The European Commission has told Spain it must change its rules on organic food labelling in order to ensure that all products labelled Bio are organic.
At present, Spanish laws allow companies such as Danone and Nestle to sell products under the Bio name even if they are not organic, and this contradicts EU regulations on organic food.
Spain has two months to respond to the Commission's ruling. If it fails to do so, the Commission may decide to refer the case to the European Court of Justice.
The Commission first warned Spain about the use of the term Bio in July 2001. In a letter of formal notice, the Commission told the Madrid government its current legislation (at both national and regional level) was in breach of the EU's regulations on organic production and food labelling, presentation and advertising.
The Spanish authorities replied in October 2001 that they did not believe the legislation in place in Spain to contravene EU regulations, prompting the Commission to issue the new warning. Spain must now bring its legislation in line with that of the EU as a whole or face further legal action.