Protocol No 1

AMENDING THE PROTOCOLS ANNEX ED TO THE TREATY ON EUROPEAN UNION, TO THE TREATY ESTABLISHING THE EUROPEAN COMMUNITY AND/OR TO THE TREATY ESTABLISHING THE EUROPEAN ATOMIC ENERGY COMMUNITY

THE HIGH CONTRACTING PARTIES,

DESIRING to amend the Protocols annexed to the Treaty on European Union, to the Treaty establishing the European Community and/or to the Treaty establishing the European Atomic Energy Community, in order to adapt them to the new rules laid down by the Treaty of Lisbon,

HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty of Lisbon:

Article 1

1) The protocols in force on the date of entry into force of this Treaty and annexed to the Treaty on European Union, to the Treaty establishing the European Community and/or to the Treaty establishing the European Atomic Energy Community shall be amended in accordance with the provisions of this Article.

A. HORIZONTAL AMENDMENTS

2) The horizontal amendments laid down in Article 2(2) of the Treaty of Lisbon shall apply to the Protocols referred to in this Article, with the exception of points (d), (e) and (j). Where point 5(a) or point 12(a) below specifically provides otherwise, the horizontal amendment laid down in Article 2(3)(b) of that Treaty shall not apply to the Protocol on the Statute of the European System of Central Banks and of the European Central Bank or to the Protocol on the Statute of the European Investment Bank, respectively.

3) In the Protocols referred to in point 1 of this Article:

(a) the last paragraph of their respective preambles, referring to the Treaty or Treaties to which the Protocol in question is annexed, shall be replaced by "HAVE AGREED UPON the following provisions, which shall be annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union". This subparagraph shall apply neither to the Protocol on economic and social cohesion nor to the Protocol on the system of public broadcasting in the Member States.

The Protocol on the Statute of the Court of Justice of the European Union, the Protocol on the location of the seats of the institutions and of certain bodies, offices, agencies and departments of the European Union, the Protocol on Article 40.3.3 of the Constitution of Ireland and the Protocol on the privileges and immunities of the European Union shall also be annexed to the Treaty establishing the European Atomic Energy Community;

(b) the word "Communities" shall be replaced by "Union" and any necessary grammatical changes shall be made.

4) In the following Protocols, the words "the Treaty" and "this Treaty" shall be replaced by "the Treaties" and "these Treaties" respectively, and references to the Treaty on European Union and/or to the Treaty establishing the European Community shall be replaced by a reference to the Treaties, and any necessary grammatical changes shall be made:

(a) Protocol on the Statute of the Court of Justice of the European Union:

- Article 1 (including the references to the EU and EC Treaty, respectively);

(b) Protocol on the Statute of the European System of Central Banks and of the European Central Bank:

- Article 1.1, new second subparagraph;

- Article 12.1, first subparagraph;

- Article 14.1 (second instance);

- Article 14.2, second subparagraph;

- Article 34.1, second indent;

- Article 35.1;

(c) Protocol on the excessive deficit procedure:

- Article 3, second sentence;

(d) Protocol on certain provisions relating to Denmark:

- point 2, renumbered 1, second sentence;

(e) Protocol integrating the Schengen acquis into the framework of the European Union:

- sixth, renumbered fifth, recital;

- Article 1;

(f) Protocol on asylum for nationals of Member States of the European Union:

- sixth, renumbered seventh recital;

(g) Protocol on the acquisition of property in Denmark:

- sole provision;

(h) Protocol on the system of public broadcasting in the Member States:

- sole provision;

(i) Protocol on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel:

- Article 3.

5) In the following Protocols and Annexes, references to "this Treaty" and "the Treaty" shall be replaced by references to "the Treaty on the Functioning of the European Union":

(a) Protocol on the Statute of the European System of Central Banks and of the European Central Bank:

- Article 2

- Article 3

- Article 4

- Article 6.3

- Article 7

- Article 9.2

- Article 9.3

- Article 11

- Article 14.1 (first instance of "This Treaty"

- Article 15

- Article 16

- Article 21

- Article 25

- Article 27

- Article 34.1 (first instance)

- Article 35

- Article 41.1

- Article 42 (renumbered 41)

- Article 43 (renumbered 42)

- Article 44 (renumbered 43) second subparagraph

- Article 45 (renumbered 44)

- Article 47 (renumbered 46)

(b) Protocol on the excessive deficit procedure:

- Article 1, introductory phrase;

(c) Protocol on the convergence criteria referred to in Article 121 of the Treaty establishing the European Community:

- sole recital

- Article 1, first sentence;

(d) Protocol on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland:

- paragraph 6, renumbered 5, second subparagraph;

- paragraph 9, renumbered 8, introductory phrase;

- paragraph 10, renumbered 9, second sentence of (a);

- paragraph 11, renumbered 10;

(e) Protocol on economic and social cohesion:

- fifteenth, renumbered eleventh, recital

(f) Annexes I and II:

- titles of both Annexes.

6) In the following Protocols, the words "of this Treaty" shall be replaced by "of the said Treaty":

(a) (Does not apply to the English version.);

(b) Protocol on the excessive deficit procedure:

- Article 2, introductory phrase;

(c) Protocol on the convergence criteria referred to in Article 121 of the Treaty establishing the European Community:

- Article 2;

- Article 3;

- Article 4, first sentence;

- Article 6;

(d) Protocol on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland:

- paragraph 7, renumbered 6, second subparagraph;

- paragraph 10, renumbered 9, point (c).

7) In the following Protocols, the words "acting by a simple majority" shall be inserted after "the Council":

(a) Protocol on the Statute of the Court of Justice of the European Union:

- Article 4, second paragraph;

- Article 13, second paragraph;

(b) Protocol on the privileges and immunities of the European Communities:

- Article 7, renumbered 6, paragraph 1, first subparagraph, first sentence.

8) In the following Protocols, the words "Court of Justice of the European Communities", "Court of Justice" or "Court" shall be replaced by "Court of Justice of the European Union":

(a) Protocol on the Statute of the Court of Justice of the European Union:

- Article 1;

- Article 3, fourth paragraph;

- Article 1 of the Annex;

(b) Protocol on the Statute of the European System of Central Banks and of the European Central Bank:

- Article 35.1, 35.2, 35.4, 35.5 and 35.6;

- Article 36.2;

(c) Protocol on the location of the seats of the institutions and of certain bodies and departments of the European Communities and of Europol:

- Sole Article, point (d);

(d) Protocol on the privileges and immunities of the European Communities:

- Article 12, renumbered 11, point (a);

- Article 21, renumbered 20, first occurrence;

(e) Protocol on the position of the United Kingdom and Ireland:

- Article 2;

(f) Protocol on asylum for nationals of Member States of the European Union:

- second, renumbered third, recital.

B. SPECIFIC AMENDMENTS

PROTOCOLS REPEALED

9) The following Protocols shall be repealed:

(a) Protocol on Italy (1957);

(b) Protocol on goods originating in and coming from certain countries and enjoying special treatment when imported into a Member State (1957);

(c) Protocol on the Statute of the European Monetary Institute (1992);

(d) Protocol on the transition to the third stage of economic and monetary union (1992);

(e) Protocol on Portugal (1992);

(f) Protocol on the role of national parliaments in the European Union (1997), which shall be replaced by a new Protocol with the same title;

(g) Protocol on the application of the principles of subsidiarity and proportionality (1997), which shall be replaced by a new Protocol with the same title;

(h) Protocol on protection and welfare of animals (1997), the text of which shall become Article 6b of the Treaty on the Functioning of the European Union;

(i) Protocol on the enlargement of the European Union (2001);

(j) Protocol on Article 67 of the Treaty establishing the European Community (2001).

STATUTE OF THE COURT OF JUSTICE OF THE EUROPEAN UNION

10) The Protocol on the Statute of the Court of Justice of the European Union shall be amended as follows:

(a) in the preamble, first recital, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union. In the rest of the Protocol, the words "of the EC Treaty" shall be replaced by "of the Treaty on the Functioning of the European Union"; throughout the Protocol, references to articles of the EAEC Treaty which are repealed by Protocol No 2 annexed to this Treaty shall be deleted and necessary grammatical changes shall be made;

(b) in the following Articles, the word "Court", where it refers specifically to the Court of Justice, shall be replaced by "Court of Justice":

- Article 3, second paragraph, beginning of the sentence;

- Article 4, fourth paragraph

- Article 5, second paragraph;

- Article 6, first paragraph;

- Articles 10, 11, 12 and 14;

- Article 13, first paragraph, first instance

- Article 15, first sentence;

- Article 16, first paragraph;

- Article 17, first paragraph;

- Article 18, third paragraph;

- Article 19, first paragraph;

- Article 20, first paragraph;

- Article 21, first paragraph;

- Article 22, first paragraph;

- Article 23, first paragraph;

- Article 24, first paragraph, beginning of the sentence;

- Articles 25 and 27;

- Article 29, first paragraph;

- Articles 30 to 32, 35, 38, 41 and 43;

- Article 39, first paragraph

- Article 40, first paragraph

- Article 44, first paragraph, first instance;

- Article 46, first paragraph;

- Article 52: does not apply to the English version;

- Article 54: does not apply to the English version;

- Article 56: does not apply to the English version;

- Article 57: does not apply to the English version;

- Article 58: does not apply to the English version;

- Article 59: does not apply to the English version;

- Article 60: does not apply to the English version;

- Article 61: does not apply to the English version;

- Article 62: does not apply to the English version;

- Article 62a: does not apply to the English version;

- Article 62b: does not apply to the English version;

- Article 63: does not apply to the English version;

- Article 64: does not apply to the English version;

- Article 3(2) of the Annex, second sentence;

- Article 6(1) of the Annex: does not apply to the English version;

- Article 8(1) of the Annex: does not apply to the English version;

(c) in Article 2, the words "in open court" shall be replaced by "before the Court of Justice sitting in open court";

(d) in Article 3, second paragraph, and Article 4, fourth paragraph, the following sentence shall be added: "If the decision concerns a member of the General Court or of a specialised court, the Court shall decide after consulting the court concerned.";

(e) in Article 6, first paragraph, the following sentence shall be added: "If the person concerned is a member of the General Court or of a specialised court, the Court shall decide after consulting the court concerned.";

(f) in the heading of Title II, the words "of the Court of Justice" shall be added;

(g) in Article 13, first paragraph, first sentence, the words "On a proposal from" shall be replaced by "At the request of", and the words "the Council may, acting unanimously, provide for" shall be replaced by "the European Parliament and the Council may, acting in accordance with the ordinary legislative procedure, provide for";

(h) in the heading of Title III, the words "before the Court of Justice" shall be added;

(i) Article 23 shall be amended as follows:

(i) in the first paragraph, first, sentence, the words "by Article 35(1) of the EU Treaty," shall be deleted. In the second sentence, the words "and also to the Council or to the European Central Bank if the act the validity or interpretation of which is in dispute originates from one of them, and to the European Parliament and the Council if the act the validity or interpretation of which is in dispute was adopted jointly by those two institutions" shall be replaced by "and to the institution, body, office or agency of the Union which adopted the act the validity or interpretation of which is in dispute";

(ii) in the second paragraph, the words "and, where appropriate, the European Parliament, the Council and the European Central Bank, shall be entitled" shall be replaced by "and, where appropriate, the institution, body, office or agency which adopted the act the validity or interpretation of which is in dispute, shall be entitled";

(j) in Article 24, second paragraph, the words ", bodies, offices and agencies" shall be inserted after "institutions";

(k) in Article 40 the second paragraph shall be replaced by the following:

"The same right shall be open to the bodies, offices and agencies of the Union and to any other person which can establish an interest in the result of a case submitted to the Court of Justice. Natural or legal persons shall not intervene in cases between Member States, between institutions of the Union or between Member States and institutions of the Union.";

(l) in Article 42, the words ", bodies, offices and agencies" shall be inserted after "institutions";

(m) in Article 46, the following new paragraph shall be added: "This Article shall also apply to proceedings against the European Central Bank regarding non-contractual liability.";

(n) the heading of Title IV shall be replaced by "GENERAL COURT";

(o) in Article 47, the first paragraph shall be replaced by "The first paragraph of Article 9, Articles 14 and 15, the first, second, fourth and fifth paragraphs of Article 17 and Article 18 shall apply to the General Court and its members.";

(p) in Article 51, first paragraph, in the third indent of point (a), the reference to the third indent of Article 202 shall be replaced by a reference to the second paragraph of Article 249 , and the reference in point (b) to Article 11a shall be replaced by a reference to the first paragraph of Article 280 F. In the second paragraph, the words "or by the European Central Bank" shall be deleted;

(q) Article 64 shall be amended as follows:

(i) the following new first paragraph shall be inserted:

"The rules governing the language arrangements applicable at the Court of Justice of the European Union shall be laid down by a regulation of the Council acting unanimously. This regulation shall be adopted either at the request of the Court of Justice and after consultation of the Commission and the European Parliament, or on a proposal from the Commission and after consultation of the Court of Justice and of the European Parliament.";

(ii) in the first sentence of the first paragraph which shall become the second paragraph, the words "Until the rules governing the language arrangements applicable at the Court of Justice and the Court of First Instance have been adopted in this Statute" shall be replaced by "Until those rules have been adopted"; the second sentence shall be replaced by the following: "By way of derogation from Articles 223 and 224 of the Treaty on the Functioning of the European Union, those provisions may only be amended or repealed with the unanimous consent of the Council.";

(r) in Annex I to the Protocol, Article 3(1), second sentence, the words "Civil Service" shall be inserted before "Tribunal"; in paragraphs 2 and 3, the words "by a qualified majority" shall be deleted;

(s) (Does not apply to the English version.).

STATUTE OF THE ESCB AND OF THE ECB

11) The Protocol on the Statute of the European System of Central Banks and of the European Central Bank shall be amended as follows:

(a) in the preamble, first recital, the reference to Article 8 of the Treaty establishing the European Community shall be replaced by a reference to the second paragraph of Article 107 of the Treaty on the Functioning of the European Union;

(b) The title of Chapter I shall be replaced by the following: "THE EUROPEAN SYSTEM OF CENTRAL BANKS";

(c) Article 1.1 shall be split at the semi-colon into two unnumbered subparagraphs. The first subparagraph shall be replaced by the following: "In accordance with Article 245a(1) of the Treaty on the Functioning of the European Union, the European Central Bank (ECB) and the national central banks shall constitute the European System of Central Banks (ESCB). The ECB and the national central banks of those Member States whose currency is the euro shall constitute the Eurosystem."; at the beginning of the second subparagraph, the words "they shall perform" shall be replaced by "The ESCB and the ECB shall perform";

(d) Article 1.2 shall be deleted;

(e) in Article 2, the words "In accordance with Article 105(1) of this Treaty" shall be replaced by "In accordance with Article 105(1) and Article 245a(2) of the Treaty on the Functioning of the European Union";

(f) in the second indent of Article 3.1, the words "Article 111 of this Treaty" shall be replaced by "Article 188 O of that Treaty";

(g) in Article 4, point (b), the word "appropriate" shall be deleted;

(h) at the beginning of Article 9.1, the words "in accordance with Article 107(2) of this Treaty" shall be replaced by "in accordance with Article 245a(3) of the Treaty on the Functioning of the European Union";

(i) Article 10 shall be amended as follows:

(i) in Article 10.1, the words "of the Member States whose currency is the euro" shall be inserted at the end;

(ii) in Article 10.2, first indent, at the end of the first sentence, the words "Member States which have adopted the euro" shall be replaced by "Member States whose currency is the euro"; at the end of the third subparagraph, the words "under Articles 10.3, 10.6 and 41.2" shall be replaced by "under Articles 10.3, 40.2 and 40.3";

(iii) Article 10.6 shall be deleted;

(j) in Article 11.2, first subparagraph, the words "shall be appointed from among persons of recognised standing and professional experience in monetary or banking matters by common accord of the governments of the Member States at the level of Heads of State or Government" shall be replaced by "shall be appointed by the European Council, acting by a qualified majority, from among persons of recognised standing and professional experience in monetary or banking matters";

(k) in Article 14.1, the words ", at the latest at the date of the establishment of the ESCB," shall be deleted;

(l) in Article 16, first sentence, the word "euro" shall be inserted before "banknotes";

(m) in Article 18.1, first indent, the words "whether in Community or non-Community currencies" shall be replaced by "whether in euro or other currencies";

(n) in Article 25.2, the words "any decision of the Council" shall be replaced by "any regulation of the Council";

(o) in Article 28.1, the words ", which shall become operational upon its establishment," shall be deleted;

(p) in Article 29.1, the introductory wording shall be replaced by the following: "The key for subscription of the ECB's capital, fixed for the first time in 1998 when the ESCB was established, shall be determined by assigning to each national central bank a weighting in this key equal to the sum of:"; the second subparagraph shall be replaced by the following: "The percentages shall be rounded up or down to the nearest multiple of 0,0001 percentage points.";

(q) in Article 32.2, the words "Subject to Article 32.3," shall be deleted and in Article 32.3 the words ", after the start of the third stage," shall be replaced by "after the introduction of the euro";

(r) in Article 34.2, the first four subparagraphs shall be deleted;

(s) in Article 35.6, the words "the Treaties and" shall be inserted before "this Statute";

(t) Article 37 shall be repealed and the remaining Articles shall be renumbered accordingly;

(u) Article 41, renumbered 40, shall be amended as follows:

(i) in Article 41.1, renumbered 40.1, the words "may be amended by the Council, acting either by a qualified majority on a recommendation" shall be replaced by "may be amended by the European Parliament and the Council, acting in accordance with the ordinary legislative procedure either on a recommendation", the word "unanimously" shall be deleted, and the last sentence shall be deleted;

(ii) the following new Article 40.2 shall be inserted, and the current paragraph 41.2 shall be renumbered 40.3:

"40.2. Article 10.2 may be amended by a decision of the European Council, acting unanimously, either on a recommendation from the European Central Bank and after consulting the European Parliament and the Commission, or on a recommendation from the Commission and after consulting the European Parliament and the European Central Bank. These amendments shall not enter into force until they are approved by the Member States in accordance with their respective constitutional requirements.";

(v) in Article 42, renumbered 41, the words "immediately after the decision on the date for the beginning of the third stage," shall be deleted and the words "acting by a qualified majority" shall be deleted;

(w) in Articles 43.1, 43.2 and 43.3, renumbered Articles 42.1, 42.2 and 42.3 respectively, the reference to Article 122 shall be replaced by a reference to Article 116a; in Article 43.3, renumbered 42.3, the reference to Articles 34.2 and 50 shall be deleted and in Article 43.4, renumbered 42.4, the reference to Article 10.1 shall be replaced by a reference to Article 10.2;

(x) in Article 44, renumbered 43, first paragraph, the words "those tasks of the EMI" shall be replaced by "the former tasks of the EMI referred to in Article 118a(2) of the Treaty on the Functioning of the European Union" and the words "in the third stage" shall be replaced by "after the introduction of the euro"; in the second paragraph, the reference to Article 122 shall be replaced by a reference to Article 117a;

(y) in Article 47.3, renumbered 46.3, the words "against the currencies, or the single currency, of the Member States without a derogation," shall be replaced by "against the euro";

(z) Articles 50 and 51 shall be repealed and the remaining Articles shall be renumbered accordingly;

(aa) in Article 52, renumbered 49, the words "in accordance with Article 116a(3) of the Treaty on the Functioning of the European Union" shall be inserted after the words "Following the irrevocable fixing of exchange rates".

(ab) (Does not apply to the English version.).

STATUTE OF THE EIB

12) The Protocol on the Statute of the European Investment Bank shall be amended as follows:

(a) throughout the Protocol, references to an Article of "the Treaty" shall be replaced by references to an Article of "the Treaty on the Functioning of the European Union" and references to "this Treaty" shall be replaced by references to an Article of "the Treaty on the Functioning of the European Union" in Article 1 (first occurrence), Article 3, Article 18 (renumbered 16), Article 19 (renumbered 17), and Article 25 (renumbered 23);

(b) at the end of the preamble, the words "to this Treaty" shall be replaced by "to the Treaty on European Union and to the Treaty on the Functioning of the European Union";

(c) in Article 1, the second paragraph shall be deleted;

(d) in Article 3, the introductory phrase shall be replaced by "In accordance with Article 266 of the Treaty on the Functioning of the European Union, the Bank's members shall be the Member States" and the list of States shall be deleted;

(e) in Article 4(1), the figure for the capital of the Bank shall be replaced by "EUR 164808169000", the figures for the following Member States shall read as follows and the second subparagraph shall be deleted;

Poland | 3411263500 |

Czech Republic | 1258785500 |

Hungary | 1190868500 |

Romania | 863514500 |

Slovakia | 428490500 |

Slovenia | 397815000 |

Bulgaria | 290917500 |

Lithuania | 249617500 |

Cyprus | 183382000 |

Latvia | 152335000 |

Estonia | 117640000 |

Malta | 69804000 |

(f) Article 5 shall be amended as follows:

(i) in paragraph 2, the following new sentence shall be added: "Cash payments shall be made exclusively in euro.";

(ii) in paragraph 3, first subparagraph, the words "towards those who have made loans to it" shall be deleted, and in the second subparagraph the words "in the currencies required by the Bank to meet these obligations" shall be deleted;

(g) Articles 6 and 7 shall be repealed and the remaining Articles shall be renumbered accordingly;

(h) Article 9, renumbered 7, shall be amended as follows:

(i) in paragraph 2, the words "with particular reference to the objectives to be pursued as progress is made in the attainment of the common market" shall be replaced by "in accordance with the Union's objectives";

(ii) in paragraph 3, the text of point (b) shall be replaced by "(b) for the purposes of Article 9(1), determine the principles applicable to financing operations undertaken within the framework of the Bank's task;", the text of point (d) shall be replaced by "take decisions in respect of the granting of finance for investment operations to be carried out, in whole or in part, outside the territories of the Member States in accordance with Article 16(1);" and, in point (g), the word "other" shall be inserted before "powers" and the words "provided in Articles 4, 7, 14, 17, 26 and 27" shall be replaced by "conferred by this Statute";

(i) Article 10, renumbered 8, shall be amended as follows:

(i) the third sentence shall be deleted;

(ii) the following two new paragraphs shall be inserted:

"A qualified majority shall require eighteen votes in favour and 68 % of the subscribed capital.

Abstentions by members present in person or represented shall not prevent the adoption of decisions requiring unanimity."

(j) Article 11, renumbered 9, shall be amended as follows:

(i) paragraph 1, first subparagraph, shall be replaced by the following:

"1. The Board of Directors shall take decisions in respect of granting finance, in particular in the form of loans and guarantees, and raising loans; it shall fix the interest rates on loans granted and the commission and other charges. It may, on the basis of a decision taken by a qualified majority, delegate some of its functions to the Management Committee. It shall determine the terms and conditions for such delegation and shall supervise its execution.

The Board of Directors shall see that the Bank is properly run; it shall ensure that the Bank is managed in accordance with the provisions of the Treaties and of this Statute and with the general directives laid down by the Board of Governors.";

(ii) in paragraph 2, the sixth subparagraph shall be replaced by the following:

"The Rules of Procedure shall lay down the arrangements for participating in the meetings of the Board of Directors and the provisions applicable to alternates and co-opted experts."

(iii) in paragraph 5, second sentence, the words ", acting unanimously," shall be deleted.

(k) Article 13, renumbered 11, shall be amended as follows:

(i) in paragraph 3, second subparagraph, the words "the granting of loans" shall be replaced by "the granting of finance, in particular in the form of loans";

(ii) in paragraph 4, the words "on proposals for raising loans or granting loans and guarantees" shall be replaced by "on proposals for raising loans or granting finance, in particular in the form of loans and guarantees";

(iii) in paragraph 7, first sentence, the words "officials and other employees" shall be replaced by "staff". The following sentence shall be added at the end: "The Rules of Procedure shall determine which organ is competent to adopt the provisions applicable to staff.";

(l) Article 14, renumbered 12, shall be amended as follows:

(i) in paragraph 1, the words "three members" shall be replaced by "six members" and the words "shall annually verify that the operations of the Bank have been conducted and its books kept in a proper manner" shall be replaced by "shall verify that the activities of the Bank conform to best banking practice and shall be responsible for the auditing of its accounts";

(ii) paragraph 2 shall be replaced by the following three new paragraphs:

"2. The Committee referred to in paragraph 1 shall annually ascertain that the operations of the Bank have been conducted and its books kept in a proper manner. To this end, it shall verify that the Bank's operations have been carried out in compliance with the formalities and procedures laid down by this Statute and the Rules of Procedure.

3. The Committee referred to in paragraph 1 shall confirm that the financial statements, as well as any other financial information contained in the annual accounts drawn up by the Board of Directors, give a true and fair view of the financial position of the Bank in respect of its assets and liabilities, and of the results of its operations and its cash flows for the financial year under review.

4. The Rules of Procedure shall specify the qualifications required of the members of the Committee and lay down the terms and conditions for the Committee's activity."

(m) in Article 15, renumbered 13, the words "the bank of issue" shall be replaced by "the national central bank";

(n) Article 18, renumbered 16, shall be amended as follows:

(i) in the first subparagraph of paragraph 1, the words "shall grant loans" shall be replaced by "shall grant finance, in particular in the form of loans and guarantees", the words "investment projects" shall be replaced by "investments" and the word "European" shall be deleted; in the second subparagraph, the words "by way of derogation authorised by the Board of Governors, acting unanimously" shall be replaced by "by decision of the Board of Governors, acting by a qualified majority", the words "loans for investment projects" shall be replaced by "financing for investment" and the word "European" shall be deleted;

(ii) in paragraph 3, the words "the project" shall be replaced by "the investment", the following shall be added at the end of the sentence: ", or on the financial strength of the debtor" and the following new second subparagraph shall be added:

"Furthermore, in accordance with the principles established by the Board of Governors pursuant to Article 7(3)(b), and where the implementation of projects provided for in Article 267 of the Treaty on the Functioning of the European Union so requires, the Board of Directors shall, acting by a qualified majority, lay down the terms and conditions of any financing operation presenting a specific risk profile and thus considered to be a special activity."

(iii) paragraph 5 shall be replaced by the following:

"5. The aggregate amount outstanding at any time of loans and guarantees granted by the Bank shall not exceed 250 % of its subscribed capital, reserves, non-allocated provisions and profit and loss account surplus. The latter aggregate amount shall be reduced by an amount equal to the amount subscribed (whether or not paid in) for any equity participation of the Bank.

The amount of the Bank's disbursed equity participations shall not exceed at any time an amount corresponding to the total of its paid-in subscribed capital, reserves, non-allocated provisions and profit and loss account surplus.

By way of exception, the special activities of the Bank, as decided by the Board of Governors and the Board of Directors in accordance with paragraph 3, will have a specific allocation of reserve.

This paragraph shall also apply to the consolidated accounts of the Bank."

(o) in paragraph 1 of Article 19, renumbered 17, the words "commission on guarantees" shall be replaced by "commission and other charges" and the words "and risks" shall be inserted after "to cover its expenses"; in paragraph 2, the words "the project" shall be replaced by "the investment";

(p) Article 20, renumbered 18, shall be amended as follows:

(i) in the introductory phrase, the words "loan and guarantee operations" shall be replaced by "financing operations";

(ii) in paragraph 1, point (a), the words "projects carried out by" shall be replaced by "investments by", the words "in other cases" shall be replaced by "in the case of other investments" and the words "in which the project is carried out" shall be replaced by "in which the investment is made"; in point (b), the words "of the project" shall be replaced by "of the investment";

(iii) in paragraph 2, the following new second subparagraph shall be added:

"However, in accordance with the principles determined by the Board of Governors pursuant to Article 7(3)(b), and where the implementation of operations provided for in Article 267 of the Treaty on the Functioning of the European Union so requires, the Board of Directors shall, acting by a qualified majority, lay down the terms and conditions for taking an equity participation in a commercial undertaking, normally as a complement to a loan or a guarantee, insofar as this is required to finance an investment or programme.";

(iv) in paragraph 6, the words "any project" shall be replaced by "any investment";

(v) the following new paragraph 7 shall be added:

"7. As a complement to its lending activity, the Bank may provide technical assistance services in accordance with the terms and conditions laid down by the Board of Governors, acting by a qualified majority, and in compliance with this Statute."

(q) Article 21, renumbered 19, shall be amended as follows:

(i) paragraph 1 shall be replaced by the following:

"1. Any undertaking or public or private entity may apply directly to the Bank for financing. Applications to the Bank may also be made either through the Commission or through the Member State on whose territory the investment will be carried out.";

(ii) in paragraph 2, the words "the project" shall be replaced by "the investment";

(iii) in paragraph 3 and in the first sentence of paragraph 4, the words "applications for loans or guarantees" shall be replaced by "financing operations";

(iv) in paragraph 4, the reference in the first sentence to Article 20 shall be replaced by a reference to Articles 18 and 20, renumbered 16 and 18 respectively; in the second sentence, the words "granting the loan or guarantee" shall be replaced by "the financing operation" and the words "draft contract" shall be replaced by "corresponding proposal"; in the last sentence, the words "loan or guarantee" shall be replaced by "finance";

(v) in paragraphs 5, 6 and 7, the words "loan or guarantee" shall be replaced by "finance";

(vi) the following new paragraph 8 shall be added:

"8. In the event that a financing operation relating to an approved investment has to be restructured in order to safeguard the Bank's rights and interests, the Management Committee shall take without delay the emergency measures which it deems necessary, subject to immediate reporting thereon to the Board of Directors."

(r) in Article 22, renumbered 20, the word "international" shall be deleted from paragraph 1 and paragraph 2 shall be replaced by the following:

"2. The Bank may borrow on the capital markets of the Member States in accordance with the legal provisions applying to those markets.

The competent authorities of a Member State with a derogation within the meaning of Article 116a(1) of the Treaty on the Functioning of the European Union may oppose this only if there is reason to fear serious disturbances on the capital market of that State.";

(s) in paragraph 1(b) of Article 23, renumbered 21, the words "issued by itself or by those who have borrowed from it" shall be deleted and in paragraph 3 the words "the bank of issue" shall be replaced by "the national central bank";

(t) in Article 25, renumbered 23, the words "a Member State whose currency is not the euro" shall be inserted to replace "one Member State" in paragraph 1, first sentence, and to replace "a Member State" in paragraph 2; in paragraph 1, first sentence, the words "into the currency of another Member State" shall be deleted, in paragraph 3 the words "in gold or convertible currency and" shall be deleted and in paragraph 4 the word "projects" shall be replaced by "investment";

(u) in Article 26, renumbered 24, the words ", to grant its special loans" shall be deleted;

(v) in paragraph 2 of Article 27, renumbered 25, the following sentence shall be added at the end: "It shall ensure that the rights of the members of staff are safeguarded.";

(w) in the first paragraph of Article 29, renumbered 27, the words "of the European Union" shall be added at the end and the following sentence shall be added: "The Bank may provide for arbitration in any contract."; in the second paragraph the words "or provide for arbitration" shall be deleted;

(x) Article 30, renumbered 28, shall be replaced by the following:

"Article 28

1. The Board of Governors may, acting unanimously, decide to establish subsidiaries or other entities, which shall have legal personality and financial autonomy.

2. The Board of Governors shall establish the Statutes of the bodies referred to in paragraph 1. The Statutes shall define, in particular, their objectives, structure, capital, membership, the location of their seat, their financial resources, means of intervention and auditing arrangements, as well as their relationship with the organs of the Bank.

3. The Bank shall be entitled to participate in the management of these bodies and contribute to their subscribed capital up to the amount determined by the Board of Governors, acting unanimously.

4. The Protocol on the privileges and immunities of the European Union shall apply to the bodies referred to in paragraph 1 insofar as they are incorporated under Union law, to the members of their organs in the performance of their duties as such and to their staff, under the same terms and conditions as those applicable to the Bank.

Those dividends, capital gains or other forms of revenue stemming from such bodies to which the members, other than the European Union and the Bank, are entitled, shall however remain subject to the fiscal provisions of the applicable legislation.

5. The Court of Justice of the European Union shall, within the limits hereinafter laid down, have jurisdiction in disputes concerning measures adopted by organs of a body incorporated under Union law. Proceedings against such measures may be instituted by any member of such a body in its capacity as such or by Member States under the conditions laid down in Article 230 of the Treaty on the Functioning of the European Union.

6. The Board of Governors may, acting unanimously, decide to admit the staff of bodies incorporated under Union law to joint schemes with the Bank, in compliance with the respective internal procedures."

PROTOCOL ON THE LOCATION OF SEATS

13) The Protocol on the location of the seats of the institutions and of certain bodies and departments of the European Communities and of Europol shall be amended as follows:

(a) in the title of the Protocol, and in the preamble, the words ", offices, agencies" shall be inserted before "and departments"; in the title of the Protocol words "and of Europol" shall be deleted;

(b) in the first citation in the preamble, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union and the reference to Article 77 of the Treaty establishing the European Coal and Steel Community shall be deleted; the second citation shall be deleted;

(c) in point (d), the reference to the Court of First Instance shall be deleted and the words "their seat" shall be replaced by "its seat";

(d) in point (i), the reference to the European Monetary Institute shall be deleted and the words "their seat" shall be replaced by "its seat".

PROTOCOL ON THE PRIVILEGES AND IMMUNITIES OF THE UNION

14) The Protocol on the privileges and immunities of the European Communities shall be amended as follows:

(a) in the first recital in the preamble, the reference to Article 28 of the Treaty establishing a Single Council and a Single Commission of the European Communities shall be replaced by a reference to Article 291 of the Treaty on the Functioning of the European Union and to Article 191 of the Treaty establishing the European Atomic Energy Community, abbreviated as the EAEC, and the words "these Communities and the European Investment Bank" shall be replaced by "the European Union and the EAEC";

(b) Article 5 shall be repealed and the remaining Articles shall be renumbered accordingly;

(c) In Article 7, renumbered 6, paragraph 2 shall be deleted and paragraph 1 shall not be numbered;

(d) in Article 13, renumbered 12, the words "in accordance with the conditions and procedure laid down by the Council, acting on a proposal from the Commission" shall be replaced by "in accordance with the conditions and procedure laid down by the European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure and after consultation of the institutions concerned";

(e) in Article 15, renumbered 14, the opening words "The Council shall, acting unanimously on a proposal from the Commission, lay down" shall be replaced by "The European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure and after consultation of the institutions concerned, shall lay down";

(f) in Article 16, renumbered 15, the opening words "The Council shall, acting on a proposal from the Commission" shall be replaced by "The European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall";

(g) in Article 21, renumbered 20, after "the Advocates-General," the words "the Registrar" shall be replaced by "the Registrars" and the words "and to the Members and Registrar of the Court of First Instance" shall be deleted;

(h) in Article 23, renumbered 22, the last paragraph shall be deleted;

(i) after the closing formula, "IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Protocol", the date and the list of signatories shall be deleted.

PROTOCOL ON THE CONVERGENCE CRITERIA

15) The Protocol on the convergence criteria referred to in Article 121 of the Treaty establishing the European Community shall be amended as follows:

(a) in the title of the Protocol, the words "referred to in Article 121 of the Treaty establishing the European Community" shall be deleted;

(b) in the first recital, the words "in taking decisions on the passage to the third stage of economic and monetary union" shall be replaced by "in taking decisions to end the derogations of those Member States with a derogation";

(c) in Article 3, second sentence, the words "against another Member State's currency" shall be replaced by "against the euro";

(d) in Article 6, the words "the EMI or" shall be deleted;

(e) (Does not apply to the English version.).

PROTOCOL ON CERTAIN PROVISIONS RELATING TO THE UNITED KINGDOM

16) The Protocol on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland shall be amended as follows:

(a) throughout the Protocol, the words "to move to the third stage of economic and monetary union" and "to move to the third stage" shall be replaced by "to adopt the euro"; the words "moves to the third stage" shall be replaced by "adopts the euro"; the words "in the third stage" shall be replaced by "after the introduction of the euro";

(b) in the preamble, the following new second recital shall be inserted:

"GIVEN that on 16 October 1996 and 30 October 1997 the United Kingdom government notified the Council of its intention not to participate in the third stage of economic and monetary union,";

(c) in paragraph 1, the first and third subparagraphs shall be deleted;

(d) paragraph 2 shall be replaced by the following:

"2. In view of the notice given to the Council by the United Kingdom government on 16 October 1996 and 30 October 1997, paragraphs 3 to 8 and 10 shall apply to the United Kingdom.";

(e) paragraph 3 shall be deleted and the remaining paragraphs shall be renumbered accordingly;

(f) paragraph 5, renumbered 4, shall be amended as follows:

(i) in the first sentence, the list of Articles shall be replaced by "Articles 245a(2), with the exception of the first and last sentences thereof, 245a(5), 97b, second paragraph, 104(1), (9) and (11), 105(1) to (5), 106, 108, 109, 110 and 111a, 115 C, 117a(3), 188 O and 245b of the Treaty on the Functioning of the European Union";

(ii) the following new second sentence shall be inserted: "The same applies to Article 99(2) of this Treaty as regards the adoption of the parts of the broad economic policy guidelines which concern the euro area generally.";

(g) in paragraph 6, renumbered 5, the following new first subparagraph shall be inserted: "The United Kingdom shall endeavour to avoid an excessive government deficit.", and at the beginning of the following subparagraph, the words "116(4) and" shall be deleted;

(h) the first subparagraph of paragraph 7, renumbered 6, shall be replaced by the following: "6. The voting rights of the United Kingdom shall be suspended in respect of acts of the Council referred to in the Articles listed in paragraph 4 and in the instances referred to in the first subparagraph of Article 116a(4) of the Treaty on the Functioning of the European Union. For this purpose the second subparagraph of Article 116a(4) of the Treaty shall apply." In the second subparagraph, the words "Articles 112(2)b and 123(1)" shall be replaced by "Article 245b(2)b";

(i) in point (a) of paragraph 9, renumbered 8, the words "move to that stage" shall be replaced by "adopt the euro";

(j) in paragraph 10, renumbered 9, the introductory subparagraph shall be replaced by "The United Kingdom may notify the Council at any time of its intention to adopt the euro. In that event:" In point (a), the reference to Article 122(2) shall be replaced by a reference to Article 117a(1) and (2);

(k) in paragraph 11, renumbered 10, the words "Articles 101 and 116(3)" shall be replaced by "Article 101", and the words "does not move to the third stage" shall be replaced by "does not adopt the euro".

PROTOCOL ON CERTAIN PROVISIONS RELATING TO DENMARK

17) The Protocol on certain provisions relating to Denmark shall be amended as follows:

(a) in the preamble, the first recital shall be deleted, in the second recital, which shall become the first recital, the words "Danish participation in the third stage of economic and monetary union" shall be replaced by "Denmark renouncing its exemption", and the following new second recital shall be inserted: "GIVEN THAT, on 3 November 1993, the Danish Government notified the Council of its intention not to participate in the third stage of economic and monetary union,";

(b) points 1 and 3 shall be deleted and the remaining points shall be renumbered accordingly;

(c) in point 2, renumbered 1, the first sentence shall be replaced by "In view of the notice given to the Council by the Danish Government on 3 November 1993, Denmark shall have an exemption."

(d) in point 4, renumbered 2, the reference to Article 122(2) shall be replaced by a reference to Article 117a of the Treaty on the Functioning of the European Union.

SCHENGEN PROTOCOL

18) The Protocol integrating the Schengen acquis into the framework of the European Union shall be amended as follows:

(a) in the title of the Protocol, the words "integrating the Schengen acquis into" shall be replaced by "on the Schengen acquis integrated into";

(b) the preamble shall be amended as follows:

(i) at the end of the first recital, the words "are aimed at enhancing European integration and, in particular, at enabling the European Union to develop more rapidly into an area of freedom, security and justice;" shall be replaced by "have been integrated into the framework of the European Union by the Treaty of Amsterdam of 2 October 1997;";

(ii) the second recital shall be replaced by the following:

"DESIRING to preserve the Schengen acquis, as developed since the entry into force of the Treaty of Amsterdam, and to develop this acquis in order to contribute towards achieving the objective of offering citizens of the Union an area of freedom, security and justice without internal borders;";

(iii) the third recital shall be deleted;

(iv) in the fifth recital, which shall become the fourth recital, the words "are not parties to and have not signed the aforementioned agreements" shall be replaced by "do not participate in all the provisions of the Schengen acquis" and, at the end, the words "to accept some or all of the provisions thereof" shall be replaced by "to accept other provisions of this acquis in full or in part";

(v) at the end of the sixth recital, which shall become the fifth recital, the words "and that those provisions should only be used as a last resort" shall be deleted;

(vi) at the end of the seventh recital, which shall become the sixth recital, the words "both States having confirmed their intention to become bound by the provisions mentioned above, on the basis of the Agreement signed in Luxembourg on 19 December 1996" shall be replaced by "both States being bound by the provisions of the Nordic passport union, together with the Nordic States which are members of the European Union";

(c) in Article 1, the first sentence shall be replaced by the following:

"The Kingdom of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland and the Kingdom of Sweden shall be authorised to establish closer cooperation among themselves in areas covered by provisions defined by the Council which constitute the Schengen acquis.";

(d) Article 2 shall be replaced by the following:

"Article 2

The Schengen acquis shall apply to the Member States referred to in Article 1, without prejudice to Article 3 of the Act of Accession of 16 April 2003 or to Article 4 of the Act of Accession of 25 April 2005. The Council will substitute itself for the Executive Committee established by the Schengen agreements.";

(e) Article 3 shall be replaced by the following:

"Article 3

The participation of Denmark in the adoption of measures constituting a development of the Schengen acquis, as well as the implementation of these measures and their application to Denmark, shall be governed by the relevant provisions of the Protocol on the position of Denmark.";

(f) in Article 4, first paragraph, the words "which are not bound by the Schengen acquis," shall be deleted;

(g) Article 5 shall be replaced by the following:

"Article 5

1. Proposals and initiatives to build upon the Schengen acquis shall be subject to the relevant provisions of the Treaties.

In this context, where either Ireland or the United Kingdom has not notified the Council in writing within a reasonable period that it wishes to take part, the authorisation referred to in Article 280 D of the Treaty on the Functioning of the European Union shall be deemed to have been granted to the Member States referred to in Article 1 and to Ireland or the United Kingdom where either of them wishes to take part in the areas of cooperation in question.

2. Where either Ireland or the United Kingdom is deemed to have given notification pursuant to a decision under Article 4, it may nevertheless notify the Council in writing, within 3 months, that it does not wish to take part in such a proposal or initiative. In that case, Ireland or the United Kingdom shall not take part in its adoption. As from the latter notification, the procedure for adopting the measure building upon the Schengen acquis shall be suspended until the end of the procedure set out in paragraphs 3 or 4 or until the notification is withdrawn at any moment during that procedure.

3. For the Member State having made the notification referred to in paragraph 2, any decision taken by the Council pursuant to Article 4 shall, as from the date of entry into force of the proposed measure, cease to apply to the extent considered necessary by the Council and under the conditions to be determined in a decision of the Council acting by a qualified majority on a proposal from the Commission. That decision shall be taken in accordance with the following criteria: the Council shall seek to retain the widest possible measure of participation of the Member State concerned without seriously affecting the practical operability of the various parts of the Schengen acquis, while respecting their coherence. The Commission shall submit its proposal as soon as possible after the notification referred to in paragraph 2. The Council shall, if needed after convening two successive meetings, act within four months of the Commission proposal.

4. If, by the end of the period of four months, the Council has not adopted a decision, a Member State may, without delay, request that the matter be referred to the European Council. In that case, the European Council shall, at its next meeting, acting by a qualified majority on a proposal from the Commission, take a decision in accordance with the criteria referred to in paragraph 3.

5. If, by the end of the procedure set out in paragraphs 3 or 4, the Council or, as the case may be, the European Council has not adopted its decision, the suspension of the procedure for adopting the measure building upon the Schengen acquis shall be terminated. If the said measure is subsequently adopted any decision taken by the Council pursuant to Article 4 shall, as from the date of entry into force of that measure, cease to apply for the Member State concerned to the extent and under the conditions decided by the Commission, unless the said Member State has withdrawn its notification referred to in paragraph 2 before the adoption of the measure. The Commission shall act by the date of this adoption. When taking its decision, the Commission shall respect the criteria referred to in paragraph 3.";

(h) at the end of the first sentence of the first paragraph of Article 6, the words "on the basis of the Agreement signed in Luxembourg on 19 December 1996" shall be deleted;

(i) Article 7 shall be repealed and Article 8 shall be renumbered 7;

(j) the Annex shall be repealed.

PROTOCOL ON THE APPLICATION OF ARTICLE 22A TO THE UNITED KINGDOM AND TO IRELAND

19) The Protocol on the application of certain aspects of Article 14 of the Treaty establishing the European Community to the United Kingdom and to Ireland shall be amended as follows:

(a) in the title of the Protocol, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union;

(b) in Article 1, first paragraph, point (a), the words "States which are Contracting Parties to the Agreement on the European Economic Area" shall be replaced by "Member States";

(c) in Article 1, first and second paragraphs, in Article 2 and in Article 3, second paragraph, the reference to Article 14 shall be replaced by a reference to Articles 22a and 62 of the Treaty on the Functioning of the European Union.

PROTOCOL ON THE POSITION OF THE UNITED KINGDOM AND IRELAND IN RESPECT OF THE AREA OF FREEDOM, SECURITY AND JUSTICE

20) The Protocol on the position of the United Kingdom and Ireland shall be amended as follows:

(a) at the end of the title of the Protocol, the words "in respect of the area of freedom, security and justice" shall be added;

(b) in the second recital of the preamble, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union;

(c) in Article 1, first sentence, the words "pursuant to Title IV of the Treaty establishing the European Community" shall be replaced by "pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union"; the second sentence shall be deleted and the following paragraph shall be added:

"For the purposes of this Article, a qualified majority shall be defined in accordance with Article 205(3) of the Treaty on the Functioning of the European Union.";

(d) at the beginning of Article 2 the words "provisions of Title IV of the Treaty establishing the European Community" shall be replaced by "provisions of Title IV of Part Three of the Treaty on the Functioning of the European Union"; at the end of the Article, the words "acquis communautaire" shall be replaced by "Community or Union acquis";

(e) Article 3(1) shall be amended as follows:

(i) in the first sentence of the first subparagraph, the words "pursuant to Title IV of the Treaty establishing the European Community" shall be replaced by "pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union" and the second sentence shall be deleted;

(ii) the following new subparagraphs shall be added after the second subparagraph:

"Measures adopted pursuant to Article 61 C of the Treaty on the Functioning of the European Union shall lay down the conditions for the participation of the United Kingdom and Ireland in the evaluations concerning the areas covered by Title IV of Part Three of that Treaty.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 205(3) of the Treaty on the Functioning of the European Union.";

(f) in Articles 4, 5 and 6, the words "Title IV of the Treaty establishing the European Community" shall be replaced by "Title IV of Part Three of the Treaty on the Functioning of the European Union";

(g) in the second sentence of Article 4, the reference to Article 11(3) shall be replaced by a reference to Article 280 F(1) of the Treaty on the Functioning of the European Union;

(h) the following new Article 4a shall be inserted:

"Article 4a

1. The provisions of this Protocol apply for the United Kingdom and Ireland also to measures proposed or adopted pursuant to Title IV of Part III of the Treaty on the Functioning of the European Union amending an existing measure by which they are bound.

2. However, in cases where the Council, acting on a proposal from the Commission, determines that the non-participation of the United Kingdom or Ireland in the amended version of an existing measure makes the application of that measure inoperable for other Member States or the Union, it may urge them to make a notification under Article 3 or 4. For the purposes of Article 3 a further period of two months starts to run as from the date of such determination by the Council.

If at the expiry of that period of two months from the Council's determination the United Kingdom or Ireland has not made a notification under Article 3 or Article 4, the existing measure shall no longer be binding upon or applicable to it, unless the Member State concerned has made a notification under Article 4 before the entry into force of the amending measure. This shall take effect from the date of entry into force of the amending measure or of expiry of the period of two months, whichever is the later.

For the purpose of this paragraph, the Council shall, after a full discussion of the matter, act by a qualified majority of its members representing the Member States participating or having participated in the adoption of the amending measure. A qualified majority of the Council shall be defined in accordance with Article 205(3)(a) of the Treaty on the Functioning of the European Union.

3. The Council, acting by a qualified majority on a proposal from the Commission, may determine that the United Kingdom or Ireland shall bear the direct financial consequences, if any, necessarily and unavoidably incurred as a result of the cessation of its participation in the existing measure.

4. This Article shall be without prejudice to Article 4.";

(i) at the end of Article 5, the following shall be added: ", unless all members of the Council, acting unanimously after consulting the European Parliament, decide otherwise";

(j) In Article 6, the words "the relevant provisions of that Treaty, including Article 68," shall be replaced by "the relevant provisions of the Treaties";

(k) the following new Article 6a shall be inserted:

"Article 6a

The United Kingdom and Ireland shall not be bound by the rules laid down on the basis of Article 16 B of the Treaty on the Functioning of the European Union which relate to the processing of personal data by the Member States when carrying out activities which fall within the scope of Chapter 4 or Chapter 5 of Title IV of Part Three of that Treaty where the United Kingdom and Ireland are not bound by the rules governing the forms of judicial cooperation in criminal matters or police cooperation which require compliance with the provisions laid down on the basis of Article 16 B.";

(l) in Article 7, the words "Articles 3 and 4" shall be replaced by "Articles 3, 4 and 4a" and the words "Protocol integrating the Schengen acquis into" shall be replaced by "Protocol on the Schengen acquis integrated into";

(m) in Article 8, the words "the President of" shall be deleted.;

(n) the following new Article 9 shall be added:

"Article 9

With regard to Ireland, this Protocol shall not apply to Article 61 H of the Treaty on the Functioning of the European Union.".

PROTOCOL ON THE POSITION OF DENMARK

21) The Protocol on the position of Denmark shall be amended as follows:

(a) the preamble shall be amended as follows:

(i) the following three new recitals shall be inserted after the second recital:

"CONSCIOUS of the fact that a continuation under the Treaties of the legal regime originating in the Edinburgh decision will significantly limit Denmark's participation in important areas of cooperation of the Union, and that it would be in the best interest of the Union to ensure the integrity of the acquis in the area of freedom, security and justice;

WISHING therefore to establish a legal framework that will provide an option for Denmark to participate in the adoption of measures proposed on the basis of Title IV of Part Three of the Treaty on the Functioning of the European Union and welcoming the intention of Denmark to avail itself of this option when possible in accordance with its constitutional requirements;

NOTING that Denmark will not prevent the other Member States from further developing their cooperation with respect to measures not binding on Denmark;";

(ii) in the penultimate recital, the words "Protocol integrating the Schengen acquis into" shall be replaced by "Protocol on the Schengen acquis integrated into";

(b) in Article 1, first paragraph, first sentence, the words "Title IV of the Treaty establishing the European Community" shall be replaced by "Title IV of Part Three of the Treaty on the Functioning of the European Union";

(c) in Article 1, the second sentence of the first paragraph shall be deleted and the following new paragraph shall be added:

"For the purposes of this Article, a qualified majority shall be defined in accordance with Article 205(3) of the Treaty on the Functioning of the European Union.";

(d) Article 2 shall be replaced by the following:

"Article 2

None of the provisions of Title IV of Part Three of the Treaty on the Functioning of the European Union, no measure adopted pursuant to that Title, no provision of any international agreement concluded by the Union pursuant to that Title, and no decision of the Court of Justice of the European Union interpreting any such provision or measure or any measure amended or amendable pursuant to that Title shall be binding upon or applicable in Denmark; and no such provision, measure or decision shall in any way affect the competences, rights and obligations of Denmark; and no such provision, measure or decision shall in any way affect the Community or Union acquis nor form part of Union law as they apply to Denmark. In particular, acts of the Union in the field of police cooperation and judicial cooperation in criminal matters adopted before the entry into force of the Treaty of Lisbon which are amended shall continue to be binding upon and applicable to Denmark unchanged.";

(e) the following new Article 2a shall be inserted:

"Article 2a

Article 2 of this Protocol shall also apply in respect of those rules laid down on the basis of Article 16 B of the Treaty on the Functioning of the European Union which relate to the processing of personal data by the Member States when carrying out activities which fall within the scope of Chapter 4 or Chapter 5 of Title IV of Part Three of that Treaty.";

(f) Article 4 shall become Article 6;

(g) Article 5, renumbered 4, shall be amended as follows:

(i) throughout the Article, the word "decision" shall be replaced by "measure";

(ii) in paragraph 1, the words "under the provisions of Title IV of the Treaty establishing the European Community" shall be replaced by "covered by this Part" and the words "Member States referred to in Article 1 of the Protocol integrating the Schengen acquis into the framework of the European Union as well as Ireland or the United Kingdom if those Member States take part in the areas of cooperation in question" shall be replaced by "Member States bound by the measure";

(iii) in paragraph 2, the words "the Member States referred to in Article 1 of the Protocol integrating the Schengen acquis into the framework of the European Union will consider" shall be replaced by "the Member States bound by that measure and Denmark will consider";

(h) Article 6, renumbered 5, shall be amended as follows:

(i) in the first sentence, the words "in the field of Articles 13(1) and 17 of the Treaty on European Union" shall be replaced by "pursuant to Article 13(1), Article 28 A and Articles 28 B to 28 E of the Treaty on European Union" and the closing words ", but will not prevent the development of closer cooperation between Member States in this area" shall be deleted;

(ii) the following new third sentence shall be inserted: "Denmark will not prevent the other Member States from further developing their cooperation in this area.";

(iii) at the end of the new fourth sentence, the following shall be added: ", nor to make military capabilities available to the Union";

(iv) the following two new paragraphs shall be added:

"The unanimity of the members of the Council, with the exception of the representative of the government of Denmark, shall be necessary for the acts of the Council which must be adopted unanimously.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 205(3) of the Treaty on the Functioning of the European Union.";

(i) following the heading "PART III" an Article 6 shall be inserted, with the wording of Article 4;

(j) a heading "PART IV" shall be inserted before Article 7;

(k) the following new Article 8 shall be inserted:

"Article 8

1. At any time and without prejudice to Article 7, Denmark may, in accordance with its constitutional requirements, notify the other Member States that, with effect from the first day of the month following the notification, Part I shall consist of the provisions in the Annex. In that case Articles 5 to 8 shall be renumbered in consequence.

2. Six months after the date on which the notification referred to in paragraph 1 takes effect all Schengen acquis and measures adopted to build upon this acquis, which until then have been binding on Denmark as obligations under international law, shall be binding upon Denmark as Union law.";

(l) the following new Annex shall be added to the Protocol:

"ANNEX

Article 1

Subject to Article 3, Denmark shall not take part in the adoption by the Council of measures proposed pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union. The unanimity of the members of the Council, with the exception of the representative of the government of Denmark, shall be necessary for the acts of the Council which must be adopted unanimously.

For the purposes of this Article, a qualified majority shall be defined in accordance with Article 205(3) of the Treaty on the Functioning of the European Union.

Article 2

Pursuant to Article 1 and subject to Articles 3, 4 and 8, none of the provisions in Title IV of Part Three of the Treaty on the Functioning of the European Union, no measure adopted pursuant to that Title, no provision of any international agreements concluded by the Union pursuant to that Title, no decision of the Court of Justice of the European Union interpreting any such provision or measure shall be binding upon or applicable in Denmark; and no such provision, measure or decision shall in any way affect the competences, rights and obligations of Denmark; and no such provision, measure or decision shall in any way affect the Community or Union acquis nor form part of Union law as they apply to Denmark.

Article 3

1. Denmark may notify the President of the Council in writing, within three months after a proposal or initiative has been presented to the Council pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union, that it wishes to take part in the adoption and application of any such proposed measure, whereupon Denmark shall be entitled to do so.

2. If after a reasonable period of time a measure referred to in paragraph 1 cannot be adopted with Denmark taking part, the Council may adopt that measure referred to in paragraph 1 in accordance with Article 1 without the participation of Denmark. In that case Article 2 applies.

Article 4

Denmark may at any time after the adoption of a measure pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union notify its intention to the Council and the Commission that it wishes to accept that measure. In that case, the procedure provided for in Article 280 F(1) of that Treaty shall apply mutatis mutandis.

Article 5

1. The provisions of this Protocol apply for Denmark also to measures proposed or adopted pursuant to Title IV of Part III of the Treaty on the Functioning of the European Union amending an existing measure by which it is bound.

2. However, in cases where the Council, acting on a proposal from the Commission, determines that the non-participation of Denmark in the amended version of an existing measure makes the application of that measure inoperable for other Member States or the Union, it may urge it to make a notification under Article 3 or 4. For the purposes of Article 3 a further period of two months starts to run as from the date of such determination by the Council.

If at the expiry of that period of two months from the Council's determination Denmark has not made a notification under Article 3 or Article 4, the existing measure shall no longer be binding upon or applicable to it, unless it has made a notification under Article 4 before the entry into force of the amending measure. This shall take effect from the date of entry into force of the amending measure or of expiry of the period of two months, whichever is the later.

For the purpose of this paragraph, the Council shall, after a full discussion of the matter, act by a qualified majority of its members representing the Member States participating or having participated in the adoption of the amending measure. A qualified majority of the Council shall be defined in accordance with Article 205(3)(a) of the Treaty on the Functioning of the European Union.

3. The Council, acting by a qualified majority on a proposal from the Commission, may determine that Denmark shall bear the direct financial consequences, if any, necessarily and unavoidably incurred as a result of the cessation of its participation in the existing measure.

4. This Article shall be without prejudice to Article 4.

Article 6

1. Notification pursuant to Article 4 shall be submitted no later than six months after the final adoption of a measure if this measure builds upon the Schengen acquis.

If Denmark does not submit a notification in accordance with Articles 3 or 4 regarding a measure building upon the Schengen acquis, the Member States bound by that measure and Denmark will consider appropriate measures to be taken.

2. A notification pursuant to Article 3 with respect to a measure building upon the Schengen acquis shall be deemed irrevocably to be a notification pursuant to Article 3 with respect to any further proposal or initiative aiming to build upon that measure to the extent that such proposal or initiative builds upon the Schengen acquis.

Article 7

Denmark shall not be bound by the rules laid down on the basis of Article 16 B of the Treaty on the Functioning of the European Union which relate to the processing of personal data by the Member States when carrying out activities which fall within the scope of Chapter 4 or Chapter 5 of Title IV of Part Three of that Treaty where Denmark is not bound by the rules governing the forms of judicial cooperation in criminal matters or police cooperation which require compliance with the provisions laid down on the basis of Article 16 B.

Article 8

Where, in cases referred to in this Part, Denmark is bound by a measure adopted by the Council pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union, the relevant provisions of the Treaties shall apply to Denmark in relation to that measure.

Article 9

Where Denmark is not bound by a measure adopted pursuant to Title IV of Part Three of the Treaty on the Functioning of the European Union, it shall bear no financial consequences of that measure other than administrative costs entailed for the institutions unless the Council, with all its Members acting unanimously after consulting the European Parliament, decides otherwise."

PROTOCOL ON ASYLUM FOR NATIONALS OF THE UNION

22) The Protocol on asylum for nationals of Member States of the European Union shall be amended as follows:

(a) the preamble shall be amended as follows:

(i) the first recital shall be replaced by the following:

"WHEREAS, in accordance with Article 6(1) of the Treaty on European Union, the Union recognises the rights, freedoms and principles set out in the Charter of Fundamental Rights;";

(ii) the following new second recital shall be inserted:

"WHEREAS pursuant to Article 6(3) of the Treaty on European Union, fundamental rights, as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms, constitute part of the Union's law as general principles;";

(iii) in the second, renumbered third, recital, the reference to Article 6(2) shall be replaced by a reference to Article 6, paragraphs (1) and (3);

(iv) in the third, renumbered fourth, recital, the reference to Article 6(1) shall be replaced by a reference to Article 1a;

(v) in the third and fourth recitals, which shall become the fourth and fifth recitals, the word "principles" shall be replaced by "values"; in the fourth recital, which shall become the fifth recital, the reference to Article 309 of the Treaty establishing the European Community shall be replaced by a reference to Article 7 of the Treaty on European Union;

(vi) in the fifth, which shall become the sixth, recital, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union;

(vii) the seventh recital, which shall become the eighth recital, shall be deleted;

(b) the Sole Article shall be amended as follows:

(i) in point (b), the words ", or, where appropriate, the European Council," shall be inserted after "the Council" and the words "with regard to the Member State of which the applicant is a national" shall be added at the end;

(ii) point (c) shall be replaced by the following:

"(c) if the Council has adopted a decision in accordance with Article 7(1) of the Treaty on European Union in respect of the Member State of which the applicant is a national or if the European Council has adopted a decision in accordance with Article 7(2) of that Treaty in respect of the Member State of which the applicant is a national;".

PROTOCOL ON ECONOMIC, SOCIAL AND TERRITORIAL COHESION

23) The Protocol on economic and social cohesion shall be amended as follows:

(a) throughout the Protocol, the words "economic and social cohesion" shall be replaced by "economic, social and territorial cohesion";

(b) the preamble shall be amended as follows:

(i) the first, second, fifth, sixth and fourteenth recitals shall be deleted;

(ii) the following new first recital shall be inserted:

"RECALLING that Article 2 of the Treaty on European Union includes the objective of promoting economic, social and territorial cohesion and solidarity between Member States and that the said cohesion figures among the areas of shared competence of the Union listed in Article 2 C(2)(c) of the Treaty on the Functioning of the European Union;";

(iii) the fourth recital, which shall become the third recital, shall be replaced by the following:

"RECALLING that the provisions of Article 161 of the Treaty on the Functioning of the European Union envisage setting up a Cohesion Fund;";

(iv) at the end of the eleventh recital, which shall become the eighth recital, the words ", and underline the importance of the inclusion of economic and social cohesion in Articles 2 and 3 of this Treaty" shall be deleted;

(v) in the fifteenth recital, which shall become the new eleventh recital, the words "to be set up before 31 December 1993" shall be deleted;

(vi) in the last recital, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on European Union and the Treaty on the Functioning of the European Union.

OTHER PROTOCOLS

24) In the Protocol on the excessive deficit procedure, in the first recital of the preamble, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union.

25) In the Protocol on France, the words "in its overseas territories" shall be replaced by "in New Caledonia, French Polynesia and Wallis and Futuna".

26) In the Protocol on external relations of the Member States with regard to the crossing of external borders, the reference to Article 62(2)(a) of Title IV of the Treaty shall be replaced by a reference to Article 62(2)(b) of the Treaty on the Functioning of the European Union.

27) In the Protocol on Article 17 of the Treaty on European Union, in the enacting terms, the final words ", within a year from the entry into force of the Treaty of Amsterdam" shall be deleted.

28) In the Protocol on the system of public broadcasting in the Member States, in the final paragraph of the preamble, the words "which shall be annexed to the Treaty establishing the European Community" shall be replaced by "which shall be annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union".

29) In the Protocol concerning imports into the European Union of petroleum products refined in the Netherlands Antilles, in the second sentence of Article 3(3), the words "by a decision taken by a qualified majority" shall be deleted.

30) The Protocol concerning Article 141 of the Treaty establishing the European Community shall be amended as follows:

(a) in the title of the Protocol, the reference to the Treaty establishing the European Community shall be replaced by a reference to the Treaty on the Functioning of the European Union;

(b) in the sole provision, the words "of this Treaty" shall be replaced by "of the Treaty on the Functioning of the European Union".

31) In the Protocol on special arrangements for Greenland, the words "Treaty establishing the European Community" shall be replaced by "Treaty on the Functioning of the European Union", and Article 2 shall be deleted.

32) The Protocol annexed to the Treaty on European Union and to the Treaties establishing the European Communities shall be amended as follows:

(a) the Protocol shall be entitled "Protocol on Article 40.3.3 of the Constitution of Ireland";

(b) the words "Nothing in the Treaty on European Union, or in the Treaties establishing the European Communities" shall be replaced by "Nothing in the Treaties, or in the Treaty establishing the European Atomic Energy Community".

33) The Protocol on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel shall be amended as follows:

(a) in the preamble, the first two recitals shall be replaced by following new first recital:

"RECALLING that all assets and liabilities of the European Coal and Steel Community, as they existed on 23 July 2002, were transferred to the European Community on 24 July 2002;"

(b) Article 1(1) shall be deleted and the two remaining paragraphs shall be renumbered accordingly;

(c) Article 2 shall be split into two paragraphs, the first of which shall end with the words "including essential principles.". Furthermore, that Article shall be amended as follows:

(i) in the first paragraph, the words "acting unanimously on a proposal from the Commission" shall be replaced by "acting in accordance with a special legislative procedure" and the word "consulting" shall be replaced by "obtaining the consent of";

(ii) in the second paragraph, the words "and proper decision-making procedures, in particular for the adoption of" shall be replaced by "The Council shall adopt, on a proposal from the Commission and after consulting the European Parliament, measures establishing";

(d) Article 4 shall be repealed.

Article 2

1. The articles of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, of the Protocol on the Statute of the European Investment Bank, and of the Protocol on the privileges and immunities of the European Union, as they are amended by the Treaty of Lisbon, shall be renumbered in accordance with the tables of equivalences set out in the annex to this Protocol. Cross-references to articles of those protocols which appear therein shall be adapted in accordance with the tables.

2. References to recitals of the protocols set out in point 1 of Article 1, or to articles of those protocols, including to paragraphs thereof, as renumbered or rearranged by this Protocol, and which references figure in other protocols or acts of primary legislation shall be adapted in accordance with this Protocol. Such adaptations shall, if necessary, also apply in the event that the provision in question has been repealed.

3. References to recitals and articles, including to paragraphs thereof, of the protocols set out in point 1 of Article 1, as amended by the provisions of this Protocol and which figure in other instruments or acts, shall be understood as references to recitals and articles, including to paragraphs thereof, of those protocols as renumbered or rearranged in accordance with this Protocol.

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ANNEX

TABLES OF EQUIVALENCES REFERRED TO IN ARTICLE 2 OF PROTOCOL (NO 1) AMENDING THE PROTOCOLS ANNEXED TO THE TREATY ON EUROPEAN UNION, TO THE TREATY ESTABLISHING THE EUROPEAN COMMUNITY AND/OR TO THE TREATY ESTABLISHING THE EUROPEAN ATOMIC ENERGY COMMUNITY.

A. PROTOCOL ON THE STATUTE OF THE EUROPEAN SYSTEM OF CENTRAL BANKS AND OF THE EUROPEAN CENTRAL BANK

Old numbering of the protocol | New numbering of the protocol |

Article 1 | Article 1 |

Article 2 | Article 2 |

Article 3 | Article 3 |

Article 4 | Article 4 |

Article 5 | Article 5 |

Article 6 | Article 6 |

Article 7 | Article 7 |

Article 8 | Article 8 |

Article 9 | Article 9 |

Article 10 | Article 10 |

Article 11 | Article 11 |

Article 12 | Article 12 |

Article 13 | Article 13 |

Article 14 | Article 14 |

Article 15 | Article 15 |

Article 16 | Article 16 |

Article 17 | Article 17 |

Article 18 | Article 18 |

Article 19 | Article 19 |

Article 20 | Article 20 |

Article 21 | Article 21 |

Article 22 | Article 22 |

Article 23 | Article 23 |

Article 24 | Article 24 |

Article 25 | Article 25 |

Article 26 | Article 26 |

Article 27 | Article 27 |

Article 28 | Article 28 |

Article 29 | Article 29 |

Article 30 | Article 30 |

Article 31 | Article 31 |

Article 32 | Article 32 |

Article 33 | Article 33 |

Article 34 | Article 34 |

Article 35 | Article 35 |

Article 36 | Article 36 |

Article 37 (repealed) | |

Article 38 | Article 37 |

Article 39 | Article 38 |

Article 40 | Article 39 |

Article 41 | Article 40 |

Article 42 | Article 41 |

Article 43 | Article 42 |

Article 44 | Article 43 |

Article 45 | Article 44 |

Article 46 | Article 45 |

Article 47 | Article 46 |

Article 48 | Article 47 |

Article 49 | Article 48 |

Article 50 (repealed) | |

Article 51 (repealed) | |

Article 52 | Article 49 |

Article 53 | Article 50 |

B. PROTOCOL ON THE STATUTE OF THE EUROPEAN INVESTMENT BANK

Old numbering of the Protocol | New numbering of the Protocol |

Article 1 | Article 1 |

Article 2 | Article 2 |

Article 3 | Article 3 |

Article 4 | Article 4 |

Article 5 | Article 5 |

Article 6 (repealed) | |

Article 7 (repealed) | |

Article 8 | Article 6 |

Article 9 | Article 7 |

Article 10 | Article 8 |

Article 11 | Article 9 |

Article 12 | Article 10 |

Article 13 | Article 11 |

Article 14 | Article 12 |

Article 15 | Article 13 |

Article 16 | Article 14 |

Article 17 | Article 15 |

Article 18 | Article 16 |

Article 19 | Article 17 |

Article 20 | Article 18 |

Article 21 | Article 19 |

Article 22 | Article 20 |

Article 23 | Article 21 |

Article 24 | Article 22 |

Article 25 | Article 23 |

Article 26 | Article 24 |

Article 27 | Article 25 |

Article 28 | Article 26 |

Article 29 | Article 27 |

Article 30 | Article 28 |

C. PROTOCOL ON THE PRIVILEGES AND IMMUNITIES OF THE EUROPEAN UNION

Old numbering of the Protocol | New numbering of the Protocol |

Article 1 | Article 1 |

Article 2 | Article 2 |

Article 3 | Article 3 |

Article 4 | Article 4 |

Article 5 (repealed) | |

Article 6 | Article 5 |

Article 7 | Article 6 |

Article 8 | Article 7 |

Article 9 | Article 8 |

Article 10 | Article 9 |

Article 11 | Article 10 |

Article 12 | Article 11 |

Article 13 | Article 12 |

Article 14 | Article 13 |

Article 15 | Article 14 |

Article 16 | Article 15 |

Article 17 | Article 16 |

Article 18 | Article 17 |

Article 19 | Article 18 |

Article 20 | Article 19 |

Article 21 | Article 20 |

Article 22 | Article 21 |

Article 23 | Article 22 |

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