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TITLE III
PROVISIONS AMENDING THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL
COMMUNITY

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

1) Article 7 shall be replaced by the following:
"ARTICLE 7
The institutions of the Community shall be:
- a HIGH AUTHORITY (hereinafter referred to as "the Commission");
- a COMMON ASSEMBLY (hereinafter referred to as "the European Parliament");
- a SPECIAL COUNCIL OF MINISTERS (hereinafter referred to as "the Council");
- a COURT OF JUSTICE;
- a COURT OF AUDITORS.
The Commission shall be assisted by a Consultative Committee."

2) The following Articles shall be inserted:
"ARTICLE 9
1. The Commission shall consist of seventeen members, who shall be chosen on
the grounds of their general competence and whose independence is beyond
doubt.
The number of members of the Commission may be altered by the Council, acting
unanimously.
Only nationals of the Member States may be members of the Commission.
The commission must include at least one national of each of the Member
States, but may not include more than two members having the nationality of
the same State.
2. The members of the Commission shall, in the general interest of the
Community, be completely independent in the performance of their duties.
In the performance of these duties, they shall neither seek nor take
instructions from any government or from any other body., They shall refrain
from any action incompatible with their duties. Each Member State undertakes
to respect this principle and not to seek to influence the members of the
Commission in the performance of their tasks.
The members of the Commission may not, during their term of office, engage in
any other occupation whether gainful or not. When entering upon their duties
they shall give a solemn undertaking that, both during and after their term of
office, they will respect the obligations arising therefrom and in particular
their duty to behave with integrity and discretion as regards the acceptance,
after they have ceased to hold office, of certain appointments or benefits. In
the event of any breach of these obligations, the Court of Justice may, on
application by the Council or the Commission, rule that the member concerned
be, according to the circumstances, either compulsorily retired in accordance
with Article 12a or deprived of his right to a pension or other benefits in
its stead.
ARTICLE 10
1. The members of the Commission shall be appointed in accordance with the
procedure referred to in paragraph 2, for a period of five years, subject, if
need be, to Article 24.
Their term of office shall be renewable.
2. The governments of the Member States shall nominate by common accord, after
consulting the European Parliament, the person they intend to appoint as
President of the Commission.
The governments of the Members States shall, in consultation with the nominee
for the President, nominate the other persons whom they intend to appoint as
members of the Commission.
The President and the other members of the Commission thus nominated shall be
subject as a body to a vote of approval by the European Parliament. After
approval by the European Parliament, the President and the other members of
the Commission shall be appointed by common accord of the Member States.
3. Paragraphs 1 and 2 shall be applied for the first time to the President and
the other members of the Commission whose term of office begins on 7 January
1995.
The President and the other members of the Commission whose term of office
beings on 7 January 1993 shall be appointed by common accord of the
governments of the Member States. Their term of office shall expire on 6
January 1995.
ARTICLE 11
The Commission may appoint a Vice-President or two Vice-Presidents from among
its members.
ARTICLE 12
Apart from normal replacement, or death, the duties of a member of the
Commission shall end when he resigns or is compulsorily retired.
The vacancy thus caused shall be filled for the remainder of the members term
of office by a new member appointed by common accord of the governments of the
Member States. The Council may, acting unanimously, decide that such a vacancy
need not be filled.
In the event of resignation, compulsory retirement or death, the President
shall be replaced for the remainder of his term of office. The procedure laid
down in Article 10(2) shall be applicable for the replacement of the
President.
Save in the case of compulsory retirement under Article 12a, members of the
Commission shall remain in office until they have been replaced.
ARTICLE 12a
If any member of the Commission no longer fulfils the conditions required for
the performance of his duties or if he has been guilty of serious misconduct,
the Court of Justice may, on application by the Council or the Commission,
compulsorily retire him.
ARTICLE 13
The Commission shall act by a majority of the number of members provided for
in Article 9.
A meeting of the Commission shall be valid only if the number of members laid
down in its rules of procedure is present."

3) Article 16 shall be replaced by the following:
"ARTICLE 16
The Commission shall make all appropriate administrative arrangements for the
operation of its departments.
It may set up study committees, including an economic study committee.
The Council and the Commission shall consult each other and shall settle by
common accord their methods of cooperation.
The Commission shall adopt its rules of procedure so as to ensure that both it
and its departments operate in accordance with the provisions of this Treaty.
It shall ensure that these rules are published."

4) The following article shall be inserted:
"ARTICLE 17
The commission shall publish annually, not later than one month before the
opening of the session of the European Parliament, a general report on the
activities of the Community."

5) The following subparagraph shall be added to Article 18:
"The Council shall, acting by a qualified majority, determine any payment to
be made instead of remuneration."

6) The following Articles shall be inserted:
"ARTICLE 20a
The European Parliament may, acting by a majority of its members, request the
Commission to submit any appropriate proposal on matters which it considers
that a Community act is required for the purpose of implementing this Treaty.
ARTICLE 20b
In the course of its duties, the European Parliament may, at the request of a
quarter of its members, set up a temporary Committee of Inquiry to
investigate, without prejudice to the powers conferred by this Treaty on other
institutions or bodies, alleged contraventions or maladministration in the
implementation of Community law, except where the alleged facts are being
examined before a Court and while the case is still subject to legal
proceedings.
The temporary Committee of Inquiry shall cease to exist on the submission of
its report.
The detailed provisions governing the exercise of the right of inquiry shall
be determined by common accord of the European Parliament, the Council, and
the Commission.
ARTICLE 20c
Any citizen of the Union, and any natural or legal person residing or having
its registered office in a Member State, shall have the right to address,
individually or in association with other citizens or persons, a petition to
the European Parliament on a matter which comes within the Community's field's
of activity and which affects him, her or it directly.
ARTICLE 20d
1. The European Parliament shall appoint an Ombudsman empowered to receive
complaints from any citizen of the Union or any natural or legal person
residing or having its registered office in a Member State concerning
instances of maladministration in the activities of the Community institutions
or bodies, with the exception of the Court of Justice and the Court of First
Instance acting in their judicial role.
In accordance with his duties, the Ombudsman shall conduct enquiries for which
he finds grounds, either on his own initiative or on the basis of complaints
submitted to him direct or through a member of the European Parliament, except
where the alleged facts are or have been the subject of legal proceedings.
Where the Ombudsman establishes an instance of maladministration, he shall
refer the matter to the institution concerned, which shall have a period of
three months in which to inform him of its views. The Ombudsman shall then
forward a report to the European Parliament, and the institution concerned.
The person lodging the complaint shall be informed of the outcome of such
inquiries.
The Ombudsman shall submit an annual report to the European Parliament on the
outcome of his inquiries.
2. The Ombudsman shall be appointed after each election of the European
parliament for the duration of its term of office. The Ombudsman shall be
eligible for reappointment.
The Ombudsman may be dismissed by the Court of Justice at the request of the
European Parliament if he no longer fulfils the conditions required for the
performance of his duties or if he is guilty of serious misconduct.
3. The Ombudsman shall be completely independent in the performance of his
duties. In the performance of those duties he shall neither seek nor take
instructions from any body. The Ombudsman may not, during his term of office,
engage in any other occupation, whether gainful or not.
4. The European Parliament shall, after seeking an opinion from the Commission
and with the approval of the Council acting by a qualified majority, lay down
the regulations and general conditions governing the performance of the
Ombudsman's duties."

7) Paragraph 3 of Article 21 shall be replaced by the following:
"3. The European Parliament shall draw up proposals for elections by direct
universal suffrage in accordance with a uniform procedure in all Member
States.
The Council shall, acting unanimously after obtaining the assent of the
European Parliament, which shall act by a majority of its component members,
lay down the appropriate provisions, which it shall recommend to Member States
for adoption in accordance with their respective constitutional requirements."

8) Article 24 shall be replaced by the following:
"ARTICLE 24
The European Parliament shall discuss in open session the general report
submitted to it by the Commission.
If a motion of censure on the activities of the Commission is tabled before
it, the European Parliament shall not vote thereon until at least three days
after the motion has been tabled and only by open vote.
If a motion of censure is carried by a two-thirds majority of the votes cast,
representing a majority of the members or the European Parliament, the members
of the Commission shall resign as a body. They shall continue to deal with
current business until they are replaced in accordance with Article 10. In
this case, the term of office the members of the Commission appointed to
replace them shall expire on the date on which the term of office of the
members of the Commission obliged to resign as a body would have expired."

9) The following Articles shall be inserted:
"ARTICLE 27
The Council shall consist of a representative of each Member State at a
ministerial level, authorized to commit the government of that Member State.
The office of President shall be held in turn by each Member State in the
Council for a term of six months, in the following order of Member States:
- for a first cycle of six years: Belgium, Denmark, Germany, Greece, Spain,
France, Ireland, Italy, Luxembourg, Netherlands, Portugal, United Kingdom;
- for the following cycle of six years: Denmark, Belgium, Greece, Germany,
France, Spain, Italy, Ireland, Netherlands, Luxembourg, United Kingdom,
Portugal.
ARTICLE 27a
The Council shall meet when convened by its President on his own initiative or
at the request of one of its members or of the Commission."

10) The following Article shall be inserted:
"ARTICLE 29
The Council shall, acting by a qualified majority, determine the salaries,
allowances and pensions of the President and members of the Commission, and of
the President, Judges, Advocates-General and Registrar of the Court of
Justice. It shall also, again by a qualified majority, determine any payment
to be made instead of remuneration,
ARTICLE 30
1. A committee consisting of the Permanent Representatives of the Member
States shall be responsible for preparing the work of the Council and for
carrying out the tasks assigned to it by the Council.
2. The Council shall be assisted by a General Secretariat, under the direction
of a Secretary General. The Secretary-General shall be appointed by the
Council acting unanimously.
The Council shall decide on the organization of the General Secretariat.
3. The Council shall adopt its rules of procedure."

11) Article 32 shall be replaced by the following;
"ARTICLE 32
The Court of Justice shall consist of thirteen Judges.
The Court of Justice shall sit in plenary session. It may, however, form
Chambers, each consisting of three or five Judges, either to undertake certain
preparatory inquiries, or to adjudicate on particular categories of cases in
accordance with the rules laid down for these purposes.
The Court of Justice shall sit in plenary session when a Member State or a
Community institution that is a party to the proceedings so requests.
Should the Court of Justice so request, the Council may, acting unanimously,
increase the number of Judges and make the necessary adjustments to the second
and third paragraphs of this Article and to the second paragraph of Article
32b."

12) Article 32d shall be replaced by the following:
"ARTICLE 32d
1. A Court of First Instance shall be attached to the Court of Justice with
jurisdiction to hear and determine at first instance, subject to a right of
appeal to the Court of Justice on points of law only and in accordance with
the conditions laid down by the Statute, certain classes of action or
proceeding defined in accordance with the conditions laid down by the Statute,
certain classes of action or proceeding defined in accordance with the
conditions laid down in paragraph 2. The Court of First Instance shall not be
competent to hear and determine questions referred for a preliminary ruling
under Article 41.
2. At the request of the Court of Justice and after consulting the European
Parliament and the Commission, the Council, acting unanimously, shall
determine the classes of action or proceeding referred to in paragraph 1, and
the composition of the Court of First instance and shall adopt the necessary
adjustments and additional provisions to the Statute of the Court of Justice.
Unless the Council decides otherwise, the provisions of this Treaty relating
to the Court of Justice, in particular the provisions of the Protocol on the
Statute of the Court of Justice, shall apply to the Court of the First
Instance.
3. The members of the Court of First instance shall be chosen from persons
whose independence is beyond doubt and who possess the ability required for
appointment to judicial office; they shall be appointed by common accord of
the governments of the Member States for a term of six years. The membership
shall be partially renewed every three years. Retiring members shall be
eligible for re-appointment.
4. The Court of First Instance shall establish its rules of procedure in
agreement with the Court of Justice. Those rules shall require the unanimous
approval of the Council."

13) Article 33 shall be replaced by the following:
"ARTICLE 33
The Court of Justice shall have jurisdiction in actions brought by a Member
State or by the Council to have decisions or recommendations of the Commission
declared void on grounds of lack of competence, infringement of an essential
procedural requirement, infringement of this Treaty or of any rule of law
relating to its application, or misuse of powers. The Court of Justice may
not, however, examine the evaluation of the situation, resulting from economic
facts or circumstances, in the light of which the Commission took its
decisions or made its recommendations, save where the Commission is alleged to
have misused its powers or to have manifestly failed to observe the provisions
of the Treaty or any rule of law relating to its application.
Undertakings or associations referred to in Article 48 may, under the same
conditions, institute proceedings against decisions or recommendations
concerning them which are individual in character or against general decisions
or recommendations which they consider to involve a misuse of powers affecting
them.
The proceedings provided for in the first two paragraphs of the Article shall
be instituted within one month of the notification or publication, as the case
may be, of the decision or recommendation.
The Court of Justice shall have jurisdiction under the same conditions in
actions brought by the European Parliament for the purpose of protecting its
prerogatives."

14) The following chapter shall be inserted:
"CHAPTER V
THE COURT OF AUDITORS
ARTICLE 45a
The Court of Auditors shall carry out the audit.
ARTICLE 45b
1. The Court of Auditors shall consist of twelve members.
2. The members of the Court of Auditors shall be chosen from among persons who
belong or have belonged in their respective countries to external audit bodies
or who are especially qualified for this office. Their independence must be
beyond doubt.
3. The members of the Court of Auditors shall be appointed for a term of six
years by the Council, acting unanimously after consulting the European
Parliament.
However, when the first appointments are made, four members of the Court of
Auditors, chosen by lot, shall be appointed for a term of office of four years
only.
The members of the Court of Auditors shall be eligible for reappointment.
They shall elect the President of the Court of Auditors from among their
number for a term of three years. The President may be re-elected.
4. The members of the Court of Auditors shall, in the general interest of the
Community, be completely independent in the performance of their duties.
In the performance of theses duties, they shall neither seek nor take
instructions from any government or from any other body. They shall refrain
from any action incompatible with their duties.
5. The members of the Court of Auditors may not, during their term of office,
engage in any other occupation, whether gainful or not. When entering upon
their duties they shall give a solemn undertaking that, both during and after
their term of office, they will respect the obligations arising therefrom and
in particular their duty to behave with integrity and discretion as regards
the acceptance, after they have ceased to hold office, of certain appointments
or benefits.
6. Apart from normal replacement, or death, the duties of a member of the
Court of Auditors shall end when he resigns, or is compulsorily retired by a
ruling of the Court of Justice pursuant to paragraph 7.
The vacancy thus caused shall be filled for the remainder of the member's term
of office.
Save in the case of compulsory retirement, members of the Court of Auditors
shall remain in office until they have been replaced.
7. A member of the Court of Auditors may be deprived of his office or of his
right to a pension or other benefits in its stead only if the Court of
Justice, at the request of the Court of Auditors, finds that he no longer
fulfills the requisite conditions or meets the obligations arising from his
office.
8. The Council, acting by a qualified majority, shall determine the conditions
of employment of the President and the members of the Court of Auditors and in
particular their salaries, allowances and pensions. It shall also, by the same
majority, determine any payment to be made instead of remuneration.
9. The provisions of the Protocol on the Privileges and Immunities of the
European Communities applicable to the Judges of the Court of Justice shall
also apply to the members of the Court of Auditors.
ARTICLE 45c
1. The Court of Auditors shall examine the accounts of all revenue and
expenditure of the Community. It shall also examine the accounts of all
revenue and expenditure of all bodies set up by the Community in so far as the
relevant constituent instrument does not preclude such examination.
The Court of Auditors shall provide the European Parliament and the Council
with a statement of assurance as to the reliability of the accounts and the
legality and regularity of the underlying transactions.
2. The Court of Auditors shall examine whether all revenue referred to in
paragraph 1 has been received and all expenditure referred to in that
paragraph has been incurred in a lawful and regular manner and whether the
financial management has been sound.
The audit of expenditure shall be carried out on the basis both of commitments
undertaken and payments made.
These audits may be carried out before the closure of accounts for the
financial year in question.
3. The audit shall be based on records and, if necessary, performed on the
spot in the other institutions of the Community and in the Member States. In
the Member States the audit shall be carried out in liaison with the national
audit bodies or, if these do not have the necessary powers, with the competent
national departments. Theses bodies or departments shall inform the Court of
Auditors whether they intend to take part in the audit.
The other institutions of the Community and the national audit bodies or, if
these do not have the necessary powers, the competent national departments,
shall forward to the Court of Auditors, at its request, any document or
information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close of
each financial year. It shall be forwarded to the other institutions of the
Community and shall be published, together with the replies of these
institutions to the observations of the Court of Auditors, in the Official
Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations, particularly
in the form of special reports, on specific questions and deliver opinions at
the request of one of the other institutions of the Community,
It shall adopt its annual reports, special reports or opinions by a majority
of its members.
It shall assist the Europe and Parliament and the Council in exercising their
powers of control over the implementation of the budget.
5. The Court of Auditors shall also draw up a separate annual report stating
whether the accounting other than that for the expenditure and revenue
referred to in paragraph 1 and the financial management by the Commission
relating thereto have been effected in a regular manner. It shall draw up this
report within six months of the end of the financial year to which the
accounts refer and shall submit it to the Commission and the Council. The
Commission shall forward it to the European Parliament."

15) Article 78c shall be replaced by the following:
"ARTICLE 78c
The Commission shall implement the administrative budget, in accordance with
the provisions of the regulations made pursuant to Article 78h, on its own
responsibility and within the limits of the appropriations, having regard to
the principles of sound financial management.
The regulations shall lay down detailed rules for each institution concerning
its part in effecting its own expenditure.
Within the administrative budget, the Commission may, subject to the limits
and conditions laid down in the regulations made pursuant to Article 78h,
transfer appropriations from one chapter to another or from one subdivision to
another."

16) Articles 78e and 78f shall be repealed.

17) Article 78g shall be replaced by the following:
"ARTICLE 78g
1. The European Parliament, acting on a recommendation from the Council, which
shall act by a qualified majority, shall give a discharge to the Commission in
respect of the implementation of the administrative budget. To this end, the
Council and the European Parliament in turn shall examine the account and the
financial statement referred to in Article 78d, the annual report by the Court
of Auditors together with the replies of the institutions under audit to the
observations of the Court of Auditors, and any relevant special reports by the
Court of Auditors.
2. Before giving a discharge to the Commission, or for any other purpose in
connection with the exercise of its powers over the implementation of the
administrative budget, the European Parliament may ask to hear the Commission
give evidence with regard to the execution of expenditure or the operation of
financial control systems. The Commission shall submit any necessary
information to the European Parliament at the latter's request.
3. The Commission shall take all appropriate steps to act on the observations
in the decisions giving discharge on other observations by the European
Parliament relating to the execution of expenditure, as well as on comments
accompanying the recommendations on discharge adopted by the Council.
At the request of the European Parliament or Council, the Commission shall
report on the measures taken in the light of these observations and comments
and in particular on the instructions given to the departments which are
responsible for the implementation of the administrative budget. These reports
shall also be forwarded to the Court of Auditors."

18) Article 78h shall be replaced by the following:
"ARTICLE 78h
The Council, acting unanimously on a proposal from the Commission and after
consulting the European Parliament and obtaining the opinion of the Court of
Auditors, shall:
a) make Financial Regulations specifying in particular the procedure to be
adopted for establishing the implementing the administrative budget and for
presenting and auditing accounts;
b) determine the methods and procedure whereby the budget revenue provided
under the arrangements relating to the Communities' own resources shall be
made available to the Commission, and determine the measures to be applied, if
need be, to meet cash requirements;
c) lay down rules concerning the responsibility of financial controllers,
authorizing officers and accounting officers, and concerning appropriate
arrangements for inspection."

19) The following Article shall be inserted:
"ARTICLE 78i
Member States shall take the same measures to counter fraud affecting the
financial interests of the Community as they take to counter fraud affecting
their own financial interests.
Without prejudice to other provisions of this Treaty, Member States shall co-
ordinate their action aimed at protecting the financial interests of the
Community against fraud. To this end they shall organize, with the help of the
Commission, close and regular co-operation between the competent departments
of their administrations."

20) Article 79(a) shall be replaced by the following:
"(a) This Treaty shall not apply to the Faroe Islands."

21) Articles 96 and 98 shall be repealed.