PROTOCOL ON THE UK AS REGARDS ECONOMIC AND MONETARY UNION

Article 1

Unless the United Kingdom notifies the Council that it intends to adopt the euro, it shall be under no obligation to do so. Article 2 In view of the notice given to the Council by the United Kingdom government on 16 October 1996 and 30 October 1997, Articles 3 to 8 and 10 shall apply to the United Kingdom. Article 3 The United Kingdom shall retain its powers in the field of monetary policy according to national law. Article 4 Articles I‑30(2), with the exception of the first and last sentences thereof, I‑30(5), III‑177, second paragraph, III‑184(1), (9) and (10), III‑185(1) to (5), III‑186, III‑188, III‑189, III‑190, III‑191, III‑196, III‑198(3), III‑326 and III‑382 of the Constitution shall not apply to the United Kingdom. The same applies to Article 3‑179(2) of the Constitution as regards the adoption of the parts of the broad economic policy guidelines which concern the euro area generally.

In the provisions referred to in the first paragraph, references to the Union or the Member States shall not include the United Kingdom and references to national central banks shall not include the Bank of England.

Article 5

The UK shall endeavour to avoid an excessive government deficit.

Articles III‑192(4) and III‑200 of the Constitution shall apply to the United Kingdom as if it had a derogation. Articles III‑201 and III‑202 of the Constitution shall continue to apply to the United Kingdom.

Article 6

The voting rights of the United Kingdom shall be suspended for the adoption by the Council of the measures referred to in the Articles listed in Article 4 and in the instances referred to in the first subparagraph of Article 3‑197(4) of the Constitution. For this purpose the second and third subparagraphs of Article 3‑197(4) of the Constitution shall apply. The United Kingdom shall also have no right to participate in the appointment of the President, the Vice‑President and the other members of the Executive Board of the European Central Bank under the second, third and fourth subparagraphs of Article 3‑382(2) of the Constitution.

Article 7

Articles 3, 4, 6, 7, 9(2), 10(1), (2) and (3), 11(2), 12(1), 14, 16, 18, 19, 20, 22, 23, 26, 27, 30, 31, 32, 33, 34 and 50 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank (the ‘Statute’) shall not apply to the United Kingdom. In those Articles, references to the Union or the Member States shall not include the United Kingdom and references to national central banks or shareholders shall not include the Bank of England. References in Articles 10(3) and 30(2) of the Statute to ‘subscribed capital of the European Central Bank’ shall not include capital subscribed by the Bank of England.

Article 8

Article 3‑199 of the Constitution and Articles 43 to 47 of the Statute shall have effect, whether or not there is any Member State with a derogation, subject to the following amendments: (a) References in Article 43 of the Statute to the tasks of the European Central Bank and the European Monetary Institute shall include those tasks that still need to be performed after the introduction of the euro owing to the decision of the United Kingdom not to adopt the euro. (b) In addition to the tasks referred to in Article 46 of the Statute, the European Central Bank shall also give advice in relation to and contribute to the preparation of any European regulation or any European decision of the Council with regard to the United Kingdom taken in accordance with Article 9(a) and (c) of this Protocol.

(c) The Bank of England shall pay up its subscription to the capital of the European Central Bank as a contribution to its operational costs on the same basis as national central banks of Member States with a derogation.

Article 9

The United Kingdom may notify the Council at any time of its intention to adopt the euro. In that event:

(a) The United Kingdom shall have the right to adopt the euro provided only that it satisfies the necessary conditions. The Council, acting at the request of the United Kingdom and under the conditions and in accordance with the procedure laid down in Article 3‑198(1) and (2) of the Constitution, shall decide whether it fulfils the necessary conditions. (b) The Bank of England shall pay up its subscribed capital, transfer to the European Central Bank foreign reserve assets and contribute to its reserves on the same basis as the national central bank of a Member State whose derogation has been abrogated. (c) The Council, acting under the conditions and in accordance with the procedure laid down in Article 3‑198(3) of the Constitution, shall take all other necessary decisions to enable the United Kingdom to adopt the euro. If the United Kingdom adopts the euro pursuant to the provisions of this Article, Articles 3 to 8 shall cease to have effect.

Article 10 Notwithstanding Article 3‑181 of the Constitution and Article 21(1) of the Statute, the Government of the United Kingdom may maintain its ‘ways and means’ facility with the Bank of England if and so long as the United Kingdom does not adopt the euro.