No C 51/6 Official Journal of the European Communities 28. 2. 89 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) on guarantees issued by credit institutions or 
insurance undertakings 
COM(88) 805 final — SYN 180 
(Submitted by the Commission on 5 January 1989) 
(89/C 51/06) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 100A 
thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
(1) Whereas the Treaty, in Article 59, enshrines the 
principle of freedom to provide services; 
(2) Whereas many public authorities, when demanding 
guarantees, ask for guarantees issued by a resident of 
their national territory, which conflicts with that 
principle; 
(3) Whereas the Treaty principle of non-discrimination is 
directly applicable and does not require implementing 
legislation; 
(4) Whereas public authorities have a certain discretion 
in judging the acceptability of the guarantor; 
(5) Whereas public authorities also have a particular 
responsibility for the establishment and functioning 
of the internal market; 
(6) Whereas this responsibility calls for a limitation of 
the discretion of public authorities in the case of a 
specific financial service provided by institutions 
supervised on the basis of Community rules; (7) Whereas First Council Directive 77/780/EEC of 
12 December 1977 on the coordination of the laws, 
regulations and administrative provisions relating to 
the taking up and pursuit of the business of credit 
institutions ('), as last amended by Directive 
86/524/EEC (2), provides for a Community system 
for licensing and supervising credit institutions; 
(8) Whereas First Council Directive 73/239/EEC of 
24 July 1973 on the coordination of laws, regulations 
and administrative provisions relating to the 
taking-up and pursuit of the business of direct 
insurance other than life insurance (3), as last 
amended by Directive 87/344/EEC (4), provides for 
a Community system for licensing and supervising 
insurance undertakings; 
(9) Whereas it appears inappropriate that authorities 
other than those in charge of prudential supervision 
of these institutions judge the creditworthiness of 
credit institutions or insurance companies acting as 
guarantors, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Obligation to accept guarantees issued by credit 
institutions or insurance undertakings 
A public authority which requires to be secured for 
payment of an actual or potential debt or for respect of 
any other obligation shall be bound to accept a 
guarantee issued by any credit institution licensed 
pursuant to Article 3 of Directive 77/780/EEC or by 
any insurance undertaking authorized for the class of 
suretyship insurance according to Articles 6 and 7 of 
Directive 73/239/EEC. 
0) OJ No L 322, 17. 12. 1977, p. 30. 
O OJ No L 309, 4. 11. 1986, p. 15. 
O OJ No L 228, 16. 8. 1973, p. 3. 
(4) OJ No L 185, 4. 7. 1987, p. 77. 
28. 2. 89 Official Journal of the European Communities No C 51/7 
Article 2 
Amendment of existing legislation 
Article 27 (3) of Council Regulation (EEC) No 222/77 
of 13 December 1976 on Community transit (') is hereby 
replaced by the following: 
'3. Subject to Article 33 (2), the guarantee shall 
consist of the joint and several guarantee of either: 
— a credit institution licensed pursuant to Article 3 
of Council Directive 77/780/EEC (»), or 
0) OJ No L 322, 17. 12. 1977, p. 30. 
(') OJ No L 38, 9. 2. 1977, p. 1. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES; 
Having regard to the Treaty establishing the European 
Economic Community, and in particular to Article 128 
thereof, 
Having regard to Council Decision 63/266/EEC of 
2 April 1963 laying down general principles for 
implementing a common vocational training policy O, 
and in particular the seventh principle thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the seventh principle of Decision 63/266/EEC 
provides that the suitable training of teachers and 
instructors, whose numbers should be increased and — an insurance undertaking authorized for the class 
of suretyship insurance pursuant to Articles 6 and 
7 of Council Directive 73/239/EEC (2), or 
— any other natural or legal third person established 
in the Community and approved as guarantor by 
the Member State in which the guarantee is 
provided. 
(2) OJ No L 228, 16. 8. 1973, p. 23.' 
Article 3 
Entry into force 
This Regulation shall enter into force on . . . (the first 
day of the month following the adoption). 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
whose technical and teaching skills should be developed, 
shall be one of the basic factors of any effective voca­
tional training policy; whereas its tenth principle 
provides that special measures may be taken in respect of 
special problems concerning specific sectors of activity or 
specific categories of persons; 
Whereas the Treaty provides, in Article 52, for the 
abolition of restrictions on the freedom of establishment, 
and, in Article 59, for the abolition on restrictions on the 
freedom to provide services; whereas the Treaty also 
provides for the establishment of freedom of movement 
of workers, and requires the Council to adopt the 
measures necessary for its establishment; whereas an 
increase in the capacity to communicate in foreign 
languages will further facilitate the achievement of these 
objectives; 
Whereas, by Directive 77/486/EEC (2), the Council has 
laid down measures to be taken for the initial training 
and further training of teachers to facilitate the reception 
of children of migrant workers; Proposal for a Council Decision establishing the Lingua programme to promote training in 
foreign languages in the European Community 
COM(88) 841 final 
(Submitted by the Commission on 9 January 1989) 
(89/C 51/07) 
O OJ No 63, 20. 4. 1963, p. 1338/63. (2) OJ No L 199, 6. 8. 1977, p. 32.