1. 

Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Assessment of losses suffered by the funds — Irregular expenses not capable of being determined with sufficient precision — Assessment based on flat-rate corrections — Lawfulness

(European Parliament and Council Regulation No 1306/2013, Art. 52(2))

(see para. 23)

2. 

Agriculture — Financing by the EAGF — 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 26-29, 63, 109, 112)

3. 

Acts of the institutions — Statement of reasons — Obligation — Scope — Decision on clearance of accounts in relation to expenses financed by the EAGF — 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)

(see para. 30)

4. 

Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Challenge by the Member State concerned — Reliance on the adoption of corrective measures as a result of the Commission’s audit — Index of failures in the national system during the audit period

(European Parliament and Council Regulation No 1306/2013, Art. 52)

(see para. 50)

5. 

Agriculture — Financing by the EAGF — Grant of aid and premiums — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Scope — On-site inspections of animals — Subject-matter — Possibility of carrying out checks a posteriori on the basis of documents relating to the detention period of animals — None — Requirement for a physical inspection

(Commission Regulation No 1122/2009, Art. 42)

(see para. 54)

6. 

Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate correction issued by the Commission in accordance with internal guidelines — Finding of the existence of several weaknesses in the system of checks established by a Member State — Flat-rate corrections not cumulative

(European Parliament and Council Regulation No 1306/2013, Art. 52)

(see paras 72, 118)

7. 

Agriculture — Financing by the EAGF — Grant of aid and premiums — Obligation on the Member States to organise an effective system of administrative and on-site inspections — Scope — On-site inspections of animals — Need to verify the correspondence between the number of animals present on site and the number recorded in the register kept by the animal owner — Possibility of not using the register, but of relying on information contained in a computerised database and in breeding records — None

(Commission Regulation No 1122/2009, Art. 42)

(see paras 91, 92)

8. 

Actions for annulment — Subject-matter — Decision based on several pillars of reasoning, each sufficient to justify the operative part — Annulment of such a decision — Conditions

(Art. 263 TFEU)

(see para. 101)

9. 

EU law — Principles — Proportionality — Scope

(Art. 5(4) TEU)

(see paras 105, 106)

10. 

Agriculture — Financing by the EAGF — Clearance of accounts — Procedure — Subject-matter — Financial correction not constituting a penalty

(see para. 108)

11. 

Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Flat-rate correction issued by the Commission in accordance with internal guidelines — Controls not giving the expected level of regularity of claims — Eligibility for the application of a flat rate of 5% for deficiencies found in a single key inspection

(European Parliament and Council Regulation No 1306/2013, Art. 52)

(see para. 117)

12. 

Agriculture — Financing by the EAGF — Clearance of accounts — Disallowance of expenses arising from irregularities in applying EU rules — Financial correction — Cumulation of analytical and flat-rate corrections — Lawfulness — Conditions

(European Parliament and Council Regulation No 1306/2013, Art. 52(2))

(see paras 168, 169, 173, 174)

1. 

Dismisses the action;

2. 

Orders the Republic of Lithuania to pay the costs.