Case C-312/02

Kingdom of Sweden

v

Commission of the European Communities

(Action for annulment – EAGGF – Expenditure excluded from Community financing – Support for producers of certain arable crops – Common organisation of the market in beef and veal)

Summary of the Judgment

1. Agriculture – Common agricultural policy – Support system for producers of certain arable crops – Common organisation of the markets – Beef and veal – Payments to compensate for the loss of income attributable to the reform of the common agricultural policy – Requirement to pay the amounts in question in full to the beneficiaries – Scope – Collection by the national authorities of a fee in consideration for the issue to farmers of a map to be attached to their aid applications – Prohibited – Coexisting applications for arable or fodder area aid and applications for agro-environmental or regional aid – No bearing

(Council Regulation No 805/68, Art. 30a; Council Regulation No 1765/92, Art. 15(3))

2. Agriculture – Common agricultural policy – EAGGF financing – Principles – Obligation on the Commission to disallow irregular expenditure – Irregularities tolerated in respect of a financial year on grounds of fairness – Strict application of the rules in respect of the following financial year – Breach of the principles of legal certainty and protection of legitimate expectations – None

1. Article 15(3) of Regulation No 1765/92 establishing a support system for producers of certain arable crops and Article 30a of Regulation No 805/68 on the common organisation of the market in beef and veal, which require the compensatory payments and premiums provided for under the regulations in question, the purpose of which is to grant compensation to the farmers affected by the consequences of the reform of the common agricultural policy, to be paid in full to the beneficiaries, prohibit national authorities from making a deduction from the payments made or from demanding the payment of administrative fees relating to applications and having the effect of reducing the amount of the aid.

The system under which persons intending to apply for Community aid must pay a fee in order to obtain from the national authorities a map which has to be attached to their application falls within that prohibition. The prohibition on any deduction extends to all charges which are directly and inseparably linked to the amounts disbursed to farmers and not only to deductions which are actually made on the occasion of payments.

If the provisions cited above are not to be rendered redundant, the fact that some farmers applied for both aid under Regulation No 1765/92 or Regulation No 805/68 and agro-environmental or regional aid for the same areas does not, moreover, have any bearing on the prohibition on the Member States from making deductions from the amounts received by the beneficiaries as aid for arable crops or fodder areas.

(see paras 19, 22, 24, 38-39, 41)

2. The fact that the Commission did not carry out, in a check made in connection with the management of the accounts of the Guarantee Section of the EAGGF, the correction due in respect of a previous year, but tolerated the irregularities on grounds of fairness, does not in any way permit the Member State concerned to demand that the same position be taken with regard to the irregularities with respect to the following financial year by virtue of the principle of legal certainty or the principle of protection of legitimate expectations.

(see para. 28)