Press and Information Division
PRESS RELEASE No 54/01
25 October 2001
Judgment in Case C-398/98
Commission of the European Communities v Hellenic Republic
GREEK LEGISLATION ON EMERGENCY STOCKS OF PETROLEUM
PRODUCTS IS INCOMPATIBLE WITH COMMUNITY LAW
The Court of Justice holds that the compulsory maintenance of stocks of petroleum products,
linked to advantages in obtaining supplies from refineries established in Greece, is not
compatible with the principle of the free movement of goods.
Community legislation requires Member States to maintain emergency stocks of petroleum
products. The level of those stocks must be at least equivalent to 90 days' average daily internal
consumption in the preceding year. The emergency stocks must be held on national territory and
put together by the marketing companies.
Since 1996, the marketing companies have themselves had the right to transfer their storage
obligation to refineries established in Greece, in proportion to the quantity of petroleum products
bought from the latter during the previous year.
The Commission has not criticised storage at refineries, but taken the view that that system gives an advantage to Greek refineries because the marketing companies are encouraged to obtain supplies from national refineries which offer them storage facilities. The Commission regards this as an infringement of the free movement of goods and brought the question before the Court of Justice.
The Greek Government has argued that, even if that system does constitute an obstacle to the free
movement of goods, that obstacle is justified by an objective in the public interest, namely the
certainty of supply of petroleum products.
The Court has held that the facility offered to marketing companies to transfer their obligation
to store petroleum products to refineries situated in Greece clearly involves advantages which
lead them to obtain a large part of their supplies from refineries situated in Greece. Making the
transfer of the storage obligation conditional upon the purchase of petroleum products from
refineries established in Greece constitutes discrimination against petroleum products from
refineries situated in other Member States, in that it makes their marketing more difficult.
Finally, the Court considers that the security objectives cited by Greece could be achieved by less
restrictive measures.
Unofficial document for media use only; not binding on the Court of Justice.
Available in English, French and Greek
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