Brussels, 27/02/2002 (Agence Europe) - On Wednesday, the European Commission decided to initiate action with the Court of Justice for annulment of a decision by the EU Council of Ministers that had, on 21 January, cleared State aid for a total of EUR 16.3 million granted by Portugal to its pig producers (see EUROPE of 21 and 22 January). The Council is reproached for having used this exceptional procedure for cancelling the economic impact of two negative Commission decisions calling on Portugal to take measures to recover illegally granted amounts. The Commission notes that these decisions should have been applied as they remained unchallenged during the time fixed. Portugal should have taken action before the Court within the two months following the decision by the Commission. The Portuguese authorities launched the procedure for recovery of aid judged incompatible then, fifteen months after the Commission's decisions, they changed their mind and called on the Council to authorise payment of the aid.
The Commission feels that the Council's use of Article 88 of the Treaty (whereby any Member State may refer a request for clearing aid payments to the Council, which must enact by unanimity) in order to cancel out "de facto" and without limit in time, the financial impact of the two final Commission decisions: - "unacceptably violates the legal security of all the interested parties"; - involves an assumption by the Council of a position of higher authority that infringes both the Commission's decision-making power and the Courts jurisdictional power; - and raises questions of principle, on the reality of the Commission's authority in State aid policy matters and on the allocation of responsibilities between the Institutions as intended by the Treaty itself.
The Commission may also institute legal proceedings concerning aid in the wine sector
This is the second time that the Commission calls on the Court to cancel a similar Council decision. In 1994, the Commission had challenged a Council decision to authorise Italy and France to pay national aid for the distillation of table wines. At the time, the Court had rejected the Commission's request (even though the case was different from the case in hand since the latter has not requested reimbursement of aid) because the Council had an assessment margin for estimating that there was exceptional upheaval on the wine market. The spokesperson for Commissioner Franz Fischler pointed out that the Commission reserved itself the right to challenge a new decision that the Council is to adopt (probably on Thursday), again in the wine-growing sector. This decision was discussed during the last Agriculture Council (see EUROPE of 19 February, p.6), authorising France and Italy to complete with national aid the Community price paid for the crisis distillation of table wines. The spokesperson for Mr Fischler specified that the situation is different from that prevailing in 1994, since, today, there are Community market management mechanisms with well-established procedures.
EP plenary session