16.12.87 Official Journal of the European Communities No C 338/1 
I 
(Information) 
COMMISSION 
FOURTH ANNUAL REPORT 
to the European Parliament 
on Commission monitoring of the application of Community law 
— 1986 — 
COM(87) 250final 
(87/C 338/01) 
No C 338/2 Official Journal of the European Communities 16. 12. 87 
CONTENTS 
Page 
INTRODUCTION 3 
SECTOR-BY-SECTOR ANALYSIS 
I. AN AREA WITHOUT FRONTIERS 
A. A single market 
Economic and monetary policy 5 
Free movement of industrial products and foodstuffs 5 
Customs union 8 
Taxation 9 
Free movement of farm produce 10 
B. A People's Europe 
Economic and monetary policy 10 
Internal market 10 
Free movement of persons and freedom to provide services . 11 
Employment, social policy and education 11 
Consumer protection 12 
Driving licences 12 
Taxation 12 
II. OTHER QUESTIONS 
Legal matters 12 
Statistical matters 13 
Administrative matters 13 
Budgetary matters 13 
Competition 13 
Banks, insurance companies and other financial institutions 14 
Environment 15 
Agricultural policy 15 
Fisheries 16 
Transport policy 16 
Energy policy 17 
External relations 17 
Development cooperation policy 17 
TABLES AND REVIEWS 
No 1 Infringement proceedings opened or pursued since 1979 classified by stage of proceedings and 
Member State 18 
No 2 Infringement proceedings opened or pursued sine 1979 classified by stage of proceedings and 
sector 19 
No 3 Infringement proceedings initiated since 1979 classified by sector and legal basis 20 
No 4 Number of infringements acted against since 1982 classified by legal basis and stage of 
proceedings 21 
No 5 Number of infringements acted against classified by Member State, legal basis and stage of 
proceedings 22 
No 6 References to Court and judgments since 1979 23 
No 7 Court of Justice judgments not complied with by 31 December 1986 26 
No 8 Review of significant judgments of national courts of final instance 33 
No 9 Complaints and infringements detected by the Commission's own inquiries since 1982 classi­
fied by sector 35 
ANNEXES 
A — Infringements of the Treaties and regulations 37 
B — Infringements of directives 55 
16.12. 87 Official Journal of the European Communities No C 338/3 
INTRODUCTION 
1. This is fourth annual report on application of 
Community law by Member States; it covers the year 
1986. Like its predecessors ('), it represents a response to 
desire expressed by Parliament in its resolution of 
9 February 1983 (2). 
2. As in the past, the report comprises (3): 
— a summary of infringements of the Treaties and regu­
lations in existence in 1986 (Annex A), and 
— a review showing the stage reached in the application 
of directives during the same year (Annex B). 
These are preceded by a sector-by-sector analysis, 
various tables and graphs, and a commentary on the 
main judgments delivered by the highest courts of law in 
the Member States. 
3. The presentation of the different sections is 
essentially the same as in the last report. Two points 
should be made, however: 
— The sector-by-sector analysis has been structured in 
order to highlight the objective of an area without 
frontiers, which would be at one and the same time a 
single market and a genuine people's Europe. This 
will place the reader in a better position to identify 
the measures which pursue these objectives out of all 
the measures taken by the Commission in its capacity 
as guardian of the Treaties. 
— The review of the stage reached in the application of 
directives includes only directives giving rise to 
problems, i.e. about 290 directives out of a total 
number of more than 780 for which the time limit for 
incorporation into national law has expired; it does 
not yet cover national implementing measures in 
Spain and Portugal. 
(*) First annual report (COM(84) 181 final, 20. 4. 1984). 
Second annual report (COM(85) 149 final, 23. 4. 1985). 
Third annual report (OJ No C 220, 1. 9. 1986). 
O OJ No C 343, 31. 12. 1985, p. 8. 
(J) In accordance with the rules of confidentiality followed by 
the Commission in the preceding reports, Annexes A and B 
include proceedings before the Court of Justice and 
reasoned opinions, but do not mention letters of formal 
notice, except for those sent to Member States for failure to 
notify national measures implementing directives or for 
failure to comply with a judgment of the Court of Justice 
(Article 171 of the EEC Treaty). On the other hand, the 
statistical tables give an overall view of all the stages of the 
procedure under Article 169 of the EEC Treaty, including 
that of the letter of formal notice. 4. The following points emerge from the reviews and 
tables in this report. 
— The overall number of letters of formal notice 
remains similar to that of last year, although there 
are fairly large differences in particular sectors (see 
tables 1 and 3). 
— The number of reasoned opinions and of actions 
brought before the Court has fallen by about 30 %; 
here too there are variations in particular sections of 
activity as compared with last year (see tables 1 
and 2). 
— The proportion of cases in which proceedings were 
initiated for infringements of the Treaties and of 
regulations, as compared with those concerning 
directives, continued to stand in a ratio of about 40 
to 60 (see table 4 and graph 5). 
— The number of judgments of the Court of Justice 
which have not yet been complied with rose 
somewhat, in line with the increase in the number of 
judgments delivered (see tables 6 and 7). 
— As the Commission pointed out in previous reports, 
the number of infringements detected as a result of 
complaints or of the Commission's own inquiries 
continues to grow (see table 8). 
These facts call for some comment. 
5. The small increase in the number of letters of 
formal notice sent in the course of 1986 does not 
necessarily mean that the number of infringements 
actually being committed has levelled off. Contributory 
factors include the difficulty of arguing the 
Commission's views on the mutual recognition of 
standards while the Beer cases were pending before the 
Court (see point 7 of the sector-by-sector analysis); the 
slowdown in the total number of directives entering into 
force; and above all the Commission's desire to secure a 
better allocation of the available resources, in order to 
follow up cases which threatened the achievement of its 
adopted priorities. 
6. But this situation is not as alarming as it might 
appear: the number of requests for preliminary rulings is 
growing constantly, particularly in certain Member 
States, reflecting an expanding awareness of the 
Community legal order among private citizens and firms, 
and the importance which that Community legal order is 
assuming; the Commission invariably takes part in such 
proceedings when they come before the Court of Justice, 
so as to defend its own views on the application of 
Community law. 
No C 338/4 Official Journal of the European Communities 16.12.87 
7. As already mentioned, however (point 4), the 
position varies from one sector to another: 
— The fall in the number of infringement proceedings 
in one sphere of activity which is primarily of interest 
to the general public, that of the internal market and 
industrial affairs, is due in particular to the ever-
greater efforts deployed by the Commission to secure 
an awareness of Community law; the effects of this 
are felt when the first approaches are made to 
Member States, before proceedings are formally 
initiated. 
— In other sectors of direct interest to the general 
public — the environment, consumer protection, and 
taxation — there was an appreciable increase in the 
number of infringement proceedings brought this 
year. In the case of taxation the measures taken by 
the Commission to keep the public informed were of 
course one factor in the growth of the number of 
complaints, notably regarding the double taxation of 
second-hand vehicles. 
8. The fall in the number of reasoned opinions is due 
essentially to the fact that infringements are more 
frequently being put right at the formal notice stage. It 
has to be recognized that this is particularly true of 
certain Member States which give this opening stage of 
the Article 169 procedure the importance it deserves, and 
which enter into dialogue with the Commission 
departments and show a willingness to put a rapid end to 
the conduct complained of. 
9. The fall in the number of cases referred to the 
Court of Justice is largely due to the fact that the 
previous year, 1985, had seen the conclusion of a big 
operation to police the implementation of directives 
which the Commission had launched in 1983 ('). In 1985 
more than half of the judgments delivered concerned 
failure to notify national measures implementing 
directives or failure properly to implement them. But the 
present fall also reflects the tendency to rectify 
infringements before a reasoned opinion is delivered. 
10. As already indicated (point 4), the proportion of 
infringement proceedings for failure to implement 
directives as compared with those initiated for other 
reasons remained roughly the same as last year, in a 
ratio of 60 to 40. This has to do with the new policy 
which the Commission adopted in its White Paper. The 
aim is to limit harmonization solely to areas where it is 
strictly necessary, and to take action under Article 169 
whenever standards which are not recognized are 
applied in a Member State so as to create obstacles to trade. The Commission hopes to discuss the first fruits of 
this new approach, bound up with the 'standstill' 
directives, in the fifth annual report. 
11. As for the follow-up to Court proceedings, the 
Commission regrets the increase in the number of Court 
judgments which have not yet been complied with, 
although it must be said that this phenomenon is in 
direct proportion to the number of judgments delivered. 
The Commission would like once again to call on the 
European Parliament to intervene, particularly with the 
national Parliaments, in cases where new domestic 
legislation is needed to rectify the situation. 
12. The increase in the number of complaints received 
clearly reflects the interest which the public is coming to 
take in the proper application of the law of the 
Community; the increase in the number of cases detected 
through the Commission's own inquiries is a result of 
the steps the Commission has taken to deal with 
infringements reported in Parliamentary questions and 
petitions, as President Delors had promised (2). 
13. The Commission is making every effort to speed 
up the investigations which follow complaints, so as to 
provide an added incentive for members of the public 
actively to contribute to the achievement of the great 
objectives of the Community. It has tightened up its 
internal rules on the handling of complaints and of the 
infringements it detects itself: except in special cases, the 
Article 169 procedure must be initiated or the case closed 
within one year. Given the growing volume of cases to 
be processed (see table 9), it has also decided to close 
cases on a more systematic basis wherever there is 
insufficient evidence, while remaining prepared to reopen 
them if other facts should come to its knowledge later, 
and to concentrate its efforts'on cases which endanger 
the priorities it has set itself. These are in particular: 
— a single market: particularly mutual recognition of 
standards, and public contracts, 
— a people's Europe: the various obstacles to freedom 
to travel, to stay, to settle, etc., 
— measures contrary to the rules on agriculture, and 
control of surplus production, 
— exceeding fishing quotas, 
— measures to protect the environment. 
0) Third report, point 4 (i). (2) Third report, point 9. 
16.12.87 Official Journal of the European Communities No C 338/5 
14. Measures taken by the Commission are not 
enough: Parliament must be informed, and public 
opinion must have its attention drawn to the problem. 
Like its predecessor this report would be published in the 
Official Journal of the European Communities. For the 
same reason the Commission has decided to publicize its 
role as guardian of the Treaties to a greater extent: it 
will be publishing notices in the Official Journal on 
particular subjects, its information offices in the Member 
I. AN AREA WITHOUT FRONTIERS 
A. A SINGLE MARKET 
Economic and monetary policy 
1. As regards capital movements (Articles 67 et seq. of 
the EEC Treaty), the improvement in the external 
payments positions of France and Italy led the 
Commission to change the Decisions it had previously 
adopted pursuant to Article 108 (3) of the EEC Treaty, 
when it authorized France and Italy to maintain 
restrictions on certain capital movements which in 
Community law ought,to be unrestricted. The decision 
concerning France was repealed on 4 June, and France is 
now complying with all its Community obligations 
regarding capital movements. The decision concerning 
Italy was amended on the same day: its scope was 
reduced to cover only the safeguard measures which are 
still in force (restrictions on investments by Italian 
residents in real property abroad, and the purchase by 
residents of foreign listed securities). The duration of the 
Italian decision remained unchanged: it runs up to the 
end of 1987. The other Member States authorized to 
take measures affecting capital movements under the 
safeguard clause in Article 108 are Ireland (up to the end 
of 1987) and Greece (up to the end of 1988). 
2. The two actions for infringement brought by the 
Commission against Greece, for failure to liberalize 
blocked assets belonging to non-residents and failure to 
apply the directives on the liberalization of capital 
transactions, are still pending before the Court. In May 
1986 a Presidential decree was adopted in Greece with a 
view to bringing the domestic rules into line with 
Greece's Community obligations regarding capital 
movements. But this decree does not resolve all the 
questions in dispute in a fully satisfactory manner. 
Free movement of industrial products and foodstuffs 
3. The Commission continued to give priority to safe­
guarding the free movement of goods within the 
Community (Articles 30 to 36 of the EEC Treaty) by the States will be launching campaigns, and there will also be 
the future Centres for European Business Information, 
aimed at providing an advisory service, in particular for 
small businesses, on the scope offered by Community 
measures for improving firms' competitiveness. The 
Commission earnestly hopes that these steps will 
encourage the public to take a more direct interest in the 
application of Community law, which has become an 
integral part of daily life. 
three methods open to it: bringing an end to national 
measures which impede trade, particularly by means of 
infringment proceedings under Article 169 of the EEC 
Treaty; preventing the introduction of fresh obstacles, 
through the scrutiny of the draft national rules which 
must be notified to the Commission under Directive 
83/189/EEC; and clarifying the principles governing the 
free movement of goods, in particular through the pub­
lication of interpretative notices intended to be widely 
publicized. 
4. The ending of national measures which comprise 
obstacles to the free movement, of goods between 
Member States and hold back the achievement of the 
single market is monitored very closely by the 
Commission. About 1 000 cases (discovered by the 
Commission, complaints, presumed or established 
infringements, application of Court judgments) were 
examined and investigated in 1986 on the basis of 
Articles 30 et seq. of the EEC Treaty. More than 300 
new complaints were lodged with the Commission in 
1986, which inter alia shows that members of the public 
and firms are growing more aware of the rights which 
belonging to the Community confers on them, and 
demonstrates the confidence they have in the 
Commission and the Community legal order. Of the 
cases investigated and taken up by the Commission a 
number were also pointed out by Members of the 
European Parliament in written or oral questions. 
5. More than 200 cases of obstacles were rectified at 
the preliminary investigation stage — the Commission 
departments hold regular meetings for this purpose with 
the national administrations — or in the course of the 
administrative proceedings, no reference to the Court 
being necessary. 
6. The bulk of complaints and infringements related 
to national rules which make the sale of goods, domestic 
and imported, subject to technical and quality 
requirements concerning such things as composition, 
dimensions, wrapping, name, labelling, performance, etc. 
According to what is known as the Cassis de Dijon rule, SECTOR-BY-SECTOR ANALYSIS 
No C 338/6 Official Journal of the European Communities 16.12. 87 
developed by the Court of Justice in a line of judgments, 
such legislation infringes Article 30 even if it has no 
discriminatory or protective effect, once its restrictive 
effects are out of proportion to its objective. 
7. A Member State may not prohibit the sale of a 
product lawfully produces in another Member State, 
even if the product is produced according to technical or 
quality requirements which differ from those imposed on 
its domestic products, provided it 'suitably and satis­
factorily* fulfils the legitimate objective of the Member 
State's own rules. This principle, derived from the Court 
judgements, was spelt out by the Commission in an 
interpretative communication ('). The main corollary is 
that Member States must recognise one another's 
equivalent rules and procedures concerning the manu­
facture, inspection and certification of Community 
goods; this has been called for by the European Par­
liament and by the Council in its resolution of 16 July 
1984, and is the principle which forms the basis of the 
new approach to the achievement of the internal market 
which the Commission is proposing. Applying this 
principle, the Commission has secured the Member 
States' acceptance in their legislation of the mutual 
recognition of equivalent rules and procedures 
concerning manufacture, approval, inspection and certi­
fication of products legally manufactured in other 
Member States. 
8. The Commission pays particular attention to 
'customs disputes', which concern border inspections, 
import licences and formalities, or disproportionate 
penalties for example. Disputes of this kind mean that 
when private individuals and businessmen think of the 
Community they tend to think of a sort of feudal 
Europe, with nothing to offer but barriers, customs 
posts, formalities and bureaucratic obstruction; the 
Commission therefore acted to do away with national 
practices requiring systematic or excessive inspections, 
and affirmed the principle that only random checks, 
made as cursory as possible, were now admissible; it 
took action against a few outstanding cases where 
import licences or authorizations were required; it also 
brought infringement proceedings by the expedited 
procedure against Greece, which had restricted the 
number of posts for clearance of certain imported goods, 
as such a restriction was liable to distort traditional trade 
flows. 
9. Price regulations are contrary to Article 30 where 
they impose maximum prices so low as to be unprofitable 
or even to require the businessman to sell at a loss, or 
C) OJ No C 256, 3. 10. 1980. where they set minimum prices so high that they cancel 
out or reduce the competitive advantage of imported 
goods with lower costs. 
10. On the basis of these principles the Commission 
acted against national regulations on pharmaceutical 
prices and the repayment of pharmaceutical costs by 
social security schemes, and against regulations setting 
prices for cigarettes, biscuits, etc. 
11. In the field of telecommunications, along with the 
harmonization efforts going on, particularly as regards 
networks, the Commission challenged national regu­
lations which allowed the import of telecommunications 
equipment only if it complied strictly with national 
technical specifications, and if it went through a long 
and costly approval procedure to establish that it did so. 
The Commission also approached three Member States 
to ensure that they made changes in line with Articles 30 
et seq. of the EEC Treaty in the monopolies in modems 
existing in accordance with Article 37. 
12. The Commission continued its efforts to eliminate 
all explicit or implicit forms of opposition to free 
movement in other sectors too. The following are worth 
mentioning here: 
— restrictions on public contracts (there may not be any 
'preferences' or 'reservations' for the benefit of 
domestic firms or products), 
— rules requiring origin marking of goods ('made in 
...') represent an unjustified obstacle to trade within 
the Community, since they allow consumers to 
distinguish between domestic products and imported 
products thus enabling them to indulge any 
prejudices they might have against foreign products, 
inciting people to 'buy national' represents a subtle 
form of neo-protectionism reminiscent of calls for 
national self-sufficiency, which the Commission 
challenged in all cases coming to its knowledge, 
— the restriction of 'qualitative', 'generic', or 'geo­
graphical' indications to domestic products only, 
where they are not recognized designations or 
indications of origin, 
restrictions on payment and credit; the obligations to 
appoint a representative in the country for imported 
products; difficulties placed in the way of parallel 
imports, particularly in the case of motor cars and 
16.12.87 Official Journal of the European Communities No C 338/7 
pharmaceuticals; the restriction of preferential postal 
rates to newspapers and periodicals printed in the 
country, etc. 
13. Directive 83/178/EEC, which requires Member 
States to notify the Commission of all new technical 
standards and regulations in the industrial sphere, 
provides an effective tool for preventing new obstacles to 
trade, which can now be detected and eliminated as they 
appear. 
14. The assessment of draft technical regulations 
notified to the Commission also enables the Commission 
to inform Member States of the positive provisions which 
they should insert into new drafts in order to make them 
compatible with Community law, particularly as regards 
approval and mutual recognition of inspections, pro­
cedures and certifications. The results for the 200 or so 
cases of regulations notified and examined are very 
promising, and show that this system is a very useful tool 
for the achievement of the 1992 objective. The next 
annual report will give details of the results of the new 
approach. 
15. The Commission takes the view that prevention 
and cure will both be more effective if they are 
accompanied by appropriate action to make known the 
principles applied and the results obtained. 
16. The large and constantly growing volume of cases 
in dispute has drawn attention to the need to take steps 
going far beyond straightforward one-off policing 
operations. 
17. To do this it is indispensable that private 
individuals and firms, courts and national administrations 
must cooperate with the Commission in carrying out its 
duties. 
18. "While the obstacles to trade which still exist are to 
some extent due to resistence on the part of Member 
States to the dismantling of neo-protectionist borders, it 
is also clear that ignorance on the part of private citizens 
and firms of the rights conferred on them by the 
Community legal order helps significantly to maintain 
this state of affairs. 
19. As it promised in its White Paper, the Commission 
proposes to issue interpretative communications or 
notices explaining the principles and procedures 
applicable in particular spheres so as to ensure freedom 
of trade. 20. These notices will indicate to the national 
administrations the clear practical obligations imposed 
on them in a particular sphere, the measures to take, and 
the procedures to be followed in order to comply with 
the Community rules. They will make individuals and 
firms aware of their rights and of the instruments and 
procedures through which they can appeal. At the same 
time they will offer legal circles (lawyers, prosecutors, 
judges, etc.) principles of reference for the 
implementation, each in his own field, of the direct 
applicability of Articles 30 et seq. 
21. The Commission envisages adopting notices of 
this kind in such varied fields as the free movement of 
foodstuffs, the import and export of motor cars, CB 
radio sets, customs formalities and inspections, the 
approval of industrial products, etc. 
22. This information policy will be accompanied by 
studies in important sectors which have priority for the 
achievement of the single market, in order to establish 
the state of the legislation and of practice in a particular 
field, to detect any disparities and obstacles there may 
be, and then to inform all the Member States concerned 
of the principles and procedures to be applied and of the 
corrective measures to be taken in order to establish 
minimum rules and standards which ensure greater 
and more uniform business freedom throughout the 
Community. 
23. Good progress is being made with the 
implementation of the 60 or so harmonization directives 
aimed at eliminating technical barriers to trade in 
industrial products whose deadlines have expired. 
24. As in the past almost half of the proceedings 
initiated concern failure to take the necessary 
implementing measures, and can be settled rapidly 
because they are generally due to administrative or pro­
cedural delays. Only Directive 73/23/EEC concerning 
electrical equipment for use within certain tension limits 
(the low-tension directive) is being improperly 
implemented or improperly applied. During the period 
under review the Commission organized meetings with 
government experts responsible for the application of this 
Directive, in order to clarify certain problems with its 
implementation. 
25. The number of notifications made by Member 
States under Directive 83/189/EEC establishing an 
information procedure for technical standards and regu­
lations is growing appreciably from year to year. The 
increase in 1986 as compared with 1985 was 45 %. 
No C 338/8 Official Journal of the European Communities 16.12.87 
26. National technical rules nevertheless continued to 
be adopted in Member States without any notification 
under the procedure established by Directive 83/189/ 
EEC. In the course of 1986 the Commission initiated 
proceedings in several dozen cases of failure to notify. 
The Commission does not possess the resources to be 
able to keep a full check on all the national publications 
publishing technical rules, but those concerned are not 
left helpless: the Member States' obligations under the 
Directive are clear and unequivocal, and failure to notify 
the draft of any technical regulation means that the regu­
lation adopted is unenforceable against third parties. The 
Commission has published a communication in the 
Official Journal of the Communities to inform those 
concerned of their rights (*). 
27. As regards the transposal into national law of the 
directives on medicines, a large number of cases have 
been closed since 1986. The only proceedings still out­
standing are against Italy, for failure to implement the 
basic directives on proprietary medicinal products, where 
the Court of Justice held against Italy in 1983. 
28. Proceedings for infringement of the foodstuffs 
directives have all been initiated for failure to notify 
national implementing measures. Twelve cases were 
closed in 1986. Twenty-two are at the formal notice 
stage, three at the reasoned opinion stage, and one 
Court action has been brought — against France for 
failure to implement Directive 81/487/EEC on fruit 
juices. 
29. The main purpose of the chemicals directives is to 
harmonize the national systems of legislation so as to 
allow the free movement of certain goods between 
Member States. This applies particularly to detergents, 
fertilizers and dangerous substances and preparations. In 
the last case the directives also seek to protect users by 
requiring that essential information be supplied on the 
label, or even by restricting or prohibiting their use. 
30. Since the last annual report there have been 38 
cases of transposal of these directives into national law. 
This number shows the results achieved by the steady 
pressure which the Commission departments exert on the 
various national administrations concerned. 
C) OJ No C 245, 1. 10. 1986, p. 4. 31. The Community has so far adopted 103 directives 
dealing with motor vehicles, tractors and motor cycles, 
which are aimed mainly at eliminating barriers to trade 
and ensuring a high level of protection for users and 
third parties. 
32. Except in one case the infringements here result 
from failure to implement the directives. In general it is 
very long administrative procedures which prevent the 
Member States from incorporating the directives into 
their domestic legal orders within the time stated. 
33. As for public contracts, mention should be made 
of the cases pending before the Court of Justice against 
Italy for failure by Italian municipalities to comply with 
the Community rules on the publication and award of 
public works contracts. Proceedings have been initated 
against Greece for failure to incorporate Directive 
77/62/EEC on public contracts into its domestic law. 
34. Among its priority objectives the Commission feels 
that the proper application of the Community directives 
on public contracts is of great importance for the 
attainment of a large internal market. It is also striving to 
ensure that the rules on the free movement of goods 
(Article 30 et seq) are utilized to the full to open up the 
market in public contracts. 
Customs union 
35. Following the adoption of Council Regulation 
(EEC) No 1797/86 abolishing certain postal fees for 
customs presentation, which is to enter into force on 
1 January 1988, the infringement proceedings against 
Belgium and France concerning charges for presentation 
to customs of items sent by post have been closed. The 
Commission felt it would serve no useful purpose to 
continue with the proceedings, since the new Regulation 
will put an end to all charges of this kind. 
36. As regards the import of military equipment free 
of customs duty, the infringement proceedings are still at 
the same point as in 1985, as the Member States 
concerned have in general displayed a preparadness to 
join with the Commission in seeking a coherent overall 
solution in the framework of Community law. 
37. Two infringements which were followed up, 
involving a failure to pay monetary compensatory 
amounts on the part of France and the UK respectively, 
are the result of faulty interpretation and application of 
the combined effect of a customs directive and a 
common agricultural policy Regulation. 
16.12.87 Official Journal of the European Communities No C 338/9 
38. The Commission programme for the conversion 
into regulations of the directives adopted in the customs 
sphere continued in 1985, with the presentation to the 
Council of two draft Regulations, on customs 
warehouses and free zones; these Regulations would 
make it possible to avoid infringement proceedings of the 
kind initiated against Greece on the subject of customs 
warehouses, free zones, and the usual forms of handling 
which may be carried out there. 
39. It is also worth noting the failure to inform the 
Commission of national measures implementing 
Directive 85/479/EEC on mutual assistance. Although 
the infringements involved here may have no serious 
consequences for mutual assistance or for own resources, 
the Commission is insisting that Member States must 
transpose this Directive into their domestic legal systems 
immediately. 
Taxation 
40. As regards Member States' compliance with the 
rules on taxation and particularly Article 95 of the EEC 
Treaty, the Commission delivered reasoned opinions in 
the following cases: 
Ireland, Italy, Belgium, Luxembourg, Netherlands, 
United Kingdom: excise duties on beer, 
— Ireland: excise duties on mineral waters. 
41. There are also several actions pending before the 
Court which were brought in 1985, against Ireland, 
Italy, Belgium and France. 
42. Two cases were closed, as the Member States 
concerned had complied with the Court judgment: one 
concerned the Italian system of excise duties on liqueur 
wines (Case 277/83 Commission v. Italy), and another 
the Danish system of taxation of fruit wines (Case 
106/84 Commission v. Denmark). 
43. Towards the end of 1986 the Commission began 
work on guidelines aimed at ensuring a general and 
balanced approach to parafiscal charges. 'Parafiscal 
charges' are levies collected by a private or public body 
on the production or sale of an agricultural product in 
order to finance activities which benefit the whole of the 
industry concerned. Such levies are collected for example 
by the Comites Interprofessionnels in France, the Produkt-
schappen in the Netherlands and Milk Marketing Boards 
in the United Kingdom: the revenue is spent for a variety 
of purposes, such as quality control, advertising and promotion, training and research, but also on the 
running of trade associations and social welfare 
expenditure. 
44. The amount collected in parafiscal charges, which 
is very variable, may also be used to finance domestic aid 
measures. The Commission has considered whether such 
parafiscal charges are compatible with Community law. 
It has arrived at clear guidelines which govern the steps 
it itself takes in order to identify those parafiscal charges 
which are incompatible with the rules of the Treaty and 
to put an end to the general suspicion hanging over this 
form of financing. 
45. The Commission applied these guidelines to 
several individual cases. It decided to initiate the 
procedure laid down in Article 93 of the EEC Treaty in 
respect of a series of aid measures granted out of 
parafiscal charges by the Produktschappen in the 
Netherlands. On the basis of the information in its 
possession the Commission could not conclude that the 
measures applied in the Netherlands were compatible 
with the Treaty. It also • initiated infringement 
proceedings under Article 95 in the case of Horticulture 
ornementale et pepinieres (Ornamental Horticulture and 
Nurseries) and of the Association nationale inter-
prqfessionnelle du betail et de la viande (National 
Livestock and Meat Industry Association — ANIBEV) in 
France and of the Absatzfonds (Sales Promotion Fund) in 
Germany. 
46. In the field of secondary legislation the 
Commission's main concern is to monitor the proper 
application of the Sixth VAT Directive (77/388/EEC); 
several new reasoned opinions were delivered here: 
— Belgium and the Netherlands: the right of option 
provided for in Annex G to the Directive, 
— Italy: exemption of the services of veterinary 
surgeons and farriers; taxation of payment cards; 
extension of the VAT exemption following earth­
quakes. 
47. Two new actions were brought before the Court 
concerning the import of medical samples into Italy and 
the limitations of the right to deduction (the cut-off rule) 
in France; these join the actions already pending against 
Ireland and the United Kingdom (zero rating of certain 
supplies of goods), Italy (flat-rate reimbursement of 
producers of beef, veal and pigmeat), Germany 
(Organscbaft) and the Netherlands (tax status of notaries 
and bailiffs O). 
48. Proceedings were closed in two cases, one 
concerning services rendered by carriers to the German 
Federal Post Office, where the Court's judgment in Case 
(') Judgment delivered in 1987. 
No C 338/10 Official Journal of the European Communities 16.12. 87 
107/84 Commission v. Germany is now being applied, 
and the other concerning the reduction of the taxable 
amount. 
49. In the course of its monitoring of the application 
of secondary legislation the Commission also found itself 
obliged to deliver an reasoned opinion against France, 
and to bring a Court action against Belgium, under 
Directive 72/464/EEC on manufactured tobacco; to 
initiate infringement proceedings against Italy and the 
Netherlands under Directive 83/386/EEC on VAT on 
the hiring out of movable tangible property; and to refer 
to the Court two cases concerning the implementation of 
Directives 83/181/EEC and 83/183/EEC in Italy (Cases 
124 and 125/86). 
50. The Commission delivered reasoned opinions 
against Italy, for failure to comply with the Court's 
judgment in Case 278/83 Commission v. Italy, on the 
taxation of sparkling wines, and against Germany, for 
failure to apply the judgments in Case 158/80 REWE v. 
HZA Kiel, Case 278/82 REWE v. HZA Flensburg, 
Itzehoe and Liibeck-West and Case 325/82 Commission 
v. Germany, concerning butter-buying cruises. 
Free movement of farm produce 
51. With regard to free movement of agricultural 
products, there were again many and various obstacles to 
trade in 1986, as is shown by the following examples: 
— technical requirements relating to the presentation, 
quality or packaging of products and having the 
effect of limiting or discouraging imports; the 
Commission took action against this type of measure 
in the case of the restrictions imposed on the 
marketing or importation of butter, beef and veal in 
Greece and in the case of the German legislation 
reserving the use of a given bottle shape for certain 
national producers (Bocksbeutel), 
— provisions promoting the use of national products, 
such as those contained in the German Wine Law, 
— execissive or systematic checks, particularly health 
checks which are: 
— more restrictive for imported products and not 
justified under Article 36 of the EEC Treaty, such 
as the requirement imposed by.the Italian auth­
orities that there should be an inspection corridor 
in vehicles transporting meat, 
— not easily accomplished and fluid, such as the 
quantitative limit imposed by the Italian auth­
orities on adult bovine animals imported through 
the Ventimiglia frontier post, — the fixing of minimum import prices and profit 
margins which have the effect of discouraging and 
restricting imports; such methods are used in Greece 
in trade in beef, veal and pigmeat; 
— prior import licences or authorizations, required in 
the case of potatoes in Ireland, products of animal 
origin in the United Kingdom, goats on the hoof in 
France, and frozen pigmeat in Greece, 
— arrangements for granting or refusing to grant 
foreign currency licences, designed to control imports 
and applied, for example, in Greece in the case of 
beef, veal and pigmeat, live plants and fruit and 
vegetables, 
— measures prohibiting or preventing imports, such as 
those applied to pasteurized milk and poultrymeat in 
the United Kingdom, poultrymeat in Ireland, certain 
kinds of preserved meat in the Federal Republic of 
Germany and bananas and olive oil in Greece. 
B. A PEOPLE'S EUROPE 
Economic and monetary policy 
52. As regards transfers connected with tourism and 
other forms of travel (Article 106 of the EEC Treaty), 
the rules in almost all Member States are now in line 
with the Commission's interpretation, stated in July 
1984, of the Court's judgment in Joined Cases 286/82 
and 26/83 Luisi and Carbone v. Ministero del Tesoro. 
53. The rules in force in Greece ought to set out more 
clearly the rights of residents as regards travel for 
purposes of business, study and medical treatment; the 
rules in the two new Member States are currently being 
studied. 
Internal market 
54. In general the Commission feels that an end has to 
be put to red tape at customs and all the forms of over-
zealous application of outdated rules which often stand 
in the way of not only firms but particularly of ordinary 
citizens when they are crossing borders within the 
Community. The Commission has therefore set out to 
take action under Article 30 of the EEC Treaty against 
customs penalties which are unjustified or out of pro­
portion to the offence committed. In several instances it 
has succeeded in having a fine reduced or repaid. 
55. The situation as it stands represents a challenge to 
the public credibility of the movement towards the 
complete abolition of borders by 1992. The Commission 
16.12. 87 Official Journal of the European Communities No C 338/11 
condemns these forms of protectionism and intends to 
act against them. In addition, in the course of 1987, it 
will be publishing a notice drawing attention to abuses in 
this field, and setting out the obligations imposed on 
customs authorities by Article 30 of the EEC Treaty. 
Free movement of persons and freedom to provide services 
56. In the sphere of broadcasting the Commission 
delivered two reasoned opinions concerning forms of 
discrimination against foreign broadcasts which are 
prohibited by Articles 59 and 62 of the EEC Treaty. 
57. A regional law enacted in 1984 by the city of 
Hamburg authorized the cable relay of domestic German 
radio and television programmes only. At the 
Commission's request Germany put an end to this 
discrimination against foreign programmes in September 
1985, and a new law, which complies with the Treaty, 
entered into force on 1 January 1986. 
58. According to the Italian Broadcasting Law of 
1975 the ministerial approval needed for the operation of 
an apparatus for the reception and wireless transmission 
of broadcast radio and television programmes of foreign 
origin was subject to the condition that all parts of the 
programme which were of an advertising nature be cut. 
Domestic broadcasts are not subject to any ban on 
advertising. Italy has complied with a Commission 
reasoned opinion. 
59. Infringements of the provisions on the free 
movement of persons and freedom to provide services 
(Articles 52 and 59 of the EEC Treaty) once again 
related for the most part to discrimination on the 
grounds of nationality regarding access to an 
occupation, particularly in Greece, France and Italy. The 
Court delivered judgment in three cases, although the 
Member States concerned have not yet taken the 
measures necessary to comply with these judgments. The 
Commission brought three other cases to Court, two 
concerning Greece and one Italy. 
60. However, there was a substantial fall in the 
number of infringements of the Directives adopted under 
Article 57 of the EEC Treaty with a view to ensuring the 
freedom of movement of persons practising a profession 
or occupation (doctors, nurses responsible for general 
care, dentists, midwives, lawyers, hairdressers and 
transport agents); the number of infringements fell from 
53 to 13. The Commission referred four cases of 
incomplete or incorrect transposal of these Directives to 
the Court of Justice. Employment, social policy and education 
61. As regards the application of the Treaty and of 
regulations in the social field, the Commission referred 
three cases to the Court of Justice in 1986, concerning 
Belgium and Germany. Two other cases are still pending 
before the Court. Lastly, the Commission found that 
Belgium had riot yet complied in full with the judgment 
in Case 275/83 Commission v. Belgium. Reasoned 
opinions were delivered concerning four new 
infringements (France, Greece and Belgium); two of 
these cases were later referred to the Court. 
62. As regards the application of directives, seven 
disputes (with Denmark, the Netherlands, Belgium, 
Greece, Ireland, France and the United Kingdom) were 
settled to the Commission's satisfaction, and the cases 
were accordingly closed. 
63. The following points deserve mention here: 
— With reference to Directive 76/207/EEC on equal 
treatment for men and women as regards access to 
employment, a reasoned opinion was sent to the 
United Kingdom, and three cases, concerning France 
and Luxembourg, were referred to the Court of 
Justice. A file which had been opened concerning the 
Netherlands was closed. 
— A reasoned opinion was sent to Belgium concerning 
Directive 79/7/EEC on equal treatment for men and 
women in matters of social security. It may be noted 
that a Royal Decree put an end to the concept 'head 
of household' in Belgium, thus meeting one objection 
which had been raised by the Commission. The 
report on the implementation of this Directive should 
be finalized for the end of this year. 
— Proceedings continued against Italy for failure to 
implement Directive 80/987/EEC on the protection 
of employees in the event of insolvability of their 
employer. 
— In 1986 the Court of Justice delivered two 
judgments, against Belgium and Italy, conerning the 
application of Directive 77/187/EEC on the safe­
guarding of employees' rights in the event of 
transfers of businesses. 
— The Commission particularly regrets that 
notwithstanding two judgments of the Court of 
Justice, in 1982 and 1985, Italy still has not taken the 
measures necessary to apply Directive 75/129/EEC 
on collective redundancies. 
— As regards other directives: 
No C 338/12 Official Journal of the European Communities 16.12.87 
— six letters of formal notice were adopted for 
failure to notify domestic measures implementing 
Directive 84/467/Euratom amending Directive 
80/836/Euratom on the health protection of the 
general public and workers against the dangers of 
ionizing radiation, 
— there were ten letters of formal notice concerning 
Directive 84/466/Euratom on radiation 
protection of persons undergoing medical exam­
ination or treatment, 
— there were seven letters of formal notice 
concerning Directive 82/605/EEC on the 
protection of workers exposed to metallic lead, 
— and there were two reasoned opinions concerning 
the application of Directive 80/1107/EEC on the 
protection of workers against chemical agents. 
— The Commission is drawing up the second report on 
the implementation of Directive 77/486/EEC on the 
education of the children of migrant workers. 
Consumer protection 
64. The first point to be made in connection with 
consumer protection is that a large proportion of what 
has been done is mentioned elsewhere in this report, 
particularly under the headings 'free movement of 
goods', 'free movement of persons and freedom to 
provide services', 'competition' and 'agricultural policy'. 
This is due to the fact that national measures in these 
fields frequently run counter to Community policy on 
consumer protection, based either on a provision of the 
Treaty or on a specific Community directive. 
65. In the field of consumer protection properly so 
called the number of complaints by members of the 
public suggests that consumers have not yet realized the 
advantages offered by the Community rules aimed at 
protecting and informing them. 
66. The infringement proceedings pursued this year 
follow on from the previous year. They relate mainly to 
cosmetic products (Directive 76/768/EEC with later 
amendments), the labelling of foodstuffs (Directive 
79/112/EEC) and the unit pricing of foodstuffs 
(Directive 79/581/EEC). A further case concerned 
Directive 84/450/EEC on misleading advertising. 
Driving licences 
67. The proceedings commenced against Belgium and 
Italy for failure to apply the Directive on Community driving licences are still pending before the Court. This 
question primarily interests private individuals, who send 
large numbers of complaints to the Commission, stating 
in particular that the authorities have refused to 
exchange a driving licence when the holder took up 
residence in another Member State. 
Taxation 
68. A reasoned opinion was sent by the Commission 
to several Member States (Denmark, Germany, France, 
Italy, Ireland, Luxembourg, United Kingdom, 
Netherlands) which do not observe the Court's rulings in 
the Gaston Schul cases (Cases 15/81 and 47/84) 
concerning the importation by a private individual of 
articles purchased from a private individual in another 
Member State. These rulings also formed the subject of a 
special announcement in the Official Journal of the 
European Communities (*) inviting individuals who 
encounter difficulties in this sphere, particularly in the 
form of double taxation, to make themselves known to 
the Commission; the Commission has thus received a 
large number of complaints on this subject and it is 
following them up by bringing them to the attention of 
the Member States concerned. The Netherlands has 
already informed the Commission that it intends to take 
the necessary steps to comply with the Court's rulings. 
69. The Commission is monitoring the application by 
the Member States of the Community rules on 
temporary importation of certain means of transport. It 
presented to the Council a new proposal for a directive 
(2 February 1987 (COM(87) 14 final)) in order to 
improve the existing situation and thus avoid cases of 
double taxation which might still arise. 
II. OTHER QUESTIONS 
Legal matters 
70. On 13 August 1986 Greece sent the Commission 
the text of Law No 1640/86 of 18 July 1986 which 
confers jurisdiction on the Athens district court for 
appending an order for enforcement on enforceable 
Community acts after the Ministry of Foreign Affairs has 
verified the authenticity of such acts. 
71. Enactment of this Law terminated the Greek 
infringement of the EEC and Euratom Treaties and the 
Commission was able to withdraw its action in Case 
86/86. 
(') OJNoC 13,21. 1. 1986. 
16.12.87 Official Journal of the European Communities No C 338/13 
72. Since the abovementioned Greek Law applies also 
to those acts (decisions of the Commission and 
judgments of the Court of Justice) enforceable under the 
ECSC Treaty, there should no longer be anything to 
prevent the placing of an order for enforcement on the 
individual decisions on recovery of ECSC debts in 
possession of the Greek authorities. It should thus be 
possible to terminate the infringements of Article 92 of 
the ECSC Treaty recorded in the Commission's 
reasoned decision dated 23 December 1985. 
Statistical matters 
73. As in previous years, cases of flagrant 
infringements as regards statistics are fairly rare. The few 
infringements that do occur generally concern delay in 
submitting data. 
74. For this reason no new proceedings have been 
initiated this year. The proceedings concerning the 
infringement by reason of delay in furnishing tables of 
the results of the latest population census (Directive 
73/403/EEC) were terminated since Belgium has 
furnished the missing information on the conditions and 
within the time limits specified in the commitments it had 
given to regularize the matter. In Italy, the failure to 
furnish a complete statement of carriage of goods by 
road carried out by Italian nationals (Directive 78/546/ 
EEC), which gave rise to a Court judgment dated 11 
July 1985, has not been formally regularized but the 
Commission has been informed of various steps taken to 
resolve this problem. 
Administrative matters 
75. The Commission used the infringement proc­
edures under Article 169 of the Treaty in respect of the 
failure by certain Belgian administrations to observe the 
obligations arising from the Protocol on privileges and 
immunities in certain cases concerning the situation of 
officials of the European Communities working in 
Belgium. In one of these cases the Court has upheld the 
Commission's view. Steps are being taken to have the 
Court's judgment implemented by the Belgian State. 
76. Other infringement proceedings are being 
continued against several Member States (Belgium, 
France, Luxembourg, Netherlands, Germany) with a 
view to securing the implementation of the provisions of 
the staff regulations concerning the transfer of the 
pension rights of European Community officials; in 
certain cases these proceedings have already formed the 
subject of a Court judgment. 
77. Two cases of infringement, in Belgium and in 
Germany, concerning the social security of officials and 
former officials of the European Communities and those 
entitled under them have also been referred to the Court. Budgetary matters 
78. Certain infringements of Directive 77/388/EEC 
— uniform basis of assessment of VAT — are of such a 
nature as to reduce the Community's own VAT 
resources; the Commission is therefore continuing to 
demand payment of the amounts of own resources in 
question and of the interest due by reason of the delay. 
79. Some infringement proceedings initiated against 
Belgium, France and Italy with a view to recovering own 
resources that had been evaded were terminated, since 
these Member States complied with the Commission's 
requirements. Two other infringement proceedings 
concerning own VAT resources, against Ireland and the 
Netherlands, were abandoned following a judgment by 
the Court of Justice, which declined to hold that there 
had been an infringement of Directive 77/388/EEC. 
80. The Commission sent a reasoned opinion to 
Germany with a view to obtaining payment of the own 
resources evaded by reason of the continuation of the 
'butter cruises' which the Court of Justice has held to be 
incompatible with Community rules. 
81. An infringement concerning interest on the late 
payment of own resources led to the issue of a reasoned 
opinion. Another such infringement was referred to the 
Court of Justice. The reasoned opinion addressed to 
Italy concerns the delay arising from erroneous 
accounting in respect of certain customs duties, while the 
case concerning Greece which was referred to the Court 
of Justice concerns delay in paying over a financial 
contribution in consequence of a bank strike. Finally, the 
Court of Justice found in favour of the Commission in a 
case against Germany concerning late payment of a levy 
on sugar production, occasioned by delay in ascertaining 
the amounts due. 
Competition 
82. As regards the adjustment of national monopolies 
of a commercial character, the Commission in 1986 
examined one case concerning France and two 
concerning Greece. 
83. The Commission had sent the French Government 
a reasoned opinion in respect of the French monopoly in 
potash fertilizers; that Government has now sent the 
Commission a statement officially confirming its 
intention to abolish the requirement of a declaration 
prior to import of these products. 
84. Following the letter of formal notice sent to the 
Greek Government concerning the monopoly in 
petroleum products, which by virtue of the Treaty of 
Accession should have been adjusted by 31 December 
1985, that Government has just sent the Commission a 
No C 338/14 Official Journal of the European Communities 16.12. 87 
communication which is at present being studied. As 
regards the other monopolies, the Greek Government 
has sent the Commission a draft law adjusting these 
monopolies, which is also being studied. 
85. Finally, mention should be made of Case 188/85, 
commenced by the Commission against Italy for failure 
to observe its obligations under Article 5 (2) of Directive 
80/723/EEC on the transparency of financial relations 
between Member States and their public undertakings. 
Banks, insurance companies and other financial institutions 
86. In the insurance sector, the Court of Justice has 
delivered its judgment in the case against France 
concerning the refusal to grant a tax credit to branches 
of insurers whose head office is in another Member 
State. It demonstrates that non-discrimination under the 
rules of freedom of establishment is a valid concept in 
this area of taxation and consequently the Commission 
has started examining the possible effects of this 
judgment in all Member States. 
87. Important judgments of the Court of Justice have 
also been delivered on freedom of services in the 
insurance sector in cases brought against France, 
Denmark and Ireland concerning co-insurance and 
against Germany concerning co-insurance and other 
aspects of freedom of services in the insurance sector. 
88. In the cases relating to co-insurance, the Court 
ruled that there can be no requirement on a leading 
insurer to be established in or have an authorization 
from the destination state. Member States are being 
urged to take the necessary steps to implement this as 
soon as possible. The Commission awaits judgments of 
the Court of Justice in two cases — one against Italy and 
one against the Netherlands — for failure to 
communicate the national implementing measures 
adopted in order to incorporate into domestic law 
Directive 79/267/EEC on the taking-up and pursuit of 
the business of direct life assurance. The Commission has 
sent a letter of formal notice to Belgium, Luxembourg 
and the Netherlands, and a reasoned opinion to Italy, 
for failure to incorporate the co-insurance directive. 
89. In the field of securities, judgments of the Court 
of Justice are awaited in two cases — one against 
Belgium (*) and one against Germany. They concern 
failure to incorporate into national law three directives 
i.e.: Directive 79/279/EEC concerning the conditions of 
(') The judgment has in the meantime been delivered, on 12 
February 1987 (Case 390/85) after the period covered by 
the present report. admission of securities to official stock exchange listing, 
Directive 80/390/EEC on the particulars to be published 
(prospectus for admission) and Directive 82/121/EEC 
on information to be published on a regular basis by 
listed companies. 
90. A reasoned opinion has been sent to France for 
incomplete incorporation into national law of Directive 
79/279/EEC concerning the conditions of admission of 
securities to official stock exchange listing. 
91. In the field of company law, while the case 
brought against Germany before the Court of Justice for 
non-implementation of Directive 78/660/EEC on the 
annual accounts of certain types of companies was being 
considered, Germany introduced national legislation to 
bring this Directive into effect in December 1985. A case 
against Ireland before the Court of Justice was also 
being considered, for non-implementation of Directive 
78/660/EEC, when Ireland brought into effect national 
legislation to implement it in July 1986. The Court of 
Justice delivered its judgment against Italy for non-
implementation of Directive 78/660/EEC in 1986. 
92. The Court of Justice had already delivered its 
judgment concerning the non-implementation of 
Directive 77/91/EEC concerning the formation of public 
limited liability companies and the maintenance and 
alteration of their capital when Italy brought into effect 
national legislation to implement it in February 1986. 
93. A reasoned opinion has been sent to Italy, France, 
Luxembourg, Belgium, the United Kingdom, Ireland and 
Greece on Directive 78/855/EEC concerning mergers of 
public limited liability companies, and Directive 
82/891/EEC concerning the division of public limited 
liability companies, since these countries have not 
implemented these directives. 
94. Reasoned opinions were sent to Greece for failure 
to implement the following: Directive 68/151/EEC 
concerning publicity for public limited liability 
companies; Directive 77/91/EEC concerning the 
structure of public limited liability companies and the 
maintenance and alternation of their capital; Directive 
78/660/EEC on the annual accounts of certain types of 
companies. In 1986, Greece brought into effect national 
legislation to implement ail of these directives. 
16.12. 87 Official Journal of the European Communities No C 338/15 
Environment 
95. It must be stressed that the monitoring of the 
application of Community law in this sphere has certain 
quite special features. Damage to the environment is 
often irreparable, for example in the case of the 
disappearance of an animal species. Environmental 
standards are therefore primarily aimed at preventing 
deterioration in the environment and protecting it. Since 
the business community has less direct interest than in 
other spheres in seeing these standards effectively 
applied, the Commission has to take active steps to bring 
the problem of the direct and effective application of 
Community rules in this sphere to the attention of those 
concerned. 
96. For this purpose the Commission has begun, 
among other activities, holding more regular and 
systematic meetings with the competent authorities in the 
Member States who have the task of implementing the 
Community directives. It also takes care to ensure that 
the reports of the Member States on the implementation 
of the directives are submitted to it within the time limits 
fixed by the various Community instruments, that the 
information they give is such as to enable it to monitor 
their application effectively and that the plans and 
programmes the Member States are required to draw up 
under the various directives are submitted to the 
Commission more regularly. 
97. The number both of suspected and of confirmed 
infringements has risen again during 1986. This increase 
is due not only to the Commission's more systematic 
approach along the lines indicated above but particularly 
to the fact that private individuals are becoming in­
creasingly conscious of environmental problems and the 
possibilities available under Community law for contri­
buting to their solution. 
Agricultural policy 
98. The vast range of Community rules containing 
specific measures for the organization of the market, 
intended to achieve for a particular sector the objectives 
laid down in Article 39 of the EEC Treaty (particularly 
intervention measures on the Community internal market 
and measures of adjustment to the world market) aims at 
attaining a price level at the production and wholesale 
stages which takes account both of the interests of the 
whole of Community production in the sector concerned 
(a fair standard of living for the agricultural population) 
and of the interests of consumers (reasonable prices to 
consumers). The aim is to ensure supplies without 
encouraging excessive Community production. 
99. Thus, the infringements concern either delay in 
applying the Community rules (which have to be applied 
promptly if they are to attain the effects desired by the Community legislature) or the incorrect application of 
the provisions of Community law itself. 
100. The Commission felt obliged to take action in 
respect of the delay encountered in the complete 
application in Italy of the scheme for the supplementary 
milk levy. 
101. As regards incorrect application of Community 
rules, this affects the functioning of the! market organ­
izations in the milk sector in the United Kingdom by 
reason of certain activities affecting prices by the Milk 
Marketing Boards, in the cereals and olive oil sector in 
Greece, in the fruit and vegetables, olive oil and milk 
sectors in Italy and in the wine sector in France and 
Germany. 
102. Finally, it should be pointed out that failure to 
observe certain provisions concerning the common 
organization of the markets may have harmful effects in 
the internal trade in the Member States in question, as 
for example the incorrect application of common quality 
standards for fruit and vegetables in Belgium in 
infringement of the common agricultural organization. 
103. As regards harmonization, the fields covered are: 
phytosanitary rules, seeds and plants, animal 
feedingstuffs and veterinary law. 
104. The majority of the infringements against which 
action was taken related to failure to inform the 
Commission of national implementing measures: 
— 77 procedures were initiated in 1986 under Article 
169 of the Treaty (of which 49 concerned veterinary 
rules), 
— 36 reasoned opinions were issued during the year and 
two cases were referred to the Court. Whilst 
experience shows that in general the infringements 
are terminated before the 'stage of proceedings before 
the Court, it also shows that it is primarily the 
directives concerning animal feedingstuffs that pose 
in certain Member States (especially in France and 
Italy) a problem of incorporation: 21 out of the 32 
cases in which an action has been brought before the 
Court concern this type of directive. 
105. In spite of the diversity of the infringements it 
may be of some interest to mention some characteristic 
features of infringements committed by different 
Member States. 
106. For example, it has been found that in Italy many 
infringements arise from problems of administrative infra­
structure at frontiers and from the slowness and par­
ticularly the length of Parliamentary procedures, which 
have repercussions on the time taken to incorporate 
directives, implement judgments of the Court of Justice 
or put Community measures into effect. 
No C 338/16 Official Journal of the European Communities 16.12. 87 
107. In Greece the large number of infringements 
arises from the difficulty of no longer practising a 
national policy as regards imports, exports and 
intervention, a difficulty doubtless due to the changes 
necessary to give effect to a large number of complex 
measures. 
108. As regards the United Kingdom and Ireland, 
many infringements suggest that the geographical 
situation of these two Member States, which has 
preserved their agriculture from certain animal or plant 
diseases, encourages them to maintain a tradition of 
health or phytosanitary protection which culminates 
ultimately in imposing such measures even in cases where 
they are nothing more than disguised restrictions on 
trade. 
109. In the case of the other Member States, analysis 
of the infringements does not bring out any significant 
characteristics, except perhaps for a larger number of 
infringements in the wine sector in Germany. 
110. Finally, in an increasing number of cases the 
Commission has had to initiate or continue proceedings 
for failure to implement, or incorrect implementation of, 
judgments of the Court of Justice. This was so in the 
case of Italy, the United Kingdom and Ireland. 
Fisheries 
111. As was the case in 1985 and in previous years, 
the Commission continued to take action in 1986 in 
cases in which catch quotas were exceeded (overfishing). 
At the same time, in 1986 the Commission stepped up its 
monitoring of the national control procedures which 
Member States are required to establish to ensure 
observance of the Community rules by fishermen. This 
was started in 1985 and is all the more necessary since, 
of the various procedures, the recording by Member 
States of catches subject to TAC or quotas and their 
notification are essential if the Commission is to ensure 
that Member States do not exceed quotas. The 
monitoring of compliance with Community law in this 
field is regarded by the Commission as of primary 
importance. 
112. The Commission is also endeavouring to secure 
more regular communication by the national authorities, 
in accordance with the rules in force, of the information 
prescribed pursuant to the common organization of the 
markets for fishery products. Failure by the Member 
States to communicate the information required by law 
in the manner and by the time limits specified precludes 
proper management of the common organization of the 
market and the adoption, where required, of measures 
intended to stabilize the Community market. For that 
reason, proceedings were continued in 1986 against 
Member States which had failed to fulfill Community 
obligations in this regard. 113. As in the past, the Commission continues to 
ensure that each Member State notifies it and the other 
Member States, in accordance with the rules in force, of 
national fishery measures. This enables checks to be 
carried out on the conformity of such measures with 
Community law and enables the consistency of 
Community policy to be enhanced. The Commission is 
therefore also continuing its regular scrutiny of the 
legislation of certain Member States in order that it may 
assess whether it is adequate to ensuring compliance with 
the common fisheries policy. 
Transport policy 
114. With regard to observance of Treaties and Regu­
lations, France, against which proceedings had been 
brought for incorrect application of Regulation (EEC) 
No 543/69, informed the Commission that it was 
preparing a series of measures intended to bring its law 
into line with the new Regulation (EEC) No 3820/85 on 
the harmonization of certain social legislation relating to 
road transport. The transport operations which are the 
subject of the infringement procedure instituted against 
the Netherlands concerning its failure to implement the 
provisions relating to the 'tachograph' Regulation (Regu­
lation (EEC) No 1463/70) are now included in the list 
of those derogations which are automatic or to be 
granted under the new Regulation in this field (Regu­
lation (EEC) No 3820/85). It has been possible to 
formally close the proceedings in both cases. 
115. With regard to the incorporation of directives 
into national law: 
— those concerning admission to the occupations of 
road haulage operator and road passenger transport 
operator have still not been incorporated into 
national law by Italy despite further proceedings 
before the Court for failure to comply with its 
judgments. With regard to the mutual recognition of 
diplomas for goods haulage and road passenger 
transport operators, Italy has not yet complied with 
the judgment of the Court of Justice of 11 October 
1983. A reasoned opinion was delivered in respect of 
Greece, 
— a letter of formal notice was sent to Italy, which has 
so far failed to notify the Commission of any 
measure adopted for the purpose of complying with 
the judgment of the Court of Justice of 28 March 
1985 in which it was held that the Italian Republic 
had failed to fulfill its obligations under Council 
Directive 75/130/EEC of 17 February 1975 by 
requiring a transport authorization for road vehicles 
registered in Germany which are transported by rail 
to Italy as far as Lugano, when that is the nearest 
suitable rail unloading station, 
— most Member States have implemented the provisions 
of Directive 85/347/EEC increasing to 600 litres the 
quantity of fuel contained in the fuel tanks of 
passenger vehicles which is admitted duty-free. It 
16.12.87 Official Journal of the European Communities No C 338/17 
was, however, necessary to initiate infringement 
procedures against four countries (Denmark, 
Germany, Ireland and Italy), 
— at the present time, proceedings have been brought in 
the Court of Justice against, one the one hand, Italy 
for failure to notify the Commission of measures 
adopted in implementation of Council Directive 
82/603/EEC which amends Directive 75/130/EEC 
concerning certain types of combined road/rail 
carriage of goods and, on the other hand, Belgium 
for failure to incorporate into national law directives 
on the technical requirements and reciprocal 
recognition of navigability licences for inland 
waterway vessels. A letter of formal notice has been 
sent to Greece for failure to incorporate the first of 
these directives into national law, 
— in the case of Directive 83/416/EEC concerning the 
authorization of inter-regional air services, a new 
procedure has been initiated in respect of Ireland 
while the procedure in respect of France was 
continued; in both cases the measure was not incor­
porated into national law by the prescribed time limit. 
Energy policy 
116. The Commission closely monitors movements in 
the prices of crude oil and petroleum products in the 
Community. To this end the Member States are required 
to transmit information to the Commission each quarter. 
The Commission commenced proceedings in the Court 
of Justice against Belgium for its failure to fulfill its 
obligations in regard to the provision of information 
despite a number of reminders. 
117. In the case of the directive on the performance of 
heat generators for space heating and the production of 
hot water in new or existing non-industrial buildings and 
on the insulation of heat and domestic hot-water distri­
bution in new non-industrial buildings the Member 
States are required to duly inform the Commission of 
measures taken in this field and of the results obtained or anticipated from such measures. Infringement procedures 
were initiated against Belgium, Italy and Luxembourg 
for failure to notify national implementing measures. 
External relations 
118. In 1985, the Commission transmitted to the 
Member States a memorandum setting out the approach 
it intended to follow in future as regards cooperation 
agreements concluded by Member States with third 
countries. Having received specific commitments from 
the Member States concerned, the Commission formally 
closed the infringement procedures in this field. 
119. Since then, implementation by Member States of 
Council Decision 74/393/EEC establishing a prior 
notification and consultation requirement in this field has 
considerably improved. 
Development cooperation policy 
120. In this sphere, the Commission's monitoring of 
the application of Community law is essentially designed 
to ensure observance by the Member States of various 
protocols concluded in the context of the Lome 
Convention and of the Community acts arising from 
certain international agreements relating to products. 
121. The Commission is following with particular 
attention the problems which importers of bananas from 
the ACP States seem to encounter in certain Member 
States. In one of these cases (Greece) the Commission 
brought proceedings in the Court of Justice. 
122. In the meanwhile, in a case in which coffee was 
being imported in breach of the rules laid down by the 
International Coffee Agreement, it secured an assurance 
that the said rules will be observed in future. 
123. The Commission is examining certain cases 
involving failure to observe Article 113 of the Treaty 
with regard to notification of the provisional application 
of the International Cocoa Agreement. 
No C 338/18 Official Journal of the European Communities 16. 12. 87 
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Infringement proceedings opened or pursued since 1979 classified by: 
— stage of proceedings (formal notice/reasoned opinion/reference to the Court of Justice); 
— sector 
1979 
1980 
1981 
1982 
1983 
1984 
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1986 Letter of formal notice 
Reasoned opinion 
Reference to the Court of Justice 
Letter of formal notice 
Reasoned opinion 
Reference to the Court of Justice 
Letter of formal notice 
Reasoned opinion 
Reference to the Court of Justice 
Letter of formal notice 
Reasoned opinion 
Reference to the Court of Justice 
Letter of formal notice 
Reasoned opinion 
Reference to the Court of Justice 
Letter of formal notice 
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Letter of formal notice 
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No 4 
Number of infringements acted against since 1982 classified by: 
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16.12.87 Official Journal of the European Communities No C 338/33 
No 8 
Review of significant judgments of national courts of final instance 
In general, it can be said that the courts and tribunals of the 
various Member States apply Community law in full. They 
referred 91 cases under Article 177 in 1986. /. Belgian Conseil d'Etat — Judgment of 30 July 1985 — Mees v. 
Etat Beige — Journal des Tribunaux 1987, p. 1885 
Nevertheless, certain cases cause the Commission concern. For 
that reason, the Commission, in response to a wish expressed by 
the European Parliament ('), has included in this report various 
significant judgments by national supreme courts or by courts 
against whose decisions there is no judicial remedy under 
national law, which have come to the Commission's notice in 
1986. 
The judgments mentioned below concern cases in which such 
supreme courts have clearly failed to take account of the case 
law of the Court of Justice or have failed, contrary to the 
requirements laid down in the last paragraph of Article 177 of 
the EEC Treaty, to refer a matter to the Court of Justice for a 
preliminary ruling. Mention is also made of certain judgments 
which, by departing from previous case law, assist in ensuring 
the correct application of Community law. One of the questions at issue in this case was whether the Royal 
Decrees establishing and organizing a scheme of compulsory 
health and invalidity insurance, and conferring preferential 
treatment on preparations made up individually on prescription 
as distinct from pre-packed pharmaceutical specialities (the 
former being used as a basis of price comparison in determining 
whether the cost of the latter can be reimbursed) are compatible 
with Article 30 of the Treaty. 
The plaintiff contended that preparations made up individually 
on prescription, which by definition are domestic products, had 
been deliberately protected in relation to pharmaceutical 
specialities, which are generally imported. 
The Conseil d'Etat held that these measures, although intended 
to protect the business of retail pharmacists, did not infringe 
Article 30, since they applied indiscriminately to domestic and 
imported products. It also held that protection of a doctor's 
freedom to prescribe treatment could be considered a non-
economic requirement of public health, covered by Article 36 of 
the Treaty. 
It must be emphasized that this review serves only to provide 
information and does not claim to be exhaustive; the judgments 
referred to are those which the Commission has noted in legal 
journals or to which its attention has been drawn. The Conseil d'Etat decided not to refer the question to the 
Court of Justice. At the very least, it must be said that the 
decisions of the Court of Justice do not permit the categorical 
conclusions drawn by the Belgian Conseil d'Etat. 
As the Commission has made clear on a number of occasions in 
regard to cases in which national courts disregard the legal 
force and the requirements of Article 177 of the EEC Treaty (2) 
an infringement procedure may, where a national court fails to 
respect Community law, be initiated against the Member State 
in which the court is situated. However, such a procedure does 
not constitute the most suitable basis for cooperation between 
the national courts and the Court of Justice. For that reason, 
where circumstances permit, the Commission endeavours in 
such cases to induce the Member States to ensure, without 
impairing the independence of the judiciary, that Community 
law is respected, by recourse to primary or secondary legislation 
or to administrative means. In other cases the European Parl­
iament can play a valuable part by informing public opinion. 2. Belgian Conseil d'Etat, Judgment No 26.061(111) of 15 January 
1986 — SA Salik v. EB AFF.EC 
In this case the Conseil d'Etat interpreted Article 3 of Annex V 
to Regulation (EEC) No 3059/78 and declined to make a 
reference for a preliminary ruling. This provision is open to two 
differing interpretations and there is accordingly a danger of 
discrimination as between traders. 
3. French Conseil d'Etat — Judgment of 19 November 1986 — 
Societe Smanor — Actualite Juridique, 20 December 1986, p. 
715 
(') See, in particular, the report of the Committee on Legal Affairs and 
Citizens' Rights on the monitoring of the application of Community 
law by the Member States, by Mrs Vayssade (Doc. A2-112/85 of 9 
October 1985, notably § 34, pp. 16 to 18) and the resolution adopted 
by Parliament on this matter on 21 October 1985 (OJ No C 343, 31. 
12. 1985, p. 8). 
(2) See, in particular, the Commission's answers to Written Questions 
No 100/67 and No 349/69 by Mr Westerterp, No 28/69 by Mr 
Deringer, No 608/78 by Mr Krieg and No 526/83 by Mr Tyrrell (OJ 
No 270, 8. 11. 1967, p. 2; OJ No C 20, 14. 2. 1970, p. 3; OJ No C 
71, 17. 7. 1968, p. 1; OJ No C 28, 31. 1. 1979, p. 8 and OJ No C 
268, 6. 10. 1983, p. 25). The case concerned the right to use the appellation 'yoghourt' 
in cases in which the products in question had previously 
undergone quick freezing. In response to the appellant's 
submission pursuant to Article 30, the Conseil d'Etat held inter 
alia that 'the sole object of the provisions (of the contested 
decree) which, in themselves, entail no quantitative restriction 
on imports is to restrict the appellation "y°ghourt", in the 
interests of consumers, to products displaying certain charac­
teristics, and they cannot be regarded as having an effect 
equivalent to such restrictions'. On that basis it decided not to 
make a reference to the Court of Justice for a preliminary ruling 
and rejected the submission. 
No C 338/34 Official Journal of the European Communities 16.12.87 
In so doing, the Conseil d'fitat interpreted and applied 
Community law in a manner which, at the very least, raises 
questions in view of the established case law of the Court of 
Justice concerning Article 30. 
4. French Conseil d'£tat — Judgments of 16 June 1986 — SARL 
'Cabinet Mantout', Sari 'Societe de courtage d'assurances' 
In support of a claim for relief from value added tax to which 
they had been held liable between 1 January and 30 June 1978, 
the two appellants had argued that they were covered by the 
provisions of the Sixth Council Directive on VAT of 17 May 
1977. Initially, that Directive had to be incorporated into 
national law by 1 January 1978; subsequently, the Ninth 
Directive of 28 June 1978 postponed the entry into force of the 
Sixth Directive until 1 January 1979. 
The Conseil d'Etat dismissed the appeal on the ground that the 
measures necessary to enable the Sixth Directive to take effect 
in national law had not been taken during the taxation period at 
issue; in addition, it held that the request that a reference be 
made to the Court of Justice was devoid of purpose. 
This ruling is clearly contrary to the Court's decision in 
Kloppenburg (') that the provision in question in the Sixth 
Directive was directly applicable during the period 1 January to 
28 June 1978. At the very least, the Conseil d'Etat was required 
to make a reference for a preliminary ruling. 
5. Federal Constitutional Court — Judgment of 22 October 1986 
— 2 BUR 197/83 
This is a leading judgment of the Constitutional Court of the 
Federal Republic of Germany which contributes to 
strengthening the effectiveness of Community law. In the 
judgment the Constitutional Court acknowledges that the Court 
of Justice of the European Communities has the status of 'a legally competent judge' within the meaning of Article 101 of 
the German constitution; as a result, a judgment of a national 
court which fails arbitrarily to make use of the Article 177 
procedure is liable to be declared void by the Constitutional 
Court on the ground of infringement of the constitution. 
In the judgment the Constitutional Court also lays down the 
principle that as long as the European Communities and more 
particularly the decisions of the Court of Justice ensure effective 
protection of fundamental rights it will cease to review 
Community law in the light of the rights and freedoms for 
which provision is made in the German constitution. This 
judgment thus puts an end to the conflict created by previous 
rulings that the Constitutional Court had the right to declare 
void a Community Regulation which was held to conflict with 
the fundamental rights guaranteed by the German constitution. 
6. Federal Administrative Court — Judgment of 5 June 1986 
(BVerwG3 C 12.82) Europarecht 1986, p. 372 
This judgment gives effect to the Court's judgment of 3 
October 1985 in Case 195/84 (Denkavit v. Nordrhein-Westfalen, 
not yet reported). 
It states that Article 36 of the EEC Treaty cannot be relied on 
once Community harmonization of laws has been carried out 
and it acknowledges, together with the Court of Justice, that 
certain provisions of directives are directly applicable. It 
recognizes that directives are addressed solely to the Member 
States and do not vest any right that is directly applicable in 
relations between States and individuals. However, it concedes 
that individuals may, by virtue of the principle of good faith, 
challenge acts by a Member State which are at variance with its 
obligations under a Community directive. 
It is to be distinguished from the judgment of the Federal 
Finance Court of 25 April 1985 (2), referred to in the last report. 
(') Case 70/83, Gerda Kloppenburg v. Finanzamt Leer, 1984, ECR 1075. (') OJ No C 220, 1. 9. 1986, p. 27. 
16. 12. 87 Official Journal of the European Communities No C 338/35 
No 9 
Complaints 'C and infringements detected by the Commission's own inquiries T 
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24 
No C 338/36 Official Journal of the European Communities 16. 12. 87 
DGXV 
DGXVII 
DGXIX 
DG 
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(CUS) 
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16. 12. 87 Official Journal of the European Communities No C 338/37 
ANNEX A 
Infringements of the Treaties and of Regulations 
Contents 
Page 
Administrative questions • 40 
Budgetary questions '. 40 
Economic and monetary policy 41 
Internal market and industrial affairs 41 
Customs union 47 
Competition 48 
Financial institutions and taxation 48 
Employment and social affairs 49 
Agriculture 50 
Transport 54 
Energy 54 
External relations 54 
Development 54 
Miscellaneous 54 
Fisheries 54 
Legal basis 
The indication of the legal basis provided here is derived from the document number in the Celex data 
base, which is itself derived from the act's own original number; it is made up as follows: 
— one figure identifying the documentary sector (e.g. 1 — Treaties establishing the Communities, etc.), 
— two figures identifying the reference year (year of publication, signature, etc.), 
— one or two letters identifying the legal form (e.g. E (in sector 1) = EEC Treaty), 
— a serial number representing the number given to the document on publication or the article number. 
Example: 3 80 R 2144 
Sector 3: secondary legislation 
Year of publication 
Regulation 
Regulation No 2144/80 
No C 338/38 Official Journal of the European Communities 16. 12. 87 
Sector 
1 
2 
3 
4 
5 Form 
A 
B 
E 
F 
H 
K 
R 
G 
A 
B 
C 
D 
L 
R 
X 
Y 
A 
D 
X 
Y 
PC 
AP 
IP 
AC 
IC 
CC 
BP TREATIES ESTABLISHING THE COMMUNITIES; AMENDING AND 
ACCESSION TREATIES 
Euratom Treaty 
Accession Treaties for Denmark, Ireland, Norway and the United Kingdom 
EEC Treaty 
Merger Treaty 
Treaty amending certain budgetary provisions 
Accession Treaty for Greece 
ECSC Treaty 
Treaty amending certain financial provisions 
Treaty amending certain provisions of the statute of the EIB 
Greenland Treaty 
LAW RESULTING FROM COMMUNITY EXTERNAL RELATIONS 
Agreements with non-member countries 
SECONDARY LEGISLATION 
Budget 
Censure 
Decisions (except ECSC Decisions of general scope) 
EEC and Euratom Directives 
ECSC recommendations 
EEC and Euratom Regulations 
ECSC Decisions of general scope 
Other acts (resolutions, opinions, etc.), published in OJ 'L' series (or old 
single series) 
Other acts published in OJ 'C series 
COMPLEMENTARY LEGISLATION 
Intra-Community Agreements 
Decisions (of the representatives of the Governments of the Member States) 
Other acts published in OJ 'V series (or old single series) 
Other acts published in OJ 'C series 
PREPARATORY DOCUMENTS 
Commission proposals 
EP Opinions (consultation) 
EP Opinions (own-initiative) 
ESC Opinions (consultation) 
ESC Opinions (own-initiative) 
Opinions of the Court of Auditors 
Acts preparatory to the budget 
16. 12. 87 Official Journal of the European Communities No C 338/39 
Sector 
6 
9 Form 
B 
C 
J 
O 
s 
T 
V 
X 
E 
H 
O 
P CASE-LAW OF THE COURT OF JUSTICE 
Observations 
Opinions of the' Advocate-General 
Judgments 
Orders 
Attachment orders 
Third party proceedings 
Opinions of the Court of Justice 
Other acts 
PARLIAMENTARY QUESTIONS 
Written questions 
Questions arising during Question Time 
Oral questions 
Petitions 
Note: Sectors planned: 
7 — National implementing measures. 
8 — National case-law. 
10 — Academic writing. 
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16. 12. 87 Official Journal of the European Communities No C 338/55 
ANNEX B 
Infringement of directives 
Contents 
Page 
Statistical questions 56 
Internal market and industrial affairs 56 
Financial institutions and company law 66 
Employment, social affairs and education 67 
Environment, consumer protection and nuclear safety 69 
Agriculture -. 76 
Transport 86 
Energy 89 
Economic and monetary policy 89 
Competition 89 
Budgets 89 
Customs union and indirect taxation 90 
Indirect taxation 91 
Explanation of entries 
78/546 = number of directive 
(31. 12. 1980) = deadline for incorporation of directive into national law 
blank = no measures notified by 31 December 1986 although measures may 
in fact have been taken/measures notified by MS currently under 
study/infringement proceedings decided but not yet initiated 
yes = national implementing measures notified 
n.m.n. = proceedings initiated or pursued on the grounds that no measures 
have been notified 
n.p.i. == proceedings pursued on the grounds that the directive has not been 
properly incorporated into national law 
n.p.a. = proceedings pursued on the grounds that the directive is not being 
properly applied 
1. 1. 1984 = deadline for incorporation by the particular Member State 
A 74/82 = infringement number ( /82 = year in which proceedings were 
initiated) 
Case 101/84 = number of case on Court of Justice register 
Judgment 18. 3. 1980 = date of Court judgment 
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