2001/557/EC: Commission Decision of 11 July 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) 1795)
Date: 2001-07-11
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU Member State, EU financing, application of EU law

L 200/28

EN

Official Journal of the European Communities

25.7.2001

COMMISSION DECISION

of 11 July 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)

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

(notified under document number C(2001) 1795)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(4)

(2001/557/EC)

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,

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

Whereas:

(1)

(2)

Article 5(2)(c) of Regulation (EEC) No 729/70 stipulates
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.

the clearance of

the Commission is to carry out

This Article of Regulation (EEC) No 729/70 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 Regulation (EEC) No 729/70
regarding the procedure for
the
accounts of the EAGGF Guarantee Section (3), as last
amended by Regulation (EC) No 2245/1999 (4), provide
that
the necessary
checks,
forward its findings to the Member States,
consider any comments from the latter, enter into bilat-
eral discussions to reach an agreement with the Member
States concerned and formally communicate its conclu-
sions to them, referring to Commission Decision 94/
442/EC of 1 July 1994 setting up a conciliation proce-
dure in the context of the clearance of the accounts of
the European Agricultural Guidance and Guarantee Fund
(EAGGF) Guarantee Section (5), as amended by Decision
2000/649/EC (6).

(5)

(6)

(7)

(8)

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.

As regards the cases covered by this Decision, the assess-
ment 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 on 31
March 2001 and relating to the subject thereof,

(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.

HAS ADOPTED THIS DECISION:

Article 1

(1) OJ L 94, 28.4.1970, p. 13.
(2) OJ L 125, 8.6.1995, p. 1.
(3) OJ L 158, 8.7.1995, p. 6.
(4) OJ L 273, 23.10.1999, p. 5.
(5) OJ L 182, 16.7.1994, p. 45.
(6) OJ L 272, 25.10.2000, p. 41.

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.

25.7.2001

EN

Official Journal of the European Communities

L 200/29

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

Article 2

Done at Brussels, 11 July 2001.

For the Commission

Franz FISCHLER

Member of the Commission

ANNEX

TOTAL CORRECTIONS

Sector

Member State

Budget post

Reason

Expenditure to be
excluded from financing
(national currency)

Already deducted
(national currency)

Financial consequences of
this Decision
(national currency)

Financial year

Livestock premiums

Livestock premiums

Livestock premiums

Milk and milk products

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

Public storage

BE

BE

BE

BE Total

DE

DE

DE

DE Total

ES

ES

ES

ES

ES

ES

Various

Bovine premiums — indadequate control

– 22 583 914,00

0,00

– 22 583 914,00

1998-1999

Various

Bovine premiums — indadequate control

– 66 649 000,00

0,00

– 66 649 000,00

1998-1999

2190

Ineligible late payments

– 1 132 500,00

– 1 132 500,00

0,00

1998-1999

– 90 365 414,00

– 1 132 500,00

– 89 232 914,00

2062

Judgment of the Court C-245/97

608 583,40

0,00

608 583,40

1993

2120

2125

Deficient control system and inadequate control
over eligibility

Deficient control system and inadequate control
over eligibility

– 5 337 992,00

0,00

– 5 337 992,00

1996-1997

– 1 028 704,00

0,00

– 1 028 704,00

1996-1997

– 5 758 112,60

0,00

– 5 758 112,60

Various

Unsatisfactory control system

– 874 279 258,00

0,00

– 874 279 258,00

1996-1997

Various

Unsatisfactory control system

– 1 842 669 000,00

0,00

– 1 842 669 000,00

1997-1999

Various

Unsatisfactory control system

– 846 866 000,00

0,00

– 846 866 000,00

1997-1999

2125

Extensification premium — lack of control
Catalonia

in

– 168 440 000,00

0,00

– 168 440 000,00

1997-1999

2133

System not in conformity with the rules

– 185 046 088,00

0,00

– 185 046 088,00

1997

3150

Expenditure relating to free supply of agricultural
produce to the Russian Federation

– 3 169 653,00

0,00

– 3 169 653,00

1999

ES Total

– 3 920 469 999,00

0,00

– 3 920 469 999,00

L

2
0
0
/
3
0

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
5
7
2
0
0
1

Sector

Member State

Budget post

Reason

Expenditure to be
excluded from financing
(national currency)

Already deducted
(national currency)

Financial consequences of
this Decision
(national currency)

Financial year

Agri-environment

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

Arable crops

Arable crops

Arable crops

Livestock premiums

Livestock premiums

Agri-environment

Agri-environment

Financial audit

Financial audit

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

5011

Unsatisfactory application of administration and
control system in Cantal

– 55 638,00

0,00

– 55 638,00

1997-1998

Various

Bovine premiums — indadequate control

– 4 907 000,00

0,00

– 4 907 000,00

1999

2124

Deficient control system

– 1 766 463,00

0,00

– 1 766 463,00

1998-1999

2128

Deficient control system

– 1 214 329,00

0,00

– 1 214 329,00

1998-1999

2190

Ineligible late payments

– 224 645,72

– 224 645,72

0,00

1998-1999

Various

Anomalies detected concerning ‘small producers’ of
arable crops

– 26 149 995,00

0,00

– 26 149 995,00

1998-1999

1040

Incorrect yield used to calculate aid

– 3 694 272,00

0,00

– 3 694 272,00

1998

1040

Incorrect yield used to calculate aid

– 4 301 361,00

0,00

– 4 301 361,00

1999

Various

Anomalies detected but not fully investigated

– 27 252 016,00

0,00

– 27 252 016,00

1998

Various

Anomalies detected but not fully investigated

– 10 504 446,00

0,00

– 10 504 446,00

1999

5011

Anomalies detected but not fully investigated

– 1 953 560,00

0,00

– 1 953 560,00

1998

5011

Anomalies detected but not fully investigated

– 637 293,00

0,00

– 637 293,00

1999

Various

Failure to meet payment deadlines

– 20 077 950,04

– 22 098 248,40

2 020 298,36

1999

3201-001

Replanting of sugar cane

– 1 182 200,00

0,00

– 1 182 200,00

1999

FR Total

– 103 921 168,76

– 22 322 894,12

– 81 598 274,64

.

.

2
5
7
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
n
i
t
i
e
s

L

2
0
0
/
3
1

Sector

Member State

Budget post

Reason

Expenditure to be
excluded from financing
(national currency)

Already deducted
(national currency)

Financial consequences of
this Decision
(national currency)

Financial year

Livestock premiums

Livestock premiums

Oils and fats

Livestock premiums

Livestock premiums

Oils and fats

Oils and fats

Fruits and vegetables

Financial audit

Livestock premiums

Livestock premiums

GB

GB

GB

GB Total

GR

GR

GR

GR

GR

GR

GR Total

IE

IE

IE Total

2190

Ineligible late payments

– 345 623,49

– 345 623,49

0,00

1998-1999

2190

Ineligible late payments

– 74 773,18

– 74 773,18

0,00

1998-1999

1400

ECJ Case 148/99 — United Kingdom flax and hemp

8 966 470,00

0,00

8 966 470,00

1996-1997

8 546 073,33

– 420 396,67

8 966 470,00

2220

Unsatisfactory control system

– 9 421 033 000,00

– 4 702 269 261,00

– 4 718 763 739,00

1996-1999

2221

Unsatisfactory control system

– 2 442 900 000,00

– 1 587 554 332,00

– 855 345 668,00

1996-1999

1210

Weaknesses in the control system

– 17 308 535 972,00

– 8 535 172 442,00

– 8 773 363 530,00

1997-1998

1410

Inadequate on-the-spot controls — DAS 1996 and
1997

– 4 163 259 550,00

– 3 683 367 261,00

– 479 892 289,00

1996-1997

1513

Production aid for dried grapes

– 3 144 838 970,00

0,00

– 3 144 838 970,00

1997-1999

Various

Respect of the accreditation criteria

0,00

– 3 777 502 522,00

3 777 502 522,00

1999

2190

Ineligible late payments

– 45 871,14

– 45 871,14

0,00

1998-1999

2190

Ineligible late payments

– 10 831,71

– 10 831,71

0,00

1998-1999

– 36 480 567 492,00 – 22 285 865 818,00 – 14 194 701 674,00

– 56 702,85

– 56 702,85

0,00

Financial audit

IT

Various

Failure to meet payment deadlines

– 8 707 876 239,25

– 8 707 876 239,25

0,00

1999

Public storage

Public storage

Public storage

IT Total

PT

PT

PT

PT Total

– 8 707 876 239,25

– 8 707 876 239,25

0,00

2011

Technical costs — meat

2012

Financing costs — meat

– 4 839 243,00

– 2 238 402,00

0,00

0,00

– 4 839 243,00

1999

– 2 238 402,00

1999

2013

Other costs — meat

– 78 733 025,00

0,00

– 78 733 025,00

1999

– 85 810 670,00

0,00

– 85 810 670,00

L

2
0
0
/
3
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
5
7
2
0
0
1

TOTAL CORRECTIONS IN EURO

.

.

2
5
7
2
0
0
1

Sector

Member State

Budget Post

Reason

Expenditure to be
excluded from financing
(euro)

Already
deducted
(euro)

Financial consequences of
this Decision
(euro)

Financial
year

Livestock premiums

Livestock premiums

Livestock premiums

BE

BE

BE

Various

Bovine premiums — inadequate control

– 559 839,22

0,00

– 559 839,22

1998-1999

Various

Bovine premiums — inadequate control

– 1 652 181,46

0,00

– 1 652 181,46

1998-1999

2190

Ineligible late payments

– 28 073,87

– 28 073,87

0,00

1998-1999

BE Total

– 2 240 094,55

– 28 073,87

– 2 212 020,67

Milk and Milk products

Livestock premiums

Livestock premiums

DE

DE

DE

2062

Judgment of the Court C-245/97

310 501,73

0,00

310 501,73

1993

2120

Deficient control system and inadequate control
over eligibility

– 2 723 465,31

0,00

– 2 723 465,31

1996-1997

2125

Deficient control system and inadequate control
over eligibility

– 524 848,98

0,00

– 524 848,98

1996-1997

DE Total

– 2 937 812,55

0,00

– 2 937 812,55

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

ES

ES

ES

ES

Various

Unsatisfactory control system

– 5 254 524,17

0,00

– 5 254 524,17

1996-1997

Various

Unsatisfactory control system

– 11 074 663,73

0,00

– 11 074 663,73

1997-1999

Various

Unsatisfactory control system

– 5 089 767,17

0,00

– 5 089 767,17

1997-1999

2125

Extensification premium — lack of control in Cata-
lonia

– 1 012 344,79

0,00

– 1 012 344,79

1997-1999

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

L

2
0
0
/
3
3

Sector

Member State

Budget Post

Reason

Expenditure to be
excluded from financing
(euro)

Already
deducted
(euro)

Financial consequences of
this Decision
(euro)

Financial
year

Livestock premiums

Public Storage

Agri-environment

Livestock premiums

Livestock premiums

Livestock premiums

Livestock premiums

Arable crops

Arable crops

Arable crops

Livestock premiums

Livestock premiums

Agri-environment

ES

ES

ES Total

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

FR

2133

System not in conformity with the rules

– 1 112 149,39

3150

Expenditure relating to free supply of agricultural
produce to the Russian Federation

– 19 050,00

0,00

0,00

– 1 112 149,39

1997

– 19 050,00

1999

– 23 562 499,24

0,00

– 23 562 499,24

5011

Unsatisfactory application of administration and
control system in Cantal

– 8 481,40

0,00

– 8 481,40

1997-1998

Various

Bovine premiums — inadequate control

– 748 018,29

0,00

– 748 018,29

1999

2124

Deficient control system

– 269 277,90

0,00

– 269 277,90

1998-1999

2128

Deficient control system

– 185 111,13

0,00

– 185 111,13

1998-1999

2190

Ineligible late payments

– 34 244,77

– 34 244,77

0,00

1998-1999

Various

Anomalies detected concerning ‘small producers’ of
arable crops

– 3 986 279,73

0,00

– 3 986 279,73

1998-1999

1040

Incorrect yield used to calculate aid

– 563 151,22

0,00

– 563 151,22

1998

1040

Incorrect yield used to calculate aid

– 655 695,27

0,00

– 655 695,27

1999

Various

Anomalies detected but not fully investigated

– 4 154 270,73

0,00

– 4 154 270,73

1998

Various

Anomalies detected but not fully investigated

– 1 601 287,50

0,00

– 1 601 287,50

1999

5011

Anomalies detected but not fully investigated

– 297 798,78

0,00

– 297 798,78

1998

L

2
0
0
/
3
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
5
7
2
0
0
1

Sector

Member State

Budget Post

Reason

Expenditure to be
excluded from financing
(euro)

Already
deducted
(euro)

Financial consequences of
this Decision
(euro)

Financial
year

Agri-environment

Financial audit

Financial audit

Livestock premiums

Livestock premiums

Oils and Fats

Livestock premiums

Livestock premiums

Oils and fats

Oils and fats

Fruits and vegetables

Financial audit

FR

FR

FR

FR Total

GB

GB

GB

GB Total

GR

GR

GR

GR

GR

GR

5011

Anomalies detected but not fully investigated

– 97 148,32

0,00

– 97 148,32

1999

Various

Failure to meet payment deadlines

– 3 060 663,12

– 3 368 635,43

307 972,31

1999

3201-001

Replanting of sugar cane

– 180 213,41

0,00

– 180 213,41

1999

– 15 841 641,58

– 3 402 880,20

– 12 438 761,38

2190

Ineligible late payments

– 555 218,46

– 555 218,46

0,00

1998-1999

2190

Ineligible late payments

– 120 117,56

– 120 117,56

0,00

1998-1999

1400

ECJ Case 148/99 — United Kingdom flax and hemp

14 403 967,87

0,00

14 403 967,87

1996-1997

13 728 631,86

– 675 336,02

14 403 967,87

2220

Unsatisfactory control system

– 27 647 932,50

– 13 799 763,06

– 13 848 169,45

1996-1999

2221

Unsatisfactory control system

– 7 169 185,62

– 4 659 000,24

– 2 510 185,38

1996-1999

1210

Weaknesses in the control system

– 50 795 410,04

– 25 048 194,99

– 25 747 215,06

1997-1998

1410

Inadequate on-the-spot controls — DAS 1996 and
1997

– 12 217 929,71

– 10 809 588,44

– 1 408 341,27

1996-1997

1213

Production aid for dried grapes

– 9 229 167,92

0,00

– 9 229 167,92

1997-1999

Various

Respect of the accreditation criteria

0,00

– 11 085 847,46

11 085 847,46

1999

GR Total

– 107 059 625,80

– 65 402 394,18

– 41 657 231,62

.

.

2
5
7
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
n
i
t
i
e
s

L

2
0
0
/
3
5

Sector

Member State

Budget Post

Reason

Expenditure to be
excluded from financing
(euro)

Already
deducted
(euro)

Financial consequences of
this Decision
(euro)

Financial
year

2190

Ineligible late payments

– 58 064,73

– 58 064,73

0,00

1998-1999

2190

Ineligible late payments

– 13 711,03

– 13 711,03

0,00

1998-1999

Livestock premiums

Livestock premiums

IE

IE

IE Total

Financial audit

IT

Various

Failure to meet payment deadlines

– 4 497 242,76

– 4 497 242,76

Public storage

Public storage

Public storage

IT Total

PT

PT

PT

PT Total

Grand total

2011

Technical costs — meat

2012

Financing costs — meat

2013

Other costs — meat

– 71 775,76

– 71 775,76

0,00

0,00

0,00

1999

– 4 497 242,76

– 4 497 242,76

– 24 138,28

– 11 165,21

– 392 722,59

– 428 026,09

0,00

0,00

0,00

0,00

– 24 138,28

1999

– 11 165,21

1999

– 392 722,59

1999

– 428 026,09

– 142 910 086,47

– 74 077 702,79

– 68 832 383,68

L

2
0
0
/
3
6

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
5
7
2
0
0
1