[ARTICLE 57]

SINGLE MARKET:

EU INTERFERENCE IN CAPITAL/INVESTMENT IN THIRD COUNTRIES<= /span>

SUBJECT TO EMPOWERED PARLIAMENT-COUNCIL DECISION-MAKING

[ARTICLE 57]

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 Three Policies and Internal Act= ions of the Union, Title III – Free movement of persons, services and capi= tal, Chapter 4 – Capital and payments, Article 57

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Lisb= on Treaty: =

“= ;CAPITAL

60) In Article 57(2), the words "the Council may, acting by a qualified major= ity on a proposal from the Commission, adopt measures" shall be replaced by "the European Parliament and the Council, acting in accordance with th= e ordinary legislative procedure, shall adopt the measures" and the last sentence= of paragraph 2 shall become paragraph 3, reading as follows:=

"= 3. Notwithstanding paragraph 2, only the Council, acting in accordance with a special

legisl= ative procedure, may unanimously, and after consulting the European Parliament, a= dopt measures which constitute a step backwards in Union law as regards the liberalisation of the movement of capital to or from third countries."= ”

Consolidated Treaty Article(s):

“Article 57

1. The provisions of Article 56 shall be without prejudice to the application to third countries of any restrictions which exist on 31 Decemb= er 1993 under national or Community law adopted in respect of the movement of capital to or from third countries involving direct investment — including in real estate — establishment, the provision of financial services or the admission of securities to capital markets.

2. Whilst endeavouring to achieve the objective of free movement of capital between Member States and third countries to the greatest extent possible and without prejudice to the other chapters of this Treaty, the Council may, acting by a qualified majority on a proposal from the Commissi= on, adopt measures on the movement of capital to or from third countries involv= ing direct investment — including investment in real estate — establishment, the provision of financial services or the admission of securities to capital markets. Unanimity shall be required for measures und= er this paragraph which constitute a step back in Community law as regards the liberalisation of the movement of capital to or from third countries.”= ;

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Expl= anation:

Under Lisbon, the EU will be left increasingl= y open to interfere in the movement of capit= al to or from third countries involving direct investment, investment in real estate, financial services or the admission of securities to capital market= s. Under Article 56, = all restrictions on capital movements and payments between the Member States an= d between Member States and third countries are prohibited. However, there are exceptions to this rule, relating to movemen= ts in capital with third countries. Under the present Article 57(2), ”… the Council may, acting by a qualified majority on a proposal from the Commissi= on, adopt measures on the movement of capital to or from third countries involv= ing direct investment — including investment in real estate — establishment, the provision of financial services or the admission of securities to capital markets.” The Lisbon Treaty introduces “t= he ordinary legislative procedure” (co-decision procedure) over the adop= tion of such measures. Therefore, the European Parliament is provided, again, wi= th an influential role in the freedom of movement of capital.

The European Parliament acquires a new influential role here. The Lisbon Treaty also amends = the last paragraph of Article 57 (2) which states that “Unanimity shall be required for measures under this paragraph which constitute a step back in Community law as regards the liberalisation of the movement of capital to or from third countries.” Under the Lisbon Treaty, "Notwithstanding paragraph 2, only the Council, acting in accordance with a special legislat= ive procedure, may unanimously, and after consulting the European Parliament, a= dopt measures which constitute a step backwards in Union law as regards the liberalisation of the movement of capital to or from third countries." Hence, the requirement for unanimity is kept. Such measures will be adopted= in accordance with “a special legislative procedure” (consultation procedure). The European Parliament acquires an influential role here, albeit still limited= .