Judgment of the General Court (Fourth Chamber) of 26 June 2018 –
France v Commission

(Case T‑259/13 RENV)

(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)

1.      Agriculture — Common agricultural policy — EAFRD financing — Support for rural development — Eligibility of operations and expenses — Reductions and exclusions — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Possibility to run the inspections at the same time — Conditions — Inspections carried out for the purposes of determining the animal density rate covered by way of compensatory payments paid to farmers located in areas with natural handicaps — Requirement to show that the specific characteristics of both types of inspections are taken into account

(Commission Regulation No 1975/2006, Arts 5(2), 10(2) and 12)

(see paras 55, 62-64, 68)

2.      Agriculture — Common agricultural policy — EAFRD financing — Support for rural development — Improving the environment and the countryside — Compensatory allowances paid to farmers located in areas of natural handicaps — Calculation — Consequences for on-the-spot checks

(Council Regulation No 1698/2005, Art. 36(a)(i) and (ii))

(see paras 75, 77)

Re:

Application on the basis of Article 263 TFEU seeking 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. Dismisses the action;

2. Orders the French Republic and the European Commission to bear their own costs;

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

2. Orders the French Republic and the European Commission to bear their own costs;

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

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