Judgment of the General Court (Fifth Chamber) of 19 October 2017

Judicial proceedingsApplication initiating proceedingsFormal requirementsBrief summary of the pleas in law on which the application is based

(Rules of Procedure of the General Court, Art. 76(1)(d))

(see para. 28)

AgricultureEAGF and EAFRD 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 485/2008 and No 1290/2005)

(see paras 45, 46, 114)

AgricultureEAGF and EAFRD financingClearance of accountsDisallowance of expenses arising from irregularities in applying EU rulesFlat-rate correction issued by the Commission in accordance with internal guidelinesApplication lacking information for a precise evaluation of the financial harm caused to the UnionPresentation by the Member State concerned of a calculation based on a comparison with the results of the inspections made outside of the period at issueInadequate natureApplication of flat-rate correction

(European Parliament and Council Regulation No 1306/2013, Art. 52(1) and (2); Council Regulations No 1782/2003, Annex III, and No 73/2009, Annex II; Council Directive 92/43, Art. 15(a))

(see paras 55, 60, 67, 68, 70, 73)

AgricultureEAGF and EAFRD financingClearance of accountsDisallowance of expenses arising from irregularities in applying EU rulesAssessment of losses suffered by the fundsIrregular expenses not capable of being determined with sufficient precisionAssessment based on flat-rate correctionsLawfulnessBreach of principle of proportionalityNone

(European Parliament and Council Regulation No 1306/2013, Art. 52; Council Regulation No 1290/2005, Art. 31)

(see paras 75, 76)

EU lawPrinciplesRights of defenceScope

(see para. 77)

Acts of the institutionsStatement of reasonsObligationScopeAccount-clearing decision for expenses financed by EAGGF and EAFRDFinancial correctionsAddressee State having been closely associated with the process of drawing up the decisionInfringement of the duty to state reasonsNone

(Art. 296 TFEU)

(see para. 80)

AgricultureEAGF and EAFRD financingGrant of aid and premiumsObligation on the Member States to organise an effective system of administrative and on-site inspectionsTime-limitCarrying out of inspections beyond the scrutiny periodLawfulnessConditionNot achieved during the prescribed period due to a material impossibility not attributable to the Member State concerned

(Council Regulations No 4045/89, Art. 2(4), and No 485/2008, Art. 2(7))

(see paras 105, 106)

Actions for annulmentContested actAssessment of legality in the light of the information available at the time of adoption of the measure

(Art. 263 TFEU)

(see para. 107)

AgricultureEAGF and EAFRD financingClearance of accountsProcedureSubject-matterFinancial correction not constituting a penalty

(see para. 115)

Re:

Application based on Article 263 TFEU seeking 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) as regards certain corrections made in respect of Catalonia, on the one hand, and the Canaries, on the other hand.

Operative part

The Court:

Dismisses the application;

Orders the Kingdom of Spain to bear its own costs and to pay the costs of the European Commission.