COMMISSION SENDS LUXEMBOURG REASONED OPINION OVER CAR INSURANCE RULES.

The European Commission on 17 July sent Luxembourg a reasoned opinion over rules governing its vehicle insurance bureau and guarantee fund which the Commission believes breach EU law: each year, the Luxembourg bureau of vehicle insurers and the common vehicle guarantee fund require all insured members to pay a flat-rate, non-refundable contribution, without taking into account whether they are established in Luxembourg or simply providing a service from other Member States. This financial contribution appears to be discriminatory compared to that required from companies established in Luxembourg, the Commission noted in a statement. Under Community law (Directive 90/618/EEC), the contribution should be calculated by reference to the premium income from the relevant class of insurance in Luxembourg or the...