(Case T-113/08)

EAGGF – Guarantee Section – Expenditure excluded from Community financing – Aid for the production of olive oil – Aid for arable crop areas

4. Agriculture – Common organisation of the markets – Oils and fats – Olive oil (Council Regulations Nos 154/75, 2261/84, Art. 14(3), and 1638/98, Art. 2(1) to (3); Commission Regulation No 2366/98, Art. 8(b)) (see paras 98-100, 103-106)

5. Agriculture – EAGGF – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of the Community rules – Assessment of losses incurred by the Fund – Challenge by the Member State concerned – Burden of proof (Council Regulation No 729/70) (see paras 108-109)

6. Agriculture – EAGGF – Clearance of accounts – Limitation of the refusal of financing – Twenty-four month period – Point from which time starts to run – Communication by the Commission of the results of verifications (Council Regulation No 1258/1999, Art. 7(4)) (see paras 118-123, 138)

7. Agriculture – EAGGF – Grant of aids and premiums – Obligation on Member States to organise an efficient system of administrative controls and spot checks – Unreliable controls – Disallowance by the Fund (Commission Regulation No 2419/2001, Art. 15) (see para. 152)

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 relates to certain expenditure incurred by the Kingdom of Spain in the olive oil and arable crop sectors.

Operative part

The Court:

1.Dismisses the action;

2.Orders the Kingdom of Spain to pay the costs.