COMMISSION IMPLEMENTING DECISION

of 15 April 2011

of excluding from European Union 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)

(notified under document C(2011) 2517)

(only the Bulgarian, Danish, Dutch, English, French, German, Greek, Italian, Portuguese, Romanian, and Spanish texts are authentic)

(2011/244/EU)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the functioning of the European Union,

Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy(1), and in particular Article 7(4) thereof,

Having regard to Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy(2), and in particular Article 31 thereof,

Having consulted the Committee on the Agricultural Funds,

Whereas:

(1) Under Article 7(4) of Regulation (EC) No 1258/1999 and Article 31 of Regulation (EC) No 1290/2005, the Commission is to carry out the necessary verifications, communicate to the Member States the results of these verifications, take note of the comments of the Member States, initiate a bilateral discussion so that an agreement may be reached with the Member States in question, and formally communicate its conclusions to them.

(2) The Member States have had an opportunity to request the launch of a conciliation procedure. That opportunity has been used in some cases and the reports issued on the outcome have been examined by the Commission.

(3) Under Regulations (EC) No 1258/1999 and (EC) No 1290/2005, only agricultural expenditure which has been incurred in a way that has not infringed European Union rules may be financed.

(4) In the light of the verifications carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil this requirement and cannot, therefore, be financed under the EAGGF Guarantee Section, the EAGF and the EAFRD.

(5) The amounts that are not recognised as being chargeable to the EAGGF Guarantee Section, the EAGF and the EAFRD should be indicated. Those amounts do not relate to expenditure incurred more than 24 months before the Commission’s written notification of the results of the verifications 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 European Union 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 judgments of the Court of Justice in cases pending on 31 December 2010 and relating to its content,

HAS ADOPTED THIS DECISION:

Article 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, under the EAGF or under the EAFRD shall be excluded from European Union financing because it does not comply with European Union rules.

Article 2

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

Done at Brussels, 15 April 2011.

For the Commission

Dacian CIOLOŞ

Member of the Commission

(1)

OJ L 160, 26.6.1999, p.103

(2)

OJ L 209, 11.8.2005, p. 1

ANNEX

MS	Measure	Financial Year	Reason	Type	%	Currency	Amount	Deductions	Financial impact
BUDGET ITEM 6701
BG	Decoupled Direct Aids	2009	Weaknesses in the functioning of LPIS-GIS	FLAT RATE	10,00	EUR	–20 848 236,79	0,00	–20 848 236,79
					TOTAL (BG)	EUR	–20 848 236,79	0,00	–20 848 236,79
DK	Fruit and Vegetables - Operational Programmes	2007	Deficient performance of the on-the-spot control	FLAT RATE	2,00	DKK	–36 186,06	0,00	–36 186,06
DK	Fruit and Vegetables - Operational Programmes	2008	Deficient performance of the on-the-spot control	FLAT RATE	2,00	EUR	–58 609,25	0,00	–58 609,25
DK	Dried Fodder	2005	Non-compliance with the minimum percentage of additional checks of operators who dried fodder has been supplied to and the late submission of the annual statistics	FLAT RATE	2,00	DKK	–81 519,23	0,00	–81 519,23
DK	Dried Fodder	2006	Non-compliance with the minimum percentage of additional checks of operators who dried fodder has been supplied to and the late submission of the annual statistics	FLAT RATE	2,00	DKK	– 384 358,59	0,00	– 384 358,59
DK	Dried Fodder (2007+)	2007	Non-compliance with the minimum percentage of additional checks of operators who dried fodder has been supplied to and the late submission of the annual statistics	FLAT RATE	2,00	DKK	– 376 720,62	0,00	– 376 720,62
DK	Dried Fodder (2007+)	2008	Non-compliance with the minimum percentage of additional checks of operators who dried fodder has been supplied to and the late submission of the annual statistics	FLAT RATE	2,00	DKK	–54 280,43	0,00	–54 280,43
					TOTAL (DK)	EUR	–58 609,25	0,00	–58 609,25
					TOTAL (DK)	DKK	– 933 064,93	0,00	– 933 064,93
ES	Meat Premiums - Ewe and Goats	2004	Late start of on-the-spot checks	FLAT RATE	2,00	EUR	–1 559 059,12	0,00	–1 559 059,12
ES	Meat Premiums - Bovines	2004	On-the-spot control weakness	FLAT RATE	5,00	EUR	–13 753,33	0,00	–13 753,33
ES	Meat Premiums - Bovines	2004	On-the-spot control weaknesses - insufficent or inadequate quality of control - inadequate control	FLAT RATE	5,00	EUR	–1 401 451,46	0,00	–1 401 451,46
ES	Meat Premiums - Ewe and Goats	2005	Late start of on-the-spot checks	FLAT RATE	2,00	EUR	–1 652 652,30	0,00	–1 652 652,30
ES	Meat Premiums - Bovines	2005	On-the-spot control weakness	FLAT RATE	5,00	EUR	–14 080,18	0,00	–14 080,18
ES	Meat Premiums - Bovines	2005	On-the-spot control weaknesses - insufficent or inadequate quality of control - inadequate control	FLAT RATE	5,00	EUR	–1 421 329,38	0,00	–1 421 329,38
ES	Meat Premiums - Bovines	2006	On-the-spot control weaknesses - insufficent or inadequate quality of control - inadequate control	FLAT RATE	5,00	EUR	–1 379 600,32	–4 082,25	–1 375 518,07
ES	Fruit and Vegetables - Operational Programmes	2006	Deficiencies in the environmental management of packaging	ONE-OFF		EUR	–2 672 816,95	0,00	–2 672 816,95
ES	Fruit and Vegetables - Operational Programmes	2007	Deficiencies in the environmental management of packaging	ONE-OFF		EUR	–16 985 313,14	0,00	–16 985 313,14
ES	Fruit and Vegetables - Operational Programmes	2008	Deficiencies in the environmental management of packaging	ONE-OFF		EUR	–17 594 421,01	0,00	–17 594 421,01
ES	Meat Premiums - Bovines	2006	On-the-spot control weaknesses	FLAT RATE	2,00	EUR	– 187 589,74	0,00	– 187 589,74
ES	Olive Oil - Production Aid	2003	Deficiencies in the controls of yields	FLAT RATE	2,00	EUR	–21 570,64	0,00	–21 570,64
ES	Olive Oil - Production Aid	2003	Incorrect technical tolerances leading to non respect of Olive GIS requirements the first year of application	FLAT RATE	5,00	EUR	–4 462,77	0,00	–4 462,77
ES	Olive Oil - Production Aid	2004	Correction of effect of flat rate correction on one-off correction	ONE-OFF		EUR	166 246,08	0,00	166 246,08
ES	Olive Oil - Production Aid	2004	Deficiencies in the controls of yields	FLAT RATE	2,00	EUR	–16 844 579,61	0,00	–16 844 579,61
ES	Olive Oil - Production Aid	2004	Incorrect calculation of sanctions	ONE-OFF		EUR	–5 230 671,00	0,00	–5 230 671,00
ES	Olive Oil - Production Aid	2004	Incorrect technical tolerances leading to non respect of Olive GIS requirements the first year of application	FLAT RATE	5,00	EUR	–5 678 034,36	0,00	–5 678 034,36
ES	Olive Oil - Production Aid	2005	Correction of effect of flat rate correction on one-off correction	ONE-OFF		EUR	78 467,60	0,00	78 467,60
ES	Olive Oil - Production Aid	2005	Deficiencies in the controls of yields	FLAT RATE	2,00	EUR	–19 830 448,92	0,00	–19 830 448,92
ES	Olive Oil - Production Aid	2005	Incorrect calculation of sanctions	ONE-OFF		EUR	–3 923 380,00	0,00	–3 923 380,00
ES	Olive Oil - Production Aid	2005	Incorrect technical tolerances leading to non respect of Olive GIS requirements the first year of application	FLAT RATE	5,00	EUR	–89 880,78	0,00	–89 880,78
ES	Olive Oil - Production Aid	2006	Correction of effect of flat rate correction on one-off correction	ONE-OFF		EUR	11 060,06	0,00	11 060,06
ES	Olive Oil - Production Aid	2006	Deficiencies in the controls of yields	FLAT RATE	2,00	EUR	–19 030 403,00	0,00	–19 030 403,00
ES	Olive Oil - Production Aid	2006	Incorrect calculation of sanctions	ONE-OFF		EUR	– 553 003,00	0,00	– 553 003,00
ES	Olive Oil - Production Aid	2006	Incorrect technical tolerances leading to non respect of Olive GIS requirements the first year of application	FLAT RATE	5,00	EUR	–10 623,55	0,00	–10 623,55
					TOTAL (ES)	EUR	– 115 843 350,82	–4 082,25	– 115 839 268,57
FR	Direct Payments	2007	Weaknesses in the administrative procedure	ONE-OFF		EUR	– 724 823,68	0,00	– 724 823,68
FR	Direct Decoupled Aid (single payment scheme - SPS)	2008	Weaknesses in the administrative procedure	ONE-OFF		EUR	– 872 782,68	0,00	– 872 782,68
FR	Decoupled Direct Aids	2009	Weaknesses in the administrative procedure	ONE-OFF		EUR	– 727 988,33	0,00	– 727 988,33
					TOTAL (FR)	EUR	–2 325 594,69	0,00	–2 325 594,69
GB	Export refunds - Other	2006	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	– 339,41	0,00	– 339,41
GB	Export refunds - Non-Annex I	2006	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–1 551,62	0,00	–1 551,62
GB	Export refunds - Sugar and isoglucose	2006	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–2 957,78	0,00	–2 957,78
GB	Export refunds - Other	2007	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	– 224,14	0,00	– 224,14
GB	Export refunds - Non-Annex I	2007	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–1 024,64	0,00	–1 024,64
GB	Export refunds - Sugar and isoglucose	2007	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–1 953,22	0,00	–1 953,22
GB	Export refunds - Sugar and isoglucose	2008	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	– 153,04	0,00	– 153,04
GB	Export refunds - Other	2008	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–17,57	0,00	–17,57
GB	Export refunds - Non-Annex I	2008	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–80,28	0,00	–80,28
GB	Export refunds - Sugar and isoglucose	2009	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–7,57	0,00	–7,57
GB	Export refunds - Other	2009	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–0,87	0,00	–0,87
GB	Export refunds - Non-Annex I	2009	Weaknesses in the procedure for certification of exit	FLAT RATE	5,00	EUR	–3,97	0,00	–3,97
GB	Fruit and Vegetables - Operational Programmes	2006	Deficiencies in key controls on recognition and operational programmes	FLAT RATE	5,00	EUR	– 508 223,82	0,00	– 508 223,82
GB	Fruit and Vegetables - Operational Programmes	2006	Deficiencies in key controls on recognition and operational programmes	ONE-OFF		EUR	–6 171 594,78	0,00	–6 171 594,78
GB	Fruit and Vegetables - Operational Programmes	2007	Deficiencies in key controls on recognition and operational programmes	FLAT RATE	5,00	EUR	– 999 359,83	0,00	– 999 359,83
GB	Fruit and Vegetables - Operational Programmes	2007	Deficiencies in key controls on recognition and operational programmes	ONE-OFF		EUR	–12 135 684,18	0,00	–12 135 684,18
GB	Fruit and Vegetables - Operational Programmes	2008	Deficiencies in key controls on recognition and operational programmes	ONE-OFF		EUR	–6 589 732,17	0,00	–6 589 732,17
GB	Fruit and Vegetables - Operational Programmes	2008	Deficiencies in key controls on recognition and operational programmes	FLAT RATE	5,00	EUR	– 542 656,97	0,00	– 542 656,97
GB	Exceptional support measures	2009	Rendering and transport costs unduly charged to the EU budget; dead animals claimed for EU financing	ONE-OFF		EUR	– 284 317,36	0,00	– 284 317,36
					TOTAL (GB)	EUR	–27 239 883,22	0,00	–27 239 883,22
GR	Additional Amounts of Aid	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–3 685 863,71	0,00	–3 685 863,71
GR	Other Direct Aid - Sugar - other than Export refunds	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	– 130 504,79	0,00	– 130 504,79
GR	Other Direct Aid - Direct Payments	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–1 497 576,86	0,00	–1 497 576,86
GR	Other Direct Aid - Cotton	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–9 155 093,09	0,00	–9 155 093,09
GR	Other Direct Aid - Article 69 of Reg.1782/2003 - except Ovines and Bovines	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–3 310 395,31	0,00	–3 310 395,31
GR	Direct Decoupled Aid (single payment scheme - SPS)	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–91 632 386,41	0,00	–91 632 386,41
GR	Other Direct Aids	2009	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	5 928,18	0,00	5 928,18
GR	Other Direct Aid - Article 69 of Reg.1782/2003 - except Ovines and Bovines	2009	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	1 407,54	0,00	1 407,54
GR	Additional Amounts of Aid	2009	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	2 668,68	0,00	2 668,68
GR	Decoupled Direct Aids	2009	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	– 810 049,67	0,00	– 810 049,67
GR	Olive Oil - Production Aid	2004	Weaknesses in the controls of mills and in the olive cultivation GIS	FLAT RATE	10,00	EUR	– 193 490,20	0,00	– 193 490,20
GR	Olive Oil - Production Aid (2007+)	2005	Weaknesses in the controls of mills and in the olive cultivation GIS	FLAT RATE	15,00	EUR	– 283 443,46	0,00	– 283 443,46
GR	Olive Oil - Production Aid (2007+)	2005	Weaknesses in the controls of mills and in the olive cultivation GIS	FLAT RATE	10,00	EUR	–43 471 909,07	0,00	–43 471 909,07
GR	Olive Oil - Production Aid (2007+)	2006	Weaknesses in the controls of mills and in the olive cultivation GIS	FLAT RATE	10,00	EUR	– 447 353,51	0,00	– 447 353,51
GR	Olive Oil - Production Aid (2007+)	2006	Weaknesses in the controls of mills and in the olive cultivation GIS	FLAT RATE	15,00	EUR	–89 134 155,41	– 215 120,80	–88 919 034,62
GR	Olive Oil - Financement GIS	2004	Ineligible expenditures concerning activities carried out after 31 October 2003	ONE-OFF		EUR	–3 437 468,51	0,00	–3 437 468,51
GR	Olive Oil - Financement GIS	2006	Ineligible expenditures concerning activities carried out after 31 October 2003	ONE-OFF		EUR	– 263 620,00	0,00	– 263 620,00
					TOTAL (GR)	EUR	– 247 443 305,60	– 215 120,80	– 247 228 184,80
IT	Public Storage - Sugar	2005	Booking the sugar intake in 2005 not subject to physical movement	ONE-OFF		EUR	– 797 560,00	0,00	– 797 560,00
IT	Public Storage - Sugar	2006	35 % increase in storage costs	FLAT RATE	10,00	EUR	– 171 418,00	0,00	– 171 418,00
IT	Public Storage - Sugar	2006	Late inventory controls	FLAT RATE	5,00	EUR	– 781 044,00	0,00	– 781 044,00
IT	Public Storage - Sugar	2007	35 % increase in storage costs	FLAT RATE	10,00	EUR	– 182 006,00	0,00	– 182 006,00
IT	Public Storage - Sugar	2008	35 % increase in storage costs	FLAT RATE	10,00	EUR	– 111 062,00	0,00	– 111 062,00
IT	Public Storage - Sugar	2009	35 % increase in storage costs	FLAT RATE	10,00	EUR	–34 547,00	0,00	–34 547,00
					TOTAL (IT)	EUR	–2 077 637,00	0,00	–2 077 637,00
NL	Fruit and Vegetables - Operational Programmes	2006	Ineligible costs for printing on packages and expenditures of a producer organisation with decentralised marketing	ONE-OFF		EUR	–5 166 882,80	0,00	–5 166 882,80
NL	Fruit and Vegetables - Operational Programmes	2007	Ineligible costs for printing on packages and expenditures of a producer organisation with decentralised marketing	ONE-OFF		EUR	–10 543 404,52	0,00	–10 543 404,52
NL	Fruit and Vegetables - Operational Programmes	2008	Ineligible costs for printing on packages and expenditures of a producer organisation with decentralised marketing	ONE-OFF		EUR	–6 981 120,47	0,00	–6 981 120,47
					TOTAL (NL)	EUR	–22 691 407,79	0,00	–22 691 407,79
PT	Other Direct Aid - Bovines	2007	Weeknesses established in the functioning of IT system	ONE-OFF		EUR	– 415 669,10	0,00	– 415 669,10
PT	Other Direct Aid - Bovines	2008	Weeknesses established in the functioning of IT system	ONE-OFF		EUR	– 304 813,73	0,00	– 304 813,73
					TOTAL (PT)	EUR	– 720 482,83	0,00	– 720 482,83
RO	Other Direct Aid - Energy Crops	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	FLAT RATE	10,00	EUR	–6 694,99	0,00	–6 694,99
RO	Other Direct Aid - Energy Crops	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	ONE-OFF		EUR	– 108 740,61	0,00	– 108 740,61
RO	Other Direct Aids	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	ONE-OFF		EUR	–52 831,05	0,00	–52 831,05
RO	Decoupled Direct Aids	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	FLAT RATE	10,00	EUR	– 489 527,30	0,00	– 489 527,30
RO	Decoupled Direct Aids	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	ONE-OFF		EUR	–38 620 445,36	0,00	–38 620 445,36
					TOTAL (RO)	EUR	–39 278 239,32	0,00	–39 278 239,32
					TOTAL (6701)	EUR	– 478 526 747,31	– 219 203,05	– 478 307 544,26
					TOTAL (6701)	DKK	– 933 064,93	0,00	– 933 064,93
BUDGET ITEM 6711
BG	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2009	Weaknesses in the functioning of LPIS-GIS	FLAT RATE	10,00	EUR	–1 204 509,85	0,00	–1 204 509,85
BG	Rural Development EAFRD Complement to direct payment (2007-2013)	2009	Weaknesses in the functioning of LPIS-GIS and on-the-spot controls	FLAT RATE	5,00	EUR	–2 490 360,23	0,00	–2 490 360,23
					TOTAL (BG)	EUR	–3 694 870,08	0,00	–3 694 870,08
GR	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2007	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–3 154 596,63	0,00	–3 154 596,63
GR	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2008	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	–8 414 084,26	0,00	–8 414 084,26
GR	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2009	Incorrect information in the LPIS/GIS and weaknesses in the on-the-spot controls	FLAT RATE	5,00	EUR	– 597 155,10	0,00	– 597 155,10
					TOTAL (GR)	EUR	–12 165 835,99	0,00	–12 165 835,99
RO	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	FLAT RATE	10,00	EUR	–7 246 383,51	0,00	–7 246 383,51
RO	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	ONE-OFF		EUR	–10 512 529,35	0,00	–10 512 529,35
RO	Rural Development EAFRD Axis 2 (2007-2013, area related measures)	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	ONE-OFF		EUR	– 877 717,21	0,00	– 877 717,21
RO	Rural Development EAFRD Complement to direct payment (2007-2013)	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	FLAT RATE	10,00	EUR	–10 975 412,09	0,00	–10 975 412,09
RO	Rural Development EAFRD Complement to direct payment (2007-2013)	2009	Weaknesses in functioning of LPIS-GIS, in the performance of the on-the-spot/field visits following administrative cross-checks	ONE-OFF		EUR	–6 008 420,75	0,00	–6 008 420,75
					TOTAL (RO)	EUR	–35 620 462,91	0,00	–35 620 462,91
					TOTAL (6711)	EUR	–51 481 168,98	0,00	–51 481 168,98
BUDGET ITEM 05070107
DE	Irregularities	2009	Reimbursement concerning irregularity cases	ONE-OFF		EUR	508 165,76	0,00	508 165,76
					TOTAL (DE)	EUR	508 165,76	0,00	508 165,76
					TOTAL (05070107)	EUR	508 165,76	0,00	508 165,76