Judgment of the General Court (Eighth Chamber) of 5 February 2015 —
Italy v Commission
(Case T‑387/12)
EAGGF — Guarantee Section — EAGF and EAFRD — Expenditure excluded from financing — Fruit and vegetables — Tomato processing sector — Aid to producer organisations — Expenditure incurred by Italy — Article 7(4) of Regulation (EC) No 1258/1999 — Article 31 of Regulation (EC) No 1290/2005 — Flat-rate correction
1. Agriculture — Common agricultural policy — EAGGF, EAGF and EAFRD financing — 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 (Council Regulations No 1258/1999, Art. 7(4), and No 1290/2005, Art. 31) (see paras 34-37, 43, 49, 61)
2. Agriculture — Common agricultural policy — EAGGF, EAGF and EAFRD financing — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Finding of defects in the control system established by a Member State — Possibility of Commission disallowing all the expenses — Application of flat-rate correction — No breach of principle of proportionality (Council Regulations No 1258/1999, Art. 7(4), and No 1290/2005, Art. 31) (see paras 55, 64, 68)
Re:
| APPLICATION for annulment in part of the Commission implementing decision 2012/336/EU of 22 June 2012, 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 2012 L 165, p. 83). |
Operative part
The Court:
2. | | Orders the Italian Republic to pay the costs. |