3. For operational programmes for which the Commission concludes that the opinion of the audit authority is reliable, it may agree with the audit authority to limit the Commission's own on-the-spot audits to audit the work of the audit authority unless there is evidence of deficiencies in the work of the audit authority for an accounting year for which the accounts have been accepted by the Commission.

10. Especially regrets the fact that Action 4 of the Action Plan concerning the launching of an inter-institutional initiative on the basic principles to be considered regarding the risks to be tolerated in the underlying transactions has not been yet implemented; agrees with the statement made by the ECA in its Opinion No 4/2006 that even if it is a vital concept for the integrated control system, how an 'acceptable risk level' is to be determined has not yet been clarified;

10. Especially regrets the fact that Action 4 of the Action Plan concerning the launching of an inter-institutional initiative on the basic principles to be considered regarding the risks to be tolerated in the underlying transactions has not been yet implemented; agrees with the statement made by the ECA in its Opinion No 4/2006 that even if it is a vital concept for the integrated control system, how a 'tolerable level of risk' is to be determined has not yet been clarified;

If within three months from the transmittal of the preliminary report to the State in question the matter has not been solved or, for those States that have accepted the jurisdiction of the Inter-American Court, has not been referred by the Commission or by the State to the Court for a decision, the Commission, by absolute majority of votes, may issue a final report that contains its opinion and final conclusions and recommendations.

While the Commission sees the environmental benefit of charging a deposit and of taking back packaging, it believes that the way in which the deposit and return systems function in Germany constitutes a disproportionate barrier to the free movement of packaged beverages from other Member States, in violation of the Treaty's Internal Market rules (Article 28) and of Article 7 of Directive 94/62/EC (the "Packaging Directive"). These measures particularly affect imported drinks, given that, for reasons mainly related to long distance deliveries, some 95 per cent of imported drinks are in 'one way' packaging. The Commission's request will ta ...[+++]ke the form of a reasoned opinion, the second step of an infringement procedure under Article 226 of the EC Treaty. If Germany does not respond satisfactorily within two months, the Commission could decide to take the case to the European Court of Justice.

This is on the assumption that all players here accept the authority of the Supreme Court of Canada and the legitimacy of its decision in the reference.