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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Portugal v Commission (State aid) [2001] EUECJ C-204/97 (03 May 2001) URL: https://www.bailii.org/eu/cases/EUECJ/2001/C20497.html Cite as: ECLI:EU:C:2001:233, EU:C:2001:233, [2001] EUECJ C-204/97, [2001] ECR I-3175, Case C-204/97 |
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JUDGMENT OF THE COURT
3 May 2001 (1)
(State aid - Aid for producers of liqueur wines and eaux-de-vie - Aid granted by the French Republic in the context of an increase in internal taxation)
In Case C-204/97,
Portuguese Republic, represented by L. Fernandes, Â. Seiça Neves and C. Botelho Moniz, acting as Agents, with an address for service in Luxembourg,
applicant,
supported by
Kingdom of Spain, represented by R. Silva de Lapuerta, acting as Agent, with an address for service in Luxembourg,
intervener,
v
Commission of the European Communities, represented by A. M. Alves Vieira and D. Triantafyllou, acting as Agents, with an address for service in Luxembourg,
defendant,
supported by
French Republic, represented by K. Rispal-Bellanger and G. Mignot, acting as Agents, with an address for service in Luxembourg,
intervener,
APPLICATION for annulment of the Commission's decision of 6 November 1996 concerning aid intended to be granted by the French Republic to producers of liqueur wines and eaux de vie in the form of aid for promotional measures and technical aid for research, technical support and investment, a summary of which was published in the Official Journal of the European Communities of 6 March 1997 (OJ 1997 C 70, p. 14),
THE COURT,
composed of: C. Gulmann, President of the Third and Sixth Chambers, acting for the President, A. La Pergola, M. Wathelet and V. Skouris (Presidents of Chambers), D.A.O. Edward (Rapporteur), J.-P. Puissochet, P. Jann, L. Sevón and R. Schintgen, Judges,
Advocate General: S. Alber,
Registrar: H. von Holstein, Deputy Registrar,
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 28 March 2000, at which the Portuguese Republic was represented by C. Botelho Moniz, the Kingdom of Spain by R. Silva de Lapuerta, the French Republic by F. Million and S. Seam, acting as Agents, and the Commission by D. Triantafyllou and M. Afonso, acting as Agent,
after hearing the Opinion of the Advocate General at the sitting on 18 May 2000,
gives the following
Facts and legal background
'The producers of [liqueur wines] have been conducting this strike for a year. They have blocked in an account 30 million francs of taxes due to the State in order to obtain a reduction of the utterly excessive differential between taxes on [liqueur wines] and on [naturally sweet wines].
The strike is suspended because the ministry has implicitly recognised that it may not be able to maintain the differential in taxation between [liqueur wines] and [naturallysweet wines]. It has agreed that this conflict should be resolved by the European Court of Justice in Luxembourg, before which we will bring the matter. In addition, it agrees to pay us from 1994 to 1997 an annual indemnity of 20 million francs and compensation of 4 million in 1994, 8 million in 1995, 12 million in 1996, and 16 million in 1997 in order to compensate progressively for the current level of the taxes being maintained.
'Finally, the French authorities wish to make clear that this aid is not in any way equivalent to compensation for differences in taxation between naturally sweet wines and liqueur wines. The diversity of the beneficiary products, eaux-de-vie de vins(Cognac, Armagnac), eaux-de-vie de cidre (Calvados), liqueur wines (Pineau, Floc, Macvin, Cartagène, Pommeau), proves this.
'After a preliminary examination, it appears that this latest [information] is not complete and that further information is therefore necessary for a detailed examination of this plan.
The pleas in law put forward by the Portuguese Republic
The first plea
Arguments of the parties
Findings of the Court
Costs
54. Under Article 69(2) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs, if they have been applied for in the successful party's pleadings. Since the Portuguese Republic has applied for costs and the Commission has been unsuccessful, the latter must be ordered to pay the costs. Under the first subparagraph of Article 69(4) of the Rules of Procedure, Member States and institutions which intervene in the proceedings are to bear their own costs. In those circumstances, the Kingdom of Spain and the French Republic must bear their own costs.
On those grounds,
THE COURT
hereby:
1. Annuls the Commission's decision of 6 November 1996 concerning aid intended to be granted by the French Republic to producers of liqueur wines and eaux de vie in the form of aid for promotional measures and technical aid for research, technical support and investment;
2. Orders the Commission of the European Communities to pay the costs;
3. Orders the Kingdom of Spain and the French Republic to bear their own costs.
Gulmann
Skouris
Jann
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Delivered in open court in Luxembourg on 3 May 2001.
R. Grass G.C. Rodríguez Iglesias
Registrar President
1: Language of the case: Portuguese.