Action brought on 22 November 2022 — Complejo Agrícola Las Lomas v Commission

(Case T-729/22)

(2023/C 24/89)

Language of the case: Spanish

Parties

Applicant: Complejo Agrícola Las Lomas SL (Madrid, Spain) (represented by: J. Sedano Lorenzo, lawyer)

Defendant: European Commission

Form of order sought

The applicant claims that the Court should:

— declare null and without legal effect section 4.1.8 of Spain’s CAP 2023-2027 strategic plan approved by Commission Implementing Decision of 31 August 2022 approving the 2023-2027 CAP Strategic Plan of Spain for Union support financed by the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development, which imposes a cap of EUR 200 000 on the basic income support received by each farmer (‘the measure’).

Pleas in law and main arguments

In support of the action, the applicant relies on four pleas in law.

1. First plea in law, alleging infringement of Article 17 of Regulation (EU) 2021/2115 (1) establishing rules on support for national strategic plans for the CAP and repealing Regulations (EU) 1305/2013 and (EU) 1307/2013. — The applicant claims that Regulation (EU) 2021/2115 allows Member States to determine which interventions among those listed in Chapters II, III and IV of Title II best suit their specific needs and how to structure them. However, the contested decision includes an intervention other than those provided for in that article, with the result that the Commission acted ultra vires and went beyond the mandate of Regulation (EU) 2021/2115.

2. Second plea in law, alleging a complete lack of analysis and assessment of the effects of the cap of EUR 200 000, accepted without reservations, applied to the basic income support provided for by the CAP. — The applicant claims that no assessment of the effects of the measure was carried out at Spanish or at EU level during the drafting of the contested decision. If even a preliminary review had taken place, it would have shown that the measure is contrary to the objectives of the CAP as set out in Articles 5 and 6 of Regulation (EU) 2021/2115.

3. Third plea in law, alleging distortion of the single market and competition detrimental to Spanish farmers. — The applicant claims that the contested decision results in a serious and unjustified distortion of the internal market, as well as fragmentation of the CAP in one of its key mechanisms. The measure places Spanish farmers in a worse position than their European counterparts.

4. Fourth plea in law, alleging breach of the principle of proportionality. — The applicant claims that the measure is in breach of the principle of proportionality in so far as it is not appropriate or necessary for the purposes of achieving the aim pursued and results in an excessive and unjustified sacrifice for farm owners and their workers, which is in no way offset by achieving an overriding public interest.

(1) Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 (OJ 2021 L 435, p. 1).