Keywords
Summary

Keywords

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1 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - MILK AND MILK PRODUCTS - BUTTER IN STORAGE - SALE AT A REDUCED PRICE FOR DIRECT CONSUMPTION - "CHRISTMAS BUTTER" SCHEME - COMMISSION' S POWERS

( REGULATION NO 804/68 OF THE COUNCIL, ARTS 6, 12 AND 30, REGULATIONS NOS 985/68 AND 750/69 OF THE COUNCIL AND COUNCIL REGULATION NO 1269/79; COMMISSION REGULATION NO 2956/84 )

2 . AGRICULTURE - COMMON AGRICULTURAL POLICY - AIMS - RECONCILIATION - COMMISSION' S DISCRETION - GUARANTEE OF A REASONABLE INCOME FOR MILK PRODUCERS - "CHRISTMAS BUTTER" SCHEME FOR THE SALE OF BUTTER IN STORAGE AT REDUCED PRICES - LAWFULNESS

( EEC TREATY, ART . 39 ( 1 ); COMMISSION REGULATION NO 2956/84 )

3 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - DISCRIMINATION BETWEEN PRODUCERS OR CONSUMERS - "CHRISTMAS BUTTER" SCHEME FOR THE SALE OF BUTTER IN STORAGE AT REDUCED PRICES - EFFECTS ON THE MARGARINE MARKET - ABSENCE OF DISCRIMINATION

( EEC TREATY, ART . 40 ( 3 ), SECOND SUBPARAGRAPH; COMMISSION REGULATION NO 2956/84 )

4 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - MILK AND MILK PRODUCTS - BUTTER IN STORAGE - SALE AT A REDUCED PRICE FOR DIRECT CONSUMPTION - "CHRISTMAS BUTTER" SCHEME - LIMITED EFFECTIVENESS AND HIGH COST - PRINCIPLE OF PROPORTIONALITY - BREACH - NONE

( COMMISSION REGULATION NO 2956/84 )

5 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - MILK AND MILK PRODUCTS - INTERVENTION SYSTEMS - AIMS - MEASURES LEADING TO AN INCREASE IN THE CONSUMPTION OF BUTTER - "CHRISTMAS BUTTER" SCHEME FOR THE SALE OF BUTTER IN STORAGE AT A REDUCED PRICE - LAWFULNESS

( REGULATION NO 804/68 OF THE COUNCIL, ART . 6 ( 4 ) ( A ); COMMISSION REGULATION NO 2956/84 )

6 . AGRICULTURE - COMMON ORGANIZATION OF THE MARKETS - MILK AND MILK PRODUCTS - BUTTER IN STORAGE - SALE AT A REDUCED PRICE FOR DIRECT CONSUMPTION - "CHRISTMAS BUTTER" SCHEME - REPETITION - PROTECTION OF LEGITIMATE EXPECTATION - NOT APPLICABLE

( COMMISSION REGULATION NO 2956/84 )

Summary

1 . THE "CHRISTMAS BUTTER" SCHEME FOR THE SALE OF BUTTER IN STORAGE AT A REDUCED PRICE, DECIDED ON BY THE COMMISSION IN 1984 AND SET UP BY COMMISSION REGULATION NO 2956/84, MAY BE REGARDED AS A SPECIAL MEASURE, ADOPTED AT A TIME AT WHICH IT IS COMMON GROUND THAT THERE WERE LARGE SURPLUSES OF MILK PRODUCTS, AND INTENDED BOTH TO INCREASE CONSUMPTION AND TO REDUCE PUBLIC AND PRIVATE STOCKS AS WELL AS TO ENSURE THE NECESSARY ROTATION OF THOSE STOCKS . SUCH AN OPERATION FULFILS THE AIMS DEFINED BOTH BY ARTICLES 6 AND 12 OF REGULATION NO 804/68 AND BY REGULATIONS NO 985/68 AND 750/69 OF THE COUNCIL AND COUNCIL REGULATION NO 1269/79, WHICH LAID DOWN GENERAL RULES FOR THE IMPLEMENTATION OF THOSE ARTICLES .

CONSEQUENTLY, IN ADOPTING REGULATION NO 2956/84, THE COMMISSION DID NOT EXCEED THE LIMITS OF THE POWERS DELEGATED TO IT BY THE COUNCIL AND WHICH IT MAY EXERCISE IN ACCORDANCE WITH THE MANAGEMENT COMMITTEE PROCEDURE FOR THE PURPOSE OF ENSURING THAT THE COMMON ORGANIZATION OF THE MARKET IN MILK AND MILK PRODUCTS FUNCTIONS .

2 . IN PURSUING THE VARIOUS AIMS LAID DOWN IN ARTICLE 39 OF THE TREATY, THE COMMUNITY INSTITUTIONS HAVE A PERMANENT DUTY TO RECONCILE THE INDIVIDUAL AIMS SO AS TO OVERCOME ANY CONFLICT BETWEEN THEM . ALTHOUGH THAT DUTY TO RECONCILE MEANS THAT NO SINGLE AIM MAY BE PURSUED IN ISOLATION IN SUCH A WAY AS TO MAKE THE ACHIEVEMENT OF THE OTHERS IMPOSSIBLE, THE COMMUNITY INSTITUTIONS MAY ALLOW ONE OF THEM TEMPORARY PRIORITY IN ORDER TO SATISFY THE DEMANDS OF THE ECONOMIC OR OTHER CONDITIONS IN VIEW OF WHICH THEIR DECISIONS ARE MADE .

IN THOSE CIRCUMSTANCES, THE COMMISSION WAS ENTITLED TO DEVOTE SPECIAL ATTENTION TO ENSURING A REASONABLE INCOME FOR MILK PRODUCERS BY ORGANIZING A CHRISTMAS BUTTER SCHEME SO AS TO SELL BUTTER IN STORAGE AT A REDUCED PRICE . BY FACILITATING THE DISPOSAL OF SURPLUSES CREATED BY THE INTERVENTION MACHINERY AND BY PERMITTING A RENEWAL OF THE BUTTER IN STORAGE, SUCH A SCHEME MAKES IT POSSIBLE TO MAINTAIN THE SYSTEM OF PRODUCTION PRICES WITHOUT CREATING A REAL AND LASTING DISTURBANCE OF THE MARGARINE MARKET .

3 . HAVING REGARD TO THE OBJECTIVE DIFFERENCES WHICH CHARACTERIZE THE LEGAL MACHINERY EMPLOYED AND THE ECONOMIC CONDITIONS ON THE MARKETS IN QUESTION, PRODUCERS OF BUTTER, ON THE ONE HAND, AND PRODUCERS OF FATS AND OIL-BEARING FRUITS AND MARGARINE, ON THE OTHER, ARE NOT IN COMPARABLE POSITIONS . THUS, THE CHRISTMAS BUTTER SCHEME FOR THE SALE OF BUTTER IN STORAGE AT A REDUCED PRICE SET UP BY REGULATION NO 2956/84 WHICH IS ESSENTIAL TO THE FUNCTIONING OF THE COMMON ORGANIZATION OF THE MARKET IN MILK PRODUCTS, CANNOT BE REGARDED AS GIVING RISE TO DISCRIMINATION AGAINST PRODUCERS OF MARGARINE CONTRARY TO THE SECOND SUBPARAGRAPH OF ARTICLE 40 ( 3 ) OF THE TREATY .

4 . BECAUSE IT LED BOTH TO ADDITIONAL SALES OF BUTTER AND TO A BETTER ROTATION AND A CERTAIN RENEWAL OF BUTTER STOCKS, THE "CHRISTMAS BUTTER" SCHEME SET UP BY REGULATION NO 2956/84 MAY NOT, NOTWITHSTANDING ITS LIMITED EFFECTIVENESS AND HIGH COST FROM THE POINT OF VIEW OF COMMUNITY FINANCES, BE REGARDED AS UNSUITABLE FOR THE PURPOSE OF ACHIEVING THE DESIRED AIMS NOR AS GOING FURTHER THAN WAS NECESSARY TO ACHIEVE THEM . THEREFORE, IT DOES NOT BREACH THE PRINCIPLE OF PROPORTIONALITY .

5 . ALTHOUGH, ACCORDING TO ARTICLE 6 ( 4 ) ( A ) OF REGULATION NO 804/68 ON THE COMMON ORGANIZATION OF THE MARKET IN MILK AND MILK PRODUCTS, THE INTERVENTION SYSTEM IS TO BE SO APPLIED THAT THE COMPETITIVE POSITION OF BUTTER ON THE MARKET IS MAINTAINED, THAT PROVISION DOES NOT MEAN THAT THE COMPETITIVE RELATIONSHIP BETWEEN BUTTER AND OTHER PRODUCTS WHICH ARE PARTIAL SUBSTITUTES FOR IT MAY BE REGARDED AS FIXED AND UNCHANGEABLE . ON THE CONTRARY, HAVING REGARD TO THE IMPORTANCE OF THE PLACE OF BUTTER IN THE COMMON ORGANIZATION OF THE MARKET IN MILK PRODUCTS, THE INSTITUTIONS MUST ENSURE THAT THE COMPETITIVE POSITION OF THAT PRODUCT DOES NOT DETERIORATE AND, IF NECESSARY, ENSURE THAT IT IS IMPROVED IN ORDER TO RESTORE THE BALANCE OF THE COMMON ORGANIZATION OF THE MARKET IN MILK PRODUCTS . IT IS FOR THAT PURPOSE THAT THE COMMISSION WAS GRANTED POWERS TO ADOPT, AT TIMES WHEN IT IS DIFFICULT TO DISPOSE OF BUTTER, MEASURES LEADING TO AN INCREASE IN THE CONSUMPTION OF BUTTER BY VIRTUE OF A REDUCTION IN THE PRICE OF THAT PRODUCT, WHICH ALSO PERMITS IT TO ACHIEVE THE OTHER AIMS REFERRED TO IN ARTICLE 6 ( 4 ) ( B ) AND ( C ) OF REGULATION NO 804/68, NAMELY TO PRESERVE THE INITIAL QUALITY OF BUTTER AND TO HOLD STOCKS ON THE MOST RATIONAL BASIS POSSIBLE . A SCHEME SUCH AS THE CHRISTMAS BUTTER SCHEME SET UP BY REGULATION NO 2956/84 IS PRECISELY DESIGNED TO ACHIEVE THOSE OBJECTIVES .

6 . THE FACT THAT, FOLLOWING CHRISTMAS BUTTER SCHEMES FOR THE SALE OF BUTTER AT A REDUCED PRICE SUCH AS THE ONE SET UP BY REGULATION NO 2956/84, THE COMMISSION INDICATED THAT IN THE FUTURE SUCH PROGRAMMES SHOULD BE IMPLEMENTED WITH MODERATION, DID NOT EXCLUDE THE POSSIBILITY OF SUCH SCHEMES BEING REPEATED . FURTHERMORE, THE COMMISSION SET UP CHRISTMAS BUTTER SCHEMES ON SEVERAL OCCASIONS FROM 1977 ONWARDS, WHILE ALSO ADOPTING MANY OTHER MEASURES ENCOURAGING THE DISPOSAL OF BUTTER AT A REDUCED PRICE . NOTWITHSTANDING THAT ACTION, BUTTER STOCKS INCREASED CONSIDERABLY BETWEEN 1983 AND 1984 . IN THOSE CIRCUMSTANCES, A PRUDENT AND DISCRIMINATING TRADER OUGHT TO HAVE TAKEN ACCOUNT OF THE POSSIBILITY THAT A FURTHER CHRISTMAS BUTTER SCHEME WOULD BE INTRODUCED . THEREFORE, THE COMMISSION DID NOT INFRINGE THE PRINCIPLE OF THE PROTECTION OF LEGITIMATE EXPECTATION .