THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Articles 2, 7, 51 and 235 thereof,

Having regard to the proposal from the Commission drawn up after consultation of the Administrative Commission on Social Security for Migrant Workers1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the Economic and Social Committee3,

Whereas, in order to attain freedom of movement for employed persons and eliminate the obstacles that would, in the sphere of social security, result from the application of national legislations only, the Council adopted, on the basis of Article 51 of the Treaty, Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and their families moving within the Community4, as last amended by Regulation (EEC) No 196/815 fixing the rules for coordinating social security schemes for employed persons;

Whereas freedom of movement for persons, which is one of the cornerstones of the Community, is not confined to employed persons but also extends to self-employed persons in the framework of the freedom of establishment and the freedom to supply services;

Whereas the coordination of the social security schemes applicable to self-employed persons is necessary to attain one of the objectives of the Community; whereas the Treaty has not provided the necessary specific powers for this purpose;

Whereas, in pursuance of the Treaty, any discrimination on grounds of nationality with regard to establishment and the provision of services has been prohibited since the end of the transitional period;

Whereas, in the sphere of social security, the application of national legislations only would not afford sufficient protection to self-employed persons moving within the Community; whereas, in order to make the freedom of establishment and the freedom to provide services fully effective, the social security schemes for self-employed persons should be coordinated;

Whereas Regulation (EEC) No 1408/71, even though it applies to employed persons, already covers certain categories of self-employed persons; whereas, for reasons of equity, it would be appropriate to apply, to the largest possible extent, the same rules to self-employed persons as are laid down for employed persons;

Whereas there are grounds for making the necessary adaptations to Regulation (EEC) No 1408/71 to make it possible to apply the provisions of that Regulation to self-employed persons and their families moving within the Community to the largest possible extent that is compatible with the nature of their occupation and the characteristics of the special social security schemes that cover them;

Whereas the adjustments to be made to Regulation (EEC) No 1408/71 call for adjustments to certain of the Annexes to that Regulation;

Whereas, in particular, it is necessary to stipulate in an Annex, what the terms ‘employed person’ and ‘self-employed person’, introduced in Regulation (EEC) No 1408/71, mean when the person concerned is insured under a social security scheme which applies to all residents or to certain categories of resident or to the entire working population of a Member State; whereas it seems preferable to define these expressions and the expression ‘member of the family’ in a separate Annex; whereas two further Annexes are needed, to indicate the special arrangements for self-employed persons excluded from the scope of the Regulation and for instances in which a person is subject simultaneously to the legislation of two Member States,

HAS ADOPTED THIS REGULATION: