Judgment — ECLI:EU:C:2006:640
Date: 2006-10-05
Language of the case: Portuguese
Court formation: Second Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Economic, social and territorial cohesion
Concepts: Structural funds
Procedure: Action for failure to fulfil obligations - successful
Origin: Portugal

Summary of the Judgment Economic and social cohesion – Structural assistance – Community financing – Grant of EAGGF financial aid (Council Regulation No 4253/88, Art. 21(3), second subpara., as amended by Regulation No 2082/93) The second subparagraph of Article 21(3) of Regulation No 4253/88 laying down provisions for implementing Regulation (EEC) No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments, as amended by Regulation No 2082/93, which provides that payments are to be made to the final beneficiaries without any deduction or retention which could reduce the amount of financial assistance to which they are entitled, prohibits the authorities in the Member States from making a deduction from the payments made or from demanding the payment of administrative fees charged for processing applications and having the effect of reducing the amount of the aid. That prohibition covers the levying by the authority designated by a Member State as sole national interlocutor of the Guidance Section of the EAGGF of charges on beneficiaries corresponding to a percentage of the total amount of the project financed, and which thus proportionally reduce the amounts received by the beneficiaries by way of assistance granted by the Guidance Section of the EAGGF. The prohibition on any deduction extends to all charges which are directly and inseparably linked to the amounts disbursed to farmers, and not merely deductions which are actually made on the occasion of payments. (see paras 33, 35-39)