Action brought on 28 January 2022 — Hungary v Commission

(Case T-57/22)

(2022/C 119/80)

Language of the case: Hungarian

Parties

Applicant: Hungary (represented by: M. Z. Fehér and G. Koós, acting as Agents)

Defendant: European Commission

Form of order sought

The applicant claims that the Court should:

—

annul Commission Implementing Decision (EU) 2017/2014 of 8 November 2017 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD), (1) in so far as it relates to Hungary and excludes from European Union financing the financial assistance established for the financial year 2018-2019 in relation to the deficiencies in the functioning of the key controls ‘checks to establish the access to the aid claimed’ and ‘correct calculation of the aid including administrative reductions and penalties’;

—	order the Commission to pay the costs.

Pleas in law and main arguments

The Hungarian Government maintains that Hungary has not infringed the provisions relating to checks to establish the access to the aid claimed and that the value of the marketed production of each producer organisation was not incorrectly calculated. The practice followed by Hungary is in accordance with Articles 42 and 50(7) of Regulation 543/2011. (2) Similarly, there are no deficiencies in relation to the checks to establish the eligibility of operational programmes and the Hungarian authorities acted in accordance with Article 104(2) of Regulation 543/2011.

Hungary has implemented adequate corrective measures in relation to the findings concerning the second deficiency in the functioning of the key control (‘correct calculation of the aid including administrative reductions and penalties’) and, for that reason, the application of the financial correction is not justified in respect of the expenditure relating to the financial years 2018 and 2019.

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(1)  OJ 2021 L 413, p. 10.

(2)  Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007in respect of the fruit and vegetables and processed fruit and vegetables sectors (OJ 2011 L 157, p. 1).