C-272/86
ECLI:EU:C:1988:216
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OPINION OF MR CRUZ VILAÇA — CASE 272/86
OPINION OF MR ADVOCATE GENERAL C R U Z VILAÇA delivered o n 28 April 1 9 8 8 *
Mr President, Commission's view, constitute an Members of the Court, infringement of Articles 30 and 34 of the Treaty and of Regulation N o 136/66/EEC.
1. Having been alerted, by complaints from a number of traders and by reports in the 5. In fact, the conduct of the Greek auth- press and on Greek television, to barriers orities throughout this action has not been which had been established in Greece to such as to provide full clarification of the imports and exports of olive oil to and from facts. Both in the pre-litigation phase and Member States and non-member countries, after commencement of the action, and even the Commission initiated the procedure after several requests made by the Court, under Article 169 of the EEC Treaty against the Government of the Hellenic Republic that country. has been unable to provide either the text of such rules or administrative provisions covering the matters at issue as may exist or any comprehensive explanation regarding the problems referred to in the complaints 2. Having regard to the replies received submitted. from Greece in the pre-litigation phase, the Commission ultimately commenced the present Treaty-infringement proceedings in which it accuses the Hellenic Republic of 6. For that reason, from the start of the failing to fulfil its obligations under Articles pre-litigation phase, the Commission added 30, 34 and 5 of the EEC Treaty and under infringement by Greece of Article 5 of the Regulation No 136/66/EEC of the Council Treaty as a further accusation. of 22 September 1966 on the establishment of a common organization of the market in oils and fats, 1 in particular Article 3 thereof. 7. Accordingly, it is appropriate to begin by defining precisely the accusations made, before going on to analyse the parties' 3. The events which gave rise to the action arguments. and the pre-litigation phase are described in sufficient detail in the Repon for the Hearing, to which I refer in so far as is 8. The Commission makes the following necessary. three allegations against the Hellenic Republic:
4. The main problem in this case concerns proof of the circumstances which, in the (a) By prohibiting imports of olive oil from other Member States and from * Translated from the Portuguese. non-member countries, it has infringed 1 — OJ, English Special Edition 1966, p. 221. Article 30 of the EEC Treaty and Regu-
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lation No 136/66/EEC, in particular 11. We already know that even in the Article 3 thereof. pre-litigation phase the Commission requested the Greek authorities to provide information concerning the administrative formalities applicable in Greece to the importation of olive oil from other Member (b) By prohibiting exports of olive oil, with States which, according to the complaints the exception of extra and fine quality made, resulted in the entry of that product virgin olive oil in packs not exceeding into Greek territory being either rendered five litres, it has infringed Article 34 more difficult or prevented. of the Treaty and Regulation N o 136/66/EEC, in particular Article 3 thereof. 12. Despite the Commission's repeated requests, the Greek authorities never provided the information requested, (c) By failing to provide the Commission confining themselves to stating — contrary with the information requested in that to the assertions of the traders connection, it has failed to fulfil its obli- affected — that 'the importation into Greece gations under Article 5 of the EEC of olive oil from EEC countries is unre- Treaty. stricted'.
9. It should be noted that the accusations 13. With respect to exports, the Greek just mentioned, set out in the Commission's Government — although admitting that application to this Court, coincide with all there were restrictions for a certain the accusations made during the pre-liti- time — did not send the Commission the gation phase, in the two letters of formal text of the applicable provisions and the notice and in the two reasoned opinions latter was unable to find out about them in addressed by the Commission to the Greek any other way. Government. Thus, there is no question of any inadmissibility in that respect which might prevent consideration of the substance of the case. 14. Consequently, after completion of the written phase of the procedure, the Court asked the Greek Government, in writing, to explain the administrative formalities and produce the national rules applicable to 1. The question of the administrative imports and exports of olive oil since 1984. formalities and the national provisions relating to imports and exports of olive oil
15. As is explained in the Report for the Hearing, the Government of the Hellenic 10. The first point to be clarified, regarding Republic initially contended that no the subject-matter of the application, relates restrictive measure had been taken since that to the lack of information as to any date, except for restrictions on the provisions or internal instructions on which exportation of certain grades of olive oil for the contested practices are based. a certain period, set out in Letter No 95 of
OPINION OF MR CRUZ VILAÇA — CASE 272/86
10 January 1985 from the Secretary of State application, attack any specific provisions for the Economy to the Bank of Greece. which might be declared incompatible with the applicable Community law.
16. Considering that reply unsatisfactory, the Court reiterated its request on two 22. It must, however, be borne in mind that occasions. the nature of the 'administrative bank practice', as described by the Hellenic Republic in its replies to the Court's questions, inevitably raises the question 17. The Greek Government initially whether it might be linked with problems of admitted the existence of an administrative exchange control. bank practice 'in the framework of the implementation of Regulation No 136/66/ EEC', but did not provide copies of the 23. In fact, the Greek Government informs applicable rules. us that the procedure adopted involves the submission of an application to the Bank of Greece or to a branch thereof so that the transaction can be examined 'from the point 18. In response to further insistence on the of view of the currency problems which it part of the Court, the Greek Government raises', and so that a check can be made as merely explained, in a little more detail, to due compliance with 'obligations what that bank practice consisted of, but it regarding currency' and 'the illegal export still did not comply with the Court's request of currency' can be avoided. that it produce copies of the applicable rules. 24. The information provided is, however, clearly insufficient to enable the problem to 19. At the hearing, the representatives of be analysed from that point of view. the Hellenic Republic, when questioned by the Court, insisted that no codified text existed and that the administrative practices 25. For that very reason, the Commission in question were 'doubtlessly' laid down in informed the Court at the hearing that for various internal documents of the banks. several years it had been trying to establish what provisions were applicable, in order to determine the nature and extent of the exchange controls. 20. It is therefore to be concluded that — apart from the letter from the Secretary of State for the Economy mentioned earlier — it was impossible speci- 26. Thus, in the absence of conclusive fically to identify any rules or administrative information, it had not included that aspect provisions issued by the competent auth- of the Greek import and export formalities orities which served as a basis for the import in its action. and export restrictions reported to the Commission. 27. It must therefore be decided whether or not, on the basis of the other information available, the existence can be proved of 21. For that reason, the Commission did restrictions on imports or exports of olive not, either in its reasoned opinions or in the oil into or from Greece as a result of
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administrative practices contrary to the Community (1 January 1981) and the date Treaty or to secondary law. on which this action was brought (11 November 1986), Greece's only import of olive oil was 2 005 tonnes of refined olive oil from Italy which, moreover, was 28. If it can be proved, no other conclusion immediately exported to the Soviet Union. can be drawn than that the Hellenic Republic has failed to fulfil its obligations under Community law. 32. It also cites an article published in the specialist press in which specific reference is made to statements by the Greek Minister for Commerce to the effect that olive oil 29. The previous decisions of the Court would not be imported into Greece. indicate beyond doubt that mere adminis- trative practices, when duly documented, may be regarded as sufficient to justify a 33. Finally, the Commission mentions declaration, pursuant to Article 169, that a repeated attempts by traders to import Member State has failed to fulfil its obli- Italian olive oil into Greece, especially in gations under the Treaty. 2 1984 and 1985. The applications from the undertakings concerned were implicitly rejected, without explanation.
2. The import restrictions 34. In response to the first allegation, the Hellenic Republic took refuge behind the general statement that imports of olive oil 30. The Commission accuses the Hellenic into Greece are unrestricted and that the Republic of closing its market to exports absence of imports (with the exception of from other Member States and non-member the 2 005 tonnes re-exported to the Soviet countries, in breach of the fundamental Union), despite that fact, was attributable to rules on free movement of goods and those the lack of any need for them, since of the common organization of the market national production was sufficient to cover in oils and fats. domestic demand, and also to the fact, mentioned at the hearing, that prices on the Greek market are lower than those abroad.
31. As evidence in support of that alle- gation, the Commission states (in its reply) 35. It must be stated that the virtual absence that, between the date of the accession of of imports of olive oil over such a long the Hellenic Republic to the European period is, in itself, liable to raise doubts as to the total propriety of the procedures 2 — See the judgment of 22 March 1983 in Case 42/82 Commission v France [1983] ECR 1013 et seq., in which the applied during that period. Court condemned various practices, imputable to the French authorities, restricting imports of Italian wine. See also the judgment of 9 May 1985 in Case 21/84 Commission v France [1985] ECR 1355 et seq., in which there was considered incompatible with Article 30 of the 36. Such doubts are reinforced by the fact Treaty conduct on the pan of the French tax adminis- tration which obstructed, delayed and finally withheld, that the Hellenic Republic's defence is, in without due explanation, the approval sought by a United Kingdom manufacturer for postal franking machines which that respect, largely incompatible with the it wished to export to France. statement — which it made in order to
OPINION OF MR CRUZ VILAÇA — CASE 272/86
justify the prohibition of exports of which it an application had to be submitted to a is also accused — that, for part of the banking establishment which, as the period concerned, the Greek market was Hellenic Republic itself conceded, 'is affected by a slump in production leading to designed not only to enable the person a severe shortage of olive oil. The Greek concerned to proceed with the import trans- Government's argument is thus vitiated by actions … but also to prevent the illegal its own contradictions. export of currency'. The actual documents relating to Alivar's complaints expressly mention submission of the application to a bank, a step to be followed by an ill-defined 37. Nevertheless, the existence of a 'doubt' bureaucratic procedure. In no case was any or a 'presumption' of an irregularity reply to the application received. underlying the absence of imports is not alone a sufficient basis for concluding that the Community rules have been contravened. 42. Those cases of difficulties encountered in import operations were not denied by the Greek Government; the latter merely stated 38. A short sentence in a magazine attri- that it considered them exceptional, and its buting a particular statement to a Greek Agents could only say, at the hearing, that Minister is likewise not conclusive. the relevant departments had told them that the complaints made to the Commission were without foundation but that they had 39. But in my view a different conclusion no evidence to support that assertion. In any may be drawn from the third fact (or set of event, they admitted that those complaints facts) relied upon by the Commission in might have been made as a reaction to the support of its allegation: the existence of 'inflexibility of the Greek administrative specific cases in which, without any expla- machine'. nation, authorization for imports of olive oil from other Member States was not given.
43. It might be said that that practice lacks 40. At the request of the Court, the the degree of consistency and generality Commission produced the documents required by the Court for an administrative showing that numerous fruitless attempts practice to be regarded as a measure had been made in 1984 and 1985 by a prohibited by Article 30 (judgment of 9 trader (the Italian company Alivar) to May 1985 in Case 21/84 Commission v arrange for various consignments of olive France [1985] ECR 1355, paragraph 13). oil to be imported into Greece, in respect of But that is only apparently the case. which the Greek authorities gave no expla- nations to the applicants for its withholding authorization. According to the documents before the Court, the olive oil in question 44. In fact, since only 2 005 tonnes were was not released from the customs ware- imported between January 1981 and houses. November 1986 (which, what is more, did not even reach Greek customs territory, having been immediately re-exported to the 41. The original reason for these Soviet Union), one of the following proceedings related to the requirement that hypotheses must apply:
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either Alivar was the only company to apply prolonged drought in the previous year and to import olive oil during that period, which a late attack of olive-oil fly had given rise to means that (with the exception of the special an acute shortage of extra and fine quality case of the 2 005 tonnes) all the import olive oil on the Greek market, provoking an transactions applied for were prohibited; or excessive increase in prices and disturbing the market to the point where there was evidence of speculative operations. In those circumstances the Greek Government had there were other import applications and all decided temporarily to prohibit the export of them were rejected, which means that of those two qualities of olive oil. the other complaints reported by the Commission were well founded.
49. It was against that background that the 45. In those circumstances, the proven cases Commission attacked the restrictions placed of the obstruction of imports constitute, in by the Hellenic Republic in the way of my opinion, sufficient grounds for a finding exports of olive oil in its first letter calling against Greece. for observations and in its first reasoned opinion, dated 21 October 1985.
46. Thus, although it is not proved that barriers were placed in the way of imports of olive oil from non-member countries (for 50. Subsequently, it came to the which reason the application should be Commission's notice, as a result of fresh dismissed on that point), the information complaints from traders, that the Hellenic before the Court shows that the Hellenic Republic not only continued to prohibit Republic, by preventing imports into Greece exports of extra and fine quality olive oil of olive oil from other Member States, but had also extended the prohibition to all infringed Article 30 of the Treaty and types of edible olive oil and lampante grade Article 3 of Regulation No 136/66/EEC. olive oil for industrial use. Only exports of extra and fine quality olive oil in containers not exceeding five litres were allowed. 3. The export restrictions
51. Therefore, on 10 April and 26 June 47. In February 1985, the Commission, 1986 the Commission sent a further letter alerted by the complaints made and infor- calling for observations and a further mation which came to its notice, sent a telex reasoned opinion, extending its complaints message to the Greek Minister for Agri- to all the abovementioned grades of olive culture requesting explanations concerning oil. the possible existence of restrictions on bulk exports of extra and fine quality olive oil to other Member States and non-member countries. 52. It was also in those broad terms that, with respect to exports, the Commission defined the subject matter of the present 48. By letter of 14 February, the Greek Treaty-infringement proceedings in its Minister informed the Commission that the application.
OPINION OF MR CRUZ VILAÇA — CASE 272/86
53. For the purposes of analysis, it is appro- intervention agencies to form a buffer stock priate to distinguish the two limbs of that of olive oil' and may lay down 'the complaint, as formulated subsequently. conditions governing the formation, management and disposal of the buffer stock'.
54. (a) In the first place, it must be borne in mind that the Greek Government admitted 58. N o power is given to the national auth- that it had temporarily prohibited exports of orities to decide unilaterally — as the Greek olive oil of extra and fine quality. The Government did — to impose restrictions on prohibition, initially for four months as exports on the grounds referred to. from 10 January 1985, was subsequently expressly extended until 10 June of the same year. On 11 July the first export transaction took place, 10 000 tonnes of olive oil being 59. It is not possible for the Greek sent to the Soviet Union. Government to justify, by means of the request contained in the letter of 14 February 1985, the unilateral measures restricting exports which it had put into 55. The reason given for that measure was, operation with effect from 10 January of as we know, the acute shortage of olive oil that year. of the grades in question; the Greek Government also defended itself by accusing the Commission of not acting on the request made by the Minister for Agriculture in his 60. At the hearing, the Commission's letter of 14 February 1985 that the relevant representative also maintained that departments of the Commission, in application of the measure referred to in conjunction with the Greek Ministry of Article 12 of the Regulation was not justi- Agriculture, should consider the possibility fiable in view of the existence of surpluses of finding a solution to that exceptional of olive oil in the possession of intervention problem. agencies in other Member States.
61. In any event, the Hellenic Republic is 56. It must be stated that the Greek not entitled to adopt, in place of the Government's defence is without foun- Council, restrictive or stabilizing measures dation. which only the Council has the authority to adopt.
57. In fact, in order to 'mitigate the effects of harvest fluctuations on the balance 62. Accordingly, it only remains for me to between supply and demand and in this way state that the Hellenic Republic, by prohi- to stabilize consumer prices', Article 13 of biting exports of extra and fine quality olive Regulation N o 136/66/EEC provides for oil between 10 January and 10 June 1985, machinery whereby 'the Council, acting in has failed to fulfil its obligations under accordance with the voting procedure laid Article 34 of the EEC Treaty and under down in Article 43 (2) of the Treaty on a Regulation No 136/66/EEC, in particular proposal from the Commission, may require Article 3 thereof.
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63. (b) The Commission maintains, and 18 November 1986 by Greek and however, that, even after the period Italian traders who had tried in vain to mentioned in the foregoing paragraph, the export edible olive oil in bulk from the Hellenic Republic continued to prohibit Hellenic Republic. exports of olive oil, extending the prohibition to all qualities of the product, with the exception of edible olive oil in packs not exceeding five litres and olive- 68. In my opinion, the evidence produced residue oil in any form. in these proceedings by the Commission does not, unfortunately, enable firm conclusions to be drawn concerning the problem under discussion.
64. The Commission bases its accusation, in the first place, on a comparison of the stat- istics provided by Eurostat concerning 69. The Eurostat statistics, besides not quantities exported in containers of less than being wholly conclusive when compared five litres and those relating to exports as a with other data relating to the other whole. Member States, say nothing about the causes of the relatively low figures for exports from Greece.
65. It also asserts that the fact that, during the 1985-86 season, 65 000 tonnes of olive 70. The Greek Government has also given oil in bulk were exported proves that a its own view of those causes, linking them quota was imposed and that there was State with the eating habits of the Greek people, intervention in the olive oil market, who have the highest per capita particularly since, with the exception of consumption of olive oil in the Community 10 000 tonnes (exported by private traders), (20 kg), absorbing nearly all domestic all those quantities were exported through production. the Central Cooperative Association of Olive Oil Producers and, to a large extent, in fulfilment of contracts between States. 71. As regards the fact that 8 5 % of the exports of olive oil in bulk passed through the Elaiourgiki (cooperative association), the Greek Government explains that it is the 66. In the Commission's view, that confirms largest olive oil producing cooperative and a number of articles which appeared in a has large stocks which it was able to export specialized magazine, and the observations without difficulty. of a group of Commission officials who visited Greece in September 1985.
72. Furthermore, the press articles mentioned can be regarded only as serving to sound an alert, not as conclusive 67. In the alternative, the Commission evidence; likewise, the reference to the relied upon and produced a list of 12 information obtained by the group of complaints made between 9 January 1985 Commission officials is not backed by any
OPINION OF MR CRUZ VILAÇA — CASE 272/86
evidence to support the impressions sufficient grounds for reversing the burden obtained, not even a summary report. of proof.
79. Hence, as far as the alleged restrictions 73. Finally, the complaints made by the on exports after 10 June 1985 are traders are similarly not supported by the concerned, I am of the opinion that the necessary firm documentary evidence to action should be dismissed. show whether or not they are well founded. 4. Breach of the duty of cooperation laid down in Article 5 of the EEC Treaty 74. The foregoing findings reflect the diffi- culties encountered by the Commission in 80. The Commission considers that the investigating and proving the infringement Greek Government, by refusing or failing to of which indications had come to its notice. provide the Commission with the infor- mation requested, and by excessively delaying the transmission of such infor- mation, has failed to fulfil its obligations 75. The fact is that those difficulties were under Article 5 of the EEC Treaty. largely caused by a lack of cooperation on the part of the Greek authorities, as we shall see in due course. 81. In fact — as is already apparent from what I have said so far — the conduct of the Hellenic Republic appears deserving of criticism. It should be borne in mind that on 76. It is also true that the circumstances 13 August 1984 the Commission sent to surrounding the present application seem to Greece a telex message requesting infor- indicate that something is amiss as regards mation on the restrictions on imports of the Hellenic Republic's understanding of olive oil and, in particular, on the two the requirements of Community law and specific cases of refusal to allow imports, compliance therewith. together with details of the administrative formalities on the basis of which the restrictions had been introduced; in the absence of any reply, the request was repeated on 4 October and 28 November 77. Furthermore, the representatives of the 1984. Greek Government admitted that exporters may be entitled to complain about problems connected with the bureaucracy of the 82. Not until eight months after the first Greek administration. telex message — on 4 April 1985 — did the Greek authorities reply, merely stating that the importation of olive oil into Greece from EEC countries was unrestricted. 78. But even that admission cannot be relied upon for a declaration of infringement based on mere indicia, 83. The lack of a spirit of cooperation on supported by evidence whose reliability has the part of the Greek authorities was again yet to be proved. It does not seem to me evident when it was asked, repeatedly, by therefore that, in the present case, there are the Court of Justice to explain the adminis-
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trative formalities and to provide copies of to the period mentioned in the second the national provisions on the importation reasoned opinion. and exportation of olive oil. 86. Furthermore, the Greek Government's 84. Not only did the Greek Government reference to the division of powers between never provide copies of those the various departments of State cannot be provisions — it also failed to clarify the regarded as sufficient grounds to exonerate origin of the obligations imposed on it. importers and exporters under the 'adminis- trative bank practice' and the manner in 87. I therefore propose that, as it did in the which the persons concerned were made judgment of 24 March 1988 in Case aware of them. 240/86, 3 the Court should declare the 85. The same lack of cooperation was conduct of the Hellenic Republic to be in manifest with respect to exports: thus, no breach of the duty of cooperation laid down explanation was provided regarding the in Article 5 of the EEC Treaty, by virtue of complaints lodged after the period during which the Member States must facilitate the which the Greek Government achievement of the Community's tasks and acknowledged having prohibited exports, take all appropriate measures to ensure and no copy of any internal regulation or fulfilment of the obligations arising out of administrative provision was produced to the Treaty or resulting from action taken by the Commission or the Court with respect the institutions.
5. Conclusion
88. I propose t h a t the C o u r t should declare t h a t the Hellenic Republic has failed to fulfil its obligations u n d e r Articles 30, 34 a n d 5 of the E E C T r e a t y a n d u n d e r Regulation N o 1 3 6 / 6 6 / E E C o n the establishment of a c o m m o n o r g a n i z a t i o n of the m a r k e t in oils and fats, in particular Article 3 thereof, in so far a s :
(a) it prevented imports of olive oil from a n o t h e r M e m b e r State by requiring, by w a y of administrative b a n k practice, the submission of an application w h i c h , w i t h o u t giving any explanation, it failed to g r a n t ;
(b) it prohibited exports of extra a n d fine quality olive oil, at least between 10 J a n u a r y and 10 J u n e 1985;
3 — Commiision v Hellenic Republic [1988] ECR 1835.
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(c) by omitting to provide full information regarding the alleged facts or to provide copies of the applicable national provisions, it failed in its duty of cooperation with the institutions which is incumbent upon the Member States with a view to the attainment of the objectives of the Treaty.
89. For the rest, the action should be dismissed.
90. Although the applicant has not succeeded in all its submissions, that is due in large measure to a lack of cooperation on the part of the Hellenic Republic, and I therefore propose that the Court should, pursuant to Article 69 (3) of the Rules of Procedure, order the defendant to pay the costs in their entirety.