(Case T-352/05)

EAGGF – Guarantee section – Expenditure excluded from Community financing – Specific measures for certain agricultural products in favour of the minor islands of the Aegean Sea – Fruit and vegetables – Raw tobacco – Goat and sheepmeat – Non-compliance with payment deadlines – Proportionality – Increase in flat-rate correction for recurrent weaknesses

4. Agriculture – Common agricultural policy – EAGGF financing – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of Community rules (Council Regulation No 1258/99, Art. 7(4); Commission Regulation No 296/96, Art. 4(2)) (see paras 129-131, 167)

6. Agriculture – Common agricultural policy – EAGGF financing – Grant of aids and premiums – Obligation on Member States to organise an efficient system of administrative controls and spot checks (Council Regulation No 3508/92, Arts 9a(1) and 13(1)(d); Commission Regulation No 2848/98, Art. 45, first para.,(a)) (see paras 231, 234-238)

7. Acts of the institutions – Regulations – Regulation prescribing specific control measures – No Member State discretion (see para. 241)

Re:

ANNULMENT of Commission Decision 2005/579/EC of 20 July 2005 disallowing from Community financing certain expenditure incurred by the Member States under the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section (OJ 2005 L 199, p. 84) in so far as it excludes certain expenditure carried out by the Hellenic Republic in the context of specific measures for certain agricultural products in favour of the minor islands of the Aegean Sea and in the fruit and vegetables, raw tobacco and goat and sheepmeat sectors.

Operative part

The Court:

1.Dismisses the action;

2.Orders the Hellenic Republic to pay the costs.