# C_2004217EN.01002001.xml

| 28.8.2004 | EN | Official Journal of the European Union | C 217/20 |
| --- | --- | --- | --- |

28.8.2004

EN

Official Journal of the European Union

C 217/20

---

Action brought on 30 April 2004 on by Eugénio Branco Lda against the Commission of the European Communities

(Case T-162/04)

(2004/C 217/37)

Language of the case: Portuguese

An action was brought before the Court of First Instance of the European Communities on 30 April 2004 against Commission of the European Communities by Eugénio Branco Lda, represented by Bolota Belchior, lawyer, with an address for service in Luxembourg.

The applicant claims that the Court of First Instance should:

| — | Annul the Commission decision of 8 August 2004 which failed to approve the claim for payment of the balance due under the European Social Fund (ESF) financing procedure, did not allow certain expenses submitted by the applicant, thereby reducing the ESF contributions for training approved by the Commission decision, and called on the applicant to repay the sum of EUR 39 899.07, which it had received as advances from the ESF, and the national public contribution from the Portuguese State; |
| --- | --- |

—

Annul the Commission decision of 8 August 2004 which failed to approve the claim for payment of the balance due under the European Social Fund (ESF) financing procedure, did not allow certain expenses submitted by the applicant, thereby reducing the ESF contributions for training approved by the Commission decision, and called on the applicant to repay the sum of EUR 39 899.07, which it had received as advances from the ESF, and the national public contribution from the Portuguese State;

| — | Order the Commission to pay the costs. |
| --- | --- |

—

Order the Commission to pay the costs.

Pleas and principal arguments adduced in support

On 29 June 1986, the applicant submitted to the Departamento para os Assuntos do Fundo Social Europeu (Department of European Social Fund Affairs – DAFSE) of the Portuguese State an application for financing to be granted by the ESF for vocational training for the period from 2 January 1987 to 31 December 1987, which was approved by Commission decision. The applicant requested payment of the balance from the DAFSE, there being a balance in favour of the applicant. The DAFSE analysed the accounts and documents relating to the applicant and documents relating to the training actions and, by decision of 13 March 1989, approved the request for payment of the balance. Similarly, the Commission approved the request for payment of the balance. On 8 August 2004, the Commission adopted the decision against which these proceedings are brought.

According to the applicant, the decision infringes Council Regulation (EEC) No 2950/83 of 17 October 1983, giving effect to Council Decision 83/516/EEC of 17 October 1983 on the tasks of the European Social Fund, since the applicant rigorously complied with all the relevant laws, regulations, directives, criteria, requirements and conditions when its application to the ESF was approved, thereby acquiring subjective vested rights. The contested decision thus infringes vested rights.

The decision at issue also breaches the principles of the protection of legitimate expectations and of legal certainty, since the approval decision gave the applicant the right and the legally significant expectation that it would receive the contributions if it carried out the training in accordance with the agreed conditions. According to the applicant, the Commission could have taken the action which it has now purported to take at the start of 1989, and by not doing so breached the principle of the protection of legitimate expectations and legal certainty.

Finally, the contested decision represents a serious breach of the principle of proportionality, since the applicant incurred the expenditure on the basis that the Commission would fulfil its commitment and its agreement to contribute.

---