Opinion of the Advocate General — ECLI:EU:C:1998:618
Date: 1998-12-17
Language of the case: Swedish
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Right of establishment;Freedom to provide services
Procedure: Reference for a preliminary ruling
Origin: Sweden

Summary of the Judgment 
Freedom of movement for persons — Freedom of establishment — Freedom to provide services 
— Direct insurance — Directives 73/239 and 79/267 — Member States prohibited from pre­
scribing certain rules as to the choosing of assets by insurance undertakings — National legisla-
tion prohibiting undertakings from owning, as part of their free assets, shares in a public limited 
liability company corresponding to more than 5% of the total voting rights — Not compatible — 
Direct effect of certain provisions of Community law 
(Council Directives 73/239, Art. 18(1), 79/267, Art. 21(1), 92/49, Art. 26, and 92/96, Art. 27) 
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SUMMARY — CASE C-241/97 
On a proper construction of Article 18(1) of 
the First Directive (73/239) on the coordina­
tion of laws, regulations and administrative 
provisions relating to the taking-up and pur­
suit of the business of direct insurance other 
than life assurance, as amended by Article 26 
of Directive 92/49, and of Article 21(1) of the 
First Directive (79/267) on the coordination 
of laws, regulations and administrative provi­
sions relating to the taking-up and pursuit of 
the business of direct life assurance, as 
amended by Article 27 of Directive 92/96 — 
which provide that Member States must not 
prescribe any rules as to the choice, by insur­
ance undertakings, of assets that need not be 
used as cover for the technical provisions — 
a rule of national law may not prohibit insur­
ance undertakings from holding, as their free 
assets, shares representing more than 5% of 
all the voting rights in a domestic or foreign 
public limited company without administra­
tive authorisation. 
It is clear from the very wording of the pro­
visions at issue that the Member States must 
abstain from enacting any rules as to the 
choice of assets constituting the free assets of 
insurance undertakings, whether in relation 
to the quality or to the quantity of such assets. 
Moreover, the above provisions are suffi­
ciently precise and unconditional to be relied 
upon before the national court as against the 
national authorities, rendering inapplicable 
any contrary rule of domestic law. 
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