Keywords
Summary

Keywords

1. Agriculture EAGGF Clearance of accounts Definitive refusal to charge certain expenditure to the EAGGF Need for a prior procedure giving effect to the audi alteram partem rule

2. Acts of the institutions Statement of reasons Obligation Scope Decision relating to the clearance of accounts in respect of expenditure financed by the EAGGF

(EC Treaty, Art. 190 (now Art. 253 EC))

3. Agriculture Common agricultural policy EAGGF financing Principles Conformity of expenditure with the Community rules Obligation to supervise incumbent on the Member States

(Council Regulation No 729/70, Art. 8(1))

4. Agriculture EAGGF Clearance of accounts Principle of legal certainty Commission's interpretation of the applicable rules Interpretation which departs from the normal meaning of the words used Not binding

Summary

1. The final and conclusive decision on the clearance of accounts must be taken at the conclusion of a specific procedure giving effect to the audi alteram partem rule, during which the Member States concerned must be provided with all the guarantees necessary for them to present their point of view.

( see para. 47 )

2. A decision concerning the clearance of accounts in respect of expenditure financed by the EAGGF and refusing to charge part of the declared expenditure to the EAGGF does not require detailed reasons where the government concerned has been closely involved in the process by which the decision came about and is therefore aware of the reason for which the Commission considers that it must not charge the sums in dispute to the EAGGF.

( see para. 48 )

3. Article 8(1) of Regulation 729/70 on the financing of the common agricultural policy imposes on the Member States the general obligation to take the measures necessary to satisfy themselves that the transactions financed by the EAGGF are actually carried out and are executed correctly, even if the specific Community act does not expressly provide for the adoption of particular supervisory measures.

( see para. 62 )

4. The need to ensure legal certainty means that rules must enable those concerned to know precisely the extent of the obligations which they impose on them. The Commission thus cannot choose, at the time of the clearance of EAGGF accounts, an interpretation which departs from and consequently is not dictated by the normal meaning of the words used.

It follows that, where particular Community rules already establish a system that adequately ensures sound financial management and the cost-effective use of the expenditure incurred, specific additional requirements that are not set out in the particular rules and that impose supplementary obligations on the competent bodies and their contractors cannot be inferred from the general rules applicable in the area in question.

( see paras 72 to 73 )