COMPETITIVE RELATIONSHIP BETWEEN WINE AND BEER IS CONCERNED, THE COMMISSION MAINTAINS THAT ALL WINES OF FRESH GRAPES MUST BE REGARDED AS COMPETING WITH BEER FOR THE PURPOSES OF THE SECOND PARAGRAPH OF ARTICLE 95 OF THE TREATY . ON THE OTHER HAND, THE BELGIAN GOVERNMENT CONTENDS THAT, IN VIEW OF THE WIDE RANGE OF QUALITIES AND PRICES OF WINES, ONLY LIGHT CHEAP WINES ARE IN A COMPETITIVE RELATIONSHIP WITH BEER .
10 IN ITS JUDGMENTS OF 27 FEBRUARY 1980 AND 12 JULY 1983 ( CASE 170/78 COMMISSION V UNITED KINGDOM (( 1980 )) ECR 417 AND (( 1983 ))
ECR 2265 ), THE COURT HELD THAT WINE AND BEER WERE, TO A CERTAIN EXTENT, CAPABLE OF MEETING IDENTICAL NEEDS, SO THAT IT HAD TO BE ACKNOWLEDGED THAT THERE WAS A DEGREE OF SUBSTITUTION FOR ONE ANOTHER . THE COURT MADE IT CLEAR IN THOSE JUDGMENTS THAT IN VIEW OF THE SUBSTANTIAL DIFFERENCES IN THE QUALITY AND, THEREFORE, IN THE PRICE OF WINES, THE DECISIVE COMPETITIVE RELATIONSHIP BETWEEN BEER, A POPULAR AND WIDELY CONSUMED BEVERAGE, AND WINE MUST BE ESTABLISHED BY REFERENCE TO THOSE WINES WHICH ARE THE MOST ACCESSIBLE TO THE PUBLIC AT LARGE, THAT IS TO SAY, GENERALLY SPEAKING, THE LIGHTEST AND CHEAPEST VARIETIES, AND THAT THAT IS ACCORDINGLY THE APPROPRIATE BASIS FOR MAKING FISCAL COMPARISONS .
11 THOSE CONSIDERATIONS ARE ALSO APPLICABLE IN THIS CASE, SINCE NOTHING IN THE DOCUMENTS BEFORE THE COURT INDICATES ANY FEATURE SPECIFIC TO THE BELGIAN MARKET WHICH MIGHT JUSTIFY A DIFFERENT APPROACH . CONSEQUENTLY, ONLY COMMONLY CONSUMED WINES, WHICH IN GENERAL ARE CHEAP WINES, HAVE ENOUGH CHARACTERISTICS IN COMMON WITH BEER TO CONSTITUTE AN ALTERNATIVE CHOICE FOR CONSUMERS AND MAY THEREFORE BE REGARDED AS BEING IN COMPETITION WITH BEER FOR THE PURPOSES OF THE SECOND PARAGRAPH OF ARTICLE 95 OF THE TREATY .
THE PROTECTIVE NATURE OF THE TAX SYSTEM
12 WITH REGARD TO THE QUESTION WHETHER OR NOT THE TAX SYSTEM AT ISSUE IS PROTECTIVE IN NATURE, THE COMMISSION AND THE FRENCH GOVERNMENT TAKE THE VIEW THAT ONCE A COMPETITIVE RELATIONSHIP IS ESTABLISHED BETWEEN TWO PRODUCTS ANY DIFFERENCE IN THE RATES OF TAX APPLIED TO THE SAME BASIS OF ASSESSMENT, IN THIS CASE THE VALUE, IS CONTRARY TO THE SECOND PARAGRAPH OF ARTICLE 95 OF THE TREATY, AND IT IS NOT NECESSARY ALSO TO TAKE INTO ACCOUNT THE IMPACT OF THAT DIFFERENCE OF RATES ON THE RETAIL PRICE AND HENCE ON CONSUMER PREFERENCE .
13 ACCORDING TO THE BELGIAN GOVERNMENT, ON THE OTHER HAND, IF THE SECOND PARAGRAPH OF ARTICLE 95 IS TO APPLY IT IS ALSO NECESSARY, BY CONTRAST WITH THE POSITION UNDER THE FIRST PARAGRAPH, FOR A FURTHER CONDITION TO BE SATISFIED, NAMELY THAT THE DISCREPANCY IN THE TAX BURDEN MUST BE LIABLE TO HAVE A PROTECTIVE EFFECT FAVOURING DOMESTIC PRODUCTS . IT IS THEREFORE NECESSARY TO CONSIDER THE POSSIBLE ECONOMIC EFFECTS OF THE TAX IN QUESTION .
14 IN ITS JUDGMENT OF 27 FEBRUARY 1980 ( CASE 168/78 COMMISSION V FRANCE (( 1980 )) ECR 347 ) THE COURT