WRITTEN QUESTION E-1281/02

by Armin Laschet (PPE-DE) to the Commission

(8 May 2002)

Subject: Compatibility with EU law of the Belgian Royal Decree of 31 December 1953 on the registration of vehicles

The Belgian Royal Decree of 31 December 1953 governs the registration of foreign vehicles in Belgium. A foreign vehicle is to be registered in Belgium if its keeper has his place of residence in Belgium, and Belgian legislation recognises only a person's main residence.

This causes problems in areas on the German-Belgian border. Since 1 October 2001, businesspeople who own firms in Germany but live in Belgium have not been able to use their company vehicles for travel between work and home if those vehicles are registered in Germany. If they wish to use such vehicles in Belgium, they have to register them there and have them fitted with Belgian number plates. Those affected by these rules are the self-employed and managing directors of private limited companies. Employees working for German firms and using company vehicles on official business or for journeys between home and work are not affected.

A keeper of a vehicle who registers his vehicle in Belgium must pay registration fees. This entails considerable additional expenditure, in particular for small businesses with several company vehicles.

What is the legal position as regards leased vehicles? German banks make loans for the purchase of vehicles provided the vehicle registration documents are presented as security. A German business owner can no longer use his vehicle registration documents as security once he has registered his company vehicle in Belgium. Is there any experience of fiscal depreciation arrangements or of registration tax in the case of leased vehicles?

What other consequences does re-registration of company vehicles have for business owners? Do German tax offices accept claims in respect of the costs incurred, e.g. Belgian motor vehicle taxes, following re-registration?

Many business owners regard the provisions of the Royal Decree as constituting a huge financial disadvantage and a barrier to their freedom of movement. Does the Commission agree with them?

In the Commission's opinion, should Member States' national legislation be brought into line with European legislation in order to remove competitive disadvantages faced by business owners in border regions?

Answer given by Mr Bolkestein on behalf of the Commission

(19 June 2002)

The matter raised by the Honourable Member concerns the obligation to reside or have a place of business in Belgium when registering vehicles. This pertinent issue should be examined in the context of the freedom to provide services under the terms of Article 49 of the EC Treaty.

The Royal Decree of 31 December 1953, to which the Honourable Member refers, has been substantially amended by the Royal Decree of 20 July 2001 on the registration of vehicles.

Furthermore, in its judgment of 21 March 2002 on case C-451/99 Cura Anlagen, the Court of Justice ruled that Article 49 precludes legislation which imposes a requirement that the person in whose name the vehicle is registered in the Member State of use reside or have a place of business there, in so far as it obliges a leasing undertaking either to have a principal place of business in that Member State or to accept registration of the vehicle in the name of the lessee and the consequent limitation of its rights over the vehicle.

Given these factors, the Commission will examine the Belgian regulations in the light of the aforementioned judgment and will ensure that the situation concerning the registration of vehicles in Belgium complies with this case law.