72The Commission adds that in Case 118/75 Watson and Reimann [1976] ECR 1185 the Court defined its position with regard to the sanctions which the Member States may impose in the event of a failure to comply with certain formalities provided for by Community legislation. Having regard to that case-law, the Member States may prescribe proportionate sanctions if their territory is entered unlawfully, such as a fine (Sagulo, cited above, paragraph 6). However, the imposition of such sanctions must not affect issue of the residence permit.
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