Explanatory Memorandum to SEC(2011)261 - EU position concerning an amendment to Annex VI (Social Security) and Protocol 37 to the EEA Agreement

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1. In order to ensure the requisite legal security and homogeneity of the Internal Market, the EEA Joint Committee is to integrate all the relevant EU legislation into the EEA Agreement as soon as possible after its adoption.

2. To that end, the Commission transmitted to the Council on 9 September 2010 the Commission proposal for a Council Decision1, establishing the EU position on a draft Decision of the EEA Joint Committee aiming at amending Annex VI (social security) of the EEA Agreement by adding new EU acquis in this field. This concerns Regulation 883/2004/EC of the European Parliament and of the Council of 29 April 2004, Regulation 988/2009 of the European Parliament and of the Council of 16 September 2009 and Regulation 987/2009/EC of the European Parliament and Council of 16 September 2009 on the coordination of social security systems. In addition, the draft Decision contains provisions to include a number of decisions and recommendations of the Administrative Commission. The draft decision furthermore contains provisions to amend Protocol 37 to include in its list of Committees the Administrative Commission for the coordination of social security systems (Regulation (EC) No 883/2004 of the European Parliament and Council).

3. The originally transmitted draft Commission proposal for a Council Decision was based on articles 218 i, 48 and 352 TFEU. This legal basis needs to be amended. The Lisbon Treaty extended the competence set out in Article 48 TFEU, which empowers the Union to coordinate the social security system of Member States, to self-employed migrant workers. Thus, after the entry into force of the Lisbon Treaty, it is not necessary to rely on Article 352 TFEU as legal basis in order to cover this group of persons. The legal basis should thus be limited to exclusively article 218 i TFEU covering the procedure to be followed and article 48 TFEU which now covers all the substantial elements of the relevant acquis. This has been confirmed by the jurisprudence of the European Court of Justice.

4. The amended draft Commission proposal for a Council Decision on the position to be taken by the European Union in the EEA Joint Committee concerning an amendment to Annex VI (Social Security) and Protocol 37 to the EEA Agreement, in annex, replaces the draft Commission proposal for a Council Decision transmitted on 9 September 2010.

5. Article 1 i of Council Regulation (EC) No 2894/94 concerning arrangements for implementing the EEA Agreement provides that the Council establishes the position to be adopted on the Union’s behalf on such Decisions, on a proposal from the Commission.

6. The Commission submits the draft Decision of the EEA Joint Committee for adoption by the Council as the Union’s position. The Commission would hope to be able to present it in the EEA Joint Committee at the earliest possible opportunity.