62018TJ0505_INF
Judgment of the General Court (Ninth Chamber) of 12 February 2020 –Hungary v Commission
(Case T‑505/18)
(EAGF and EAFRD — Expenditure excluded from financing — Support for rural development — Support granted to producer groups — Expenditure incurred by Hungary — Article 35 of Regulation (EC) No 1698/2005 — Qualified recognition — Eligibility of the beneficiary of the aid — Calculated financial correction — Article 52(2) of Regulation (EU) No 1306/2013 — Sincere cooperation — Protection of legitimate expectations — Proportionality — Legal certainty — Ineligible amounts)
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
(see paras 34-36)
2.
Acts of the institutions — Regulations — Direct applicability — Competence for implementation conferred on a Member State — Limits
(Council Regulation No 1698/2005)
(see paras 37-39)
3.
Agriculture — EAGF and the EAFRD financing — Principles — Whether expenses comply with EU rules — Restrictive interpretation — Need to ensure equal treatment of economic operators
(Council Regulation No 1698/2005)
(see para. 41)
4.
Agriculture — EAFRD financing — Support for rural development — Eligibility of operations and expenses — Compliance with the selection criteria laid down by national law — Discretion of the Member States in fixing criteria — Limits — Application for the granting of aid to producer groups
(Council Regulation No 1698/2005, Arts 35 and 71(3))
(see paras 54-60)
5.
Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Finding of defects in the system for granting aid to producer groups — Implementation of a calculated financial correction — Whether permissible — Conditions — Breach of principle of proportionality –None — Breach of the principles of sincere cooperation, protection of legitimate expectations and legal certainty — None
(Council Regulation No 1698/2005, Recital 30 and Art. 35(1) and (2))
(see paras 77-80, 83-86, 92-109)
Re:
Application under Article 263 TFEU seeking partial annulment of Commission Implementing Decision (EU) 2018/873 of 13 June 2018 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 2018 L 152, p. 29).
Operative part
The Court:
1.
Dismisses the action;
2.
Orders Hungary to pay the costs.