This procedure is one of the special legislative procedures used in the European Union. This procedure is used for some very important economic issues. The main characteristic of this procedure is that the European Parliament (EP) plays no role in the decision making.
Roughly, the ADO procedure proceeds as follows: the European Commission submits a proposal to the Council of Ministers. Then the Council decides on it.
Step 1: initiative
The European Commission submits a proposal to the Council of Ministers.
Step 2: adoption proposal
The Council of Minister decides on the proposal by qualified majority vote.
If the proposal relates to granting of EU assistance in special situation, to one ore more countries in the macroeconomic area, the European Parliament is informed of the decision.
Exception: measures against excessive government deficit of a member
Step 1: determining violation
The European Commission monitors the budgetary situation of each Member State according to the Stability and Growth pact. If a country fails to comply to these agreements, the Commisson will prepare a report.
Step 2: proposal for recommendation
The Economic and Financial Committee brings out an advices on the Commissions report. Then, the Commission may choose to submit a proposal - a recommendation to the Member State in question - to the Council of Ministers.
Step 3: adopting recommendations
The Council decides on the recommendations. The Member State, to which the recommendations apply, must be given the opportunity to explain its position.
The Council must ensure that the recommendations are adopted.
Step 4: proposal for stringent measures
If the Member State in question doe not, or does not adequately, respond to the recommendations made, the Commission may draw up proposals for sanction. The Commission forwards these proposals tot the Council of Ministers.
Step 5: adopting the stringent measures
The Council decides on the proposed sanctions.
The European Parliament is informed of the decision taken.
The Council decides per qualified majority i. The country to which the decision relates has no voting rights.
The ADO procedure is not used much. This procedure is only used in a number of specific economic, financial and monetary issues:
-expounding of the general policy framework and of the requirements for a balanced development of the internal market
-checking whether Member States comply with the budgetary deficit rules and possibly punishing countries that do not follow those rules
-bailing out Member States affected by exceptional economic circumstance, requiring economic support
-determining common customs tariffs. In practice the Commission further elaborates these rules and tariffs.
-implementing measures against financial terrorism
The ADO procedure is based on the Treaty of the European Union and the Treaty on the Functioning of the European Union. It is described per policy area if this procedure applies
-Excessive deficit Member States: part three TfEU, titel VIII chapter 1 art. 126 i