C-58/98
ECLI:EU:C:1999:591
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- Súdny dvor Európskej únie
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- 61998CC0058
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CORSTEN
OPINION OF ADVOCATE GENERAL COSMAS delivered o n 3 0 N o v e m b e r 1 9 9 9 *
Table of contents
I — Introduction I - 7921 II — Legal framework I - 7922 A — Community law I - 7922 B — National law I - 7925 III — Facts I - 7926 IV — The question referred for a preliminary ruling I - 7927 V — The reply to the question referred for a preliminary ruling I - 7927 A — Formulation of the question referred for a preliminary ruling I - 7928 B — Substance I - 7928 (a) Requirement to be entered on the Skilled Trades Register under German law I - 7928 (b)Directive 64/427 I-7930 (c) Article 59 et seq. of the Treaty I - 7935 VI — Conclusion I - 7941
I — Introduction question to the Court on the interpretation of the rules of Community law regarding freedom to provide services. The Court is principally asked whether and to what 1. By the present reference for a prelimin- degree a Member State is able to require, ary ruling pursuant to Article 177 of the as a condition for the provision of skilled EC Treaty (now Article 234 EC), the trade services (laying of composition floors) Amtsgericht Heinsberg (Local Court, in its territory by an undertaking allowed Heinsberg) (Germany) has submitted a to pursue its activity in the Member State in which it is established, that it be entered on its national skilled trades register. ° Original language: Greek.
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I I — Legal framework "Services" shall in particular include:
A — Community law
2. The first paragraph of Article 59 of the EC Treaty (now, after amendment, the first paragraph of Article 49 EC) provides: (c) activities of craftsmen;
'Within the framework of the provisions set out below, restrictions on freedom to provide services within the Community shall be progressively abolished during the transitional period in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended.' Without prejudice to the provisions of the Chapter relating to the right of establish- ment, the person providing the service may, in order to do so, temporarily pursue his activity in the State where the service is 3. Article 60 of the EC Treaty (now Arti- provided, under the same conditions as are cle 50 EC) provides: imposed by that State on its own nationals.'
'Services shall be considered to be "ser- vices" within the meaning of this Treaty 4. In addition, according to Article 66 of where they are normally provided for the EC Treaty (now Article 55 EC), the remuneration, in so far as they are not provisions of Articles 55 to 58 of the EC governed by the provisions relating to Treaty (now Articles 45 EC to 48 EC) are freedom of movement for goods, capital to apply to the subject-matter governed by and persons. Chapter 3.
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5. Article 56(1) of the EC Treaty (now, which was recently repealed by Directive after amendment, Article 46(1) EC) pro- 1999/42/EC,4 provided for a system of vides that: mutual recognition of experience acquired in the Member State from which the person in question comes and was applicable both to establishment and provision of services in another Member State.
'The provisions of this Chapter and mea- sures taken in pursuance thereof shall not prejudice the applicability of provisions 7. In particular, Article 3 of Directive laid down by law, regulation or adminis- 64/427 provided that: trative action providing for special treat- ment for foreign nationals on grounds of public policy, public security or public health.'
'1. Where, in a Member State, the taking up or pursuit of any activity referred to in Article 1(2) is dependent on the possession of general, commercial or professional knowledge and ability, that Member State shall accept as sufficient evidence of such 6. On 18 December 1961, the Council knowledge and ability the fact that the adopted, on the basis of Articles 54 and activity in question has been pursued in 63 of the EC Treaty (now, after amend- ment, Articles 44 EC and 52 EC), two General Programmes for the abolition of 4 — See Article 11(1) of and Annex B to Directive 1999/42/EC restrictions on freedom of establishment 1 of the European Parliament and of the Council of 7 June 1999 establishing a mechanism for the recognition of and on freedom to provide services.2 In qualifications in respect of the professional activities covered by the Directives on liberalisation and transitional order to implement those programmes and measures and supplementing the general systems for the because of the lack of the necessary coor- recognition of qualifications (OJ 1999 L 201, p. 77). In that connection, it is worth pointing out that the repeal of dination of national regulations, the Coun- Directive 64/427 docs not affect the usefulness of an interpretation of its provisions in the present case, in that, cil adopted Directive 64/427/EEC of 7 July notwithstanding its transitional nature, the directive in 1964 laying down detailed provisions con- question was applicable at the time when the events forming the factual content of the case in the main proceedings took cerning transitional measures in respect of place, in particular as regards the laying of composition floors. Indeed, in accordance with Article 6 of the directive, activities of self-employed persons in man- its provisions remained in force until the entry into force of ufacturing and processing industries falling the provisions relating to the coordination of national rules concerning the taking up and pursuit of the activities to within ISIC Major Groups 23-40 (Industry which the directive refers (see Article 1(2) of the directive). and small craft industries).3 That directive, As the Commission indicates in its written observations, neither Council Directive 89/48/EEC of 21 December 1988 on a general system for the recognition of higher-education diplomas awarded on completion of professional education and training of at least three years duration (OJ 1989 L19, p. 16), nor Council Directive 92/51/EEC of 18June 1992 on 1 — Official Journal 1962 No 2, p. 36. a second general system for the recognition of professional 2 — Official Journal 1962 No 2, p. 32. education and training to supplement Directive 89/48/EEC (OJ 1992 L 209, p. 25) replaced Directive 64/427. 3 — OJ, English Special Edition 1963-1964, p. 148.
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another Member State for any of the professional body as fully satisfying its following periods: requirements.
(a) six consecutive years either in an inde- In the cases referred to in subparagraphs (a) pendent capacity or as a person respon- and (c) pursuit of the activity shall not have sible for managing an undertaking; or ceased more than 10 years before the date when the application provided for in Arti- cle 4(3) is made.'
(b) three consecutive years either in an independent capacity or as a person 8. In addition, according to Article 4 of responsible for managing an undertak- Directive 64/427: ing, where the beneficiary can prove that for the occupation in question he has received at least three years' pre- vious training, attested by a certificate recognised by the State, or regarded by the competent professional body as 'For the purpose of applying Article 3: fully satisfying its requirements; or
1. Member States in which the taking up and pursuit of any occupation referred to in (c) three consecutive years in an indepen- Article 1(2) is subject to the possession of dent capacity, where the beneficiary general, commercial or professional knowl- can prove that he has pursued the edge or ability shall, with the assistance of occupation in question for at least five the Commission, inform the other Member years in a non-independent capacity; or States of the main characteristics of that occupation (description of the activities covered by the occupation).
(d) five consecutive years in a managerial capacity, not less than three years of which were in technical posts with 2. The competent authority designated for responsibility for one or more depart- this purpose by the country whence the ments of the undertaking, where the beneficiary comes shall certify what profes- beneficiary can prove that for the sional activities were actually pursued by occupation in question he has received the beneficiary and the duration of those at least three years' previous training activities. Certificates shall be drawn up attested by a certificate recognised by having regard to the official description of the State or regarded by the competent the occupation in question supplied by the
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Member State in which the beneficiary 11. Paragraph 8 of the HandwO provides wishes to pursue such occupation, whether that in exceptional cases authorisation to permanently or temporarily. be entered on the Skilled Trades Register (exceptional authorisation) is to be granted if the applicant is able to show the knowl- edge and skill required to pursue the skilled trade to be carried on by him in an independent capacity. 3. The host Member State shall grant authorisation to pursue the activity in question on application by the person concerned, provided that the activity certi- fied conforms to the main features of the description of the activity communicated pursuant to paragraph 1 and provided that 12. In addition, according to Paragraph 9 any other requirements laid down by the of the HandwO, within the framework of rules of that State are satisfied.' the application of European Community directives relating to freedom of establish- ment and freedom to provide services, the Federal Minister for the Economy is authorised to determine the conditions under which nationals of the Member States may obtain exceptional authorisa- tion to be entered on the Skilled Trades B — National law Register apart from the cases provided for in Paragraph 8(1).
9. As the order for reference indicates, anyone practising a craft or trade in Germany must be entered on the 'Skilled Trades Register' (Paragraph 1(1), first sen- tence, of the Handwerksordnung (Skilled 13. Pursuant to Paragraph 9 of the Trades Order — 'the HandwO')). HandwO, regulations (Verordnung) were adopted on 4 August 1966 which trans- posed into German law the provisions of Articles 3 and 4(2) and (3) of Directive 64/427 ('the EC skilled trades rules').
10. In accordance with Paragraph 7 of the HandwO, any person who has passed the master's examination (Meisterprüfung) in the skilled trade to be carried on by him or in a related craft or trade, or who has obtained an exceptional authorisation in 14. As is indicated in the order for refer- accordance with Paragraphs 8 or 9 of the ence, the above rules provide that for HandwO, shall be entered on the Skilled foreign undertakings from Member States Trades Register. of the European Community the conditions
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for being entered on the Skilled Trades the EC skilled trades rules have been Register are as follows: fulfilled and forwards the certificate to the Regierungspräsident (President of the Land) together with an application by the tradesman for exceptional authorisation, in respect of which a fee of between DEM 300 and DEM 500 is payable. If the exceptional If the foreign contractor has completed an authorisation is granted, it is sent to the appropriate training, leading either to a tradesman's home address once the fee is master's examination (Meisterprüfung) or paid. He must then apply, with the excep- to a certificate of proficiency (Fachdiplom), tional authorisation, to the Chamber to be he must show that he has worked in his entered on the Skilled Trades Register. In country of origin either for a period of addition, he must produce a recent extract three years in an independent capacity or from the Business Register and pay an for a period of five years in a managerial application fee. A German skilled trades- capacity. If the foreign contractor does not man's card is then sent to him at his need a proficiency certificate or to pass an business address. From that point on, the examination in his country of origin in foreign tradesman is authorised to carry on order to carry on his trade, he must show skilled activities in Germany. that he has been doing so for at least six consecutive years in his country of origin. In no circumstances may such activity have ceased more than ten years earlier.
As the Commission indicates in its written observations, the above procedure seems to apply whether the skilled trade undertaking 15. As is also indicated in the order for intends to carry on its activities in Germany reference, the procedure for a foreign on a long-term basis or only temporarily. undertaking wishing to be entered on the German Skilled Trades Register on the basis of the above conditions is as follows:
m — Facts A specified authority in the country of origin (in the Netherlands: Hoofdbe- drijfschap Ambachten (Central Crafts and Trades Board)) must certify the period of time during which the activity has been 16. As part of a construction project in pursued and the qualifications acquired. Germany, Mr Corsten, who is a self- The tradesman must deliver the certificate, employed architect, entrusted the laying translated into German if appropriate, to of composition floors to a Netherlands the competent German Chamber of Trades undertaking whose registered office is in ('the Chamber') in person. The Chamber the Netherlands, which carries out the then checks that the conditions set out in laying of composition floors there lawfully
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and as a business, but is not entered on the IV — The question referred for a prelimin- Skilled Trades Register in Germany. ary ruling
20. The Amtsgericht Heinsberg, doubting 17. The Netherlands undertaking charges a that the abovementioned provisions of price for its work (per square metre of German law were compatible with Com- composition floor) that is considerably munity law on freedom to provide services, lower than German undertakings ask for stayed the proceedings before it, and by equivalent work. order of 13 February 1998, which was supplemented on 22 June 1998, submitted the following question to the Court of Justice for a preliminary ruling:
18. By a 'Bußgeldbescheid' (administrative order imposing a fine) of 2 January 1996, the competent German authority imposed on Mr Corsten a penalty of DEM 2 000 for 'Is it compatible with Community law on breach of Paragraph 2 of the Law against the freedom to provide services for a black market work (Gesetz zur Bekämp- Netherlands undertaking, which in the fung der Schwarzarbeit, 'the SchwArbG'). 5 Netherlands satisfies all the conditions for According to that Law (a combination of carrying on a commercial activity, to have the provisions of Paragraphs 2(1)(1) and to satisfy further — albeit purely for- 1(1)(3)), an administrative penalty is to be mal — conditions (in this case to be imposed upon anyone who entrusts work entered on the Skilled Trades Register) in to undertakings which are not entered on order to carry on that activity in Germany?' the German Skilled Trades Register. In that connection it is worth pointing out that in Germany the laying of composition floors constitutes a skilled trade activity.
V — The reply to the question referred for 19. Mr Corsten lodged an objection ('Ein- a preliminary ruling spruch') against the above order imposing an administrative penalty before the Amts- gericht Heinsberg.
21. I shall examine the substance of the 5 — By decision of 9 October 1995 it had also barred the question submitted for a preliminary ruling Netherlands undertaking front continuing to lay composi- tion floors in Germany. In an order of the same date it had further imposed a penalty of DEM 1 000 on the under- (B), after initially making certain observa- taking for breach of Paragraphs 1 and 117 of the HandwO. tions about its formulation (A).
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A — Formulation of the question referred on a commercial activity, must satisfy for a preliminary ruling further — albeit purely formal — condi- tions (in this case to be entered on the Skilled Trades Register) in order to carry on that activity in the host Member State.
22. Regarding the formulation of the ques- tion referred for a preliminary ruling, I would point out that, in the context of Article 177 of the Treaty, the Court does not pronounce upon the interpretation or B — Substance validity of national provisions, or on whe- ther those provisions are compatible with Community law, but provides the national court with all the necessary guidance on interpretation to enable that court to decide 24. In order to answer the question referred for itself whether a provision of national for a preliminary ruling it is first necessary law is compatible with the Community to analyse the requirement to be entered on rules. 6 the Skilled Trades Register which is imposed by the provisions of German law at issue (a). That analysis will establish the boundaries for, second, the interpretation sought by the national court of the relevant rules of Community law which safeguard the freedom to provide services, namely Directive 64/427(b) and Article 59 et seq. of the Treaty (c). 23. Consequently, it must be considered that the question referred for a preliminary ruling by the Amtsgericht Heinsberg con- cerns the question whether the rules of Community law on freedom to provide services and, in particular, Article 59 et seq. of the Treaty and Directive 64/427, are to be construed in such a way that they (a) Requirement to be entered on the conflict with national provisions of a Skilled Trades Register under German law Member State (the host Member State) according to which an undertaking which satisfies, in the Member State in which it is established, all the conditions for carrying 25. In order to ensure that the interpreta- tion requested of the rules of Community 6 — See, for example, Case 27/74 Demag [1974] ECR 1037, paragraph 8; Case 22/80 Boussac v Gerstenmeier [1980] law is appropriate and useful, it is neces- ECR 3427, paragraph J; Case C-69/88 Krantz [1990] ECR sary to determine exactly the content, the 1-583, paragraph 7; and Case C-204/90 Bachmann [1992] ECR I-249, paragraph 6. extent and in general the onerousness of the
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requirement that an undertaking be entered 27. That system, as described in the order on the Skilled Trades Register of the host for reference, 8establishes a two-stage pro- Member State, as that requirement appears cedure. In the first stage, the competent in the legal background to the case in the German authorities (the relevant Chamber main proceedings. In spite of the contrary and Regierungspräsident) check whether impression which could be created upon the essential conditions of the EC skilled first sight, such a determination is not trades rules are met, conditions which incompatible with the Court's lack of correspond to the substantive conditions jurisdiction to interpret national legal pro- in Article 3 of Directive 64/427, so that visions, 7because from a teleologicai point exceptional authorisation can be granted to of view this is not aimed at giving an the tradesman concerned. However, the interpretation of those provisions which possible grant of this authorisation by the would be objectively correct and binding Regierungspräsident does not guarantee upon the national court with regard to their entitlement to carry on the activities in application to the case in the main pro- question. Within the framework of a sec- ceedings, but simply at determining the ond stage of the procedure, the tradesman legal and factual framework in the light of concerned must make a further application which, taken as an example, the interpreta- to be entered on the Skilled Trades Register tion of the provisions of Community law is to the competent Chamber, producing the requested. exceptional authorisation, submitting a recent extract from the Business Register, and paying a further application fee. 9Only after completion of that second stage, that is, being entered on the Skilled Trades Register and the issue of a German skilled tradesman's card, is the foreign tradesman
8 — Sec above, point 1 5 of my Opinion. In its written observa- tions, and in particular at the hearing, Kreis Heinsberg cast doubt upon the correctness of the information supplied by the national coutt relating to the Getman legal framework. As far as that is concerned, it must be emphasised that the interpretation and exact determination of the national legal 26. The requirement for undertakings of framework in Germany falls within the competence of the national court, and that the Court of lustice is not in a other Member States to be entered on the position to reach a decision tin the doubts raised by Kreis domestic Skilled Trades Register in Ger- Heinsberg. In addition, as I shall indicate later when analysing the various issues, the new vetsion of national many if they intend to carry on their law which Kreis Heinsberg wishes to convey by means of the doubts it has expressed is not always entirely clear, and, activity in that Member State must be in certain respects, does not appear to be of use in answering interpreted within the framework estab- the questions on the interpretation of the Community law raised in the present case. The reply given by the Court to lished by the more general system of the the question referred for a preliminary ruling can thetefore only be based on the information provided to it by the HandwO and the EC skilled trades rules, national court. In any case, it falls to the latter court to cross-check the position in the light of the observations of which determine the procedure for recog- Kteis Heinsberg and, if it tevises its view, to adapt the nising experience acquired in other Mem- conclusions of the Court accordingly, on the basis that it can, if it considers it necessary, refer a further question for a ber States. preliminary ruling to the Court. 9 — According to Kreis Heinsberg, it is not necessary to submit a recent extract from the Business Register, nor to pay a fee to obtain the extract. It is a matter for the national coutt to 7 — Sec above, point 11 of my Opinion. investigate the correctness of those assertions.
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allowed to carry on skilled trade activities rate application procedure is required on in Germany. the part of the foreign tradesman. 10
(b) Directive 64/427 28. It follows from the above that entry on the Skilled Trades Register, which is stated in the order for reference to be provided for by German law and in respect of which the Court is requested to interpret the rules of 29. Directive 64/427 is intended 'to make it Community law regarding the freedom to easier to attain freedom of establishment provide services, presents the two following and freedom to provide services in a broad characteristics: range of industrial and small craft activities in the manufacturing and processing indus- tries, pending harmonisation of conditions for taking up those activities in the different Member States, which is an essential pre-
10 — On that point, it should be noted that Kreis Heinsberg stressed at the hearing that the presentation by the national court of the procedure for the recognition of experience under German law is erroneous in that it accepts that the tradesman concerned, presenting his exceptional author- Firstly, registration constitutes a formal isation, is requesting the relevant Chamber to enter him on requirement for the right to carry on skilled the Skilled Trades Register. Initially, Kreis Heinsberg maintained that there is a right to be entered on the trade activities in a Member State, such as Register without any further requirement of checking, provided the documentation is submitted. Consequently, if Germany. the competent administrative authority has granted an exceptional authorisation to be registered, it transmits that document to the Chamber which proceeds officially to register the entry on the basis of the exceptional author- isation. Subsequently, Kreis Heinsberg stressed that, although the exceptional authorisation and entry on the Skilled Trades Register constitute two separate adminis- trative acts and although it is correct that an application fee is payable for each one, it should be regarded asa single procedure. What is important is that the competent administrative authority takes the authorisation decision, having consulted the Chamber, which effects registration. Moreover, according to Kreis Heinsberg, anyone who requests exceptional authorisation to be registered obtains it, Decause national law so provides. To the extent to which I can claim to have understood the Secondly, registration is not an automatic procedure which Kreis Heinsberg describes, I consider that the latter does not essentially dispute the fact that, for consequence of the granting of exceptional registration on the Skilled Trades Register, which consti- authorisation to carry on a skilled trade tutes a separate administrative act, the foreign tradesman is required to make a separate application. What Kreis activity, because the authority which grants Heinsberg thus appears to mean, when it refers to automatic or official registration, is that, when the trades- the exceptional authorisation does not send man presents the exceptional authorisation, there is an obligation, that is, a mandatory duty, to enter him on the the details of the beneficiary of the grant Register. The fact, however, that there is a substantive directly to the relevant Chamber, so that he requirement to enter him does not obviate the obligation upon the tradesman to make a further, second application, can be entered without further formality on and that therefore removes the 'automatic' character of registration. the Skilled Trades Register; rather, a sepa-
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requisite for complete liberalisation in that the certificate issued by the original Mem- field.' 11 ber State. 12
30. Having regard to the above aim, Direc- tive 64/427 established a system of rules so Third, the Member States were to inform that the pursuit of an occupational activity each other of the principal characteristics in a particular Member State should be of legally safeguarded occupations, by recognised in another Member State within describing the activities covered. The host the framework of the freedom to provide Member State was to supply to the original services. Specifically, according to Article 4 Member State the description of the occu- of the Directive, the procedure for the pation to which the latter should have recognition of experience gained abroad regard when drawing up a certificate. The was to be based on the following principles: host Member State would have to grant authorisation to provide services when the activity certified coincided with the princi- pal characteristics of the description of the occupation and provided that any other requirements laid down by the rules of that State were satisfied.
First, the host Member State could make the pursuit of the relevant activity by undertakings from other Member States dependent upon prior authorisation.
31. Here it should be noted that at no point in the above system of rules determining the procedure for recognising experience in other Member States does it appear that Second, the host Member State was obliged any issue arises of incompatibility with the to issue such authorisation when the con- rules of primary Community law safe- ditions of Article 3 of the Directive were guarding the freedom to provide services. fulfilled, as well as any other requirement Moreover, in the few cases in which the laid down in that Member State's provi- Court has been concerned with the inter- sions. Whilst checking that those condi- tions were fulfilled, the host Member State was bound by the declarations contained in 12 — See on this point De Castro Freitas and Escallier, cited above, paragraph 29. However, as is mentioned in chat judgment, where there are objective factors which lead the host State to consider that the certificate produced contains manifest inaccuracies, that State may approach 11—See Joined Cases C-193/97 and C-194/97 De Castro the Member State of origin with a view to requesting Freitas and Escallier [1998] ECR I-6747, paragraph 19. additional information (paragraph 30).
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pretation of Directive 64/427 13 no such Commission also observes, a formal check issues have arisen. based on the certificate of the original Member State would not appear to justify a requirement that the application be made in person, nor the double-checking of that certificate by the competent Chamber and the Regierungspräsident. 14 The above make the whole procedure more difficult 32. Comparing the procedure for the and could potentially jeopardise the prac- recognition of experience in another Mem- tical effectiveness of the provisions of the ber State, such as has been laid down in Directive, as will be shown below regarding Germany, with the equivalent procedure the analysis of the second stage of the for recognition laid down by Directive procedure in German law, which relates 64/427, it must be accepted that, as far as directly to the disputed obligation to be the substantive elements of the first stage of entered on the Skilled Trades Register. the procedure in German law are con- cerned, questions of incompatibility do not appear to arise. From the description of German law given by the national court, there is no feature that could give rise to a presumption that the linked provisions of the HandwO and the EC skilled trades 34. In relation to that second stage, the rules diverged from the three abovemen- question of compatibility or not with tioned principles of the Directive which Directive 64/427 appears to be more com- determined the procedural framework for plex. recognition of the essential conditions for carrying on skilled trade activity in the host
Member State. In particular, it appears that the provisions of German law in fact base such recognition on the issue of an admin- istrative authorisation, which takes 35. First of all it must be pointed out that, account, as evidence of experience and in laying down the basic principles of the specific knowledge acquired, of the certifi- cate from the original Member State. 14 — On that point it is worth noting that, at the hearing, Kreis Heinsberg, whilst accepting that documentary evidence should be presented in German, doubted that the applica- tion had to be made in person, and insisted that it could be sent by post, either to the Chamber or to the competent administrative authority.
Furthermore, Kreis Heinsberg stressed that only the Regierungspräsident is competent to grant an exceptional registration authorisation, after hearing the Chamber concerned. Regarding the first point, it must be borne in mind that the 33. On the other hand, as far as the form of Court is not in a position to judge whether it is really necessary for an application to be made in person. As the first stage of the procedure is con- regards the second point, however, I believe that Kreis cerned, I consider that certain difficulties Heinsberg does not essentially dispute that — for advisory or decision-making purposes — duplicate checks on the can be pinpointed. Specifically, as the certificate from the original State are made by the competent Chamber and the competent administrative authority, despite the fact that the check is essentially formal, as, moreover, Kreis Heinsberg itself admitted Lastly, it should be noted that the fact that it is open to the 13 — Apart from the judgment in De Castro Freitas and tradesman to address himself either to the Chamber or to Escallier, cited above, see Case 115/78 Knoors [1979] the administrative authority does not prevent both of them ECR 399 and Case 130/88 Van der Biß [1989] ECR 3039. from being involved in the procedure in question.
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procedure for recognition of experience requirement to be entered in the Skilled acquired in another Member State, Direc- Trades Register, a fortiori a similar position tive 64/427 did not in principle prohibit the should be adopted. In other words, having host Member State from making the grant regard to the transitional character of of authorisation to pursue the activity in Directive 64/427 and the absence of har- question dependent upon other conditions, monisation as regards the taking up and different from those referred to in the pursuit of various activities in the Member
Directive. On the contrary, Article 4(3) of States, those States were in principle com- Directive 64/427 clearly provided for the petent to determine the procedural condi- possible imposition of such conditions by tions for the granting of authorisation to the host Member State. pursue the activities in question as well, even in a case in which those conditions did not fall within the scope of application of Article 56 of the Treaty relating to the protection of public policy, public security
or public health. 17 36. On this point, it is worth noting that, in any case, the Directive could not in princi- ple preclude the host State from being able to impose additional terms for the granting of authorisation to pursue the activities in question, whether those terms related to the substantive conditions for recognition of the right to pursue the activities in ques- 37. However, it cannot be doubted that the tion, or whether they related to the proce- Member States could not exercise their dure for recognition. As regards the case of above competence without being subject to terms relating to the substantive conditions, any controls, in other words, without the Court favoured this point of view in its restrictions under Community law.
As the decision in De Castro Freitas and Escal- Court indicated in De Castro Freitas and lier, 15 in which it held that, failing harmo- Escallier, 18as regards the substantive con- nisation of conditions for taking up and ditions for the recognition of the right to pursuing the activities in question, 'the provide services in host Member States, Member States remain, in principle, com- those States must, when exercising their petent to define the general, commercial or powers in that area, 'respect both the basic professional knowledge and ability neces- freedoms guaranteed by Articles 52 and 59 sary in order to engage in the activities in question and to require production of diplomas, certificates or other formal evi- 17 — Similarly, the Court has on the one hand stated that dence attesting that applicants possess such 'national rules which are not applicable to (the provision knowledge and ability.' 16 In that connec- of] services without discrimination as regards their origin are compatible with Community law only if they can he tion, I consider that, as regards the condi- brought within the scope of an express exemption, such as that contained in Article 56 of the Treaty', and, on the tions referred to in the recognition proce- other hand, that 'in the absence of harmonisation of the rules applicable to services, or even of a system of dure concerning the requisite knowledge equivalence, restrictions on the freedom guaranteed by and ability for the pursuit of the activities the Treaty in this field may arise in the second place as a result of the application of national rules which affect any in question, such as, in this case, the person established in the national territory to persons providing services established in the territory of another Member State who already have to satisfy the require- ments of their State's legislation' (see Case C-288/89 Collectieve Aiitenneroorziennig Couda [1999] 15 — Cited above in footnote 11. ECR I-4007, paragraphs 11 and 12). 16 — Paragraph 2 1 . 18 — Cited above i n footnote 11.
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of the Treaty and the effectiveness of a appear to have a negative effect on the directive laying down transitional mea- general application of the procedural prin- sures.' 19 ciples set out in Article 4 of the Directive, which appear to be observed during the first stage of the procedure laid down by the provisions of the HandwO and the EC skilled trades rules. 20 However, I consider that the effectiveness of those principles may be jeopardised in view of the particu- 38. In view of the above, it must therefore lar characteristics of entry on the Skilled be accepted that the power which a Mem- Trades Register as provided for in German ber State such as Germany in principle has law. Specifically, that requirement of regis- to provide that an undertaking which tration, which constitutes an essential wishes to carry on a skilled trade activity formality as regards the right to pursue a in that State is required to be entered on the skilled trade in Germany that is only Skilled Trades Register should be exercised fulfilled by a further application submitted in such a way as to be compatible both with by the undertaking concerned, although it the principles governing the freedom to has been previously decided that the under- provide services which is guaranteed by taking fulfils all the essential conditions for Article 59 et seq. of the Treaty and with the the legal pursuit of the skilled trade activity effectiveness of the provisions of Directive and consequently there is no further need 64/427. The compatibility of the way in for a check on the basis of the system which this power is exercised with Arti- provided for in Article 4 of Directive cle 59 et seq. of the Treaty will be exam- 64/427, appears to make significantly more ined below. On that point I shall confine difficult — in terms of time and expendi- myself to examining its compatibility with ture —· the procedure for granting the the effectiveness of the provisions of Direc- necessary authorisation, the first stage of tive 64/427 and, more particularly, of the which is already burdensome. 21 That over- procedure for recognition of experience all encumbering effect can undermine — laid down in Article 4 of that Directive. and in any event does not secure — the effectiveness of the procedural principles laid down in Article 4 of the Directive, just as it would have no practical importance if those principles could be observed for- mally, but the issuing of the relevant authorisation sought was not ultimately of 39. In so far as it constitutes a separate any use because of the length of time taken, stage of the procedure for recognition of the possible high expenditure and the the right to carry on a skilled trade in general difficulty of the whole procedure, Germany, which is procedurally indepen- particularly for undertakings which are dent of and subsequent to the stage at interested in pursuing isolated or generally which the substantive conditions for recog- temporary activities in the host State. As I nition of the right in question are verified, shall explain in more detail below, this at first sight the requirement to be entered in the Skilled Trades Register does not
20 — See above, point 32 of my Opinion. 19 — Paragraph 23. 21 — See above, point 33 of my Opinion.
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CORSTEN
encumbering effect appears, furthermore, regulate the freedom to provide services, to be disproportionate to any overriding including skilled trade activities. 22 public interest which could justify the obligation to be entered on the Register.
42. According to that case-law, Article 59, which became directly applicable on the 40. It results from the above that the need expiry of the transitional period, 23 to ensure the effectiveness of Directive 'requires not only the elimination of all 64/427 means that it precludes a national discrimination on grounds of nationality provision of a Member State from making against providers of services who are estab- the provision of skilled trade services in the lished in another Member State but also the Member State in question by an under- abolition of any restriction, even if it taking established in another Member State applies without distinction to national dependent upon that undertaking's being providers of services and to those of other entered on the Skilled Trades Register of Member States, which is liable to prohibit, the host Member State, where the under- impede or render less advantageous the taking has already been issued with an activities of a provider of services estab- exceptional authorisation, in the context of lished in another Member State where he which it has been checked that that under- lawfully provides similar services'. 24 taking fulfils all the essential conditions provided for in the national provisions transposing Article 3 of Directive 64/427, and the required procedure for being entered on the Register burdens the under- 43. In the same way, according to settled taking in question with additional obliga- case-law, 'as one of the fundamental prin- tions and expenses. ciples of the Treaty, freedom to provide services may be restricted only by rules which are justified by overriding reasons in
22 — On that point it is worth noting that, in the present case, it could not be disputed — by way of analogy with Joined Cases C-267/91 and C-268/91 Keck and Mitbouard [1993] ECR I-6097, paragraph 16, according to which a measure which does not give rise to discrimination and which (c) Article 59 et seq. of the Treaty relates to selling arrangements does not fall within the field of application of Article 30 of the EEC Treaty — that the procedure in question falls under Article 59 of the EC Treaty. It is indubitable that the measures which regulate the procedures for the granting of authorisation to pursue skilled trade activities in Germany, which include the disputed obligation to be entered on the Skilled Trades 41. As the Commission correctly points out Register, relate directly to access to the market for skilled trade services in the Member States and consequently in its observations, in laying down the constitute procedural restrictions on the inter-Community market for services (see also below, point 45 of my procedure for authorisation provided for in Opinion). In accordance therefore with Case C-384/93 Article 4(3) of Directive 64/427, the host Alpine Investments [1995] ECR I-1141, paragraphs 28 and 33 to 38, in such a situation it is not possible to apply Member State should take into considera- Keck and Mitbouard by analogy. tion the general principles which the Court 23 — See, for example. Case 205/84 Commission v Germany [1986] ECR 3755, paragraph 25. has developed in its case-law relating to 24 —Sec Case C-3/95 Reisebüro Broede [1996] ECR I-6511, Article 59 et seq. of the Treaty which paragraph 25.
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OPINION OF MR COSMAS — CASE C-58/98
the general interest and are applied to all a skilled trade activity in Germany that it persons and undertakings operating in the be entered on the Skilled Trades Register of territory of the State where the service is that State, appears to constitute a restric- provided, in so far as that interest is not tion which could impede, defer, preclude or safeguarded by the rules to which the render less attractive the activities of the provider of such a service is subject in the provider of services in the host Member Member State where he is established'. 25 State, in spite of the fact that the above requirement is applied without distinction to national providers of services as well as to those from other Member States. 28 I come to the above conclusion taking into consideration the features of the require- ment to be entered on the Register in
44. Lastly, according to the Court's case- question, as well as the fact that German law, restrictive provisions, as referred to law not only requires every undertaking to above, must comply with the principle of be so registered, but also makes access to proportionality. '[T]he application of the freedom to provide skilled trade ser- national provisions to providers of services vices dependent upon such registration. If, established in other Member States must be apart from the essential character of regis- such as to guarantee the achievement of the tration, account is also taken of the fact intended aim and must not go beyond that that the obligation to submit a further which is necessary in order to achieve that application in order to effect that registra-
objective. In other words, it must not be tion makes the procedure more burden- possible to obtain the same result by less some in terms of time and expenditure, it restrictive rules'. 26 In that connection, the becomes apparent that the requirement to Court has repeatedly held that 'a Member be entered on the Skilled Trades Register, as State may not make the provision of provided for in Germany, may make the services in its territory subject to compli- pursuit of such activities in the host Mem- ance with all the conditions required for ber State less attractive. As the Commission
establishment and thereby deprive of all rightly observes, the restrictive character of practical effectiveness the provisions whose the requirement in question becomes more object is to guarantee the freedom to apparent in the case of undertakings wish- provide services'. 27 ing to carry out work in Germany occa- sionally, or even only once. In that case the obligation to submit a further application and pay an additional fee can reduce the anticipated profit, at least as regards small projects, to such an extent that the pursuit of activities in Germany by undertakings
45. In the light of the Court's case-law, the imposition of a requirement on an under- taking of a Member State seeking to pursue 28 — It could also be maintained that the requirement to be entered on the Skilled Trades Register constitutes a restriction simply because it is a formal condition for 25 —See Case C-43/93 Vander Elst [1994] ECR I-3803, access to the market in services, without there being any need to examine whether the condition could be easily paragraph 16. satisfied (that constitutes a factor affecting the determina- 26 — See Collectieve Antennevoorziening Gouda, cited above in tion as to whether the restriction is justified or not).
See, on footnote 17, at paragraph 15. this point, the Opinion of Advocate General Fennelly in 27 — See, for example, Case C-43/93 Vander Elst, cited above in Case C-190/98 Volker Graf [2000] ECR I-493, I-495 paragraphs 30 and 31. footnote 25, at paragraph 17.
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CORSTEN
established in other Member States would to certain elements which stand out clearly then seem even less attractive. when the criteria of the case-law and the features of the requirement to be entered on the Skilled Trades Register in Germany, as it is described in the order for reference, are compared.
46. However, in spite of the fact that the requirement of registration appears to con- stitute a restriction upon the freedom to provide services, in order to decide whether it contravenes Article 59 of the Treaty, the following must be investigated: first, whe- 48. As regards the necessity for undertak- ther the obligation is necessary, that is to ings which wish to pursue skilled trade say, whether it is justified by overriding activities in the host Member State to be reasons relating to the public interest which entered on the Skilled Trades Register, there are not safeguarded by the provisions of the is no doubt that, although the national State where the undertaking is established; court does not make any mention of it, secondly, whether it is appropriate, that is, there are evident lawful overriding grounds whether it is really apt to serve the general of public interest which can justify the interest objective; and, thirdly, whether it is relevant restriction on access to freedom to rational (proportionate, stricto sensu), that provide services. More precisely, registra- is, whether it is restrictive to a degree really tion of the details of every undertaking necessary for the attainment of the above which is operating in the territory of a objective and the advantages linked to the Member State is undoubtedly an indispen- requirement exceed or are at least equal to sable condition for the protection of the the disadvantages. recipients of the services in question, since it provides them with information about that undertaking, 30 and for the effective application of other provisions of the host Member State (e.g. regulatory, disciplinary and other provisions, such as the legislation against black market work, which was applied in the case in the main proceed- 47. Although it is a matter for the national ings). 31 For that reason, the requirement court, which has better knowledge of the national law and the issues of fact in the case in the main proceedings, to ascertain 30 — Regarding the consideration of the protection of recipients whether the three different elements lato of services as an overriding reason relating to the public interest capable of justifying restrictions upon the freedom sensu of the principle of proportionality are to provide services, sec Joined Cases 110/78 and 111/78 applicable, 29 I consider it worth pointing Van Wesemael and Others [1979] ECR 35, paragraphs 26 and 27, and Collectieve Antennevoorziening Gouda, cited above in footnote 17, paragaph 14. 31 — Regarding the consideration of the protection of workers as an overriding reason relating to the public interest 29 — In this case it is all the more necessary to point to the capable of justifying restrictions upon the freedom to competence of the national court as regards application of provide services, see for example Case 279/80 Webb the principle of proportionality because of che existence of [1981] ECR 3305, paragraph 19, and Collectieve Anten- doubts on the part of Kreis Heinsberg relating to the neruorziening Gouda, cited above i n footnote 17, para- national legal framework in question in Germany. graph 14.
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that details of undertakings operating on 49. I am of the opinion that the need to national territory be entered on a register, serve the above grounds of public interest which is in force in many Member States, is exists, not only in the case of the establish- logical, as Kreis Heinsberg states in its ment of an undertaking in the host Member written observations. 32 Moreover, the pro- State, but also in the case of the mere tection of recipients of services and the supply of services which is not accompa- guarantee of the effective regulation of the nied by establishment in that State.
Con- relevant activities pursued contribute indir- trary to the assertion of the Austrian ectly to a general improvement in the Government, in my opinion it is indubita- quality of skilled trade services provided ble that both the protection of the recipi- in the host Member State. 33 ents of services by means of the collection, registration and making available of the details of the undertakings which are providing them and the ability to control the way in which those services are pro- vided must also be safeguarded in the case of undertakings which provide them tem- 32 — Regarding the requirement for foreign undertakings to be entered on national registers, Kreis Heinsberg puts forward porarily or even once only.
More particu- evidence from the legal systems of Belgium, France, larly, account must be taken of the fact that Greece, Italy, Luxembourg and Austria. According to Kreis Heinsberg, the Skilled Trades Register a single case of a provision of services of functions as a public register, which contains information bad quality suffices to cause significant about tradesmen who pursue their activities in an inde- pendent capacity in the area covered by the local Chamber damage to the legitimate interests of the
of Trades. In other words, the Register has a regulatory function and serves to inform the authorities and users of recipients of those services. skilled trade services about the persons who have author- isation to provide, in an independent capacity, such services in the area covered by the local Chamber of Trades. 33 — As the Commission rightly indicated at the hearing, safeguarding the quality of the skilled trade services rendered could not, alone, directly justify the requirement to be entered on the Skilled Trades Register, inasmuch as that quality is sufficiently safeguarded by the exceptional authorisation to pursue the activities in question, which is granted before entry on the Register. On that point it must also be noted that, according to the German Government, entry on the Skilled Trades Register results in compulsory membership of a Chamber of Trades, which serves to maintain the standard of services rendered and professional efficiency in the skilled trades sector, and contributes to their improvement by means of a system of dual training (practical and professional training) for the entire industrial and trades economy.
As regards the above observations, it must be borne in mind that, first, it is a matter for the national court to investigate whether in fact compulsory membership of the Chamber of Trades can, under German law, justify the requirement to be entered on the Skilled Trades Register, and whether it serves the 50. In that respect, it is worth noting that purposes cited by the German Government. I am of the opinion, however, that, in spite of the fact that those aims the above grounds of public interest could appear to constitute grounds of public interest within the not have been served by any provisions of strict framework of a German legal system, they could not be pleaded against foreign Community enterprises which the Member State in which the undertaking wish to pursue activities in Germany temporarily or even only once, and which do not appear to take part in the is established, on the one hand because, by system of educational training in that Member State. If, their nature, those grounds relate to the however, that is the case, and, particularly if compulsory membership of the Chamber of Trades entails the periodic particular legal and practical regime which payment of fees, then, applying the case-law of the Court cited above, the national court must examine whether that may be in force in the host Member State compulsory membership, following on from the require- ment to be entered on the Register, constitutes a particular regarding access to certain activities and to restriction upon the freedom to provide services which potentially contravenes Community law.
In such a case, the their pursuit, combined with the particula- national court may, if it considers it necessary, refer a rities of that State in the fields of public further question for a preliminary ruling to the Court. security, public health and public policy,
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and, on the other hand, because in the that the requirement to be entered on the absence of harmonisation of the conditions Skilled Trades Register, as provided for by of access to the above activities and to their the provisions of German law, does not pursuit, and of a common register of constitute the most rational choice which undertakings, it would not be possible to could have been made. serve the grounds of public interest in question in a Member State by means of the possible application of another Member State's rules.
51. As regards the suitability of the require- ment to be entered on the Skilled Trades Register of the local German Chamber, I 53. More particularly, the registration pro- consider that such a form of registration cedure provided for in German law appears does in fact serve the particular aims of to restrict — in the sense that it makes it ensuring that information is available, of less attractive — the provision of services, controlling the manner in which the activ- to a degree which is not really essential in ities are pursued, and, above all, of pro- order to satisfy the overriding public inter- tecting the recipients of skilled trade ser- est in being able to regulate the provision of vices supplied by undertakings established skilled trade services and in the protection in other Member States. That requirement of the recipients of those services. In fact, it appears to constitute an effective measure is not justified, because, in order to ensure for achieving the above aims, whilst it is the necessary entry on the Register, another difficult to imagine any other means by procedure has to be set in motion, with the which the necessary details relating to an submission of an application and certifi- undertaking could be made available in one cates and the payment of fees. That further place. procedure does not appear to serve the above overriding public interest at all, whilst at the same time it makes the whole procedure to secure the right to pursue skilled trade activities in the host Member State more difficult. The public interest in question could be better served by auto- matic registration, via the administration, on the basis of data collected at the stage when exceptional authorisation is granted, without delaying and complicating the 52. However, as regards its proportionality possibility of providing services or making stricto sensu, it is undoubtedly apparent the provision of services more difficult by
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imposing additional requirements and same day, on mere presentation of confir- costs. 34 mation of the exceptional authorisation.
54. In that connection, Kreis Heinsberg, 55. Regarding the above observation, it drawing attention to lacunae in the descrip- must of course be remembered that the tion of the national legal framework in the interpretation and exact determination of order for reference, observes that for rea- the German national legal framework falls sons related to the person making the to the national court and that the Court of application or because of particular diffi- Justice is not in a position to rule on the culties (for example, if there is a great doubts raised by Kreis Heinsberg concern- distance between the place where the ing the description of the national provi- undertaking is based and the Chamber), sions governing entry on the Skilled Trades entry on the Skilled Trades Register and the Register.
However, I consider that, since it issuing of the card can take place on the is not essentially disputed that entry on the Skilled Trades Register is not automatic, because a further application by the under- 34 — See, for example, the rules in Article 22(1) of Council taking concerned is required, the dispro- Directive 85/384/EEC of 10 June 1985 on the mutual portionate character of the procedure does recognition of diplomas, certificates and other evidence of formal qualifications in architecture, including measures to facilitate the effective exercise of the right of establishment
not appear to be curable, either by making and freedom to provide services (OJ 1985 L 223, p. 15). provision on an exceptional basis — that Inter alia that article provides: 'Where a Member State requires of its own nationals wishing to take up or pursue is to say, in special circumstances — for the activities referred to in Article 1 either an authorisation from or membership of or registration with a professional speeding-up procedures, or by the possible organisation or body, that Member State shall, in the case reduction or abolition of certain require- of provision of services, exempt nationals of other Member States from that requirement. ments for certificates or application fees. The person concerned shall provide services with the same Since registration is an essential formality rights and obligations as nationals of the host Member State; in particular he shall be subject to the rules of for access to the provision of services, in conduct of a professional or administrative nature which any case in which registration is not
apply in that Member State. For this purpose and in addition to the declaration referred automatic, the existing disadvantages do to in paragraph 2 relating to the provision of services, Member States may, so as to permit the implementation of not in principle appear to be justified by the provisions relating to professional conduct in force in advantages relating to considerations of their territory, require automatic temporary registration or pro forma registration with a professional organisation or overriding public interest, and, for that body or in a register, provided mat this registration does not delay or in any way complicate the provision of reason, the requirement to be entered on services or impose any additional costs on the person the Skilled Trades Register, as provided for providing the services' (my emphasis).
Rules similar to the above are, moreover, enacted in Article 17(1) of Council in German law, contravenes Article 59 et Directive 93/16/EEC of 5 April 1993 to facilitate the free movement of doctors, and the mutual recognition of their seq. of the Treaty guaranteeing the freedom diplomas, certificates and other evidence of formal quali- to provide services. fications (OJ 1993 L 165, p. 1).
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CORSTEN
VI — Conclusion
56. On the basis of the above, I propose that the Court should reply to the question submitted for a preliminary ruling by the Amtsgericht Heinsberg as follows:
Article 59 of the EC Treaty (now, after amendment, Article 49 EC) and Article 4 of Directive 64/427/EEC of the Council of 7 July 1964 laying down detailed provisions concerning transitional measures in respect of activities of self- employed persons in manufacturing and processing industries falling within ISIC Major Groups 23-40 (Industry and small craft industries) should be interpreted as meaning that they preclude a national provision of a Member State from making the provision of skilled trade services in the Member State in question by an undertaking established in another Member State dependent upon that under- taking's being entered on the skilled trades register of the host Member State, where the undertaking has already been issued with an exceptional authorisation, in the context of which it has been checked that that undertaking fulfils all the essential conditions provided for in the national provisions transposing Article 3 of Directive 64/427, and the required procedure for being entered on the Skilled Trades Register is not automatic, but burdens the undertaking in question with additional requirements and costs, and in any case, delays and complicates the provision of services.
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