Action brought on 30 June 2005 by the Hellenic Republic against the Commission of the European Communities

(Case T-243/05)

(2005/C 205/64)

Language of the case: Greek

An action against the Commission of the European Communities was brought before the Court of First Instance of the European Communities on 30 June 2005 by the Hellenic Republic.

The applicant claims that the Court should:

Pleas and main arguments

By its contested decision the Commission, effecting clearance of accounts under Regulation (EEC) No 729/70, excluded from Community financing various expenditure incurred by the Hellenic Republic in regard to arable crops, olive oil and financial control, with the result that those amounts were not recognised as lawful Community financing and were charged to the Hellenic Republic.

In support of its application, the applicant pleads that the Commission did not have competence to impose the corrections at issue inasmuch as they relate to expenditure effected by the Member State at a time prior to the 24 months before the Commission's initial notification in connection with that expenditure.

Moreover, as regards the 5 % financial correction effected in the sector of arable crops imposed by the contested decision on the ground that the competent Greek services, notwithstanding progress made by them continued to make payments even in circumstances where claims had demonstrably not been checked correctly, the applicant calls in question the factual circumstances relied on by the Commission and pleads an error as to the facts and erroneous reasoning in the contested decision. It further invokes infringement of the Commission's guidelines at VI/75330/97, breach of the principle of proportionality, misappraisal of the facts and incorrect justification in connection with the amount of the 5 % financial correction.

In regard to the correction in respect of financial control, the applicant pleads that the payment arrears in regard to which the corrections at issue were imposed are attributable either to the need to effectuate supplementary checks owing to the major discrepancy found in contrast to areas declared or to exceptional circumstances, namely the submission and examination of objections concerning erroneous entries detected in the database after payments had been made or, in one specific case, to a suspension of works owing to force majeure.