Chapter I
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Chapter I

CHAPTER I
INTERNAL MARKET
SECTION 1
ESTABLISHMENT AND FUNCTIONING OF THE INTERNAL MARKET
Article III-130
1. The Union shall adopt measures intended to establish or ensure the functioning of the internal market, in
accordance with the relevant provisions of the Constitution.
2. The internal market comprises an area without internal frontiers in which the free
movement of persons, services, goods and capital is ensured in accordance with
the Constitution.
3. The Council, on a proposal from the Commission, shall adopt European regulations or decisions which
define the guidelines and conditions necessary to ensure balanced progress in
all the sectors concerned.
4. When formulating its proposals for the attainment of the objectives referred to in
paragraphs 1 and 2, the Commission shall take into account the extent of the effort which certain economies
with differences in development will have to bear in order to establish the
internal market. and it can suggest appropriate measures.
If these measures take the form of derogations, they must be of a temporary nature and
cause as little disturbance as possible to the functioning of the internal market.
Article III-131
Member States shall consult each other with a view to jointly taking the necessary measures to
to prevent the functioning of the internal market from being affected by measures which a Member State
may be called upon to take in the event of serious internal disturbances affecting public order, in the event of
war or of serious international tension constituting a threat of war, or to meet the
commitments entered into by it for the maintenance of international peace and security.
Article III-132
If the measures taken in the cases provided for in Articles III-131 and III-436 have the effect of distorting the
conditions of competition in the internal market, the Commission shall examine with the Member State
concerned the conditions under which these measures can be adapted to the rules established by the
Constitution.
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By way of derogation from the procedure provided for in Articles III-360 and III-361, the Commission or any
Member State may apply directly to the Court of Justice, if the Commission or the The Member State considers that
another Member State is abusing the powers provided for in Articles III-131 and III-436. The Court of
Justice rules behind closed doors.
SECTION 2
FREE MOVEMENT OF PERSONS AND SERVICES
Sub-section 1
Workers
Article III-133
1. Workers have the right to move freely within the Union.
2. Any discrimination, based on nationality, between workers in the Member States, with regard to
concerning employment, remuneration and other working conditions is prohibited.
3. Workers have the right, subject to limitations justified on grounds of public order, public
security and public health:
a) to respond to jobs actually offered;
(b) to move freely for this purpose within the territory of the Member States;
(c) to reside in one of the Member States in order to exercise a job there in accordance with
the laws, regulations and administrative provisions governing the employment of
national workers ;
d) to remain, under conditions which are the subject of European regulations adopted by the
Commission, in the territory of a Member State, after having occupied a post there.
4. This article does not apply to jobs in the public administration.
Article III-134 European
laws or framework laws establish the measures necessary to achieve the free movement of
workers, as defined in Article III-133. It is adopted after consultation of the
Economic and Social Committee .
The European law or framework law aims in particular:
a) to ensure close collaboration between national labor administrations;
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(b) eliminate administrative procedures and practices, as well as time limits for access to posts
available resulting either from domestic legislation or from agreements previously concluded between the
Member States, the maintenance of which would prevent the liberalization of workers’ movements
;
c) to eliminate all time limits and other restrictions, provided for either by internal legislation or by
agreements previously concluded between Member States, which impose on workers from other
Member States other conditions than national workers for free choice a job;
d) to establish appropriate mechanisms to bring together job vacancies and job applications and to
facilitate their balance under conditions which avoid serious risks to the standard of living and
employment in various regions and industries.
Article III-135
Member States shall promote, within the framework of a common program, the exchange of young
workers.
Article III-136
1. In the field of social security, European laws or framework laws shall establish the measures
necessary to achieve the free movement of workers, in particular by establishing a system
making it possible to ensure that migrant workers are employed and self-employed. to their beneficiaries:
a) the aggregation, for the opening and maintenance of the right to benefits, as well as for their calculation
, of all periods taken into account by the various national legislations;
(b) the payment of benefits to persons residing in the territories of the Member States.
2. When a member of the Council considers that a draft European law or framework law referred to in
paragraph 1 would affect fundamental aspects of his social security system, in
particular as regards the scope and cost or the financial structure, or would
affect the financial balance, it may request that the European Council be consulted. In this case, the
procedure referred to in Article III-396 is suspended. After discussion and within four months
of this suspension, the European Council: (
a) refers the draft back to the Council, thereby terminating the suspension of the procedure referred to in Article III-396,
or
b) ask the Commission to present a new proposal; in this case, the act initially
proposed is deemed not to be adopted.
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Subsection 2
Freedom of establishment
Article III-137
Within the framework of this subsection, restrictions on the freedom of establishment of nationals
of a Member State on the territory of another Member State are prohibited. This prohibition
also extends to restrictions on the creation of agencies, branches or subsidiaries by nationals
of a Member State established in the territory of a Member State.
Nationals of a Member State have the right, in the territory of another Member State, to access
and exercise self-employed activities, as well as to establish and manage undertakings, and in
particular companies within the meaning of the second paragraph of Article III-142, under the conditions provided for by
the legislation of the Member State of establishment for its own nationals, subject to
section 4 relating to capital and payments.
Article III-138
1. European framework law establishes the measures to achieve freedom of establishment in a given
activity. It is adopted after consultation of the Economic and Social Committee.
2. The European Parliament, the Council and the Commission shall exercise the functions assigned to them
by paragraph 1, in particular:
a) by treating, in general, as a matter of priority activities where freedom of establishment constitutes a
particularly useful contribution to development production and trade;
b) by ensuring close collaboration between the competent national administrations with a view to
ascertaining the particular situations, within the Union, of the various activities concerned;
(c) by eliminating those of administrative procedures and practices resulting either from
domestic legislation or from agreements previously concluded between Member States, the maintenance of which would mean
obstacle to freedom of establishment;
(d) by ensuring that salaried workers of one of the Member States, employed in the territory of
another Member State, can remain in that territory in order to undertake a
self – employed activity there, when they meet the conditions with which they should satisfy if they came to this
state when they want to access this activity;
(e) by making possible the acquisition and operation of real estate located in the territory
of a Member State by a national of another Member State, in so far as
the principles referred to in Article III-227, paragraph 2;
f) by applying the progressive abolition of restrictions on the freedom of establishment, in each
branch of activity considered, on the one hand, to the conditions for the creation, in the territory of a
Member State , of agencies, branches or subsidiaries and, on the other hand, the conditions for entry of
staff from the main establishment into their management or supervisory bodies;
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g) coordinating, to the extent necessary and with a view to making them equivalent, the guarantees
required in the Member States from companies within the meaning of Article III-142, second paragraph,
to protect the interests of both partners and third parties;
(h) by ensuring that the conditions of establishment are not distorted by aid granted by
the Member States.
Article III-139
This subsection shall not apply, as regards the Member State concerned, to activities
participating in that State, even on an occasional basis, in the exercise of public authority.
European law or framework law may exclude certain activities from the application of the provisions of
this sub-section.
Article III-140
1. This subsection and the measures adopted pursuant to it are without prejudice to
the applicability of the laws, regulations and administrative provisions of the Member States
providing for a special regime for foreign nationals, and justified by reasons of
public order, public security and public health.
2. The European framework law coordinates the national provisions referred to in paragraph 1.
Article III-141
1. The European framework law shall facilitate access to self-employed activities and their pursuit. It aims at:
a) mutual recognition of diplomas, certificates and other titles;
(b) the coordination of the laws, regulations and administrative provisions of the Member States
concerning access to self-employed activities and the pursuit of such activities.
2. With regard to the medical, paramedical and pharmaceutical professions, the abolition
progressive restrictions are subject to the coordination of the conditions for exercising these
professions in the various Member States.
Article III-142
Companies incorporated in accordance with the legislation of a Member State and having their registered office,
central administration or main establishment within the Union are deemed
to be equivalent, for the application of this subsection , to natural persons who are nationals of the
Member States .
By “companies” we mean civil or commercial law companies, including cooperative companies,
and other legal persons governed by public or private law, with the exception of companies which are
not for profit.
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Article III-143
Member States shall accord national treatment with regard to the financial participation of
nationals of other Member States in the capital of companies within the meaning of Article III -142,
second paragraph, without prejudice to the application of the other provisions of the Constitution.
Subsection 3
Freedom to provide services
Article III-144
Within the framework of this subsection, restrictions on the freedom to provide services within
the Union are prohibited with regard to nationals of the Member States established in a Member State
other than that of the recipient of the service.
European laws or framework laws may extend the benefit of this subsection to service
providers who are nationals of a third State and established within the Union.
Article III-145
For the purposes of the Constitution, services are considered to be services normally provided
for remuneration, insofar as they are not governed by the provisions relating to the free
movement of persons, goods and capital.
The services include in particular:
a) industrial activities;
b) activities of a commercial nature;
c) craft activities;
d) activities of the liberal professions.
Without prejudice to subsection 2 relating to freedom of establishment, the service provider may, for
the performance of his service, exercise, on a temporary basis, his activity in the Member State where the service
is provided, in the same conditions than those which that State imposes on its own
nationals.
Article III-146
1. Freedom to provide services in the field of transport shall be governed by Chapter III, Section 7,
relating to transport.
2. The liberalization of banking and insurance services which are linked to the movement of
capital must be carried out in harmony with the liberalization of the movement of capital.
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Article III-147
1. European framework law shall establish the measures to achieve the liberalization of a given service.
It is adopted after consultation of the Economic and Social Committee.
2. The European framework law referred to in paragraph 1 relates, in general, by priority to services which
intervene directly in the costs of production or whose liberalization helps to
facilitate trade in goods.
Article III-148
Member States shall endeavor to proceed with the liberalization of services beyond the measure which is
compulsory under the European framework law adopted in application of Article III-147,
paragraph 1, if their general economic situation and the situation of the sector concerned so
allow.
The Commission is making recommendations to this effect to the Member States concerned.
Article III-149
As long as the restrictions on the freedom to provide services are not removed, the
Member States shall apply them without distinction as to nationality or residence to all the service
providers referred to in the first paragraph of Article III-144.
Article III-150
Articles III-139 to III-142 are applicable to the matter governed by this sub-section.
SECTION 3
FREE MOVEMENT OF GOODS
Sub-section 1
Customs union
Article III-151
1. The Union comprises a customs union which extends to all trade in goods
and which includes the prohibition, between the Member States, of customs duties on imports and
exports and of all taxes. of equivalent effect, as well as the adoption of a common customs tariff
in their relations with third countries.
2. Paragraph 4 and sub-section 3 relating to the prohibition of quantitative restrictions
apply to products originating in Member States, as well as to products from
third countries which are in free circulation in Member States. members.
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3. Products from
third countries for which import formalities have been completed and the customs duties and
charges having equivalent effect payable have been collected in that Member State shall be considered to be in free circulation in a Member State, and who have not benefited from a
total or partial rebate of these duties and taxes.
4. Customs duties on imports and exports or charges having equivalent effect shall be prohibited
between Member States. This prohibition also applies to customs duties of a
fiscal nature .
5. The Council, on a proposal from the Commission, shall adopt European regulations or decisions
fixing the duties of the Common Customs Tariff.
6. In carrying out the tasks entrusted to it under this Article, the Commission shall be
guided by: (
a) the need to promote trade between Member States and third countries;
(b) changes in the conditions of competition within the Union, insofar as this
development will have the effect of increasing the competitiveness of enterprises;
(c) the Union’s supply requirements for raw materials and semi- finished products, while taking
care not to distort the conditions of competition between the Member States as regards
finished products;
d) the need to avoid serious disturbances in the economic life of the Member States and to ensure
rational development of production and expansion of consumption in
the Union.
Sub-section 2
Customs cooperation
Article III-152
Within the limits of the scope of the Constitution, European laws or framework laws shall establish
measures to strengthen customs cooperation between the Member States and between them and the
Commission.
Subsection 3
Prohibition of quantitative restrictions
Article III-153
Quantitative restrictions both on imports and exports, and all measures having
equivalent effect , are prohibited between Member States.
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Article III-154
Article III-153 does not preclude prohibitions or restrictions on import, export or
transit, justified by reasons of public morality, public order, public security,
protection of health and life of people and animals or the preservation of plants, the
protection of national treasures of artistic, historical or archaeological value, or the
protection of industrial and commercial property. However, such prohibitions or restrictions
must not constitute a means of arbitrary discrimination or a disguised restriction on
trade between Member States.
Article III-155
1. Member States shall arrange national monopolies of a commercial character in
such a way that the conditions of supply and outlets are excluded from
any discrimination between nationals of the Member States.
This Article applies to any body by which a Member State, de jure or de facto, controls,
directs or appreciably influences, directly or indirectly, imports or exports
between Member States. It also applies to delegated state monopolies.
2. Member States shall refrain from any new measure which is contrary to the principles referred to in
paragraph 1 or which restricts the scope of the articles relating to the
quantitative restrictions between Member States.
3. In the case of a commercial monopoly including regulations intended to
facilitate the disposal or promotion of agricultural products, it is appropriate to ensure, in the application
of this article, equivalent guarantees for employment and the standard of living of the producers
concerned.
SECTION 4
CAPITAL AND PAYMENTS
Article III-156
Within the framework of this section, restrictions both on the movement of capital and on
payments between Member States and between Member States and third countries are prohibited.
Article III-157
1. Article III-156 is without prejudice to the application to third countries of the restrictions existing on
31 December 1993 by virtue of national or Union law as regards the
movement of capital to destination or from third countries when they involve
direct investments, including real estate investments, establishment, provision of
financial services or admission of securities to the capital markets. As regards the
restrictions existing under national laws in Estonia and Hungary, the date in question is
31 December 1999.
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2. European laws or framework laws establish measures relating to the movement of capital to
or from third countries, when they involve direct investment,
including real estate investment, establishment, provision of financial services or
admission of securities to the capital markets.
The European Parliament and the Council shall endeavor to achieve the objective of free movement of capital
between Member States and third countries, to the greatest extent possible and without prejudice to other
provisions of the Constitution.
3. By way of derogation from paragraph 2, only a European law or framework law of the Council may establish
measures which constitute a setback in Union law with regard to the liberalization
of capital movements to or from third countries. The Council acts
unanimously, after consulting the European Parliament.
Article III-158
1. Article III-156 is without prejudice to the right of Member States:
a) to apply the relevant provisions of their tax laws which distinguish
between taxpayers who are not in the same situation as regards their
residence or the place where their capital is invested;
b) take all necessary measures to prevent infringements of their provisions
legislative and regulatory matters, in particular in tax matters or in matters of prudential supervision
of financial institutions, to provide for procedures for declaring
capital movements for administrative or statistical information purposes, or to take measures
justified by reasons related to the public order or public security.
2. This section is without prejudice to the possibility of applying restrictions on the right
of establishment which are compatible with the Constitution.
3. The measures and procedures referred to in paragraphs 1 and 2 shall not constitute a means of
arbitrary discrimination or a disguised restriction on the free movement of capital and goods.
payments as defined in article III-156.
4. In the absence of a European law or framework law provided for in Article III-157, paragraph 3, the
Commission, or, in the absence of a European decision by the Commission within three
months from the request of the Member State concerned, the Council may adopt a
European decision providing that restrictive fiscal measures taken by a Member State with regard to one or
more third countries are deemed to be in conformity with the Constitution, for provided that they are justified
with regard to one of the objectives of the Union and compatible with the proper functioning of the
internal market . The Council acts unanimously at the request of a Member State.

Where, in exceptional circumstances, movements of capital from or to
third countries cause or threaten to cause serious difficulties for the functioning
of economic and monetary union, the Council, on a proposal from the Commission, may adopt
European regulations or decisions establishing safeguard measures with regard to third countries
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for a period not exceeding six months, provided that these measures are strictly
necessary. It rules after consultation with the European Central Bank.
Article III-160
When the achievement of the objectives referred to in Article III-257 so requires, with regard to the prevention of
terrorism and related activities, as well as the fight against these phenomena, European law
defines a framework of administrative measures concerning movements capital and payments,
such as the freezing of funds, financial assets or economic benefits that belong to
natural or legal persons, groups or non-state entities, are in their possession
or are held by them.
The Council, on a proposal from the Commission, shall adopt European regulations or decisions in order
to implement the European law referred to in the first paragraph.
The acts referred to in this article contain the necessary provisions in terms of
legal guarantees .
SECTION 5
RULES ON COMPETITION
Sub-section 1
Rules applicable to undertakings
Article III-161
1. All agreements between undertakings, all
decisions by associations of undertakings and all concerted practices, which are liable to affect the internal market and are prohibited. ” affect
trade between Member States and the object or effect of which is to prevent, restrict or
distort competition within the internal market, and in particular those which consist of:
(a) directly or indirectly fix purchase or selling prices, or other
trading conditions ;
b) limit or control production, outlets, technical development or
investments;
c) share markets or sources of supply;
d) apply unequal conditions to
equivalent services with regard to trading partners, thereby placing them at a competitive disadvantage;
e) make the conclusion of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage, have no connection with
the subject of such contracts.
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2. Agreements or decisions prohibited under this Article shall be automatically void.
3. However, paragraph 1 may be declared inapplicable:
– to any agreement or category of agreements between undertakings,
– to any decision or category of decisions of associations of undertakings, and
– to any concerted practice or category of concerted practices
which contribute to improving the production or distribution of products or to promoting
technical or economic progress , while reserving for users a fair share of the resulting profit
, and without:
(a) impose restrictions on the undertakings concerned which are not indispensable to the attainment of
these objectives;
(b) give undertakings the possibility, for a substantial part of the products in question,
of eliminating competition.
Article III-162
Is incompatible with the internal market and prohibited, insofar as trade between
Member States is likely to be affected, the fact that one or more undertakings
abuse a dominant position on the internal market or in a substantial part of it.
These abusive practices may consist in particular in:
a) directly or indirectly imposing purchase or sale prices, or other conditions of
unfair transaction;
b) limit production, outlets or technical development to the detriment of
consumers;
(c) apply unequal conditions to
equivalent services with regard to trading partners, thereby placing them at a competitive disadvantage;
d) make the conclusion of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage, have no connection with
the subject of such contracts.
Article III-163
The Council, on a proposal from the Commission, shall adopt European regulations for the application of
principles set out in Articles III-161 and III-162. It acts after consulting the European Parliament.
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The purpose of these regulations is in particular: (
a) to ensure compliance with the prohibitions referred to in Article III-161, paragraph 1, and in Article III- 162 by
the institution of fines and periodic penalty payments;
b) determine the modalities of application of Article III-161, paragraph 3, taking into account the
need, on the one hand, to ensure effective supervision and, on the other hand, to simplify throughout the
as far as possible administrative control;
c) to specify, where appropriate, in the various economic branches, the scope of
Articles III-161 and III-162;
d) define the respective roles of the Commission and of the Court of Justice of the European Union in
the application of the provisions referred to in this subparagraph;
e) to define the relationship between the laws of the Member States, on the one hand, and this subsection as
well as the European regulations adopted in application of this article, on the other hand.
Article III-164
Until the entry into force of the European regulations adopted in application of Article III-163, the
authorities of the Member States shall rule on the admissibility of cartels and on the abuse of a
dominant position on the internal market, in accordance with their national law and
in particular paragraph 3 thereof, and Article III-162.
Article III-165
1. Without prejudice to Article III-164, the Commission shall ensure the application of the principles set out in
Articles III-161 and III-162. It examines, at the request of a Member State or of its own motion, and in conjunction with
the competent authorities of the Member States which assist it, in cases of
suspected infringement of those principles. If it finds that there has been an infringement, it proposes the appropriate means to
put an end to it.
2. If the infringements referred to in paragraph 1 are not brought to an end, the Commission shall adopt a
reasoned European decision finding the infringement of the principles. It can publish its decision and authorize the
Member States to take the necessary measures, for which it defines the conditions and modalities, to
remedy the situation.
3. The Commission may adopt European regulations concerning the categories of agreements in
respect of which the Council has adopted a European regulation in accordance with Article III-163, second
paragraph, point (b).
Article III-166
1. Member States, with regard to public enterprises and enterprises to which they
grant special or exclusive rights, shall not enact or maintain any measure contrary to the
Constitution, in particular Article I-4 , paragraph 2, and Articles III-161 to III-169.
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2. The companies responsible for the management of services of general economic interest or presenting the
character of a fiscal monopoly are subject to the provisions of the Constitution, in particular to the
competition rules, insofar as the application of these provisions does not apply. not failure to
fulfill in law or in fact the particular mission assigned to them. The
development of trade must not be affected to an extent contrary to the interests of the Union.
3. The Commission shall ensure the application of this article and adopt, as necessary, the
appropriate European regulations or decisions.
Subsection 2
Aid granted by Member States
Article III-167
1. Save for derogations provided for in the Constitution,
aid granted by Member States
or through State resources in any form whatsoever is incompatible with the internal market in so far as they affect trade between Member States. distort or threaten to
distort competition by favoring certain companies or certain productions.
2. The following are compatible with the internal market: (
a) aid of a social nature granted to individual consumers, provided that it is
granted without discrimination linked to the origin of the products;
(b) aid intended to remedy damage caused by natural disasters or other
extraordinary events;
(c) aid granted to the economy of certain regions of the Federal Republic of Germany
affected by the division of Germany, in so far as they are necessary to compensate for
the economic disadvantages caused by this division. Five years after the entry into force of the
Treaty establishing a Constitution for Europe, the Council, on a proposal from the Commission,
may adopt a European decision repealing this point.
3. The following may be considered compatible with the internal market: (
a) aid intended to promote the economic development of regions in which the standard
of living is abnormally low or in which there is serious underemployment, as well as that of
regions referred to in Article III-424, taking into account their structural, economic and social situation;
(b) aid intended to promote the execution of an important project of common European interest
or to remedy a serious disturbance in the economy of a Member State;
(c) aid intended to facilitate the development of certain activities or of certain
economic regions , when it does not adversely affect trading conditions to an extent contrary to
the common interest;
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d) aid intended to promote culture and heritage conservation, when it
does not adversely affect the conditions of trade and competition in the
contrary to the common interest;
e) other categories of aid determined by European regulations or decisions adopted by the
Council on a proposal from the Commission.
Article III-168
1. The Commission, together with the Member States, shall continuously examine the aid schemes
existing in those States. It proposes to them the useful measures required by the progressive development or
the functioning of the internal market.
2. If, after giving the interested parties formal notice to submit their observations, the Commission
finds that aid granted by a Member State or through State resources is not
compatible with the internal market under the terms of the article III-167,
abusively, it adopts a European decision aimed at having the Member State concerned
abolish or modify it within the time limit that it determines.
If the Member State in question does not comply with this European decision within the time limit set, the
Commission or any other interested Member State may apply directly to the Court of Justice of the
European Union , by way of derogation from Articles III-360 and III -361.
At the request of a Member State, the Council may unanimously adopt a European decision according to
which aid, instituted or to be instituted by that State, must be considered compatible with the
internal market, by way of derogation from Article III- 167 or the European regulations provided for in article III-
169, if exceptional circumstances justify such a decision. If, with regard to this aid, the
Commission has initiated the procedure provided for in the first subparagraph of this paragraph, the request of the
Member State concerned addressed to the Council shall have the effect of suspending the said procedure until the adoption of a
position by the Council. Advice.
However, if the Council has not adopted a position within three months of the request, the
Commission shall act.
3. The Commission shall be informed by the Member States, in good time for submitting its
observations, of plans to introduce or modify aid. If it considers that a project is
not compatible with the internal market, under the terms of Article III-167, it shall immediately
initiate the procedure provided for in paragraph 2 of this article. The Member State concerned may not carry
out the planned measures before this procedure has resulted in a final decision.
4. The Commission may adopt European regulations concerning the categories of State aid
which the Council has determined, in accordance with Article III-169, to be exempt from the
procedure provided for in paragraph 3 of this article.
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Article III-169
The Council, on a proposal from the Commission, may adopt European regulations for
the application of Articles III-167 and III-168 and in particular to lay down the conditions for the application of
Article III-168, paragraph 3, and the categories of aid which are exempt from the procedure provided for in that
paragraph. It acts after consulting the European Parliament.
SECTION 6
TAX PROVISIONS
Article III-170
1. No Member State
shall impose, directly or indirectly, the products of other Member States internal charges of any kind whatsoever greater than those imposed
directly or indirectly on similar national products.
In addition, no Member State imposes charges on the products of other Member States.
domestic so as to indirectly protect other productions.
2. Products exported from one Member State to the territory of another Member State may not
benefit from any drawback on internal taxes greater than the taxes on which they have been imposed
directly or indirectly.
3. As regards charges other than turnover taxes, excise duties
and other indirect taxes, exemptions and refunds on exports to other
Member States cannot be applied, and compensation taxes on imports from
Member States can only be established in so far as the envisaged provisions have been
previously approved for a limited period by a European decision adopted by the
Council on a proposal from the Commission.
Article III-171
A European law or framework law of the Council shall establish measures concerning the harmonization of
laws relating to turnover taxes, excise duties and other indirect taxes,
provided that this harmonization is necessary for ensure the establishment or
functioning of the internal market and avoid distortions of competition. The Council acts
unanimously, after consulting the European Parliament and the Economic and Social Committee.
SECTION 7
COMMON PROVISIONS
Article III-172
1. Unless the Constitution provides otherwise, this article shall apply for the attainment of the
objectives referred to in article III-130. European laws or framework laws establish the measures relating to the
approximation of the laws, regulations and administrative provisions of the Member States which
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have as their object the establishment or functioning of the market interior. It is adopted after
consultation of the Economic and Social Committee.
2. Paragraph 1 shall not apply to fiscal provisions, to provisions relating to the free
movement of persons and to those relating to the rights and interests of employed workers.
3. The Commission, in its proposals submitted under paragraph 1 on health,
safety, environmental protection and consumer protection, shall take as a basis
a high level of protection, taking into account in particular any new development. based on
scientific facts. Within the framework of their respective powers, the European Parliament and the
Council also endeavor to achieve this objective.
4. If, after the adoption of a harmonization measure by a European law or framework law, or by
a European Commission regulation, a Member State considers it necessary to maintain
national provisions justified by important requirements referred to in the
protection of the environment or the working environment, it shall notify them to the Commission, indicating
the reasons for their maintenance.
5. Furthermore, without prejudice to paragraph 4, if, after the adoption of a harmonization measure by
a European law or framework law or a European Commission regulation, a Member State
considers it necessary to introduce provisions national laws based on
new scientific evidence relating to the protection of the environment or the working environment due to a
specific problem in that Member State which arises after the adoption of the harmonization measure, it shall notify the
Commission the measures envisaged as well as their motivation.
6. Within six months of the notifications referred to in paragraphs 4 and 5, the Commission shall
adopt a European decision approving or rejecting the national provisions in question after
having verified whether or not they are a means of arbitrary discrimination or a disguised restriction
in trade between Member States and whether or not they constitute an obstacle to the functioning
of the internal market.
In the absence of a Commission decision within this period, the national provisions referred to in
paragraphs 4 and 5 shall be deemed to be approved.
When justified by the complexity of the matter and in the absence of a health hazard
human rights, the Commission may notify the Member State in question that the period referred to in this
paragraph is extended by a further period of up to six months.
7. Where, pursuant to paragraph 6, a Member State is authorized to maintain or introduce
national provisions derogating from a harmonization measure, the Commission shall
immediately examine whether it is appropriate to propose an adaptation of that measure.
8. When a Member State raises a particular public health problem in an area which
has previously been the subject of harmonization measures, it shall inform the Commission, which shall
immediately examine whether it is necessary to propose appropriate measures. .
9. By way of derogation from the procedure provided for in Articles III-360 and III-361, the Commission and any
Member State may apply directly to the Court of Justice of the European Union if they consider that another
Member State is abusing of the powers provided for in this article.
C 310/74 EN Official Journal of the European Union 16.12.2004
10. The harmonization measures referred to in this Article shall include, where appropriate, a
safeguard clause authorizing Member States to take, for one or more of the reasons non-
economic referred to in Article III-154, provisional measures subject to a control procedure
by the Union.
Article III-173
Without prejudice to Article III-172, a European framework law of the Council shall establish measures for the
approximation of the laws, regulations and administrative provisions of the Member States which
have a direct impact on the establishment or the functioning of the internal market. The Council
acts unanimously, after consulting the European Parliament and the Economic and Social Committee.
Article III-174
Should the Commission find that a disparity between the laws, regulations
or administrative provisions of the Member States distorts the conditions of competition on the internal market and
causes a distortion which must be eliminated, it shall consult the Member States concerned.
If this consultation does not lead to an agreement, the European framework law establishes the necessary measures
to eliminate the distortion in question. All other useful measures provided for by the Constitution may
be adopted.
Article III-175
1. Where there is reason to fear that the adoption or amendment of a legislative,
regulatory or administrative provision of a Member State might cause a distortion within the meaning of Article III-
174, Any Member State wishing to do so consults the Commission. After having consulted the
Member States , the Commission shall address to the Member States concerned a recommendation on the
appropriate measures to avoid the distortion in question.
2. If the Member State which wishes to establish or amend national provisions does not comply with the
recommendation addressed to it by the Commission, the other
Member States may not be requested , pursuant to Article III-174, to modify their national provisions in order
to eliminate this distortion. If the Member State which has disregarded the Commission recommendation
causes a distortion to its sole detriment, Article III-174 shall not apply.
Article III-176
Within the framework of the establishment or the functioning of the internal market, the European law or framework
law establishes the measures relating to the creation of European securities to ensure protection
uniformity of intellectual property rights in the Union, and the establishment
of centralized authorization, coordination and control regimes at Union level.
A European law of the Council establishes the language regimes for European titles. The Council acts
unanimously, after consulting the European Parliament.

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