62018TJ0021_INF
Judgment of the General Court (Sixth Chamber) of 17 December 2019 –Poland v Commission
(Case T‑21/18)
(EAGF and EAFRD — Expenditure excluded from financing — Fruit and vegetable sectors — Aid to producer groups — Expenditure incurred by Poland — Deficiencies in key and secondary controls — Verification of recognition plans and recognition criteria — Checks on applications for aid — Eligibility of producer groups — Economic consistency — Necessity and eligibility for financing — Reasonableness of the expenditure — Systemic deficiencies — Risk to EAGF — Corrective measures — Flat-rate corrections of 25%)
1.
Agriculture — Financing by the EAGF — Principles — Compliance of the expenditure with the EU rules — Restrictive interpretation — Need to ensure equal treatment of economic operators
(European Parliament and Council Regulation No 1306/2013; European Parliament and Council Regulation No 1290/2005)
(see paras 82, 106)
2.
Agriculture — Financing by the EAGF — Grant of aid and premiums — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Scope
(Art. 4(3) TEU; European Parliament and Council Regulation No 1306/2013, Art. 58(1)(a) and (2); Council Regulation No 1290/2005, Art. 9(1)(a)(i) and (b))
(see paras 83-85)
3.
Agriculture — Common organisation of the markets — Fruit and vegetables — Producer groups — Status of the founder members — Condition — Producer status
(Council Regulation No 1234/2007, Art. 125e, (1); Commission Regulations No 1580/2007, Arts 32 and 38(2)(a) and No 543/2011, Arts 30 and 36(2)(a))
(see paras 107, 110, 111)
4.
Agriculture — Common organisation of the markets — Fruit and vegetables — Producer groups — Financing by the EAGF — Recognition of those groups by the national authorities — Verification of recognition plans and checks on applications for aid — Verification of producer status — Scope
(Council Regulation No 1234/2007, Art. 125e, (1); Commission Regulations No 1580/2007, Arts 39, 44, 113(2)(a) and 114, and No 543/2011, Arts 37, 42, 111(2)(a) and 112)
(see paras 119, 120, 123, 124)
5.
Agriculture — Common organisation of the markets — Fruit and vegetables — Producer groups — Financing by the EAGF — Recognition of those groups by the national authorities — Verification of recognition plans and checks on applications for aid — Verification of the necessity and eligibility for financing of investments proposed in the recognition plans — Criteria for assessment — Economic consistency, need for investment and reasonableness of the expenditure — Scope
(Arts 39 and 40 TFEU; Council Regulation No 1234/2007, Arts 103a and 125e; Commission Regulation No 543/2011)
(see paras 182, 186, 188, 192, 193, 197, 198)
6.
Agriculture — Financing by the EAGF — 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 — Whether permissible
(European Parliament and Council Regulation No 1306/2013, Art. 52(2))
(see paras 236-238)
7.
Agriculture — Financing by the EAGF — Principles — Disallowance of expenses arising from practices incompatible with EU law — Commission’s margin of discretion — None
(European Parliament and Council Regulation No 1306/2013; Council Regulation No 1290/2005)
(see para. 240)
8.
Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Financial correction — Account taken of irregularities which did not have a precise financial impact — Whether permissible
(European Parliament and Council Regulation No 1306/2013; Council Regulation No 1290/2005)
(see para. 241)
9.
Member States — Obligations — Failure to fulfil obligations — Justification alleging difficulties in interpretation — Not permissible
(Art. 4(3) TEU; Council Regulation No 1234/2007; Commission Regulations No 1580/2007 and No 543/2011)
(see para. 253)
Re:
Application under Article 263 TFEU seeking the partial annulment of Commission Implementing Decision (EU) 2017/2014 of 8 November 2017 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 2017 L 292, p. 61).
Operative part
The Court:
1.
Dismisses the action;
2.
Orders the Republic of Poland to bear its own costs and to pay the costs incurred by the European Commission.