Judgment of the General Court (Second Chamber) of 10 October 2012 — Greece v Commission

(Case T-158/09)

EAGGF — ‘Guarantee’ section — Expenditure excluded from financing — Clearance of accounts of the paying agencies of Member States concerning expenditure financed by the EAGGF — Negligence of the Member State in the recovery of sums wrongly paid — Liability of the Member State for the financial consequences of failure to recover

1.                     Agriculture — Common agricultural policy — EAGGF financing — Principles — Member States’ duty of diligence in recovering amounts wrongly paid (Art. 10 EC; Council Regulations No 729/70, Art. 8(1) and (2), and No 1290/2005) (see paras 46-49)

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 (Art. 296 TFEU) (see paras 56-60)

3.                     Agriculture — Common agricultural policy — EAGGF financing — Obligations of the Member States — Adoption of measures capable of enduring the regularity of expenses — Scope (Council Regulations No 729/70, Arts 2, 3 and 8(1), No 1258/1999, Arts 2, 3 and 8(1), and No 1290/2005, Arts 3 and 9(1)) (see paras 63-65)

4.                     Agriculture — EAGGF — Clearance of accounts — Disallowance of expenses flowing from irregularities in the application of EU legislation — Challenge by the Member State concerned — Burden of proof — Allocation between the Commission and the Member State (Council Regulations No 729/70, Art. 5(2)(c), and No 1258/1999, Art. 7(4)) (see para. 66)

5.                     Actions for annulment — Jurisdiction of the EU judicature — Commission decision withdrawing EU financial assistance — No power to substitute another decision for the contested decision or to vary the latter (Art. 261 TFEU) (see para. 176)

6.                     EU own resources — Regulation concerning protection of the financial interests of the EU — Scope — Inapplicability to infringements of provisions of EU law arising from an act or omission of a Member State (Council Regulation No 2988/95) (see para. 183)

7.                     European Union law — Principles — Protection of legitimate expectations — Conditions — Specific assurances given by the authorities (see paras 184-186)

8.                     Agriculture — EAGGF — Clearance of accounts — Disallowance of expenses flowing from irregularities in the application of EU legislation — No breach of the principle of legal certainty (Council Regulations No 729/70, Arts 5(2)(c) and 8(2), No 1258/1999, Arts 7(4), fifth para., and 8(2), and No 1290/2005, Arts 31(4) and (5), and 32) (see paras 186-192)

9.                     Agriculture — Common agricultural policy — EAGGF financing — Accounts clearance procedure — Obligations of the Commission — Duty to act within a reasonable time — Criteria for assessment — Infringement — Consequences (Council Regulations No 1258/1999, Art. 7(4) and No 1290/2005, Art. 31(3)) (see paras 193-202)

Re:

Operative part

The Court: