1 ( 1 ) BY ORDER OF 3 NOVEMBER 1971, RECEIVED
AT THE COURT REGISTRY ON 17 NOVEMBER 1971, THE PRETORE DI LONATO HAS
REFERRED TO THE COURT TWO QUESTIONS CONCERNING THE INTERPRETATION OF
REGULATION ( EEC ) NO 1975/69 OF THE COUNCIL OF 6 OCTOBER 1969 AND OF
REGULATION ( EEC ) NO 2195/69 OF THE COMMISSION OF 4 NOVEMBER 1969
RELATING PRINCIPALLY TO THE GRANT OF SUBSIDIES TO FARMERS FOR SLAUGHTERING
THEIR MILK COWS .
2 THE FIRST QUESTION ASKS THE COURT TO RULE "
WHETHER THE PROVISIONS OF REGULATION NO 1975/69 AND OF REGULATION NO
2195/69 ARE DIRECTLY APPLICABLE IN THE ITALIAN LEGAL SYSTEM AND, IF THIS
QUESTION IS ANSWERED IN THE AFFIRMATIVE, WHETHER THEY CREATE INDIVIDUAL
RIGHTS WHICH NATIONAL COURTS MUST PROTECT ". THE SECOND QUESTION ASKS, IN
ESSENCE, WHETHER, WHERE THE CONDITIONS SET OUT IN ARTICLE 5 ( 1 ) AND ( 2
) AND IN ARTICLES 6 AND 9 OF REGULATION NO 2195/69 HAVE BEEN FULFILLED,
THOSE REGULATIONS, IN SO FAR AS THEY ARE CONCERNED WITH THE SLAUGHTERING
SUBSIDY, CONFER ON THE FARMER CONCERNED A RIGHT AS AGAINST THE MEMBER
STATE TO WHICH HE BELONGS TO THE PAYMENT OF THAT SUBSIDY, THIS BEING A
RIGHT TO WHICH THE NATIONAL COURT MUST AFFORD IMMEDIATE PROTECTION AND
WHICH THAT STATE CANNOT RENDER SUBJECT TO ADDITIONAL CONDITIONS, IN
PARTICULAR AS TO THE PERIOD ALLOWED FOR PAYMENT UNDER ARTICLE 10 OF
REGULATION NO 2195/69 .
3 THESE QUESTIONS WERE REFERRED TO THE COURT
IN VIEW OF THE FACT THAT THE PLAINTIFF IN THE MAIN ACTION BELIEVED THAT
SHE HAD COMPLIED WITH ALL THE CONDITIONS TO WHICH THE ABOVEMENTIONED
REGULATIONS RENDER SUBJECT THE GRANT OF A SUBSIDY FOR SLAUGHTERING MILK
COWS AND HAD BROUGHT BEFORE THE PRETORE DI LONATO AN APPLICATION FOR AN
INJUNCTION ORDERING THE ITALIAN MINISTRY FOR AGRICULTURE AND FORESTRY TO
PAY THE SUBSIDY . MOREOVER IT APPEARS FROM THE DOCUMENTS IN THE CASE THAT
THE NATIONAL AUTHORITIES, WHILE GRANTING THE SUBSIDY ON A " PROVISIONAL
AUTHORIZATION ", SUSPENDED PAYMENT ON THE GROUND THAT IT WAS SUBJECT TO
THE PRIOR ADOPTION BY THE ITALIAN PARLIAMENT OF LEGISLATIVE PROVISIONS
ALLOCATING THE NECESSARY FUNDS .
4 SINCE THESE TWO QUESTIONS ARE
CLOSELY CONNECTED A JOINT REPLY MAY BE GIVEN TO THEM .
5 ( 2 ) THE
SECOND PARAGRAPH OF ARTICLE 189 OF THE TREATY PROVIDES THAT A REGULATION
SHALL HAVE " GENERAL APPLICATION " AND " SHALL BE ... DIRECTLY APPLICABLE
IN ALL MEMBER STATES ". THEREFORE, BECAUSE OF ITS NATURE AND ITS PURPOSE
WITHIN THE SYSTEM OF SOURCES OF COMMUNITY LAW IT HAS DIRECT EFFECT AND IS,
AS SUCH, CAPABLE OF CREATING INDIVIDUAL RIGHTS WHICH NATIONAL COURTS MUST
PROTECT .
6 SINCE THEY ARE PECUNIARY RIGHTS AGAINST THE STATE, THESE
RIGHTS ARISE WHEN THE CONDITIONS SET OUT IN THE REGULATION ARE COMPLIED
WITH AND IT IS NOT POSSIBLE AT A NATIONAL LEVEL TO RENDER THE EXERCISE OF
THEM SUBJECT TO IMPLEMENTING PROVISIONS OTHER THAN THOSE WHICH MIGHT BE
REQUIRED BY THE REGULATION ITSELF . IT IS IN THE LIGHT OF THESE
CONSIDERATIONS THAT THE QUESTIONS PUT SHOULD BE ANSWERED .
7 ( 3 )
WITH REGARD TO THE CONDITIONS WHICH THE FARMER MUST FULFIL IN ORDER TO BE
ABLE TO CLAIM PAYMENT OF THE SUBSIDY, THE AUTHORITY OBLIGED TO PAY THE
SUBSIDY AND THE PERIOD WITHIN WHICH PAYMENT MUST BE MADE, REFERENCE SHOULD
BE MADE TO ARTICLES 1 TO 4 AND 12 OF REGULATION NO 1975/69 AND TO ARTICLES
3, 7, 9 AND 10 OF REGULATION NO 2195/69 .
8 ARTICLE 1 OF REGULATION NO
1975/69 PROVIDES THAT " FARMERS HAVING AT LEAST TWO MILK COWS MAY, ON
APPLICATION, RECEIVE A SUBSIDY FOR SLAUGHTERING ON THE CONDITIONS
SPECIFIED BELOW ", SET BY ARTICLE 3 ( 1 ) OF THAT REGULATION AT 200 U . A
. FOR EACH MILK COW SLAUGHTERED .
9 ARTICLE 2 OF THAT REGULATION
PROVIDES THAT " THE GRANTING OF THE SUBSIDY IS, IN PARTICULAR, SUBJECT TO
THE WRITTEN UNDERTAKING OF THE RECIPIENT : ( A ) TO GIVE UP THE PRODUCTION
OF MILK ENTIRELY AND ( B ) TO HAVE ALL MILK COWS ON HIS FARM SLAUGHTERED
DURING A PERIOD TO BE DETERMINED AND AT THE LATEST BY 30 APRIL 1970 ".
10 ARTICLE 4 ( 1 ) OF THE SAME REGULATION PROVIDES THAT " FOR FARMERS
HAVING TWO TO FIVE MILK COWS THE SUBSIDY SHALL BE PAID WHEN THE APPLICANT
SUBMITS PROOF THAT HE HAS FULFILLED THE UNDERTAKING REFERRED TO IN ARTICLE
2 ( B ) ".
11 ARTICLE 12 OF THE REGULATION STATES THAT THE " EUROPEAN
AGRICULTURAL GUIDANCE AND GUARANTEE FUND, GUIDANCE SECTION, SHALL
REIMBURSE THE MEMBER STATES 50 PER CENT OF THE SUBSIDIES' CONCERNED,
THEREBY IMPLYING THAT THE MEMBER STATES ARE TO PAY THESE SUBSIDIES TO THE
FARMERS .
12 ACCORDING TO ARTICLE 3 OF REGULATION NO 2195/69 " THE
APPLICATION FOR THE GRANT OF THE SUBSIDY SHALL BE LODGED WITH THE
COMPETENT AUTHORITY APPOINTED BY EACH MEMBER STATE DURING THE PERIOD FROM
1 TO 20 DECEMBER 1969 " AND WAS TO CONTAIN CERTAIN INFORMATION AND
DECLARATIONS .
13 ARTICLE 7 OF THAT REGULATION PROVIDES THAT " THE
SLAUGHTERING PERIOD REFERRED TO IN ARTICLE 2 ( B ) OF REGULATION ( EEC )
NO 1975/69 SHALL LAST FROM 9 FEBRUARY TO 30 APRIL 1970 ".
14 ARTICLE 9
OF THE SAME REGULATION DETERMINES THE MANNER IN WHICH THE FARMER MUST
PROVIDE THE PROOF LAID DOWN BY ARTICLE 4 ( 1 ) OF REGULATION NO 1975/69 .
15 ARTICLE 10 OF REGULATION NO 2195/69 STATES THAT " PAYMENT OF THE
SUBSIDY REFERRED TO IN ARTICLE 4 ( 1 ) ... OF REGULATION ( EEC ) NO
1975/69 SHALL TAKE PLACE WITHIN TWO MONTHS OF THE ESTABLISHMENT OF PROOF
OF THE SLAUGHTERING IN ACCORDANCE WITH ARTICLE 9 OF THIS REGULATION ".
16 IT FOLLOWS FROM ARTICLE 5 ( 1 ) OF REGULATION NO 2195/69 THAT THE
GRANT OF THE SUBSIDY WAS FURTHER SUBJECT TO THE FINDING BY THE COMMISSION
" THAT THE APPLICATIONS LODGED MAY BE ALLOWED TO PROCEED ", WHICH FINDING
WAS MADE IN RESPECT OF ALL APPLICATIONS SUBMITTED UNDER ARTICLE 3 OF THAT
REGULATION, BY ARTICLE 1 ( A ) OF REGULATION NO 140/70 .
17 ARTICLE 10
OF REGULATION NO 1975/69 EMPOWERS THE COMMISSION TO AUTHORIZE MEMBER
STATES " TO IMPOSE ADDITIONAL CONDITIONS " FOR THE GRANT OF THE SUBSIDY
CONCERNED AND ARTICLE 19 OF REGULATION NO 2195/69 SETS OUT SUCH
CONDITIONS, REQUIRING THE MEMBER STATES TO NOTIFY THE COMMISSION IN
APPROPRIATE CASES OF THE PROVISIONS ADOPTED BY THEM PURSUANT TO THAT
ARTICLE . IT IS COMMON GROUND HOWEVER THAT ITALY DID NOT MAKE USE OF THIS
POSSIBILITY . IT IS ALSO ESTABLISHED THAT THE ITALIAN REPUBLIC ADOPTED THE
TECHNICAL MEASURES PROVIDED FOR BY ARTICLES 4, 5 ( 2 ) 6, 8 AND 11 OF
REGULATION NO 2195/69 .
18 ( 4 ) THE EFFECT OF ALL THESE PROVISIONS IS
THAT ONCE ALL THE CONDITIONS LAID DOWN IN REGULATIONS NOS 1975/69 AND
2195/69 WERE FULFILLED, THOSE REGULATIONS CONFERRED ON FARMERS A RIGHT,
WHICH NATIONAL COURTS MUST PROTECT, TO PAYMENT OF THE SLAUGHTERING SUBSIDY
BY THE MEMBER STATE TO WHICH THEY BELONGED; SUCH RIGHTS COULD BE EXERCISED
IN EACH CASE AT THE END OF THE PERIOD OF TWO MONTHS FOLLOWING THE
ESTABLISHMENT OF THE PROOF OF SLAUGHTER AS PROVIDED IN ARTICLE 10 OF
REGULATION NO 2195/69 .
19 AS FROM THAT TIME, THE ABOVEMENTIONED
REGULATIONS GIVE THE FARMER THE RIGHT TO REQUIRE PAYMENT OF THE SUBSIDY
WITHOUT THAT MEMBER STATE' S BEING ABLE TO RELY ON ARGUMENTS BASED ON ANY
LEGISLATIVE PROVISIONS OR ADMINISTRATIVE PRACTICES TO WITHHOLD SUCH
PAYMENT . THIS FINDING IS REINFORCED BY THE SEVENTH RECITAL OF THE
PREAMBLE TO REGULATION NO 2195/69 WHICH EMPHASIZES THAT " IT SHOULD BE
ENSURED THAT SUBSIDIES ARE PAID IN ALL MEMBER STATES WITHIN THE SAME
PERIOD ".
20 NEVERTHELESS, THE ITALIAN GOVERNMENT HAS STATED THAT THE
REGULATIONS IN QUESTION DID NOT CREATE THE RIGHT TO PAYMENT OF THE SUBSIDY
WHERE THE NATIONAL LEGISLATURE HAD NOT ALLOCATED THE NECESSARY FUNDS FOR
THIS PURPOSE .
21 THE FIRST PARAGRAPH OF ARTICLE 5 OF THE TREATY
PROVIDES THAT " MEMBER STATES SHALL TAKE ALL APPROPRIATE MEASURES, WHETHER
GENERAL OR PARTICULAR, TO ENSURE FULFILMENT OF THE OBLIGATIONS ARISING OUT
OF THIS TREATY OR RESULTING FROM ACTION TAKEN BY THE INSTITUTIONS OF THE
COMMUNITY ". IF THE OBJECTION OF THE ITALIAN GOVERNMENT WERE UPHELD IT
WOULD HAVE THE RESULT OF PLACING FARMERS IN THAT STATE IN A LESS
FAVOURABLE POSITION THAN THEIR COUNTERPARTS IN OTHER MEMBER STATES IN
DISREGARD OF THE FUNDAMENTAL RULE REQUIRING THE UNIFORM APPLICATION OF
REGULATIONS THROUGHOUT THE COMMUNITY . MOREOVER, REGULATIONS NOS 1975/69
AND 2195/69 LAY DOWN EXHAUSTIVELY THE CONDITIONS ON WHICH THE CREATION OF
THE INDIVIDUAL RIGHTS IN QUESTION DEPEND AND THESE DO NOT INCLUDE
CONSIDERATIONS OF A BUDGETARY NATURE .
22 SO AS TO APPLY WITH EQUAL
FORCE WITH REGARD TO NATIONALS OF ALL THE MEMBER STATES, COMMUNITY
REGULATIONS BECOME PART OF THE LEGAL SYSTEM APPLICABLE WITHIN THE NATIONAL
TERRITORY, WHICH MUST PERMIT THE DIRECT EFFECT PROVIDED FOR IN ARTICLE 189
TO OPERATE IN SUCH A WAY THAT RELIANCE THEREON BY INDIVIDUALS MAY NOT BE
FRUSTRATED BY DOMESTIC PROVISIONS OR PRACTICES .
23 BUDGETARY
PROVISIONS OF A MEMBER STATE CANNOT THEREFORE HINDER THE DIRECT
APPLICABILITY OF A COMMUNITY PROVISION AND CONSEQUENTLY OF THE EXERCISE OF
INDIVIDUAL RIGHTS CREATED BY SUCH A PROVISION .
24 THE COSTS INCURRED
BY THE GOVERNMENT OF THE ITALIAN REPUBLIC AND BY THE COMMISSION OF THE
EUROPEAN COMMUNITIES, WHICH HAVE SUBMITTED OBSERVATIONS TO THE COURT, ARE
NOT RECOVERABLE . AS THESE PROCEEDINGS ARE, IN SO FAR AS THE PARTIES TO
THE MAIN ACTION ARE CONCERNED, IN THE NATURE OF A STEP IN THE ACTION
PENDING BEFORE THE NATIONAL COURT, THE DECISION ON COSTS IS A MATTER FOR
THAT COURT .
THE COURT
IN ANSWER TO THE QUESTIONS
REFERRED TO IT BY THE PRETORE DI LONATO BY ORDER OF THAT COURT DATED 3
NOVEMBER 1971, HEREBY RULES :
1 . A COMMUNITY REGULATION HAS DIRECT
EFFECT AND IS, AS SUCH, CAPABLE OF CREATING INDIVIDUAL RIGHTS WHICH
NATIONAL COURTS MUST PROTECT . PECUNIARY RIGHTS AGAINST THE STATE,
CONFERRED BY SUCH A REGULATION, ARISE WHEN THE CONDITIONS SET OUT IN THE
REGULATION ARE COMPLIED WITH AND IT IS NOT POSSIBLE AT A NATIONAL LEVEL TO
RENDER THE EXERCISE OF THEM SUBJECT TO IMPLEMENTING PROVISIONS OTHER THAN
THOSE WHICH MIGHT BE REQUIRED BY THE REGULATION ITSELF .
2 . ONCE ALL
THE CONDITIONS LAID DOWN IN REGULATIONS NOS 1975/69 AND 2195/69 WERE
FULFILLED, THOSE REGULATIONS CONFERRED ON FARMERS A RIGHT, WHICH NATIONAL
COURTS MUST PROTECT, TO PAYMENT OF THE SLAUGHTERING SUBSIDY BY THE MEMBER
STATE TO WHICH THEY BELONGED; SUCH RIGHTS COULD BE EXERCISED IN EACH CASE
AT THE END OF THE PERIOD OF TWO MONTHS FOLLOWING THE ESTABLISHMENT OF THE
PROOF OF SLAUGHTER AS PROVIDED IN ARTICLE 10 OF REGULATION NO 2195/69 .
AS FROM THAT TIME, THE ABOVEMENTIONED REGULATIONS GIVE THE FARMER THE
RIGHT TO REQUIRE PAYMENT OF THE SUBSIDY WITHOUT THAT MEMBER STATE' S BEING
ABLE TO RELY ON ARGUMENTS BASED ON ANY LEGISLATIVE PROVISIONS OR
ADMINISTRATIVE PRACTICES TO WITHHOLD SUCH PAYMENT .
