CELEX: C1998/094/32
Language: en
Date: 1998-03-28 00:00:00
Title: Removal from the register of Case C-72/97

28.3.98                  EN                  Official Journal of the European Communities                                        C 94/15
Ð point 2 of the statement infringes Article 73b of the                      fulfil its obligations under Articles 48 and 52 of the
     EC Treaty and Council Directive 88/361/EEC, in that                     EC Treaty and Article 13 of the said Regulation,
     it requires a maturity of at least two years for
     securities issues by foreign credit institutions on the            Ð order the French Republic to pay the costs.
     German market, and is thus a hindrance to such issues
     compared with issues by German credit institutions.
                                                                        Pleas in law and main arguments adduced in support:
Contrary to the view of the German Government, in
                                                                        The social debt repayment contribution (CRDS) was
accordance with the scheme of Article 73b et seq. and the
                                                                        introduced by Regulation No 96-50 of 24 January 1996
wording of the first indent of Article 109e(2)(a),
                                                                        and the proceeds of the contribution are allocated to the
restrictions of the free movement of capital may not be
                                                                        Caisse d'Amortissement de la Dette Sociale (Social Debt
justified on the ground of requirements of Member States'
                                                                        Redemption Fund) established by that Regulation. All
monetary policy. However, the restrictions contained in
                                                                        natural persons regarded as resident in France under
the statement are in any event disproportionate, since Ð
                                                                        French tax law are liable to pay the CRDS in particular
as shown by the example of numerous other Member
                                                                        on their employment income or substitute income.
States Ð money supply can be controlled without
                                                                        Taxable persons resident in France who draw their
adopting measures which restrict the free movement of
                                                                        employment income or substitute income from another
capital.
                                                                        Member State are thus subject to the CRDS.
Contrary to the view of the German Government, a rule
                                                                        Since the CRDS is intended to contribute to the financing
which imposes on domestic banks only a minimum reserve
                                                                        of all sectors of the general social security scheme in
obligation for bonds issued exclusively in Germany affects
                                                                        France, it is a social security contribution within the scope
internal factual situations only; there is thus no
                                                                        of Regulation (EEC) No 1408/71.
discrimination relevant from the point of view of
Community law.
                                                                        The levying of the CRDS on the employment income and
(1) Statement of the Deutsche Bundesbank on German mark                 substitute income of persons who reside in France but
    issues of 3 July 1992.                                              work in another Member State, such as frontier-zone
(2) Council Directive 88/361/EEC of 24 June 1988 for the                workers, calls into question the single legislation rule,
    implementation of Article 67 of the Treaty (OJ L 178,               inasmuch as the CRDS intended for the financing of social
    8.7.1988, p. 5).                                                    security schemes is levied on income which has already
(3) Second Council Directive of 15 December 1989 on the                 been subjected to all the social contributions of the State
    coordination of laws, regulations and administrative                of employment, which is the only State competent in
    provisions relating to the taking up and pursuit of the business
                                                                        social security matters in accordance with Article 13 of
    of credit institutions and amending Directive 77/780/EEC (OJ
    L 386, 30.12.1989, p. 1).                                           Regulation (EEC) No 1408/71.
                                                                        Levying the CRDS on such income on which social
                                                                        contributions have already been levied in the State of
                                                                        employment is incompatible with the said Regulation and
                                                                        constitutes a barrier to the exercise of the fundamental
Action brought on 12 February 1998 by the Commission                    freedoms guaranteed under Articles 48 and 52 of the EC
of the European Communities against the French Republic                 Treaty.
                           (Case C-34/98)
                                                                        (1) Council Regulation (EEC) No 1408/71 of 14 June 1971 on the
                            (98/C 94/31)                                    application of social security schemes to employed persons, to
                                                                            self-employed persons and to members of their families
                                                                            moving within the Community (OJ, English Special Edition
An action against the French Republic was brought before                    1971, p. 416).
the Court of Justice of the European Communities on
12 February 1998 by the Commission of the European
Communities, represented by Peter Hillenkamp, Legal
Adviser, and HeÂleÁne Michard, of its Legal Service, acting
as Agents, with an address for service in Luxembourg at
the office of Carlos Gómez de la Cruz, Wagner Centre,                           Removal from the register of Case C-72/97 (1)
Kirchberg.
                                                                                                   (98/C 94/32)
The Commission claims that the Court should:
                                                                        By order of 18 November 1997, the President of the
Ð declare that, by applying the social debt repayment                   Court of Justice of the European Communities ordered the
     contribution (CRDS) to the employment income and                   removal from the register of Case C-72/97: Commission of
     substitute income of employed and self-employed                    the European Communities v. Kingdom of Spain.
     persons resident in France but working in another
     Member State, who by virtue of Regulation (EEC)                    (1) OJ C 108, 5.4.1997.
     No 1408/71 (1) are not subject to French social
     security legislation, the French Republic has failed to