Judgment of the Court of 25 February 1988. - Commission of the European Communities v Hellenic Republic. - Restrictions on the importation of bananas. - Joined cases 194/85 and 241/85.



European Court reports 1988 Page 01037



Summary

Parties

Grounds

Decision on costs

Operative part



Keywords

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ACCESSION OF NEW MEMBER STATES TO THE COMMUNITIES - HELLENIC REPUBLIC - FREE MOVEMENT OF AGRICULTURAL PRODUCTS - DEROGATIONS - STRICT INTERPRETATION - QUANTITATIVE RESTRICTIONS AND MEASURES HAVING EQUIVALENT EFFECT - PRODUCTS COVERED BY A NATIONAL ORGANIZATION OF THE MARKET - ALMOST TOTAL BAN ON IMPORTS OF BANANAS FROM OTHER MEMBER STATES - NOT PERMISSIBLE - TOTAL BAN ON IMPORTS APPLICABLE TO PRODUCTS ORIGINATING IN ACP STATES - NOT PERMISSIBLE UNDER THE SECOND ACP-EEC CONVENTION SIGNED AT LOME .

( EEC TREATY, ART . 30; ACT OF ACCESSION OF THE HELLENIC REPUBLIC, ART . 65 ( 2 ); SECOND ACP-EEC CONVENTION SIGNED AT LOME ON 31 OCTOBER 1979, ART . 3 ( 1 ) AND ART . 6 ).

Summary

ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION OF THE HELLENIC REPUBLIC, WHICH AUTHORIZES, DURING A TRANSITIONAL PERIOD AND TO THE EXTENT STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF A NATIONAL MARKET ORGANIZATION, DEROGATIONS FROM THE PRINCIPLE OF THE FREE MOVEMENT OF AGRICULTURAL PRODUCTS MUST, LIKE ALL THE DEROGATIONS PROVIDED FOR IN THE ACT OF ACCESSION, BE INTERPRETED IN SUCH A WAY AS TO FACILITATE THE ACHIEVEMENT OF THE OBJECTIVES OF THE TREATY AND THE APPLICATION OF ALL ITS RULES . IT CAN THEREFORE APPLY ONLY TO MEASURES WHICH ARE STRICTLY NECESSARY TO FACILITATE, IN THE AREA COVERED BY A NATIONAL MARKET ORGANIZATION, GREECE' S ADJUSTMENT TO THE REQUIREMENTS OF THE COMMON MARKET .

A SYSTEM OF IMPORT LICENCES FOR BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE, IN CONJUNCTION WITH A PRACTICE OF SYSTEMATICALLY REFUSING TO ISSUE SUCH LICENCES, IS NOT STRICTLY NECESSARY IN THAT REGARD AND THEREFORE CONSTITUTES A FAILURE ON THE PART OF GREECE TO FULFIL ITS OBLIGATIONS . BY CLOSING OFF THE DOMESTIC MARKET IN BANANAS IN THAT WAY, THE GREEK GOVERNMENT IS NOT PREPARING GREEK GROWERS FOR THE INEVITABLE LIBERALIZATION OF THE MARKET FOLLOWING THE EXPIRY OF THE TRANSITIONAL PERIOD .

IN VIEW OF THAT FAILURE TO FULFIL ITS OBLIGATIONS, GREECE CANNOT RELY ON ARTICLE 6 OF THE SECOND LOME CONVENTION, WHICH PROVIDES THAT THE TREATMENT APPLIED TO IMPORTS OF PRODUCTS ORIGINATING IN THE ACP STATES MAY NOT BE MORE FAVOURABLE THAN THAT APPLIED TO TRADE AMONG THE MEMBER STATES, IN ORDER TO PROHIBIT, CONTRARY TO ARTICLE 3 ( 1 ) OF THAT CONVENTION, ALL IMPORTS OF BANANAS ORIGINATING IN ACP STATES .

Parties

IN JOINED CASES 194 AND 241/85

COMMISSION OF THE EUROPEAN COMMUNITIES, REPRESENTED BY XENOPHON YATAGANAS, A MEMBER OF ITS LEGAL DEPARTMENT, ACTING AS AGENT, WITH AN ADDRESS FOR SERVICE IN LUXEMBOURG AT THE OFFICE OF G . KREMLIS, ALSO A MEMBER OF THE COMMISSION' S LEGAL DEPARTMENT, JEAN MONNET BUILDING, KIRCHBERG,

APPLICANT,

V

HELLENIC REPUBLIC, REPRESENTED BY STELIOS PERRAKIS, LEGAL ADVISER AT THE MINISTRY OF FOREIGN AFFAIRS, WITH AN ADDRESS FOR SERVICE IN LUXEMBOURG AT THE GREEK EMBASSY,

DEFENDANT,

APPLICATION IN CASE 194/85 FOR A DECLARATION THAT, BY MAKING THE IMPORTATION OF BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE SUBJECT TO THE GRANT OF AN IMPORT LICENCE, AND BY REFUSING TO ISSUE SUCH A LICENCE, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 30 OF THE EEC TREATY AND, IN CASE 241/85, FOR A DECLARATION THAT, BY PROHIBITING THE IMPORTATION OF BANANAS ORIGINATING IN ACP COUNTRIES, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE LOME CONVENTION,

THE COURT

COMPOSED OF : O . DUE, PRESIDENT OF CHAMBER, ACTING AS PRESIDENT, T . KOOPMANS, K . BAHLMANN, C . KAKOURIS, R . JOLIET, T . F . O' HIGGINS AND F . SCHOCKWEILER, JUDGES,

ADVOCATE GENERAL : J . L . DA CRUZ VILACA

REGISTRAR : B . PASTOR, ADMINISTRATOR

HAVING REGARD TO THE REPORT FOR THE HEARING AND FURTHER TO THE HEARING ON 25 MARCH 1987, AT WHICH THE HELLENIC REPUBLIC, THE DEFENDANT, WAS REPRESENTED BY I . LAIOS, LEGAL ADVISER AT THE MINISTRY OF AGRICULTURE, AND BY M . TSOTSANIS, LAWYER AT THE MINISTRY OF AGRICULTURE,

AFTER HEARING THE OPINION OF THE ADVOCATE GENERAL DELIVERED AT THE SITTING ON 18 JUNE 1987,

GIVES THE FOLLOWING

JUDGMENT

Grounds

1 BY APPLICATIONS LODGED AT THE COURT REGISTRY ON 21 JUNE AND 5 AUGUST 1985, THE COMMISSION OF THE EUROPEAN COMMUNITIES BROUGHT TWO ACTIONS UNDER ARTICLE 169 OF THE EEC TREATY, THE FIRST FOR A DECLARATION THAT, BY MAKING THE IMPORTATION OF BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE SUBJECT TO THE GRANT OF AN IMPORT LICENCE, AND BY REFUSING TO ISSUE SUCH A LICENCE, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 30 OF THE EEC TREATY, AND THE SECOND FOR A DECLARATION THAT, BY PROHIBITING THE IMPORTATION OF BANANAS ORIGINATING IN ACP STATES, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER THE SECOND ACP-EEC CONVENTION SIGNED AT LOME ON 31 OCTOBER 1979 ( OFFICIAL JOURNAL 1980, L 347, P . 1 ) ( HEREINAFTER REFERRED TO AS "THE LOME CONVENTION ").

2 BY VIRTUE OF AN ORDER OF THE MINISTER FOR TRADE DATED 24 DECEMBER 1980, AS RENEWED FROM TIME TO TIME, IMPORTS OF BANANAS INTO GREECE HAVE SINCE 1 JANUARY 1981 BEEN SUBJECT TO THE GRANT OF A LICENCE . IT IS NOT DISPUTED THAT APPLICATIONS FOR LICENCES TO IMPORT BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE ARE SYSTEMATICALLY REFUSED . NOR IS IT DISPUTED THAT GREECE HAS IMPOSED AN ABSOLUTE BAN ON THE IMPORTATION OF BANANAS ORIGINATING IN ACP STATES .

3 THE COMMISSION TOOK THE VIEW THAT THE REQUIREMENT OF AN IMPORT LICENCE AND THE REFUSAL TO ISSUE SUCH A LICENCE CONSTITUTED MEASURES HAVING AN EFFECT EQUIVALENT TO QUANTITATIVE RESTRICTIONS ON IMPORTS . BY LETTER OF 14 JULY 1983 THE COMMISSION GAVE THE GREEK GOVERNMENT THE OPPORTUNITY TO SUBMIT ITS OBSERVATIONS AND THEN ISSUED A REASONED OPINION ON 14 MAY 1984 IN WHICH IT MAINTAINED THAT, BY ADOPTING THE MEASURES IN QUESTION IN RELATION TO BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE, THE HELLENIC REPUBLIC HAD FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 30 OF THE EEC TREATY .

4 IN ITS REPLY TO THE REASONED OPINION, THE GREEK GOVERNMENT REFERRED TO THE EXISTENCE OF A NATIONAL ORGANIZATION OF THE MARKET FOR BANANAS AND ARGUED THAT IT WAS THEREFORE ENTITLED TO ADOPT THE CONTESTED MEASURES BY ARTICLE 65 ( 2 ) OF THE ACT CONCERNING THE CONDITIONS OF ACCESSION OF THE HELLENIC REPUBLIC AND THE ADJUSTMENTS TO THE TREATIES, ANNEXED TO THE TREATY OF 28 MAY 1979 CONCERNING THE ACCESSION OF THE HELLENIC REPUBLIC TO THE EUROPEAN ECONOMIC COMMUNITY AND TO THE EUROPEAN ATOMIC ENERGY COMMUNITY ( HEREINAFTER REFERRED TO AS "THE ACT OF ACCESSION "). THE COMMISSION THEREUPON ISSUED A FURTHER REASONED OPINION ON 13 MARCH 1985 . IN THAT OPINION, THE COMMISSION MAINTAINED THAT, EVEN IF THERE WERE SUCH A NATIONAL ORGANIZATION OF THE MARKET, THE GENERAL BAN ON THE IMPORTATION OF BANANAS COULD NOT BE IN CONFORMITY WITH COMMUNITY LAW SINCE, ACCORDING TO ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION, QUANTITATIVE RESTRICTIONS AND MEASURES HAVING EQUIVALENT EFFECT WERE PERMISSIBLE ONLY "TO THE EXTENT STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF THE NATIONAL ORGANIZATION ". IN VIEW OF THE GREEK GOVERNMENT' S FAILURE TO COMPLY WITH THAT REASONED OPINION, THE COMMISSION LODGED THE APPLICATION IN CASE 194/85 .

5 IN A LETTER OF 13 DECEMBER 1984 ADDRESSED TO THE GREEK GOVERNMENT, THE COMMISSION NOTED THAT IT WAS PROHIBITED TO IMPORT INTO GREECE BANANAS ORIGINATING IN OR COMING FROM ACP STATES . THE COMMISSION INFORMED THE GREEK GOVERNMENT THAT THAT BAN WAS CONTRARY, IN PARTICULAR, TO ARTICLE 3 ( 1 ) OF THE LOME CONVENTION . SINCE THE ARGUMENTS SUBMITTED BY THE GREEK GOVERNMENT IN REPLY TO THAT LETTER WERE NOT SUCH AS TO CHANGE THE COMMISSION' S VIEWS, IT ISSUED A REASONED OPINION ON 6 JUNE 1985 . AS THE GREEK GOVERNMENT FAILED TO COMPLY WITH THAT REASONED OPINION, THE COMMISSION LODGED THE APPLICATION IN CASE 241/85 .

6 REFERENCE IS MADE TO THE REPORT FOR THE HEARING FOR A FULLER ACCOUNT OF THE NATIONAL LEGISLATION IN QUESTION, THE PROCEDURE AND THE SUBMISSIONS AND ARGUMENTS OF THE PARTIES, WHICH ARE MENTIONED HEREINAFTER ONLY IN SO FAR AS IS NECESSARY FOR THE REASONING OF THE COURT .

CASE 194/85

7 THE COMMISSION' S ACTION IS BASED ON THE ARGUMENT THAT EVEN THE PURELY FORMAL REQUIREMENT OF AN IMPORT LICENCE CONSTITUTES A MEASURE HAVING AN EFFECT EQUIVALENT TO A QUANTITATIVE RESTRICTION, WHICH IS PROHIBITED BY ARTICLE 30 ET SEQ . OF THE EEC TREATY . A FORTIORI THE SYSTEMATIC REFUSAL TO ISSUE AN IMPORT LICENCE IN INTRA-COMMUNITY TRADE CONSTITUTES AN INFRINGEMENT OF THOSE PROVISIONS .

8 FOR ITS PART, THE GREEK GOVERNMENT MAINTAINS THAT ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION ALLOWS IT TO DEROGATE FROM ITS OBLIGATIONS UNDER ARTICLE 30 OF THE TREATY .

9 IT MUST BE POINTED OUT THAT, AS THE COURT HAS CONSISTENTLY HELD, APART FROM THE EXCEPTIONS FOR WHICH PROVISION IS MADE BY COMMUNITY LAW ITSELF, ARTICLE 30 OF THE TREATY PRECLUDES THE APPLICATION IN INTRA-COMMUNITY TRADE OF A NATIONAL PROVISION WHICH REQUIRES, EVEN PURELY AS A FORMALITY, IMPORT OR EXPORT LICENCES OR ANY OTHER SIMILAR PROCEDURE ( JUDGMENT OF 15 DECEMBER 1971 IN JOINED CASES 51 TO 54/71 INTERNATIONAL FRUIT COMPANY V PRODUKTSCHAP VOOR GROENTEN EN FRUIT (( 1971 )) ECR 1107, AND JUDGMENT OF 15 DECEMBER 1976 IN CASE 41/76 DONCKERWOLCKE V PROCUREUR DE LA REPUBLIQUE (( 1976 )) ECR 1921 ).

10 ARTICLE 35 IN TITLE II OF THE ACT OF ACCESSION PROVIDES THAT :

"QUANTITATIVE RESTRICTIONS ON IMPORTS AND EXPORTS AND ANY MEASURES HAVING EQUIVALENT EFFECT SHALL, FROM THE DATE OF ACCESSION, BE ABOLISHED BETWEEN THE COMMUNITY AS AT PRESENT CONSTITUTED AND GREECE ".

11 HOWEVER, THE ACT OF ACCESSION PROVIDED FOR CERTAIN DEROGATIONS FROM ARTICLE 35, SUCH AS THAT IN ARTICLE 65 ( 2 ) WHICH IS RELIED UPON BY THE GREEK GOVERNMENT .

12 THE QUESTION THEREFORE ARISES WHETHER ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION APPLIES IN THIS CASE AND MAKES IT POSSIBLE TO DEROGATE FROM ARTICLE 30 OF THE EEC TREATY .

13 ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION PROVIDES AS FOLLOWS :

"IN RESPECT OF PRODUCTS NOT COVERED, ON THE DATE OF ACCESSION, BY A COMMON ORGANIZATION OF THE MARKET, THE PROVISIONS OF TITLE II CONCERNING THE PROGRESSIVE ABOLITION OF CHARGES HAVING EQUIVALENT EFFECT TO CUSTOMS DUTIES AND OF QUANTITATIVE RESTRICTIONS AND MEASURES HAVING EQUIVALENT EFFECT SHALL NOT APPLY TO THOSE CHARGES, RESTRICTIONS AND MEASURES IF THEY FORM PART OF A NATIONAL MARKET ORGANIZATION ON THE DATE OF ACCESSION .

THIS PROVISION SHALL ONLY APPLY UNTIL THE COMMON ORGANIZATION OF THE MARKET FOR THESE PRODUCTS IS IMPLEMENTED AND NOT LATER THAN 31 DECEMBER 1985 AND TO THE EXTENT STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF THE NATIONAL ORGANIZATION ."

14 THE COMMISSION CONTENDS IN THE FIRST PLACE THAT THE NATIONAL MEASURES IN QUESTION CANNOT BE JUSTIFIED UNDER ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION BECAUSE THE PRODUCTION AND MARKETING OF BANANAS IN GREECE ARE NOT COVERED BY A NATIONAL MARKET ORGANIZATION AS DEFINED BY THE COURT IN ITS JUDGMENT OF 10 DECEMBER 1974 IN CASE 48/74 CHARMASSON V MINISTER FOR ECONOMIC AFFAIRS AND FINANCE (( 1974 )) ECR 1383 . THE COMMISSION DOES NOT DISPUTE THE CONTENTION THAT A NUMBER OF MEASURES WERE ADOPTED IN ORDER TO PROTECT DOMESTIC PRODUCTION . HOWEVER, IT LAYS EMPHASIS ON THE FACT THAT THOSE MEASURES ARE NOT SUFFICIENT TO ENDOW THAT PROTECTIVE SYSTEM AS A WHOLE WITH THE CHARACTER OF A NATIONAL MARKET ORGANIZATION .

15 IT MUST BE BORNE IN MIND, AS THE COURT HELD IN ITS AFORESAID JUDGMENT OF 10 DECEMBER 1974 IN CASE 48/74, THAT A NATIONAL ORGANIZATION IS THE TOTALITY OF LEGAL DEVICES PLACING THE REGULATION OF THE MARKET IN THE PRODUCTS IN QUESTION UNDER THE CONTROL OF THE PUBLIC AUTHORITY, WITH A VIEW TO ENSURING, BY MEANS OF AN INCREASE IN PRODUCTIVITY AND OF OPTIMUM UTILIZATION OF THE FACTORS OF PRODUCTION, IN PARTICULAR OF MANPOWER, A FAIR STANDARD OF LIVING FOR PRODUCERS, THE STABILIZATION OF MARKETS, THE ASSURANCE OF SUPPLIES AND REASONABLE PRICES TO THE CONSUMERS .

16 IN THAT REGARD, IT IS CLEAR FROM THE DOCUMENTS BEFORE THE COURT THAT IN GREECE THE STATE GRANTS FINANCIAL AID FOR THE CULTIVATION OF BANANAS AND AID TO SUPPORT PRODUCTION, INCLUDING THE CARRYING OUT OF TECHNICAL AND ECONOMIC STUDIES AND EXPERIMENTAL RESEARCH, AND THE COMPILATION OF STATISTICAL RETURNS AND RECORDS . THE STATE ALSO DETERMINES QUALITY CRITERIA AND OTHER STANDARDS WHICH BANANAS MUST SATISFY IF THEY ARE TO BE MARKETED . ACCORDING TO THE GREEK GOVERNMENT, THE MARKETING AND DISTRIBUTION NETWORKS HAVE BEEN IMPROVED BY THE GRANT OF LICENCES FOR THE SALE OF BANANAS TO SMALL TRADERS . IN ADDITION, RETAIL PRICES HAVE BEEN FIXED WHICH TAKE ACCOUNT OF PRODUCTION AND TRANSPORT COSTS, A FAIR PROFIT MARGIN GUARANTEED TO TRADERS AND A REASONABLE PRICE LEVEL FOR CONSUMERS . IN THOSE CIRCUMSTANCES, IT MAINTAINS THAT IT SHOULD BE RECOGNIZED THAT A NATIONAL ORGANIZATION OF THE MARKET FOR BANANAS EXISTS IN GREECE .

17 SECONDLY, THE COMMISSION ALLEGES THAT THE CONDITION REFERRED TO IN THE SECOND SUBPARAGRAPH OF ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION IS NOT FULFILLED; THAT SUBPARAGRAPH PROVIDES THAT THE DEROGATION FROM THE RULES ON FREEDOM OF MOVEMENT LAID DOWN BY THAT PROVISION IS APPLICABLE ONLY TO THE EXTENT STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF THE NATIONAL ORGANIZATION . MORE SPECIFICALLY, THE COMMISSION ARGUES THAT THE REQUIREMENT OF IMPORT LICENCES FOR BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE AND THE SYSTEMATIC REFUSAL TO ISSUE SUCH LICENCES CANNOT BE REGARDED AS MEASURES STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF THE NATIONAL ORGANIZATION OF THE MARKET FOR BANANAS IN GREECE .

18 THE GREEK GOVERNMENT CONTENDS THAT QUANTITATIVE RESTRICTIONS ON IMPORTS AND MEASURES HAVING EQUIVALENT EFFECT ARE STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF THE NATIONAL ORGANIZATION IN QUESTION . IF THE IMPORTATION OF BANANAS WERE PERMITTED DURING THE TRANSITIONAL PERIOD PROVIDED FOR BY ARTICLE 65 OF THE ACT OF ACCESSION, IT WOULD LEAD TO THE FINANCIAL RUIN OF BANANA PRODUCERS AND TO THE ABANDONMENT OF STATE FINANCIAL PROGRAMMES AND INVESTMENTS . IN ITS VIEW, THEREFORE, THE RESTRICTION ON IMPORTS IMPOSED BY GREECE IS CONSISTENT WITH THE SPIRIT OF ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION .

19 IT MUST BE POINTED OUT THAT, WITH A VIEW TO GREECE' S INTEGRATION INTO THE COMMUNITY, ARTICLE 9 ( 1 ) OF THE ACT OF ACCESSION PROVIDES THAT : "THE APPLICATION OF THE ORIGINAL TREATIES AND ACTS ADOPTED BY THE INSTITUTIONS SHALL, AS A TRANSITIONAL MEASURE, BE SUBJECT TO THE DEROGATIONS PROVIDED FOR IN THIS ACT ". ACCORDINGLY, THE ACT OF ACCESSION ONLY LAID DOWN CERTAIN WELL-DEFINED TIME-LIMITS AND CONDITIONS IN ORDER TO FACILITATE GREECE' S ADJUSTMENT TO THE RULES IN FORCE WITHIN THE COMMUNITY .

20 IT FOLLOWS THAT THE PROVISIONS OF THE ACT OF ACCESSION MUST BE INTERPRETED WITH REFERENCE TO THE FOUNDATIONS OF THE COMMUNITY, AS ESTABLISHED BY THE TREATY, AND THAT THE DEROGATIONS PERMITTED BY THE ACT OF ACCESSION FROM THE RULES LAID DOWN BY THE TREATY MUST BE INTERPRETED IN SUCH A WAY AS TO FACILITATE THE ACHIEVEMENT OF THE OBJECTIVES OF THE TREATY AND THE APPLICATION OF ALL ITS RULES .

21 IN PARTICULAR, WITH REGARD TO THE ABOLITION OF QUANTITATIVE RESTRICTIONS AND MEASURES HAVING EQUIVALENT EFFECT, THE PROVISIONS OF THE ACT OF ACCESSION IN THIS AREA CANNOT BE INTERPRETED WITHOUT REFERENCE TO THE PROVISIONS OF THE TREATY RELATING THERETO .

22 MOREOVER, ARTICLE 65 OF THE ACT OF ACCESSION, WHICH CONCERNS AGRICULTURAL PRODUCTS, MUST BE INTERPRETED IN THE LIGHT OF THE OBJECTIVES OF THE COMMON AGRICULTURAL POLICY, IN SO FAR AS IT FORMS PART OF THE IMPLEMENTATION OF THAT POLICY .

23 AS THE COURT POINTED OUT IN ITS AFORESAID JUDGMENT OF 10 DECEMBER 1974 IN CASE 48/74, DURING A TRANSITIONAL PERIOD THE NATIONAL ORGANIZATION MUST ADAPT ITSELF TO THE FULLEST POSSIBLE EXTENT TO THE REQUIREMENTS OF THE COMMON MARKET WITH A VIEW TO FACILITATING THE ESTABLISHMENT OF THE COMMON AGRICULTURAL POLICY .

24 THE DEROGATION REFERRED TO IN ARTICLE 65 ( 2 ) IN RESPECT OF THE TRANSITIONAL PERIOD PROVIDED FOR THEREIN CAN APPLY ONLY TO MEASURES WHICH ARE STRICTLY NECESSARY TO FACILITATE GREECE' S ADJUSTMENT TO THE REQUIREMENTS OF THE COMMON MARKET WITH REGARD TO A NATIONAL ORGANIZATION OF THE MARKET IN AGRICULTURAL PRODUCTS .

25 IN THIS CASE THE MEASURES ADOPTED BY GREECE, NAMELY THE ESTABLISHMENT OF A SYSTEM OF IMPORT LICENCES FOR BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE, IN CONJUNCTION WITH A PRACTICE OF SYSTEMATICALLY REFUSING TO ISSUE SUCH LICENCES, CONSTITUTE AN ALMOST COMPLETE BAN ON IMPORTS . THE QUESTION THEREFORE ARISES WHETHER AN ALMOST COMPLETE BAN OF THAT KIND WAS STRICTLY NECESSARY WITHIN THE MEANING OF ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION .

26 IN THAT REGARD, THE GREEK GOVERNMENT HAS POINTED OUT THAT IF THE RESTRICTIONS WERE LIFTED, APPROXIMATELY 50 000 TONNES OF BANANAS WOULD BE IMPORTED INTO GREECE EVERY YEAR, WITH SERIOUS CONSEQUENCES FOR DOMESTIC BANANA GROWERS . IN THOSE CIRCUMSTANCES, SINCE BANANAS COULD IN ANY EVENT BE FREELY IMPORTED AS FROM THE EXPIRY OF THE TRANSITIONAL PERIOD, AN ALMOST COMPLETE BAN ON IMPORTS IS UNLIKELY TO FACILITATE THE ADJUSTMENT OF DOMESTIC PRODUCERS TO THE CONDITIONS OF THE COMMON MARKET . BY CLOSING OFF THE DOMESTIC MARKET IN BANANAS, SUCH A BAN DOES NOT PREPARE GREEK GROWERS FOR THE INEVITABLE LIBERALIZATION OF THE MARKET FOLLOWING THE EXPIRY OF THE TRANSITIONAL PERIOD . THE POSITION WOULD BE DIFFERENT IF THE GREEK GOVERNMENT HAD PROVIDED FOR THE PROGRESSIVE LIBERALIZATION OF BANANA IMPORTS IN CONJUNCTION WITH, IF NECESSARY, AN IMPORT-MONITORING OR QUOTA SYSTEM .

27 IT MUST THEREFORE BE HELD THAT THE DOMESTIC MEASURES AT ISSUE WERE NOT STRICTLY NECESSARY TO ENSURE THE MAINTENANCE OF THE NATIONAL ORGANIZATION, WITHIN THE MEANING OF ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION, AND THEREFORE CONSTITUTED AN INFRINGEMENT OF ARTICLE 30 OF THE TREATY .

CASE 241/85

28 IN THIS CASE, THE COMMISSION MAINTAINS THAT GREECE HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 3 ( 1 ) OF THE LOME CONVENTION IN SO FAR AS IT PROHIBITS IMPORTS OF BANANAS ORIGINATING IN ACP STATES .

29 ACCORDING TO ARTICLE 3 ( 1 ) OF THE LOME CONVENTION : "THE COMMUNITY SHALL NOT APPLY TO IMPORTS OF PRODUCTS ORIGINATING IN THE ACP STATES ANY QUANTITATIVE RESTRICTIONS OR MEASURES HAVING EQUIVALENT EFFECT ".

30 THE GREEK GOVERNMENT RELIES ON ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION, IN SO FAR AS THAT PROVISION ALLOWS IT TO DEROGATE FROM ITS OBLIGATIONS UNDER ARTICLE 30 OF THE EEC TREATY, AND ON ARTICLE 6 OF THE LOME CONVENTION, ACCORDING TO WHICH THE TREATMENT APPLIED TO IMPORTS OF PRODUCTS ORIGINATING IN THE ACP STATES MAY NOT BE MORE FAVOURABLE THAN THAT APPLIED TO TRADE AMONG THE MEMBER STATES . THE GREEK GOVERNMENT MAINTAINS THAT IF IT MAY, PURSUANT TO ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION, IMPOSE QUANTITATIVE RESTRICTIONS ON IMPORTS OF BANANAS ORIGINATING IN THE MEMBER STATES OF THE COMMUNITY OR IN FREE CIRCULATION THERE, IT FOLLOWS THAT IT MUST, PURSUANT TO ARTICLE 6 OF THE LOME CONVENTION, IMPOSE SIMILAR RESTRICTIONS ON IMPORTS FROM ACP STATES .

31 THE COURT HAS ALREADY STATED IN CONNECTION WITH CASE 194/85 THAT THE GREEK GOVERNMENT CANNOT RELY ON ARTICLE 65 ( 2 ) OF THE ACT OF ACCESSION TO JUSTIFY THE MEASURES IMPOSED ON IMPORTS FROM OTHER MEMBER STATES . IT FOLLOWS THAT THE GREEK GOVERNMENT' S ARGUMENT BASED ON ARTICLE 6 OF THE LOME CONVENTION CANNOT BE ACCEPTED .

32 IT MUST THEREFORE BE HELD THAT, BY PROHIBITING IMPORTS OF BANANAS ORIGINATING IN ACP STATES, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 3 ( 1 ) OF THE LOME CONVENTION .

33 IT FOLLOWS FROM THE FOREGOING THAT, BY ESTABLISHING A SYSTEM OF IMPORT LICENCES FOR BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE, IN CONJUNCTION WITH THE PRACTICE OF SYSTEMATICALLY REFUSING TO ISSUE SUCH LICENCES, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 30 OF THE EEC TREATY AND, BY PROHIBITING THE IMPORTATION OF BANANAS ORIGINATING IN ACP STATES, IT HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 3 ( 1 ) OF THE LOME CONVENTION .

Decision on costs

COSTS

34 UNDER ARTICLE 69 ( 2 ) OF THE RULES OF PROCEDURE, THE UNSUCCESSFUL PARTY IS TO BE ORDERED TO PAY THE COSTS . AS THE HELLENIC REPUBLIC HAS BEEN UNSUCCESSFUL IN ITS SUBMISSIONS, IT MUST BE ORDERED TO PAY THE COSTS .

Operative part

ON THOSE GROUNDS,

THE COURT

HEREBY :

( 1 ) DECLARES THAT, BY ESTABLISHING A SYSTEM OF IMPORT LICENCES FOR BANANAS ORIGINATING IN OTHER MEMBER STATES OR IN FREE CIRCULATION THERE, IN CONJUNCTION WITH THE PRACTICE OF SYSTEMATICALLY REFUSING TO ISSUE SUCH LICENCES, THE HELLENIC REPUBLIC HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 30 OF THE EEC TREATY AND, BY PROHIBITING THE IMPORTATION OF BANANAS ORIGINATING IN ACP STATES, IT HAS FAILED TO FULFIL ITS OBLIGATIONS UNDER ARTICLE 3 ( 1 ) OF THE LOME CONVENTION;

( 2 ) ORDERS THE HELLENIC REPUBLIC TO PAY THE COSTS .