2003/364/EC: Commission Decision of 15 May 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) 1539)
Date: 2003-05-15
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU financing, infringement of EU law, operational expenditure (EU)

20.5.2003

EN

Official Journal of the European Union

L 124/45

COMMISSION DECISION

of 15 May 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) 1539)

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

(2003/364/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
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)

(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
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).

(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.

(3)

(4)

(5)

(6)

(7)

(8)

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
those conditions and
Member States does not meet
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
28 February 2003 and relating to its content,

L 124/46

EN

Official Journal of the European Union

20.5.2003

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.

This Decision is addressed to the Federal Republic of Germany, the Hellenic Republic, the Kingdom of
Spain, the French Republic, Ireland, the Italian Republic, the Republic of Austria and the Portuguese
Republic.

Article 2

Done at Brussels, 15 May 2003.

For the Commission

Franz FISCHLER

Member of the Commission

ANNEX

Total corrections

Sector

Member State

Budget item

Reason

Currency

Expenditure to
exclude from
financing

Deductions already
made

Financial impact of
this decision

Financial year

Agri-environmental
measures

A

5011

Ad hoc correction — shortcomings in the manage-
ment of recoveries

EUR

63 531,00

0,00

63 531,00

1999

Livestock premiums

Livestock premiums

Livestock premiums

Emergency BSE
payments

Financial audit

Financial audit

Wine and tobacco

Wine and tobacco

Arable crops

Total A

E

E

Total E

D

D

D

Total D

F

F

F

Total F

EL

Total EL

2120-2125

Flat-rate corrections
budget
secondary controls

(2 % and 5 % accredited to
items) shortcomings in key controls and

2124,2128

Flat-rate corrections (2 %, 5 % and 10 % accredited to
autonomous
in key
controls and secondary controls

communities)

shortcomings

63 531,00

EUR

49 025,30

0,00

0,00

63 531,00

49 025,30

2000

EUR

2 850 510,00

0,00

2 850 510,00

2000

2 899 535,30

0,00

2 899 535,30

2120-2125

Flat-rate corrections of 2 % — shortcomings
secondary controls

in

EUR

804 200,60

0,00

804 200,60

1998-1999

2190

Ad hoc correction in connection with Regulation
(EC) No 2443/96

EUR

1 037,41

1 037,41

0,00

1998

miscellaneous

Materiality threshold for errors exceeded

EUR

927 401,00

0,00

927 401,00

2000

1 732 639,01

1 037,41

1 731 601,60

4081

Adjustment

EUR

44 560,42

44 560,42

0,00

2001

1611-1630

Failure to comply with legislation: spirits

EUR

1 412 550,00

0,00

1 412 550,00

1999-2000

1611-1630

Failure to comply with legislation: concentrated must
and rectified concentrated must

EUR

23 146 858,00

0,00

23 146 858,00

1999-2000

1041-1062
1310,1858

Flat-rate corrections of 5 % for unsound management
and lack of key controls

EUR

57 294 195,00

24 146 701,10

33 147 493,90

2000-2001

57 294 195,00

24 146 701,10

33 147 493,90

24 603 968,42

44 560,42

24 559 408,00

.

.

2
0
5
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

L

1
2
4
/
4
7

Sector

Member State

Budget item

Reason

Currency

Expenditure to
exclude from
financing

Deductions already
made

Financial impact of
this decision

Financial year

Beekeeping

IRL

2320/2540

Non-eligible expenditure

EUR

16 986,67

Total IRL

16 986,67

2120-2125

Ad hoc correction: failure to impose penalties

EUR

3 842 890,00

0,00

0,00

0,00

16 986,67

1999-2001

16 986,67

3 842 890,00

1999-2000

Livestock premiums

Arable crops

Financial audit

Financial audit

Financial audit

Livestock premiums

I

I

I

I

I

Total I

P

Total P

1041-1062
1310,1858

Flat-rate
secondary controls

correction of 2 % — shortcomings

in

EUR

75 966 670,00

0,00

75 966 670,00

2000-2001

4072

4072

4072

Amended correction — Calabria region

EUR

9 579,24

– 9 579,24

Correction for payments not
Regulation (EEC) No 2080/92

in compliance with

EUR

56 152,28

0,00

56 152,28

2001

2001

Shortcomings
payments and guarantees

in the management of

advance

EUR

82 259,70

0,00

82 259,70

2001

2120-2125
3211

Flat-rate corrections
budget
secondary controls

(2 % and 5 % accredited to
items) shortcomings in key controls and

79 947 971,98

9 579,24

79 938 392,74

EUR

2 446 684,20

0,00

2 446 684,20

1999

2 446 684,20

0,00

2 446 684,20

L

1
2
4
/
4
8

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

.

.

2
0
5
2
0
0
3