- Where the exercise of rights granted under this Chapter creates serious difficulties in any sector of the economy of a Member State or occasions economic hardships in a region of the Community, a Member State adversely affected thereby may, subject to the provisions of this Article, apply such restrictions on the exercise of the rights as it considers appropriate in order to resolve the difficulties or alleviate the hardships.
- Where a Member State:
(a) intends to apply restrictions in accordance with paragraph 1 of this Article, it shall, prior to applying those restrictions, notify the competent Organ of that intention and the nature of the restrictions;
(b) is unable to comply with sub-paragraph (a) of this paragraph, it shall, upon applying the restrictions in accordance with paragraph 1, immediately notify the competent Organ of the application and nature of the restrictions.
- The Member State shall, at the time of application of the restrictions mentioned in paragraph 1, submit to COTED or COFAP, as the case may require, a programme setting out the measures to be taken by that Member State to resolve the difficulties or to alleviate the hardships.
- The competent Organ shall give its earliest consideration to the programme, and: (a) make a determination in respect of the appropriateness of the restrictions and whether they shall be continued; and
(b) where it decides that the restrictions shall be continued, determine: (i) the adequacy of the programme; and
(ii) the period for which the restrictions should continue. The competent Organ, in making a determination under sub-paragraph (b) of this paragraph, may impose such conditions as it considers necessary.
- Restrictions applied by a Member State pursuant to paragraph 1 of this Article shall be confined to those necessary:
(a) to resolve the difficulties in the affected sectors;
(b) to alleviate economic hardships in a particular region.
- In applying restrictions mentioned in paragraph 5, Member States shall:
(a) minimise damage to the commercial or economic interests of any other Member State; or
(b) prevent the unreasonable exercise of rights granted under this Chapter, the exclusion of which could impair the development of the CSME.
- The Member States, in applying restrictions pursuant to paragraph 1 of this Article, shall not discriminate and:
(a) shall progressively relax them as relevant conditions improve;
(b) may maintain them only to the extent that conditions mentioned in paragraph 1 of this Article continue to justify their application.
- If COTED or COFAP, as the case may require, is not satisfied that Member States applying restrictions are acting in accordance with the provisions of paragraph 6 of this Article, it may recommend to the Member States adversely affected thereby alternative arrangements to the same end.