Address https://gelex.eu/eli/EU/decision/2007/243@2007-04-18/en

Contents

1. Preamble
2. 1. Article 1
   2. Article 2
3. ANNEX
4. ANNEX Total corrections — Budget item 6 7 0 1 Total corrections — Budget item 05 07 01 07

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy, and in particular Article 5(2)(c) thereof,

Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy, and in particular Article 7(4) thereof,

Having consulted the Committee on the Agricultural Funds,

Whereas:

(1) Under Article 5 of Council Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 1258/1999, and Article 8(1) and (2) of Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Regulation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section, the Commission is to carry out the necessary verifications, communicate to the Member States the results of these verifications, take note of the comments of the Member States, initiate a bilateral discussion so that an agreement may be reached with the Member States in question, and formally communicate its conclusions to them.

(2) The Member States have had an opportunity to request the launch of a conciliation procedure. That opportunity has been used in some cases and the report issued on the outcome has been examined by the Commission.

(3) Under Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, granted and undertaken respectively according to Community rules within the framework of the common organisation of the agricultural markets, may be financed.

(4) In the light of the verifications carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section.

(5) The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section should be indicated. Those amounts do not relate to expenditure incurred more than twenty-four months before the Commission’s written notification of the results of the verifications to the Member States.

(6) As regards the cases covered by this Decision, the assessment of the amounts to be excluded on grounds of non-compliance with Community rules was notified by the Commission to the Member States in a summary report on the subject.

(7) This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments of the Court of Justice in cases pending on 25 January 2007 and relating to its content,

HAS ADOPTED THIS DECISION:

Article 1

The expenditure itemised in the Annex hereto that has been incurred by the Member States’ accredited paying agencies and declared under the EAGGF Guarantee Section shall be excluded from Community financing because it does not comply with Community rules.

Article 2

This Decision is addressed to the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 18 April 2007. For the Commission Mariann Fischer Boel Member of the Commission

ANNEX

ANNEX Total corrections — Budget item 6 7 0 1 Total corrections — Budget item 05 07 01 07

MS Measure FY Reason Type % Currency Amount Deductions already made Financial impact AT Financial audit — Overshooting 2005 Overshooting of financial ceilings one-off EUR –577,47 –577,47 0,00 Total AT EUR –577,47 –577,47 0,00 BE Clearance of accounts 2001 Clearance of 2001 accounts one-off EUR –45922,50 –45922,50 0,00 BE Clearance of accounts 2003 Clearance of 2003 accounts one-off EUR –53786,11 –29109,11 –24677,00 Total BE EUR –99708,61 –75031,61 –24677,00 DE Clearance of accounts 2003 Clearance of 2003 accounts one-off EUR –2372552,57 0,00 –2372552,57 DE Clearance of accounts 2004 Clearance of 2004 accounts one-off EUR –848720,33 0,00 –848720,33 DE Clearance of accounts 2005 Clearance of 2005 accounts one-off EUR –1475549,22 0,00 –1475549,22 DE Financial audit — Late payments 2005 Failure to meet payment deadlines one-off EUR –123145,69 –188245,69 65100,00 DE Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –134267,39 0,00 –134267,39 Total DE EUR –4954235,20 –188245,69 –4765989,51 DK Export Refunds 2000 Inadequate implementation of substitution checks flat-rate 2 % DKK –4042587,64 0,00 –4042587,64 DK Export Refunds 2000 Inadequate implementation of substitution checks flat-rate 5 % DKK –1694642,72 0,00 –1694642,72 DK Export Refunds 2001 Inadequate implementation of substitution checks flat-rate 2 % DKK –11636374,73 0,00 –11636374,73 DK Export Refunds 2001 Inadequate implementation of substitution checks flat-rate 5 % DKK –5847108,45 0,00 –5847108,45 DK Export Refunds 2002 Inadequate implementation of substitution checks flat-rate 2 % DKK –14620538,05 0,00 –14620538,05 DK Export Refunds 2002 Inadequate implementation of substitution checks flat-rate 5 % DKK –6732926,94 0,00 –6732926,94 DK Export Refunds 2003 Inadequate implementation of substitution checks flat-rate 2 % DKK –3239587,36 0,00 –3239587,36 DK Export Refunds 2003 Inadequate implementation of substitution checks flat-rate 5 % DKK –1450243,99 0,00 –1450243,99 DK Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –68177,57 –68177,57 0,00 Total DK DKK –49264009,88 0,00 –49264009,88 Total DK EUR –68177,57 –68177,57 0,00 ES Financial audit — Late payments 2004 Failure to meet payment deadlines one-off EUR –9070409,96 –9197146,98 126737,02 ES Financial audit — Late payments 2005 Failure to meet payment deadlines one-off EUR –7923714,21 –7940441,61 16727,40 ES Financial audit — Overshooting 2005 Overshooting of financial ceilings one-off EUR 339296,14 339296,14 0,00 ES Fruit and Veg — Nuts (other measures) 2003 Non-respect of payment deadlines one-off EUR –28111606,97 0,00 –28111606,97 ES Fruit and Veg — Nuts (other measures) 2004 Non-respect of payment deadlines one-off EUR –32542235,13 0,00 –32542235,13 ES Fruit and Veg — Tomato Processing 2003 Tomatoes delivered outside the regular daytime working hours of the competent authorities could not be adequately controlled, insufficient reconciliation of records with official bookkeeping flat-rate 5 % EUR –1850032,92 0,00 –1850032,92 ES Fruit and Veg — Tomato Processing 2004 Tomatoes delivered outside the regular daytime working hours of the competent authorities could not be adequately controlled, insufficient reconciliation of records with official bookkeeping flat-rate 5 % EUR –2240283,54 0,00 –2240283,54 ES Promotional Measures 2003 Ineligibility of a programme one-off EUR –20244,02 0,00 –20244,02 ES Promotional Measures 2004 Ineligibility of a programme one-off EUR –70997,92 0,00 –70997,92 ES Promotional Measures 2003 Deficiencies in accounting and technical controls flat-rate 10 % EUR –438782,10 0,00 –438782,10 ES Promotional Measures 2004 Deficiencies in accounting and technical controls flat-rate 10 % EUR –500158,94 0,00 –500158,94 ES Promotional Measures 2005 Deficiencies in accounting and technical controls flat-rate 10 % EUR –262486,51 0,00 –262486,51 ES Promotional Measures 2006 Deficiencies in accounting and technical controls flat-rate 10 % EUR –32893,85 0,00 –32893,85 Total ES EUR –82724549,93 –16798292,45 –65926257,48 FR OTMS 2001 Deficient and missing physical control of the operations flat-rate 10 % EUR –2150231,66 0,00 –2150231,66 FR OTMS 2002 Deficient and missing physical control of the operations flat-rate 10 % EUR –4742809,12 0,00 –4742809,12 FR OTMS 2003 Deficient and missing physical control of the operations flat-rate 10 % EUR –1792725,04 0,00 –1792725,04 FR Fruit and Veg — Peaches & Pears Processing 2003 Several payments have been made outside the regulatory deadline one-off EUR –22494,75 0,00 –22494,75 FR Public Storage of Alcohol 2001 Non-respect of payment deadlines one-off EUR –2226,40 0,00 –2226,40 FR Public Storage of Alcohol 2002 Non-respect of payment deadlines one-off EUR –14188,94 0,00 –14188,94 FR RD Guarantee new measures 2003 Weaknesses in secondary controls flat-rate 2 % EUR –1995633,00 0,00 –1995633,00 FR RD Guarantee new measures 2003 Weaknesses in the control system for subsidized-interestloans: insufficient control of payment proofs and of the reality of investments flat-rate 5 % EUR –2931588,00 0,00 –2931588,00 FR RD Guarantee new measures 2004 Weaknesses in secondary controls flat-rate 2 % EUR –2568245,00 0,00 –2568245,00 Total FR EUR –16220141,91 0,00 –16220141,91 GR Direct Payments 2004 LPIS was not fully operational to the standard required and the on-the-spot checks were still carried out too late to be fully effective flat-rate 5 % EUR –14991119,26 0,00 –14991119,26 GR Direct Payments 2004 LPIS was not fully operational to the standard required and the on-the-spot checks were still carried out too late to be fully effective flat-rate 10 % EUR –20792615,42 0,00 –20792615,42 GR Direct Payments 2005 LPIS was not fully operational to the standard required and the on-the-spot checks were still carried out too late to be fully effective flat-rate 5 % EUR –27702,71 0,00 –27702,71 GR Direct Payments 2005 LPIS was not fully operational to the standard required and the on-the-spot checks were still carried out too late to be fully effective flat-rate 10 % EUR –30657,51 0,00 –30657,51 GR Fruit and Veg — Tomato Processing 2003 Data indicated in the records have not been reconciled with the official accounts of the producer organisation; data was transmitted by a producer organisation without the information regarding the yield flat-rate 5 % EUR –1231,08 0,00 –1231,08 GR Fruit and Veg — Tomato Processing 2004 Data indicated in the records have not been reconciled with the official accounts of the producer organisation; data was transmitted by a producer organisation without the information regarding the yield flat-rate 5 % EUR –417259,82 0,00 –417259,82 GR POSEI 2003 Insufficient proof that the benefit of the aid has been passed on to the end-user, insufficient controls at arrival of products to the island, absence of IACS flat-rate 5 % EUR –952833,44 0,00 –952833,44 GR POSEI 2004 Insufficient proof that the benefit of the aid has been passed on to the end-user, insufficient controls at arrival of products to the island, absence of IACS flat-rate 5 % EUR –952833,58 0,00 –952833,58 GR RD Guarantee Accompanying Measures 2001 Total of monthly declarations exceeds the amount of the annual declaration one-off EUR –67732,00 0,00 –67732,00 Total GR EUR –38233984,82 0,00 –38233984,82 IE Financial audit — Late payments 2004 Failure to meet payment deadlines one-off EUR –1021717,84 –1232358,00 210640,16 IE Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –122295,66 –122295,66 0,00 IE Milk Powder for Casein 2002 Insufficient control of production process flat-rate 5 % EUR –676675,34 0,00 –676675,34 IE Milk Powder for Casein 2003 Insufficient control of production process flat-rate 5 % EUR –1444677,65 0,00 –1444677,65 IE Milk Powder for Casein 2004 Insufficient control of production process flat-rate 5 % EUR –378635,48 0,00 –378635,48 Total IE EUR –3644001,97 –1354653,66 –2289348,31 IT Financial audit — Late payments 2004 Failure to meet payment deadlines one-off EUR –48554937,39 –48865275,10 310337,71 IT Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –47896,46 –47896,46 0,00 IT RD Guarantee new measures 2003 Insufficient controls on the minimum standards, incomplete risk analysis for the selection of beneficiaries to be checked on-the-spot flat-rate 2 % EUR –292013,00 0,00 –292013,00 IT Wine — Restructuring 2003 Overestimation of the vine growing area one-off EUR –791044,51 0,00 –791044,51 IT Wine — Restructuring 2004 Overestimation of the vine growing area one-off EUR –1587599,85 0,00 –1587599,85 Total IT EUR –51273491,21 –48913171,56 –2360319,65 LU Financial audit — Late payments 2005 Failure to meet payment deadlines one-off EUR –89099,53 –89099,53 0,00 LU Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –132471,39 –42350,66 –90120,73 LU Financial audit — Overshooting 2005 Overshooting of financial ceilings one-off EUR –14637,53 –14637,53 0,00 Total LU EUR –236208,45 –146087,72 –90120,73 NL Clearance of accounts 2003 Clearance of 2003 accounts one-off EUR –159196,13 0,00 –159196,13 NL Export Refunds 1999 Insufficient number of substitution controls flat-rate 5 % EUR –1337421,43 0,00 –1337421,43 NL Export Refunds 2000 Insufficient number of substitution controls flat-rate 5 % EUR –15460584,91 0,00 –15460584,91 NL Export Refunds 2001 Insufficient number of substitution controls flat-rate 5 % EUR –9866616,71 0,00 –9866616,71 Total NL EUR –26823819,18 0,00 –26823819,18 MS Measure FY Reason Type % Currency Amount Deductions already made Financial impact FI Financial audit — Late payments 2005 Failure to meet payment deadlines one-off EUR –59957,06 –930760,36 870803,30 FI Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –4383,80 –4383,80 0,00 Total FI EUR –64340,86 –935144,16 870803,30 GB Financial audit — Late payments 2003 Failure to meet payment deadlines one-off EUR –18692,31 0,00 –18692,31 GB Financial audit — Late payments 2004 Failure to meet payment deadlines one-off EUR –53718181,34 –54438176,05 719994,71 GB Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –177600,74 –177600,74 0,00 GB Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off GBP –5043,95 –5043,95 0,00 GB Recoveries 2003 Incorrect classification of irregularities one-off GBP –23387,80 0,00 –23387,80 Total GB EUR –53914474,39 –54615776,79 701302,40 Total GB GBP –28431,75 –5043,95 –23387,80 PT Financial audit — Late payments 2005 Failure to meet payment deadlines one-off EUR –400433,43 –521198,20 120764,77 PT Financial audit — Overshooting 2003 Overshooting of financial ceilings one-off EUR –30352,11 0,00 –30352,11 PT Financial audit — Overshooting 2004 Overshooting of financial ceilings one-off EUR –139,80 –139,80 0,00 Total PT EUR –430925,34 –521338,00 90412,66

Versions

1. 2007-04-18

Cited by

• Judgment of the General Court of 28 October 2010 — Spain v Commission (Case T-227/07) Notice · Grade B

  EAGGFGuarantee SectionExpenditure excluded from Community financingProduction aid intended for tomato processorsSpot checks over sufficient periodsProportionality2010/C 346/76Language of the case: Spanish Applicant: Kingdom of Spain (represented by: M. Muñoz Pérez, lawyer) Defendant: European Commission (represented by: initially T. van Rijn and then F. Jimeno Fernández, Agents) Action for annulment, in part, of Commission Decision 2007/243/EC of 18 April 2007 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricu

• Judgment of the General Court of 31 March 2011 — Greece v Commission (Case T-214/07) Notice · Grade B

  EAGGFGuarantee SectionExpenditure excluded from Community financingArable cropsSpecific measures for certain agricultural products in favour of the smaller Aegean islands2011/C 145/36Language of the case: Greek Applicant: Hellenic Republic (represented by: V. Kontolaimos and I. Chalikias, Agents) Defendant: European Commission (represented by: H. Tserepa-Lacombe, Agent and N. Korogiannakis, lawyer) Application for annulment of Commission Decision 2007/243/EC of 18 April 2007 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the

• Action brought on 28 June 2007 — Spain v Commission Notice · Grade B

  declare void Commission Decision 2007/243/EC of 18 April 2007 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), in so far as it forms the subject-matter of the present action and,

• Action brought on 15 June 2007 — Hellenic Republic v Commission Notice · Grade B

  By this action against Commission Decision No E(2007) 1663 final of 18 April 2007, published as Commission Decision 2007/243/EC (OJ 2007 L 106, p. 55), on the basis of which the Commission excluded from Community financing certain expenditure incurred by the Member States — in this case the Hellenic Republic — under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), the Hellenic Republic puts forward the following grounds for annulment: In the first general ground for annulment, concerning the correction to the arable crops sectors, to the POSEI measure and