62017TJ0480_INF
Judgment of the General Court (Second Chamber) of 26 March 2019 –Greece v Commission
(Case T‑480/17)
(EAGF and EAFRD — Expenditure excluded from financing — Expenditure incurred by Greece — One-off and flat-rate financial corrections — Cross compliance — Monitoring of statutory management requirements — Risk analysis — Assessment of the financial loss — Obligation to state reasons — Proportionality)
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
(European Parliament and Council Regulation No 1306/2013; Council Regulation No 73/2009, Art. 22(1); Commission Regulation No 1122/2009, Art. 26(1); Council Directive 79/409, Art. 5(a), (b) and (d))
(see paras 36-39, 45)
2.
Agriculture — EAGF and EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate correction issued by the Commission in accordance with internal guidelines — Application in the absence of information allowing the financial damage caused to the European Union to be accurately assessed — Presentation by the Member State concerned of a calculation based on a comparison with the results of checks carried out outside the financial year in question — Inadequate nature
(European Parliament and Council Regulation No 1306/2013, Art. 52(1) and (2))
(see paras 48, 97-99)
3.
Agriculture — EAGF and EAFRD financing — Grant of aid and premiums — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Non-performance — Failure to fulfil obligations — National system pleaded as justification — Not permissible
(Commission Regulation No 1974/2006, Annex II, 5.3.2.1)
(see para. 53)
4.
Acts of the institutions — Statement of reasons — Obligation — Scope — Account-clearing decision for expenses financed by EAGGF and EAFRD
(Art. 296 TFEU; European Parliament and Council Regulation No 1306/2013, Art. 52(3))
(see paras 57, 76-78, 134-136)
5.
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 para. 79)
6.
Agriculture — EAGF and EAFRD financing — Accounts clearance procedure — Conciliation procedure — Opinion of the conciliation body — No binding effect
(European Parliament and Council Regulation No 1306/2013, Art. 52(3))
(see paras 80, 120, 137, 146)
7.
Agriculture — EAGF and EAFRD financing — 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 — Breach of principle of proportionality — None
(European Parliament and Council Regulation No 1306/2013, Art. 52)
(see paras 156-158)
Re:
Application under Article 263 TFEU for annulment of Commission Implementing Decision (EU) 2017/1144 of 26 June 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 165, p. 37), in so far as it imposes on the Hellenic Republic, following the investigation under reference XC/2014/002/GR, one-off and flat-rate financial corrections amounting in total to EUR 1 182 054.17 because of weaknesses in the application of cross compliance (EAGF and EAFRD).
Operative part
The Court:
1.
Dismisses the action;
2.
Orders the Hellenic Republic to pay the costs.