C-164/96

REGIONE PIEMONTE v SAIAGRICOLA

J U D G M E N T O F T H E C O U R T (Fourth Chamber) 6 November 1997 *

In Case C-l64/96,

R E F E R E N C E to the Court under Article 177 of the EC Treaty by the Consiglio di Stato for a preliminary ruling in the proceedings pending before that court between

Regione Piemonte

and

JUDGMENT OF 6. 11. 1997 — CASE C-164/96

Advocate General: P. Léger, Registrar: R. Grass,

after considering the written observations submitted on behalf of:

— Saiagricola SpA, by Vittorio Barosio, of the Turin Bar, and Mario Contaldi, of the Rome Bar,

— the Italian Government, by Professor Umberto Leanza, Head of the Legal Service of the Ministry of Foreign Affairs, acting as Agent, assisted by Pier Giorgio Ferri, Avvocato dello Stato,

— the Commission of the European Communities, by Eugenio de March, Legal Adviser, and Paolo Ziotti, of its Legal Service, acting as Agents,

REGIONE PIEMONTE v SAIAGRICOLA

of the EC Treaty a question on the interpretation of Council Directive 72/159/EEC of 17 April 1972 on the modernization of farms (OJ English Special Edition 1972 (II), p. 324) and Council Regulation (EEC) N o 797/85 of 12 March 1985 on improving the efficiency of agricultural structures (OJ 1985 L 93, p . 1).

2 That question was raised in proceedings between Saiagricola SpA (hereinafter 'Saiagricola'), a public limited company and the Regione Piemonte (Piedmont Region) concerning Saiagricola's application to be entered on the register of farm- ers practising farming as their main occupation.

3 Regulation N o 797/85 sets out the basic Community rules relating to agricultural structures.

4 Article 2 of Regulation N o 797/85 provides that, in order to contribute to the improvement of agricultural income and of living, working and production condi- tions on agricultural holdings, Member States are to introduce a system of invest- ment aid to agricultural holdings where the farmer practises farming as his main occupation and fulfils certain conditions.

5 Article 2(5) of that regulation, which is drafted in almost exactly the same terms as Article 3(1) of Directive 72/159, provides as follows:

7 The Italian regions, which enjoy concurrent legislative power in agricultural mat- ters, adopted detailed rules for the implementation of Community law relating to agricultural reform, within the framework of the principles laid down by national legislation.

8 Article 1 of Regional Law N o 18 of 23 August 1982 (hereinafter 'Law N o 18') of the Piedmont Region provides for the creation of a register of farmers practising farming as their main occupation on which the names of those farmers can be entered.

9 Other provisions of Law N o 18 set out the criteria to be fulfilled by those farmers.

I - 6142

REGIONE PIEMONTE v SAIAGRICOLA

io The Piedmont Regional Council implemented the requirements of Law N o 18 b y Decision N o 443-6462 of 28 July 1983. Articles 2 and 3 of that decision provide that only natural persons, agricultural cooperatives set up in accordance with the provisions relating to cooperation and associations of farmers may apply to be entered on the register of farmers practising farming as their main occupation.

i4 By that question, the national court is essentially asking whether Article 2(5) of Regulation N o 797/85, which is drafted in almost exactly the same terms as Article 3(1) of Directive 72/159, permits Member States which introduce a register intended to determine eligibility under the system of aids established by Directive 72/159 to refuse to register certain legal persons solely by reason of the legal form they have assumed and to introduce a special system of identification by creating a specific register intended for natural persons alone.

is First, according to settled case-law, Community legislation does not permit Mem- ber States, which are required to define the precise scope of the expression 'farmer practising farming as a main occupation', to limit its scope to natural persons alone (see Case 312/85 Vilh Banfi [1986] ECR 4039 and Case C-l 62/91 Tenuta il Bosco [1992] E C R 1-5279).

u Furthermore, since Directive 72/159 and Regulation N o 797/85 expressly provide that legal persons fall within their scope, refusal of an application for registration solely by reason of the legal form assumed by the applicant is incompatible with Community law.

i7 It follows from all the foregoing considerations that Member States have no discre- tion to deny the benefit of the system introduced by Directive 72/159 — and, sub- sequently, by Regulation N o 797/85 — to farmers who satisfy the conditions laid down therein, solely by reason of the legal form they have assumed (see VilL· Banfi, paragraph 9, and Tenuta il Bosco, paragraph 14, cited above).

T H E C O U R T (Fourth Chamber),

in answer to the question referred to it by the Consiglio di Stato by decision of 9 January 1996, hereby rules:

Council Directive 72/159/EEC of 17 April 1972 on the modernization of farms and Council Regulation (EEC) N o 797/85 of 12 March 1985 on improving the efficiency of agricultural structures are to be interpreted as meaning that Mem- ber States which introduce a register intended to determine eligibility under the system of aids established by Directive 72/159 are not permitted to refuse t o register certain legal persons solely by reason of the legal form they have assumed or to introduce a special system of identification by creating a specific register intended for natural persons alone.

Ragnemalm Kapteyn Murray

Delivered in open court in Luxembourg on 6 November 1997.

R. Grass H. Ragnemalm