Judgment of the General Court (Fourth Chamber) of 15 December 2011 – Luxembourg v Commission

(Case T-232/08)

EAGGF – Guarantee Section – Expenses excluded from Community financing – Rural development measures – ‘Less favoured areas’ and ‘agroenvironment’ – National systems for management, monitoring and sanctions – Flat-rate financial correction

1.                     Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of Community rules – Challenge by the Member State concerned – Burden of proof – Allocation between the Commission and the Member State (see paras 27-31, 51-53)

2.                     Actions for annulment – Contested act – Assessment of legality in the light of the information available at the time of adoption of the measure (Art. 230 EC) (see paras 54-55)

Re:

APPLICATION for partial annulment of Commission Decision 2008/321/EC of 8 April 2008 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) and under the European Agricultural Guarantee Fund (EAGF) (OJ 2008 L 109, p. 35).

Operative part

The Court:

1. Dismisses the action;

2. Orders the Grand Duchy of Luxembourg to pay the costs.