62020TJ0010_INF
Judgment of the General Court (Fourth Chamber) of 9 March 2022 –Italy v Commission
(Case T‑10/20) (
1
)
(EAGF and EAFRD – Expenditure excluded from financing – Area-related aid scheme – Financial corrections – Article 52(2) of Regulation (EU) No 1306/2013 – Article 12(2) and (6) of Delegated Regulation (EU) No 907/2014 – Definition of ‘permanent grasslands’ – Article 4(1)(h) of Regulation (EU) No 1307/2013 – Producer organisation and operational programmes – Articles 26, 27, 31, 104 and 106 of Implementing Regulation (EU) No 543/2011 – Article 155 of Regulation (EU) No 1308/2013 – Delegated Regulation (EU) No 499/2014 – Public procurement procedure – Article 24(2)(c) and Article 26(1)(d) of Regulation (EU) No 65/2011 – Article 48(2) and Article 51(1) of Implementing Regulation (EU) No 809/2014 – Risk of financial loss)
1.
Agriculture – Common agricultural policy – Direct support schemes – Common rules – Basic payment system rights – Permanent grasslands – Definition – Criterion – Possibility for the Member State to exclude scrub from permanent grasslands – Condition – Predominance of herbaceous forage – Choice made in respect of land which is not predominantly made up of grasses or other herbaceous forage – Irrelevant
(European Parliament and Council Regulation No 1307/2013, Art. 4(1)(h))
(see paras 120, 121, 124, 125, 128, 133, 142)
2.
Agriculture – Financing by the EAGF – Clearance of accounts – Disallowance of expenses arising from irregularities in applying EU rules – Finding of defects in the control system established by a Member State – Systemic inadequacy of the prior checks in respect of operational programmes
(Commission Regulation No 543/2011, Art. 104(2))
(see paras 172, 176, 177)
3.
Agriculture – Common organisation of the markets – Fruit and vegetables – Producer organisations – Recognition of those organisations by the national authorities where essential activities are outsourced – Conditions – Assessment of the main activities carried out by producer organisations and of the activities which can be outsourced – Point at which the Member State verifies compliance with the criteria set for outsourcing
(European Parliament and Council Regulation No 1308/2013, Art. 155; Commission Regulation No 543/2011, Arts 26 and 27)
(see paras 184, 201, 203-206)
4.
Agriculture – Common organisation of the markets – Fruit and vegetables – Producer organisations – Recognition of those organisations by the national authorities where essential activities are outsourced – Inadequate monitoring of the granting of recognition of producer organisations – Burden of proof
(European Parliament and Council Regulation No 1308/2013, Art. 155; Commission Regulation No 543/2011, Arts 26 and 27)
(see paras 208, 209, 215, 216)
5.
Agriculture – Common organisation of the markets – Fruit and vegetables – Producer organisations – Financing by the EAGF – Recognition of those organisations by national authorities – Condition – Democratic operation
(Commission Regulation No 543/2011, Arts 31 and 106(1))
(see paras 235-239)
6.
Agriculture – Financing by the EAGF and the EAFRD – Grant of aid and premiums – Obligation on the Member States to organise an effective system of administrative and on-site inspections – Procedures for the award of public works contracts – Single work – Definition – Artificial splitting of a single work – Justification – Absence
(Commission Regulation No 65/2011, Arts 24(2)(c) and 26(1)(d); European Parliament and Council Directive 2004/18, Arts 1(2)(b) and 9(3))
(see paras 255, 259, 262, 268-270, 272-275, 277, 278)
7.
Approximation of laws – Procedures for the award of public works contracts, public supply contracts and public service contracts – Directive 2004/18 – Award of contracts – Award criteria – Compliance with the principle of equal treatment of tenderers and the obligation of transparency
(European Parliament and Council Directive 2004/18, Arts 2, 43 and 53)
(see paras 288-291, 300, 302-306)
Operative part
The Court:
1.
Annuls Commission Implementing Decision (EU) 2019/1835 of 30 October 2019 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) in so far as it imposes a flat rate correction of 2% on the Italian Republic relating to area aid granted in Italy in the amount of EUR 143 924 279.14 for the claim years 2015 and 2016 and a flat rate correction of 10% in the amount of EUR 72 704.23 relating to sample/payment No 8 concerning the commune of Campoli Monte Taburno, pursuant to Measure 322, included in rural development measures for the claim years 2014, 2015 and 2016;
2.
Dismisses the action as to the remainder;
3.
Orders the Italian Republic and the European Commission to bear their own costs.
(
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)	OJ C 68, 2.3.2020.