Judgment of the General Court (Eighth Chamber) of 3 December 2015

AgricultureCommon agricultural policyEAGGF financingClearance of accountsDisallowance of expenses arising from irregularities in applying EU rulesChallenge by the Member State concernedBurden of proofShared by the Commission and the Member State (Council Regulations No 1258/1999 and No 1290/2005) (see paras 25-28, 92)

European Union lawInterpretationMethodsLiteral, systematic and teleological interpretation (see para. 37)

AgricultureCommon agricultural policyEAGGF financingSupport for rural developmentSpecial measures applicable to Member States which joined the EU in 2004Support for semi-subsistence forms subject to restructuringObligation of the beneficiaries to undertake to devote part of the aid granted to restructuring operations (Arts 39 TFEU, 42 TFEU and 43 TFEU; Council Regulation No 1257/1999, Art. 33b) (see paras 39, 41-43, 45, 48, 49, 81)

AgricultureCommon agricultural policyEAGGF financingSupport for rural developmentSpecial measures applicable to Member States which joined the EU in 2004Support for semi-subsistence forms subject to restructuringObligation of Member States to monitor compliance by beneficiaries with their agricultural development plans and carry out on-the-spot checksTwo types of control independent in character (Council Regulation No 1257/1999, Art. 33b; Commission Regulation No 817/2004, Art. 69) (see paras 56, 58, 59)

AgricultureCommon agricultural policyEAGGF financingSupport for rural developmentSpecial measures applicable to Member States which joined the EU in 2004Support for semi-subsistence forms subject to restructuringObligation of Member States to carry out administrative controls when aid applications madeImplied obligationScope (Council Regulation No 1257/1999; Commission Regulation No 817/2004, Arts 67 and 68) (see paras 67, 71, 72)

AgricultureCommon agricultural policyEAGGF financingClearance of accountsDisallowance of expenses arising from irregularities in applying EU rulesFinding of defects in the control system established by a Member StateFlat-rate correction issued by the Commission in accordance with internal guidelinesLawfulness (Council Regulations No 1258/1999, Art. 7(4), and No 1290/2005, Art. 31(2)) (see para. 91)

AgricultureCommon agricultural policyEAGGF financingProcedure for the clearance of accountsConciliation procedureOpinion of the conciliation bodyNo binding effect (Commission Regulation No 885/2006, Art. 12(b) and (c)) (see para. 106)

Acts of the institutionsStatement of reasonsObligationScopeDecision relating to the clearance of accounts in respect of expenditure financed by the EAGGF (Art. 296 TFEU; Council Regulations No 1258/1999, Art. 7(4), and No 1290/2005, Art. 31) (see paras 111, 112)

Re:

APPLICATION for annulment of Commission Implementing Decision 2013/214/EU of 2 May 2013 on excluding from European Union financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (OJ 2013 L 123, p. 11), in so far as the Commission applies in that decision corrections amounting to EUR 8 292 783,94 and EUR 71 610 559,39 to expenditure declared by the Republic of Poland in respect of support for semi-subsistence farms.

Operative part

The Court:

Dismisses the action;

Orders the Republic of Poland to pay the costs.