# C_2004314EN.01002002.xml

| 18.12.2004 | EN | Official Journal of the European Union | C 314/20 |
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18.12.2004

EN

Official Journal of the European Union

C 314/20

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Action brought on 9 September 2004 by the Hellenic Republic against the Commission of the European Communities

(Case T-364/04)

(2004/C 314/51)

Language of the case: Greek

An action against the Commission of the European Communities was brought before the Court of First Instance of the European Communities on 9 September 2004 by the Hellenic Republic, represented by I. Khalkias and Eleni Evolopoulou, members of the State Legal Service.

The applicant claims that the Court should:

| — | annul or modify the contested decision. E 2004/561/EC/16.7.2004. (1) |
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annul or modify the contested decision. E 2004/561/EC/16.7.2004. (1)

Pleas in law and main arguments

In the contested decision the Commission, in clearing the accounts in accordance with Regulation (EEC) No 729/70 (2), excluded from Community financing various expenditure incurred by the Hellenic Republic in the fruit and vegetables sector and in the sector of animal premiums, with the result that it is not recognised as legitimate Community expenditure and is chargeable to the Hellenic Republic.

More specifically, certain of that expenditure relates to production aid for processors of peaches, pursuant to Regulation No 2201/96 (3), from which an amount was excluded on the ground that the minimum price was not complied with. In support of that limb of its action, the Hellenic Republic alleges that the provisions of Regulation No 2201/96 and of Regulation No 504/79 (4) were misinterpreted, that the principle of proportionality was infringed and that the factual circumstances were wrongly assessed.

Further, in the same decision expenditure relating to the sector of production aid for processing tomatoes was also excluded, on the ground that there were direct payments of the aid to tomato producer organisations rather than to the processors. In support of that limb of its action, the Hellenic Republic relies on exceptional circumstances, that is to say, the bankruptcy of processing undertakings and serious cash-flow difficulties, maintaining that there was no ensuing economic harm to the Community. It also alleges that the factual circumstances were wrongly assessed, that the principle of proportionality was infringed and that Article 7 of Regulation No 1258/1999 (5) and Article 8 of Regulation No 1663/1995 (6) were infringed.

Another part of the expenditure excluded concerns expenditure for animal premiums. The Hellenic Republic asks that the contested decision be annulled and on that limb it is maintained that the Commission erred as to the facts, wrongly assessed the factual circumstances, ignored crucial evidence and gave erroneous reasons for its decision. It also alleges infringement of the principle of proportionality.

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(1)  
  Official Journal L 250 of 24.7.2004, p. 21.

(2)  Regulation (EEC) No 729/70 of the Council of 21 April 1970 on the financing of the common agricultural policy (OJ, English Special Edition 1970 (I), p. 218).

(3)  Council Regulation (EC) No 2201/96 of 28 October 1996 on the common organisation of the markets in processed fruit and vegetable products (OJ L 297, 21.11.1996, p. 29).

(4)  Commission Regulation (EC) No 504/97 of 19 March 1997 laying down detailed rules for the application of Council Regulation (EC) No 2201/96 as regards the system of production aid for products processed from fruit and vegetables (OJ 1997 L 78, 20.03.1997, p. 14).

(5)  Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (OJ L 160 of 26.06.1999, p. 103).

(6)  Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Council Regulation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section (OJ L 158 of 8.7.1995, p. 6).

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