Judgment of the Court (Grand Chamber) of 5 December 2017.

Delivered 2017-12-05 · ECLI:EU:C:2017:935 · Court of Justice · Languages: LT · EN · IT · SV · PL · LV · ET · SL · FR · DE

Case
C-600/14
Court
Court of Justice
Date
2017-12-05
Parties
Federal Republic of Germany v Council of the European Union
ECLI
ECLI:EU:C:2017:935
Original
EUR-Lex ↗
PresidentK. LenaertsPresidentA. TizzanoJudgeL. Bay LarsenJudgeT. von DanwitzJudgeJ.L. da Cruz VilaçaJudgeJ. MalenovskýJudge · rapporteurC. VajdaJudgeA. Borg BarthetJudgeJ.‑C. BonichotJudgeA. ArabadjievJudgeS. RodinJudgeF. BiltgenJudgeK. JürimäeJudgeC. LycourgosJudgeM. VilarasAdvocate GeneralM. SzpunarRegistrarK. Malacek
Summary
Preparing…

JUDGMENT OF THE COURT (Grand Chamber)

5 December 2017 (*1)

(Action for annulment — External action of the European Union — Article 216(1) TFEU — Article 218(9) TFEU — Establishment of the position to be adopted on behalf of the European Union in a body set up by an international agreement — Revision Committee of the Intergovernmental Organisation for International Carriage by Rail (OTIF) — Amendment of the Convention concerning International Carriage by Rail COTIF) and the Appendices thereto — Competence shared between the European Union and its Member States — External competence of the European Union in an area where the Union has not yet adopted common rules — Validity of Decision 2014/699/EU — Obligation to state reasons — Principle of sincere cooperation)

In Case C‑600/14,

ACTION for annulment under Article 263 TFEU, brought on 22 December 2014,

Federal Republic of Germany , represented by T. Henze and J. Möller, acting as Agents,

applicant,

supported by:

French Republic , represented initially by D. Colas, G. de Bergues and M. Hours, acting as Agents, and subsequently by D. Colas and M.‑L. Kitamura, acting as Agents,

United Kingdom of Great Britain and Northern Ireland , represented by C. Brodie, M. Holt and D. Robertson, acting as Agents, and by J. Holmes QC,

interveners,

v

Council of the European Union , represented by E. Finnegan, Z. Kupčová and J.‑P. Hix, acting as Agents,

defendant,

supported by:

European Commission , represented by F. Erlbacher, W. Mölls and J. Hottiaux, acting as Agents,

intervener,

THE COURT (Grand Chamber),

composed of K. Lenaerts, President, A. Tizzano, Vice-President, L. Bay Larsen, T. von Danwitz, J.L. da Cruz Vilaça, J. Malenovský and C. Vajda (Rapporteur), Presidents of Chambers, A. Borg Barthet, J.‑C. Bonichot, A. Arabadjiev, S. Rodin, F. Biltgen, K. Jürimäe, C. Lycourgos and M. Vilaras, Judges,

Advocate General: M. Szpunar,

Registrar: K. Malacek, Administrator,

having regard to the written procedure and further to the hearing on 25 October 2016,

after hearing the Opinion of the Advocate General at the sitting on 24 April 2017,

gives the following

Judgment

Legal context

International law

The COTIF

‘§ 1 So far as declarations are not made in accordance with Article 42 § 1, first sentence, international rail traffic and admission of railway material to use in international traffic shall be governed by:

…

…

…

§ 2 The Uniform Rules, the Regulation and the systems listed in § 1, including their Annexes, shall form an integral part of the [COTIF].’

‘Railway vehicles may only be seized on a territory other than that of the Member State in which the keeper has its registered office, under a judgment given by the judicial authority of that State. The term “keeper” means the person who, being the owner or having the right to dispose of it, exploits the railway vehicle economically in a permanent manner as a means of transport.’

The accession agreement

‘Without prejudice to the object and the purpose of [the COTIF] to promote, improve and facilitate international traffic by rail and without prejudice to its full application with respect to other Parties to [the COTIF], in their mutual relations, Parties to [the COTIF] which are Member States of the Union shall apply Union rules and shall therefore not apply the rules arising from [the COTIF] except in so far as there is no Union rule governing the particular subject concerned.’
‘1. For decisions in matters where the Union has exclusive competence, the Union shall exercise the voting rights of its Member States under [the COTIF].
‘The scope of the competence of the Union shall be indicated in general terms in a written declaration made by the Union at the time of the conclusion of this Agreement. That declaration may be modified as appropriate by notification from the Union to OTIF. It shall not replace or in any way limit the matters that may be covered by the notifications of Union competence to be made prior to OTIF decision-making by means of formal voting or otherwise.’

European Union law

‘In the rail sector, the European Union … shares competence with the Member States of the Union … pursuant to Articles 90 and 91, in conjunction with Article 100(1), and Articles 171 and 172 [TFEU].

…

On the basis of [Articles 91 and 171 TFEU] the Union has adopted a substantial number of legal instruments applicable to rail transport.

Under Union law, the Union has acquired exclusive competence in matters of rail transport where the [COTIF] or legal instruments adopted pursuant to it may affect or alter the scope of these existing Union rules.

For subject matters governed by the Convention in relation to which the Union has exclusive competence, Member States have no competence.

Where Union rules exist but are not affected by the [COTIF] or legal instruments adopted pursuant to it, the Union shares competence on matters in relation to [COTIF] with Member States.

A list of the relevant Union instruments in force at the time of the conclusion of the Agreement is contained in the Appendix to this Annex. The scope of the Union competence arising out of these texts has to be assessed in relation to the specific provisions of each text, especially the extent to which these provisions establish common rules. Union competence is subject to continuous development. In the framework of the Treaty on European Union and the TFEU, the competent institutions of the Union may take decisions which determine the extent of the competence of the Union. The Union therefore reserves the right to amend this declaration accordingly, without this constituting a prerequisite for the exercise of its competence in matters covered by [COTIF].’

Background to the dispute and the contested decision

‘The Federal Republic of Germany takes the view that [the European Union] is not competent as regards the amendments to Appendix B (… CIM), Appendix D (… CUV) and Appendix E (… CUI) to the [COTIF], and, consequently, that there is no need to coordinate an EU position at the 25th session of the OTIF Revision Committee, to take place from 25 to 27 June 2014. To date, [the European Union] has not exercised its legislative competence in the areas of private law concerning contracts of carriage governed by those Appendices. Member States may therefore continue to exercise their competence in accordance with the second sentence of Article 2(2) [TFEU]. Moreover, in cases where competence is shared, Article 6(2) [of the accession agreement] explicitly provides that Member States may continue to vote independently in those areas. [The Federal Republic of Germany] hereby asserts, as a precaution, that it rejects any casting of its vote by the European Commission.’

‘The Council of the European Union

Having regard to the [FEU Treaty], and in particular Article 91 in conjunction with Article 218(9) thereof,

…

whereas:

…

…

…

‘…

Competence: shared.

Exercising voting rights: Member States.

Recommended coordinated position:

…

Amendments to Article 12 (Execution of judgments. Attachment) to be supported as it amends the definition of “keeper” in line with Union law.

…’

‘…

Competence: shared

Exercising voting rights: Union for Articles 6 and 6a. Member States for other Articles.

Recommended coordinated position:

Amendments to Article 6 and new Article 6a concern Union law because of the use of the consignment note and its accompanying documents for customs and sanitary and phytosanitary (SPS) procedures. The Union agrees with the intention of OTIF to give priority to the electronic form of consignment notes. However, at present the adoption of these amendments may lead to unintended consequences. The current simplified procedure for customs transit by rail is only possible with paper documents. Therefore, if railways opt for the electronic consignment note, they will have to use the standard transit procedure and the New Computerised Transit System (NCTS).

The Commission has started preparations for a working group to discuss the use of electronic transport documents for transit under Regulation (EU) No 952/2013 of the European Parliament and the Council [of 9 October 2013 laying down the Union Customs Code ( OJ 2013 L 269, p. 1 )]. That working group will have its kick-off meeting on 4-5 June 2014. The Union agrees also with the intention to provide the accompanying documents in electronic format. However, under current Union law there is no legal basis to provide the documents (e.g. Common Veterinary Entry Document, Common Entry Document) which have to accompany SPS-related goods in electronic format and therefore they need to be provided on paper. The Commission has prepared a draft Regulation, which will cater for electronic certification and the draft is currently under discussion in the European Parliament and the Council. That Regulation (Official Control Regulation) is envisaged to be adopted by end of 2015/beginning of 2016, however, there will be a transitional period for the enforcement.

Therefore, the Union suggests that no decision should be taken on these items at the present session of the [Revision Committee] and that OTIF continue cooperation with the Union on this issue in order to have a well‑prepared solution for an upcoming revision of CIM which should ideally be synchronised with the Regulation (EU) No 952/2013 and its implementing provisions which are to be in force from 1 May 2016. Certain electronic procedures may be phased in between 2016 and 2020 in accordance with Article 278 of Regulation (EU) No 952/2013.

…’

‘…

Competence: shared.

Exercising voting rights: Union.

Recommended Union position: Amendments to Articles 2 and 9 to be supported as they clarify the roles of the keeper and of the entity in charge of maintenance in line with Union law (Directive 2008/110/EC of the European Parliament and of the Council [of 16 December 2008 amending Directive 2004/49/EC on safety on the Community’s railways (Railway Safety Directive) ( OJ 2008 L 345, p. 62 )]. However, the proposed amendment to Article 7 submitted by [the French Republic] concerning the liability of the person who has provided a vehicle for use as a means of transport in case of damage resulting from a defect of the vehicle needs further analysis within the Union before taking a decision in OTIF. Therefore, the Union is not in a position to support this amendment proposal at this [session of the OTIF Revision Committee] and proposes to postpone the decision until the next General Assembly in order to further assess this issue. The Union takes the same position, i.e. to postpone the decision until the next General Assembly in order to further assess the issue, on the proposal of [the Federal Republic of Germany] for a new Article 1a presented to OTIF during Union coordination.

Additional recommended Union position: In document CR 25/7 ADD 1, page 6, at the end of paragraph 8a, add: “The amendment to Article 9, paragraph 3, first indent, does not affect the existing allocation of liabilities between [the entity in charge of maintenance] and the keeper of the vehicles”.’

‘…

Competence: shared.

Exercising voting rights: Union.

Recommended coordinated position: amendments to be rejected. These amendments suggested by [the International Rail Transport Committee] include the extension of the scope of [Appendix E (CUI)] to domestic operations, the introduction of contractually binding General Terms and Conditions and the extension of the infrastructure manager’s liability for damage. They may deserve further consideration but as they have not been discussed in any internal forum of OTIF before the [session of the OTIF Revision Committee], their impact could not have been assessed in sufficient detail. It seems to be premature to amend [Appendix E (CUI)] (which is at present in line with Union law) at this [session of the OTIF Revision Committee] without proper preparation.’

Forms of order sought by the parties and procedure before the Court

The action

The first plea in law: the European Union’s lack of competence and infringement of the principle of conferral, laid down in the first sentence of Article 5(2) TEU

Arguments of the parties

Findings of the Court

The second plea in law: breach of the obligation to state reasons under Article 296 TFEU

Arguments of the parties

Findings of the Court

The third plea in law: infringement of the principle of sincere cooperation, in conjunction with the principle of effective judicial protection

Arguments of the parties

Findings of the Court

Costs

On those grounds, the Court (Grand Chamber) hereby:

[Signatures]

(*1) Language of the case: German.

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