# C_2007211EN.01003402.xml

| 8.9.2007 | EN | Official Journal of the European Union | C 211/34 |
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8.9.2007

EN

Official Journal of the European Union

C 211/34

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Action brought on 26 June 2007 — Las Palmeras v Council and Commission

(Case T-217/07)

(2007/C 211/67)

Language of the proceedings: Spanish

Parties

Applicant: Las Palmeras S. Coop. And. (Seville, Spain) (represented by: L. Ortiz Blanco, lawyer)

Applicant:

Defendants: Council of the European Union and Commission of the European Communities

Defendants:

Forms of order sought

| — | to uphold the present action for damages, in accordance with Article 288 EC, and declare the applicant is entitled to be financially compensated by the Council and the Commission jointly and severally in the sum total of two hundred and eighty-eight thousand two hundred and thirty-eight euros (EUR 288 238); |
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to uphold the present action for damages, in accordance with Article 288 EC, and declare the applicant is entitled to be financially compensated by the Council and the Commission jointly and severally in the sum total of two hundred and eighty-eight thousand two hundred and thirty-eight euros (EUR 288 238);

| — | to order the defendant institutions to pay the costs. |
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to order the defendant institutions to pay the costs.

Pleas in law and main arguments

The applicant in the present proceedings, a Spanish firm which gins raw cotton, seeks compensation for losses allegedly suffered as a result of the application, during the 2006/2007 marketing year, of Chapter 10a of Title IV of Regulation (EC) No 1782/2003 (1), inserted by Article 1(20) of Regulation (EC) No 864/2004 (2). Chapter 10a of Title IV of Regulation (EC) No 1782/2003 establishes common rules for direct support schemes under the common agricultural policy and establishes certain support schemes for farmers.

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In that regard it is noted that Chapter 10a of Title IV of Regulation (EC) No 1782/2003 was annulled by judgment of the Court of Justice on 7 September 2006 in Case C-310/04 Spain v Commission for breach of the principle of proportionality. That judgment, however, suspended the effects of the annulment until the adoption of a new regulation, so that the provisions in question continued to apply for the 2006/2007 marketing year.

Spain

Commission

On the basis of two reports carried out by an economic consultancy the application reviews the loss suffered by the sector, since, as a consequence of applying the annulled provisions during the relevant marketing year a large drop occurred in the volume of raw cotton produced and, consequently in the production of industrially ginned cotton. Operation of the support scheme outlined in the relevant provisions results in a significant portion of the support (about 65 %) becoming completely unrelated to the production of cotton, so that the farmer continues to receive it, even though he is using his land for the production of other crops. Accordingly, the estimated profitability of using an area of one hectare to grow cotton becomes lower than the profitability of using it to grow other crops. That situation also meant that the operating revenues obtained by the ginning industry were reduced.

The applicant claims that in the present case the requirements demanded by case-law to establish the extra-contractual liability of the Community are met.

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(1)  Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) No 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (OJ L 270, 21.10.2003, p. 1).

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(2)  Council Regulation (EC) No 864/2004 of 29 April 2004 amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and adapting it by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia to the European Union (OJ L 161, 30.4.2004, p. 48).

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