Judgment — ECLI:EU:T:2001:160
Date: 2001-06-14
Language of the case: Spanish
Court formation: Fourth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Agriculture and Fisheries;European Agricultural Guidance and Guarantee Fund (EAGGF)
Concepts: Structural reform of agriculture: joint action;Structural funds;Interpretation of Community law
Procedure: Action for annulment - unfounded
Origin: Spain

Summary of the Judgment 
1. Community law — Interpretation — Acts of the institutions — Discrepancy 
between the wording of a provision and its title — Rule that provisions are to be 
construed in such a way that all the terms employed serve a useful purpose 
2. Economic and social cohesion — Structural assistance — Community funding — 
Discontinuance of EAGGF financial aid because of irregularities — Whether permis­
sible 
(Council Regulation No 4253/88, Art. 24(2)) 
3. Economic and social cohesion — Structural assistance — Community funding for 
national projects — Applicants for, and beneficiaries of, EAGGF financial aid 
required to provide information and to act in good faith 
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SUMMARY — CASE T-143/9 9 
4. Agriculture — Common agricultural policy — Structural reform — Common mea­
sures — Adjustment of agricultural structures and development of rural areas — 
Discontinuance of EAGGF financial aid for breach of fundamental obligations 
(Council Regulations No 2052/88, No 4253/88 and No 4256/88) 
1. Where there is a discrepancy between 
the wording of a provision and the title 
thereof, both must be construed in such 
a manner that all the terms employed 
serve a useful purpose. 
(see para. 40) 
2. A r t i c l e 24 (2 ) of R e g u l a t i o n 
No 4253/88 laying down provisions 
for implement ing Regu la t ion 
No 2052/88 as regards coordination 
of the activities of the different Struc­
tural Funds between themselves and 
with the operations of the European 
Investment Bank and the other existing 
financial instruments must be con­
strued as meaning that the Commission 
may discontinue aid from the EAGGF 
in the event of an irregularity. 
(see para. 40) 
3. Applicants for, and beneficiaries of, 
EAGGF financial aid are required to 
satisfy themselves that they are submit­
ting to the Commission reliable infor­
mation which is not liable to mislead it; 
otherwise the system of controls and 
evidence set up to determine whether 
the conditions for granting aid are 
fulfilled cannot function properly. In 
the absence of reliable information, 
projects which do not fulfil the condi­
tions required could become the subject 
of aid. It follows that the obligation on 
applicants for, and beneficiaries of, aid 
to provide information and act in good 
faith is inherent in the EAGGF aid 
system and essential for its effective 
functioning. 
(see para. 66) 
4. The infringement of obligations com­
pliance with which is of fundamental 
importance to the proper functioning 
of a Community system may be pena­
lised by forfeiture of a right conferred 
by Community legislation, such as 
entitlement to aid. 
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HORTIPLANT v COMMISSION 
The production of invoices and the 
charging of costs to the project which 
are not genuine by the beneficiary and 
the beneficiary's failure to meet a 
condition concerning part-financing of 
the project constitute serious infringe­
ments of essential obligations justifying 
cancellation of EAGGF financial aid 
granted under Regulation No 4256/88 
concerning the adjustment of agricul­
tural structures and the development of 
rural areas. 
(see paras 118-120) 
II - 1667