Judgment of the General Court (Eighth Chamber) of 12 November 2010 – Italy v Commission
(Case T-95/08)
EAGGF – Guarantee Section – Expenditure excluded from Community financing – Support scheme for production in the sector of products processed from fruit and vegetables – Exceptional support measures in the beef and veal sector – Tobacco premiums scheme
1.Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of the Community rules – Challenge by the Member State concerned – Burden of proof – Allocation between the Commission and the Member State (Council Regulation No 729/70) (see paras 17, 39)
2.Agriculture – Common agricultural policy – EAGGF financing – Principles – Disallowance of irregular expenses – Finding of failures in the control system implemented by a Member State (Council Regulation No 729/70) (see paras 43-47)
3.Agriculture – Common agricultural policy – EAGGF financing – Accounts clearance procedure – Purpose – Financial correction not constituting a penalty (see para. 48)
4.Agriculture – Common agricultural policy – EAGGF financing – Principles – Disallowance of expenses in connection with practices incompatible with Community law – Margin of discretion of the Commission – None (Council Regulation No 729/70, Arts 2 and 3) (see para. 49)
5.Agriculture – EAGGF – Grant of aids and premiums – Obligation on Member States to organise an efficient system of administrative controls and spot checks (see para. 77)
6.Procedure – Application initiating proceedings – Formal requirements – Identification of the subject-matter of the dispute – Brief summary of the pleas in law on which the application is based (Rules of Procedure of the General Court, Art. 44(1)(c)) (see para. 114)
7.Agriculture – Common organisation of the markets – Raw tobacco – System of individual production quotas restablished by Regulation No 2075/92 (Council Regulation No 2075/92, as amended by Regulation No 1636/98, Art. 9; Commission Regulation No 2848/98, Arts 9 and 22) (see paras 116-119)
Re:
| APPLICATION for partial annulment of Commission Decision 2008/68/EC of 20 December 2007 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (OJ 2008 L 18, p. 12), in so far as it excludes certain expenditure incurred by the Italian Republic in the sectors of products processed from fruit and vegetables, beef and veal and raw tobacco. |
Operative part
The Court:
1. |
| Dismisses the action; |
2. |
| Orders the Italian Republic to pay the costs. |