16. 2. 76 Official  Journal  of the  European  Communities No C 35/17 
2.2. Article  2 
2.2.1.  Article  27a 
2.2.1.1.  The  Committee  endorses  this  provision, 
which  enables  the  amount  of the  guarantee  to be 
varied  according  to the  risks  actually  involved.  The 
size of a good  number  of European  operators,  or the 
scale  of their  activities,  is such  a safeguard  in itself 
that the  formalities  and  costs  involved  in requiring  a 
guarantee  are not really  justified. 
2.2.2.  Article  27b 
2.2.2.1.  Whereas  Article  27a  allows  the authorities 
to fix  the  guarantee  on  a case-by-case  basis, 
'according  to  the  sufficiency  of the  principal', 
Article  27b  provides  for  total  exemption  from  the 
obligation  to furnish  a guarantee  in cases  where 
goods  are  in free  circulation  and  are  subject  only  to 
VAT.  (This  exemption  does  not  apply  to goods 
which  are  subject  to excise  duties  or other  taxes  on 
consumption).  The  Committee  cannot  but  approve 
this provision,  which  should  facilitate  intra-
Community  trade. 
2.2.2.2.  It  fears,  however,  that  this  provision  — 
commendable  though  it may  be in principle  — may have  harmful  effects  in practice,  in view  of the 
absence  of Community  provisions  for  the  collection 
of VAT  at Community  level,  and  for  taking  action 
against  offenders. 
2.2.2.3.  The  Committee  notes  with  regret  that  the 
only  provisions  governing  mutual  assistance  between 
Member  States  at  the  moment  are  the  non-
Community  provisions  laid  down  in the  Convention 
of Rome  of 7 September  1967. 
2.2.2.4.  The  VAT  rate  applied  to a particular 
article  in one  Member  State  may  be anything  up to 
three  times  the  rate  applied  in another  Member 
State.  Consequently,  if complete  exemption  from  the 
obligation  to furnish  a guarantee  is granted  to 
operators  regardless  of  their  standing,  national 
authorities  might  find  it  necessary  to  take 
precautionary  steps  and  carry  out  checks.  This 
would  make  the  situation  even  more  difficult  than  it 
is at present. 
2.2.2.5.  If  we  are  to arrive  at a really  simple 
Community  transit  system,  we  must  have 
Community  procedures  for  checking  operations  and 
taking  action  against  offenders.  This  would  also 
make  it possible  to abolish  transit  advice  notes, 
which  are  required  under  Article  22 of Regulation 
(EEC)  No 542/69. 
Done  at Brussels,  27 November  1975. 
The Chairman 
of the  Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  proposal  for  a Directive  amending  the  Council  Directive  of 24 July 
1973  on the coordination  of laws,  regulations  and  administrative  provisions,  concerning 
the taking-up  and  pursuit  of activities  in direct  insurance  other  than  life  assurance 
The text  referred  to the  Committee  was  published  in Official  Journal  of the European 
Communities  No  C 243  of 23 October  1975,  page  10. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 1 October  1975,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
No C 35/18 Official  Journal  of the European  Communities 16. 2. 76 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
135th  plenary  session,  held  in Brussels  on 26 and  27 November  1975. 
The full  text  of the  opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  request  for an opinion  made  by 
the Council  on 1 October  1975, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof, 
Having  regard  to the  decision  taken  by its Chairman 
on 8 October  1975,  instructing  the  Section  for 
Industry,  Commerce,  Crafts  and  Services  to draw  up 
on opinion  on the matter, 
Having  regard  to the  opinion  issued  by the  Section 
for Industry,  Commerce,  Crafts  and  Services  at its 
meeting  on 5 November  1975, 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr de Bruyn, "Whereas  the  said  Directive  states  that  'unit  of 
account'  means  the  unit  which  is defined  in the 
Statute  of  the  European  Investment  Bank;  and 
whereas  the  value  of  the  unit  of  account  is 
consequently  equal  to that  of a given  weight  of fine 
gold; 
Whereas  this  gold-parity  unit  of account,  which  has 
to be converted  into  national  currencies,  does  not 
ensure  that  financial  guarantees,  such  as  the 
guarantee  fund,  are  of equal  value  throughout  the 
Community; 
Whereas  it is necessary  to re-define  the  unit  of 
account,  and  to use  conversion  rates  based  on the 
exchange  rates  obtaining  on  the  foreign  exchange 
markets,  in  order  to  ensure  that  the  insurance 
companies  of the  Member  States  compete  on equal 
terms, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
Having  regard  to the  discussions  at its 135th  plenary 
session,  held  on 26 and  27 November  1975  (meeting 
of 27 November), 
Whereas  the  Directive  on  insurance  activities 
stipulates  that  the  financial  guarantees  required  of 
insurance  companies  are  to be expressed  in units  of 
account; by a unanimous  vote: 
The Committee  approves  the  proposal.  It trusts  that 
future  Directives  on  other  insurance  sectors  will 
embody  similar  provisions,  and  points  out  that  it 
will be necessary  subsequently  to adjust  the amounts 
of the  financial  guarantees  prescribed  in the  various 
Directives. 
Done  at Brussels,  27 November  1975. 
The Chairman 
of the  Economic  and  Social  Committee 
Henri  CANONGE