Judgment of the General Court (Eighth Chamber) of 17 October 2012 — Spain v Commission

(Case T-491/09)

EAGGF — ‘Guarantee’ section — Expenditure excluded from financing — Premiums in the ovine and caprine meat sector — On-the-spot inspections

1.                     Agriculture — Common agricultural policy — EAGGF financing — Grant of aids and premiums — Obligation of Member States to organise an effective system of administrative controls and on-the-spot checks — Unreliable controls — Disallowance by the Fund (Council Regulation No 3508/92; Commission Regulation No 2419/2001) (see paras 19, 20, 72-75)

2.                     Agriculture — Common agricultural policy — EAGGF financing — Clearance of accounts — Disallowance of expenditure arising from irregularities in the application of the Community rules — Challenge by the Member State concerned — Burden of proof — Allocation between the Commission and the Member State (Council Regulations No 1258/1999 and No 1290/2005) (see paras 21-25, 89)

3.                     Acts of the institutions — Statement of reasons — Obligation — Scope — Decision relating to the clearance of accounts in respect of expenditure financed by the EAGGF — Obligation complied with simply by the fact of the close association of the addressee Member State with the decision-making process (Art. 296 TFEU) (see para. 26)

4.                     Acts of the institutions — Regulations — Regulation prescribing specific control measures — No Member State discretion — Non-implementation — Justification — Other control system more efficient — Not permissible (see paras 37, 51)

5.                     Agriculture — Common agricultural policy — EAGGF financing — Grant of aids and premiums — Obligation of Member States to organise an effective system of administrative controls and on-the-spot checks — Implied obligation — Scope (Commission Regulation No 2419/2001, Art. 25(2)(c); Council Directive 92/102, Art. 4(1)(b)) (see para. 80)

Re:

Operative part

The Court: