Appeal brought on 14 September 2007 by the Commission of the European Communities against the judgment delivered on 12 July 2007 in Case T-312/05 Commission of the European Communities v Efrosini Alexiadou

(Case C-436/07 P)

(2007/C 269/67)

Language of the case: Greek

Parties

Appellant: Commission of the European Communities (represented by: D. Triandafillou)

Other party to the proceedings: Evfrosini Alexiadou

Form of order sought

The appellant asks the Court to:

Pleas in law and main arguments

The Court of First Instance misinterpreted the general conditions of the contract (law of the parties) and in particular the provision concerning financial audit which refers to audit in a loose way as a mere possibility. Another provision which was relied upon of its own motion by the Court of First Instance does not even refer to audit, although it concerns defective performance of a contract. The requirement to carry out an audit thus proves to be independent of the contractual provision relied upon.

In any event, financial audit could not be required if there was nothing to audit, since nobody is bound to do the impossible and contractual provisions must be construed in such a way as to ensure practical effectiveness.

The principle of sound budgetary management requires that the Commission should not carry out audits without reason. The Court of First Instance excluded at the outset application of the principles of good faith and commercial usage which could have offered guidance in its interpretation.

Since it gave judgment by default, the Court of First Instance cannot blame the Commission for not explaining some of its arguments (in particular the preceding argument above), without infringing the principle of judicial protection.