(Case T-500/09)

EAGGF – Guarantee Section – Expenditure excluded from Community financing – Aid for the processing of citrus fruit – Effectiveness of the checks – Proportionality

3. 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 – Failure to fulfil obligations – Justification on the basis of practical difficulties – Not permissible (Council Regulation No 1258/1999, Art. 8; Commission Regulation No 2111/2003, Art. 24) (see para. 45)

4. Agriculture – Common agricultural policy – EAGGF financing – Clearance of accounts – Disallowance of expenditure arising from irregularities in the application of the Community rules – Finding of failures in the control system implemented by a Member State – Possibility of the Commission disallowing all the expenditure – Application of a flat-rate correction – Breach of principle of proportionality – None (Council Regulation No 1258/1999, Art. 7) (see para. 50)

Re:

APPLICATION for annulment of Commission Decision 2009/721/EC of 24 September 2009 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF), under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (OJ 2009 L 257, p. 28), in so far as it excludes certain expenditure incurred by the Italian Republic in the sector of citrus‑fruit processing.

Operative part

The Court:

1.Dismisses the action;

2.Orders the Italian Republic to pay the costs.