WRITTEN QUESTION E-1450/00

by Wolfgang Ilgenfritz (NI) to the Commission

(10 May 2000)

Subject: Leasing of commercial vehicles in the European internal market

The Austrian haulage firm Unitrans has taken over an Italian haulage firm, thereby saving it from bankruptcy.

Unitrans has leased its own Austrian vehicles to its Italian subsidiary, in view of the latter's financial situation, characterised by a shortage of capital.

This cooperation has now been prohibited on the grounds that Unitrans does not have the certificate of vehicle ownership which is issued following incorporation into the Italian automobile register.

However, only firms whose headquarters are situated in Italy can be incorporated into this register as vehicle owners, with the result that every foreign leasing firm is excluded.

1. Is the Commission aware of this state of affairs?

2. If so, what measures does it plan to take to deal with this breach of the principle of the free movement of goods and services?

3. What justification would the Commission give for not taking such measures?

Answer given by Mr Bolkestein on behalf of the Commission

(5 June 2000)

The Honourable Member has raised the question of the extent to which the Commission could take action against Italian legislation which requires a leasing company from Austria to have its headquarters in Italy in order to register its leasing vehicles in that Member State. The company intends to sign a leasing contract with an Italian company which it has bought.

The question must be examined in relation to the free movement of services (Articles 49 et seq. (ex Article 59) of the EC Treaty), but not in relation to the free movement of goods (Articles 28 et seq. (ex Article 30) of the EC Treaty). In the case in question it seems that a leasing contract involves providing a user with a vehicle which he then, in all cases, returns to the leasing company at the end of the contract. The Court of Justice has already, on several occasions, recognised the applicability of Article 49 of the EC Treaty to cases such as this(1).

Where registration of a vehicle is subject to the condition of the leasing company having its registered office in that Member State, that company is deprived of the right to offer its services in a Member State other than that in which it is based.

A restriction of this kind would be justifiable only if the national measure were based on an express derogation in Community law, such as Article 46 (ex Article 56) of the EC Treaty, or if it were based on a compelling reason in the public interest in accordance with the principle of proportionality. Conditions of registration must therefore be seen in the context of road safety, but also in terms of payment of registration taxes.

With regard to all these questions, the Court of Justice has been called upon to give a verdict on a preliminary ruling by the Vienna Commercial Court of 10 November 1999 (Cura Anlagen case, C-451/99) concerning the interpretation of Article 49 of the EC Treaty. The case involves the same type of constraints encountered by a German leasing company wishing to offer its leasing services in Austria. Depending on the Court ruling, which will probably not be pronounced before 2001, the Commission may re-examine the possibility of taking initiatives concerning this problem.

(1) Aro Lease, C-190/95, ruling of 17.7.1997; Lease Plan, C 390/96, ruling of 7.5.1998.