Commission Decision

of 19 March 2009

excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) and under the European Agricultural Guarantee Fund (EAGF)

(notified under document number C(2009) 1945)

(Only the Danish, Dutch, English, French, Greek, Italian, Slovenian and Spanish texts are authentic)

(2009/253/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy [1], and in particular Article 7(4) thereof,

Having regard to Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy [2], and in particular Article 31 thereof,

Having consulted the Committee on the Agricultural Funds,

Whereas:

(1) Under Article 7(4) of Regulation (EC) No 1258/1999, and Article 31 of Regulation (EC) No 1290/2005, 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 Regulation (EC) No 1258/1999 and Regulation (EC) No 1290/2005, only agricultural expenditure which has been incurred in a way that has not infringed Community rules 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 this requirement and cannot, therefore, be financed under the EAGGF Guarantee Section and the European Agricultural Guarantee Fund, hereinafter referred to as EAGF.

(5) The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section and the EAGF should be indicated. Those amounts do not relate to expenditure incurred more than twenty-four 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 6 January 2009 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 or under the EAGF 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, Kingdom of Denmark, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Slovenia and the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 19 March 2009.

For the Commission

Mariann Fischer Boel

Member of the Commission

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

[2] OJ L 209, 11.8.2005, p. 1.

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ANNEX

Budget item 6 7 0 1

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

BE | Export refunds — Sugar and isoglucose | 2004 | Insufficient quantity of laboratory controls of sugar. | forfaitaire | 2,00 | EUR | –2752373,87 | 0,00 | –2752373,87 |

BE | Export refunds — Sugar and isoglucose | 2005 | Insufficient quantity of laboratory controls of sugar. | forfaitaire | 2,00 | EUR | –3348166,37 | 0,00 | –3348166,37 |

BE | Export refunds — Sugar and isoglucose | 2006 | Insufficient quantity of laboratory controls of sugar. | forfaitaire | 2,00 | EUR | –1096253,86 | 0,00 | –1096253,86 |

BE | Fruit and Vegetables — Operational Programmes | 2005 | Ineligible expenditure comprising environmental packaging and VAT | ponctuelle | | EUR | –1189054,23 | 0,00 | –1189054,23 |

BE | Fruit and Vegetables — Operational Programmes | 2006 | Ineligible expenditure including environmental packaging and VAT | ponctuelle | | EUR | –535735,88 | 0,00 | –535735,88 |

TOTAL BE | –8921584,21 | 0,00 | –8921584,21 |

CY | Wine — Restructuring | 2005 | Overpayments of amounts to individual producers | ponctuelle | | CYP | –2094,55 | 0,00 | –2094,55 |

TOTAL CY | –2094,55 | 0,00 | –2094,55 |

DK | Arable Crops | 2003 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 5,00 | DKK | –16820597,23 | 0,00 | –16820597,23 |

DK | Arable Crops | 2003 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 10,00 | DKK | –48235864,52 | 0,00 | –48235864,52 |

DK | Arable Crops | 2003 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 5,00 | DKK | –180971473,05 | 0,00 | –180971473,05 |

DK | Arable Crops | 2004 | Weakness in key-control: remote sensing. | forfaitaire | 2,00 | DKK | –6594611,09 | 0,00 | –6594611,09 |

DK | Arable Crops | 2004 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 5,00 | DKK | –199488578,07 | 0,00 | –199488578,07 |

DK | Arable Crops | 2004 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 10,00 | DKK | –48736215,92 | 0,00 | –48736215,92 |

DK | Arable Crops | 2005 | Weakness in key-control: remote sensing. | forfaitaire | 2,00 | DKK | –1987122,96 | 0,00 | –1987122,96 |

DK | Arable Crops | 2005 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 5,00 | DKK | –201721301,02 | 0,00 | –201721301,02 |

DK | Arable Crops | 2005 | Weakness in the control of the compliance with set-aside areas | forfaitaire | 10,00 | DKK | –45156517,78 | 0,00 | –45156517,78 |

TOTAL DK | –749712281,64 | 0,00 | –749712281,64 |

ES | Fruit and Vegetables — Citrus Processing | 2005 | Non-recognitnion of one of the producers' organisation criterion. | ponctuelle | | EUR | –78111,82 | 0,00 | –78111,82 |

ES | Fruit and Vegetables — Citrus Processing | 2006 | Non-recognitnion of one of the producers' organisation criterion. | ponctuelle | | EUR | –79222,56 | 0,00 | –79222,56 |

ES | Fruit and Vegetables — Citrus Processing | 2007 | Non-recognitnion of one of the producers' organisation criterion. | ponctuelle | | EUR | –39411,30 | 0,00 | –39411,30 |

ES | Meat Premiums — Ewe and Goats | 2003 | Updated calculation of correction based on the new financial data obtained | ponctuelle | | EUR | –2415,00 | 0,00 | –2415,00 |

ES | Meat Premiums — Ewe and Goats | 2004 | Updated calculation of correction based on the new financial data obtained | ponctuelle | | EUR | –102075,02 | 0,00 | –102075,02 |

ES | Meat Premiums — Ewe and Goats | 2005 | Updated calculation of correction based on the new financial data obtained | ponctuelle | | EUR | –95914,93 | 0,00 | –95914,93 |

TOTAL ES | –397150,63 | 0,00 | –397150,63 |

FR | Irregularities | | Reimbursment due to erroneous application of the 50/50 rule | | | EUR | 265473,73 | 0,00 | 265473,73 |

FR | Food Aid within the Community | 2005 | Failure to meet payment deadlines. Absence of sanctions. | forfaitaire | 2,00 | EUR | –959937,85 | 0,00 | –959937,85 |

FR | Food Aid within the Community | 2005 | Failure to meet payment deadlines. Absence of sanctions. | ponctuelle | | EUR | –148951,85 | 0,00 | –148951,85 |

FR | Food Aid within the Community | 2006 | Failure to meet payment deadlines. Absence of sanctions. | forfaitaire | 2,00 | EUR | –838194,08 | 0,00 | –838194,08 |

FR | Food Aid within the Community | 2006 | Failure to meet payment deadlines. Absence of sanctions. | ponctuelle | | EUR | –340621,43 | 0,00 | –340621,43 |

TOTAL FR | –2022231,48 | 0,00 | –2022231,48 |

GB | Export Refunds | 2003 | Risk analysis not used properly — reduction of control rate not justified | forfaitaire | 5,00 | GBP | –890012,69 | 0,00 | –890012,69 |

GB | Export Refunds | 2004 | Risk analysis not used properly — reduction of control rate not justified; Insufficient certification of exit from Community | forfaitaire | 5,00 | GBP | –2291169,57 | 0,00 | –2291169,57 |

GB | Export Refunds | 2004 | Non-Annex I goods — insufficient verification of recipes | forfaitaire | 10,00 | GBP | –43131,68 | 0,00 | –43131,68 |

GB | Export Refunds | 2005 | Risk analysis not used properly — reduction of control rate not justified; Insufficient certification of exit from Community | forfaitaire | 5,00 | GBP | –3395655,55 | 0,00 | –3395655,55 |

GB | Export Refunds | 2005 | Non-Annex I goods — insufficient verification of recipes | forfaitaire | 10,00 | GBP | –68291,82 | 0,00 | –68291,82 |

GB | Export Refunds | 2006 | Risk analysis not used properly — reduction of control rate not justified; Insufficient certification of exit from Community | forfaitaire | 5,00 | GBP | –2291169,57 | 0,00 | –2291169,57 |

GB | Export Refunds | 2006 | Non-Annex I goods — insufficient verification of recipes | forfaitaire | 10,00 | GBP | –68291,82 | 0,00 | –68291,82 |

GB | Export Refunds | 2007 | Risk analysis not used properly — reduction of control rate not justified | forfaitaire | 5,00 | GBP | –247225,73 | 0,00 | –247225,73 |

TOTAL GB | –9294948,43 | 0,00 | –9294948,43 |

GR | Export refunds — Non-Annex I | 2004 | Insufficient controls. Risk of ineligible payments. Unreliable data on quantities of sugar exported. | forfaitaire | 10,00 | EUR | –160378,12 | 0,00 | –160378,12 |

GR | Export refunds — Non-Annex I | 2005 | Insufficient controls. Risk of ineligible payments. Unreliable data on quantities of sugar exported. | forfaitaire | 10,00 | EUR | –104574,50 | 0,00 | –104574,50 |

GR | Export refunds — Non-Annex I | 2006 | Insufficient controls. Risk of ineligible payments. Unreliable data on quantities of sugar exported. | forfaitaire | 10,00 | EUR | –10276,40 | 0,00 | –10276,40 |

GR | Export refunds — Sugar and isoglucose | 2004 | Insufficient controls. Risk of ineligible payments. Unreliable data on quantities of sugar exported. | forfaitaire | 10,00 | EUR | –838787,30 | 0,00 | –838787,30 |

GR | Export refunds — Sugar and isoglucose | 2005 | Insufficient controls. Risk of ineligible payments. Unreliable data on quantities of sugar exported. | forfaitaire | 10,00 | EUR | –99948,50 | 0,00 | –99948,50 |

GR | Export refunds — Sugar and isoglucose | 2006 | Insufficient controls. Risk of ineligible payments. Unreliable data on quantities of sugar exported. | forfaitaire | 10,00 | EUR | –69462,90 | 0,00 | –69462,90 |

TOTAL GR | –1283427,72 | 0,00 | –1283427,72 |

IE | Export Refunds & Food Aid outside the UE | 2003 | Weaknesses in risk analysis. Insufficient quality and quantity of physical checks. | forfaitaire | 2,00 | EUR | –824680,26 | 0,00 | –824680,26 |

IE | Export Refunds & Food Aid outside the UE | 2004 | Weaknesses in risk analysis. Insufficient quality and quantity of physical checks. | forfaitaire | 2,00 | EUR | –916724,78 | 0,00 | –916724,78 |

IE | Export Refunds & Food Aid outside the UE | 2005 | Weaknesses in risk analysis. Insufficient quality and quantity of physical checks. | forfaitaire | 2,00 | EUR | –653050,12 | 0,00 | –653050,12 |

IE | Export Refunds & Food Aid outside the UE | 2006 | Weaknesses in risk analysis. Insufficient quality and quantity of physical checks. | forfaitaire | 2,00 | EUR | –46017,73 | 0,00 | –46017,73 |

TOTAL IE | –2440472,89 | 0,00 | –2440472,89 |

IT | Other Direct Aid — Silk Worms | 2004 | Insufficient administrative controls of aid applications and not satisfactory control of minimum weight | forfaitaire | 5,00 | EUR | –226,54 | 0,00 | –226,54 |

IT | Other Direct Aid — Silk Worms | 2005 | Insufficient administrative controls of aid applications and not satisfactory control of minimum weight | forfaitaire | 5,00 | EUR | –1632,44 | 0,00 | –1632,44 |

IT | Other Direct Aid — Silk Worms | 2006 | Insufficient administrative controls of aid applications and not satisfactory control of minimum weight | forfaitaire | 5,00 | EUR | –857,69 | 0,00 | –857,69 |

IT | Other Direct Aid — Silk Worms | 2007 | Insufficient administrative controls of aid applications and not satisfactory control of minimum weight | forfaitaire | 5,00 | EUR | –1625,77 | 0,00 | –1625,77 |

TOTAL IT | –4342,44 | 0,00 | –4342,44 |

SI | Direct Payments | 2005 | Deficiencies in key-controls: incorrect control approach, technique and tools. | forfaitaire | 5,00 | SIT | –175559567,33 | 0,00 | –175559567,33 |

SI | Direct Payments | 2006 | Deficiencies in key-controls: incorrect control approach, technique and tools. | forfaitaire | 5,00 | SIT | –180027349,79 | 0,00 | –180027349,79 |

TOTAL SI | –355586917,12 | 0,00 | –355586917,12 |

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