Fundamental Rights Section The Federal Chancellery confirmed in its statement that according to this judgment the Community principle of equal treatment prohibits not only direct discrimination on the ground of nationality, but also all indirect forms of discrimination based on other grounds but capable of producing the same result. Pursuant to this case law, both provisions at statutory or regulatory level relating to nationality and practical measures such as terms and conditions of a public undertaking providing a residence requirement violate this Community prohibition of discrimination. The Ombudsman further noted that the European Court of Justice had not recognised in the said judgment mere economic arguments as justification for a different rate treatment, such as the argument that these advantages had been granted to local residents in consideration for the payment of taxes as contribution to the administration of the locations referred to above. On these grounds, the arguments set out in the statement which the mayor of the Municipality of Klosterneuburg addressed to the Lower Austrian State government and pursuant to which the 'old tradition' of granting lower rates to local residents of Klosterneuburg can be based on the taxes paid by them to the Municipality to cover the annual deficit of the bathing beach, are irrelevant. On the basis of the case law stated above, the mayor announced to propose a new entrance fee scheme to the municipal council for approval with respect to the bathing season 2005, which was in conformity with the principle of equal treatment and the case law of the Court of Justice of the European Communities and which was finally approved by the municipal council on 8 April 2005. 100

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