IN THE COMMUNITY , SO AS TO DIMINISH THE EFFECT ON THEM OF A REDUCTION IN THE THRESHOLD PRICE .
30 THE COUNCIL AND THE COMMISSION , SUPPORTED BY THE ITALIAN GOVERNMENT , EMPHASIZE IN GENERAL THE WIDE DISCRETIONARY POWERS VESTED IN THE COMMUNITY INSTITUTIONS IN THE MATTER OF AGRICULTURAL POLICY AND ADAPTATION OF THAT POLICY TO THE CIRCUMSTANCES , IN THE LIGHT OF ALL THE GUIDELINES LAID DOWN IN ARTICLE 39 OF THE TREATY .
31 IN RESPONSE TO THE FIRST SUBMISSION MADE BY THE APPLICANTS , THE DEFENDANT INSTITUTIONS EMPHASIZE THAT THERE IS A FUNDAMENTAL DIFFERENCE BETWEEN THE WORLD MARKET AND THE COMMUNITY MARKET , IN SO FAR AS THE WORLD MARKET IS GOVERNED BY THE UNRESTRICTED INTERACTION OF SUPPLY AND DEMAND , WHEREAS THE COMMUNITY MARKET HAS A COMMON ORGANIZATION WHICH IS INTENDED TO MAINTAIN PRICE LEVELS IN CONFORMITY WITH THE POLICY OBJECTIVES LAID DOWN BY THE COMMUNITY INSTITUTIONS WITHIN THE FRAMEWORK OF THE TREATY . IN THIS CASE , IT IS APPROPRIATE TO HAVE REGARD TO THE FACT THAT THE COMMUNITY MARKET HAS CHRONIC OVER-PRODUCTION OF COMMON WHEAT AND THAT THERE IS A SHORTFALL OF DURUM WHEAT . THE POLICY FOLLOWED BY THE INSTITUTIONS CONSISTS THEREFORE IN FAVOURING DEVELOPMENT OF DURUM WHEAT PRODUCTION , BY AN APPROPRIATE PRICE POLICY , WHILST MAINTAINING THE PRODUCTION OF COMMON WHEAT TO A REASONABLE EXTENT .
32 AS REGARDS THE COMPLAINTS OF DISCRIMINATION AND INFRINGEMENT OF THE RULES RELATING TO THE FIXING OF AGRICULTURAL PRICES , LAID DOWN IN THE SECOND AND THIRD SUBPARAGRAPHS OF ARTICLE 40 ( 3 ), THE DEFENDANT INSTITUTIONS DRAW ATTENTION TO THE FACT THAT THE FIXING OF CEREAL PRICES TAKES PLACE WITHIN THE CONTEXT OF FREE CIRCULATION BOTH OF RAW MATERIALS AND OF SECONDARY PRODUCTS AND THAT THEREFORE , FROM THE COMMUNITY POINT OF VIEW , THERE IS NOTHING TO PREVENT GERMAN PRODUCERS FROM OBTAINING SUPPLIES IN OTHER MEMBER STATES OF THE COMMUNITY . THEY DRAW ATTENTION TO THE FACT THAT NEITHER THE FRENCH MARKET NOR THE ITALIAN MARKET IS SELF-SUFFICIENT AND THAT PRODUCERS IN THOSE STATES MUST ALSO , TO A CONSIDERABLE EXTENT , USE DURUM WHEAT IMPORTED FROM NON-MEMBER COUNTRIES , A CIRCUMSTANCE WHICH HAS GIVEN RISE TO A TENDENCY IN THE PRODUCING STATES FOR THE PRICES OF THE INDIGENOUS PRODUCT TO MOVE TOWARDS THE THRESHOLD PRICE AND NOT , AS ASSERTED BY THE APPLICANTS , TOWARDS THE INTERVENTIONS PRICE .
33 AS REGARDS THE ALLEGED BREACH OF THE PRINCIPLE OF PROPORTIONALITY , THE INSTITUTIONS DRAW ATTENTION TO THE FACT THAT THE OPTIONS PROPOSED BY THE APPLICANTS ARE IMPRACTICABLE ; REGIONALIZATION OF THRESHOLD PRICES WOULD BE IN DIRECT CONFLICT WITH UNITY OF THE COMMON MARKET , WHEREAS EXTENSION OF THE AIDS SYSTEM WOULD IMPOSE NEW AND INTOLERABLE BURDENS UPON THE COMMUNITY BUDGET .
34 FINALLY , THE DEFENDANT INSTITUTIONS EMPHASIZE THAT THE LEGAL RULES RELIED UPON BY THE APPLICANTS ARE NOT IN ANY CASE CLASSIFIABLE AS ' ' SUPERIOR RULES OF LAW FOR THE PROTECTION OF THE INDIVIDUAL ' ' , A CONDITION