Law Approving The Treaty Establishing The European Stability Mechanism (Esm) Signed In Brussels On 2 February 2012 (1) (2)

Original Language Title: Loi portant assentiment au Traité instituant le Mécanisme européen de Stabilité (MES), signé à Bruxelles le 2 février 2012 (1) (2)

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Posted the: 2012-07-09 Numac: 2012015106 Foreign Affairs, external trade and development COOPERATION FEDERAL PUBLIC SERVICE June 20, 2012. -Law concerning consent to the Treaty establishing the European stability mechanism (ESM), signed in Brussels on 2 February 2012 (1) (2) ALBERT II, King of the Belgians, to all, present and future, hi.
The Chambers have adopted and we endorse the following: Article 1. This Act regulates a matter referred to in article 77 of the Constitution.
S.
2. the Treaty establishing the European stability mechanism (ESM) signed in Brussels on 2 February 2012, will release its full and complete effect.
S. (3. the decisions of the Board of Governors in accordance with articles 5, paragraph 6, m), 11, paragraphs 6, 19 and 44 of the Treaty establishing the European stability mechanism (ESM), will release their full and complete effect.
Promulgate this Act, order that it self under the seal of the State and published by le Moniteur.
Given to Brussels, June 20, 2012.
ALBERT by the King: the Deputy Prime Minister and Minister of finance, S. VANACKERE.
The Deputy Prime Minister and Minister for Foreign Affairs, D.
REYNDERS.
The Minister for the Budget, O. CHASTEL sealed with the seal of the State: _ Note (1) Session 2011-2012.
Senate.
Documents: Bill filed May 29, 2012, no. 5 - 1598/1.
Report, no. 5-1598/2.
Parliamentary Annals Discussion, meeting of June 7, 2012.
Vote, meeting of June 7, 2012.
Room Documents: Draft transmitted by the Senate, no. 53-2251/1.
Report on behalf of the commission 53-2251/2.
Text adopted in plenary meeting and submitted to the Royal assent, no 53-2251/3.
Parliamentary Annals Discussion, meeting of June 14, 2012.
Vote, meeting of June 14, 2012.

TREATY ESTABLISHING THE MECHANISM EUROPEAN STABILITY BETWEEN THE KINGDOM OF BELGIUM, THE FEDERAL REPUBLIC OF GERMANY, THE REPUBLIC OF ESTONIA, IRELAND, THE REPUBLIC OF GREECE, THE KINGDOM OF SPAIN, THE FRENCH REPUBLIC, THE ITALIAN REPUBLIC, THE REPUBLIC OF CYPRUS, THE GRAND DUCHY OF LUXEMBOURG, MALTA, THE KINGDOM OF THE NETHERLANDS, THE REPUBLIC OF AUSTRIA, THE PORTUGUESE REPUBLIC, THE REPUBLIC OF SLOVENIA, THE SLOVAK REPUBLIC AND THE REPUBLIC OF FINLAND THE CONTRACTING PARTIES , the Kingdom of Belgium, the Federal Republic of Germany, the Republic of Estonia, the Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Grand Duchy of Luxembourg, Malta, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Slovenia, the Slovak Republic and the Republic of Finland (hereinafter referred to as "The euro area Member States" or "members of my");
DETERMINED to ensure the financial stability of the eurozone, recalling the conclusions of the European Council of 25 March 2011 on the institution of a European stability mechanism, whereas EC that follows: (1) the European Council agreed on 17 December 2010 that it was necessary that the Member States of the euro area implement a permanent stability mechanism. This European stability mechanism ("MES") will assume the role currently attributed to the European financial stability facility ("EFSF") facility and the European financial stabilisation mechanism ("EFSM") by providing, if necessary, financial assistance to the Member States of the euro area.
(2) March 25, 2011, the European Council adopted the EU-199-2011 Decision amending article 136 of the Treaty on the functioning of the European Union with regard to a stability mechanism for Member States whose currency is the euro (1), adding the following paragraph to article 136: "Member States whose currency is the euro may establish a stability mechanism that will be activated if indispensable to safeguard the stability of the euro area as a whole. The granting, in respect of the mechanism, any necessary financial assistance, shall be subject to a strict conditionality".
(3) in order to improve the effectiveness of financial assistance and to prevent the risk of financial contagion, the heads of State or Government of the Member States whose currency is the euro have agreed July 21, 2011, to "increase [the] flexibility [of my], with appropriate conditions".
(4) strict compliance with the framework put in place by the European Union, integrated macroeconomic surveillance, and in particular the stability and Growth Pact framework applicable to macroeconomic imbalances and the rules of economic governance of the European Union, should remain the first line of defence against confidence crises that affect the stability of the euro area.
(5) on 9 December 2011, the heads of State and Government of Member States whose currency is the euro have agreed to move towards a stronger economic union comprising a new fiscal pact and increased coordination of economic policies which will be implemented through an international agreement, the Treaty on stability, coordination and governance in the economic and Monetary Union ("TSCG"). The TSCG will help develop closer coordination within the euro area in order to ensure good governance sustainable and solid public finances and to answer one of the main sources of financial instability. This Treaty and the TSCG are complementary in the promotion of responsible budget practices and solidarity within the economic and Monetary Union. It is acknowledged and agreed that the granting of financial assistance under the new programmes by virtue of my will be conditioning, from March 1, 2013, the ratification of the TSCG by the Member State concerned and, upon expiry of the transposition period referred to in article 3, paragraph 2, of TSCG, complying with the requirements of this section.
(6) given the strong interdependence in the euro area, the serious risks to the financial stability of Member States whose currency is the euro may jeopardize the financial stability of the eurozone in its together. As a result, the my may grant, on the basis of a strict conditionality adapted to the instrument chosen financial assistance, support for stability, if this is necessary to preserve the financial stability of the eurozone as a whole and its Member States. The initial loan maximum capacity of MES is fixed at EUR 500 billion (500.000.000.000), including support for the stability of the EFSF outstanding. However, the adequacy of the overall maximum volume of loans from my and the EFSF will be re-evaluated before the entry into force of this Treaty. It will be increased, where appropriate, by the Board of Governors of MES, pursuant to section 10, at the time of the entry into force of this Treaty.
(7) all the Member States of the euro area will become members of my. Any Member State of the European Union acceding to the euro area should become a member of my with the same full rights and obligations as those of the contracting parties.
(8) on my will very closely cooperate with the international monetary Fund ("IMF") in the context of the granting of support to stability.
Active involvement of the IMF will be sought, both technically and financially. It is expected of a Member State of the euro zone seeking financial assistance from my address, when possible, a similar request to the IMF.
(9) the Member States of the European Union whose currency is not the euro (non euro area Member States) who participate in individual cases, alongside of my, an operation to support the stability for States members of the euro zone, will be invited to attend, as observers, the meetings of my dealing with this support to stability and its follow-up. They will have access to all the information in good time and will be duly consulted.
(10) on 20 June 2011, the representatives of the Governments of the Member States of the European Union approved the contracting parties to this Treaty to ask the European Commission and the European Central Bank ("ECB") to perform the tasks under this Treaty.
(11) in his statement of 28 November 2010, Eurogroup announced that the collective action ("ACC") and identical provisions standardized will be included in the terms and conditions of all new securities issued by the Member States of the euro area, so as to preserve the liquidity of the markets. As requested by the European Council of March 25, 2011, the specific legal provisions for the inclusion of ACC in government bonds in the euro zone have been finalised by the economic and Financial Committee.
(12) according to the practices of the IMF, in exceptional cases, a participation of the private sector, in a form appropriate and proportionate, will be considered in cases where support for stability is granted, together with a conditionality in the form of a macroeconomic adjustment programme.
(13) as the IMF, the my will provide support to the stability to those of its members who can no longer, or may no longer be able to, normally access to market financing. This is why the heads of State or Government declared that loans granted by the my will benefit from a status of preferred creditor such as those of the IMF, while accepting that the IMF be privileged compared to the My.
This status will be effective from the date of entry into force of this Treaty. In the case of a financial assistance of my granted loans as a result of a European financial assistance program existing at the date of signature of this Treaty, the my benefits from the same seniority

than that of all other loans and obligations of the Member of my recipient, with the exception of the loans from the IMF.
(14) the Member States of the euro area will support the granting of an equivalent creditor status in the my and the other States through a bilateral loan in coordination with the My.
(15) the terms of loan of my Member States subject to a programme of macroeconomic adjustment, including those referred to in article 40 of this Treaty, cover the costs of financing and operating of my and should be consistent with the terms of agreements signed on the one hand, financial assistance loan between the EFSF, the Ireland and the Central Bank of Ireland and other , between the EFSF, the Portuguese Republic and Banco de Portugal.
(16) pursuant to article 273 of the Treaty on the functioning of the European Union ("TFEU"), the Court of justice of the European Union is competent to hear any dispute between the contracting parties or between them and my on the interpretation and application of this Treaty.
(17) a post program monitoring will be exercised by the European Commission and the Council of the European Union within the framework established by articles 121 and 136 of the TFEU, have agreed as follows: Chapter 1. -MEMBERS and purpose ARTICLE first Institution and members 1. By this Treaty, the contracting parties establish among themselves an international financial institution called "European stability mechanism" (hereinafter referred to as "My").
2. the contracting parties are members of my.
SECTION 2 new members 1. The other Member States of the European Union may become members of my from the date of entry into force of the decision of the Council of the European Union, adopted in accordance with article 140, paragraph 2, TFEU, putting an end to the derogation they receive concerning the adoption of the euro.
2. the new members of my are allowed in the same manner and under the same conditions as the countries already members of my, in accordance with article 44.
3. any new Member adhering to the my after its establishment receives in return for its participation in the capital of my, a number of shares determined according to the scale of contributions established in article 11.
ARTICLE 3 purpose the my aims to mobilize financial resources and to provide, under a strict conditionality adapted to the instrument chosen financial assistance, support to the stability to its members who know or may experience severe funding problems, if this is necessary to preserve the financial stability of the euro area in its whole and its Member States. To this end, it is authorized to raise funds by issuing financial instruments or by concluding agreements or financial arrangements or other agreements or arrangements with its members, financial institutions or other third parties.
CHAPTER 2. -DIRECTION ARTICLE 4 Structure and voting rules 1. The my has a Board of Governors and a Board of Directors, as well as an Executive Director and staff deemed necessary.
2. the decisions of the Board of Governors and the Board of Directors are agreed, by a qualified majority or simple majority, in accordance with the provisions of this Treaty. For any decision, a quorum of two-thirds of the members with voting rights representing at least two thirds of the votes must be achieved.
3. the adoption of a decision by mutual consent requires the unanimity of the members participating in the vote. Abstentions shall not preclude the adoption of a decision by mutual agreement.

4. by way of derogation from paragraph 3, an emergency vote procedure is used where the Commission and the ECB consider both as the default for the urgent adoption of a decision on the granting or the implementation of financial assistance as defined in articles 13 to 18, would threaten the sustainability of euro area economic and financial. The adoption of a decision by common agreement between the Governing Council referred to in article 5, paragraph 6, point f) and (g)), and the Board of Directors under the emergency procedure requires a qualified majority of 85% of the votes cast.
When the urgency procedure referred to in the first subparagraph is used, a transfer of the funds reserve and/or the paid-up capital to an emergency reserve fund is made in order to provide a buffer to cover the risks arising out of the financial support granted under the emergency procedure. The Governing Council may decide to cancel the emergency reserve fund and to transfer its contents to the reserve fund and/or the paid-up capital.
5. the adoption of a decision by qualified majority requires 80% of the votes cast.
6. the adoption of a decision by a simple majority requires a majority of the votes cast.
7. each Member of my has a number of votes equal to the number of shares which were attributed to him in the capital authorized from my in accordance with annex II. The right to vote is exercised by the person who has been designated or his alternate the Board of Governors or Board of Directors.
8. when a member of my contributed not one any part of the amount payable in respect of the obligations mandated in connection with paid-up shares or funds referred to in articles 8, 9 and 10, or calls in relation to the reimbursement of the financial assistance provided under section 16 or 17, the Member may exercise his right to vote as long it is in default of payment. The voting thresholds are recalculated accordingly.
ARTICLE 5 1 Governing Council. Each Member of my means a Governor and an alternate Governor, revocable at any time. The Governor is the Member of the Government of the Member of my finance officer. In his absence, his Deputy has full jurisdiction to act on its behalf.
2. the Board of Governors decides either to be chaired by the president of the Eurogroup, referred to in the Protocol (No 14) on the euro group annexed to the Treaty on European Union and to the TFEU, or to elect a Chairman and a Vice-Chairman for a term of two years, among its members. The president and the vice-president can be re-elected. A new election is organised without delay if the holder no longer exercises the function needed to be appointed Governor.
3. the Member of the European Commission responsible for economic and Monetary Affairs and the President of the ECB, as well as the president of the Eurogroup (if it is not itself president or Governor), may participate in the meetings of the Board of Governors as observers.
4. representatives of non-euro area Member States participating in individual cases, alongside of my, in an operation to support the stability for a State member of the euro area are also invited to participate, as observers, in the meetings of the Governing Council which relate to this support to stability and its follow-up.
5. others, including representatives of institutions or organizations such as the IMF, may be invited by the Governing Council to attend the case by case in meetings as observers.
6. the Governing Council shall adopt the following decisions by mutual agreement: has) the cancellation of the emergency reserve fund and the repayment of its contents to the reserve fund or paid-up capital, in accordance with article 4, paragraph 4;
(b) the issuance of new shares to conditions other than the pair, in accordance with article 8, paragraph 2;
c) Fund-raising, in accordance with article 9, paragraph 1;
d) the amendment of the authorized capital of my and the adaptation of its lending capacity, in accordance with article 10, paragraph 1;
e) taking account of a possible updating of the key for subscription to the capital of the ECB, in accordance with article 11, paragraph 3, and the amendments to annex Ire pursuant to article 11, paragraph 6;
f) the granting of support to the stability of MES, including the conditionality of economic policy set out in the memorandum of understanding referred to in article 13, paragraph 3, and the choice of instruments and the modalities and the financial conditions, in accordance with articles 12 to 18;
(g) the granting of the mandate to the Commission to negotiate, in liaison with the ECB, the economic policy conditionality attached to each financial assistance, in accordance with article 13, paragraph 3, h) modification of policy and the guidelines on the pricing of financial assistance, in accordance with article 20;
i) the amendment of the list of instruments of financial assistance for the provision of, in accordance with article 19;
j) modalities for the transfer to the my support granted under the EFSF in accordance with article 40;
k) the approval of any new membership application to the MES, in accordance with article 44.
l) amendments to this Treaty as a direct result of the accession of new members, particularly in the allocation of capital between members of my and the calculation of this distribution as a direct result of the accession of a new Member to the MES, in accordance with article 44. and m) delegation to the Board of Directors of the tasks listed in this article.
7. the Governing Council shall adopt the following decisions by qualified majority: has) the technical procedures for the accession of a new Member to the MES, in accordance with article 44.
b) choice to be chaired by the president of the Eurogroup, or election to a qualified majority of the president

and the Vice-Chairman of the Board of Governors, in accordance with paragraph 2;
c) General regulations of my and rules of procedure applicable to the Board of Governors and the Board of Directors (including the right to establish committees and subsidiary bodies), in accordance with paragraph 9;
(d) the establishment of the list of activities incompatible with the obligations of a Director or an alternate Director in accordance with article 6, paragraph 8).
(e) the appointment and removal of the Director general, in accordance with article 7;
(f) the establishment of other funds, in accordance with article 24;
(g) measures to recover the amounts owed by a member of my, in accordance with article 25, paragraphs 2 and 3;
h) approval of the annual accounts of my, in accordance with article 27, paragraph 1;
(i) the designation of the members of the Board of Auditors in accordance with article 30, paragraph 1).
j) approval of Auditors the external auditors, in accordance with article 29;
k) the lifting of the immunity of the president of the Governing Council, a Governor, a Deputy Governor, a Director, an alternate Director or Executive Director, in accordance with article 35, paragraph 2;
l) the taxation of agents of my, in accordance with article 36, paragraph 5.
(m) any decision relating to a dispute, in accordance with article 37, paragraph 2; and (n) any other decision necessary, not specifically provided for in this Treaty.
8. the Chairman shall convene and chair the meetings of the Governing Council. In his absence, these meetings are chaired by the Vice-Chairman.
9. the Governing Council shall adopt its rules of procedure as well as the General rules of my.
ARTICLE 6 Board of Directors 1. Each Governor shall designate a Director and an alternate Director, revocable at any time, among persons with a high level of competence in economic and financial matters. An alternate Director has full authority to act on behalf of the administrator in his absence.
2. the Member of the European Commission in charge of economic and Monetary Affairs and the president of the ECB may each appoint an observer.
3. representatives of non-euro area Member States participating in individual cases, alongside of my, an assistance operation financial to a Member State of the euro area are also invited to participate, as observers, in the meetings of the Board of Directors dealing with this financial assistance and its follow-up.
4. other persons, including representatives of institutions or organizations, may be invited by the Governing Council, in individual cases, to attend meetings as observers.
5. the Management Board shall adopt its decisions by a qualified majority, except as otherwise provided in this Treaty. Decisions taken pursuant to a delegation of the Board of Governors shall be adopted in accordance with the relevant voting rules laid down in article 5, paragraphs 6 and 7.
6. without prejudice to the powers of the Governing Council set out in article 5, the Board of Directors shall ensure that the my is managed in accordance with the provisions of this Treaty and of the General regulations of my adopted by the Governing Council. It takes the decisions for which it is responsible under this Treaty or which are delegated by the Board of Governors.
7. it is provided immediately for any vacancy on the Board of Directors in accordance with paragraph 1.
8. the Board of Governors determines the activities which are incompatible with the obligations of a Director or a Deputy Director, the General regulations of my and the rules of procedure of the Governing Council.
ARTICLE 7 director general 1. The Director general is appointed by the Board of Governors among candidates possessing the nationality of a member of, a relevant international experience and a high level of competence in economic and financial matters. During the performance of his duties, the Director-general cannot be neither Governor nor administrator, or substitute one of these functions.
2. the Director general is appointed for a term of five years, renewable only once. Duties however cease where the Governing Council so decides.
3. the Director-general presides over the meetings of the Board of Directors and participates in the Council of Governors.
4. the Director general is the head of the service of my. It is responsible for the Organization of the services of the appointment and revocation of agents of my in accordance with the staff regulations adopted by the Board of Directors.
5. the Executive Director is the legal representative of my and is responsible for the day-to-day management of it under the direction of the Board of Directors.
CHAPTER 3. -Authorized CAPITAL ARTICLE 8 Capital 1. The authorized capital of my is fixed at seven hundred billion euros (700.000.000.000). It is divided into seven (7) million shares, each having a nominal value of one hundred thousand (100,000) euros, which may be subscribed under the initial contribution set out in section 11 and calculated in annex Ire key.
2. the authorized capital consists of paid-up shares and callable shares. The initial total nominal value of fully paid-up shares totalled EUR 80 billion (80.000.000.000). Originally subscribed authorized capital shares are issued at par. The other parts are also issued at par, unless the Governing Council decides, in particular circumstances, to issue to other conditions.
3. the authorized capital units cannot be charged loads or data as collateral, in any way that it is, and may not be transferred, with the exception of assignments for the implementation of adjustments to the contribution key laid down in article 11, to the extent necessary to match their distribution to the new key.
4. the members of my commit irrevocably and unconditionally to provide their contribution to the authorised share capital, in accordance with their key contribution defined in annex I. They meet at a suitable time to all appeals, in accordance with the rules laid down in this Treaty.
5. the responsibility of each Member of MES is limited in all cases, to the proportion of capital allowed to the issue price. No member of my cannot, because of its membership, be held liable for obligations of my. Because the conditions for the granting of financial assistance of my, or receive such assistance, affect in any way the obligation to contribute to the authorized capital of my responsibility to any Member under this Treaty.
ARTICLE 9 1 capital calls. The Governing Council may at any time call not paid-up authorized capital and set a deadline of payment suitable for members of my.
2. the Governing Council may decide by a simple majority to call the authorized capital not released to restore the level of the if, paid-up capital of absorption of losses, its amount is lower than the level set out in article 8, paragraph 2, which may be amended by the Board of Governors following the procedure laid down in article 10, and set a deadline of payment suitable for members of my.
3. the Director-general drew timely authorized capital not released if this is necessary to avoid that the my cannot meet its obligations of payment, programmed or other, to its creditors. He informed the Board of Directors and the Board of Governors of this call. When a lack of potential Fund of MES is detected, the Director-general calls for capital as soon as possible, so that the my has sufficient funds to fully repay its creditors by the planned deadlines. The members of my commit irrevocably and unconditionally to pay on demand the funds requested by the Executive Director under this paragraph within seven (7) days of receipt of the request.
4. the Management Board shall adopt the terms and conditions applicable to the capital appeals under this section.
ARTICLE 10 amendment of the authorized capital 1. The Governing Council shall review regularly and at least every five years the maximum loan capacity and suitability of the authorised capital of my. It may decide to vary the amount of the authorized capital and to amend article 8 and annex II accordingly. This decision shall enter into force after that members of my have informed the depositary of the completion of their applicable national procedures. The new shares allotted to the members of my according to the scale of contributions set out in article 11 and annex Ire.
2. the Management Board shall adopt the terms and conditions applicable to any change to the capital under paragraph 1.
3. where a Member State of the European Union became a new Member of my, the authorized capital of MES is automatically increased by multiplying the respective amounts then in force by the ratio, within the appropriate key established in accordance with article 11, between the weighting of the new Member of my and the weighting of the members of my existing.
ARTICLE 11 contribution key 1. Subject to paragraphs 2 and 3, the key for subscription to the capital contribution allowed from my is based

on the subscription key, by the national central banks of Member of MES, the capital of the ECB, under article 29 of the Protocol (4) concerning the Statute of the European system of central banks and of the European Central Bank (the ' Statute of the ESCB'), annex to the Treaty on the Union European and the TFEU.
2. the key for subscription to the capital contribution allowed from my is determined in annex Ire.
3. the contribution for capital subscription key allowed the MES is adapted when: has) a Member State of the European Union became a new Member of my and that the amount of the authorized capital is increased automatically, in accordance with article 10, paragraph 3; or (b) the temporary correction of a period of twelve (12) years, applicable to a member of my article 42 takes fin. 4. The Governing Council may decide to take account of the possible updates of the key for subscription to the capital of the ECB referred to in paragraph 1, when the key contribution is adjusted in accordance with paragraph 3 or in case of modification of capital authorized pursuant to article 10, paragraph 1.

5. when authorized the contribution for capital subscription key of MES is adapted, members of my conduct between them transfers of authorized capital to the extent necessary to match the distribution of capital allowed the new key.
6. Annex Ire is amended if the Governing Council decides to carry out one of the adjustments provided for in this article.
7. the Board of Directors shall take all other measures necessary for the implementation of this article.
CHAPTER 4. -OPERATIONS ARTICLE 12 principles 1.
If this is necessary to preserve the financial stability of the eurozone as a whole and its Member States, the my may provide to a member of my support to stability, subject to strict conditionality adapted to the financial assistance instrument chosen. This conditionality may take the form, inter alia, of a macroeconomic adjustment programme or the obligation to continue to meet eligibility conditions preset.
2. without prejudice to article 19, support for the stability of my may be granted through the instruments provided for in articles 14 to 18.

3. collective action clauses will be effective January 1, 2013, in all new bonds with a maturity greater than one year which will be issued in the euro area, ensuring them the same legal effect.
ARTICLE 13 Procedure for the granting of support for stability 1. A member of my may address a request for support to stability to the president of the Board of Governors. This States the instrument of financial assistance to consider. Upon receipt of this request, the Chairman of the Board of Governors support the European Commission, in liaison with the ECB: a) to assess the existence of a risk to the financial stability of the eurozone in its whole or its Member States, unless the ECB has already submitted an analysis under article 18, paragraph 2;
(b) to assess the sustainability of the public debt. When this is useful and possible, it is expected that this assessment is conducted in collaboration with the IMF.
(c) to assess the actual or potential funding of the Member needs of my concerned.
2. on the basis of the request of the Member of my and of the assessment referred to in paragraph 1, the Governing Council may decide to grant, in principle, support to the stability in the Member of my concerned in the form of a financial assistance facility.
3. If it adopts a decision pursuant to paragraph 2, the Governing Council support the European Commission B in conjunction with the ECB and, when possible, jointly with the IMF to negotiate with the Member of my concerned a protocol of agreement precisely defining the conditionality which is accompanied by this financial assistance facility. The contents of the Protocol Agreement takes into account the severity of weaknesses to be treated and the chosen instrument of financial assistance. At the same time, the Director-general of my is preparing a proposal for agreement to ease of financial assistance specifying the terms and conditions financial assistance so that the instruments chosen, to be adopted by the Governing Council.
The Protocol agree must be fully compatible with the measures of coordination of the economic policies laid down by the TFEU, including any act of European Union law, including any notice, warning, recommendation or decision addressed to the Member of my concerned.
4. the European Commission signed the MOU on behalf of my, for as much as he respects the conditions set out in paragraph 3 and that it has been approved by the Board of Governors.
5. the Board of Directors approves agreement to ease of financial assistance which specifies the financial aspects of the support to the stability to be granted as well as, where appropriate, the terms of payment of the first instalment of the assistance.
6. the MES implements an appropriate alert system to be sure to receive timely reimbursements owed by the Member of my agenda of support for stability.
7. the European Commission B in conjunction with the ECB and, when possible, jointly with the IMF — is responsible for ensuring compliance with the conditionality attached to the financial assistance facility.
ARTICLE 14 Financial Assistance provided by the my way of precaution 1. The Governing Council may decide to grant, as a precautionary measure, financial assistance in the form of credit line with conditions or line of credit conditions reinforced in accordance with article 12, paragraph 1.
2. the conditionality which is accompanied by the financial assistance provided by the my as a precautionary measure is defined in the memorandum of understanding, in accordance with article 13, paragraph 3.
3. the modalities and the financial conditions of the financial assistance provided by the my as a precautionary measure are specified in an agreement for ease of financial assistance as a precautionary measure, signed by the Director general.
4. the Management Board shall adopt detailed guidelines on the modalities for implementation of the financial assistance provided by the my as a precaution.
5. the Board of Directors decides agreed, on a proposal of the Director general and after receipt of the report of the Committee established in accordance with article 13, paragraph 7, if it is necessary to maintain the credit line.
6. after the Member of MES tapped for the first time in the funds placed at his disposal (for a loan or a purchase on the primary market), the Board of Directors decides agreed, on a proposal of the Director general and on the basis of an assessment by the European Commission, in liaison with the ECB, if the credit line is appropriate or if some other form of financial assistance is necessary.
ARTICLE 15 Financial Assistance for the recapitalisation of financial institutions of a member of my 1. The Governing Council may decide to grant financial assistance in the form of loans to a member of my, specifically in order to recapitalize financial institutions of this member.
2. the conditionality which is accompanied by financial assistance for the purposes of the recapitalisation of financial institutions of a member of my is defined in the memorandum of understanding, in accordance with article 13, paragraph 3.
3. without prejudice to articles 107 and 108 of the TFEU, the financial terms and conditions of the financial assistance for the purposes of the recapitalisation of financial institutions of a member of my are specified in an agreement on the financial assistance facility, signed by the Director general.
4. the Management Board shall adopt detailed guidelines on the modalities for implementation of the financial assistance for the purposes of the recapitalisation of financial institutions of a member of my.
5. where appropriate, the Governing Council decides by common agreement, on a proposal of the Director general and after receipt of the report of the European Commission established in accordance with article 13, paragraph 7, of the payment of the instalments of financial assistance resulting from the first instalment.
ARTICLE 16 loans granted by my 1.
The Governing Council may decide to grant financial assistance in the form of loan to a member of my, in accordance with article 12.
2. the conditionality attached to the loans granted by the my figure in a macroeconomic adjustment programme defined in the memorandum of understanding, in accordance with article 13, paragraph 3.
3. the terms and financial conditions of each loan granted by the my are specified in an agreement on the financial assistance facility, signed by the Director general.
4. the Management Board shall adopt detailed guidelines on the modalities of implementation of loans granted by the My.
5. the Governing Body decided by mutual agreement, on a proposal of the Director general and after receipt of the report of the European Commission established in accordance with article 13, paragraph 7, of the payment of the instalments of financial assistance resulting from the first instalment.
ARTICLE 17 support in the primary market 1 device. The Governing Council may decide to make arrangements to buy securities issued by a member of my primary, according to market

article 12 and in order to maximize the cost-effectiveness of financial assistance.
2. the conditionality imposed on the support on the primary device is defined in the memorandum of understanding, in accordance with article 13, paragraph 3.
3. the financial terms and conditions of purchase of these securities are specified in an agreement on the financial assistance facility, signed by the Director general.
4. the Management Board shall adopt detailed guidelines on the modalities for implementation support in the primary market.
5. the Governing Body decided by mutual agreement, on a proposal of the Director general and after receipt of the report of the European Commission established in accordance with article 13, paragraph 7, of the payment of financial assistance to a beneficiary Member State involved in the primary market.
ARTICLE 18 device support in the secondary market 1. The Governing Council may decide to take steps to conduct operations on the secondary market in securities issued by a member of my, in accordance with article 12, paragraph 1.
2. decisions to intervene in the secondary market to cope with the risk of contagion are taken on the basis of an analysis of the ECB on the existence of an exceptional financial markets situation and risks to financial stability.
3. the conditionality imposed on the support on the aftermarket device is defined in the memorandum of understanding, in accordance with article 13, paragraph 3.
4. the financial terms and conditions for intervention on the secondary market are specified in an agreement on the financial assistance facility, signed by the Director general.
5. the Management Board shall adopt detailed guidelines on the modalities for implementation support in the secondary market.
6. the Board of Directors decides agreed, on the proposal of the Director general, to intervene on the secondary market.
ARTICLE 19 review of the list of instruments of financial assistance the Board of Governors may re-examine the list of instruments of financial assistance provided for in articles 14 and 18 and decide to change.
SECTION 20 policy tariff 1. When granting support to stability, the my tries to cover all of its operating and financing costs and provides an appropriate margin.
2. the pricing of all instruments of financial assistance is defined in guidelines, which are adopted by the Governing Council.
3. the tariff policy may be reconsidered by the Board of Governors.
SECTION 21 borrowing Operations 1. The MES is authorised to borrow on the markets of capital from banks, financial institutions or other persons or institutions in order to achieve his goal.
2. the terms of borrowing transactions are defined by the Director general, in accordance with the detailed guidelines adopted by the Board of Directors.
3. the MES uses management tools from the appropriate risks, which are reviewed regularly by the Board of Directors.
CHAPTER 5. -MANAGEMENT financial section 22 investment policy 1. The Director-general is implementing a prudent investment policy of MES, which helps ensure to the my highest credit quality, in accordance with the guidelines adopted and regularly reviewed by the Board of Directors. The MES is allowed to use part of the performance of its investment portfolio to cover its operating costs and administrative costs.
2. the operations of my are consistent with the principles of sound financial management and good risk management.
ARTICLE 23 political distribution of dividends 1. The Board of Directors may decide, by a simple majority, to distribute a dividend to members of my when the amount of the paid-up capital and the reserve fund exceeds the level required to maintain the lending capacity of my and when the proceeds of the investment is not needed to prevent arrears of payment to creditors. Dividends are distributed in proportion to the shares in the paid-up capital, taking into account the eventual advance payment referred to in article 41, paragraph 3.
2. as long as the my provided no financial assistance to one of its members, the product of the investment of its paid-up capital is, after deduction of the costs of operating, distributed to its members according to their shares in the paid-up capital, provided that the effective lending capacity referred is fully available.
3. the Director-general is implementing the policy of my dividend, in accordance with the guidelines adopted by the Board of Directors.
ARTICLE 24 Reserve and other funds 1. The Governing Council establishes a reserve fund and, where appropriate, other funds.
2. without prejudice to article 23, the net income generated by the operations of my and the product of financial penalties imposed on members of my agenda for the multilateral surveillance procedure, the excessive deficit procedure and the procedure concerning macroeconomic imbalances laid down pursuant TFEU are placed in a reserve fund.
3. the resources of the reserve fund are invested in accordance with the guidelines adopted by the Board of Directors.
4. the Governing Council shall adopt rules necessary to the institution, the management and the use of other funds.
ARTICLE 25 loss 1 cover. Operations-related losses of my are charged: has) in the first place, on the reserve fund;
((b) Secondly, on the paid-up capital, and c) Finally, on an amount appropriate authorized capital not released, which is called in accordance with article 9, paragraph 3.
2. If a member of my does not remit funds called in accordance with article 9, paragraphs 2 and 3, a fund revised upward call is open to all members of my for that it receives all the necessary capital. The Board of Governors decides the course of action appropriate to adopt for the Member of my concerned regulates its debt with the my within a reasonable time. The Governing Council may require the payment of interest on the amount due.
3. when a member of my debt referred to in paragraph 2, rule, surplus funds are donated to the other members of my in accordance with the rules adopted by the Governing Council.
ARTICLE 26 Budget the Board of Directors approves the budget of my every year.
ARTICLE 27 annual accounts 1. The Board of Governors approves the annual accounts of my.
2. the my publishes an annual report containing a state certified accounts and sent its members a quarterly summary of its financial position and a profit and loss account highlighting the results of its operations.
SECTION 28 Internal Audit an internal audit function is implemented in accordance with international standards.
ARTICLE 29 External Audit accounts of my are controlled by Commissioners independent external auditors approved by the Governing Council and charges for the certification of annual financial statements. The external auditors have power to examine all books and accounts of my, and get all information about its operations.
ARTICLE 30 Committee of Auditors 1. The Auditors Committee consists of five members appointed by the Governing Council because of their skills in the areas of financial and audit, and includes two members of the supreme audit institutions of the accounts of the members of my - who sit in Tower B role and a member of the Court of Auditors.
2. the members of the Board of the Auditors are independent. They shall neither seek nor only accept instructions from the governing bodies of MES, members of my or any other public body or private.
3. the Board of Auditors Auditors establishes independent audits. It controls the accounts of my and check the regularity of operations and balance sheet accounts. It has full access to any document of my necessary to the execution of its tasks.
4. the Board of Auditors Auditors may inform the Governing Council of its findings at any time. It establishes, each year, a report to the Governing Council.
5. the Board of Governors communicates the annual report to national parliaments as well as the supreme audit institutions of the accounts of the members of my and the Court of Auditors European.
6. any question relating to this article will be defined in the General regulations of my.
CHAPTER 6. -General provisions on my ARTICLE 31 place of establishment 1. The my is headquartered and its main office in Luxembourg.
2. the my may establish a liaison office in Brussels.
ARTICLE 32 legal status, privileges and immunities 1. To allow to the my to achieve his goal, the legal status, privileges and immunities set out in this article granted the territory of each of its members. The my strives to obtain recognition of its legal status, its privileges and its immunities on other jurisdictions where it operates or holds assets.
(2. the MES has full legal personality and full legal capacity for: has) acquire and dispose of movable and immovable property;
(b) enter into contracts;
c) ester in justice, and d) conclude a headquarters agreement or a protocol

with a view, where appropriate, to recognize its legal status, its privileges and its immunities, or give them effect.
3. the MES and its property, its financing and its assets, wherever they may be located and whatever the holder, shall enjoy immunity from jurisdiction in all its aspects, except to the extent where the my y waives expressly for a specific procedure or under contract, including the documentation for financing instruments.
4. the property, funds and assets of my, wherever they may be located and whatever the holder, cannot subject searches, requisitions, confiscation, expropriation or any other form of seizure or control on the part of the power Executive, judicial, administrative or legislative.
5. the archives of my and all documents which belong to him or that he holds are inviolable.
6. the premises of my are inviolable.
7. official communications from my are processed by each Member of my and every State that has recognized its legal status, its privileges and its immunities in the same way as the official communications of a State which is a member of my.
8. to the extent necessary for the exercise of activities laid down by this Treaty, all property, funds and assets of my are free from restrictions, regulations, controls and moratoria of any nature.
9. the MES is exempt from any requirement to obtain an authorization or approval, as the establishment of credit, investment services provider or entity authorized, approved or regulated, imposed by the legislation of each of its members.
ARTICLE 33 staff of my Board of Directors sets the conditions of employment of the Director general and other officers of my.
ARTICLE 34 professional secrecy the members or former members of the Board of Governors and the Board of Directors, as well as any other person working or having worked for the my or in connection therewith are required not to disclose information covered by the obligation of professional secrecy. They are required, even after their duties have ceased, not to disclose information which, by their nature, are covered by professional secrecy.
ARTICLE 35 immunity of persons 1. In the interest of, the president of the Board of Governors, Governors, alternate Governors, directors, alternate directors and the Director-general and other officers of my cannot be prosecuted for acts performed in the exercise of their functions and benefit from the inviolability of their papers and official documents.
2. the Board of Governors may waive, in the extent and under the conditions it sets, to the immunities conferred by this article, with regard to the president of the Governing Council, a Governor, a Deputy Governor, a Director, a Deputy Director or Executive Director.
3. the Director-general may waive the immunity of any official of my (with the exception of hers).
4. each Member of my rapidly take the measures necessary to give effect to this article in its legislation and informed the my the adoption of these measures.
ARTICLE 36 tax exemption 1. As part of its official activities, the my, its assets, revenues and its property, and its operations and transactions authorized by this Treaty, shall be exempt from all direct taxes.
2. the members of my take, whenever it is possible, appropriate arrangements for the remission or repayment of the amount of excise or sales taxes entering the price of real estate or moveable when goods the my performs for its official use of important purchases which price includes rights and taxes of this nature.
3. no exemption is granted in relation to taxes, taxes and duties which are just simple compensation for services of General utility.
4. the goods imported by the my and necessary for the exercise of its official activities shall be exempt from all rights, taxes, prohibitions or restrictions on imports.
5. the agents of my are subject to an internal tax levied for the benefit of my on the salaries and emoluments paid by the my in accordance with the rules adopted by the Governing Council. From the date on which the tax is applied, these salaries and emoluments are exempt from any national income tax.
6. no tax of any kind whatsoever not is seen on the bonds or securities issued (e) s by the MES, or on interest and dividends y related, regardless of the holder: has) If this tax makes with respect to such bonds or securities, a discriminatory nature based exclusively on their origin; or (b) If this tax is only legal basis instead the currency of issuance, instead the regulations planned or actual currency or the territorial situation of an office or place of business of my.
ARTICLE 37 Interpretation and settlement of disputes 1. Any question relating to the interpretation or application of the provisions of this Treaty and of the General regulations of my which arise between the my and one of its members, or between members of my, is submitted to the governing body for decision.
2. the Governing Council shall decide on any dispute between the my to one of its members, or members of my between them related to the interpretation and application of this Treaty, including any dispute relating to the compatibility of the decisions adopted by the my with this Treaty. For the purposes of such a decision, the right to vote of members of the Board of Governors appointed by the concerned Member of MES is suspended, and the threshold for the adoption of the decision shall be recalculated accordingly.
3. If a member of my contests the decision referred to in paragraph 2, the dispute is referred to the Court of justice of the European Union. The judgment of the Court of justice of the European Union is binding on the parties, which shall take the measures necessary to comply within the time fixed by the Court in its judgment.
ARTICLE 38 International Cooperation in order to carry out its tasks, the my is entitled, under this Treaty, to cooperate with the IMF, with any State that provides a financial assistance to one of its members and with any organization or international entity having responsibilities in related fields.
CHAPTER 7. -PROVISIONS transitional ARTICLE 39 relationship to the lending capacity of the EFSF during the transition phase included between the entry into force of this Treaty and the dissolution full of the EFSF, the overall lending capacity of my and the EFSF shall exceed not EUR 500 billion (500.000.000.000), without prejudice to the periodic review of the adequacy of the capacity of maximum loan under article 10. The Governing Council adopted detailed guidelines for the calculation of the commitment term capacity to ensure compliance with the global loan ceiling.
ARTICLE 40 transfer of support granted within the framework of the EFSF 1. By way of derogation from article 13, the Governing Council may decide that the commitments of the EFSF to grant financial assistance to a member of my under the terms of the agreement with this member are borne by the my insofar as these commitments are paid or unfunded loan slices.
2. the my may, if authorized by the Board of Governors, acquire rights and assume the obligations of the EFSF, in particular as regards any part of the obtained rights and obligations by virtue and in the context of existing loans.
3. the Board of Governors shall adopt detailed arrangements to give effect to the transfer of the EFSF bonds to the my referred to in paragraph 1 so that any transfer of rights and obligations referred to in paragraph 2.
ARTICLE 41 payment of the initial capital 1. Without prejudice to paragraph 2, the payment of paid-up shares of the initial capital subscribed by each Member of my runs in five annual payments each representing 20% of the total amount. Each Member of my makes the first payment within 15 days following the date of entry into force of this Treaty. Four (4) other payments are due respectively to the first, second, third and fourth anniversaries of the date of the first payment.
2. during the period of five years during which occurred the phased release of capital, members of my accelerate the payment of the shares paid up, in good time before the date of issue, to maintain a minimum ratio of 15% between the paid-up capital and the outstanding of my and guarantee a minimum loan capacity combined of my and the EUR 500 billion (500.000.000.000) EFSF.
3. a member of my may decide to make a prepayment of its shares in the paid-up capital.
ARTICLE 42 temporary Correction of the contribution key 1. The members of my initially endorsed the authorized capital on the basis of the initial contribution defined in annex 1 key. The temporary correction included in this initial contribution key applies for a period of twelve (12) years from the date of adoption of the euro by the Member of my concerned.
2. If a new Member of my saves, during the year preceding the date of its accession to the MES, a gross domestic product (GDP) per capita at market prices expressed in euro less than 75% of the gross domestic product

way to the EU per capita at the market price, its contribution key for subscriptions to the authorized capital of MES, determined in accordance with article 10, is temporarily corrected and is equal to the sum of: has) 25% of the share held by its Central Bank in the capital of the ECB, as determined in accordance with article 29 of the Statute of the ESCB; and (b) 75% of its share in the gross national income (GNI) of the eurozone at market prices expressed in euro, during the year preceding the date of its accession to the My.
(The percentages referred to in point a) and b) are rounded down or upwards to the multiple nearest 0.0001%. Statistical data taken into account are those published by Eurostat.
3. the temporary correction referred to in paragraph 2 shall apply for a period of twelve (12) years from the date of adoption of the euro by the Member of my concerned.
4. as a result of the temporary correction of the contribution key, the relevant part of the shares allocated to the Member of my under subsection 2, is redistributed among the members of my which do not benefit from a temporary correction, on the basis of the shares in the capital of the ECB in accordance with article 29 of the Statute of the ESCB just before the allocation of the new Member of my.
ARTICLE 43 first appointments 1. Each Member of my means its Governor and its Governor alternate within two weeks following the entry into force of this Treaty.
2. the Board of Governors designates the Director general and each Governor shall designate an administrator and an administrator acting in the two months following the entry into force of this Treaty.
CHAPTER 8. -PROVISIONS finals ARTICLE 44 accession in accordance with article 2, the other Member States of the European Union may accede to this Treaty by submitting their application to the my after the Council of the European Union adopted, in accordance with article 140, paragraph 2, TFEU, the decision to terminate the exemption they enjoy participation in the euro. The Governing Council approves the accession of the new Member of my and technicalities y related thereto, as well as the amendments to this Treaty as a direct result of this new membership. After the approval of the application for membership by the Board of Governors, the new members of my adhere to the my at the time of the deposit of the instruments of accession with the depositary, which shall notify this deposit to other members.
ARTICLE 45 appendices the following of this Treaty annexes are an integral part of the latter: 1) Annex Ire: contribution key for the My. and 2) Appendix II: subscriptions to the authorized capital.
ARTICLE 46 deposit this Treaty shall be deposited with the general secretariat of the Council of the European Union (hereinafter referred to as "the depositary"), which provide the certified copies to all signatories.
ARTICLE 47 Ratification, acceptance or approval 1. This Treaty is subject to ratification, approval or acceptance of the signatories. The instruments of ratification, acceptance or approval are delivered to the depositary.
2. the depositary shall inform the other signatories of the deposit of each instrument and the date of such deposit.
ARTICLE 48 entry into force 1. This Treaty shall enter into force on the date of deposit of instruments of ratification, acceptance or approval by signatories whose initial subscription represents at least 90% of the total subscriptions set out in annex II. The list of the members of my is adapted as appropriate. The key determined in annex Ire is then recalculated and the total authorised capital in article 8, paragraph 1, and in annex II, and the total nominal value initial of paid-up shares indicated in article 8, paragraph 2, shall be reduced accordingly.
2. for each signatory which subsequently deposits its instrument of ratification, approval or acceptance, this Treaty shall enter into force the day following the date of deposit.
3. for each State which accedes to this Treaty in accordance with article 44, this Treaty shall enter into force the twentieth day following the deposit of its instrument of accession.
Done at Brussels, on two February two thousand twelve in a single original, of which the versions in German, English, Spanish, Estonian, Finnish, French, Greek, Irish, Italian, Maltese, Dutch, Portuguese, Slovak, Slovenian and Swedish languages are equally authentic, and filed in the archives of the depository which shall transmit certified copies thereof to all contracting parties.
_ Notes (1) OJ L 91, 6.4.2011, p. 1.

Annex Ire key contribution of my Member of Masri my (%)
Kingdom of Belgique3, 4771 Federal Republic of Allemagne27, Republic of estonia0, 1860 ireland1 1464, 5922 Republic hellenique2, 8167 Kingdom of Espagne11, 9037 Republic francaise20, 3859 Republic italienne17, Republic of cyprus0, 1962 Grand Duchy of Luxembourg0 9137, 2504 malta0, 0731 Kingdom of country-Bas5, 7170 Republic of austria2, 7834 Republic portugaise2, 5092 Republic of slovenia0, 4276 Republic slovaque0, 8240 Republic of finland1, 7974 Total100, 0 annex II subscriptions to the authorized capital member of MESNombre of partsSouscription to the capital (in EUR) Kingdom de Belgique243 39724 339 700 000
Federal Republic of germany1 900 248190 024 800 000 Republic of Estonie13 0201 302 000 000 Irlande111 45411 145 400 000 Republic hellenique197 16919 716 900 000 Kingdom of Espagne833 25983 325 900 000 Republic 1 427 013142 701 300 000 Republic italienne1 253 959125 395 900 000 Republic of Chypre13 7341 373 400 000 Grand Duchy of Luxembourg17 5281 752 800 000 Malte5 117511 700 000 Kingdom of country-Bas400 19040 019 000 000 Republic of Autriche194 83819 483 800 000 Republic 64417 564 portugaise175 400 000 Republic of slovenie29 9322 993 200 000 Republic slovaque57 6805 768 000 000 Republic of Finlande125 81812 581 800 000 trade.7 000 000700 000 000 000 Treaty establishing European stability between the Kingdom of Belgium, the Federal Republic of Germany, the Republic of Estonia, the Ireland, the Republic Hellenic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus , the Grand Duchy of Luxembourg, Malta, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Slovenia, the Slovak Republic and the Republic of Finland, done at Brussels, 2 February 2012 EtatsDate consentementDate Consentemententree force AuthentificationType local 2012indetermine-02-ALLEMAGNE02 2012indetermine-02-AUTRICHE02 BELGIQUE02/02/2012Ratification26/06/2012 CHYPRE02/02/2012Ratification28/06/2012 ESPAGNE02/02/2012Ratification02/07/2012 ESTONIE02/02/2012indetermine FINLANDE02/02/2012Ratification29/06/2012 FRANCE02/02/2012Ratification02/04/2012 GRECE02/02/2012Ratification10/05/2012
2012indetermine-02-IRLANDE02 2012indetermine-02-ITALIE02 2012indetermine-02-LUXEMBOURG02 2012indetermine-02-MALTE02 country-BAS02/02/2012indetermine PORTUGAL02/02/2012indetermine SLOVAQUIE02/02/2012Ratification29/06/2012 SLOVENIE02/02/2012Ratification30/05/2012

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