$Unique_ID{bob00193} $Pretitle{} $Title{Unified Germany Chapter 1. Basic Principles} $Subtitle{} $Author{Press and Information Office} $Affiliation{German Embassy, Washington DC} $Subject{treaty article contracting annex republic social union democratic german parties} $Date{1990} $Log{} Title: Unified Germany Book: The Unity of Germany and Peace in Europe Author: Press and Information Office Affiliation: German Embassy, Washington DC Date: 1990 Chapter 1. Basic Principles ARTICLE 1__________ Subject of the Treaty (1) The Contracting Parties shall establish a monetary, economic and social union. (2) Starting on 1 July 1990 the Contracting Parties shall constitute a monetary union comprising a unified currency area and with the Deutsche Mark as the common currency. The Deutsche Bundesbank shall be the central bank in this currency area. The liabilities and claims expressed in Mark of the German Democratic Republic shall be converted into Deutsche Mark in accordance with this Treaty. (3) The basis of the economic union shall be the social market economy as the common economic system of the two Contracting Parties. It shall be determined particularly by private ownership, competition, free pricing and, as a basic principle, complete freedom of movement of labour, capital, goods and services; this shall not preclude the legal admission of special forms of ownership providing for the participation of public authorities or other legal entities in trade and commerce as long as private legal entities are not subject to discrimination. It shall take into account the requirements of environmental protection. (4) The social union together with the monetary and economic union shall form one entity. It shall be characterized in particular by a system of labour law that corresponds to the social market economy and a comprehensive system of social security based on merit and social justice. ARTICLE 2__________ Principles (1) The Contracting Parties are committed to a free, democratic, federal and social basic order governed by the rule of law. To ensure the rights laid down in or following from this Treaty, they shall especially guarantee freedom of contract, freedom to exercise a trade, freedom of establishment and occupation, and freedom of movement of Germans in the entire currency area, freedom to form associations to safeguard and enhance working and economic conditions and, in accordance with Annex IX, ownership of land and means of production by private investors. (2) Contrary provisions of the Constitution of the German Democratic Republic relating to its former socialist social and political system shall no longer be applied. ARTICLE 3__________ Legal Basis The establishment of a monetary union and the currency conversion shall be governed by the agreed provisions listed in Annex I. Pending the establishment of monetary union, the legislation of the Federal Republic of Germany concerning currency, credit, money and coinage as well as economic and social union referred to in Annex II shall be implemented in the German Democratic Republic; thereafter, it shall apply, as amended, in the entire currency area according to Annex II, unless this Treaty provides otherwise. The Deutsche Bundesbank, the Federal Banking Supervisory Office and the Federal Insurance Supervisory Office shall exercise the authority accorded to them under this Treaty and said legislation in the entire area of application of this Treaty. ARTICLE 4__________ Legal Adjustments (1) Legal adjustments in the German Democratic Republic necessitated by the establishment of the monetary, economic and social union shall be governed by the principles laid down in Article 2 (1) and the guidelines agreed in the Protocol; legislation remaining in force shall be interpreted and applied in accordance with said principles and guidelines. The German Democratic Republic shall repeal or amend the legislation referred to in Annex III and adopt the new legislation referred to in Annex IV prior to the establishment of monetary union, provided that no other time limit is fixed in the Treaty or in the Annexes. (2) The proposed amendments to legislation in the Federal Republic of Germany are listed in Annex V. The proposed legislative adjustments in the German Democratic Republic are listed in Annex VI. (3) In the transmission of personal data, the principles contained in Annex VII shall apply. ARTICLE 5__________ Administrative Assistance The authorities of the Contracting Parties shall, subject to the provisions of domestic law, assist each other in the implementation of this Treaty. Article 32 of the Treaty shall remain unaffected. ARTICLE 6__________ Recourse to the Courts (1) Should any person's rights guaranteed by or following from this Treaty be violated by public authority he shall have recourse to the courts. In so far as no other jurisdiction has been established, recourse shall be to the ordinary courts. (2) The German Democratic Republic shall guarantee recourse to the courts, including recourse for provisional court protection. In the absence of special courts for public-law disputes, special arbitration courts shall be set up at ordinary courts. Jurisdiction for such disputes shall be concentrated at specific regional and district courts. (3) Pending the establishment of a special labour jurisdiction, legal disputes between employers and employees shall be settled by neutral arbitration bodies to be composed of an equal number of employers and employees and a neutral chairman. Their decisions shall be appealable. (4) The German Democratic Republic shall permit free arbitration in the field of private law. ARTICLE 7__________ Arbitral Tribunal (1) Disputes concerning the interpretation or application of this Treaty, including the Protocol and the Annexes, shall be settled by the Governments of the two Contracting Parties through negotiation. (2) If a dispute cannot thus be settled, either Contracting Party may submit the dispute to an arbitral tribunal. Such submission shall be admissible irrespective of whether a court has jurisdiction in accordance with Article 6 of this Treaty. (3) The arbitral shall be composed of a chairman and four members. Within a period of one month following in the entry into force of this Treaty, the Government of each Contracting Party shall appoint two regular and two deputy members. Within the same period, the chairman and the deputy chairman shall be appointed in agreement between the Governments of the two Contracting Parties. If the periods specified in the second and third sentences have not been observed, the necessary appointments shall be made by the President of the Court of Justice of the European Communities. (4) The period of office shall be two years. (5) The chairman and members of the arbitral tribunal shall exercise their office independently and free from instructions. Before commencing their activities, the chairman and members of the arbitral tribunal shall undertake to carry out their duties independently and conscientiously and to observe confidentiality. (6) The provisions governing the convening and the procedure of the arbitral tribunal are laid down in Annex VIII. ARTICLE 8__________ Intergovernmental Committee The Contracting Parties shall appoint an Intergovernmental Committee. The Committee shall discuss - and where necessary reach agreement on - questions relating to the implementation of the Treaty. The tasks of the Committee shall include the settlement of disputes under Article 7 (1) of the Treaty. ARTICLE 9__________ Amendments to the Treaty Should amendments or additions to this Treaty appear necessary in order to achieve any of its aims, such amendments or additions shall be agreed between the Contracting Parties.