Judgment of the Court of First Instance (Second Chamber) of 25 July 2006 – Belgium v Commission

(Case T-221/04)

EAGGF – Clearance of accounts – Arable crops – Check on areas based on a system of aerial orthoimagery (GIS) – Difference between the area declared and the area resulting from the GIS system – Administrative check and inspection on site – Loss to EAGGF

1.                     Court of Justice – Court of First Instance – Unlimited jurisdiction – Exercise in the context of an action for annulment (Arts 229 EC and 230 EC) (see paras 27-28)

2.                     Agriculture – EAGGF – Clearance of accounts (Council Regulation No 729/70) (see paras 30-33, 82-92)

3.                     Agriculture – EAGGF – Grant of aids and premiums (Council Regulations Nos 729/70 and 3508/92; Commission Regulation No 3887/92) (see paras 52-57)

Re:

APPLICATION for the partial annulment of Commission Decision 2004/136/EC of 4 February 2004 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 2004 L 40, p. 31), in so far as it imposes a flat-rate correction of 2% of the expenses declared by Belgium in respect of arable crops.

Operative part

The Court:

1. Dismisses the action;

2. Orders the Kingdom of Belgium to pay the costs.