Judgment of the General Court (Ninth Chamber) of 30 April 2015 —
France v Commission

(Case T‑259/13)

EAGGF — Guarantee Section — EAGF and EAFRD — Expenditure excluded from financing — Rural development support measures — Areas with natural handicaps — Flat rate financial correction — Expenditure incurred by France — Loading criterion — On-the-spot controls — Procedural safeguards

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 — Shared by the Commission and the Member State (Council Regulation No 1258/1999, Arts 7(4), 8 and 9) (see paras 50-53)

2.                     Agriculture — Common agricultural policy — EAFRD financing — Grant of aid and premiums — Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks — Two types of control independent in character (Commission Regulations No 1082/2003, Art. 2(2), No 796/2004, Arts 26(2)(b), and 35 and No 1975/2006, Arts 10, 12 and 14) (see paras 64, 65, 69-71, 74, 81, 87, 88)

3.                     Agriculture — Common agricultural policy — EAGGF financing — Clearance of accounts — Procedure — Conciliation procedure — Opinion of the conciliation body — No binding effect (Commission Decision 94/442, Art. 1(2)(a)) (see para. 80)

4.                     Agriculture — Common agricultural policy — EAGGF financing — Clearance of accounts — Elaboration of decisions — Written communication by the Commission to Member States of the results of its checks — Content — Conditions — Non-compliance — Effect (Council Regulations No 1258/1999, Art. 7(4), fifth para., and No 1290/2005, Art. 31; Commission Regulations No 1663/95, Art. 8(1), and No 885/2006, Art. 11) (see paras 98-100, 103-106, 109)

Re:

APPLICATION for the partial annulment of Commission Implementing Decision 2013/123/EU of 26 February 2013 on excluding from European Union 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 2013 L 67, p. 20).

Operative part

The Court:

1. Annuls Commission Implementing Decision 2013/123/EU of 26 February 2013 on excluding from European Union 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) in so far as it applies a financial correction to the French Republic in the context of rural development support measures for sheep not covered by an application for sheep premiums for the accounting years 2008 and 2009;

2. Dismisses the action as to the remainder;

3. Orders the French Republic to bear three quarters of its own costs and three quarters of the costs incurred by the European Commission;

4. Orders the European Commission to bear one quarter of its own costs and one quarter of the costs incurred by the French Republic;

5. Orders the Kingdom of Spain to bear its own costs.