THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Articles 57(2) and 66 thereof,

Having regard to the proposal from the Commission [No C 65, 15. 3. 1989, p. 6, and OJ No C 180, 20. 7. 1990, p. 6],

In cooperation with the European Parliament [OJ No C 68, 19. 1 1990, p. 85, and Decision of 10 October 1990 (not yet published in the Official Journal)],

Having regard to the opinion of the Economic and Social Committee [OJ No C 194, 31. 7. 1989, p. 3],

Whereas in order to develop the internal insurance market, the Council adopted on 24 July 1973 Directive 73/239/EEC on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance [OJ No L 228, 16. 8. 1973, p. 3] (also referred to as the 'First Directive') and on 22 June 1988 Directive 88/357/EEC on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC [ OJ No L 172, 4. 7. 1988, p. 1] (also referred to as the 'Second Directive');

Whereas Directive 88/357/EEC made it easier for insurance undertakings having their head office in the Community to provide services in the Member States, thus making it possible for policyholders to have recourse not only to insurers established in their own country, but also to insurers who have their head office in the Community and are established in other Member States;