Tuesday 30 September 2008

EU: Overdraft facilities prohibited V

Member states’ monetary financing by overdraft facilities is prohibited by Article 123 of the Treaty on the Functioning of the European Union (TFEU).

Even if the Lisbon Treaty brings no substantial change, we check some materials with reference to the provision.


United Kingdom

Professor Steve Peers covered the Treaty of Lisbon in a number of Statewatch Analyses. ‘EU Reform Treaty Analysis no. 3.4: Revised text of Part Three, Titles VII to XVII of the Treaty establishing the European Community (TEC): Other internal EC policies’ (Version 2, 24 October 2007) includes the current Title VII Economic and monetary policy.

Peers presented Article 101 TFEU (ToL), to be renumbered Article 123 TFEU in the consolidated version, and highlighted the other horizontal changes except ‘offices or agencies’, without comment (page 7).

The analysis 3.4 and other useful Statewatch analyses are available through:



The Foreign and Commonwealth Office (FCO) offers a convenient source of brief annotations on Lisbon Treaty amendments in ‘A comparative table of the current EC and EU treaties as amended by the Treaty of Lisbon’ (Command Paper 7311, published 21 January 2008). It offers the following comment on Article 123 TFEU, Article 101 TFEU (ToL) in the original Lisbon Treaty (page 12):

“In substance the same as Article 101 TEC, but now includes a reference to agencies” [as well as to offices].

The FCO comparative table is available at:



The UK House of Commons Library Research Paper 07/86 ‘The Treaty of Lisbon: amendments to the Treaty establishing the European Community’ (published 6 December 2007) discussed ‘H. Economic and Monetary Policy’ on pages 61 to 64, but I did not find any remark on Article 101 TFEU (ToL).

The Library Research Paper 07/86 is available at:



I found no references to overdraft or Article 123 in the House of Lords European Union Committee’s report ‘The Treaty of Lisbon: an impact assessment, Volume I: Report’ (HL Paper 62-I, published 13 March 2008).

The impact assessment report is accessible at:



The following part is going to present additional legislative materials on Article 123 TFEU.

Ralf Grahn


  1. Indeed, the most annoying side effect of the Lisbon Treaty is the disappearance of the word "communitarian". It was so handy, in italian at least. Repeating "of the Union" all the time sound so boring.

  2. Igor,

    This can be seen from many angles. The Lisbon Treaty is not in force, so actually we still have the European Communities and the derived words.

    In practice, though, the use of the words European Community has been almost totally overtaken by the European Union. Only official documents and lawyers seem to remember the official wording.

    Then, there is the question of 'community spirit'. Perhaps it is an indication of our intergovernmental times that communitarian is destined to the dustbin of history.

    On the other hand, it feels a bit surreal to write about the basic rules of fiscal prudence at a time when hundreds of billions of euros are injected into the financial system and financial institutions...


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