MIME-Version: 1.0 Content-Location: file:///C:/8C69674F/ARTICLE188O.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" [ARTICLE 188O]

EXTERNAL ACTION:

 EUROPEAN CENTRAL BANK CONTINUES TO CONCLUDE

FORMAL AGREEMENTS ON EURO EXCHANGE RATE SYSTEM=

[ARTICLE 188 O]

 

 

AMENDMENT TO: Treaty of Lisbon amending the Treaty on European Union and t= he Treaty establishing the European Community (Lisbon, 13 December 2007)<= /span>

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Policy Area:

Treaty= on the Functioning of the European Union, Part Five, External Action by the Union, Title V International Agreements, Article 18= 8 O

 

Amendment:

Clause  2,  page  1,  line  12,  after ‘excluding’, insert—

 

‘(i) Article 2, paragr= aphs 170 to 174, inserted Title V and Articles 188L to 188O TEC (TFEU) relating = to international agreements; and

 

(ii)’.

 

Amendment:

Clause  2,  page  1,  line  12,  after ‘excluding’, insert—

 

‘(i) Article 2, paragr= aphs 154 to 168, new Part Five TEC (TFEU) relating to external action by the European Union; and

 

(ii)’.

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Lisb= on Treaty Article:

 174) An Article 188 O shall be inserted, with the wordin= g of paragraphs 1 to 3 and 5 of Article 111 and paragraph 1 shall be split into = two subparagraphs, the last two sentences becoming the second subparagraph; the Article shall be amended as follows:

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

"1. By way of derogation from Article 188 N(1), the Council, either on a recommendation from the European Central Bank or on a recommendation from the Commission and after consulting the European Central Bank, in an endeavour<= /span> to reach a consensus consistent with the objective of price stability, may conclude formal agreements on an exchange-rate system for the euro in relation to the currencies of third States. T= he Council shall act unanimously after consulting the European Parliament and = in accordance with the procedure provided for in paragraph 3."=

In the second subparagraph, the words "on a recommendation from the ECB or from the Commission and after consulting the= ECB in an endeavour to" shall be replaced by t= he following: "either on a recommendation from the European Central Bank or on a rec= ommendation from the Commission, and after consulting the European Central Bank, in an = endeavour to";

(b) in paragraph 2, the words "non-Community currencies" shall be replaced by "currencies = of third States";

(c) in paragraph 3, in the first sentence of the first subparagraph, the reference to Article 300 shall be replaced by a reference= to Article 188 N and the word "States" shall be replaced by "th= ird States", and the second subparagraph shall be deleted;

(d) paragraph 5 shall be renu= mbered "4".

 

Consolidated Treaty Article(s):

Article 111=

1. By way of derogation from Article 300, the Council ma= y, acting unanimously on

a recommendation from the ECB or from the Commission, and after consulting the ECB in an endeavour to rea= ch a consensus consistent with the objective of price stability, after consulting the European Parliament, in accordance with the procedure in paragraph 3 for determining the arrangements, conclude formal agreements on an exchange-rate system for the ecu in relation to non-Community currencies. The Council may, acting by a qualified majority on a recommenda= tion from the ECB or from the Commission, and after consulting the ECB in an endeavour to reach a consensus consistent with the objective of price stability, adopt, adjust or abandon the central rates of= the ecu within the exchange-rate system. The Presid= ent of the Council shall inform the

European Parliament of the adoption, adjustment or abandonment of the ecu central rates.

2. In the absence of an exchange-rate system in relation to one or more non-Commu= nity

cur= rencies as referred to in paragraph 1, the Council, acting by a qualified majority eit= her on a recommendation from the Commission and after consulting the ECB or on a recommendation from the ECB, may formulate general orientations for exchange-rate policy in relation to these currencies. These general orientations shall be without prejudice to the primary objective of the ESC= B to maintain price stability.

3. By way of derogation from Article 300, where agreements concerning monetary or foreign exchange regime matters need to be negotiated by the Community with one or more States or i= nternational organisations, the Council, acting by a qualifi= ed majority on a recommendation from the Commission and after consulting the E= CB, shall decide the arrangements for the negotiation and for the conclusion of such agreements. These arrangements shall ensure that the Community express= es a single position. The Commission shall be fully associated with the negotiations.

Agreements concluded in accordance with this paragraph shall be binding on the institutions of the = Community, on the ECB and on Member States.

4. Subject to paragraph 1, the Council, acting by a qualified majority on a proposal from the Commission a= nd after consulting the ECB, shall decide on the position of the Community at = international level as regards issues of particular relevance to economic and monetary un= ion and on its representation, in compliance with the allocation of powers laid down in Articles 99 and 105.

5. Withou= t prejudice to Community competence and Community agreements as regards<= /o:p>

eco= nomic and monetary union, Member States may negotiate in international bodies and conclude international agreements.

 

Expl= anation:

Article 188 O essentially rewords the existing A= rticle 111, on agreements between the eurozone and other currency zones. The chang= es are stylistic (e.g. ‘ecu’ to ‘= ;euro’). This Article does not apply to the UK.