Keywords
Summary

Keywords

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1. Agriculture - Common agricultural policy - Financing by the EAGGF - System of monthly advances paid to the Member States - Establishment of irregularities in the application by national bodies of the mechanisms of a common organization of the market - Commission' s power to reduce the amounts paid by way of advance

(Regulation No 729/70 of the Council, as amended by Regulations No 3183/87 and No 2048/88)

2. Community law - Principles - Right to a fair hearing - Observance of that right when the Commission adopts temporary decisions connected with the management of the EAGGF - Limits

Summary

1. The obligation on the Commission, in the management of the EAGGF, to commit funds only for expenditure effected in accordance with Community rules exists not only at the time of the annual clearance of the national accounts but also when, during the year, it makes the monthly payments provided for by Regulation No 729/70, as amended by Regulations No 3183/87 and No 2048/88. It follows that the Commission has power, while awaiting the final decision on the clearance of the annual accounts, to reduce the payment of amounts due under monthly advances according to the state of the account of each Member State with the EAGGF when it establishes breaches of Community law by the competent national body either at the level of collection of payments earmarked for the EAGGF or at the level of expenditure for the financing of which the EAGGF is responsible.

2. The principle of the observance of the right to a fair hearing does not require, for the adoption of decisions concerning the monthly advances against expenditure financed by the EAGGF, that the complex procedure, ensuring that the audi alteram partem rule is observed, applied during the annual clearance of national accounts must be complied with; it is sufficient, in order to satisfy the requirements of that principle, that the decisions are not taken until after the Member State concerned has been able to present its point of view. Those decisions are merely interim and temporary in nature and remain subject to review until the adoption of the decision on the annual clearance of the accounts, which alone may determine conclusively the Member State' s financial position in relation to the EAGGF.