Italy has now implemented the 1973 EEC Directives concerning the freedom of insurance companies, having a head office in a Member State, of establishing an office in any other EEC Member State. The instrument of such implementation is an Act of Parliament of June, 1978, “legge 10/6/1978, u.295”, entitled “New provisions governing the private business of insurance against damages”.

The EEC Directives should have been implemented in 1976 (Feb. 1), and the delay of two years has indeed caused inconvenience. As an example, the “Community” insurance companies, who had filed application for an establishment in Italy, could not avail themselves of the right that the competent authorities should decide over the granting of the authorisation within six months from the date of demand. The Italian authorities were actually taking more than six months to decide.

As a matter of fact, the Directives of the Community were themselves passed with considerable delay in respect of the Rome Treaty, according to which they should have become operative in 1969 (see arts. 92 and 57 of the Treaty). Article 59, concerning freedom of business, is still suffering delay. The 1973 Directives concerned only the “freedom of establishment”, and involved technical and political problems for every EEC Member State, to a greater or lesser degree. Once the 1973 Directives were passed, some Member States, like the United Kingdom, proceeded to implement them rather quickly.

In England, the Insurance Companies Act was enacted on July 31, 1974, and was followed by three Orders implementing Directives (Statutory Instrument 1977/1552— Insurance Companies—Classes of General Business—Regulations 1977; S.I. 1977/5953—Insurance Companies—Solvency-General Business—Regulations 1977, and S.I. 720/78—Insurance Companies—Authorisation and Accounts—General Business Regulations 1978). Three other Statutory Instruments followed in 1978, namely S.I. 721/1978—Insurance Companies—Accounts and Forms—Amendment Regulations 1978; S.I. 722/1978—Insurance Companies—Changes of Director, Controller or Manager—Regulations 1978, and S.I. 917/1978—Insurance Companies—Deposit— Regulations 1978. Other Member States, such as Italy and Holland, have been subject to delay.

Such delay has been of some relevance, principally from the point of view of uniformity of law and of practical problems, rather than from the point of view of real freedom of establishment. In fact, even before the new law of June, 1978, came into force the Italian regulations allowed foreign insurance companies a good amount of freedom of establishment in Italy (subject to certain conditions and reciprocity). In addition, the EEC Member States had gradually cancelled discrimination among themselves.