1. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Disallowance of expenses arising from irregularities in applying EU rules—Challenge by the Member State concerned—Burden of proof—Shared by the Commission and the Member State

(Council Regulation No 1290/2005, Art. 31)

(see paras 43-45, 89, 143-145, 182, 208, 209, 230)

2. 

Agriculture—Common agricultural policy—Direct support schemes—Common rules—Single payment scheme—Permanent pastures—Meaning—Surfaces with a marginal presence of ligneous plants—Included

(Council Regulations No 1782/2003 and No 73/2009; Commission Regulations No 796/2004, Art. 2, first para., point 2, and No 1120/2009, Art. 2(c))

(see paras 54-56, 68, 74)

3. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Financing of expenditure resulting from a misapplication of EU law—Condition—Error attributable to an EU institution

(Council Regulations No 1782/2003 and No 73/2009; Commission Regulations No 796/2004, Art. 2, first para., point 2, and No 1120/2009, Art. 2(c))

(see para. 75)

4. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Procedure—Subject-matter—Financial correction not constituting a penalty

(see para. 87)

5. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Disallowance of expenses arising from irregularities in applying EU rules—Finding of defects in the control system established by a Member State—Flat-rate correction issued by the Commission in accordance with internal guidelines—Lawfulness

(Council Regulation No 1290/2005, Art. 31(1) and (2))

(see paras 88, 90)

6. 

Agriculture—EAGF and EAFRD financing—Grant of aid and premiums—Obligation on the Member States to organise an effective system of administrative and on-site inspections—Scope—Unreliable controls—Disallowance

(Council Regulation No 1782/2003, Arts 43 and 44; Commission Regulations No 796/2004, Art. 2, first para., point 2, and No 1120/2009, Art. 2(c))

(see paras 99, 102, 104, 150, 223)

7. 

Agriculture—EAGF and EAFRD financing—Accounts clearance procedure—Conciliation procedure—Opinion of the conciliation body—No binding effect

(Commission Regulation No 885/2006, Art. 12(b) and (c))

(see para. 117)

8. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Disallowance of expenses arising from irregularities in applying EU rules—Financial correction—Assessment of the level of failure to act and the degree of risk for the Fund—Elements to be taken into consideration—Gravity of the infringement—Recurrent failure—Lawfulness

(Council Regulation No 1290/2005, Art. 31(2))

(see paras 120, 122)

9. 

Actions for annulment—Pleas in law—Lack of or inadequate statement of reasons—Separate ground from the one concerning substantive legality

(Arts 263 TFEU and 296 TFEU)

(see para. 132)

10. 

Acts of the institutions—Statement of reasons—Obligation—Scope—Account-clearing decision for expenses financed by EAGGF and EAFRD—Financial corrections—Addressee State having been closely associated with the process of drawing up the decision—Infringement of the duty to state reasons—None

(Art. 296 TFEU; Commission Regulation No 885/2006, Art. 11)

(see paras 133, 201, 202, 275)

11. 

Agriculture—EAGF and EAFRD financing—Grant of aid and premiums—Obligation on the Member States to organise an effective system of administrative and on-site inspections—Scope—Selection of control samples for the purpose of on-site inspections—Requirement for a prior risk analysis—Finding of significant disparities between the random samples and the samples based on the prior risk analysis—Indicator of the inefficiency of the inspection system

(Commission Regulation No 1120/2009, Art. 31(1) and (2))

(see paras 168, 169, 178)

12. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Definitive refusal to accept responsibility for certain expenses—Need for prior inter partes procedure—Communication by the Commission of the results of verifications—Obligation to identify in a precise manner the irregularities which the Member State concerned is alleged to have committed—Scope

(Council Regulation No 1290/2005, Art. 31; Commission Regulation No 885/2006, Art. 11(1))

(see paras 185, 187, 188)

13. 

Agriculture—EAGF and EAFRD financing—Clearance of accounts—Period capable of being the subject-matter of a financial correction—Period subsequent to the date of the written communication of the results of the checks—Lawfulness—Conditions

(Council Regulation No 1290/2005, Art. 31(4)(a))

(see paras 190, 191)

14. 

Agriculture—EAGF and EAFRD financing—Grant of aid and premiums—Obligation on the Member States to organise an effective system of administrative and on-site inspections—Scope—Adoption of a circular to address shortcomings in the key inspections previously found by the Commission—Fact not able, in itself, to establish compliance of the inspections carried out after adoption of that circular

(Commission Regulation No 1120/2009, Art. 31)

(see paras 222, 247)

15. 

Agriculture—Common agricultural policy—Direct support schemes—Common rules—Statutory management requirements—Good agricultural and environmental conditions—Obligation to ensure compliance with those requirements—Scope

(Council Regulations No 1698/2005, Art. 39(2) and (3), and No 73/2009, Arts 4 and 5 and Annex II; Council Directives 91/414 and 91/676)

(see paras 260-263)

1. 

Dismisses the action;

2. 

Orders the Hellenic Republic to bear its own costs and to pay those incurred by the European Commission;

3. 

Orders the Kingdom of Spain to bear its own costs.