Judgment of the General Court (Third Chamber) of 27 April 2016 —

ANKO v Commission

(Case T‑154/14)

‛Arbitration clause — Subsidy contracts concluded in the context of the Seventh framework programme for research, technological development and demonstration activities (2007-2013) — Perform and Oasis projects — Eligible costs — Reimbursement of sums paid — Counter-claim — Default interest’

1. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Drawing up of an audit report by the Commission — Audit report not constituting a document preparatory to a measure adversely affecting the applicant — Audi alteram partem principle and right to be heard not applicable (Arts 288 TFEU and 299 TFEU) (see paras 58-60)

2. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Financing covering only expenses actually incurred — Demonstration that the expenses actually incurred — Burden of proof (Art. 317 TFEU) (see paras 67-69, 124, 125)

3. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Financing covering only expenses actually incurred — Demonstration that the expenses actually incurred — Staff costs — Non-compliance with obligation to produce reliable time-sheets in order to justify the staff costs declared by way of implementation of the agreements — Ineligible expenses (see paras 84-94)

4. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Financing covering only expenses actually incurred — Demonstration that the expenses actually incurred — Financial audit established by the Commission — Refusal to grant access to information requested by the auditors — Infringement of the conditions for granting the assistance (see paras 106-116)

5. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Financing covering only expenses actually incurred — Proceedings brought by the Commission for the recovery of advances made in the context of the assistance — Claim for recovery arising from stipulations in the contracts — Proportionality principle not applicable (see para. 130)

6. EU budget — EU financial assistance — Obligation on the beneficiary to comply with the conditions for grant of the assistance — Financing covering only expenses actually incurred — Proceedings brought by the Commission for the recovery of advances made in the context of the assistance — Account taken of the conclusions of a final audit report (see para. 138)

Re:

APPLICATIONS, under Article 272 TFEU, seeking, on the one hand, first, a declaration that the Commission’s demand for reimbursement of the subsidies paid to the applicant in implementation of contracts No. 215754 ‘Open architecture for accessible services, integration and standardisation’ and No. 215952 ‘A complex multi-parameter system for the effective and ongoing evaluation and monitoring of motor capacity in sufferers of Parkinson’s disease and other neurodegenerative illnesses’ concluded in the context of the Seventh framework programme for research, technological development and demonstration activities (2007-2013) is unfounded, and, second, to order the Commission to pay the balance of the unpaid subsidies under those contracts and, on the other, to order the applicant, by way of counterclaim, to reimburse the subsidies unduly paid under those contracts.

Operative part

The Court:

1. Dismisses the action brought by ANKO AE Antiprosopeion, Emporiou kai Viomichanias;

2. Orders ANKO AE Antiprosopeion, Emporiou kai Viomichanias to pay the European Commission the sum of EUR 650625.37, corresponding to the reimbursement of the financial contributions which it received under contracts No. 215754 ‘Open architecture for accessible services, integration and standardisation’ and No. 215952 ‘A complex multi-parameter system for the effective and ongoing evaluation and monitoring of motor capacity in sufferers of Parkinson’s disease and other neurodegenerative illnesses’ concluded in the context of the Seventh framework programme for research, technological development and demonstration activities (2007-2013), plus default interest as from 3 May 2014 at the rate of 3.75%;