CELEX: 32006D0334
Language: en
Date: 2006-04-28 00:00:00
Title: 2006/334/EC: Commission Decision of  28 April 2006  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(2006) 1702)

11.5.2006   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               L 124/21
            
         
      COMMISSION DECISION
   
   of 28 April 2006
   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(2006) 1702)
   (Only the Spanish, German, Greek, English, French, Italian, Dutch, Portuguese, Finnish and Swedish texts are authentic)
   (2006/334/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), 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 (2), 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 Section (3) 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 with a view to reaching agreement with the Member States concerned and then 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 (4).
            
         
               (2)
            
            
               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.
            
         
               (3)
            
            
               Pursuant to 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, granted and undertaken respectively according to Community rules within the framework of the common organisation of the agricultural markets, may be financed.
            
         
               (4)
            
            
               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.
            
         
               (5)
            
            
               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.
            
         
               (6)
            
            
               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.
            
         
               (7)
            
            
               This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgements of the Court of Justice in cases pending on 25 November 2005 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 Kingdom of Spain, the French Republic, the Hellenic Republic, the Italian Republic, the Kingdom of the Netherlands, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland.
   
      Done at Brussels, 28 April 2006.
      
         
            For the Commission
         
         Mariann FISCHER BOEL
         
         
            Member of the Commission
         
      
   
   
      (1)  OJ L 94, 28.4.1970, p. 13. Regulation as last amended by Commission Regulation (EC) No 1287/95 (OJ L 125, 8.6.1995, p. 1).
   
      (2)  OJ L 160, 26.6.1999, p. 103.
   
      (3)  OJ L 158, 8.7.1995, p. 6. Regulation as last amended by Regulation (EC) No 465/2005 (OJ L 77, 23.3.2005, p. 6).
   
      (4)  OJ L 182, 16.7.1994, p. 45. Decision as last amended by Decision 2001/535/EC (OJ L 193, 17.7.2001, p. 25).
   
      ANNEX
      Total corrections
      
                  Sector
               
               
                  Member State
               
               
                  Budget item
               
               
                  Reason
               
               
                  Nat. Currency
               
               
                  Expenditure to exclude from financing
               
               
                  Deductions already made
               
               
                  Financial impact of this decision
               
               
                  Financial year
               
            
                  Milk and milk products
               
               
                  BE
               
               
                  2040
               
               
                  Control deficiencies: 5 % flat-rate correction. Incorrect treatment of result of physical checks: one-off correction
               
               
                  EUR
               
               
                  –5 851 253,86
               
               
                  0,00
               
               
                  –5 851 253,86
               
               
                  2001-2003
               
            
                   
               
               
                  
                     Total BE
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –5 851 253,86
                  
               
               
                  0,00
               
               
                  
                     –5 851 253,86
                  
               
               
                   
               
            
                  Milk and milk products
               
               
                  DE
               
               
                  2040
               
               
                  Non-compliance with the requirement to perform unannounced checks. 10 % flat-rate correction (1 operator)
               
               
                  EUR
               
               
                  – 396 063,56
               
               
                  0,00
               
               
                  – 396 063,56
               
               
                  2002-2004
               
            
                   
               
               
                  
                     Total DE
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     – 396 063,56
                  
               
               
                  
                     0,00
                  
               
               
                  
                     – 396 063,56
                  
               
               
                   
               
            
                  Fruit and vegetables
               
               
                  GR
               
               
                  1515
               
               
                  Partial annulment of Commission Decision 2002/881/EC, amount to be reimbursed to Greece.
               
               
                  EUR
               
               
                  623 385,74
               
               
                  0,00
               
               
                  623 385,74
               
               
                  1998-2000
               
            
                  Public storage
               
               
                  GR
               
               
                  3231
               
               
                  Partial annulment of Commission Decision 2003/102/EC, amount to be reimbursed to Greece.
               
               
                  EUR
               
               
                  9 926 005,21
               
               
                  0,00
               
               
                  9 926 005,21
               
               
                  1999-2001
               
            
                  Irregularities
               
               
                  GR
               
               
                  Miscellaneous
               
               
                  Partial annulment of Commission Decision 2003/481/EC, amount to be reimbursed to Greece.
               
               
                  EUR
               
               
                  41 884,90
               
               
                  0,00
               
               
                  41 884,90
               
               
                   
               
            
                   
               
               
                  
                     Total GR
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     10 591 275,85
                  
               
               
                  
                     0,00
                  
               
               
                  
                     10 591 275,85
                  
               
               
                   
               
            
                  Public storage
               
               
                  ES
               
               
                  2111, 2112, 2113, 2114
               
               
                  Control deficiencies: 5 % flat-rate correction
               
               
                  EUR
               
               
                  –2 763 696,91
               
               
                  0,00
               
               
                  –2 763 696,91
               
               
                  2001-2003
               
            
                  Animal premiums
               
               
                  ES
               
               
                  2220, 2221, 2222
               
               
                  Premium paid to farmers not having the minimum quota rights. One-off correction
               
               
                  EUR
               
               
                  –78 720,15
               
               
                  0,00
               
               
                  –78 720,15
               
               
                  2003-2004
               
            
                  Rural development
               
               
                  ES
               
               
                  4000, 4010
               
               
                  Various shortcomings in the management and control system. 5 % flat-rate correction
               
               
                  EUR
               
               
                  – 135 394,00
               
               
                  0,00
               
               
                  – 135 394,00
               
               
                  2002-2003
               
            
                  Financial audit
               
               
                  ES
               
               
                  Miscellaneous
               
               
                  Partial annulment of Commission Decision 2002/461/EC, amount to be reimbursed to Spain.
               
               
                  EUR
               
               
                  451 482,55
               
               
                  0,00
               
               
                  451 482,55
               
               
                  2001
               
            
                   
               
               
                  
                     Total ES
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –2 526 328,51
                  
               
               
                  
                     0,00
                  
               
               
                  
                     –2 526 328,51
                  
               
               
                   
               
            
                  Milk and milk products
               
               
                  FI
               
               
                  2040
               
               
                  Control w eakness. 5 % flat-rate correction (1 operator)
               
               
                  EUR
               
               
                  –65 903,93
               
               
                  0,00
               
               
                  –65 903,93
               
               
                  2002-2003
               
            
                  Ceiling overshoot
               
               
                  FI
               
               
                  2128
               
               
                  Overshoot of financial ceilings
               
               
                  EUR
               
               
                  –6 820,82
               
               
                  –6 820,82
               
               
                  0,00
               
               
                  2003
               
            
                   
               
               
                  
                     Total FI
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –72 724,75
                  
               
               
                  
                     –6 820,82
                  
               
               
                  
                     –65 903,93
                  
               
               
                   
               
            
                  Fruit and vegetables
               
               
                  FR
               
               
                  1508
               
               
                  Aid over-estimated (calculated on the basis of quantities loaded rather quantities marketed), non-application of sanction in respect of claim submitted after the deadline: one-off correction. Non-performance of several key controls: 10 % flat-rate correction
               
               
                  EUR
               
               
                  –32 072 056,72
               
               
                  0,00
               
               
                  –32 072 056,72
               
               
                  2002-2004
               
            
                  Public storage
               
               
                  FR
               
               
                  2111, 2112, 2113, 2114
               
               
                  Control deficiencies: 5% flat-rate correction. Payment delays: one-off correction
               
               
                  EUR
               
               
                  –7 135 187,50
               
               
                  0,00
               
               
                  –7 135 187,50
               
               
                  2001-2003
               
            
                  Rural development
               
               
                  FR
               
               
                  4040
               
               
                  Incorrect application of a procedure for verifying one of the conditions of eligibility. One-off correction
               
               
                  EUR
               
               
                  – 870 374,00
               
               
                  0,00
               
               
                  – 870 374,00
               
               
                  2002
               
            
                   
               
               
                  
                     Total FR
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –40 077 618,22
                  
               
               
                  
                     0,00
                  
               
               
                  
                     –40 077 618,22
                  
               
               
                   
               
            
                  Fruit and vegetables
               
               
                  IT
               
               
                  1501, 1502, 1515
               
               
                  Non-application of sanctions, deficiencies in controls on composting and bio-degradation. 10 % flat-rate correction and one-off correction
               
               
                  EUR
               
               
                  –30 021 060,00
               
               
                  0,00
               
               
                  –30 021 060,00
               
               
                  1999-2002
               
            
                  Fruit and vegetables
               
               
                  IT
               
               
                  1512
               
               
                  Non-compliance with payment deadlines. One-off correction
               
               
                  EUR
               
               
                  –4 414 265,04
               
               
                  0,00
               
               
                  –4 414 265,04
               
               
                  2002
               
            
                  Fruit and vegetables
               
               
                  IT
               
               
                  1502
               
               
                  Key controls are not applied in the number, frequency, or depth required by the regulations. 5 % flat-rate correction
               
               
                  EUR
               
               
                  –7 708 059,40
               
               
                  0,00
               
               
                  –7 708 059,40
               
               
                  2000-2003
               
            
                  Milk and milk products
               
               
                  IT
               
               
                  2040
               
               
                  Non-compliance with the regulations: one-off correction. Control deficiencies: 5 % flat-rate correction. Non-compliance with minimum rate of control: 10 % flat-rate
               
               
                  EUR
               
               
                  – 297 002,44
               
               
                  0,00
               
               
                  – 297 002,44
               
               
                  2002-2004
               
            
                  Arable crops
               
               
                  IT
               
               
                  1040-1062, 1310, 1858
               
               
                  Failure to apply sanctions. 3 % flat-rate correction
               
               
                  EUR
               
               
                  –7 975 231,00
               
               
                  0,00
               
               
                  –7 975 231,00
               
               
                  2002
               
            
                  Arable crops
               
               
                  IT
               
               
                  1040-1060, 1310, 1858
               
               
                  Poor quality of classical field inspections. 5 % flat-rate correction
               
               
                  EUR
               
               
                  – 603 692,00
               
               
                  –36 829,00
               
               
                  – 566 863,00
               
               
                  2001-2003
               
            
                  Rural development
               
               
                  IT
               
               
                  4000, 4010, 4040
               
               
                  Weaknesses in the management, control and sanctions system. 2 % flat-rate correction
               
               
                  EUR
               
               
                  –3 748 761,00
               
               
                  0,00
               
               
                  –3 748 761,00
               
               
                  2001-2002
               
            
                  Payment deadline
               
               
                  IT
               
               
                  Miscellaneous
               
               
                  Failure to meet payment deadlines
               
               
                  EUR
               
               
                  –30 938 245,66
               
               
                  –31 631 666,68
               
               
                  693 421,02
               
               
                  2003
               
            
                   
               
               
                  
                     Total IT
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –85 706 316,54
                  
               
               
                  
                     –31 668 495,68
                  
               
               
                  
                     –54 037 820,86
                  
               
               
                   
               
            
                  Milk and milk products
               
               
                  NL
               
               
                  2040
               
               
                  Unsatisfactory sampling procedure: 10 % flat-rate correction (1 operator). Incorrect treatment of result of physical checks: one-off correction
               
               
                  EUR
               
               
                  – 158 235,60
               
               
                  0,00
               
               
                  – 158 235,60
               
               
                  2002-2003
               
            
                   
               
               
                  
                     Total NL
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     – 158 235,60
                  
               
               
                  
                     0,00
                  
               
               
                  
                     – 158 235,60
                  
               
               
                   
               
            
                  Fat
               
               
                  PT
               
               
                  1400, 1402
               
               
                  The control system put in place w as not adequate to prevent irregular practices on the part of all the actors concerned in the flax sector. 100 % financial correction
               
               
                  EUR
               
               
                  –3 135 348,71
               
               
                  0,00
               
               
                  –3 135 348,71
               
               
                  2001
               
            
                   
               
               
                  
                     Total PT
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –3 135 348,71
                  
               
               
                  
                     0,00
                  
               
               
                  
                     –3 135 348,71
                  
               
               
                   
               
            
                  Arable crops
               
               
                  SE
               
               
                  1040, 1062, 1310
               
               
                  Shortcomings in the application of the rules regarding set-aside, incorrect application of technical tolerances, obvious errors applied over-generously. One-off correction.
               
               
                  SEK
               
               
                  –1 308 192,00
               
               
                  0,00
               
               
                  –1 308 192,00
               
               
                  2001-2002
               
            
                   
               
               
                  
                     Total SE
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     –1 308 192,00
                  
               
               
                  
                     0,00
                  
               
               
                  
                     –1 308 192,00
                  
               
               
                   
               
            
                  Financial audit
               
               
                  UK
               
               
                  Miscellaneous
               
               
                  Unidentified corrections to be credited to EAGGF. One-off correction
               
               
                  GBP
               
               
                  – 497 130,69
               
               
                  0,00
               
               
                  – 497 130,69
               
               
                  2004
               
            
                   
               
               
                  
                     Total UK
                  
               
               
                   
               
               
                   
               
               
                   
               
               
                  
                     – 497 130,69
                  
               
               
                  
                     0,00
                  
               
               
                  
                     – 497 130,69