ITS TERRITORY TO OBTAIN AN AUTHORIZATION NOT ONLY IN RESPECT OF BUSINESS CONDUCTED ON ITS TERRITORY BUT ALSO FOR BUSINESS CONDUCTED IN OTHER MEMBER STATES IN THE CONTEXT OF THE PROVISION OF SERVICES . ON THE CONTRARY , SUCH A REQUIREMENT IS CONSISTENT WITH THE PRINCIPLES LAID DOWN IN DIRECTIVE 73/239 . ARTICLE 7 ( 1 ) OF THAT DIRECTIVE PROVIDES THAT AN INSURANCE UNDERTAKING MAY REQUEST AND OBTAIN AN OFFICIAL AUTHORIZATION TO CARRY ON ITS BUSINESS ONLY IN A PART OF THE NATIONAL TERRITORY . IN THAT CASE , IF IT WISHES TO EXTEND ITS BUSINESS BEYOND SUCH PART , IT IS REQUIRED UNDER ARTICLE 6 ( 2 ) ( D ) TO REQUEST FURTHER AUTHORIZATION AND , IN ACCORDANCE WITH ARTICLE 8 ( 2 ), A NEW SCHEME OF OPERATIONS MUST BE SUBMITTED WITH THAT REQUEST .
29 THOSE PROVISIONS , READ IN CONJUNCTION WITH THE RULES ON THE SUPERVISION OF THE FINANCIAL POSITION OF THE UNDERTAKINGS CONCERNED AND ON THE WITHDRAWAL OF AUTHORIZATIONS , SHOW THAT THE DIRECTIVE IS BASED ON THE PRINCIPLE THAT THE STATE OF ESTABLISHMENT IS AUTHORIZED TO TAKE INTO ACCOUNT ALL THE BUSINESS ACTIVITIES OF UNDERTAKINGS CONSTITUTED WITHIN ITS TERRITORY IN ORDER TO BE ABLE TO CARRY OUT AN EFFECTIVE SUPERVISION OF THE CONDITIONS IN WHICH SUCH ACTIVITIES ARE PURSUED . MOREOVER , ARTICLE 8 ( 1 ) OF THE PROPOSAL FOR A SECOND DIRECTIVE EXPRESSLY PROVIDES THAT ANY UNDERTAKING WISHING TO EXTEND ITS BUSINESS BY WAY OF THE EXERCISE OF FREEDOM TO PROVIDE SERVICES TO THE TERRITORY OF ANOTHER MEMBER STATE MUST SEEK AUTHORIZATION FOR THAT PURPOSE FROM THE SUPERVISORY AUTHORITY OF THE AUTHORIZING MEMBER STATE .
30 THAT PART OF THE HEAD OF CLAIM MUST THEREFORE FAIL .
31 WITH REGARD TO THE ALLEGED DISCRIMINATION BETWEEN INSURANCE UNDERTAKINGS ESTABLISHED IN DENMARK AND DANISH BRANCHES OF INSURANCE UNDERTAKINGS ESTABLISHED IN ANOTHER MEMBER STATE , IT IS TRUE THAT AS A RESULT OF THE STRUCTURE OF THE DANISH DECREES IN QUESTION , THE RULES CONCERNING THE AUTHORIZATION TO EXTEND INSURANCE BUSINESS OUTSIDE THE NATIONAL TERRITORY ARE CONTAINED IN SEPARATE PROVISIONS ACCORDING TO WHETHER THE UNDERTAKINGS CONCERNED HAVE THEIR REGISTERED OFFICE IN DENMARK OR WHETHER THEY HAVE ONLY A BRANCH IN THAT STATE .
32 THE DANISH GOVERNMENT HAS NEVERTHELESS DENIED THAT THOSE PROVISIONS ARE DISCRIMINATORY . IT HAS EXPLAINED IN THAT RESPECT THAT , AS APPLIED IN PRACTICE , THE LEGISLATION COMPLAINED OF IN FACT SUBJECTS THE BRANCHES OF UNDERTAKINGS ESTABLISHED IN OTHER MEMBER STATES TO MORE FLEXIBLE RULES THAN THOSE WHICH APPLY TO UNDERTAKINGS ESTABLISHED IN DENMARK BECAUSE THE FORMER ARE ALREADY SUBJECT TO THE RULES OF THEIR STATE OF ORIGIN . THE COMMISSION , FOR ITS PART , HAS NEITHER REFUTED NOR EVEN ATTEMPTED TO REFUTE THE DANISH GOVERNMENT ' S CONTENTION IN THAT RESPECT . IT HAS MERELY ASSERTED THAT PRIMA FACIE IT WOULD APPEAR THAT THE CONDITIONS FOR OBTAINING THE AUTHORIZATION ARE MORE FAVOURABLE TO DANISH UNDERTAKINGS THAN TO BRANCHES OF FOREIGN UNDERTAKINGS AND THAT IT IS FOR THE