CELEX: 62009TJ0500
Language: en
Date: 2011-09-22 00:00:00
Title: Judgment of the General Court (Sixth Chamber) of 22 September 2011. # Italian Republic v European Commission. # EAGGF - Guarantee Section - Expenditure excluded from Community financing - Aid for the processing of citrus fruit - Effectiveness of the checks - Proportionality. # Case T-500/09.

Judgment of the General Court (Sixth Chamber) of 22 September 2011 – Italy v Commission
      (Case T-500/09)
      EAGGF – Guarantee Section – Expenditure excluded from Community financing – Aid for the processing of citrus fruit – Effectiveness of the checks – Proportionality
      1.                     Agriculture – Common agricultural policy – EAGGF financing – Clearance of accounts – Disallowance of expenditure arising from
            irregularities in the application of the Community rules – Challenge by the Member State concerned – Burden of proof – Allocation
            between the Commission and the Member State (Council Regulation No 1258/1999) (see para. 33)
      2.                     Agriculture – Common agricultural policy – EAGGF financing – Clearance of accounts – Disallowance of expenditure arising from
            irregularities in the application of the Community rules – Margin of discretion of the Commission – None (Council Regulation
            No 1258/1999) (see para. 44)
      3.                     Agriculture – Common agricultural policy – EAGGF financing – Grant of aids and premiums – Obligation on Member States to organise
            an efficient system of administrative controls and spot checks – Failure to fulfil obligations – Justification on the basis
            of practical difficulties – Not permissible (Council Regulation No 1258/1999, Art. 8; Commission Regulation No 2111/2003,
            Art. 24) (see para. 45)
      4.                     Agriculture – Common agricultural policy – EAGGF financing – Clearance of accounts – Disallowance of expenditure arising from
            irregularities in the application of the Community rules – Finding of failures in the control system implemented by a Member
            State – Possibility of the Commission disallowing all the expenditure – Application of a flat-rate correction – Breach of
            principle of proportionality – None (Council Regulation No 1258/1999, Art. 7) (see para. 50)
      Re:
      
         
               APPLICATION for annulment of Commission Decision 2009/721/EC of 24 September 2009 excluding from Community financing certain
                  expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee
                  Fund (EAGGF), under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development
                  (EAFRD) (OJ 2009 L 257, p. 28), in so far as it excludes certain expenditure incurred by the Italian Republic in the sector
                  of citrus‑fruit processing.
               
            Operative part 
      The Court:
      
         
                  1.
               
               
                  
               
               
                  	Dismisses the action;
               
            
         
                  2.
               
               
                  
               
               
                  	Orders the Italian Republic to pay the costs.