Judgment of the General Court (Fifth Chamber) of 7 May 2019 –Spain v Commission
(Case T‑49/17)
(EAGF and EAFRD — Expenditure excluded from financing — Financial corrections — Meaning of ‘producer’ — Investments made outside the premises of a producer organisation — Checks carried out before the approval of an operational programme — Check carried out in the authorisation of expenditure — Single financial correction — Flat-rate financial correction — Proportionality — Duty to state reasons)
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
(Commission Regulation No 1580/2007, Arts 105 and 106)
(see paras 88-94)
2.      Acts of the institutions — Statement of reasons — Obligation — Scope — Account-clearing decision for expenses financed by EAGGF and EAFRD
(Art. 296 TFEU)
(see paras 238-240)
3.      Action for annulment — Contested act — Assessment of legality in the light of the information available at the time of adoption of the measure
(Art. 263 TFEU)
(see para. 303)
Re:
Application on the basis of Article 263 TFEU seeking the annulment in part of Commission Implementing Decision (EU) 2016/2018 of 15 November 2016, 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 2016, L 312, p. 26).
Operative part
The Court:
1.
Dismisses the action;
2.
Orders the Kingdom of Spain to pay the costs.