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Judgment of the General Court (First Chamber) of 30 November 2022

Judgment of the General Court (First Chamber) of 30 November 2022

Data

Court
General Court
Case date
30 november 2022

Verdict

Judgment of the General Court (First Chamber) of 30 November 2022 –
Italy v Commission

(Case T‑221/21)(1)

"(EAGF and EAFRD - Expenditure excluded from financing - Area-related aid scheme - Financial corrections - Definition of permanent grasslands - Article 4(1)(h) of Regulation (EU) No 1307/2013 - Article 5(3) of Delegated Regulation (EU) No 499/2014)"

1. AgricultureCommon agricultural policyDirect support schemesCommon rulesBasic payment system rightsPermanent grasslandsMeaningPossibility for the Member State to include grazing areas resulting from traditional local practiceConditions

(European Parliament and Council Regulation No 1307/2013, Art. 4(1)(h); Commission Regulation No 639/2014, Arts 7 and 8)

(see paragraphs 43, 62, 63, 72, 73, 75, 81-83)

2. AgricultureCommon agricultural policyDirect support schemesPayment to beneficiariesPayment deadlineComplianceLackPayments ineligible for Union financingUse by the Commission of the derogation procedureIndirect modification of the payment deadlineAbsence

(European Parliament and Council Regulation No 1306/2013, Arts 40 and 75; Commission Regulation No 907/2014, Art. 5)

(see paragraphs 107, 109-113)

Operative part

The Court:

1. Annuls Commission Implementing Decision (EU) 2021/261 of 17 February 2021 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) in so far as it imposes a flat rate correction of 2% on the Italian Republic relating to area aid granted in Italy in the amount of EUR 67 368 272.99 for the claim year 2017;

2. Dismisses the action as to the remainder;

3. Orders the Italian Republic and the European Commission to bear their own costs.