2003/102/EC: Commission Decision of 14 February 2003 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(2003) 500)
Date: 2003-02-14
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU Member State, EU financing, application of EU law

15.2.2003

EN

Official Journal of the European Union

L 42/47

II

(Acts whose publication is not obligatory)

COMMISSION

COMMISSION DECISION

of 14 February 2003

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(2003) 500)

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(2)

(2003/102/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,

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,

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

Whereas:

(1)

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.

(3)

(4)

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
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.

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

L 42/48

EN

Official Journal of the European Union

15.2.2003

(5)

(6)

(7)

(8)

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.

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
14 October 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 Denmark, the
Federal Republic of Germany, the French Republic, the Hellenic
Republic, the Kingdom of Spain, Ireland, the Italian Republic,
the Grand Duchy of Luxembourg, the Kingdom of the Nether-
lands, the Portuguese Republic and the United Kingdom of
Great Britain and Northern Ireland.

Done at Brussels, 14 February 2003.

For the Commission

Franz FISCHLER

Member of the Commission

ANNEX

Total corrections

Sector

Member
State

Budget item

Reason

Olive oil

Livestock premiums

Livestock premiums

Financial audit

Financial audit

E

E

E

E

E

1220

flat-rate correction of 2,75 %

2120-2125 inadequate and insufficient number of checks

2120-2128 flat-rate corrections — major shortcomings

4051

cancellation of a previous correction (recovery under heading 3990-060)

various

non-compliance with payment deadlines

Currency

Expenditure
excluded from
financing

Deductions already
made

Financial impact
of decision

Financial year

EUR

EUR

EUR

EUR

EUR

– 3 372 844,42

– 5 593 699,06

– 964 109,17

1 267,78

0,00

0,00

0,00

0,00

– 1 916 896,26

– 1 916 896,26

– 3 372 844,42

1997-1999

– 5 593 699,06

1998-2000

– 964 109,17

1999-2000

1 267,78

0,00

1999

2001

Total E

– 11 846 281,13

– 1 916 896,26

– 9 929 384,87

Arable crops

D

1041-1310 major shortcomings in checks

EUR

– 26 446 505,00

0,00 – 26 446 505,00

1999-2000

Total D

– 26 446 505,00

0,00 – 26 446 505,00

Livestock premiums

DK

2122

major shortcomings in checks

Total DK

Fruit and vegetables

Livestock premiums

Livestock premiums

Financial audit

Financial audit

F

F

F

F

F

1512

flat-rate correction of 5 % — major shortcomings

2120-2125 shortcomings in the management of beef premiums

2120-2125 shortcomings in key checks

various

shortcomings in management of advance payments, guarantees and
debtors

DKK

– 377 788,09

– 377 788,09

EUR

EUR

EUR

EUR

– 3 510 799,21

– 360 148,00

– 827 926,05

– 6 989 874,95

0,00

0,00

0,00

0,00

0,00

0,00

– 377 788,09

1998

– 377 788,09

– 3 510 799,21

1998-2000

– 360 148,00

1998-2000

– 827 926,05

1998-2000

– 6 989 874,95

2000

1210-2125 non-compliance with payment deadlines

EUR

– 233 570,54

– 233 570,54

0,00

2001

Total F

– 11 922 318,75

– 233 570,54 – 11 688 748,21

.

.

1
5
2
2
0
0
3

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
U
n
o
n

i

Public storage

EL

3231

flat-rate correction of 25 % — major shortcomings

EUR

– 9 926 005,21

0,00

– 9 926 005,21

1999-2001

Total EL

– 9 926 005,21

0,00

– 9 926 005,21

Rural development

Financial audit

Rural development

Rural development

Rural development

IRL

IRL

I

I

I

4072

correction overestimated in Decision No 9

1041-2125 non-compliance with payment deadlines

Total IRL

4051-5012 flat-rate correction of 2 % — major shortcomings

4051-5012 flat-rate correction of 5 % — major shortcomings (Region of Lazio)

4051-5012 flat-rate correction of 5 % — major shortcomings (Region of Piedmont)

EUR

EUR

EUR

EUR

EUR

892 975,00

0,00

892 975,00

– 59 864,81

– 59 864,81

0,00

2001

833 110,19

– 59 864,81

892 975,00

– 8 022 916,00

– 660 035,00

– 951,00

0,00

0,00

0,00

– 8 022 916,00

1998-2000

– 660 035,00

1998-2000

– 951,00

1998-2000

L

4
2
/
4
9

Sector

Member
State

Budget item

Reason

Currency

Expenditure
excluded from
financing

Deductions already
made

Financial impact
of decision

Financial year

4051-5012 flat-rate correction of 5 % — major shortcomings (Region of Tuscany)

4051-5012 flat-rate correction of 5 % — major shortcomings (Region of Sicily)

various

non-compliance with payment deadlines

Total I

EUR

EUR

EUR

– 2 911 483,00

– 161 175,00

0,00

0,00

– 2 911 483,00

1998-2000

– 161 175,00

1998-2000

– 14 498 092,31 – 14 498 092,31

0,00

2001

– 26 254 652,31 – 14 498 092,31 – 11 756 560,00

1041

cancellation of previous correction following judgment of Court of Justice

EUR

1 390 851,24

Total L

2024

2024

Total NL

cancellation of previous correction following judgment of Court of Justice

cancellation of previous correction following judgment of Court of Justice

EUR

EUR

1 390 851,24

847 818,45

14 859 727,01

15 707 545,46

Rural development

Rural development

Financial audit

Arable crops

I

I

I

L

Milk and milk products

Milk and milk products

NL

NL

Fruit and vegetables

P

1515

non-compliance with Regulation (EC) No 1169/97

EUR

– 28 515,69

Total P

Public storage

Livestock premiums

Financial audit

UK

UK

UK

2111-2114 flat-rate correction of 10 % — major shortcomings

2120-2125 shortcomings in key checks

1050-1060 non-compliance with payment deadlines

GBP

GBP

EUR

– 28 515,69

– 492 177,00

– 14 346 980,09

– 28 515,69

– 492 177,00

0,00 – 14 346 980,09

1998

2000

2001

– 55 047,63

– 55 047,63

0,00

Total UK

GBP

– 14 839 157,09

0,00 – 14 839 157,09

EUR

– 55 047,63

– 55 047,63

0,00

1 390 851,24

1996-1998

1 390 851,24

847 818,45

14 859 727,01

15 707 545,46

1996

1995

– 28 515,69

2000

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

L

4
2
/
5
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
U
n
o
n

i

.

.

1
5
2
2
0
0
3