Judgment — ECLI:EU:C:2004:617
Date: 2004-10-14
Language of the case: Spanish
Court formation: First Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Agriculture and Fisheries;State aids;Competition;Milk products
Concepts: Co-responsibility levy and additional levy on milk;Rules on aid in connection with the common organization of the agricultural markets
Procedure: Action for annulment - unfounded
Origin: Spain

Summary of the Judgment Agriculture – Common organisation of the markets – Milk and milk products – Additional levy on milk – Regulation No 3950/92 – Aid granted by a Member State although not authorised by the regulation – Prohibited – No effect on the functioning of the market – No impact (Council Regulation No 3950/92, Arts 5 and 8) Where the Community has established a common market organisation in a particular sector, it is for it to seek solutions to problems which may arise in the context of the common agricultural policy. Member States must therefore refrain from taking any unilateral measure in that area, even if that measure is likely to support the common policy of the Community. In the context of the common organisation of the market for milk products, only State aid expressly authorised by Regulation No 3950/92 establishing an additional levy in the milk and milk products sector, in particular Articles 5 and 8, is lawful. It follows that State aid granted by a Member State which consists of an interest-rate rebate on loans contracted to acquire reference quantities from other producers is not expressly authorised either by Article 5 or by Article 8 of that regulation, it must be regarded as incompatible with the common market. Furthermore, that aid is still unlawful, even if it is not such as to distort the functioning of that market for milk and milk products, since lawfulness does not depend on the possible effects that that aid may have on the functioning of that market. (see paras 19-20, 22, 31)