the amendments and that the proposed type to be incurred during the current modifications have been accepted. year shall be fixed annually for the total expenditure other than that necessarily If within this period the Council has resulting from this Treaty or from acts modified one or more of the adopted in accordance therewith. amendments adopted by the European Parliament or if the modifications The Commission shall, after consulting proposed by the latter have been rejected the Economic Policy Committee, declare or modified, the modified draft budget what this maximum rate is, as it results shall again be forwarded to the European from: Parliament. The Council shall inform the European Parliament of the results of its • the trend, in terms of volume, of the deliberations. gross national product within the Community; 6. Within 15 days of the draft budget being placed before it, the European • the average variation in the budgets of Parliament, which shall have been the Member States; notified of the action taken on its proposed modifications may, acting by and a majority of its Members and three fifths of the votes cast, amend or reject • the trend of the cost of living during the modifications to its amendments the preceding financial year. made by the Council and shall adopt the budget accordingly. If within this period The maximum rate shall be the European Parliament has not acted, communicated, before 1 May, to all the the budget shall be deemed to be finally institutions of the Community. The latter adopted. shall be required to conform to this during the budgetary procedure, subject 7. When the procedure provided for in to the provisions of the fourth and fifth this Article has been completed, the subparagraphs of this paragraph. President of the European Parliament shall declare that the budget has been If, in respect of expenditure other than finally adopted. that necessarily resulting from this Treaty or from acts adopted in 8. However, the European Parliament, accordance therewith, the actual rate of acting by a majority of its Members and increase in the draft budget established two thirds of the votes cast may, if there by the Council is over half the maximum are important reasons, reject the draft rate, the European Parliament may, budget and ask for a new draft to be exercising its right of amendment, submitted to it. further increase the total amount of that expenditure to a limit not exceeding half the maximum rate. Inventory of International Nonproliferation Organizations and Regimes 54 © Center for Nonproliferation Studies

subparagraph are observed, authorize Where the European Parliament, the expenditure in excess of one twelfth. Council or the Commission considers that the activities of the Communities If the decision relates to expenditure require that the rate determined which does not necessarily result from according to the procedure laid down in this Treaty or from acts adopted in this paragraph should be exceeded, accordance therewith, the Council shall another rate may be fixed by agreement forward it immediately to the European between the Council, acting by Parliament; within 30 days the European a qualified majority, and the European Parliament, acting by a majority of its Parliament, acting by a majority of its Members and three fifths of the votes members and three fifths of the votes cast, may adopt a different decision on cast. the expenditure in excess of the one twelfth referred to in the first 10. Each institution shall exercise the subparagraph. This part of the decision powers conferred upon it by this Article, of the Council shall be suspended until with due regard for the provisions of the the European Parliament has taken its Treaty and for acts adopted in decision. If, within this period, the accordance therewith, in particular those European Parliament has not taken relating to the Communities' own a decision which differs from the resources and to the balance between decision of the Council, the latter shall revenue and expenditure. be deemed to be finally adopted.

Article 178(*^39) The decisions referred to in the second and third subparagraphs shall lay down If, at the beginning of a financial year, the necessary measures relating to the budget has not yet been voted, a sum resources to ensure application of this equivalent to not more than one twelfth Article. of the budget appropriations for the preceding financial year may be spent Article 179(*^40) each month in respect of any chapter or other subdivision of the budget in The Commission shall implement the accordance with the provisions of the budgets, in accordance with the Regulations made pursuant to Article provisions of the regulations made 183; this arrangement shall not, pursuant to Article 183, on its own however, have the effect of placing at responsibility and within the limits of the the disposal of the Commission appropriations. appropriations in excess of one twelfth of those provided for in the draft budget The regulations shall lay down detailed in the course of preparation. rules for each institution concerning its part in effecting its own expenditure. The Council may, acting by a qualified majority, provided that the other Within the budgets, the Commission conditions laid down in the first may, subject to the limits and conditions Inventory of International Nonproliferation Organizations and Regimes 55 © Center for Nonproliferation Studies

laid down in the regulations made 2. Before giving a discharge to the pursuant to Article 183, transfer Commission, or for any other purpose in appropriations from one chapter to connection with the exercise of its another or from one subdivision to powers over the implementation of the another. budget, the European Parliament may ask to hear the Commission give Article 179a(*^41) evidence with regard to the execution of expenditure or the operation of financial The Commission shall submit annually control systems. The Commission shall to the Council and to the European submit any necessary information to the Parliament the accounts of the preceding European Parliament at the latter's financial year relating to the request. implementation of the budget. The Commission shall also forward to them 3. The Commission shall take all a financial statement of the assets and appropriate steps to act on the liabilities of the Community. observations in the decisions giving discharge and on other observations by Article 180 the European Parliament relating to the execution of expenditure, as well as on (Repealed) comments accompanying the recommendations on discharge adopted Article 180a by the Council.

(Repealed) At the request of the European Parliament or the Council, the Article 180b(*^42) Commission shall report on the measures taken in the light of these 1. The European Parliament, acting on observations and comments and in a recommendation from the Council particular on the instructions given to the which shall act by a qualified majority, departments which are responsible for shall give a discharge to the Commission the implementation of the budgets. in respect of the implementation of the These reports shall also be forwarded to budget. To this end, the Council and the the Court of Auditors. European Parliament in turn shall examine the accounts and the financial Article 181 statement referred to in Article 179a, the annual report by the Court of Auditors The budgets and the account provided together with the replies of the for in Article 171(1) and (2) shall be institutions under audit to the drawn up in the unit of account observations of the Court of Auditors, determined in accordance with the and any relevant special reports by the provisions of the financial regulations Court of Auditors. made pursuant to Article 183.

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The financial contributions provided for 3. As regards expenditure which the in Article 172 shall be placed at the Community has to incur in the disposal of the Community by the currencies of third countries, the Member States in their national Commission shall, before the budgets currencies. are finally adopted, submit to the Council a programme indicating The available balances of these anticipated revenue and expenditure in contributions shall be deposited with the the different currencies. Treasuries of Member States or with bodies designated by them. While on This programme shall be approved by deposit, such funds shall retain the value the Council, acting by a qualified corresponding to the parity, at the date of majority. It may be modified in the deposit, in relation to the unit of account course of the financial year in referred to in the first paragraph. accordance with the same procedure.

The balances may be invested on terms 4. Member States shall provide the to be agreed between the Commission Commission with the currency of third and the Member State concerned. countries needed for the expenditure shown in the programme provided for in Article 182 paragraph 3 according to the scales laid down in Article 172. Amounts collected 1. The Commission may, provided it by the Commission in the currency of notifies the competent authorities of the third countries shall be transferred to Member States concerned, transfer into Member States in accordance with the the currency of one of the Member same scales. States its holdings of currency of another Member State, to the extent necessary to 5. The Commission may freely make enable them to be used for purposes use of any amounts in the currency of which come within the scope of this third countries derived from loans it has Treaty. The Commission shall as far as raised in such countries. possible avoid making such transfers if it possesses cash or liquid assets in the 6. The Council may, acting currencies which it needs. unanimously on a proposal from the Commission apply, in whole or in part, 2. The Commission shall deal with to the Agency and to Joint Undertakings each Member State through the authority the exchange arrangements provided for designated by the State concerned. In in the preceding paragraphs, and, where carrying out financial operations the appropriate, adapt these arrangements to Commission shall employ the services of their operational requirements. the bank of issue of the Member State concerned or any other financial Article 183(*^43) institutions approved by that State. The Council, acting unanimously on a proposal from the Commission and Inventory of International Nonproliferation Organizations and Regimes 57 © Center for Nonproliferation Studies

after consulting the European Parliament TITLE V and obtaining the opinion of the Court of Auditors, shall: GENERAL PROVISIONS

a. make Financial Regulations Article 184 specifying in particular the procedure to be adopted for establishing and The Community shall have legal implementing the budget and for personality. presenting and auditing accounts; Article 185 b. determine the methods and procedure whereby the budget revenue In each of the Member States, the provided under the arrangements Community shall enjoy the most relating to the Community's own extensive legal capacity accorded to resources shall be made available legal persons under their laws; it may, in to the Commission, and determine the particular, acquire or dispose of movable measures to be applied, if need be, and immovable property and may be to meet cash requirements; a party to legal proceedings. To this end, the Community shall be represented by c. lay down rules concerning the the Commission. responsibility of financial controllers, authorizing officers and Article 186 accounting officers, and concerning appropriate arrangements for (Article repealed by Article 24(2) of the inspection. Merger Treaty)

Article 183a(*^44) [See Article 24(1) of the Merger Treaty which reads as follows: Member States shall take the same measures to counter fraud affecting the 1. The officials and other servants of financial interests of the Community as the European Coal and Steel they take to counter fraud affecting their Community, the European Economic own financial interests. Community and the European Atomic Energy Community shall, at the date of Without prejudice to other provisions of entry into force of this Treaty, become this Treaty, Member States shall officials and other servants of the coordinate their actions aimed at European Communities and form part of protecting the financial interests of the the single administration of these Community against fraud. To this end Communities. they shall organize, with the help of the Commission, close and regular The Council shall, acting by a qualified cooperation between the competent majority on a proposal from the departments of their administrations. Commission and after consulting the other institutions concerned, lay down Inventory of International Nonproliferation Organizations and Regimes 58 © Center for Nonproliferation Studies

the Staff Regulations of officials of the The rules governing the languages of the European Communities and the institutions of the Community shall, Conditions of Employment of other without prejudice to the provisions servants of these Communities.] contained in the Rules of Procedure of the Court of Justice, be determined by Article 187 the Council, acting unanimously.

The Commission may, within the limits Article 191 and under the conditions laid down by the Council in accordance with the (Article repealed by the second provisions of this Treaty, collect any paragraph of Article 28 of the Merger information and carry out any checks Treaty)[See the first paragraph of required for the performance of the tasks Article 28 of the Merger Treaty which entrusted to it. reads as follows: The European Communities shall enjoy in the Article 188 territories of the Member States such privileges and immunities as are The contractual liability of the necessary for the performance of their Community shall be governed by the law tasks, under the conditions laid down in applicable to the contract in question. the Protocol annexed to this Treaty. The same shall apply to the European In the case of non contractual liability, Investment Bank.] the Community shall, in accordance with the general principles common to the Article 192 laws of the Member States, make good any damage caused by its institutions or Member States shall take all appropriate by its servants in the performance of measures, whether general or particular, their duties. to ensure fulfilment of the obligations arising out of this Treaty or resulting The personal liability of its servants from action taken by the institutions of towards the Community shall be the Community. They shall facilitate the governed by the provisions laid down in achievement of the Community's tasks. the Staff Regulations or in the Conditions of Employment applicable to They shall abstain from any measure them. which could jeopardize the attainment of the objectives of this Treaty. Article 189 Article 193 The seat of the institutions of the Community shall be determined by Member States undertake not to submit common accord of the governments of a dispute concerning the interpretation or the Member States. application of this Treaty to any method of settlement other than those provided Article 190 for therein. Inventory of International Nonproliferation Organizations and Regimes 59 © Center for Nonproliferation Studies

Article 194 The Commission shall ensure that these provisions are communicated to the 1. The members of the institutions of other Member States. the Community, the members of committees, the officials and other Each Member State shall take all servants of the Community and any appropriate measures to facilitate the other persons who by reason of their gradual establishment of as uniform and duties or their public or private relations comprehensive a security system as with the institutions or installations of possible. The Commission may, after the Community or with Joint consulting the Member States Undertakings are called upon to acquire concerned, make recommendations for or obtain cognizance of any facts, this purpose. information, knowledge, documents or objects which are subject to a security 3. The institutions of the Community, system in accordance with provisions their installations and also the Joint laid down by a Member State or by an Undertakings shall be required to apply institution of the Community, shall be the rules of the security system in force required, even after such duties or in the territory in which each of them is relations have ceased, to keep them situated. secret from any unauthorized person and from the general public. 4. Any authorization granted either by an institution of the Community or by Each Member State shall treat any a Member State to a person carrying out infringement of this obligation as an act his activities within the field covered by prejudicial to its rules on secrecy and as this Treaty to have access to facts, one falling, both as to merits and information, documents or objects jurisdiction, within the scope of its laws covered by this Treaty which are subject relating to acts prejudicial to the security to a security system, shall be recognized of the State or to disclosure of by every other institution and every professional secrets. Such Member State other Member State. shall, at the request of any Member State concerned or of the Commission, 5. The provisions of this Article shall prosecute anyone within its jurisdiction not prevent application of special who commits such an infringement. provisions resulting from agreements concluded between a Member State and 2. Each Member State shall a third State or an international communicate to the Commission all organization. provisions regulating within its territories the classification and secrecy Article 195 of information, knowledge, documents or objects covered by this Treaty. The institutions of the Community, the Agency and the Joint Undertakings shall, in applying this Treaty, comply with the conditions of access to ores, source Inventory of International Nonproliferation Organizations and Regimes 60 © Center for Nonproliferation Studies

materials and special fissile materials an amount such that the abundance ratio laid down in national rules and of the sum of these isotopes to isotope regulations made for reasons of public 238 is greater than the ratio of isotope policy or public health. 235 to isotope 238 occurring in nature.

Article 196 3. ‘Source materials’ means uranium containing the mixture of isotopes For the purposes of this Treaty, save as occurring in nature; uranium whose otherwise provided therein: content in uranium 235 is less than the normal; thorium; any of the foregoing in a. ‘person’ means any natural the form of metal, alloy, chemical person who pursues all or any of his compound or concentrate; any other activities in the territories of substance containing one or more of the Member States within the field specified foregoing in such a concentration as in the relevant chapter of this shall be specified by the Council, acting Treaty; by a qualified majority on a proposal from the Commission. b. ‘undertaking’ means any undertaking or institution which pursues 4. ‘Ores’ means any ore containing, in all or any of its activities in the such average concentration as shall be territories of Member States within the specified by the Council acting by field specified in the relevant Chapter a qualified majority on a proposal from of this Treaty, whatever its public or the Commission, substances from which private legal status. the source materials defined above may be obtained by the appropriate chemical Article 197 and physical processing.

For the purposes of this Treaty: Article 198

1. ‘Special fissile materials’ means Save as otherwise provided, this Treaty plutonium 239; uranium 233; uranium shall apply to the European territories of enriched in uranium 235 or uranium 233; Member States and to non European and any substance containing one or territories under their jurisdiction. more of the foregoing isotopes and such other fissile materials as may be It shall also apply to the European specified by the Council, acting by territories for whose external relations a qualified majority on a proposal from a Member State is responsible. the Commission; the expression special fissile materials' does not, however, Notwithstanding the previous include source materials. paragraphs:

2. ‘Uranium enriched in uranium 235 or a. This Treaty shall not apply to uranium 233’ means uranium containing the Faeroe Islands (*^45). This Treaty uranium 235 or uranium 233 or both in Inventory of International Nonproliferation Organizations and Regimes 61 © Center for Nonproliferation Studies

shall not apply to Greenland a certified copy of any such declaration (*^45bis). to the Member States.(*^48)

b. This Treaty shall not apply to Article 199 the Sovereign Base Areas of the United Kingdom of Great Britain and It shall be for the Commission to ensure Northern Ireland in Cyprus. the maintenance of all appropriate relations with the organs of the United c. This Treaty shall not apply to Nations, of its specialized agencies and those overseas countries and territories of the General Agreement on Tariffs and having special relations with the United Trade. Kingdom of Great Britain and Northern Ireland which are not listed in The Commission shall also maintain Annex IV to the Treaty establishing the such relations as are appropriate with all European Community. international organizations.

d. This Treaty shall apply to the Article 200 Channel Islands and the Isle of Man only to the extent necessary to ensure the The Community shall establish all implementation of the arrangements for appropriate forms of cooperation with those islands set out in the Treaty the Council of Europe. concerning the accession of new Member States to the European Article 201(*^49) Economic Community and to the European Atomic Energy The Community shall establish close Community signed on 22 January cooperation with the Organization for 1972.(*^46)(*^47) Economic Cooperation and Development, the details of which shall e. This Treaty shall not apply to be determined by common accord. the Åland Islands. The Government of Finland may, however, give Article 202 notice, by a declaration deposited when ratifying this Treaty with the The provisions of this Treaty shall not Government of the Italian Republic, that preclude the existence or completion of the Treaty shall apply to the Åland regional unions between Belgium and Islands in accordance with the Luxembourg, or between Belgium, provisions set out in Protocol No 2 to the Luxembourg and the Netherlands, to the Act concerning the conditions of extent that the objectives of these accession of the Republic of Austria, the regional unions are not attained by Republic of Finland and the application of this Treaty. Kingdom of Sweden and the adjustments to the Treaties on which the European Article 203 Union is founded. The Government of the Italian Republic shall transmit Inventory of International Nonproliferation Organizations and Regimes 62 © Center for Nonproliferation Studies

If action by the Community should Article 208 prove necessary to attain one of the objectives of the Community and this This Treaty is concluded for an Treaty has not provided the necessary unlimited period. powers, the Council shall, acting unanimously on a proposal from the Commission and after consulting the TITLE VI European Parliament, take the appropriate measures. PROVISIONS RELATING TO THE INITIAL PERIOD Article 204 Section 1: Setting up of the (Repealed) institutions Article 205 Article 209 (Repealed) The Council shall meet within one month of the entry into force of this Article 206(*^50) Treaty. The Community may conclude with one Article 210 or more States or international organizations agreements establishing an The Council shall, within three months association involving reciprocal rights of its first meeting, take all appropriate and obligations, common action and measures to constitute the Economic and special procedures. Social Committee.

These agreements shall be concluded by Article 211 the Council, acting unanimously after consulting the European Parliament. The Assembly(*^51) shall meet within

Where such agreements call for two months of the first meeting of the Council, having been convened by the amendments to this Treaty, these amendments shall first be adopted in President of the Council, in order to elect its officers and draw up its Rules of accordance with the procedure laid down in Article N of the Treaty on European Procedure. Pending the election of its officers, the oldest member shall take the Union. chair. Article 207 Article 212 The Protocols annexed to this Treaty by common accord of the Member States The Court of Justice shall take up its duties as soon as its members have been shall form an integral part thereof. appointed. Its first President shall be

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appointed for three years in the same the first financial year shall run until 31 manner as its members. December of the following year.

The Court of Justice shall adopt its Rules 2. Until the budgets for the first of Procedure within three months of financial year have been established, taking up its duties. Member States shall make the Community interest free advances which No matter may be brought before the shall be deducted from their financial Court of Justice until its Rules of contributions to the implementation of Procedure have been published. The these budgets.3. Until the Staff time within which an action must be Regulations of officials and the brought shall run only from the date of Conditions of Employment of other this publication. servants of the Community provided for in Article 186 have been laid down, each Upon his appointment, the President of institution shall recruit the staff it needs the Court of Justice shall exercise the and to this end conclude contracts of powers conferred upon him by this limited duration. Treaty. Each institution shall examine together Article 213 with the Council any question concerning the number, remuneration The Commission shall take up its duties and distribution of posts. and assume the responsibilities conferred upon it by this Treaty as soon as its Section 2: Provisions for the initial Members have been appointed. application of this Treaty

Upon taking up its duties, the Article 215 Commission shall undertake the studies and arrange the contacts with Member 1. An initial research and training States, undertakings, workers and programme, which is set out in Annex consumers needed for making an overall V to this Treaty and the cost of which survey of the situation of nuclear shall not, unless the Council industries in the Community. The unanimously decides otherwise, exceed Commission shall submit a report on this 215 million EPU units of account, shall subject to the European Parliament be carried out within five years of the within six months. entry into force of this Treaty.2. A breakdown of the Article 214 expenditure necessary for the implementation of this programme is set 1. The first financial year shall run out by way of illustration under main from the date when this Treaty enters subdivisions in Annex V. into force until 31 December following. Should this Treaty, however, enter into force during the second half of the year, Inventory of International Nonproliferation Organizations and Regimes 64 © Center for Nonproliferation Studies

The Council may, acting by a qualified The Commission proposals relating to majority on a proposal from the the statutes of the Agency which are Commission, modify this programme. provided for in Article 54 shall be submitted to the Council within three Article 216 months of the entry into force of this Treaty. The Commission proposals on the way in which the institution of university Section 3: Transitional provisions status referred to in Article 9 is to function shall be submitted to the Article 221 Council within one year of the entry into force of this Treaty. The provisions of Articles 14 to 23 and of Articles 25 to 28 shall apply to Article 217 patents, provisionally protected patent rights and utility models, and also to The security regulations provided for in patent and utility model applications in Article 24 concerning the security existence before the entry into force of gradings applicable to the dissemination this Treaty, under the following of information shall be adopted by the conditions. Council within six months of the entry into force of this Treaty. 1. When assessing the period of time referred to in Article 17(2), allowance Article 218 shall be made, in favour of the owner, for the new situation created by the entry The basic standards shall be determined into force of this Treaty. in accordance with the provisions of Article 31 within one year of the entry 2. With regard to the communication of into force of this Treaty. an invention which is not secret, where either or both of the periods of three and Article 219 eighteen months referred to in Article 16 have expired at the date on which this Provisions laid down by law, regulation Treaty enters into force, a further period or administrative action to ensure the of six months shall run from that date. protection of the health of the general public and of workers in the territories of If either or both of those periods remain Member States against the dangers unexpired at that date, they shall be arising from ionizing radiations shall, in extended by six months from the date of accordance with Article 33, be their normal expiry. communicated to the Commission by these States within three months of the 3. The same provisions shall apply to the entry into force of this Treaty. communication of a secret invention in accordance with Article 16 and Article Article 220 25(1); in such case, however, the date of entry into force of the security Inventory of International Nonproliferation Organizations and Regimes 65 © Center for Nonproliferation Studies

regulations referred to in Article 24 shall a bilateral agreement concluded before be the date taken as the starting point for the entry into force of this Treaty and the new period or for the extension of communicated to the Commission in a current period. accordance with Article 105.

Article 222 The same priority shall be granted during the same period of 10 years in During the period between the date of respect of supplies for any isotope entry into force of this Treaty and the separation plant, whether or not it date fixed by the Commission on which constitutes a Joint Undertaking, which the Agency takes up its duties, comes into operation in the territory of agreements and contracts for the supply a Member State before the expiry of of ores, source materials or special a period of seven years from the date of fissile materials shall be concluded or entry into force of this Treaty. renewed only with the prior approval of the Commission. The Agency shall conclude the appropriate contracts, after the The Commission shall refuse to approve Commission has ascertained that the the conclusion or renewal of any conditions for the exercise of the right of agreements and contracts which it priority have been fulfilled. considers would prejudice the implementation of this Treaty. It may in particular make its approval dependent FINAL PROVISIONS upon the insertion in agreements and contracts of clauses permitting the Article 224 Agency to take part in carrying them out. This Treaty shall be ratified by the High Article 223 Contracting Parties in accordance with their respective constitutional By way of derogation from the requirements. The instruments of provisions of Article 60, reactors ratification shall be deposited with the installed in the territories of a Member Government of the Italian Republic. State which may go critical before the expiry of a period of seven years from This Treaty shall enter into force on the the date of entry into force of this Treaty first day of the month following the shall, during a period of not more than deposit of the instrument of ratification 10 years from that date, in order to take by the last signatory State to take this account of work and studies already step. If, however, such deposit is made initiated, be granted priority which may less than 15 days before the beginning of be exercised in respect both of supplies the following month, this Treaty shall of ores or source materials coming from not enter into force until the first day of the territories of that State and also of the second month after the date of such supplies of source materials or special deposit. fissile materials which are the subject of Inventory of International Nonproliferation Organizations and Regimes 66 © Center for Nonproliferation Studies

Article 225 EDITORIAL NOTE:

This Treaty, drawn up in a single The reader will find below original in the Dutch, French, German a complete amended version and Italian languages, all four texts of the Treaty establishing the being equally authentic, shall be European Community as it (*) deposited in the archives of the results from Title IV of the Government of the Italian Republic, TEU: Provisions amending which shall transmit a certified copy to the Treaty establishing the each of the governments of the other European Atomic Energy signatory States. Community [Article I(1) to (29)]. IN WITNESS WHEREOF, the As amended by Article I(1) undersigned Plenipotentiaries have (*^2) TEU. signed this Treaty. As inserted by Article I(2) (*^3) Done at Rome this twenty fifth day of TEU. March in the year one thousand nine On this point, see also Article hundred and fifty seven. 7(1) and (2) of the Act (*^4) concerning the election of the P. H. SPAAK representatives of the European Parliament. J. Ch. SNOY ET D'OPPUERS Paragraph 3 as amended by (*^5) Article I(3) TEU. ADENAUER First paragraph as amended by HALLSTEIN (*^6) Article 27(1) of the Merger Treaty. PINEAU For the second sentence of this paragraph, see also M. FAURE Article 10(3) of the Act (*^7) concerning the election of the Antonio SEGNI representatives of the European Parliament. Gaetano MARTINO As amended by Article I(4) (*^8) TEU. BECH As inserted by Article I(5) (*^9) TEU. Lambert SCHAUS Second subparagraph as J. LUNS amended by Article 12 AA (*^10) A/FIN/SWE. See also Council J. LINTHORST HOMAN Decision of 1 January 1995 determining the order in Inventory of International Nonproliferation Organizations and Regimes 67 © Center for Nonproliferation Studies

which the office of President by Article 18 AA of the Council shall be held A/FIN/SWE. (see Volume I, p. 865). First paragraph as amended by As inserted by Article I(5) Article 20 AA A/FIN/SWE in (*^11) TEU. (*^23) the version resulting from Paragraph 2 as amended by Article 11 AD AA Article 15 AA A/FIN/SWE in A/FIN/SWE. (*^12) the version resulting from Second and third paragraphs Article 8 AD AA as amended by Article 21 AA A/FIN/SWE. (*^24) A/FIN/SWE in the version As inserted by Article I(6) resulting from Article 12 AD (*^13) TEU. AA A/FIN/SWE. As inserted by Article I(7) Second and third paragraphs (*^14) TEU. as amended by Article 21 AA (*^25) A/FIN/SWE in the version As inserted by Article I(8) (*^15) resulting from Article 12 AD TEU. AA A/FIN/SWE. First subparagraph of As amended by Article I(11) (*^26) paragraph 1 as amended by TEU. Article 16 AA A/FIN/SWE in (*^16) As amended by Article I(12) the version resulting from (*^27) Article 9 AD AA TEU. A/FIN/SWE. As amended by Article I(13) (*^28) As inserted by Article I(8) TEU. (*^17) TEU. Second paragraph inserted by (*^29) As inserted by Article I(8) Article 27 of the SEA. (*^18) TEU. Section 5 (Articles 160a to 160c, formerly Articles 180 First subparagraph of (*^30) paragraph 2 as amended by and 180a) as inserted by Article 26 AA A/FIN/SWE in Article I(14) TEU. (*^19) the version resulting from Paragraph 1 as amended by Article 17 AD AA Article 22 AA A/FIN/SWE in A/FIN/SWE. (*^31) the version resulting from As amended by Article I(10) Article 13 AD AA (*^20) TEU. A/FIN/SWE. As amended by Article I(15) First paragraph as amended by (*^32) Article 17 AA A/FIN/SWE in TEU. (*^21) the version resulting from As amended by Article I(16) (*^33) Article 10 AD AA TEU. A/FIN/SWE. As amended by Article I(17) (*^34) (*^22) Second paragraph as amended TEU. Inventory of International Nonproliferation Organizations and Regimes 68 © Center for Nonproliferation Studies

As amended by Article I(19) this edition. (*^35) TEU. Third paragraph added by As inserted by Article I(20) Article 27 AA DK/IRL/UK (*^36) (*^47) TEU. modified by Article 16 AD As amended by Article 20 of AA DK/IRL/UK. (*^37) the Treaty amending Certain Point (e) added by Article 28 Financial Provisions. AA A/FIN/SWE in the (*^48) EDITORIAL NOTE: version resulting from Article 19 AD AA A/FIN/SWE. The Joint Declaration by the As amended by Article I(27) (*^49) European Parliament, the TEU. Council and the Commission, As amended by Article I(29) (*^38) (*^50) adopted on 30 June 1982, on TEU. various measures to improve the budgetary procedure is EDITORIAL NOTE: reproduced on p. 865 of Volume I. Notwithstanding the provisions of Article 3 of the (*^51) As amended by Article 21 of SEA, and for historical (*^39) the Treaty amending Certain reasons, the term ‘Assembly’ Financial Provisions. has not been replaced by the As amended by Article I(21) terms ‘European Parliament’. (*^40) TEU. As added by Article 22 of the (*^41 Treaty amending Certain Financial Provisions. As amended by Article I(23) (*^42) TEU. As amended by Article I(24) (*^43) TEU. As inserted by Article I(25) (*^44) TEU. As amended by Article I(26) (*^45) TEU. As amended by the second Proces-Verbal of rectification of the TEU, done in Rome on (*^45bis) 6 December 1996 and not published in the Official Journal. (*^46) See Book II, Volume II, of Inventory of International Nonproliferation Organizations and Regimes 69 © Center for Nonproliferation Studies