Judgment of the General Court (Single Judge) of 6 May 2010 – Comune di Napoli v Commission

(Case T-388/07)

ERDF – Reduction in assistance – Urban pilot project for the development of a telematic network for the city of Naples – Concept of irregularity – Eligible expenses

1.                     Economic and social cohesion – Structural assistance – Community financing – Decision to reduce financial aid by reason of irregularities – Irregularity – Concept (Council Regulation No 4253/88, Art. 24(2) and (3)) (see paras 46-48, 54-58, 161)

2.                     Economic and social cohesion – Structural assistance – Community financing – Application for modifications of contractual conditions submitted by a body which benefited from aid – Duty of the Commission to reply within a reasonable time – Criteria for assessment (see paras 88-92)

3.                     Economic and social cohesion – European Regional Development Fund – Decision to reduce financial assistance – Amount of reduction determined without taking account of implementation of the project or of the absence of fraud or fraudulent intentions – Breach of principle of proportionality – None (Council Regulations No 4253/88, Art. 24, and No 2988/95, Art. 2) (see paras 146-148, 152-154)

4.                     Non-contractual liability – Conditions – Sufficiently serious breach of Community law – None – Action devoid of legal foundation (Art. 288, second para., EC) (see paras 174-178)

5.                     Non-contractual liability – Liability for a lawful act – Principle not recognised in Community law – Pleas designed to establish abnormal and special loss and a causal link between that loss and the said act – Inoperative pleas (Art. 288, second para., EC) (see paras 184-188)

Re:

First, annulment of Commission Decision C(2007) 3893 of 8 August 2007, concerning a reduction in the assistance granted by the European Regional Development Fund (ERDF) under Article 10 of Regulation (EEC) No 4254/88, amended by Regulation (EEC) No 2083/93, to the city of Naples (Italy) by Commission Decision PH/1997/2761, approving the granting of ERDF assistance in the context of urban pilot project No 97.05.29.002 and, secondly, an application for damages seeking compensation for the damage allegedly suffered by the applicant following the adoption of the contested decision.

Operative part

The Court:

1. Dismisses the action;

2. Orders the Comune di Napoli to pay the costs.