## Facts

- Sugar producers challenged an EU regulation concerning sugar production quotas.
- The applicants contended that the regulation threatened their economic viability by reducing the quantity of sugar they were permitted to sell, thereby shrinking turnover and market share.
- They alleged that compliance would immediately force them either to curtail production or to incur substantial storage and financing costs for unsold sugar.
- According to the undertakings, those losses would crystallise during the marketing year and could not be recovered through an action for damages because of the difficulty of proving quantum and causation at a later stage.
- Consequently, applications were lodged for interim suspension of the disputed provisions until the Court of Justice delivered a final judgment on validity.
- The requests invoked the Treaty provisions and the corresponding Rules of Procedure that authorise the Court to order protective measures where strictly necessary.

## Issues

1. Whether interim suspension of EU measures is permissible and, if so, under what legal framework.
2. The precise criteria for “serious and irreparable harm” capable of justifying provisional protection.
3. Whether, in addition to harm, the applicant must make out a prima facie case that the contested measure is invalid.
4. How the element of urgency interacts with the other requirements and with the possibility of accelerated substantive proceedings.

## Decision

- The Court confirmed that, although the Treaties allow interim suspension, such relief is exceptional because it interferes with the direct effect and uniform application of EU law.
- A cumulative two-limb test applies:
  - (a) the applicant must establish serious and irreparable harm that will occur before the final judgment; and
  - (b) the application must reveal, at first sight, substantial arguments casting doubt on the validity of the measure.
- Purely financial loss does not automatically satisfy the irreparability requirement. It does so only where later monetary compensation would be legally or practically impossible—for example, where a claim for damages would face insurmountable evidential barriers or where the undertaking would become insolvent before judgment.
- The Court found that the producers had quantified possible losses but had not demonstrated that those losses could not be made good by subsequent monetary compensation. Nor had they proved that enforcement of the quota would jeopardise their existence or cause damage incapable of calculation.
- On the merits, the arguments put forward—largely alleging economic disproportionality—were considered insufficient to raise serious doubt as to the legality of the quota system.
- Because neither limb of the test was met, the Court dismissed the applications for interim measures.

## Legal Principles

- Interim relief under the Treaties serves a protective, not anticipatory, function; it preserves the effectiveness of the future final judgment without prejudging legality.
- Serious and irreparable harm:
  - The burden of proof rests on the applicant.
  - Harm must be actual, immediate, and incapable of repair by either restitution in kind or damages.
  - Allegations that are speculative, hypothetical, or contingent will not suffice.
- Prima facie case (“fumus boni juris”):
  - The Court does not conduct a full review but verifies whether the plea of illegality is manifestly unfounded.
  - Where invalidity arguments are weak, an especially high degree of harm must be shown; conversely, if harm is minimal, a clear case of illegality is insufficient.
- Urgency:
  - Even where the two primary criteria are satisfied, the Court retains discretion.
  - Applicants are expected to act promptly and, where possible, to request an expedited hearing on the substantive action rather than provisional suspension.
- The demanding threshold reflects the principle of institutional balance: Union measures are presumed valid and must remain operative across all Member States unless and until annulled.

## Conclusion

The Court of Justice reiterated that suspension of EU measures is a remedy of last resort. Applicants must demonstrate with concrete evidence that enforcement would inflict serious, irreparable harm and that their challenge is sufficiently solid to cast genuine doubt on the measure’s validity. Because the sugar producers failed on both counts, the requests were refused, thereby safeguarding the immediate applicability and uniform enforcement of Union law while leaving open the possibility of full judicial review in the ordinary course.

Zuckerfabrik (Joined Cases C-143/88 and C-92/89) [1991] ECR I-415