Commission Decision

of 3 October 2006

on the financial treatment to be applied, in the context of clearance of expenditure financed by the European Agricultural Guidance and Guarantee Section, in certain cases of irregularity by operators

(notified under document number C(2006) 4324)

(Only the Spanish, German, English, French, Italian, Dutch and Portuguese texts are authentic)

(2006/678/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 8(2) thereof,

After consulting the Fund Committee,

Whereas:

(1) Article 8(1)(c) of Regulation (EEC) No 729/70 provides for the Member States to take the measures necessary to recover sums lost as a result of irregularities or negligence. Pursuant to Article 8(2) of Regulation (EEC) No 729/70, in the absence of total recovery, the financial consequences of irregularities or negligence are to be borne by the Community, with the exception of the consequences of irregularities or negligence attributable to administrative authorities or other bodies of the Member States.

(2) In its judgments in Cases C-34/89, Italy v Commission [2], C-54/95, Germany v Commission [3] and C-277/98 France v Commission [4], the Court of Justice has held that the Member States must take steps to rectify irregularities promptly. It follows in particular from the judgment in Case C-34/89 that a Member State cannot be inactive for a period of four years from the moment of the first indication of an irregularity [5]. Within that period the investigation should generally be conducted and a decision be taken on the initiation of recovery procedure. In Case C-54/95 the Court indicated that, in principle, the Member States have to start the recovery procedure within one year after the all relevant facts are known with regard to the irregularity.

(3) To date, the Commission has evaluated the recovery proceedings carried out by the Member States as regards irregularities communicated under Council Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field and repealing Regulation (EEC) No 283/72 [6] before 1 January 1999 and involving amounts of more than EUR 500000 in order to decide on the financial consequences of those irregularities in accordance with Article 8(2) of Regulation (EEC) No 729/70. In so doing, the Commission has followed the procedure set out in Article 5 of that Regulation and in Article 8 of Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Council Regulation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section [7].

(4) The verifications and the bilateral discussions with the Member States have shown that in certain cases the Member States did not act with the necessary promptness and diligence. Therefore, the financial consequences of non-recovery should in such cases not be borne by the Community budget.

(5) In all other cases the financial consequences of the irregularities examined should be borne by the Community budget.

(6) Cases notified under Regulation (EEC) No 595/91 in which undue payments have been recovered in full or for which it has been found that no undue payment was made should be removed from the list of notifications provided for in Articles 3 and 5 of that Regulation.

(7) The Commission has informed the Member States in a summary report of the amounts to be excluded from the Community financing and of the grounds on which such exclusion should be decided,

HAS ADOPTED THIS DECISION:

Article 1

The cases listed in Annex I are hereby cleared and the corresponding amounts charged to the Member State concerned.

Article 2

The cases listed in Annex II are hereby cleared and the corresponding amounts charged to the Community budget.

Article 3

The cases listed in Annex III are removed from the list of notifications provided for in Articles 3 and 5 of Regulation (EEC) No 595/91.

Article 4

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

Done at Brussels, 3 October 2006.

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] Judgment of 11.10.1990, ECR 1990, p. I-3603.

[3] Judgment of 21.1.1999, ECR 1999, p. I-35.

[4] Judgment of 13.11.2001, ECR 2001, p. I-8453.

[5] Points 12 and 13.

[6] OJ L 67, 14.3.1991, p. 11.

[7] 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 I

Amounts to be charged to the Member States

(budget item 6701)

Germany |

Case | Amount in EUR |

DE/1998/247 | 686190,80 |

Spain |

Case | Amount in EUR |

ES/1996/092 | 1489982,69 |

ES/1996/123 | 963758,23 |

Total | 2453740,92 |

France |

Case | Amount in EUR |

FR/1998/020 | 789514 |

FR/1998/117 | 551743 |

Total | 1341257 |

United Kingdom |

Case | Amount in GBP |

UK/1998/202/M | 360758 |

UK/1998/202/P | 749039 |

UK/1998/202/T | 274045 |

Total | 1383842 |

Italy |

Case | Amount in EUR |

IT/1982/009 | 1408128,65 |

IT/1982/012 | 1366417,81 |

IT/1982/013 | 629935,56 |

IT/1982/017 | 910013,88 |

IT/1984/004 | 41316,55 |

IT/1985/001 | 1910890,53 |

IT/1985/013 | 601357,97 |

IT/1985/028 | 700525,75 |

IT/1985/034 | 519830,66 |

IT/1985/037 | 1719677,84 |

IT/1986/017 | 1249635,88 |

IT/1986/035 | 436082,41 |

IT/1986/046 | 1051645,09 |

IT/1986/048 | 2346406,28 |

IT/1987/009 | 942061,74 |

IT/1987/106 | 2964559,78 |

IT/1987/118 | 952185,05 |

IT/1987/119 | 886233,53 |

IT/1987/129 | 3134051,95 |

IT/1987/130 | 3019712,80 |

IT/1988/029 | 3092803,26 |

IT/1988/059 | 2707017,35 |

IT/1988/067 | 13944336,28 |

IT/1988/069 | 16860045,01 |

IT/1988/123 | 1139567,43 |

IT/1989/003(A) | 3166518,37 |

IT/1989/010 | 4451687,38 |

IT/1989/011 | 880239,40 |

IT/1989/012 | 954560,47 |

IT/1989/013 | 1756811,95 |

IT/1989/017 | 1151573,35 |

IT/1989/049 | 607978,47 |

IT/1989/052 | 801021,02 |

IT/1989/055 | 729996,93 |

IT/1989/062 | 533048,34 |

IT/1989/076 | 7190795,74 |

IT/1989/078 | 3702297,02 |

IT/1989/087 | 2763062,49 |

IT/1989/094 | 873448,66 |

IT/1989/097 | 883185,79 |

IT/1989/109 | 882625,37 |

IT/1989/120 | 505074,81 |

IT/1989/130 | 952185,05 |

IT/1989/141 | 2353482,58 |

IT/1989/184 | 585745,67 |

IT/1989/185 | 3153808,48 |

IT/1989/187 | 1182320,05 |

IT/1989/188 | 5015307,87 |

IT/1989/208 | 1528863,48 |

IT/1990/001 | 1893038,98 |

IT/1990/002 | 648746,26 |

IT/1990/004 | 889279,64 |

IT/1990/021 | 560702,00 |

IT/1990/053 | 531953,50 |

IT/1990/059 | 8384948,04 |

IT/1990/064 | 2139322,74 |

IT/1990/066 | 667339,28 |

IT/1990/077 | 13964478,09 |

IT/1990/079 | 652412,16 |

IT/1990/080 | 997851,72 |

IT/1990/081 | 2950584,42 |

IT/1990/083 | 1226694,20 |

IT/1990/084 | 695687,06 |

IT/1990/086 | 1037481,54 |

IT/1990/092 | 0,00 |

IT/1990/094 | 3064059,49 |

IT/1991/002(A) | 2421612,13 |

IT/1991/004 | 3004248,14 |

IT/1991/006 | 1799675,37 |

IT/1991/008 | 3052599,57 |

IT/1991/009 | 1208081,21 |

IT/1991/014 | 1593129,84 |

IT/1991/017 | 790899,43 |

IT/1991/024 | 329539,37 |

IT/1991/056 | 1078101,49 |

IT/1991/071 | 688707,00 |

IT/1991/075 | 1021325,69 |

IT/1992/006 | 87000,11 |

IT/1992/011 | 619240,02 |

IT/1992/012 | 371440,00 |

IT/1992/060 | 2187059,94 |

IT/1992/061 | 417761,97 |

IT/1992/071 | 535447,07 |

IT/1992/098 | 1428011,50 |

IT/1992/117 | 895504,86 |

IT/1992/118 | 1363978,00 |

IT/1992/230 | 1456448,72 |

IT/1992/232 | 2422558,12 |

IT/1992/237 | 3814620,91 |

IT/1992/239 | 4420095,25 |

IT/1992/245 | 1715396,91 |

IT/1992/249 | 1022645,34 |

IT/1992/253 | 1878926,73 |

IT/1992/254 | 844269,29 |

IT/1992/256 | 1031347,46 |

IT/1992/257 | 950810,66 |

IT/1992/258 | 609296,43 |

IT/1992/264 | 558279,79 |

IT/1992/272 | 107354,19 |

IT/1992/275 | 431051,94 |

IT/1992/284 | 5284145,77 |

IT/1992/285 | 82039,00 |

IT/1992/338 | 342141,68 |

IT/1994/047 | 744987,49 |

IT/1994/063 | 11726016,74 |

IT/1994/092 | 1202986,10 |

IT/1994/095 | 1776176,16 |

IT/1994/151 | 654664,50 |

IT/1994/224 | 866412,91 |

IT/1994/235 | 824501,93 |

IT/1994/245 | 1540155,94 |

IT/1994/246 | 519777,15 |

IT/1994/250 | 187310,38 |

IT/1994/419 | 8760422,48 |

IT/1994/439 | 757184,91 |

IT/1994/445 | 2540892,25 |

IT/1995/031 | 1043415,42 |

IT/1995/053 | 5230746,31 |

IT/1995/054 | 3235621,62 |

IT/1995/060 | 1725150,04 |

IT/1995/099 | 1197629,77 |

IT/1995/103 | 2595717,93 |

IT/1995/117 | 808330,66 |

IT/1995/120 | 647980,61 |

IT/1995/160 | 941259,59 |

IT/1995/259 | 1252608,76 |

IT/1995/277 | 951752,36 |

IT/1995/342 | 570807,35 |

IT/1995/350 | 849611,86 |

IT/1995/363 | 623105,53 |

IT/1995/390 | 1040032,33 |

IT/1995/391 | 538652,15 |

IT/1996/004 | 871048,24 |

IT/1996/006 | 3450089,59 |

IT/1996/009 | 5708680,07 |

IT/1996/019 | 70153,80 |

IT/1996/022 | 3645678,08 |

IT/1996/025 | 513677,10 |

IT/1996/067 | 2852184,42 |

IT/1996/189 | 691863,13 |

IT/1996/205 | 5615994,15 |

IT/1996/207 | 650060,45 |

IT/1996/210 | 1078676,85 |

IT/1996/254 | 71572,77 |

IT/1996/271 | 6856477,88 |

IT/1996/282 | 666899,01 |

IT/1996/301 | 3524942,01 |

IT/1996/302 | 2247646,99 |

IT/1996/388 | 1425735,47 |

IT/1997/074 | 583123,58 |

IT/1997/123 | 729996,93 |

IT/1997/193 | 5513248,86 |

IT/1998/037 | 2286015,73 |

IT/1998/059 | 1175865,75 |

IT/1998/070 | 881768,99 |

IT/1998/103 | 503889,09 |

IT/1998/114 | 570848,01 |

Total | 310849495,98 |

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ANNEX II

Amounts to be charged to the EAGGF Guarantee Fund

Germany |

Case number | Amount in EUR |

DE/1995/174 | 3644689,38 |

DE/1996/210 | 102911,19 |

Total | 3747600,57 |

Spain |

Case number | Amount in EUR |

ES/1995/069 | 145393,60 |

ES/1996/073 | 71481,48 |

ES/1996/085 | 1617401,34 |

ES/1997/255 | 2275730,27 |

ES/1998/056 | 509809,96 |

Total | 4619816,55 |

Netherlands |

Case number | Amount in EUR |

NL/1997/066 | 532080 |

NL/1998/038 | 1922727 |

Total | 2454807 |

Portugal |

Case number | Amount in EUR |

PT/1996/014 | 1654408,37 |

PT/1998/015 | 608155,28 |

PT/1998/038 | 1417853,86 |

Total | 3680417,51 |

Italy |

Case number | Amount in EUR |

IT/1981/014 | 598645,14 |

IT/1982/011 | 858791,39 |

IT/1988/008 | 6951704,49 |

IT/1988/013 | 1628505,84 |

IT/1988/023 | 4121803,13 |

IT/1988/068 | 1792260,77 |

IT/1988/078 | 124280,67 |

IT/1989/001 | 4926732,53 |

IT/1989/016 | 538117,76 |

IT/1990/028 | 202927,48 |

IT/1990/037 | 2174169,20 |

IT/1991/002(S) | 2451649,46 |

IT/1993/004 | 500852,00 |

IT/1994/004 | 617469,18 |

IT/1994/005 | 29851834,89 |

IT/1994/008 | 41760653,21 |

IT/1994/253 | 10089425,06 |

IT/1994/449 | 1500425,25 |

IT/1995/057 | 2144502,97 |

IT/1995/384 | 1283089,70 |

IT/1995/387 | 1698575,15 |

IT/1996/007 | 10949621,58 |

IT/1996/015 | 1040113,00 |

IT/1996/020 | 491865,00 |

IT/1996/211 | 6322642,50 |

IT/1996/303 | 25206583,61 |

IT/1997/022 | 950412,40 |

IT/1997/159 | 516228,65 |

IT/1998/014 | 531544,83 |

Total | 161825426,84 |

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ANNEX III

Irregularity cases to be removed from the list under Regulation (EEC) No 595/91

Germany

Case number

DE/1996/016

DE/1996/144

DE/1996/260

DE/1997/015

DE/1997/095

DE/1997/136

DE/1998/040

DE/1998/195

DE/1998/214

Spain

Case number

ES/1995/066

ES/1995/071

ES/1996/089

ES/1997/002

ES/1997/040

ES/1997/041

ES/1997/062

France

Case number

FR/1996/031

FR/1996/056

FR/1998/010

FR/1998/024

Netherlands

Case number

NL/1995/127

NL/1997/059

NL/1998/078

Portugal

Case number

PT/1995/036

United Kingdom

Case number

UK/1998/271

Italy

Case number

IT/1986/019(D)

IT/1986/040

IT/1986/043

IT/1987/020

IT/1987/091

IT/1987/092

IT/1988/024

IT/1988/053(D)

IT/1988/070

IT/1989/075

IT/1989/106

IT/1989/136

IT/1989/140

IT/1989/183

IT/1990/016

IT/1990/018

IT/1990/019

IT/1990/024

IT/1990/025

IT/1990/040

IT/1990/048

IT/1990/052

IT/1990/065

IT/1990/071

IT/1990/075

IT/1991/003(A)

IT/1991/011

IT/1991/012

IT/1991/053

IT/1991/055

IT/1991/060

IT/1991/063

IT/1992/005

IT/1992/021

IT/1992/022

IT/1992/023

IT/1992/024

IT/1992/025

IT/1992/026

IT/1992/048

IT/1992/065

IT/1992/066

IT/1992/067

IT/1992/084

IT/1992/097

IT/1992/102

IT/1992/103

IT/1992/234

IT/1992/263

IT/1992/274

IT/1992/276

IT/1992/300

IT/1992/322

IT/1992/323

IT/1992/325

IT/1992/339

IT/1992/343

IT/1992/345

IT/1992/346

IT/1993/008

IT/1994/006

IT/1994/007

IT/1994/068(D)

IT/1994/142

IT/1994/217

IT/1994/219

IT/1994/233

IT/1994/392

IT/1994/430

IT/1994/431

IT/1994/433

IT/1994/450

IT/1995/004

IT/1995/020

IT/1995/023

IT/1995/034

IT/1995/035

IT/1995/036

IT/1995/037

IT/1995/038

IT/1995/118

IT/1995/158

IT/1995/293

IT/1995/296

IT/1995/329

IT/1995/336

IT/1995/356

IT/1995/365

IT/1995/385

IT/1995/386

IT/1996/002

IT/1996/008(A)

IT/1996/008(S)

IT/1996/014

IT/1996/015(D)

IT/1996/277

IT/1996/289

IT/1996/292

IT/1996/304

IT/1996/387

IT/1997/004

IT/1997/008

IT/1997/158

IT/1997/167

IT/1997/192

IT/1998/006

IT/1998/020

IT/1998/021

IT/1998/025

IT/1998/026

IT/1998/027

IT/1998/032

IT/1998/036

IT/1998/045

IT/1998/056

IT/1998/062

IT/1998/068

IT/1998/071

IT/1998/426

IT/2000/059

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