BRUSSELS, Feb. 6, 1992 (UPI) -- The treaty results from agreements reached Dec. 9-10 at the last summit of EC heads of state and government in the southern Dutch town of Maastricht, which will host Friday's signing.
The treaty's preamble says the contracting parties ''establish among themselves a European Union,'' as a new stage in ''the process of creating an ever closer union among the peoples of Europe.''
It describes the main objectives of the Union as promoting economic and social progress, ''in particular through the creation of an area without internal frontiers, through the strengthening of economic and social cohesion and through the establishment of economic and monetary union, ultimately including a single currency.''
The Union also wants ''to assert its identity on the international scene, in particular through the implementation of a common foreign and security policy including the eventual framing of a common defense policy, which might in time lead to a common defense.''
The treaty introduces a citizenship of the Union for every national of the member states.
Every citizen of the Union would have the right to move and reside freely within the territory of the member states including the right to vote or be a candidate in local municipal elections or for elections to the European Parliament.
The start of the European Community can be traced to 1951 when France, Germany, Italy, Belgium, The Netherlands and Luxembourg signed the treaty establishing the European Coal and Steel Community.
On Jan. 1, 1958, those members launched the European Economic Community and the European Atomic Energy Community.
The number of members since has grown to 12, including Britain, Ireland, Denmark, Greece, Spain and Portugal.
The Union treaty changes the name of the European Economic Community into European Community and adapts provisions of the European Coal and Steel Community and of the European Atomic Energy Community.
The 12 member states are in the first stage of monetary union which aims at bringing about more economic convergence. The Maastricht treaty provides for the second stage of monetary union to start on Jan. 1, 1994, when member states mus have taken measures ''to ensure the lasting convergence necessary for the achievement of economic and monetary union, in particular with regard to price stability and sound public finance.''
At the start of the second stage, a European Monetary Institute will be set up to strengthen coordination of monetary policies.
The treaty also provides for setting up a European System of Central Banks that will have a coordinating function leading to the establishment of a full fledged European Central Bank.
By the end of 1996, the member states will have to decide whether conditions are fulfilled to move into the third and final stage of monetary union. If not, the third stage will start irrevocably on Jan. 1, 1999, including the introduction of a common currency, the ECU (European Currency Unit.)
Strict conditions are set for member states to move into the third stage. Government deficits cannot exceed 3 percent of Gross Domestic Product, public debt should not be higher than 60 percent of GDP and inflation not more than 1.5 percentage points above that of the three best performing member states in terms of price stability.
A special protocol attached to the treaty recognizes that Britain shall not be obliged to participate in the third stage of monetary union without a separate decision by its government and parliament. Another protocol takes into account that Denmark may have to organize a popular referendum before joining the third stage.
Another chapter of the treaty provides for defining and implementing a common foreign and security policy, ''including the eventual framing of a common defense policy, which might in time lead to a common defense.''
In a declaration attached to the treaty, the nine EC member states which belong to the Western European Union, say their objective is to build up the WEU ''in stages as the defense component of the European Union.''
In another protocol attached to the treaty, which Britain refused to join, 11 member states commit themselves to closer cooperation on social policy, including ''promotion of employment, improved living and working conditions, proper social protection, dialogue between management and labor, the development of human resources with a view to lasting high employment and the combating of exclusion.''