Judgment of the General Court (Seventh Chamber) of 17 May 2013 — Greece v Commission
(Case T‑294/11)
EAGGF — ‘Guarantee section’ — EAGF and EAFRD — Expenditure excluded from financing — Olive oil — Arable crops — Manifest error of assessment — Increase in the correction due to recurrence of the infringement — Effect of the reform of the CAP on the correction — Proportionality — Nature of the expenditure intended for the establishment of the Olive GIS
1. Agriculture — EAGGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Challenge by the Member State concerned — Burden of proof — Allocation between the Commission and the Member State (see paras 21, 22)
2. Agriculture — EAGGF — Grant of aids and premiums — Obligation of Member States to organise an effective system of administrative controls and on-the-spot checks — Failure to fulfil obligations — Justification on the basis of practical difficulties — Not permissible (see paras 27, 189)
3. Agriculture — EAGGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Financial correction — Assessment of the level of failure to act and the degree of risk for the Fund — Elements to be taken into consideration — Gravity of the infringement — Recurrent failure — Lawfulness (Council Regulation No 1258/1999, Art. 7(4)) (see paras 82, 84-89, 98-100)
4. Agriculture — EAGGF — Clearance of accounts — Procedure — Subject-matter — Financial correction not constituting a penalty (see para. 83)
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. 296 TFEU) (see para. 94)
6. Agriculture — EAGGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Assessment of losses incurred by the Fund — Irregular expenses not capable of sufficiently precise determination — Assessment based on flat-rate corrections — Lawfulness (Council Regulation No 1290/2005, Art. 31) (see paras 154, 155, 175, 179)
7. EU law — Principles — Protection of legitimate expectations — Conditions — Specific assurances given by the authorities (see para. 193)
Re:
| APPLICATION for annulment of the Commission’s Implementing Decision 2011/244/EU of 15 April 2011 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 2011 L 102, p. 33) so far as concerns the Hellenic Republic. |
Operative part
The Court:
2. | | Orders the Hellenic Republic to pay the costs. |