Judgment of the General Court (Sixth Chamber) of 28 October 2010 – Spain v Commission
(Case T-227/07)
EAGGF – Guarantee Section – Expenditure excluded from Community financing – Production aid intended for tomato processors – Spot checks over sufficient periods – Proportionality
1. Agriculture – EAGGF – 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 – Allocation between the Commission and the Member State (Council Regulation No 729/70) (see paras 36-39)
2. Agriculture – EAGGF – Grant of aid and premiums – Obligation on Member States to organise an effective system of administrative controls and on-the-spot checks – Spot checks over sufficient periods – Concept – Requirement that the subject not be aware in advance of a spot check or its unlikelihood during a predetermined period (Commission Regulation No 1535/2003, Arts 28 and 31) (see paras 64-65)
3. Acts of the institutions – Regulations – Regulation prescribing specific control measures – No discretion of Member States – Non-implementation – Justification – Better effectiveness of another control system – Not permissible (Commission Regulation No 1535/2003) (see paras 70, 101)
Re:
| ACTION for annulment, in part, of Commission Decision 2007/243/EC of 18 April 2007 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (OJ 2007 L 106, p. 55). |
Operative part
The Court:
2. | | Orders the Kingdom of Spain to pay the costs. |