# Commission Decision of 28 April 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) (notified under document number C(2006) 1702) (Only the Spanish, German, Greek, English, French, Italian, Dutch, Portuguese, Finnish and Swedish texts are authentic) (2006/334/EC)

EU Decision 2006/334 · adopted 28 April 2006

Commission Decision of 28 April 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) (notified under document number C(2006) 1702) (Only the Spanish, German, Greek, English, French, Italian, Dutch, Portuguese, Finnish and Swedish texts are authentic) (2006/334/EC)

## Introductory text

Commission Decision
of 28 April 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)
(notified under document number C(2006) 1702)
(Only the Spanish, German, Greek, English, French, Italian, Dutch, Portuguese, Finnish and Swedish texts are authentic)
(2006/334/EC)
THE COMMISSION OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy, and in particular Article 5(2)(c) thereof,
Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy, and in particular Article 7(4) thereof,
Having consulted the Fund Committee,
Whereas:
(1)
Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 1258/1999, and Article 8(1) and (2) of 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 provide that the Commission is to make the necessary verifications, inform the Member States of its findings, take account of the Member States' comments, initiate bilateral discussions with a view to reaching agreement with the Member States concerned and then formally communicate its conclusions to them, referring to Commission Decision 94/442/EC of 1 July 1994 setting up a conciliation procedure in the context of the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section.
(2)
The Member States have had an opportunity to request that a conciliation procedure be initiated. That opportunity has been used in some cases and the report issued on the outcome has been examined by the Commission.
(3)
Pursuant to Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, granted and undertaken respectively according to Community rules within the framework of the common organisation of the agricultural markets, may be financed.
(4)
In the light of the checks carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section.
(5)
The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section should be indicated. Those amounts do not relate to expenditure incurred more than twenty-four months before the Commission's written notification of the results of the checks to the Member States.
(6)
As regards the cases covered by this Decision, the assessment of the amounts to be excluded on grounds of non-compliance with Community rules was notified by the Commission to the Member States in a summary report on the subject.
(7)
This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgements of the Court of Justice in cases pending on 25 November 2005 and relating to its content,
HAS ADOPTED THIS DECISION:

## 1 

The expenditure itemised in the Annex hereto that has been incurred by the Member States' accredited paying agencies and declared under the EAGGF Guarantee Section shall be excluded from Community financing because it does not comply with Community rules.

## 2 

This Decision is addressed to the Kingdom of Belgium, the Federal Republic of Germany, the Kingdom of Spain, the French Republic, the Hellenic Republic, the Italian Republic, the Kingdom of the Netherlands, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland.

## Signature

Done at Brussels, 28 April 2006.
For the Commission
Mariann Fischer Boel
Member of the Commission

## 

Total corrections
Sector
Member State
Budget item
Reason
Nat. Currency
Expenditure to exclude from financing
Deductions already made
Financial impact of this decision
Financial year
Milk and milk products
BE
2040
Control deficiencies: 5 % flat-rate correction. Incorrect treatment of result of physical checks: one-off correction
EUR
-5 851 253,86
0,0
-5 851 253,86
2001-2003
Total BE
-5 851 253,86
0,0
-5 851 253,86
Milk and milk products
DE
2040
Non-compliance with the requirement to perform unannounced checks. 10 % flat-rate correction (1 operator)
EUR
-396 063,56
0,0
-396 063,56
2002-2004
Total DE
-396 063,56
0,0
-396 063,56
Fruit and vegetables
GR
1515
Partial annulment of Commission Decision 2002/881/EC, amount to be reimbursed to Greece.
EUR
623 385,74
0,0
623 385,74
1998-2000
Public storage
GR
3231
Partial annulment of Commission Decision 2003/102/EC, amount to be reimbursed to Greece.
EUR
9 926 005,21
0,0
9 926 005,21
1999-2001
Irregularities
GR
Miscellaneous
Partial annulment of Commission Decision 2003/481/EC, amount to be reimbursed to Greece.
EUR
41 884,9
0,0
41 884,9
Total GR
10 591 275,85
0,0
10 591 275,85
Public storage
ES
2111, 2112, 2113, 2114
Control deficiencies: 5 % flat-rate correction
EUR
-2 763 696,91
0,0
-2 763 696,91
2001-2003
Animal premiums
ES
2220, 2221, 2222
Premium paid to farmers not having the minimum quota rights. One-off correction
EUR
-78 720,15
0,0
-78 720,15
2003-2004
Rural development
ES
4000, 4010
Various shortcomings in the management and control system. 5 % flat-rate correction
EUR
-135 394,0
0,0
-135 394,0
2002-2003
Financial audit
ES
Miscellaneous
Partial annulment of Commission Decision 2002/461/EC, amount to be reimbursed to Spain.
EUR
451 482,55
0,0
451 482,55
2001
Total ES
-2 526 328,51
0,0
-2 526 328,51
Milk and milk products
FI
2040
Control w eakness. 5 % flat-rate correction (1 operator)
EUR
-65 903,93
0,0
-65 903,93
2002-2003
Ceiling overshoot
FI
2128
Overshoot of financial ceilings
EUR
-6 820,82
-6 820,82
0,0
2003
Total FI
-72 724,75
-6 820,82
-65 903,93
Fruit and vegetables
FR
1508
Aid over-estimated (calculated on the basis of quantities loaded rather quantities marketed), non-application of sanction in respect of claim submitted after the deadline: one-off correction. Non-performance of several key controls: 10 % flat-rate correction
EUR
-32 072 056,72
0,0
-32 072 056,72
2002-2004
Public storage
FR
2111, 2112, 2113, 2114
Control deficiencies: 5% flat-rate correction. Payment delays: one-off correction
EUR
-7 135 187,5
0,0
-7 135 187,5
2001-2003
Rural development
FR
4040
Incorrect application of a procedure for verifying one of the conditions of eligibility. One-off correction
EUR
-870 374,0
0,0
-870 374,0
2002
Total FR
-40 077 618,22
0,0
-40 077 618,22
Fruit and vegetables
IT
1501, 1502, 1515
Non-application of sanctions, deficiencies in controls on composting and bio-degradation. 10 % flat-rate correction and one-off correction
EUR
-30 021 060,0
0,0
-30 021 060,0
1999-2002
Fruit and vegetables
IT
1512
Non-compliance with payment deadlines. One-off correction
EUR
-4 414 265,04
0,0
-4 414 265,04
2002
Fruit and vegetables
IT
1502
Key controls are not applied in the number, frequency, or depth required by the regulations. 5 % flat-rate correction
EUR
-7 708 059,4
0,0
-7 708 059,4
2000-2003
Milk and milk products
IT
2040
Non-compliance with the regulations: one-off correction. Control deficiencies: 5 % flat-rate correction. Non-compliance with minimum rate of control: 10 % flat-rate
EUR
-297 002,44
0,0
-297 002,44
2002-2004
Arable crops
IT
1040-1062, 1310, 1858
Failure to apply sanctions. 3 % flat-rate correction
EUR
-7 975 231,0
0,0
-7 975 231,0
2002
Arable crops
IT
1040-1060, 1310, 1858
Poor quality of classical field inspections. 5 % flat-rate correction
EUR
-603 692,0
-36 829,0
-566 863,0
2001-2003
Rural development
IT
4000, 4010, 4040
Weaknesses in the management, control and sanctions system. 2 % flat-rate correction
EUR
-3 748 761,0
0,0
-3 748 761,0
2001-2002
Payment deadline
IT
Miscellaneous
Failure to meet payment deadlines
EUR
-30 938 245,66
-31 631 666,68
693 421,02
2003
Total IT
-85 706 316,54
-31 668 495,68
-54 037 820,86
Milk and milk products
NL
2040
Unsatisfactory sampling procedure: 10 % flat-rate correction (1 operator). Incorrect treatment of result of physical checks: one-off correction
EUR
-158 235,6
0,0
-158 235,6
2002-2003
Total NL
-158 235,6
0,0
-158 235,6
Fat
PT
1400, 1402
The control system put in place w as not adequate to prevent irregular practices on the part of all the actors concerned in the flax sector. 100 % financial correction
EUR
-3 135 348,71
0,0
-3 135 348,71
2001
Total PT
-3 135 348,71
0,0
-3 135 348,71
Arable crops
SE
1040, 1062, 1310
Shortcomings in the application of the rules regarding set-aside, incorrect application of technical tolerances, obvious errors applied over-generously. One-off correction.
SEK
-1 308 192,0
0,0
-1 308 192,0
2001-2002
Total SE
-1 308 192,0
0,0
-1 308 192,0
Financial audit
UK
Miscellaneous
Unidentified corrections to be credited to EAGGF. One-off correction
GBP
-497 130,69
0,0
-497 130,69
2004
Total UK
-497 130,69
0,0
-497 130,69

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Source: https://www.legislation.gov.uk/eudn/2006/334 (the official version)
Page: https://openlegislation.uk/eu-decision-2006-334
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.