1. 

Agriculture — EAGGF — Clearance of accounts — Disallowance of expenditure arising from irregularities in the application of the Community rules (Council Regulation No 1258/1999) (see paras 71, 72, 116, 117)

2. 

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 — Scope (Art. 10 EC; Council Regulations Nos 3508/92, Art. 8, and 1258/1999, Art. 8(1); Commission Regulation No 3887/92, Arts 6(1) and 9(2)) (see paras 78-88)

3. 

Member States — Obligations — Duty of loyal cooperation with the Community institutions — Reciprocity (Art. 10 EC; Council Regulation No 1258/1999, Art. 8(1)) (see paras 128-131)

4. 

Agriculture — Common agricultural policy — EAGGF financing — Accounts clearance procedure — Conciliation procedure — Opinion of the conciliation body — No binding effect (see para. 141)

5. 

Acts of the institutions — Statement of reasons — Obligation — Scope — Decision relating to the clearance of accounts in respect of expenditure financed by the EAGGF (Art. 253 EC) (see paras 148, 149)

6. 

Agriculture — EAGGF — Clearance of accounts — Disallowance of expenditure arising from irregularities in the application of the Community rules — Financial correction — Assessment of the level of failure to act and the degree of risk for the Fund (Council Regulation No 1258/1999) (see paras 181-184)

7. 

Agriculture — EAGGF — Clearance of accounts — Disallowance of expenditure arising from irregularities in the application of Community rules — Extrapolation of findings of deficiencies in the control system of a Member State from one region to other regions (Council Regulation No 1258/1999) (see paras 199-201)

1.

Dismisses the action;

2.

Orders the Republic of Austria to pay the costs.