ECLI:EU:C:1985:127•Opinion of Mr Advocate General Lenz delivered on 21 March 1985. # A. Brautigam v Council of the European Communities. # Official - Regular transfers outside country of employment. # Case 236/82.
Opinion of Mr Advocate General Lenz delivered on 21 March 1985. # A. Brautigam v Council of the European Communities. # Official - Regular transfers outside country of employment. # Case 236/82.
ECLI:EU:C:1985:127Eu CjeuMar 21, 1985
Full text
OPINION OF MR ADVOCATE GENERAL LENZ
delivered on 21 March 1985 ( *1 )
Mr President,
Members of the Court,
A.
The applicant in this case, a senior official in the Legal Department of the Council of the European Communities (Career Bracket A) who is a Netherlands national, bought a plot of land in Belgium and had built on it a house in which he has lived since October 1979. He raised part of the money to do so in German marks from a German bank which has its registered office in Düsseldorf and a branch without independent legal personality in Brussels. Those funds were raised partly under an agreement concluded in April 1978 (the monthly instalments payable under that agreement were originally DM 426 and were then increased in April 1981 after an interest-rate rise, the loan being at a variable rate of interest, to DM 596), and partly under an agreement dated April 1979 (a fixed-rate loan under which the monthly instalments payable were DM 1410). Both loans were secured by a 15 year mortgage on the land, which, however, has evidently been redeemed in part by early repayment.
Soon afterwards, in October 1979, the applicant applied to have the sum of DM 1836 (the original sum of both sets of instalments) transferred monthly to the aforementioned bank branch in Brussels, on the ground that his obligations under the abovementioned agreements were covered by Article 17 of Annex VII to the Staff Regulations, paragraph (2) of which provides :
‘Under the terms laid down in rules drawn up by common agreement by the institutions of the Communities, after consultation of the Staff Regulations Committee, an official may:
|
(a) |
through the institution which he serves, regularly have part of his emoluments transferred up to a maximum amount equal to his expatriation or foreign residence allowance:
|
|
(b) |
have regular transfers made in excess of the maximum stated at the beginning of paragraph (a) provided that they are intended to cover expenditure arising in particular out of commitments proved to have been regularly undertaken by the official outside the country where the institution has its seat or outside the country where he carries out his duties; |
|
(c) |
be authorized, in very exceptional circumstances and for good reasons supported by evidence, to have transferred, apart from the aforementioned regular transfers, sums which he may wish to have available in the currencies referred to in paragraph (a).’ |
As is shown in the decision communicated in reply on 25 October 1979, that request was refused on the ground that the applicant possessed Netherlands nationality and therefore Article 17 (2) (a) could not be applied to his case. The applicant, who submitted in these proceedings that his request was based on Article 17 (2) (b), did not pursue the matter further at the time.
However, in January 1982 he once again submitted a request under Article 17 (2), which this time related to the adjusted sum of DM 2006. At first he requested the administration (on 6 January 1982) to transfer the amount from 15 February 1982 to the bank branch in Brussels; after discussing the matter with the administration, he then amended the request on 12 January 1982 to ask that the transfers be made instead to an account with the same bank in Aachen. In his accompanying memorandum dated 6 January 1982 the applicant expressly referred in that connection to Article 17 (2) (b) of Annex VII to the Staff Regulations and to the rules for implementing that provision [Rules laying down the Procedure for the Transfer of Part of an Official's Emoluments], which entered into force in January 1980; he argued that because the commitments at issue required repayment in German marks they arose outside Belgium — a position which was recognized in the case of repayment obligations under loans concluded with the Beamtenheimstättenwerk gemeinnützige Bausparkasse für den öffentlichen Dienst GmbH [German Civil Service Building Society, hereinafter referred to as the BHW], a limited-liability company incorporated under German civil law. On 29 January 1982 that request was also refused by the administration on the ground that the commitments at issue did not arise outside Belgium because the loan secured by the mortgage had been granted by a bank branch in Brussels, and hence the applicant's creditor was established (‘installé’) in Belgium.
The applicant takes the view that he is discriminated against in comparison with officials to whom the abovementioned provision has been applied in respect of repayments to the BHW, and on 9 February 1982 he lodged a complaint against that decision. He argued that the decisive fact was that the creditor was a legal person with its registered office in the Federal Republic of Germany and that in that connection it was irrelevant that the contracts had been concluded with a branch in Belgium which was not empowered to act on its own account.
That complaint was answered by the Secretary-General of the Council by Decision No 211/82 of 23 March 1982. Under that decision, which refers to Article 17 of Annex VII to the Staff Regulations and the relevant implementing rules (in particular Article 5 of those rules, which relates to Article 17 (2) (c)) and acknowledges that the applicant had undertaken financial commitments in German marks, the applicant was granted exceptional authorization to have transferred from his salary the sum of DM 2000 monthly to an account in Germany for the period from April 1982 to March 1983. It was also emphasized in the decision that the authorization would be terminated ‘en cas de changement de la situation sur la base de laquelle elle a été prise’ [in the event of a change in the situation on which the decision was based] and that the applicant must inform the administration of ‘tout élément susceptible de modifier cette situation’ [any factor which might alter that situation].
The applicant responded in a memorandum dated 29 May 1982 to the Director-General for Administration. In it he began by noting that the aforementioned decision referred to Article 17 (2) (c) of Annex VII to the Staff Regulations, and emphasized that the request for authorization fulfilled the requirements of Article 17 (2) (b), which was therefore the only provision to be applicable. The applicant went on to explain that he had no interest in challenging the decision since he assumed that it would be extended automatically or at least upon a simple request if the situation remainedunaltered. He added that in the absence of any communication to the contrary he would asume that the decision was to be extended for as long as his financial obligations remained in German marks.
A reply came in the form of the Council Secretary-General's Decision No 629/82 of 18 June 1982, which stated that because the situation which had provided the basis for the decision of 23 March 1982 no longer existed, the authorization contained in that decision was to be withdrawn with effect from July 1982; it added that any other authorizations of transfers of a part of the applicant's salary would be maintained ‘dans la limite de 35% de sa rémunération nette’ [up to 35% of his net remuneration].
At this point it must be noted that the situation mentioned in the decision is a reference to the measure adopted by the Belgo-Luxembourg Exchange Institute in December 1981, which was largely relaxed in June 1982 (it provided that only 25% of the salaries paid into the convertible accounts of Community officials could be used for the purchase of foreign currencies on the controlled market). It should also be mentioned in the same connection that the applicant, clearly influenced by the second point in the decision, concluded a loan agreement (adjusted a number of times subsequently) with the BHW in August 1982 and has since had 35% of his net salary regularly transferred to it under that agreement by the General Secretariat of the Council.
Comments on Decision No 629/82 were submitted by a colleague of the applicant in a letter of 25 June 1982 addressed to the Secretary-General of the Council and by the applicant himself in a memorandum of 30 June 1982 addressed to the Director-General of the Legal Department (the memorandum concludes with an express request to communicate both documents to the Secretary-General). In the letter it was argued that developments in Belgium regarding convertibility (which had been the real reason for the decision) had nothing to do with the applicant's longstanding payment obligations; nothing had happened to alter those obligations, and the provision under which they should be considered was Article 17 (2) (b) of Annex VIII (VII is surely what was meant) to the Staff Regulations. In his own memorandum, the applicant put the point that the decisive consideration in applying that provision must, in the interests of equal treatment with debtors of the BHW, be that his repayment obligations were in German marks and owed to a German bank; in that connection no significance could be attached to the place where the contract was concluded or to the fact that the creditor bank had a branch in Brussels. He therefore requested that in view of the fact that the Belgian currency convertibility measures had no bearing on the interpretation of the Staff Regulations the decision should be reconsidered.
Finally, it should be mentioned that the Secretary-General of the Council wrote on 26 July 1982 in reply to the applicant's memorandum of 29 May 1982 that the decision of 23 March 1982 was a ‘mesure exceptionnelle, utilisée pour pallier les effets négatifs que la situation en matière de convertibilité avait entraînés à l'époque’ [an exceptional measure adopted to offset the adverse effects produced at the time by the situation as regards convertibility] and could not therefore be maintained ‘au moment que la pleine convertibilité des rémunérations a été réinstaurée’ [when the full convertibility of remuneration was restored]. He went on to say, in connection with the problem of regular transfers of a part of an official's salary in German marks, that Article 17 of Annex VII to the Staff Regulations and the implementing rules were capable of giving rise to conflicting interpretations, that the method of applying those provisions could only be determined ‘de commun accord avec les autres institutions’ [by common accord with the other institutions], and that a working party had accordingly been set up to examine the question in detail.
The applicant was not satisfied with that answer to his case, and on 21 September 1982 he brought an action before the Court of Justice. He claims that the Court should:
|
(a) |
Annul the decision of the Secretary-General of the Council of 18 June 1982; |
|
(b) |
In so far as is necessary, annul the implied rejection of the applicant's complaint lodged on 9 February 1982; |
|
(c) |
Declare that the applicant's original request falls within the scope of Article 17 (2) (b) of Annex VII to the Staff Regulations as from February 1982; |
|
(d) |
Order the Council to compensate him for the damage which he has sustained or will sustain in consequence, amounting at the time of the application to BFR 17 624. |
The Council contends that the application is inadmissible and in any event unfounded and claims that it should therefore be dismissed and that the applicant should be ordered to bear the costs.
B.
My opinion on those issues is as follows.
Admissibility
|
1. |
It is clear from the application as a whole that the applicant is essentially seeking a judgment in favour of his request, submitted in January 1982, for Article 17 (2) (b) of Annex VII to the Staff Regulations to be applied to his salary payments on account of his financial obligations towards a German bank.
Consequently, I do not think it necessary to examine yet another argument against the admissibility of the action, which turns on whether, as regards the applicability of Article 17 (2) (b), the applicant has an interest in bringing proceedings, because he was authorized by Decision No 629/82 to transfer 35% of his salary abroad and also made use of that facility under Article 17 (2) (b) from August 1982 pursuant to a building loan agreement with the BHW, and because transfers above that amount are prohibited by Article 3 of the rules for implementing Article 17. |
|
2. |
The application is also, as the Court will recall, for the annulment of Decision No 629/82. In that respect there are no objections of inadmissibility on grounds of time, since, as the applicant has stated without being challenged, that decision first reached him on 21 June 1982, and if the time-limit is calculated from that date and the extension on account of distance for Belgium added, the application was lodged in due time on 21 September 1982. However, there are two other arguments against the admissibility of the action, namely noncompliance with Article 91 (2) of the Staff Regulations (failure to lodge a prior complaint) and absence of an interest in bringing proceedings.
|
|
3. |
Accordingly, I can only conclude that the application as a whole fails to overcome the barrier of inadmissibility and that it should therefore be dismissed. Because I consider that the conclusion which I have reached is ineluctable (although it cannot be denied that the Council's administration might have shown more clarity in its treatment of the applicant's case, particularly in its statements of the reasons on which Decisions Nos 211/82 and 629/82 were based), I do not propose to put forward an alternative opinion as to the substance at this stage. However, should the First Chamber not endorse my opinion as to the admissibility of the action, I am ready to examine the substance of the application if it should so request. |
C.
I propose accordingly that Mr Brautigam's application should be dismissed as inadmissible. Under Article 69 (2) of the Rules of Procedure, taken in conjunction with Article 70, the parties are required to bear their own costs. There are no grounds for awarding the entire costs against the applicant, as the defendant has requested.
( *1 ) Translated from the German.
( 1 ) Judgment of 9 March 1978 in Case 54/77 Herpels v Commission, (1978) ECR 585.
Wondering how this text applies to your situation?
Free consultation, no commitment
Describe your situation. Our team will contact you by email about your consultation.
Continue your research in ChatGPT or Claude
Connect Omnilex to search the legal corpus from your AI assistant.