ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (80)580
Vol.1980/0185

Disclaimer
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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)580 final
Brussels,15October1980
Proposalfora
COUNCILREGULATION (EEC)
amendingRegulation (EEC)No1408/71ontheapplication of,
socialsecurityschemestoemployedpersonsandtheirfamilies
movingwithintheCommunity andRegulation (EEC)No574/72
fixingtheprocedureforimplementing Regulation (EEC)No
1408/71
/
(presentedbytheComm^^^
COM(80)580 final

-1-
EXPLANATORY MEMORANDUM
1.Article 1-Amendments toReflation (SE'"QWO1408/71
1.AmendmenttoArticle22(2)
Undertheprovisions ofArticle22(l)(c),aworkerinsuredina
MemberStatemaybeauthorized togotoanotherMemberStatefor
treatment byreceiving thebenefitsinkindprovidedforbythe
legislation ofthelatterStateasthoughheisinsuredthere.
UnderthetermsofArticle22(2),secondsubparagraph ,thisautho­
rization,givenbythecompetentinstitution ,cannotberefusedif
therelevanttreatment cannotbeprovidedtothepersonconcerned
intheterritory oftheMemberStatewhereheresides ,.
Experience hasshownthattheapplication ofthisprovision ,which
isbasedonthefreedomofmovement ofworkerswithinthemeaning
ofArticle48oftheTreaty,couldgiverisetoabuse.Thus,the
competent institution ofaMemberStatemayhavetograntsuch
authorization toaworker whohasneverlefthiscountryoforigin
andwhowishestogotoanotherMemberStatewiththesoleaimof
receiving medicaltreatment therethatisnotprovidedfor-bythe
legislation oftheMemberStateinwhichheisinsured.
f
Ontheotherhand,thefinancial difficulties facedbythesickness
insurance schemesoftheMemberStatesjustifyanextension ofthe
discretionary poweroftheinstitution onwhosebehalfthe-benefits
areprovided inthatitshouldbefreetograntorrefuseauthorization .
Consequently ,theCommission proposes toreplacethesecondsubparagraph
ofArticle22(2)byaprovision stipulating thatthesaidauthorization
cannotberefusedwherethetreatment inquestionisprovidedforbythe
legislation oftheMemberStateonwhoseterritory thebeneficiary re­
sidesbutcannotbeprovided tohimintime.

-2-
2.Amendment toArtjole 9.V4"
UnderArticle 93ofRegulation 1408/71,provision existsfor1the
recognition ofsubrogation of,ordirectactionby,theinstitution
responsible forpayingbenefits toaninsuredperson.
Suchsubrogation ordirectactiontakesplacewheretheinstitution
responsible forpayingthosebenefits is,byvirtueofthelegislation
whichitadministers,eithersubrogated totherightswhichthe
beneficiary hasagainst athirdpartyliable,orindeedinvested with
directrightsagainstthatthirdparty.
Difficulties ariseinoperating thisprovision wherewaiveragreements
onreimbursement havebeenconcluded between MemberStatesunderthe
provisions ofeitherorbothArticles 36(3)or63(3)ofRegulation
1408/71.Insuchasituation the'institution oftheMemberStatewhich
hasactually provided thebenefits inrespectoftheinjurycausedby
thethirdpartywithinitsterritory,iswithout remedyagainsteither :
».
(a)thecompetent institution onwhosebehalfthebenefits wereprovided,
becauseoftheeffectofthewaiveragreement ,or
(b)thethirdpartyinitsterritory ,becauseoftheabsenceofa
contractual linkwiththeinsuredperson.
Inordertorectifythissituation itisbeingproposed thatArticle
93beamended bytheaddition ofathirdparagraph theeffectofwhich
wouldbetorecognise intheinstitution oftheplaceofstayorresidence
oftheMemberStatewherebenefits arebeingprovided inrespectofan
injurysustained withinitsterritory,eithertherighttosubrogation ,
ordirectactionagainstthethirdpartyliable,inaccordance withthe
legislation whichtheinstitution administers .

Soastoachieve this result paragraph (b)ofthedraft creates
thefiction ofdeeming thebeneficiary tobeinsured with the
institution oftheplace ofstay orofresidence andfurther that
such institution bethe debtor institution .
Lastly paragraph (c>ofthedraft preserves theapplication ofthe
general provisions embodied intheexisting paragraph (1)of
Article 93with regard tothose benefits ,reimbursement ofwhich
hasnotbeen waived byagreements concluded under Article 36 (3)
orArticle 63 (3). -

-4-
2.Article 2ofthe Proposal concerning anamendment toAnnex IV
toRegulation 1408 /71.
Ontheoccasion oftheamendment ofArticle 40ofRegulation
1408 /71byCouncil Regulation 2595 /77 (1)the existing paragraph
3ofthat Article was renumbered 4soastoallow for the
introduction ofanentirely newparagraph 3.Duetoanoversight ,
the consequential amendment tothe heading ofAnnex IV to
that Regulation wasnotthen also effected .Theopportunity is
now taken torectify that omission .
(1)O.J. No.L302of26.11.77 atp. 1,seeArticle 7(4).

-5-
3.Article 3(1)oftheProposal concerning anamendment toAnnex V,
'A,Belgium ofRegulation 1408 /71.
TheArrete Ro>al No.29amending the coordinated laws concerning
famit-y allowances forworkers haseffected changes inBelgian
legislation concerning family allowances .
'N .. ' ' ' ■
In cases where ,previously ,theperson concerned had toprovide
evidence ofaninsurance history asanemployed person ,henow hastoprove
that during the365days before the risk insured against materialised
(sickness ,invalidity ,retirement ,death ),hehadfulfilled during at
least 150days ,thequalifying conditions forfami lyallowances in
accordance withthe family allowances' scheme fcrworkers .
Thecondition ofemployment before therisk insured against materialised
hasthus been replaced bythat of"satisfying thequalifying conditions
for family allowances ". :
.' . • ' *
Thenewprovision naturally applies only toBelgian schemes .
Itisintended toallow forthetaking into account
oftheperiods ofinsurance and/oremployment provided forunder
Article 72and79(1)(a)ofRegulation 1408 /71aswell asperiods
during which aworker hasresided inaMember State where byvirtue
ofthelegislation ofthat State entitlement tofamily benefit is ;
subject only toaresidence condition ,forthepurpose ofapplying the
newprovisions ofBelgian legislation toaworker whohaspreviously '
been insured inthat State .

-6-
4.Article 3(2)oftheProposal concerning amendments toAnnexV.B.
Denmark,ofRegulation 1408/71.
(a)Article 3(2)(a)oftheDraftProposal .
Theconceptof"worker"inDenmarkhashithertobeendefinedin
accordance withthelawonaccidentinsurance .Inthelightof
Article 1(a)(ii)ofRegulation' 1408/71theDanishdefinition
isinthefollowing terms:"Anypersonwho,fromthefactof
pursuing anactivityasanemployedperson,issubjectto
legislation onaccidents atworkandoccupational diseases,shalI
beconsidered aworkerwithinthemeaningofArticle 1(s)(ii)
oftheRegulation ".
Duringthenegotiations onDenmark'saccessionitwasnot
considered possibleforthepurposeofeffecting thenecessary
technical amendments toRegulation 1408/71,simplytoadhere
tothesainedefinition asintheDanishlawonsupplementary
.pensions (theATP),becausetheATPschemeatthattimeonly
coveredabout80%ofworkers.Therefore thedefinition adopted
wasthatlaiddowninthelawonaccidentinsurance whichcovered
virtually allworkers.
WhentheATPLawwasamendedon1stSeptember 1977,thescopeofthe
definition waswidenedbyloweringtheagelimitfrom18to16.
Moreover,theformerexclusion frommembership affectingapprentices
'andpersonstreatedassuchwaslifted;theATPschemenowalsocovers
personsworkingunderacontractofapprenticeship inaccordance with
thelawonapprenticeships .Again,theminimumemployment condition
formembership intheschemewasloweredfrom15to10hoursaweek.

Adoptionofthedefinition .laiddownintheATPtawhasledtoa
clearerdemarcation oftheconceptof"worker"incontrast with
thatcontained inthelawagainstindustrial injuries whichalso
coversunpaidemployment /howeverbriefitsduration.ATPmembership
extendstowage-earners ,i.e.personsengagedingainfulemployment
intheservice-of anemployer..Theschemecoversnearlyallmanual
endnon-manual workers,civilservants andpersonstreatedassuch,
whichinall,accountfor90-95 %ofemployed persons.
Unlikethelawoninsurance againstindustrial injuries,theATP
Lawrequiresallworkerstobeindividually registered soastoensure
theaccurate recording ofthepaymentofpensioncontributions for
eachworker.ForthispurposetheCPRnumber Cdetcentralepersonregister
■; » •
civicregistration number),ofeachmemberisused.Thelawoninsurance
againstindustrial injuriesmerelyrequiresth^ttheemployertakeouta
collective insurance inrespectofhisemployees withouthavingtoname
themindividually ,whereastheATPregister showsclearlywhetherand
forhowlongapersonisorhasbeenemployed .
Inthelightofthesedevelopments inDanishlegislation ,itisproposed
thattheentryatparagraph 1ofAnnexVB.DenmarkofRegulation 1408/71
beamendedsothattheconceptof"worker"inthecaseofpersons v-
whowereworkinginDenmarkbefore1stSeptember,1977shouldbe •
definedinaccordance with .thelawoninsurance againstindustrial
injuries andforthosewhobecomeemployed onorafter1stSeptember 1977,
inaccordance withthelawonsupplementary pensions foremployed persons
(ATP).Thedraftseekstoreflectthischange.

-8-
(b)Article3(2)(b)ofthedraftProposal.
(i)ForthepurposeofhealthservicecoverageinDenmark,insured
personsaredividedintotwoclassesaccordingtowagebrackets.
Themaindifference betweenthetwotypesofcoverageisthat
personsinclass1areentitledtofreemedicalcaresolely
fromalocaldoctoroftheirchoicewhilethoseinclass2receive
apartialrefundoftheirmedicalexpenses andarefreeto
choosetheirowndoctor.
Theclassification ofinsuredpersonsinpublichealthservice
"classes"accordingtowagebracketsceasedon1stApril1976
withtheamendmentoftheLawonthePublicHealthService.It'
wasreplacedby'afreechoiceforindividuals betweenclasses 1~
and2.Thechoiceisbindingforoneyearatatime.
Theamendmentgiveseffecttothischange.
(ii)Asfrom1stApril,1976thetitleofthelawonwidows'pensions'
andallowances hasbeenchangedto"Lawonwidows'pension "
(lovompensiontilenkerM.fl.).Thereasonfortheamendment
isthattheprovisions regardingallowances towidowswhichwere
formerlylaiddowninthislawwererepealedwhileatthesame
timethenewlegislation onsocialassistance enteredintoforce.
Theamendmentsreflectthischange.
(c)Article3(2)(c)oftheDraftProposal.
Difficulties haveariseninconnection withtheassessment of
Danishwidows'pensionsandDanishold-ageinvalidity pensionsin
circumstances wheretherehasbeeninsurance bothinDenmarkand
inanotherMemberState.

Theproblems whicharisefromtheparticular featuresofDanishlegislation
areasfollows :
<i)inrespectofwidow'spension,wherethewidow'speriod -ofresidence
inDenmarkhasbeenlongerthanthatofherdeceased husband,
Danishlegislation providesthatthewidow'sownperiodofresidence
,shouldformthebasisforcalculating thepension,whereas,for
example,underGermanlegislation suchpensionmustbecalculated
onthebasisofthedeceased husband'sownperiodofinsurance ;
(ii)inrespectofold-ageorinvalidity pensions,wherethedeceased
spouse'speriodofresidence inDenmarkhasbeenlongerthanthat
oftheclaimait,Danishlegislation provides thatthedeceased
spouse'speriodofresidence shouldserveasthebasisforcalculating ;
thepension,whereas,forexample again,Germanlegislation
provides thatthebasisshouldbetheclainrant'sownperiodof
insurance . '
Unless3formulaisadoptedwhichallowsforaggregation inrespectof .
suchperiods,difficulties willarisebecause whenapplyingtheassessment
provisions contained inArticle46ofRegulation 1408/7,1,anyaggregation
woulddependonwhollyarbitrarycriteria,e/g.whetherthedeceased\
spouse'speriodofresidence ortheclaimants'own periodofresidence
shouldbetakenintoaccountasthebasisforcalculating aDanishpension.^
SoastoavoidConflicts ofthisnatureaprovision hasbeendrafted,the
practical effectofwhichwouldbetorecognise thatnational pensions should
becalculated inaccordance withnational law,asenvisaged inArticle46(1)
ofRegulation 1408/71.ThiswouLdmeaninthecaseofDenmark,thatan
amountwouldbecaIculatedonthebasisofperiodscompleted,perhaps,bytwo
•different persons,whereasinrespectofthetheoretical andpro-rataassessments
referredtoinArticle46(2),bothDenmarkand,forinstance theFederal
RepublicofGermany,wouldberequiredtoaggregate .theperiodsofresidence
andinsurance completed respectively bythedeceased husbandwheretheclaim =-
wasforawidow'spensionandbytheinsured womanherselfwheretheolaim
wasforold-ageorinvalidity pension.Onlythehigherofthetwoassessments '
calcutat-JunderArticles 46(1)and46(2)respectively wouldoepaid.

–10«"
ofRc^ulation1403/71 -
Ps.ra,°"raoh 5sintended ,"toregulatecaseswhereGermansicknessinsuranceinstitutions arerequiredtorepayamongthemselves ,inwholeorinpart,
exceptional charges *Inthisrespect,theFederalAssociation oiRegionalSickness FundsandtheFederalFundforMiners'Insurance havetogether
decidedtomodifythemethodsbywhichsuchrepaymentisto"beeffected .Itresultsfromsuchmodification thatthephrase"includingretired
oersons"appearing attheendofthe-paragraph should ,bereplaced by
thefollcx/ing,"excluding retiredpersons",
Theamendment proposed doesnotaffecttherightsofinsuredpersons ;itonlyconcernsnationalmeasuresforrepayment betweensicknessin­
suranceinstitutions .

I
-11-
6.Article3(3)(c)oftheProposalconcerning theadditionparagraphn
atAnnexV.C,GermanyofRegulation 1408/71.
Theentryintoforceon1stJuly,1977oftheLawcurbingthecostofhealth
insurance (Krankenversi cherungs-Kbstendampfungsgesetz ),involvedchangesto
thesicknessinsurance schemeforpensioners .Article165(1)(3)Ca)ofthe
Reichsversicherungsordnung providesthatonlywhereapersonwascompulsorily
insuredagainstsicknesswithastatutory schemeforatleasthalfthetime
betweenfirsttakingupgainfulemployment andapplyingforapension,will
hebeautomatically coveredbythesicknessinsurance schemeforpensioners
withouthavingtopaycontributions .
Thesuggested amendmentwouldenablethecompetent Germaninstitution totake
account,forthepurposeofsatisfying thesaidGermanLaw,ofperiodsof
insuranceorresidenceaccomplished underthelegislation ofanyotherMember
Stateandduringwhichthepersonconcerned hadanentitlement tosickness
benefitsinkindintheeventofillness.
7.Article3(4)oftheProposalconcerning anamendments toAnnexV.DFrance
ofRegulation 1408/71. .
Thelifeannuity(secoursviager),isthereversionary pensionoftheallowance
forelderlyemployedpersons.'Itsawardmustthereforeconformtothesame
conditions asthosewhichareappliedatparagraph 1ofAnnexVDFrancein
respectoftheawardoftheallowancetoelderlyemployedpersons.Rentention
oftherequirement ofresidenceinFranceatthetimeofsubmission ofthe
claimforthelifeannuitywouldnot,however,bejustifiedinthecaseof
thewidowofarecipientofthisallowance whowasresidinginaMemberState
otherthanFranceatthetimeoftherecipient'sdeath.
\
\
S
I'-

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8.Article 3(5)(a)and (b)ofthe Proposal concerning amendments to
paragraphs 5and 8ofAnnex V. I,United Kingdom ofRegulation 1408 /71.
(1)Paragraph 5.Asaresult ofamendments tothe legislations ofGreat Britain
andNorthern Ireland concerning conditions forentitlement toattendance
allowance ,thestringent conditions which needed tobesatisfied bypersons
who were not ofBritish nationality orwhose place ofbirth was not in
theUnited Kingdom ,have been removed .With effect from 14th January ,1980
the residence andpresence conditions tobesatisfied .for this benefit are
the same forall,irrespective ofnationality and/orplace ofbirth .
Paragraph 5(a)ofAnnex V.IofRegulation 1408 /71istherefore nowotiose
(2)Paragraph 8.provides that wherever required byUnited Kingdom legislation ,
forthepurposes ofdetermining entitlement tobenefits ,nationals ofany
Member Stat'e born inathird State are tobeconsidered nationals of
theUnited Kingdom born inathird State .Before 14th January ,1980 ,
attendance allowance wastheonly remaining benefit fortheaward of
which theconditions differed according toaperson 'snationality and/or
place ofbirth .Inview ofthis /theprovisions ofparagraph 8are now
also superfluous .
9.Article 3(5)(c)oftheProposal concerning anamendment totherenumbered
paragraph 11,Annex V.I,United "Kingdom ofRegulation 1408 /71.
Asfrom 2ndJuly ,1973 ,theNon-Contributory Social Insurance Benefit and
Unemployment Insurance Ordinance (Gibraltar ),referred tointhe renumbered
paragraph 11,wasamended torefer to"ordinary residence "inGibraltar
asopposed to"domicile ".
Theamendment proposed seeks only toreflect that change .

-13-:t
i.•
10.Article A(1)(a)and (4)(a)oftheProposal concerning amendments to |j(;'
.*Articles 17(2)and60 (2)respectively ofRegulation 574/72. .
Articles 17(2)and60 (2)ofRegulation 574/72are invirtually identical
terms anddeal respectively with benefits inkind forsickness /maternity and
accidents atwork /occupational diseases ..
When aworker isemployed andinsured inoneMember State andresides in .'•>
another where heseeks toobtain anyofthesaid benefits inkind ,"hemust .■[
submit acertified statement tothe institution ofhisplace ofresidence
certifying that he(and,inthecase ofbenefits inkind forsickness /maternity ^
themembers ofhisfamily ),areentitled tosuch benefits .This certified - !I■'
* ,
.statement isfurnished bythecompetent institution oftheState where the
worker isemployed and insured . \
Thegeneral rule established bythesaid Articles 17(2)and60 (2)isthat
•the certified statement shall remain valid until the institution ofthe place .
ofresidence isnotified ofitscancellation .Inthe case ofFrance ,however , •
.theparagraphs atpresent provide that such acertified ,statement issued
byaFrench institution shall remain valid for aperiod ofthree montKs only ,
following thedate o'f'its issue andthat itmust berenewed every three -
months .France hasindicated herwillingness toagree tothecertificates having
avalidity ofsixmonths with aconsequential renewal period ofsixmonths .
• Theamendments proposed seek toreflect this change.' ,\
11.Article 4(1)(b)and (4)(b)oftheProposal concerning amendments to ,
Articles 17(7)and60*(6)respectively ofRegulation 574/72. ':
Articles 19(5)and29 (2)oftheformer Regulation No.3provided that except
incases ofextreme urgency ,theaward ofprostheses ,major appliances and 1
other substantial benefits inkind could not beprovided int-heevent of
residence orstay byaworker ormember ofhis .family inaMember State
other than thecompetent State except with prior authorisation ofthe ~
competent institution onwhose behalf ,those benefits were awarded . j

Decision NOi45oftheAdministrative Commission onSocialSecurityfor
MigrantWorkers(1)Listedthosesubstantial benefitstowhich
thecompetentinstitution couldrefersoasauthorise aworkertoproceed
totheterritoryofanotherMemberStateforthepurposeoftherereceiving
thecareappropriate tohisstateofhealth.
Theprocedureforpriorauthorisation wasrevokedupontheadoptionof
Regulations 1408/71and574/72.Infact/Articles 17(7)and60(6)of
Regulation 574/72providethattheinstitution oftheplaceofresidence
mustinformthecompetentinstitution ofeverydecisionrelatingtothe
awardofthosebenefits.Thelatterinstitution has15daysinwhichto
raiseanyobjection andtostatethereasonsonwhichsuchobjectionis
based,takingaccountespecially ofthemedicalgroundsfortheawardof
suchabenefit.
TheseArticlesaretobeappliedbyanalogytoallcasesconcerning the
provision ofbenefitsinkindintheeventofstayorresidenceinaMember
Stateother,thanthecompetentState.
Decision No.93ofthesaidAdministrative Commission (2)whichreplaced
Decision No.45hasadifferentlegalbasis,namelyArticle24ofRegula­
tion1408/71whichconcernsthespecificcaseofexportofsicknessbenefits
whichcontinuetobeprovidedbythecompetentinstitution ofaMemberState
aftertheworkerhasbecomeaffiliated totheinstitution ofanotherMember
State.
«
Soastoavoidconfusion betweentwodifferentsituations theAdministrative
CommissionisoftheviewthatDecision No.93shouldonlybeappliedin
respectofthislastcase.Inallothereventualities itwasfeltthat
theDecisionshouldnotbeusedbutbereplacedbyalumpsumamountfixed
bytheAdministrative Commission andreviewedperiodically .
(1)O.J.1904No.14/p.197.
(2)O.J.C105/14.9.1974,p.1.
Ν

-15-
These amendments proposed will correspond better with the Limitation onthe
power ofappreciation bythe competent institution such asresults from the -
present regulations ,especially after the decision ofthe Court ofJustice in
thePierik Case (1).They also meet aneed forsimplification .Infact
inthe light ofthe rapid development inmedical techniques ,the adaptation
ofthe list would' have required lengthy work which would have been particularly
delicate because ofthe important differences which exist between Member States *
national policies concerning health .
12.Article 4(2)and (3)ofthe Proposal concerning amendments toArticles 40
and 44 (1?ofRegulation 574/72.
Thereason for theamendments tothese provisions isthe same asthat
foramending Annex IVtoRegulation 1408 /?1.Seeparagraph 2of
this Memorandum .*
(1)Reports ofcases before theCourt 1979 -5atpage 1977 .

'-16-
13.Article 5oftheProposal concerning amendments toAnnex 2 !
ofRegulation 574/72. |
1.Draft amendment toSection BI#Denmark with the exception
ofGreenland : *
(a)Atpoint ,2,Invalidity ,^) rehabi litation,this matter falls
within thejurisdiction ofthe Communes since theentry into
force ofthe Law onSocial Assistance .
(b)Atpoint 5,Death grants ,the removal ofthe reference toinsurance
foraccidents atwork andoccupational diseases isexplained by
the fact that death grants are not .awarded under the lawon
insurance against industrial injuries which superseded the Law
onaccident insurance . .' • . I
' . Î
2.Draft amendment toSection B,II,Greenland : • j
(a)Atpoint _1,s.ickness andmaternity benefits inkind ,theresponsibi - ;
lity for this benefit has now passed tothe Health Service Commission
inGreenland . j
(b)atpoint„4 ,Family benefits (family allowances ),theresponsibility'
forthese benefits has nowpassed to .theRegional Employment and
Socia IAffairsOffice .
3."Article 13 (2)Cd)ofRegulation 1408 /71wasamended byArticle 1(1)
ofRegulation 1517 /79(1 ),soastoallow conscientious objectors who
perform acivilian service tobenefit from the said Regulation 1408 /71
inthe same way aspersons whoperform amilitary service .
The suggested amendment toAnnex 2isthe -consequence ofthat amendment
toArticle 13 (2)(d)and isintended toidentify the competent institu -
.tion within the Federal Republic ofGermany ,forthe purpose of
sickness insurance ,inrespect ofmembers ofthe family ofthe persoii
performing acivilian service .
(1)O.J. No.L185of21.7.1979 .page 1.

-17-
14-Article 6oftheProposal concerning amendments toAnnex 3
ofRegulation 574/72.
1.Draft amendments toSection B.Denmark ,B.Greenland
at I1and II 1.
Both amendments reflect internal changes inDanish administration
concerning thedesignation ofinstitutions when the place ofstay
orresidence isGreenland .
2.Draft amendment toSection IUnited Kingdom .
Themodification which is'being proposed here ispurely formal and
results from achange innomenclature ofpart oftheUnited Kingdom 's
competent institution .
15-Article 7ofthe Proposal concerning anamendment toAnnex 9
ofRegulation 574/72.
Annex 9of .Regulation 574/72sets out the social security schemes tobe
taken into account forthepurpose ofcalculating theaverage annual cost
ofbenefits inkind when dealing with therefund ofsuch benefits under
Art icles94(3)(a)and95(3)(a )ofthesaid Regulation .
Inherpresent entry atAnnex 9,Denmark recites ,.inter alia ,the lawon
hospital services and the lawonrehabilitation .The law onrehabilitation
inDenmark hasbeen repealed andthecorresponding provisions have been
laid down inthe lawonsocial assistance which entered into force on
1April 1976 .Thepresent amendment isintended toreflect that change .

-18-
16.Article 8(1), (2), (3), (4)and (5)(a)oftheProposal concerning
common amendments toAnnex 10ofRegulation 574/72inrespect of
Sections B.Denmark ,C.Germany ,E.Ireland ,H.Netherlands and
I.United Kingdom .
Inorder tounderstand thepurpose oftheproposed amendments totheabove
mentioned Sections inAnnex 10,itisnecessary toexplain the reasons for
aprevious set ofamendments toRegulation Nos .1408 /71and 574/72.
(i)Regulation 1517 /79effected amendments toArticle 17ofRegulation 1408 /71
and Article 11ofRegulation 574/72.
Theamendment toArticle 17allowed fordesignated authorities of
Member States ,bycommon agreement and inthe interest ofcertain
workers orcategories ofworkers ,tomake exceptions totheprovisions
inthat Regulation which deal with thedetermination ofthe legislation
applicable . > . .
Article 11 (1XofRegulation 574/72was also amended soastotake account
ofthe said amendment toArticle 17and tomake provision forthe formali­
ties which needed tobeconcluded where agreements ofthetype described :
had been' reached between designated authorities.'
Cii)Article 14(1)(c>ofRegulation 1408 /71makes provision fordetermining
the legislation applicable ,broadly ,incircumstances where either
the worker isemployed intwo ormore Member States and resides ^inone of
them orwhere heworks intwoormore Member State a,nd isresident innone
ofthem .Where incompliance with this provision the legislation ofone
Member State isdetermined asbeing applicable inrespect oftheworker ,
thenewArticle 12a .ofRegulation 574/72which wasadopted byRegula­
tion 1517 /79,isintended toimprove thematerial conditions inwhich
aworker may bemade sosubject .Article 12a isalso intended to
facilitate the collection ofcontributions and asaconsequence toassure
abetter protection oftheworker when heinvokes his right tobenefit .
To'achieve this ,Article 12a confers functions oninstitutions which are
designated bythecompetent authorities ofMember States .
*

-rt-
Article A(10)ofRegulation 574/72provides that theinstitutions designated
bythecompetent authorities inpursuance ofArticles 11 (1)and 12a ofthat
Regulation are tobelisted inAnnex 10.As,aresult amendments are now
being proposed tothat Annex sothat theauthorities designated for
thepurposes ofthesaid Articles inDenmark ,theFederal Republic of
Germany ,Ireland ,theNetherlands andtheUnited Kingdom may beidentified .
17.Article 8(5)(b)oftheProposal concerning anamendment toAnnex 10.
I.United Kingdom . , N
Thereason fortheamendment suggested here isthesame asthat described
atparagraph 14 (2)ofthis Memorandum .

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Proposal for aCouncil Regulation amending Regulation (EEC )No1408 /71
ontheapplication ofsocial security schemes toemployed persons and
their families moving within theCommunity andRegulation (EEC )No574/72
fixing theprocedure for implementing Regulation <EEC )No1408 /71
TIBSCOLETGILOPTHE'EUROPEAN <X)IMtWITIES ,
Having regard totheTreaty establishing theEuropean Economic Community >
and inparticular Article 51 "thereof ,
Having regard toCouncil Regulation (EEC )No.1408 /71of14 June 1971
ontheapplication ofsocial security schemes toemployed persons and
their families moving within theCommunity (1),aslast amended byRegulation
(EEC )No.1517 /79(2),and inparticular Article 97thereof ,
Having regard toCouncil Regulation (EEC )No.574/72of21 March "1972
fixing theprocedure for implementing Regulation (EEC )No.1408 /71onthe
application ofsocial security schemes toemployed persons and their
families moving within theCommunity (3),aslast amended byRegulation
(EEC )No.2615 /79(4),and inparticular Article 121thereof ,
Having regard totheproposal from theCommission (5),drawn upafter
consulting theAdministrative Commission onSocial Security forMigrant
Workers ,
Having regard totheopinion ofthe European Parliament 06),
Having regard totheopinion ofthe Economic andSocial Committee (7),
(1)-0.J. No.L149,5.7.1971 ,p.2.
(2)O.J. No.L185,21.7.1979 ,p.-1 .
(3)O.J. No.L74,27.3.1972 ,p. 1.
(4)O.J. No.L301,28.11.1979 ,p„5.
(5)O.J .No.
(6)O.J. No.
(7)O.J. No.

Uhcrcas theexperience gained from implementing Regulation (EEC)NOS.*1408/71
and .(EEC)574/72hasrevealed theneed tomake some improvements tothose
Regulations ;whereas ,consequently ,thediscretionary power ofon 'institution
ofaMember State should beextended ingranting orrefusing authorization to
aworker going toanother Member State toreceive appropriate medical treat­
ment ; .
Whereas ,aninstitution oftheplace ofstay orresidence inoneMember State
which hasprovided benefits inkind inrespect ofaninjury occurring within .
that State onbehalf ofacompetent institution inanother Member State should
have aright tosubrogation ordirect action ,provided forunder itsownlegis­
lation , against thethird party liable forthat injury notwith­
standing theexistence of"awaiver agreement onreimbursement between thetwo
States ;
Whereas changes inBelgian law have made itnecessary toamend
/
Annex VtoRegulation (EEC).No.1408 /71soastofacilitate theaward of
family allowances bythat State ;
Whereas changes inDanish Lawmake \itnecessary toamend existing
entries inAnnex V;
Whereas itisnecessary toprovide inthe said Annex Varule ofcoordination
where there have been periods ofresidence ,orasthecase may beinsurance ,
completed inboth Denmark andanother Member State ;
Whereas itisnecessary tomake provision inthe said Annex Venabling
j
German institutions both tofacilitate accounting procedures between themselves
andalso totake account ofperiods completed inother Member States during
which entitlement tosickness benefit inkind existed ,soastoensure that
pensioners are insured against sickness within the Federal Republic of
Germany ;
Whereas itisnecessary toamend Annex Vsoastomake provision for inclusion
ofthe life annuities forelderly persons provided under French law;

-η -
Whereas thesaid Annex V"should reflect those changes
which have occurred inUnited Kingdom law concerning the
abolition ofthe conditions which needed tobesatisfied with regard
tonationality andplace ofbirth ;
Whereas itisnecessary tosimplify theprocedure for receipt of
substantial benefits inkind where the worker isresident inaMember
State other than the competent State ;
Whereas itisnecessary toreflect aseries ofamendments which are
consequential upon theadoption ofRegulation (EEC )No.1517 /79;
Whereas theopportunity should betaken tocorrect certain cross - *
references inboth Regulation (EEC )No.1408 /71andRegulation (EEC )
No.574/72;
Whereas itisnecessary tomake aseries ofamendments •tothe
Annexes ofRegulation (EEC )No.574/72which arenecessary asaresult ofchanges
indescription ornomenclature adopted byDenmark andtheUnited Kingdom ;
HAS ADOPTED THIS REGULATION :

ARTICLE 1
TheArticles ofRegulation (EEC)NO1408/71are amended asfollows :
!•Thesecond subparagraph ofArticle 22(2 ),isreplaced bythefollowing :
"Theauthorization required under paragraph l(c)cannot "berefused ifthe
treatment incfuestion isamong the benefits provided for "bythelegislation
oftheMember State onwhose territory theperson concerned resides and if
hecannot begiven such treatment intime ,taking account ofhis state of
health ."
2.Thefollowing isadded after Article 93(2 ):
"3.Where /inaccordance with theprovisions ofArticle 36 (3)and/or
Article 63 (3) two ormore Member States or
the competent authorities ofthose States have concluded an
agreement towaive reimbursement between institutions under their
jurisdiction ,anyrights arising against third-party liable
forinjury shall beregulated asfollows : '
(a)where theinstitution oftheMember State ofstay orresidence awards
benefits toaperson inrespect ofaninjury which wassustained
within itsterritory ,that institution ,inaccordance with the
legislation which itadministers ,shall exercise theright to
subrogation ordirect action against thethird party liable toprovide
compensation fortheinjury ;
(b)forthepurpose ofimplementing (a).above ,
(i)theperson receiving benefits shall bedeemed tobeinsured
with theinstitution oftheplace ofstay orresidence ,and
(ii)that institution shall bedeemed tobethedebtor institution .
(c)Paragraphs 1and2 shall remain applicable inrespect
ofanybenefits notcovered bythewaiver agreement referred toin
this paragraph ".

-<ry-
ARTICLE 2
AnnexIVtoRegulation iEEC)No»1408/71-jsamendedasfollows
IntheheadingofAnnexIV,-"(Article40(3)oftheRegulation)",
isreplaced by"(Article40(4)oftheRegulation)".

ARTICLE 3
Annex VtoRegulation (EEC )No.1408 /71 is amended asfollows :
1.Insection A,Belgium ,thefollowing paragraph is added after
paragraph 4:
"5.Forthepurposes oftheapplication ofArticles 72and 79 (1)(a)
oftheRegulation ,account shall betaken of
(i) periods ofemployment and/orinsurance completed under
the legislation ofanother Member State ,and i
(ii)residence inanother Member State where residence conditions
must besatisfied under the legislation ofthat State ,incases
i .... - ' - ■
where entitlement under Belgian legislation issubject tothe
condition that for aspecified prior period thequalifying
conditions forfamily allowances under the scheme .forworkers
' ' , | • • ' •
must have been satisfied ". .V ,
. ''
2.Section B,Denmark /shal Ibeamended asfollows :
(a)Paragraph 1shall bereplaced bythefollowing :
"1.Anyperson who,from thefact ofpursuing .anactivity asan
employed person ,
(a)issubject tolegislation' onaccidents at.work and
occupational diseases fortheperiod prior to1September
1977 ,or*
(b)iscovered bythelawonsupplementary pensions foremployed
persons (ATP )for aperiod commencing onorafter
' 1September 1977 ,
shall beconsidered asaworker within themeaning ofArticle 1
(a)(ii)oftheRegulation ".-

(b)Paragraphs 4and 5shall be .replaced bythefollowing
"4.Workers ,applicants forpensions andpensioners with members
oftheir family referred toinArticles 19,22 (1)and (3),
25 (1)and (3),26(1),28 <a>>29and 31ofthe Regulation ,
resident'or staying inDenmark ,shall beentitled tobenefits
inkind onthe same terms asthose laid down byDanish legislation
•forpersons who,under the lawonthe Public Health Servi ce,belong
toclass 1.
5.Article 1(1)No.2oftheLaw onold agepensions ,Article 1(1)
No.2ofthe Lawoninvalidity pensions andArticle 2(1)No.2
oftheLawonwidows'pensions,are notapplicable inrespect of
workers ortheir survivors whose residence isintheterritory of
aMember State other than Denmark ."
(c)The following isadded after paragraph 11:
"12.Where ,byvirtue ofDanish legislation,the Danish pension is
calculated onthebasis ofperiods ofresidence completed bya
person other than the .person whocompleted those periods of
residence which aretaken into account byone ormore other
Member States forthepurpose ofapplying theprovisions ofTitle
III,Chapter 3oftheRegulation ,the Danish theoretical amount
andpro-rata pension amount ,calculated inaccordance with Article
46(2)oftheRegulation^shall bebased upon theperiods of
residence and 'insurance completed bythe latter person ".

3.InSection C,Germany :
(a)Inparagraph 5»"thewords "including retired persons "are replaced
bythewords "excluding retired persons ".
(b)Thefollowing isadded after paragraph 10:
"11.For thepurpose ofthe application ofGerman legislation on ■
compulsory insurance ofpensioners inrespect ofsickness
insurance provided forinArticle 165(1 )(3)(a)oftheLaw
onsocial insurance (R.V.O. ),periods ofinsurance or
residence completed under thelegislation ofanyother Member
State andduring which theperson concerned was entitled to
benefits inkind inthe event ofsickness ,shall betaken into
account ,tothe extent necessary ,asperiods ofinsurance com­
pleted under German legislation insofar asthey donot ovej>-
lapwith periods ofinsurance completed under that legislation ".\

InSection D,France ,;the ,following isadded after paragraph 1(c):
"(d)Thepreceding provisions shall apply byanalogy inrespect
ofthe award ofalife annuity (secours viager ).The condition
ofresidence inFrench territory atthe time ofthe claim provided
for in '• .(a)ofthis paragraph shall not beinvoked ,
however ,against thewidow ofarecipient ofanallowance for
elderly persons whowasresiding with that recipient intheterritory
ofanother Member State when hedied ".
InSection I.United Kingdom : .
(
(a)Paragraph 5 isreplaced bythefollowing :
"5.Anyworker who issubject toUnited Kingdom legislation in
accordance with Title IIoftheRegulation shall betreated
for thepurpose ofentitlement toattendance allowance asif
hehad been normally resident within theUnited Kingdom and
hadbeen there during anyperiod of'-xuirance oremployment
which hemayhave completed within theterr-:*ory orunder
thelegislation ofanother Member State ".
(b)Paragraph 8is deleted andtheensuing paragraphs renumbered
accordingly .
(c)1>-iv.renumbered paragraph 11/ . "domiciled "isreplaced
by""-'.-.arily resident ".! • ,
\
■■\
,\
-\
x
"V­

.-tf--'-
.ARTICLE4
TheArticles'ofRegulation (EEC)No.574/72areamendedasfollows:,
1.(a)InArticle17(2),inbothplaceswhereitoccurs, "three"
isreplacedby"six". '
<b)InArticle17(7)thefirstsentenceis"replacedbythefollowing
"Theinstitution oftheplaceofresidenceshallnotifythecompetent
institution inadvanceofeverydecisionrelatingtothegranting
ofbenefitsinkindwheretheamounttobereimbursed exceedsalump
sumwhichisfixedandperiodically reviewedbytheAdministrative
Commission".
2.InArticle40,"Article40(3)oftheRegulation".isreplacedby
"Article40(4)oftheRegulation"..
3.InArticle44(1), '. •"Article40(3)oftheRegulation"
isreplaced by,,"Article40(4)oftheRegulation".
4.(a)In.Article60(2),inbothplaceswhereitoccurs,"three"
isreplacedby"six".
(b)Ir\Article60(6),thefirstsentence .isreplacedbythe
following:
"Theinstitution oftheplaceofresidenceshallnotifythecompetent
institution inadvanceofeverydecisionrelatingtothegrantingof
benefitsinkindwheretheamounttobereimbursed exceedsalumpsum
whichisfixedandperiodically reviewedbytheAdministrative t
Commission". '

-Jo-
ARTICLE 5
Annex2toRegulation (EEC)No.574/72isamendedasfollows:
1.inSection B.'Denmark,Parti.DenmarkwiththeexceptionofGreenland :
(a)"Thecompetentrehabilitation centre"intherighthandcolumnof
paragraph2(b)is"replapedby
"Thesocialcommission ofthecommuneinwhichthebeneficiary
resides.InthecommunesofKdbenhavn,Odense,AalborgandArhus:
'Magistraten'(thecommunaladministration)",
(b)Paragraph 5isreplacedbythefollowing :
"5.Deathgrants:Thesocialcommissionofthecommuneinwhich
thebeneficiary resides.Inthecommunesof
'Kdbenhavn,Odense-A'alborg_and Arhus:'Magistraten'
(thecommunaladministration ).
2.InSection B,Denmark,PartII-Greenland :
(a)Intherighthandcolumnofpoint1,"Landslaegen (Regional
PublicHealthOfficeinGreenland),Godthab"-isreplaced-
by Bestyrelsen forsundhedsvaesenet iGTénland (Health
ServiceCommission inGreenland),Godthab;
(b)Intherighthandcolumnofpoint4,
"Thecompetent •kaemner *(administrator ofCommunalFunds)"
isreplaced by"Arbejds-ogsocialdirektoratet ,(Regional
Employment andSocialAffairsOffice),Godthab".
3.InSection C,Germany,.inthelefthandcolumnofparagraph1(c),
"orforcivilianservice"isinsertedafter"armedforces".

-fr-
ARTICLE 6
Annex3toRegulation (EEC)No.574/72is.•amendedasfollows:
1.InSectionB,Denmark,B,Greenland :
(a)IntherighthandcolumnofI1(institutions oftheplaceof:
\residence),,
"Thecompetent communaladministration ("Kaemner"-administrator
ofCommunalFinds)"-isreplacedby,
"Bestyrelsen forsundhedsvaes enetiGrønland (HealthService •
,Commission inGreenland ),Godthåb"
(b)IntherighthandcolumnofII1,(institutions oftheplaceof
stay),
"Thecompetent cpmmunaladministration ('Kaemner'-administrator of
CommunalFinds)",isreplacedby;-
"Bestyrelsen forsundhedsvaesenet iGrtfnland (HealthService
Commission inGreenland),Godthab."
2..InSectionI,UnitedKingdom,paragraph 2,intheentryoppositethe
words"GreatBritain,!'forthewords"OverseasGroup"isreplaced
by"OverseasBranch".

-M -
ARTICLE 7
Theentry atAnnex 9,Section B,Denmark ofRegulation (EEC)No.574/72
'isreplaced by thefollowing :
"Theaverage annual cost ofbenefits inkind shall becalculated bytaking
into account theschemes setupbytheLawonthePublic Health Service ,
theLawonhospital services and,inrespect ofthecost ofrehabilitation
the Law onsocial assistance ".

~ói '
ARTICLE 8
Annex 10ofRegulation (EEC)No.574/72 is amended asfollows :
1.(a)InSection B,,Denmark ,1Denmark with theexception of
.Greenland ,"Article 12a,"isinserted inparagraph 1after
"the reference "Article v11(1)".
ν ·
(b)InSection B,IIGreenland ,inthe right hand column of ."
paragraph 2,"Thecompetent •Kaemner *(-administrator of
Communal Funds )"isreplaced by"Thecompetent communal
administration ".
2.InSection Germany ,paragraph 2,
"Forthepurposes ofapplying Article 14(1)(a)(i)oftheRegulation
inconjunction with Article 11 (1)ofthe .Implementing Regulation"'
isreplaced by ,
"Forthepurposes ofapplying Article 14(1)(a)(i)andArticle 17
oftheRegulation inconjunction with Article 11 (1)ofthe Implementing
Regulation andforthepurpose ofapplying Article 14(1)(c )ofthe
Regulation inconjunction with Article 12aoftheImplementing Regulation ."
3.InSection E,Ireland ,inthe left ,hand column of'Article 12a"
isinserted after thereference to"Article 11(1)",
4.InSection H,Netherlands ,intheleft hand column paragraph 1,"12a"
isinserted after thereference to"Articles 6(1),11(1)".
5. Section I,United Kingdom ,
(a)intheintroductory sentence ,"Article 12a"isinserted after
the reference to"Article 11(1 )".
. . ■. ■- i ■ ■ .
(b)i,ntheentry opposite "Great Britain ","Overseas Group ",isreplaced
by"Overseas Branch ".

ARTICLE 9
1.This Regulation shall enter into force onthedayofitspublication
intheOfficial Journal ofthe European Communities .
2.Article 2shall beapplicable with effect ,from 1July 1976 .
Article 3(3>(a)shall "beapplicable with effect from 1January 1979 .
.Article 3(3)(b)shall beapplicable with effect from 1July 1978 .
Article 3(5)(a)and (b)shall beapplicable witheffect from 14 :January 1980 .
Article 3(5)(c)shall beapplicable with effect from 2July 1973 .
Article 4(2)and (3)shall beapplicable with effect from 1July 1973 .
Article 5shalL beapplicable with effect from 21July 1979 .
Article 8(2)shall beapplicable with effect from 1October 1979 .
Article 8(3)(4)and (5)<a)shall beapplicable with effect from 21July 1979 .
/ »
Articles 6and 8(5)Cb)shall ,beapplicable with effect from 1November 1976 .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels ., . •1980 . For-'the -Council