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You are here: BAILII >> Databases >> Court of Justice of the European Communities (including Court of First Instance Decisions) >> Pays-Bas v Commission (Agriculture) [2002] EUECJ C-133/99 (06 June 2002) URL: http://www.bailii.org/eu/cases/EUECJ/2002/C13399.html Cite as: [2002] EUECJ C-133/99 |
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JUDGMENT OF THE COURT (Fifth Chamber)
6 June 2002 (1)
(EAGGF - Clearance of accounts - 1995 financial year - Aid for processing of skimmed milk into casein and caseinates)
In Case C-133/99,
Kingdom of the Netherlands, represented by M.A. Fierstra and N. Wijmenga, acting as Agents,
applicant,
supported by
French Republic, represented by R. Abraham and C. Vasak, acting as Agents,
intervener,
v
Commission of the European Communities, represented by T. van Rijn, K.-D. Borchard and C. van der Hauwaert, acting as Agents, with an address for service in Luxembourg,
defendant,
APPLICATION for partial annulment of Commission Decision 1999/187/EC of 3 February 1999 on the clearance of the accounts presented by the Member States in respect of the expenditure for 1995 of the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (OJ 1999 L 61, p. 37), in so far as it excludes the applicant Member State from Community financing in the sum of NLG 39 182 606 by way of aid for the processing of skimmed milk into casein and caseinates,
THE COURT (Fifth Chamber),
composed of: P. Jann (Rapporteur), President of the Chamber, D.A.O. Edward, A. La Pergola, M. Wathelet and C.W.A. Timmermans, Judges,
Advocate General: J. Mischo,
Registrar: H.A. Rühl, Principal Administrator,
having regard to the Report for the Hearing,
after hearing oral argument from the parties at the hearing on 22 November 2001, at which the Kingdom of the Netherlands was represented by J.S. van den Oosterkamp, acting as Agent, and the Commission by T. van Rijn,
after hearing the Opinion of the Advocate General at the sitting on 15 January 2002,
gives the following
The legal framework
'The Commission, after consulting the Fund Committee referred to in Article 11,
(a) shall decide:
- at the beginning of the year, on the basis of the documents referred to in paragraph 1(a), on an advance payment for the authorities and bodies not exceeding one third of the credits entered in the budget;
- during the year, on additional payments intended to cover expenditure to be borne by an authority or body;
(b) shall, before the end of the following year, on the basis of the documents referred to in paragraph 1(b), make up the accounts of the authorities and bodies.'
'1. Member States shall at regular intervals transmit to the Commission the following information concerning the accredited paying agencies and coordinating bodies referred to in Article 4 and relating to transactions financed by the Guarantee Section of the EAGGF:
(a) statements of expenditure and estimates of financial needs;
(b) annual accounts, accompanied by the information required for clearance and an attestation regarding the integrality, exactitude and veracity of the accounts transmitted.
2. The Commission, after consulting the Fund Committee:
(a) shall decide on monthly advances against the allocations of expenditure effected by the accredited paying agencies. Expenditure for October shall be attributed to October if it is effected from 1 to 15 October and to November if it is effected from 16 to 31 October. Advance payments shall be made to the Member State not later than the third working day of the second month following that in which the expenditure is effected.
Additional advances may be made, the Fund Committee being informed at the next consultation;
(b) shall, before 30 April of the year following the financial year concerned, on the basis of the information referred to in point (b) of paragraph 1, clear the accounts of the paying agencies.
The accounts clearance decision shall cover the integrality, exactitude and veracity of the accounts submitted.
The decision shall not prejudice the adoption of a subsequent decision pursuant to point (c);
(c) shall decide on the expenditure to be excluded from the Community financing referred to in Articles 2 and 3 where it finds that expenditure has not been effected in compliance with Community rules.
Before a decision to refuse financing is taken, the results of the Commission's checks and the replies of the Member State concerned shall be notified in writing, after which the two parties shall endeavour to reach agreement on the action to be taken.
If no agreement is reached, the Member State may ask for a procedure to be initiated with a view to mediating between the respective positions within a period of four months, the results of which shall be set out in a report sent to and examined by the Commission, before a decision to refuse financing is taken.
The Commission shall evaluate the amounts to be excluded having regard in particular to the degree of non-compliance found. The Commission shall take into account the nature and gravity of the infringement and the financial loss suffered by the Community.
A refusal to finance may not involve expenditure effected prior to twenty-four months preceding the Commission's written communication of the results of those checks to the Member State concerned. However, this provision shall not apply to the financial consequences:
- of irregularities as referred to in Article 8(2);
- concerning national aids, or infringements, for which the procedures referred to in Articles 93 and 169 of the Treaty have been initiated.
3. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 13. Those rules shall cover in particular the attestation of the accounts referred to in paragraph 1 and the procedures relating to the decisions referred to in paragraph 2.'
'1. Aid shall be granted to producers of casein and caseinates only if these products
- have been produced from skimmed milk of Community origin or raw casein extracted from milk of Community origin,
- meet the composition requirements of Annex I, II or III,
- are packaged as stipulated in Article 3.
2. Aid shall be paid on the basis of a written application to the competent authority stating:
(i) the producer's name and address,
(ii) the quantity of casein or caseinates covered by the application and its quality,
(iii) the relevant production batch numbers.
3. For the purposes of this Regulation a production batch must consist of products of identical quality made on the same day. However, where the total production of casein and caseinates of the establishment concerned during the previous calendar year did notexceed 1 000 tonnes, the production batch may consist of products made during the same calendar week.'
'3. Aid shall be granted at the rate applicable on the day of production of the casein or caseinates.'
'The Member States shall take all the necessary steps to ensure that:
- the products defined in the Annexes may be marketed only if they conform to the definitions and rules laid down in this Directive and the Annexes thereto, and
- products which do not satisfy the criteria laid down in the Annexes are named and labelled in such a way that the buyer is not misled as to their nature, quality or use.'
The procedure for clearing accounts
The correction of NLG 32 746 529 in respect of the production of caseinates containing AAS
The first plea
The second, third and fourth pleas
The correction of NLG 6 436 077 in respect of the production of EMST
The first plea
The second, third and fourth pleas
50 On that ground, and for the reasons set out in detail in paragraphs 119 to 121 and 123 to 127 of the Opinion of the Advocate General, the Commission cannot be charged with having failed to observe the principles of cooperation in good faith, consultation, the agreed preventive approach and legal certainty, as well as the requirement to provide a statement of reasons. It follows that the second, third and fourth pleas concerning EMST must also be dismissed.
Costs
51 Under Article 69(2) of the Rules of Procedure, the unsuccessful party is to be ordered to pay the costs, if they have been applied for in the successful party's pleadings. Each party asked that the other be ordered to pay the costs. Since the Commission was unsuccessful in its submission with respect to the sum of NLG 32 746 529 and the Kingdom of the Netherlands was unsuccessful in its plea with respect to the sum of NLG 6 436 077, the Commission must be ordered to pay five sixths of the costs and the Kingdom of the Netherlands one sixth of the costs. Under the first subparagraph of Article 69(4) of the Rules of Procedure, the French Republic, which intervened in these proceedings, is to bear its own costs.
On those grounds,
THE COURT (Fifth Chamber)
hereby:
1. Annuls Commission Decision 1999/187/EC of 3 February 1999 on the clearance of the accounts presented by the Member States in respect of the expenditure for 1995 of the Guarantee Section of the European Agricultural Guidance and Guarantee Fund, in so far as it excludes the Kingdom of the Netherlands from Community financing in the sum of NLG 32 746 529 by way of aid for the processing of skimmed milk into casein and caseinates;
2. Dismisses the remainder of the action by the Kingdom of the Netherlands;
3. Orders the Commission of the European Communities to pay five sixths of the costs and the Kingdom of the Netherlands to pay one sixth of the cost;
4. Orders the French Republic to bear its own costs.
Jann
Wathelet Timmermans
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Delivered in open court in Luxembourg on 6 June 2002.
R. Grass P. Jann
Registrar President of the Fifth Chamber
1: Language of the case: Dutch.