Judgment_paragraph 94 · Commission of the European Communities v IIC Informations-Industrie Consulting GmbH (T-500/04)

94In that connection, the Court has held that, according to a fundamental principle of Community financial aid, the Community can subsidise only expenses which have actually been incurred. Accordingly, in order for the Commission to be able to carry out checks, the beneficiaries of such aid must show that the costs attributed to subsidised projects are genuine, as the provision by those beneficiaries of reliable information is indispensable for the successful operation of the system of control and evidence established in order to check whether the conditions for the grant of aid are satisfied. It is not sufficient, therefore, to show that a project has been carried out for the allocation of a specific subsidy to be justified. The beneficiary of the aid must, in addition, produce evidence that he has incurred the expenses declared in accordance with the conditions laid down for the grant of the aid concerned, with only those expenses which are properly justified being capable of being regarded as eligible. His obligation to satisfy the prescribed financial conditions is even one of his essential commitments and accordingly determines the allocation of Community financial aid (see, to that effect, Case C-240/03 P Comunità montana della Valnerina v Commission [2006] ECR I-731, paragraphs 69, 76, 78, 86 and 97).

Commission of the European Communities v IIC Informations-Industrie Consulting GmbH (T-500/04)

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