Judgment of the General Court (Ninth Chamber) of 15 March 2018 –
Poland v Commission

(Case T‑507/15)

(EAGF — Expenditure excluded from financing — Regulation (EC) No 2200/96, Directive 2002/55/EC, Regulations (EC) No 1432/2003, (EC) No 1433/2003, (EC) No 1290/2005, (EC) No 885/2006, (EC) No 1182/2007, (EC) No 1234/2007, (EC) No 1580/2007 and (EU) No 1306/2013 — Expenditure effected by Poland — Risk to EAGF — On-the-spot checks — Recognition criteria of a producer organisation — Discrepancies between language versions — Financial correction)

1.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Challenge by the Member State concerned — Burden of proof — Shared by the Commission and the Member State

(see paras 25-28)

2.      EU law — Interpretation — Methods — Literal, systematic and teleological interpretation

2.      EU law — Interpretation — Methods — Literal, systematic and teleological interpretation

(see para. 42)

3.      Agriculture — Common organisation of the markets — Fruit and vegetables — Producers’ organisations — Financing by the EAGF — Recognition of those organisations by national authorities — Conditions — Inspection of organisations by the Member States– Scope — Continuity between the old and the new regulatory framework

3.      Agriculture — Common organisation of the markets — Fruit and vegetables — Producers’ organisations — Financing by the EAGF — Recognition of those organisations by national authorities — Conditions — Inspection of organisations by the Member States– Scope — Continuity between the old and the new regulatory framework

(Council Regulations No 1182/2007, Arts 4 and 55(2), and No 1234/2007, Art. 125b; Commission Regulations No 1432/2003, Art. 20 and No 1580/2007, Art. 108)

(see paras 44-48, 53, 55-58)

4.      Agriculture — Common agricultural policy — Financing by the EAGF — Grant of aid and premiums — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Implied obligation — Scope

(see para. 59)

5.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Elaboration of decisions — Written communication by the Commission to Member States of the results of its checks — Content

5.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Elaboration of decisions — Written communication by the Commission to Member States of the results of its checks — Content

(Commission Regulation No 885/2006, Art. 11(1))

(see paras 77, 78)

6.      Agriculture — Common organisation of the markets — Fruit and vegetables — Producers’ organisations — Financing by the EAGF — Recognition of those organisations by national authorities — Conditions — Determination by the Member States of information provided in the context of recognition — Scope

(Council Regulation No 2200/96, Art. 11(2)(a); Commission Regulation No 1432/2003, Arts 4(1), 16(a), 17(2)(a) and 20(1))

(see paras 93, 94)

7.      EU law — Interpretation — Texts in several languages — Uniform interpretation — Differences between the various language versions — Account to be taken of the overall scheme and purpose of the legislation in question

(see paras 104, 105)

8.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Period capable of being the subject-matter of a financial correction — Period subsequent to the date of the written communication of the results of the checks — Whether permissible in the event of persistence of the irregularities

8.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Period capable of being the subject-matter of a financial correction — Period subsequent to the date of the written communication of the results of the checks — Whether permissible in the event of persistence of the irregularities

(see para. 120)

9.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate correction issued by the Commission in accordance with internal guidelines — Defective or unsatisfactory character of key controls established by a Member State — Admissibility of the application of a flat-rate correction of 10% for all of the discrepancies identified

9.      Agriculture — Common agricultural policy — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate correction issued by the Commission in accordance with internal guidelines — Defective or unsatisfactory character of key controls established by a Member State — Admissibility of the application of a flat-rate correction of 10% for all of the discrepancies identified

(see paras 125-130)

Re:

Re:

Application pursuant to Article 263 TFEU seeking the partial annulment of Commission Implementing Decision (EU) 2015/1119 of 22 June 2015 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (OJ 2015 L 182, p. 39).

Operative part

The Court:

1. Dismisses the application;

2. Orders the Republic of Poland to pay the costs.

2. Orders the Republic of Poland to pay the costs.