COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 01.07.1998 
COM(1998) 403 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
Commission Communication to the European Parliament 
and the Council on the follow-up to the recommendations 
of the High-Level Panel on the Free Movement of Persons 

Commission Communication to the European Parliament and 
the Council on the follow-up to the recommendations of the 
High-Level Panel on the Free Movement of Persons 
On 24 January 1996 the Commission requested the High-Level Panel on the Free 
Movement of Persons, chaired by Mrs Simone Veil, to identify the problems still arising 
in this area and to evaluate them and propose solutions. 
On 18 March 1997 the High-Level Panel presented its report, which makes over eighty 
recommendations in the seven chief areas of interest to citizens of the Union wishing to 
move within the Community area, i.e.: 
- entry and residence, 
- access to employment, 
- social rights and family status, 
- tax and financial status, 
- cultural rights, 
- special situation of third-country nationals, 
- protection of the rights of individuals. 
The Commission considers the Panel's report to be an excellent assessment of the many 
difficulties encountered by citizens exercising their right to the free movement of 
persons. 
A large proportion of the Panel's recommendations have, therefore, been incorporated by 
the Commission into its Action Plan for the Single Market of June 19971 and its Action 
Plan for the Free Movement of Workers of November 1997.2 Some other 
recommendations have been overtaken by events or require reassessment on account of 
the new legal environment which will come into existence with the entry into force of the 
Treaty of Amsterdam. This communication focuses on two aspects of free movement 
which were examined by the Panel: first, the rights of entry and residence and, second, 
the need to improve information to citizens regarding their rights. A detailed review of 
the follow-up to all of the Panel's recommendations is given in the annex. 
Rights of entry and residence 
As stated in the High-Level Panel's report, rights of entry and residence were initially 
linked to the pursuit of an occupation. Since then, mainly as a result of secondary 
legislation, these rights have gradually been extended to cover all citizens. This step-by-step 
extension has meant, however, that beneficiaries have been compartmentalised in a way 
that is no longer in keeping with modem forms of mobility or with the establishment of 
citizenship of the Union. 
1 CSE(97)1 final. 
2 COM(97) 586 final. 
4<^ 
It is noted, therefore, that Community legislation, as it now stands, has been essentially 
conceived for workers and their families who wish to become established in another 
Member State cither permanently or for a very long period. It is, on the other hand, 
ill-adapted to the circumstances of persons who exercise their right to mobility for a limited 
period or on a part-time basis (students, trainees, employees who are temporarily seconded, 
mobile self-employed persons, frontier workers, retired persons with more than one 
residence, etc.). The number of such persons is difficult to gauge; it is, however, expected 
to grow considerably on account of the effects of European integration, changes in ways of 
living and working, the growing need for young people undergoing initial training to spend 
a study or training period in another country, technological innovations in communications 
and the development of transport links . 
Furthermore, by introducing into Article 8a of the EC Treaty the concept of citizenship of 
the Union, the Treaty of European Union generalised, for the benefit of all citizens, the 
right to enter, the right to reside and the right to remain in the territory of another 
Member State. From this point of view, these rights are becoming an integral part of the 
legal heritage of every citizen of the European Union and should be formalised in a 
common corpus of legislation . 
For all these reasons, the Commission considers it necessary to harmonise the legal status 
of all Community citizens in the Member States, irrespective of whether they pursue an 
economic activity or not. The main guidelines of the Commission's proposals in this 
connection will be as follows : 
- the creation, in so far as possible, of a single set of rules on free movement within the 
meaning of Article 8a for all citizens of the Union and the members of their families; 
a new approach to exercising the right to reside, particularly by restricting the 
obligation to hold a residence permit to situations where this is justified; 
- a clarification of the status of those members of the family of a citizen of the Union 
who are nationals of a third country; 
- clearer restrictions regarding the possibility of curtailing the exercise of the right to 
reside. 
Revising the right of free movement and residence in the context of the rules on 
citizenship is a task of such a global nature and such broad scope that results cannot be 
expected for the citizens of the Union in the short term . For that reason, in tandem with 
this communication, the Commission is already proposing a revision of 
Regulation (EEC) 1612/68 and of Directive 360/68/EEC on the freedom of movement 
and the right of entry and residence of workers. This selective revision is aimed at 
improving the present situation of workers and members of their families who move, in 
keeping with the undertaking made by the Commission in its Action Plan of 
November 1997. In this connection, the European Council held on 20 November 1997 
recognised the importance of the mobility of workers from the point of view of 
reinforcing the functioning of the national employment markets. 
Measures to reform and simplify the rules on coordinating social security schemes will 
also be proposed by the end of 1998. 
JL 
Improving information to citizens 
Facilitating the free movement of persons is a many-faceted task, as is demonstrated by 
the great diversity of the subjects covered by the Panel's report. 
However, the report lays stress in several places on the need to improve information to 
citizens regarding their rights under Community legislation and to provide better training 
and information for all those involved in the exercise of free movement. 
In this respect, it is appropriate to highlight the measures already taken by the 
Commission: 
- launch, on the occasion of the Cardiff European Council of 15 and 16 June 1998, of 
the "Dialogue with the Citizens", which follows up and builds on the "Citizens First" 
initiative and is aimed at providing people with practical information on their 
free-movement and related rights, answering their questions and directing them 
towards the appropriate administration if they run into difficulties; 
- publication of a "Route map for job-seekers in the EU", which has been published in 
response to questions raised by citizens in the context of the "Citizens First" initiative; 
development and improvement of the EURES network, which provides information 
on job opportunities and on living and working conditions in the Member States; 
- development and consolidation of the Euro-Jus network, which is aimed at providing 
advice and legal assistance at the level of the Commission's representative offices in 
the Member States; 
- pursuit and development of the Karolus programme on the exchange and training of 
national officials responsible for single-market legislation, the "Robert Schuman" 
programme on raising the legal profession's awareness of Community law, the 
"Jean Monnet" programme for universities and the "Grotius" programme on the 
exchange of legal practitioners; 
- support for the development of the Eurodesk network, which is aimed at providing an 
information service covering all questions relating to young people and the 
organisations responsible for their rights. 
Conclusion 
The object of this communication is to provide an overview of the Commission's 
response to the recommendations of the High-Level Panel in two important areas, one of 
which requires legislative proposals, while the other helps to bring Europe closer to its 
citizens. 
In the first of these areas, the Commission has adopted legislative proposals aimed at 
reinforcing the free movement of workers, while embarking on a detailed analysis of the 
concept of European citizenship and its legal effects on citizens' right of entry and 
residence in the Member States. 
Ac 
ANNEX 
Review of the Report of the High-Level Panel on the Free 
Movement of Persons 
Introduction 
The Report of the High-Level Panel on the Free Movement of Persons chaired by 
Mrs Simone Veil (hereafter referred to as the "Panel's Report"), which was presented to 
the Commission on 18 March 1997, aroused very keen interest on the part of a large 
number of bodies and institutions, particularly the European Parliament. Its 
methodological rigour and analytical qualities were widely acclaimed and contributed to 
the discussion on the practical measures to be adopted in order to achieve a genuine area 
of free movement of persons in the European Union. 
In this context, the President of the Commission undertook to have the situation 
appraised at the end of the year following that in which the Report was submitted. 
Such an appraisal having now been carried out, the object of this review is to sum up on 
the follow-up given, particularly by the Commission, to the recommendations made. 
The task assigned to the Panel by the Commission consisted in identifying the existing or 
potential obstacles encountered by European citizens in exercising their right to move 
freely and to work within the Union. It was, on the one hand, to study how current legal 
instruments are applied and identify ways of improving them or making their operation 
more effective and, on the other, to recommend new measures to supplement the existing 
panoply of legislation which could eliminate certain obstacles or provide solutions to 
problems not yet tackled by the Community. 
The Panel's Report accordingly contains over 80 recommendations. 
An examination of the follow-up to the Panel's Report must begin by mentioning the 
three main Community instruments which have been adopted since it was presented and 
which will influence the free movement of persons. 
First, the Treaty «f Amsterdam was adopted on 19 June 1997 and signed on 
2 October 1997. This Treaty introduces into the EC Treaty provisions which should make 
it easier to achieve the objective of the free movement of persons, from the point of view 
of both the abolittew of internal-border checks and the right to move and reside freely 
within the territory ef the Member States. 
Al 
Second, the Amsterdam European Council also approved the Action Plan for the Single 
Market, Strategic Target 4 of which is aimed at delivering a single market for the benefit 
of all citizens.1 The six actions currently being developed under this Strategic Target are 
directed at abolishing border checks, updating the rules on the right of residence, 
protecting social rights, promoting the mobility of labour within the Union, protecting 
consumer rights, public health and the environment and developing the dialogue with the 
citizen. The six-monthly Single-Market Scoreboard2 makes it possible to gauge the state 
of progress of each measure to be implemented under the Action Plan. 
Third, it is also necessary to draw attention to the publication by the Commission on 
12 November 1997 of the Action Plan for Free Movement of Workers, which 
constitutes a response to some of the Panel's recommendations.3 
In its Work Programme for 1998, the Commission also indicates that, on the basis of the 
recommendations contained in the Panel's Report, it will work towards making the 
principle of free movement of persons a reality. In its resolution commenting on this 
Programme, Parliament requests the Council and Commission to implement all the 
recommendations contained in the Panel's Report on the free movement of persons. 
For reasons of simplification and clarity, this review is divided into seven chapters 
corresponding to those contained in the Report. The follow-up to the special report on 
supplementary pensions4 is described in Chapter 3 (social rights and family status). 
1. EN TRY AND RESIDENCE 
The Panel's Report refers to persistent obstacles to the right to move and reside 
freely in the territory of the Member States. These obstacles fall into three 
categories: the continued existence of checks at internal frontiers, shortcomings in 
administrative practices and legislative deficiencies. 
The continued existence of checks at internal borders 
The Commission of course shares the Panel's view that the citizen cannot appreciate 
all the effects of the internal market as long as checks continue to be carried out at 
internal borders. The discussions held within all the Community institutions have 
highlighted the differences of opinion regarding both the objective to be achieved 
and the means of guaranteeing a high degree of security in an area of free 
movement. The 1995 Commission proposals for completing all legislative 
instruments were not carried through. However, the new Amsterdam Treaty took up 
the progress achieved at the Schengen inter-governmental level and incorporating it 
into a Union context, setting a target date of five years to achieve this objective and 
1 CSIi(97)l final, 4 June 1997. 
2 No I, November 1997, SEC( 97) XXXI; No 2, May 1998, SEC(98) XXX. 
3 COM(97), 586 final, 12 November 1997. 
4 Report by the High-Level Panel adopted on 28 and 29 November 1996 and annexed to the Report on 
the free movement of persons. 
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adopting ad hoc solutions for the United Kingdom, Ireland and Denmark that are 
given practical expression in various Protocols annexed to the Treaty. It may be 
noted, however, that freedom to travel without controls is already a reality between 
nine Member States and a tenth is preparing to join the leaders shortly. 
- Shortcomings in administrative practices 
The letters sent to the Commission, the numerous complaints from citizens and the 
petitions sent to the European Parliament merely go to confirm the High-Level 
Panel's findings regarding a number of shortcomings in administrative practices and 
the need for new initiatives, which the Commission announced in its Action Plan for 
the Single Market and has already started to act upon, particularly the decision to 
accelerate internal administrative procedures for dealing with complaints and 
initiating the infringement procedures set out in Article 169 of the EC Treaty and to 
make them more transparent to citizens (see the most recent Commission report to 
the European Parliament and Council on monitoring the application of Community 
law). The Commission will also present an interpretative communication on the 
application of Directive 64/221/EEC concerning public policy, public security or 
public health. 
- Legislative deficiencies 
The Commission shares the Panel's view that it is necessary to present new 
proposals to amend and simplify exercise of the right of free movement of persons 
and, in particular, to allow full benefit to be derived from the establishment of 
citizenship of the Union. The most ambitious method would certainly consist in a 
complete revision of all rights and obligations connected with the movement and 
residence of citizens of the Union and members of their families. This objective had 
already been expressed once by the 1993 Brussels European Council, but could not 
be achieved for reasons relating, inter alia, to the problem of the wide array of legal 
bases and legislative procedures governing the category to which the citizen 
exercising his right of free movement belongs.5 
The establishment of citizenship of the Union and a new provision introduced by the 
Treaty of Amsterdam into Article 18(2) (former Article 8a) on the codecision 
procedure referred to in Article 251 (former Article 189b) should pave the way for a 
proposal for a revision that is capable of providing a consistent and comprehensive 
solution to the legal and administrative obstacles noted by the High-Level Panel. 
Thus, new proposals on employed persons have been presented by the Commission 
in conjunction with this review. These proposals are aimed at amending 
Regulation (EEC) No 1612/68 and Directive 68/360/EEC along the lines announced 
in the Action Plan for Free Movement of Workers6 and are thus in keeping with 
several of the Panel's recommendations. In accordance with the commitment 
5 See in this connection the Second report from the Commission on citizenship of the Union 
(COM(97) 230 final, 27 May 1997). 
6 COM(97) 586 final, 12 November 1997. 
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contained in the Action Plan for the Single Market, the Commission will not fail to 
draw up further detailed proposals. 
In this connection, a report on the application of the three Directives on the right of 
residence of students, retired persons and non-active persons will make it possible to 
define the legislative shortcomings which require to be remedied. 
Finally, mention should be made of the judgment delivered on 12 May 1998 in Sala,7 
in which the Court ruled that Community law precludes a Member State from 
requiring nationals of other Member States authorised to reside in its territory to 
produce a formal residence permit issued by the national authorities in order to receive 
a child-raising allowance, when the Member State's own nationals are only required to 
be permanently or ordinarily resident in that Member State. This judgment is 
important in that it establishes, through the combined application of 
Articles 6, 8 and 8a of the Treaty, the principle of non-discrimination against citizens 
of the Union in areas falling within the scope of Community law. 
2. ACCESS TO EMPLOYMENT 
Where access to public-service jobs is concerned, the Court has laid down in its 
case law the criteria for deciding which sectors are reserved for nationals pursuant to 
Article 48(4) of the EC Treaty. Accordingly, the Commission will ensure that 
Member States fully abolish all restrictions on access to such jobs in the public sector. 
As regards the general principle of mutual recognition in all public sectors in the 
Member States, progress has been made and discussions are continuing with and 
between the Member States. Where the specific question of professional experience 
acquired in another Member State is concerned, it should be pointed out that 
theCourt, in its Kalliope judgment of 15 January 1998,8 declared as being contrary 
to Article 48 of the EC Treaty a clause in a collective agreement applicable to the 
public service of a Member State which did not take any account of previous periods 
of comparable employment completed in the public service of another 
Member State. Phis case law was confirmed by the judgement of 12 March 1998 in 
Commission v Greece.9 In this respect, the principle of equivalence of situations for 
occupational purposes has been incorporated into the proposal for the revision of 
Regulation (EEC) No 1612/68 and of Directive 68/360/EEC and the effects of this 
principle should be felt mainly in the area of public-service jobs (see below). 
7 CaseC-85/96. 
1 Case C-15/96. 
9 Case C-187/96. 
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Where recognition of diplomas is concerned, it should be pointed out first that the 
Directive on the freedom of establishment of lawyers was adopted on 
16 February 1998.10 
Also in December 1997, in the context of the SLIM (Simpler Legislation for the 
Single Market (SLIM) initiative, the Commission presented a proposal for a 
Directive aimed at simplifying and modernising the seven sectoral Directives for the 
regulated professions (nurses, dentists, vets, midwives, architects, pharmacists and 
doctors).11 This proposal also incorporates some of the Panel's recommendations (as 
regards the general system, the obligation to take into consideration, in examining 
applications for recognition, experience gained after the award of the qualification; 
as regards the sectoral Directives, the possibility of recognising qualifications 
awarded to Community nationals in third countries). 
Finally, the Council has agreed a common position on the amended version of the 
February 1996 proposal for a Directive12 consolidating the Directives on access to 
craft and industrial activities and establishing a mechanism for the recognition of 
qualifications in respect of professional activities not yet covered by the general 
system. This proposal consolidates about thirty directives granting access to 
regulated activities on the basis of professional experience in the country of origin 
and completes them by creating for these same activities a procedure for recognition 
of diplomas. 
Several pilot schemes have been launched under the Socrates and Leonardo da Vinci 
programmes on the evaluation and accreditation of professional qualifications. 
In this connection, as indicated in the'Panel's Report, a feasibility study on a 
"professional passport" had been requested by the Council. However, in 1995, the 
final report on the "individual portfolio" project highlighted technical and cultural 
problems which prevented the portfolio playing its full role in fostering the 
transparency of skills and qualifications. 
The proposal for a Commission Decision aimed at establishing a Community 
information document ("EUROPASS-Training") for young people who are 
undergoing training, including apprenticeship, and undertake one or more training 
periods in another Member State,13 is now at the common-position stage within the 
Council and should be finalised before the end of 1998. This proposal demonstrates 
that it is possible to reinforce transparency without interfering in the powers of the 
Member States. The Commission is in fact examining the possibility of following up 
the EUROPASS-Training initiative with a similar one in the field of continuing 
10 Directive 98/5/EC of the European Parliament and of the Council of 16 February 1998 to facilitate 
practice of the profession of lawyer on a permanent basis in a Member State other than that in which 
the qualification was obtained, OJ No L77, 14 March 1998. 
1 ' COM (97) 638 final, 2 December 1997. 
12 OJ No C 264, 30 August 1997. 
13 See footnote 23. 
training. The central question hinges on the portability of the skills acquired 
throughout an individual's career, whether through formal training resulting in 
qualifications or through initiatives taken by firms in conjunction with new 
validation and accreditation methods, as suggested in the Commission White Paper 
entitled "Teaching and learning: towards the learning society". 
The Commission is currently pursuing its efforts in a number of directions with a 
view to overcoming these difficulties in order to improve the information 
exchanged. 
Moreover, the Commission has included the principle of equivalence of situations 
lor occupational purposes in its proposal for the revision of 
Regulation (EEC) No 1612/68. This principle is aimed at enabling facts or events 
which have legal or professional effects in one Member State to be taken into 
account even if they have occurred in another Member State. It will apply, therefore, 
to professional qualifications acquired in other Member States, so that they may be 
valid in the host Member State. 
Furthermore, as announced in the Action Plan for Free Movement of Workers, the 
Commission wishes to involve the social partners in the implementation of free 
movement. It believes that such involvement could result in the establishment of 
systems that would make professional qualifications more transparent and easier to 
compare between Member States. The social partners have also been able to 
participate and express their views in the context of meetings of experts. 
In addition, in order to reinforce the participation and contribution of the social 
partners, the Commission, in the context of the revision of 
Regulation (EEC) No 1612/68, presented a proposal on merging the existing advisory 
committees on the free movement of workers and the coordination'of social security 
schemes. The new committee resulting from the merger of the old tripartite 
committees (Member States, employers and trades unions) will be destined to become 
a highly qualified forum for discussing and analysing all issues relating to the mobility 
of workers in Europe: employment policy, social security, recognition of 
qualifications, etc. 
Finally, the Commission is making a substantial effort to improve practical 
information for job-seekers. Since the Panel's Report was presented, the EURES 
network, which supplies information on job opportunities and on living and working 
conditions, has grown to such an extent that it comprised 477 Euroadvisers by the 
end of 1997. Both the Action Plan for the Single Market and the Action Plan for 
Free Movement of Workers provide for improvements to this system, particularly in 
cross-border areas. 
3. SOCIAL RIGHTS AND FAMILY STATUS 
The Treaty of Amsterdam does not change the unanimity rule laid down in 
Article 51, as suggested in the Panel's Report. 
The Panel makes a number of recommendations for simplifying the rules on the 
coordination of social security schemes. 
In the Action Plan for Free Movement of Workers, the Commission undertook to 
present, by the end of 1998, a proposal for revising and simplifying 
Regulation (EEC) No 1408/71 on the coordination of social security schemes.14 
These rules have, moreover, been selected for the third phase of the SLIM exercise. 
On 29 June 1998,l5 the Council adopted part of the Commission proposal of 
13 December 1991 to extend the coordination of social security schemes to special 
schemes for civil servants.16 However, the section on students and non-employed 
persons is still under discussion. 
The Commission is making every effort to ensure that the proposals for extending 
the practical scope of Regulation (EEC) No 1408/71 to early-retirement schemes 
and to the maintenance of unemployment benefits, which are still pending before the 
Council, are adopted even before the entry into force of the Treaty of Amsterdam. 
Moreover, if these two proposals have not yet been adopted by the Council, the 
Commission will consider incorporating the guidelines they contain into the 
proposal for simplifying and reforming Regulation (EEC) No 1408/71 and 
Regulation (EEC) No 574/72. 
The Panel's report also emphasised the need to improve information to citizens 
regarding their rights in connection with the coordination of social security schemes. 
In this respect, the Commission departments are pursuing a global information 
strategy aimed at citizens as a whole and at more specific target groups such as the 
legal professions or the social partners. This strategy hinges, in particular, on the 
publication of various guides explaining Community rules on social security, 
including those deriving from the case law of the Court. 1998 will be devoted to this 
campaign and will be marked by the launch of a quarterly news bulletin aimed at a 
very wide public throughout the Community, but also by the organisation of 
seminars in each Member State, in which members of all the professions involved in 
the application of the coordination rules will participate, the object being to trigger a 
debate on the difficulties connected with applying the rules on the coordination of 
14 Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of social security 
schemes to employed persons and their families moving within the Community, as updated by 
Council Regulation (EC) No 118/97 of 2 December 1996, OJ No L 28, 30 January 1997. 
15 Council Regulation (EC) No /98 of 29 June 1998. 
16 OJ No C 46, 20 February 1992. 
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social security schemes at national level. Finally, such a debate will make it possible 
to contribute to the discussions under way on reforming and simplifying the 
coordination rules, which will constitute an important step towards making 
Community rules more transparent to the citizen. 
One of the Panel's recommendations was to make it possible for computerised 
national social security cards to be read in any Member State. In the view of the 
Commission, while the technology required for their introduction by the social 
security bodies is available, such a large-scale introduction would come up against 
many administrative and organisational problems, such as standardisation of the 
information and data to be stored on the card; linguistic problems; the complexity of 
national and Community social security rules and the substantial differences 
existing in the structure of the relevant institutions in each Member State. In 
addition, efficient use of a card replacing certain "E" forms implies the existence 
between those institutions of a telematic infrastructure similar to that created by the 
banking sector prior to the massive introduction of bank cards. Modernisation 
projects on the telematic exchange of data in the social security field have made it 
possible to establish a few links for the telematic exchange of data on forms in the 
pensions sector. I lowever, setting up the projects has meant a shift in the objectives 
and resources of the relevant institutions of the Member States. The Commission, 
while recognising the difficulties and complexities of national situations, is studying 
the question and trying to propose solutions to the national authorities. 
Finally, in its Action Plan for Free Movement of Workers, the Commission indicates 
that it will foster cross-border cooperation by covering specific issues such as social 
security. It should also be noted that the proposal for the revision of 
Regulation (EEC) No 1612/68 makes a reference to cross-border workers in a 
provision of a general nature.17 
Attention should also be drawn to the two judgments delivered on 28 April 1998 in 
Decker and Kohll,]* in which the Court considered that the prior authorisation required 
by a national legislation as a precondition for reimbursing spectacles purchased and 
dental treatment carried out in another Member State was inconsistent with 
Community law and, in particular, with the principle of the free movement of goods 
(Articles 30 and 36 of the EC Treaty) and of the freedom to provide services 
(Articles 59 and 60 of the Treaty) in so far as such authorisation was not required for 
purchases or treatment within the Member Slate in question and in the absence of 
appropriate justification based on general interest. 
In its Action Plan for Free Movement of Workers, the Commission also indicates 
that, like the High-Level Panel, it is in favour of extending the right to family 
reunification to the following: 
17 Article 7a lays down that "Social, tax and other advantages enjoyed by virtue of residence in a Member 
State shall not be refused to non-resident workers who work in this State and can objectively be 
considered to be in a situation comparable to that of a resident worker." 
18 Cases C-120/95 and C-158/96. 
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- children over 21 years of age who are not dependent on their parents and relatives 
in the ascending line who are not dependent on their children; 
- unmarried partners of Community workers, provided that the legislation of the 
Member State in question treats the unmarried partner of a national worker as a 
spouse. 
The Commission drew up proposals to this cil cet as far back as 1989. Its proposal for 
the revision of Regulation (EliC) No 1612/68 and of Directive 68/360/EEC 
incorporates these provisions and extends the right of residence to all other family 
members who are dependent on the worker or are living under his roof in the country 
from which he comes. 
It should be added that this proposal also contains provisions aimed at reinforcing the 
legal status of the members of a worker's family in order to facilitate their social 
integration in the host Member State, particularly in cases where the marriage is 
dissolved. In this respect, the Panel's Report recommended granting a right of 
residence to a divorced spouse who is a third-country national. 
Chapter 7 of this review describes the steps taken to inform and train the appropriate 
national authorities. 
On 8 October 1997 the Commission adopted a proposal for a Council Directive on 
safeguarding the supplementary pension rights of employed and self-employed 
persons moving within the European Union.19 The High-Level Panel had presented 
a special report on this important question along with its main Report. This proposal 
covers the preservation and transferability of supplementary pension rights and the 
possibility for a worker seconded to another Member State to continue to pay 
contributions to a supplementary pension scheme in his Member State of origin. On 
4 June 1998 a political agreement was achieved in the Council on this proposal. 
4. TAX AND FINANCIAL STATUS 
In the field of taxation, the Commission is examining the Panel's recommendations 
together with the representatives of the national tax administrations and will propose 
initiatives as soon as possible, as stated in its Work Programme for 1998. 
In order to facilitate cross-border labour mobility, it makes provision, in its Action 
Plan for Free Movement of Workers, for fostering cross-border cooperation between 
the relevant administrations and social partners, particularly in the field of tax law.20 
In the light of the recommendations regarding vehicle-users who are penalised through 
double registration tax, the Commission has submitted to the Council a proposal for a 
Directive governing the tax treatment of private motor vehicles moved permanently to 
another Member State in connection with a transfer of residence or used temporarily in 
19 OJ No C 5,9 January 1998. 
20 See also footnote 17. 
a Member State other than that in which they are registered.21 This proposal was 
discussed in the plenary session of the European Parliament on 17 June 1998. It is 
based on the principle that a vehicle which has already been taxed in the country of 
origin should be exempt from registration tax. There is provision for a consultation 
procedure in cases where two national administrations dispute the place o( residence. 
The proposal also lays down that Member States must register vehicles of Community 
nationals with not a normal residence but a secondary residence in their territory. 
As regards systems for the declaration of financial movements above a certain 
threshold, the Commission continues to deal with the complaints which it receives 
within the context of the infringement procedure laid down in Article 169 of the 
EC Treaty and seeks appropriate solutions with the Member States concerned where 
the requirements connected with the declaration or the sanctions applicable appear 
excessive. 
5. CULTURAL RIGHTS 
The Amsterdam Treaty supplemented Article 128(4) of the EC Treaty (Article 151 of 
the consolidated version) by specifying that Community policies must take account of 
cultural aspects, particularly with a view to respecting and promoting the diversity of 
European cultures. Article 126 (Article 149 of the consolidated version) on education 
and youth has not, on the other hand, been amended (the Panel's Report suggested an 
amendment to this Article to make it possible to establish a Community system aimed 
at facilitating academic recognition of qualifications and periods of study). 
The three large-scale action programmes on education, training and youth (Socrates, 
Leonardo da Vinci and Youth for Europe), which were adopted for a five-year period 
ending in 1999, have continued to contribute to the development of a European 
educational area. In this connection, on 12 November 1997, the Commission adopted 
a communication entitled "Towards a Europe of knowledge",22 which focuses, inter 
alia, on measures to promote language skills and understanding of different cultures, 
as well as measures to encourage physical mobility, including an extension of mutual 
recognition arrangements to all areas concerned. In keeping with these guidelines, the 
Commission adopted proposals on 26 May 1998 for the implementation of a new 
generation of programme in the field of education (Socrates), professional training 
(Leonardo da Vinci) and youth, which will apply from 1 January 2000 until 
31 December 2004. These programmes include a large number of mobility measures 
targeted at different groups of persons according to the objectives sought. This new 
generation of programme should enable 1.2 million students, 200 000 teachers, 
400 000 young trainees and 660 000 young people under the youth programmes (i.e. a 
total of 2.5 million Europeans) to benefit from a programme to encourage mobility. 
These new programmes also provide for enhanced quality and accessibility by setting 
more specific objectives, more consistent measures, simplification of formalities and 
decentralisation. 
21 OJ No C 108, 7 April 1998. 
22 COM(97) 563 final, 12 November 1997. 
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In the field of vocational training and apprenticeship, the Commission drew up a 
proposal on 12 November 1997 for a Council Decision to promote European pathways 
for work-linked training, including apprenticeships.23 This project provides for the 
creation of a "EUROPASSPORT-Training" document at Community level with a 
view to making cross-border training periods more transparent and visible. A budget 
of ECU 7.3 million has been earmarked for the 1999-2004 period. 
In the youth sector, on 27 December 1996, the Commission transmitted to the Council 
the proposal for a European Parliament and Council Decision establishing the 
"European Voluntary Service" programme.24 This is aimed at organising a 
Community programme aimed at integrating young people into working life by 
allowing them to participate in measures of value to society. Since the relevant 
procedure is well under way, the proposal is expected to be adopted in the near future. 
The Panel's Report pointed out that a specific action should be developed aiming to 
take better into account the special situation of artists and others active in the field of 
culture. On this point, the first European Community framework programme in 
support of culture (2000-2004)25 mentions this question specifically and specifies that 
the Commission "will make a detailed inventory of the obstacles which impede artists 
and others active in the field of culture' free movement and transnational mobility". 
6. TlIK SPECIAL SITUATION OF THIRD-COUNTRY NATIONALS 
The Panel's recommendations on improving the situation of third-country family 
members of a citizen of the Union were taken into account in the proposal for a 
Council Act establishing the Convention on the rules of admission presented by the 
Commission on 30 July 1997.26 Article 25 of this proposal provides that members of 
the family of a Union citizen who has not used his or her right of free movement, 
benefit from the same family reunification rules as those established by Community 
law. In addition, persons falling within the scope of the Convention of 1951 on 
refugees and stateless persons would benefit from the rights attached to the situation 
of third-country nationals installed on a long-term basis, pursuant to Chapter VIII of 
this proposal for a Convention on admission. Reference should also be made to the 
new Chapter of the Treaty of Amsterdam on " Progressive establishment of an Area of 
Freedom, Security and Justice" which introduces into the EC Treaty a new Title IV 
(consolidated version) on "Visas, asylum, immigration and other policies related to 
free movement of persons" 
23 COM(97) 572 final, 12 November 1997. 
24 OJ No C 302, 3 October 1997. 
25 Com (98), 266 final of 6 May 1998, See also the Commission staff working paper SEC (98), 837 of 14 
May 1998 "Culture, the Cultural Industries and Employment" paragraph 2.1.3. 
26 Proposal for a Council Act establishing the Convention on rules for the admission of third-country 
nationals to the Member States, OJ No C 337, 7 November 1997. 
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In tandem with the Action Plan on Free Movement of Workers of November 1997, a 
proposal for an amendment to Regulation (EEC) No 1408/71 was presented by the 
Commission on 12 November 1997 with a view to allowing third-country nationals 
legally residing in a Member State to benefit from this instrument.27 
The Panel's Report also emphasises the need to clarify the situation of third-country 
nationals employed by a Community firm and temporarily seconded by that firm to 
another Member State in the context of a cross-border supply of services (Article 59 of 
the EC Treaty). In the autumn of 1997, the Commission departments informed and 
consulted the Member States and professional organisations involved at Community 
level on the Panel's recommendation that Community action be taken to reduce the 
obstacles encountered by employers, particularly in connection with visas and 
residence and work permits. The Commission departments are scrutinising the 
information and comments received with a view to taking them into account in 
drafting a possible proposal for a Directive. 
As regards the effects of external agreements signed by the Community on the 
situation of third-country nationals, reference may be made to the judgment delivered 
by the Court on 15 January 1998 in Ihihahenini, which applies the principle of 
non-discrimination to the granting of a disability allowance to the spouse of an 
Algerian worker on the ground that Article 39 of the EEC-Algeria Agreement has a 
direct effect.28 
7. PROTECTION OF THE RIGHTS OF INDIVIDUALS 
The Panel's Report emphasised the right of access to information, legal information, 
raising the awareness of the legal profession and improving the legal protection of 
persons encountering difficulties connected with free movement. 
firstly, the right of citizens of the Union to have access to information has been laid 
down by the Treaty of Amsterdam in the new Article 191a of the EC Treaty (Article 
255 of the consolidated version). This provision establishes the principle of the right 
of access to the documents of the European Parliament, Council and Commission in 
accordance with procedures to be determined following the entry into force of the 
Treaty. 
The efforts already made to inform and advise people under the "Citizens First" 
initiative will be developed further through the establishment of machinery for holding 
a dialogue with the citizens and with firms, as provided for by the Action Plan for the 
Single Market and presented to the Cardiff European Summit on 15 and 16 June 1998. 
The first phase of the "Citizens First" initiative covered the right to reside, work and 
study. It affected 75 million people in Europe and 969 000 consulted the call centre 
and Internet site direct. The second phase, which was launched in November 1997, 
deals with rights in connection with the purchase of goods and services, travel and 
27 OJN0C6, 10 January 1998. 
28 Case C-II3/97. 
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equal opportunities. In this context, information is also provided to citizens on the 
remedies at their disposal both within and outside the courts. 
As regards the objective of raising the awareness of those involved in the free 
movement of persons, the Karolus programme for the exchange of national officials 
has been extended until the end of 1999.24 This programme, which includes training 
and information measures, is currently the subject of a discussion as to whether its 
scope should be extended substantially in a subsequent period (Karolus 2000). 
The Commission recently launched the pilot phase of the Robert Schuman Project, the 
object of which is to develop a "Community reflex" among judges, public prosecutors 
and lawyers. To this end, the project supports training and information initiatives 
which are aimed at raising awareness of Community law among the legal professions. 
Similarly, the Jean Monnet Project continues to expand in the university context. In 
this connection, a substantial number of measures are aimed at including the study of 
Community law in the first two years of legal studies (this lacuna was highlighted in 
the Panel's Report). Finally, the (Jrotius programme for the training and exchange of 
legal practitioners has greatly expanded and contributed to improved legal 
cooperation, which automatically has repercussions on improving the legal protection 
of persons encountering problems connected with free movement. 
Where the legal protection of citizens is concerned, the High-Level Panel stated that 
it was concerned that the Euro-Jus network remained at an embryonic stage despite the 
very useful service it provided. It had since been decided to reinforce this network by 
allocating more funds to it and increasing the number of hours worked by Euro-Jus 
lawyers. The overall budget for the network amounts to ECU 552 000 for 1998 and 
there is provision for Euro-Jus lawyers to be available on average two days a week this 
year. Euro-Jus is a system for providing advice and assistance on an informal basis to 
persons confronted with a problem involving the interpretation or application of 
Community law. 
The question of a legal framework for the exercise of associations' activities at 
Community level is still pending before the Council on account of its links with the 
question of employee participation in the European Company, which was relaunched 
in the wake of the Davignon Report and has still not been resolved. 
The recommendation that all departments dealing directly with the free movement of 
persons be placed under the responsibility of one Member of the Commission will be 
raised by the Commission departments when the new Commission is formed in 1999. 
Where remedies not involving the courts are concerned, it should be pointed out that, 
at Community level, the Commission's new internal rules require departments to keep 
complainants regularly informed of any action taken, in response to their complaint, in 
order to initiate proceedings under Article 169 of the EC Treaty and that the matter 
should not be closed without giving complainants an opportunity to express their point 
29 Decision No 889/98/EC of the European Parliament and of the Council of 7 April 1998 amending 
Council Decision 92/481/EEC on the adoption of an action plan for the exchange between Member 
State administrations of national officials who are engaged in the implementation of Community 
legislation required to achieve the internal market, OJ No C 26, 28 April 1998. 
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of view. The European Ombudsman has recently had to intervene on several occasions 
in this connection. At national level, a network of officers has been established to 
mediate between national Ombudsmen and the European Ombudsman.10 
30 See point 5 of the 1996 annual report of the European Ombudsman, OJ No C 272, 8 September 1997. 
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ISSN 0254-1475 
COM(98) 403 final 
DOCUMENTS 
EN 01 05 06 
Catalogue number : CB-CO-98-433-EN-C 
ISBN 92-78-37899-2 
Office for Official Publications of the European Communities 
L-29X5 Luxembourg