Action brought on 15 January 2007 - Federal Republic of Germany v Commission of the European Communities

(Case T-14/07)

Language of the case: German

Parties

Applicant: Federal Republic of Germany (represented by: M. Lumma, C. Schulze-Bahr, assisted by C. von Donat, lawyer)

Defendant: Commission of the European Communities

Form of order sought

Annul Commission Decision C(2006) 5163 final of 3 November 2006 on the reduction of the financial assistance of the ERDF in the Operational Program for Nordrhein-Westfalen in the framework of the Community initiative KMU (ERDF No 94.02.10.029) in so far as the reduction exceeds the ERDF assistance not claimed;

order the Commission to pay the costs.

Pleas in law and main arguments

The contested decision reduces the assistance of the European Regional Development Fund (ERDF) in the Operational Program for Nordrhein-Westfalen in the framework of the Community Initiative.

In support of its action, the applicant submits that the contested decision infringes the Commission's authorising decision K(95) 1427 of 11 July 1995.

Moreover, it submits that there is an infringement of Article 24(2) of Regulation No 4253/88, ¹as the conditions for reduction are not satisfied. It also submits that the departures from the indicative financing plan do not constitute a significant change of the program.

Even if there were a significant change of the program, the applicant submits that the Commission previously agreed to a flexible application of the indicative financing plans by virtue of its Guidelines for the financial closure of operational measures (1994-1999) from the Structural Funds (SEK (1999) 1316).

On the assumption that the conditions for a reduction are satisfied, the applicant complains that the defendant failed to use its discretion in relation to the specific program. The Commission should have considered whether a reduction of the ERDF assistance was proportionate.

____________

¹ - COUNCIL REGULATION (EEC) No 4253/88 of 19 December 1988 laying down provisions for implementing Regulation (EEC) 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 (OJ L 374, 31.12.1988, p.1).