ECJ 1 Agriculture – Common organization of the markets – Milk and milk products – Additional levy on milk – Temporary suspension of a percentage of the reference quantities exempt from the levy – Conversion into definitive reduction without compensation – Principle of protection of legitimate expectations – Right to property – Principle of proportionality – Principle of non-discrimination – Breach – None
(EC Treaty, Art. 40(3); Council Regulation No 804/68, Art. 5c3)(g), inserted by Regulation No 816/92, and Regulation No 3950/92, Art. 3, as amended by Regulation No 1560/93)
2 Acts of the institutions – Statement of reasons – Obligation – Scope
(EC Treaty, Art. 90)
3 In so far as Article 5c3)(g) of Regulation No 804/68, inserted by Article 1(3) of Regulation No 816/92, and Article 3 of Regulation No 3950/92, as amended by Article 1 of Regulation No 1560/93, converted the temporary withdrawal of a percentage of the reference quantity exempt from the milk levy, within the meaning of Regulation No 775/87, into a definitive reduction of that quantity without compensation for the producers, those provisions do not breach the principles of the protection of legitimate expectations, non-discrimination and proportionality or the fundamental right to property.
First, with regard to the principle of the protection of legitimate expectations, a prudent and discriminating trader should have anticipated, particularly in view of the continuing surpluses on the market in milk, in addition to the gradual decrease in compensation, other measures to reduce milk production, such as the conversion of the temporary suspension of reference quantities into definitive reductions.
Secondly, those regulations, which correspond to aims pursued in the general interest and which seek to remedy the surpluses on the milk products market, do not affect the actual substance of the right to property.
Thirdly, the conversion of the temporary suspension, after five years, into a definitive reduction without compensation does not infringe the principle of proportionality, since, within the framework of the Community legislature’s broad discretionary powers in the field of the common agricultural policy, that conversion does not seem an inappropriate means of achieving the aim of the additional levy scheme, which is to reduce milk production further and permanently.
Finally, it does not conflict with the principle of non-discrimination between producers or consumers, since both beneficiaries of the Community definitive discontinuation of milk production programme and producers who remain active are compensated for the suspended quantities. In fact, while the suspended quantity was included in the calculation of the quantity to be compensated upon definitive discontinuation, the producer who remained active received compensation for the suspended quantity until the end of the eighth 12-month period of the application of the additional levy scheme.
4 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.
Judges:
JL Murray, P
Citations:
C-22/94, [1997] EUECJ C-22/94, [1997] 2 CMLR 621, [1997] ECR I-1809
Links:
Statutes:
EC Treaty, Art. 40(3), Regulation No 804/68
European, Agriculture
Updated: 03 June 2022; Ref: scu.161275
