ADOPTION OF REGULATION NO 800/77 .
14IN FACT , HOWEVER , THE APPLICATION RELATES ONLY TO THE LEGAL SITUATION EXISTING AS FROM 1 JANUARY 1978 BY VIRTUE OF THE PROVISIONS OF REGULATION NO 2657/77 WHICH PROLONGED REGULATION 800/77 FOR AN INDEFINITE PERIOD .
15THEREFORE THIS HEAD OF CLAIM IS ADMISSIBLE .
THE SUBMISSION RELATING TO REGULATION NO 2657/77
16THE ITALIAN GOVERNMENT SUBMITS THAT BY THE SECOND SUBPARAGRAPH OF ARTICLE 2 ( 2 ) OF REGULATION NO 800/77 THE COMMISSION INTENDED TO LIMIT ITS OWN DISCRETIONARY POWER ITSELF , THAT IS TO SAY LIMIT THE EXERCISE OF THAT POWER TO THE PERIOD ENDING ON 31 DECEMBER 1977 WITHOUT THE POSSIBILITY OF ANY PROLONGATION .
17IT ARGUES THAT CONSEQUENTLY , WHEN THE SITUATION HAS NOT GREATLY CHANGED AND THE COMMISSION DECIDES THAT THE COMPENSATORY AMOUNTS ARE TO BE APPLIED FOR AN INDEFINITE PERIOD , IT IS GUILTY OF MISUSE OF POWERS .
18THE ITALIAN GOVERNMENT SUBMITS THAT THERE IS ALSO A BREACH OF THE PRINCIPLE OF LEGITIMATE EXPECTATIONS INASMUCH AS THE FIXING OF THE PERIOD LAID DOWN IN REGULATION NO 800/77 WAS SO IMPERATIVE THAT IT WAS TO BE EXPECTED THAT THE COMPENSATORY AMOUNTS WOULD ' ' NOT APPLY BEYOND 31 DECEMBER 1977 ' ' .
19IT SUBMITS THAT THE FACT THAT REGULATION NO 2657/77 ENTERED INTO FORCE A MONTH BEFORE THAT PERIOD EXPIRED IS NOT SUFFICIENT TO PROTECT LEGITIMATE EXPECTATIONS SINCE IT HAD BEEN DECLARED THAT THE PERIOD COULD NOT BE PROLONGED , THE TERMS OF REGULATION NO 800/77 PROVIDING THAT ' ' MONETARY COMPENSATORY AMOUNTS SHALL NOT APPLY BEYOND 31 DECEMBER 1977 ' ' .
20THE COMMISSION REPLIES THAT AT THE END OF NOVEMBER 1977 IT HAD TO CONSIDER ONLY WHETHER THE CONDITIONS LAID DOWN IN REGULATION NO 974/71 WERE FULFILLED , THAT IS WHETHER THE CONDITIONS WHICH HAD REQUIRED THE COMPENSATORY AMOUNTS TO BE APPLIED STILL PREVAILED .
21IF SUCH WAS THE CASE , THE VALIDITY OF REGULATION NO 2657/77 CANNOT BE CALLED IN QUESTION .
22THE COMMISSION SUBMITS THAT IT WAS NOT IN FACT FACED WITH THE ALTERNATIVE DESCRIBED BY THE ITALIAN GOVERNMENT , AS THE APPOINTMENT OF A TIME-LIMIT MERELY MEANT THAT THE AMOUNTS COULD NOT CONTINUE TO BE APPLIED WITHOUT BEING THE SUBJECT OF A NEW REGULATION .
23THE COMMISSION SUBMITS THAT THE PURPOSE OF THE COMMUNITY PROVISIONS IN FORCE IN THE AGRI-MONETARY SECTOR AND THE RECITALS IN THE PREAMBLE TO THE REGULATION AT ISSUE SHOULD LEAD THOSE CONCERNED TO THE CONCLUSION THAT THE MEASURES TO BE TAKEN AT THE END OF THE YEAR - CONTINUATION , ABOLITION OR ALTERATION OF THE SYSTEM PROVIDED FOR IN REGULATION NO 800/77 - WOULD NECESSARILY BE DEPENDENT UPON THE SITUATION OF THE MONEY MARKETS AT THE RELEVANT TIME .
24EVEN IF ARTICLE 2 ( 2 ) OF REGULATION NO 800/77 HAD THE MEANING WHICH THE ITALIAN GOVERNMENT ATTRIBUTES TO IT , IT COULD NOT RELIEVE THE COMMISSION FROM ITS OBLIGATION TO REVIEW THE SITUATION BY THE END OF THE YEAR .
25THE SIXTH RECITAL IN THE PREAMBLE TO REGULATION