20071003

Commission Decision

of 3 October 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)

(notified under document number C(2007) 4477)

(only the Spanish, Danish, German, Greek, English, French, Italian, Dutch, Portuguese and Swedish texts are authentic)

(2007/647/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy [1], and in particular Article 5(2)(c) thereof,

Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy [2], and in particular Article 7(4) thereof,

Having consulted the Committee on the Agricultural Funds,

Whereas:

(1) Under Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 1258/1999, and Article 8(1) and (2) of Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Regulation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section [3], the Commission is to carry out the necessary verifications, communicate to the Member States the results of these verifications, take note of the comments of the Member States, initiate a bilateral discussion so that an agreement may be reached with the Member States in question, and formally communicate its conclusions to them.

(2) The Member States have had an opportunity to request the launch of a conciliation procedure. That opportunity has been used in some cases and the report issued on the outcome has been examined by the Commission.

(3) Under Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, granted and undertaken respectively according to Community rules within the framework of the common organisation of the agricultural markets, may be financed.

(4) In the light of the verifications carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section.

(5) The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section should be indicated. Those amounts do not relate to expenditure incurred more than 24 months before the Commission's written notification of the results of the verifications to the Member States.

(6) As regards the cases covered by this Decision, the assessment of the amounts to be excluded on grounds of non-compliance with Community rules was notified by the Commission to the Member States in a summary report on the subject.

(7) This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments of the Court of Justice in cases pending on 30 April 2007 and relating to its content,

HAS ADOPTED THIS DECISION:

Article 1

The expenditure itemised in the Annex hereto that has been incurred by the Member States' accredited paying agencies and declared under the EAGGF Guarantee Section shall be excluded from Community financing because it does not comply with Community rules.

Article 2

This Decision is addressed to the Kingdom of Belgium, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Kingdom of the Netherlands, the Portuguese Republic, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 3 October 2007.

For the Commission

Mariann Fischer Boel

Member of the Commission

[1] OJ L 94, 28.4.1970, p. 13. Regulation as last amended by Regulation (EC) No 1287/95 (OJ L 125, 8.6.1995, p. 1).

[2] OJ L 160, 26.6.1999, p. 103.

[3] OJ L 158, 8.7.1995, p. 6. Regulation as last amended by Regulation (EC) No 465/2005 (OJ L 77, 23.3.2005, p. 6).

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20071003

ANNEX

Total corrections — Budget item 6701

MS | Measure | FY | Reason | Type | % | Currency | Amount | Deductions already made | Financial impact |

BE | Financial audit — Late payments | 2005 | Failure to meet payment deadlines | one-off | | EUR | –45406,30 | –45406,30 | 0,00 |

Total BE | | | | | EUR | –45406,30 | –45406,30 | 0,00 |

DE | Exceptional market measures | 2001 | Weaknesses in documentation and physical on-the-spot supervisions | flat-rate | 5 % | EUR | –1182038,83 | 0,00 | –1182038,83 |

DE | Exceptional market measures | 2002 | Weaknesses in documentation and physical on-the-spot supervisions | flat-rate | 5 % | EUR | –284869,30 | 0,00 | –284869,30 |

DE | Direct Payments | 2005 | Poor follow-up of evident overclaims identified following GIS establishment | one-off | | EUR | –32236,96 | 0,00 | –32236,96 |

Total DE | | | | | EUR | –1499145,09 | 0,00 | –1499145,09 |

DK | Clearance of accounts | 2005 | Financial clearance | one-off | | DKK | –96741,70 | –23951,90 | –72789,80 |

DK | Financial audit — Overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –125996,55 | –125996,55 | 0,00 |

Total DK | | | | | DKK | –96741,70 | –23951,90 | –72789,80 |

Total DK | | | | | EUR | –125996,55 | –125996,55 | 0,00 |

ES | Milk quota | 1997 | Milk deliveries underdeclared | one-off | | EUR | –1350020,32 | 0,00 | –1350020,32 |

ES | Arable Crops | 2004 | The sanctions and exclusion due to intentional non-compliance foreseen for in Article 33 of Commission Regulation (EC) No 2419/2001 are not applied | flat-rate | 2 % | EUR | –276716,91 | 0,00 | –276716,91 |

ES | Arable Crops | 2005 | The sanctions and exclusion due to intentional non-compliance foreseen for in Article 33 of Regulation (EC) No 2419/2001 are not applied | flat-rate | 2 % | EUR | –274130,08 | 0,00 | –274130,08 |

ES | Fruit and Veg's — Citrus Processing | 1998 | Reimbursement following partial annulment of Decision 2004/136/EC by the judgement of the Court of Justice in case T-220/04 | one-off | | EUR | 532684,56 | 0,00 | 532684,56 |

ES | Fruit and Veg's — Citrus Processing | 1999 | Reimbursement following partial annulment of Decision 2004/136/EC by the judgement of the Court of Justice in case T-220/04 | one-off | | EUR | 435837,70 | 0,00 | 435837,70 |

ES | Fruit and Veg's — Citrus Processing | 2000 | Reimbursement following partial annulment of Commission Decision 2004/136/EC by the judgement of the Court of Justice in case T-220/04 | one-off | | EUR | 11032,22 | 0,00 | 11032,22 |

ES | Meat Premiums — Bovines | 2002 | Systematic late controls on the spot | flat-rate | 5 % | EUR | –30407,71 | 0,00 | –30407,71 |

ES | Meat Premiums — Bovines | 2003 | Systematic late controls on the spot | flat-rate | 5 % | EUR | –159064,73 | 0,00 | –159064,73 |

ES | Meat Premiums — Bovines | 2004 | Systematic late controls on the spot | flat-rate | 5 % | EUR | –232483,16 | 0,00 | –232483,16 |

ES | Public Storage of butter | 2002 | Undue financing costs | one-off | | EUR | –141002,61 | 0,00 | –141002,61 |

ES | Public Storage of butter | 2003 | Undue financing costs | one-off | | EUR | –67250,22 | 0,00 | –67250,22 |

Total ES | | | | | EUR | –1551521,26 | 0,00 | –1551521,26 |

FR | Financial audit — Late payments | 2005 | Failure to meet payment deadlines | one-off | | EUR | –696062,71 | –934532,21 | 238469,50 |

FR | Financial audit — Overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –501,92 | –501,92 | 0,00 |

FR | Fruit and Veg's — Producer organisations | 2003 | Non-respect of recognition criteria | one-off | | EUR | –24478123,67 | 0,00 | –24478123,67 |

FR | Fruit and Veg's — Producer organisations | 2004 | Non-respect of recognition criteria | one-off | | EUR | –25243299,77 | 0,00 | –25243299,77 |

FR | Meat Premiums — Bovines | 2003 | Weaknesses regarding controls of animals only identified by tattoos | flat-rate | 2 % | EUR | –168812,00 | 0,00 | –168812,00 |

FR | Meat Premiums — Bovines | 2004 | Weaknesses regarding controls of animals only identified by tattoos | flat-rate | 2 % | EUR | –115584,00 | 0,00 | –115584,00 |

FR | Meat Premiums — Bovines | 2005 | Weaknesses regarding controls of animals only identified by tattoos | flat-rate | 2 % | EUR | –65764,00 | 0,00 | –65764,00 |

Total FR | | | | | EUR | –50768148,07 | –935034,13 | –49833113,94 |

GB | Financial audit — Overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –795921,45 | 0,00 | –795921,45 |

Total GB | | | | | EUR | –795921,45 | 0,00 | –795921,45 |

IT | Dried Fodder | 2002 | Non-adequate control of the enterprises transforming the fodder | flat-rate | 5 % | EUR | –1828877,58 | 0,00 | –1828877,58 |

IT | Dried Fodder | 2003 | Non-adequate control of the enterprises transforming the fodder | flat-rate | 2 % | EUR | –44421,46 | 0,00 | –44421,46 |

IT | Dried Fodder | 2003 | Non-adequate control of the enterprises transforming the fodder | flat-rate | 5 % | EUR | –2399395,34 | 0,00 | –2399395,34 |

IT | Dried Fodder | 2004 | Weaknesses regarding controls of operators of the network | flat-rate | 2 % | EUR | –512153,03 | 0,00 | –512153,03 |

IT | Dried Fodder | 2004 | Weaknesses regarding controls of operators of the network | flat-rate | 5 % | EUR | –9132,02 | 0,00 | –9132,02 |

IT | Dried Fodder | 2004 | Non-adequate control of the enterprises transforming the fodder | flat-rate | 5 % | EUR | –645442,92 | 0,00 | –645442,92 |

IT | Dried Fodder | 2005 | Weaknesses regarding controls of operators of the network | flat-rate | 2 % | EUR | –774140,65 | 0,00 | –774140,65 |

IT | Dried Fodder | 2005 | Weaknesses regarding controls of operators of the network | flat-rate | 5 % | EUR | –1552,69 | 0,00 | –1552,69 |

IT | Meat Premiums — Bovines | 2003 | Systematic late controls on the spot | flat-rate | 5 % | EUR | –456327,00 | 0,00 | –456327,00 |

IT | Meat Premiums — Bovines | 2004 | Systematic late controls on the spot | flat-rate | 5 % | EUR | –295911,00 | 0,00 | –295911,00 |

IT | Olive Oil — Production aid | 2001 | Shortcomings in controls of the mills, weaknesses in respect of the olive trees and the yield | flat-rate | 5 % | EUR | –40284269,55 | 0,00 | –40284269,55 |

IT | Olive Oil — Production aid | 2002 | Shortcomings in controls of the mills, weaknesses in respect of the olive trees and the yield | flat-rate | 5 % | EUR | –34743757,29 | 0,00 | –34743757,29 |

IT | Olive Oil — Production aid | 2003 | Shortcomings in controls of the mills, weaknesses in respect of the olive trees and the yield | flat-rate | 5 % | EUR | –113946,89 | 0,00 | –113946,89 |

IT | Olive Oil — Production aid | 2004 | Shortcomings in controls of the mills, weaknesses in respect of the olive trees and the yield | flat-rate | 5 % | EUR | –1289091,84 | 0,00 | –1289091,84 |

Total IT | | | | | EUR | –83398419,26 | 0,00 | –83398419,26 |

NL | Financial audit — Late payments | 2005 | Failure to meet payment deadlines | one-off | | EUR | –206100,68 | –206100,68 | 0,00 |

NL | Financial audit — Overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –60859,36 | –60859,36 | 0,00 |

Total NL | | | | | EUR | –266960,04 | –266960,04 | 0,00 |

PT | Wine — Restructuring | 2001 | Weaknesses in key on-the-spot controls and in determination of the eligible areas | flat-rate | 2 % | EUR | –77342,02 | 0,00 | –77342,02 |

PT | Wine — Restructuring | 2002 | Weaknesses in key on-the-spot controls and in determination of the eligible areas | flat-rate | 2 % | EUR | –649828,57 | 0,00 | –649828,57 |

PT | Wine — Restructuring | 2003 | Weaknesses in key on-the-spot controls and in determination of the eligible areas | flat-rate | 2 % | EUR | –673890,89 | 0,00 | –673890,89 |

PT | Wine — Restructuring | 2004 | Weaknesses in key on-the-spot controls and in determination of the eligible areas | flat-rate | 2 % | EUR | –565733,93 | 0,00 | –565733,93 |

Total PT | | | | | EUR | –1966795,41 | 0,00 | –1966795,41 |

SE | Arable Crops | 2004 | The level of on-the-spot (Rapid Field Visits) checks carried out under the minimum rate required | flat-rate | 5 % | SEK | –12198084,10 | 0,00 | –12198084,10 |

SE | Direct Payments | 2005 | The level of on-the-spot (Rapid Field Visits) checks carried out under the minimum rate required | flat-rate | 5 % | SEK | –12640336,05 | 0,00 | –12640336,05 |

SE | Direct Payments | 2005 | Low quality of the remote sensing checks | flat-rate | 2 % | SEK | –9280142,64 | 0,00 | –9280142,64 |

Total SE | | | | | SEK | –34118562,79 | 0,00 | –34118562,79 |

Total corrections — Budget item 05 07 01 07

MS | Measure | FY | Reason | Type | % | Currency | Amount | Deductions already made | Financial impact |

GR | Financial audit — Overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | 0,00 | –348181,42 | 348181,42 |

Total GR | | | | | EUR | 0,00 | –348181,42 | 348181,42 |

IE | Financial audit — Late payments | 2005 | Failure to meet payment deadlines | one-off | | EUR | –1064668,75 | –3495598,23 | 2430929,48 |

Total IE | | | | | EUR | –1064668,75 | –3495598,23 | 2430929,48 |

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