2003/536/EC: Commission Decision of 22 July 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) 2587)
Date: 2003-07-22
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU financing, France, Greece, Italy, operational expenditure (EU)

L 184/42

EN

Official Journal of the European Union

23.7.2003

COMMISSION DECISION

of 22 July 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) 2587)

(Only the French, Greek and Italian texts are authentic)

(2003/536/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
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
30 April 2003 and relating to its content,

23.7.2003

EN

Official Journal of the European Union

L 184/43

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 Hellenic Republic, the French Republic and the Italian Republic.

Article 2

Done at Brussels, 22 July 2003.

For the Commission

Franz FISCHLER

Member of the Commission

ANNEX

Total corrections

Sector

Member
State

Budget item

Reason

Nat.
currency

Expenditure to
be excluded
from financing

Deductions
already made

Financial impact
of this decision

Financial year

Milk and milk products

Fruit and vegetables

Arable crops

Wine and tobacco

Livestock premiums

Livestock premiums

Total FR

Olive oil, fibre plants and seed

Total GR

Fruit and vegetables

Olive oil, fibre plants and seed

Total IT

FR

FR

FR

GR

GR

GR

GR

IT

IT

2040, 2049

Flat-rate correction of 10 % for shortcomings in key controls +
correction for poor management of guarantees

EUR

932 171,48

0,00

932 171,48

1997-1999

1512

Incorrect calculation of Community withdrawal compensation
(CWC)

EUR

8 949,00

0,00

8 949,00

2002

1041-1062

Flat-rate correction of 2 % for shortcomings in inspection visits

EUR

5 585 865,00

0,00

5 585 865,00

2000-2001

6 526 985,48

0,00

6 526 985,48

1630

Unsound control procedure for alcoholic strength of grapes and
lack of key controls

EUR

1 107 610,00

1 107 610,00

1999-2000

2120-2122

Flat-rate corrections of 25 % (2000) and 10 % (1999) for short-
comings in key controls

EUR

12 979 608,50

814 240,55 12 165 367,95

1999-2000

2220, 2221

Flat-rate correction of 5 % for shortcomings in key controls

EUR

14 200 695,85

14 200 695,85

1999-2000

1210

Flat-rate correction of 5 % for shortcomings in control system

EUR

45 138 544,00 20 998 254,38 24 140 289,62

1999-2000

73 426 458,35 21 812 494,93 51 613 963,42

1515

1210

Flat-rate corrections of 5 % (2000/2001) and 10 % (1999/2000)
for shortcomings in controls

Flat-rate correction of 2 % for shortcomings in the management
and effectiveness of controls

EUR

22 251 827,08

0,00 22 251 827,08

1999-2002

EUR

13 048 335,00

13 048 335,00

2000

35 300 162,08

0,00 35 300 162,08

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