TO THE DIRECTIVE AND THE EVENTS WHICH PRECEDED THE COMMENCEMENT OF THESE PROCEEDINGS .
3 COUNCIL DIRECTIVE 77/780 CONSTITUTES THE FIRST STEP IN THE HARMONIZATION OF BANKING STRUCTURES AND THE SUPERVISION THEREOF . THE PURPOSE OF SUCH HARMONIZATION IS TO PERMIT THE GRADUAL ATTAINMENT OF FREEDOM OF ESTABLISHMENT FOR CREDIT INSTITUTIONS AND THE LIBERALIZATION OF BANKING SERVICES . IN THAT RESPECT THE DIRECTIVE INTRODUCES CERTAIN MINIMUM CONDITIONS FOR THE AUTHORIZATION OF CREDIT INSTITUTIONS WHICH ALL MEMBER STATES MUST OBSERVE . IN ORDER TO FACILITATE THE TAKING UP AND PURSUIT OF BUSINESS AS A CREDIT INSTITUTION THE DIRECTIVE AIMS IN PARTICULAR TO REDUCE THE DISCRETION ENJOYED BY CERTAIN SUPERVISORY AUTHORITIES IN AUTHORIZING CREDIT INSTITUTIONS .
4 ARTICLE 14 ( 1 ) OF THE DIRECTIVE PROVIDES THAT MEMBER STATES MUST BRING INTO FORCE THE MEASURES NECESSARY TO COMPLY THEREWITH WITHIN 24 MONTHS OF ITS NOTIFICATION . THAT PERIOD EXPIRED IN THE PRESENT CASE ON 15 DECEMBER 1979 . AS A RESULT OF THE DIRECTIVE A BILL WAS PREPARED IN ITALY AND WAS BEFORE THE ITALIAN PARLIAMENT WHEN THE COMMISSION ' S ACTION FOR A DECLARATION WAS BROUGHT ; THE BILL DELEGATES TO THE EXECUTIVE THE POWER TO ADOPT MEASURES TO IMPLEMENT THE DIRECTIVE .
5 IN ITS DEFENCE THE ITALIAN GOVERNMENT EMPHASIZES THAT COMPARISON OF THE NATIONAL RULES IN FORCE IN ITALY WITH THE MAIN PROVISIONS OF THE DIRECTIVE REVEALS SUBSTANTIAL AGREEMENT WHICH SHOULD NOT BE UNDERESTIMATED . IN THE VIEW OF THE ITALIAN GOVERNMENT , THE FACT THAT THE AUTHORITIES SUPERVISING CREDIT INSTITUTIONS COMPLY IN PRACTICE WITH THE COMMUNITY RULES SHOWS THAT THE NATIONAL PROVISIONS APPLIED BY THOSE AUTHORITIES ACCORD WITH THE PROVISIONS OF THE DIRECTIVE .
6 HOWEVER , THE ITALIAN GOVERNMENT INVOKED THAT ARGUMENT ONLY DURING THE COURSE OF THE ACTION BEFORE THE COURT AND CONFINED ITSELF DURING THE PROCEDURE PRIOR TO ACTION TO STATING THAT A LAW WAS IN PREPARATION TO ENABLE THE GOVERNMENT TO ADOPT THE NECESSARY MEASURES .
7 THAT MANNER OF PROCEEDING DOES NOT COMPLY WITH THE OBLIGATION IMPOSED BY ARTICLE 14 ( 1 ) OF DIRECTIVE 77/780 , WHICH REQUIRES MEMBER STATES IMMEDIATELY TO SUPPLY THE COMMISSION WITH ALL NECESSARY INFORMATION CONCERNING THE MEASURES WHICH HAVE BEEN TAKEN TO COMPLY WITH THE DIRECTIVE .
8 HOWEVER , THE ACTION BROUGHT BY THE COMMISSION SEEKS SOLELY A FINDING THAT THE ITALIAN REPUBLIC FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY ' ' BY FAILING TO ADOPT WITHIN THE PRESCRIBED PERIOD THE PROVISIONS NECESSARY TO COMPLY WITH COUNCIL DIRECTIVE 77/780/EEC ' ' AND THUS DOES NOT CONCERN THE OBLIGATION UNDER ARTICLE 14 OF THE DIRECTIVE TO SUPPLY INFORMATION . IT IS THUS WITHIN THOSE LIMITS THAT THE ITALIAN GOVERNMENT ' S SUBMISSION MUST BE ANSWERED .
9 IN THAT RESPECT IT APPEARS THAT BOTH THE ITALIAN BANKING LEGISLATION IN FORCE AND THE DIRECTIVE ESTABLISH THE FUNDAMENTAL PRINCIPLE THAT CREDIT INSTITUTIONS REQUIRE AUTHORIZATION . NEVERTHELESS , AS THE ITALIAN GOVERNMENT ITSELF RECOGNIZES , ITALIAN NATIONAL LAW , AS DISTINCT FROM THE DIRECTIVE , DOES NOT LAY