The Irish Farmers Association and others v Minister for Agriculture, Food and Forestry, Ireland and Attorney General.
Date: 1997-04-15
19 According to the consistent case-law of the Court, in the sphere of the common organization of the markets, whose purpose involves constant adjustments to meet changes in the economic situation, economic operators cannot legitimately expect that they will not be subject to restrictions arising out of future rules of market or structural policy.  The principle of the protection of legitimate expectations may be invoked as against Community rules only to the extent that the Community itself has previously created a situation which can give rise to a legitimate expectation (see Case C-177/90 Kühn v Landwirtschaftskammer Weser-Ems [1992] ECR I-35, paragraphs 13 and 14, and Case C-63/93 Duff and Others v Minister for Agriculture and Food, Ireland, and the Attorney General [1996] ECR I-569, paragraph 20).
25 The Court has consistently held that any trader in regard to whom an institution has given rise to justified hopes may rely on the principle of the protection of legitimate expectations.  On the other hand, if a prudent and discriminating trader could have foreseen the adoption of a Community measure likely to affect his interests, he cannot plead that principle if the measure is adopted (Case 265/85 Van den Bergh en Jurgens and Van Dijk Food Products v Commission [1987] ECR 1155, paragraph 44).  In view of the foregoing considerations, the plaintiffs in the main proceedings had sufficient information to enable them to anticipate, particularly in view of the continuing surpluses on the market, the subsequent reductions, the gradual decrease in compensation and the Commission's proposal for a regulation of 11 November 1991 to adopt the measures which appear in Regulations Nos 816/92 and 1560/93.
Right to property
27 That argument cannot be upheld, either.  The right to property is certainly one of the fundamental rights whose observance is ensured by the Court.  Such rights are not, however, absolute rights but must be considered in relation to their social function.  Consequently, restrictions may be imposed on the exercise of those rights, in particular in the context of a common organization of the markets, provided that those restrictions in fact correspond to objectives of general interest pursued by the Community and do not constitute, with regard to the aim pursued, a disproportionate and intolerable interference, impairing the very substance of those rights (Kühn, cited above, paragraph 16).
28 Having regard to those criteria, it must be held that, first, the regulations in question form part of a body of legislation intended to remedy the surpluses on the milk and milk products market and that they therefore correspond to aims pursued by the Community in the general interest.
29 Secondly, conversion into a definitive reduction without compensation does not affect the actual substance of that right inasmuch as the Irish producers were able to continue to pursue their trade or profession as milk producers. Moreover, the reduction in milk production led to an increase in the price of milk, thus compensating, at least in part, the loss suffered.
The principle of proportionality
30 Contrary to the contentions of the plaintiffs in the main proceedings, the conversion of the temporary withdrawal coupled with a proportionate compensation into a permanent reduction without compensation does not infringe the principle of proportionality.
31 Within the framework of the Community legislature's broad discretionary powers in the field of the common agricultural policy, the conversion of a temporary withdrawal of the reference quantities after five years does not seem an inappropriate means of achieving the aim of the additional milk levy scheme, which is to reduce milk production further and permanently.  By comparison with the result sought, conversion into a reduction without compensation is not disproportionate, particularly in view of the fact that producers' reference quantities have not been substantially affected and they have received, for five years, compensation proportionate to the additional burden placed on them in the past but which it is no longer deemed necessary to continue.
The principle of equal treatment
34 The Court has consistently held that the principle of non-discrimination between producers or consumers in the Community, laid down in the second subparagraph of Article 40(3) of the EC Treaty, means that comparable situations are not to be treated differently and that different situations are not to be treated alike unless such treatment is objectively justified (see Case 203/86 Spain v Council [1988] ECR 4563, paragraph 25).
39 It is settled case-law that the statement of reasons required by Article 190 of the Treaty must show clearly and unequivocally the reasoning of the institution which enacted the measure so as to inform the persons concerned of the justification for the measure adopted and to enable the Court to exercise its powers of review.  It is not necessary, however, for details of all relevant factual and legal aspects to be given, in so far as the question whether the statement of the grounds for a decision meets the requirements of Article 190 of the Treaty must be assessed with regard not only to its wording but also to its context and to all the legal rules governing the matter in question (see Case C-478/93 Netherlands v Commission [1995] ECR I-3081, paragraphs 48 and 49).
40 As the Advocate General observed at point 44 of his Opinion, the statement of grounds for Regulation No 1560/93 meets the requirements laid down by the Court inasmuch as the second recital thereof sets out in a clear and unequivocal fashion the background to the conversion into a definitive reduction without compensation.
41 On the other hand, by indicating only at the second recital in the preamble to Regulation No 816/92 the reference quantities which are no longer included in the guaranteed total quantities, the wording alone of that regulation does not make it possible to know clearly the grounds for the measure taken.  However, in accordance with the principles laid down in Netherlands v Commission, cited above, and reiterated at paragraph 39 of this judgment, the circumstances in which the regulation was adopted, namely the degressive nature of the compensation, the temporal limits on all compensation provided for as part of the reduction programmes and the possibility of renewing the additional levy scheme under the conditions indicated in the Commission's proposal for a regulation of 11 November 1991, enabled the plaintiffs in the main proceedings to know the reasons for the adoption of the criticized measures in the context of Regulation No 816/92.