Judgment of the General Court (Fifth Chamber) of 12 September 2012 — Italy v Commission

(Case T-394/06)

‛EAGGF — ‘Guarantee’ section — Clearance of accounts — Expenditure excluded from financing — Irregularities or negligence attributable to administrations or bodies of Member States — Article 8(1) and (2) of Regulation (EEC) No 729/70 and Article 8(1) and (2) of Regulation (EC) No 1258/1999 — Excessive delay in assessment by the Commission of communications sent pursuant to Article 5(2) of Regulation (EEC) No 595/91 — Reasonable time limit’

1. Actions for annulment — Contested measure — Assessment of legality in the light of the information available at the time of adoption of the measure (Art. 230 EC) (see para. 43)

2. Proceedings — Time limit for producing evidence — Article 48(1) of the Rules of Procedure of the General Court — Scope (Rules of Procedure of the General Court, Arts 48(1) and 66(2)) (see para. 45)

3. Proceedings — Introduction of new pleas during the proceedings — Conditions — Amplification of an existing plea — Lawfulness (Rules of Procedure of the General Court, Art. 48(2)) (see para. 48)

4. Agriculture — Common agricultural policy — EAGGF financing — Accounts clearance procedure — Obligations of the Commission — Duty to act within a reasonable time — Criteria for assessment — Infringement — Consequences (Council Regulation No 595/91, Art. 5(2)) (see paras 60, 62-63, 68-69)

5. Agriculture — Common agricultural policy — EAGGF financing — Principles — Member States’ duty of diligence in recovering amounts irregularly paid — Scope (Art. 10 EC; Council Regulations No 729/70, Art. 8 and No 1258/99, Art. 8) (see paras 82-84)

6. Agriculture — Common agricultural policy — EAGGF financing — Principles — Member States’ duty of diligence in recovering amounts irregularly paid — Failure to fulfil obligations — Justification based on the length of procedures brought before national courts by economic operators — Not permissible — Effective application by the Member State of national law on the matter of recovery — Fact not establishing diligence (Art. 10 EC; Council Regulations No 729/70, Art. 8 and No 1258/99, Art. 8) (see paras 85, 91-92)

7. Agriculture — EAGGF — Clearance of accounts — Disallowance of expenditure arising from irregularities in the application of Community rules — Challenge by the Member State concerned — Burden of proof — Allocation between the Commission and the Member State (Art. 10 EC; Council Regulations No 729/70, Art. 8, and No 1258/99, Art. 8) (see paras 89-90, 193)

Re:

APPLICATION for annulment in part of Commission Decision 2006/678/EC of 3 October 2006 concerning the financial treatment to be applied, in the context of clearance of expenditure financed by the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section, in certain cases of irregularity by operators (OJ 2006 L 278, p. 24).

Operative part

The Court:

1. Dismisses the action;

2. Orders the Italian Republic to bear its own costs and to pay those incurred by the European Commission.

Judgment of the General Court (Fifth Chamber) of 12 September 2012 — Italy v Commission

(Case T-394/06)

‛EAGGF — ‘Guarantee’ section — Clearance of accounts — Expenditure excluded from financing — Irregularities or negligence attributable to administrations or bodies of Member States — Article 8(1) and (2) of Regulation (EEC) No 729/70 and Article 8(1) and (2) of Regulation (EC) No 1258/1999 — Excessive delay in assessment by the Commission of communications sent pursuant to Article 5(2) of Regulation (EEC) No 595/91 — Reasonable time limit’

1. Actions for annulment — Contested measure — Assessment of legality in the light of the information available at the time of adoption of the measure (Art. 230 EC) (see para. 43)

2. Proceedings — Time limit for producing evidence — Article 48(1) of the Rules of Procedure of the General Court — Scope (Rules of Procedure of the General Court, Arts 48(1) and 66(2)) (see para. 45)

3. Proceedings — Introduction of new pleas during the proceedings — Conditions — Amplification of an existing plea — Lawfulness (Rules of Procedure of the General Court, Art. 48(2)) (see para. 48)

4. Agriculture — Common agricultural policy — EAGGF financing — Accounts clearance procedure — Obligations of the Commission — Duty to act within a reasonable time — Criteria for assessment — Infringement — Consequences (Council Regulation No 595/91, Art. 5(2)) (see paras 60, 62-63, 68-69)

5. Agriculture — Common agricultural policy — EAGGF financing — Principles — Member States’ duty of diligence in recovering amounts irregularly paid — Scope (Art. 10 EC; Council Regulations No 729/70, Art. 8 and No 1258/99, Art. 8) (see paras 82-84)

6. Agriculture — Common agricultural policy — EAGGF financing — Principles — Member States’ duty of diligence in recovering amounts irregularly paid — Failure to fulfil obligations — Justification based on the length of procedures brought before national courts by economic operators — Not permissible — Effective application by the Member State of national law on the matter of recovery — Fact not establishing diligence (Art. 10 EC; Council Regulations No 729/70, Art. 8 and No 1258/99, Art. 8) (see paras 85, 91-92)

7. Agriculture — EAGGF — Clearance of accounts — Disallowance of expenditure arising from irregularities in the application of Community rules — Challenge by the Member State concerned — Burden of proof — Allocation between the Commission and the Member State (Art. 10 EC; Council Regulations No 729/70, Art. 8, and No 1258/99, Art. 8) (see paras 89-90, 193)

Re:

APPLICATION for annulment in part of Commission Decision 2006/678/EC of 3 October 2006 concerning the financial treatment to be applied, in the context of clearance of expenditure financed by the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section, in certain cases of irregularity by operators (OJ 2006 L 278, p. 24).

Operative part

The Court:

1. Dismisses the action;