No L 40/8 Official Journal of the European Communities 11. 2. 89 COUNCIL DIRECTIVE of 21 December 1988 relating to the transparency of measures regulating the pricing of medicinal products for human use and their inclusion in the scope of national health insurance systems (89/105/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, ‘Having regard to the Treaty establishing the European Economic- Community, and in particular Article 100a thereof, Having regard to the proposal from the Commission (1), In cooperation with the European Parliament (2), Having regard to the opinion.of the Economic and Social - Committee (3), Whereas marketing authorizations for proprietary medicinal products issued pursuant to Council Directive 65/65/EEC of 26 January 1965 on the approximation of provisions laid down by law, regulation or administrative action relating to proprietary medicinal products (*), as last amended by Directive 87/21/EEC (%), may be refused only for reasons - relating to the quality, safety or efficacy of the proprietary medicinal products concerned; Whereas Member States have adopted measures of an economic nature on the marketing of medicinal products in order to control public health expenditure on such products; whereas such measures include direct and indirect controls on the prices of medicinal products as-a consequence of the inadequacy or absence of competition in the medicinal products market and limitations on the range of products - covered by national health insurance systems; Whereas the primary objective of such measures is the promotion of public health by ensuring the availability of adequate supplies of medicinal products at a reasonable cost; whereas, however, such measures should also be intended to promote efficiency in the production of medicinal products and to encourage research and development into new medicinal products, on which the maintenance of a high level of public health within . the Community ultimately depends; Whereas disparities in such measures may hinder or distort intra-Community trade in medicinal products -and thereby (1) O] No C 17, 23. 1. 1987, p. 6 and O} No C 129, 18. 5. 1988, p. 14. (3) O] No C 94, 11. 4. 1988, p. 62 and O] No C 326, 19. 12. 1988. (3) OJ No C 319, 30. 11. 1987, p. 47. (*) OJ No 22, 9. 2. 1965, p. 369/65. (5) O] NoL15,17. 1. 1987, p. 36. directly affect the functioning of the common market in medicinal products; Whereas the objective of this Directive is to obtain an overall view of national pricing arrangements, including the manner in which.they operate in individual cases and all the criteria on which they are based, and to provide public access to them for all those involved in the market in medicinal products in the Member States; whereas this: information should be public; Whereas, as a first step towards. the removal of these. disparites, it is urgently necessary to lay down a series of requirements intended to ensure that all concerned can verify that the national measures do not constitute quantitative restrictions on imports or exports or measures having equivalent effect thereto; whereas, however, these requirements do not effect the policies of those Member States which rely primarily upon free competition to determine the price of medicinal products; whereas these requirements also do not affect national policies on price setting and on the determination of social security schemes, except as far-as it is necessary to attain transparency within the meaning of this Directive; Whereas the further harmonization of such-measures must take place progressively, HAS ADOPTED THIS DIRECTIVE: Article 1 1.  Member States shall ensure that any national measure, whether laid down by law, regulation or administrative action, to-control the prices of medicinal products for human use or to restrict the range of medicinal products covered by their national health insurance systems complies with the requirements of this Directive. ' 2.. The definition .of ‘medicinal products’ laid down in Article 1 of Directive- 65/65/EEC  shall -apply to_this Directive. . 3.  Nothing in this Directive shall permit the marketing of a proprietary medicinal product in respect of which the authorization provided for in Article 3 of Directive 65/65/EEC has not been issued.