Establishment of Foreign Worker Case

CourtRegional Court (Germany)
Date30 a 1969
Federal Republic of Germany, Superior Administrative Court of Rhenish Palatinate
Establishment of Foreign Worker Case

Treaties Interpretation of treaties Miscellaneous European Convention on Establishment 1955 German-Greek Treaty on Navigation and Establishment 1960 Right of residence for nationals of Contracting StatesExtent ofIntention of treaty Comparison with similar treaties Right of establishment The law of the Federal Republic of Germany

Treaties Special kinds of European Convention on Establishment 1955, Article 10 Greek-German Treaty of Navigation and Establishment 1960, Article 7 Right of establishment Residence permit granted to foreign national Limitations thereto Extent of The law of the Federal Republic of Germany

The individual in international law Aliens Admission of aliens Right of establishment Residence permit granted to foreign national Conditions of residence National treatment European Convention on Establishment 1955 German-Greek Treaty of Navigation and Establishment 1960 The law of the Federal Republic of Germany

Summary: The facts:The plaintiff entered the Federal Republic of Germany with the intention of setting up a restaurant there. He was granted a residence permit which prohibited him from establishing any trade or business within the Federal Republic. He applied unsuccessfully to the issuing authority to delete the restrictive clause. The plaintiff appealed.

Held:The appeal was dismissed.

(1) The decision whether to grant a residence permit lay within the discretionary power of the Federal Republic. The discretion was a broadly drawn one and, provided the appropriate authorities did not act in an arbitrary manner, the decision could take into account the interests of the State and attach suitable limitations to the permit. The restrictions imposed here were quite legitimate. Federal law provided no right of residence to foreigners.

(2) The decision to grant the permit was not contrary to any bilateral or other agreement already concluded by the Federal Republic. Article 10 of the European Convention on Establishment 1955, and Article 7 of the German-Greek Treaty on Navigation and Establishment 1960 did not provide the nationals of the Contracting States with an unlimited right of residence. An examination of these and other relevant treaties showed that matters of residence and of establishment had consistently been treated separately. The application of the principle of national treatment to the conditions of establishment and employment had always presupposed the grant of a residence permit which was a separate and independent requirement.

(3) The principle of national treatment was only a relevant consideration once a residence permit had been granted.

The following is the text of the judgment of the Court:

The plaintiff, a foreign worker [Gastarbeiter], entered the Federal Republic by means of the facility provided by the German-Greek Labour Recruitment Agreement. He was issued with a residence permit which included the following clause:

The plaintiff, however, intends to open a...

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