Keywords

Summary



Keywords

1 Acts of the institutions - Statement of reasons - Obligation - Scope - Decision relating to the clearance of accounts in respect of expenditure financed by the EAGGF

(EC Treaty, Art. 190 (now Art. 253 EC))

2 Agriculture - EAGGF - Clearance of accounts - Disallowance of expenditure arising from irregularities in the application of the Community rules - Disputed by the Member State concerned - Burden of proof

(Council Regulation No 729/70)

3 Agriculture - Common agricultural policy - EAGGF financing - Principles - Expenditure must be in conformity with the Community rules - Member States under an obligation to monitor compliance

(EC Treaty, Art. 5 (now Art. 10 EC); Council Regulation No 729/70, Art. 8(1))

Summary

1 In the specific context of the preparation of decisions on the clearance of accounts in respect of expenditure financed by the EAGGF, the reasons for a decision disallowing certain expenditure must be regarded as adequate if the Member State to which the decision is addressed was closely involved in the process leading to the decision and is therefore aware of the reasons for the Commission's view that the sum in dispute should not be charged to the EAGGF.

2 When the Commission refuses to charge certain expenditure to the EAGGF on the ground that it was incurred as a result of breaches of Community rules for which a Member State can be held responsible, it is for that State to demonstrate that the conditions for obtaining the funding in question are met. The Commission is not required to demonstrate exhaustively that there are irregularities in the data submitted by the Member States, but must adduce evidence of serious and reasonable doubt on its part regarding the figures submitted by the national authorities. The evidentiary burden on the Commission is mitigated in this way because of the fact that the State is the body best placed to collect and verify the data required for the clearance of EAGGF accounts; consequently, it is for the State to adduce the most detailed and comprehensive evidence that its figures are accurate and, if appropriate, that the Commission's calculations are incorrect. In the event of a dispute, it is for the Commission to prove that the rules on the common organisation of the agricultural markets have been infringed. If the Commission establishes that this is so, it falls to the Member State to show, as the case may be, that the Commission committed an error as to the financial consequences to be drawn from the infringement.

3 Article 8(1) of Regulation No 729/70, which constitutes a specific expression in the agricultural area of the obligations imposed on Member States by Article 5 of the Treaty (now Article 10 EC), defines the principles according to which the Community and the Member States must ensure the implementation of Community decisions on agricultural intervention financed by the EAGGF and combat fraud and irregularities in relation to those operations. It places the Member States under a general obligation to take the measures necessary to satisfy themselves that the transactions financed by the EAGGF are actually carried out and correctly executed, even if the specific Community act does not expressly provide for the adoption of particular supervisory measures.