Judgment — ECLI:EU:T:2018:857
Date: 2018-11-29
Language of the case: Spanish
Court formation: Seventh Chamber
Subject matter: Agriculture and Fisheries;European Agricultural Guidance and Guarantee Fund (EAGGF)
Procedure: Action for annulment - unfounded;Action for annulment - successful
Origin: Spain

summary of the pleas in law on which the application is based — Abstract statement — Inadmissibility (Rules of Procedure of the General Court, Art. 76(d)) (see para. 26) 3. Agriculture — Common agricultural policy — Direct support schemes — Common rules — Single payment scheme — Permanent pastures — Definition — Surfaces with a marginal presence of ligneous plants — Included (Council Regulations No 1782/2003 and No 73/2009; Commission Regulations No 796/2004, Art. 2(2), and No 1120/2009, Art. 2(c)) (see paras 37-39, 105) 4. Agriculture — EAGF and EAFRD financing — Clearance of accounts — Procedure — Subject matter — Financial correction not constituting a penalty (see para. 43) 5. Agriculture — EAGF and EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Assessment of losses suffered by the funds — Irregular expenses not capable of being determined with sufficient precision — Assessment based on flat-rate corrections — Lawfulness — Condition — Observance of the principle of proportionality (Council Regulation No 1290/2005, Art. 31) (see paras 44, 90, 91) 6. Agriculture — EAGGF, EAGF and EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of controls — Scope (Council Regulation No 1782/2003; Commission Regulation No 796/2004, Art. 2(2)) (see paras 50, 68) 7. 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 (Council Regulation No 1290/2005, Art. 31) (see paras 67, 89) 8. Agriculture — Common agricultural policy — Direct support schemes — Common rules — Single payment scheme — Calculation of payment entitlements — Taking account of the farmland area — Farmer’s obligation to declare areas eligible for aid — Scope — Indication of areas not at his disposal at the time of the aid application — Not permissible (Council Regulation No 73/2009, Art. 35(1)) (see paras 93, 94, 96) 9. Agriculture — Common agricultural policy — Direct support schemes — Common rules — Single payment scheme — Calculation of payment entitlements — Taking account of the farmland area — Obligation to recalculate in the event of an incorrect determination of the area — Scope (Council Regulation No 73/2009, Art. 137(1); Commission Regulations No 796/2004, Art. 73a(2)a, and No 1122/2009, Art. 81) (see paras 118-121, 125) Re: Application based on Article 263 TFEU seeking partial annulment of Commission Implementing Decision (EU) 2016/1059 of 20 June 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) (OJ 2016 L 173, p. 59). Operative part The Court: 1. Annuls Commission Implementing Decision (EU) 2016/1059 of 20 June 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), in so far as it concerns the financial correction imposed on the Kingdom of Spain and in so far as it imposes – a flat-rate correction of 25% regarding wooded grazing pastures for the claim years 2010 to 2013; and – a flat-rate correction of 10% regarding shrub pastures declared by the ‘rearers’ for the claim years 2010 to 2013; 2. Dismisses the action as to the remainder; 3. Orders each party to bear its own costs.