Judgment of the Court (First Chamber) of 23 February 1983. - Fromançais SA v Fonds d'orientation et de régularisation des marchés agricoles (FORMA). - Reference for a preliminary ruling: Tribunal administratif de Paris - France. - Forfeiture of security. - Case 66/82.
European Court reports 1983 Page 00395
Summary
Parties
Subject of the case
Grounds
Decision on costs
Operative part
Keywords
1 . COMMUNITY LAW - GENERAL PRINCIPLES - PROPORTIONALITY - PROPORTIONAL NATURE OF A MEASURE - CRITERIA FOR ASSESSMENT
2 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - MILK AND MILK PRODUCTS - BUTTER OFFERED FOR SALE AT A REDUCED PRICE - COMPULSORY PROCESSING OF BUTTER WITHIN A SPECIFIED PERIOD - PROVISION OF SECURITY BY THE SUCCESSFUL TENDERER - FAILURE TO OBSERVE THE PROCESSING PERIOD - TOTAL FORFEITURE OF THE SECURITY - PRINCIPLE OF PROPORTIONALITY - BREACH - NONE
( REGULATIONS ( EEC ) OF THE COMMISSION NOS 1259/72 , ART . 18 ( 2 ) AND 232/75 , ARTS 18 ( 2 ) AND 19 )
Summary
1 . IN ORDER TO ESTABLISH WHETHER A PROVISION OF COMMUNITY LAW IS CONSONANT WITH THE PRINCIPLE OF PROPORTIONALITY IT IS NECESSARY TO ESTABLISH , IN THE FIRST PLACE , WHETHER THE MEANS IT EMPLOYS TO ACHIEVE ITS AIM CORRESPOND TO THE IMPORTANCE OF THE AIM AND , IN THE SECOND PLACE , WHETHER THEY ARE NECESSARY FOR ITS ACHIEVEMENT .
2.THE PROVISIONS WHICH REQUIRE THE FORFEITURE OF THE SECURITY IN FULL WHEN THE PROCESSING PERIOD FOR BUTTER OFFERED FOR SALE AT A REDUCED PRICE IS EXCEEDED SEEK TO PREVENT SUCCESSFUL TENDERERS FROM ACCUMULATING STOCKS FOR SPECULATIVE PURPOSES . SUCH SPECULATION WOULD CONFLICT WITH THE PURPOSE OF REGULATIONS NOS 1259/72 AND 232/75 RELATING TO THE SALE OF BUTTER AT A REDUCED PRICE , BECAUSE A VERY LARGE PERCENTAGE OF THE BUTTER SOLD IN THAT WAY WOULD NOT BE PROCESSED , BUT WOULD BE USED TO ACCUMULATE STOCKS WHICH WOULD BE PARTLY FINANCED BY THE COMMUNITY BUDGET OUTSIDE THE FRAMEWORK OF THE REGULATIONS IN QUESTION . IT FOLLOWS THAT PREVENTING SPECULATION IS AN AIM OF FUNDAMENTAL IMPORTANCE TO THE PROPER FUNCTIONING OF THE SYSTEM . IN THOSE CIRCUMSTANCES THE TOTAL FORFEITURE OF THE SECURITY WHEN THE PERIODS PRESCRIBED BY THE COMMUNITY LEGISLATION ARE EXCEEDED IS A MEASURE WHICH IS PROPORTIONATE TO THE AIMS PURSUED BY REGULATIONS NOS 1259/72 AND 232/75 .
Parties
IN CASE 66/82
REFERENCE TO THE COURT UNDER ARTICLE 177 OF THE EEC TREATY BY THE TRIBUNAL ADMINISTRATIF ( ADMINISTRATIVE COURT ), PARIS , FOR A PRELIMINARY RULING IN THE ACTION PENDING BEFORE THAT COURT BETWEEN
FROMANCAIS SA , PARIS ,
AND
FONDS D ' ORIENTATION ET DE REGULARISATION DES MARCHES AGRICOLES ( FORMA ) ( AGRICULTURAL MARKETS GUIDANCE AND STABILIZATION FUND , HEREINAFTER REFERRED TO AS ' ' THE FUND ' ' ), PARIS ,
Subject of the case
ON THE VALIDITY OF ARTICLE 18 ( 2 ) OF REGULATION ( EEC ) NO 1259/72 OF THE COMMISSION OF 16 JUNE 1972 ( OFFICIAL JOURNAL , ENGLISH SPECIAL