Judgment — ECLI:EU:C:2012:673
Date: 2012-10-25
Language of the case: Finnish
Court formation: Eighth Chamber
Subject matter: Agriculture and Fisheries
Procedure: Reference for a preliminary ruling
Origin: Finland

Summary –– Judgment of the Court (Eighth Chamber), 25 October 2012 1. Acts of the institutions – Regulations – Direct applicability – Member State’s implementing powers – Limits 2. Agriculture – Common agricultural policy – Financing by the EAFRD – Community support for rural development – Setting up aid for young farmers – Conditions for granting – Setting up for the first time on an agricultural holding as head of the holding – Requirement not prejudging the legal form of such a holding – Exclusion of a young farmer who uses a legal person to set himself up – Not permissible (Art. 40(2), TFEU; Council Regulation No 1698/2005, Art. 22(1)(a)) 3. Agriculture – Common agricultural policy – Financing by the EAFRD – Community support for rural development – Setting up aid for young farmers – Conditions for granting – Setting up for the first time on an agricultural holding as head of the holding – Use of a limited company – Requirement of effective and long term control and management of the agricultural holding – Option for Member States to lay down the conditions for determining the capacity of the head of the holding – Limits – Normal provisions making the grant of and to a young farmer who has used a legal person to set up subject to him having decision-making pawer in the company – Lawfulness (Council Regulation No 1698/2005, Art. 22(1)(a)) 1. See the text of the decision. (see paras 35, 36) 2. See the text of the decision. (see paras 42-44) (cf. points 42-44) 3. Article 22(1)(a) of Regulation No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) must be interpreted as meaning that the requirement laid down by that provision that the person concerned must be setting up for the first time on an agricultural holding as ‘head of the holding’ means, in a situation in which the person concerned sets up using a limited company, that he has effective and long-term control and management of the agricultural holding. While it is open to the Member States to lay down conditions from which it may be concluded that an aid applicant has the capacity of head of the holding, this is subject to the proviso that such conditions do not go beyond the framework that they aim to define and, therefore, in compliance with the objectives pursued by Regulation No 1698/2005, ensure that that applicant has effective and long-term control and management of the agricultural holding. Such requirements are satisfied by national provisions which provide that, where a young farmer sets up using a legal person, the grant of aid is conditional on the fact that he has the decision-making power in the company, which requires that he holds more than half of the shares in that company and that those shares represent more than half of the votes. (see para. 61, operative part)