Keywords
Summary

Keywords

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1 . ACTION FOR ANNULMENT - NATURAL OR LEGAL PERSONS - MEASURES OF DIRECT AND INDIVIDUAL CONCERN TO THEM - REGULATION LAYING DOWN DETAILED IMPLEMENTING ARRANGEMENTS FOR A SYSTEM OF COMMUNITY AID IN A MEMBER STATE

( EEC TREATY, ART . 173, SECOND PARAGRAPH; COMMISSION REGULATION NO 381/86 )

2 . ACTION FOR ANNULMENT - JUDGMENT ANNULLING A MEASURE - IMPLEMENTATION - REFUSAL TO ADOPT MEASURES GOING BEYOND REPLACEMENT OF THE ANNULLED MEASURE - OBJECTION CONCERNING THE SCOPE OF THE OBLIGATION TO IMPLEMENT - REMEDY - ACTION FOR FAILURE TO ACT

( EEC TREATY, ARTS 175 AND 176 )

3 . ACTION FOR ANNULMENT - JUDGMENT ANNULLING A MEASURE - EFFECTS - OBLIGATION TO IMPLEMENT - SCOPE - BOTH THE OPERATIVE PART AND THE GROUNDS OF THE JUDGMENT TO BE TAKEN INTO ACCOUNT - RETROACTIVE EFFECT OF ANNULMENT - ELIMINATION OF ALL PROVISIONS ADOPTED SUBSEQUENTLY AND VITIATED BY THE SAME DEFECT AS THE ANNULLED PROVISION

( EEC TREATY, ART . 176 )

Summary

1 . A REGULATION LAYING DOWN DETAILED ARRANGEMENTS FOR THE GRANT IN A MEMBER STATE OF COMMUNITY AID INSTITUTED WITHIN THE FRAMEWORK OF A COMMON MARKET ORGANIZATION IS A MEASURE OF GENERAL APPLICATION WHICH APPLIES TO OBJECTIVELY DETERMINED SITUATIONS AND ENTAILS LEGAL EFFECTS FOR A CATEGORY OF PERSONS CONSIDERED GENERALLY AND IN THE ABSTRACT . IT CANNOT THEREFORE BE OF DIRECT AND INDIVIDUAL CONCERN, WITHIN THE MEANING OF THE SECOND PARAGRAPH OF ARTICLE 173 OF THE TREATY, TO A BUSINESS ESTABLISHED IN THAT MEMBER STATE WHICH IS ELIGIBLE FOR THE AID IN QUESTION .

2 . AN ALLEGATION THAT AN INSTITUTION IS IN BREACH OF ITS OBLIGATIONS UNDER ARTICLE 176 OF THE TREATY AFTER THE ANNULMENT OF ONE OF ITS MEASURES MUST TAKE THE FORM OF AN ACTION FOR FAILURE TO ACT WHERE IT IS NOT ALLEGED THAT THE MEASURE ADOPTED TO REPLACE THE ANNULLED MEASURE IS ILLEGAL BUT THE QUESTION IS RAISED WHETHER, IN ADDITION TO REPLACING THAT MEASURE, THE INSTITUTION MUST TAKE OTHER ACTION RELATING TO OTHER MEASURES WHICH WERE NOT CHALLENGED IN THE PROCEEDINGS FOR ANNULMENT .

3 . WHERE A MEASURE ADOPTED BY AN INSTITUTION HAS BEEN ANNULLED BY THE COURT, THE INSTITUTION IS REQUIRED, IN ORDER TO COMPLY WITH THE JUDGMENT AND IMPLEMENT IT FULLY, TO HAVE REGARD NOT ONLY TO THE OPERATIVE PART OF THE JUDGMENT BUT ALSO TO THE GROUNDS WHICH LED TO THE JUDGMENT AND CONSTITUTE ITS ESSENTIAL BASIS, IN SO FAR AS THEY ARE NECESSARY IN ORDER TO DETERMINE THE EXACT MEANING OF WHAT IS STATED IN THE OPERATIVE PART . IT IS THOSE GROUNDS WHICH, ON THE ONE HAND, IDENTIFY THE PRECISE PROVISION HELD TO BE ILLEGAL AND, ON THE OTHER, INDICATE THE SPECIFIC REASONS WHICH UNDERLIE THE FINDING OF ILLEGALITY CONTAINED IN THE OPERATIVE PART AND WHICH THE INSTITUTION CONCERNED MUST TAKE INTO ACCOUNT WHEN REPLACING THE ANNULLED MEASURE .

HOWEVER, ALTHOUGH A FINDING OF ILLEGALITY IN THE GROUNDS OF THE JUDGMENT PRIMARILY REQUIRES THE INSTITUTION WHICH ADOPTED THE MEASURE TO ELIMINATE THAT ILLEGALITY IN THE MEASURE INTENDED TO REPLACE THE ANNULLED MEASURE, IT MAY ALSO, IN SO FAR AS IT RELATES TO A PROVISION WITH SPECIFIC SCOPE IN A GIVEN AREA, GIVE RISE TO OTHER CONSEQUENCES FOR THAT INSTITUTION .

IN A CASE WHERE THE EFFECT OF THE ANNULLED REGULATION IS LIMITED TO A CLEARLY DEFINED PERIOD, THE INSTITUTION WHICH ADOPTED THE MEASURE IS FIRST OF ALL UNDER AN OBLIGATION TO ENSURE THAT NEW LEGISLATION ADOPTED FOLLOWING THE JUDGMENT ANNULLING THE PREVIOUS MEASURE AND GOVERNING PERIODS SUBSEQUENT TO THAT JUDGMENT CONTAINS NO PROVISIONS HAVING THE SAME EFFECT AS THE PROVISIONS HELD TO BE ILLEGAL . HOWEVER, BY VIRTUE OF THE RETROACTIVE EFFECT OF JUDGMENTS BY WHICH MEASURES ARE ANNULLED, THE FINDING OF ILLEGALITY TAKES EFFECT FROM THE DATE ON WHICH THE ANNULLED MEASURE ENTERED INTO FORCE, SO THAT THE INSTITUTION CONCERNED IS ALSO UNDER AN OBLIGATION TO ELIMINATE FROM LEGISLATION ALREADY ADOPTED WHEN THE JUDGMENT WAS DELIVERED AND GOVERNING PERIODS SUBSEQUENT TO THAT GOVERNED BY THE ANNULLED REGULATION ANY PROVISIONS WITH THE SAME EFFECT AS THE PROVISIONS HELD TO BE ILLEGAL .