CEDH · CASELAW;DECISIONS;DECCOMMISSION;ENG — 1 juillet 1991

.sDD6737AE { font-size:11pt } .s211D6B00 { margin-top:0pt; margin-bottom:0pt; line-height:normal; widows:0; orphans:0; font-size:8.5pt } .sBB9EE52A { font-family:Arial }                        AS TO THE ADMISSIBILITY OF                          Application No. 16239/90                        by R.                        against Sweden             The European Commission of Human Rights sitting in private on 1 July 1991, the following members being present:                MM.   C.A. NØRGAARD, President                   J.A. FROWEIN                   S. TRECHSEL                   E. BUSUTTIL                   G. JÖRUNDSSON                   A.S. GÖZÜBÜYÜK                   A. WEITZEL                   J.C. SOYER                   H.G. SCHERMERS                   H. DANELIUS              Mrs.   G.H. THUNE              Sir   Basil HALL              MM.   F. MARTINEZ                   C.L. ROZAKIS              Mrs.   J. LIDDY              MM.   L. LOUCAIDES                   J.-C. GEUS                   M.P. PELLONPÄÄ                   B. MARXER                  Mr.   H.C. KRÜGER, Secretary to the Commission           Having regard to Article 25 of the Convention for the Protection of Human Rights and Fundamental Freedoms;           Having regard to the application introduced on 20 November 1989 by R. against Sweden and registered on 1 March 1990 under file No. 16239/90;           Having regard to the report provided for in Rule 47 of the Rules of Procedure of the Commission;           Having deliberated;           Decides as follows:   FACTS           The facts as submitted by the applicant may be summarised as follows.           The applicant is a Swedish citizen, born in 1947.   He resides at M., Sweden.           The application concerns the introduction in Sweden of new legislation imposing a compulsory saving during a certain period: the 1989 Act on Temporary Savings (Lag om tillfälligt sparande).           The legislation on temporary savings was passed by the Swedish Parliament on 8 June 1989 and published on 16 June 1989 as SFS 1989:474 of the Swedish Law Gazette.   The Act entered into force on 1 July 1989.   On 18 December 1989 and on 25 April 1991 the Act was amended in some respects.           The essential provisions of the 1989 Act on Temporary Savings may be summarised as follows.           The legislation originally affected all Swedish taxpayers, but was not applicable to the State, municipalities (kommuner), county councils (landstingskommuner) and church parishes (kyrkliga kommuner). The savings, to be paid to the State together with the income tax, were calculated at three per cent of the income tax owed by the taxpayer.   The savings were compulsory and applied to the period 1 September 1989 -   31 December 1990.   The savings were to be repaid at the latest on 30 April the third year following the income year, i.e. in 1992 and 1993, together with an annual interest at the rate of seven per cent on amounts up to 1.000 SEK (svenska kronor) concerning the savings relating to the income year of 1989 and with the same interest on savings relating to the income year of 1990 up to amounts of 3.000 SEK. On amounts above these sums the interest rate was 3.5 per cent.           According to the travaux préparatoires, the Report of the Parliamentary Standing Committee on Finance (Finansutskottets betänkande) 1988/89: Fi U 30, the reasons for introducing the Act on Temporary Savings were essentially the following:   (translation)   "The Committee has earlier established that the economic development is worrying and that there is an obvious risk for a continuous deterioration of [the Swedish] international competitiveness.   The Committee therefore is of the opinion that steps must be taken in order to cool down the overheated economy.   The steps taken must be of a temporary character.   A public and perceptible squeeze should, during a limited period of time, cool down the high temperature, without reducing the growth of production and employment in the long run.   As an alternative to the Government's proposal for a temporary increase of the value added tax, different forms of a temporary compulsory savings system have been proposed. As has been suggested in these proposals, an appropriate increase of savings would reduce the space for consumption and moderate the trend towards increased inflation.   Compared with an increase of the value added tax, a temporary savings system has the advantage of not increasing inflation.   ... A necessary requirement for the squeezes needed is that they must have an immediate effect on the economy.   Next to different kinds of tax increases, a compulsory savings system would appear to be the most efficient step in this respect. A temporary savings system does not lead to an increase in the burden of taxation.   The money will be repaid to the savers within a certain time.   ... To achieve a sufficient effect and to be as neutral as possible in respect of the policy of a fair distribution, there should be few exceptions from the compulsory savings; both individuals and legal persons should accordingly be included in the system."           On 18 December 1989 the Act on Temporary Savings was changed (SFS 1989:1033) in that the compulsory savings during the income year of 1990 only applied to those who had to save more than 1.000 SEK during that year.   Furthermore, savings relating to the income year of 1989 were to be repaid by 30 June 1990 at the latest if the amount was less than 300 SEK.           According to the relevant travaux préparatoires, the Government Bill (Regeringens proposition) 1989/90:50, the reasons for this exemption from compulsory savings, were essentially that it would have a small effect on the economic squeeze in general, but a considerable effect for the low income earners with an income below approximately 100.000 SEK per year, among them retired people, as they would not have to save.   The responsible minister found that this would give the legislation on savings a more acceptable profile in respect of the policy of a fairer distribution of income.           On 25 April 1991 the Act on Temporary Savings was again amended (SFS 1991:184) in respect of repayment: savings relating to the income year of 1989 were to be repaid by 31 May 1991 at the latest and the remaining savings by 28 February 1992.     COMPLAINTS           The applicant complains that the compulsory savings under the 1989 Act on Temporary Savings violate his right to peaceful enjoyment of his possessions as secured by Article 1 of Protocol No. 1 to the Convention.     THE LAW           The applicant complains that the introduction in 1989 of the legislation in Sweden concerning the temporary savings constitutes a breach of Article 1 of Protocol No. 1 (P1-1) to the Convention which reads: "Every natural or legal person is entitled to the peaceful enjoyment of his possessions.   No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.   The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties."           According to the case-law of the European Court of Human Rights, Article 1 (Art. 1) substance guarantees the right to property. It comprises "three distinct rules": the first rule, set out in the first sentence of the first paragraph, is of a general nature and enunciates the principle of the peaceful enjoyment of property; the second rule, in the second sentence of the first paragraph, covers deprivation of possessions and subjects it to certain conditions; the third rule, stated in the second paragraph, recognises that the Contracting States are entitled, amongst other things, to control the use of property by enforcing such laws as they deem necessary in the general interest.   However, these rules are not "distinct" in the sense of being unconnected: the second and third rules are concerned with particular instances of interference with the right to peaceful enjoyment of property and should therefore be construed in the light of the general principle enunciated in the first rule (Eur.   Court H.R., Tre Traktörer judgment of 7 July 1989, Series A No. 159, pp. 21-22, para. 54, with further references).           In the present case the introduction of the 1989 Act on Temporary Savings had the effect of forcing taxpayers, including the applicant, to save amounts corresponding to three per cent of their income tax and of depriving them of their right to dispose of this money during a certain period of time.   The Commission finds that this constitutes an interference with the applicant's right to peaceful enjoyment of his possessions.   It considers, however, that this interference does not fall within the ambit of the second sentence of the first paragraph, as the savings, although compulsory, were to be repaid within a certain period of time.   Accordingly there is no deprivation of property within the meaning of Article 1 (Art. 1) of the Protocol.           The Commission finds that the compulsory savings constituted a measure of controlling the use of property, to be considered under the second paragraph of Article 1 (Art. 1), which recognises the right of the Contracting States to enforce such laws as they deem necessary for controlling the use of property in accordance with the general interest.   As this provision is to be construed in the light of the general principle enunciated in the first sentence of the first paragraph, there must exist a reasonable relationship of proportionality between the means employed and the aim pursued.   In striking a fair balance between the general interest of the community and the requirements of the protection of the individual's fundamental rights, the authorities enjoy a wide margin of appreciation (Eur. Court.   H.R., Allan Jacobsson judgment of 25 October 1989, Series A No. 163, p. 17, para. 55, with further references).           In the present case, the aim of instituting temporary compulsory savings was to limit a dangerous trend in the Swedish economy by reducing consumption and to counteract growing inflation. The Commission considers this to be a legitimate aim in the general interest.   As regards the proportionality between the interference with the applicant's property rights and the aim pursued, the Commission notes that according to the 1989 Act and its amendments the compulsory savings would not exceed three per cent of the income tax, would only partly affect those with an income below approximately 100.000 SEK, were limited in time and were to be repaid together with interest.   Having regard to the wide margin of appreciation enjoyed by the Contracting States, the Commission cannot find that the compulsory savings by virtue of the 1989 Act were in these circumstances disproportionate to the aim pursued.           Consequently the interference was justified under the terms of the second paragraph of Article 1 of Protocol No. 1 (P1-1) to the Convention.           It follows that the application is manifestly ill-founded within the meaning of Article 27 para. 2 (Art. 27-2) of the Convention.           For these reasons, the Commission by a majority,           DECLARES THE APPLICATION INADMISSIBLE.        Secretary to the Commission       President of the Commission                  (H.C. KRÜGER)                     (C.A. NØRGAARD)