Judgment of the General Court (Third Chamber) of 25 November 2020 –

ACRE v Parliament

(Case T‑107/19)

(Institutional law – European Parliament – Decision declaring certain expenses of a political party ineligible for a grant for the year 2017 – Regulation (EC) No 2004/2003 – Prohibition of the funding of a national political party – Contribution or donation by a national political party – Principle of sound administration – Legal certainty – Equal treatment – Decision granting a contribution to a political party for 2019 and making pre-funding of 100% of the maximum amount of the contribution subject to certain prior repayments – Regulation (EU, Euratom) No 1141/2014 – Rights of defence)

1. Fundamental rights – Charter of Fundamental Rights of the European Union – Right to sound administration – Right to be heard – Scope (Charter of Fundamental Rights of the European Union, Art. 41) (see paras 25, 26)

2. European Parliament – Funding of political parties at European level – Ineligibility of certain expenses of a European political party for a grant and prohibition of the donation exceeding a certain amount – Right of the beneficiary of the grant to submit observations before the adoption of the decision – Time limit – Duty to act within a reasonable time (European Parliament and Council Regulation No 2004/2003) (see paras 31, 32)

3. European Parliament – Funding of political parties at European level – Prohibition of the indirect funding of a national political party – Conditions – Existence of an indirect financial advantage in favour of a national political party – Criteria for assessment (European Parliament and Council Regulation No 2004/2003, Art. 7(1)) (see paras 53, 61)

4. EU law – Principles – Legal certainty – EU rules – Requirements of clarity and foreseeability – Use of undetermined legal concepts requiring interpretation and application by the administration – Whether permissible (see paras 65, 66, 68)

5. EU law – Principles – Equal treatment – Meaning – Limits – Need to comply with the principle of legality – Impossible to rely on an unlawful act committed in favour of another (see paras 77, 173)

6. Judicial proceedings – Application initiating proceedings – Formal requirements – Clear and precise statement of the pleas relied on (Rules of Procedure of the General Court, Art. 76(d)) (see para. 113)

7. European Parliament – Funding of political parties at European level – Ineligibility of certain expenses of a European political party for a grant and prohibition of the donation exceeding a certain amount – Infringement of the right to freedom of expression and the right to freedom of association – None (Charter of Fundamental Rights of the European Union, Arts 11 and 12; European Parliament and Council Regulation No 2004/2003) (see para. 114)

8. European Parliament – Funding of political parties at European level – Obligations related to funding – Prohibition of the donation exceeding a certain amount and originating from a national political party which is not a member of a political party at European level – Concept of ‘political party’ – Criteria for assessment (European Parliament and Council Regulation No 2004/2003, Arts 2(1) and 6(2) and (3)) (see paras 157-161)

9. EU law – Principles – Protection of legitimate expectations – Conditions – Specific assurances given by the authorities (see para. 169)

10. EU law – Principles – Rights of the defence – Right to be heard – Scope – Adoption of a decision of the European Parliament granting a contribution to a European political party and making pre-funding equivalent to the total amount of the contribution subject to certain prior repayments – Impossible for that political party to make known its views on the relevance of the facts or documents used during the adoption of that decision – Infringement of the right to be heard (see paras 182-184, 186, 189, 190)

Re:

Application pursuant to Article 263 TFEU seeking, first, partial annulment of the decision of the Parliament of 10 December 2018 declaring certain expenditure ineligible for the purposes of a grant for 2017 and ordering repayment of a donation and, secondly, of Parliament Decision FINS-2019-5, notified to the applicant on 14 January 2019, concerning the award of a contribution to the applicant for 2019, in so far as that decision makes pre-funding equivalent to 100% of the maximum amount of the contribution subject to certain prior repayments.

Operative part

The Court:

1. Annuls the decision of the Parliament of 10 December 2018 declaring certain expenses ineligible for a grant for the year 2017 and ordering the return of a donation in so far as it reclassifies the expenses relating to the conference held in Kampala (Uganda) from 13 to 15 July 2017, namely EUR 91 546.58, as ineligible for funding;

2. Annuls Decision FINS-2019-5 of the Parliament of 14 January 2019 on the granting of a contribution to the Alliance of Conservatives and Reformists in Europe (ACRE) for the year 2019 in so far as Article I.5.1 thereof makes the payment of pre-funding equivalent to 100% of the maximum amount of the contribution subject to certain prior reimbursements;

3. Dismisses the action as to the remainder;

4. Orders the European Parliament, in addition to bearing its own costs, to pay one third of those incurred by ACRE. ACRE is to bear two thirds of its own costs;