Judgment of the General Court (Ninth Chamber) of 3 July 2014 —Netherlands v Commission

(Case T‑16/11)

EAGGF — Guarantee Section — EAGF and EAFRD — Expenditure excluded from financing — Expenditure in the context of the European quota system in relation to the production of potato starch — Rights of the defence

1.                     Agriculture — EAGGF — Clearance of accounts — Definitive refusal to accept responsibility for certain expenses — Need for prior inter partes procedure — Infringement of the rights of the defence (Council Regulations No 1258/1999, Art. 7(4), and No 1290/2005, Art. 31; Commission Regulations No 1663/95, Art. 8, and No 885/2006, Art. 11) (see paras 69, 97, 100, 102)

2.                     Agriculture — EAGGF — Clearance of accounts — Elaboration of decisions — Written communication by the Commission to Member States of the results of its checks — Content — Conditions — Non-compliance — Effect (Council Regulation No 1258/1999, Art. 7(4), fifth para.; Commission Regulations No 1663/95, Art. 8(1), and No 885/2006, Art. 11) (see paras 70‑78, 91)

Re:

APPLICATION for annulment of Commission Decision 2010/668/EU of 4 November 2010 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 2010 L 288, p. 24) in so far as it applies a financial correction to the Kingdom of the Netherlands in the context of the European quota system in relation to the production of potato starch for 2003 to 2008 in the total amount of EUR 28 947 149.31.

Operative part

The Court:

1. Annuls Commission Decision 2010/668/EU of 4 November 2010 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) in so far as it applies a financial correction to the Kingdom of the Netherlands in the context of the European quota system in relation to the production of potato starch for 2003 to 2008;

2. Orders the European Commission to pay the costs;

3. Orders the Federal Republic of Germany to bear its own costs.