CELEX: 62005TJ0368
Language: en
Date: 2009-09-04
Title: Judgment of the Court of First Instance (Third Chamber) of 4 September 2009. # Republic of Austria v Commission of the European Communities. # EAGGF - Guarantee Section - Expenditure excluded from Community financing - Cattle premium - Suckler cow premium - Payment for extensification - Key controls - Duty to use a computerised geographical information system - Control of Alpine forage areas - Duty to cooperate - Duty to state reasons - Type of financial correction applied - Extrapolation of the findings of default. # Case T-368/05.

Judgment of the Court of First Instance (Third Chamber) of 4 September 2009 – Austria v Commission
      (Case T-368/05)
      EAGGF – Guarantee Section – Expenditure excluded from Community financing – Cattle premium – Suckler cow premium – Payment for extensification – Key controls – Duty to use a computerised geographical information system – Control of Alpine forage areas – Duty to cooperate – Duty to state reasons – Type of financial correction applied – Extrapolation of the findings of default
      1.                     Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of
            the Community rules (Council Regulation No 1258/1999) (see paras 71-72, 116-117)
      2.                     Agriculture – Common agricultural policy – EAGGF financing – Grant of aids and premiums – Obligation of Member States to organise
            an effective system of administrative controls and on-the-spot checks – Scope (Art. 10 EC; Council Regulations Nos 3508/92,
            Art. 8, and 1258/1999, Art. 8(1); Commission Regulation No 3887/92, Arts 6(1) and 9(2)) (see paras 78-88)
      3.                     Member States – Obligations – Duty of loyal cooperation with the Community institutions – Reciprocity (Art. 10 EC; Council
            Regulation No 1258/1999, Art. 8(1)) (see paras 128-131)
      4.                     Agriculture – Common agricultural policy – EAGGF financing – Accounts clearance procedure – Conciliation procedure – Opinion
            of the conciliation body – No binding effect (see para. 141)
      5.                     Acts of the institutions – Statement of reasons – Obligation – Scope – Decision relating to the clearance of accounts in respect
            of expenditure financed by the EAGGF (Art. 253 EC) (see paras 148-149)
      6.                     Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of
            the Community rules – Financial correction – Assessment of the level of failure to act and the degree of risk for the Fund
            (Council Regulation No 1258/1999) (see paras 181-184)
      7.                     Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of
            Community rules – Extrapolation of findings of deficiencies in the control system of a Member State from one region to other
            regions (Council Regulation No 1258/1999) (see paras 199-201)
      Re:
      
         
               ANNULMENT of Commission Decision 2005/555/EC of 15 July 2005 excluding from Community financing certain expenditure incurred
                  by the Member States under the ‘Guarantee’ Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (OJ 2005
                  L 188, p. 36), inasmuch as it excluded certain expenditure by the Republic of Austria.
               
            Operative part: 
      The Court:
      1.     Dismisses the action;
      2.     Orders the Republic of Austria to pay the costs.