Judgment of the Court of 21 February 1989. - Hellenic Republic v Commission of the European Communities. - Clearance of EAGGF accounts - Financial year 1982. - Case 214/86.



European Court reports 1989 Page 00367

Pub.RJ Page Pub somm



Summary

Parties

Operative part



Keywords

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1 . Measures adopted by the institutions - Statement of reasons - Obligation - Scope - Decision relating to the clearance of the accounts of expenditure financed by the EAGGF

( EEC Treaty, Art . 190 )

2 . Agriculture - Common agricultural policy - Financing by the EAGGF - Principles - Regularity of expenditure incurred by way of intervention - Obligations of the Member States - Commission' s power to check - Scope

( Council Regulation No 729/70, Art . 8(1 ) and ( 9 ) )

3 . Agriculture - EAGGF - Clearance of accounts - Refusal to charge expenditure incurred in respect of irregularities in the application of Community rules - Challenge by the Member State concerned - Burden of proof

( Regulation No 729/70 of the Council )

Summary

1 . A decision concerning the clearance of accounts of expenditure payable out of the EAGGF and refusing to charge part of the expenditure declared does not require detailed reasons if the government concerned was closely involved in the preparation of the decision and is therefore aware of the reason for which the Commission considers that it does not have to charge the sums in dispute to the EAGGF ( see judgment of 24 March 1988 in Case 347/85 United Kingdom v Commission (( 1988 )) ECR 1749 ).

2 . According to Article 8(1 ) of Regulation No 729/70 on the financing of the common agricultural policy the Member States must satisfy themselves that transactions financed by the EAGGF are actually carried out and are executed correctly . Although it is not the duty of the Commission to check the regularity of each intervention measure when it is carried out, on the other hand it is entitled to use the power of supervision conferred on it by Article 9 at any time and in particular when it receives information leading it to doubt the effectiveness of the national verifications .

3 . When the Commission refuses to charge certain expenditure to the EAGGF on the ground that it was incurred as a result of breaches of Community rules imputable to a Member State, it is for that Member State to show that the conditions are satisfied for obtaining the financing disallowed by the Commission ( see judgment in Case 347/85, supra ).

Parties

In Case 214/86

Hellenic Republic, represented by its Agents S . Perrakis, Legal Adviser in the European Communities Department of the Ministry of Foreign Affairs, V . Zorbas, Legal Adviser in the Ministry of Economic Affairs, and M . Tsotsanis, lawyer in the Ministry of Agriculture, with an address for service in Luxembourg at the Greek Embassy, 117 Val-Sainte-Croix,

applicant,

v

Commission of the European Communities, represented by D . Gouloussis and P . Karpenstein, both Advisers in its Legal Department, acting as Agents, with an address for service in Luxembourg at the office of G . Kremlis, a Member of its Legal Department, Wagner Centre, Kirchberg,

defendant,

APPLICATION for a declaration that Commission Decision 86/441 of 20 June 1986 on the clearance of the accounts presented by the Hellenic Republic in respect of expenditure financed by the European Agricultural Guidance and Guarantee Fund, Guarantee Section for 1982 ( Official Journal L 256, p . 24 ) is void,

THE COURT

composed of O . Due, President, T . Koopmans, R . Joliet, F . Grévisse ( Presidents of Chambers ), Sir Gordon Slynn, C . N . Kakouris, J . C . Moitinho de Almeida, G . C . Rodríguez Iglesias and M . Díez de Velasco, Judges,

( the grounds of the judgment are not reproduced )

hereby :

Operative part

( 1 ) Dismisses the application;

( 2 ) Orders the Hellenic Republic to pay the costs, including those relating to the proceedings on the application for interim measures .