Report for the Hearing delivered in Case 194/84

I — Facts and written procedure

1. Article 52 of the Act concerning the conditions of accession of the Hellenic Republic and the adjustments to the Treaties is worded as follows:

2. The Greek legislation, more specifically Article 13 of Emergency Law No 1704 of 4/14 April 1939 amending and supplementing Emergency Law No 33 of 1936 and the other laws concerning the protection of the national currency (Greek Official Journal, Part I, p. 149), provides as follows :

3. Since it considered that the Greek legislation cited above did not comply with Article 52 of the Act of Accession, the Commission, by a letter of 15 March 1983, requested the Greek Government to submit observations within a period of two months in respect of the infringement of Community law complained of.

4. The application was received at the Court Registry on 24 July 1984.

II — Conclusions of the parties

The Commission claims that the Court should:

The Hellenic Republic contends that the Court should:

III — Submissions and arguments of the parties

1. According to the Commission, it follows from Article 13 of Emergency Law No 1704/1939, which is still in force in the Hellenic Republic, that the Hellenic Republic, in breach of it obligations under Article 52 of the Act of Accession, has not progressively released funds blocked in Greece belonging to persons resident in the present Member States of the Community.

2. The Hellenic Republic first considers the scope of Article 13 of Emergency Law No 1704/1939. Under that provision, all debts owed to persons resident abroad which must be paid in Greece and which do not arise from free exchange are considered blocked and payment by the debtor of the sum owed may be effected only by placing that sum in a blocked account.

IV — Replies to questions put by the Court

1. In reply to a question put by the Court, the Commission explained that Articles 49 to 53 of the Act of Accession (Section 1 of Chapter 2 entitled Capital movements) contained provisions authorizing the Hellenic Republic to defer the liberalization of capital movements until 31 December 1985 at the latest, by way of derogation from the provisions of the first and second directives for the implementation of Article 67 of the Treaty. The purpose of Article 52 was therefore to lay down the conditions under which the provisions concerning blocked funds would be applied during the transition period expiring on 31 December 1985.

2. In reply to questions put by the Court, the Greek Government explained that in Greece the only type of account blocked is that governed by Article 13 of Emergency Law No 1704/1939, as amended by Article 7 of Law No 128/1975. In order for the provision at issue to be applicable it was necessary for there to be a debt which did not arise from a transfer through the free market (that is to say, without an obligation of integration into the Greek banking system) and, secondly, for the holder to be permanently resident abroad (irrespective of his nationality). No distinction was made in that respect between blocked accounts belonging to Community residents and such accounts belonging to residents of nonmember countries.

1 Language of the Case: Greek.