(Case T-263/06)

EAGGF – Guarantee Section – Expenditure excluded from Community financing – Measures ancillary to rural development – Time-limit of 24 months – Assessment of the expenditure to be excluded – Key controls – Principle of ne bis in idem – Extrapolation of the findings of default – Principle of proportionality

1. Agriculture – EAGGF – Clearance of accounts – Assessment of expenses to be excluded from Community financing – Communication after notification of the results of the checks and discussions with the Member State (Council Regulation No 1258/1999, Art. 7(4), fourth para.; Commission Regulation No 1663/95, as amended by Regulation No 2245/1999, Art. 8(1)) (see paras 65-67)

5. Acts of the institutions – Regulations – Regulation prescribing specific control measures – No discretion of the Member State – Non-implementation – Justification – Greater efficiency of another control system – Inadmissibility (see paras 101-102)

7. Agriculture – Common agricultural policy – EAGGF financing – Principles – Duty of the Commission to refuse to accept responsibility for irregular expenses – Irregularities tolerated during a financial year for reasons of fairness – Strict application of the rules during the following financial year – Infringement of the principles of legal certainty and the protection of legitimate expectations – None (see para. 171)

Re:

ANNULMENT of Commission Decision 2006/554/EC of 27 July 2006 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 2006 L 218, p. 12), in so far as it excludes certain expenditure incurred by the Hellenic Republic in the sector of measures ancillary to rural development.

Operative part

The Court:

1.Dismisses the action;

2.Orders the Hellenic Republic to pay the costs.