Keywords

Summary



Keywords

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1. Non-contractual liability ° Conditions ° Legislative measure involving choices of economic policy ° Sufficiently serious breach of a superior rule of law for the protection of the individual

(EC Treaty, Art. 215, second para.)

2. Non-contractual liability ° Conditions ° Legislative measure involving choices of economic policy ° Sufficiently serious breach of a superior rule of law for the protection of the individual ° Delay in the submission by the Commission of a proposal for a regulation establishing the common organization of the market in bananas ° No liability incurred

(EC Treaty, Arts 38(4), 43(2) and 215, second para.)

3. Common commercial policy ° National protective measures ° Authorization by the Commission ° Conditions

(EC Treaty, Arts 9, 30, 113 and 115)

4. Non-contractual liability ° Conditions ° Unlawfulness ° Omission by the Commission to bring an action against a Member State for failure to fulfil obligations ° Discretion of the Commission excluding liability on the part of the Community

(EC Treaty, Arts 155, 169 and 215, second para.)

5. Actions for damages ° Subject-matter ° Claim for damages against the Community based on the second paragraph of Article 215 of the Treaty ° Jurisdiction of the Community judicature ° Claim for compensation on account of damage caused by the national authorities ° Jurisdiction of national courts

(EC Treaty, Arts 178 and 215, second para.)

6. Community law ° Principles ° Protection of legitimate expectations ° Conditions

7. Agriculture ° Common organization of the markets ° Discrimination between producers or consumers ° Prohibition ° Scope

(EC Treaty, Art. 40(3), second subpara.)

Summary

1. The Community does not incur non-contractual liability on account of damage caused by legislative measures adopted by its institutions unless a sufficiently serious breach of a superior rule of law for the protection of the individual has occurred. In a legislative field which is characterized by the exercise of a wide discretion, such as that required for the implementation of the common agricultural policy, the Community cannot incur liability unless the institution concerned has manifestly and gravely disregarded the limits on the exercise of its powers.

2. The fact that the Commission waited until 1992 before submitting a proposal for a regulation implementing the common organization of the market in the banana sector, despite the fact that this should have been established at the latest by 1 January 1970, does not cause the Community to incur non-contractual liability.

First, having regard to the difficulties encountered in the establishment of a common policy in the banana sector, the Commission cannot be regarded, by delaying the submission of its proposal, as having manifestly and gravely disregarded the limits on the exercise of its powers. Second, Articles 38(4) and 43(2) of the Treaty, which provide for the establishment of a common agricultural policy, merely impose obligations on the institutions, so that they cannot be characterized as superior rules of law for the protection of the individual.

3. Since the derogations allowed under Article 115 of the Treaty constitute not only an exception to the provisions of Articles 9 and 30, which are fundamental to the operation of the common market, but also an obstacle to the implementation of the common commercial policy provided for by Article 113, they must be interpreted and applied strictly.

Where a Member State submits a request under Article 115, the Commission is under a duty to review the reasons put forward in order to justify the protective measures for which authorization is sought, and to verify whether those measures are consistent with the Treaty and necessary. Where the assessment of a complex economic situation is involved, the Commission has a wide discretion, such that judicial review must be confined to verifying that there has been no manifest error or misuse of power and that the bounds of that discretion have not been clearly exceeded.

4. The fact that the Commission does not bring an action against a Member State for failure to fulfil its obligations cannot constitute an infringement of the Treaty, in particular Articles 155 and 169 thereof, since the institution of such proceedings is a matter falling within its discretion. It cannot therefore give rise to non-contractual liability on the part of the Community.

5. The combined provisions of Articles 178 and 215 of the EC Treaty only give jurisdiction to the Community judicature to award compensation for damage caused by the Community institutions or by their servants in the performance of their duties, or, in other words, for damage capable of giving rise to non-contractual liability on the part of the Community. Damage caused by national institutions, on the other hand, can give rise to liability only on the part of those institutions, and the national courts retain sole jurisdiction to order compensation for such damage.

It therefore falls solely to the national courts to rule on an action for damages involving only the conduct of a Member State.

6. The right to rely on the principle of the protection of legitimate expectations extends to any individual who is in a situation in which it is apparent that the Community administration has led him to entertain reasonable expectations. On the other hand, a person may not plead a breach of the principle of the protection of legitimate expectations unless the administration has given him precise assurances.

7. The prohibition of discrimination between producers or consumers in the context of the common agricultural policy, as laid down by the second paragraph of Article 40(3) of the Treaty, is merely a specific enunciation of the general principle of equality, which is one of the fundamental principles of Community law and requires that similar situations should not be treated differently unless differentiation is objectively justified. Consequently, an applicant can usefully plead a breach of that prohibition only in so far as he can point to a situation similar to his own and show that it has been treated differently.