Judgment of the Court (Sixth Chamber) of 25 January 2001 in Case C-413/98 (reference for a preliminary ruling from the Supremo Tribunal Administrativo): Directora-Geral do Departamento para os Assuntos do Fundo Social Europeu (DAFSE) v Frota Azul-Transportes e Turismo L.da (European Social Fund — Certification of facts and accounts — Powers of certification Limits)
Date: 2001-06-16
Institutions: Court of Justice
Subjects: European Social Fund, application of EU law, co-financing, interpretation of the law, vocational training

16.6.2001

EN

Official Journal of the European Communities

C 173/1

I

(Information)

COURT OF JUSTICE

COURT OF JUSTICE

JUDGMENT OF THE COURT

1.

(Sixth Chamber)

of 25 January 2001

The relevant Member State’s certification of the accuracy of the
facts and accounts in final payment claims must,
for the
purposes of Article 5(4) of Council Regulation (EEC)
No 2950/83 of 17 October 1983 on the implementation of
Decision 83/516/EEC on the tasks of the European Social
Fund, be understood as including an assessment as to whether
the expenditure incurred is appropriate and justified.

in Case C-413/98 (reference for a preliminary ruling from
the Supremo Tribunal Administrativo): Directora-Geral
do Departamento para os Assuntos do Fundo Social
Europeu (DAFSE) v Frota Azul-Transportes e Turismo
L.da (1)

(European Social Fund — Certification of facts and accounts
— Powers of certification Limits)

2. A decision by the competent authorities of a Member State not
to certify the accuracy of the facts and accounts concerning a
portion of the expenditure in respect of a training operation to
which the European Social Fund has contributed, on the ground
that the expenditure cannot be justified or is disproportionate,
must be regarded as a proposal addressed to the Commission of
the European Communities for that portion of the expenditure
to be held to be ineligible.

(2001/C 173/01)

(Language of the case: Portuguese)

(Provisional translation; the definitive translation will be published
in the European Court Reports)

In Case C-413/98: reference to the Court under Article 177 of
the EC Treaty (now Article 234 EC) from the Supremo Tribunal
Administrativo (Supreme Administrative Court) (Portugal) for
a preliminary ruling in the proceedings pending before that
court between Directora-Geral do Departamento para os
Assuntos do Fundo Social Europeu (DAFSE) and Frota Azul-
Transportes e Turismo Ld.a — on the interpretation of Council
Decision 83/516/EEC of 17 October 1983 on the tasks of the
European Social Fund (OJ 1983
289, p. 38), Council
Regulation (EEC) No 2950/83 of 17 October 1983 on the
implementation of Decision 83/516/EEC (OJ 1983 L 289,
p. 1) and Commission Decision 83/673/EEC of 22 December
1983 on the management of the European Social Fund (OJ
1983 L 377, p. 1) — the Court, composed of: C. Gulmann,
President of
J.-P. Puissochet,
R. Schintgen and F. Macken (Rapporteur), Judges; J. Mischo,
Advocate General; R. Grass, for the Registrar, has given a
judgment on 25 January 2001, in which it has ruled:

the Chamber, V. Skouris,

3.

4.

5.

The reduction or withdrawal of
the national contribution
proposed by the competent authorities of a Member State
pursuant to a decision not to certify the accuracy of the facts or
accounts as regards certain expenditure must be made the
subject of a final decision by the Commission concerning the
portion of the aid corresponding to the assistance from the
European Social Fund. That final decision of the Commission
approving the balance to be paid determines the amount of the
balance to be paid from the national contribution.

Community law does not preclude the competent authorities of
a Member State from requiring, as a purely protective measure,
repayment of the national contribution and of the assistance
from the European Social Fund before the adoption by the
Commission of its final decision.

for

the purposes of

Certification,
the second sentence of
Article 5(4) of Regulation No 2950/83, of the accuracy of the
facts and accounts in the final payment claim in respect of a
training operation does not preclude a Member State from
undertaking a subsequent reassessment of the final payment
claim and from submitting to the Commission, if necessary, a
revised application proposing that the assistance be reduced.

(1) OJ C 33 of 6.2.1999.