Sylvie Lair v. Universität Hannover (University of Hanover) (Case 39/86) Before the Court of Justice of the European Communities ECJ (Presiding, Mackenzie Stuart C.J.; Moitinho de Almeida and Rodriguez Iglesias PP.C.; Koopmans, Everling, Bahlmann, Galmot, Kakouris, Joliet, O'Higgins and Schockweiler JJ.) Sir Gordon Slynn, Advocate General. 21 June 1988 Reference from Germany by the Verwaltungsgericht Hannover (Administrative Court, Hanover) under Article 177 EEC. Education. Grants. Discrimination. Unequal treatment based on nationality is to be regarded as discrimination prohibited by Article 7 EEC if it falls within the scope of the Treaty. Conditions for access to vocational training, including in general university studies, do so fall and therefore are covered by Article 7. Grants and other forms of assistance are included in this rule. However at the present stage of Community law, that only applies to assistance intended to cover registration and other fees, in particular tuition fees, charged for access to education, but not to maintenance and training grants. [14]-[15] Gravier v. City of Liege (293/83): [1985] E.C.R. 593, [1985] 3 C.M.L.R. 1, and Blaizot v. University of Liege (24/86): [1989] 1 C.M.L.R. 57, explained and restricted. Education. Community law and national law. Educational policy is not as such included in the spheres entrusted to the Community institutions. [15] Gravier v. City of Liege (293/83): [1985] E.C.R. 593, [1985] 3 C.M.L.R. 1, affirmed. Social policy. Community law and national law. Social policy falls within the competence of the member-States in so far as it is not covered by specific provisions of the EEC Treaty. [15] *546 Re the Immigration of Non-Community Workers: Germany v. E.C. Commission (281/85): [1987] E.C.R. 3202, [1988] 1 C.M.L.R. 11, affirmed. Migrant workers. Social advantages. A worker who is a national of another member-State and has exercised his right as such to freedom of movement under Articles 48 and 49 EEC and Regulation 1612/68 is entitled in the same way as national workers to all the advantages available to such workers for improving their job qualifications and promoting their career advancement. [22] Migrant workers. Education. Grants. Social advantage. Grants for maintenance and training which is apppropriate for improving the student's job qualifications and promoting her career advancement and which are linked to the student's means and are thus dependent on social criteria constitute a social advantage within the meaning of Article 7(2) of Regulation 1612/68. [23][24] Migrant workers. Education. Vocational schools. Universities. In order for an educational institution to be regarded as a vocational school for the purposes of Article 7(3) of Regulation 1612/68 it is not sufficient that some vocational training is provided. The institution must provide exclusively instruction which either alternates with or is closely linked to an occupational activity, particularly during apprenticeship. That is not true of universities, which consequently are not vocational schools. [26] Migrant workers. Education. Grants. Social advantage. Universities. A grant awarded for maintenance and training with a view to the pursuit of university studies leading to a professional (job) qualification constitutes a social advantage within the meaning of Article 7(2) of Regulation 1612/68. [28] Migrant workers. Education. Grants. Social advantage. A national of a member-State who has undertaken university studies in the host State leading to a job qualification, after having engaged in work activity in that State, must be regarded as having retained her status as a worker and is entitled as such to the benefit of Article 7(2) of Regulation 1612/68, provided [FN1] that there is a link between the previous work activity and the studies in question. [39] FN1 This proviso seems to contradict the express counter-proviso in paragraph [37] where the Court says that the link 'may not, however, be required where a migrant has involuntarily become unemployed and is obliged by conditions on the job market to undertake occupational retraining in another field of activity' (as was the case here).--Ed. Migrant workers. Education. Social advantages. *547 Member-States may not unilaterally make the grant of social advantages under Article 7(2) of Regulation 1612/68 conditional upon the completion of a given period of work within the territory. [42] The Court interpreted Article 7 EEC and Article 7 of Regulation 1612/68 in the context of a Frenchwoman who had lived in Germany since 1979, worked there until mid-1981 whereupon she became unemployed and spent the next three years either unemployed or retraining interspersed with brief periods of employment until she began in October 1984 a university course in language and literature leading to a vocational qualification, the university having refused to award her a maintenance and training grant on the ground that as an alien she had not worked for five years in Germany as required by the German legislation, to the effect that Article 7 EEC only applied to assistance with registration and other fees, including tuition fees, but excluding grants for maintenance and training, that a Community worker is entitled to national treatment as regards social advantages under Article 7 of Regulation 1612/68 aimed at improving job qualifications and career advancement, that the German grant in issue constituted such a social advantage, that the restrictive definition of a vocational school in Article 7(3) of the regulation did not alter that conclusion, that the plaintiff retained her status as worker while studying at the university, but that (and here the Court appears to have made two mutually contradictory statements) there must (or need not) be a link between the subject-matter of the university course and her previous work in Germany, and that assuming that the plaintiff was a 'Community worker' Germany was not entitled to subject her enjoyment of the right to a grant to a five-year prior work rule which it did not apply to German nationals. Representation H. Vogt, with him in the written proceedings Thomas Schröder, of the Hanover Bar, for the plaintiff. Prof. Manfred Zuleeg, of the University of Frankfurt, with him in the written proceedings Dr. Martin Seidel, Ministerialrat at the Ministry of the Economy, for the German Government as amicus curiae. R.N. Ricks, H.R.L. Purse and David Donaldson Q.C. for the United Kingdom Government as amicus curiae. Laurids Mikaelsen, Legal Adviser in the Ministry of Foreign Affairs, for the Danish Government as amicus curiae. Jörn Pipkorn, Legal Adviser to the E.C. Commission, and Julian Currall, member of the Legal Department, for the E.C. Commission as amicus curiae. The following cases were referred to in the judgment: 1. Gravier v. City of Liege (293/83), 13 February 1985: [1985] E.C.R. 593, [1985] 3 C.M.L.R. 1. Gaz:293/83 *548 . 2. Blaizot v. University of Liege (24/86), 2 February 1988: [1989] 1 C.M.L.R. 57. Gaz:24/86 3. Re the Immigration of Non-Community Workers: Germany v. E.C. Commission (281/85, 283-285/85, 287/85), 9 July 1987: [1987] E.C.R. 3202, [1988] 1 C.M.L.R. 11. Gaz:281/85 4. Hoeckx v. Openbaar Centrum voor Maatschappelijk Welzijn Kalmthout (249/83), 27 March 1985: [1985] E.C.R. 973, [1987] 3 C.M.L.R. 633. Gaz:249/83 5. Scrivner v. Centre Public D'Aide Sociale de Chastre (122/84), 27 March 1985: [1985] E.C.R. 1027, [1987] 3 C.M.L.R. 638. Gaz:122/84 6. Levin v. Staatssecretaris Van Justitie (53/81), 23 March 1982: [1982] E.C.R. 1035, [1982] 2 C.M.L.R. 454. Gaz:53/81 7. Kempf v. Staatssecretaris Van Justitie (139/85), 3 June 1986: [1986] E.C.R. 741, [1987] 1 C.M.L.R. 764. Gaz:139/85 8. Hoekstra v. Bestuur der Bedrijfsvereniging voor Detailhandel en Ambachten (75/63), 19 March 1964: [1964] E.C.R. 177, [1964] C.M.L.R. 319. Gaz:75/63 9. Frascogna v. Caisse des Depots et Consignations (157/84), 6 June 1985: [1985] E.C.R. 1739. Gaz:157/84 The following further cases were referred to by the Advocate General: 10. Centre Public v. Lebon (316/85), 18 June 1987: [1987] E.C.R. 2811, [1989] 1 C.M.L.R. 337. Gaz:316/86 11. Lawrie-Blum v. Land Baden-Württemberg (66/85), 3 July 1986: [1986] E.C.R. 2121, [1987] 3 C.M.L.R. 389. Gaz:66/85 12. Cristini v. S.N.C.F. (32/75), 30 September 1975: [1975] E.C.R. 1085, [1976] 1 C.M.L.R. 573. Gaz:32/75 13. Casagrande v. Landeshauptstadt München (9/74), 3 July 1974: [1974] E.C.R. 773, [1974] 2 C.M.L.R. 423. Gaz:9/74 14. Alaimo v. Prefet du Rhone (68/74), 29 January 1975: [1975] E.C.R. 109, [1975] 1 C.M.L.R. 262. Gaz:68/74 15. Re University Fees: E.C. Commission v. Belgium (293/85) 2 February 1988: [1989] 2 C.M.L.R. 527. Gaz:293/85 16. Brown v. Secretary of State for Education (197/86), 21 June 1988: [1988] 3 C.M.L.R. 403. Gaz:197/86 17. Castelli v. Office National des Pensions pour Travailleurs Salaries (261/83), 11 July 1984: [1984] E.C.R. 3199, [1987] 1 C.M.L.R. 465. Gaz:261/83 18. Reina v. Landeskreditbank Baden-Württemberg (65/81), 14 January 1982: [1982] E.C.R. 33, [1982] 1 C.M.L.R. 747. Gaz:65/81 19. Michel S. v. Fonds National de Reclassement Social des Handicapes (76/72), 11 April 1976: [1973] E.C.R. 457. Gaz:76/72 *549 The following additional cases were referred to in argument: 20. Macmahon v. Department of Education and Science (Chancery Division), 16 July 1982: [1982] 3 C.M.L.R. 91, [1982] 3 W.L.R. 1129. Gaz:GB820716 21. Ministere Public v. Mutsch (137/84), 11 July 1985; [1985] E.C.R. 2681, [1986] 1 C.M.L.R. 648. Gaz:137/84 TABULAR OR GRAPHIC MATERIAL SET FORTH AT THIS POINT IS NOT DISPLAYABLE Opinion of the Advocate General (Sir Gordon Slynn) Mrs. Lair, the plaintiff in the national proceedings, is a French national. She has lived in Germany since at least 1979. She was employed there by the Deutsche Bank for two and a half years from 1 January 1979 to 30 June 1981. She then received State unemployment benefit from 1 July 1981 to 31 October 1982 (following a restraining course between 1 September 1981 to 31 August 1982), was employed for the month of November 1982, unemployed and receiving State benefit from 1 December 1982 to 20 April 1983, employed for three months and then again unemployed and in receipt of benefit from 2 August 1983 to 30 September 1984. She then began a degree course in Romance and Teutonic languages and literature at the University of Hanover. She had applied for an education grant which was refused by a decision of 18 September 1984. Her objection to that refusal was dismissed by the University on 19 October 1984 on the grounds that foreigners could only be given education grants if they had been engaged in fulltime employment in the Federal Republic for at least five years and had therefore paid tax and social security contributions. Periods of unemployment could not be taken into account. The requirement of five years regular employment for foreigners resident in Germany is imposed by section 8(2) of the Federal Act on Training Grants. Section 8(1) of the same Act authorises such grants for, inter alios, children who, as children of nationals of member-States, are entitled to freedom of movement or to reside in the Federal Republic. Those children's parents have to have worked for only three years including periods of unemployment. Mrs. Lair challenged the University's refusal in the Verwaltungsgericht (administrative court) at Hanover, claiming that periods of retraining and unemployment during which she was entitled to unemployment benefit must be regarded as the equivalent of periods of employment in calculating the relevant five years. She *550 says further that since persons whose parents have worked in the Federal Republic for three years, including periods of unemployment, are entitled to grants, it is discriminatory (semble between non-nationals) contrary to Article 7 EEC to refuse her a grant unless she has been employed for five years. She also claims that education grants are a social advantage within the meaning of Article 7(2) of Regulation 1612/68. The Hanover court, from which this reference under Article 177 comes, considered that the German legislation must be interpreted as requiring five years actual paid employment, since it was clearly the legislator's intention to make education grants available only to foreigners who had contributed by their own work to the gross national product and thus to the social fund out of which the grants are financed. It also considered that the distinction drawn in German law between students relying on their own work experience in Germany and those who relied on their parents' employment does not constitute unequal treatment prohibited by the German Grundgesetz (Constitution). It had doubts, however, as to whether it was necessary for a person claiming benefits under Article 7(2) of Regulation 1612/68 to continue in the status of a worker and whether the rule of five years' employment was contrary to Article 7 EEC. It found 'open to objection' the argument advanced by the University that 'the taxpayer principle' required that only a person who had contributed to the gross national product should be entitled to grants. It stressed the nexus between worker status and entitlement to social advantages under Regulation 1612/68 and the relationship between paragraphs (2) and (3) of Article 7 of that regulation. Accordingly it felt that it required the guidance of the Court in deciding whether Articles 48 and 49 of the Treaty and Article 7 of Regulation 1612/68 entitled the plaintiff to a grant or, if not, whether the failure to award her a grant constituted discrimination contrary to Article 7 of the Treaty. The following questions are therefore now before the Court: 1. Does Community law entitle nationals of member-States of the European Community who go to take up employment in other member-States then, after giving up their employment, commence a higher education course leading to a job qualification (in this case, a course in Romance languages and German) to claim an education grant on the same criteria of aptitude and need as that social advantage is accorded to nationals of the host member-State? 2. Does the fact that a member-State accords grants for higher education courses leading to job qualifications to its own nationals on the basis of aptitude and need but accords the same grant to nationals of other member-States only if they can also show that they have been employed in the host member-State for at least five years before the start of the course concerned constitute discrimination contrary to Article 7 of the EEC Treaty? *551 Article 7 of Regulation 1612/68 reads as follows (as far as is relevant): 1. A worker who is a national of a member-State may not, in the territory of another member-State, be treated differently from national workers by reason of his nationality in respect of any conditions of employment and work, in particular as regards remuneration, dismissal, and should he become unemployed, reinstatement or re-employment. 2. He shall enjoy the same social and tax advantages as national workers. 3. He shall also, by virtue of the same right and under the same conditions as national workers, have access to training in vocational schools and retraining centres. It appears that no fees are payable in respect of Mrs. Lair's course. The ' education grant' which she seeks is intended solely for her maintenance and takes the form of a loan repayable within a certain number of years after the end of the course. As to the first question, it is to be noted that Regulation 1612/68 is concerned with 'freedom of movement of workers' within the Community. To claim the rights conferred by Article 7 she must thus show that she does so as 'a worker'. The Court has recently underlined this in Case 316/85 Centre Public v. Lebon [FN2] in holding that a person seeking work and the children of a worker do not have rights under Article 7. FN2 [1987] E.C.R. 2811, [1989] 1 C.M.L.R. 337. It is clear law, however, that 'worker' must be interpreted as a matter of Community law: the concept does not vary from member-State to member-State and cannot be restricted by national measures: Case 75/63 Hoekstra v. Bestuur der Bedrijfsvereniging voor Detailhandel en Ambachten. [FN3] Even though the rules on freedom of movement of workers 'cover only the pursuit of effective and genuine activities to the exclusion of activities on such a small scale as to be regarded as purely marginal and ancillary' and 'guarantee only the free movement of persons who pursue or are desirous of pursuing an economic activity' the concept of 'worker' must be broadly construed: Case 53/81 Levin v. Staatssecretaris Van Justitie. [FN4] In Case 66/85, Lawrie-Blum v. Land BadenWürttemberg [FN5] the Court specified that the essential characteristic as to whether a person is a worker is that during a certain period of time he performs services for and under the direction of another in return for remuneration. FN3 [1964] E.C.R. 177, [1964] C.M.L.R. 319. FN4 [1982] E.C.R. 1035 At 1050, [1982] 2 C.M.L.R. 454 at 468. FN5 [1986] E.C.R. 2121, [1987] 3 C.M.L.R. 389. All the indicia in this case are that the applicant exercised her right to move to Germany under Article 48 of the Treaty as a worker; during the periods of her employment and for the purposes of Regulation 1612/68 during her periods of unemployment, which *552 as far as is known were involuntary, and retraining when she received unemployment benefit, she was 'a worker'. She thus at this period was entitled to exercise the rights given by that regulation unless it is justified to impose a limit of five years' employment before she can qualify as a worker. Whether five years can be justified as an absolute yardstick in deciding whether a person really is a worker for the purposes of the regulation is discussed in the reference and has been much debated in these proceedings. It is convenient to deal with this argument first before turning specifically to the terms of Article 7(2) and Article 7(3). For the purpose of the rights given by Article 48, clearly no qualifying period can be prescribed. The right to move to another member-State to work postulates that the individual is not there in the first place. Leaving aside the issue whether a person has a right to move to look for work, the question under Article 48(3)(a) and (b) is whether he has accepted an offer of employment. If he has, the right vests immediately, subject of course to the prescribed limitations as to such matters as public security. He does not have to serve a period in order to qualify as a worker. Under the regulation the position is different. It is not enough to show that a person has accepted an offer of employment. He must be a worker in the member-State in question. That seems to me to involve that he must have exercised his right to move to take up employment and be in the host State in the capacity of a worker as well as doing a genuine and effective job (Levin) which satisfies the necessary characteristics of an employment relationship (Lawrie-Blum). If he is there as such a worker the collateral intentions behind his going (e.g. that he wants his wife and children to be in a particularly agreeable area or near to a particular educational institution) are irrelevant. But if he goes there not genuinely in the capacity of a worker but e.g. in order to become a student or to gain a short, useful experience before his studies begin, then it does not seem to me that he is to be regarded as a worker for the purposes of Article 7(2) and (3) of the regulation, even if during that period he is doing genuine and effective work which satisfies the test in Lawrie-Blum. Rights under those provisions are given only to persons in a member-State genuinely in the capacity of a worker. Once it is clear that he is a genuine worker no period of employment can be prescribed to limit his rights under the regulation. In its judgments in Cases 249/83Hoeckx v. Openbaar Centrum voor Maatschappelijk Welzijn [FN6] and 122/84 Scrivner v. Centre Public D'Aide Sociale de Chastre, [FN7] the Court held that it was not possible to prescribe a minimum period of residence *553 before a person can be entitled to the particular social advantages in issue. However, in both those cases it is clear that the persons concerned were migrant workers and they are described as such. If the issue, however, is whether a person is a worker, different questions arise. In my view it can be relevant to have regard to the length of the period a person has been in a member-State as well as to what he has been doing in order to decide whether he is there in the capacity of a genuine worker. FN6 [1985] E.C.R. 973, [1987] 3 C.M.L.R. 633. FN7 [1985] E.C.R. 1027, [1987] 3 C.M.L.R. 638. If, as a matter of the practical application of the regulation, it is right to take a specified test period as a guideline (as I think it is) to see whether a person is a worker, then it seems to me that it cannot reasonably exceed one year. On any view a period of five years to prove that a person is there genuinely in the capacity of a worker cannot be justified. If, however, it is clear that even before that period (and this may well be the exceptional case) a person moved to work and became a genuine worker, and then decided to undertake vocational training, he has the rights conferred by Article 7(3). If it is not clear, then a period of a year seems to me to be a reasonable prerequisite in order to decide the question whether he is a worker for the purposes of Article 7. It is obvious that even a year is not necessarily a watertight test since the potential student may not be deterred by a year's activity. On the other hand, some limit has to be imposed which does not unduly protract the undertaking of vocational training at the right stage. As a working rule a year is acceptable unless as already indicated it is clear even before that period that a person is there as a genuine worker. It is also obvious that this approach will produce difficult cases; that is no novelty either for national administrations or courts. Until in relation to maintenance grants there is either a system of reciprocity between member-States or agreement that each member-State maintains its own students when working in another member-State, difficulties seem to be inevitable. I do not find it possible to accept that working for however short a period is necessarily sufficient to give rights to a maintenance grant under Article 7. It is unacceptable that the person who honestly says, 'I am going as a student' should get no maintenance grant under the regulation, whereas the person who gets a job for a day, or a week or a month, in order essentially to be in the memberState to study should be able to say on day one or day seven or day thirty-one; 'I am now a worker; pay me a grant under Article 7'. On the facts of the case it seems clear, and as I read the reference the national court was satisfied, that the applicant went to and was in the Federal Republic in the capacity of a genuine worker economically integrated into the host State. To require her to prove work for five years when, as far as is known, she was *554 involuntarily unemployed during a large part of the eight years during which she has resided in Germany seems to me to be a restriction of her rights to claim to be a worker and to claim the benefits of Article 7 which cannot be justified. It is said, however, by the German Government, supported by the Danish Government, which have both submitted observations, that when she became a student the applicant ceased to be a worker so that at any rate during her period as a student she no longer had any rights under the regulation. In reply to the argument that the Court's case law extends the benefit of Article 7 of the regulation to former workers and to the families of former or deceased workers (e.g. Case 32/75 Cristini v. S.N.C.F. [FN8]) it is said that such indirect benefits are granted by reference to the former worker's status as a worker. FN8 [1975] E.C.R. 1085, [1976] 1 C.M.L.R. 573. Although it may well be that certain rights conferred by the regulation are not available to someone who is a student, whilst a student, it does not follow that a person who as a worker opts to become a full-time student has no rights under the regulation. It depends on the nature of the right conferred. Atlhough the question does not specifically reflect the wording of Article 7(3) of the regulation, it is convenient to begin with that paragraph because it is discussed in the order for reference in relation to Article 7(2) and also because if Article 7(3), the more specific provision, applies the applicant does not need or may not be able to rely on Article 7(2). The right under Article 7(3) in the English text is the right under the same conditions as national workers to 'access to training in vocational training schools and retraining centres'. It is, however, to be noted that, in the other language texts, this reference to access apparently does not appear. Thus, the French text reads: 'il bénéficie également au même titre et dans les mêmes conditions que les travailleurs nationaux, de l'enseignement des écoles professionelles et des centres de réadaptation ou de rééducation'. The German text similarly reads 'Er kann mit gleichen Recht und unter den gleichen Bedingungen wie die inländischen Arbeitnehmer Berufsschulen und Umschulungszentren in Anspruch nemen.' It seems to me plain that such right, whether of access or training, is given to the worker. He can exercise it, and he is entitled to the full benefit of it, even if it means that during the period of training he ceases to work. To say that he can exercise the right by going to a vocational training school but that, the moment he does so, he loses all the benefits conferred on national workers deprives the provision of all content, indeed of all sense. It follows that if the worker goes to a vocational training school he is entitled to the same treatment as a national worker who, it *555 seems, for the purposes of the provision does not cease to be a worker when he becomes a student and who does receive the educational grant in issue in this case. I cannot for my part see that Article 7(3) is limited to workers who do a part-time course as students and who, it is accepted, will be entitled to claim as workers. If their work is full-time they may not need a maintenance grant. It is essentially the student who undertakes a full-time course who needs a grant. It is, however, sought to qualify any right given on the basis that it only applies where the course undertaken is connected with the work previously done. I do not find this limitation in Article 7(3) either expressly or impliedly in relation to training in vocational schools. Such a limitation as is suggested in my view conflicts with the aim of the regulation which is directed to the mobility of labour on equal terms and which recognises the 'close links' which exist between freedom of movement for workers, employment and vocational training. Although the reasoning said to lie behind the refusal (that only those who contribute to the gross national product and pay taxes for five years should benefit) is understandable, it seems to me, as appears to have been the opinion of the administrative court, that it is not a factor which can be brought into the equation. Rights are given to workers as such and not by reference to their contribution to the gross national product. Moreover, to adopt five years as a condition because most university courses last five years seems to me to be an unjustified restriction on the right conferred by Article 7(3). It seems very unlikely that most workers would in any event pay the amount of the grant by way of social contributions during that time. On the other side, taken to its logical conclusion, this argument is capable of leading to a suggestion that what students should receive by way of a grant should be related to what they have contributed to the social fund from which the grants are made. I would not accept this argument. Nor do I think that the provisions of Article 7(3) are limited merely to the right to attend a course shorn of any rights to a grant. If one of the conditions under which a national worker can attend such a course is that he obtains a grant, then a grant is one of the conditions available to the worker from another memberState. This approach seems to me to be entirely consistent with the Court's decisions under Article 12 of the regulation, which gives a right to children of a national of one member-State employed, or who has been employed, in another member-State to be 'admitted to that State's general educational, apprenticeship and vocational training courses under the same conditions as the nationals of that State. ...' In Case 9/74 Casagrande v. Landeshauptstadt München [FN9] the Court held that this applied 'not only to rules *556 relating to admission but also to general measures intended to facilitate educational attendance' which in that case covered means-tested educational grants in respect of children of national workers. Case 68/74 Alaimo v. Préfet du Rhône [FN10] is to the same effect: Article 12 covers ' all the rights arising from admission to educational courses' given to a national's children. 'Under the same conditions' appears in both Article 12 and Article 7(3) and in my view should cover grants equally in both places. FN9 [1974] E.C.R. 773, [1974] 2 C.M.L.R. 423. FN10 [1975] E.C.R. 109, [1975] 1 C.M.L.R. 262. The question is thus whether the training sought here is in a vocational training school. I have come to the conclusion that 'vocational training' can take place in a university (my Opinions in Cases 293/85 E.C. Commission v. Belgium [FN11] and 24/86 Blaizot v. University of Liège) [FN12]. In Brown [FN13] both Germany and Denmark appear to accept this. If that is right a university in my view is pro tanto a vocational training school and I see no valid reason to apply Article 7(3) to only some institutions of education where vocational training is given. There is no magic in the word ' school': within a university the word is not uncommonly found as being a part of the university as in 'law school' or 'medical school'. FN11 [1989] 2 C.M.L.R. 527. FN12 [1989] 1 C.M.L.R. 57. FN13 [1988] 3 C.M.L.R. 403. Whether the training is vocational training depends on the Court's test in Gravier as subsequently to be considered in Case 293/85 Belgium. The questions referred speak of a 'higher education course leading to a job qualification', in this case a course in Romance languages and German. I read that as meaning that the national court was satisfied that the course was vocational training, not least since otherwise the references to Article 7(3) of the regulation and to Articles 7 and 128 of the Treaty and to Gravier are difficult to understand. If that is right then it seems to me on the facts stated in the order for reference that a worker who takes up such a course of vocational training is entitled to the benefit of Article 7(3), i.e. to a grant under the same terms as national workers. If the referring court has not already decided that matter, it will need to decide whether this was vocational training in the light of Gravier and Belgium. Article 7(2) confers the right to enjoy the same social advantages as national workers. The Court has in a number of cases construed such advantages as being those available to national workers by reason of their objective status as workers or by the mere fact that they are residents in their national State and whether or not such advantages are directly related to the contract of employment (e.g. Case 261/83 Castelli v. Office National des Pensions pour Travailleurs Salaries). [FN14] The question is therefore whether if a *557 national worker of one member-State goes to take up employment in another memberState and then begins a higher education course leading to a job qualification he can claim an educational grant as a social advantage on the same terms as the nationals of that State. FN14 [1984] E.C.R. 3199, [1987] 1 C.M.L.R. 465. The United Kingdom contends not, since lex specialis derogat legi generali. Article 7(3) covers the relevant ground and excludes the application of Article 7(2). If it were not so, it is said, there would be duplication. The United Kingdom also stresses the word 'also' in Article 7(3) which, it is said, shows that training in a vocational school (and therefore presumably education in general) is quite separate from the social advantages referred to in Article 7(2). I do not accept this argument although I recognise its force. In the first place the Court has given a broad meaning to 'social advantage' as I have no doubt the regulation intended. Thus in Case 65/81 Reina v. Landeskreditbank BadenWürttemberg, [FN15] which covered childbirth loans to national workers on demographic grounds, the Court accepted that 'the concept of social advantage referred to in Article 7(2) of the regulation encompasses not only the benefits accorded by virtue of a right but also those granted on a discretionary basis.' Those benefits are obviously not limited to cash payments but they include them. Similarly, as already shown, Article 12 has been given a wide construction (Casagrande). It seems to me that educational grants generally are perfectly capable of falling within 'social advantages' for workers without giving a particularly wide meaning to that term. FN15 [1982] E.C.R. 33, [1982] 1 C.M.L.R. 747. Is Article 7(2) cut down by Article 7(3)? Article 7(3) is limited to training in vocational schools. There remain other kinds of education, in particular general education. If Article 7(3) is to be treated as dealing exclusively with training in vocational schools then other educational grants fall within Article 7(2). Equally, if the proper construction of Article 7(3) is that, contrary to my view, it applies only to fees or the right to attend, then it seems to me that educational grants for workers at vocational training schools fall within Article 7(2) as do general education grants. The word 'also' in Article 7(3), 'également' in the French text, does not seem to me to exclude this result. It might well have been thought that it was arguable that, although general education is a 'social' advantage, vocational training is an 'employment' advantage, so that it was necessary to protect against the latter being by interpretation excluded from Article 7(2) by providing specifically for it in Article 7(3). In this context it is not relevant that the national legislation in question covers a class of nationals as a whole and is not confined *558 to national workers or their children (Case 76/72 Michel S. v. Fonds National de Reclassement Social des Handicapés. [FN16] FN16 [1973] E.C.R. 457 at 464. Accordingly, under either Article 7(3) if her course is training in a vocational school or under Article 7(2) if it is general education, the applicant is entitled to be treated in the same way as national workers in so far as education grants are concerned. It is argued that this conclusion cannot be right because educational and social policy remains within the sole control of member-States and the Community cannot interfere. It is true that member-States are left to pursue such policies. The Court, however, has made it abundantly clear that they must be pursued in such a way as not to conflict with Community provisions. Thus in Casagrande the Court said [FN17]: 'Although educational and training policy is not as such included in the spheres which the Treaty has entrusted to the Community institutions, it does not follow that the exercise of powers transferred to the Community is in some way limited if it is of such a nature to affect the measures taken in the execution of such a policy as that of education and training'. Again in Reina, where demographic policy was relied on and a member-State's freedom to deal with it accepted, the Court said [FN18]: 'this does not mean, however, that the Community exceeds the limits of its jurisdiction solely because the exercise of its jurisdiction affects measures adopted in pursuance of that policy'. Accordingly childbirth loans were not to be treated as excluded from the ambit of Article 7(2) 'solely because they are granted for reasons of demographic policy'. FN17 At para. [12]. FN18 At para. [15]. Reliance was placed by the German Government on Regulation 1251/70. It is said that such a regulation does not confer upon students a right to remain in the territory of a member-State after having been employed in that State. Accordingly they cannot claim any rights as workers to stay and undertake studies. I do not find that regulation helpful. It seems to me to be dealing with specific situations where, for example, a worker has reached retirement age or has become incapacitated and is permanently giving up work or where he works in another member-State whilst keeping his residence in the State in which he previously worked and to which he returns once a month. The absence of students from such a regulation does not seem to me to bear upon the questions in this case. Does the applicant have an additional right under Article 7 of the Treaty to this kind of grant? Such a right can only exist if the principle stated in Gravier applies to maintenance grants for vocational training. In my view, it does not, for the reasons given in my Opinion in Brown. Though having in other cases taken the *559 opposite view, in Brown the Commission, it seems to me, was accepting this position. A fortiori Article 7 does not apply to grants for non-vocational education. Accordingly, in my view the questions referred fall to be answered on the following lines: A national of one member-State who moves to another member-State and takes up employment in the capacity of a worker is entitled to an award of an educational grant for maintenance subject to the same criteria and on the same terms as national workers (a) in respect of general education as a social advantage under Article 7(2) of Regulation 1612/68: (b) in respect of training in vocational schools under Article 7(3) of that regulation. The plaintiff's costs fall to be dealt with by the national court. The costs of the member-States which have submitted observations and of the Commission are not recoverable. JUDGMENT [1] By an order of 19 November 1985, which was received at the Court on 12 February 1986, the Verwaltungsgericht Hannover referred to the Court for a preliminary ruling under Article 177 EEC two questions relating in particular to the interpretation of Article 7 EEC and Article 7 of Council Regulation 1612/68 on freedom of movement for workers within the Community. [2] Those questions arose in proceedings brought by Mrs. Lair, the plaintiff in the main proceedings (hereinafter referred to as 'the plaintiff'), contesting the refusal by the University of Hanover, the defendant in the main proceedings (hereinafter 'the University'), to award her a maintenance and training grant for the pursuit of her university studies. [3] It is apparent from the documents before the Court that the plaintiff is a French national and has been resident since 1 January 1979 in the Federal Republic of Germany, where she worked as a bank clerk until 30 June 1981. Between 1 July 1981 and 30 September 1984, she went through alternate periods of unemployment and retraining, interspersed with brief periods of employment, the last of which came to an end on 21 July 1983. Since 1 October 1984, she has been studying Romance and Germanic languages and literature at the University. It has not been disputed in the main proceedings that that course of study leads to a professional qualification. [4] Under section 8 of the German Act on grants for training and further education (Bundesausbildungsförderungsgesetz--hereinafter referred to as 'the Act on training grants') as published on 6 June *560 1983 [FN19] and subsequently amended, assistance for training, including university study, may be awarded not only to German nationals but also to certain categories of foreigners, inter alia those who have resided and been engaged in regular work [FN20] in the Federal Republic for a total period of five years prior to the commencement of the part of the training course for which assistance is available; there is no requirement of previous work where German nationals are concerned. FN19 [1983] I Bgb1. 645, Corrigendum p. 1680. FN20 'ctivit1e Professionnelle' in the French. The Court translator has used the phrase 'occupational activity', but that is gobbledygook. What it means is activity as an employee or self-employed i.e. paid for as part of one's income, but not voluntary or as a hobby, i.e. not paid for. For this the English word ' work', albeit it can be ambiguous, is a perfectly proper translation which, moreover, is the normally used expression. We propose to use it in future.--Ed. [5] Under section 1 of the Act on training grants, applicants are entitled to such a grant where they have no other means of supporting themselves and financing their training. Grants are awarded, inter alia, for training 'for the purpose of acquiring a professional qualification' until its conclusion by the award of a diploma (see section 7 of the Act). They are made for ' maintenance and training' and their amount is fixed at a flat rate for various categories of beneficiary in sections 12 to 14b, no distinction being made between what is required for maintenance and for training. Under section 17 of the Act, in the case of university study assistance is awarded in the form of interest-free loans to be reimbursed in instalments beginning five years after the end of the maximum duration of the training in respect of which they were made. Under section 10(3) of the Act, as a rule no grants are made to applicants who are aged 30 or over at the beginning of the part of the training course for which aid is available. [6] The grant for which the plaintiff applied was refused by the University on the ground that she did not fulfil the condition for the award of assistance to foreigners inasmuch as she had not been engaged in work in the Federal Republic of Germany for at least five years. The University considered that only periods during which a foreigner is engaged in work and in that capacity pays taxes and social security contributions, which are ultimately what enable the Federal Republic of Germany to make social investments such as maintenance and training grants, can be regarded as periods of work for the purposes of section 8 of the Act. [7] The national court, to which the plaintiff appealed against that decision, is uncertain whether she may claim assistance under section 8 of the Act in conjunction with Articles 48 and 49 of the EEC Treaty and Article 7 of Regulation 1612/68 or, if not, whether refusal of such a grant constitutes a breach of the prohibition of discrimination contained in Article 7(1) EEC. *561 [8] The national court therefore referred the following questions to the Court: 1. Does Community law entitle nationals of member-States of the European Community who take up employment in another member-State and there, after giving up their employment, commence a course of higher education leading to a professional qualification (in this case, a university course in Romance and Germanic languages and literature) to claim a training grant on the same basis of aptitude and need as that social advantage is accorded to nationals of the host member-State? 2. Does the fact that a member-State accords grants for higher education leading to vocational qualifications to its own nationals on the basis of aptitude and need but accords the same grant to nationals of other member-States only if they have worked in the host member-State for at least five years before the start of the course concerned constitute discrimination contrary to Article 7 of the EEC Treaty? [9] Reference is made to the Report for the Hearing for a fuller account of the relevant legal provisions and the background to the main proceedings and of the observations submitted to the Court, which are mentioned hereinafter only as far as is necessary for the reasoning of the Court. [10] The national court's second question, which raises the general problem whether a student is entitled, by reason solely of being a national of another member-State, to such a grant, should be examined first. Interpretation of Article 7 of the EEC Treaty (the second question) [11] This question seeks in essence to determine whether the first paragraph of Article 7 EEC applies to grants for maintenance and training made by a member-State to its nationals for the purpose of university studies. [12] It should be pointed out first of all that in Case 293/83, Gravier v. City of Liège, [FN21] the Court held that unequal treatment based on nationality is to be regarded as discrimination prohibited by Article 7 of the Treaty if it falls within the scope of the Treaty and that conditions for access to vocational training do fall within its scope. Case 24/86, Blaizot v. University of Liège, [FN22] the Court further ruled that, in general, university studies fulfil the conditions required in order to be regarded as vocational training for the purposes of the EEC Treaty. FN21 [1985] E.C.R. 593. FN22 [1989] 1 C.M.L.R. 57. [13] On the other hand, the Court did not have occasion to express a view in those judgments as to whether a national of another member-State is entitled, when undertaking such studies, to assistance given by a member-State to its own nationals. *562 [14] It is only to the extent to which assistance of that kind is intended to cover registration and other fees, in particular tuition fees, charged for access to education that by virtue of the judgment in Gravier it falls, as relating to conditions of access to vocational training, within the scope of the EEC Treaty and that, consequently, the prohibition of discrimination on grounds of nationality laid down by Article 7 EEC is applicable. [15] Subject to that reservation, it must be stated that at the present stage of development of Community law assistance given to students for maintenance and for training falls in principle outside the scope of the EEC Treaty for the purposes of Article 7. It is, on the one hand, a matter of educational policy, which is not as such included in the spheres entrusted to the Community institutions (cf. Gravier) and, on the other, a matter of social policy, which falls within the competence of the member-States in so far as it is not covered by specific provisions of the EEC Treaty (see the judgment in Joined Cases 281, 283, 285 and 287/85, Germany and Others v. E.C. Commission-- migration policy). [FN23] FN23 [1987] E.C.R. 3203, [1988] 1 C.M.L.R. 11. [16] The answer to the second question must therefore be that at the present stage of development of Community law the first paragraph of Article 7 EEC applies to assistance for maintenance and training given by a member-State to its nationals for the purposes of university studies only in so far as such assistance is intended to cover registration and other fees, in particular tuition fees, charged for access to education. Interpretation of Article 7 of Regulation 1612/68 (the first question) [17] The first question, relating to the interpretation of Article 7 of Regulation 1612/68, comprises three distinct branches involving, respectively, the following questions: Whether maintenance and training grants awarded for university studies leading to a professional qualification constitute a 'social advantage' within the meaning of Article 7(2) of Regulation 1612/68. Whether a national of another member-State who undertakes university studies in the host State after having engaged in occupational activity in that State is to be regarded as having retained his status as a 'worker' and is entitled in that capacity to the benefit of Article 7(2) of Regulation 1612/68. Finally, whether a host member-State may make the right to the 'same social advantages' provided for in Article 7(2) of Regulation 1612/68 conditional upon a minimum period of prior occupational activity within its territory. *563 The concept of social advantage [18] In order to define the concept of social advantage within the meaning of Article 7(2) of Regulation 1612/68, it must first be recalled that the aim of that regulation is to enable the objectives laid down in Articles 48 and 49 of the EEC Treaty in the field of freedom of movement for workers to be achieved. That freedom forms part of the freedom of movement for persons referred to in Article 3(c) of the EEC Treaty and the fundamental freedoms guaranteed by the Treaty. [19] A worker who is a national of a member-State and who has exercised that fundamental freedom is, under Article 7(2) of Regulation 1612/68, to enjoy 'the same social ... advantages as national workers' in the host member-State. [20] In addition to the specific right mentioned in Article 7(1) of that regulation not to be treated differently from national workers in respect of any conditions of employment and work, in particular as regards reinstatement or re-employment, 'social advantages' include all other advantages by means of which the migrant worker is guaranteed, in the words of the third recital in the preamble to the regulation, the possibility of improving his living and working conditions and promoting his social advancement. [21] In that connection the Court has ruled that it follows from Regulation 1612/68 as a whole and from the objective pursued that the advantages which that regulation extends to workers who are nationals of other member-States are all those which, whether or not linked to a contract of employment, are generally granted to national workers primarily because of their status as workers or by virtue of the mere fact of their residence on the national territory and whose extension to workers who are nationals of other member-States therefore seems likely to facilitate the mobility of such workers within the Community: Case 249/83, Hoeckx v. Openbaar Centrum voor Maatschappelijk Welzijn, Kalmthout, [FN24] and Case 122/84, Scrivner v. Centre Public D'Aide Sociale de Chastre. [FN25] FN24 [1985] E.C.R. 973, [1987] 3 C.M.L.R. 633. FN25 [1985] E.C.R. 1027, [1987] 3 C.M.L.R. 638. [22] It follows that a worker who is a national of another member-State and has exercised his right as such to freedom of movement is entitled in the same way as national workers to all the advantages available to such workers for improving their professional [FN26] qualifications and promoting their social [FN27] advancement. FN26 This does not mean 'professional' but rather 'vocational' or 'career'. ' Job qualifications' expresses the meaning better.--Ed. FN27 This does not mean 'social advancement' in the usual English sense of acquiring greater social status. Again it means 'career' advancement.--Ed. [23] It must now be considered whether or not a grant such as that at issue in the present case is covered by the concept of social *564 advantage as interpreted above. It should be pointed out that such assistance, awarded for the student's maintenance and training, is particularly appropriate from a worker's point of view for improving his job qualifications and promoting his career advancement. Moreover, the grant and the repayment of the benefits received are linked in national law to the beneficiary's means, and are thus dependent on social criteria. [24] It follows that such a grant constitutes a social advantage within the meaning of Article 7(2) of Regulation 1612/68. [25] It was argued before the Court that the application of Article 7(2) of Regulation 1612/68 was precluded by Article 7(3) of the same regulation by virtue of the specific content of the latter, which provides that a worker who is a national of a member-State 'shall also, by virtue of the same right and under the same conditions as national workers, have access to training in vocational schools and retraining centres.' [26] In that regard, it should be noted that in order for an educational institution to be regarded as a vocational school for the purposes of that provision the fact that some vocational training is provided is not sufficient. The concept of a vocational school is a more limited one and refers exclusively to institutions which provide only instruction either alternating with or closely linked to an occupational activity, particularly during apprenticeship. That is not true of universities. [27] However, while it is true that Article 7(3) of the regulation provides for a specific social advantage, that does not mean that a grant awarded for maintenance and training with a view to the pursuit of studies in an institution which does not fall within the concept of a vocational school under that provision cannot be held to be a social advantage within the meaning of Article 7(2). [28] The answer to the first branch of the first question must therefore be that a grant awarded for maintenance and training with a view to the pursuit of university studies leading to a professional qualification constitutes a social advantage within the meaning of Article 7(2) of Regulation 1612/68. The concept of worker [29] In this connection, the three member-States which have submitted observations argue that a person loses the status of worker, on which the social advantages depend, when, in the host State, he gives up either his previous occupational activity or, if unemployed, his search for employment in order to pursue full-time studies. The Commission disagrees with that view. [30] It should be noted first of all that neither Article 7(2) of Regulation 1612/68 nor Articles 48 or 49 of the EEC Treaty provide an express answer to the question whether a migrant worker who has interrupted his work in the host State in order to *565 pursue university studies leading to a job qualification is to be regarded as having retained his status as a migrant worker for the purposes of Article 7 of the regulation. [31] Although the wording of those provisions does not provide an express answer to that question, there is nevertheless a basis in Community law for the view that the rights guaranteed to migrant workers do not necessarily depend on the actual or continuing existence of an employment relationship. [32] With regard to nationals of another member-State who have not yet taken up employment in the host State, it should first be noted that Article 48(3)(a) and (b) guarantees such persons the right to accept offers of employment actually made and to move freely within the territory of the member-States for that purpose. Those provisions were implemented by Part I, Title I of Regulation 1612/68. [33] Persons who have previously pursued in the host member-State an effective and genuine activity as an employed person as defined by the Court (see Cases 53/81, Levin v. Staatssecretaris Van Justitie, [FN28] and 139/85, Kempf v. Staatssecretaris Van Justitie [FN29]) but who are no longer employed are nevertheless considered to be workers under certain provisions of Community law. FN28 [1982] E.C.R. 1035, [1982] 2 C.M.L.R. 454. FN29 [1986] E.C.R. 1741 [1987] 1 C.M.L.R. 764. [34] First, under Article 48(3)(d) EEC, persons who remain in the territory of a member-State after having been employed in that State are regarded as workers. Commission Regulation 1251/70 on the right of workers to remain in the territory of a member-State after having been employed in that State, which implemented that provision of the Treaty, gives workers whose work activity has terminated and their families the right, under certain conditions, to remain permanently in the territory of a member-State. Secondly, Council Directive 68/360 on the abolition of restrictions on movement and residence within the Community for workers of member-States and their families [FN30] prohibits member-States in certain circumstances from withdrawing a residence permit from a worker solely on the ground that he is no longer in employment. Thirdly, and lastly, under Article 7(1) of Regulation 1612/68 a migrant worker who has become unemployed may not be treated differently from national workers in the same position as regards reinstatement or re-employment. FN30 [1968] O.J. Spec. Ed. 485. [35] Furthermore, Article 7(3) of Regulation 1612/68 guarantees migrant workers access, by virtue of the same right and under the same conditions as national workers, to training in vocational schools and retraining centres. That right to specific training, guaranteed by Community legislation, does not depend on the continued existence of an employment relationship. *566 [36] It is therefore clear that migrant workers are guaranteed certain rights linked to the status of worker even when they are no longer in an employment relationship. [37] In the field of grants for university education, such a link between the status of worker and a grant awarded for maintenance and training with a view to the pursuit of university studies does, however, presuppose some continuity between the previous work activity and the course of study; there must be a relationship between the purpose of studies and the previous work activity. Such continuity may not, however, be required where a migrant has involuntarily become unemployed and is obliged by conditions on the job market to undertake occupational retraining in another field of activity. [38] Such a conception of freedom of movement for migrant workers corresponds, moreover, to current developments in careers. Continuous careers are less common than was formerly the case. Occupational activities are therefore occasionally interrupted by periods of training or retraining. [39] The answer to the second branch of the first question should therefore be that a national of another member-State who has undertaken university studies in the host State leading to a job qualification, after having engaged in work activity in that State, must be regarded as having retained his status as a worker and is entitled as such to the benefit of Article 7(2) of Regulation 1612/68, provided that there is a link between the previous work activity and the studies in question. The fixing of a minimum period of prior occupational activity as a condition for the granting of the same social advantages [40] In this regard, the three member-States which have submitted observations argue that any member-State is entitled to require that a national of another member-State applying for a maintenance and training grant with a view to the pursuit of university studies must first have engaged in work activity for a minimum period within its territory. The Commission disagrees with that point of view. [41] It should be stressed that a student who is a national of another memberState may claim such a grant for university training only in his capacity as a worker within the meaning of Article 48 EEC and Regulation 1612/68. The Court has held (see Cases 75/63, Hoekstra v. Bedrijfsvereniging Detailhandel, [FN31] and 53/81, Levin) that the concept of worker has a specific Community meaning and may not be defined on the basis of criteria laid down in national legislation. FN31 [1964] E.C.R. 177, [1964] C.M.L.R. 319 *567 . [42] Member-States cannot therefore unilaterally make the grant of the social advantages contemplated in Article 7(2) of the above regulation conditional upon the completion of a given period of occupational activity (see Case 157/84, Frascogna v. Caisse des Dépôts et Consignations). [FN32] FN32 [1985] E.C.R. 1739. [43] In so far as the arguments submitted by the three member-States in question are motivated by a desire to prevent certain abuses, for example where it may be established on the basis of objective evidence that a worker has entered a member-State for the sole purpose of enjoying, after a very short period of work activity, the benefit of the student assistance system in that State, it should be observed that such abuses are not covered by the Community provisions in question. [44] The answer to the third branch of the first question must therefore be that the host member-State cannot make the right to the same social advantages provided for in Article 7(2) of Regulation 1612/68 conditional upon a minimum period of prior occupational activity within the territory of that State. Costs The costs incurred by the Federal Republic of Germany, the Kingdom of Denmark, the United Kingdom and the Commission of the European Communities, which have submitted observations to the court, are not recoverable. As these proceedings are, in so far as the parties to the main proceedings are concerned, in the nature of a step in the action pending before the national court, the decision as to costs is a matter for that court. Order THE COURT, in reply to the questions referred to it by the Verwaltungsgericht Hannover, by order of 19 November 1985, HEREBY RULES: 1. At the present stage of development of Community law the first paragraph of Article 7 of the EEC Treaty applies to assistance for maintenance and training given by a member-State to its nationals for the purposes of university studies only in so far as such assistance is intended to cover registration and other fees, in particular tuition fees, charged for access to education. 2. A grant awarded for maintenance and training with a view to the pursuit of university studies leading to a professional qualification constitutes a social advantage within the meaning of Article 7(2) of Council Regulation 1612/68 on freedom of movement for workers within the Community. *568 3. A national of another member-State who undertakes university studies in the host State leading to a professional qualification, after having engaged in occupational activity in that State, must be regarded as having retained his status as a worker and is entitled as such to the benefit of Article 7(2) of Regulation 1612/68, provided that there is a link between the previous occupational activity and the studies in question. 4. The host member-State cannot make the right to the same social advantages provided for in Article 7(2) of Regulation 1612/68 conditional upon a minimum period of prior occupational activity within the territory of that State. (c) Sweet & Maxwell Limited [1989] 3 C.M.L.R. 545 END OF DOCUMENT
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