Judgment of the General Court (Sixth Chamber) of 24 March 2011 – Greece v Commission

(Case T-184/09)

EAGGF – Guarantee Section – Expenditure excluded from Community financing – Common organisation of the markets in the sugar sector – Article 8(1) of Regulation (EC) No 1663/95 and Article 11(1) and (2) of Regulation (EC) No 885/2006 – Assessment of the risk of financial loss to the EAGGF – Principle of proportionality

1.                     Agriculture – EAGGF – Clearance of accounts – Definitive refusal to accept responsibility for certain expenses – Need for a prior inter partes procedure – Communication by the Commission of the results of verifications – Duty to submit an assessment of the expenses to be disallowed before communication of the results of the verifications – None – Infringement of defence rights – None (Commission Regulations Nos 1663/95, modified by Regulation No 2245/1999, Art. 8, and 885/2006, Art. 11) (see paras 39-40, 44-48, 50, 52)

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 – Obligation respective of the mere fact of the close association of the addressee Member State with the process of establishing the decision (Art. 253 EC) (see points 56-57)

3.                     Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of the Community rules – Financial correction – Conditions – Existence of significant failure to act exposing the EAGGF to a real risk of loss (Council Regulations Nos 729/70 and 1258/1999, Art. 7(4)) (see paras 59-65)

4.                     Agriculture – Common agricultural policy – EAGGF financing – Disallowance of irregular expenses – Finding of failures in the control system implemented by a Member State – Blanket correction of 10% of expenses – Lawfulness – Conditions – Lack of sufficient control mechanisms – Breach of principle of proportionality – None (Commission Decision 2009/253) (see paras 70-73)

Re:

Operative part

The Court: