duct their economic policies with a view to
contributing to the achievement of the objectives of the Community, as
defined in Article 2, and in the context of the broad guidelines referred
to in Article 103(2). The Member States and the Community shall act in
accordance with the principle of an open market economy with free
competition, favouring an efficient allocation of resources, and in
compliance with the principle set out in Article 3a.
ARTICLE 103
1. Member States shall regard their economic policies as a matter of
common concern and shall co-ordinate them within the Council, in
accordance with the provisions of Article 102a.
2. The Council shall, acting by a qualified majority on a
recommendation from the Commission, formulate a draft for the broad
guidelines of the economic policies of the Member States and of the
Community, and shall report its findings to the European Council.
The European Council shall, acting on the basis of the report from the
Council, discuss a conclusion on the broad guidelines of the economic
policies of the Member States and of the Community.
On the basis of this conclusion, the Council shall, acting by a qualified
majority, adopt a recommendation setting out these broad guidelines.
The Council shall inform the European Parliament of its
recommendation.
3. In order to ensure closer co-ordination of economic policies and
sustained convergence of the economic performances of the Member
States, the Council shall, on the basis of reports submitted by the
Commission, monitor economic development in each of the Member
States and in the Community as well as the consistency of economic
policies with the broad guidelines referred to in paragraph 2, and
regularly carry out an overall assessment.
For the purpose of this multilateral surveillance, Member States shall
forward information to the Commission about important measures
taken by them in the field of their economic policy and other
information as they deem necessary.
4. Where it is established, under the procedure referred in paragraph
3, that the economic policies of a Member State are not consistent with
the broad guidelines referred to in paragraph 2 or that they risk
jeopardizing the proper functioning of economic and monetary union,
the Council may, acting by a qualified majority on a recommendation
from the Commission, make the necessary recommendations to the
Member State concerned. The Council may, acting by a qualified
majority