Keywords

Summary



Keywords

1 Social policy - European Social Fund - Financial assistance for vocational training - Decision reducing assistance initially granted - Rights of defence of the undertakings concerned 2 Social policy - European Social Fund - Financial assistance for vocational training - Decision reducing assistance initially granted - Commission's obligation - Action within a reasonable length of time 3 Social policy - European Social Fund - Financial assistance for vocational training - Decision reducing assistance initially granted - Commission's obligation to give the national authorities an opportunity to submit comments - Scope (Council Regulation No 2950/83, Art. 6(1)) 4 Social policy - European Social Fund - Financial assistance for vocational training - Accuracy of facts and accounts in final payment claims to be certified by the Member States - Scope (Council Regulation No 2950/83, Arts 5(4), 6 and 7; Council Decision 83/516, Art. 2(2); Commission Decision 83/673, Art. 7) 5 Acts of the institutions - Statement of reasons - Obligation - Scope - Commission decision reducing, on a proposal from a Member State, assistance from the European Social Fund for vocational training (EC Treaty, Art. 190) 6 Social policy - European Social Fund - Financial assistance for vocational training - Commission decision based on Article 6(1) of Regulation No 2950/83 - Evaluation of complex facts and accounts - Judicial review - Limits (Council Regulation No 2950/83, Art. 6(1))

Summary

1 Since the rights of defence of beneficiaries of European Social Fund aid must be respected when the Commission reduces such aid, the Commission, which alone assumes legal liability to the beneficiary for such a decision, is not entitled to adopt it without first giving the beneficiary the possibility, or ensuring that it has the possibility, of effectively setting forth its views on the proposed reduction. 2 The reasonableness of the time which elapsed between the lodging of a final payment claim by the beneficiary of financial assistance from the European Social Fund and the Commission's adoption of a decision on that claim must be determined in relation to the particular circumstances of each case and, in particular, its context, the various procedural stages followed, the complexity of the case and its importance for the various parties involved. 3 The Commission fulfils its obligation to consult the Member State before adopting a decision reducing financial aid initially granted by the European Social Fund where the decision concerned has been taken following an exchange of letters between the Commission and the national authorities, which have submitted their comments before the final decision was adopted. 4 Certification by a Member State of certain expenses in final payment claims does not release it from its other obligations under the applicable Community legislation. Thus, that Member State is still required, under Article 2(2) of Decision 83/516 on the tasks of the European Social Fund and Article 7 of Decision 83/673 on the management of the Fund, to guarantee the successful outcome of operations financed by the Fund and to notify to the Commission any suspected irregularities. Since compliance with those obligations is not subject to any time-limit, they are binding on the national authorities until such time as the Commission has adopted the definitive decision on final payment. It is also clear from Articles 6 and 7 of Regulation No 2950/83 implementing Decision 83/516 that the Member State must be regarded as having privileged access to the Commission for management of the European Social Fund. Moreover, exercise of the Commission's exclusive power to reduce Community aid from the European Social Fund cannot be made conditional upon the certification referred to in Article 5(4) of Regulation No 2950/83. Consequently, the certification referred to in Article 5(4) of Regulation No 2950/83 must be regarded as being, intrinsically, an operation undertaken by the national authorities on an entirely uncommitted basis. Any other interpretation would undermine the effectiveness of the national authorities' obligation to report irregularities ascertained in the management of the European Social Fund. 5 The statement of reasons required by Article 190 of the Treaty must show clearly and unequivocally the reasoning of the institution which enacted the measure so as to inform the persons concerned of the justification for the measure adopted and to enable the Community judicature to exercise its powers of review. The extent of that obligation depends on the nature of the measure in question and on the context in which it was adopted. Where the Commission purely and simply confirms the proposal of a Member State to reduce assistance initially granted from the European Social Fund, its decision may be regarded as adequately reasoned if it either clearly sets out itself the reasons justifying the reduction in assistance or, failing that, refers with sufficient clarity to a measure adopted by the competent national authorities of the Member State concerned, in which they set out clearly the reasons for such a reduction. 6 The application of Article 6(1) of Regulation No 2950/83 on the implementation of Decision 83/516 concerning the tasks of the European Social Fund - under which, where assistance from the European Social Fund has not been used in conformity with the conditions laid down by the approval decision, the Commission may suspend, withdraw or reduce the assistance - may render it necessary for the Commission to undertake an evaluation of complex facts and accounts. When undertaking such an evaluation, the Commission must therefore enjoy a considerable measure of latitude. Consequently, the Community judicature must, in examining whether that power was exercised lawfully, confine itself to examining whether the Commission committed a manifest error in assessing the information in question.