Keywords

Summary



Keywords

1. Agriculture — Common organisation of the markets — Poultrymeat — Compulsory national insurance scheme against natural risks — Whether permissible — Conditions — (Council Regulation No 2777/75)

2. Tax provisions — Internal taxation — Parafiscal charge uniformly applied to all national production in a particular sector to finance uniform protection against natural risks — Classification as a charge having equivalent effect to a customs duty — Excluded — Applicability of Article 95 of the Treaty (now, after amendment, Article 90 EC) — Excluded — (EC Treaty, Arts 9, 12 and 95 (now, after amendment, Arts 23, 25 and 90 EC) and Art 16 (repealed by Treaty of Amsterdam))

3. Freedom to provide services — Services — Meaning — Benefits provided under a compulsory insurance scheme — Excluded — Conditions — (EC Treaty, Art. 59 (now, after amendment, Art. 49 EC) and Art. 60 (now Art. 50 EC))

4. Competition — Community law — Undertaking — Meaning — Body responsible for providing compulsory insurance — Excluded — Conditions — (EC Treaty, Art. 92 (now, after amendment, Art. 87 EC))

Summary

1. A scheme for the compulsory insurance of agricultural undertakings against natural risks cannot in principle give use to objection from the point of view of the requirements of the common market organisation of the market in poultrymeat. Whilst the purpose of that scheme, namely to protect agricultural undertakings against natural risks, does not serve any of the specific objectives of that common market organisation, it is, however, covered by the aims of the common agricultural policy to which Article 20 of Regulation No 2777/75 on the common organisation of the market in poultrymeat refers, in particular, those set out in Article 39(1)(a) and (b) of the Treaty (now Article 33(1)(a) and (b) EC).

Nevertheless, it cannot be excluded that the financial charge which the contribution to be paid into that scheme represents might give rise to barriers to trade between the Member States. It is for the national court to decide whether there is any evidence on the markets in question that the contribution does, in fact, have such an effect. The relatively small amount of the contribution and the fact that the charge it represents is, at least to some extent, compensated for by the benefits granted in the event of damage under the compulsory insurance scheme and that, because of that, farmers do not have to obtain insurance against such risks from private insurers, in so far as such insurance is available, or to take other steps to protect themselves, also indicates that the contribution has a neutral effect on trade, whilst its indeterminate duration indicates the opposite.

see paras 23-24, 28-33, operative part 1

2. A contribution, which forms part of a general system of taxation which, in principle, is applied uniformly, in particular in respect of the rate and chargeable event thereof, to national agricultural products alone, whether they are intended for the domestic market or for export, and which is used to fund a public body responsible for the prevention of, and compensation for, damage caused to national agricultural holdings by natural risks is not charged on the product solely because it crosses the border as such, and consequently cannot be classified as a charge having equivalent effect to a customs duty on exports within the meaning of Articles 9 and 12 of the Treaty (now, after amendment, Articles 23 EC and 25 EC) and Article 16 of the Treaty (repealed by the Treaty of Amsterdam). Furthermore, Article 95 of the Treaty (now, after amendment, Article 90 EC) does not apply to such a contribution since the export of a taxed product does not constitute the chargeable event giving rise to the levying of the contribution, the contribution cannot be considered to be discriminatory since it applies equally to domestic agricultural products processed or marketed on the national market and to those intended for export, and the revenue from it is available equally to all agricultural holdings.

see paras 41-43, 46-47, operative part 2

3. The concept of "services" within the meaning of Article 60 of the Treaty (now Article 50 EC) implies that they are ordinarily provided for remuneration. The essential characteristic of remuneration lies in the fact that it constitutes consideration for the service in question, and is normally agreed upon between the provider and the recipient of the service.

Consequently, benefits provided under a compulsory insurance scheme for farmers against natural risks cannot be classified as services within the meaning of Articles 59 (now, after amendment, Article 49 EC) and 60 of the Treaty where the contribution paid by the assured is essentially in the nature of a charge imposed by the legislature and it is levied by the tax authority and the characteristics of that charge, including its rate, are also determined by the legislature. Therefore those services do not fall within the scope of Directive 73/239 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance, the scope of which, as regards the concept of services, is no wider than that of Articles 59 and 60 of the Treaty.

However, in so far as that compulsory insurance scheme covers insurable natural risks it may constitute a restriction on the freedom of insurance companies established in other Member States who wish to offer services covering such risks to provide services within the meaning of those Treaty provisions. It is for the referring court to determine whether that scheme is in fact justified by social policy objectives and to examine in particular whether the cover provided by that compulsory insurance scheme is proportionate to those objectives.

see paras 54-55, 57, 59-60, 63, 73-74, operative part 3

4. The social purpose of a compulsory insurance scheme is not, in itself, sufficient to preclude the activity of an insurer from being classified as an economic activity for the purposes of the Treaty provisions on competition. However, where the benefits and the contribution, which are the two essential elements of that scheme, are set by the national legislature, the insurance activity in question is not an economic activity within the meaning of the Treaty provisions on competition and that, in particular, that insurer is not an undertaking within the meaning of Article 92 of the Treaty (now, after amendment, Article 87 EC).

see paras 77-79, 88, operative part 4