Fury over latest delay to infringement cases

Date: 25/06/1998

By Peter Chapman

EU DRINKS and toy firms reacted angrily this week after the European Commission once more refused to take France, Greece and Germany to task over high-profile alleged breaches of the Union's single market rules.

The furore followed a meeting of the full Commission yesterday (24 June) where decisions were due to be taken on launching court action against member states for a string of alleged infringements of EU rules governing the free movement of goods and services.

First, Commissioners decided yet again to delay plans to take Paris to the European Court of Justice over its controversial 1991 Loi Evin, which restricts televised broadcasts of sports events at which alcohol adverts are displayed.

They then agreed to let Greece off the hook for its 1994 ban on television adverts for children's playthings, despite claims by toy manufacturers in other member states that the law has caused a 40&percent; drop in exports to Greece and made the country's domestic toy firms less reliant on advertising, boosting sales by 35-50&percent;. Commissioners opted instead to launch a general debate on the impact of advertising on children before taking a decision on the Greek case.

They also voted to postpone action over German drinks container recycling quotas until after the country's September election. Industry complains the 72&percent; quota unfairly favours local drinks suppliers and does not even meet its stated aim of protecting the German environment.

In all three cases, single market officials have long been in favour of legal action. But their chief Mario Monti came up against a powerful coalition of Commissioners opposed to going ahead.

Industry critics claim the Commission's legal service, ultimately led by President Jacques Santer, has been too reluctant to ruffle the feathers of EU governments over controversial cases involving health and social affairs.

They also maintain that some Commissioners are guilty of putting their national interests first, with Greek Energy Commissioner Christos Papoutsis and French Research and Development Commissioner Edith Cresson joining forces to oppose moves to take Athens and Paris to task over their toy and alcohol advert rules.

“It is disappointing that the Commission has yet again failed to pursue the Loi Evin and take it back to the European Court,” said Christopher Scott Wilson, EU legal counsel for UK drinks giant Diageo. “It remains our view that there is a clear principle at stake in terms of the single market in commercial communications.”

Stephan Luiten, policy adviser for the toymakers' group Toy Industries of Europe (TIE), described the Commission's decision to postpone action against Athens' toy regime as “outrageous”.

He said TIE was planning to lodge a complaint with the EU's Ombudsman for alleged maladministration by the Commission in its handling of the case.

Luiten also hit out at the decision to launch a debate on the impact of advertising on children before ruling on the Greek case. “The Commission should get the Greeks to justify their ban. But what they are now saying is that the EU should do the job for them, using taxpayers' money,” he argued.