Case C‑433/15

European Commission

v

Italian Republic

(Failure of a Member State to fulfil obligations — Milk and milk products — Additional levy on milk — Tax years 1995/1996 to 2008/2009 — Regulation (EC) No 1234/2007 — Articles 79, 80 and 83 — Regulation (EC) No 595/2004 — Articles 15 and 17 — Infringement — Lack of effective payment of the levy within the time limits prescribed — Failure of recovery in the event of non-payment of the levy)

Summary — Judgment of the Court (Fourth Chamber), 24 January 2018

1. Agriculture—Common organisation of the markets—Milk and milk products—Additional levy on milk—Allocation and recovery—Obligations of the Member States—Failure to fulfil obligations—Justification alleging legal and political difficulties at the EU level—Not permissible

   (Council Regulations No 3950/92, Arts. 1 and 2, No 1788/2003, Art. 4 and No 1234/2007, Arts 79, 80 and 83; Commission Regulations No 536/93, Art. 7 and No 1392/2001, Art. 11(1) and (2); Commission Regulations No 595/2004, as amended by Regulation No 1468/2006, Arts. 15 and 17)

2. Agriculture—Common organisation of the markets—Milk and milk products—Additional levy on milk—Allocation and recovery—Member States’ duty of diligence—Scope

   (Art. 4(3) TEU)

3. Action for failure to fulfil obligations—Proof of failure—Burden of proof on Commission—Production of evidence showing failure—Incumbent on Member State concerned to refute evidence

   (Art. 258 TFEU)

4. Member States—Obligations—Failure to fulfil obligations—National system pleaded as justification—Not permissible

   (Art. 258 TFEU)

1.  By failing to ensure that the amount due by way of additional levy in respect of milk for the actual years in which the additional levy was in fact applied was in fact allocated to the producers which had contributed to each of the production overruns and was paid at the appropriate time, upon their being given notification of the amount payable, by the purchasers or the producers in the case of direct sales, or where the levy was not paid within the period prescribed, was registered and, where possible, recovered by way of enforcement from those purchasers or producers, a Member State fails to fulfil the obligations imposed on it by Articles 1 and 2 of Regulation No 3950/92 establishing an additional levy in the milk and milk products sector, Article 4 of Regulation No 1788/2003 establishing a levy in the milk and milk products sector, of Articles 79, 80 and 83 of Regulation No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation), of Article 7 of Regulation No 536/93 laying down detailed rules on the application of the additional levy on milk and milk products, of Article 11(1) and (2) of Regulation No 1392/2001 laying down detailed rules for applying Regulation No 3950/92, and, finally, of Articles 15 and 17 of Regulation No 595/2004 laying down detailed rules for applying Regulation No 1788/2003, as amended by Regulation No 1468/2006.

   In fact, first, in accordance with Article 2(1) of Regulation No 3950/92, the additional levy established by Article 1 of that regulation is to be allocated among the producers who contributed to the overrun of the reference quantities. Such a distribution of the additional levy is also provided for in Article 4 of Regulation No 1788/2003 and in Articles 79, 80 and 83 of Regulation No 1234/2007. Second, in accordance with Article 7 of Regulation No 536/93, Article 11(1) and (2) of Regulation No 1392/2001 and Articles 15 and 17 of Regulation No 595/2004, the Member States are to take all the measures necessary to ensure that the levy, including the interest due in the event of failure to comply with the payment period, is correctly charged and that it falls on the producers who contributed to the overrun. The fact that the scheme for the additional levy on milk gave rise to legal and political difficulties at the EU level, and that the scheme was eventually replaced, in no way justifies the failure of Member States to take all the measures necessary to ensure its effectiveness at the national level.

   (see paras 40, 41, 57, operative part 1)

2.  See the text of the decision.

   (see para point 42)

3.  See the text of the decision.

   (see paras 43, 44)

4.  See the text of the decision.

   (see para. 56)