MAINTAINED, WITHOUT BEING CONTRADICTED BY THE APPLICANT, THAT PURIFICATION OF GRANIDON LEADS TO WHEAT STARCH WHICH QUALIFIES FOR REFUNDS UNDER THE RULES IN FORCE . FINALLY IT IS ALSO COMMON GROUND THAT PRODUCTION REFUNDS FOR ALL FOOD USES OF STARCH PRODUCTS WERE ABOLISHED IN 1986 SUBJECT TO A TRANSITIONAL PERIOD OF THREE YEARS .
6 REFERENCE IS MADE TO THE REPORT FOR THE HEARING FOR A FULLER ACCOUNT OF THE FACTS OF THE CASE, THE PROCEDURE AND THE SUBMISSIONS AND ARGUMENTS OF THE PARTIES, WHICH ARE MENTIONED OR DISCUSSED HEREINAFTER ONLY IN SO FAR AS IS NECESSARY FOR THE REASONING OF THE COURT .
CONDITIONS FOR THE INCURRING OF THE COMMUNITY' S NON-CONTRACTUAL LIABILITY
7 THE COURT HAS CONSISTENTLY HELD ( JUDGMENTS OF 2 JULY 1974 IN CASE 153/73 HOLTZ & WILLEMSEN V COUNCIL AND COMMISSION (( 1974 )) ECR 675, AND JUDGMENT OF 4 MARCH 1980 IN CASE 49/79 POOL V COUNCIL (( 1980 )) ECR 569 ) THAT THE LIABILITY OF THE COMMUNITY ON ACCOUNT OF ITS LEGISLATIVE POWERS DEPENDS ON THE COINCIDENCE OF A SET OF CONDITIONS AS REGARDS THE UNLAWFULNESS OF THE ACT OF THE INSTITUTION, THE FACT OF DAMAGE AND THE EXISTENCE OF A DIRECT LINK IN THE CHAIN OF CAUSALITY BETWEEN THE ACT AND THE DAMAGE COMPLAINED OF .
8 THE COURT HAS ALSO STATED WITH REGARD TO THE FIRST OF THOSE CONDITIONS ( JUDGMENTS OF 4 OCTOBER 1979 IN JOINED CASES 241, 242 AND 245 TO 250/78 DGV AND OTHERS V COUNCIL AND COMMISSION (( 1979 )) ECR 3017, AND IN JOINED CASES 261 AND 262/78 INTERQUELL STAERKE CHEMIE V COUNCIL AND COMMISSION (( 1979 )) ECR 3045 ) THAT THE COMMUNITY DOES NOT INCUR LIABILITY ON ACCOUNT OF A LEGISLATIVE MEASURE WHICH, LIKE THAT AT ISSUE HERE, INVOLVES CHOICES OF ECONOMIC POLICY UNLESS A SUFFICIENTLY SERIOUS BREACH OF A SUPERIOR RULE OF LAW FOR THE PROTECTION OF THE INDIVIDUAL HAS OCCURRED . IN THE CONTEXT OF COMMUNITY PROVISIONS IN WHICH ONE OF THE CHIEF FEATURES IS THE EXERCISE OF A WIDE DISCRETION INDISPENSABLE FOR THE IMPLEMENTATION OF THE COMMON AGRICULTURAL POLICY, THE COMMUNITY CAN INCUR LIABILITY ONLY IN EXCEPTIONAL CASES, NAMELY WHERE THE INSTITUTION CONCERNED MANIFESTLY AND GRAVELY DISREGARDED THE LIMITS ON THE EXERCISE OF ITS POWERS .
9 THE REFUSAL OF THE COMMUNITY INSTITUTIONS TO GRANT FOR GRANIDON THE PRODUCTION REFUNDS LAID DOWN FOR PRODUCTS TRADITIONALLY USED IN THE BREWING INDUSTRY FORMS PART OF THE LEGISLATIVE FUNCTION OF THE COMMUNITY . IT IS THEREFORE NECESSARY TO CONSIDER IN THE LIGHT OF THE CRITERIA SET OUT ABOVE WHETHER THE COMMUNITY HAS INCURRED NON-CONTRACTUAL LIABILITY ON ACCOUNT OF THAT REFUSAL .
THE SUBMISSION RELATING TO THE BREACH OF THE PRINCIPLE OF EQUAL TREATMENT
10 THE APPLICANT MAINTAINS THAT BY REFUSING TO GRANT FOR GRANIDON THE REFUNDS LAID DOWN FOR PRODUCTS TRADITIONALLY USED IN THE BREWING INDUSTRY THE INSTITUTIONS ACTED IN BREACH OF THE GENERAL PRINCIPLE OF EQUALITY EMBODIED IN THE SECOND SUBPARAGRAPH OF ARTICLE 40 ( 3 ) OF THE EEC TREATY .