THUS TO SUPPLEMENT THE EXISTING INTERVENTION SYSTEM ; WHEREAS CARE SHOULD THEREFORE BE TAKEN TO ENSURE THAT THE ARRANGEMENTS FOR FINANCING THE COMMON AGRICULTURAL POLICY TAKE ACCOUNT OF THE LEVIES AND EXPENDITURE ENTAILED IN THE SPECIFIC MEASURES . ' '
IT EMERGES FROM THIS THAT THE REGULATION IS INTENDED TO CONTRIBUTE TO THE STABILIZATION OF THE MARKETS IN QUESTION , AND THEREFORE REMAINS WITHIN THE LIMITS LAID DOWN BY ARTICLES 39 AND 40 . CONSEQUENTLY , IN ADOPTING IT THE COUNCIL WAS ENTITLED TO BASE ITSELF ON ARTICLE 43 OF THE TREATY .
6HOWEVER , THE PLAINTIFF IN THE MAIN ACTION DENIES THAT THE ADOPTION OF A CO-RESPONSIBILITY LEVY HAS THE EFFECT OF REDUCING THE PRODUCTION OF MILK AND THUS STABILIZING THE MARKET , SINCE IN HIS SUBMISSION THE CHARGING OF SUCH A LEVY HAS THE EFFECT NOT OF REDUCING PRODUCTION AND SUPPLY BUT ON THE CONTRARY OF ENCOURAGING THEIR GROWTH . THESE ASSERTIONS ARE CHALLENGED BY THE COUNCIL AND THE COMMISSION , WHICH HAVE STATED THAT THE LEVY WILL HAVE THE SAME EFFECT AS A REDUCTION OF PRICES BUT UNLIKE SUCH REDUCTION ALLOWS CERTAIN AREAS OF PRODUCTION REQUIRING SPECIAL PROTECTION TO BE EXCLUDED FROM ITS APPLICATION AND HENCE FROM ITS EFFECTS .
7THIS DIFFERENCE OF OPINION CONCERNS IN PARTICULAR THE EXPEDIENCY AND EFFECTIVENESS OF THE MEASURE ADOPTED IN THE REGULATIONS IN QUESTION . IF A MEASURE IS PATENTLY UNSUITED TO THE OBJECTIVE WHICH THE COMPETENT INSTITUTION SEEKS TO PURSUE THIS MAY AFFECT ITS LEGALITY , BUT ON THE OTHER HAND THE COUNCIL MUST BE RECOGNIZED AS HAVING A DISCRETIONARY POWER IN THIS AREA WHICH CORRESPONDS TO THE POLITICAL RESPONSIBILITIES WHICH ARTICLES 40 AND 43 IMPOSE UPON IT . AS IT IS DIRECTED TOWARDS RESTRAINING PRODUCTION IN THE FACE OF THE SURPLUSES OBSERVED , THE CO-RESPONSIBILITY LEVY CONTRIBUTES TO THE ATTAINMENT OF THE OBJECTIVE OF STABILIZING MARKETS . NOR DOES THE LEVEL OF THE RATE OF LEVY APPEAR TO BE DISPROPORTIONATE IN RELATION TO THE FACTS REFERRED TO BY THE COUNCIL . THEREFORE THE ANSWER SHOULD BE THAT CONSIDERATION OF THE QUESTION HAS DISCLOSED NO FACTOR OF SUCH A KIND AS TO AFFECT THE VALIDITY OF REGULATION NO 1079/77 .
8SINCE REGULATION NO 1822/77 IS UNQUESTIONABLY A MEASURE FOR THE IMPLEMENTATION OF THE SAID REGULATION NO 1079/77 IT FOLLOWS FROM THE FOREGOING THAT THE SAME CONCLUSION MUST APPLY TO IT .
9QUESTION 2 ASKS WHETHER THE CHARGING OF THE CO-RESPONSIBILITY LEVY ON MILK PRODUCERS INFRINGES THE PROHIBITION ON DISCRIMINATION CONTAINED IN ARTICLE 40 ( 3 ) OF THE TREATY IN THAT THE LEVY IS LAID DOWN IN UNITS OF ACCOUNT AND ITS CONVERSION INTO NATIONAL CURRENCIES ACCORDING TO THE SO-CALLED GREEN EXCHANGE RATES - PROVIDED FOR IN COUNCIL REGULATION NO 878/77 OF 26 APRIL 1977 ON THE EXCHANGE RATES TO BE APPLIED IN AGRICULTURE ( OFFICIAL JOURNAL 1977 L 106 , P . 27 ) - CAN LEAD TO UNEQUAL BURDENS IN RELATION TO THE MONETARY SITUATIONS OF THE MEMBER STATES AT ANY GIVEN TIME .
10REGULATION NO 878/77 PROVIDES