Judgment;Information — ECLI:EU:T:2020:325
Date: 2020-07-08
Language of the case: Portuguese
Court formation: Seventh Chamber
Subject matter: Agriculture and Fisheries;European Agricultural Guidance and Guarantee Fund (EAGGF)
Procedure: Action for annulment - unfounded
Origin: Portugal

Judgment of the General Court (Seventh Chamber) of 8 July 2020 – Portugal v Commission (Case T‑38/19) (EAGF and EAFRD – Expenditure excluded from financing – Non-compliance with cross-compliance rules – Tolerance and leniency in sanctions – Flat-rate financial correction – Assessment of financial damage to the EU – Proportionality – Legitimate expectations) 1. Agriculture – Common agricultural policy – Integrated administration and control system for certain aid schemes – Reductions and exclusions where the rules on cross-compliance are not observed – Financial correction imposed on a Member State with a deficient control system – Basis of calculation – Farmers not subject to a check – Included – No breach of principle of proportionality (European Parliament and Council Regulation No 1306/2013, Art. 52; Council Regulations No 1290/2005, Art. 31, and No 73/2009; Commission Regulation No 1122/2009, Arts 50 and 51) (see paras 72-77, 80-82) 2. Agriculture – EAGF and EAFRD financing – Clearance of accounts – Definitive refusal to accept responsibility for certain expenses – Need for prior inter partes procedure (Commission Regulation No 908/2014, Art. 34) (see para. 93) 3. Agriculture – EAGF and EAFRD financing – Clearance of accounts – Disallowance of expenses arising from irregularities in applying EU rules – Financial correction – Assessment of the level of failure to act and the degree of risk for the Fund – Reliance by the Member State concerned on elements demonstrating a maximum loss for the Fund limited to an amount less than that resulting from the proposed flat rate – Deficient control system – Effect (Commission Regulation No 1122/2009, Art. 50) (see paras 97-100) Re: Application under Article 263 TFEU seeking partial annulment of Commission Implementing Decision (EU) 2018/1841 of 16 November 2018 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 2018 L 298, p. 34). Operative part The Court: 1. Dismisses the action; 2. Orders the Portuguese Republic to pay the costs.