1 By application lodged at the Court Registry on 13 April 1992, the Commission of the European Communities brought an action under Article 169 of the EEC Treaty for a declaration that, by maintaining in force legislation which denies workers who are nationals of other Member States and are employed in Luxembourg the right to vote and to stand as candidates for membership in elections organized by the Luxembourg occupational guilds, the Grand Duchy of Luxembourg has failed to fulfil its obligations under Article 48(2) of the EEC Treaty and Article 8(1) of Council Regulation (EEC) No 1612/68 of 15 October 1968 on freedom of movement for workers within the Community (OJ, English Special Edition 1968 (II), p. 475).
2 The Luxembourg Law of 4 April 1924, as it applied when these proceedings were initiated, provides for the creation of occupational guilds with the specific task of protecting the interests of their members. All workers employed in the Grand Duchy of Luxembourg, irrespective of nationality, are compulsorily affiliated to such guilds. The members and alternates of each guild are appointed by election. Only persons possessing Luxembourg nationality are entitled to vote or stand as candidates for membership in such elections.
3 In accordance with the procedure laid down in Article 169 of the Treaty the Commission, by letter of 27 November 1989, gave to the Luxembourg Government formal notice on 27 November 1989 to submit its observations on the compatibility with Community law of the Law of 4 April 1924 which denies the right to vote and stand for election in occupational guilds to nationals of other Member States employed in Luxembourg.
4 Since it had received no reply from the Luxembourg authorities, the Commission, as on 23 October 1990, drew up and notified a reasoned opinion, as provided for in Article 169 of the Treaty, requesting the Grand Duchy of Luxembourg to take the measures necessary in order to comply with the opinion within one month from its notification. In the absence of a reply to that reasoned opinion, the Commission brought these proceedings for a declaration that Luxembourg had failed to fulfil its obligations under the Treaty.
5 The Commission considers that the denial to workers who are nationals of other Member States of the right to vote and to stand as candidates in elections for membership of occupational guilds is contrary to the prohibition of discrimination on grounds of nationality. In the field of trade union rights that principle means in particular that all workers, be they nationals of the host State or of other Member States, may participate in elections organized by bodies such as the Luxembourg occupational guilds which, whilst not being trade-union organizations in the strict sense, nevertheless perform similar functions as regards the defence and representation of workers' interests. On that point the Commission refers to the judgment in Case C-213/90 ASTI [1991] ECR I-3507 in which, also, the Law of 4 April 1924 was called in question.
6 The Luxembourg Government waived its right to submit pleadings on the substance of the case and at no time contested the failure to fulfil obligations. It nevertheless pointed out that a reform of the legislation on occupational guilds along the lines indicated by the Commission was in progress.
7 It is not in dispute that when the period laid down in the reasoned opinion expired the Luxembourg legislation on occupational guilds did not comply with the requirements of Community law.
8 That being so, a declaration must be granted in the terms sought by the Commission.