2001/137/EC: Commission Decision of 5 February 2001 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (notified under document number C(2001) 198)
Date: 2001-02-05
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU Member State, EU financing, agricultural expenditure, application of EU law, budgetary control, national expenditure

21.2.2001

EN

Official Journal of the European Communities

L 50/9

COMMISSION

COMMISSION DECISION

of 5 February 2001

excluding from Community financing certain expenditure incurred by the Member States under
the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF)

(notified under document number C(2001) 198)

(Only the Danish, German, Greek, Spanish, French, Italian, Dutch, Portuguese, Swedish and English texts are
authentic)

(2001/137/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EEC) No 729/70 of 21
April 1970 on the financing of
the common agricultural
policy (1), as last amended by Regulation (EC) No 1287/95 (2),
and in particular Article 5(2)(c) thereof,

Having regard to Council Regulation (EC) No 1258/1999 of 17
May 1999 on the financing of
the common agricultural
policy (3), and in particular Article 7(4) thereof,

conclusions to them, referring to Commission Decision
94/442/EC of 1 July 1994 setting up a conciliation
procedure in the context of the clearance of the accounts
of the European Agricultural Guidance and Guarantee
Fund (EAGGF) Guarantee Section (6), as amended by
Decision 2000/649/EC (7).

(3)

The Member States have had the opportunity to request
that a conciliation procedure be initiated. That proce-
dure has been applied in some cases and the reports
issued on the outcome have been considered by the
Commission.

After consulting the Committee of the European Agricultural
Guidance and Guarantee Fund,

(4)

Whereas:

(1)

(2)

Article 5(2)(c) of Regulation (EEC) No 729/70 and
Article 7(4) of Regulation (EC) No 1258/1999 stipulate
that the Commission is to exclude expenditure from
Community financing where it finds that it has not been
incurred in accordance with the Community rules.

Those Articles of Regulations (EEC) No 729/70 and (EC)
No 1258/1999 and Article 8(1) and (2) of Commission
Regulation (EC) No 1663/95 of 7 July 1995 laying
down detailed rules for the application of Council Regu-
lation (EEC) No 729/70 regarding the procedure for the
clearance of
the EAGGF Guarantee
Section (4), as last amended by Regulation (EC) No 2245/
1999 (5), provide that the Commission is to carry out
the necessary checks, forward its findings to the Member
States, consider any comments from the latter, enter into
bilateral discussions to reach an agreement with the
Member States concerned and formally communicate its

the accounts of

(5)

(6)

Articles 2 and 3 of Regulation (EEC) No 729/70 and
Article 2 of Regulation (EC) No 1258/1999 provide that
refunds on exports to non-member countries and inter-
vention intended to stabilise the agricultural markets
may be financed only where they are, respectively,
granted and undertaken in accordance with the
Community rules governing the common organisation
of the agricultural markets.

The findings of checks performed, the results of bilateral
discussions and the outcome of the conciliation proced-
ures have shown that some expenditure declared by the
Member States does not meet
those conditions and
cannot therefore be financed under the EAGGF Guar-
antee Section.

The Annex to this Decision sets out the amounts that
are not recognised as being chargeable to the EAGGF
Guarantee Section. Those amounts do not relate to
expenditure incurred more than 24 months before the
Commission's written notification of the results of the
checks to the Member States.

(1) OJ L 94, 28.4.1970, p. 13.
(2) OJ L 125, 8.6.1995, p. 1.
(3) OJ L 160, 26.6.1999, p. 103.
(4) OJ L 158, 8.7.1995, p. 6.
(5) OJ L 273, 23.10.1999, p. 5.

(6) OJ L 182, 16.7.1994, p. 45.
(7) OJ L 272, 25.10.2000, p. 41.

L 50/10

EN

Official Journal of the European Communities

21.2.2001

(7)

(8)

As regards the cases covered by this Decision, the assessment of the amounts to be excluded on
grounds of non-compliance with the Community rules was notified by the Commission to the
Member States in a summary report on the subject.

This Decision is without prejudice to any financial conclusions that the Commission may draw from
the judgments of the Court of Justice in cases pending at the date of this Decision and relating to the
subject thereof,

HAS ADOPTED THIS DECISION:

Article 1

The expenditure itemised in the Annex that has been incurred by the Member States' accredited paying
agencies and declared under the EAGGF Guarantee Section is hereby excluded from Community financing
because it does not comply with the Community rules.

Article 2

This Decision is addressed to the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic
Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Kingdom of the
Netherlands, the Portuguese Republic, the Kingdom of Sweden and the United Kingdom of Great Britain
and Northern Ireland.

Done at Brussels, 5 February 2001.

For the Commission

Franz FISCHLER

Member of the Commission

Member State

Sector

Arable crops

D

D

D

D

ANNEX

TOTAL CORRECTIONS IN NATIONAL CURRENCY

Budget
heading

1040-60

Grounds

Expenditure to be excluded
from financing

Deductions already made

Financial consequences
of this Decision

Financial
year

Shortcomings in onsite checks required under Regula-
tion (EEC) No 388/92 — Hessen

– 1 005 106,00

0,00

– 1 005 106,00

1998

Arable crops

1040-60

Shortcomings in onsite checks required under Regula-
tion (EEC) No 388/92 — Hessen

– 1 015 929,00

0,00

– 1 015 929,00

1999

Remainder to be exported

2100

Shortcomings in system of checks — proof of arrival
Monitoring firm

– 40 779 479,31

0,00

– 40 779 479,31

1996

Financial audit

Miscellaneous Reimbursement correction certification of accounts —

0,00

– 175 918,00

175 918,00

1999

Bremen Senator

Total

– 42 800 514,31

– 175 918,00

– 42 624 596,31

DK

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 227 619,31

– 227 619,31

Total

– 227 619,31

– 227 619,31

1999

0,00

0,00

E

E

E

E

E

E

E

E

Arable crops

1040

Shortcomings concerning areas taken into account

– 201 858 648,00

0,00

– 201 858 648,00

1997

Arable crops

1052

Unsatisfactory monitoring arrangements for rape —
Seville

– 820 827 563,00

0,00

– 820 827 563,00

1997

Arable crops

105X

Exceptional set-aside arrangements not imposed

– 18 856 213 434,00

0,00

– 18 856 213 434,00

1996

Arable crops

1060

Exceptional set-aside arrangements not imposed

– 8 967 561 775,00

0,00

– 8 967 561 775,00

1996

Oilseeds

Oilseeds

Oilseeds

Oilseeds

1210

Shortcomings in system of olive oil production aid

– 3 758 518 330,00

0,00

– 3 758 518 330,00

1997

1210

Shortcomings in system of olive oil production aid

– 8 067 597 841,00

0,00

– 8 067 597 841,00

1998

1220

Shortcomings in system of olive oil production aid

– 832 182 856,00

0,00

– 832 182 856,00

1996

1220

Reimbursement of olive oil consumption aid to two
cooperatives

0,00

– 493 101 188,00

493 101 188,00

1992

.

.

2
1
2
2
0
0
1

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
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i
t
i
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s

L

5
0
/
1
1

Member State

Sector

Budget
heading

Grounds

Expenditure to be excluded
from financing

Deductions already made

Financial consequences
of this Decision

Financial
year

E

E

E

E

E

E

F

F

F

Oilseeds

1300

Deduction of baling wire

– 26 520 008,00

0,00

– 26 520 008,00

1998-2000

Milk and milk products

2071

Additional
payment

levy (deliveries) and interest

for

late

– 10 144 618 332,00

– 6 891 231 284,00

–3 253 387 048,00

1996

Livestock premiums

2220

Advances not followed by balances or recoveries

– 42 620 000,00

0,00

– 42 620 000,00

1996

Arable crops

Miscellaneous Unsatisfactory monitoring arrangements — Andalusia

– 585 106 511,00

0,00

– 585 106 511,00

1997

Arable crops

Miscellaneous Unsatisfactory monitoring arrangements — Andalusia

– 2 083 760 193,00

0,00

– 2 083 760 193,00

1998

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 698 354 800,00

– 718 317 392,00

– 19 962 592,00

1999

Total

– 55 085 740 291,00

– 8 102 649 864,00

– 46 983 090 427,00

Arable crops

1040-60

Shortcomings in onsite checks required under Regula-
tion (EEC) No 388/92

– 66 823 936,00

0,00

– 66 823 936,00

1998

Arable crops

1040-60

Shortcomings in onsite checks required under Regula-
tion (EEC) No 388/92

– 92 251 241,00

0,00

– 92 251 241,00

1999

Milk and milk products

2071

Additional
payment

levy (deliveries) and interest

for

late

– 1 080 722,94

0,00

– 1 080 722,94

1996

Total

– 160 155 899,94

0,00

– 160 155 899,94

UK

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 292 150,86

– 387 915,82

95 764,96

1999

EL

Milk and milk products

2071

Additional
payment

levy (deliveries) and interest

for

late

– 103 197 096,00

– 10 604 124,00

– 92 592 972,00

1996

EL

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 47 100 862,00

– 47 100 862,00

0,00

1999

Total

– 292 150,86

– 387 915,82

95 764,96

Total

– 150 297 958,00

– 57 704 986,00

– 92 592 972,00

L

5
0
/
1
2

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
n
i
t
i
e
s

.

.

2
1
2
2
0
0
1

Member State

Sector

Budget
heading

Grounds

Expenditure to be excluded
from financing

Deductions already made

Financial consequences
of this Decision

Financial
year

IRL

IRL

I

I

I

I

I

I

I

I

I

I

Livestock premiums

2220

Advances not followed by balances or recoveries

– 20 286,59

0,00

– 20 286,59

1996-1997

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 1 137 038,69

– 1 137 038,69

0,00

1999

Total

– 1 157 325,58

– 1 137 038,69

– 20 286,59

Oilseeds

1300

Deduction of baling wire

– 322 766 528,00

0,00

– 322 766 528,00

1998-2000

Public storage

162X

Erroneous use of exchange rate

– 1 228 000 000,00

0,00

– 1 228 000 000,00

Public storage

162X

Correction of alcohol stocks declared

– 2 872 056 805,00

0,00

– 2 872 056 805,00

Public storage

162X

Failure to comply with Regulation (EC) No 2148/1996

– 4 495 914 433,00

0,00

– 4 495 914 433,00

Public storage

162X

Failure to comply with Regulation (EC) No 2148/1996

– 6 404 598 146,00

0,00

– 6 404 598 146,00

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Suckler
cow

– 10 638 562 000,00

0,00

– 10 638 562 000,00

1997

1997

1998

1999

1997

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Suckler
cow

– 1 886 222 000,00

0,00

– 1 886 222 000,00

1998

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Special
premium for bovine animals

– 2 328 467 000,00

0,00

– 2 328 467 000,00

1996

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Special
premium for bovine animals

– 2 848 655 000,00

0,00

– 2 848 655 000,00

1997

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Special
premium for bovine animals

– 1 854 304 000,00

0,00

– 1 854 304 000,00

1998

Total

– 34 879 545 912,00

0,00

– 34 879 545 912,00

NL

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 61 005,05

– 61 005,05

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 345 897 788,00

– 345 897 788,00

Total

– 61 005,05

– 61 005,05

Total

– 345 897 788,00

– 345 897 788,00

1999

1999

0,00

0,00

0,00

0,00

Arable crops

1040-60

Unsatisfactory monitoring arrangements

– 2 811 038,00

0,00

– 2 811 038,00

1998

Total

– 2 811 038,00

– 0,00

– 2 811 038,00

P

S

.

.

2
1
2
2
0
0
1

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
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o
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a
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C
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m
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L

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1
3

Member State

Sector

Arable crops

TOTAL CORRECTIONS IN EURO

Budget
heading

1040-60

Grounds

Expenditure to be excluded
from financing

Deductions already made

Financial consequences of
this decision

Financial
year

Shortcomings in onsite checks required under Regula-
tion (EEC) No 3887/92 — Hessen

– 513 902,54

0,00

– 513 902,54

1998

Arable crops

1040-60

Shortcomings in onsite checks required under Regula-
tion (EEC) No 3887/92 — Hessen

– 519 436,25

0,00

– 519 436,25

1999

Remaining to be exported

2100

Shortcomings in system of checks — proof of arrival
Monitoring firm

– 20 850 216,69

0,00

– 20 850 216,69

1996

Financial audit

Miscellaneous Reimbursement correction certification of accounts —

0,00

– 89 945,45

89 945,45

1999

Bremen Senator

DK

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 30 549,65

– 30 549,65

Total

– 30 549,65

– 30 549,65

0,00

0,00

Total

– 21 883 555,48

– 89 945,45

– 21 793 610,03

Arable crops

Arable crops

Arable crops

Arable crops

1040

Shortcomings in relation to areas taken into account

– 1 213 194,91

1052

Unsatisfactory monitoring arrangements for rape —
Seville

– 4 933 273,01

0,00

0,00

– 1 213 194,91

– 4 933 273,01

105X

Exceptional set-aside arrangements not imposed

– 113 328 125,17

0,00

– 113 328 125,17

1060

Exceptional set-aside arrangements not imposed

– 53 896 131,74

Oilseed crops

1210

Shortcomings in system of olive oil production aid

– 22 589 150,11

Oilseed crops

1210

Shortcomings in system of olive oil production aid

– 48 487 239,56

Oilseed crops

Oilseed crops

1220

1220

Shortcomings
consumption aid

in system of checks on olive oil

– 5 001 519,70

0,00

0,00

0,00

0,00

– 53 896 131,74

– 22 589 150,11

– 48 487 239,56

– 5 001 519,70

Reimbursement of olive oil consumption aid to two
cooperatives

0,00

– 2 963 597,83

2 963 597,83

1992

Oilseed crops

1300

Deduction for baling wire

– 159 388,46

0,00

– 159 388,46

1998-2000

Milk and milk products

2071

Additional
payment

levy (deliveries) and interest

for

late

– 60 970 384,12

– 41 417 134,16

– 19 553 249,96

1996

Livestock premiums

2220

Advances not followed by balances or recoveries

– 256 151,36

0,00

– 256 151,36

1996

1999

1997

1997

1996

1996

1997

1998

1996

D

D

D

D

E

E

E

E

E

E

E

E

E

E

E

L

5
0
/
1
4

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
C
o
m
m
u
n
i
t
i
e
s

.

.

2
1
2
2
0
0
1

Member State

Sector

Budget
heading

Grounds

Expenditure to be excluded
from financing

Deductions already made

Financial consequences of
this decision

Financial
year

E

E

E

F

F

F

Arable crops

Miscellaneous Unsatisfactory monitoring arrangements — Andalusia

– 3 516 560,95

Arable crops

Miscellaneous Unsatisfactory monitoring arrangements — Andalusia

– 12 523 650,99

0,00

0,00

– 3 516 560,95

– 12 523 650,99

1997

1998

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 4 197 196,88

– 4 317 174,47

119 977,59

1999

Total

– 331 071 966,94

– 48 697 906,46

– 282 374 060,48

Arable crops

1040-60

Shortcomings in on-site checks required under Regula-
tion (EEC) No 3887/92

– 10 187 243,37

0,00

– 10 187 243,37

1998

Arable crops

1040-60

Shortcomings in on-site checks required under Regula-
tion (EEC) No 3887/92

– 14 063 611,03

0,00

– 14 063 611,03

1999

Milk and milk products

2071

Additional
payment

levy (deliveries) and interest

for

late

– 164 755,15

0,00

– 164 755,15

1996

Total

– 24 415 609,55

0,00

– 24 415 609,55

UK

Financial audit

Miscellaneous

Failure to observe payment deadline

– 485 865,39

– 645 128,59

159 263,20

1999

Milk and milk products

2071

Additional
payment

levy (deliveries) and interest

for

late

– 303 610,17

– 31 197,78

– 272 412,39

1996

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 138 572,70

– 138 572,70

0,00

1999

Total

– 485 865,39

– 645 128,59

159 263,20

Total

– 442 182,87

– 169 770,48

– 272 412,39

Livestock premiums

2220

Advances not followed by balances or recoveries

– 25 758,66

0,00

– 25 758,66

1996-1997

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 1 443 741,32

– 1 443 741,32

0,00

1999

Total

– 1 469 499,98

– 1 443 741,32

– 25 758,66

Oilseed crops

1300

Deduction of baling wire

Public storage

1622

Erroroneous use of exchange rate

– 166 695,00

– 634 209,07

Public storage

162X

Correction of alcohol stocks declared

– 1 483 293,55

0,00

0,00

0,00

– 166 695,00

1998-2000

– 634 209,07

1997

– 1 483 293,55

1997

EL

EL

IRL

IRL

I

I

I

.

.

2
1
2
2
0
0
1

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
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a
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1
5

Member State

Sector

Budget
heading

Grounds

Expenditure to be excluded
from financing

Deductions already made

Financial consequences of
this decision

Financial
year

I

I

I

I

I

I

I

Public storage

162X

Failure to comply with Regulation (EC) No 2148/1996

– 2 321 946,03

Public storage

162X

Failure to comply with Regulation (EC) No 2148/96

– 3 307 698,90

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Suckler
cows

– 5 494 358,74

0,00

0,00

0,00

– 2 321 946,03

– 3 307 698,90

– 5 494 358,74

1998

1999

1997

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Suckler
cows

– 974 152,37

0,00

– 974 152,37

1998

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Special
premium for bovine animals

– 1 202 552,85

0,00

– 1 202 552,85

1996

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Special
premium for bovine animals

– 1 471 207,53

0,00

– 1 471 207,53

1997

Livestock premiums

212X

Unsatisfactory monitoring arrangements — Special
premium for bovine animals

– 957 668,09

0,00

– 957 668,09

1998

Total

– 18 013 782,12

0,00

– 18 013 782,12

NL

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 27 682,88

– 27 682,88

Financial audit

Miscellaneous

Failure to observe payment deadlines

– 1 725 330,89

– 1 725 330,89

Total

– 1 725 330,89

– 1 725 330,89

Total

– 27 682,88

– 27 682,88

1999

1999

0,00

0,00

0,00

0,00

Arable crops

1040-60

Unsatisfactory monitoring arrangements

– 329 130,53

Total

– 329 130,53

0,00

0,00

– 329 130,53

1998

– 329 130,53

Grand total

– 399 895 156,28

– 52 830 055,72

– 347 065 100,56

P

S

L

5
0
/
1
6

E
N

O

f
f
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t
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E
u
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a
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C
o
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u
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i
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i
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s

.

.

2
1
2
2
0
0
1