Kingdom of Spain v Commission of the European Communities.
Date: 2003-06-19
38.  The Court has ruled that the adjustment procedure must be taken to apply to financial years after 16 October 1992 which were not the subject of a clearance decision prior to the entry into force of Regulation No 1287/95 (see Case C-373/99   Greece   v   Commission   [2001] ECR I-9619, paragraph 80).  In the present case, since the financial year in question is 1995 and since the decision relating to the clearance of accounts for that financial year, namely Decision 1999/187, was adopted on 3 February 1999, which was after the entry into force of Regulation No 1287/95, it follows that, contrary to the Spanish Government's line of argument, the adjustment procedure was intended to apply to that financial year.
41.  In that regard, the parties agree on the fact that the Commission's written communication is dated 8 July 1997 so that it is that date which should be taken into consideration for calculating the period of 24 months referred to in Article 5(2)(c) of Regulation No 729/70.  The Commission could therefore, if appropriate, apply the adjustment procedure to the expenditure effected by the Kingdom of Spain from 8 July 1995.
42.  It should also be pointed out that the Spanish Government does not deny that the definitive amount of the compensatory aid for bananas marketed in 1995 was established ─ and the balance paid ─ in 1996.
43.  That date must be regarded as decisive as regards application of Article 5(2)(c) of Regulation No 729/70.  Indeed, even if they can appear in the decision clearing the accounts, the amounts paid during the preceding year only constitute, as the Commission rightly contends, advances subject to the lodging of a security, and they are therefore not relevant as regards determining the date on which the aid is expended, for the purposes of applying the period of 24 months.
68.  As regards the Commission's alleged error in interpreting the results of its inspections, it should be noted that, in order to prove an infringement of the rules on the common organisation of the agricultural markets, the Commission is not required to demonstrate exhaustively that the checks carried out by the national authorities are inadequate, or that the data submitted by them are incorrect, but to adduce evidence of serious and reasonable doubt on its part regarding the checks or data.  The reason for this mitigation of the burden of proof on the Commission is that it is the Member State which is best placed to collect and verify the data required for the clearance of EAGGF accounts and, consequently, it is for that State to adduce the most detailed and comprehensive evidence that its inspections or figures are accurate and, if appropriate, that the Commission's statements are incorrect (see in particular Case C-247/98   Greece   v   Commission   [2001] ECR I-1, paragraphs 7 to 9).
83.  According to settled case-law, in the particular context of the preparation of decisions on the clearance of accounts, the grounds for a decision must be considered adequate if the Member State to which the decision is addressed was closely involved in the decision-making process and was aware of the reasons why the Commission considered that it was not required to charge the sum in dispute to the EAGGF (see Case C-147/99   Italy   v   Commission   [2001] ECR I-8999, paragraph 57).