WRITTEN QUESTION E-2502/99

by Rolf Linkohr (PSE) to the Council

(4 January 2000)

Subject: Europe Agreements with Eastern European countries

Each of the Europe Agreements which the EU has concluded with Eastern European countries includes an equal treatment requirement relating to the establishment of companies and nationals of the contracting countries (subject to certain provisos for special occupations).

1. Does the Council consider that this equal treatment requirement includes a prohibition of discrimination?

2. Does the Council consider that an EU Member State is barred from submitting nationals of the contracting countries to needs tests if their own self-employed nationals are not required to undergo such tests?

3. Does the Council agree that, where a Member State does not require its own self-employed nationals to produce evidence of prior knowledge, etc., such evidence may not be required of the nationals of the contracting partner countries?

4. Does the Council agree that, where a Member State does not require its self-employed nationals to produce evidence of capital, this may not be required of the nationals of the contracting partner countries?

Reply

(16/17 May 2000)

As the Honourable Member has pointed out, the Europe Agreements concluded between the European Community and its Member States, of the one part, and each of the applicant countries of Central and Eastern Europe (Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, Czech Republic, Romania, Slovakia and Slovenia), of the other part, contain provisions concerning the right of establishment. This right forms the subject of Chapter II of Title IV of each of the Agreements.

Although different for each Agreement, the provisions stipulate in general that:

- as from entry into force of the Agreement, the Member States must ensure national treatment in the right of establishment, with the exception of certain areas or matters;

- contrary to the above, the Associated State is only required to introduce national treatment progressively, depending on the sector;

- each Party may regulate the establishment and activities of companies and nationals on its territory, insofar as these regulations do not discriminate between its own nationals and the other Party's nationals.

However, it should be noted that the above provisions concerning the right of establishment do not prevent the Parties from applying their own laws and regulations concerning admission and residence.

The Honourable Member's questions may therefore be answered as follows, with the exception of certain specific provisions in each Europe Agreement.

1. The application of national treatment to the right of establishment means that any discrimination is prohibited between own nationals and the other Party's nationals with respect to the establishment and pursuit of economic activities.

2. Under national treatment, a Member State of the European Union may not restrict the right of nationals of the other Party to become established and to pursue activities for reasons concerning the appropriateness thereof, if it does not restrict this right for its own nationals, subject to the provisions of

Article 58 of the Association Agreements and of Article 59 of the Europe Agreements. Application of this principle is subject to the provisions of Article 55 of the Europe Agreement with Estonia, Article 56 of the Europe Agreement with Latvia and Lithuania, Article 57 of the Europe Agreement with Slovenia, Article 58 of the Europe Agreements with Hungary and Poland and Article 59 of the Europe Agreements with Romania, Bulgaria, the Slovak Republic and the Czech Republic.

3. Likewise, conditions relating to specific knowledge may not be imposed only on the other Party's nationals. It should, however, be pointed out that to date the provision in the Agreements allowing for measures to be taken for the mutual recognition of qualifications has not produced any effects.

4. Likewise, with respect to the establishment and pursuit of economic activities, conditions of a financial nature may not be imposed only on the other Party's nationals. Some Member States, however, have similar provisions concerning the admission and residence of third-country nationals in their territory.