Treaty On The Functioning Of The European Union
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The Treaty on the Functioning of the European Union (TFEU) is one of two treaties forming the constitutional basis of the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
(EU), the other being the
Treaty on European Union The Treaty on European Union (2007) is one of the primary Treaties of the European Union, alongside the Treaty on the Functioning of the European Union (TFEU). The TEU form the basis of EU law, by setting out general principles of the EU's pu ...
(TEU). It was previously known as the Treaty Establishing the European Community (TEC). The Treaty originated as the
Treaty of Rome The Treaty of Rome, or EEC Treaty (officially the Treaty establishing the European Economic Community), brought about the creation of the European Economic Community (EEC), the best known of the European Communities (EC). The treaty was sig ...
(fully the ''Treaty establishing the European Economic Community''), which brought about the creation of the
European Economic Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
(EEC), the best-known of the
European Communities The European Communities (EC) were three international organizations that were governed by the same set of institutions. These were the European Coal and Steel Community (ECSC), the European Atomic Energy Community (EAEC or Euratom), and the ...
(EC). It was signed on 25 March 1957 by
Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
,
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
,
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...
,
Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
, the
Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...
and
West Germany West Germany is the colloquial term used to indicate the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification through the accession of East Germany on 3 O ...
and came into force on 1 January 1958. It remains one of the two most important treaties in the modern-day
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
(EU). Its name has been amended twice since 1957. The
Maastricht Treaty The Treaty on European Union, commonly known as the Maastricht Treaty, is the foundation treaty of the European Union (EU). Concluded in 1992 between the then-twelve member states of the European Communities, it announced "a new stage in the ...
of 1992 removed the word "economic" from the Treaty of Rome's official title and, in 2009, the
Treaty of Lisbon The Treaty of Lisbon (initially known as the Reform Treaty) is an international agreement that amends the two treaties which form the constitutional basis of the European Union (EU). The Treaty of Lisbon, which was signed by the EU member sta ...
renamed it the "Treaty on the Functioning of the European Union". Following the 2005 referendums, which saw the failed attempt at launching a
European Constitution The Treaty establishing a Constitution for Europe (TCE; commonly referred to as the European Constitution or as the Constitutional Treaty) was an unratified international treaty intended to create a consolidated constitution for the European U ...
, on 13 December 2007 the Lisbon Treaty was signed. This saw the 'TEC' renamed as the Treaty on the Functioning of the European Union (TFEU) and, once again, renumbered. The Lisbon reforms resulted in the merging of the three pillars into the reformed European Union. In March 2011, the
European Council The European Council (informally EUCO) is a collegiate body that defines the overall political direction and priorities of the European Union. It is composed of the heads of state or government of the EU member states, the President of the E ...
adopted a decision to amend the Treaty by adding a new paragraph to Article 136. The additional paragraph, which enables the establishment of a financial stability mechanism for the
Eurozone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU policies ...
, runs as follows:


Present contents

The consolidated TFEU consists of seven parts:


Part 1, Principles

In principles, article 1 establishes the basis of the treaty and its legal value. Articles 2 to 6 outline the competencies of the EU according to the level of powers accorded in each area. Articles 7 to 14 set out social principles, articles 15 and 16 set out public access to documents and meetings and article 17 states that the EU shall respect the status of religious, philosophical and non-confessional organisations under national law.


Part 2, Non-discrimination and citizenship of the Union

The second part begins with article 18 which outlaws, within the limitations of the treaties, discrimination on the basis of nationality. Article 19 states the council with the consent of the
European Parliament The European Parliament (EP) is one of the legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it adopts ...
"may take appropriate action to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation". Articles 20 to 24 establishes
EU citizenship European Union citizenship is afforded to all citizens of member states of the European Union (EU). It was formally created with the adoption of the 1992 Maastricht Treaty, at the same time as the creation of the EU. EU citizenship is additio ...
and accords rights to it; to free movement,
consular A consul is an official representative of the government of one state in the territory of another, normally acting to assist and protect the citizens of the consul's own country, as well as to facilitate trade and friendship between the people ...
protection from other states, vote and stand in local and
European elections Elections to the European Parliament take place every five years by universal adult suffrage; with more than 400 million people eligible to vote, they are considered the second largest democratic elections in the world after India's. Until ...
, right to petition Parliament and the
European Ombudsman The European Ombudsman is an inter-institutional body of the European Union that holds the institutions, bodies and agencies of the EU to account, and promotes good administration. The Ombudsman helps people, businesses and organisations facing ...
and to contact and receive a reply from EU institutions in their own language. Article 25 requires the commission to report on the implementation of these rights every three years.


Part 3, Union policies and internal actions

Part 3 is the largest in the TFEU. Articles 26 to 197 concern the substantive policies and actions of the EU.


Title I: Internal market


Title II: Free movement of goods

Including the
customs union A customs union is generally defined as a type of trade bloc which is composed of a free trade area with a common external tariff.GATTArticle 24 s. 8 (a) Customs unions are established through trade pacts where the participant countries set up ...


Title III: Agriculture and Fisheries

Common Agricultural Policy The Common Agricultural Policy (CAP) is the agricultural policy of the European Union. It implements a system of agricultural subsidies and other programmes. It was introduced in 1962 and has since then undergone several changes to reduce the ...
and Common Fisheries Policy


Title IV: Free movement of workers, services and capital

Title IV concerns free movement of people, services and capital: *Chapter 1: Workers (articles 45–48, ex articles 39–42 TEC), including the right to move freely in order to "accept noffer of
employment Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
actually made *Chapter 2: Right of Establishment (articles 49–55), including the right to take up and pursue activities as self-employed person *Chapter 3: Services (articles 56–62) *Chapter 4: Capital and Payments (articles 63–66)


Title V: Area of freedom, justice and security

Including police and justice co-operation


Title VI: Transport


Title VII: Common Rules on Competition, Taxation and Approximation of Laws

European Union competition law European competition law is the competition law in use within the European Union. It promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not crea ...
, taxation and harmonisation of regulations (note Article 101 and Article 102)


Title VIII: Economic and monetary policy

Articles 119 to 144 concern economic and
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often a ...
, including articles on the euro. ''Chapter 1: Economic policy - Article 122'' deals with unforeseen problems in the supply chain and "severe difficulties caused by natural disasters or exceptional occurrences beyond its control" ''Chapter 1: Economic policy – Article 126'' deals with how excessive member state
debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...
is handled. ''Chapter 2: Monetary policy – Article 127'' outlines that the
European System of Central Banks The European System of Central Banks (ESCB) is an institution that comprises the European Central Bank (ECB) and the national central banks (NCBs) of all 27 member states of the European Union (EU). Its objective is to ensure price stability t ...
should maintain price stability and work with the principles of an open markets and free competition. The ''Article 140'' describes the criteria for inclusion in monetary union (the euro) or having exception from it, and also says that it is a majority of the council, not the state alone, which decides upon usage of euro or national currency. Thereby are states obliged (except UK and Denmark) to introduce the euro if the council finds they fulfil the criteria.


Titles IX to XV: Employment, social and consumer policy

Title IX concerns employment policy, under articles 145–150. Title X concerns social policy, and with reference to the European Social Charter 1961 and the
Community Charter of the Fundamental Social Rights of Workers 1989 The Community Charter of the Fundamental Social Rights of Workers (9 December 1989) is a principles-based charter of human rights that apply specifically to the workforce in the European Union. It is used as an interpretative aid by the Court of Jus ...
. This gives rise to the weight of
European labour law European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition for job-creatin ...
. Title XI establishes the
European Social Fund The European Social Fund Plus (ESF+) is one of the European Structural and Investment Funds (ESIFs), which are dedicated to improving social cohesion and economic well-being across the regions of the Union. The funds are redistributive financ ...
under articles 162–164. Title XII, articles 165 and 166 concern education, vocational training, youth and sport policies. Title XIII concerns culture, in article 167. Title XIV allows measures for public health, under article 168. Title XV empowers the EU to act for consumer protection, in article 169.


Titles XVI to XXIV: Networks, industry, environment, energy, other

Title XVI, articles 170–172 empower action to develop and integrate
Trans-European Networks The Trans-European Networks (TEN) were created by the European Union by Articles 154–156 of the Treaty of Rome (1957), with the stated goals of the creation of an internal market and the reinforcement of economic and social cohesion. To various ...
. Title XVII, article 173, regards the EU's industrial policy, to promote industry. Title XVIII, articles 174 to 178 concern economic, social and territorial cohesion (reducing disparities in development). Title XIX concerns research and development and space policy, under which the
European Research Area The European Research Area (ERA) is a system of scientific research programs integrating the scientific resources of the European Union (EU). Since its inception in 2000, the structure has been concentrated on European cooperation in the fields of ...
and European Space Policy are developed. Title XX concerns the increasingly important environmental policy, allowing action under articles 191 to 193. Title XXI, article 194, establishes the Energy policy of the European Union. Title XXII, article 195 is tourism. Title XXIII, article 196 is civil protection. Title XXIV, article 197 is administrative co-operation.


Part 4, Association of the overseas countries and territories

Part 4, in articles 198 to 204, deals with association of overseas territories. Article 198 sets the objective of association as promoting the economic and social development of those associated territories as listed in annexe 2. The following articles elaborate on the form of association such as customs duties.


Part 5, External action by the Union

Part 5, in articles 205 to 222, deals with
EU foreign policy The Common Foreign and Security Policy (CFSP) is the organised, agreed foreign policy of the European Union (EU) for mainly security and defence diplomacy and actions. CFSP deals only with a specific part of the EU's external relations, which ...
. Article 205 states that external actions must be in accordance with the principles laid out in Chapter 1 Title 5 of the Treaty on European Union. Article 206 and 207 establish the common commercial (external trade) policy of the EU. Articles 208 to 214 deal with co-operation on development and humanitarian aid for third countries. Article 215 deals with sanctions while articles 216 to 219 deal with procedures for establishing international treaties with third countries. Article 220 instructs the High Representative and Commission to engage in appropriate co-operation with other international organisations and article 221 establishes the EU delegations. Article 222, the ''Solidarity clause'' states that members shall come to the aid of a fellow member who is subject to a terrorist attack, natural disaster or man-made disaster. This includes the use of military force.


Part 6, Institutional and financial provisions

Part 6, in articles 223 to 334, elaborates on the institutional provisions in the Treaty on European Union. As well as elaborating on the structures, articles 288 to 299 outline the forms of legislative acts and procedures of the EU. Articles 300 to 309 establish the
European Economic and Social Committee The European Economic and Social Committee (EESC) is a consultative body of the European Union (EU) established in 1958. It is an advisory assembly composed of "social partners", namely: employers ( employers' organisations), employees (trade ...
, the
Committee of the Regions The European Committee of the Regions (CoR) is the European Union's (EU) assembly of local and regional representatives that provides sub-national authorities (i.e. regions, counties, provinces, municipalities and cities) with a direct voice w ...
and the
European Investment Bank The European Investment Bank (EIB) is the European Union's investment bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solutions ...
. Articles 310 to 325 outline the
EU budget The Budget of the European Union (EU budget) is used to finance EU funding programmes (such as the European Regional Development Fund, the Cohesion Fund, Horizon Europe, or Erasmus+) and other expenditure at the European level. The EU budget ...
. Finally, articles 326 to 334 establishes provision for
enhanced co-operation In the European Union (EU), enhanced cooperation (previously known as closer cooperation) is a procedure where a minimum of nine Member state of the European Union, EU member states are allowed to establish advanced European integration, integrat ...
.


Part 7, General and final provisions

Part 7, in articles 335 to 358, deals with final legal points, such as territorial and temporal application, the seat of institutions (to be decided by member states, but this is enacted by a protocol attached to the treaties), immunities and the effect on treaties signed before 1958 or the date of accession.


See also

*
Berlin Declaration (2007) The Berlin Declaration (officially the Declaration on the occasion of the 50th anniversary of the signature of the Treaty of Rome) is a non-binding European Union (EU) text that was signed on 25 March 2007 in Berlin (Germany), celebrating the fi ...
* Four Freedoms (European Union)


References

{{Authority control Treaties concluded in 1957 Treaties entered into force in 1958 Euro