Judgment of the Court of 13 May 2003 in Case C-463/00: Commission of the European Communities v Kingdom of Spain (Failure by a Member State to fulfil its obligations — Articles 43 EC and 56 EC — System of administrative approval relating to privatised undertakings)
Date: 2003-07-05
Institutions: Court of Justice
Subjects: European Commission, Spain, action for failure to fulfil an obligation, privatisation, public sector

5.7.2003

EN

Official Journal of the European Union

C 158/3

JUDGMENT OF THE COURT

(Fifth Chamber)

of 15 May 2003

in Case C-282/00 (Reference for a preliminary ruling from
the Tribunal Judicial da Comarca de Ponta Delgada):
Refinarias de Açúcar Reunidas SA (RAR) v Sociedade de
Indústrias Agricolas Açoreanas SA (Sinaga) (1)

(Sugar — Decision 91/315/EEC — Poseima Programme —
Specific measures in favour of the Azores and Madeira —
Regulation (EEC) No 1600/92 — Shipment to the rest of the
Community of white sugar produced in the Azores from
sugarbeet harvested there or from raw beet sugar imported
exempt from levies and/or customs duties — Meaning of
‘processing of products’ — Meaning of ‘traditional shipment
to the rest of the Community’)

3.

4.

Community law does not preclude the shipment to mainland
Portugal of white sugar produced in the Azores from sugarbeet
harvested in the Azores and which receives the Community aid
provided for in Article 25 of Regulation No 1600/92 up to a
limit of 10 000 tonnes of production per year.

Community law does not preclude the shipment to mainland
Portugal of white sugar produced in the Azores from raw beet
sugar imported under the specific supply arrangements provided
for under Title I of Regulation No 1600/92, provided that it
corresponds to traditional shipments within the meaning of the
second paragraph of Article 8 of that regulation.

(1) OJ C 247 of 26.8.2000.

(2003/C 158/03)

JUDGMENT OF THE COURT

(Language of the case: Portuguese)

of 13 May 2003

(Provisional translation; the definitive translation will be published
in the European Court Reports)

in Case C-463/00: Commission of the European Communi-
ties v Kingdom of Spain (1)

In Case C-282/00: Reference to the Court under Article 234
EC by the Tribunal Judicial da Comarca de Ponta Delgada
(Portugal) for a preliminary ruling in the proceedings pending
before that court between Refinarias de Açúcar Reunidas SA
(RAR) and Sociedade de Indústrias Agricolas Açoreanas SA
(Sinaga), on the interpretation of Council Regulation (EEC)
No 1600/92 of 15 June 1992 concerning specific measures
for the Azores and Madeira relating to certain agricultural
products (OJ 1992 L 173, p. 1), the Court (Fifth Chamber),
composed of: M. Wathelet, President of
the Chamber,
C.W.A. Timmermans, D.A.O. Edward, P. Jann and S. von Bahr
(Rapporteur), Judges; J. Mischo, Advocate General; H.A. Rühl,
Principal Administrator, for the Registrar, has given a judgment
on 15 May 2003, in which it has ruled:

1.

2.

The refining of raw beet sugar into white sugar must be
considered to be the processing of a product within the meaning
of the second paragraph of Article 8 of Council Regulation
(EEC) No 1600/92 of 15 June 1992 concerning specific
measures for the Azores and Madeira relating to certain
agricultural products.

Shipments which, at
the entry into force of
the time of
Regulation No 1600/92 on 1 July 1992, were ongoing,
regular and significant are traditional shipments to the rest of
the Community within the meaning of the second paragraph of
Article 8 of Regulation No 1600/92. It is for the referring
court to assess whether that was the case for the shipments of
sugar from the Azores to mainland Portugal and to Madeira
between 1907 and 1992 referred to in the table set out in the
order for reference.

(Failure by a Member State to fulfil
its obligations —
Articles 43 EC and 56 EC — System of administrative
approval relating to privatised undertakings)

(2003/C 158/04)

(Language of the case: Spanish)

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-463/00, Commission of the European Communities
(Agents: M. Patakia and M. Desantes, and, subsequently,
M. Patakia and G. Valero Jordana) v Kingdom of Spain (Agent:
N. Díaz Abad), supported by United Kingdom of Great Britain
and Northern Ireland (Agent: R. Magrill, assisted by D. Wyatt,
QC, and J. Crow, barrister): Application for a declaration that
the provisions of Article 2 and Article 3(1) and (2), together
with Article 1, of Ley 5/1995 de régimen jurídico de enajena-
ción de participaciones públicas en determinadas empresas
(Law 5/1995 of 23 March 1995 on the legal arrangements for
disposal of public shareholdings in certain undertakings (BOE
No 72 of 25 March 1995, p. 9366) and the implementing
royal decrees enacted under Article 4 of Law 5/1995 (Royal
Decree No 3/1996 of 15 January 1996 concerning Repsol SA
(BOE No 14 of 16 January 1996, p. 1133), Royal Decree No 8/
1997 of 10 January 1997 concerning Telefónica de España SA
and Telefónica Servicios Móviles SA (BOE No 10 of 11 January
1997, p. 907), Royal Decree No 40/1998 of 16 January 1998

C 158/4

EN

Official Journal of the European Union

5.7.2003

concerning Corporación Bancaria de España SA (Argentaria)
(BOE No 15 of 17 January 1998, p. 1851), Royal Decree
No 552/1998 of 2 April 1998 concerning Tabacalera SA (BOE
No 80 of 3 April 1998, p. 11370), and Royal Decree No 929/
1998 of 14 May 1998 concerning Endesa SA (BOE No 129 of
30 May 1998, p. 17939), in so far as they implement a system
of prior administrative approval

— which is not justified by any overriding requirements of

the general interest,

— which does not lay down objective and stable criteria

which have been made public, and

— which does not comply with the principle of pro-

portionality,

are incompatible with Article 43 EC and Article 56 EC, the
Court, composed of: G.C. Rodríguez Iglesias, President, J.-
P. Puissochet, M. Wathelet and R. Schintgen (Presidents of
Chambers), C. Gulmann, D.A.O. Edward, A. La Pergola, P. Jann
(Rapporteur), V. Skouris, F. Macken, N. Colneric, S. von Bahr
and A. Rosas,
Judges; D. Ruiz-Jarabo Colomer, Advocate
General; L. Hewlett, Principal Administrator, for the Registrar,
has given a judgment on 13 May 2003, in which it:

1. Declares that, by maintaining in force the provisions of Article 2
and Article 3(1) and (2) of Ley 5/1995 de régimen jurídico
de enajenación de participaciones públicas en determinadas
empresas (Law 5/1995 on the legal arrangements for disposal
of public shareholdings in certain undertakings) of 23 March
1995, as well as Royal Decree No 3/1996 of 15 January
1996 concerning Repsol SA, Royal Decree No 8/1997 of
10 January 1997 concerning Telefónica de España SA and
Telefónica Servicios Móviles SA, Royal Decree No 40/1998 of
16 January 1998 concerning Corporación Bancaria de España
SA (Argentaria), Royal Decree No 552/1998 of 2 April
1998 concerning Tabacalera SA, and Royal Decree No 929/
1998 of 14 May 1998 concerning Endesa SA, in so far as
they implement a system of prior administrative approval, the
Kingdom of Spain has failed to fulfil its obligations under
Article 56 EC;

2. Orders the Kingdom of Spain to pay the costs;

3. Orders the United Kingdom of Great Britain and Northern

Ireland to bear its own costs.

JUDGMENT OF THE COURT

of 13 May 2003

in Case C-98/01: Commission of the European Communi-
ties v United Kingdom of Great Britain and Northern
Ireland (1)

its obligations —
(Failure by a Member State to fulfil
Articles 43 EC and 56 EC — Rights attaching to the United
Kingdom’s Special Share in BAA plc)

(2003/C 158/05)

(Language of the case: English)

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-98/01, Commission of the European Communities
(Agents: F. Benyon and M. Patakia) v United Kingdom of Great
Britain and Northern Ireland (Agents: R. Magrill, assisted by
D. Wyatt, QC, and J. Crow, barrister): Application for a
declaration that the provisions limiting the possibility of
acquiring voting shares in BAA plc as well as the procedure
requiring consent to the disposal of the company’s assets, to
control of its subsidiaries and to winding-up are incompatible
with Articles 43 EC and 56 EC, the Court, composed of:
G.C. Rodríguez Iglesias, President, J.-P. Puissochet, M. Wathelet
and R. Schintgen (Presidents of Chambers), C. Gulmann,
D.A.O. Edward, A. La Pergola, P. Jann (Rapporteur), V. Skouris,
F. Macken, N. Colneric, S. von Bahr and A. Rosas, Judges;
D. Ruiz-Jarabo Colomer, Advocate General; H. von Holstein,
Deputy Registrar, has given a judgment on 13 May 2003, in
which it:

1. Declares that, by maintaining in force the provisions limiting
the possibility of acquiring voting shares in BAA plc as well as
the procedure requiring consent to the disposal of the company’s
assets, to control of its subsidiaries and to winding-up, the
United Kingdom of Great Britain and Northern Ireland has
failed to fulfil its obligations under Article 56 EC;

2. Orders the United Kingdom of Great Britain and Northern

Ireland to pay the costs.

( 1) OJ C 61 of 24.2.2001.

(1) OJ C 134 of 5.5.2001.