GENERAL CONTEXT OF REGULATION NO 389/82 AND THE OBJECTIVES WHICH THAT REGULATION SEEKS TO ATTAIN .
8 UNDER ARTICLES 2 AND 3 OF THE REGULATION, THE MEMBER STATES ARE TO RECOGNIZE PRODUCER GROUPS AND ASSOCIATIONS THEREOF WHICH FULFIL CERTAIN LEGAL AND ECONOMIC CONDITIONS LAID DOWN IN THE REGULATION AND ARE TO MAKE THEIR DECISIONS ON RECOGNITION KNOWN TO THE COMMISSION .
9 PURSUANT TO ARTICLES 6 TO 8, THE MEMBER STATES ARE TO DRAW UP PROGRAMMES FOR THE DEVELOPMENT AND RATIONALIZATION OF COTTON PRODUCTION AND MARKETING COVERING ALL OR PART OF THEIR TERRITORY . IT IS FOR THE COMMISSION, TO WHICH THE PROGRAMMES ARE TO BE FORWARDED, TO TAKE A DECISION AS TO THEIR APPROVAL, WHICH IS AN ESSENTIAL CONDITION FOR THE PAYMENT OF SUBSIDIES BY THE GUIDANCE SECTION OF THE EAGGF .
10 ARTICLE 5 PROVIDES THAT IN ORDER TO CONTRIBUTE TOWARDS STRUCTURAL IMPROVEMENTS AT THE LEVEL OF SUPPLY AND MARKETING AND TOWARDS THE STANDARDIZATION AND IMPROVEMENT OF QUALITY, MEMBER STATES ARE TO GRANT TO RECOGNIZED PRODUCER GROUPS AND ASSOCIATIONS THEREOF CONSTITUTED ON THE BASIS OF ARTICLE 2, AID FOR INVESTMENTS WHICH, AMONG OTHER CONDITIONS, ARE INCLUDED IN PROGRAMMES APPROVED BY THE COMMISSION .
11 IT FOLLOWS FROM AN ANALYSIS OF THOSE PROVISIONS THAT ONCE AN INVESTMENT TO BE MADE BY A PRODUCER GROUP RECOGNIZED UNDER ARTICLE 2 IS INCLUDED IN A NATIONAL PROGRAMME APPROVED BY THE COMMISSION, THE MEMBER STATE HAS NO DISCRETION TO REFUSE TO GRANT AID FOR THAT INVESTMENT .
12 THE REPLY TO THE FIRST QUESTION MUST THEREFORE BE THAT ARTICLE 5 OF REGULATION NO 389/82 MUST BE INTERPRETED AS MEANING THAT THE MEMBER STATES ARE OBLIGED TO GRANT AID TO PRODUCER GROUPS RECOGNIZED UNDER ARTICLE 2 IN RESPECT OF INVESTMENTS INCLUDED IN NATIONAL PROGRAMMES FOR THE DEVELOPMENT AND RATIONALIZATION OF PRODUCTION AND MARKETING APPROVED BY THE COMMISSION .
13 IN ORDER TO REPLY TO THE SECOND QUESTION IT MUST BE OBSERVED THAT THE REGULATION, ACCORDING TO ARTICLE 1, APPLIES TO ANY PRODUCER GROUP, THAT IS TO SAY ANY ORGANIZATION OF PRODUCERS OF COTTON, NOT CARDED OR COMBED, REGARDLESS OF ITS LEGAL FORM .
14 ARTICLE 2 PROVIDES THAT IN ORDER TO BE RECOGNIZED PRODUCER GROUPS MUST FULFIL CERTAIN LEGAL CONDITIONS, BUT IT CONTAINS NO REQUIREMENT AS TO THEIR LEGAL FORM .
15 CONSEQUENTLY, A MEMBER STATE CANNOT REFUSE TO GRANT AID TO A RECOGNIZED PRODUCER GROUP FOR INVESTMENTS INCLUDED IN A PROGRAMME APPROVED BY THE COMMISSION ON THE GROUND THAT THE GROUP IS NOT CONSTITUTED IN A PARTICULAR LEGAL FORM .
16 NOT ONLY DOES SUCH A DIFFERENCE OF TREATMENT HAVE NO BASIS IN THE REGULATION BUT, AS THE COURT HELD IN ITS JUDGMENT OF 18 DECEMBER 1986 IN CASE 312/85 VILLA BANFI V REGIONE TOSCANA AND OTHERS (( 1986 )) ECR 4039, IT WOULD CONFLICT WITH THE PROHIBITION OF DISCRIMINATION LAID DOWN IN ARTICLE 40 ( 3 ) OF THE EEC TREATY, WHICH THE MEMBER STATES MUST OBSERVE WHEN GIVING EFFECT TO THE CCOMMON AGRICULTURAL POLICY .
17 THE REPLY TO THE SECOND