24. 2. 88 Official Journal of the European Communities No C 52/5 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) amending Regulation (EEC) No 1408/71 on the 
application of social security schemes to employed persons, to self-employed persons and to 
members of their families moving within the Community and Regulation (EEC) No 574/72 
laying down the procedure for implementing Regulation (EEC) No 1408/71 
COM(88) 27 final 
(Submitted by the Commission to the Council on 5 February 1988) 
(88/C 52/04) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 51 and 
235 thereof; 
Having regard to the proposal from the Commission, 
prepared following consultation with the Administrative 
Commission on Social Security for Migrant Workers, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas under Article 99 of Council Regulation (EEC) 
No 1408/71 ('), as last amended by Regulation (EEC) 
No 3811/86 (2), the entire matter of the payment of 
family benefits to members of the family who do not 
reside in the competent State must be re-examined in 
order to reach a uniform solution for all Member States; 
Whereas by its Judgment of 15 January 1986 in Case 
41/84 (Pinna), the Court of Justice declared null and 
void Article 73 (2) of Regulation (EEC) No 1408/71 on 
the ground that the criterion of residence of the 
members of the family of the migrant worker, which it 
employs in order to determine the legislation applicable 
to the family benefits payable to the worker, 'is not of 
such a nature as to secure the equal treatment laid down 
by Article 48 of the Treaty and therefore may not be 
employed within the context of the coordination of 
national legislation which is laid down in Article 51 of 
the Treaty with a view to promoting the free movement 
of workers within the Community in accordance with 
Article 48'; Whereas, consequently, it is appropriate to disregard the 
criterion of residence of the members of the worker's 
family for the purposes of granting family benefits; 
Whereas, on the other hand, the criterion of employment 
adopted in Articles 73 (1) and 74 (1) of Regulation 
(EEC) No 1408/71 ensures equal treatment as between 
all workers subject to the same legislation; whereas the 
choice of this factor of attachment is necessary for 
reasons of simplicity, fairness and for reasons allied to 
the coherence of the system of Regulation (EEC) No 
1408/71, which, generally speaking, accords priority to 
the lex loci laboris (law of the place of work) for the 
purpose of determining the legislation applicable; 
Whereas it is therefore appropriate to apply this solution 
also to workers subject to French legislation; whereas it 
is necessary to amend along these lines Regulations 
(EEC) No 1408/71 and No 574/72 (3), as last amended 
by Regulation (EEC) No 3811/86; whereas the absence 
of a uniform solution as referred to in Article 99 of 
Regulation (EEC) No 1408/71 at the time of the 
extension of the categories of persons covered by Regu­
lations (EEC) No 1408/71 and No 574/72 to include 
self-employed workers and members of their families, 
prevented the same extension being made in the case of 
Articles 73 to 76 of Regulation (EEC) No 1408/71; 
whereas it is now appropriate to extend the provisions to 
cover self-employed workers and to adapt accordingly 
the provisions of Regulation (EEC) No 574/72, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 1408/71 is hereby amended as 
follows: 
1. The heading of Chapter 7 of Title III is replaced by 
the following: 
'FAMILY BENEFITS' 
(') OJ No L 149, 5. 7. 1971, p. 2. 
O OJ No L 355, 16. 12. 1986, p. 5. (>) No L 74, 27. 3. 1972, p. 1. 
No C 52/6 Official Journal of the European Communities 24. 2. 88 
2. Articles 72 to 75 inclusive are replaced by the 
following: 
'Article 72 
Aggregation of periods of insurance, employment or 
self-employment 
Where the legislation of a Member State makes 
acquisition of the right to benefits conditional upon 
completion of periods of insurance, employment or 
self-employment, the competent institution of that 
State shall take into account for thus purpose, to the 
extent necessary, periods of insurance, employment or 
self-employment completed in any other Member 
State, as if they were periods completed under the 
legislation which it administers. 
Article 73 
Employed or self-employed persons the members of 
whose families reside in a member State other than the 
competent State 
An employed or self-employed person subject to the 
legislation of a Member State shall be entitled, in 
respect of the members of his family who are residing 
in another Member State, to the family benefits 
provided for by the legislation of the former State, as 
if they were residing in that State, subject to the 
provisions of Annex VI. 
Article 74 
Unemployed persons the members of whose families 
reside in a Member State other than the competent 
State 
An unemployed person who was formerly employed 
or self-employed and who draws unemployment 
benefits under the legislation of a Member State shall 
be entitled, in respect of the members of his family 
residing in another Member State, to the family 
benefits provided for by the legislation of the former 
State, as if they were residing in that State, subject to 
the provisions of Annex VI. 
Article 75 
Provision of benefits 
1. Family benefits shall be provided, in the cases 
referred to in Article 73, by the competent institution 
of the State of the legislation of which the employed 
or self-employed person is subject and, in the cases 
referred to in Article 74, by the competent institution 
of the State under the legislation of which an unem­
ployed person who was formerly employed or self-
employed receives unemployment benefits. They shall 
be provided in accordance with the provisions admin­
istered by such institutions, whether or not the natural 
or legal person to whom such benefits are payable is 
residing or staying in the competent State or in 
another Member State. 2. However, if the family benefits are not used by 
the person to whom they should be provided for the 
maintenance of the members of his family, the 
competent institution shall discharge its legal obli­
gations by providing the said benefits to the natural or 
legal person who is actually maintaining the members 
of the family, at the request of and through the 
agency of the institution of their place of residence or 
of the designated institution or body appointed for 
this purpose by tHe competent authority of their 
country of residence. 
3. Two or more Member States may agree, in 
accordance with the provisions of Article 8, that the 
competent institution shall provide the family benefits 
payable under the legislation of those States or of one 
of those States to the natural or legal person who is 
actually maintaining the members of the family, either 
directly or through the agency of the institution of 
their place of residence.' 
3. Article 90 is deleted. 
4. Article 94 (9) is replaced by the following: 
'9. The family allowances received by frontier 
workers employed in France in respect of the 
members of their families residing in another Member 
State on the day preceding the entry into force of 
Regulation (EEC) No 0000/00 shall continue to be 
paid at the expense of the French competent 
institution at the rates, within the limits and according 
to the procedures applicable on that date as long as 
their amount exceeds that of the benefits that would 
be due after the entry into force of Regulation (EEC) 
No 0000/00 and as long as the persons concerned are 
subject to French legislation. Account shall not be 
taken of interruptions lasting less than one month, 
nor of periods during which unemployment or 
sickness benefit is drawn. 
The procedure for implementing this paragraph shall 
be determined by mutual agreement between the 
Member States concerned or by their competent auth­
orities, after the Administrative Commission has 
delivered an opinion.' 
5. Article 99 is deleted. 
6. Annex II, Part II is amended as follows: 
(a) the text appearing at E. France is replaced by the 
following text: 
'The allowance for young children provided 
without a means test.' 
(b) the text appearing at I. Luxembourg is replaced 
by the following text: 
'(a) Antenatal allowances 
(b) Childbirth allowances.' 
7. In Annex VI, E. France, 
(a) paragraph 4 is replaced by the following: 
'4. A person who is subject to French legis­
lation pursuant to the provisions of Article 14 (1) 
or Article 14a (1) shall be entitled, in respect of 
242^ Cofficial]ournalofthe European Communities NoC52B7 
themembers of hisfamily accompanyinghimon 
theterritory of the ^iember^tatein^vhichheis 
pursuing an occupations ^o the following family 
benefits^ 
(a) The allowance for young children provided 
for by Article L 515 of the social security 
Code for the period during ^vhich this 
allowance ispaidsub^ectto ameans test^ 
(b) the family allowances provided for in Articles 
L524andL53Iof the social security C^odeB 
(b) The following paragraph7isadded^ 
5^. Notwithstanding the provisions of Articles 
73 and 74 of the Regulations the housing 
allowance referred to in Article 5t0 (5) of the 
social security Code^ the housing allowances 
financed by the National Housing Assistance 
Rund and the removal grants introduced by 
Article tD(h) of the La^ of 22 August t^D shall 
be granted only to persons concerned residing on 
RrenchterritoryB 
B^c^2 
Regulation (EEC) No 574B72 is hereby amended as 
follo^s^ 
1. ArticlelOa is replaced by the follo^ving^ 
^ules applicable ^here an employed or selfemployed 
person is subject successively to the legislation of 
several member states during the same period or 
partof aperiod 
^here an employed or self employed person has 
been subject successively to the legislation of t^vo 
member states during the period separating t^vo 
dates for the payment of family benefits as provided 
forbythelegislationof oneorbothofthe^viember 
states concerned^ thefollo^vingrulesshallapply^ 
(a) the family benefits ^hich the personconcerned 
may claim by virtue of being subject to the legis 
lation of each one of these states shall 
correspond to the numberof daily benefits due 
under the relevant legislation, ^here such legist 
lation does not provide for daily benefits^ the 
family benefits shall be granted in proportions 
the length of time during ^vhich the person 
concernedhasbeensub^ecttothelegislationof 
each one of the member states in relation to the 
period fi^edbythelegislationconcerned^ 
(b) ^vhere the family benefits have been provided by 
an institutionduringaperiod^vhenthey should 
have beenprovidedbyanother institutions there 
shall be an ad^ustmentof accounts between the 
said institutions^ (c) for the purposes of subparagraphs (a) and (b)^ 
where periods of employment or self 
employment completed under the legislation of 
one member ^tate are expressed in units 
different from those which are used for the 
calculation of family benefits under the legis 
lation of another Aiember ^tate to which the 
person concerned has also been subject during 
thesameperiod^ theconversionshallbecarried 
outinaccordancewiththeprovisionsof Article 
15 (3) of theimplementingRegulation^ 
(d) notwithstanding the provisions of subparagraph 
(a)^ in respect of dealingsbetween the member 
states listed in Anne^ ^ to the implementing 
Regulations the institution bearing the costs of 
the family benefits by reason of the first 
employment or selPemployment during the 
period concerned shall bear such costs 
throughouttheentirecurrentperiodB 
2. The heading of Chapter7of fide IV is replaced by 
thefollowing^ 
family benefits^ 
3 In Article ^^ 
(a) the titlepreceding Article ^D isreplacedby the 
following^ 
lmplementationofArticle7^ and Article 7^(1) 
and (2) of the Regulations 
(b) the title under Article ^D is deleted. 
(c) paragraph4is replaced by the following^ 
^4. The competent authorities of two or more 
^viember^tates may agree on specialprocedures 
for thepayment of family benefits^inparticular 
withaviewtofacilitatingtheimplementationof 
Article 75 (1) and (2) of the Regulation, ^uch 
agreements shall be communicated to the 
Administrative C^ommissionB 
4. Article ^7 is deleted. 
5. Article ^^ is replaced by the following^ 
implementation of Article74 of the Regulation 
The provisions of Article ^D of the implementing 
Regulation shall apply by analogy to unemployed 
persons who were formerly employed or self 
employedand whoarecoveredbyArticle74of the 
RegulationB 
D Article ^^ is deleted. 
7 Article ^ and the title preceding it are deleted. 
No C 52/8 Official Journal of the European Communities 24. 2. 88 
8. Article 101 (1) is replaced by the following: 
'1. Pursuant to Articles 36, 63 and 70 of the 
Regulation, the Administrative Commission shall 
draw up a statement of claims in respect of each 
calendar year.' 
9. Article 102 (2) is replaced by the following: 
'2. The reimbursements provided for in Articles 
36, 63 and 70 of the Regulation shall be made for all 
the competent institutions of a Member State to the 
creditor institutions of another Member State 
through the agency of the bodies designated by the 
competent authorities of the Member States. The 
bodies through which reimbursements have been 
made shall advise the Administrative Commission of 
the amounts reimbursed within the time limits and 
according to the procedures laid down by the said 
Commission.' 
10. Article 104 (2) is replaced by the following: 
'2. Provisions which are similar to those referred 
to in paragraph 1 and which, for the purposes of 
dealings between two or more Member States, will 
apply following the entry into force of the Regu­
lation, shall be entered in Annex 5 to the im­
plementing Regulation. The same shall apply to 
provisions agreed under Article 97 (2) of the im­
plementing Regulation.' 
11. Article 120 is deleted. 
12. In Annex 2, E. France: 
(a) paragraph 3 is deleted; 
(b) paragraph 4 becomes paragraph 3. 
13. Annex 10 is amended as follows: 
(a) in A. Belgium, subparagraph 6 (d) is deleted; 
(b) in B. Denmark, subparagraph 6 (a) is replaced by 
the following: 
'(a) reimbursements pursuant to Article 36 and 
Article 63 of the Regulation: (no change)'; (c) in C. Germany, paragraph 8 is replaced by the 
following: 
'8. For the purposes of applying Articles 36 
and 63 of the Regulation and Article 102 (2) of 
the implementing Regulation (no change)'; 
(d) in E. France: 
(i) Paragraph 8 is deleted; 
(ii) Paragraphs 9 and 10 become paragraphs 8 
and 9 respectively; 
(iii) Paragraph 8 (new) is replaced by the 
following: 
'8. For the purposes of applying jointly 
Articles 36 and 63 of the Regulation and 
Article 102 (2) of the implementing Regu­
lation: (no change)'; 
(e) in G. Ireland, subparagraph 3 (b) is replaced by 
the following: 
'(b) For the purposes of applying Article 70 of 
the Regulation and Article 102 (2) of the 
implementing Regulation: (no change)'; 
(f) in H.Italy: 
(i) Paragraph 5 is deleted; 
(ii) Paragraphs 6, 7 and 8 become paragraphs 5, 
6 and 7 respectively; 
(iii) Subparagraph 6 (c) (new) is replaced by the 
following: 
'(c) Reimbursements under Article 70 of the 
Regulation (no change)'; 
(g) in I. Luxembourg, subparagraph 8 (d) is deleted; 
(h) in J. Netherlands, subparagraph 4 (c) is deleted. 
Article 3 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
It shall apply with effect from 15 January 1986. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.