2002/523/EC: Commission Decision of 28 June 2002 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(2002) 2263)
Date: 2002-06-28
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU financing, common agricultural policy, expenditure, member country

29.6.2002

EN

Official Journal of the European Communities

L 170/73

II

(Acts whose publication is not obligatory)

COMMISSION

COMMISSION DECISION

of 28 June 2002

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(2002) 2263)

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

(2002/523/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Commu-
nity,

Having regard to Council Regulation (EEC) No 729/70 of 21
April 1970 on the financing of the common agricultural pol-
icy (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 pol-
icy (3), and in particular Article 7(4) 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 and Arti-
cle 7(4) of Regulation (EC) No 1258/1999 stipulate that
the Commission is to exclude expenditure from Commu-
nity financing where it finds that it has not been incurred
in accordance with Community rules.

The above Articles of Regulation (EEC) No 729/70 and
Regulation (EC) No 1258/1999 as well as Article 8(1)
and (2) of Commission Regulation (EC) No 1663/95 of 7
July 1995 laying down detailed rules for the application
of Regulation (EEC) No 729/70 regarding the procedure
for the clearance of the accounts of the EAGGF Guaran-
tee Section (4), as last amended by Regulation (EC) No
2025/2001 (5), provide that the Commission is to carry

(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 274, 17.10.2001, p. 3.

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 commu-
nicate its conclusions to them, referring to Commission
Decision 94/442/EC of 1 July 1994 setting up a concilia-
tion procedure in the context of the clearance of the ac-
counts of the European Agricultural Guidance and Guar-
antee Fund (EAGGF) Guarantee Section (6), as
last
amended by Decision 2001/535/EC (7).

(3)

(4)

(5)

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

Articles 2 and 3 of Regulation (EEC) No 729/70 and Ar-
ticle 2 of Regulation (EC) No 1258/1999 provide that re-
funds on exports to third countries and intervention in-
tended to stabilise agricultural markets may be financed
only where they are, respectively, granted and underta-
ken 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 proce-
dures have shown that some expenditure declared by the
Member States does not meet those conditions and can-
not therefore be financed under the EAGGF Guarantee
Section.

(6) OJ L 182, 16.7.1994, p. 45.
(7) OJ L 193, 17.7.2001, p. 25.

L 170/74

EN

Official Journal of the European Communities

29.6.2002

(6)

(7)

(8)

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 ex-
penditure incurred more than 24 months before the
Commissions 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 Community rules was notified by the
Commission to the Member States and is set out in a
summary report on the subject.

This Decision is without prejudice to any financial con-
clusions that the Commission may draw from the judg-
ments of the Court of Justice in cases pending on 31 Oc-
tober 2001 and relating to the subject thereof,

under the EAGGF Guarantee Section is hereby excluded from
Community financing because it does not comply with Com-
munity rules.

Article 2

This Decision is addressed to the Kingdom of Belgium, the Fed-
eral Republic of Germany, the Hellenic Republic, the Kingdom
of Spain, the French Republic, Ireland, the Italian Republic, the
Grand Duchy of Luxembourg, the Kingdom of the Netherlands,
the Portuguese Republic, the Republic of Finland and the Uni-
ted Kingdom of Great Britain and Northern Ireland.

HAS ADOPTED THIS DECISION:

Done at Brussels, 28 June 2002.

Article 1

The expenditure itemised in the Annex that has been incurred
by the Member States’ accredited paying agencies and declared

For the Commission

Franz FISCHLER

Member of the Commission

ANNEX

Total corrections

.

.

2
9
6
2
0
0
2

Sector

Member
State

Budget post

Reason

Currency

Expenditure to be
excluded from
financing

Already deducted

Financial conse-
quences of this deci-
sion

Financial year

E
N

Animal premiums

Rural development

Financial audit

BE

BE

BE

Various

Bovine animals - inadequate control systems

5011

Inadequate controls - Wallone

Various

Non respect of payment deadlines

EUR

EUR

EUR

– 2 102 656,97

– 115 003,00

0,00

0,00

– 2 102 656,97

2000

– 115 003,00

1997-1999

– 23 700,00

– 23 700,00

0,00

2000

BE Total

– 2 241 359,97

– 23 700,00

– 2 217 659,97

Financial audit

DE

3700

Correction made twice

DE Total

Rural development

Rural development

Rural development

Rural development

Rural development

Rural development

Rural development

Rural development

Rural development

Rural development

Financial audit

Animal premiums

Animal premiums

Financial audit

Animal premiums

Financial audit

ES

ES

ES

ES

ES

ES

ES

ES

ES

ES

ES

FR

FR

FR

GB

GB

5011/405

Inadequate control system-whole countries

5011

5011

Unreconciled data not explained - Catalonia and Canary Islands

Unreconciled data not explained - Basque Country

5012/4072 Inadequate control system - whole countries

5011/405 Weaknesses in administrative and on-the-spot controls - Galicia

5011/405 Weaknesses in on-the-spot control

5011/405

Inadequate controls - Castilla La Mancha

5012/4072 Correction forfaitaire - Castilla La Mancha

5011/405 Correction forfaitaire - Castilla Leon

5012/4072 Correction forfaitaire - Castilla Leon

Various

Non respect of payment deadlines

ES Total

Various

Bovine animals - inadequate control systems - Martinique

Various

Bovine animals - inadequate control systems - Guadeloupe

Various

Non respect of payment deadlines

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

EUR

0,00

0,00

– 111 504,13

111 504,13

1999

– 111 504,13

111 504,13

– 37 244,00

– 64 988,00

– 3 625,00

– 1 043 723,00

– 22 631,00

– 433 752,00

– 776 378,00

– 394 229,00

– 258 010,00

– 708 920,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

– 37 244,00

1999/2000

– 64 988,00

– 3 625,00

1998

1999

– 1 043 723,00

1999/2000

– 22 631,00

1998-2000

– 433 752,00

1998-2000

– 776 378,00

1998-2000

– 394 229,00

1998-2000

– 258 010,00

1998-2000

– 708 920,00

1998-2000

– 4 913 630,00

– 4 913 630,00

0,00

2000

– 8 657 130,00

– 4 913 630,00

– 3 743 500,00

– 134 588,00

– 2 593 230,00

0,00

0,00

– 134 588,00

1999/2000

– 2 593 230,00

1999/2000

– 842 942,00

– 842 942,00

0,00

2000

2125

Errors identified not properly treated

Various

Non respect of payment deadlines

EUR

EUR

– 14 917,66

0,00

– 14 917,66

– 483 379,59

– 483 379,59

0,00

1999

2000

GB Total

– 498 297,26

– 483 379,59

– 14 917,66

FR Total

– 3 570 760,00

– 842 942,00

– 2 727 818,00

O

f
f
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c
i
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l

J
o
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n
a
l

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f

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h
e

E
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p
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a
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C
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L

1
7
0
/
7
5

Sector

Member
State

Budget post

Reason

Rural development

Financial audit

Animal premiums

Forestry measures

Financial audit

Fruit and vegetables

Public storage

Oils and fats

Financial audit

GR

GR

IE

IE

IE

IT

IT

IT

IT

5010

Inadequate control system

Various

Non respect of payment deadlines

2125

5012

IACS - amounts not recovered following administrative errors

Non eligible financing (Coillte Teoranta) - Article 2(2)(b) of Regulation
(EEC) No 2080/92

GR Total

Currency

Expenditure to be
excluded from
financing

Already deducted

Financial conse-
quences of this deci-
sion

Financial year

EUR

EUR

EUR

EUR

– 1 703 199,00

0,00

– 1 703 199,00

1998/1999

– 306 956,00

– 306 956,00

0,00

2000

– 2 010 155,00

– 306 956,00

– 1 703 199,00

– 129 305,05

– 3 571 898,00

0,00

0,00

– 129 305,05

1998/1999

3 571 898,00

1999

Various

Non respect of payment deadlines

EUR

– 213 072,00

– 213 072,00

0,00

2000

IE Total

– 3 914 275,05

– 213 072,00

– 3 701 203,05

1515

1622

1210

Non respect of Article 18(3) or Regulation (EC) No 1169/1997

Missing stocks sold without credit to EAGGF

Inadequate compatibility checks and inspections of mills

Various

Non respect of payment deadlines

EUR

EUR

EUR

EUR

– 4 709 428,28

– 4 085 724,85

– 22 678 386,33

0,00

0,00

– 4 709 428,28

1999/2000

– 4 085 724,85

1998

0,00 – 22 678 386,33

1997-1999

– 8 572 333,00

– 8 572 333,00

0,00

2000

IT Total

– 40 045 872,46

– 8 572 333,00 – 31 473 539,46

Animal premiums

LU

Various

Bovine animals - inadequate control systems

EUR

– 398 104,45

LU Total

– 398 104,45

0,00

0,00

– 398 104,45

1999/2000

– 398 104,45

Financial audit

NL

1050

Non respect of payment deadlines

NL Total

Fruit and vegetables

Animal premiums

Financial audit

PT

PT

PT

1515

Non respect of Article 18(3) or Regulation (EC) No 1169/1997

Various

Various

Sucler cow and special beef premiums - inadequate control systems

Non respect of payment deadlines

EUR

EUR

EUR

EUR

– 25 371,00

– 25 371,00

– 25 371,00

– 25 371,00

2000

0,00

0,00

– 75 894,66

– 4 373 390,14

0,00

0,00

– 75 894,66

1998-2000

– 4 373 390,14

1999/2000

– 847 099,00

– 859 409,00

12 310,00

2000

Arable crops

FIN

Various

Inadequate on-the-spot controls

PT Total

– 5 296 383,80

– 859 409,00

– 4 436 974,80

EUR

– 234 169,81

FIN Total

– 234 169,81

0,00

0,00

– 234 169,81

1999/2000

– 234 169,81

Grand Total

– 66 891 878,80 – 16 352 296,72 – 50 539 582,07

L

1
7
0
/
7
6

E
N

O

f
f
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J
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C
o
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m
u
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s

.

.

2
9
6
2
0
0
2