The constitutional court, Germany's top legal body, is also set to make a ruling before the end of the year.

The German government is introducing a deposit of 25 euro cents for small containers and 50 cents for cans and bottles larger than 1.5 litres from January 1. 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 (TOM.OL), which makes recycling machines which accept waste bottles and repay the deposits.

Retailers and beverage manufacturers have long opposed the measure but the government says it is necessary because the percentage of cans and bottles being recycled - typically after being returned to the retailer - has fallen below a 72 percent minimum target set in 1997.

About 25 retail groups and drinks producers complained to a court in the western state of North Rhine-Wespthalia which blocked the plans in a ruling in September, saying they did not conform with an existing law on recycling and refuse. A higher state court overturned that ruling in November.

Opponents say industry faces start-up costs of 1.4 billion euros and running costs of 0.9 billion euros per year and lost sales if they are forced to push up prices.

Retailers have warned consumers of a beer shortage at the start of the year due to the new law on packaging.