18.3.2019

EN

Official Journal of the European Union

C 103/51

(Case T-38/19)

(2019/C 103/67)

Language of the case: Portuguese

Parties

Applicant: Portuguese Republic (represented by: L. Inez Fernandes, P. Barros da Costa, P. Estêvão and J. Saraiva de Almeida, acting as Agents)

Defendant: European Commission

Form of order sought

The applicant claims that the Court should:

—Annul Commission Decision C(2018) 7424 of 16 November 2018, notified on 19 November 2018, excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD), (1) in so far as it excludes from European Union financing the sum of EUR 8 703 417,29 relating to expenditure declared by the Portuguese Republic in connection with cross-compliance, in the financial years from 2014 to 2016;

—Order the European Commission to pay the costs.

Pleas in law and main arguments

In support of its action, the applicant relies on two principal pleas in law and one subsidiary plea.

First plea in law: error of law in finding that the Portuguese system is too lenient — infringement of Article 24 of Regulation (EC) No 73/2009 (2) and infringement of the provisions of the second subparagraph of Article 54(1)(c), and Article 71 of Regulation (EC) No 1122/2009. (3)

Second plea in law:

1.‘Calculation of the financial correction’ — Error of law, infringement of the principles of legitimate expectations and proportionality, and of Article 52 of Regulation (EU) No 1306/2013 by the Commission;

2.Infringement of the principle of proportionality.

Subsidiary plea:

Average penalty and lack of technical precision of Commission document C(2015) 3675 (annex A.5) — error of law and infringement of the principle of proportionality.

(1)Commission Implementing Decision (EU) 2018/1841 of 16 November 2016 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (notified under document C(2018) 7424) (OJ 2018 L 298, p. 34).

(2)Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 (OJ 2009 L 30, p. 16).

(3)Commission Regulation (EC) No 1122/2009 of 30 November 2009 laying down detailed rules for the implementation of Council Regulation (EC) No 73/2009 as regards cross-compliance, modulation and the integrated administration and control system, under the direct support schemes for farmers provided for that Regulation, as well as for the implementation of Council Regulation (EC) No 1234/2007 as regards cross-compliance under the support scheme provided for the wine sector (OJ 2009 L 316, p. 65).