26.4.2008

EN

Official Journal of the European Union

C 107/40

(Case T-113/08)

(2008/C 107/68)

Language of the case: Spanish

Parties

Applicant: Kingdom of Spain (represented by: M. Muñoz Pérez)

Defendant: Commission of the European Communities

Form of order sought

—Annul 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), to the extent it relates to the subject matter of this action, and

—Order the Commission to pay the costs.

Pleas in law and main arguments

The effect of the contested decision is to exclude from Community financing certain corrective measures, among which, for the purposes of this action, are included those concerning aid to olive oil production in the seasons 1998/1999, 1999/2000 and 1999/2001, to a total sum of EUR 183 965 185,54; and direct aid payments, aid for arable crop areas, applied for in the years 2003 and 2004, to a total sum of EUR 16 591 528,35.

In particular, this action relates to the corrective financial measures adopted in relation to aid to olive oil production, excluding the proportion relating to the season 1999/2000 in Andalusia, and that adopted in relation to aid to arable crops areas applied for in the years 2003 and 2004.

In support of its claims, the applicant alleges:

—As regards aid to olive oil production:

—Infringement of Article 8 of Regulation No 1663/95 (1), in that the financial corrective measures were not based on observations made by the Commission on verifications made as a result of the investigation, but on extrapolations from observations relating to other investigations.

—Infringement of Articles 2 and 3 of Regulation No 729/70 (2) and of Article 2 of Regulation No 1258/1999 (3), since the contested decision applies them in inappropriate circumstances, given that the theoretical irregularities relied on by the Commission to justify the financial corrective measures decided upon are insufficient.

—Failure to observe the period of 24 months prior to written communication of the results of the verifications, laid down in Article 7(4) of Regulation No 1258/99.

—As regards the aid to arable crops areas:

—Infringement of the procedure laid down in Article 8(1) of Regulation No 1663/95, since there was no statement of the reasons justifying the financial corrective measures in the document in which the results of the verifications were notified to the Member State, and alternatively, failure to observe the period of 24 months laid down in Article 7(4) of Regulation No 1258/1999.

—Infringement of Article 2 of Regulation No 1258/1999, since the contested decision is applied in inappropriate circumstances, given that the irregularities assessed by the Commission are insufficient.

—Infringement of the provisions of Article 2 of that regulation, and of the Guidelines for the calculation of the financial consequences on preparing the Decision on the clearance of accounts of the EAGGF Guarantee Section.

* * *

(1) 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 (OJ L 158, 8.7.1995, p. 6).

(2) Regulation (EEC) No 729/70 of the Council of 21 April 1970 on the financing of the common agricultural policy (OJ L 94, 28.4.1970, p. 13).

(3) Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (OJ L 160, 26.6.1999, p. 103).