2004/457/: 2004/457/EC:#Commission Decision of 29 April 2004 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 Dutch, English, French, German, Greek, Italian, Portuguese and Spanish texts are authentic) (notified under document number C(2004) 1706)
Date: 2004-04-30
Institutions: European Commission
Subjects: Canada, EAGGF Guarantee Section, EU Member State, EU financing, animal breeding, common agricultural policy, health certificate, health control, import, operational expenditure, originating product, swine

30.4.2004              EN                       Official Journal of the European Union                                         L 156/47 

COMMISSION DECISION 

of 29 April 2004 

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(2004) 1706) 

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

(2004/457/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 the Council of 21 April 1970 on the 
financing of the common agricultural policy18, 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 Policy19, and in particular Article 7(4) thereof, 

Having consulted the Fund Committee, 

Whereas: 

(1) 

Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 1258/1999, 
and Article 8(1) and (2) of Commission Regulation (EC) No 1663/95 of 7 July 1995 
laying down detailed rules for the application of Council Regulation (EEC) No 729/70 
regarding  the  procedure  for  the  clearance  of  the  accounts  of  the  EAGGF  Guarantee 
Section20, provide that the Commission is to make the necessary verifications, inform 
the  Member  States  of  its  findings,  take  account  of  the  Member  States'  comments, 
initiate  bilateral  discussions  and  then  formally  communicate  its  conclusions  to  the 
Member  States,  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 Section21. 

18 

19 
20 

21 

OJ  L  94,  28.4.1970,  p.  13.  Regulation  as  last  amended  by  Regulation  (EC)  No  1287/95  (OJ  L  125, 
8.6.1995, p. 1). 
OJ L 160, 26.6.1999, p. 103. 
OJ  L  158,  8.7.1995,  p.  6.  Regulation  as  last  amended  by  Regulation  (EC)  No  2025/2001  (OJ  L  274, 
17.10.2001, p. 3). 
OJ L 182, 16.7.1994, p. 45. Decision as last amended by Decision 2001/535/EC (OJ L 193, 17.07.2001, 
p. 25). 

 
 
                                                 
30.4.2004              EN                       Official Journal of the European Union                                         L 156/48 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

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

Under  Articles  2  and  3  of  Regulation  (EEC)  No  729/70  and  Article  2  of  Regulation 
(EC)  No  1258/1999,  only  refunds  on  exports  to  third  countries  and  intervention  to 
stabilise  agricultural  markets,  respectively  granted  and  undertaken  according  to 
Community rules within the framework of the common organisation of the agricultural 
markets, may be financed. 

In the light of the checks carried out, the outcome of the bilateral discussions and the 
conciliation  procedures,  part  of  the  expenditure  declared  by  the  Member  States  does 
not  fulfil  these  requirements  and  cannot,  therefore,  be  financed  under  the  EAGGF 
Guarantee Section. 

The  amounts  that  are  not  recognised  as  being  chargeable  to  the  EAGGF  Guarantee 
Section should be indicated. Those amounts do not relate to expenditure incurred more 
than twenty-four 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  assessment  of  the  amounts  to  be 
excluded  on  grounds  of  non-compliance  with  Community  rules  was  notified  by  the 
Commission to the Member States 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 31 January 
2004 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  shall  be 
excluded from Community financing because it does not comply with Community rules. 

Article 2 

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

Done at Brussels, 29 April 2004. 

For the Commission 
Franz FISCHLER 
Member of the Commission 

 
  
 
30.4.2004              EN                       Official Journal of the European Union                                         L 156/49 

Table of corrections  

Sector 

Member 
State 

Budget item 

Date: 31/01/2004 

Reason 

Nat. 
Curr
ency

Expenditure to 
exclude from 
financing 

Deductions 
already 
made 

Financial 
impact of this 
decision 

State 

 Post 

corr

from financing 

made 

this decision  

(national 
currency) 

(national 
currency) 

(national currency) 

Fruit 
vegetables  

& 

BE 

1502 

Ad hoc correction 

EUR

637.388,15

637.388,15  2000-2002 

Total BE 

637.388,15

0,00

637.388,15 

Fruit 
vegetables  

Fruit 
vegetables  

& 

ES 

1501 

Ad hoc correction - failure to deliver contracted quantities 

EUR 5.253.601,00

5.253.601,00 

1999 

& 

ES 

1515 

Correction - infringement of Regulations (EC) Nos 2202/96 and 1169/97 - application of penalties 

EUR

40.765,86

40.765,86  2000-2001 

Public storage 

ES 

3100 

Flat-rate correction of 2% - shortcomings in controls: aid for the most deprived persons 

EUR 2.949.742,00

2.949.742,00  1999-2001 

Arable crops 

ES 

1040-
1062,1310, 
2120-2128 

Total ES 

Flat-rate correction of 2% - shortcomings in secondary controls 

EUR 2.314.888,00

2.314.888,00  1999-2001 

10.558.996,86

0,00 10.558.996,8
6 

Fruit 
vegetables  

Fruit 
vegetables  

& 

FR 

1508 

Flat-rate correction of 10% - absence of key controls/compensatory aid for bananas 

EUR 20.809.485,00

20.809.485,0
0 

1999-2001 

& 

FR 

1508 

Ad  hoc  correction  of  1.01%  -  infringement  of  Regulation  (EC)  No  404/93  -  compensatory  aid  for  bananas 
marketed 

EUR 3.469.655,00

3.469.655,00  1999-2002 

 
 
 
            
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.4.2004              EN                       Official Journal of the European Union                                         L 156/50 

Public storage 

FR 

3100 

Flat-rate  correction  of  10%  -  absence  of  a  key  control  and  2%  -  shortcomings  in  secondary  controls:  rice, 
skimmed milk, cereals 

EUR 6.206.612,00

6.206.612,00  1999-2000 

Arable crops 

FR 

1040-1062  Ad hoc correction - shortcomings in key controls on area eligible for direct payments 

EUR 27.678.616,00

27.678.616,0
0 

1999-2001 

Total FR 

58.164.368,00

0,00 58.164.368,0
0 

Financial audit 

DE 

4100-015  Financial correction - certification of accounts 

EUR

73.919,00

73.919,00

0,00 

2001 

Total DE 

73.919,00

73.919,00

0,00 

Fruit 
vegetables  

Fruit 
vegetables  

& 

GR 

1509 

Exclusion from financing beyond the triennial programme 

EUR 1.140.867,35

1.140.867,35  1999-2001 

& 

GR 

1512 

Correction - failure to pay the minimum price to producers 

EUR

650.549,56

650.549,56 

2001 

Public storage 

GR 

3100 

Flat-rate correction of 2% - shortcomings in controls: aid for the most deprived persons 

EUR

669.839,00

669.839,00  1998-2001 

Public storage 

GR 

1851-
1854,3100 

Total GR 

Flat-rate correction of 5% - shortcomings in key controls and late deliveries: rice 

EUR 2.510.456,73

2.510.456,73 

1999-
2001,1999 

4.971.712,64

0,00 4.971.712,64 

Public storage 

Rural 
development 

IT 

IT 

  Total IT

3100 

Flat-rate correction of 2% - shortcomings in controls: rice 

EUR 2.758.501,00

2.758.501,00  1999-2001 

4010-017  Correction - infringement of Regulation (EC) No 2075/2000: young farmers 

EUR 19.058.682,00

19.058.682,0
0 

2000-2001 

21.817.183,00

0,00 21.817.183,0
0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.4.2004              EN                       Official Journal of the European Union                                         L 156/51 

Fruit 
vegetables  

& 

UK 

1502 

Flat-rate correction of 2% - shortcomings in key and secondary controls 

GBP

218.982,84

218.982,84 

2000 

L'stock 
premiums 

UK 

2220-
2221,3900 

Flat-rate correction of 2% - shortcomings in controls 

GBP 2.505.130,93

2.505.130,93  2000-2001 

Arable crops 

UK 

1040-1060  Flat-rate correction of 2% - shortcomings in on-the-spot-checks 

GBP 11.484.350,00

11.484.350,0
0 

2002 

Total UK 

14.208.463,77

0,00 14.208.463,7
7 

Fruit 
vegetables  

L'stock 
premiums 

& 

NL 

1502 

Correction - expenditure above the flat rate of 2% 

EUR

78.314,00

78.314,00  2001-2002 

NL 

2120-2128  Flat-rate correction of 10% - shortcomings in key controls 

EUR 1.037.614,45

1.037.614,45  2002-2003 

Total NL 

1.115.928,45

0,00 1.115.928,45 

Public storage 

PT 

3100 

Flat-rate correction of 2% - shortcomings in controls: aid for the most deprived persons 

EUR 1.338.381,00

1.338.381,00  1998-2001 

Total PT 

1.338.381,00

0,00 1.338.381,00