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Treaty on the Functioning of the European Union

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Article 101 of the Treaty on the Functioning of the European Union (formerly Article 81 of the Treaty Establishing the European Community ) prohibits cartels and other agreements that could disrupt free competition in the European Economic Area 's internal market .

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85-880: The Treaty on the Functioning of the European Union ( TFEU ) is one of two treaties forming the constitutional basis of the European Union (EU), the other being the Treaty on European Union (TEU). It was previously known as the Treaty Establishing the European Community (TEC). The Treaty originated as the Treaty of Rome (fully the Treaty establishing the European Economic Community ), which brought about

170-519: A legal personality for the EU. Article 48 deals with the method of treaty amendment; specifically the ordinary and simplified revision procedures. Article 49 deals with applications to join the EU and article 50 with withdrawal . Article 51 deals with the protocols attached to the treaties and article 52 with the geographic application of the treaty. Article 53 states the treaty is in force for an unlimited period, article 54 deals with ratification and 55 with

255-641: A "concerted practice", or, within an association, taken a decision. Like US antitrust , this just means all the same thing. According to Advocate General Reischl in Van Landewyck [1980] there is no need to distinguish an agreement from a concerted practice, because they are merely convenient labels. Any kind of dealing or contact, or a " meeting of the minds " between parties could potentially be counted as illegal collusion . This includes both horizontal (e.g. between retailers) and vertical (e.g. between retailers and suppliers) agreements, effectively outlawing

340-454: A decade since they each came into force, the latest being the Treaty of Lisbon which came into force in 2009. The Lisbon Treaty also made the Charter of Fundamental Rights legally binding, though it remains a separate document. Following the preamble the treaty text is divided into six parts. The first deals with common provisions. Article 1 establishes the European Union on the basis of

425-473: A legal personality does not entitle the EU to act beyond its competencies. Declaration 43 allows Mayotte to change to the status of outermost region . As well as the two main treaties, their protocols and the Charter of Fundamental Rights; the Treaty Establishing a European Atomic Energy Community (Euratom) is still in force as a separate treaty. Title one outlines the tasks of Euratom. Title two contains

510-542: A limited number of member states to co-operate within the EU if others are blocking integration in that field. Chapter 1 of this title includes articles 21 and 22. Article 21 deals with the principles that outline EU foreign policy; including compliance with the UN charter , promoting global trade, humanitarian support and global governance. Article 22 gives the European Council, acting unanimously, control over defining

595-600: A national referendum rejected membership, leading Norway to abandon their ratification of the treaty of accession. The first treaty was signed in Brussels on 22 January 1972 and the second in Corfu on 24 June 1994. The European Constitution was a treaty that would have repealed and consolidated all previous overlapping treaties (except the Euratom treaty) into a single document. It also made changes to voting systems, simplified

680-507: A number of member states, following a "period of reflection", the constitution in that form was scrapped and replaced by the Treaty of Lisbon . Although not formally part of European Union law , several closely related treaties have been signed outside the framework of the EU and its predecessors between the member states because the EU lacked authority to act in the field. After the EU obtained such autonomy, many of these conventions were gradually replaced by EU instruments. Following on from

765-471: A subset of EU member states due to a lack of unanimity. The Schengen Treaty and Convention of 1985 and 1990 respectively were agreed to in this manner, but were subsequently incorporated into EU law by the Amsterdam Treaty with the remaining EU member states that had not signed the treaty being given an opt-out from implementing it. Others agreements signed as intergovernmental treaties outside

850-826: A treaty for a European Political Community to ensure democratic accountability of the new army, but it was abandoned when the Defence Community treaty was rejected. Other early examples include the Statute of the European School of 1957, the Naples Convention of 1967 on customs cooperation, the Brussels Convention of 1968 on jurisdiction in civil matters, the Convention setting up a European University Institute on 1972 and

935-413: Is enacted by a protocol attached to the treaties), immunities and the effect on treaties signed before 1958 or the date of accession. There are 37 protocols, 2 annexes and 65 declarations that are attached to the treaties to elaborate details, often in connection with a single country, without being in the full legal text. There are 65 declarations attached to the EU treaties. As examples, these include

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1020-594: Is then signed by all the national leaders and ratified by each state. While this is the procedure that has been used for all treaties prior to the Lisbon Treaty, an actual European Convention (essentially, a constitutional convention ) has only been called twice. First in the drafting of the Charter of Fundamental Rights with the European Convention of 1999–2000 . Second with the Convention on

1105-600: The EU delegations . Article 222, the Solidarity clause states that members shall come to the aid of a fellow member who is subject to a terrorist attack, natural disaster or man-made disaster. This includes the use of military force. Part 6 elaborates on the institutional provisions in the Treaty on European Union. As well as elaborating on the structures, articles 288 to 299 outline the forms of legislative acts and procedures of

1190-417: The EU delegations . Article 222, the Solidarity clause states that members shall come to the aid of a fellow member who is subject to a terrorist attack, natural disaster or man-made disaster. This includes the use of military force. Part 6, in articles 223 to 334, elaborates on the institutional provisions in the Treaty on European Union. As well as elaborating on the structures, articles 288 to 299 outline

1275-531: The European Council to unanimously agree to change the applicable voting procedure in the Council of Ministers to QMV and to change legislation adoption procedure from a special to the ordinary legislative procedure, provided that no national parliament objects. This procedure cannot be used for areas which have defence implications. The fourth amendment procedure is for changing status of some of

1360-515: The European Ombudsman and to contact and receive a reply from EU institutions in their own language. Article 25 requires the commission to report on the implementation of these rights every three years. Part 3 on policies and actions is divided by area into the following titles: the internal market ; the free movement of goods, including the customs union ; agriculture and fisheries ; free movement of people, services and capital ;

1445-775: The European Ombudsman and to contact and receive a reply from EU institutions in their own language. Article 25 requires the commission to report on the implementation of these rights every three years. Part 3 is the largest in the TFEU. Articles 26 to 197 concern the substantive policies and actions of the EU. Including the customs union Common Agricultural Policy and Common Fisheries Policy Title IV concerns free movement of people, services and capital : Including police and justice co-operation European Union competition law , taxation and harmonisation of regulations (note Article 101 and Article 102 ) Articles 119 to 144 concern economic and monetary policy , including articles on

1530-627: The European Research Area and European Space Policy are developed. Title XX concerns the increasingly important environmental policy, allowing action under articles 191 to 193. Title XXI, article 194, establishes the Energy policy of the European Union . Title XXII, article 195 is tourism. Title XXIII, article 196 is civil protection. Title XXIV, article 197 is administrative co-operation. Part 4, in articles 198 to 204, deals with association of overseas territories. Article 198 sets

1615-769: The Europol Convention of 1995 establishing Europol , the PFI Convention of 1995 on fraud, the Customs Information System Convention of 1995, the Insolvency Convention of 1995, the Convention relating to extradition of 1996, the convention on the fight against corruption of 1997, the Service Convention of 1997 on the service of documents, the convention on matrimonial matters of 1998,

1700-1057: The Treaty Establishing the European Stability Mechanism of 2012 establishing the European Stability Mechanism , the European Fiscal Compact of 2012 on fiscal rules in the eurozone , the Agreement on a Unified Patent Court of 2013 establishing the Unified Patent Court , and the Single Resolution Fund Agreement of 2014 establishing the Single Resolution Fund . However, all these agreements are open to accession by EU member states. The text of

1785-471: The Treaty on the Functioning of the European Union (originally signed in Rome in 1957 as the Treaty establishing the European Economic Community i.e. The Treaty of Rome), lay out how the EU operates, and there are a number of satellite treaties which are interconnected with them. The treaties have been repeatedly amended by other treaties over the 65 years since they were first signed. The consolidated version of

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1870-539: The common commercial (external trade) policy of the EU . Articles 208 to 214 deal with co-operation on development and humanitarian aid for third countries. Article 215 deals with sanctions while articles 216 to 219 deal with procedures for establishing international treaties with third countries. Article 220 instructs the High Representative and Commission to engage in appropriate co-operation with other international organisations and article 221 establishes

1955-404: The environment ) should also be considered there. Article 101 reads, 1. The following shall be seen as incompatible with the internal market: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within

2040-422: The special member state territories . The status of French, Dutch and Danish overseas territories can be changed more easily, by no longer requiring a full treaty revision. Instead, the European Council may, on the initiative of the member state concerned, change the status of an overseas country or territory (OCT) to an outermost region (OMR) or vice versa. This provision doesn't apply to special territories of

2125-849: The Agreement on the simplification and modernization of extradition requests of 1989, the Dublin Convention of 1990 on asylum, the Arbitration convention of 1990 on double taxation , the Maintenance Convention of 1990, the Transfer of Criminal Proceedings Agreement of 1990, the Convention on the Enforcement of Foreign Criminal Sentences of 1991, the Eurovignette Agreement of 1994, and

2210-750: The Convention Defining the Statute of the European Schools of 1994. Additionally, the convention on mutual recognition of companies and legal persons was signed in 1968 but never entered into force. Likewise, the Community Patent Convention of 1975 and the Agreement relating to Community patents of 1989, which amended the 1975 Convention never entered into force. Article K.3 of the Maastricht Treaty , which entered into force in 1993, authorised

2295-695: The Court has found that article 101 "require[s] the Member States not to introduce or maintain in force measures, even of a legislative nature, which may render ineffective the competition rules applicable to undertakings". The Court continues, saying that such would be the case "if a Member State were to require or favour the adoption of agreements, decisions or concerted practices contrary to Article 85 or to reinforce their effects, or to deprive its own legislation of its official character by delegating to private traders responsibility for taking decisions affecting

2380-549: The ECJ. In Courage v. Crehan , the European Court of Justice (ECJ) ruled that article 101 TFEU has direct horizontal effect and that individuals can invoke article 101 TFEU to claim damages as a result of a breach of said article by another party. Article 101 TFEU does not specifically ban cartels, instead declaring as illegal all "agreements, decisions and concerted practices" which are anti-competitive and which distort

2465-684: The EU . Articles 300 to 309 establish the European Economic and Social Committee , the Committee of the Regions and the European Investment Bank . Articles 310 to 325 outline the EU budget . Finally, articles 326 to 334 establishes provision for enhanced co-operation . Part 7 deals with final legal points, such as territorial and temporal application, the seat of institutions (to be decided by member states, but this

2550-643: The EU legal framework include the EU status of forces agreement of 2003, the EU claims agreement of 2004, the Treaty of Strasbourg of 2004 establishing the Eurocorps , the Treaty of Velsen of 2007 establishing the European Gendarmerie Force , the Prüm Convention of 2005 on the fight against terrorism, the convention on centralised customs clearance of 2009, the Agreement on the protection of classified information of 2011,

2635-625: The EU shall respect the status of religious, philosophical and non-confessional organisations under national law. The second part begins with article 18 which outlaws, within the limitations of the treaties, discrimination on the basis of nationality. Article 19 states the EU will "combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation". Articles 20 to 24 establishes EU citizenship and accords rights to it; to free movement, consular protection from other states, vote and stand in local and European elections , right to petition Parliament and

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2720-770: The EU shall respect the status of religious, philosophical and non-confessional organisations under national law. The second part begins with article 18 which outlaws, within the limitations of the treaties, discrimination on the basis of nationality. Article 19 states the council with the consent of the European Parliament "may take appropriate action to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation". Articles 20 to 24 establishes EU citizenship and accords rights to it; to free movement, consular protection from other states, vote and stand in local and European elections , right to petition Parliament and

2805-431: The EU to act for consumer protection , in article 169. Title XVI, articles 170–172 empower action to develop and integrate Trans-European Networks . Title XVII, article 173, regards the EU's industrial policy, to promote industry. Title XVIII, articles 174 to 178 concern economic, social and territorial cohesion (reducing disparities in development). Title XIX concerns research and development and space policy, under which

2890-510: The EU's foreign policy. Chapter 2 is further divided into sections. The first, common provisions, details the guidelines and functioning of the EU's foreign policy, including establishment of the European External Action Service and member state's responsibilities. Section 2, articles 42 to 46, deal with military cooperation (including Permanent Structured Cooperation and mutual defence). Article 47 establishes

2975-443: The EU. The ECJ has also held that "trade between Member States" includes "trade between regions of a Member State", to prevent cartels "carving up" territories for their own benefit. Exemptions to Article 101 behaviour fall into three categories. First, Article 101(3) creates an exemption where the practice is beneficial to consumers, e.g., by facilitating technological advances (efficiencies), but does not restrict all competition in

3060-589: The European Communities to "draw up conventions which it shall recommend to the Member States for adoption in accordance with their respective constitutional requirements" under the newly created Justice and Home Affairs pillar , which was organised on an intergovernmental basis. Concluded under these provisions were the Naples II Convention of 1997 on customs cooperation, the conventions on simplified extradition procedures of 1995,

3145-471: The European Community and lays out the legal value of the treaties. The second article states that the EU is "founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities". The member states share a "society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail". Article 3 then states

3230-466: The European Council. The President of the European Council can then either call a European Convention (composed of national governments, national parliamentarians, MEPs and representatives from the Commission ) to draft the changes or draft the proposals in the European Council itself if the change is minor. They then proceed with an Intergovernmental Conference (IGC) which agrees the treaty which

3315-562: The European Union Conventional wisdom declares that the aim of domestic competition law (such as that of the UK) is to provide a remedy to litigants whose interests are damaged by the anti-competitive behaviour of others, whereas the EU takes a broader view and has the goal of maintaining transparent markets and a "level playing field". Thus, the main objectives of the EU competition law are to maintain openness and to unify

3400-540: The European Union and the European Convention on Human Rights . Article 7 deals with the suspension of a member state and article 8 deals with establishing close relations with neighbouring states. Article 9 establishes the equality of national citizens and citizenship of the European Union . Article 10 declares that the EU is founded in representative democracy and that decisions must be taken as closely as possible to citizens. It makes reference to European political parties and how citizens are represented: directly in

3485-678: The Future of Europe which drafted the Constitutional Treaty (which then formed the basis of the Lisbon Treaty). Previously, treaties had been drafted by civil servants. The simplified revision procedure , which applies only to part three of the Treaty on the Functioning of the European Union and cannot increase the powers of the EU, sees changes simply agreed in the European Council by a decision before being ratified by each state. The amendment to article 136 TFEU makes use of

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3570-522: The Prum Convention, Fiscal Compact and Single Resolution Fund Agreement state that the intention of the signatories is to incorporate the treaty's provisions into EU structures and that EU law should take precedence over the treaty. A TFEU amendment was ratified which authorises the creation of the ESM, giving it a legal basis in the EU treaties. Article 101 of the Treaty on the Functioning of

3655-488: The United Nations . The final sixth point states that the EU shall pursue these objectives by "appropriate means" according with its competences given in the treaties. Article 4 relates to member states' sovereignty and obligations. Article 5 sets out the principles of conferral, subsidiarity and proportionality with respect to the limits of its powers. Article 6 binds the EU to the Charter of Fundamental Rights of

3740-403: The aims of the EU in six points. The first is simply to promote peace, European values and its citizens' well-being. The second relates to free movement with external border controls are in place. Point 3 deals with the internal market . Point 4 establishes the euro. Point 5 states the EU shall promote its values, contribute to eradicating poverty, observe human rights and respect the charter of

3825-588: The amending Convention of 1992 to the EUI Convention, the Agreement on the Suppression of Terrorism of 1979, the Rome Convention of 1980 on contractual obligations, the Convention on double jeopardy of 1987, the Agreement on the application of the Council of Europe Convention on the Transfer of Sentenced Persons of 1987, the Convention abolishing the legalization of documents of 1987,

3910-841: The area of freedom, justice and security, including police and justice co-operation; transport policy; competition , taxation and harmonisation of regulations (note Article 101 and Article 102 ); economic and monetary policy , including articles on the euro; employment policy; the European Social Fund ; education, vocational training, youth and sport policies; cultural policy; public health; consumer protection; Trans-European Networks ; industrial policy; economic, social and territorial cohesion (reducing disparities in development); research and development and space policy ; environmental policy; energy policy ; tourism; civil protection; and administrative co-operation. Part 4 deals with association of overseas territories. Article 198 sets

3995-488: The area. In practice very few official exemptions were given by the Commission and a new system for dealing with them is currently under review. Secondly, the Commission has agreed to exempt 'Agreements of minor importance' (except those fixing sale prices) from Article 101. This exemption applies to small companies, together holding no more than 10% of the relevant market in the case of horizontal agreements and 15% each in

4080-606: The case of Norway , where the treaty was their accession treaty, the treaty (hence, their membership) was also abandoned. Treaties are also put before the European Parliament and while its vote is not binding, it is important; both the Belgian and Italian Parliaments said they would veto the Nice Treaty if the European Parliament did not approve it. The treaties contain a passerelle clause which allows

4165-411: The case of vertical agreements (the de minimis condition). In this situation as with Article 102 (see below), market definition is a crucial, but often highly difficult, matter to resolve. Thirdly, the Commission has also introduced a collection of block exemptions for different types of contract and in particular in the case of vertical agreements . These include a list of permitted contract terms, and

4250-464: The common commercial (external trade) policy of the EU. Articles 208 to 214 deal with cooperation on development and humanitarian aid for third countries. Article 215 deals with sanctions while articles 216 to 219 deal with procedures for establishing international treaties with third countries. Article 220 instructs the High Representative and Commission to engage in appropriate cooperation with other international organisations and article 221 establishes

4335-599: The convention on driving disqualifications of 1998, and the convention on mutual assistance in criminal matters of 2000. Numerous protocols to these agreements have also been concluded. The JHA was integrated into the EC structures as the area of freedom, security and justice with the Lisbon Treaty 's entry into force in 2009, which has allowed a number of these Conventions to be replaced by EU Regulations or Decisions. Finally, several treaties have been concluded between

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4420-399: The core of the treaty on how cooperation in the field is to take place. Title three outlines institutional provisions and has largely been subsumed by the European Union treaties. Title four is on financial provisions and title five on the general and title six is on final provisions. The treaties can be changed in three different ways. The ordinary revision procedure is essentially

4505-481: The country is no longer legally bound by them itself. This can only be altered by a future amendment to the treaties. The two principal treaties on which the EU is based are the Treaty on European Union (TEU; Maastricht Treaty , effective since 1993) and the Treaty on the Functioning of the European Union (TFEU; Treaty of Rome , effective since 1958). These main treaties (plus their attached protocols and declarations) have been altered by amending treaties at least once

4590-650: The creation of the European Economic Community (EEC), the best-known of the European Communities (EC). It was signed on 25 March 1957 by Belgium , France , Italy , Luxembourg , the Netherlands and West Germany and came into force on 1 January 1958. It remains one of the two most important treaties in the modern-day European Union (EU). Its name has been amended twice since 1957. The Maastricht Treaty of 1992 removed

4675-819: The criteria. Title IX concerns employment policy, under articles 145–150. Title X concerns social policy, and with reference to the European Social Charter 1961 and the Community Charter of the Fundamental Social Rights of Workers 1989 . This gives rise to the weight of European labour law . Title XI establishes the European Social Fund under articles 162–164. Title XII, articles 165 and 166 concern education, vocational training, youth and sport policies. Title XIII concerns culture, in article 167. Title XIV allows measures for public health, under article 168. Title XV empowers

4760-534: The different language versions of the treaties. The Treaty on the Functioning of the European Union goes into deeper detail on the role, policies and operation of the EU. It is split into seven parts. In principles, article 1 establishes the basis of the treaty and its legal value. Articles 2 to 6 outline the competencies of the EU according to the level of powers accorded in each area. Articles 7 to 14 set out social principles, articles 15 and 16 set out public access to documents and meetings and article 17 states that

4845-402: The economic sphere". Article 101 covers agreements and anti-competitive practices that might affect " trade between Member States ". This provision has been interpreted broadly: for example, several agreements amongst firms with no production in the EU have been considered to affect trade between Member States. In the Webb-Pomerene case, EU law was applied to a US cartel with no production in

4930-445: The euro. Chapter 1: Economic policy - Article 122 deals with unforeseen problems in the supply chain and "severe difficulties caused by natural disasters or exceptional occurrences beyond its control" Chapter 1: Economic policy – Article 126 deals with how excessive member state debt is handled. Chapter 2: Monetary policy – Article 127 outlines that the European System of Central Banks should maintain price stability and work with

5015-401: The following. Declaration 1 affirms that the charter, gaining legal force, reaffirms rights under the European Convention and does not allow the EU to act beyond its conferred competencies. Declaration 4 allocates an extra MEP to Italy. Declaration 7 outlines Council voting procedures to become active after 2014. Declaration 17 asserts the primacy of EU law . Declaration 27 reasserts that holding

5100-436: The forms of legislative acts and procedures of the EU . Articles 300 to 309 establish the European Economic and Social Committee , the Committee of the Regions and the European Investment Bank . Articles 310 to 325 outline the EU budget . Finally, articles 326 to 334 establishes provision for enhanced co-operation . Part 7, in articles 335 to 358, deals with final legal points, such as territorial and temporal application,

5185-403: The internal market, and in particular those which: 2. Any agreements or decisions prohibited pursuant to this article shall be automatically void. 3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of: which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of

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5270-474: The internal market; to ensure economic efficiency in the marketplace; to ensure the conditions of effective competition and competitiveness; and to protect consumers. However, some argue that the goals of the Article are unclear. There are two main schools of thought: the predominant view is that only consumer welfare considerations are relevant there. An alternative view is that other Member State and European Union public policy goals (such as public health and

5355-434: The legal inception of the European Union (EU)—the principal framework for this unification. The EU inherited many of its present responsibilities from the European Communities (EC), which were founded in the 1950s in the spirit of the Schuman Declaration . Legend for below table: [ Founding ] – [ Amending ] – [ Membership ] Norway applied to join the European Communities/Union on two occasions. Both times

5440-407: The legislative process. Article 13 establishes the institutions in the following order and under the following names: the European Parliament , the European Council , the Council , the European Commission , the Court of Justice of the European Union , the European Central Bank and the Court of Auditors . It obliges co-operation between these and limits their competencies to the powers within

5525-448: The merging of the three pillars into the reformed European Union. In March 2011, the European Council adopted a decision to amend the Treaty by adding a new paragraph to Article 136. The additional paragraph, which enables the establishment of a financial stability mechanism for the Eurozone , runs as follows: The Member States whose currency is the euro may establish a stability mechanism to be activated if indispensable to safeguard

5610-832: The normal operation of the competition within the common market. This latter subjective requirement of knowledge is not, in principle, necessary in respect of agreements. As far as agreements are concerned the mere anticompetitive effect is sufficient to make it illegal even if the parties were unaware of it or did not intend such effect to take place. According to the Commission, in the context of platform work , " self-employed are in principle considered as undertakings and risk infringing Article 101 if they negotiate collectively their fees and other trading conditions", but also that there exist "circumstances in which solo self-employed are comparable to workers and thus not subject to Article 101". In exceptional cases, article 101 TFEU can also be applied to government regulation. In Van Eycke v. ASPA ,

5695-433: The objective of association as promoting the economic and social development of those associated territories as listed in annex 2. The following articles elaborate on the form of association such as customs duties. Part 5 deals with EU foreign policy . Article 205 states that external actions must be in accordance with the principles laid out in Chapter 1 Title 5 of the Treaty on European Union. Article 206 and 207 establish

5780-458: The objective of association as promoting the economic and social development of those associated territories as listed in annexe 2. The following articles elaborate on the form of association such as customs duties. Part 5, in articles 205 to 222, deals with EU foreign policy . Article 205 states that external actions must be in accordance with the principles laid out in Chapter 1 Title 5 of the Treaty on European Union. Article 206 and 207 establish

5865-463: The operation of cartels within the EU. Article 101 has been construed very widely to include both informal agreements ( gentlemen's agreements ) and concerted practices where firms tend to raise or lower prices at the same time without having physically agreed to do so. However, a coincidental increase in prices will not in itself prove a concerted practice, there must also be evidence that the parties involved were aware that their behaviour may prejudice

5950-438: The other member states. Legend for below table: [ Amending ] – [ Membership ] Since the end of World War II , sovereign European countries have entered into treaties and thereby co-operated and harmonised policies (or pooled sovereignty ) in an increasing number of areas, in the European integration project or the construction of Europe ( French : la construction européenne ). The following timeline outlines

6035-402: The parliament and by their governments in the council and European Council – accountable to national parliaments . Article 11 establishes government transparency, declares that broad consultations must be made and introduces provision for a petition where at least 1 million citizens may petition the commission to legislate on a matter. Article 12 gives national parliaments limited involvement in

6120-402: The principles of an open markets and free competition. The Article 140 describes the criteria for inclusion in monetary union (the euro) or having exception from it, and also says that it is a majority of the council, not the state alone, which decides upon usage of euro or national currency. Thereby are states obliged (except UK and Denmark) to introduce the euro if the council finds they fulfil

6205-407: The ratification must take place in its national parliament . On some occasions, a state has failed to get a treaty passed by its public in a referendum. In the cases of Ireland and Denmark a second referendum was held after a number of concessions were granted. However, in the case of France and the Netherlands , the treaty was abandoned in favour of a treaty that would not prompt a referendum. In

6290-500: The resulting benefit, and which does not: Businesses ("undertakings") infringing the provisions of Article 101 are liable to a fine of up to 10% of its worldwide annual turnover by the European Commission . However, Member States usually have their own domestic competition law which they may enforce, provided it is not contrary to EU law. The role of the Commission is the area is quasi-judicial and subject to appeal to

6375-513: The seat of institutions (to be decided by member states, but this is enacted by a protocol attached to the treaties), immunities and the effect on treaties signed before 1958 or the date of accession. Treaties of the European Union The Treaties of the European Union are a set of international treaties between the European Union (EU) member states which sets out the EU's constitutional basis . They establish

6460-595: The simplified revision procedure due to the small scope of its change. Any reform to the legal basis of the EU must be ratified according to the procedures in each member state. All states are required to ratify it and lodge the instruments of ratification with the Government of Italy before the treaty can come into force in any respect. In some states, such as Ireland, this is usually a referendum as any change to that state's constitution requires one. In others, such as Belgium , referendums are constitutionally banned and

6545-452: The single market. The term "undertaking" is a Eurospeak word for any person(s) or firms in an enterprise, and is used to describe those "engaged in an economic activity". The term excludes (i) employees, who are by their "very nature the opposite of the independent exercise of an economic or commercial activity", and (ii) public services based on "solidarity" for a "social purpose". Undertakings must then have formed an agreement, developed

6630-537: The stability of the euro area as a whole. The granting of any required financial assistance under the mechanism will be made subject to strict conditionality. The consolidated TFEU consists of seven parts: In principles, article 1 establishes the basis of the treaty and its legal value. Articles 2 to 6 outline the competencies of the EU according to the level of powers accorded in each area. Articles 7 to 14 set out social principles, articles 15 and 16 set out public access to documents and meetings and article 17 states that

6715-474: The structure of the EU and advanced co-operation in foreign policy. The treaty was signed in Rome on 29 October 2004 and was due to come into force on 1 November 2006 if it was ratified by all member states. However, this did not occur, with France rejecting the document in a national referendum on 29 May 2005 and then the Netherlands in their own referendum on 1 June 2005. Although it had been ratified by

6800-572: The success of the Treaty of Paris , establishing the European Coal and Steel Community , efforts were made to allow West Germany to rearm within the framework of a common European military structure . The Treaty instituting the European Defence Community was signed by the six members on 27 May 1952, but it never entered into force as it was not ratified by France and Italy. The Common Assembly also began drafting

6885-540: The traditional method by which the treaties have been amended and involves holding a full inter-governmental conference. The simplified revision procedure was established by the Treaty of Lisbon and only allows for changes which do not increase the power of the EU. While using the passerelle clause does involve amending the treaties, as such, it does allow for a change of legislative procedure in certain circumstances. The ordinary revision procedure for amending treaties requires proposals from an institution to be lodged with

6970-562: The treaties. Article 14 deals with the workings of Parliament and its election, article 15 with the European Council and its president, article 16 with the council and its configurations and article 17 with the commission and its appointment. Article 18 establishes the High Representative of the Union for Foreign Affairs and Security Policy and article 19 establishes the Court of Justice. Title 4 has only one article which allows

7055-606: The two core treaties is regularly published by the European Commission. Despite the withdrawal of the United Kingdom from the bloc in 2020, its name remains officially on some of the treaties (the SEA, Maastricht, Amsterdam, Nice and Lisbon and all accession treaties between 1972 and 2011) as it was part of the consultation and ratification process as a member state at the time those treaties were drawn up, though

7140-493: The various EU institutions together with their remit, procedures and objectives. The EU can only act within the competences granted to it through these treaties and amendment to the treaties requires the agreement and ratification (according to their national procedures) of every single signatory. Two core functional treaties, the Treaty on European Union (originally signed in Maastricht in 1992, The Maastricht Treaty) and

7225-465: The word "economic" from the Treaty of Rome's official title and, in 2009, the Treaty of Lisbon renamed it the "Treaty on the Functioning of the European Union". Following the 2005 referendums, which saw the failed attempt at launching a European Constitution , on 13 December 2007 the Lisbon Treaty was signed. This saw the 'TEC' renamed as the Treaty on the Functioning of the European Union (TFEU) and, once again, renumbered. The Lisbon reforms resulted in

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