Judgment of the Court of 8 February 1973. - Commission of the European Communities v Italian Republic. - Premiums for grubbing fruit trees. - Case 30-72.



European Court reports 1973 Page 00161

Greek special edition Page 00425

Portuguese special edition Page 00087



Summary

Parties

Subject of the case

Grounds

Decision on costs

Operative part



Keywords

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MEMBER STATES - OBLIGATIONS - IMPLEMENTATION - INTERNAL ORDER - ADAPTATION

( EEC TREATY, ARTS . 5, 189 )

Summary

A MEMBER STATE CANNOT PLEAD THE PROVISIONS OR PRACTICES OF ITS INTERNAL ORDER, PARTICULARLY BUDGETARY PROVISIONS OR PRACTICES, IN ORDER TO JUSTIFY FAILURE TO OBSERVE OBLIGATIONS AND TIME-LIMITS ARISING UNDER COMMUNITY REGULATIONS .

IT FALLS TO EACH MEMBER STATE TO RECOGNIZE THE CONSEQUENCES, IN ITS INTERNAL ORDER, OF ITS ADHERENCE TO THE COMMUNITY, IN ACCORDANCE WITH THE GENERAL OBLIGATIONS IMPOSED ON MEMBER STATES BY ARTICLE 5 OF THE TREATY, AND, IF NECESSARY, TO ADAPT ITS PROCEDURES FOR BUDGETARY PROVISION IN SUCH A WAY THAT THEY DO NOT FORM AN OBSTACLE TO THE IMPLEMENTATION, WITHIN THE PRESCRIBED TIME-LIMITS, OF ITS OBLIGATIONS WITHIN THE FRAMEWORK OF THE TREATY .

Parties

IN CASE 30/72

COMMISSION OF THE EUROPEAN COMMUNITIES, REPRESENTED BY ITS LEGAL ADVISER, GIANCARLO OLMI, AS AGENT, HAVING CHOSEN ITS ADDRESS FOR SERVICE IN LUXEMBOURG AT THE OFFICES OF ITS LEGAL ADVISER, EMILE REUTER, 4, BOULEVARD ROYAL, APPLICANT,

V

ITALIAN REPUBLIC, REPRESENTED BY ADOLFO MARESCA, AMBASSADOR, AS AGENT, ASSISTED BY GIORGIO ZAGARI, ASSISTANT AT THE AVVOCATURA GENERALE DELLO STATO, HAVING CHOSEN ITS ADDRESS FOR SERVICE IN LUXEMBOURG AT THE ITALIAN EMBASSY, DEFENDANT,

Subject of the case

APPLICATION FOR A FINDING THAT THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS ARISING UNDER REGULATIONS ( EEC ) NOS 2517/69 OF THE COUNCIL AND 2637/69 OF THE COMMISSION, IN NOT HAVING ENACTED THE BODY OF PROVISIONS ALLOWING FOR THE EFFECTIVE APPLICATION WITHIN ITS TERRITORY OF THE SYSTEM OF PREMIUMS FOR GRUBBING FRUIT TREES,

Grounds

1 BY APPLICATION LODGED WITH THE REGISTRY ON 8 JUNE 1972, THE COMMISSION BROUGHT AN ACTION BEFORE THE COURT, UNDER ARTICLE 169 OF THE EEC TREATY, FOR A DECLARATION THAT THE ITALIAN REPUBLIC, IN NOT HAVING ENACTED THE BODY OF PROVISIONS NECESSARY FOR THE EFFECTIVE APPLICATION OF REGULATION NO 2517/69 OF THE COUNCIL OF 9 DECEMBER 1969 ( OJ L 318, P . 15 ) ESTABLISHING A SYSTEM OF PREMIUMS FOR GRUBBING FRUIT TREES WITH A VIEW TO REORGANIZING COMMUNITY FRUIT PRODUCTION, AS WELL AS OF THE IMPLEMENTING REGULATION NO 2637/69 OF 24 DECEMBER 1969 ( OJ L 327, P . 31 ), HAS FAILED IN ITS OBLIGATIONS ARISING UNDER THOSE REGULATIONS .

2 THE COMMISSION FIRSTLY POINTS OUT THAT THE ITALIAN REPUBLIC ALLOWED AN EXCESSIVE AMOUNT OF TIME TO PASS BEFORE EMPOWERING THE COMPETENT LOCAL AUTHORITIES, BY CIRCULAR OF THE MINISTRY OF AGRICULTURE AND FORESTRY OF 26 NOVEMBER 1970, TO PROCEED TO CERTIFY THAT THE APPLICATIONS FOR PREMIUMS LODGED BY THE GROWERS CONCERNED COULD BE APPROVED, IN ACCORDANCE WITH ARTICLE 5 OF REGULATION NO 2637/69 .

3 THE REASONED OPINION DELIVERED BY THE COMMISSION ON 14 OCTOBER 1971 WAS BASED ON THE FACT THAT THE ITALIAN REPUBLIC HAD NOT " ENACTED THE BODY OF PROVISIONS ALLOWING FOR THE EFFECTIVE APPLICATION WITHIN ITS TERRITORY OF THE SYSTEM OF PREMIUMS FOR GRUBBING FRUIT TREES ".

AS THIS STATEMENT NECESSARILY ONLY REFERS TO PROVISIONS WHICH HAD NOT YET BEEN ENACTED AT THE DATE OF THE OPINION, IT CANNOT BE TAKEN TO INCLUDE REFERENCE TO THE POSSIBLE LATENESS OF THE ABOVEMENTIONED MEASURE .

THIS FACT, THEREFORE, CANNOT BE ADMITTED .

4 THE COMMISSION THEN CLAIMS THAT THE ITALIAN REPUBLIC HAS NOT YET EMPOWERED THE COMPETENT AUTHORITIES TO CERTIFY, AT THE REQUEST OF THE PARTY CONCERNED THAT GRUBBING HAS BEEN CARRIED OUT IN THOSE CASES WHERE IT HAS ALREADY TAKEN PLACE .

THIS GROUND OF COMPLAINT CONCERNS THE APPLICATION OF ARTICLE 6 OF REGULATION NO 2637/69, UNDER THE TERMS OF WHICH, AT THE REQUEST OF THE PARTY CONCERNED, THE NATIONAL AUTHORITIES SHALL CERTIFY THAT GRUBBING HAS BEEN CARRIED OUT AND WHEN IT TOOK PLACE .

FURTHER THE GROUND OF COMPLAINT MUST BE EXAMINED IN THE LIGHT OF THE COMBINED PROVISIONS OF ARTICLE 3 OF REGULATION NO 2517/69 AND ARTICLE 7 OF REGULATION NO 2637/69, WHICH LAY DOWN THAT THE PREMIUM SHALL BE PAID WHEN THE CLAIMANT PROVES THAT HE HAS ACTUALLY COMPLETED THE GRUBBING AND THAT THIS PROOF SHALL BE FURNISHED BY PRESENTING TO THE COMPETENT AUTHORITY THE CERTIFICATE REFERRED TO IN ARTICLE 6 OF REGULATION NO 2637/69 .

IN SUPPORT OF THIS GROUND OF COMPLAINT THE COMMISSION PLACED ON FILE COPIES OF SEVERAL FORMAL REQUESTS MADE IN NOVEMBER 1972 WHEREBY ITALIAN GROWERS FORMALLY APPLIED TO THE AUTHORITIES OF THEIR STATE TO CERTIFY AND TO ISSUE THEM WITH THE CERTIFICATE REFERRED TO IN ARTICLES 6 AND 7 OF REGULATION NO 2637/69 .

5 AT THE HEARING ON 10 JANUARY 1973, THE ITALIAN GOVERNMENT ALLEGED THAT THESE CERTIFICATIONS HAD SINCE BEEN CARRIED OUT .

6 IN SO FAR AS ITS DEPARTMENT HAS ACTUALLY CARRIED OUT THOSE CHECKS AND CERTIFICATIONS, IT CAN BE SEEN FROM THE EXPLANATIONS OF THE ITALIAN GOVERNMENT ITSELF THAT THIS WAS DONE AT THE EARLIEST IN NOVEMBER 1972 .

HOWEVER, UNDER REGULATIONS NOS 2517/69 AND 2637/69 SUCH CHECKING AND CERTIFYING SHOULD HAVE BEEN CARRIED OUT AT AN EARLIER DATE, SO THAT THE ITALIAN REPUBLIC ACTED OUTSIDE THE RELEVANT TIME-LIMIT .

WHILE THESE REGULATIONS DID NOT LAY DOWN EXPRESS TIME-LIMITS FOR THE MEMBER STATES TO CARRY OUT THE MEASURES THEY CONTAINED, NEVERTHELESS SUCH TIME-LIMITS FOLLOW FROM THE CONTENT OF THESE REGULATIONS AND THE AIMS OF THE SYSTEM ESTABLISHED BY THEM .

THE OBJECT OF THESE REGULATIONS, WHICH ENTERED INTO FORCE ON 1 JANUARY 1970, IS TO REMEDY THE DISADVANTAGES RESULTING FROM STRUCTURAL OVER-PRODUCTION WHICH CHARACTERIZE THE FRUIT SECTOR, ENTAILING COSTLY INTERVENTIONS BURDENSOME TO THE EUROPEAN AGRICULTURE GUIDANCE AND GUARANTEE FUND .

BY THE THIRD RECITAL IN THE PREAMBLE TO REGULATION NO 2517/69, IN THESE CIRCUMSTANCES " SOME INDUCEMENT SHOULD BE OFFERED TO GROWERS TO RELINQUISH THEIR PRODUCTION, WHOLLY OR IN PART ", AND, FOR THIS PURPOSE, PROVISION SHOULD BE MADE FOR THE GRANT OF PREMIUMS TO GROWERS WHO AGREE TO GRUB THEIR ORCHARDS WHOLLY OR IN PART .

7 A SYSTEM WITH THIS IN VIEW OBLIGES THE MEMBER STATES TO ACT WITHIN A TIME-LIMIT WHICH ALLOWS FOR THE ATTAINMENT OF THAT END, PARTICULARLY BY CARRYING OUT THE CHECKS AND CERTIFICATIONS IN QUESTION SO AS TO ENSURE THAT GROWERS CAN OBTAIN THE PREMIUM AS SOON AS THEY HAVE SATISFIED THE REQUIRED CONDITIONS .

UNDER ARTICLE 2 ( 1 ) OF REGULATION NO 2517/69, REQUESTS FOR THE GRANTING OF PREMIUMS HAD TO BE LODGED BEFORE 1 MARCH 1971 AND COULD THEREFORE HAVE BEEN MADE AT AN EARLIER DATE .

IT IS NOT DISPUTED THAT THE NORMAL TIME FOR GRUBBING IS BETWEEN THE END OF THE HARVEST AND THE RENEWAL OF GROWTH, THAT IS BETWEEN AUTUMN AND SPRING .

THEREFORE, THE ITALIAN REPUBLIC SHOULD HAVE CARRIED OUT THE CHECKS AND CERTIFICATIONS IN THE SPRING OF 1971 AT THE LATEST IN ORDER TO BE ABLE TO GIVE EFFECT, WITHIN AN APPROPRIATE TIME, TO THE REQUESTS FOR PREMIUMS LODGED IN RESPECT OF GRUBBING CARRIED OUT DURING THE FIRST PERIOD TO BE TAKEN INTO ACCOUNT, THAT IS IN THE WINTER OF 1970/71 .

IT WAS IMPERATIVE FOR THE EFFECTIVENESS OF THE MEASURES ADOPTED TO OBSERVE SUCH A TIME LIMIT, AS THEY WOULD ONLY HAVE BEEN ABLE FULLY TO ACHIEVE THEIR OBJECTIVE ON CONDITION THAT THEY WERE IMPLEMENTED SIMULTANEOUSLY IN ALL THE MEMBER STATES .

8 IT WAS IMPERATIVE FOR THE EFFECTIVENESS OF THE MEASURES ADOPTED TO OBSERVE SUCH A TIME LIMIT, AS THEY WOULD HAVE BEEN ABLE TO ACHIEVE THEIR OBJECTIVE ON CONDITION THAT THEY WERE IMPLEMENTED SIMULTANEOUSLY IN ALL MEMBER STATES . IT APPEARS THEREFORE THAT THE DELAY BY THE ITALIAN REPUBLIC IN CHECKING AND CERTIFYING AS PROVIDED FOR BY ARTICLE 6 OF REGULATION NO 2637/69 AMOUNTED TO A FAILURE TO FULFIL ITS OBLIGATIONS .

9 FINALLY THE COMMISSION COMPLAINS THAT THE ITALIAN REPUBLIC HAS NOT PAID THE PREMIUMS FOR GRUBBING FRUIT TREES, PROVIDED FOR BY REGULATIONS NOS 2517/69 AND 2637/69, FOR THE BENEFIT OF GROWERS ENTITLED TO CLAIM THEM .

10 THE ITALIAN GOVERNMENT DOES NOT DISPUTE THE TRUTH OF THAT ALLEGATION, BUT ARGUES THAT POLITICAL CIRCUMSTANCES HAD MADE IT IMPOSSIBLE FOR THE COMPETENT AUTHORITIES, DESPITE THEIR GOOD INTENTIONS, TO FULFIL THEIR OBLIGATIONS WITH THE EXPEDITION DESIRED .

ON THE ONE HAND, ITALIAN LAW REQUIRED THAT EXPENDITURE BY THE STATE MUST BE AUTHORIZED BY LAW AND, ON THE OTHER HAND, THE POLITICAL CRISIS IN ITALY AT THE END OF 1971 AND THE BEGINNING OF 1972 PARALYSED THE FUNCTIONING OF THE LEGISLATIVE AUTHORITIES TO THE POINT THAT MADE IT IMPOSSIBLE TO ENACT WITH THE PRESCRIBED TIME A LAW COVERING THE PAYMENT OF PREMIUMS .

11 A MEMBER STATE CANNOT PLEAD THE PROVISIONS OR PRACTICES OF ITS INTERNAL ORDER IN ORDER TO JUSTIFY FAILURE TO OBSERVE OBLIGATIONS AND TIME-LIMITS ARISING FROM COMMUNITY REGULATIONS .

IT FALLS TO A MEMBER STATE IN ACCORDANCE WITH THE GENERAL OBLIGATIONS IMPOSED ON MEMBER STATES BY ARTICLE 5 OF THE TREATY, TO RECOGNIZE THE CONSEQUENCES, IN ITS INTERNAL ORDER, OF ITS ADHERENCE TO THE COMMUNITY AND, IF NECESSARY, TO ADAPT ITS PROCEDURES FOR BUDGETARY PROVISION IN SUCH A WAY THAT THEY DO NOT FORM AN OBSTACLE TO THE IMPLEMENTATION, WITHIN THE PRESCRIBED TIME-LIMITS, OF ITS OBLIGATIONS WITHIN THE FRAMEWORK OF THE TREATY .

THEREFORE, THE ITALIAN REPUBLIC CANNOT RELY ON ITS LEGISLATION OR BUDGETARY PRACTICE IN ORDER TO JUSTIFY THE DELAY IN THE PAYMENT OF THE PREMIUMS IN QUESTION .

FURTHER, BY REASON OF THEIR PARTICIPATION IN THE DELIBERATIONS OF THE COUNCIL, THE MEMBER STATES ARE INFORMED OF THE EXTENT OF THE EXPENDITURE WHICH MIGHT BE ENTAILED IN APPLYING ACTS ADOPTED BY THAT INSTITUTION AND ARE THEREFORE ABLE IN GOOD TIME TO MAKE THE APPROPRIATE PROVISIONS FOR SATISFYING THE FINANCIAL OBLIGATIONS INCURRED .

WHILE THE ITALIAN REPUBLIC LET IT BE KNOWN, AFTER CONCLUSION OF THE ORAL PROCEEDINGS, THAT A LAW ALLOWING FOR THE PAYMENT OF THE PREMIUMS IN QUESTION HAD BEEN PASSED BY ITS PARLIAMENT, THIS DOES NOT IN ANY WAY ALTER THE FACT OF THE OMISSION CHARGED .

12 IT APPEARS, THEREFORE, THAT THE FACT THAT THE ITALIAN REPUBLIC HAS NOT PAID THE PREMIUMS FOR GRUBBING FRUIT TREES CONSTITUTE A FAILURE TO FULFIL ITS OBLIGATIONS UNDER COMMUNITY LAW .

13 IT FOLLOWS FROM ALL THESE CONSIDERATIONS THAT THE ITALIAN REPUBLIC HAS FAILED IN ITS OBLIGATIONS ARISING UNDER REGULATIONS NOS 2517/69 AND 2637/69, IN NOT HAVING ENACTED THE BODY OF PROVISIONS ALLOWING FOR THE EFFECTIVE APPLICATION WITHIN ITS TERRITORY OF THE SYSTEM OF PREMIUMS FOR GRUBBING FRUIT TREES ESTABLISHED BY THOSE REGULATIONS .

Decision on costs

14 UNDER THE TERMS OF ARTICLE 69 ( 2 ) OF THE RULES OF PROCEDURE THE UNSUCCESSFUL PARTY SHALL BE ORDERED TO BEAR THE COSTS .

THE ITALIAN REPUBLIC HAS FAILED IN ITS PLEAS .

Operative part

THE COURT

HEREBY :

1 . FINDS THAT THE ITALIAN REPUBLIC, IN NOT HAVING ENACTED THE BODY OF PROVISIONS ALLOWING FOR THE EFFECTIVE APPLICATION WITHIN ITS TERRITORY OF THE SYSTEM OF PREMIUMS FOR GRUBBING FRUIT TREES, HAS FAILED TO FULFIL ITS OBLIGATIONS ARISING UNDER REGULATIONS ( EEC ) NOS 2517/69 OF THE COUNCIL OF 9 DECEMBER 1969 ( OJ L 318, P . 15 ) AND 2637/69 OF THE COMMISSION OF 24 DECEMBER 1969 ( OJ L 327, P . 31 );

2 . ORDERS THE ITALIAN REPUBLIC TO BEAR THE COSTS .