BY THE COMMUNITY INSTITUTIONS TO BE APPROPRIATE TO ACHIEVE THE INTENDED OBJECTIVE AND NOT TO EXCEED THE LIMITS OF WHAT IS NECESSARY TO THAT END .
22 IT FOLLOWS FROM THE THIRD RECITAL IN THE PREAMBLE TO REGULATION NO 1698/70 THAT ARTICLE 2 ( 1 ) IS INTENDED TO ACHIEVE TWO OBJECTIVES : TO ENSURE THE QUALITY OF QUALITY WINES PSR WHICH , BY DEFINITION , MUST AS A GENERAL RULE BE PRODUCED IN THE REGION WHERE THE GRAPES WERE HARVESTED AND TO AVOID THE RISK OF FRAUD INVOLVED IN THE PRACTICE OF PRODUCING WINE OUTSIDE THE SPECIFIED REGION WHICH IS AUTHORIZED IN EXCEPTIONAL CASES . THE RESTRICTION OF THAT PRACTICE SOLELY TO AREAS IN THE IMMEDIATE PROXIMITY OF THE SPECIFIED REGION IS THEREFORE APPROPRIATE TO ACCOMPLISH THAT AIM .
23 MOREOVER , IN CONSIDERING THAT RESTRICTION TO BE NECESSARY TO ACHIEVE THE SAID AIM , THE COMMISSION HAS NOT EXCEEDED THE DISCRETION GIVEN TO IT BY THE ENABLING PROVISION IN QUESTION . THE FREEDOM TO PRODUCE WINE IRRESPECTIVE OF THE PLACE WHERE THE GRAPES WERE HARVESTED , EVEN WHERE IT IS A LONG DISTANCE AWAY , MIGHT JEOPARDIZE THE EFFECTIVENESS OF THE POLICY OF QUALITY AND ENGENDER CONFUSION AMONGST CONSUMERS WHO NORMALLY EXPECT QUALITY WINE PSR TO BE PRODUCED IN THE SPECIFIED REGION WHERE THE GRAPES WERE HARVESTED AS INDICATED IN ITS APPELLATION . IN ADDITION , IT IS OBVIOUS THAT EFFECTIVE SUPERVISION IS JEOPARDIZED INASMUCH AS IT HAS TO COVER A LARGER GEOGRAPHICAL AREA .
24 CONSEQUENTLY , THE GERMAN GOVERNMENT ' S SECOND SUBMISSION MUST ALSO BE REJECTED .
THIRD SUBMISSION : INFRINGEMENT OF FUNDAMENTAL RIGHTS
25 THE GERMAN GOVERNMENT MAINTAINS THAT THE UNDERTAKINGS AFFECTED BY THE PROHIBITION OF WINE-MAKING ARE THEREBY FORCED TO CEASE BUSINESS SINCE THEIR PLANT CANNOT , FROM AN ECONOMIC POINT OF VIEW , BE CONVERTED OR SOLD ON SUITABLE TERMS . EVEN IF SOME UNDERTAKINGS ARE ABLE TO SURVIVE , THE PROHIBITION CONSTITUTES A SERIOUS INFRINGEMENT OF THE RIGHT TO PROPERTY WHICH IS NOT JUSTIFIED IN THE GENERAL COMMUNITY INTEREST . THE GERMAN GOVERNMENT CONTENDS THAT THE SOLE EFFECT OF THE VARIOUS SOLUTIONS WHICH THE COMMISSION CLAIMS IT PUT FORWARD IN ORDER TO RESOLVE THE PROBLEMS FACING THE UNDERTAKINGS CONCERNED IS TO GIVE THEM A PERIOD OF GRACE BEFORE THEIR BUSINESS CEASES . THE GERMAN GOVERNMENT DOES NOT REGARD THAT AS A SOLUTION . WINE PRODUCTION IS THE DISTINCTIVE AND TRADITIONAL ACTIVITY OF THE MAJORITY OF THE UNDERTAKINGS CONCERNED . EVEN IN THE CASE OF THOSE UNDERTAKINGS WITH A DIVERSIFIED BUSINESS THE CHANGE WOULD INVOLVE EXPENSES AND INVESTMENT COSTS WHICH ARE INTOLERABLE AND NOT OBJECTIVELY JUSTIFIABLE . CONSEQUENTLY , THE MEASURE IN QUESTION CONSTITUTES A SERIOUS ENCROACHMENT ON THE RIGHT TO PROPERTY AND THE FREEDOM TO CHOOSE A TRADE OR A PROFESSION ; IT IS NOT JUSTIFIED IN THE GENERAL COMMUNITY INTEREST .
26 THE COMMISSION CONSIDERS THAT THE MEASURE IN QUESTION CONSTITUTES A LAWFUL RESTRICTION ON THE EXERCISE OF FUNDAMENTAL RIGHTS WHICH IS JUSTIFIED BY THE FACT THAT IT WAS ADOPTED