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Judgment of the General Court (Sixth Chamber) of 22 September 2011. # Kingdom of Spain v European Commission. # FEOGA - Section ‘Orientation’ - Réduction d’un concours financier - Concours financier alloué à un programme opérationnel destiné à l’amélioration de la transformation et de la commercialisation de produits agricoles - Efficacité des contrôles - Proportionnalité . # Case T-67/10.
ECLI:EU:T:2011:518
62010TJ0067
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(Case T-67/10)
EAGGF – Guidance Section – Reduction of financial assistance – Financial assistance awarded to an operational programme for the improvement of the processing and marketing of agricultural products – Effectiveness of checks – Proportionality
1. Economic and social cohesion – Structural assistance – Community financing – Obligation on Member States to establish management and control systems – Serious inadequacies capable of leading to systemic irregularities – Consequence – Suspension of intermediate payments (Council Regulation No 1260/1999, Arts 38(1) and 39(2)(c) and (3); Commission Regulation No 438/2001, Arts 3, 4 and 7) (see paras 23-25)
2. Economic and social cohesion – Structural assistance – Community financing – Decision to reduce financial aid by reason of irregularities – Financial consequences not ascertainable – Flat-rate correction – Breach of principle of proportionality – None (Council Regulation No 1260/1999, Art. 39(3)) (see paras 36-38)
Re:
APPLICATION for annulment of Commission Decision C(2009) 9827 of 10 December 2009 applying financial corrections to the EAGGF assistance, Guidance Section, awarded to the operational programme CCI 2000.ES.16.1.PO.007 (Spain, Castilla y León) in relation to the measure improving processing and marketing of agricultural products.
Operative part
The Court:
1. Dismisses the action;
2. Orders the Kingdom of Spain to pay the costs.