# L_2005112EN.01001401.xml

| 3.5.2005 | EN | Official Journal of the European Union | L 112/14 |
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3.5.2005

EN

Official Journal of the European Union

L 112/14

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COMMISSION DECISION

of 29 April 2005

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(2005) 1307)

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

(2005/354/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to 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 twenty-four 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 twenty-four 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 31 October 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 31 October 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 Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Kingdom of the Netherlands, the Portuguese Republic, and the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 29 April 2005.

For the Commission

Mariann FISCHER BOEL

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 465/2005 (OJ L 77, 23.3.2005, p. 6).

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

| Sector | Member State | Budget item | Reason | National Currency | Expenditure to exclude from financing | Deductions already made | Financial impact of this decision | Financial year |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Financial audit | BE | Various | Flat-rate corrections 2 % — Failure to comply with approval criterion laid down in Regulation (EC) No 1663/95 | EUR | – 354 172,05 | 0,00 | – 354 172,05 | 2000-2001 |
| | Total BE | | | | – 354 172,05 | 0,00 | – 354 172,05 | |
| Export refunds | DE | 2100-013 to 2100-016 | Disallow all expenditure on export refunds of live cattle for rail transport and flat-rate correction of 5 % to exports for road transport — failure to comply with Directive 91/628/EEC and Regulation (EC) No 615/98 | EUR | – 13 823 822,23 | 0,00 | – 13 823 822,23 | 1999-2001 |
| Public storage | DE | 2111, 2112, 2113 | Shortcomings in tendering procedure + delivery of consignments less than the 10 tonnes required by Article 17(1) of Regulation (EC) No 562/2000 | EUR | – 3 860 285,14 | 0,00 | – 3 860 285,14 | 2001-2002 |
| | Total DE | | | | – 17 684 107,37 | 0,00 | – 17 684 107,37 | |
| Financial audit | DK | Various | Correction — Application of Regulation (EC) No 1258/99 — Failure to comply with payment deadlines | DKK | – 4 910,60 | – 346 907,17 | 341 996,57 | 2002 |
| | Total DK | | | | – 4 910,60 | – 346 907,17 | 341 996,57 | |
| Livestock premiums | GR | 2129 | Flat-rate corrections of 2 % — absence of identification and registration system | EUR | – 33 809,35 | 0,00 | – 33 809,35 | 2001-2002 |
| Arable crops | GR | 1041-1060, 1310, 1858 | Flat-rate corrections of 5 % — insufficient assurance provided that claims are regular | EUR | – 25 361 283,00 | 0,00 | – 25 361 283,00 | 2002 |
| Olive oil | GR | 1220 | Delays withdrawing accreditation and imposing quality penalties | EUR | – 200 146,68 | 0,00 | – 200 146,68 | 1996-1998 |
| Financial audit | GR | Various | Correction — application of Regulation (EC) No 1258/99 — failure to comply with payment deadlines | EUR | – 875 706,08 | – 1 083 685,95 | 207 979,87 | 2001 |
| | Total GR | | | | – 26 470 945,11 | – 1 083 685,95 | – 25 387 259,16 | |
| Fruit and vegetables | ES | 1508 | Flat-rate corrections of 5 % for shortcomings in the key checks/compensation in the banana sector | EUR | – 348 947,00 | 0,00 | – 348 947,00 | 2000 |
| Flax and hemp | ES | 1400, 1402 | Flat-rate corrections of 25 % for flax and 10 % and 25 % for hemp — major shortcomings in the control system | EUR | – 21 077 981,00 | 0,00 | – 21 077 981,00 | 1996-2000 |
| Flax | ES | 1400 | Flat-rate corrections of 100 % — major shortcomings in the control system + general fraud | EUR | – 113 399 346,00 | 0,00 | – 113 399 346,00 | 1999-2004 |
| Rural development | ES | 4051-4072 | Flat-rate corrections of 2 % — Shortcomings in the application of the management and control system — Agri and forestry measures — national level | EUR | – 71 222,00 | 0,00 | – 71 222,00 | 2001-2002 |
| Rural development | ES | 4051 | Flat-rate corrections of 2 % and 5 % — Shortcomings in the application of the management and control system — Agri measures (Andalusia) | EUR | – 8 067,00 | 0,00 | – 8 067,00 | 2001-2002 |
| Rural development | ES | 4051 | Flat-rate corrections of 5 % — Shortcomings in the application of the management and control system — Agri measures (Castille-La Mancha) | EUR | – 1 186,00 | 0,00 | – 1 186,00 | 2001-2002 |
| | Total ES | | | | – 134 906 749,00 | 0,00 | – 134 906 749,00 | |
| Export refunds | FR | 2100-013 to 2100-016 | Flat-rate corrections of 5 % — inadequate controls — and 10 % — weaknesses detected in how the controls laid down by Article 4 of Regulation (EC) No 615/98 are organised | EUR | – 1 649 755,75 | 0,00 | – 1 649 755,75 | 1999-2001 |
| Livestock premiums | FR | 2120, 2122, 2124, 2125, 2128 | Flat-rate corrections of 2 % — correction at national level —, 5 % — national database not operational and cross-checks not performed and 10 % — absence of checks despite high level of anomalies noted | EUR | – 293 300,82 | 0,00 | – 293 300,82 | 2001-2003 |
| Fruit and vegetables | FR | 1508 | Flat-rate corrections of 10 % (Guadeloupe) and 5 % (Martinique) for shortcomings in key checks/ compensation in banana sector | EUR | – 14 216 626,64 | 0,00 | – 14 216 626,64 | 2001-2003 |
| Financial audit | FR | Various | Certification of 2001 accounts — anomalies and shortcomings in the management of the aid by several paying agencies under various budget lines | EUR | – 1 234 211,49 | 0,00 | – 1 234 211,49 | 2001 |
| Financial audit | FR | 4040-4051 | Certification of 2001 accounts — anomalies and shortcomings in the management of the aid by several paying agencies under various budget lines | EUR | – 1 058 464,21 | 0,00 | – 1 058 464,21 | 2001 |
| | Total FR | | | | – 18 452 358,91 | 0,00 | – 18 452 358,91 | |
| Olive oil | IT | 1210 | Ceiling for maximum actual production of olive oil exceeded in marketing years 1998/1999 and 1999/2000 | EUR | – 68 708 032,11 | 0,00 | – 68 708 032,11 | 2000-2003 |
| | Total IT | | | | – 68 708 032,11 | 0,00 | – 68 708 032,11 | |
| Fruit and vegetables | NL | 1502 | Correction for expenditure exceeding the flat rate of 2 % | EUR | – 68 812,25 | 0,00 | – 68 812,25 | 2003 |
| | Total NL | | | | – 68 812,25 | 0,00 | – 68 812,25 | |
| Fruit and vegetables | PT | 1502 | Correction — operational programmes — application of Article 4 of Regulation (EC) No 296/96 — payment deadlines | EUR | – 78 935,21 | 0,00 | – 78 935,21 | 2002 |
| | Total PT | | | | – 78 935,21 | 0,00 | – 78 935,21 | |
| Milk | UK | 2071 | Corrigendum to financial correction in the 1994 Clearance of Accounts Decision 98/358/EC | GBP | 76 152,65 | 0,00 | 76 152,65 | 1991-1993 |
| Rural development | UK | 40 | Correction — error in the application of exchange rate in calculating the advance | GBP | – 151 106,80 | 0,00 | – 151 106,80 | 2000 |
| Livestock premiums | UK | 2120, 2122, 2124, 2125, 2128 | Flat-rate correction 2 % and 5 % — weaknesses as regards identification and registration, minimum level of on-site audits provided for in Article 6(3) of Regulation (EEC) No 3887/92 not achieved for claim year 2000 | GBP | – 6 822 958,75 | 0,00 | – 6 822 958,75 | 2000-2001 |
| Livestock Premiums | UK | 2126 | Flat-rate corrections of 5 % and 10 % — control weaknesses in the initial period of operation | GBP | – 566 921,00 | 0,00 | – 566 921,00 | 1998 |
| Livestock Premiums | UK | 3700 | Correction of an amount already reimbursed: irregularity — Decision 2003/481/EC of 27 June 2003 | GBP | 43 474,18 | 0,00 | 43 474,18 | 1995 |
| | Total UK | | | | – 7 421 359,72 | 0,00 | – 7 421 359,72 | |

Sector

Member State

Budget item

Reason

National Currency

Expenditure to exclude from financing

Deductions already made

Financial impact of this decision

Financial year

Financial audit

BE

Various

Flat-rate corrections 2 % — Failure to comply with approval criterion laid down in Regulation (EC) No 1663/95

EUR

– 354 172,05

0,00

– 354 172,05

2000-2001

Total BE

– 354 172,05

0,00

– 354 172,05

Export refunds

DE

2100-013 to 2100-016

Disallow all expenditure on export refunds of live cattle for rail transport and flat-rate correction of 5 % to exports for road transport — failure to comply with Directive 91/628/EEC and Regulation (EC) No 615/98

EUR

– 13 823 822,23

0,00

– 13 823 822,23

1999-2001

Public storage

DE

2111, 2112, 2113

Shortcomings in tendering procedure + delivery of consignments less than the 10 tonnes required by Article 17(1) of Regulation (EC) No 562/2000

EUR

– 3 860 285,14

0,00

– 3 860 285,14

2001-2002

Total DE

– 17 684 107,37

0,00

– 17 684 107,37

Financial audit

DK

Various

Correction — Application of Regulation (EC) No 1258/99 — Failure to comply with payment deadlines

DKK

– 4 910,60

– 346 907,17

341 996,57

2002

Total DK

– 4 910,60

– 346 907,17

341 996,57

Livestock premiums

GR

2129

Flat-rate corrections of 2 % — absence of identification and registration system

EUR

– 33 809,35

0,00

– 33 809,35

2001-2002

Arable crops

GR

1041-1060, 1310, 1858

Flat-rate corrections of 5 % — insufficient assurance provided that claims are regular

EUR

– 25 361 283,00

0,00

– 25 361 283,00

2002

Olive oil

GR

1220

Delays withdrawing accreditation and imposing quality penalties

EUR

– 200 146,68

0,00

– 200 146,68

1996-1998

Financial audit

GR

Various

Correction — application of Regulation (EC) No 1258/99 — failure to comply with payment deadlines

EUR

– 875 706,08

– 1 083 685,95

207 979,87

2001

Total GR

– 26 470 945,11

– 1 083 685,95

– 25 387 259,16

Fruit and vegetables

ES

1508

Flat-rate corrections of 5 % for shortcomings in the key checks/compensation in the banana sector

EUR

– 348 947,00

0,00

– 348 947,00

2000

Flax and hemp

ES

1400, 1402

Flat-rate corrections of 25 % for flax and 10 % and 25 % for hemp — major shortcomings in the control system

EUR

– 21 077 981,00

0,00

– 21 077 981,00

1996-2000

Flax

ES

1400

Flat-rate corrections of 100 % — major shortcomings in the control system + general fraud

EUR

– 113 399 346,00

0,00

– 113 399 346,00

1999-2004

Rural development

ES

4051-4072

Flat-rate corrections of 2 % — Shortcomings in the application of the management and control system — Agri and forestry measures — national level

EUR

– 71 222,00

0,00

– 71 222,00

2001-2002

Rural development

ES

4051

Flat-rate corrections of 2 % and 5 % — Shortcomings in the application of the management and control system — Agri measures (Andalusia)

EUR

– 8 067,00

0,00

– 8 067,00

2001-2002

Rural development

ES

4051

Flat-rate corrections of 5 % — Shortcomings in the application of the management and control system — Agri measures (Castille-La Mancha)

EUR

– 1 186,00

0,00

– 1 186,00

2001-2002

Total ES

– 134 906 749,00

0,00

– 134 906 749,00

Export refunds

FR

2100-013 to 2100-016

Flat-rate corrections of 5 % — inadequate controls — and 10 % — weaknesses detected in how the controls laid down by Article 4 of Regulation (EC) No 615/98 are organised

EUR

– 1 649 755,75

0,00

– 1 649 755,75

1999-2001

Livestock premiums

FR

2120, 2122, 2124, 2125, 2128

Flat-rate corrections of 2 % — correction at national level —, 5 % — national database not operational and cross-checks not performed and 10 % — absence of checks despite high level of anomalies noted

EUR

– 293 300,82

0,00

– 293 300,82

2001-2003

Fruit and vegetables

FR

1508

Flat-rate corrections of 10 % (Guadeloupe) and 5 % (Martinique) for shortcomings in key checks/ compensation in banana sector

EUR

– 14 216 626,64

0,00

– 14 216 626,64

2001-2003

Financial audit

FR

Various

Certification of 2001 accounts — anomalies and shortcomings in the management of the aid by several paying agencies under various budget lines

EUR

– 1 234 211,49

0,00

– 1 234 211,49

2001

Financial audit

FR

4040-4051

Certification of 2001 accounts — anomalies and shortcomings in the management of the aid by several paying agencies under various budget lines

EUR

– 1 058 464,21

0,00

– 1 058 464,21

2001

Total FR

– 18 452 358,91

0,00

– 18 452 358,91

Olive oil

IT

1210

Ceiling for maximum actual production of olive oil exceeded in marketing years 1998/1999 and 1999/2000

EUR

– 68 708 032,11

0,00

– 68 708 032,11

2000-2003

Total IT

– 68 708 032,11

0,00

– 68 708 032,11

Fruit and vegetables

NL

1502

Correction for expenditure exceeding the flat rate of 2 %

EUR

– 68 812,25

0,00

– 68 812,25

2003

Total NL

– 68 812,25

0,00

– 68 812,25

Fruit and vegetables

PT

1502

Correction — operational programmes — application of Article 4 of Regulation (EC) No 296/96 — payment deadlines

EUR

– 78 935,21

0,00

– 78 935,21

2002

Total PT

– 78 935,21

0,00

– 78 935,21

Milk

UK

2071

Corrigendum to financial correction in the 1994 Clearance of Accounts Decision 98/358/EC

GBP

76 152,65

0,00

76 152,65

1991-1993

Rural development

UK

40

Correction — error in the application of exchange rate in calculating the advance

GBP

– 151 106,80

0,00

– 151 106,80

2000

Livestock premiums

UK

2120, 2122, 2124, 2125, 2128

Flat-rate correction 2 % and 5 % — weaknesses as regards identification and registration, minimum level of on-site audits provided for in Article 6(3) of Regulation (EEC) No 3887/92 not achieved for claim year 2000

GBP

– 6 822 958,75

0,00

– 6 822 958,75

2000-2001

Livestock Premiums

UK

2126

Flat-rate corrections of 5 % and 10 % — control weaknesses in the initial period of operation

GBP

– 566 921,00

0,00

– 566 921,00

1998

Livestock Premiums

UK

3700

Correction of an amount already reimbursed: irregularity — Decision 2003/481/EC of 27 June 2003

GBP

43 474,18

0,00

43 474,18

1995

Total UK

– 7 421 359,72

0,00

– 7 421 359,72

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