Keywords
Summary

Keywords

1. Agriculture EAGGF Clearance of accounts Disallowance of expenditure arising from irregularities in the application of the Community rules Disputed by the Member State concerned Burden of proof Shared by the Commission and the Member State

2. Actions for failure to fulfil obligations Purpose Finding of failure to fulfil obligations Discontinuance of proceedings by the Commission Procedure for clearing EAGGF accounts Purpose Apportionment of financial burdens between the Member States and the Community Discretion of the Commission None

(EC Treaty, Art. 169 (now Art. 226 EC))

3. Agriculture Common agricultural policy Support for producers of certain arable crops Common organisation of the markets Beef and veal Payments aimed at compensating for loss of income caused by the reform of the common agricultural policy Obligation to pay the sums at issue in full to the beneficiaries Levying of administrative fees Prohibition

(Council Regulations Nos 805/68, Art. 30a, and 1765/92, Art. 15(3))

Summary

1. Where the Commission disallows certain expenses from the EAGGF on the ground that Community rules on the common organisation of agricultural markets have not been complied with, it is obliged to give reasons for its decision finding an absence of, or defects in, inspection procedures operated by the Member State in question. However, the Commission is not required to demonstrate exhaustively that the inspections carried out by the national authorities are insufficient, or that the data submitted by them are irregular, but to adduce evidence of serious and reasonable doubt on its part regarding those inspections or data. The reason for this mitigation of the burden of proof on the Commission is that it is the Member State which is best placed to collect and verify the data required for the clearance of EAGGF accounts and, consequently, it is for that State to adduce the most detailed and comprehensive evidence that its inspections or figures are accurate and, if appropriate, that the Commission's statements are incorrect.

( see paras 7-9, 45 )

2. The procedure laid down by Article 169 of the Treaty (now Article 226 EC) and the procedure for clearing EAGGF accounts are both adversarial in character, ensuring compliance with the rights of the defence, and can give rise to proceedings before the Court of Justice. The two procedures are, however, independent of each other because they pursue different aims and are governed by different rules. In the procedure for failure to fulfil obligations, the Commission remains at liberty, if the Member State concerned has in the meantime put an end to the alleged failure, to discontinue the procedure, whereas that is not the case with the procedure for clearing EAGGF accounts. The procedure for clearing accounts serves to determine not only that the expenditure was actually and properly incurred but also that the financial burdens of the Common Agricultural Policy are correctly apportioned between the Member States and the Community, the Commission having in this respect no discretion to derogate from the rules regulating the allocation of those burdens.

( see para. 13 )

3. Article 15(3) of Regulation No 1765/92 establishing a support system for producers of certain arable crops, and Article 30a of Regulation No 805/68 on the common organisation of the market in beef and veal, which provide that the compensatory payments and premiums laid down in the regulations at issue are to be paid in full to the beneficiaries, prohibit national authorities from making any deduction from payments made or from charging administrative fees in relation to applications with the effect of reducing the amount of aid.

( see paras 24-27 )