Keywords
Summary

Keywords

Social policy ° European Social Fund ° Financial assistance for vocational training schemes ° Decision to reduce assistance initially granted ° Rights of the defence of the undertakings concerned ° Scope

Summary

Observance of the right to be heard is, in all proceedings initiated against a person which are liable to culminate in a measure adversely affecting that person, a fundamental principle of Community law which must be guaranteed even in the absence of any rules governing the proceedings in question. That principle requires that any person against whom a decision adversely affecting his interests may be taken should be placed in a position in which he may effectively make known his views on the evidence against him upon which the contested decision is based.

That is so in the case of beneficiaries of assistance granted by the European Social Fund in respect of a vocational training scheme conducted in a Member State, when the Commission contemplates a reduction of the assistance initially granted because of the fact that it was not used in accordance with the conditions laid down by the decision of approval. The fact that the Member State concerned plays a central role in the system whereby the Fund is managed and that it is the addressee of any decision to reduce assistance does not rule out the establishment of a direct link between the Commission and the beneficiary who has been the subject of investigation by the Commission for the purpose of establishing any irregularities and who directly suffers the economic consequences of the reduction, since he incurs primary liability to repay the sums unduly paid.

Consequently, a decision to reduce assistance adopted when the beneficiary had not been heard by the Commission before the adoption of the decision infringes the beneficiary' s rights of the defence, irrespective of any practical difficulties for the Commission in consulting beneficiaries directly.