62020TJ0537_INF
Judgment of the General Court (Seventh Chamber) of 7 December 2022 –Lithuania v Commission
(Case T‑537/20) (
1
)
(EAGF and EAFRD – Expenditure excluded from financing – Expenditure by Lithuania – Aid for early retirement – Article 52(2) of Regulation (EU) No 1306/2013 – Article 34(6) and Article 35(1) of Implementing Regulation (EU) No 908/2014)
1.
Agriculture – EAGF and 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 – New data resulting from additional checks communicated by the Member State concerned not having sufficient probative value – Application of flat-rate correction – Whether permissible – Breach of the principles of proportionality and of sincere cooperation – None
(European Parliament and Council Regulation No 1306/2013, Arts 5 and 52; Commission Regulations No 907/2014, Art. 12, and No 908/2014, Art. 34)
(see paragraphs 38-41, 52, 74, 75, 77, 79, 93, 118, 125, 126)
2.
Agriculture – EAGF and EAFRD financing – 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 – Challenge by the Member State concerned – Obligation on the Commission to respond to evidence put forward by the Member State concerning the financial consequences of the defects
(European Parliament and Council Regulation No 1306/2013, Art. 52)
(see paragraph 54)
3.
Agriculture – Common agricultural policy – EAGGF, EAGF and EAFRD financing – Support for rural development – Mechanism granting aid for early retirement – Regulations No 1257/1999 and No 1698/2005 – Conditions for granting – Exercise of an agricultural activity for commercial purposes before the surrender of the holding – Criteria for assessment
(Council Regulations No 1257/1999, Art. 11(1), and No 1698/2005, Art. 23(2))
(see paragraphs 84-86)
4.
Agriculture – EAGF and EAFRD financing – Clearance of accounts – Implementing decision imposing a flat-rate financial correction – De minimis threshold
(Commission Regulation No 908/2014, Art. 35(1))
(see paragraphs 130, 134)
Operative part
The Court:
1.
Dismisses the action;
2.
Orders the Republic of Lithuania to pay the costs.
(
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)	OJ C 359, 26.10.2020.