CELEX: C2004/201/46
Language: en
Date: 2004-08-07 00:00:00
Title: Case T-207/04: Action brought on 4 June 2004 by the Italian Republic against the Commission of the European Communities

7.8.2004   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 201/23
            
         Action brought on 4 June 2004 by the Italian Republic against the Commission of the European Communities
   (Case T-207/04)
   (2004/C 201/46)
   Language of the case: Italian
   An action against the Commission of the European Communities was brought before the Court of First Instance of the European Communities on 4 June 2004 by the Italian Republic, represented by Antonio Cingolo, avvocato dello Stato.
   The applicant claims that the Court should:
   
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               annul the Commission's letter No E2/LP D(2004) 712 of 25 March 2004, received on 26 March 2004, by which the European Commission, Directorate-General for Regional Policy, communicated to it the decision that amounts in respect of payments of certain advance payments (advance payments in the context of aid schemes for any Objective 1 and 2 programme) must be clearly identified in future payment declarations, in accordance with the provisions of the abovementioned letter from Commissioner Barnier, together with all underlying and connected measures;
            
         
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               in the alternative, and so far as may be necessary, annul Commission Regulation (EC) No 448/2004 of 10 March 2004 amending Regulation (EC) No 1685/2000 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the eligibility of expenditure of operations co-financed by the Structural Funds;
            
         
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               in any event, annul all underlying and connected measures;
            
         
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               order the Commission of the European Communities to pay the costs.
            
         Pleas in law and main arguments:
   The Italian Republic has challenged before the Court of First Instance of the European Communities the Commission's letter No E2/LP D(2004) 712 of 25 March 2004 concerning the payment of advance payments in the context of aid schemes (MOP Research, Technological Development and Advanced Training), and – so far as may be necessary – Commission Regulation (EC) No 448/2004 of 10 March 2004 (1), both concerning the eligibility of expenditure of operations co-financed by the Structural Funds.
   In support of its claims in respect of the letter of 25 March 2004, the applicant alleges:
   
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               infringement of essential procedural requirements owing to a complete failure to state reasons and owing to the adoption of the contested measure without any proper legal basis and without complying with the defendant's internal procedural rules;
            
         
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               infringement of Article 9 of Commission Regulation (EC) No 438/2001 (2) by failing to comply with the accounting methods set out therein;
            
         
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               infringement of Article 32 of the basic regulation (3) and of Commission Regulation No 448/04, which make the payment of advance payments conditional simply upon proof that the ‘final beneficiary’ State has transferred the sums in question to the end recipients of the funds;
            
         
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               infringement of Regulation No 448/04 owing to breaches of the principles of equality and legal certainty, and contradictory reasoning in the contested letter.
            
         In respect of Regulation No 448/04, the applicant alleges infringement:
   
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               of the rules governing the eligibility of expenditure laid down by the basic regulation;
            
         
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               of the rules governing financial control (which do not impose the obligations alleged by the Commission);
            
         
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               of the principle of proportionality, in so far as the Commission requests evidence in addition to what is provided for and is necessary;
            
         
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               of the principle of non-retroactivity, given that Regulation No 448/04 contains provisions with retroactive effect for 44 months prior to its adoption, which is clearly unacceptable in the light of the general principles governing legislative enactment.
            
         
      (1)  Commission Regulation (EC) No 448/2004 of 10 March 2004 amending Regulation (EC) No 1685/2000 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the eligibility of expenditure of operations co-financed by the Structural Funds and withdrawing Regulation (EC) No 1145/2003 (OJ 2004 L 72, p. 66).
   
      (2)  Commission Regulation (EC) No 438/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the management and control systems for assistance granted under the Structural Funds (OJ 2001 L 63, p. 21).
   
      (3)  Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds (OJ 1999 L 161, p. 1).