Treaty on the Functioning of the European Union

Treaty on the Functioning of the European Union
Name	Treaty on the Functioning of the European Union
Caption	The Flag of Europe symbolises the European Union.
Type	Founding treaty
Date signed	25 March 1957
Location signed	Rome, Italy
Date effective	1 January 1958
Condition effective	Ratification by Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands.
Signatories	Paul-Henri Spaak, Konrad Adenauer, Christian Pineau, Antonio Segni, Joseph Bech, Joseph Luns
Parties	27 EU member states
Depositor	Government of the Italian Republic
Languages	24 official languages
Wikisource	Treaty on the Functioning of the European Union

Treaty on the Functioning of the European Union. The Treaty on the Functioning of the European Union is one of the two primary constitutional treaties of the European Union, providing the detailed legal basis for most of the bloc's policies and activities. Originally signed in Rome in 1957 as the Treaty establishing the European Economic Community, it was substantially renamed and amended by the Treaty of Lisbon in 2007. Together with the Treaty on European Union, it forms the consolidated foundation of the European Union's legal and institutional architecture.

History and development

The treaty originated as the Treaty establishing the European Economic Community, signed in the Capitoline Museums in Rome on 25 March 1957 by the six founding members: Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. This Rome Treaty entered into force on 1 January 1958, creating a common market and laying the groundwork for deeper economic integration. Key revisions were introduced by the Single European Act in 1986, which strengthened the institutional framework to complete the European Single Market. The Maastricht Treaty of 1992 formally renamed it the Treaty establishing the European Community and integrated it into the new three-pillar structure of the European Union. Its most profound transformation came with the Treaty of Lisbon in 2007, which abolished the pillar system, gave it its current name, and merged the European Community into the overarching European Union.

Key principles and objectives

The treaty establishes the European Union as an entity based on the rule of law, outlining core principles such as conferral, subsidiarity, and proportionality which govern the exercise of its competences. Its fundamental objectives include the promotion of peace and the well-being of its peoples, the establishment of an internal market characterised by the free movement of goods, persons, services, and capital, and the pursuit of sustainable development. It enshrines the prohibition of discrimination on grounds of nationality and commits the European Union to a highly competitive social market economy, aiming for full employment and social progress. The treaty also provides the legal basis for the Charter of Fundamental Rights of the European Union to have full legal effect.

Institutional framework and decision-making

The treaty details the roles, powers, and interactions of the main European Union institutions. The European Commission is identified as the executive body with the sole right of legislative initiative in most areas, while the European Parliament, directly elected by European Union citizens, and the Council of the European Union, representing member state governments, jointly exercise legislative and budgetary functions. The Court of Justice of the European Union ensures the uniform interpretation and application of European Union law. Decision-making procedures, chiefly the ordinary legislative procedure and special legislative procedures, are meticulously defined, alongside voting mechanisms in the Council of the European Union such as qualified majority voting. The treaty also outlines the functions of the European Council, the European Central Bank, and the Court of Auditors.

Policy areas and competences

The treaty delineates the European Union's areas of competence, categorising them as exclusive, shared, or supporting. Exclusive competences include areas like the customs union, the conservation of marine biological resources under the Common Fisheries Policy, and monetary policy for eurozone members. Shared competences, where both the European Union and member states can legislate, cover a vast range of fields including the internal market, agriculture, transport, energy, and environmental policy. The treaty provides specific legal bases for policies such as the Common Agricultural Policy, Common Commercial Policy, Area of Freedom, Security and Justice, and Trans-European Networks. It also establishes provisions for competition law and state aid control to ensure the proper functioning of the internal market.

Relationship with other EU treaties

The Treaty on the Functioning of the European Union is inextricably linked with the Treaty on European Union, with both treaties possessing equal legal value and together constituting the European Union's foundational treaties. The Treaty on European Union sets out the broader constitutional principles, objectives, and provisions on foreign policy, while the Treaty on the Functioning of the European Union provides the detailed operational rules. The Charter of Fundamental Rights of the European Union was given binding force by reference in the Treaty on European Union. Furthermore, the treaty's provisions are interpreted in light of the general principles of European Union law developed by the Court of Justice of the European Union, and it interacts with international agreements concluded by the European Union, such as those within the World Trade Organization.

Amendments and reform

The treaty has been amended numerous times since its inception, each change requiring ratification by all member states according to their constitutional requirements. Major amendments were made by the Single European Act, the Maastricht Treaty, the Treaty of Amsterdam, the Treaty of Nice, and most comprehensively by the Treaty of Lisbon. The Treaty of Lisbon also introduced the ordinary revision procedure and a simplified revision procedure for amending certain internal policies. Failed attempts at broader reform, such as the Treaty establishing a Constitution for Europe which was rejected by referendums in France and the Netherlands in 2005, demonstrated the political challenges of treaty change. Future amendments remain possible, often discussed in conventions like the Conference on the Future of Europe.

Category:European Union treaties Category:1957 in Europe Category:Treaties established in 1957