Treaty on the Functioning of the European Union
The Treaty on the Functioning of the European Union is one of two treaties forming the constitutional basis of the European Union, the other being the Treaty on European Union. It was previously known as the Treaty Establishing the European Community.
The Treaty originated as the Treaty of Rome, which brought about the creation of the European Economic Community, the best-known of the European Communities. It was signed on 25 March 1957 by Belgium, France, Italy, Luxembourg, the Netherlands and West Germany and came into force on 1 January 1958. It remains one of the two most important treaties in the modern-day European Union.
Its name has been amended twice since 1957. The Maastricht Treaty of 1992 removed the word "economic" from the Treaty of Rome's official title and, in 2009, the Treaty of Lisbon 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, on 13 December 2007 the Lisbon Treaty was signed. This saw the 'TEC' renamed as the Treaty on the Functioning of the European Union 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 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, runs as follows:
Provisions
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 "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 and accords rights to it; to free movement, consular protection from other states, vote and stand in local and European elections, right to petition Parliament and the European Ombudsman 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 II: Free movement of goods
Including the customs unionTitle III: Agriculture and Fisheries
Common Agricultural Policy and Common Fisheries PolicyTitle IV: Free movement of workers, services and capital
Title IV concerns free movement of people, services and capital:- Chapter 1: Workers, including the right to move freely in order to "accept offer of employment actually made
- Chapter 2: Right of Establishment, including the right to take up and pursue activities as self-employed person
- Chapter 3: Services
- Chapter 4: Capital and Payments, including free movement of "capital between member states and between member states and third countries".
Title V: Area of freedom, justice and security
Including police and justice co-operationTitle VII: Common Rules on Competition, Taxation and Approximation of Laws
European Union competition law, taxation and harmonisation of regulationsTitle VIII: Economic and monetary policy
Articles 119 to 144 concern economic and monetary policy, 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 is handled. Chapter 2: Monetary policy – Article 127 outlines that the European System of Central Banks 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 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 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. This gives rise to the weight of European labour law.Title XI establishes the European Social Fund 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. 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. Title XIX concerns research and development and space policy, under which the European Research Area 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.