Judgment of the Court of 11 February 1971. - Rewe-Zentrale des Lebensmittel-Großhandels GmbH v Hauptzollamt Emmerich. - Reference for a preliminary ruling: Finanzgericht Düsseldorf - Germany. - Case 37-70.



European Court reports 1971 Page 00023

Danish special edition Page 00003

Greek special edition Page 00677

Portuguese special edition Page 00005



Summary

Parties

Subject of the case

Grounds

Decision on costs

Operative part



Keywords

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TRANSITIONAL PERIOD - GENERAL PROTECTIVE MEASURES - SCOPE - COMMON ORGANISATION OF THE AGRICULTURAL MARKETS - SPECIAL PROTECTIVE MEASURES - POWERS OF THE COMMISSION

( EEC TREATY, ARTICLES 38 ( 2 ) AND 226; REGULATION NO 804/68 OF THE COUNCIL, ARTICLE 21 ( OJ L 148, P . 13 ); REGULATION NO 653/68 OF THE COUNCIL ( OJ L 123, P . 4 ))

Summary

THE PROVISIONS OF ARTICLE 226 ARE APPLICABLE TO AGRICULTURAL PRODUCTS .

THE INSERTION OF SPECIAL SAFEGUARDING CLAUSES IN AGRICULTURAL REGULATIONS DOES NOT AFFECT THE SCOPE OF THAT ARTICLE .

THE COMMISSION RETAINS THE POWER TO AUTHORIZE ON THE BASIS OF ARTICLE 226 THE PROTECTIVE MEASURES NECESSARY TO REMEDY ECONOMIC DIFFICULTIES IN THE AGRICULTURAL SECTOR OF A MEMBER STATE, EVEN IF AN AGRICULTURAL REGULATION PRESCRIBES SPECIFIC MEASURES APPLICABLE TO CASES OF THE SAME NATURE .

Parties

REFERENCE TO THE COURT UNDER ARTICLE 177 OF THE EEC TREATY BY THE FOURTH SENATE OF THE FINANZGERICHT DUESSELDORF, FOR A PRELIMINARY RULING IN THE ACTION PENDING BEFORE THAT COURT BETWEEN

REWE-ZENTRALE DES LEBENSMITTEL-GROSSHANDELS GMBH, 3-17 JAKORDENSTRASSE, 5, KOELN,

AND

HAUPTZOLLAMT EMMERICH

Subject of the case

ON THE VALIDITY, OR ALTERNATIVELY, ON THE SCOPE OF THE COMMISSION' S DECISIONS OF 30 OCTOBER 1969 ( 69/375/EEC ), 31 OCTOBER 1969 ( 69/377/EEC ), 3 NOVEMBER 1969 ( 69/392/EEC ) AND 17 NOVEMBER 1969 ( 69/410/EEC ), AUTHORIZING PROTECTIVE MEASURES WITH REGARD TO AGRICULTURE FOR THE BENEFIT OF THE FEDERAL REPUBLIC OF GERMANY,

Grounds

1 BY ORDER OF 15 JULY 1970, RECEIVED AT THE COURT REGISTRY ON 23 JULY 1970, THE FINANZGERICHT DUESSELDORF REFERRED TO THE COURT SEVERAL PRELIMINARY QUESTIONS UNDER ARTICLE 177 OF THE EEC TREATY ON THE VALIDITY OR, ALTERNATIVELY, ON THE INTERPRETATION OF THE DECISIONS OF THE COMMISSION OF 30 AND 31 OCTOBER 1969 ( 69/375 AND 69/377 EEC ) AND OF 3 AND 17 NOVEMBER 1969 ( 69/392 AND 69/410 EEC ) ON THE AUTHORIZATION OF PREVENTIVE MEASURES WITH REGARD TO AGRICULTURE FOR THE BENEFIT OF THE FEDERAL REPUBLIC OF GERMANY .

THE FIRST QUESTION

2 THE COURT IS ASKED TO RULE WHETHER THOSE DECISIONS, IN SO FAR AS THEY AUTHORIZE THE FEDERAL GOVERNMENT, OWING TO THE REVALUATION OF THE GERMAN MARK, TO LEVY A COUNTERVAILING CHARGE ON AGRICULTURAL PRODUCTS, ARE INVALID BECAUSE OF THE FACT THAT ARTICLE 226 OF THE TREATY ON WHICH THEY ARE BASED DOES NOT APPLY IN AGRICULTURAL MATTERS, HAVING REGARD TO THE SAFEGUARDING CLAUSES SPECIFICALLY CONCERNED WITH THE ORGANIZATIONS OF THE AGRICULTURAL MARKETS AND TO REGULATIONS OF THE COUNCIL NOS 804/68 OF 27 JUNE 1968 AND 653/68 OF 30 MAY 1968 .

3 IN ACCORDANCE WITH ARTICLE 226 OF THE TREATY, DURING THE TRANSITIONAL PERIOD PRESCRIBED IN ARTICLE 8 PROTECTIVE MEASURES MAY BE TAKEN IF DIFFICULTIES ARISE WHICH ARE SERIOUS AND LIABLE TO PERSIST IN ANY SECTOR OF THE ECONOMY .

IN ACCORDANCE WITH THE PRINCIPLE SET OUT IN ARTICLE 38 ( 2 ) OF THE TREATY, THE PROVISIONS OF ARTICLE 226 APPLY TO AGRICULTURAL PRODUCTS .

THE SCOPE OF ARTICLE 226 CANNOT BE AFFECTED BY THE INSERTION OF SAFEGUARDING CLAUSES IN AGRICULTURAL REGULATIONS, TAKING ACCOUNT OF THE SPECIFIC NATURE OF THOSE PROTECTIVE MECHANISMS AND IN PARTICULAR OF THE FACT THAT THEY RELATE TO TRADE WITH THIRD COUNTRIES .

4 THE CIRCUMSTANCE THAT A REGULATION, IN THIS CASE REGULATION NO 804/68, PROHIBITS THE LEVYING OF ANY CUSTOMS DUTY OR CHARGE HAVING EQUIVALENT EFFECT WITH REGARD TO AGRICULTURE CANNOT RESTRICT THE APPLICATION OF A GENERAL PROVISION OF THE TREATY SUCH AS ARTICLE 226 . LIKEWISE, REGULATION NO 653/68, RELATING TO THE DIFFICULTIES ARISING FOR THE AGRICULTURAL MARKETS FROM THE ALTERATION OF THE PARITY OF THE CURRENCY OF A MEMBER STATE, CANNOT EXCLUDE THE APPLICATION OF ARTICLE 226 OF THE TREATY .

ALTHOUGH THIS REGULATION LAYS DOWN MEASURES IN ANTICIPATION OF SITUATIONS OF THE TYPE WHICH LED THE COMMISSION TO IMPLEMENT ARTICLE 226 OF THE TREATY, THIS FACT DOES NOT DEPRIVE IT OF THE POWER TO AUTHORIZE ON THE BASIS OF ARTICLE 226 THE PROTECTIVE MEASURES NECESSARY TO PROVIDE AN INITIAL REMEDY FOR THE ECONOMIC DIFFICULTIES ARISING FOR THE AGRICULTURE OF A MEMBER STATE FROM THE ALTERATION IN THE PARITY OF ITS CURRENCY .

SINCE THIS PROVISION REMAINED APPLICABLE IN THE EXCEPTIONAL SITUATIONS WHICH IT HAS IN VIEW UNTIL THE EXPIRY OF THE TRANSITIONAL PERIOD LAID DOWN IN ARTICLE 8 OF THE TREATY, THE FACT THAT REGULATION NO 804/68 TERMINATED THE TRANSITIONAL ARRANGEMENTS LAID DOWN BY OTHER REGULATIONS FOR PARTICULAR AGRICULTURAL SECTORS IS NOT CAPABLE OF LIMITING THE PERIOD OF THE VALIDITY OF ARTICLE 226 .

5 THE VALIDITY OF THE DECISIONS OF THE COMMISSION IS CONSEQUENTLY UNAFFECTED BY THE FACT THAT THEY ARE BASED ON ARTICLE 226 OF THE TREATY .

THE SECOND QUESTION

6 IN THE EVENT OF A NEGATIVE REPLY BEING GIVEN TO THE FIRST QUESTION THE COURT IS ASKED TO RULE WHETHER THE DECISIONS IN QUESTION ARE INVALID EITHER BECAUSE " THE FACTUAL CONDITIONS FOR THE APPLICATION OF ARTICLE 226 OF THE EEC TREATY WERE NOT FULFILLED " OR BECAUSE " THE COMMISSION DID NOT FULFIL OR FAILED SUFFICIENTLY TO FULFIL THE DUTY TO PROVIDE A STATEMENT OF REASONS WHICH IS INCUMBENT ON IT UNDER ARTICLE 190 OF THE EEC TREATY ".

7 IN ITS DECISION OF 30 OCTOBER 1969 THE COMMISSION FINDS THAT THE REVALUATION OF THE GERMAN MARK BY 8.5 PER CENT WOULD INVOLVE A DECREASE IN GERMAN AGRICULTURAL PRICES, WHICH ARE FIXED IN UNITS OF ACCOUNT BUT EXPRESSED IN GERMAN MARKS, AND THEREFORE A LOSS OF INCOME FOR GERMAN AGRICULTURAL PRODUCERS .

8 OWING TO ITS EXTENT AND UNEXPECTEDNESS SUCH A DECREASE IN INCOME WOULD HAVE CONSTITUTED PER SE A SERIOUS DIFFICULTY LIABLE TO PERSIST IN A SECTOR OF THE ECONOMY JUSTIFYING THE ADOPTION OF PROTECTIVE MEASURES TO RECTIFY THE SITUATION .

FOR THIS PURPOSE PROVISION HAD TO BE MADE DURING A BRIEF TRANSITIONAL PERIOD FOR THE ESTABLISHMENT OF A SYSTEM OF LEVIES AT THE FRONTIER ISOLATING THE GERMAN AGRICULTURAL MARKET UNTIL A SYSTEM OF LONG-TERM AIDS FOR AGRICULTURAL PRODUCERS COULD BE INTRODUCED .

IT WAS THEREFORE NECESSARY, IN ORDER TO AVOID A COLLAPSE IN GERMAN AGRICULTURAL PRICES, PROVISIONALLY TO MAINTAIN THE LEVEL OF PRICES UNTIL GERMAN AGRICULTURE WAS CAPABLE, WITH THE HELP OF THE INTRODUCTION OF THE PROJECTED SYSTEM OF AIDS, OF WITHSTANDING AND ADAPTING ITSELF TO THE FALL IN PRICES WHICH WOULD INEVITABLY FOLLOW FROM THE REVALUATION OF THE GERMAN MARK WITHIN A SYSTEM BASED ON THE FREE MOVEMENT OF AGRICULTURAL PRODUCTS .

THE TEXT OF THE DECISIONS SETS OUT THESE REASONS SUCCINCTLY BUT ADEQUATELY .

9 THE GERMAN COURT REFERRED IN ADDITION TO THE ARGUMENT PUT FORWARD BY THE PLAINTIFF IN THE MAIN ACTION, ACCORDING TO WHICH THE DIFFICULTIES WHICH THE REVALUATION OF THE GERMAN MARK MIGHT HAVE CAUSED FOR GERMAN AGRICULTURE COULD HAVE BEEN AVOIDED BY AN INCREASE IN INTERVENTION PRICES EXCLUSIVELY FOR GERMAN PRODUCTS SO AS TO COMPENSATE FOR THE LOSS OF INCOME OF AGRICULTURAL PRODUCERS .

10 HOWEVER, EVEN SUPPOSING THAT THIS SYSTEM WERE AS EFFECTIVE AS THAT OF THE COMMISSION IT HAS NOT BEEN SHOWN THAT SUCH AN ARRANGEMENT WOULD HAVE INVOLVED LESS SERIOUS DIFFICULTIES FOR THE OPERATION OF THE COMMON MARKET .

IN MAKING ITS CHOICE AS IT DID THE COMMISSION DID NOT EXCEED THE DISCRETION ALLOWED IT BY ARTICLE 226 .

11 THE PLAINTIFF IN THE MAIN ACTION HAS FURTHERMORE MAINTAINED THAT IT WOULD HAVE BEEN SUFFICIENT FOR THE GERMAN GOVERNMENT TO GIVE RETROACTIVE FORCE TO THE SYSTEMS OF AIDS ESTABLISHED BY IT .

12 HOWEVER IT IS CLEAR FROM THE ORAL PROCEDURE THAT SUCH A SOLUTION WOULD HAVE ENCOUNTERED SERIOUS PRACTICAL DIFFICULTIES AND COULD NOT HAVE HAD THE PROTECTIVE EFFECT DESIRED, AT LEAST NOT TO THE EXTENT NECESSARY TO AVOID THE THREAT OF SERIOUS AND PERSISTENT DIFFICULTIES FOR GERMAN AGRICULTURE .

IT DOES NOT THEREFORE APPEAR THAT THE CONTESTED DECISIONS INFRINGED THE CONDITIONS LAID DOWN BY ARTICLE 226 ( 1 ) AND ( 3 ). IT MAY BE CONCLUDED THAT THE OBJECTIONS WHICH HAVE BEEN RAISED DO NOT AFFECT THE VALIDITY OF THE CONTESTED DECISIONS .

THE THIRD QUESTION

13 IN THE EVENT OF A NEGATIVE REPLY BEING GIVEN TO QUESTIONS I AND II, THE GERMAN COURT ASKS WHETHER THE SAID DECISIONS ARE INVALID TO THE EXTENT TO WHICH THEY WERE RENDERED RETROACTIVE FOR THE PERIOD BEFORE THEIR PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

14 THIS QUESTION RELATES TO THE FACT THAT THE DECISION OF 30 OCTOBER 1969 ( ARTICLE 6 ), PUBLISHED IN THE OFFICIAL JOURNAL OF 31 OCTOBER 1969, AUTHORIZED THE FEDERAL REPUBLIC OF GERMANY TO TAKE PROTECTIVE MEASURES WITH EFFECT FROM 27 OCTOBER 1969 .

15 UNTIL A SYSTEM OF AIDS FOR GERMAN AGRICULTURAL PRODUCERS WAS ESTABLISHED IT WAS NECESSARY TO AVOID ANY INTERRUPTION IN THE MAINTENANCE OF THE LEVEL OF AGRICULTURAL PRICES EXISTING IN GERMANY AT THE TIME OF THE REVALUATION OF THE GERMAN MARK .

THE TRANSITIONAL PROTECTIVE MEASURES AUTHORIZED BY THE DECISION OF 30 OCTOBER 1969 WOULD NOT HAVE BEEN CAPABLE OF ATTAINING THEIR OBJECTIVE FULLY IF THEY HAD NOT BEEN APPLICABLE FROM THE ENTRY INTO FORCE OF THE NEW PARITY OF THE GERMAN MARK .

16 IT WAS THUS PROPER TO FIX AT THIS SAME DATE THE POINT WHEN THE PROTECTIVE MEASURES AUTHORIZED COULD TAKE EFFECT .

THE DECISION OF THE COMMISSION OF 30 OCTOBER 1969 AND THOSE OF 31 OCTOBER AND 3 NOVEMBER 1969 WHICH SUPPLEMENTED IT ARE CONSEQUENTLY NOT INVALID TO THE EXTENT TO WHICH THEY HAVE RETROACTIVE EFFECT .

THE FOURTH QUESTION

17 THE QUESTION IS THEN ASKED WHETHER THE DISPUTED DECISION OF THE COMMISSION OF 17 NOVEMBER 1969 IS INVALID BECAUSE IT EXTENDED THE AUTHORIZATION BEYOND 7 DECEMBER 1969 .

18 IT IS CLEAR FROM THE FOREGOING CONSIDERATIONS THAT THE AIM IN AUTHORIZING PROTECTIVE MEASURES UNDER ARTICLE 226 COULD HAVE BEEN ATTAINED ONLY IF AGRICULTURAL PRICES PREVAILING IN GERMANY AT THE TIME OF THE REVALUATION WERE MAINTAINED UNTIL THE GERMAN GOVERNMENT COULD ESTABLISH A SYSTEM OF AIDS . DESPITE THE BEST ENDEAVOURS OF THE GERMAN AUTHORITIES IT WAS ONLY POSSIBLE FOR THIS SYSTEM TO ENTER INTO FORCE ON 1 JANUARY 1970 .

19 THE COMMISSION WAS CONSEQUENTLY JUSTIFIED IN EXTENDING THE EFFECT OF THE INITIAL EXCEPTIONAL AUTHORIZATIONS . CONSEQUENTLY THEIR VALIDITY IS UNAFFECTED ON THESE GROUNDS .

THE FIFTH QUESTION

20 IN VIEW OF THE REPLY GIVEN TO THE FIRST QUESTION THE FIFTH QUESTION IS DEVOID OF OBJECT .

Decision on costs

21 THE COST INCURRED BY THE COMMISSION AND BY THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY, WHICH HAVE SUBMITTED OBSERVATIONS TO THE COURT, ARE NOT RECOVERABLE .

AS THESE PROCEEDINGS ARE, IN SO FAR AS THE PARTIES TO THE MAIN ACTION ARE CONCERNED, IN THE NATURE OF A STEP IN THE ACTION PENDING BEFORE THE NATIONAL COURT, THE DECISION ON COSTS IS A MATTER FOR THAT COURT .

Operative part

THE COURT

IN ANSWER TO THE QUESTIONS REFERRED TO IT BY THE FINANZGERICHT DUESSELDORF BY ORDER OF THAT COURT OF 15 JULY 1970, HEREBY RULES :

CONSIDERATION OF THE QUESTIONS PUT DOES NOT REVEAL ANY FACTOR CAPABLE OF AFFECTING THE VALIDITY OF THE DECISIONS OF THE COMMISSION OF THE EUROPEAN COMMUNITIES OF 30 AND 31 OCTOBER 1969 ( 69/375 AND 69/377 EEC ) AND OF 3 AND 17 NOVEMBER 1969 ( 69/392 AND 69/410 EEC ).