Judgment of the Court of 28 March 1985. - Commission of the European Communities v Italian Republic. - Agricultural producer groups. - Case 272/83.



European Court reports 1985 Page 01057

Swedish special edition Page 00147

Finnish special edition Page 00153



Summary

Parties

Subject of the case

Grounds

Decision on costs

Operative part



Keywords

MEASURES ADOPTED BY THE INSTITUTIONS - REGULATIONS - DIRECT APPLICABILITY - NATIONAL IMPLEMENTING RULES - REGIONAL LEGISLATION REPEATING COMMUNITY REGULATIONS IN PART - WHETHER PERMISSIBLE

( COUNCIL REGULATION NO 1360/78 )

Summary

COMMUNITY REGULATIONS ARE , AS SUCH , DIRECTLY APPLICABLE IN ALL MEMBER STATES AND ENTER INTO FORCE SOLELY BY VIRTUE OF THEIR PUBLICATION IN THE OFFICIAL JOURNAL OF THE COMMUNITIES . CONSEQUENTLY , A MEMBER STATE IS NOT AT LIBERTY TO CREATE A SITUATION IN WHICH THE DIRECT EFFECT OF COMMUNITY REGULATIONS IS COMPROMISED .

HOWEVER , WHERE THE APPLICATION IN A MEMBER STATE OF COMMUNITY RULES SUCH AS THOSE ON AGRICULTURAL PRODUCER GROUPS DEPENDS ON THE COMBINATION OF A NUMBER OF PROVISIONS ADOPTED AT COMMUNITY , NATIONAL AND REGIONAL LEVEL , THE FACT THAT REGIONAL LAWS INCORPORATE , FOR THE SAKE OF COHERENCE AND IN ORDER TO MAKE THEM COMPREHENSIBLE TO THE PERSONS TO WHOM THEY APPLY , SOME ELEMENTS OF THE COMMUNITY REGULATIONS , CANNOT BE REGARDED AS A BREACH OF COMMUNITY LAW .

Parties

IN CASE 272/83

COMMISSION OF THE EUROPEAN COMMUNITIES , REPRESENTED BY ITS LEGAL ADVISER , GIANLUIGI CAMPOGRANDE , ACTING AS AGENT , WITH AN ADDRESS FOR SERVICE IN LUXEMBOURG AT THE OFFICE OF MANFRED BESCHEL , JEAN MONNET BUILDING , KIRCHBERG ,

APPLICANT ,

V

ITALIAN REPUBLIC , REPRESENTED BY ARNALDO SQUILLANTE , HEAD OF THE DEPARTMENT FOR CONTENTIOUS DIPLOMATIC AFFAIRS , ACTING AS AGENT , ASSISTED BY OSCAR FIUMARA , AVVOCATO DELLO STATO , WITH AN ADDRESS FOR SERVICE IN LUXEMBOURG AT THE ITALIAN EMBASSY ,

DEFENDANT ,

Subject of the case

APPLICATION FOR A DECLARATION THAT , BY NOT CORRECTLY IMPLEMENTING COUNCIL REGULATION ( EEC ) NO 1360/78 OF 19 JUNE 1978 ON PRODUCER GROUPS AND ASSOCIATIONS THEREOF ( OFFICIAL JOURNAL 1978 L 166 , P . 1 ), THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY ,

Grounds

1 BY AN APPLICATION LODGED AT THE COURT REGISTRY ON 14 DECEMBER 1983 , THE COMMISSION OF THE EUROPEAN COMMUNITIES BROUGHT AN ACTION BEFORE THE COURT UNDER ARTICLE 169 OF THE EEC TREATY FOR A DECLARATION THAT , BY NOT CORRECTLY IMPLEMENTING COUNCIL REGULATION ( EEC ) NO 1360/78 OF 19 JUNE 1978 ON PRODUCER GROUPS AND ASSOCIATIONS THEREOF ( OFFICIAL JOURNAL 1978 , L 166 , P . 1 ), THE ITALIAN REPUBLIC HAD FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY .

2 REGULATION NO 1360/78 INTRODUCED IN CERTAIN REGIONS OF THE COMMUNITY , INCLUDING THE WHOLE OF ITALY , A SYSTEM TO ENCOURAGE THE FORMATION OF AGRICULTURAL PRODUCER GROUPS WITH THE AIM OF CENTRALIZING THE SUPPLY OF CERTAIN AGRICULTURAL PRODUCTS AND ADAPTING THEIR PRODUCTION TO MARKET REQUIREMENTS . ARTICLES 4 , 7 AND 10 OF THE REGULATION REQUIRE THE MEMBER STATES CONCERNED TO RECOGNIZE THE PRODUCER GROUPS WHICH FULFIL THE CONDITIONS SET OUT IN THE REGULATION , TO VERIFY WHETHER THOSE CONDITIONS CONTINUE TO BE MET AND , FINALLY , TO GRANT AID TO RECOGNIZED GROUPS TO ENCOURAGE THEIR FORMATION AND TO FACILITATE THEIR ADMINISTRATION . THAT AID IS CHARGEABLE TO THE GUIDANCE SECTION OF THE EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND ( EAGGF ).

3 ITALIAN LAW NO 674 OF 20 OCTOBER 1978 LAYING DOWN PROVISIONS ON AGRICULTURAL PRODUCER GROUPS ( GAZZETTA UFFICIALE DELLA REPUBBLICA ITALIANA NO 311 , P . 8011 ) IS INTENDED TO ADAPT ITALIAN LEGISLATION TO THE COMMUNITY REGULATION . HOWEVER , IN VIEW OF THE FACT THAT UNDER THE ITALIAN CONSTITUTIONAL SYSTEM , CONSIDERABLE POWERS IN AGRICULTURAL MATTERS ARE VESTED IN 19 REGIONS AND IN THE TWO AUTONOMOUS PROVINCES OF TRENTINO AND BOLZANO , THE FIRST PARAGRAPH OF ARTICLE 2 OF LAW NO 674 STIPULATES THAT THE REGIONS AND THE TWO AUTONOMOUS PROVINCES ARE TO ADOPT THE NECESSARY MEASURES , IN PARTICULAR AS REGARDS THE RULES AND PROCEDURES FOR RECOGNIZING PRODUCER GROUPS ; THOSE MEASURES MUST TAKE ACCOUNT OF THE PROVISIONS OF REGULATION NO 1360/78 AND THE PROVISIONS OF LAW NO 674 . THE SECOND PARAGRAPH OF ARTICLE 2 OF LAW NO 674 PROVIDES THAT , FOR THE PURPOSES OF THEIR OPERATION AND TO ENSURE COMPLIANCE WITH THE COMMUNITY REGULATION , THE STATUTES OF PRODUCER GROUPS MUST CONTAIN , INTER ALIA , CERTAIN DETAILED RULES SET OUT IN POINTS 1 TO 10 OF THAT PARAGRAPH .

4 THE COMMISSION CONTENDS THAT THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS BY

( I ) LAYING DOWN IN LAW NO 674 AND ITS REGIONAL IMPLEMENTING LEGISLATION CONDITIONS FOR GRANTING AND WITHDRAWING RECOGNITION OF PRODUCER GROUPS DIFFERENT FROM THOSE LAID DOWN IN REGULATION NO 1360/78 ;

( II)RETAINING IN ITS REGIONAL IMPLEMENTING LEGISLATION PROVISIONS CONCERNING MATTERS IN WHICH THE COMMUNITY HAS EXCLUSIVE COMPETENCE AS WELL AS PROVISIONS REPEATING COMMUNITY RULES ; AND

( III)FAILING TO ADOPT IN PART OF ITS TERRITORY THE SUPPLEMENTARY LEGISLATION NEEDED TO IMPLEMENT REGULATION NO 1360/78 .

5 THOSE THREE SEPARATE CONTENTIONS MUST BE EXAMINED IN TURN .

( A ) THE CONDITIONS FOR GRANTING AND WITHDRAWING RECOGNITION OF PRODUCER GROUPS

6 ON THE QUESTION OF THE GRANT OF RECOGNITION TO PRODUCER GROUPS , THE COMMISSION ARGUES THAT THE ITALIAN LEGISLATION LAYS DOWN CONDITIONS DIFFERENT IN TWO RESPECTS FROM THOSE CONTAINED IN THE COMMUNITY REGULATION . FIRST , POINT ( 4 ) OF THE SECOND PARAGRAPH OF ARTICLE 2 OF LAW NO 674 REQUIRES RECOGNIZED PRODUCER GROUPS TO ENGAGE IN COMMERCIAL ACTIVITIES AS REPRESENTATIVES OF THEIR MEMBERS WHEREAS UNDER REGULATION NO 1360/78 , PRODUCER GROUPS ARE AT LIBERTY TO TRADE ON THE MARKET THEMSELVES OR ON BEHALF OF AND FOR THE ACCOUNT OF THEIR MEMBERS . SECONDLY , POINT ( 8 ) OF THE SECOND PARAGRAPH OF ARTICLE 2 REQUIRES PRODUCER GROUPS TO PROMOTE THE FORMATION OF COOPERATIVES FOR THE PURPOSE OF MANAGING COLLECTIVE PLANT FOR STORING , HANDLING , PROCESSING AND MARKETING THE PRODUCTS ; THAT REQUIREMENT IS NOT CONTAINED IN REGULATION NO 1360/78 .

7 ON THE FIRST POINT , THE COMMISSION POINTS OUT THAT , UNDER THE TERMS OF THE SECOND PARAGRAPH OF ARTICLE 2 OF THE ITALIAN LAW , THE STATUTES OF PRODUCER GROUPS ' MUST PROVIDE ' , INTER ALIA , THAT :

' ( 4 ) THE PRODUCER GROUP SHALL ADOPT RULES FOR ITS OPERATION , DRAW UP PRODUCTION AND MARKETING PLANS AND CONCLUDE AGREEMENTS AND CONTRACTS ON BEHALF OF ITS MEMBERS , INCLUDING JOINT-TRADE AGREEMENTS , FOR THE TRANSFER , WITHDRAWAL , STORAGE AND MARKETING OF THE PRODUCTS . '

8 THE COMMISSION CONCLUDES FROM THAT PROVISION THAT UNDER THE ITALIAN LEGISLATION PRODUCER GROUPS MAY NOT BE CONSTITUTED IN SUCH A WAY THAT FOR MARKETING PURPOSES THEY ACT ON BEHALF OF THEIR MEMBERS BUT FOR THE ACCOUNT OF THE GROUP OR EVEN ON BEHALF OF AND FOR THE ACCOUNT OF THE GROUP .

HOWEVER , ARTICLE 6 OF REGULATION NO 1360/78 QUITE CLEARLY PROVIDES THAT THE STATUTES OF PRODUCER GROUPS MUST MAKE IT OBLIGATORY FOR THEIR MEMBERS

' TO PLACE ON THE MARKET THE WHOLE OF THE PRODUCTION INTENDED FOR MARKETING . . . IN ACCORDANCE WITH RULES FOR CONTRIBUTIONS AND PLACING GOODS ON THE MARKET WHICH ARE ESTABLISHED AND SUPERVISED . . . BY THE GROUP . . . ,

OR TO HAVE THE WHOLE OF THE PRODUCTION INTENDED FOR MARKETING . . . PLACED ON THE MARKET BY THE GROUP . . . EITHER ON THEIR BEHALF AND FOR THEIR ACCOUNT OR FOR THEIR ACCOUNT BUT ON BEHALF OF THE GROUP . . . OR FOR THE ACCOUNT OF AND ON BEHALF OF THE GROUP . . . ' .

COMMUNITY LAW THEREFORE ALLOWS PRODUCER GROUPS TO ACT AS RULE-MAKING OR TRADING BODIES AND GIVES THEM A CHOICE , AS REGARDS THEIR COMMERCIAL ACTIVITIES , WHICH THE ITALIAN LAW DOES NOT .

9 THE ITALIAN GOVERNMENT DRAWS ATTENTION TO THE FACT THAT LAW NO 674 IS ONLY A FRAMEWORK . IT DOES NOT APPLY DIRECTLY TO PRODUCER GROUPS BUT REQUIRES THE REGIONS , WHICH HAVE COMPETENCE IN THESE MATTERS , TO LAY DOWN RULES FOR THE RECOGNITION OF PRODUCER GROUPS WHICH ALLOW THE GROUPS TO DECIDE WHETHER TO ACT AS RULE-MAKING BODIES ( RESPONSIBLE FOR LAYING DOWN RULES AND PRODUCTION PLANS ) OR AS TRADING BODIES ( RESPONSIBLE FOR CONCLUDING CONTRACTS ). AS FAR AS COMMERCIAL ACTIVITIES WERE CONCERNED , IT WAS NOT NECESSARY TO STIPULATE THAT GROUPS WERE EMPOWERED TO TRADE ON THE MARKET THEMSELVES SINCE SUCH A POWER IS IMPLIED BY THEIR OBJECT , WHICH IS TO CENTRALIZE SUPPLY . SINCE REGULATION NO 1360/78 ALSO PROVIDES THAT THE GROUPS MAY ACT ON BEHALF OF AND FOR THE ACCOUNT OF THEIR MEMBERS , THE ITALIAN LEGISLATURE CONSIDERED THAT IT WOULD BE USEFUL FOR THE STATUTES OF PRODUCER GROUPS TO DETERMINE THE INSTRUMENTS UNDER WHICH PRODUCER GROUPS MIGHT , IF THEY SO WISHED , ACT INDIRECTLY , THAT IS TO SAY AS REPRESENTATIVES OF THEIR MEMBERS .

10 IT SHOULD BE POINTED OUT FIRST OF ALL THAT , UNDER THE TERMS OF POINT ( 4 ) OF THE SECOND PARAGRAPH OF ARTICLE 2 OF LAW NO 674 , A PRODUCER GROUP MAY BE REFUSED RECOGNITION IF IT DOES NOT ADOPT IN ITS STATUTES THE FORM OF ACTIVITY PROVIDED FOR IN THAT PROVISION BUT DECIDES TO ADOPT ONE OF THE OTHER FORMS OF ACTIVITY PROVIDED FOR IN ARTICLE 6 OF REGULATION NO 1360/78 . IN SUCH A CASE , HOWEVER , THE GROUP WOULD BE ENTITLED TO RECOGNITION UNDER THE COMMUNITY REGULATION .

11 THE ITALIAN GOVERNMENT ' S ARGUMENT THAT LAW NO 674 DOES NOT REQUIRE PRODUCER GROUPS TO CARRY ON COMMERCIAL ACTIVITIES AS REPRESENTATIVES OF THEIR MEMBERS BUT MERELY REMINDS THE REGIONAL AUTHORITIES NOT TO IGNORE THAT FORM OF ACTIVITY CANNOT BE ACCEPTED . IT IS CLEAR IN FACT FROM SOME REGIONAL LAWS THAT THEY REQUIRE PRODUCER GROUPS TO INSERT IN THEIR STATUTES A CLAUSE ENABLING THEM TO ACT AS REPRESENTATIVES OF THEIR MEMBERS FOR THE PURPOSES OF THE TRANSFER , WITHDRAWAL , MARKETING AND STORAGE OF PRODUCTS WHILST NOT MENTIONING THE POSSIBILITY AFFORDED BY REGULATION NO 1360/78 THAT FOR THOSE PURPOSES THEY MAY ACT ON THEIR OWN BEHALF AND FOR THEIR OWN ACCOUNT . FOR EXAMPLE , ARTICLE 3 OF THE REGIONAL LAW OF LOMBARDY ( BOLLETTINO UFFICIALE DELLA REGIONE NO 47 OF 20 NOVEMBER 1980 ) REPRODUCES THE REQUIREMENTS LAID DOWN BY LAW NO 674 WHILE ARTICLES 2 AND 3 OF THE REGIONAL LAW OF SICILY ( BOLLETTINO UFFICIALE DELLA REGIONE NO 23 OF 9 MAY 1981 MERELY MAKES REFERENCE TO THEM . SUCH A REFERENCE IS ALSO CONTAINED IN ARTICLE 3 OF THE REGIONAL LAW OF EMILIA ROMAGNA ( BOLLETTINO UFFICIALE DELLA REGIONE NO 15 OF 5 SEPTEMBER 1981 ) AND ARTICLE 4 OF THE REGIONAL LAW OF CAMPANIA ( BOLLETTINO UFFICIALE DELLA REGIONE NO 36 OF 2 JUNE 1982 ).

12 CONSEQUENTLY , THE COMBINED EFFECT OF THE NATIONAL AND REGIONAL LEGISLATION IN A LARGE PART OF ITALY IS TO DEPRIVE PRODUCER GROUPS OF THE FREEDOM TO ADOPT A FORM OF ACTIVITY PERMITTED BY THE COMMUNITY REGULATION .

13 THE COMMISSION ' S SECOND ARGUMENT IN THIS CONNECTION CONCERNS POINT ( 8 ) OF THE SECOND PARAGRAPH OF ARTICLE 2 OF LAW NO 674 . UNDER THAT PROVISION , THE STATUTES OF PRODUCER GROUPS MUST PROVIDE THAT ' THE FORMATION OF COOPERATIVE UNDERTAKINGS OR OTHER FORMS OF ASSOCIATION IS TO BE PROMOTED WITH A VIEW TO THE BUILDING AND MANAGEMENT OF COLLECTIVE PLANT FOR STORING , HANDLING , PROCESSING AND MARKETING PRODUCTS ' . THE COMMISSION MAINTAINS THAT NO SUCH PROVISION IS CONTAINED IN REGULATION NO 1360/78 AND THAT THE ITALIAN LEGISLATION THEREFORE COMPELS PRODUCER GROUPS TO UNDERTAKE FORMS OF ACTIVITY FOR WHICH COMMUNITY LAW MAKES NO PROVISION .

14 THE ITALIAN GOVERNMENT POINTS OUT THAT THE AIM OF CREATING PRODUCER GROUPS IS TO ADAPT PRODUCTION AND SUPPLY TO THE REQUIREMENTS OF THE MARKET BY MEANS OF COMMON MEASURES . IN ITALIAN AGRICULTURE , COOPERATION IS THE FIRST STAGE OF ASSOCIATION ENABLING MARKETING CHANNELS TO BE SHORTENED BY THE CONCENTRATION OF SUPPLY AND THE COMMON USE OF PROCESSING PLANT . FAR FROM INTERFERING WITH THE OPERATION OF PRODUCER GROUPS , THE FORMATION OF COOPERATIVES SERVES THE SAME PURPOSE AND IT CAN THUS ALLEVIATE THE STRUCTURAL DEFICIENCIES THAT ARE GRADUALLY TO BE MADE GOOD BY THE COMMUNITY REGULATION .

15 THE COURT ACCEPTS THAT ARGUMENT OF THE ITALIAN GOVERNMENT . THE PROVISION AT ISSUE DOES NOT CONTAIN , AS THE COMMISSION CONTENDS , AN OBLIGATION TO PROMOTE THE FORMATION OF COOPERATIVE UNDERTAKINGS ALONE ; IT LEAVES PRODUCER GROUPS FREE TO DECIDE WHETHER TO PROMOTE THE FORMATION OF SUCH UNDERTAKINGS OR TO PROMOTE THE FORMATION OF OTHER ' FORMS OF ASSOCIATION ' CAPABLE OF MANAGING COLLECTIVE PROCESSING AND MARKETING PLANT . IT IS DIFFICULT TO SEE HOW THE PROMOTION IN ONE FORM OR ANOTHER OF SUCH COOPERATIVE OR COLLECTIVE ACTIVITIES MIGHT BE CONTRARY TO REGULATION NO 1360/78 THE AIM OF WHICH , ACCORDING TO THE SIXTH RECITAL OF ITS PREAMBLE , IS PRECISELY TO ENCOURAGE THE ' GROUPING ( OF ) FARMERS SO THAT THE ECONOMIC PROCESS CAN BE INFLUENCED BY COMMON MEASURES ' .

16 ON THIS POINT , THEREFORE , THE APPLICATION FAILS .

17 WITH REGARD TO THE WITHDRAWAL OF RECOGNITION FROM PRODUCER GROUPS , THE COMMISSION SUBMITS THAT ARTICLES 4 AND 5 OF LAW NO 674 REQUIRE THE REGIONS TO PROVIDE FOR THIS IF A PRODUCER GROUP SERIOUSLY AND REPEATEDLY INFRINGES THE COMMUNITY OR NATIONAL RULES .

18 IN ITS APPLICATION , THE COMMISSION CONCEDES THAT A MEMBER STATE MAY REQUIRE RECOGNITION TO BE WITHDRAWN IF A PRODUCER GROUP INFRINGES GENERAL NATIONAL RULES APPLYING TO ALL LEGAL PERSONS AND UNRELATED TO THE REQUIREMENTS OR OBLIGATIONS SPECIFICALLY IMPOSED ON AGRICULTURAL PRODUCER GROUPS . IT ARGUES , HOWEVER , THAT IT IS NOT PERMISSIBLE FOR RECOGNITION TO BE WITHDRAWN FROM A PRODUCER GROUP IF IT SATISFIES ALL THE CONDITIONS LAID DOWN IN THE COMMUNITY PROVISIONS BUT DOES NOT COMPLY WITH THE ADDITIONAL OBLIGATIONS IMPOSED BY LAW NO 674 .

19 THIS PART OF THE APPLICATION THEREFORE OVERLAPS WITH THE PART RELATING TO THE GRANT OF RECOGNITION TO PRODUCER GROUPS .

20 IT MUST THEREFORE BE CONCLUDED THAT THE ITALIAN REPUBLIC HAS NOT IMPLEMENTED REGULATION NO 1360/78 CORRECTLY BY INCLUDING AMONG THE CONDITIONS FOR GRANTING AND WITHDRAWING RECOGNITION OF PRODUCER GROUPS THE CONDITION THAT SUCH GROUPS MUST CONDUCT THEIR COMMERCIAL ACTIVITIES AS REPRESENTATIVES OF THEIR MEMBERS .

( B ) THE PROVISIONS OF THE REGIONAL LAWS

21 THE COMMISSION ARGUES THAT THE IMPLEMENTING REGIONAL LEGISLATION CONTAINS PROVISIONS MERELY REPEATING COMMUNITY RULES AS WELL AS PROVISIONS RELATING TO MATTERS IN WHICH THE COMMUNITY INSTITUTIONS NOW HAVE EXCLUSIVE COMPETENCE .

22 AS AN EXAMPLE THE COMMISSION REFERS TO ARTICLE 12 OF THE REGIONAL LAW OF PIEDMONT ( BOLLETTINO UFFICIALE DELLA REGIONE NO 18 OF 30 APRIL 1980 ), WHICH EMPOWERS THE REGIONAL COUNCIL TO LAY DOWN , INTER ALIA , COMMON RULES ON PRODUCTION AND MARKETING AND ON THE MINIMUM SIZE OF PRODUCER GROUPS , THE SECTORS COVERED AND THE DETERMINATION OF THE EXPENDITURE ATTRACTING AID . HOWEVER , ARTICLES 6 ( 3 ) AND 11 ( 3 ) OF REGULATION NO 1360/78 EMPOWER THE COMMISSION TO ESTABLISH SUCH RULES . THE MINIMUM SIZE OF PRODUCER GROUPS AND THE EXPENSES ATTRACTING AID HAVE ALREADY BEEN FIXED BY COMMISSION REGULATION ( EEC ) NO 2083/80 OF 31 JULY 1980 LAYING DOWN DETAILED RULES OF APPLICATION CONCERNING THE ECONOMIC ACTIVITY OF PRODUCER GROUPS AND ASSOCIATIONS THEREOF AND COMMISSION REGULATION ( EEC ) NO 2083/80 OF 31 JULY 1980 ON THE DEFINITION OF THE ACTUAL FORMATION AND OPERATING EXPENDITURE OF PRODUCER GROUPS AND ASSOCIATIONS THEREOF ( OFFICIAL JOURNAL 1980 , L 203 , PP . 5 AND 9 ).

23 THE ITALIAN GOVERNMENT CONTENDS THAT THE REGIONAL LAW OF PIEDMONT WAS ADOPTED BEFORE COMMISSION REGULATION NO 2083/80 AND COULD NOT THEREFORE TAKE IT INTO ACCOUNT AND THAT ARTICLE 12 OF THAT LAW EXPRESSLY STATES THAT THE REGIONAL COUNCIL IS TO LAY DOWN DETAILED RULES ON CERTAIN MATTERS ' IN COMPLIANCE WITH THE DECISIONS ADOPTED BY THE COMPETENT BODIES PURSUANT TO REGULATION NO 1360/78 OF THE COUNCIL OF THE EUROPEAN COMMUNITIES OF 19 JUNE 1978 ' . IN ANY EVENT , IT IS EXTREMELY DIFFICULT TO AVOID SUCH OVERLAPPING AND SOME REPETITION IN A SITUATION IN WHICH LEGISLATION IS ENACTED AT FOUR DIFFERENT LEVELS - BY THE COUNCIL OF THE EUROPEAN COMMUNITIES , THE COMMISSION , THE NATIONAL LEGISLATURE AND THE REGIONAL LEGISLATURE . THE REGIONAL LAWS ARE THE MOST ACCESSIBLE SOURCE OF INFORMATION FOR THOSE TO WHOM THEY APPLY ; IT IS THEREFORE NECESSARY FOR THEM TO REPEAT SOME HIGHER-RANKING PROVISIONS IN ORDER TO PROVIDE GREATER CLARITY .

24 IT SHOULD BE STATED FIRST OF ALL THAT REGULATION NO 1360/78 DOES NOT FIX A PRECISE TIME-LIMIT BY WHICH IT MUST BE IMPLEMENTED BY THE MEMBER STATES . SOME OF ITS PROVISIONS IMPOSE OBLIGATIONS UPON THE MEMBER STATES ( ARTICLES 4 , 7 AND 10 ( 1 )), WHILST OTHERS REQUIRE THE COMMISSION TO ESTABLISH DETAILED RULES OF APPLICATION BY FOLLOWING THE PROCEDURE FOR REFERRING MATTERS TO THE STANDING COMMITTEE ( ARTICLES 6 ( 3 ) AND 11 ( 3 )). ONLY ARTICLE 11 ( 3 ), WHICH DEALS WITH THE NECESSARY DEFINITIONS OF ACTUAL FORMATION AND OPERATING EXPENDITURE OF PRODUCER GROUPS , LAYS DOWN A TIME-LIMIT BY PROVIDING THAT THOSE DEFINITIONS ARE TO BE ADOPTED ' WITHIN SIX MONTHS OF THE ENTRY INTO FORCE OF THIS REGULATION ' . THE COMMISSION ' S IMPLEMENTING REGULATION , REGULATION NO 2083/80 , CITED ABOVE , WAS ADOPTED MORE THAN TWO YEARS AFTER REGULATION NO 1360/78 ENTERED INTO FORCE ON 26 JUNE 1978 ( ARTICLE 20 OF REGULATION NO 1360/78 ).

25 THE COMMISSION RECOGNIZES THAT IN ITALY , FOR CONSTITUTIONAL REASONS , THE PRACTICAL ARRANGEMENTS FOR GRANTING AND WITHDRAWING RECOGNITION OF PRODUCER GROUPS MUST BE LAID DOWN BY THE REGIONAL AUTHORITIES . THOSE AUTHORITIES CANNOT BE CRITICIZED FOR HAVING ADOPTED THE NECESSARY REGIONAL RULES BEFORE THE COMMISSION HAD COMPLETED ITS WORK AND , IN THOSE CIRCUMSTANCES , IN WHICH THERE WAS NO POSSIBILITY OF REFERRING TO THE COMMISSION REGULATIONS , FOR HAVING AUTHORIZED THE REGIONAL COUNCILS TO DO WHAT WAS NECESSARY WHILST COMPLYING WITH ANY DECISIONS WHICH MIGHT BE ADOPTED BY THE COMMISSION .

26 WITH REGARD TO THE CONTENTION THAT THE REGIONAL LAWS , OR SOME OF THEM , REPEAT THE PROVISIONS OF THE COMMUNITY REGULATIONS , IT IS TRUE , AS THE COMMISSION HAS POINTED OUT , THAT IN ITS JUDGMENT IN CASE 39/72 COMMISSION V ITALY ( 1973 ) ECR 101 , THE COURT STATED THAT COMMUNITY REGULATIONS ARE , AS SUCH , DIRECTLY APPLICABLE IN ALL MEMBER STATES AND ENTER INTO FORCE SOLELY BY VIRTUE OF THEIR PUBLICATION IN THE OFFICIAL JOURNAL OF THE COMMUNITIES . CONSEQUENTLY , A MEMBER STATE IS NOT AT LIBERTY TO CREATE A SITUATION IN WHICH THE DIRECT EFFECT OF COMMUNITY REGULATIONS IS COMPROMISED .

27 HOWEVER , THAT IS NOT THE POSITION IN THIS CASE . THE APPLICATION IN ITALY OF THE SYSTEM FOR ENCOURAGING THE FORMATION OF PRODUCER GROUPS CANNOT BE ASSURED BY THE COMMUNITY REGULATIONS ALONE ; AS THE COMMISSION ITSELF RECOGNIZES , IT DEPENDS ON THE COMBINATION OF A NUMBER OF PROVISIONS ADOPTED AT COMMUNITY , NATIONAL AND REGIONAL LEVEL . IN SUCH SPECIAL CIRCUMSTANCES , THE FACT THAT REGIONAL LAWS INCORPORATE , FOR THE SAKE OF COHERENCE AND IN ORDER TO MAKE THEM COMPREHENSIBLE TO THE PERSONS TO WHOM THEY APPLY , SOME ELEMENTS OF THE COMMUNITY REGULATIONS , CANNOT BE REGARDED AS A BREACH OF COMMUNITY LAW .

28 IT FOLLOWS FROM THE AFOREGOING THAT THIS PART OF THE COMMISSION ' S APPLICATION MUST BE DISMISSED .

( C ) THE FAILURE OF CERTAIN REGIONS TO LEGISLATE

29 IN ITS APPLICATION , THE COMMISSION MAINTAINS THAT , CONTRARY TO THE COMMUNITY PROVISIONS , REGULATION NO 1360/78 HAS BEEN IMPLEMENTED IN ONLY 11 ITALIAN REGIONS SINCE REGIONAL IMPLEMENTING MEASURES HAVE NOT YET BEEN ADOPTED IN THE REGIONS OF VAL D ' AOSTA , LIGURIA , FRIULI , LAZIO , MOLISE , BASILICATA , CALABRIA AND SARDINIA OR IN THE TWO AUTONOMOUS PROVINCES OF TRENTINO AND BOLZANO .

30 THE ITALIAN GOVERNMENT ADMITS THE DELAY .

31 SINCE SOME REGIONS HAVE IN THE MEANTIME ADOPTED THE NECESSARY MEASURES , IT WAS COMMON GROUND AT THE END OF THE ORAL PROCEDURE THAT TWO REGIONS , NAMELY VAL D ' AOSTA AND FRIULI , AND THE TWO AUTONOMOUS PROVINCES OF TRENTINO AND BOLZANO , HAD NOT YET TAKEN THE NECESSARY ACTION .

32 ON THIS POINT IT MUST THEREFORE BE DECLARED THAT THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE TREATY BY NOT ADOPTING IN PART OF ITS TERRITORY THE MEASURES NEEDED TO IMPLEMENT REGULATION NO 1360/78 IN FULL .

Decision on costs

COSTS

33 UNDER ARTICLE 69 ( 2 ) OF THE RULES OF PROCEDURE THE UNSUCCESSFUL PARTY MUST BE ORDERED TO PAY THE COSTS . HOWEVER , ACCORDING TO THE FIRST SUBPARAGRAPH OF ARTICLE 69 ( 3 ), THE COURT MAY ORDER THE PARTIES TO BEAR THEIR OWN COSTS IN WHOLE OR IN PART IF THEY SUCCEED ON SOME AND FAIL ON OTHER HEADS .

34 SINCE BOTH PARTIES HAVE FAILED IN SOME OF THEIR SUBMISSIONS , EACH PARTY MUST BE ORDERED TO BEAR ITS OWN COSTS .

Operative part

ON THOSE GROUNDS ,

THE COURT

HEREBY :

( 1 ) DECLARES THAT , BY INCLUDING AMONG THE CONDITIONS FOR GRANTING AND WITHDRAWING RECOGNITION OF PRODUCER GROUPS COVERED BY COUNCIL REGULATION ( EEC ) NO 1360/78 OF 19 JUNE 1978 ON PRODUCER GROUPS AND ASSOCIATIONS THEREOF ( OFFICIAL JOURNAL 1978 , L 166 , P . 1 ), THE CONDITION THAT SUCH GROUPS MUST CONDUCT THEIR COMMERCIAL ACTIVITIES AS REPRESENTATIVES OF THEIR MEMBERS AND BY NOT ADOPTING IN PART OF ITS TERRITORY THE MEASURES NEEDED TO IMPLEMENT THAT REGULATION IN FULL , THE ITALIAN REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE EEC TREATY ;

( 2)DISMISSES THE REMAINDER OF THE APPLICATION ;

( 3)ORDERS THE PARTIES TO PAY THEIR OWN COSTS .