COMMISSION DECISION of 29 November 1988 on the clearance of the accounts presented by the Member States in respect of the expenditure for 1986 of the Guarantee Section of the European Agricultural Guidance and Guarantee Fund
(88/630/CEE) THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (1), as last amended by Regulation (EEC) No 2048/88 (2), and in particular Article 5 (2) thereof,
After consulting the Fund Committee,
Whereas, pursuant to Article 5 (2) (b) of Regulation (EEC) No 729/70, the Commission, on the basis of the annual accounts presented by the Member States, clears the accounts of the authorities and bodies referred to in Article 4 of that Regulation;
Whereas the Member States have transmitted to the Commission the documents required to clear the accounts for 1986 and that the latter has carried out on-the-spot inspections as provided for in Article 9 (2) of Regulation (EEC) No 729/70;
Whereas Article 8 of Commission Regulation (EEC) No 1723/72 of 26 July 1972 on the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund, Guarantee Section (3), as last amended by Regulation (EEC) No 295/88 (4), provides that the decision to clear the accounts must include the determination of the amount of expenditure incurred in each Member State during the financial year in question recognized as chargeable to the Guarantee Section of the Fund, and also the determination of the amount of the Community's financial resources still available in each Member State; whereas Article 99 of the Financial Regulation of 21 December 1977 (5), as last amended by Regulation (ECSC, EEC, Euratom) No 2049/88 (6), provides that the outcome of the clearance decision, i.e. any discrepancy which may exist between the (7) OJ No L 94, 28. 4. 1970, p. 13.
(8) OJ No L 185, 15. 7. 1988, p. 1.
(9) OJ No L 186, 16. 8. 1972, p. 1.
(10) OJ No L 30, 2. 2. 1988, p. 7.
(11) OJ No L 356, 31. 12. 1977, p. 1.
(12) OJ No L 185, 15. 7. 1988, p. 3.
total expenditure booked to the accounts for a financial year pursuant to Articles 97 and 98 and the total expenditure recognized as allowable by the Commission when clearing the accounts is to be booked, under a single article, as additional expenditure or a reduction in expenditure;
Whereas, pursuant to Articles 2 and 3 of Regulation (EEC) No 729/70, only refunds on exports to third countries and intervention to stabilize agricultural markets, respectively granted and undertaken according to Community rules within the framework of the common organization of agricultural markets, may be financed; whereas the inspections carried out show that a part of the expenditure declared by the Member States does not meet these conditions and therefore must be disallowed; whereas the amounts declared by each of the Member States concerned, those recognized as chargeable to the EAGGF Guarantee Section and the differences between the two amounts and the differences between the expenditure recognized as chargeable to the EAGGF Guarantee Section and that charged in respect of the year are shown in the Annex to this Decision;
Whereas the Member States have been fully informed of the corrections made to their accounts, and have been able to give their views thereon;
Whereas the expenses declared by Greece relating to production aid for olive oil amounting to Dr 22 797 088 960 and declared by Italy relating to colouring of cereals amounting to Lit 681 842 945 are not covered by this Decision, given that further examination of these cases is necessary; whereas these amounts must therefore be deducted from the expenditure declared in respect of the year under consideration and will be cleared subsequently;
Whereas in addition, in the case of Belgium, Denmark, Germany, France, Italy and the Netherlands, the possible financial consequences resulting from the non-application of the system of additional levies in the milk sector or from its incorrect application must be the subject of re-examination, whereas clearance will therefore be performed subsequently in these instances;
Whereas the expenditure disallowed for Germany comprises an amount of DM 130 442,48 in respect of a security for a certain quantity of wheat starch which should have been credited to EAGGF; whereas the expenditure disallowed for France comprises an amount of FF 204 473,93 to be repaid by a trader and to be credited to EAGGF; whereas these amounts must be charged to the Member States pursuant to this Decision;
Whereas the special circumstances of these cases, however, justify re-examination by the Commission of the disallowance during the present clearance, provided the Member States provide the necessary evidence by 30 November 1988 at the latest; whereas this Decision is none the less immediately applicable;
Whereas the expenditure disallowed for Italy comprises an amount of Lit 19 264 427 054 in respect of aid for the consumption of olive oil; whereas that amount must be charged to the Member State pursuant to this Decision; whereas the special circumstances of this case, however, justify re-examination by the Commission of the disallowance during the present clearance, provided the Member State provides the necessary evidence by 30 November 1988 at the latest; whereas this Decision is none the less immediately applicable;
Whereas the expenditure disallowed for Italy comprises an amount of Lit 2 067 024 055 in respect of monetary compensatory amounts charged in 1986 and declared as own resources; whereas that amount must be charged to the Member State pursuant to this Decision; whereas the exact amount of this financial correction must still be calculated on the basis of extra information to be supplied by Italy by 30 November 1988 at the latest; whereas this Decision is none the less immediately applicable;
Whereas, when clearing the accounts for 1985, in the case of Belgium the Commission deferred reaching a definite conclusion on certain expenditure provisionally financed pending the outcome of an inquiry underway in the pigmeat sector; whereas this Decision rules as to the further action to be taken with regard to this case, details of which have been notified to the Member State;
Whereas the Court of Justice, by its judgment in Case 349/85, annulled the accounts clearance Decisions in respect of Denmark for 1980 and 1981, because they had disallowed certain amounts relating to refunds on beef preserves; whereas, pending the receipt of additional information from that Member State, the financial consequences of that judgment will be taken into account in any subsequent clearance Decision; whereas, on the other hand, in the present clearance it is necessary to accept, in accordance with Article 176 of the Treaty, claims which were disallowed, for the same reason, in respect of the years 1980 to 1985, namely a total of FF 54 252 196,40 in the case of France and a total of £ 830 446,77 in the case of the United Kingdom;
Whereas, by its judgment in Case 256/85, the Court of Justice annulled Commission Decision C(85) 839 of 7 June 1985 concerning the fixing of a flat-rate amount for the reimbursement of certain expenditure resulting from the treatment of certain cereals denatured or dyed with a view to their use as animal feed; whereas, as a result, in accordance with Article 176 of the Treaty, in the present clearance a claim in respect of Bfrs 1 571 647 for 1984 must be accepted in the case of Belgium and a claim in respect of DM 67 275,13 for 1984 in the case of Germany, while claims in respect of £ Irl 34 089 for 1983 and £ Irl 1 840,64 for 1984 in the case of Ireland and £ 13 875,03 for 1984 in the case of the United Kingdom must be disallowed; whereas in the case of Italy and Greece the correction will be made subsequently;
Whereas, pursuant to Council Regulation (EEC) No 1078/77 of 17 May 1977 setting up a system of milk non-marketing and dairy herd conversion premiums (13), as last amended by Regulation (EEC) No 1300/84 (14), 60 % of the expenditure relating to these schemes is chargeable to the EAGGF Guarantee Section and 40 % is chargeable to the Guidance Section; whereas these schemes rank as intervention within the meaning of Article 3 of Regulation (EEC) No 729/70 and constitute a common measure within the meaning of Article 6 (1) of that Regulation; whereas it is therefore necessary to include Guidance Section expenditure when clearing the accounts in respect of expenditure financed by the EAGGF;
Whereas this Decision is without prejudice to any financial consequences which may be drawn in any subsequent clearance of accounts in respect of national aids or infringements for which the procedures started under Articles 93 and 169 of the Treaty are now being implemented or were terminated after 29 February 1988 or to any consequences relating to infringements committed in 1986 or to national aids incompatible with the Treaty paid in 1986 and liable to affect EAGGF expenditure during a year subsequent to 1986;
Whereas this Decision is without prejudice to any financial consequences resulting, during a subsequent accounts clearance procedure taken by the Commission, from current investigations underway at the time of this Decision, from irregularities within the meaning of Article 8 of Regulation (EEC) No 729/70 or from judgments of the Court of Justice in cases now pending and relating to matters covered by this Decision;
Whereas, as the clearance of accounts concerning food aid operations has not yet been concluded, the financial consequences for the Guarantee Section will be determined during as subsequent clearance of accounts,
(15) OJ No L 131, 26. 5. 1977, p. 1.
(16) OJ No L 125, 12. 5. 1984, p. 3.
HAS ADOPTED THIS DECISION:
Article 1 The Member States' accounts concerning expenditure financed by the EAGGF Guarantee Section in respect of 1986 are hereby cleared as indicated in the Annex to this Decision.
Article 2 The expenditure chargeable to the Member State shown at line 2 (e) of column (c) of the Annex for each of the Member States must be paid to the account referred to in Article 1 (1) of Commission Regulation (EEC) No 2776/88 (17) or to the account of the paying department or agency within one month of the notification of this Decision. Should a Member State be entitled to payment of additional expenditure, it shall draw the amount shown in line 2 (e) of column (c) in the Annex from one of the abovementioned accounts, within the same time limit.
Article 3 This Decision is addressed to the Member States.
Done at Brussels, 29 November 1988.