TITLE VI ( * )

( * ) New Title as inserted by Article G( 25 ) TEU, replacing Title II, Articles 102a to  109.

Economic and monetary policy

CHAPTER 1

ECONOMIC POLICY

Article 102a

Member States shall conduct 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 principles set out in Article 3a.

Article 103

1. Member States shall regard their economic policies as a matter of common  concern and shall coordinate 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 coordination 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  developments 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 such other information as they deem necessary.

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