Judgment — ECLI:EU:T:2019:233
Date: 2019-04-10
Language of the case: Polish
Court formation: Sixth Chamber
Subject matter: Agriculture and Fisheries;European Agricultural Guidance and Guarantee Fund (EAGGF)
Procedure: Action for annulment - unfounded
Origin: Poland

Judgment of the General Court (Sixth Chamber) of 10 April 2019 – Poland v Commission (Case T‑51/17) (EAGF and EAFRD — Expenditure excluded from EU financing — Fruit and vegetable sector — Aid to producer groups — Expenditure effected by Poland — Weaknesses in key controls — Checks on recognition plans and on recognition criteria — Checks on applications for aid — Economic consistency — Reasonableness of expenditure — Systemic weakness — Risk to EAGF — Flat rate corrections of 25%) 1. Agriculture — EAGF and EAFRD financing — Grant of aid and premiums — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Scope — Unreliable controls — Disallowance (Art. 4(3) TEU; Council Regulation No 1290/2005, Art. 9(1)(a)(i)) (see paras 30, 32, 33) 2. Agriculture — EAGF and EAFRD financing — Principles — Equal treatment of economic operators — Varying interpretations of EU law by Member States — Distortions of competition — Not permissible (European Parliament and Council Regulation No 1306/2013; Council Regulation No 1290/2005) (see paras 31, 79, 106) 3. Agriculture — EAGF and EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Challenge by the Member State concerned — Burden of proof — Shared by the Commission and the Member State (European Parliament and Council Regulation No 1306/2013, Art. 52; Council Regulation No 1290/2005, Art. 31) (see paras 34-38, 113, 136, 196, 237) 4. EU law — Interpretation — Methods — Literal, systematic and teleological interpretation — Account to be taken of the purpose and general system of the measure in question (Arts 39 and 40(1) TFEU; Council Regulation No 1234/2007; Commission Regulation No 543/2011) (see paras 77, 78, 80) 5. Agriculture — EAGF and EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Financial correction — Account taken of irregularities which did not have a precise financial impact — Lawfulness (European Parliament and Council Regulation No 1306/2013; Council Regulation No 1290/2005) (see paras 229, 230) 6. EU law — Principles — Proportionality — Scope (Art. 5(4) TEU) (see para. 231) Re: Action under Article 263 TFEU for partial annulment of Commission Implementing Decision (EU) 2016/2018 of 15 November 2016 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (JO 2016, L 312, p. 26) concerning the flat rate corrections applied in respect of the Republic of Poland. Operative part The Court: 1. Dismisses the action; 2. Orders the Republic of Poland to pay, in addition to its own costs, three quarters of the costs incurred by the European Commission; 3. Orders the Commission to pay one quarter of its own costs.