AND SUPPLY TO THE REQUIREMENTS OF THE MARKET BY MEANS OF COMMON MEASURES . IN ITALIAN AGRICULTURE , COOPERATION IS THE FIRST STAGE OF ASSOCIATION ENABLING MARKETING CHANNELS TO BE SHORTENED BY THE CONCENTRATION OF SUPPLY AND THE COMMON USE OF PROCESSING PLANT . FAR FROM INTERFERING WITH THE OPERATION OF PRODUCER GROUPS , THE FORMATION OF COOPERATIVES SERVES THE SAME PURPOSE AND IT CAN THUS ALLEVIATE THE STRUCTURAL DEFICIENCIES THAT ARE GRADUALLY TO BE MADE GOOD BY THE COMMUNITY REGULATION .
15 THE COURT ACCEPTS THAT ARGUMENT OF THE ITALIAN GOVERNMENT . THE PROVISION AT ISSUE DOES NOT CONTAIN , AS THE COMMISSION CONTENDS , AN OBLIGATION TO PROMOTE THE FORMATION OF COOPERATIVE UNDERTAKINGS ALONE ; IT LEAVES PRODUCER GROUPS FREE TO DECIDE WHETHER TO PROMOTE THE FORMATION OF SUCH UNDERTAKINGS OR TO PROMOTE THE FORMATION OF OTHER ' FORMS OF ASSOCIATION ' CAPABLE OF MANAGING COLLECTIVE PROCESSING AND MARKETING PLANT . IT IS DIFFICULT TO SEE HOW THE PROMOTION IN ONE FORM OR ANOTHER OF SUCH COOPERATIVE OR COLLECTIVE ACTIVITIES MIGHT BE CONTRARY TO REGULATION NO 1360/78 THE AIM OF WHICH , ACCORDING TO THE SIXTH RECITAL OF ITS PREAMBLE , IS PRECISELY TO ENCOURAGE THE ' GROUPING ( OF ) FARMERS SO THAT THE ECONOMIC PROCESS CAN BE INFLUENCED BY COMMON MEASURES ' .
16 ON THIS POINT , THEREFORE , THE APPLICATION FAILS .
17 WITH REGARD TO THE WITHDRAWAL OF RECOGNITION FROM PRODUCER GROUPS , THE COMMISSION SUBMITS THAT ARTICLES 4 AND 5 OF LAW NO 674 REQUIRE THE REGIONS TO PROVIDE FOR THIS IF A PRODUCER GROUP SERIOUSLY AND REPEATEDLY INFRINGES THE COMMUNITY OR NATIONAL RULES .
18 IN ITS APPLICATION , THE COMMISSION CONCEDES THAT A MEMBER STATE MAY REQUIRE RECOGNITION TO BE WITHDRAWN IF A PRODUCER GROUP INFRINGES GENERAL NATIONAL RULES APPLYING TO ALL LEGAL PERSONS AND UNRELATED TO THE REQUIREMENTS OR OBLIGATIONS SPECIFICALLY IMPOSED ON AGRICULTURAL PRODUCER GROUPS . IT ARGUES , HOWEVER , THAT IT IS NOT PERMISSIBLE FOR RECOGNITION TO BE WITHDRAWN FROM A PRODUCER GROUP IF IT SATISFIES ALL THE CONDITIONS LAID DOWN IN THE COMMUNITY PROVISIONS BUT DOES NOT COMPLY WITH THE ADDITIONAL OBLIGATIONS IMPOSED BY LAW NO 674 .
19 THIS PART OF THE APPLICATION THEREFORE OVERLAPS WITH THE PART RELATING TO THE GRANT OF RECOGNITION TO PRODUCER GROUPS .
20 IT MUST THEREFORE BE CONCLUDED THAT THE ITALIAN REPUBLIC HAS NOT IMPLEMENTED REGULATION NO 1360/78 CORRECTLY BY INCLUDING AMONG THE CONDITIONS FOR GRANTING AND WITHDRAWING RECOGNITION OF PRODUCER GROUPS THE CONDITION THAT SUCH GROUPS MUST CONDUCT THEIR COMMERCIAL ACTIVITIES AS REPRESENTATIVES OF THEIR MEMBERS .
( B ) THE PROVISIONS OF THE REGIONAL LAWS
21 THE COMMISSION ARGUES THAT THE IMPLEMENTING REGIONAL LEGISLATION CONTAINS PROVISIONS MERELY REPEATING COMMUNITY RULES AS WELL AS PROVISIONS RELATING TO MATTERS IN WHICH THE COMMUNITY INSTITUTIONS NOW HAVE EXCLUSIVE COMPETENCE .
22 AS AN EXAMPLE THE COMMISSION REFERS TO ARTICLE 12 OF THE REGIONAL LAW OF PIEDMONT ( BOLLETTINO UFFICIALE DELLA REGIONE NO 18 OF 30 APRIL 1980 ), WHICH