WRITTEN QUESTION E-0766/02

by Antonio Di Pietro (ELDR) to the Commission

(19 March 2002)

Subject: Management of milk quota arrangements in Italy

In its judgment of 13 November 2001 the Court of Justice of the European Union (Sixth Chamber) ordered the Commission to rectify, in favour of France, the negative corrections in respect of supplementary levies for milk, the recovery of which amounts was being disputed in proceedings pending before the competent national courts on the date of the decision.

Over the years Italy has been subject to negative corrections amounting to several million euro. Only a very small proportion of these amounts has so far been paid to producers, because of the enormous legal dispute pending.

Can the Commission therefore say:

- whether the sums deducted will be refunded to Italy in accordance with the precedent established by the Court judgment and whether Italy has requested this refund in the meantime;

- whether Italy has taken all steps to ensure correct application of the milk quota scheme, as stipulated in Community regulations, and whether, in the past, the Commission has ever officially certified that Italy has done everything within its power to ensure correct management of the milk levy system?

Can the Commission also say, in the event that the Italian courts decide in favour of milk producers, who is liable to pay the levy?

Answer given by Mr Fischler on behalf of the Commission

(6 May 2002)

In reply to the first part of the first question, as to whether the sums deducted will be refunded to Italy, the Commission wants to emphasise that the judgement of 13 November 2001 of the European Court of Justice in case C-277/98 does not concern the application of Council Regulation (EEC) No 3950/92, of 28 December 1992, establishing an additional levy in the milk and milk products sector(1). Cases concerning this Regulation are still pending (C-148/01, C-153/01). Furthermore, case C-277/98 concerned corrections made by the Commission in respect of disputed amounts before the national judicial authorities. In the case of Italy, the financial corrections made did not concern disputed amounts subject to judicial review but rather amounts of levy which have not been invoiced and/or collected due to negligence by the Italian authorities. No decision has yet been taken by the Commission with regard to these amounts. The Commission is examining if the Italian authorities have contributed, by their negligence in the application of the milk quota regime, to the prevalence of legal disputes.

The clearance decision taken against Italy with regard to milk years 1995/1996 and 1996/1997, is therefore coherent with the judgement of the Court of 13 November 2001 in case C-277/98, which does not require the Commission to abandon financial corrections for amounts subject to national judicial disputes but, which merely requires that the Commission demonstrate the negligence of the national authorities in the recovery of the levies due.

Prior to this decision there was no financial correction to Italy under Council Regulation (EEC) No 3950/92.

In reply to the second part of the first question, as to whether Italy has requested this refund in the meantime, Italy has appealed the above Commission decision to the Court of Justice and requested its annulment (Case C54/02).

In reply to the second question, as to whether Italy has taken all steps necessary to ensure correct application of the milk quota scheme, the Commission can state that it has opened infringement proceedings against Italy under Article 226 of the EC Treaty with regard to incorrect implementation of the milk quota regime. The proceedings essentially concern the failure to ensure payment of levy due by producers, other than amounts the immediate recovery of which has been suspended by court order. Therefore, in the opinion of the Commission, Italy has not taken adequate measures to implement the milk quota scheme correctly.

In reply to the last question, who is liable to pay the levy in the event that the Italian courts decide in favour of the milk producers, this shall be subject to a decision under Article 7 of Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy(2). It is premature at this stage to prejudge what decision will be taken in the future, while all the facts are not yet at the Commission's disposal.

(1) OJ L 405, 31.12.1992.

(2) OJ L 160, 26.6.1999.