Communication from the Commission to the Council and the European Parliament - Commission communication to the European Parliament and the Council on the follow-up to the recommendations of the High-Level Panel of the Free Movement of Persons
Date: 1998-07-01
Institutions: European Commission
Subjects: European Economic Area, free movement of persons, free movement of workers, residence permit

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 01.07.1998 
COM(1998) 403  final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

Commission  Communication  to the European  Parliament 
and the Council on the follow-up to the  recommendations 
of the High-Level Panel on the Free Movement of Persons 

Commission Communication to the European Parliament and 
the Council on the follow-up to the recommendations of the 
High-Level Panel on the Free Movement of Persons 

On  24 January  1996  the  Commission  requested  the  High-Level  Panel  on  the  Free 
Movement of Persons, chaired by Mrs Simone Veil, to identify  the problems still arising 
in this area and to evaluate them and propose solutions. 

On  18 March  1997 the  High-Level  Panel  presented  its report,  which  makes over  eighty 
recommendations  in the seven chief areas of interest to citizens of the Union wishing to 
move within the Community area, i.e.: 

-  entry and residence, 
-  access to employment, 
-  social rights and family status, 
- 
-  cultural rights, 
-  special situation of third-country nationals, 
-  protection of the rights of individuals. 

tax and  financial  status, 

The Commission  considers the Panel's report to be an excellent  assessment  of the many 
difficulties  encountered  by  citizens  exercising  their  right  to  the  free  movement  of 
persons. 

A large proportion of the Panel's recommendations have, therefore, been incorporated by 
the Commission  into its Action Plan for the Single Market of June  19971 and  its Action 
the  Free  Movement  of  Workers  of  November  1997.2  Some  other 
Plan  for 
recommendations have been  overtaken  by events or require  reassessment  on account  of 
the new legal environment which will come into existence with the entry into force of the 
Treaty  of  Amsterdam.  This  communication  focuses  on  two  aspects  of  free  movement 
which  were examined  by  the  Panel:  first,  the  rights of entry  and  residence  and,  second, 
the  need  to  improve  information  to citizens  regarding  their  rights. A detailed  review  of 
the follow-up to all of the Panel's recommendations is given in the annex. 

Rights of entry and residence 

As  stated  in  the  High-Level  Panel's  report,  rights  of  entry  and  residence  were  initially 
linked  to  the  pursuit  of  an  occupation.  Since  then,  mainly  as  a  result  of  secondary 
legislation, these rights have gradually been extended to cover all citizens. This step-by-step 
extension  has meant,  however,  that  beneficiaries  have  been  compartmentalised  in  a way 
that  is no  longer  in keeping  with modem  forms  of mobility  or with the  establishment  of 
citizenship of the Union. 

1  CSE(97)1  final. 

2 

COM(97) 586  final. 

4<^ 

It  is  noted,  therefore,  that  Community  legislation,  as  it  now  stands,  has  been  essentially 
conceived  for  workers  and  their  families  who  wish  to  become  established  in  another 
Member  State  cither  permanently  or  for  a  very  long  period.  It  is,  on  the  other  hand, 
ill-adapted to the circumstances of persons who exercise their right to mobility for a limited 
period or on a part-time basis (students, trainees, employees who are temporarily  seconded, 
mobile  self-employed  persons,  frontier  workers,  retired  persons  with  more  than  one 
residence, etc.). The number of such persons is difficult  to gauge; it is, however, expected 
to grow considerably on account of the effects  of European  integration, changes in ways of 
living and working, the growing need for young people undergoing initial training to spend 
a study or training period  in another country, technological  innovations in communications 
and the development of transport links . 

Furthermore, by introducing into Article 8a of the EC Treaty the concept of citizenship of 
the Union, the  Treaty of European  Union generalised,  for the benefit  of all  citizens,  the 
right  to  enter,  the  right  to  reside  and  the  right  to  remain  in  the  territory  of  another 
Member State. From this point of view, these rights are becoming an integral part of the 
legal  heritage  of  every  citizen  of  the  European  Union  and  should  be  formalised  in  a 
common corpus of legislation . 

For all these reasons, the Commission considers it necessary to harmonise the legal status 
of all  Community  citizens in the Member  States, irrespective  of whether they  pursue an 
economic  activity  or  not.  The  main  guidelines  of  the  Commission's  proposals  in  this 
connection will be as follows : 

- 

the creation, in so far as possible, of a single set of rules on free  movement within the 
meaning of Article 8a for all citizens of the Union and the members of their families; 

a  new  approach  to  exercising  the  right  to  reside,  particularly  by  restricting  the 
obligation to hold a residence permit to situations where this is justified; 

-  a clarification  of the status of those  members of the  family  of a citizen  of the  Union 

who are nationals of a third country; 

-  clearer  restrictions  regarding  the  possibility  of  curtailing  the  exercise  of the  right  to 

reside. 

the  Commission 

Revising  the  right  of  free  movement  and  residence  in  the  context  of  the  rules  on 
citizenship  is a task  of such  a global  nature and  such  broad  scope that  results cannot  be 
expected  for the citizens of the Union  in the short term  . For that reason, in tandem with 
revision  of 
this  communication, 
Regulation (EEC)  1612/68  and  of  Directive 360/68/EEC  on  the  freedom  of  movement 
and  the  right  of  entry  and  residence  of  workers.  This  selective  revision  is  aimed  at 
improving  the present situation  of workers and members of their  families  who move, in 
keeping  with  the  undertaking  made  by  the  Commission  in  its  Action  Plan  of 
November  1997.  In  this  connection,  the  European  Council  held  on  20 November  1997 
recognised  the  importance  of  the  mobility  of  workers  from  the  point  of  view  of 
reinforcing the functioning  of the national employment markets. 

is  already  proposing  a 

Measures to reform  and  simplify  the rules on coordinating  social  security  schemes  will 
also be proposed by the end of 1998. 

JL 

Improving information  to citizens 

Facilitating  the  free  movement  of persons  is a many-faceted  task,  as is demonstrated  by 
the great diversity of the subjects covered by the Panel's report. 

However,  the  report  lays stress  in several  places on the  need  to  improve  information  to 
citizens regarding their rights under Community  legislation and to provide better training 
and information  for all those involved  in the exercise of free  movement. 

In  this  respect,  it  is  appropriate  to  highlight  the  measures  already  taken  by  the 
Commission: 

- 

launch, on  the occasion  of the Cardiff  European  Council  of  15 and  16 June  1998, of 
the "Dialogue with the Citizens", which follows  up and builds on the "Citizens First" 
initiative  and  is  aimed  at  providing  people  with  practical  information  on  their 
free-movement  and  related  rights,  answering  their  questions  and  directing  them 
towards the appropriate administration if they run into  difficulties; 

-  publication  of a "Route map for job-seekers  in the EU", which  has been published  in 
response to questions raised by citizens in the context of the "Citizens First" initiative; 

development  and  improvement  of  the  EURES  network,  which  provides  information 
on job opportunities and on living and working conditions in the Member States; 

-  development and consolidation  of the Euro-Jus network,  which  is aimed  at  providing 
advice  and  legal  assistance  at the  level  of the Commission's  representative  offices  in 
the Member States; 

-  pursuit  and  development  of the  Karolus programme  on the exchange  and training  of 
national  officials  responsible  for  single-market  legislation,  the  "Robert  Schuman" 
programme  on  raising  the  legal  profession's  awareness  of  Community  law,  the 
"Jean Monnet"  programme  for  universities  and  the  "Grotius"  programme  on  the 
exchange of legal practitioners; 

-  support for the development  of the Eurodesk network, which is aimed at providing an 
information  service  covering  all  questions  relating  to  young  people  and  the 
organisations responsible for their rights. 

Conclusion 

The  object  of  this  communication  is  to  provide  an  overview  of  the  Commission's 
response to the recommendations of the High-Level Panel in two important areas, one of 
which  requires  legislative  proposals,  while the other helps  to bring  Europe  closer  to  its 
citizens. 

In  the  first  of  these  areas,  the  Commission  has  adopted  legislative  proposals  aimed  at 
reinforcing  the free movement of workers, while embarking on a detailed analysis of the 
concept  of  European  citizenship  and  its  legal  effects  on  citizens'  right  of  entry  and 
residence in the Member States. 

Ac 

ANNEX 

Review of the Report of the High-Level Panel on the Free 
Movement of Persons 

Introduction 

The  Report  of  the  High-Level  Panel  on  the  Free  Movement  of  Persons  chaired  by 
Mrs Simone  Veil (hereafter  referred  to as the  "Panel's  Report"), which  was presented  to 
the  Commission  on  18 March  1997,  aroused  very  keen  interest  on  the  part  of  a  large 
number  of  bodies  and 
Its 
methodological  rigour and analytical  qualities were widely acclaimed  and contributed  to 
the discussion on the practical measures to be adopted in order to achieve a genuine area 
of free movement of persons in the European Union. 

the  European  Parliament. 

institutions,  particularly 

In  this  context,  the  President  of  the  Commission  undertook  to  have  the  situation 
appraised at the end of the year following that in which the Report was submitted. 

Such an appraisal  having now been carried out, the object  of this review  is to sum up on 
the follow-up given, particularly by the Commission, to the recommendations made. 

The task assigned to the Panel by the Commission consisted  in identifying  the existing or 
potential  obstacles  encountered  by  European  citizens  in  exercising  their  right  to  move 
freely  and to work within the Union.  It was, on the one hand, to study  how current  legal 
instruments  are applied  and  identify  ways of  improving  them  or  making  their  operation 
more effective  and, on the other, to recommend new measures to supplement  the existing 
panoply  of  legislation  which  could  eliminate  certain  obstacles  or  provide  solutions  to 
problems not yet tackled by the Community. 

The Panel's Report accordingly contains over 80 recommendations. 

An  examination  of  the  follow-up  to  the  Panel's  Report  must  begin  by  mentioning  the 
three main Community  instruments which have been adopted  since it was presented and 
which will influence the free movement of persons. 

First,  the  Treaty  «f  Amsterdam  was  adopted  on  19 June 1997  and  signed  on 
2 October  1997. This Treaty introduces into the EC Treaty provisions which should make 
it easier to achieve the objective of the free movement of persons, from the point of view 
of  both  the  abolittew of  internal-border  checks  and  the  right  to  move  and  reside  freely 
within the territory ef the Member States. 

Al 

Second, the Amsterdam  European Council also approved  the Action  Plan for the Single 
Market, Strategic Target 4 of which is aimed at delivering a single market for the  benefit 
of all citizens.1 The six actions currently being developed  under this Strategic Target are 
directed  at  abolishing  border  checks,  updating  the  rules  on  the  right  of  residence, 
protecting  social  rights,  promoting  the  mobility  of  labour  within  the  Union,  protecting 
consumer rights, public health and the environment and developing the dialogue with the 
citizen. The six-monthly  Single-Market  Scoreboard2  makes  it possible  to gauge the state 
of progress of each measure to be implemented  under the Action  Plan. 

Third,  it  is  also  necessary  to  draw  attention  to  the  publication  by  the  Commission  on 
12 November  1997  of  the  Action  Plan  for  Free  Movement  of  Workers,  which 
constitutes a response to some of the Panel's recommendations.3 

In its Work Programme for  1998, the Commission  also indicates that, on the basis of the 
recommendations  contained  in  the  Panel's  Report,  it  will  work  towards  making  the 
principle  of  free  movement  of  persons  a  reality.  In  its  resolution  commenting  on  this 
Programme,  Parliament  requests  the  Council  and  Commission  to  implement  all  the 
recommendations contained in the Panel's Report on the free movement of persons. 

For  reasons  of  simplification  and  clarity,  this  review  is  divided  into  seven  chapters 
corresponding  to  those  contained  in the  Report.  The  follow-up  to  the  special  report  on 
supplementary pensions4 is described in Chapter 3 (social rights and family status). 

1. 

EN TRY AND RESIDENCE 

The  Panel's  Report  refers  to  persistent  obstacles  to  the right  to  move  and  reside 
freely  in  the  territory  of  the  Member  States.  These  obstacles  fall  into  three 
categories:  the  continued  existence  of checks  at  internal  frontiers,  shortcomings  in 
administrative practices and legislative deficiencies. 

The continued existence of checks at internal borders 

The Commission  of course shares the Panel's view that the citizen cannot appreciate 
all  the effects  of the  internal  market as long as checks continue  to be carried  out at 
internal  borders.  The discussions  held  within  all  the  Community  institutions  have 
highlighted  the  differences  of  opinion  regarding  both  the  objective  to  be  achieved 
and  the  means  of  guaranteeing  a  high  degree  of  security  in  an  area  of  free 
movement.  The  1995  Commission  proposals  for  completing  all 
legislative 
instruments were not carried through. However, the new Amsterdam Treaty took up 
the progress achieved at the Schengen inter-governmental  level and incorporating  it 
into a Union context, setting a target date of five years to achieve this objective  and 

1  CSIi(97)l  final, 4 June  1997. 

2  No  I, November  1997, SEC( 97) XXXI; No 2, May  1998, SEC(98)  XXX. 

3  COM(97),  586 final,  12 November  1997. 

4  Report  by the  High-Level  Panel  adopted  on 28 and  29 November  1996 and  annexed  to the  Report  on 

the free  movement  of persons. 

-2-

adopting  ad  hoc  solutions  for  the  United Kingdom,  Ireland  and  Denmark  that  are 
given  practical  expression  in  various  Protocols  annexed  to  the  Treaty.  It  may  be 
noted, however, that freedom  to travel  without  controls is already  a reality  between 
nine Member States and a tenth is preparing to join the leaders shortly. 

-  Shortcomings in administrative practices 

The letters sent to the Commission, the numerous complaints  from  citizens and  the 
petitions  sent  to  the  European  Parliament  merely  go  to  confirm  the  High-Level 
Panel's findings  regarding a number of shortcomings in administrative  practices and 
the need  for new initiatives, which the Commission announced in its Action Plan for 
the  Single  Market  and  has already  started  to  act  upon,  particularly  the  decision  to 
accelerate  internal  administrative  procedures  for  dealing  with  complaints  and 
initiating the infringement  procedures set out in Article  169 of the EC Treaty and to 
make them  more transparent  to citizens  (see the most  recent  Commission  report  to 
the European  Parliament  and Council  on monitoring  the application  of Community 
law).  The  Commission  will  also  present  an  interpretative  communication  on  the 
application  of  Directive  64/221/EEC  concerning  public  policy,  public  security  or 
public health. 

-  Legislative  deficiencies 

The  Commission  shares  the  Panel's  view  that  it  is  necessary  to  present  new 
proposals  to amend  and  simplify  exercise of the right of free  movement  of  persons 
and,  in  particular,  to  allow  full  benefit  to  be  derived  from  the  establishment  of 
citizenship  of  the  Union.  The most  ambitious  method  would  certainly  consist  in a 
complete  revision  of  all  rights  and  obligations  connected  with  the  movement  and 
residence of citizens of the Union and members of their families. This objective had 
already  been expressed once by the  1993 Brussels European  Council, but could not 
be achieved for reasons relating, inter alia, to the problem of the wide array of legal 
bases  and  legislative  procedures  governing  the  category  to  which  the  citizen 
exercising his right of free movement belongs.5 

The establishment of citizenship of the Union and a new provision  introduced by the 
Treaty of Amsterdam  into  Article  18(2)  (former  Article 8a)  on  the  codecision 
procedure referred  to in Article  251 (former Article  189b) should pave the way for a 
proposal  for a revision that is capable of providing  a consistent  and  comprehensive 
solution to the legal and administrative obstacles noted by the High-Level  Panel. 

Thus, new proposals on employed  persons have been presented  by the Commission 
in  conjunction  with  this  review.  These  proposals  are  aimed  at  amending 
Regulation (EEC) No 1612/68 and Directive 68/360/EEC along the lines announced 
in  the  Action  Plan  for  Free  Movement  of  Workers6  and  are  thus  in  keeping  with 
several  of  the  Panel's  recommendations.  In  accordance  with  the  commitment 

5 

See  in  this  connection  the  Second  report  from  the  Commission  on  citizenship  of  the  Union 
(COM(97) 230 final, 27 May  1997). 

6  COM(97) 586 final,  12 November 1997. 

-3-

contained  in the Action Plan for the Single Market, the Commission  will not fail  to 
draw up further  detailed proposals. 

In this connection, a report on the application  of the three  Directives on the right of 
residence of students, retired persons and non-active persons will make it possible to 
define the legislative shortcomings which require to be remedied. 

Finally, mention should be made of the judgment delivered on 12 May 1998 in  Sala,7 
in  which  the  Court  ruled  that  Community  law  precludes  a  Member  State  from 
requiring  nationals  of  other  Member  States  authorised  to  reside  in  its  territory  to 
produce a formal residence permit issued by the national authorities in order to receive 
a child-raising allowance, when the Member State's own nationals are only required to 
be  permanently  or  ordinarily  resident  in  that  Member  State.  This  judgment  is 
the  combined  application  of 
important 
Articles 6, 8 and 8a of the Treaty, the principle of non-discrimination  against citizens 
of the Union in areas falling within the scope of Community law. 

it  establishes, 

through 

that 

in 

2. 

ACCESS TO EMPLOYMENT 

Where  access  to  public-service  jobs  is concerned,  the  Court  has  laid  down  in  its 
case law the criteria for deciding which sectors are reserved for nationals pursuant to 
Article 48(4)  of  the  EC Treaty.  Accordingly,  the  Commission  will  ensure  that 
Member States fully abolish all restrictions on access to such jobs in the public sector. 

As  regards  the  general  principle  of  mutual  recognition  in  all  public  sectors  in  the 
Member  States,  progress  has  been  made  and  discussions  are  continuing  with  and 
between the Member States. Where the specific  question of professional  experience 
acquired  in  another  Member State  is  concerned,  it  should  be  pointed  out  that 
theCourt,  in its Kalliope judgment  of  15 January  1998,8 declared  as being  contrary 
to  Article 48 of the  EC Treaty  a clause  in a collective  agreement  applicable  to the 
public service of a Member State which did not take any account of previous periods 
of  comparable  employment  completed 
the  public  service  of  another 
Member State.  Phis case law was confirmed  by the judgement  of  12 March  1998 in 
Commission v Greece.9 In this respect, the principle of equivalence of situations  for 
occupational  purposes  has  been  incorporated  into  the  proposal  for  the  revision  of 
Regulation (EEC) No 1612/68  and  of  Directive 68/360/EEC  and  the  effects  of  this 
principle should be felt mainly in the area of public-service jobs (see below). 

in 

7  CaseC-85/96. 

1  Case C-15/96. 

9  Case C-187/96. 

-4-

Where recognition  of diplomas  is concerned,  it should be pointed out first that the 
Directive  on 
lawyers  was  adopted  on 
16 February  1998.10 

the  freedom  of  establishment  of 

Also  in  December  1997,  in  the  context  of  the  SLIM  (Simpler  Legislation  for  the 
Single  Market  (SLIM)  initiative,  the  Commission  presented  a  proposal  for  a 
Directive aimed at simplifying  and modernising the seven sectoral Directives for the 
regulated  professions  (nurses, dentists, vets,  midwives,  architects,  pharmacists  and 
doctors).11 This proposal also incorporates some of the Panel's recommendations (as 
regards  the  general  system,  the  obligation  to take  into  consideration,  in  examining 
applications  for  recognition,  experience  gained  after  the award  of the  qualification; 
as  regards  the  sectoral  Directives,  the  possibility  of  recognising  qualifications 
awarded to Community nationals in third countries). 

Finally, the  Council has agreed  a common position  on the amended  version  of the 
February  1996 proposal  for  a Directive12  consolidating  the  Directives  on access to 
craft  and  industrial  activities  and  establishing  a mechanism  for  the  recognition  of 
qualifications  in  respect  of  professional  activities  not  yet  covered  by  the  general 
system.  This  proposal  consolidates  about  thirty  directives  granting  access  to 
regulated  activities  on the basis of professional  experience  in the country  of origin 
and completes them by creating for these same activities a procedure for recognition 
of diplomas. 

Several pilot schemes have been launched under the Socrates and Leonardo da Vinci 
programmes on the evaluation and accreditation of professional  qualifications. 

In  this  connection,  as  indicated  in  the'Panel's  Report,  a  feasibility  study  on  a 
"professional  passport"  had  been  requested  by  the  Council.  However,  in  1995, the 
final  report  on the  "individual  portfolio"  project  highlighted  technical  and  cultural 
problems  which  prevented  the  portfolio  playing  its  full  role  in  fostering  the 
transparency of skills and qualifications. 

The  proposal  for  a  Commission  Decision  aimed  at  establishing  a  Community 
information  document  ("EUROPASS-Training") 
for  young  people  who  are 
undergoing  training,  including  apprenticeship,  and  undertake  one  or  more  training 
periods in another Member  State,13 is now at the common-position  stage within the 
Council and should be finalised  before  the end of  1998. This proposal  demonstrates 
that  it is possible to reinforce  transparency  without  interfering  in the powers  of the 
Member States. The Commission is in fact examining the possibility of following up 
the  EUROPASS-Training  initiative  with  a  similar  one  in  the  field  of  continuing 

10  Directive  98/5/EC  of  the  European  Parliament  and  of  the  Council  of  16 February  1998  to  facilitate 
practice of the profession  of  lawyer on a permanent  basis  in a Member State other than that  in which 
the qualification  was obtained, OJ No L77,  14 March  1998. 

1 '  COM (97) 638 final, 2 December 1997. 

12  OJ No C 264, 30 August 1997. 

13  See footnote 23. 

training.  The  central  question  hinges  on  the  portability  of  the  skills  acquired 
throughout  an  individual's  career,  whether  through  formal  training  resulting  in 
qualifications  or  through  initiatives  taken  by  firms  in  conjunction  with  new 
validation  and accreditation  methods, as suggested  in the Commission  White Paper 
entitled "Teaching and learning: towards the learning society". 

The  Commission  is currently  pursuing  its efforts  in  a number  of directions  with a 
information 
view  to  overcoming  these  difficulties 
exchanged. 

in  order  to  improve  the 

in 

purposes 

occupational 

Moreover,  the  Commission  has  included  the  principle  of  equivalence  of  situations 
lor 
of 
its 
Regulation (EEC) No 1612/68.  This  principle  is  aimed  at  enabling  facts  or  events 
which  have  legal  or  professional  effects  in  one  Member State  to  be  taken  into 
account even if they have occurred  in another Member State. It will apply, therefore, 
to professional  qualifications  acquired  in other Member  States, so that they may be 
valid in the host Member State. 

proposal 

revision 

the 

for 

Furthermore, as announced  in the Action  Plan for  Free Movement  of Workers, the 
Commission  wishes  to  involve  the  social  partners  in  the  implementation  of  free 
movement.  It  believes  that  such  involvement  could  result  in  the  establishment  of 
systems that would  make professional  qualifications  more transparent  and  easier  to 
compare  between  Member  States.  The  social  partners  have  also  been  able  to 
participate and express their views in the context of meetings of experts. 

in 

context 

the  Commission, 

In  addition,  in  order  to  reinforce  the  participation  and  contribution  of  the  social 
partners, 
of 
the 
Regulation (EEC) No 1612/68, presented a proposal  on merging the existing advisory 
committees on the  free  movement  of workers and the coordination'of  social  security 
schemes.  The  new  committee  resulting  from  the  merger  of  the  old  tripartite 
committees (Member States, employers and trades unions) will be destined to become 
a highly qualified  forum for discussing and analysing all issues relating to the mobility 
in  Europe:  employment  policy,  social  security,  recognition  of 
of  workers 
qualifications, etc. 

revision 

the 

of 

Finally,  the  Commission  is  making  a  substantial  effort  to  improve  practical 
information  for  job-seekers.  Since  the  Panel's  Report  was  presented,  the  EURES 
network, which supplies information on job opportunities and on living and working 
conditions, has grown to  such an extent that  it comprised  477  Euroadvisers  by  the 
end  of  1997. Both  the  Action  Plan  for  the  Single  Market  and  the  Action  Plan  for 
Free Movement of Workers provide for improvements to this system, particularly in 
cross-border areas. 

3. 

SOCIAL RIGHTS AND FAMILY STATUS 

The  Treaty of Amsterdam  does  not  change  the  unanimity  rule  laid  down  in 
Article 51, as suggested in the Panel's Report. 

The  Panel  makes  a  number  of  recommendations  for  simplifying  the  rules  on  the 
coordination of social security schemes. 

In  the  Action  Plan  for  Free  Movement  of  Workers,  the  Commission  undertook  to 
present,  by 
simplifying 
Regulation (EEC) No  1408/71  on  the  coordination  of  social  security  schemes.14 
These rules have, moreover, been selected  for the third phase of the SLIM exercise. 

the  end  of  1998,  a  proposal 

revising  and 

for 

On  29 June  1998,l5  the  Council  adopted  part  of  the  Commission  proposal  of 
13 December  1991 to extend  the coordination  of social  security  schemes  to  special 
schemes  for  civil  servants.16  However,  the  section  on  students  and  non-employed 
persons is still under discussion. 

The Commission  is making  every  effort  to ensure  that  the proposals  for  extending 
the  practical  scope  of  Regulation  (EEC)  No  1408/71  to  early-retirement  schemes 
and to the maintenance of unemployment benefits, which are still pending before the 
Council,  are adopted  even  before  the  entry  into  force  of the  Treaty of Amsterdam. 
Moreover,  if  these  two  proposals  have  not  yet  been  adopted  by  the  Council,  the 
Commission  will  consider  incorporating  the  guidelines  they  contain  into  the 
proposal 
reforming  Regulation (EEC) No  1408/71  and 
Regulation (EEC) No 574/72. 

for  simplifying  and 

The  Panel's  report  also  emphasised  the  need  to  improve  information  to  citizens 
regarding their rights in connection with the coordination of social security schemes. 
In  this  respect,  the  Commission  departments  are  pursuing  a  global  information 
strategy  aimed  at citizens as a whole and at more specific  target groups such as the 
legal  professions  or  the  social  partners.  This  strategy  hinges,  in  particular,  on  the 
publication  of  various  guides  explaining  Community  rules  on  social  security, 
including those deriving from the case law of the Court.  1998 will be devoted to this 
campaign and will be marked by the launch of a quarterly news bulletin aimed at a 
very  wide  public  throughout  the  Community,  but  also  by  the  organisation  of 
seminars in each Member State, in which members of all the professions  involved in 
the application of the coordination rules will participate, the object being to trigger a 
debate  on the difficulties  connected  with  applying the rules  on the  coordination  of 

14  Regulation  (EEC)  No  1408/71  of  the  Council  of  14 June  1971  on  the  application  of  social  security 
schemes  to  employed  persons  and  their  families  moving  within  the  Community,  as  updated  by 
Council  Regulation  (EC) No  118/97 of 2 December  1996, OJ No L 28, 30 January  1997. 

15  Council  Regulation  (EC) No /98 of 29 June  1998. 

16  OJ No C 46, 20 February  1992. 

-7-

social security schemes at national  level. Finally, such a debate will make it possible 
to  contribute  to  the  discussions  under  way  on  reforming  and  simplifying  the 
coordination  rules,  which  will  constitute  an  important  step  towards  making 
Community  rules more transparent to the citizen. 

One  of  the  Panel's  recommendations  was  to  make  it  possible  for  computerised 
national  social  security  cards  to  be  read  in  any  Member State.  In  the  view  of  the 
Commission,  while  the  technology  required  for  their  introduction  by  the  social 
security  bodies  is available, such  a large-scale  introduction  would  come  up against 
many  administrative  and  organisational  problems,  such  as  standardisation  of  the 
information  and data to be stored on the card; linguistic problems; the complexity of 
national  and  Community  social  security  rules  and  the  substantial  differences 
existing  in  the  structure  of  the  relevant  institutions  in  each  Member State.  In 
addition,  efficient  use  of  a  card  replacing  certain  "E"  forms  implies  the  existence 
between those institutions of a telematic infrastructure  similar to that created by the 
banking  sector  prior  to  the  massive  introduction  of  bank  cards.  Modernisation 
projects  on the telematic  exchange  of data  in the social  security field have  made it 
possible  to establish  a  few  links  for  the telematic exchange of data on  forms  in the 
pensions sector.  I lowever, setting up the projects has meant a shift  in the objectives 
and  resources  of  the  relevant  institutions  of  the  Member  States.  The  Commission, 
while recognising the difficulties  and complexities of national situations, is studying 
the question and trying to propose solutions to the national authorities. 

Finally, in its Action Plan for Free Movement of Workers, the Commission  indicates 
that  it will  foster  cross-border  cooperation  by covering  specific  issues such as social 
security.  It  should  also  be  noted 
the  revision  of 
that 
Regulation (EEC) No 1612/68  makes  a  reference  to  cross-border  workers  in  a 
provision of a general nature.17 

the  proposal  for 

Attention  should  also be drawn  to the two judgments  delivered  on 28 April 1998 in 
Decker and Kohll,]* in which the Court considered that the prior authorisation required 
by a national  legislation  as a precondition  for  reimbursing  spectacles  purchased  and 
dental  treatment  carried  out  in  another  Member  State  was  inconsistent  with 
Community  law and,  in particular,  with the principle of the  free  movement of goods 
(Articles 30  and  36  of  the  EC  Treaty)  and  of  the  freedom  to  provide  services 
(Articles 59 and 60 of the  Treaty) in so far as such authorisation  was not required  for 
purchases  or  treatment  within  the  Member  Slate  in  question  and  in  the  absence  of 
appropriate justification based on general interest. 

In  its  Action  Plan  for  Free  Movement  of  Workers, the  Commission  also  indicates 
that,  like  the  High-Level  Panel,  it  is  in  favour  of  extending  the  right  to  family 
reunification to the following: 

17  Article 7a lays down that "Social, tax and other advantages enjoyed  by virtue of residence in a Member 
State  shall  not  be  refused  to  non-resident  workers  who  work  in  this  State  and  can  objectively  be 
considered to be in a situation comparable to that of a resident worker." 

18  Cases C-120/95 and C-158/96. 

-8-

-  children over 21 years of age who are not dependent on their parents and relatives 

in the ascending line who are not dependent on their children; 

-  unmarried  partners  of  Community  workers,  provided  that  the  legislation  of  the 
Member  State  in question  treats the unmarried  partner of a national  worker as a 
spouse. 

The Commission drew up proposals to this cil cet as far back as  1989.  Its proposal  for 
the 
revision  of  Regulation (EliC) No 1612/68  and  of  Directive 68/360/EEC 
incorporates  these  provisions  and  extends  the  right  of  residence  to  all  other  family 
members who are dependent on the worker or are living under his roof in the country 
from which he comes. 

It should be added that this proposal also contains provisions aimed at reinforcing the 
legal  status  of  the  members  of  a  worker's  family  in  order  to  facilitate  their  social 
integration  in  the  host  Member  State,  particularly  in  cases  where  the  marriage  is 
dissolved.  In  this  respect,  the  Panel's  Report  recommended  granting  a  right  of 
residence to a divorced spouse who is a third-country national. 

Chapter 7 of this review describes the steps taken to inform  and train the appropriate 
national authorities. 

On  8 October  1997 the Commission  adopted  a proposal  for  a Council  Directive on 
safeguarding  the  supplementary  pension  rights  of  employed  and  self-employed 
persons moving within the European  Union.19 The High-Level  Panel  had presented 
a special  report on this important question along with its main Report. This proposal 
covers the preservation  and transferability  of supplementary  pension  rights  and the 
possibility  for  a  worker  seconded  to  another  Member  State  to  continue  to  pay 
contributions to a supplementary  pension scheme in his Member State of origin. On 
4 June  1998 a political agreement was achieved in the Council on this proposal. 

4. 

TAX AND FINANCIAL STATUS 

In the field  of taxation, the Commission  is examining  the  Panel's  recommendations 
together with the representatives of the national  tax administrations and will propose 
initiatives as soon as possible, as stated in its Work Programme for 1998. 

In order  to  facilitate  cross-border  labour  mobility,  it makes  provision,  in  its  Action 
Plan  for  Free Movement of Workers, for  fostering  cross-border  cooperation  between 
the relevant administrations and social partners, particularly in the field of tax law.20 

In the light of the recommendations regarding vehicle-users who are penalised through 
double registration tax, the Commission has submitted to the Council a proposal for a 
Directive governing the tax treatment of private motor vehicles moved permanently to 
another Member State in connection with a transfer of residence or used temporarily in 

19  OJ No C 5,9 January 1998. 

20  See also footnote 17. 

a  Member  State  other  than  that  in  which  they  are  registered.21  This  proposal  was 
discussed  in  the  plenary  session  of  the  European  Parliament  on  17 June 1998.  It  is 
based  on  the principle  that  a vehicle which  has already  been  taxed  in the country  of 
origin  should  be exempt  from  registration  tax. There  is provision  for  a  consultation 
procedure  in cases where two national  administrations dispute the place o( residence. 
The proposal also lays down that Member States must register vehicles of Community 
nationals with not a normal residence but a secondary residence in their territory. 

As  regards  systems  for  the  declaration  of  financial  movements  above  a  certain 
threshold,  the  Commission  continues  to  deal  with  the  complaints  which  it  receives 
within  the  context  of  the  infringement  procedure  laid  down  in  Article  169  of  the 
EC Treaty  and  seeks appropriate  solutions with  the Member  States concerned  where 
the  requirements  connected  with  the  declaration  or  the  sanctions  applicable  appear 
excessive. 

5.  CULTURAL RIGHTS 

The Amsterdam  Treaty supplemented  Article  128(4) of the EC Treaty (Article  151 of 
the consolidated version) by specifying  that Community policies must take account of 
cultural aspects, particularly with a view to respecting and promoting the diversity of 
European cultures. Article  126 (Article  149 of the consolidated version) on education 
and youth has not, on the other hand, been amended (the Panel's Report suggested an 
amendment to this Article to make it possible to establish a Community system aimed 
at facilitating academic recognition of qualifications and periods of study). 

The three large-scale  action programmes on education, training and youth (Socrates, 
Leonardo da Vinci and Youth for Europe), which were adopted for a five-year  period 
ending  in  1999,  have  continued  to  contribute  to  the  development  of  a  European 
educational  area.  In this connection, on  12 November  1997, the Commission  adopted 
a  communication  entitled  "Towards a  Europe of knowledge",22  which  focuses, inter 
alia, on measures  to promote language skills and  understanding of different  cultures, 
as well as measures to encourage physical  mobility, including an extension of mutual 
recognition arrangements to all areas concerned.  In keeping with these guidelines, the 
Commission  adopted  proposals  on  26 May 1998  for  the  implementation  of  a  new 
generation  of  programme  in  the  field  of  education  (Socrates),  professional  training 
(Leonardo  da  Vinci)  and  youth,  which  will  apply  from  1  January  2000  until 
31 December 2004. These programmes include a large number of mobility  measures 
targeted  at different  groups of persons  according  to the objectives  sought.  This new 
generation  of  programme  should  enable  1.2  million  students,  200 000  teachers, 
400 000 young trainees and 660 000 young people under the youth programmes (i.e. a 
total  of 2.5 million  Europeans) to benefit  from  a programme  to encourage  mobility. 
These new programmes also provide for enhanced quality and accessibility by setting 
more specific  objectives,  more consistent  measures, simplification  of formalities  and 
decentralisation. 

21  OJ No C  108, 7 April  1998. 

22  COM(97) 563 final,  12 November  1997. 

-10-

In  the  field  of  vocational  training  and  apprenticeship,  the  Commission  drew  up  a 
proposal on  12 November  1997 for a Council Decision to promote European pathways 
for  work-linked  training,  including  apprenticeships.23  This  project  provides  for  the 
creation  of  a  "EUROPASSPORT-Training"  document  at  Community  level  with  a 
view to making cross-border training periods more transparent  and  visible. A budget 
of ECU 7.3 million has been earmarked for the 1999-2004 period. 

In the youth sector, on 27 December  1996, the Commission transmitted to the Council 
the  proposal  for  a  European Parliament  and  Council  Decision  establishing  the 
"European  Voluntary  Service"  programme.24  This  is  aimed  at  organising  a 
Community  programme  aimed  at  integrating  young  people  into  working  life  by 
allowing  them  to  participate  in  measures  of  value  to  society.  Since  the  relevant 
procedure is well under way, the proposal is expected to be adopted in the near future. 

The Panel's  Report  pointed  out that a specific  action  should  be developed  aiming to 
take better into account the special situation of artists and others active in the field of 
culture.  On  this  point,  the  first  European  Community  framework  programme  in 
support of culture (2000-2004)25 mentions this question specifically  and specifies that 
the Commission "will make a detailed inventory of the obstacles which impede artists 
and others active in the field of culture' free movement and transnational mobility". 

6. 

TlIK SPECIAL SITUATION OF THIRD-COUNTRY NATIONALS 

The  Panel's  recommendations  on  improving  the  situation  of  third-country  family 
members  of  a  citizen  of  the  Union  were  taken  into  account  in  the  proposal  for  a 
Council  Act establishing  the Convention  on the rules of admission  presented  by the 
Commission  on 30 July  1997.26 Article 25 of this proposal  provides that members of 
the  family  of  a  Union  citizen  who  has  not  used  his  or  her  right  of  free  movement, 
benefit  from  the same family  reunification  rules as those established  by  Community 
law.  In  addition,  persons  falling  within  the  scope  of  the  Convention  of  1951  on 
refugees  and stateless persons would benefit  from  the rights attached to the situation 
of third-country  nationals  installed  on a long-term  basis, pursuant to Chapter VIII of 
this proposal  for  a Convention  on admission.  Reference  should  also  be made  to the 
new Chapter of the Treaty of Amsterdam on " Progressive establishment of an Area of 
Freedom,  Security  and Justice" which  introduces  into the EC Treaty  a new Title IV 
(consolidated  version)  on  "Visas, asylum,  immigration  and  other  policies  related  to 
free movement of persons" 

23  COM(97) 572 final,  12 November 1997. 

24  OJ No C 302, 3 October 1997. 

25  Com (98), 266 final of 6 May  1998, See also the Commission staff working paper SEC (98), 837 of 14 

May  1998 "Culture, the Cultural  Industries and Employment" paragraph 2.1.3. 

26  Proposal  for  a  Council  Act  establishing  the  Convention  on  rules  for  the  admission  of  third-country 

nationals to the Member States, OJ No C 337, 7 November 1997. 

-11-

In  tandem  with  the  Action  Plan  on  Free  Movement  of  Workers  of  November  1997, a 
proposal  for  an  amendment  to  Regulation  (EEC)  No  1408/71  was  presented  by  the 
Commission  on  12 November  1997  with  a  view  to  allowing  third-country  nationals 
legally  residing  in a Member  State  to benefit  from  this  instrument.27 

The Panel's  Report  also emphasises  the  need  to clarify  the situation  of  third-country 
nationals employed  by a Community firm and  temporarily  seconded  by  that firm to 
another Member State in the context of a cross-border supply of services (Article 59 of 
the  EC  Treaty). In the  autumn  of 1997,  the  Commission  departments  informed  and 
consulted  the Member  States and professional  organisations  involved  at  Community 
level  on the Panel's recommendation  that  Community  action  be taken to reduce the 
obstacles  encountered  by  employers,  particularly  in  connection  with  visas  and 
residence  and  work  permits.  The  Commission  departments  are  scrutinising  the 
information  and  comments  received  with  a  view  to  taking  them  into  account  in 
drafting a possible proposal for a Directive. 

As  regards  the  effects  of  external  agreements  signed  by  the  Community  on  the 
situation of third-country  nationals, reference  may be made to the judgment delivered 
by  the  Court  on  15 January  1998  in  Ihihahenini, which  applies  the  principle  of 
non-discrimination  to  the  granting  of  a  disability  allowance  to  the  spouse  of  an 
Algerian  worker on the ground  that Article 39 of the  EEC-Algeria Agreement  has a 
direct  effect.28 

7. 

PROTECTION OF THE RIGHTS OF INDIVIDUALS 

The Panel's Report emphasised  the right of access to information,  legal  information, 
raising  the  awareness  of  the  legal  profession  and  improving  the  legal  protection  of 
persons encountering difficulties  connected with free movement. 

firstly,  the right of citizens of the  Union to have access to information  has been laid 
down  by the  Treaty of Amsterdam  in the new Article  191a  of the  EC  Treaty (Article 
255 of the consolidated  version).  This provision establishes the principle of the right 
of access to the documents of the  European  Parliament, Council  and  Commission  in 
accordance  with  procedures  to  be  determined  following  the  entry  into  force  of  the 
Treaty. 

The  efforts  already  made  to  inform  and  advise  people  under  the  "Citizens  First" 
initiative will be developed further through the establishment of machinery for holding 
a dialogue with the citizens and with firms, as provided for by the Action Plan for the 
Single Market and presented to the Cardiff European Summit on 15 and 16 June 1998. 
The first phase of the "Citizens First" initiative covered the right to reside, work and 
study.  It affected  75 million people in Europe and 969 000 consulted the call centre 
and  Internet  site  direct.  The  second  phase, which  was  launched  in November 1997, 
deals  with  rights  in connection  with the  purchase  of  goods  and  services, travel  and 

27  OJN0C6,  10 January  1998. 

28  Case C-II3/97. 

-12-

equal  opportunities.  In  this  context,  information  is  also  provided  to  citizens  on  the 
remedies at their disposal both within and outside the courts. 

As  regards  the  objective  of  raising  the  awareness  of  those  involved  in  the  free 
movement  of persons, the  Karolus programme  for  the exchange  of national  officials 
has been  extended  until  the end  of  1999.24 This programme, which  includes  training 
and  information  measures,  is currently  the  subject  of a discussion  as  to  whether  its 
scope should be extended substantially in a subsequent period (Karolus 2000). 

The Commission recently launched the pilot phase of the Robert Schuman Project, the 
object of which is to develop a "Community reflex" among judges, public prosecutors 
and  lawyers.  To  this  end,  the  project  supports  training  and  information  initiatives 
which are aimed at raising awareness of Community law among the legal professions. 
Similarly,  the Jean  Monnet  Project  continues to expand  in the  university  context. In 
this connection, a substantial  number of measures are aimed at including the study of 
Community  law in the first two years of legal  studies (this lacuna was highlighted  in 
the  Panel's  Report). Finally, the (Jrotius programme  for  the training  and exchange of 
legal 
legal  practitioners  has  greatly  expanded  and  contributed 
cooperation, which automatically  has repercussions on improving the legal  protection 
of persons encountering problems connected with free movement. 

improved 

to 

Where the legal protection of citizens is concerned, the High-Level  Panel stated  that 
it was concerned that the Euro-Jus network remained at an embryonic stage despite the 
very useful  service it provided. It had since been decided to reinforce this network by 
allocating  more funds  to  it and  increasing  the number  of hours worked  by Euro-Jus 
lawyers. The overall budget for the network  amounts to ECU  552 000 for  1998 and 
there is provision for Euro-Jus lawyers to be available on average two days a week this 
year. Euro-Jus is a system for providing advice and assistance on an informal  basis to 
persons  confronted  with  a  problem  involving  the  interpretation  or  application  of 
Community law. 

The  question  of  a  legal  framework  for  the  exercise  of  associations'  activities  at 
Community  level  is still  pending before  the Council  on account  of its  links with the 
question  of employee participation  in the European  Company, which  was relaunched 
in the wake of the Davignon Report and has still not been resolved. 

The recommendation  that all departments dealing directly  with the free  movement of 
persons be placed under the responsibility  of one Member of the Commission  will be 
raised by the Commission departments when the new Commission is formed in 1999. 

Where remedies not involving the courts are concerned, it should be pointed out that, 
at Community level, the Commission's new internal rules require departments to keep 
complainants regularly informed of any action taken, in response to their complaint, in 
order to  initiate proceedings under Article  169 of the EC Treaty  and that the matter 
should not be closed without giving complainants an opportunity to express their point 

29  Decision  No  889/98/EC  of  the  European  Parliament  and  of  the  Council  of  7 April  1998  amending 
Council  Decision  92/481/EEC  on the  adoption  of  an  action  plan  for  the  exchange  between  Member 
State  administrations  of  national  officials  who  are  engaged  in  the  implementation  of  Community 
legislation  required to achieve the internal market, OJ No C 26, 28 April  1998. 

-13-

of view.  The European Ombudsman has recently had to intervene on several  occasions 
in  this  connection.  At  national  level,  a  network  of  officers  has  been  established  to 
mediate between national  Ombudsmen and the European Ombudsman.10 

30  See point 5 of the 1996 annual report of the European Ombudsman, OJ No C 272, 8 September 1997. 

-14-

ISSN 0254-1475 

COM(98) 403 final 

DOCUMENTS 

EN 

01  05  06 

Catalogue number  : CB-CO-98-433-EN-C 

ISBN 92-78-37899-2 

Office  for Official  Publications  of the European  Communities 

L-29X5  Luxembourg