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formally sworn in on 12 December 1974 at the Court
of Justice in Luxembourg. His term of office will con-
tinue until 6 October 1979.
New Rules of Procedure
2.17 Article 142 of the Accession Treaty requires the
Court of Justice to make amendments to its Rules of
Procedure as may be necessitated by the accession to
the Community of the three new member States; such
amendments require the approval of the Council. The
Court's proposed rmendments to its Rules of Procedure
were discussed for some time in COREPER. On 24
September 1974 agreement was reached between the
Council and the Court on the proposed amendments.
The Council of Ministers for Justice on 26 November
1974 adopted the Court's new Rules of Procedure which
incorporated the amendments.
Right of Establishment and Freedom to provide
Services
6.2 On 21 June 1974 at the request of the Conseil
d'Etat of Belgium the Court of Justice gave a prelimin-
ary ruling under Article 177 of the EEC Treaty on the
interpretation
of
Articles
52
and
55
of
the
Treaty. The ruling
Reyners
has important im-
plications
for the application of right of estab-
lishment in the member States and for the draft
directives concerning right of establishment and free-
dom to provide services which the Commission has sub-
mitted to the Council.
Articles 52 of the EEC Treaty
6.3 Article 52 of the EEC Treaty provides that restrict-
ions on the freedom of establishment of nationals of a
member State in the territory of another member State
should be abolished before the end of the transitional
period (i.e. before 31 December 1969). Freedom of
establishment includes the right to take up and pursue
activities as self-employed persons and to set up and
manage undertakings under the conditions laid down
for its own nationals by the law of the country where
such establishment is effected. The Council was em-
powered to issue Directives for the removal by mem-
ber States of their discriminatory restrictions against
nationals or firms of other member States in the vrr-
ious branches of activity. The Council has issued Dir-
ectives requiring the removal of discriminatory meas-
ures for a number of activities and the Commission has
submitted draft directives for others.
6.4 In the Reyners case the Court ruled than since the
end of the transition? 1 period Article 52 of the EEC
Treaty is directly applicable in all the member States
despite the absence of Council Directives for any par-
ticular activity. The main consequences of the Court's
ruling are that
(a) restrictions imposed on the basis of nation?lity
may no longer be maintained in any member State
against nationals of any other member State even if
national legislation provides otherwise.
(b) the provisions of Directives already adopted hv
the Council which postponed the lifting of restrictions
on certain activities are without effect; this also ap-
plies to any timetables laid down in these Directives
for their implementation and to provisions which link
the abolition of restrictions with measures to co-ordinate
national provisions and the mutual recognition of
diplomas and
(c) Directives for the abolition of discrimination on
grounds of nationality need no longer be adopted by the
Council.
6.5 The Court's judgement in the Reyner's case re-
lates only to right of establishment. However, a Dutch
Court has asked the Court of Justice for a similar rul-
ing for Article 59 of the EEC Treaty which deals with
freedom to provide services (case 33/74; Van Binsber-
gen.) A judgement has been delivered in December
1974.
6.6 As a result of the Court's ruling the Commission
has decided to withdraw draft directives on
(a) the abolition of restrictions on freedom of estab-
lishment and
(b) the abolition of restrictions on freedom of estab-
lishment and freedom to provide services.
Lawyers
6.17 A working group of officials of the member States
is continuing its examination of a draft directive on
the provision of services by lawyers (OJ No. C78, 20
June 1969).
6.18 The workng group held a meeting in Octobci
1974. The meeting was principally concerned with the
implications for the draft directive of the judgement in
the Reyners case and in particular of the Court's in-
terpretation of Article 55 of the EEC Treaty which,
by virtue of Article 66, applies to the provision of ser-
vices as well rs to right of establishment (paragraph
6.9). As the Court's pudgement in the van Binsbergen
case (paragraph 6.5) will also directly affect this draft
directive it was decided to await the outcome of that
case before considering the matter further. Such further
consideration will be undertaken following the sub-
mission by the Commission to the Council of ? com-
prehensive report on the situation created by the judge-
ments in these two cases.
COMPANY LAW
10.1 Regulations entitled the European Communities
(Companies) Regulations 1973 were made by the Min-
ister for Industry and Commerce to give effect to the
First Directive on Company Law (Directive 68/141 of
9 March 1968 (OJ No. L65, 14 March 1968)). The
Joint Committee of the Houses of the Oireachtas on the
Secondary Legislation of the Europe? n Communities
has examined the regulations and has reported thereon
to both Houses (paragraphs 10.3 to 10.5 Third Report)*
Steps are being taken to amend the regulations in the
160