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.
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