In the face of obstacles to the freedom to provide services and the freedom of establishment, fundamental principles of the Single Market, the Commission has decided to refer Spain to the Court of Justice and to send reasoned opinions (the second stage of infringement procedures under Article 169 of the EC Treaty) to Italy, Belgium and Germany. Under Spanish legislation, private security services in Spain may only be provided by Spanish companies and security guards must be of Spanish nationality, Italy does not allow companies from other Member States to organise fairs and exhibitions in Italy, Belgium requires international associations and non- profit-making associations to have a Belgian associate and Germany allows only German companies to use Polish subcontractors in the construction industry. In the absence of a satisfactory response within two months following reception by the Member State in question of a reasoned opinion, the Commission may refer them to the Court of Justice. The Commission has also decided to close the infringement procedure against Luxembourg concerning workplace inspection organisations (see IP/96/683), because the discriminatory provisions were amended to the satisfaction of the Commission. Spain - private security services According to the Spanish law of 30 July 1992, the directors of companies offering private security services in Spain (such security guards, installation of electronic alarms, centralised reception facilities, transport of valuables and private detectives) must be resident in Spain. Moreover, all the personnel working in such private security companies (both employees and casual staff) must be of Spanish nationality. The Commission considers this situation to be an infringement of EC Treaty rules concerning in particular the freedom of establishment (Article 52), the freedom to provide services (Article 59) and free movement of workers (Article 48). The Commission sent Spain a reasoned opinion to this effect. The Spanish Government replied by letter dated 24 September 1996 in which it refused to conform to the opinion of the Commission. The Commission has therefore decided to refer Spain to the Court of Justice. Italy - organisation of fairs and exhibitions The organisation of fairs and exhibitions in Italy is subject to a number of restrictions laid down by Italian legislation, both at regional and national level. These restrictions are incompatible with basic principles of Community law, namely the right of economic operators based in one Member State to organise such events in another Member State (freedom to provide services - Article 59 of the EC Treaty) and the right of economic operators to establish themselves in another Member State (freedom of establishment - Article 52). Commitments made by the Italian authorities to settle these problems have not been translated into legislative measures. The Commission has therefore decided to continue the infringement procedure initiated against Italy and to send a reasoned opinion. Belgium - obligation to have a Belgian associate A Belgian law of 25 October 1919 grants civil personality to international associations set up for philanthropic, religious, scientific, artistic or teaching purposes, but requires the executive body or committee to include at least one Belgian associate. Moreover, a Belgian law of 27 June 1921 grants civil personality to non-profit-making associations and to pubic service establishments, but requires three fifths of the associates to be of Belgian nationality. As both these laws are incompatible with Community law s general prohibition of any discrimination based on nationality, the Commission has decided to send a reasoned opinion to Belgium. Germany - subcontractors in the construction industry According to German authorities interpretation of a 1990 bilateral agreement between Germany and Poland, only companies established in Germany are entitled to use Polish companies (including their labour force) as sub- contractors in the construction sector. Companies offering their services in Germany but established in other Member States are not granted this possibility. The Commission considers this interpretation of the Germany/Poland agreement to be incompatible with the principle of the cross-border freedom to provide services (Article 59 of the EC Treaty) and that the practice represents an obstacle to service providers not established in Germany. The Commission has therefore decided to send a reasoned opinion to Germany. ***
