Brussels, 03/11/2010 (Agence Europe) - On 28 October, the Court of Justice delivered a raft of rulings in cases on state failures.
In Case C-350/08, it found against Lithuania which, by keeping in place the national marketing authorisation of biological medicinal product Grasalva, has defaulted on its obligation under the relevant Community legislation (Directive 2001/83/EC and Regulations 2309/93 and 726/2004), which makes authorisation a Community responsibility, devolved to the Commission. Before bringing the case in July 2008, the Commission sent Lithuania a formal notice in December 2006 and a reasoned opinion in June 2007.
In Case C-49/09, the Court found against Poland, which applies a reduced value added tax (VAT) rate of 7% on the supply, import and intra-Community purchase of clothing and clothing accessories for babies and children's footwear, in violation of Article 98 and relevant provision in Directive 2006/112/EC on the common VAT system. The procedure began with a letter of formal notice from the Commission in May 2007, followed by a reasoned opinion on 1 February 2008.
In Case C-500/09, the Court found against Greece which, despite receiving a reasoned opinion from the Commission in February 2008, maintained without sufficient justification, restrictions which prevented the liberalisation of postal services in violation of Directive 97/67/EC. When granting permits for postal lorries, Greece requires that the authorised transporters are themselves postal companies registered as holders of a general authorisation. This requirement demands the radical restructuring of postal networks and the main companies from using franchises unless they become lorry hire firms, with all the costs involved. In addition, Greece only allows the transport of heavy loads by certain types of lorry reserved to regulated professions, thus preventing other companies from providing the same service.
In Case C-41/10, the Court ruled against Belgium, which failed to transpose correctly and fully Directive 73/239/EEC on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance. The procedure began with a formal notice being sent by the Commission in December 2006, followed by a reasoned opinion on 8 May 2008. In its arguments stating the grounds for referral to the Court, the Commission claimed that, as the activities of Belgian mutual societies in complementary sickness insurance were not part of a legal social security system, they were not in line with the first and third non-life insurance directives on a number of points. These activities are exempted from the obligations imposed by these directives, for example, in approval, limitation of the scope of their activities and guarantee funds. They were not, therefore, subject to the same legal system as insurance companies with which, however, they were in direct competition in the complementary sickness insurance market. The Court accepted these arguments.
However, in Case C-508/08, the Court found for Malta and against the Commission which claimed that this state had, without any prior call for tender, concluded an exclusive contract for shipping between Malta and the island of Gozo. In its decision, the Court said the Commission had not presented a convincing case. (F.G./transl.rt)