The government introduced the measure in an effort to meet strict domestic environmental standards, but the administrative court in Duesseldorf said yesterday the plans did not conform with an existing law on recyling and refuse.The government directive, approved by the German cabinet in March, calls for deposits of 25 cents ($0.25) for smaller disposable containers and 50 cents for cans and bottles above 1.5 litres, starting in 2003. Deposits are returned when the bottles and cans are disposed of in special recycling machines.
The government's plans and previous German courts' support for the directive have boosted shares in Norway's Tomra Systems Inc, which makes recycling machines. Tomra shares were trading down over six percent by 1326 GMT.
Retailers and beverage manufacturers have long opposed the measure but the government says it is necessary because the percentage of refillable cans and bottles has fallen below a minimum target level set in 1997.
Around 35 wholesale and retail groups and drinks and packaging producers have complained against the directive.
Germany's CDU/CSU conservative opposition have said they would amend the law if they win September's general election.
The conservatives and Schroeder's Social Democrats are neck-and-neck according to opinion polls.