Keywords
Summary

Keywords

Agriculture - EAGGF - Clearance of accounts - Preparation of decisions - Written communication to the Member States by the Commission of the results of its checks - Contents - Conditions - Non-observance - Effect

(Council Regulation No 729/70, Art. 5(2)(c); Commission Regulation No 1663/95, Art. 8(1), first subpara.)

Summary

$$Under the first subparagraph of Article 8(1) of Regulation No 1663/95 laying down detailed rules for the application of Regulation No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section, when the Commission considers that expenditure was not effected according to Community rules, it must communicate its findings to the Member State concerned. That communication must state the corrective measures to be taken to ensure future compliance, include an evaluation of any expenditure which the Commission may propose to exclude and make reference to Regulation No 1663/95. The Member State must be given two months to reply to it. In that regard, the Commission is bound, in its relations with the Member States, to respect the conditions it has imposed on itself by implementing regulations. A failure to observe those conditions may, depending on its significance, deprive of its efficacy the procedural guarantee accorded to Member States by Article 5(2)(c) of Regulation No 729/70, which limits the period for which expenditure can be refused financing by the EAGGF.

A letter from the Commission, which contains no reference to the regulation nor any evaluation of the expenses which might be refused financing and provides for a period of six weeks for a reply, does not meet the conditions set out in Article 8(1) of Regulation No 1663/95. By those three irregularities the Commission has infringed, in a significant way, the rules laid down in the said Article 8(1) and prejudiced the procedural guarantee accorded to Member States by the fifth subparagraph of Article 5(2)(c) of Regulation No 729/70. Such a letter cannot therefore constitute a communication for the purposes of the said Article 8 and therefore the reference point for the period of 24 months referred to in Regulation No 729/70.

( see paras 23-24, 26-27 )