# C_2021053EN.01001001.xml

| 15.2.2021 | EN | Official Journal of the European Union | C 53/10 |
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15.2.2021

EN

Official Journal of the European Union

C 53/10

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Judgment of the Court (Fourth Chamber) of 17 December 2020 — French Republic v European Commission

(Case C-404/19 P) (1)

(Appeal - European Agricultural Guarantee Fund (EAGF) and European Agricultural Fund for Rural Development (EAFRD) - Implementing Decision (EU) 2017/2014 - Expenditure excluded from EU financing - Expenditure incurred by the French Republic - 100 % flat-rate correction - Proportionality - European Commission Guidelines on the calculation of the financial corrections in the framework of the conformity and financial clearance of accounts procedures)

(2021/C 53/11)

Language of the case: French

Parties

Appellant: French Republic (represented by: A.-L. Desjonquères, C. Mosser and D. Colas, acting as Agents)

Other party to the proceedings: European Commission (represented by: X. Lewis, A. Sauka and J. Aquilina, acting as Agents)

Operative part of the judgment

The Court:

| 1. | Sets aside the judgment of the General Court of the European Union of 12 March 2019, France v Commission (T-26/18, not published, EU:T:2019:153), first, in so far as the General Court dismissed the action of the French Republic concerning Commission Implementing Decision (EU) 2017/2014 of 8 November 2017 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) in so far as, under the ground entitled ‘Control system gravely deficient, Corsica’, it imposed on that Member State flat-rate corrections at a rate of 100 % on area-related direct aid granted in Upper Corsica for the 2013 and 2014 claim years on the basis of deficiencies in the system for the control of area-related aid in Upper Corsica, and, secondly, in so far as the General Court made a ruling as to the costs; |
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1.

Sets aside the judgment of the General Court of the European Union of 12 March 2019, France v Commission (T-26/18, not published, EU:T:2019:153), first, in so far as the General Court dismissed the action of the French Republic concerning Commission Implementing Decision (EU) 2017/2014 of 8 November 2017 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) in so far as, under the ground entitled ‘Control system gravely deficient, Corsica’, it imposed on that Member State flat-rate corrections at a rate of 100 % on area-related direct aid granted in Upper Corsica for the 2013 and 2014 claim years on the basis of deficiencies in the system for the control of area-related aid in Upper Corsica, and, secondly, in so far as the General Court made a ruling as to the costs;

| 2. | Annuls Implementing Decision 2017/2014 in so far as, under the ground entitled ‘Control system gravely deficient, Corsica’, it imposed on the French Republic flat-rate corrections at a rate of 100 % on area-related direct aid granted in Upper Corsica for the 2013 and 2014 claim years on the basis of deficiencies in the system for the control of area-related aid in Upper Corsica; |
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2.

Annuls Implementing Decision 2017/2014 in so far as, under the ground entitled ‘Control system gravely deficient, Corsica’, it imposed on the French Republic flat-rate corrections at a rate of 100 % on area-related direct aid granted in Upper Corsica for the 2013 and 2014 claim years on the basis of deficiencies in the system for the control of area-related aid in Upper Corsica;

| 3. | Orders the European Commission to bear its own costs relating to the appeal proceedings and one quarter of those incurred at first instance, and to pay those incurred by the French Republic in the appeal proceedings and one quarter of the costs incurred by that Member State in the proceedings at first instance; |
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3.

Orders the European Commission to bear its own costs relating to the appeal proceedings and one quarter of those incurred at first instance, and to pay those incurred by the French Republic in the appeal proceedings and one quarter of the costs incurred by that Member State in the proceedings at first instance;

| 4. | Orders the French Republic to pay, in addition to three quarters of its own costs incurred in the proceedings at first instance, three quarters of the costs incurred by the Commission in those same proceedings. |
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4.

Orders the French Republic to pay, in addition to three quarters of its own costs incurred in the proceedings at first instance, three quarters of the costs incurred by the Commission in those same proceedings.

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(1)  OJ C 238, 15.7.2019.

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