Judgment — ECLI:EU:T:2018:881
Date: 2018-12-06
Language of the case: Portuguese
Subject matter: Agriculture and Fisheries;European Agricultural Guidance and Guarantee Fund (EAGGF)
Procedure: Action for annulment - unfounded
Origin: Portugal

Summary — Judgment of the General Court (Ninth Chamber), 6 December 2018 1. Agriculture — EAFRD financing — Clearance of accounts — Elaboration of decisions — Written communication by the Commission to Member States of the results of its checks — Effects of non-compliance (Council Regulation No 1290/2005, Art. 31(4)(c); Commission Regulation No 885/2006, Art. 11(1)) 2. Agriculture — EAFRD financing — Clearance of accounts — Limitation of refusal of financing — Twenty-four month period — Point from which time starts to run — Communication by the Commission of the results of checks — Date of payment of the aid to be taken into consideration for calculating the period – Date of payment of the balance of the aid — Application of a financial correction to payments made prior to the relevant period of 24 months — Conditions (Council Regulation No 1290/2005, Art. 31(4)(c)) 3. Agriculture — 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 4. Agriculture — EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate financial correction adopted by the Commission in accordance with the internal guidelines regarding the clearance of the accounts of the EAGGF — Guarantee — Application by the Commission of those internal guidelines in the context of the clearance of the accounts of funds other than the EAGGF — Guarantee — Whether permissible 5. Agriculture — EAGGF financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Assessment of the losses incurred by the Fund — Irregular expenses not capable of determination with sufficient precision — Assessment based on flat-rate corrections — Whether permissible 6. Agriculture — EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate financial correction adopted by the Commission in accordance with the internal guidelines regarding the clearance of the accounts of the EAGGF — Guarantee — Controls not giving the expected level of regularity of claims — Whether permissible to apply a flat rate of 5% where weaknesses found in key controls established by a Member State in the sector concerned 7. Agriculture — EAFRD financing — Principles — Disallowance of expenses arising from irregularities in applying EU rules — Financial correction — Conditions — Existence of a significant failing exposing the EAFRD to a genuine risk of loss 1. See the text of the decision. (see paras 17, 18, 58) 2. The date which must be regarded as decisive as regards assessment of whether a payment was made within the period of 24 months must be that on which the final amount of the aid is fixed and the balance paid by the Member State concerned. It follows that, in accordance with the terms used in Article 31(4)(c) of Regulation No 1290/2005 on the financing of the common agricultural policy — which mentions ‘expenditure’ for which ‘payment’ or, as the case may be, ‘payment of the balance’ was made prior to the beginning of the relevant period of 24 months — the Commission may apply a financial correction to payments made prior to the beginning of that period where they relate to expenditure for which the final amount is fixed and the balance is paid by the Member State concerned after the beginning of the relevant period of 24 months. (see para. 19) 3. See the text of the decision. (see paras 32-34, 49-52) 4. See the text of the decision. (see para. 53) 5. See the text of the decision. (see para. 53) 6. See the text of the decision. (see paras 54, 55) 7. See the text of the decision. (see para. 62)