# C_2005217EN.01003101.xml

| 3.9.2005 | EN | Official Journal of the European Union | C 217/31 |
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3.9.2005

EN

Official Journal of the European Union

C 217/31

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Action brought on 20 July 2005 by the Commission of the European Communities against the Kingdom of Sweden

(Case C-294/05)

(2005/C 217/60)

Language of the case: Swedish

An action against the Kingdom of Sweden was brought before the Court of Justice of the European Communities on 20 July 2005 by the Commission of the European Communities, represented by Lena Ström van Lier and Günter Wilms, acting as Agents, with an address for service in Luxembourg.

The Commission claims that the Court should:

| 1. | declare that, by failing, from 1 January 1998 until 31 December 2002 inclusive, to establish and credit its own resources in connection with the import of war material and goods for civilian or military use and by failing to pay late payment interest thereon, the Kingdom of Sweden has failed to fulfil its obligations under Articles 2, 9, 10 and 11 of Council Regulation (EEC, Euratom) No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources, as valid before 31 May 2000, and thereafter under Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources |
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1.

declare that, by failing, from 1 January 1998 until 31 December 2002 inclusive, to establish and credit its own resources in connection with the import of war material and goods for civilian or military use and by failing to pay late payment interest thereon, the Kingdom of Sweden has failed to fulfil its obligations under Articles 2, 9, 10 and 11 of Council Regulation (EEC, Euratom) No 1552/89 of 29 May 1989 implementing Decision 88/376/EEC, Euratom on the system of the Communities' own resources, as valid before 31 May 2000, and thereafter under Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources

| 2. | order the Kingdom of Sweden to pay the costs. |
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2.

order the Kingdom of Sweden to pay the costs.

Pleas in law and main arguments

From 1 January 1998 until 31 December 2002 inclusive, the Kingdom of Sweden failed to establish and credit its own resources in connection with the import of war materials and goods for civilian or military use, also by failing to pay late payment interest thereon. The Swedish Government contends that Article 296(1)(b) EC gives Member States the right unilaterally to grant exemption from duty for imports of war material and of goods with dual usage (civilian and military) on grounds of defence economics, to protect military secrecy and to comply with international agreements made regarding the guarantee of military security. The Commission submits that Member States do not have the right, by reference to Article 296(1)(b) EC, to withdraw their own resources from the Community budget. In all the circumstances, Member States have the burden of proving that the exemption from duty of war material and of goods with dual usage and the consequent failure to establish and credit their own resources is a necessary measure for the protection of their essential security interests. The Commission takes the view that the Kingdom of Sweden has not satisfied that burden of proof.

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