Joined Cases T-349/06, T-371/06, T-14/07, T-15/07 and Case T-332/07

Federal Republic of Germany

v

Commission of the European Communities

(ERDF – Reduction of financial assistance – Change in the financing plan without the consent of the Commission – Concept of significant change – Article 24 of Regulation (EEC) No 4253/88 – Actions for annulment)

Summary of the Judgment

1.      Economic and social cohesion – Structural assistance – Community financing – Grant of financial assistance

(Council Regulation No 4253/88, as amended by Regulation No 2082/93, Arts 24 and 25(5))

2.      Community law – Interpretation – Texts in several languages

3.      Economic and social cohesion – Structural assistance – Community financing – Payment of financial assistance

(Council Regulation No 4253/88, as amended by Regulation No 2082/93, Art. 24)

1.      Any financial assistance paid out of the Structural Funds must be applied in accordance with the decision approving it and, in particular, in accordance with the financial table annexed to that decision since that table constitutes a programming instrument reflecting the common position of the Commission and the national authorities. Amendments to a financing plan approved by the Commission which are implemented without the latter’s consent lead, in principle, to a reduction in the assistance granted to the programme at issue, regardless of their significance in terms of quality or in terms of quantity.

In that context, the Guidelines for the financial closure of operational assistance (1994-1999) from the Structural Funds, which permit the transfer of funds between different measures of a programme for which financial assistance has been granted as long as the total amount of the sub-programme, as set out in the current financing plan, has not increased must be understood as seeking to facilitate the closure of programmes in the sense that the Commission, by virtue of the discretion granted to it by Article 24 of Regulation No 4253/88 laying down provisions for implementing Regulation No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments, as amended by Regulation No 2082/93, to decide whether or not to reduce or suspend Community assistance, would accept a certain degree of flexibility and that, consequently, changes fulfilling the conditions laid down would not give rise to a reduction even though those changes had not been submitted to the Commission for approval. It follows that point 6.2 of the Guidelines, laying down that flexibility clause, must be interpreted restrictively. Article 25(5) of Regulation No 4253/88 lays down a formal procedure for amendments to financial plans, which is binding both on the Member States and on the Commission, and that, therefore, the number of situations in which the Member States could be dispensed from following that procedure without risking a reduction of the assistance should be reduced as far as possible.

(see paras 60, 64, 72)

2.      In the context of a literal interpretation of a provision of Community law, it must be borne in mind that as Community legislation is drafted in various languages and the different language versions are all equally authentic, an interpretation of such a provision involves a comparison of the different language versions. The need for a uniform interpretation of Community regulations necessitates that one language version should not be considered in isolation, but that it should be interpreted and applied in the light of the versions existing in the other official languages, even if that means that the provision at issue has to be interpreted and applied in a manner at variance with the natural and usual meaning of the words used in one or more linguistic versions, contrary to the requirements of legal certainty.

(see para. 67)

3.      In the context of the system of subsidies provided for under Community rules, showing that a project was implemented is not sufficient to justify the payment of financial assistance. That system is based, in particular, on the performance by the beneficiary of a series of obligations to which payment of the intended financial assistance is made subject. If the beneficiary does not perform all its obligations, such as those concerning compliance with the legal and financial framework, Article 24 of Regulation No 4253/88 laying down provisions for implementing Regulation No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments, as amended by Regulation No 2082/93, permits the Commission to reconsider the extent of its obligations under the decision granting assistance. The infringement of obligations whose observance is of fundamental importance to the proper functioning of a Community system may be penalised by forfeiture of a right conferred by Community legislation without there being thereby any infringement of the principle of proportionality.

(see para. 77)