# L_2004250EN.01002101.xml

| 24.7.2004 | EN | Official Journal of the European Union | L 250/21 |
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24.7.2004

EN

Official Journal of the European Union

L 250/21

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COMMISSION DECISION

of 16 July 2004

excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF)

(notified under document number C(2004) 2762)

(Only the Spanish, German, Greek, English, French, Italian, Dutch, Portuguese, Finnish and Swedish texts are authentic)

(2004/561/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 729/70 of the Council of 21 April 1970 on the financing of the common agricultural policy (1), and in particular Article 5(2)(c) thereof,

Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (2), and in particular Article 7(4) thereof,

Having consulted the Fund Committee,

Whereas:

| (1) | Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 1258/1999, and Article 8(1) and (2) of 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 (3), provide that the Commission is to make the necessary verifications, inform the Member States of its findings, take account of the Member States' comments, initiate bilateral discussions and then formally communicate its conclusions to the Member States, referring to Commission Decision 94/442/EC of 1 July 1994 setting up a conciliation procedure in the context of the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (4). |
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(1)

Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 1258/1999, and Article 8(1) and (2) of 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 (3), provide that the Commission is to make the necessary verifications, inform the Member States of its findings, take account of the Member States' comments, initiate bilateral discussions and then formally communicate its conclusions to the Member States, referring to Commission Decision 94/442/EC of 1 July 1994 setting up a conciliation procedure in the context of the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (4).

| (2) | The Member States have had an opportunity to request that a conciliation procedure be initiated. That opportunity has been used in some cases and the report issued on the outcome has been examined by the Commission. |
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(2)

The Member States have had an opportunity to request that a conciliation procedure be initiated. That opportunity has been used in some cases and the report issued on the outcome has been examined by the Commission.

| (3) | Under Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, respectively granted and undertaken according to Community rules within the framework of the common organisation of the agricultural markets, may be financed. |
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(3)

Under Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, respectively granted and undertaken according to Community rules within the framework of the common organisation of the agricultural markets, may be financed.

| (4) | In the light of the checks carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section. |
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(4)

In the light of the checks carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section.

| (5) | The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section should be indicated. Those amounts do not relate to expenditure incurred more than 24 months before the Commission's written notification of the results of the checks to the Member States. |
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(5)

The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section should be indicated. Those amounts do not relate to expenditure incurred more than 24 months before the Commission's written notification of the results of the checks to the Member States.

| (6) | As regards the cases covered by this Decision, the assessment of the amounts to be excluded on grounds of non-compliance with Community rules was notified by the Commission to the Member States in a summary report on the subject. |
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(6)

As regards the cases covered by this Decision, the assessment of the amounts to be excluded on grounds of non-compliance with Community rules was notified by the Commission to the Member States in a summary report on the subject.

| (7) | This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments of the Court of Justice in cases pending on 2 April 2004 and relating to its content, |
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(7)

This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments of the Court of Justice in cases pending on 2 April 2004 and relating to its content,

HAS ADOPTED THIS DECISION:

Article 1

The expenditure itemised in the Annex hereto that has been incurred by the Member States' accredited paying agencies and declared under the EAGGF Guarantee Section shall be excluded from Community financing because it does not comply with Community rules.

Article 2

This Decision is addressed to the Kingdom of Belgium, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Portuguese Republic, the Republic of Finland and the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 16 July 2004.

For the Commission

Franz FISCHLER

Member of the Commission

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(1)  
  OJ L 94, 28.4.1970, p. 13. Regulation as last amended by Regulation (EC) No 1287/95 (OJ L 125, 8.6.1995, p. 1).

1

(2)  
  OJ L 160, 26.6.1999, p. 103.

2

(3)  
  OJ L 158, 8.7.1995, p. 6. Regulation as last amended by Regulation (EC) No 2025/2001 (OJ L 274, 17.10.2001, p. 3).

3

(4)  
  OJ L 182, 16.7.1994, p. 45. Decision as last amended by Decision 2001/535/EC (OJ L 193, 17.7.2001, p. 25).

4

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ANNEX

TOTAL CORRECTIONS

| Sector | Member State | Budget item | Reason | National Currency | Expenditure to exclude from financing | Deductions already made | Financial impact of the decision | Financial year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Financial audit | BE | 1800 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 12 546,82 | – 12 546,82 | 0,00 | 2002 |
| | Total BE | | | | – 12 546,82 | – 12 546,82 | 0,00 | |
| Financial audit | DE | 2124 , 2125 , 2128 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 2 201 556,70 | – 2 201 556,70 | 0,00 | 2002 |
| | Total DE | | | | – 2 201 556,70 | – 2 201 556,70 | 0,00 | |
| Fruit and vegetable | GR | 1512 | Correction — refusal of the expenditure — non-compliance with Regulation (EC) No 2201/96 and (EC) No 504/97 — non-respect of the minimum price and flat-rate correction of 2 % — insufficient reimbursement of transport costs: processing of the peaches | EUR | – 13 666 570,48 | 0,00 | – 13 666 570,48 | 2000-2001 |
| Fruit and vegetable | GR | 1511 | Ad hoc correction — direct payments for producers and flat-rate correction of 10 % shortcomings in key controls: processing of tomatoes | EUR | – 11 327 825,25 | 0,00 | – 11 327 825,25 | 1999-2002 |
| Fruit and vegetable | GR | 1511 | Flat-rate correction of 5 % — shortcomings in key controls: processing tomatoes delivered by PO G | EUR | – 366 752,30 | 0,00 | – 366 752,30 | 2002-2003 |
| Animal Premiums | GR | 2120 , 2122 , 2125 , 2124 , 2128 | Flat-rate correction of 25 % on the amounts net of the 2,2 % — absence of a key control: non-operational status of the I&R database and deficiency in on-the-spot checks | EUR | – 15 616 929,93 | 0,00 | – 15 616 929,93 | 2000-2001 |
| Animal Premiums | GR | 2220 , 2222 | Financial impact of the correction imposed for the financial years 1999-2000 (Commission Decision No 2003/536/EC) on the expenditure declared in financial year 2002 | EUR | – 43 594,40 | 0,00 | – 43 594,40 | 2002 |
| Animal Premiums | GR | 2540 , 2320 | Correction: over-declaration of expenditure to the EAGGF, ineligible inclusion of VAT — production and marketing of honey | EUR | – 83 730,89 | 0,00 | – 83 730,89 | 1999-2002 |
| | Total GR | | | | – 41 105 403,25 | 0,00 | – 41 105 403,25 | |
| Animal Premiums | ES | 2220 , 2221 | Flat-rate correction of 5 % — shortcomings in key and ancillary controls — ovine premium | EUR | – 893 597,52 | 0,00 | – 893 597,52 | 2000-2002 |
| Financial audit | ES | 1049 , 1055 , 1210 , 1400 , 1402 , 1515 , 1610 , 1800 , 2124 , 2125 , 2320 | Correction — application of Regulation (EC) No 1258/99 — non-respect of payment deadlines | EUR | – 11 491 292,34 | – 11 835 994,73 | 344 702,39 | 2002 |
| | Total ES | | | | – 12 384 889,86 | – 11 835 994,73 | – 548 895,13 | |
| Financial audit | FI | 2124 , 2125 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 58 459,31 | – 58 459,31 | 0,00 | 2002 |
| | Total FI | | | | – 58 459,31 | – 58 459,31 | 0,00 | |
| Animal Premiums | FR | 2120 , 2122 , 2125 , 2124 , 2128 | Correction of total expenditure — Haute-Corse — bovine premium | EUR | – 22 639 501,84 | 0,00 | – 22 639 501,84 | 2001-2003 |
| Animal Premiums | FR | 2120 , 2122 , 2125 , 2124 , 2128 | Flat-rate correction of 2 % — shortcomings in on-the-spot checks in the view of not fully operational database: bovine premium | EUR | – 28 134 491,21 | 0,00 | – 28 134 491,21 | 2003 |
| Animal Premiums | FR | 2220 , 2222 | Flat-rate correction of 2 % — shortcomings in on-the-spot checks | EUR | – 1 934 036,76 | 0,00 | – 1 934 036,76 | 2001-2003 |
| Animal Premiums | FR | 2220 , 2222 | Flat-rate correction of 10 % — shortcomings in key controls — Haute-Corse — ovine premium | EUR | – 386 031,63 | 0,00 | – 386 031,63 | 2000-2002 |
| Financial audit | FR | 1210 , 1611 , 1612 , 2124 , 2125 , 2128 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 10 297 687,75 | – 10 297 687,75 | 0,00 | 2002 |
| | Total FR | | | | – 63 391 749,19 | – 10 297 687,75 | – 53 094 061,44 | |
| Financial audit | IE | 1049 , 2125 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 53 301,01 | – 75 116,75 | 21 815,74 | 2002 |
| | Total IE | | | | – 53 301,01 | – 75 116,75 | 21 815,74 | |
| Animal Premium | IT | 2120 , 2122 , 2125 , 2124 , 2128 | Flat-rate correction of 10 % — ineffective key controls, not fully operational I&R database, flat-rate correction of 5 % and 2 % lack or deficiency in control and administration of the scheme and on-the-spot checks | EUR | – 21 098 010,70 | 0,00 | – 21 098 010,70 | 1999-2001 |
| Rural development | IT | 4051 , 4072 | Correction — corrigendum ad hoc Decision No 15 — flat-rate correction of 2 % and 5 % for failings in the management and control system | EUR | – 40 000,00 | 0,00 | – 40 000,00 | 2001-2002 |
| | Total IT | | | | – 21 138 010,70 | 0,00 | – 21 138 010,70 | |
| Financial audit | LU | 1051 , 2124 | Correction — application of Regulation (EC) No 258/1999 — non-respect of payment deadlines | EUR | – 132 220,46 | – 132 220,46 | 0,00 | 2002 |
| | Total LU | | | | – 132 220,46 | – 132 220,46 | 0,00 | |
| Export refunds | NL | 2100-013 to 016 | Flat-rate correction of 10 % and 5 % — Failure to implement and shortcomings in key controls — non-respect of Directive 91/628/EEC and Regulation (EC) No 615/98 provisions — export refunds for live cattle | EUR | – 1 064 627,33 | 0,00 | – 1 064 627,33 | 1999-2001 |
| Financial audit | NL | 2120 , 2124 , 2125 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 470 165,16 | – 470 165,16 | 0,00 | 2002 |
| | Total NL | | | | – 1 534 792,49 | – 470 165,16 | – 1 064 627,33 | |
| Financial audit | PT | 1050 , 1610 , 1800 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | EUR | – 44 704,67 | – 44 704,67 | 0,00 | 2002 |
| | Total PT | | | | – 44 704,67 | – 44 704,67 | 0,00 | |
| Financial audit | UK | 1054 , 1060 , 2125 | Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines | GBP | – 1 118 369,01 | – 1 118 369,01 | 0,00 | 2002 |
| | Total UK | | | | – 1 118 369,01 | – 1 118 369,01 | 0,00 | |

Sector

Member State

Budget item

Reason

National Currency

Expenditure to exclude from financing

Deductions already made

Financial impact of the decision

Financial year

Financial audit

BE

1800

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 12 546,82

– 12 546,82

0,00

2002

Total BE

– 12 546,82

– 12 546,82

0,00

Financial audit

DE

2124 , 2125 , 2128

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 2 201 556,70

– 2 201 556,70

0,00

2002

Total DE

– 2 201 556,70

– 2 201 556,70

0,00

Fruit and vegetable

GR

1512

Correction — refusal of the expenditure — non-compliance with Regulation (EC) No 2201/96 and (EC) No 504/97 — non-respect of the minimum price and flat-rate correction of 2 % — insufficient reimbursement of transport costs: processing of the peaches

EUR

– 13 666 570,48

0,00

– 13 666 570,48

2000-2001

Fruit and vegetable

GR

1511

Ad hoc correction — direct payments for producers and flat-rate correction of 10 % shortcomings in key controls: processing of tomatoes

EUR

– 11 327 825,25

0,00

– 11 327 825,25

1999-2002

Fruit and vegetable

GR

1511

Flat-rate correction of 5 % — shortcomings in key controls: processing tomatoes delivered by PO G

EUR

– 366 752,30

0,00

– 366 752,30

2002-2003

Animal Premiums

GR

2120 , 2122 , 2125 , 2124 , 2128

Flat-rate correction of 25 % on the amounts net of the 2,2 % — absence of a key control: non-operational status of the I&R database and deficiency in on-the-spot checks

EUR

– 15 616 929,93

0,00

– 15 616 929,93

2000-2001

Animal Premiums

GR

2220 , 2222

Financial impact of the correction imposed for the financial years 1999-2000 (Commission Decision No 2003/536/EC) on the expenditure declared in financial year 2002

EUR

– 43 594,40

0,00

– 43 594,40

2002

Animal Premiums

GR

2540 , 2320

Correction: over-declaration of expenditure to the EAGGF, ineligible inclusion of VAT — production and marketing of honey

EUR

– 83 730,89

0,00

– 83 730,89

1999-2002

Total GR

– 41 105 403,25

0,00

– 41 105 403,25

Animal Premiums

ES

2220 , 2221

Flat-rate correction of 5 % — shortcomings in key and ancillary controls — ovine premium

EUR

– 893 597,52

0,00

– 893 597,52

2000-2002

Financial audit

ES

1049 , 1055 , 1210 , 1400 , 1402 , 1515 , 1610 , 1800 , 2124 , 2125 , 2320

Correction — application of Regulation (EC) No 1258/99 — non-respect of payment deadlines

EUR

– 11 491 292,34

– 11 835 994,73

344 702,39

2002

Total ES

– 12 384 889,86

– 11 835 994,73

– 548 895,13

Financial audit

FI

2124 , 2125

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 58 459,31

– 58 459,31

0,00

2002

Total FI

– 58 459,31

– 58 459,31

0,00

Animal Premiums

FR

2120 , 2122 , 2125 , 2124 , 2128

Correction of total expenditure — Haute-Corse — bovine premium

EUR

– 22 639 501,84

0,00

– 22 639 501,84

2001-2003

Animal Premiums

FR

2120 , 2122 , 2125 , 2124 , 2128

Flat-rate correction of 2 % — shortcomings in on-the-spot checks in the view of not fully operational database: bovine premium

EUR

– 28 134 491,21

0,00

– 28 134 491,21

2003

Animal Premiums

FR

2220 , 2222

Flat-rate correction of 2 % — shortcomings in on-the-spot checks

EUR

– 1 934 036,76

0,00

– 1 934 036,76

2001-2003

Animal Premiums

FR

2220 , 2222

Flat-rate correction of 10 % — shortcomings in key controls — Haute-Corse — ovine premium

EUR

– 386 031,63

0,00

– 386 031,63

2000-2002

Financial audit

FR

1210 , 1611 , 1612 , 2124 , 2125 , 2128

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 10 297 687,75

– 10 297 687,75

0,00

2002

Total FR

– 63 391 749,19

– 10 297 687,75

– 53 094 061,44

Financial audit

IE

1049 , 2125

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 53 301,01

– 75 116,75

21 815,74

2002

Total IE

– 53 301,01

– 75 116,75

21 815,74

Animal Premium

IT

2120 , 2122 , 2125 , 2124 , 2128

Flat-rate correction of 10 % — ineffective key controls, not fully operational I&R database, flat-rate correction of 5 % and 2 % lack or deficiency in control and administration of the scheme and on-the-spot checks

EUR

– 21 098 010,70

0,00

– 21 098 010,70

1999-2001

Rural development

IT

4051 , 4072

Correction — corrigendum ad hoc Decision No 15 — flat-rate correction of 2 % and 5 % for failings in the management and control system

EUR

– 40 000,00

0,00

– 40 000,00

2001-2002

Total IT

– 21 138 010,70

0,00

– 21 138 010,70

Financial audit

LU

1051 , 2124

Correction — application of Regulation (EC) No 258/1999 — non-respect of payment deadlines

EUR

– 132 220,46

– 132 220,46

0,00

2002

Total LU

– 132 220,46

– 132 220,46

0,00

Export refunds

NL

2100-013 to 016

Flat-rate correction of 10 % and 5 % — Failure to implement and shortcomings in key controls — non-respect of Directive 91/628/EEC and Regulation (EC) No 615/98 provisions — export refunds for live cattle

EUR

– 1 064 627,33

0,00

– 1 064 627,33

1999-2001

Financial audit

NL

2120 , 2124 , 2125

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 470 165,16

– 470 165,16

0,00

2002

Total NL

– 1 534 792,49

– 470 165,16

– 1 064 627,33

Financial audit

PT

1050 , 1610 , 1800

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

EUR

– 44 704,67

– 44 704,67

0,00

2002

Total PT

– 44 704,67

– 44 704,67

0,00

Financial audit

UK

1054 , 1060 , 2125

Correction — application of Regulation (EC) No 1258/1999 — non-respect of payment deadlines

GBP

– 1 118 369,01

– 1 118 369,01

0,00

2002

Total UK

– 1 118 369,01

– 1 118 369,01

0,00

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