Case T-243/05: Action brought on 30 June 2005 by the Hellenic Republic against the Commission of the European Communities
Date: 2005-08-20
Institutions: Court of First Instance
Subjects: EAGGF, European Commission, Greece, action for annulment (EU), arable land, audit, commitment of expenditure, distribution of EU funding, olive oil

C 205/36

EN

Official Journal of the European Union

20.8.2005

By letter dated 7 December 2004 under reference COMP/C2/
PK/pm/D/906((2004), the Commission informed the applicant
that it proposed to take no further action on the matter, while
inviting the applicant to inform it of any new matters which
could prove that there was an infringement. By a subsequent
letter dated 20 April 2005 under reference Comp/C2/PK/LVP/
D/219/2005, the Commission informed the applicant that it
was definitively rejecting its complaint.

— Annul the Commission's contested decision; or

— Alter it in accordance with the specific matters set out in

the application;

— Order the Commission to pay the costs.

those decisions.

The applicant seeks the annulment of
It
contends first of all that there is a complete lack of reasons for
the decision of 20 April 2005 which, in its submission, took
no account whatsoever of the new matters relied upon by it in
answer to the letter of 7 December 2004. It further submits
that the Greek Minister of Culture discriminated against it since
it granted all the other collective-management bodies a licence
in respect of all the fields requested, while in the case of the
applicant it granted a licence only for intellectual property-
rights, and not for related rights too as the applicant had
requested. The applicant submits that that was done intention-
ally in order to create monopolistic situations. The applicant
also pleads breach of the prohibition of discrimination on
grounds of nationality since,
in its view, holders of related
rights who are not Greek cannot choose in Greece whichever
company they want and entrust it with management of their
related rights. Finally, the applicant considers that the practice
of which it complained concerns a large part of the intellectual-
property market, and not a limited part — the view taken in
the contested measures.

Pleas and main arguments

By its contested decision the Commission, effecting clearance
of accounts under Regulation (EEC) No 729/70, excluded from
Community financing various expenditure incurred by the
Hellenic Republic in regard to arable crops, olive oil and finan-
cial control, with the result that those amounts were not recog-
nised as lawful Community financing and were charged to the
Hellenic Republic.

In support of its application, the applicant pleads that the
Commission did not have competence to impose the correc-
tions at issue inasmuch as they relate to expenditure effected
by the Member State at a time prior to the 24 months before
the Commission's initial notification in connection with that
expenditure.

Moreover, as regards the 5 % financial correction effected in
the sector of arable crops imposed by the contested decision on
the ground that the competent Greek services, notwithstanding
progress made by them continued to make payments even in
circumstances where
claims had demonstrably not been
checked correctly, the applicant calls in question the factual
circumstances relied on by the Commission and pleads an error
as to the facts and erroneous reasoning in the contested deci-
sion.
the Commission's
invokes infringement of
guidelines at VI/75330/97, breach of the principle of propor-
tionality, misappraisal of the facts and incorrect justification in
connection with the amount of the 5 % financial correction.

further

It

In regard to the correction in respect of financial control, the
applicant pleads that the payment arrears in regard to which
the corrections at issue were imposed are attributable either to
the need to effectuate supplementary checks owing to the
major discrepancy found in contrast to areas declared or to
exceptional circumstances, namely the submission and exami-
nation of objections concerning erroneous entries detected in
the database after payments had been made or, in one specific
case, to a suspension of works owing to force majeure.

Action brought on 30 June 2005 by the Hellenic Republic
against the Commission of the European Communities

(Case T-243/05)

(2005/C 205/64)

(Language of the case: Greek)

An action against the Commission of the European Commu-
nities was brought before the Court of First Instance of the
European Communities on 30 June 2005 by the Hellenic
Republic.

The applicant claims that the Court should: