C-48/96
ECLI:EU:C:1997:538
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OPINION OF MR COSMAS — CASE C-48/96 P
OPINION OF ADVOCATE GENERAL COSMAS delivered on 13 November 1997 *
Summary
876 I — Preliminary observations I- 2 -2877 II -Facts I III — Forms of order sought by the parties in the appeal proceedings I - 2880 I 288 IV — Pleas inlaw in support of the appeal - 0 2880 A — Violation of the right to full legal protection I -
B — Misapplication of Article 173, fifth paragraph, of the Treaty I - 2883
C — Breach of the obligation to state reasons I - 2885 (a) Scope of the obligation to state reasons I - 2886 (b) Misapplication of the Thermie Regulation I - 2888 (c) Mistake with regard to the facts I-2889 D — Infringement of the appellant's right to be heard I - 2891 4 E — Misuse of powers I-289 F — Infringement of Articles 175, third paragraph, 173, fourth paragraph, and 176 of the Treaty I-2895
V — Conclusion I-2896
I — Preliminary observations Groothusen GmbH8iCo. Betriebs KG ('the appellant') against the judgment delivered on 13 December 1995 by the First Chamber of the Court of First Instance of the European 1. In this case the Court has been asked to 1 Communities ('the contested judgment'). give judgment on the appeal by Windpark
1 — Case T-109/94 Windfark Groothusen v Commission [1995] * Original language: Greek. ECB. II-3007.
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2. The Court of First Instance dismissed, of the European Communities. For the selec first, the application for annulment of the tion of projects with a total cost exceeding Commission's decision of 13 January 1994 ECU 500 000, the Commission is assisted by refusing Windpark the financial support a committee composed of the representatives which it had requested in the framework of of the Member States ('the Thermie Com the Thermie programme for 1993 and, sec mittee'), which delivers an opinion on draft ondly, the application for an order that the measures which are submitted to it by the Commission take a new decision. Commission. If the measures adopted by the Commission are not in accordance with the Thermie Committee's opinion, the Commis sion must immediately communicate them to the Council. Pursuant to Article 10(1) of the Thermic Regulation, the Council may then II — Facts take a different decision from the Commis sion.
3. The following facts emerge from the con tested judgment (paragraphs 1 to 16):
4. On 29 June 1990 the Council adopted 6. For 1993, the Commission published in Regulation (EEC) No 2008/90 concerning the Official Journal 3of 16 July 1992 a com the promotion of energy technology in munication on the provision of financial sup Europe (Thermie programme) 2('the Ther port to projects for the promotion of energy mie Regulation'). The Thermie programme technology (Thermic Programme). It invited covers a total of 17 sectors of application, interested parties to submit, before 1 Decem including wind energy. ber 1992, projects for possible selection to receive financial support in 1993. It also specified, in accordance with Article 8(2) of the Thermie Regulation, the sectors to be given priority, that is to say, 'low energy, low CO2 buildings' and 'integrated urban traffic
management systems'. In addition, the Com 5. In accordance with Article 8 of the Ther mission stated that a document giving details mie Regulation, the procedure for the selec of the procedure for the submission of pro tion of eligible projects is initiated by the posals and information on the eligibility con Commission, which must publish an invita ditions, selection criteria and other relevant tion to submit projects in the Official Journal information could be obtained from it.
2 — OJ 1990 L 185, p. 1. 3 — OJ 1992 C 179, p. 14.
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7. The appellant is a company whose object tested judgment, this communication reads is to construct and operate a wind park in as follows: the Groothusen area, near Emden in Ger many.
'The Commission has recently decided as 8. On 27 November 1992 the appellant sub follows: mitted to the Commission an application for aid of ECU 1 933 495 for the construction of a wind park.
— an amount of ECU 129 182 448 has been awarded under the Thermie programme as financial support to 137 projects for the promotion of energy technology 9. The Commission received approximately (Annex I), 700 proposals. In March 1993 the Directorate-General for Energy drew up a document appraising these projects. On 5 April 1993 they were examined by the tech nical committee for wind energy and on 3 and 4 June 1993 by the Thermie Commit — a reserve list of 49 replacement projects is 4 tee. established (Annex II).
10. On 19 July 1993 the Commission decided to grant financial support to a total Copies of Annexes I and II may be obtained of 137 projects. By the same decision it drew on request in writing to: ...' up a 'reserve list' of 49 replacement projects. Of the 52 projects in the field of wind energy, 11 were granted financial support and eight were entered on the reserve list. A brief communication concerning this decision was published in the Official Jour 5 nal of 24 July 1993. As stated in the con 11. On 5 August 1993 the Commission informed the appellant that its project had been placed on 'a supplementary list of 4 — The Commission thus established, pursuant to Article 9(2) in projects which may be granted financial sup conjunction with Article 10(1) of the Thermie Regulation, the priorities for invitations to submit projects in accordance port before 31 December 1993 if sufficient with the so-called 'committee' procedure. budgetary credits become available, particu- 5 — OJ 1993 C 200, p. 4.
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larly if some of the projects which have 'review carefully [your] notice of January 13, already been granted financial support have 1994 and the selection procedure which pre not been carried out'. According to the ceded it'. The Commission replied by letter annex to that letter, the maximum financial of 16 March 1994, confirming its letters of 5 support for the project had been fixed at August 1993 and 13 January 1994. ECU 918 028. The Commission emphasised that it was in no way bound by the fact that the project had been placed on the supple mentary list and disclaimed all responsibility for any consequences which might ensue from a definitive decision not to grant the appellant financial support. 15. On 17 March 1994 the appellant brought an action before the Court of First Instance seeking the annulment of the Commission's decision of 13 January 1994 and an order directing the Commission to take a new decision in accordance with the legal prin ciples laid down by the Court of Justice, 12. By fax of 9 August 1993, addressed to with an order for costs against the Commis the Commission, the appellant requested fur sion. ther information and authorisation to com mence work. The European Communities Liaison Office of the Land of Lower Saxony thereupon informed the appellant that its project was on the reserve list and that a decision concerning possible financial sup port would be taken some time after the 16. The Commission requested the Court of beginning of September 1993. First Instance to dismiss the action as unfounded and to order Windpark to pay the costs.
13. By letter of 13 January 1994 to the appellant, the Commission stated that the 17. Finding that a distinction had to made appellant's project could not be granted between the Commission's decision of 19 financial support in 1993 owing to the lack July 1993 and that in the Commission's let of appropriate budgetary credits. ter of 13 January 1994 to the appellant, the Court of First Instance found that the appel lant's action was admissible only in so far as it contested the latter decision (paragraph 17 et seq.). In addition, for the reasons set out in the judgment, the Court dismissed the appellant's three pleas in law, namely: (1) 14. The appellant responded by letters of 9 failure to comply with an essential proce and 23 February 1994, expressing its disap dural requirement in that the decision was pointment and asking the Commission to not accompanied by an adequate statement
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of reasons; (2) breach of the fundamental IV — Pleas in law in support of the appeal rules of law governing the application of the EC Treaty in that the appellant's right to a hearing was infringed; and (3) misuse of powers in that its application was refused for no apparent reason. 20. The appellant submits that the judgment of the Court of First Instance should be set aside on the basis of six pleas in law: (a) infringement of the right to full legal protec tion, (b) misapplication of Article 173, fifth paragraph, of the Treaty with regard to the III— Forms of order sought by the parties date from which the period prescribed for in the appeal proceedings initiating proceedings begins to run, (c) mis application of Article 190 concerning the Commission's obligation to state reasons for its decision, (d) infringement of the appel lant's right to be heard, (e) misuse of powers and, finally, (f) infringement of Articles 175, third paragraph, 173, fourth paragraph, and 18. The appellant brought this appeal against 176 of the Treaty. the judgment of the Court of First Instance by application lodged at the Registry of the Court of Justice dated 19 February 1996, asking the Court of Justice: (a) to set aside the contested judgment of 13 December A — Violation of the right to full legal pro- 1995, (b) to annul the decisions of the Com tection mission (hereinafter 'the respondent') refus ing the application for financial support on the basis of the Thermie Regulation (the appellant having been informed of those decisions by letter from the Directorate- 21. Under its first plea in law the appellant General for Energy of 13 January 1994, in claims that the judgment should be set aside conjunction with the letter of 5 August because the Court of First Instance violated 1993), (c) to order the respondent to take a its fundamental right to full legal pro new decision in the appellant's favour and to 6 tection. In particular, it contends that grant it financial support of ECU 918 028 in the Court of First Instance was wrong to accordance with the principles of law laid make a distinction (see paragraph 22 of down by the Court and, finally, (d) to order the contested judgment) between, on the the respondent to pay the costs of the first one hand, the Commission's decision of instance and the appeal proceedings. 19 July 1993 granting financial support of
6 — As enshrined in the combined provisions of Article F(2) of the Treaty on European Union, Article 6 of the European Convention for the Protection of Human Rights and Funda mental Freedoms, and Article 173, fourth paragraph, of the Treaty. In addition, the appellant relies on the order of 29 19. The respondent asks the Court (a) to January 1997 in Case C-393/96 P(R) Antonissen v Council and Commission [1997] ECR 1-441, paragraph 36, and the dismiss the appeal and (b) to order the appel judgment in Case C-395/95 P Geotronics v Commission lant to pay the costs of the proceedings. [1997] ECR 1-2271.
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ECU 129 182 448 to 137 projects for the 23. The abovementioned Commission deci promotion of energy technology (Annex I) sions, that is to say, (1) the decision of 19 and drawing up a reserve list of 49 replace July 1993 granting financial support to 137 ment projects (Annex II) and, on the other projects for the promotion of energy tech hand, the decision in the letter of 13 January nology, which did not include the appellant's 1994. Because of this distinction, the appel project, and (2) the decision in the letter of lant claims, that the Court of First Instance 13 January 1994 are, as described and cor examined the merits of its application only in rectly characterised in the judgment, two so far as it was directed against the decision decisions which are distinct from each other. of 13 January 1994 whereas, in so far as it was directed against the decision of 19 July 1993, the Court dismissed the application on the ground that it was out of time, which means that the Court did not examine the grounds of annulment put forward in respect of the latter decision and the appellant was thereby deprived of legal protection. 24. Furthermore, in so far as it has been shown that the appellant had knowledge of the first decision (dated 19 July 1993) on 5 August 1993, the action brought on 17 March 1994 was out of time, as I shall show in detail below.
22. The Court of First Instance took the view (paragraph 23) that the Commission's decision of 19 July 1993 was a definitive decision so far as concerned the examination and selection of projects to be supported under the 1993 Thermie programme. It accepted that no re-examination of the 25. The Court of First Instance therefore projects was undertaken at the end of 1993 rightly considered that there were two dis 7 and the only question which arose at that tinct decisions of the Commission and that stage was whether there were still funds Windpark's action was admissible only in so available or whether the projects which had far as it was directed against the later been granted financial support had all been decision contained in the letter of 13 January carried out and the available credits thereby 1994, and was out of time in so far as it was exhausted. It also observed (paragraph 23) directed against the decision of 19 July 1993 that, although the Commission stated in its refusing the appellant's application for finan letter to the appellant of 5 August 1993 that cial support for its project, on the ground it reserved the right to amend its decision, subject to the availability of budgetary cred its, it had to be concluded at that time that 7 — It should be noted that this distinction was originally formu the appellant's project was not one of the lated by the appellant itself, as appears from paragraph 17 of the judgment: 'in its application, the [appellant] sought only 137 projects selected and, consequently, the annulment of the Commission's decision of 13 January 1994. However, the [appellant] indicated in its reply that, in so far Commission had in effect refused the appel as its complaints relate to earlier decisions taken by the lant's application for financial support. Commission, its action should also be regarded as contesting those decisions, particularly the decision of 19 July 1993'.
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that the application was unjustified. Conse responsibility for any consequences which quently the submissions to the contrary might ensue from a definitive decision not to must be rejected as unfounded, while the grant the applicant financial support.' plea in law must be dismissed as inadmissible in so far as it is sought to obtain a review of 8 the findings of fact by the court of trial.
27. It is also clear from paragraph 8 of the judgment that the appellant knew, ever since the decision of 5 August 1993, that credits might not be available and that it had to challenge the decision, which damaged its 9 interests. Consequently these submissions 26. The appellant's assertion that the Com merely repeat the appellant's assertions based mission 'was only prepared to grant financial on facts previously submitted to the Court support for a maximum of ECU 918 028' of First Instance, which found them to have must also be rejected for two reasons. The no basis, and in essence the appellant is ask first, is that this assertion relates to the ing for them to be re-examined, which is
10 appraisal of the facts, as found by the court inadmissible in the context of an appeal. of trial. The second is that the Court of First Instance expressly stated the opposite, as the Commission correctly points out. In particu lar, the Court of First Instance stated (para graph 8) as follows: 'On 5 August 1993 the Commission informed the [appellant] that its project had been placed on "a supplementary list of projects which may be granted finan
28. The first plea in law must therefore be cial support before 31 December 1993 if suf dismissed in its entirety. ficient budgetary credits become available, particularly if some of the projects which have already been granted financial support 9 — On this point the Court of First Instance also observed as have not been carried out". According to an follows (paragraph 27): 'The [appellant] had been informed annex to that letter, the maximum amount of of the existence of the decision selecting the projects to be awarded financial support for 1993 since August 1993, when financial support for the project had been it received the Commission's letter of 5 August 1993.
In response to an oral question put to it by the Court, the fixed at ECU 918 028. The Commission [appellant] admitted that at the time it had neither sought the emphasised that it was in no way bound by full text of the decision nor an individual explanation, inter alia since it erroneously considered its situation to be prom the fact that the project had been placed on ising. At the hearing, the applicant also explained that it had not understood that the letter of 5 August 1993 amounted to the supplementary list and disclaimed all a refusal, since the Commission had told it that its project had been placed on a "supplementary" list. On the contrary, it believed that financial support was not ruled out.
The Commission, for its part, asserted at the hearing that it would have provided an individual explanation if the [appel lant] had expressly ashed for one.' 8 — See the judgments in Case C-283/90 P Vidrányi v Commis- 10 — See, for example, the judgment in Case C-73/95 P Viho v sion [1991] ECB. 1-4339, paragraph 12, and Case C-136/92 P Commission [1996] ECR 1-5457, paragraphs 25 and 26, and Commission v Brazzelli Lualdi and Others [1994] ECR the orders of 26 April 1993 in Case C-244/92 P Kupka- 1-1981, paragraph 66, and the orders of 17 September 1996 in Floridi v ESC [1993] ECR 1-2041, paragraphs 7 to 11; of 26 Case C-19/95 P San Marco v Commission [1996] ECR September 1994 in Case C-26/94 P X v Commission [1994] 1-4435, paragraph 40, and 16 September 1997 in Case ECR 1-4379, paragraphs 10 to 13, and Koelman v Commis- C-59/96 P Koelman v Commission [1997] ECR 1-4809, para sion, cited in footnote 8, paragraph 52. graph 31.
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B — Misapplication of Article 173, fifth para- notified to the appellant either, time began to graph, of the Treaty run from the moment at which it learned of the decision, that is to say, from the letter of 13 January 1994. It considers that Article 173, fifth paragraph, of the Treaty must be interpreted strictly and therefore the period prescribed for challenging a measure begins 29. Under its second plea in law, the appel to run at the time when a person who is lant claims that the Court of First Instance individually concerned has actual knowledge misapplied Article 173, fifth paragraph, of of it, not when he had the opportunity to the Treaty. More particularly, it contends learn of it. According to the appellant it is in that, even if it were accepted that, by the conformity with the rule of law not to decision of 19 July 1993, the Commission require of the person concerned that he rejected the entire application for financial endeavour to explore the decision and the support, the two-month period for bringing grounds on which it is based, but instead to proceedings was complied with as a result of 1 send the decision to him at his request. 1 the registration of the application on 17 March 1994. In support of that assertion, the appellant also claims that there is a contra diction in the statements of the Court of First Instance and specifically between para graphs 9 and 28 of the judgment.
32. Now let us now consider whether there was a misapplication of Article 173, fifth paragraph, of the Treaty, that is to say, what was the beginning of the period allowed for 30. The appellant points out that, as stated challenging the Commission's decision. in paragraph 9 of the contested judgment, it had requested further information by fax of 9 August 1993. The Commission did not reply. According to the appellant, the Com mission ought to have realised from the fax that the appellant had not understood the exact meaning of the letter of 5 August 1993 33. It should first be noted that the Court of and the Commission ought to have replied in Justice has held on several occasions that, order to explain the precise context of its failing publication or notification, the period decision. The first reply from the Commis for bringing an action can begin to run only sion to the appellant's request was given in from the moment when the party concerned the letter of 13 January 1994, which is there acquires precise knowledge of the content of fore the date on which the period prescribed for initiating proceedings began to run.
11 — On this point the appellant refers to the judgment in Case C-143/95 P Commission v Sociale and Others [1997] ECR I-1. It also relics on the judgment in Case C-84/94 Uniled Kingdom v Council [1996] ECR 1-5755, paragraph 19, in which the Court of Justice referred to its settled case-law that what is merely Council practice (and therefore, accord ing to the appellant. Commission practice also) cannot 31. In addition, the appellant claims that, as derogate from the rules laid down in the Treaty, and cannot therefore create a precedent binding on the Community the decision was not published and was not institutions with regard to the correct legal basis.
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the decision in question and of the reasons decision to exclude its project from the 137 on which is based, in such a way as to enable projects which were awarded financial sup it to exercise its right of action. The Court port in 1993'. has also consistently held that 'it is for the party which has knowledge of a decision concerning it to request the whole text 13 thereof within a reasonable period'.
34. In view of this settled case-law, I con sider that the Court of First Instance was not 14 mistaken in law when it found that the 36. In paragraph 9 the Court of First appellant was aware from August 1993 of Instance stated that 'by fax of 9 August 1993, circumstances which ought to have led it to addressed to the Commission, the [appellant] take action, as it had been informed that its requested further information', but that it project had been placed on a supplementary did not ask for the full text of the decision of list and that this entailed no obligation on 19 July 1993. Furthermore, the appellant did the Commission's part (paragraph 8). not react to the communication in the Official Journal of the European Communi- 15 ties, nor did it ask for an individual expla nation of the reason for which its project was included on the supplementary list but could only receive financial support 'if suffi cient budgetary credits become available, 35. With regard to the existence of contra particularly if some of the projects which dictions in the contested judgment, there is have already been granted financial support in my opinion, as the Commission rightly 16 have not been carried out'. In addition, the observed, no contradiction between para Court of First Instance expressly states graphs 9 and 28. More specifically, in para (paragraph 9) that 'the [appellant] requested graph 28 the Court of First Instance found further information and authorisation to that the appellant 'did not take the opportu commence work'. In other words, although nity either to request the full text or an indi the appellant was aware of the existence of vidual explanation with respect to the the decision of 19 July 1993, which allegedly damaged its interests, it did not ask for the 17 text of the decision. 12 — See, for example, the judgments in Case C-180/88 Wirtschaftsvereinigung Eisen- und Stahlindustrie v Com- mission [1990] ECR I-4413, paragraph 22; Case 236/86 Dillinger Hüttenwerke v Commission [1988] ECR 3761, paragraph 14, and Commission v Socarte, cited in footnote 11, paragraph 31, and also my Opinion in Case C-309/95 15 — Cited in footnote 5. Commission v Council, pending, paragraph 30 et seq. 16 — Paragraph 8 of the contested judgment. 13 — Sec, for example, the judgments cited in footnote 12, 17 — As the Court of First Instance admits (paragraphs 3 and Wirtschaftsvereinigung Eisen- und Stahlindustrie v Com- 48), the Commission's services had available a form, cited mission, paragraphs 22 to 24, and Dillinger Hüttenwerke v by the appellant, which contains, first, details of the pro Commission, paragraph 14, and the order of the Court of cedure for the submission of proposals and, second, infor Justice of 5 March 1993 in Case C-102/92 Ferriere Acciairie mation on the eligibility conditions, selection criteria and Sarde v Commission [1993] ECR I-801, paragraph 18. other relevant information, and adds that no interested party was permitted to incur expenditure before the Com 14 — See paragraph 27 of the judgment, reproduced in footnote mission takes a decision on financial support. 9.
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37. Consequently the appellant's submis 40. Moreover, the appellant contends that sions concerning contradictory reasoning in the introduction to the Thermie report does the contested judgment must be rejected as not distinguish between dissemination unfounded also as regards this part of the projects under Article 2 of the Thermie plea in law under consideration. Regulation and targeted projects under Article 4. The appellant adds that no such distinction became apparent in the procedure before the Court of First Instance or in the budget programme. It claims that in any case, even if the budget funds available after 19 July 1993 had been granted to targeted projects, the Commission ought to have compared these projects with those of the 38. The second plea in law must therefore be appellant for the purpose of making a dismissed in its entirety. decision and ought to have stated the reasons for its choice.
41. The appellant also observes that the grounds of the Commission's decision of 19 C — Breach of the obligation to state reasons July 1993 rejecting its application in its entirety remain unknown and that this justi fies annulment of the decision. It also claims that the Commission's letter of 13 January 1994 does not give the full text of the decision and that the reason for the decision, that is to say, exhaustion of the credits, is erroneous because until 31 December 1993 the Commission had ECU 10 817 552 avail 39. Under its third plea in law, the appellant able for certain targeted projects. From this asserts that the 1993 budget for the Thermie the appellant concludes that the Court of programme was ECU 174 000 000, of which First Instance ought to have found that the ECU 129 000 000 was available for projects decision contained in the letter of 13 January for the promotion of energy technology. The 1994 did not state the reasons on which is appellant then refers to the introduction to was based. the Thermie report, which shows that in 1993 financial support totalling ECU 140 000 000 was granted to 139 projects, while ECU 34 000 000 was allocated to accompanying measures. As the decision of 19 July 1993 granted approximately ECU 42. In support of its contention that the 129 000 000 to 137 projects, the appellant Commission's assertion that all the credits concludes that approximately ECU available after 19 July 1993 for the Thermic 11 000 000 was made available without being programme were granted to certain targeted allocated to specific projects. projects is mistaken, the appellant refers to a
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letter of 29 April 1996 from Commissioner decision of 13 December 1993 does not Papoutsis to the European Parliament. 8 state the reasons on which it is based and constitutes a misuse of powers.
45. I shall consider the appellant's submis 43. The appellant adds that, as the introduc sions concerning this plea in law in sequence tion to the Thermie report shows that, con and shall divide them into three parts. First, I trary to the decision of 19 July 1993, the shall deal with the submissions concerning Commission granted financial support total the extent of the Commission's obligation to ling ECU 2 189 356 in the wind energy sec state the reasons for its decision of 13 Janu tor to four projects on the supplementary ary 1994 and, next, the manner in which the list, that is to say, not targeted projects, with Court of First Instance applied the provi out the participation of the Thermie Com sions in question. I shall then look at the mittee, the Court of First Instance was question of a mistake in law with regard to wrong in finding that this amount formed the application of the Thermie Regulation by 1 part of those granted to targeted projects. 9 the Court of First Instance, which refers to targeted projects receiving financial support and, finally, I shall examine the question whether the Court of First Instance made a mistake in the presentation of facts and in its assessment of a fundamental factual alle gation, which would mean that the judgment must be set aside. 44. The appellant further submits that, in view of Mr Papoutsis' letter to the European Parliament, the letter of 13 January 1994 constituted notification to the appellant of the decision of 13 December 1993, which is not in the file. For this reason also, the (a) Scope of the obligation to state reasons
18 — According to the appellant, this letter bears the reference 0627/96 FR. As cited by the appellant, the letter states as follows: (a) after a favourable opinion from the Thermie Committee, the Commission, by decision of 19 July 1993, made available ECU 129 180 000 for the construction of projects promoting technologies in the energy sector, (b) In the decision of 13 December 1993 the Commission made 46. The plea in law concerning breach of the available ECU 12 980 000 for the implementation of obligation to state reasons is admissible only projects, (c) In 1993 ECU 138 000 000 were made available for the implementation of projects, (d) Subsequently, by in so far as it is directed at the judgment of decision of 13 December 1993, three projects on the supple mentary list and three projects on which the Member States the Court of First Instance, not at the had agreed in the course of the written procedure provided decision of the Commission which is at for by Article 10(1) of Regulation No 2008/90 were given financial support in lieu of the projects on the original list of abandoned projects.
19 — At the hearing the appellant stated that, in addition to the 137 projects for which financial support was originally granted by the decision of 19 July 1993, a total of 14 20 — In its reply the appellant, no doubt in error, refers to the projects were finally granted support. decision of 13 July 1993.
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issue. However, in examining this plea it is reasons given, and the need for information necessary, as I have said with regard to the of the undertakings to whom the measure is previous point, to consider the scope of the addressed or of other parties to whom it is of obligation to give full and correct reasons for direct and individual concern within the the Commission's decision. I should like to meaning of the second paragraph of Article make the following observations in this 173 of the Treaty'. respect.
47. First, under Article 190 of the Treaty, acts adopted by the Community institutions must state the reasons on which they are based. However, as the Court has consis 21 tently held, the statement of reasons required by Article 190 of the Treaty 'must be appropriate to the nature of the measure 49. In the present case, the mere fact of par in question. It must show clearly and ticipating in a programme for financial sup unequivocally the reasoning of the institu port, such as the Thermic Programme, by tion which enacted the measure, so as to submitting an application for such support, inform the persons concerned of the justifi gives rise to no rights or even advantages for cation for the measure adopted and to enable the applicant, provided always that the selec the Court to exercise its powers of review. It tion procedure laid down in each case was has also been held that the statement of rea followed in full and that the application was sons for a measure is not required to specify examined objectively and impartially. This the matters of fact or of law dealt with, pro also applies where such an application is vided that it falls within the general scheme refused, which leaves unchanged the legal of the body of measures of which it forms situation of the person concerned. This part.' assuredly affects the obligation to state suffi cient reasons. Fulfilment of that obligation presupposes that the applicant was informed that his proposal had been examined and had been the subject of a decision under the pre scribed procedure. The appellant's claim that 48. The Court has also consistently held 22 the statement of reasons must also show all that 'the requirements to be satisfied by the the reasons for which other proposals were 23 statement of reasons depend on the circum preferred to its own is totally unfounded. stances of each case, in particular the content From this viewpoint, therefore, the contested of the measure in question, the nature of the judgment suffers from no defect which would justify setting it aside.
21 — Sec, for example, Case C-353/92 Cresce v Comicii [1994] ECR 1-3411, paragraph 19; Joined Cases C-63/90 and C-67/90 Portugal and Spain v Council [1992] ECR I-5073, 23 — The disclosure of such comparisons with other undertak paragraph 16, and Case C-465/93 Aliatila Fruchthandelsge- ings is perhaps also a breach of the obligation of profes sellschaft and Others [1995] ECR I-3799, paragraph 16. sional secrecy within the meaning of Article 214 of the Treaty: sec Case 53/85 AKZO Chemie v Commission [1986] 22 — Sec Joined Cases 296/82 and 318/82 Netherlands and Leen- LCR 1965, paragraphs 26 to 28, and also Netherlands and warder Papierwarenfabriek v Commission [1985] ECR 809, Leeuwarder Papierwarenfabnek v Commission, cited in paragraph 19. footnote 22, paragraph 27.
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50. I consider that the Commission's obliga published in the Official Journal of the Euro- tion duly to state the reasons for the decision pean Communities. of 13 January 1994, which was originally val idly contested before the Court of First Instance, was also fulfilled because the present case relates to a selection procedure with a large number of participants, and the selection criteria were known in advance by 51. In view of the foregoing, I consider that those concerned. Furthermore, an advisory the Court of First Instance was not mistaken committee (the Thermie Committee), which in law, since it found (paragraph 45) that the was required to give a favourable opinion on Commission's letter of 13 January 1994 to a grant of financial support to only some of the appellant contained a sufficient and the projects, took part in the procedure for proper statement of reasons, namely, the granting such support. In principle the Com exhaustion of the funds available at that time, mission had to follow the Committee's opin so that no aid could be granted for the appel ion in accordance with the Thermie Regu lant's project. The Court of First Instance 24 lation (Article 10(1)), and the results of the therefore rightly rejected as unfounded the competition were published, which obviates appellant's plea alleging inadequacy of the any need for an individual statement of statement of reasons in so far as it concerned detailed reasons for the decision to reject an the letter of 13 January 1994. 25 application for financial support. Clearly this does not deprive applicants of the right to request the results of the selection pro cedure, in accordance with the notice
(b) Misapplication of the Thermie Regu 24 — Where the authority which makes the decision has a discre tion, the obligation to state reasons is stricter than where lation the authority has a non-discretionary power: see the Opin ion of Advocate General Lagrange in Case 66/63 Nether- lands v High Authority of the ECSC [1964] ECR 533. 25 — I would recall that the Court has stated that, where an offi cial is recruited following a competition, the administration is not obliged to give the reasons for its decision in relation to the unsuccessful candidates: sec Case 16/64 Rauch v Commission [1965] ECR 179. In the judgment in Case 195/80 Michel v Parliament [1981] ECR 2861, paragraph 27, concerning the reasons for the decisions of a selection board in competitions with a large number of candidates, the Court has also stated that a selection board may, as a 52. In this connection the Commission first stage, be allowed to send candidates information only on the criteria and the results of selection, and provide observes that the four projects which detailed explanations only at a later stage and to candidates received financial support by way of deroga who expressly request them. See Case 89/79 Bonu v Coun- cil [1980] ECR 553, paragraph 6; Case 225/82 Verzyck v tion from the decision of 19 July 1993 were Commission [1983] ECR 1991, paragraphs 16 and 17; and Case 225/87 Belardinelli and Others v Court of Justice placed on the supplementary list after the [1989] ECR 2353, paragraph 7. See also the judgment in opinion of the Thermie Committee and, Case C-213/87 Gemeente Amsterdam and VIA v Commis- sion [1990] ECR I-221, in which the Court held that 'the unlike the appellant's project, provided for conciseness of the statement of reasons for the decision whereby the Commission refused assistance from the Euro 'an association of at least two independent pean Social Fund for a vocational training foundation is an undertakings established in different Member unavoidable consequence of the processing by computer of several thousand applications for assistance upon which the States'. Consequently, they were to be given Commission must adjudicate within a short period. A more detailed statement of reasons in support of each individual preference under Article 6(3)(a) of the Ther decision would therefore be likely to compromise the ratio mie Regulation. The Commission further nal and efficient allocation of financial assistance from the Fund'. submits that the nature of the appellant's
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project, which was a dissemination project, was whether there were still budgetary funds did not permit it to be financed with funds available or whether the projects which had 27 made available for 'specific projects'. Fur been granted financial support had all been thermore, according to the Commission, the carried out and the available credits thus distinction between projects receiving finan exhausted. Although funds were indeed still cial support under Articles 2 and 4 of the available under the budget for the Thermie Thermie Regulation follows from that regu programme in July 1993 — after the decision lation itself, and the classification of a project had been taken to finance certain projects — under one of those articles cannot be ques according to the Commission, they had been tioned. awarded during the last months of 1993 to certain "targeted" projects. Consequently, at the end of 1993 there were no longer any funds available'.
53. According to the Commission, the decision of 13 December 1993, which related to targeted projects, was preceded by an invitation to tender for a targeted project 28 55. In view of the foregoing, I consider that concerning hot gas cleaning. This decision there was no misapplication of a rule of sub allocated ECU 12 653 339 for carrying out stantive law (the Thermie Regulation) as the targeted projects. As the appellant's project Court of First Instance referred to the dis was a dissemination project, it did not tinction between targeted projects which had receive financial support. finally received financial support, and other projects which were not targeted, such as the appellant's. Therefore the appellant's sub missions to the contrary must be rejected as unfounded.
54. On this point the Court of First Instance states (paragraph 44) that 'in order to arrive at the decision in the letter of 13 January 1994, the only question for the Commission (c) Mistake with regard to the facts
26 — Article 2(2)(b) of the Thermic Regulation defines dissemi nation projects as 'projects designed to promote with a view to their broader utilisation within the Community, cither under different economic or geographical conditions or with technical modifications, innovatory techniques, processes or products which have already been applied once but, owing to residual risk, have not yet penetrated the market'. 27 — Article 4 of the Thermic Regulation defines 'specific 56. First of all, as regards the statement of projects' ('targeted projects') as follows: 'whenever it Commissioner Papoutsis to which the appel appears to be necessary, and in particular where a need is not being met or where significant technological advance lant refers in its reply, I do not think this can could be achieved through cooperation between persons or undertakings in at least two Member States, the initiative be taken into account, irrespective of may be taken to encourage or coordinate the setting-up of whether the document cited by the appellant specific projects, called "targeted projects"(emphasis added). is among the documents it produced and 28 — OJ 1993 C 171, p. 21. whether there was a special meeting of the
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Parliament in April 1996 concerning the that the judgment gave an incorrect account Thermie programme, as the Commission of the facts. This submission must therefore casts doubt on these matters. In particular, be rejected as inadmissible as it relates to the although Mr Papoutsis' statement constitutes appraisal of facts, which is outside the power a new factual element introduced belatedly, of review of the appeal court. being raised for the first time at the appeal stage, it cannot be taken into account because in an appeal the powers of the Court of Justice are confined to reviewing the find ings of law on the pleas argued before the 29 Court of First Instance. In addition, as the 59. Finally, the appellant claims that the con Court has consistently held, the appraisal by tested judgment gives no indication of the the Court of First Instance of the evidence action taken on the appellant's letter sent on put before it does not constitute (save where 9 August 1993 to the Commission because, the clear sense of that evidence has been dis in actual fact, no reply was given. Again, the torted) a point of law which is subject, as Court of First Instance does not specify pre 30 such, to review by the Court of Justice. cisely for what reasons and in what amount the Commission granted ECU 10 817 552 to certain projects, or why the Commission did not grant the appellant ECU 918 028, as the Commission had decided in the letter of 5 August 1993 to the appellant.
57. Consequently the appellant's submis sions on this point are inadmissible.
60. As the Commission correctly points out, the Court of First Instance observed (para graphs 7 and 24 of the judgment) that a brief communication concerning the decision of 58. The appellant also asserts that there was 19 July 1993 was published in the Official an unallocated total of ECU 10 817 552. This 31 Journal of the European Communities and figure was not referred to expressly in the notified to the appellant by letter of 5 judgment of the Court of First Instance, but August 1993. that Court may have taken it into account when it observed (paragraph 44) that there were still budgetary funds available. I do not think that the fact that this figure is not men tioned in the judgment is sufficient to prove
61. In view of the foregoing, once again I do not consider that the abovementioned sub 29 — See, for example, the judgment in Commission v Brazzelli mission by the appellant shows that the Laaldi and Others, paragraph 59, and the order in San Marco v Commission, paragraph 49, both cited in footnote judgment is mistaken in that it did not assess 8. 30 — See, for example, Case C-53/92 P Hilti v Commission [1994] ECR I-667, paragraphs 10 and 42; the order in San Marco v Commission, cited in footnote 8, paragraph 39, and the order of 16 October 1997 in Case C-140/96 Dimitriadis v Court of Auditors [1997] ECR I-5635, paragraph 26. 31 — See the communication cited in paragraph 10.
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an essential factual submission which, sup concerned by a procedure for obtaining posing it to have been true, would have led financial support, the conditions of which to the appellant's application being allowed. had been previously published, so that it was That submission must be rejected. Other for those persons themselves to assess, with wise, one would be drawn into re-examining regard to submitting an application for that the facts of the case, which would be con purpose, whether they fulfilled the condi trary to the principles of the appeal pro tions for obtaining support. cedure.
65. Thus the appellant observes that, as the 62. In view of the foregoing, the third plea trial court found, the appellant's project was in law must be dismissed in its entirety. entered on the supplementary list and ful filled the conditions for receiving financial support, like the other 137 projects which were finally selected. The appellant added at the hearing before the court that, if the D — Infringement of the appellant's right to Commission had given it an opportunity to he heard be heard, it could have stated the reasons which would have led it (the Commission) to grant financial support to the appellant's project.
63. The appellant claims that any person directly and individually concerned by a decision has, by virtue of certain fundamen tal principles of Community law, a right to 66. The appellant submits that the Court of be heard so that he can make known his First Instance made an error of assessment in views on the matters of law or fact which finding, on the ground that the appellant did have been taken into account to his detri not request further information, that there ment and which form the basis of the dis was no foundation for the claim that its right puted decision to refuse his application. to be heard was infringed (paragraph 49 of 32 Relying on the Court's case-law, the the judgment), although in paragraph 9 the appellant submits that the right to be heard Court of First Instance found that further must be accorded 'irrespective of any practi information had been requested in the fax of cal difficulties'. 9 August 1993.
64. According to the appellant, the Court of 67. Finally, according to the appellant, the First Instance was wrong in holding that the Court of First Instance was wrong not to Commission could refuse to hear the persons take account of the ECU 10 817 552 which the Commission granted to targeted projects between 19 July and 31 December 1993, a 32 — Sec Case C-32/95 P Commission v Lisrestal and Others matter on which the appellant also ought to [1996] ECR I-5373. have been heard.
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68. The appellant's arguments raise the ques to be given a hearing during the selection tion of the extent to which the persons con procedure, which is conducted on the basis cerned are entitled to be heard before the of the documentation submitted by them. adoption of a decision granting, financial sup That procedure is appropriate in situations port to certain projects, to the exclusion of where hundreds of applications must be other projects, a problem which also arises in evaluated and it therefore does not constitute connection with support for the Thermie an infringement of the right to a hearing.' programme.
71. The Court of First Instance continued as 69. In my opinion, the appellant's argu follows (paragraph 49): '... since the [appel ments, as the Commission has rightly- lant] did not request further information pointed out, are not such as to call into ques from the Commission following the publica tion the legal validity of paragraphs 48 to 50 tion in the Official Journal of 24 July 1993 of of the contested judgment. the communication regarding the Commis sion's decision granting financial support to 137 projects or following its letter of 5 August 1993, the Commission was not under a duty to give the [appellant] an opportunity to make known its views before the Com mission sent the letter of 13 January 1994. 70. With regard to the plea that the appel From that point of view also, the right to a 33 34 lant's right to be heard was infringed, this hearing has not been infringed.' was dismissed by the Court of First Instance on the following grounds (paragraph 48): 'The Court notes first that the Commission explained the procedure for the submission of projects for financial support under the Thermie programme in the information bro chure referred to in the communication 72. This assessment by the trial court is cor inviting interested parties to submit projects, rect since, in an administrative procedure for published in the Official Journal on 16 July granting financial support and involving a 1992 ... That document states: "Once the large number of applicants, as in the present proposal has been submitted, proposers are case, there is no obligation to give the under invited not to submit any supplementary taking concerned (in the present case, the information to the Commission unless spe appellant) an opportunity to state its point of cifically requested by the Commission ser view effectively. The procedure in question vices". Furthermore, it is in accordance with was not directed against a person (here the the procedure in financial support pro appellant) who responded to the invitation grammes for candidates for such support not to submit projects, and the decision was not taken on the basis of specific criteria
33 — The Thermie Regulation itself expressly provides that the procedure concerned is entirely a written procedure (see Article 8). 34 — See also paragraph 50 of the judgment.
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connected with the conduct of that person, it necessary to observe the abovementioned but on the basis of the application file which principle. In other words, the refusal of such it had lodged. an application does not give rise to a legal situation unfavourable to the operator con cerned and does not adversely affect him in such a way that the institution adopting the decision would have to give him an opportu nity to state his views as a person affected.
73. Furthermore, in the context of a pro cedure such as that laid down by the Ther mie Regulation, if financial support is not granted to an undertaking, this cannot be regarded as having a significant adverse effect 75. In view of the foregoing, I think that the 36 on its interests or, more specifically, it does present case differs clearly from the one not adversely affect a legal situation which is which was decided by the judgment of the 38 favourable to the appellant, so that the insti Court of First Instance in Case T-450/93 tution which issues the decision would have and then the judgment of the Court of Jus 39 to give it an opportunity to express its view tice in Commission v Lisrestal and Others, 37 point as a person affected. which was given on the Commission's appeal against the judgment of the trial court. It is precisely because the premiss chosen is wrong that the judgment in that case cannot be transposed to the present case and therefore I do not consider that a mis take has been shown to exist in the contested 74. Finally, in my opinion, this conclusion is judgment. dictated by the fact that refusal of an applica tion for financial support docs no more than prevent the mere expectation which arises when that application is lodged from becom ing a fully fledged right to receive such sup port which, if it were infringed, would make 76. More precisely, in Case C-32/95 P, the Court held "° that Observance of the right to be heard is, in all proceedings initiated against a person which are liable to culmi 35 — Sec Case C-170789 BEUC v Commission [1991] ECR nate in a measure adversely affecting that I-5709, ParaGraphs 21 and 22, in which the Court held that respect for the right to a fair hearing in the context of an person, a fundamental principle of Commu anti-dumping and anti-subsidy proceeding did not entail access tp the non-confidential documents relating to the nity law which must be guaranteed even in proceeding, if the proceeding could not result in a measure the absence of any rules governing the pro adversely affecting the person seeking access, in that case the European Office of Consumer Unions (BEUC), as no ceeding in question ... That principle requires allegation had been made against it. that the addressees of decisions which sig- 36 — In other words, in the present case not only can the pro cedure not lead to a sanction against the appellant, but it has no other unfavourable consequences for it; sec also Case C-49/88 Al-Jubail Fertilizer v Council [1991] ECR 1-3187, paragraph 15, relating to the right to a fair hearing in the context of administrative anti-dumping procedures 38 — Lisrestal and Others v Commission [1994] ECR II-1177. and the obligation of the Community institutions diligently 39 — Sec the judgment cited in footnote 32. to provide information for the undertakings concerned. 40 — Sec paragraph 21. Sec also Case C-135/92 Fiskano v Com- 37 — This is a separate question from the question whether the mission [1994] ECR I-2885, paragraph 39, and Joined Cases conditions for initiating proceedings against the decision arc C-48/90 and C-66/90 Netherlands and Others v Commis- fulfilled under Article 173, fourth paragraph, of the Treaty. sion [1992] ECR I-565, paragraph 44.
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nificantly affect their interests should be adopting the decision, the Commission had placed in a position in which they may effec misused its powers and also abused its dis tively make known their views'. Conse cretion. quently, where the Commission intends to reduce financial assistance originally granted, the beneficiary must be placed in a position in which it can effectively make known its views on the matters taken into account to its detriment in the grounds for the decision 41 reducing the assistance. 80. More specifically, the appellant contends that the Court of First Instance was wrong in holding that the Commission had made a correct assessment of the appellant's project because it followed the opinion of the Ther mie Committee. The appellant points out 77. In the present case, as the Court of First that the Committee met before the decision Instance correctly points out (paragraph 50), of 19 July 1993 was taken. Since the Court of no financial support was granted to the First Instance had ruled that it was inadmis appellant, which had merely been placed on sible to examine events which preceded that a reserve list of possible beneficiaries of date, it ought to have verified whether the Community financial support. Commission misused its powers by granting financial support to other applicants in the period from 19 July to 31 December 1993. Since financial support was accorded to tar geted projects (paragraph 44 of the contested judgment) and not to projects on the reserve 78. In view of the foregoing, the fourth plea list, the Thermie Committee was not in law must be dismissed in its entirety. involved. The appellant submits that, since the Commission put forward no grounds for acting in this way, it misused its powers, although it enjoys a wide discretion. Accord ing to the appellant, this ground of appeal relates to the fact that the Court of First E — Misuse of powers Instance infringed the principle that a discre tion must be exercised before a decision is adopted, and here it was not.
79. Under the fifth plea in law the appellant submits in essence that the Court of First Instance was mistaken in law in not annul ling the Commission's decision although, by
81. The appellant adds that even though the Commission espoused the opinion of the 41 — As the Court of First Instance stated in Lisrestal and Oth- Thermie Committee, it cannot be maintained ers v Commission, cited in footnote 38. At the appeal stage (Commission v Lisrestal and Others, cited in footnote 32, that the latter took its decision without paragraphs 21 to 38), the Court of Justice stated that this wrongly exercising its discretion or, if the assessment was not mistaken in law.
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discretion was properly exercised (which has achieving an end other than that stated,
not been proved), that no other decision and, second, had exercised its discretion could have been taken. improperly.
82. Furthermore, according to the appellant, 85. I consider that such evidence cannot be the Court of First Instance committed an adduced in appeal proceedings because that error in law in failing to take account of the would lead the Court of Justice to fact that the independent technical experts of re-examine the merits of the case, which falls the Commission who placed the project on outside the limits of review in appeal pro the reserve list (paragraph 56 of the con ceedings. tested judgment) may, as officials of the Member States, have allowed themselves to be influenced by national economic interests.
86. The fifth plea in law must therefore be dismissed.
83. On this point the Court of First Instance found (paragraph 58) that 'the [appellant] has not adduced any matter of fact or law show ing that the assessment of its project by the Commission, in conjunction with the Ther mic Committee, was vitiated by manifest F — Infringement of Articles 175, third para- error or misuse of power'. graph, 173, fourth paragraph, and 176 of the Treaty
84. Let me begin with two observations. 87. Under its sixth plea in law the appellant First, the Court of First Instance rightly contends that Articles 175, third paragraph, took the view, as I have already said, that 173, fourth paragraph, and 176 of the Treaty only the action against the decision in the were infringed because the Court of First letter of 13 January 1994 was admissible. Instance did not take account of the differ Second, it found that the appellant had not ences existing between the actions based on produced to it in good time and in due form each of those articles. the relevant evidence, which had to be suffi ciently secure from both the legal and factual viewpoints to show clearly, first, that the Commission had misused its powers, that is 42 — See, for example. United Kingdom v Council, cited in foot to say, with the exclusive or main purpose of note 11, paragraph 69, and Case C-156/93 Parliament v Commission [1995] ECR I-2019, paragraph 31.
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88. More specifically, the appellant maintains the consequences of a decision setting aside that the Commission did not duly give a the contested judgment. decision on the application for financial sup port limited to ECU 918 028 which the appellant submitted on 27 November 1992. The appellant claims that it is entitled to rely 90. I should merely like to observe that, in on Article 175, third paragraph, of the deciding to reject the corresponding claim by Treaty. The Court of Justice must take the appellant (paragraph 61), the Court of account of the fact that the decision of 19 First Instance applied settled case-law of the July 1993 confirmed that the appellant's 4 Court of Justice 3 when it held, on the project could receive support because the appellant's claim that the Court should project was on the reserve list. Furthermore, direct the Commission to 'take a new it has been proved that the Commission still decision in accordance with the legal prin had ECU 10 817 552 available in the second ciples laid down by the Court of Justice', half of 1993 and this was granted to projects that 'this Court is not entitled, when exercis on the reserve list. Consequently, the Court ing judicial review of legality, to issue direc of Justice will have to find that the Commis tions to the institutions'. The Court of First sion must take a decision in this respect and Instance added, correctly, that 'it is for the the Court must state the factors determining administration concerned to adopt measures that decision. to implement a judgment given in proceed ings for annulment'.
89. I have already proposed that all the other grounds for annulment be rejected, either because they are inadmissible or unfounded. 91. Consequently this last plea appeal must It is unnecessary to examine what may be also be dismissed.
V — Conclusion
92. Having regard to all the foregoing considerations, I propose that the Court should :
(1) dismiss the appeal and
(2) order the appellant to pay the costs.
43 — Cf. the judgment in AKZO Chemie v Commission, cited in footnote 23, paragraph 23.
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