2002/881/EC: Commission Decision of 5 November 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) 4127)
Date: 2002-11-05
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU financing, agricultural expenditure, application of EU law, budgetary control, national expenditure

L 306/26

EN

Official Journal of the European Communities

8.11.2002

COMMISSION

COMMISSION DECISION

of 5 November 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)

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

(notified under document number C(2002) 4127)

(2002/881/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
the common agricultural
May 1999 on the financing of
policy (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
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 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 applica-
tion of Council Regulation (EEC) No 729/70 regarding
the procedure for the clearance of the accounts of the
EAGGF Guarantee Section (4), as last amended by Regu-
lation (EC) No 2025/2001 (5), provide that the Commis-
sion 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 conclusions to them, referring
to Commission Decision 94/442/EC of 1 July 1994
setting up a conciliation procedure in the context of the

(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.

clearance of the accounts of the European Agricultural
Guidance and Guarantee Fund (EAGGF) Guarantee
Section (6), as last amended by Decision 2001/535/EC (7).

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 Commis-
sion.

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 third countries and intervention
intended to stabilise
agricultural markets may be
financed only where they are either granted or under-
taken in accordance with the Community
rules
governing the common organisations of 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
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 Community rules was notified by the
Commission to the Member States and is set out in a
summary report on the subject.

(3)

(4)

(5)

(6)

(7)

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

8.11.2002

EN

Official Journal of the European Communities

L 306/27

(8)

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 May 2002 and relating to its content,

HAS ADOPTED THIS DECISION:

Article 1

The expenditure itemised in the Annex hereto 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 Community rules.

Article 2

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

Done at Brussels, 5 November 2002.

For the Commission

Franz FISCHLER

Member of the Commission

Budget
item

1013

1232

1210

Sector

Public storage

Public storage

Olive oil

Olive oil

Arable crops

Livestock premiums

Livestock premiums

Livestock premiums

Member
State

Austria

Total Austria

Spain

Spain

Spain

Spain

Spain

Spain

Spain

ANNEX

CORRECTION TOTALS

L

3
0
6
/
2
8

Reason

Currency

Expenditure excluded
from financing

Deductions already
made

Financial impact
of decision

Financial
year

Non-compliance with Commission Regulation
(EEC) No 689/92, Article 4a (1)

EUR

– 71 861,57

– 71 861,57

1998-1999

E
N

Non-compliance with Commission Regulation (EC)
No 561/1999 (2)

Annulation of Commission Decision 1999/
186/EC (3)

– 71 861,57

EUR

– 37 621,55

0,00

0,00

0,00

– 71 861,57

– 37 621,55

EUR

29 795 787,00

0,00

29 795 787,00

1999

1996

1999

1210

Flat-rate correction of 5 % for 1999

1041-1858

Flat-rate corrections of 2 % and 5 % — inadequate
checks

2220-2512

Incorrect livestock balance 1996-98

2120-2122

Flat-rate correction of 2 % — penalties not applied

2120-2128

Flat-rate corrections of 2 % and 5 % — major
shortcomings

EUR

EUR

EUR

EUR

EUR

– 45 524 432,65

– 9 535 463,00

– 4 154 200,63

– 2 671 717,14

– 1 928 233,71

0,00

0,00

0,00

0,00

0,00

– 45 524 432,65

– 9 535 463,00

1999-2000

– 4 154 200,63

– 2 671 717,14

– 1 928 233,71

1997-2000

1999-2000

1998-2000

Livestock premiums

Spain

2120-2125

Milk and milk products

Spain

2071

Flat-rate corrections of 2 %, 5 % and 10 % —
major shortcomings

Annulation of Commission Decision 1999/187/EC
(4) by Court of Justice

EUR

– 1 463 027,00

0,00

– 1 463 027,00

EUR

8 146 987,47

0,00

8 146 987,47

1999

1995

Total Spain

– 27 371 921,21

0,00

– 27 371 921,21

Public storage

Denmark

1011-1014

Correction to annual declaration + non-compli-
ance Regulation (EC) No 689/92 — takeover date

DKK

– 642 063,05

Total
Denmark

Public storage

France

3190

Public storage

France

2111-2113

Financial audit

Financial audit

Financial audit

Financial audit

Public storage

France

France

France

France

France

Total France

320

B1-4

Various

Various

Non-compliance with Commission Regulation (EC)
No 1799/1999 (5)

Non-compliance with Commission Regulation (EC)
No 1799/1999

Flat-rate correction of 10 % for inadequate checks

Financial errors detected

Flat-rate correction

Incomplete administrative checks

1011-1014

Storage conditions not acceptable

– 642 063,05

– 13 547,69

– 106 833,39

– 251 329,28

– 7 641 715,23

– 35 612,70

– 2 988 000,00

– 3 070 983,88

– 14 108 022,17

EUR

EUR

EUR

EUR

EUR

EUR

EUR

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

– 642 063,05

1997-1998

– 642 063,05

– 13 547,69

– 106 833,39

– 251 329,28

– 7 641 715,23

– 35 612,70

– 2 988 000,00

2000

2000

2000

2000

2000

2000

– 3 070 983,88

1998-1999

– 14 108 022,17

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
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i
e
s

.

.

8
1
1
2
0
0
2

Sector

Fruits an vegetables

Member
State

Greece

Budget
item

1515

Livestock premiums

Greece

2120-2125

Reason

Currency

Expenditure excluded
from financing

Deductions already
made

Financial impact
of decision

Financial
year

Corrections of 3 % (insurance premiums) and 2 %
(inadequate checks)

Flat-rate correction of 10 % — major shortcom-
ings

EUR

– 2 438 896,91

0,00

– 2 438 896,91

1997-2001

EUR

– 11 352 868,00

– 11 352 868,00

0,00

1999-2001

Livestock premiums

Greece

2220-2221

Flat-rate correction of 5 % — major shortcomings

EUR

– 22 969 271,00

– 22 969 271,00

0,00

1998-1999

Total Greece

– 36 761 035,91

– 34 322 139,00

– 2 438 896,91

Wine and tobacco

Fruit and vegetables

Italy

Italy

1710

1501

Public storage

Italy

1011-1014

Guarantee threshold exceeded

Non-compliance with Commission Regulation (EC)
No 659/97 (6) and Regulation (EC) No 2200/96 (7)
— ICR too high

Non-compliance with Regulation (EEC) No 689/92
Article 4(1)

EUR

EUR

– 10 325,00

– 75 903,00

0,00

0,00

– 10 325,00

2000

– 75 903,00

2000-2001

EUR

– 1 272 615,34

0,00

– 1 272 615,34

1998-1999

Total Italy

– 1 358 843,34

0,00

– 1 358 843,34

Livestock premiums

Netherlands

2120-2128

Flat-rate corrections of 5 % and 25 % — major
shortcomings

EUR

– 3 841 421,24

0,00

– 3 841 421,24

1998-2000

Total Nether-
lands

– 3 841 421,24

0,00

– 3 841 421,24

Rural development

Portugal

5012-405

Flat-rate correction of 2 % — non-compliance with
Commission Regulation (EC) No 749/96 (8) —
cross-checks

EUR

– 859 727,00

0,00

– 859 727,00

1999-2000

– 859 727,00

0,00

– 859 727,00

5011

5011

Flat-rate correction of 2 % — supplementary
checks not done — CCW

Flat-rate correction of 2 % — supplementary
checks not done — SERAD

GBP

GBP

– 31 244,89

– 86 158,44

0,00

0,00

– 31 244,89

– 86 158,44

1999

1999

5011-405

Flat-rate correction of 2 % — supplementary
checks not done — MAFF

GBP

– 1 054 141,52

0,00

– 1 054 141,52

1999-2000

GBP

– 1 171 544,85

0,00

– 1 171 544,85

Rural development

Rural development

Rural development

Total Portugal

United
Kingdom

United
Kingdom

United
Kingdom

Total United
Kingdom

(1) OJ L 74, 20.3.1992, p. 18
(2) OJ L 69, 16.3.1999, p. 13.
(3) OJ L 61, 10.3.1999, p. 34.
(4) OJ L 61, 10.3.1999, p. 37.
(5) OJ L 217, 17.8.1999, p. 20.
(6) OJ L 100, 17.4.1997, p. 22.
(7) OJ L 297, 21.11.1996, p. 1.
(8) OJ L 102, 25.4.1996, p. 33.

.

.

8
1
1
2
0
0
2

E
N

O

f
f
i
c
i
a
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J
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n
a
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h
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E
u
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L

3
0
6
/
2
9