THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 87 thereof,

Having regard to the proposal from the Commission [OJ No C 16, 23. 1. 1990, p. 13.],

Having regard to the opinion of the European Parliament [OJ No C 260, 15. 10. 1990, p. 57.],

Having regard to the opinion of the Economic and Social Committee [OJ No C 182, 23. 7. 1990, p. 27.],

Whereas Article 85(1) of the Treaty may, in accordance with Article 85(3), be declared inapplicable to categories of agreements, decisions and concerted practices when satisfy the requirements of Article 85(3);

Whereas the detailed rules for the application of Article 85(3) of the Treaty must be adopted by way of a Regulation based on Article 87 of the Treaty;

Whereas cooperation between undertakings in the insurance sector is, to a certain extent, desirable to ensure the proper functioning of this sector and may at the same time promote consumers' interests;

Whereas the application of Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings [OJ No L 395, 30. 12. 1989, p. 1.] enables the Commission to exercise close supervision on issues arising from concentrations in all sectors, including the insurance sector;

Whereas exemptions granted under Article 85(3) of the Treaty cannot themselves affect Community and national provisions safeguarding consumers' interests in this sector;