Keywords

Summary



Keywords

1. Agriculture - Approximation of laws concerning animal health - Veterinary and zootechnical checks in intra-Community trade in live animals and products of animal origin - Directives 89/662 and 90/425 - Emergency measures to protect against bovine spongiform encephalopathy - Powers of the Member States - Compensation for farmers following the slaughter of United Kingdom calves ordered during the bovine spongiform encephalopathy crisis - Determination by national provisions of the amount of compensation to be paid to farmers - Limits

(Council Directive 90/425, Art. 8(1)(a))

2. Agriculture - Approximation of laws concerning animal health - Veterinary and zootechnical checks in intra-Community trade in live animals and products of animal origin - Directives 89/662 and 90/425 - Emergency measures to protect against bovine spongiform encephalopathy - National measure to compensate farmers strictly ancillary to a measure ordering the slaughter of United Kingdom calves - Community rules relating to State aid not applicable

(EC Treaty, Art. 93(3) (now Art. 88(3) EC); Council Regulation No 805/68, Art. 24; Council Directive 90/425, Art. 8(1)(a))

Summary

1. The Community provisions applicable to the common agricultural policy in the beef and veal sector are to be interpreted as meaning that, in response to information concerning a possible link between bovine spongiform encephalopathy and Creutzfeldt-Jakob disease in humans and to the bovine spongiform encephalopathy crisis in the United Kingdom, the Member States were entitled, under Article 8(1)(a) of Directive 90/425 concerning veterinary and zootechnical checks applicable in intra-Community trade in certain live animals and products with a view to the completion of the internal market, as amended by Directive 92/118 laying down animal health and public health requirements governing trade in and imports into the Community of products not subject to the said requirements laid down in specific Community rules referred to in Annex A (I) to Directive 89/662 and, as regards pathogens, to Directive 90/425:

- to order the slaughter of young bovine animals originating from the United Kingdom present in their territory and,

- since there could be serious grounds for believing that, in the absence of fair compensation, farmers might conceal the origin of animals in their possession in order to avoid their slaughter and the resulting financial loss, to adopt a compensation measure ancillary to the measure requiring slaughter of the animals.

Even though the Member States had the power to adopt compensation measures under Article 8(1)(a) of Directive 90/425, Community law, in particular Regulation No 717/96 adopting exceptional support measures for the beef and veal market in Belgium, France and the Netherlands, as amended by Regulation No 841/96, precluded the amount of compensation to farmers from being determined by national provisions from the date upon which that regulation became applicable.

( see paras 40-41, 49, 57 and operative part 1-2 )

2. While a national measure providing for the grant of compensation to farmers through State resources is liable to give an advantage to the undertakings granted compensation by enabling them to avoid a loss which would otherwise be inescapable, and is therefore liable to distort competition, it cannot, however, be caught by Article 24 of Regulation No 805/68 which in principle prohibits State aid in the beef and veal sector and by the corresponding obligation of prior notification laid down in Article 93(3) of the Treaty (now Article 88(3) EC) where it is strictly ancillary to a measure ordering the slaughter of animals adopted, during the bovine spongiform encephalopathy crisis, in accordance with Article 8(1)(a) of Directive 90/425 concerning veterinary and zootechnical checks applicable in intra-Community trade in certain live animals and products with a view to the completion of the internal market.

( see paras 43-44 )