Decision 2006/554

law://eu/dec/2006/554@2026-11-14

Contents

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^note, 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^note, 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^note 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^note.

(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)Under 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 judgments of the Court of Justice in cases pending on 5 April 2006 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 shall be excluded from Community financing because it does not comply with Community rules.

Article 2 #

This Decision is addressed to the Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the Portuguese Republic and the United Kingdom of Great Britain and Northern Ireland.

Member State	Audit Field	Reason	Correction	Currency	Expenditure to exclude from financing	Financial impact of this decision	Financial year
ES	Arable crops	Absence of a computerised LPIS	flat-rate 2 %	EUR	–43299,48	–43299,48	1999-2000
ES	Arable crops	Deficient aid application procedure	flat-rate 5 %	EUR	–2024643,26	–2024643,26	2002-2004
ES	Arable crops	Non-application of penalties	flat-rate 2 %	EUR	–316545,67	–316545,67	2003-2004
ES	Animal premiums — OTMS	Animals subject of financing for both purchase and destruction	one-off	EUR	–156180,00	–156180,00	2002
ES	Animal premiums — OTMS	Non-reliable administrative and accounting system to monitor and account for animals	flat-rate 10 %	EUR	–160692,00	–160692,00	2001
ES	Butterfats in food processing	Overtracing — aid paid for part of tracers added	one-off 1,5 %	EUR	–144902,68	–144902,68	2002-2005
ES	Fruit and Veg — Bananas	Weaknesses in the determination of marketed quantities, non-representative sampling in quality controls	flat-rate 2 %	EUR	–5291087,63	–5291087,63	2002-2004
ES	Fruit and Veg — processing of peaches & pears	Non-compliance with payment deadlines	one-off	EUR	–643142,42	–643142,42	2002
ES	POSEI	Non-compliance with key controls	flat-rate 5 %	EUR	–415161,50	–415161,50	2003-2004
ES	POSEI	Non-compliance with payment deadlines	one-off	EUR	–3931651,61	–3931651,61	2003-2004
ES	Wine — production potential	Deficiencies in managing production potential	flat-rate 10 %	EUR	–33357596,61	–33357596,61	2001-2004
Total ES					–46484902,86	–46484902,86
FR	Arable crops	Application of the rate of irrigation in wet regions	one-off	EUR	–7874178,00	–7874178,00	2001-2003
FR	Arable crops	Parcels not eligible for aid after grubbing of vines	one-off	EUR	–36610625,00	–36610625,00	2001-2005
FR	Arable crops	Meadows turned over in wet regions	one-off	EUR	–12521275,00	–12521275,00	2001-2005
FR	Arable crops	Penalties for aid paid unduly	one-off	EUR	–20128846,00	–20128846,00	2001-2005
FR	Olive oil — Production aid	Key controls not applied with sufficient rigour	flat-rate 2 %	EUR	–156181,66	–156181,66	2002-2004
FR	Rural Development Guarantee new measures	Weakenesses in key and secondary controls	flat-rate 5 %	EUR	–4349136,00	–4349136,00	2001-2002
FR	Rural Development Guarantee new measures	Weaknesses in controls on reduced-interest loans	flat-rate 5 %	EUR	–4331384,00	–4331384,00	2001-2002
Total FR					–85971625,66	–85971625,66
UK	Butterfats in food processing	Insufficient quantity controls on manufactured quantities	flat-rate 5 %	GBP	–1351441,25	–1351441,25	2001-2004
UK	Butterfats in food processing	Overtracing — aid paid for part of tracers added	one-off	GBP	–55534,20	–55534,20	2002-2004
UK	Export refunds and food aid outside the EU	Deficiency in the scheduling regime	flat-rate 2 %	GBP	–250887,47	–250887,47	2001-2003
UK	Export refunds and food aid outside the EU	Failure to carry out the required number of substitution controls	flat-rate 5 %	GBP	–7314,57	–7314,57	2000-2001
Total UK					–1665177,49	–1665177,49
GR	RD Guarantee accompanying maeasures	Key controls inadequately applied	flat-rate 5 %	EUR	–1795865,00	–1795865,00	2004
GR	RD Guarantee accompanying measures	Key controls inadequately applied	flat-rate 10 %	EUR	–6271694,00	–6271694,00	2002-2003
GR	RD Guarantee accompanying measures	Various weaknesses in the system for management, control and penalties	flat-rate 5 %	EUR	–6460070,00	–6460070,00	2004
Total EL					–14527629,00	–14527629,00
IE	Animal premiums — OTMS	Administrative deficiencies	flat-rate 2 %	EUR	–170297,64	–170297,64	2001-2003
Total IE					–170297,64	–170297,64
IT	Fruit and vegtable — Withdrawals	Inadequate rate of controls on composting and bio-degradation	one-off 100 %	EUR	–9107445,49	–9107445,49	2000-2002
IT	Fruit and vegtable — Withdrawals	Several weaknesses in the system of checks as instituted	flat-rate 5 %	EUR	–304839,45	–304839,45	2001-2003
IT	Public storage of meat	Late payments	one-off	EUR	–4575,54	–4575,54	2001
IT	Public storage of meat	Presence of specified risk material, removal of neck muscle, acceptance of ineligible carcases, poor storage conditions, labelling failings, reporting failings and inspection weaknesses	flat-rate 5 %	EUR	–2635067,09	–2635067,09	2001-2003
Total IT					–12051927,57	–12051927,57
PT	Fruit and vegetable — Bananas	Deficiencies in the system for checking quantities eligible for aid and in the system for checking full payment of aid to beneficiaries, lack of oversight over delegated checks	flat-rate 2 %	EUR	–257901,65	–257901,65	2002-2004
Total PT					–257901,65	–257901,65

Decision 2006/554

Decision 2006/554

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