Judgment of the General Court (Second Chamber) of 12 July 2011 – Slovenia v Commission

(Case T-197/09)

EAGGF – ‘Guarantee’ Section – Expenditure excluded from Community financing – Arable crops

1.                     Acts of the institutions – Statement of reasons – Obligation – Scope – Decision relating to the clearance of accounts in respect of expenditure financed by the EAGGF (Art. 253 EC) (see paras 20-23)

2.                     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 (see paras 39-40, 83)

3.                     Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of the Community rules – Extrapolation of findings of deficiencies in the control system of a Member State from one region to other regions – Lawfulness – Conditions (see paras 58-64)

Re:

APPLICATION for annulment of Commission Decision 2009/253/EC of 19 March 2009 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) and under the European Agricultural Guarantee Fund (EAGF) (OJ 2009 L 75, p. 15), in so far as it excludes certain expenditure incurred by the Republic of Slovenia.

Operative part

The Court:

1. Dismisses the action;

2. Orders the Republic of Slovenia to bear its own costs and to pay those incurred by the European Commission.