Judgment of the General Court (Eighth Chamber) of 11 July 2018

EU budgetFinancial regulationAward of pre-financingObligation to lodge a bank guaranteeInapplicability in the event of low value grantsConcept of low value grants

(European Parliament and Council Regulation No 966/2012, Art. 134(1); Commission Regulation No 1268/2012, Arts 185 and 206(1))

(see paras 23-27)

EU lawPrinciplesRight to effective judicial protectionScope

(Charter of Fundamental Rights of the European Union, Art. 47)

(see para. 36)

European ParliamentFunding of European political partiesAward of pre-financingEvaluation of the risk to the budget and the EU’s financial interestsCriteriaAccount taken of the difficulty to assess the administrative and financial viability of a newly-created political foundationLawfulness

(European Parliament and Council Regulation No 2004/2003, Arts 3(2), 4(3), 8 and 10(2); Commission Regulation No 1268/2012, Art. 202(2); Decision of the Bureau of the European Parliament laying down the procedures for implementing Regulation No 2004/2003, Arts 6(3)(a), (c) and (f), 7(3), and Annex 1)

(see paras 48-50, 52, 54, 55)

European ParliamentFunding of European political partiesAward of grantsConditionsObligation to satisfy on the date of bringing the request for financingScope

(European Parliament and Council Regulation No 2004/2003, Arts 3(1)(b), and 5(3) and (5); Decision of the Bureau of the European Parliament laying down the procedures for implementing Regulation No 2004/2003, Arts 3(1) and 4(2), third para.)

(see paras 62-64, 66, 67)

Actions for annulmentReview of legalityCriteriaAccount taken only of elements of fact and law existing at the date on which the contested measure was adopted

(Art. 263 TFEU)

(see para. 69)

European ParliamentFunding of European political partiesAward of grantsConditionsRespect for the principles on which the Union is foundedAccount taken of the lack of information relating to a newly-created political foundation to assess whether the condition is satisfiedLawfulness

(European Parliament and Council Regulations No 2004/2003, Arts 3(2)(c), and 5(6), and No 966/2012, Art. 134(1); Commission Regulation No 1268/2012, Art. 206(1))

(see paras 78, 79, 82, 83, 87, 88)

EU lawPrinciplesProportionalityScope

(Art. 5(4) TEU)

(see para. 94)

Judicial proceedingsApplication for measures of inquiry and organisation of procedureConditions

(Rules of Procedure of the General Court, Art. 88(2))

(see para. 104)

European ParliamentFunding of European political partiesAward of grantsConditionsDifferent treatment of newly-created political foundations compared to older onesLawfulness

(European Parliament and Council Regulation No 2004/2003; Decision of the Bureau of the European Parliament laying down the procedures for implementing Regulation No 2004/2003)

(see paras 117, 121, 122)

European ParliamentFunding of European political partiesRefusal of a grant applicationInfringement of the rights of free speech and freedom of associationNone

(Charter of Fundamental Rights of the European Union, Arts 11 and 12; European Parliament and Council Regulation No 2004/2003)

(see para. 129)

Re:

Application on the basis of Article 263 TFEU seeking the annulment in part of Decision FINS-2017-31 of the European Parliament of 12 December 2016 concerning the award of a grant to the applicant, in so far as that decision restricts the pre-financing to 33% of the maximum amount of the grant and makes its payment subject to the provision of a bank guarantee.

Operative part

The Court:

Dismisses the action;

Orders Pegasus to pay the costs.