As a result of the political agreement reached in December 1997 within the European Union, Article 38(2) refers to this particular situation, enabling the Nordic Member States to continue applying the Nordic Agreement in their mutual relations. However, the conditions laid down in that Article must be fulfilled. Application by the Nordic Member States of the 1931 Nordic Agreement in their mutual relations is in line with Article K.7 of the Treaty on European Union, which does not prevent the establishment of closer cooperation between two or more Member States in so far as such cooperation does not conflict with, or impede, that provided for in the Convention.