German recycling system violates EU law

The EU’s highest court has ruled that German can and bottle recycling rules discriminate against foreign drinks firms.

The European Court of Justice (ECJ) ruled on Tuesday that German laws on compulsory deposits are unfair to foreign importers.

“The deposit and return obligations introduced in Germany for non-reusable drinks packaging…hinder the free movement of goods if producers do not have a reasonable transitional period and a guarantee that the new system will be operational when the old system ceases to exist,” said the ECJ in a statement.

Foreign drinks importers, especially mineral water suppliers who bottle at source argued that the costs involved in transporting and refilling bottles was prohibitive.

In 2001 they called on the European Commission to refer Germany to the ECJ.

Brussels welcomed the court’s decision.

“The Court of Justice has handed down a landmark judgment…that a deposit/return obligation for single-use drinks packaging can contribute to reducing packaging waste only if all producers and retailers can take part in an operational return system,” said EU industry chief Günter Verheugen.

Under German rules, shops and outlets are obliged to charge a deposit on non-reusable bottles and cans.

This has led to difficulties as outlets are only obliged to take back the bottles and cans that they stock, and frustrated consumers have found themselves out of pocket.

The court also told Germany to give drinks importers more time to comply with the country’s complex deposit and return system, and to expand the number of return points for consumers.

Julian Carroll of packaging industry umbrella group Europen, said the decision on non-reusable containers helped clarify the situation.

“We hope this clarification will help bring about an appropriate and prompt settling of the chaotic situation in Germany,” said Carroll.

“The court is adamant in saying that the way the mandatory deposit was imposed on economic operators in Germany is contrary to EU rules.”

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