Commission Decision

of 8 April 2008

excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) and under the European Agricultural Guarantee Fund (EAGF)

(notified under document number C(2008) 1283)

(Only the Czech, Danish, Dutch, English, French, German, Italian, Portuguese and Spanish texts are authentic)

(2008/321/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy [1], and in particular Article 7(4) thereof,

Having regard to Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy [2], and in particular Article 31 thereof,

Having consulted the Committee on the Agricultural Funds,

Whereas:

(1) Under Article 7(4) of Regulation (EC) No 1258/1999, and Article 31 of Regulation (EC) No 1290/2005, 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 Regulation (EC) No 1258/1999 and Regulation (EC) No 1290/2005, only agricultural expenditure which has been incurred in a way that has not infringed Community rules 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 this requirement and cannot, therefore, be financed under the EAGGF Guarantee Section and the European Agricultural Guarantee Fund, hereinafter referred to as EAGF.

(5) The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section and the EAGF 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 15 December 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 or under the EAGF shall be excluded from Community financing because it does not comply with Community rules.

Article 2

This Decision is addressed to the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, Ireland, the Kingdom of Spain, the French Republic, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria and the Portuguese Republic.

Done at Brussels, 8 April 2008.

For the Commission

Mariann Fischer Boel

Member of the Commission

[1] OJ L 160, 26.6.1999, p. 103.

[2] OJ L 209, 11.8.2005, p. 1. Regulation as last amended by Regulation (EC) No 1437/2007 (OJ L 322, 7.12.2007, p. 1).

--------------------------------------------------

ANNEX

Budget item 6701

MS | Measure | FY | Reason for correction | Type | % | Currency | Amount | Deductions already made | Financial impact |

AT | Financial audit — Overshooting | 2004 | Overshooting of financial ceilings | one-off | | EUR | –61104,20 | 0,00 | –61104,20 |

TOTAL AT | –61104,20 | 0,00 | –61104,20 |

CZ | Financial audit — Overshooting | 2006 | Overshooting of financial ceilings | one-off | | CZK | –358046,95 | 0,00 | –358046,95 |

TOTAL CZ | –358046,95 | 0,00 | –358046,95 |

DE | RD guarantee accompanying measuress | 2003 | Overshooting of ceilings | one-off | | EUR | –4256495,00 | 0,00 | –4256495,00 |

DE | Financial audit — Late payments | 2006 | Late payments | one-off | | EUR | –80851,39 | –80851,39 | 0,00 |

TOTAL DE | –4337346,39 | –80851,39 | –4256495,00 |

DK | Milk powder for casein | 2002 | Non-respect of all requirements concerning production process | one-off | | DKK | –8915,00 | 0,00 | –8915,00 |

DK | Milk powder for casein | 2003 | Non-respect of all requirements concerning production process | one-off | | DKK | –157528,05 | 0,00 | –157528,05 |

DK | Milk powder for casein | 2004 | Non-respect of all requirements concerning production process | one-off | | DKK | –98154,15 | 0,00 | –98154,15 |

TOTAL DK | –264597,20 | 0,00 | –264597,20 |

ES | Certification | 2004 | Non-recovered debts | one-off | | EUR | –1882525,15 | 0,00 | –1882525,15 |

ES | Fruit and veg — Bananas | 2004 | Weaknesses (frequence and sampling) in second level quality controls | flat rate | 2,00 | EUR | –948158,64 | 0,00 | –948158,64 |

ES | Fruit and veg — Bananas | 2005 | Weaknesses (frequence and sampling) in second level quality controls | flat rate | 2,00 | EUR | –1394194,02 | 0,00 | –1394194,02 |

ES | Fruit and veg — Bananas | 2006 | Weaknesses (frequence and sampling) in second level quality controls | flat rate | 2,00 | EUR | –406510,05 | 0,00 | –406510,05 |

ES | Wine Distillation | 2003 | Weaknesses in the control of the prohibition of any vine plantations | flat rate | 10,00 | EUR | –25824435,94 | 0,00 | –25824435,94 |

ES | Wine Distillation | 2004 | Weaknesses in the control of the prohibition of any vine plantations | flat rate | 10,00 | EUR | –29124759,86 | 0,00 | –29124759,86 |

TOTAL ES | –59580583,66 | 0,00 | –59580583,66 |

FR | Fruit and veg — Bananas | 2004 | Non-respect of certain recognition criteria by producer organisations | flat rate | 5,00 | EUR | –780,11 | | –780,11 |

FR | Fruit and veg — Bananas | 2005 | Non-respect of certain recognition criteria by producer organisations | flat rate | 5,00 | EUR | –4958177,57 | 0,00 | –4958177,57 |

FR | Fruit and veg — Bananas | 2006 | Non-respect of certain recognition criteria by producer organisations | flat rate | 5,00 | EUR | –2263498,77 | 0,00 | –2263498,77 |

FR | Fruit and veg — Bananas | 2007 | Non-respect of certain recognition criteria by producer organisations | flat rate | 5,00 | EUR | –3775871,38 | 0,00 | –3775871,38 |

FR | Public storage of sugar | 2005 | Ineligible quantity declared | one-off | | EUR | –535626,90 | 0,00 | –535626,90 |

FR | Public storage of sugar | 2006 | Ineligible quantity declared | one-off | | EUR | 475793,12 | 0,00 | 475793,12 |

FR | Tobacco premiums | 2004 | Non-aplication of sanctions | one-off | | EUR | –9947,35 | 0,00 | –9947,35 |

FR | Tobacco premiums | 2005 | Non-aplication of sanctions | one-off | | EUR | –38983,31 | 0,00 | –38983,31 |

FR | Tobacco premiums | 2006 | Non-aplication of sanctions | one-off | | EUR | –85816,53 | 0,00 | –85816,53 |

TOTAL FR | –11192908,80 | 0,00 | –11192908,80 |

IE | Milk powder for casein | 2003 | Weaknesses in sampling procedure of production batches | flat rate | 2,00 | EUR | –209164,22 | 0,00 | –209164,22 |

IE | Milk powder for casein | 2004 | Weaknesses in sampling procedure of production batches | flat rate | 2,00 | EUR | –423850,43 | 0,00 | –423850,43 |

IE | Milk powder for casein | 2005 | Weaknesses in sampling procedure of production batches | flat rate | 2,00 | EUR | –131507,65 | 0,00 | –131507,65 |

TOTAL IE | –764522,30 | 0,00 | –764522,30 |

IT | Export refunds | 2003 | Lack of information about physical checks | flat rate | 5,00 | EUR | –30905,27 | 0,00 | –30905,27 |

IT | Financial audit — Late payments | 2004 | Late payments | one-off | | EUR | –308289,90 | 0,00 | –308289,90 |

IT | RD guarantee accompanying measuress | 2003 | Administrative checks not carried out exhaustively in breach of Article 68 of Regulation (EC) No 817/2004; on-the-spot checks not satisfactory | flat rate | 5,00 | EUR | –428284,00 | 0,00 | –428284,00 |

IT | RD guarantee accompanying measuress | 2003 | On-the-spot checks carried out too late in breach of Article 61 of Regulation (EC) No 445/2002 | flat rate | 5,00 | EUR | –2985884,00 | 0,00 | –2985884,00 |

IT | RD guarantee accompanying measuress | 2004 | Administrative checks not carried out exhaustively in breach of Article 68 of Regulation (EC) No 817/2004; on-the-spot checks not satisfactory | flat rate | 5,00 | EUR | –754180,00 | 0,00 | –754180,00 |

IT | RD guarantee accompanying measuress | 2004 | On-the-spot checks carried out too late in breach of Article 61 of Regulation (EC) No 445/2002 | flat rate | 5,00 | EUR | –32396,00 | 0,00 | –32396,00 |

IT | RD guarantee accompanying measuress | 2005 | On-the-spot checks carried out too late in breach of Article 61 of Regulation (EC) No 445/2002 | flat rate | 5,00 | EUR | –54645,00 | 0,00 | –54645,00 |

IT | RD guarantee accompanying measuress | 2006 | On-the-spot checks carried out too late in breach of Article 61 of Regulation (EC) No 445/2002 | flat rate | 5,00 | EUR | –58709,00 | 0,00 | –58709,00 |

TOTAL IT | –4653293,17 | 0,00 | –4653293,17 |

LU | Financial audit — Late payments | 2006 | Late payments | one-off | | EUR | 0,00 | –14516,49 | 14516,49 |

LU | Financial audit — Overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –1107241,81 | –1107241,81 | 0,00 |

LU | RD guarantee accompanying measuress | 2004 | Weaknesses in the main and secondary controls | flat rate | 5,00 | EUR | –484845,00 | 0,00 | –484845,00 |

LU | RD guarantee accompanying measuress | 2005 | Weaknesses in the main and secondary controls | flat rate | 5,00 | EUR | –479643,00 | 0,00 | –479643,00 |

TOTAL LU | –2071729,81 | –1121758,30 | –949971,51 |

NL | Financial audit — Overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –7905,99 | 0,00 | –7905,99 |

TOTAL NL | –7905,99 | 0,00 | –7905,99 |

PT | Financial audit — Overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –271398,38 | 0,00 | –271398,38 |

TOTAL PT | –271398,38 | 0,00 | –271398,38 |

--------------------------------------------------