THAT COVERED BY THE OTHER CO-INSURERS .
25 IN THOSE CIRCUMSTANCES THE REQUIREMENTS AT ISSUE , NAMELY THAT THE LEADING INSURER MUST BE AUTHORIZED IN THE STATE IN WHICH THE SERVICE IS PROVIDED AND HAVE A PERMANENT ESTABLISHMENT THERE CANNOT BE JUSTIFIED IN RESPECT OF AN INSURANCE UNDERTAKING WHICH IS ESTABLISHED AND AUTHORIZED IN ANOTHER MEMBER STATE AND WHICH WISHES TO CONDUCT ITS BUSINESS AS A LEADING INSURER PURSUANT TO DIRECTIVE 78/473 SOLELY IN THE CONTEXT OF THE PROVISION OF SERVICES . SUCH REQUIREMENTS ARE CONTRARY TO ARTICLES 59 AND 60 OF THE TREATY .
26 IT MUST THEREFORE BE HELD THAT THE FRENCH REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLES 59 AND 60 OF THE EEC TREATY BY REQUIRING COMMUNITY INSURANCE UNDERTAKINGS TO BE ESTABLISHED IN FRANCE AND TO UNDERGO A PROCEDURE FOR PRIOR AUTHORIZATION IN ORDER TO BE ABLE TO OFFER COMMUNITY CO-INSURANCE SERVICES IN FRANCE AS A LEADING INSURER .
B - THE COMMISSION ' S SECOND HEAD OF CLAIM
27 IN THE COURSE OF THE PROCEEDINGS BEFORE THE COURT , THE COMMISSION STATED THAT ITS SECOND HEAD OF CLAIM WAS NOT DIRECTED AGAINST THE LEVEL OF THRESHOLDS FIXED IN FRANCE FOR CERTAIN RISKS WHICH ARE THE SUBJECT OF COMMUNITY CO-INSURANCE NOR AGAINST THE FACT THAT THAT LEVEL WAS FIXED BY FRANCE UNILATERALLY , BUT AGAINST THE VERY EXISTENCE OF SUCH THRESHOLDS . THAT HEAD OF CLAIM IS THEREFORE BASED ON THE COMMISSION ' S GENERAL PROPOSITION THAT ANY REQUIREMENT OF AUTHORIZATION AND ESTABLISHMENT IN RELATION TO THE FREEDOM TO PROVIDE SERVICES IN THE INSURANCE SECTOR IS CONTRARY TO ARTICLES 59 AND 60 OF THE TREATY . SINCE , IN THE COMMISSION ' S VIEW , THERE CAN BE NO DIFFERENCE , WITH REGARD TO THOSE TWO REQUIREMENTS , BETWEEN CO-INSURANCE WHICH IS SUBJECT TO THE PROVISIONS OF DIRECTIVE 78/473 AND CO-INSURANCE WHICH IS NOT , MEMBER STATES CANNOT , WHEN THEY TRANSPOSE THE DIRECTIVE INTO NATIONAL LAW , LIMIT EXEMPTION FROM THE REQUIREMENTS OF ESTABLISHMENT AND AUTHORIZATION TO CO-INSURERS WHO CONDUCT INSURANCE BUSINESS WHICH , ACCORDING TO THE VIEW OF EACH STATE , COMES WITHIN THE SCOPE OF THE DIRECTIVE .
28 IN THAT RESPECT IT SHOULD BE RECALLED THAT IN CONSIDERING THE FIRST HEAD OF CLAIM THE COURT HAS HELD THAT IN THE COMMUNITY CO-INSURANCE SECTOR TO WHICH DIRECTIVE 78/473 REFERS BOTH THE REQUIREMENT OF AUTHORIZATION AND THE REQUIREMENT OF ESTABLISHMENT ARE CONTRARY TO COMMUNITY LAW , WHEREAS , IN ITS JUDGMENT DELIVERED THIS DAY IN CASE 205/84 COMMISSION V FEDERAL REPUBLIC OF GERMANY ( 1986 ) ECR PP . 3758 AND 3793 , THE COURT HELD THAT , OUTSIDE THAT SECTOR AND IN THE PRESENT STATE OF COMMUNITY LAW , THE REQUIREMENT OF AUTHORIZATION MUST BE REGARDED AS JUSTIFIED . IT MUST THEREFORE BE RECOGNIZED THAT IT IS NECESSARY TO ESTABLISH A CLEAR CRITERION FOR DISTINGUISHING BETWEEN COMMUNITY CO-INSURANCE AND OTHER INSURANCE BUSINESS ; THE CONTESTED THRESHOLDS REPRESENT JUST SUCH A CRITERION . SINCE THE EXISTENCE OF SUCH THRESHOLDS IS ACCORDINGLY JUSTIFIED