Chapter XVII Economic and monetary policy of Earth Government
Article 1:
1. For the purposes set out in the Preamble and in Chapter 1 to 10, the activities of Member Nations and Earth Government shall include, as provided in the Constitution, the adoption of an economic policy which is based on the close coordination of Member Nations' economic policies, on the internal market and on the definition of common objectives, and conducted in accordance with the principle of an open market economy with free competition.
2. Concurrently with the foregoing, and as provided in the Constitution and in accordance with the procedures set out therein, these activities shall include a single currency, the 'global equivalent money', and the definition and conduct of a single monetary policy and exchange-rate policy, the primary objective of both of which shall be to maintain price stability and, without prejudice to this objective, to support the general economic policies in the Earth Government, in accordance with the principle of an open market economy with free competition.
3. These activities of Member Nations and Earth Government shall entail compliance with the following guiding principles: stable prices, sound public finances and monetary conditions and a stable balance of payments.
1. For the purposes set out in the Preamble and in Chapter 1 to 10, the activities of Member Nations and Earth Government shall include, as provided in the Constitution, the adoption of an economic policy which is based on the close coordination of Member Nations' economic policies, on the internal market and on the definition of common objectives, and conducted in accordance with the principle of an open market economy with free competition.
2. Concurrently with the foregoing, and as provided in the Constitution and in accordance with the procedures set out therein, these activities shall include a single currency, the 'global equivalent money', and the definition and conduct of a single monetary policy and exchange-rate policy, the primary objective of both of which shall be to maintain price stability and, without prejudice to this objective, to support the general economic policies in the Earth Government, in accordance with the principle of an open market economy with free competition.
3. These activities of Member Nations and Earth Government shall entail compliance with the following guiding principles: stable prices, sound public finances and monetary conditions and a stable balance of payments.
Chapter 17.1 – Economic policy
Article 1:
Member Nations shall conduct their economic policies in order to contribute to the achievement of Earth Government's objectives, as defined in Article 3, and in the context of the broad guidelines referred to in Article 593. Member Nations and Earth Government 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 1 of Chapter 16.7.
Article 2:
1. Member Nations shall regard their economic policies as a matter of common concern and shall coordinate them within the Earth Executive Council, in accordance with Article 2 of Chapter 16.7.
2. The Earth Executive Council, on a recommendation from the Global Judiciary , shall formulate a draft for the broad guidelines of the economic policies of the Member Nations and of Earth Government, and shall report its findings to the United Nations . The United Nations , on the basis of the report from the Earth Executive Council, shall discuss a conclusion on the broad guidelines of the economic policies of Member Nations and of Earth Government. On the basis of this conclusion, the Earth Executive Council shall adopt a recommendation setting out these broad guidelines. It shall inform the Global Parliament of its recommendation.
3. In order to ensure closer coordination of economic policies and sustained convergence of the economic performances of Member Nations, the Council of Ministers, on the basis of reports submitted by the Global Judiciary , shall monitor economic developments in each of Member Nations and in the Earth Government, as well as the consistency of economic policies with the broad guidelines referred to in paragraph 2, and shall regularly carry out an overall assessment. For the purpose of this multilateral surveillance, Member Nations shall forward information to the Global Judiciary on important steps taken by them in the field of their economic policy and such other information as they deem necessary.
4. Where it is established, under the procedure referred to in paragraph 3, that the economic policies of a Member Nation are not consistent with the broad guidelines referred to in paragraph 2 or that they risk jeopardising the proper functioning of economic and monetary Earth Government, the Global Judiciary may address a warning to Member Nation concerned. The Earth Executive Council, on a recommendation from the Global Judiciary , may address the necessary recommendations to Member Nation concerned. The Earth Executive Council, on a proposal from the Global Judiciary , may decide to make its recommendations public. Within the scope of this paragraph, the Earth Executive Council shall act without taking into account the vote of the representative of Member Nation concerned, and a qualified majority shall be defined as the majority of the votes of the other Member Nations, representing at least three fifths of their population.
5. The President of the Earth Executive Council and the Global Judiciary shall report to the Global Parliament on the results of multilateral surveillance. The President of the Earth Executive Council may be invited to appear before the competent committee of the Global Parliament if the Earth Executive Council has made its recommendations public.
6. Global laws may lay down detailed rules for the multilateral surveillance procedure referred to in paragraphs 3 and 4.
Article 3:
1. Without prejudice to any other procedures provided for by the Constitution, the Earth Executive Council, on a proposal from the Global Judiciary , may adopt a global decision laying down the measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products.
2. Where a Member Nation is in difficulties or is seriously threatened with severe difficulties caused by natural disasters or exceptional occurrences beyond its control, the Earth Executive Council, on a proposal from the Global Judiciary, may adopt a global decision granting, under certain conditions, Earth Government financial assistance to Member Nation concerned. The President of the Earth Executive Council shall inform the Global Parliament of the decision adopted.
Article 4:
1. Overdraft facilities or any other type of credit facility with the global Central Bank or with the central banks of Member Nations (hereinafter referred to as "national central banks") in favour of Earth Government institutions, bodies or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member Nations shall be prohibited, as shall the purchase directly from them by the Global Bank or national central banks of debt instruments.
2. Paragraph 1 shall not apply to publicly owned credit institutions which, in the context of the supply of reserves by central banks, shall be given the same treatment by national central banks and the Global Bank as private credit institutions.
Article 5:
1. Any measure or provision, not based on prudential considerations, establishing privileged access by Earth Government institutions, bodies or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member Nations to financial institutions shall be prohibited.
2. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt global regulations or decisions specifying definitions for the application of the prohibition referred to in paragraph 1. It shall act after consulting Global Parliament .
Article 6:
1. Earth Government shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member Nation, without prejudice to mutual financial guarantees for the joint execution of a specific project. A Member Nation shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of another Member Nation, without prejudice to mutual financial guarantees for the joint execution of a specific project.
2. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt global regulations or decisions specifying definitions for the application of the prohibitions referred to in Article 5 of Chapter 16.7 and in this Article. It shall act after consulting Global Parliament .
Article 7:
1. Member Nations shall avoid excessive government deficits.
2. The Global Judiciary shall monitor the development of the budgetary situation and of the stock of government debt in Member Nations in order to identify gross errors. In particular it shall examine compliance with budgetary discipline on the basis of the following two criteria:
4. The Economic and Financial Committee shall formulate an opinion on the report of the Global Judiciary .
5. If the Global Judiciary considers that an excessive deficit in a Member Nation exists or may occur, it shall address an opinion to Member Nation concerned.
6. The Earth Executive Council shall, on a proposal from the Global Judiciary , having considered any observations which Member Nation concerned may wish to make and after an overall assessment, decide whether an excessive deficit exists. In that case it shall adopt, according to the same procedures, recommendations addressed to Member Nation concerned with a view to bringing that situation to an end within a given period. Those recommendations shall not be made public. Within the scope of this paragraph, the Council of Ministers shall act without taking into account the vote of the representative of Member Nation concerned, and a qualified majority shall be defined as the majority of the votes of the other Member Nations, representing at least three fifths of their population.
7. The Earth Executive Council, on a recommendation from the Global Judiciary , shall adopt the global decisions and recommendations. It shall act without taking into account the vote of the representative of Member Nation concerned, and a qualified majority shall be defined as the majority of the other Member Nations, representing at least three fifths of their population.
8. Where it establishes that there has been no effective action in response to its recommendations within the period laid down, the Earth Executive Council may make its recommendations public.
9. If a Member Nation persists in failing to put into practice the recommendations of the Earth Executive Council, the Earth Executive Council may adopt a global decision giving notice to Member Nation to take, within a specified time-limit, steps for the deficit reduction which is judged necessary by the Earth Executive Council in order to remedy the situation. In such a case, the Earth Executive Council may request Member Nation concerned to submit reports in accordance with a specific timetable in order to examine the adjustment efforts of that Member Nation.
10. As long as a Member Nation fails to comply with a global decision adopted in accordance with paragraph 9, the Earth Executive Council may decide to apply or, as the case may be, intensify one or more of the following measures to:
12. The rights to bring actions provided for in Articles 9 and 10 of Chapter 14.3.9 B4, may not be exercised within the framework of paragraphs 1 to 6 or paragraphs 8 and 9.
13. Further provisions relating to the implementation of the procedure described in this Article are set out in the Protocol on the excessive deficit procedure. A global law of the Earth Executive Council shall lay down the appropriate measures to replace the said Protocol. The Earth Executive Council shall act unanimously after consulting Global Parliament and the global Central Bank. Subject to the other provisions of this paragraph, the Cabinet Ministers, on a proposal from the Global Judiciary, shall adopt global regulations or decisions laying down detailed rules and definitions for the application of the said Protocol. It shall act after consulting Global Parliament .
Article 1:
Member Nations shall conduct their economic policies in order to contribute to the achievement of Earth Government's objectives, as defined in Article 3, and in the context of the broad guidelines referred to in Article 593. Member Nations and Earth Government 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 1 of Chapter 16.7.
Article 2:
1. Member Nations shall regard their economic policies as a matter of common concern and shall coordinate them within the Earth Executive Council, in accordance with Article 2 of Chapter 16.7.
2. The Earth Executive Council, on a recommendation from the Global Judiciary , shall formulate a draft for the broad guidelines of the economic policies of the Member Nations and of Earth Government, and shall report its findings to the United Nations . The United Nations , on the basis of the report from the Earth Executive Council, shall discuss a conclusion on the broad guidelines of the economic policies of Member Nations and of Earth Government. On the basis of this conclusion, the Earth Executive Council shall adopt a recommendation setting out these broad guidelines. It shall inform the Global Parliament of its recommendation.
3. In order to ensure closer coordination of economic policies and sustained convergence of the economic performances of Member Nations, the Council of Ministers, on the basis of reports submitted by the Global Judiciary , shall monitor economic developments in each of Member Nations and in the Earth Government, as well as the consistency of economic policies with the broad guidelines referred to in paragraph 2, and shall regularly carry out an overall assessment. For the purpose of this multilateral surveillance, Member Nations shall forward information to the Global Judiciary on important steps taken by them in the field of their economic policy and such other information as they deem necessary.
4. Where it is established, under the procedure referred to in paragraph 3, that the economic policies of a Member Nation are not consistent with the broad guidelines referred to in paragraph 2 or that they risk jeopardising the proper functioning of economic and monetary Earth Government, the Global Judiciary may address a warning to Member Nation concerned. The Earth Executive Council, on a recommendation from the Global Judiciary , may address the necessary recommendations to Member Nation concerned. The Earth Executive Council, on a proposal from the Global Judiciary , may decide to make its recommendations public. Within the scope of this paragraph, the Earth Executive Council shall act without taking into account the vote of the representative of Member Nation concerned, and a qualified majority shall be defined as the majority of the votes of the other Member Nations, representing at least three fifths of their population.
5. The President of the Earth Executive Council and the Global Judiciary shall report to the Global Parliament on the results of multilateral surveillance. The President of the Earth Executive Council may be invited to appear before the competent committee of the Global Parliament if the Earth Executive Council has made its recommendations public.
6. Global laws may lay down detailed rules for the multilateral surveillance procedure referred to in paragraphs 3 and 4.
Article 3:
1. Without prejudice to any other procedures provided for by the Constitution, the Earth Executive Council, on a proposal from the Global Judiciary , may adopt a global decision laying down the measures appropriate to the economic situation, in particular if severe difficulties arise in the supply of certain products.
2. Where a Member Nation is in difficulties or is seriously threatened with severe difficulties caused by natural disasters or exceptional occurrences beyond its control, the Earth Executive Council, on a proposal from the Global Judiciary, may adopt a global decision granting, under certain conditions, Earth Government financial assistance to Member Nation concerned. The President of the Earth Executive Council shall inform the Global Parliament of the decision adopted.
Article 4:
1. Overdraft facilities or any other type of credit facility with the global Central Bank or with the central banks of Member Nations (hereinafter referred to as "national central banks") in favour of Earth Government institutions, bodies or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member Nations shall be prohibited, as shall the purchase directly from them by the Global Bank or national central banks of debt instruments.
2. Paragraph 1 shall not apply to publicly owned credit institutions which, in the context of the supply of reserves by central banks, shall be given the same treatment by national central banks and the Global Bank as private credit institutions.
Article 5:
1. Any measure or provision, not based on prudential considerations, establishing privileged access by Earth Government institutions, bodies or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member Nations to financial institutions shall be prohibited.
2. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt global regulations or decisions specifying definitions for the application of the prohibition referred to in paragraph 1. It shall act after consulting Global Parliament .
Article 6:
1. Earth Government shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member Nation, without prejudice to mutual financial guarantees for the joint execution of a specific project. A Member Nation shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of another Member Nation, without prejudice to mutual financial guarantees for the joint execution of a specific project.
2. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt global regulations or decisions specifying definitions for the application of the prohibitions referred to in Article 5 of Chapter 16.7 and in this Article. It shall act after consulting Global Parliament .
Article 7:
1. Member Nations shall avoid excessive government deficits.
2. The Global Judiciary shall monitor the development of the budgetary situation and of the stock of government debt in Member Nations in order to identify gross errors. In particular it shall examine compliance with budgetary discipline on the basis of the following two criteria:
3. If a Member Nation does not fulfil the requirements under one or both of these criteria, the Global Judiciary shall prepare a report. The report of the Global Judiciary shall also take into account whether the government deficit exceeds government investment expenditure and take into account all other relevant factors, including the medium-term economic and budgetary position of Member Nation. The Global Judiciary may also prepare a report if, notwithstanding the fulfilment of the requirements under the criteria, it is of the opinion that there is a risk of an excessive deficit in a Member Nation.(a) whether the ratio of the planned or actual government deficit to gross domestic product exceeds a reference value, unless:
(i) either the ratio has declined substantially and continuously and reached a level that comes close to the reference value;(b) whether the ratio of government debt to gross domestic product exceeds a reference value, unless the ratio is diminishing sufficiently and approaching the reference value at a satisfactory pace. The reference values are specified in the Protocol on the excessive deficit procedure.
(ii) or, alternatively, the excess over the reference value is only exceptional and temporary and the ratio remains close to the reference value;
4. The Economic and Financial Committee shall formulate an opinion on the report of the Global Judiciary .
5. If the Global Judiciary considers that an excessive deficit in a Member Nation exists or may occur, it shall address an opinion to Member Nation concerned.
6. The Earth Executive Council shall, on a proposal from the Global Judiciary , having considered any observations which Member Nation concerned may wish to make and after an overall assessment, decide whether an excessive deficit exists. In that case it shall adopt, according to the same procedures, recommendations addressed to Member Nation concerned with a view to bringing that situation to an end within a given period. Those recommendations shall not be made public. Within the scope of this paragraph, the Council of Ministers shall act without taking into account the vote of the representative of Member Nation concerned, and a qualified majority shall be defined as the majority of the votes of the other Member Nations, representing at least three fifths of their population.
7. The Earth Executive Council, on a recommendation from the Global Judiciary , shall adopt the global decisions and recommendations. It shall act without taking into account the vote of the representative of Member Nation concerned, and a qualified majority shall be defined as the majority of the other Member Nations, representing at least three fifths of their population.
8. Where it establishes that there has been no effective action in response to its recommendations within the period laid down, the Earth Executive Council may make its recommendations public.
9. If a Member Nation persists in failing to put into practice the recommendations of the Earth Executive Council, the Earth Executive Council may adopt a global decision giving notice to Member Nation to take, within a specified time-limit, steps for the deficit reduction which is judged necessary by the Earth Executive Council in order to remedy the situation. In such a case, the Earth Executive Council may request Member Nation concerned to submit reports in accordance with a specific timetable in order to examine the adjustment efforts of that Member Nation.
10. As long as a Member Nation fails to comply with a global decision adopted in accordance with paragraph 9, the Earth Executive Council may decide to apply or, as the case may be, intensify one or more of the following measures to:
(a) require Member Nation concerned to publish additional information, to be specified by the Earth Executive Council, before issuing bonds and securities;11. The Earth Executive Council shall abrogate some or all of the measures referred to in paragraph 6 and paragraphs 8 to 10 if it considers the excessive deficit in Member Nation concerned to have been corrected. If the Council of Ministers has previously made public recommendations, it shall Nation publicly, as soon as the decision under paragraph 8 has been abrogated, that there is no longer an excessive deficit in Member Nation concerned.
(b) invite the global Investment Bank to reconsider its lending policy towards Member Nation concerned;
(c) require Member Nation concerned to make a non-interest-bearing deposit of an appropriate size with Earth Government until the Council of Ministers considers that the excessive deficit has been corrected;
(d) impose fines of an appropriate size. The President of the Council of Ministers shall inform the Global Parliament of the measures adopted.
12. The rights to bring actions provided for in Articles 9 and 10 of Chapter 14.3.9 B4, may not be exercised within the framework of paragraphs 1 to 6 or paragraphs 8 and 9.
13. Further provisions relating to the implementation of the procedure described in this Article are set out in the Protocol on the excessive deficit procedure. A global law of the Earth Executive Council shall lay down the appropriate measures to replace the said Protocol. The Earth Executive Council shall act unanimously after consulting Global Parliament and the global Central Bank. Subject to the other provisions of this paragraph, the Cabinet Ministers, on a proposal from the Global Judiciary, shall adopt global regulations or decisions laying down detailed rules and definitions for the application of the said Protocol. It shall act after consulting Global Parliament .
Chapter 17.2 – Global monetary policy
Article 1:
1. The primary objective of the Global System of Central Banks shall be to maintain price stability. Without prejudice to this objective, the global System of Central Banks shall support the general economic policies in Earth Government in order to contribute to the achievement of its objectives as laid down in the Preamble and in Chapters 1 to 10. The Global System of Central Banks 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 1 of Chapter 18.9.
2. The basic tasks to be carried out through the Global System of Central Banks shall be:
4. The Global Bank shall be consulted:
5. The Global System of Central Banks shall contribute to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system.
6. Global laws may confer upon the Global Bank specific tasks concerning policies relating to the prudential supervision of credit institutions and other financial institutions with the exception of insurance undertakings. Such laws shall be adopted after consultation of the Global Bank.
Article 2:
1. The Global Bank shall have the exclusive right to authorise the issue of 'global equivalent money' bank notes in Earth Government. The Global Bank and the national central banks may issue such notes. Only the bank notes issued by the Global Bank and the national central banks shall have the status of legal tender within Earth Government.
2. Member Nations may issue 'global equivalent money' coins subject to approval by the global Central Bank of the volume of the issue. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt global regulations laying down measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within Earth Government. The Earth Executive Council shall act after consulting the Global Parliament and the Global Bank.
Article 3:
1. The Global System of Central Banks shall be composed of the global Central Bank and of the national central banks.
2. The Global Bank shall have legal personality.
3. The Global System of Central Banks shall be governed by the decision-making bodies of the Global Bank, which shall be the Governing Council and the Executive Board.
4. The Statute of the Global System of Central Banks is laid down in the Protocol on the Statute of the Global System of Central Banks and the Global Bank.
5. Articles of the Statute of the Global System of Central Banks and the Global Bank may be amended by global laws :
Articles of the Statute of the System of Global Banks and the Global Bank. It shall act after consulting Global Parliament :
When exercising the powers and carrying out the tasks and duties conferred upon them by the Constitution and the Statute of the Global System of Central Banks and the Global Bank, neither the Global Bank, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Earth Government institutions, bodies or agencies, from any government of a Member Nation or from any other body. Earth Government institutions, bodies or agencies and the governments of Member Nations undertake to respect this principle and not to seek to influence Member s of the decision-making bodies of the Global Bank or of the national central banks in the performance of their tasks.
Article 5:
Each Member Nation shall ensure that its national legislation, including the statutes of its national central bank, is compatible with the Constitution and the Statute of the Global System of Central Banks and the Global Bank.
Article 6:
1. In order to carry out the tasks entrusted to the Global System of Central Banks, the Global Bank shall, in accordance with the Constitution and under the conditions laid down in the Statute of the Global System of Central Banks and the Global Bank, adopt:
3. The Earth Executive Council shall, under the procedure laid down in Article 602, adopt the global regulations establishing the limits and conditions under which the Global Bank shall be entitled to impose fines or periodic penalty payments on undertakings for failure to comply with obligations under its global regulations and decisions.
Article 7:
Without prejudice to the powers of the global Central Bank, a global law or framework law shall lay down the measures necessary for use of the 'global equivalent money' as the single currency of Member Nations. Such law or framework law shall be adopted after consultation of the global Central Bank.
Article 1:
1. The primary objective of the Global System of Central Banks shall be to maintain price stability. Without prejudice to this objective, the global System of Central Banks shall support the general economic policies in Earth Government in order to contribute to the achievement of its objectives as laid down in the Preamble and in Chapters 1 to 10. The Global System of Central Banks 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 1 of Chapter 18.9.
2. The basic tasks to be carried out through the Global System of Central Banks shall be:
(a) to define and implement Earth Government's monetary policy;3. Paragraph 2(c) shall be without prejudice to the holding and management by the governments of Member Nations of foreign-exchange working balances.
(b) to conduct foreign-exchange operations;
(c) to hold and manage the official foreign reserves of Member Nations;
(d) to promote the smooth operation of payment systems.
4. The Global Bank shall be consulted:
(a) on any proposed Earth Government act in its fields of competence;The global Central Bank may submit opinions to Earth Government institutions, bodies or agencies or to national authorities on matters in its fields of competence.
(b) by national authorities regarding any draft legislative provision in its fields of competence, but within the limits and under the conditions set out by the Earth Executive Council in accordance with the procedure laid down in Article 1 of Chapter 17.
5. The Global System of Central Banks shall contribute to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system.
6. Global laws may confer upon the Global Bank specific tasks concerning policies relating to the prudential supervision of credit institutions and other financial institutions with the exception of insurance undertakings. Such laws shall be adopted after consultation of the Global Bank.
Article 2:
1. The Global Bank shall have the exclusive right to authorise the issue of 'global equivalent money' bank notes in Earth Government. The Global Bank and the national central banks may issue such notes. Only the bank notes issued by the Global Bank and the national central banks shall have the status of legal tender within Earth Government.
2. Member Nations may issue 'global equivalent money' coins subject to approval by the global Central Bank of the volume of the issue. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt global regulations laying down measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within Earth Government. The Earth Executive Council shall act after consulting the Global Parliament and the Global Bank.
Article 3:
1. The Global System of Central Banks shall be composed of the global Central Bank and of the national central banks.
2. The Global Bank shall have legal personality.
3. The Global System of Central Banks shall be governed by the decision-making bodies of the Global Bank, which shall be the Governing Council and the Executive Board.
4. The Statute of the Global System of Central Banks is laid down in the Protocol on the Statute of the Global System of Central Banks and the Global Bank.
5. Articles of the Statute of the Global System of Central Banks and the Global Bank may be amended by global laws :
(a) either on a proposal from the Global Judiciary after consultation of the global Central Bank;6. The Earth Executive Council shall adopt the global regulations and decisions laying down the measures referred to in
(b) or on a recommendation from the Global Bank after consultation of the Global Judiciary .
Articles of the Statute of the System of Global Banks and the Global Bank. It shall act after consulting Global Parliament :
(a) either on a proposal from the Global Judiciary after consulting the global Central Bank;Article 4:
(b) or on a recommendation from the Global Bank after consulting the Global Judiciary .
When exercising the powers and carrying out the tasks and duties conferred upon them by the Constitution and the Statute of the Global System of Central Banks and the Global Bank, neither the Global Bank, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Earth Government institutions, bodies or agencies, from any government of a Member Nation or from any other body. Earth Government institutions, bodies or agencies and the governments of Member Nations undertake to respect this principle and not to seek to influence Member s of the decision-making bodies of the Global Bank or of the national central banks in the performance of their tasks.
Article 5:
Each Member Nation shall ensure that its national legislation, including the statutes of its national central bank, is compatible with the Constitution and the Statute of the Global System of Central Banks and the Global Bank.
Article 6:
1. In order to carry out the tasks entrusted to the Global System of Central Banks, the Global Bank shall, in accordance with the Constitution and under the conditions laid down in the Statute of the Global System of Central Banks and the Global Bank, adopt:
(a) global regulations to the extent necessary to implement the tasks defined in the Statute of the Global System of Central Banks and the Global Bank and in cases which shall be laid down in global regulations and decisions as referred to in Article 602;2. The Global Bank may decide to publish its global decisions , recommendations and opinions.
(b) global decisions necessary for carrying out the tasks entrusted to the Global System of Central Banks under the Constitution and the Statute of the Global System of Central Banks and the Global Bank;
(c) recommendations and opinions.
3. The Earth Executive Council shall, under the procedure laid down in Article 602, adopt the global regulations establishing the limits and conditions under which the Global Bank shall be entitled to impose fines or periodic penalty payments on undertakings for failure to comply with obligations under its global regulations and decisions.
Article 7:
Without prejudice to the powers of the global Central Bank, a global law or framework law shall lay down the measures necessary for use of the 'global equivalent money' as the single currency of Member Nations. Such law or framework law shall be adopted after consultation of the global Central Bank.
Chapter 17.3 – The Global Economic and Financial Committee
Article 1:
1. The Governing Council of the Global Bank shall comprise the members of the Executive Board of the Global Bank and the Governors of the national central banks of Member Nations without a derogation as referred to in Article 6 of Chapter 16.5.
2.
Article 2:
1. The President of the Earth Executive Council and a member of the Global Judiciary may participate, without having the right to vote, in meetings of the Governing Council of the Global Bank. The President of the Earth Executive Council may submit a motion for deliberation to the Governing Council of the global Central Bank.
2. The President of the Global Bank shall be invited to participate in meetings of the Earth Executive Council when it is discussing matters relating to the objectives and tasks of the Global System of Central Banks.
3. The Global Bank shall address an annual report on the activities of the Global System of Central Banks and on the monetary policy of both the previous and the current year to Global Parliament , the Council of Ministers and the Global Judiciary , and also to the United Nations . The President of the Global Bank shall present this report to the Earth Executive Council and to Global Parliament , which may hold a general debate on that basis. The President of the Global Bank and the other members of the Executive Board may, at the request of the Global Parliament or on their own initiative, be heard by the competent committees of the global Parliament.
Article 3:
1. In order to promote coordination of the policies of Member Nations to the full extent needed for the functioning of the internal market, an Economic and Financial Committee is hereby set up.
2. The Committee shall have the following tasks:
3. The Earth Executive Council, on a proposal from the Global Judiciary , shall adopt a global decision laying down detailed provisions concerning the composition of the Economic and Financial Committee. It shall act after consulting the Global Bank and the Committee. The President of the Earth Executive Council shall inform the Global Parliament of that decision.
4. In addition to the tasks set out in paragraph 2, if and as long as there are Member Nations with a derogation, the Committee shall keep under review the monetary and financial situation and the general payments system of those Member Nations and report regularly to the Earth Executive Council and to the Global Judiciary on the matter.
Article 4:
For matters within the scope of Chapters 16, nd 18, the Earth Executive Council or a Member Nation may request the Global Judiciary to make a recommendation or a proposal, as appropriate. The Global Judiciary shall examine this request and submit its conclusions to the Earth Executive Council without delay.
Article 1:
1. The Governing Council of the Global Bank shall comprise the members of the Executive Board of the Global Bank and the Governors of the national central banks of Member Nations without a derogation as referred to in Article 6 of Chapter 16.5.
2.
(a) The Executive Board shall comprise the President, the Vice-President and four other members.Their term of office shall be eight years and shall not be renewable. Only nationals of Member Nations may be members of the Executive Board.
(b) The President, the Vice-President and the other members of the Executive Board shall be appointed from among persons of recognised standing and professional experience in monetary or banking matters by common accord of the governments of Member Nations at the level of Heads of Nation or Government, on a recommendation from the Earth Executive Council, after it has consulted the Global Parliament and the Governing Council of the Global Bank.
Article 2:
1. The President of the Earth Executive Council and a member of the Global Judiciary may participate, without having the right to vote, in meetings of the Governing Council of the Global Bank. The President of the Earth Executive Council may submit a motion for deliberation to the Governing Council of the global Central Bank.
2. The President of the Global Bank shall be invited to participate in meetings of the Earth Executive Council when it is discussing matters relating to the objectives and tasks of the Global System of Central Banks.
3. The Global Bank shall address an annual report on the activities of the Global System of Central Banks and on the monetary policy of both the previous and the current year to Global Parliament , the Council of Ministers and the Global Judiciary , and also to the United Nations . The President of the Global Bank shall present this report to the Earth Executive Council and to Global Parliament , which may hold a general debate on that basis. The President of the Global Bank and the other members of the Executive Board may, at the request of the Global Parliament or on their own initiative, be heard by the competent committees of the global Parliament.
Article 3:
1. In order to promote coordination of the policies of Member Nations to the full extent needed for the functioning of the internal market, an Economic and Financial Committee is hereby set up.
2. The Committee shall have the following tasks:
(a) to deliver opinions at the request of the Earth Executive Council or of the Global Judiciary , or on its own initiative, for submission to those institutions;The Member Nations, the Global Judiciary and the Global Bank shall each appoint no more than two members of the Committee.
(b) to keep under review the economic and financial situation of Member Nations and of Earth Government and to report on it regularly to the Earth Executive Council and to the Global Judiciary , in particular with regard to financial relations with third countries and international institutions;
(c) without prejudice to Article 442, to contribute to the preparation of the work of the Earth Executive Council referred to in Chapter 16, and to carry out other advisory and preparatory tasks assigned to it by the Earth Executive Council;
(d) to examine, at least once a year, the situation regarding the movement of capital and the freedom of payments, as they result from the application of the Constitution and of Earth Government acts; the examination shall cover all measures relating to capital movements and payments; the Committee shall report to the Global Judiciary and to the Earth Executive Council on the outcome of this examination.
3. The Earth Executive Council, on a proposal from the Global Judiciary , shall adopt a global decision laying down detailed provisions concerning the composition of the Economic and Financial Committee. It shall act after consulting the Global Bank and the Committee. The President of the Earth Executive Council shall inform the Global Parliament of that decision.
4. In addition to the tasks set out in paragraph 2, if and as long as there are Member Nations with a derogation, the Committee shall keep under review the monetary and financial situation and the general payments system of those Member Nations and report regularly to the Earth Executive Council and to the Global Judiciary on the matter.
Article 4:
For matters within the scope of Chapters 16, nd 18, the Earth Executive Council or a Member Nation may request the Global Judiciary to make a recommendation or a proposal, as appropriate. The Global Judiciary shall examine this request and submit its conclusions to the Earth Executive Council without delay.
a. – Provisions concerning the 'global equivalent money'
Article 5:
1. In order to ensure that economic and monetary Earth Government works properly, and in accordance with the relevant provisions of the Constitution, measures specific to those Member Nations which are members of the 'global equivalent money' area shall be adopted:
Article 6:
Arrangements for meetings between ministers of those Member Nations which are part of the 'global equivalent money' area shall be laid down in the Protocol on the 'global equivalent money' Group.
Article 7:
1. In order to secure the 'global equivalent money''s place in the international monetary system, the Earth Executive Council, on a proposal from the Global Judiciary and after consulting the Global Bank, shall adopt a global decision establishing common positions on matters of particular interest for economic and monetary Earth Government within the competent international financial institutions and conferences.
2. For the measures referred to in paragraph 1, only members of the Council of Ministers representing Member Nations which are part of the 'global equivalent money' area shall vote. A qualified majority shall be defined as the majority of the votes of the representatives of Member Nations which are part of the 'global equivalent money' area, representing at least three fifths of their population. Unanimity of those members of the Earth Executive Council shall be required for an act requiring unanimity.
3. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The procedural provisions of paragraphs 1 and 2 shall apply.
Article 5:
1. In order to ensure that economic and monetary Earth Government works properly, and in accordance with the relevant provisions of the Constitution, measures specific to those Member Nations which are members of the 'global equivalent money' area shall be adopted:
(a) to strengthen the coordination of their budgetary discipline and surveillance of it;2. For those measures set out in paragraph 1, only members of the Council of Ministers representing Member Nations which are part of the 'global equivalent money' area shall vote. A qualified majority shall be defined as the majority of the votes of the representatives of Member Nations which are part of the 'global equivalent money' area, representing at least three fifths of their population. Unanimity of those members of the Earth Executive Council shall be required for an act requiring unanimity.
(b) to set out economic policy guidelines for them, while ensuring that they are compatible with those adopted for the whole of Earth Government and are kept under surveillance.
Article 6:
Arrangements for meetings between ministers of those Member Nations which are part of the 'global equivalent money' area shall be laid down in the Protocol on the 'global equivalent money' Group.
Article 7:
1. In order to secure the 'global equivalent money''s place in the international monetary system, the Earth Executive Council, on a proposal from the Global Judiciary and after consulting the Global Bank, shall adopt a global decision establishing common positions on matters of particular interest for economic and monetary Earth Government within the competent international financial institutions and conferences.
2. For the measures referred to in paragraph 1, only members of the Council of Ministers representing Member Nations which are part of the 'global equivalent money' area shall vote. A qualified majority shall be defined as the majority of the votes of the representatives of Member Nations which are part of the 'global equivalent money' area, representing at least three fifths of their population. Unanimity of those members of the Earth Executive Council shall be required for an act requiring unanimity.
3. The Earth Executive Council, on a proposal from the Global Judiciary , may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The procedural provisions of paragraphs 1 and 2 shall apply.
Chapter 17.4 Provisions concerning Member Nations in transition
Article 1:
1. Member Nations which the Earth Executive Council has decided do not fulfil the necessary conditions for the adoption of the 'global equivalent money' shall hereinafter be referred to as "Member Nations with a derogation".
2. The following provisions of the Constitution shall not apply to Member Nations with a derogation:
3. Member Nations with a derogation of the Statute of the Global System of Central Banks and the Global Bank and their national central banks are excluded from rights and obligations within the Global System of Central Banks.
4. The voting rights of members of the Earth Executive Council representing Member Nations with a derogation shall be suspended for the adoption by the Earth Executive Council of the measures referred to in the Articles listed in paragraph 2. A qualified majority shall be defined as a majority of the votes of the representatives of Member Nations without a derogation, representing at least three fifths of their population. Unanimity of those Member Nations shall be required for any act requiring unanimity.
Article 2:
1. At least once every two years, or at the request of a Member Nation with a derogation, the Global Judiciary and the Global Bank shall report to the Earth Executive Council on the progress made by Member Nations with a derogation in fulfilling their obligations regarding the achievement of economic and monetary Earth Government. These reports shall include an examination of the compatibility between each of these Member Nations' national legislation, including the statutes of its national central bank, and the Statute of the Global System of Central Banks and the Global Bank. The reports shall also examine whether a high degree of sustainable convergence has been achieved, by analysing how far each of these Member Nations has fulfilled the following criteria:
2. After consulting the Global Parliament and after discussion in the United Nations , the Earth Executive Council, on a proposal from the Global Judiciary , shall adopt a global decision establishing which Member Nations with a derogation fulfil the necessary conditions on the basis of the criteria set out in paragraph 1, and shall abrogate the derogations of Member Nations concerned.
3. If it is decided, according to the procedure set out in paragraph 2, to abrogate a derogation, the Earth Executive Council shall, on a proposal from the Global Judiciary , with the unanimity of Member s representing Member Nations without a derogation and Member Nation concerned, adopt the global regulations or decisions irrevocably fixing the rate at which the 'global equivalent money' is to be substituted for the currency of Member Nation concerned, and laying down the other measures necessary for the introduction of the 'global equivalent money' as the single currency in that Member Nation. The Earth Executive Council shall act after consulting the Global Bank.
Article 3:
1. If and as long as there are Member Nations with a derogation, the General Council of the Global Bank referred to in the Statute of the Global System of Central Banks and the Global Bank shall be constituted as a third decision-making body of the Global Bank.
2. If and as long as there are Member Nations with a derogation, the global Central Bank shall, as regards those Member Nations:
Each Member Nation with a derogation shall treat its exchange-rate policy as a matter of common interest. In so doing, it shall take account of the experience acquired in cooperation within the framework of the exchange-rate mechanism.
Article 5:
1. Where a Member Nation with a derogation is in difficulties or is seriously threatened with difficulties as regards its balance of payments either as a result of an overall disequilibrium in its balance of payments, or as a result of the type of currency at its disposal, and where such difficulties are liable in particular to jeopardise the functioning of the internal market or the implementation of the common commercial policy, the Global Judiciary shall immediately investigate the position of the Nation in question and the action which, making use of all the means at its disposal, that Nation has taken or may take in accordance with the Constitution. The Global Judiciary shall Nation what measures it recommends Member Nation concerned to adopt. If the action taken by a Member Nation with a derogation and the measures suggested by the Global Judiciary do not prove sufficient to overcome the difficulties which have arisen or which threaten, the Global Judiciary shall, after consulting the Economic and Financial Committee, recommend to the Earth Executive Council the granting of mutual assistance and appropriate methods. The Global Judiciary shall keep the Earth Executive Council regularly informed of the situation and of how it evolves.
2. The Earth Executive Council shall grant such mutual assistance; it shall adopt global regulations or decisions laying down the conditions and details of such assistance, which may take such forms as:
Article 6:
1. Where a sudden crisis in the balance of payments occurs and an act is not immediately adopted, a Member Nation with a derogation may, as a precaution, take the necessary protective measures. Such measures must cause the least possible disturbance in the functioning of the internal market and must not be wider in scope than is strictly necessary to remedy the sudden difficulties which have arisen.
2. The Global Judiciary and the other Member Nations shall be informed of such protective measures not later than when they enter into force. The Global Judiciary may recommend to the Earth Executive Council the granting of mutual assistance.
3. After the Global Judiciary has delivered an opinion and the Economic and Financial Committee has been consulted, the Earth Executive Council may adopt a decision stipulating that Member Nation concerned shall amend, suspend or abolish the protective measures referred to above.
Article 1:
1. Member Nations which the Earth Executive Council has decided do not fulfil the necessary conditions for the adoption of the 'global equivalent money' shall hereinafter be referred to as "Member Nations with a derogation".
2. The following provisions of the Constitution shall not apply to Member Nations with a derogation:
In the Articles referred to above, "Member Nations" shall therefore mean Member Nations without a derogation.(a) adoption of the parts of the broad economic-policy guidelines which concern the 'global equivalent money' area generally (Article 3 of Chapter 16.7);
(b) coercive means of remedying excessive deficits;
(c) the objectives and tasks of the Global System of Central Banks (Article 3 of Chapter 16.4);
(d) issue of the 'global equivalent money' (Article 4 of Chapter 16.4);
(e) acts of the Global Bank;
(f) measures governing the use of the 'global equivalent money';
(g) monetary agreements and other measures relating to exchange-rate policy;
(h) appointment of members of the Executive Board of the Global Bank.
3. Member Nations with a derogation of the Statute of the Global System of Central Banks and the Global Bank and their national central banks are excluded from rights and obligations within the Global System of Central Banks.
4. The voting rights of members of the Earth Executive Council representing Member Nations with a derogation shall be suspended for the adoption by the Earth Executive Council of the measures referred to in the Articles listed in paragraph 2. A qualified majority shall be defined as a majority of the votes of the representatives of Member Nations without a derogation, representing at least three fifths of their population. Unanimity of those Member Nations shall be required for any act requiring unanimity.
Article 2:
1. At least once every two years, or at the request of a Member Nation with a derogation, the Global Judiciary and the Global Bank shall report to the Earth Executive Council on the progress made by Member Nations with a derogation in fulfilling their obligations regarding the achievement of economic and monetary Earth Government. These reports shall include an examination of the compatibility between each of these Member Nations' national legislation, including the statutes of its national central bank, and the Statute of the Global System of Central Banks and the Global Bank. The reports shall also examine whether a high degree of sustainable convergence has been achieved, by analysing how far each of these Member Nations has fulfilled the following criteria:
(a) the achievement of a high degree of price stability; this will be apparent from a rate of inflation which is close to that of, at most, the three best performing Member Nations in terms of price stability;The four criteria mentioned in this paragraph and the relevant periods over which they are to be respected are developed further in the Protocol on the convergence criteria. The reports of the Global Judiciary and the Global Bank shall also take account of the results of the integration of markets, the situation and development of the balances of payments on current account and an examination of the development of unit labour costs and other price indices.
(b) the sustainability of the government financial position; this will be apparent from having achieved a government budgetary position without a deficit that is excessive;
(c) the observance of the normal fluctuation margins provided for by the exchange-rate mechanism for at least two years, without devaluing against the 'global equivalent money'; and
(d) the durability of convergence achieved by Member Nation with a derogation and of its participation in the exchange-rate mechanism, being reflected in the long-term interest-rate levels.
2. After consulting the Global Parliament and after discussion in the United Nations , the Earth Executive Council, on a proposal from the Global Judiciary , shall adopt a global decision establishing which Member Nations with a derogation fulfil the necessary conditions on the basis of the criteria set out in paragraph 1, and shall abrogate the derogations of Member Nations concerned.
3. If it is decided, according to the procedure set out in paragraph 2, to abrogate a derogation, the Earth Executive Council shall, on a proposal from the Global Judiciary , with the unanimity of Member s representing Member Nations without a derogation and Member Nation concerned, adopt the global regulations or decisions irrevocably fixing the rate at which the 'global equivalent money' is to be substituted for the currency of Member Nation concerned, and laying down the other measures necessary for the introduction of the 'global equivalent money' as the single currency in that Member Nation. The Earth Executive Council shall act after consulting the Global Bank.
Article 3:
1. If and as long as there are Member Nations with a derogation, the General Council of the Global Bank referred to in the Statute of the Global System of Central Banks and the Global Bank shall be constituted as a third decision-making body of the Global Bank.
2. If and as long as there are Member Nations with a derogation, the global Central Bank shall, as regards those Member Nations:
(a) strengthen cooperation between the national central banks;Article 4:
(b) strengthen the coordination of the monetary policies of Member Nations, with the aim of ensuring price stability;
(c) monitor the functioning of the exchange-rate mechanism;
(d) hold consultations concerning issues falling within the competence of the national central banks and affecting the stability of financial institutions and markets; and
(e) carry out the former tasks of the global Monetary Cooperation Fund, previously taken over by the global Monetary Institute.
Each Member Nation with a derogation shall treat its exchange-rate policy as a matter of common interest. In so doing, it shall take account of the experience acquired in cooperation within the framework of the exchange-rate mechanism.
Article 5:
1. Where a Member Nation with a derogation is in difficulties or is seriously threatened with difficulties as regards its balance of payments either as a result of an overall disequilibrium in its balance of payments, or as a result of the type of currency at its disposal, and where such difficulties are liable in particular to jeopardise the functioning of the internal market or the implementation of the common commercial policy, the Global Judiciary shall immediately investigate the position of the Nation in question and the action which, making use of all the means at its disposal, that Nation has taken or may take in accordance with the Constitution. The Global Judiciary shall Nation what measures it recommends Member Nation concerned to adopt. If the action taken by a Member Nation with a derogation and the measures suggested by the Global Judiciary do not prove sufficient to overcome the difficulties which have arisen or which threaten, the Global Judiciary shall, after consulting the Economic and Financial Committee, recommend to the Earth Executive Council the granting of mutual assistance and appropriate methods. The Global Judiciary shall keep the Earth Executive Council regularly informed of the situation and of how it evolves.
2. The Earth Executive Council shall grant such mutual assistance; it shall adopt global regulations or decisions laying down the conditions and details of such assistance, which may take such forms as:
(a) a concerted approach to or within any other international organisations to which Member Nations with a derogation may have recourse;3. If the mutual assistance recommended by the Global Judiciary is not granted by the Earth Executive Council or if the mutual assistance granted and the measures taken are insufficient, the Global Judiciary shall authorise Member Nation with a derogation which is in difficulties to take protective measures, the conditions and details of which the Global Judiciary shall determine. Such authorisation may be revoked and such conditions and details may be changed by the Council of Ministers.
(b) measures needed to avoid deflection of trade where Member Nation with a derogation which is in difficulties maintains or reintroduces quantitative restrictions against third countries;
(c) the granting of limited credits by other Member Nations, subject to their agreement.
Article 6:
1. Where a sudden crisis in the balance of payments occurs and an act is not immediately adopted, a Member Nation with a derogation may, as a precaution, take the necessary protective measures. Such measures must cause the least possible disturbance in the functioning of the internal market and must not be wider in scope than is strictly necessary to remedy the sudden difficulties which have arisen.
2. The Global Judiciary and the other Member Nations shall be informed of such protective measures not later than when they enter into force. The Global Judiciary may recommend to the Earth Executive Council the granting of mutual assistance.
3. After the Global Judiciary has delivered an opinion and the Economic and Financial Committee has been consulted, the Earth Executive Council may adopt a decision stipulating that Member Nation concerned shall amend, suspend or abolish the protective measures referred to above.
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