Judgment of the General Court (Fifth Chamber) of 15 July 2015 —

Spain v Commission

(Case T‑561/13)

‛EAGGF — Guarantee Section — EAGF and EAFRD — Expenditure excluded from financing — Rural development programme for Galicia (2007 2013) — Rural development support measures — Compensation payments for natural handicaps — Expenses incurred by Spain — On-the-spot checks — Obligation to carry out a census of animals — Article 10(2) and (4) and Article 14(2) of Regulation (EC) No 1975/2006 — Article 35(1) of Regulation (EC) No 796/2004 — Default procedure’

1. Judicial proceedings — Admissibility of actions — Assessment having regard to rules in force at the time the application lodged (Rules of Procedure of the General Court, Art. 122(1)) (see para. 24)

2. Judicial proceedings — Action before the General Court — Application of the default procedure — No obligation of Court to rule on the applicant’s pleas — No obligation on the Court to hold a hearing (Rules of Procedure of the General Court, Art. 122) (see para. 26)

3. Agriculture — Common agricultural policy — EAGF and EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Requirement for a census of animals — Holding benefiting from a surface aid scheme — No effect (Commission Regulations No 796/2004, Art. 28(1), and No 1975/2006, Arts 10 and 12 to 14) (see paras 40, 43, 46, 48, 58, 60, 61, 67, 68, 89)

4. Acts of the institutions — Regulations — Regulation prescribing specific control measures — No Member State discretion — Non-implementation — Justification — Other control system more efficient — Inadmissibility (Commission Regulation No 1975/2006, Arts 10(4), and 14(2)) (see paras 66, 91)

5. Agriculture — Common agricultural policy — EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Requirement for a census of animals — Application of checks only to holdings benefiting from aid based on the number of animals declared, to the exclusion of those benefiting from surface aid — Not permissible — Breach of the principle of equal treatment (Charter of Fundamental Rights of the European Union, Art. 21; Commission Regulations No 796/2004, Art. 35(1), and No 1975/2006, Arts 10(4), and 14(2)) (see paras 74, 83, 84)

6. Agriculture — Common agricultural policy — EAGF and EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Two types of control independent in character (Commission Regulations No 1082/2003, Art. 2(2), and No 1975/2006, Art. 14(2)) (see para. 102)

Re:

ACTION for partial annulment of Commission Implementing Decision 2013/433/EU of 13 August 2013 on excluding from European Union financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (OJ 2013 L 219, p. 49) in so far as it concerns expenditure incurred by the Kingdom of Spain amounting to EUR 757 968.97.

Operative part

The Court:

1. Dismisses the action;

2. Orders the Kingdom of Spain to bear its own costs.

Judgment of the General Court (Fifth Chamber) of 15 July 2015 —

Spain v Commission

(Case T‑561/13)

‛EAGGF — Guarantee Section — EAGF and EAFRD — Expenditure excluded from financing — Rural development programme for Galicia (2007 2013) — Rural development support measures — Compensation payments for natural handicaps — Expenses incurred by Spain — On-the-spot checks — Obligation to carry out a census of animals — Article 10(2) and (4) and Article 14(2) of Regulation (EC) No 1975/2006 — Article 35(1) of Regulation (EC) No 796/2004 — Default procedure’

1. Judicial proceedings — Admissibility of actions — Assessment having regard to rules in force at the time the application lodged (Rules of Procedure of the General Court, Art. 122(1)) (see para. 24)

2. Judicial proceedings — Action before the General Court — Application of the default procedure — No obligation of Court to rule on the applicant’s pleas — No obligation on the Court to hold a hearing (Rules of Procedure of the General Court, Art. 122) (see para. 26)

3. Agriculture — Common agricultural policy — EAGF and EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Requirement for a census of animals — Holding benefiting from a surface aid scheme — No effect (Commission Regulations No 796/2004, Art. 28(1), and No 1975/2006, Arts 10 and 12 to 14) (see paras 40, 43, 46, 48, 58, 60, 61, 67, 68, 89)

4. Acts of the institutions — Regulations — Regulation prescribing specific control measures — No Member State discretion — Non-implementation — Justification — Other control system more efficient — Inadmissibility (Commission Regulation No 1975/2006, Arts 10(4), and 14(2)) (see paras 66, 91)

5. Agriculture — Common agricultural policy — EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Requirement for a census of animals — Application of checks only to holdings benefiting from aid based on the number of animals declared, to the exclusion of those benefiting from surface aid — Not permissible — Breach of the principle of equal treatment (Charter of Fundamental Rights of the European Union, Art. 21; Commission Regulations No 796/2004, Art. 35(1), and No 1975/2006, Arts 10(4), and 14(2)) (see paras 74, 83, 84)

6. Agriculture — Common agricultural policy — EAGF and EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Two types of control independent in character (Commission Regulations No 1082/2003, Art. 2(2), and No 1975/2006, Art. 14(2)) (see para. 102)

Re:

ACTION for partial annulment of Commission Implementing Decision 2013/433/EU of 13 August 2013 on excluding from European Union financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (OJ 2013 L 219, p. 49) in so far as it concerns expenditure incurred by the Kingdom of Spain amounting to EUR 757 968.97.

Operative part

The Court:

1. Dismisses the action;