Keywords
Summary

Keywords

1 Social policy - European Social Fund - Financial assistance for vocational training - Decision reducing assistance initially granted - Reduction on account of failure to comply with the conditions laid down in the decision of approval - Whether in breach of the principle of the protection of legitimate expectations - No such breach

(Council Regulation No 2950/83, Art. 6(1))

2 Acts of the institutions - Statement of reasons - Obligation - Scope - Commission decision reducing, on a proposal from a Member State, assistance from the European Social Fund for vocational training

(EC Treaty, Art. 190 (now Art. 253 EC))

Summary

1 It is clear from Article 6(1) of Regulation No 2950/83 that the grant of funding from the European Social Fund (ESF) depends on the recipient's compliance with the conditions laid down by the Commission in the decision of approval. Where those conditions are not satisfied, the recipient cannot, relying on the principle of protection of legitimate expectations, expect payment in full of the amount granted in that decision.

Accordingly, an undertaking which has manifestly failed to comply with the rules in force cannot rely on that principle in order to contest the lawfulness of a Commission decision. The Commission has the power to reduce ESF financial assistance on the ground that the conditions laid down in the decision of approval have been infringed.

2 The purpose of the obligation, laid down in Article 190 of the Treaty (now Article 253 EC), to state the reasons on which an individual decision is based is to enable the Community judicature to review the legality of the decision and to provide the person concerned with sufficient information to make it possible to ascertain whether the decision is well founded or whether it is vitiated by a defect which may permit its legality to be contested. The extent of that obligation depends on the nature of the measure in question and on the context in which it was adopted.

A decision reducing the amount of ESF assistance initially granted must, in view of the serious consequences for the recipient, either clearly incorporate the grounds justifying that reduction or - in view of the fact that the grant of ESF financial assistance is based on close collaboration between the Commission and the Member States - refer with sufficient clarity to a measure of the competent national authorities in the Member State concerned, in which the reasons for such a reduction are clearly set out.