Commission Decision

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)

(notified under document number C(2007) 6514)

(only the Czech, Danish, Dutch, English, Finnish, French, German, Greek, Hungarian, Italian, Maltese, Portuguese, Slovenian, Spanish and Swedish texts are authentic)

(2008/68/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 3 September 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 Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Hungary, the Republic of Malta, the Portuguese Republic, the Republic of Slovenia, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland.

Done at Brussels, 20 December 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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ANNEX

Table of corrections — Budget item 6 7 0 1

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

BE | Financial audit — late payments | 2004 | Failure to meet payment deadlines | one-off | | EUR | –5586,40 | 0,00 | –5586,40 |

BE | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –110897,51 | –98742,45 | –12155,06 |

BE | RD Guarantee accompanying measures | 2001 | Shortcomings in cross-checks between the IACS data and AEM (agri-environmental measure) aid applications | flat rate | 5 | EUR | –196609,00 | 0,00 | –196609,00 |

BE | RD Guarantee accompanying measures | 2002 | Shortcomings in cross-checks between the IACS data and AEM (agri-environmental measure) aid applications | flat rate | 5 | EUR | –234328,00 | 0,00 | –234328,00 |

Total BE | | | | | EUR | –547420,91 | –98742,45 | –448678,46 |

CY | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –161932,84 | –161932,84 | 0,00 |

Total CY | | | | | EUR | –161932,84 | –161932,84 | 0,00 |

CZ | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –34749,34 | –34749,34 | 0,00 |

CZ | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | CZK | –897245,29 | 0,00 | –897245,29 |

Total CZ | | | | | EUR | –34749,34 | –34749,34 | 0,00 |

Total CZ | | | | | CZK | –897245,29 | 0,00 | –897245,29 |

DE | Meat premiums — ewes and goats | 2003 | Payment of aid to farmers with less than 10 premium rights | one-off | | EUR | –11491,42 | 0,00 | –11491,42 |

DE | Meat premiums — ewes and goats | 2004 | Payment of aid to farmers with less than 10 premium rights | one-off | | EUR | –10441,46 | 0,00 | –10441,46 |

DE | Meat premiums — ewes and goats | 2005 | Payment of aid to farmers with less than 10 premium rights | one-off | | EUR | –9416,76 | 0,00 | –9416,76 |

Total DE | | | | | EUR | –31349,64 | 0,00 | –31349,64 |

DK | Meat premiums — bovines | 2004 | Non-respect of six-month retention period and eligibility criteria control data missing | one-off | | DKK | –506466,84 | 0,00 | –506466,84 |

DK | Meat premiums — bovines | 2005 | Non-respect of six-month retention period and eligibility criteria control data missing | one-off | | DKK | –851336,20 | 0,00 | –851336,20 |

Total DK | | | | | DKK | –1357803,04 | 0,00 | –1357803,04 |

ES | Direct payments | 2004 | Weaknesses in on-the-spot checks (remote sensing and classical field visits) | flat rate | 2 | EUR | –7998628,39 | 0,00 | –7998628,39 |

ES | Direct payments | 2005 | Weaknesses in on-the-spot checks (remote sensing and classical field visits) | flat rate | 2 | EUR | –8592899,96 | 0,00 | –8592899,96 |

ES | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –4135287,21 | –4135287,21 | 0,00 |

ES | Financial audit — overshooting | 2003 | Overshooting of financial ceilings | one-off | | EUR | –87144,50 | –126355,45 | 39210,95 |

ES | Financial audit — overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | 678822,11 | 678822,11 | 0,00 |

ES | Olive oil — production aid | 2000 | Shortcomings in checks on crop declarations in checks on yields and in monitoring of checks on mills | flat rate | 5 | EUR | –47311467,25 | 0,00 | –47311467,25 |

ES | Olive oil — production aid | 2000 | No checks on crop declarations and shortcomings in checks on yields and in monitoring of checks on mills | flat rate | 10 | EUR | –93474,78 | 0,00 | –93474,78 |

ES | Olive oil — production aid | 2001 | Shortcomings in checks on crop declarations in checks on yields and in monitoring of checks on mills | flat rate | 5 | EUR | –15347930,92 | 0,00 | –15347930,92 |

ES | Olive oil — production aid | 2001 | No checks on crop declarations and shortcomings in checks on yields and in monitoring of checks on mills | flat-rate | 10 | EUR | –69115466,84 | 0,00 | –69115466,84 |

ES | Olive oil — production aid | 2002 | Shortcomings in checks on crop declarations in checks on yields and in monitoring of checks on mills | flat rate | 5 | EUR | –47950314,63 | 0,00 | –47950314,63 |

ES | Olive oil — production aid | 2002 | No checks on crop declarations and shortcomings in checks on yields and in monitoring of checks on mills | flat rate | 10 | EUR | –937645,09 | 0,00 | –937645,09 |

ES | Olive oil — production aid | 2003 | Shortcomings in checks on crop declarations in checks on yields and in monitoring of checks on mills | flat rate | 5 | EUR | –2606052,04 | 0,00 | –2606052,04 |

ES | Olive oil — production aid | 2003 | No checks on crop declarations and shortcomings in checks on yields and in monitoring of checks on mills | flat rate | 10 | EUR | –289665,00 | 0,00 | –289665,00 |

ES | Olive oil — production aid | 2004 | Shortcomings in checks on crop declarations in checks on yields and in monitoring of checks on mills | flat rate | 5 | EUR | –301631,26 | 0,00 | –301631,26 |

ES | Olive oil — production aid | 2004 | No checks on crop declarations and shortcomings in checks on yields and in monitoring of checks on mills | flat rate | 10 | EUR | –11537,73 | 0,00 | –11537,73 |

ES | POSEI RSA | 2005 | Late payments not justified non-compliant with Article 7(1) of Regulation (EC) No 20/2002 | one-off | | EUR | –1011071,88 | 0,00 | –1011071,88 |

ES | POSEI RSA | 2006 | Late payments not justified non-compliant with Article 7(1) of Regulation (EC) No 20/2002 | one-off | | EUR | –181662,46 | 0,00 | –181662,46 |

Total ES | | | | | EUR | –205293057,83 | 3582820,55 | –201710237,28 |

FI | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –10098,23 | –10098,23 | 0,00 |

FI | Financial audit — overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –7314447,47 | –7314447,47 | 0,00 |

Total FI | | | | | EUR | –7324545,70 | –7324545,70 | 0,00 |

FR | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –937338,17 | –937338,17 | 0,00 |

FR | Financial audit — overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –84733,89 | –84733,89 | 0,00 |

FR | Fruit and vegetables — operational funds | 2004 | Personnel costs/Unjustified excessive use of lump sums | one-off | | EUR | –323232,93 | 0,00 | –323232,93 |

FR | Fruit and vegetables — operational funds | 2005 | Personnel costs/Unjustified excessive use of lump sums | one-off | | EUR | –2568380,73 | 0,00 | –2568380,73 |

FR | Fruit and vegetables — operational funds | 2006 | Personnel costs/Unjustified excessive use of lump sums | one-off | | EUR | –2973197,30 | 0,00 | –2973197,30 |

FR | Fruit and vegetables — producer groups | 2004 | National instructions on action plans/Late introduction of aid claims | one-off | | EUR | –429334,45 | 0,00 | –429334,45 |

FR | Fruit and vegetables — producer groups | 2005 | National instructions on action plans/Late introduction of aid claims | one-off | | EUR | –439621,75 | 0,00 | –439621,75 |

FR | Fruit and vegetables — withdrawals | 2004 | Weaknesses in quality controls | flat rate | 10 | EUR | –510681,82 | 0,00 | –510681,82 |

FR | Fruit and vegetables — withdrawals | 2004 | Community withdrawal compensation paid to individual producers | one-off | | EUR | –103558,53 | 0,00 | –103558,53 |

FR | Fruit and vegetables — withdrawals | 2005 | Community withdrawal compensation paid to individual producers | one-off | | EUR | –85710,57 | 0,00 | –85710,57 |

FR | POSEI | 2003 | Shortcomings in physical checks on quantities of sugar cane delivered for processing and/or covered by transport aid | flat rate | 5 | EUR | –82207,54 | 0,00 | –82207,54 |

FR | POSEI | 2003 | Shortcomings in physical checks on quantities of sugar cane delivered for processing and/or covered by transport aid | one-off | | EUR | –296953,32 | 0,00 | –296953,32 |

FR | POSEI | 2004 | Shortcomings in physical checks on quantities of sugar cane delivered for processing and/or covered by transport aid | flat rate | 5 | EUR | –617486,18 | 0,00 | –617486,18 |

FR | POSEI | 2004 | Shortcomings in physical checks on quantities of sugar cane delivered for processing and/or covered by transport aid | one-off | | EUR | –185876,12 | 0,00 | –185876,12 |

FR | POSEI | 2005 | Shortcomings in physical checks on quantities of sugar cane delivered for processing and/or covered by transport aid | flat-rate | 5 | EUR | –658067,18 | 0,00 | –658067,18 |

Total FR | | | | | EUR | –10296380,48 | –1022072,06 | –9274308,42 |

GR | Fruit and vegetables — citrus processing | 1998 | Shortcomings in checks — payments effected by cheques impeding the quality of controls performed | flat rate | 2 | EUR | –213766,07 | 0,00 | –213766,07 |

GR | Fruit and vegetables — citrus processing | 1999 | Shortcomings in checks — payments effected by cheques impeding the quality of controls performed | flat rate | 2 | EUR | –131493,86 | 0,00 | –131493,86 |

GR | RD Guarantee accompanying measures | 2003 | Cross-checks not completely satisfactory | flat rate | 5 | EUR | –358060,00 | 0,00 | –358060,00 |

GR | RD Guarantee accompanying measures | 2004 | Cross-checks not completely satisfactory | flat rate | 5 | EUR | –972987,00 | 0,00 | –972987,00 |

GR | Financial audit late payments | 2004 | Failure to meet payment deadlines | one-off | | EUR | –5279881,28 | –5299887,55 | 20006,27 |

Total GR | | | | | EUR | –6956188,21 | –5299887,55 | –1656300,66 |

IE | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –702633,30 | –702633,30 | 0,00 |

IE | Financial audit — overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –40077,18 | –40077,18 | 0,00 |

IE | Fruit and vegetables — operational funds | 2004 | Weaknesses concerning on-the-spot checks and administrative operations | flat rate | 5 | EUR | –279728,23 | 0,00 | –279728,23 |

IE | Fruit and vegetables — operational funds | 2005 | Weaknesses concerning on-the-spot checks and administrative operations | flat rate | 5 | EUR | –281792,50 | 0,00 | –281792,50 |

IE | Fruit and vegetables — operational funds | 2006 | Weaknesses concerning on-the-spot checks and administrative operations | flat rate | 5 | EUR | –110165,90 | 0,00 | –110165,90 |

IE | Fruit and vegetables — operational funds | 2007 | Weaknesses concerning on-the-spot checks and administrative operations | flat rate | 5 | EUR | –59137,95 | 0,00 | –59137,95 |

Total IE | | | | | EUR | –1473535,06 | –742710,48 | –730824,58 |

IT | Fruit and vegetables — tomato processing | 2003 | Shortcomings in administrative and accounting checks at one tomato processor; records kept by the processor not in conformity with the relevant regulations | flat rate | 10 | EUR | –7583,76 | 0,00 | –7583,76 |

IT | Fruit and vegetables — tomato processing | 2004 | Shortcomings in administrative and accounting checks at one tomato processor; records kept by the processor not in conformity with the relevant regulations | flat rate | 10 | EUR | –130795,56 | 0,00 | –130795,56 |

IT | Fruit and vegetables — tomato processing | 2005 | Shortcomings in administrative and accounting checks at one tomato processor; records kept by the processor not in conformity with the relevant regulations | flat rate | 10 | EUR | –128059,54 | 0,00 | –128059,54 |

IT | Exceptional support measures | 2003 | Lack of precise control instructions failure to provide reliable information shortcomings in on-the-spot checks | flat rate | 2 | EUR | –276238,95 | 0,00 | –276238,95 |

IT | Exceptional support measures | 2003 | Lack of precise control instructions failure to provide reliable information shortcomings in on-the-spot checks | flat rate | 5 | EUR | –1175882,02 | 0,00 | –1175882,02 |

IT | Tobacco premiums | 2003 | Weaknesses in management and control of quota system | one-off | | EUR | –4501699,22 | 0,00 | –4501699,22 |

IT | Tobacco premiums | 2004 | Weaknesses in management and control of quota system | one-off | | EUR | –5957257,02 | 0,00 | –5957257,02 |

Total IT | | | | | EUR | –12177516,07 | 0,00 | –12177516,07 |

MT | Direct payments | 2005 | On-the-spot checks not carried out in compliance with the standard required and not effective | flat rate | 10 | MTL | –5830,91 | 0,00 | –5830,91 |

MT | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | MTL | –7570,93 | 0,00 | –7570,93 |

MT | Meat premiums — bovines | 2005 | Ineligible expenditure (payments for animals slaughtered before accession to the EU) | one-off | | MTL | –24957,38 | 0,00 | –24957,38 |

Total MT | | | | | MTL | –38359,22 | 0,00 | –38359,22 |

PT | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –49554,59 | –49554,59 | 0,00 |

PT | Financial audit — overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –29853,58 | –29853,58 | 0,00 |

Total PT | | | | | EUR | –79408,17 | –79408,17 | 0,00 |

SE | RD Guarantee accompanying measures | 2004 | Checks on good farming practices not satisfactory | one-off | | SEK | –225832,00 | 0,00 | –225832,00 |

SE | Financial audit — overshooting | 2006 | Overshooting of financial ceilings | one-off | | EUR | –501359,87 | –501359,87 | 0,00 |

Total SE | | | | | SEK | –225832,00 | 0,00 | –225832,00 |

Total SE | | | | | EUR | –501359,87 | –501359,87 | 0,00 |

SI | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –66375,30 | –66375,30 | 0,00 |

SI | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | SIT | –1241956,08 | 0,00 | –1241956,08 |

Total SI | | | | | EUR | –66375,30 | –66375,30 | 0,00 |

Total SI | | | | | SIT | –1241956,08 | 0,00 | –1241956,08 |

Table of corrections — Budget item 05 07 01 07

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

GB | Financial audit — late payments | 2005 | Failure to meet payment deadlines | one-off | | EUR | –9745763,94 | –10193240,48 | 447476,54 |

GB | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –70017,95 | –70017,95 | 0,00 |

Total GB | | | | | EUR | –9815781,89 | –10263258,43 | 447476,54 |

HU | Financial audit — late payments | 2006 | Failure to meet payment deadlines | one-off | | EUR | –43174,16 | –43174,16 | 0,00 |

HU | Financial audit — overshooting | 2005 | Overshooting of financial ceilings | one-off | | EUR | –1126881,93 | –1175988,98 | 49107,05 |

Total HU | | | | | EUR | –1170056,09 | –1219163,14 | 49107,05 |

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