Commission Implementing Decision of 4 April 2014 on 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(2014) 2008)

Commission Implementing Decision of 4 April 2014 on 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(2014) 2008) (Only the Danish, English, Finnish, French, German, Greek, Italian, Portuguese, Romanian, Slovenian, Spanish and Swedish texts are authentic) (2014/191/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 OJ L 160, 26.6.1999, p. 103. , 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 OJ L 209, 11.8.2005, p. 1. , 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 1 December 2013 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 Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Portuguese Republic, Romania, the Republic of Slovenia, the Republic of Finland, the United Kingdom of Great Britain and Northern Ireland. Done at Brussels, 4 April 2014. For the Commission Dacian Cioloș Member of the Commission

Annex

ANNEX MSMeasureFinancial YearReasonType%CurrencyAmountDeductionsFinancial impact BUDGET ITEM: 6701 DKFruit and Vegetables — Operational Programmes2008Severe weaknesses in control of several recognition criteria and deficiencies in administrative and on-the-spot checksFLAT RATE10,00 %EUR– 287632,190,00– 287632,19DKFruit and Vegetables — Operational Programmes2008Ineligible costs for organic plant protection materialsONE-OFFEUR– 4765,480,00– 4765,48DKFruit and Vegetables — Operational Programmes2008Ineligible producer organisationONE-OFFEUR– 181675,810,00– 181675,81DKFruit and Vegetables — Operational Programmes2009Severe weaknesses in control of several recognition criteria and deficiencies in administrative and on-the-spot checksFLAT RATE10,00 %EUR– 317109,840,00– 317109,84DKFruit and Vegetables — Operational Programmes2009Ineligible producer organisationONE-OFFEUR– 203273,580,00– 203273,58DKFruit and Vegetables — Operational Programmes2009Ineligible costs for organic plant protection materialsONE-OFFEUR– 27548,700,00– 27548,70DKFruit and Vegetables — Operational Programmes2010Severe weaknesses in control of several recognition criteria and deficiencies in administrative and on-the-spot checksFLAT RATE10,00 %EUR0,960,000,96DKFruit and Vegetables — Operational Programmes2010Ineligible producer organisationONE-OFFEUR– 1183,250,00– 1183,25 DKFruit and Vegetables — Operational Programmes2010Ineligible costs for organic plant protection materialsONE-OFFEUR– 9,570,00– 9,57DKCross Compliance20096 GAEC missing, no check on minimum requirements for plant protection products, CY 2008FLAT RATE5,00 %EUR– 4879877,97– 7357,88– 4872520,09DKCross Compliance20106 GAEC missing, no check on minimum requirements for plant protection products, CY 2008FLAT RATE5,00 %EUR– 1753,74– 4,49– 1749,25DKCross Compliance2010Incorrect calculation of sanctions, CY 2009ONE-OFFEUR– 31895,68– 301,59– 31594,09DKCross Compliance20116 GAEC missing, no check on minimum requirements for plant protection products, CY 2008FLAT RATE5,00 %EUR– 119,580,00– 119,58DKCross Compliance2011Incorrect calculation of sanctions, CY 2010ONE-OFFEUR– 3230,670,00– 3230,67TOTAL DKEUR– 5940075,10– 7663,96– 5932411,14ESIrregularities2007Reimbursement due to the incorrect application of the 50/50 rule for 4 casesONE-OFFEUR721332,880,00721332,88ESIrregularities2007Non-reporting of interest in the Annex III table of financial year 2006ONE-OFFEUR– 1360592,370,00– 1360592,37ESIrregularities2008Non-reporting of interest in the Annex III table of financial year 2007ONE-OFFEUR– 230803,770,00– 230803,77ESIrregularities2011Non-respect of Article 32(8)(a) of R.1290/2005ONE-OFFEUR– 165390,130,00– 165390,13

ESIrregularities2011Non-respect of Article 32(4)(a) of R.1290/2005ONE-OFFEUR– 754473,760,00– 754473,76ESIrregularities2011Incorrect date of primary administrative or judicial finding in the Annex III table (case 02220090118)ONE-OFFEUR– 350053,180,00– 350053,18ESIrregularities2011Negligence in the recovery of a debt caseONE-OFFEUR– 6447032,480,00– 6447032,48TOTAL ESEUR– 8587012,810,00– 8587012,81FICross Compliance20071 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR144,790,00144,79FICross Compliance20071 GAEC missing, lenient sanctioning system, CY 2006FLAT RATE2,00 %EUR52,130,0052,13FICross Compliance20071 GAEC missing, lenient sanctioning system, CY 2006FLAT RATE2,00 %EUR– 25717,740,00– 25717,74FICross Compliance2007Use of 0 % sanction, CY 2006ONE-OFFEUR– 45508,78– 54,61– 45454,17FICross Compliance20081 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE0,00 %EUR221,440,00221,44FICross Compliance20081 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR146,350,00146,35FICross Compliance20081 GAEC missing, lenient sanctioning system, CY 2006FLAT RATE2,00 %EUR2726,86– 2,992729,85 FICross Compliance20081 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR– 1088571,54– 1585,04– 1086986,50FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE0,00 %EUR119,470,00119,47FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR– 0,190,00– 0,19FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR– 219,63– 86,94– 132,69FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE2,00 %EUR– 1090265,16– 3306,07– 1086959,09FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2006FLAT RATE2,00 %EUR– 0,590,00– 0,59FICross Compliance20101 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE0,00 %EUR5,210,005,21FICross Compliance20101 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR– 91,710,00– 91,71FICross Compliance20101 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE2,00 %EUR– 159,460,00– 159,46TOTAL FIEUR– 2247118,55– 5035,65– 2242082,90 FRFruit and Vegetables — Operational Programmes2007Various ineligible aid paymentsONE-OFFEUR– 698322,850,00– 698322,85FRFruit and Vegetables — Operational Programmes2008Various ineligible aid paymentsONE-OFFEUR– 1600581,030,00– 1600581,03FRFruit and Vegetables — Operational Programmes2009Various ineligible aid paymentsONE-OFFEUR– 3201489,940,00– 3201489,94FRFruit and Vegetables — Operational Programmes2010Various ineligible aid paymentsONE-OFFEUR– 219199,040,00– 219199,04FRFruit and Vegetables — Operational Programmes2011Various ineligible aid paymentsONE-OFFEUR– 13068,190,00– 13068,19FREntitlements2007Undue allocation of National ReserveFLAT RATE10,00 %EUR– 12098866,64– 72593,20– 12026273,44FREntitlements2007Undue allocation of National ReserveONE-OFFEUR– 47626478,62– 95252,96– 47531225,66FREntitlements2008Undue allocation of National ReserveFLAT RATE10,00 %EUR– 12098866,64– 60494,33– 12038372,31FREntitlements2008Undue allocation of National ReserveONE-OFFEUR– 47626478,62– 238132,39– 47388346,23FREntitlements2009Undue allocation of National ReserveFLAT RATE10,00 %EUR– 12098866,64– 60494,33– 12038372,31FREntitlements2009Undue allocation of National ReserveONE-OFFEUR– 47626478,62– 238132,39– 47388346,23FREntitlements2010Undue allocation of National ReserveFLAT RATE10,00 %EUR– 12098866,64– 24197,73– 12074668,91

FREntitlements2010Undue allocation of National ReserveONE-OFFEUR– 47626478,62– 285758,87– 47340719,75FRCross Compliance2009Reimbursement for correction included in Decision 43 linked to audit XC/2009/003/FRFLAT RATE2,00 %EUR157245,530,00157245,53FRCross Compliance2010Reimbursement for correction included in Decision 43 linked to audit XC/2009/003/FRFLAT RATE2,00 %EUR26673,710,0026673,71TOTAL FREUR– 244450122,85– 1075056,20– 243375066,65GBFruit and Vegetables — Operational Programmes2006Bookkeeping/accounting errorsONE-OFFEUR– 68009,010,00– 68009,01GBFruit and Vegetables — Operational Programmes2007Bookkeeping/accounting errorsONE-OFFEUR– 62104,180,00– 62104,18GBFruit and Vegetables — Operational Programmes2008Bookkeeping/accounting errorsONE-OFFEUR– 33722,850,00– 33722,85GB_Recoveries2009Bookkeeping/accounting errorsONE-OFFEUR– 55487,500,00– 55487,50GB_Recoveries2010Bookkeeping/accounting errorsONE-OFFEUR– 46754,530,00– 46754,53GB_Recoveries2011Bookkeeping/accounting errorsONE-OFFEUR– 299733,080,00– 299733,08 GBOther Direct Aid — Article 68-72 of Reg. 73/20092011Non-application of reductions/exclusions and undue payments to non-identified animalsONE-OFFEUR– 194394,220,00– 194394,22GBCross Compliance2008Ineffective control of SMR 8a, CY 2007FLAT RATE5,00 %EUR– 257134,000,00– 257134,00GBCross Compliance2008Non or incorrect application of regulatory sanctions, CY 2007ONE-OFFEUR– 757135,000,00– 757135,00GBCross Compliance2009Ineffective control of SMR 8a, CY 2008FLAT RATE5,00 %EUR– 240326,000,00– 240326,00GBCross Compliance2009Non or incorrect application of regulatory sanctions, CY 2008ONE-OFFEUR– 423317,000,00– 423317,00GBCross Compliance2010Ineffective control of SMR 8a, CY 2009FLAT RATE2,00 %EUR– 252305,000,00– 252305,00GBCross Compliance2010Non or incorrect application of regulatory sanctions, CY 2009ONE-OFFEUR– 31208,000,00– 31208,00GBCross Compliance2009Lenient sanctioning system for SMR 7 and 8, no follow-up of minor NC, ineffective control of GAEC, CY 2008FLAT RATE5,00 %EUR– 2949043,26– 59941,88– 2889101,38GBCross Compliance2010Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR– 1175238,88– 24310,41– 1150928,47GBCross Compliance2010Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR1901,100,001901,10 GBCross Compliance2010Lenient sanctioning system for SMR 7 and 8, no follow-up of minor non-compliance, ineffective control of GAEC, CY 2008FLAT RATE5,00 %EUR– 4961,22– 34,71– 4926,51GBCross Compliance2011Ineffective control of GAEC and SMR 2, 4 and 8, CY 2010FLAT RATE2,00 %EUR795,260,00795,26GBCross Compliance2011Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR– 58,630,00– 58,63GBCross Compliance2011Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR– 879,960,00– 879,96GBCross Compliance2011Ineffective control of GAEC and SMR 2, 4 and 8, CY 2010FLAT RATE2,00 %EUR– 1164633,01– 388,79– 1164244,22GBCross Compliance2011Lenient sanctioning system for SMR 7 and 8, no follow-up of minor non-compliance, ineffective control of GAEC, CY 2008FLAT RATE5,00 %EUR– 440,270,00– 440,27TOTAL GBEUR– 8014189,24– 84675,79– 7929513,45GRFruit and Vegetables — Peaches and Pears Processing2008Deficient physical checks on 5 % of the areas and incomplete information on products sold on the fresh market in Producer Organisation's recordsFLAT RATE10,00 %EUR– 682302,860,00– 682302,86TOTAL GREUR– 682302,860,00– 682302,86

ITOther Direct Aid — Article 69 of Reg. 1782/2003 — only Ovines and Bovines2007Insufficient quality and inadequate timing of the on-the-spot checks, weaknesses in the control of eligibility of claimed animals, wrong application of sanctions for bovineFLAT RATE5,00 %EUR– 1639734,17– 4187,86– 1635546,31ITEntitlements2007Incorrect application of the regulation regarding the allocation of the special entitlementsONE-OFFEUR– 475405,85– 2852,44– 472553,41ITOther Direct Aid — Article 69 of Reg. 1782/2003 — only Ovines and Bovines2008Insufficient quality and inadequate timing of the on-the-spot checks, weaknesses in the control of eligibility of claimed animals, wrong application of sanctions for bovineFLAT RATE5,00 %EUR– 1697012,09– 8100,59– 1688911,50ITEntitlements2008Incorrect application of the regulation regarding the allocation of the special entitlementsONE-OFFEUR– 577691,90– 3466,14– 574225,76ITOther Direct Aid — Article 69 of Reg. 1782/2003 — only Ovines and Bovines2009Insufficient quality and inadequate timing of the on-the-spot checks, weaknesses in the control of eligibility of claimed animals, wrong application of sanctions for bovineFLAT RATE5,00 %EUR– 1701995,620,00– 1701995,62ITEntitlements2009Incorrect application of the regulation regarding the allocation of the special entitlementsONE-OFFEUR– 279114,770,00– 279114,77ITEntitlements2010Incorrect application of the regulation regarding the allocation of the special entitlementsONE-OFFEUR– 534365,660,00– 534365,66ITAccreditation Paying Agency2010deficiencies in the accreditation criteria for EAGF (debtors)FLAT RATE16,00 %EUR– 623731,000,00– 623731,00 ITAccreditation Paying Agency2010deficiencies in the accreditation criteria for EAGFFLAT RATE16,00 %EUR– 398672,000,00– 398672,00ITClearance of accounts — 50/50 rule Clearance2006Reimbursement following the judgment of Court of Justice in case T-267/07ONE-OFFEUR2114199,160,002114199,16TOTAL ITEUR– 58 13. 523,90– 18607,03– 5794916,87PTExport refunds — Non-Annex I2009Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 6321,770,00– 6321,77PTExport refunds — other2009Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 172665,340,00– 172665,34PTExport refunds — Sugar and isoglucose2009Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 89,640,00– 89,64PTExport refunds — Non-Annex I2010Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 14305,090,00– 14305,09PTExport refunds — other2010Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 240513,800,00– 240513,80PTExport refunds — Sugar and isoglucose2010Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 386,400,00– 386,40PTExport refunds — Non-Annex I2011Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 5946,750,00– 5946,75

PTExport refunds — other2011Deficiencies in the quality of the physical controls and in their reporting; failure to carry out seal and substitution controlsFLAT RATE5,00 %EUR– 183177,640,00– 183177,64PTOther Direct Aid — Ewe and Goats2007Unsatisfactory quality of the on-the-spot checks for CY 2006, 2007 and 2008; late start of on-the-spot checks for CY 2007 and 2008; payment of unidentified animals for CY 2006 and 2007FLAT RATE5,00 %EUR– 1356820,10– 41,59– 1356778,51PTOther Direct Aid — Ewe and Goats2008Unsatisfactory quality of the on-the-spot checks for CY 2006, 2007 and 2008; late start of on-the-spot checks for CY 2007 and 2008; payment of unidentified animals for CY 2006 and 2007FLAT RATE5,00 %EUR– 1272636,940,00– 1272636,94PTOther Direct Aid — Ewe and Goats2009Unsatisfactory quality of the OTSC for CY 2006, 2007 and 2008; late start of OTSC for CY 2007 and 2008; payment of unidentified animals for CY 2006 and 2007FLAT RATE5,00 %EUR– 1267788,940,00– 1267788,94PTOther Direct Aid — Ewe and Goats2010Unsatisfactory quality of the on-the-spot checks for CY 2006, 2007 and 2008; late start of on-the-spot checks for CY 2007 and 2008; payment of unidentified animals for CY 2006 and 2007FLAT RATE5,00 %EUR– 44,730,00– 44,73PTOther Direct Aid — Ewe and Goats2011Unsatisfactory quality of the on-the-spot checks for CY 2006, 2007 and 2008; late start of on-the-spot checks for CY 2007 and 2008; payment of unidentified animals for CY 2006 and 2007FLAT RATE5,00 %EUR– 620,760,00– 620,76 PTCross Compliance2007Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, farmers without animals, CY 2006FLAT RATE5,00 %EUR– 412896,09– 13715,18– 399180,91PTCross Compliance2007Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11, ineffective checks on 6-8, 16-18 and lenient sanction system, farmers with animals, CY 2006FLAT RATE10,00 %EUR– 2466398,82– 94162,81– 2372236,01PTCross Compliance2008Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, farmers without animals, CY 2007FLAT RATE5,00 %EUR– 811952,21– 46814,35– 765137,86PTCross Compliance2008Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11, ineffective checks on 6-8, 16-18 and lenient sanction system, farmers with animals, CY 2007FLAT RATE10,00 %EUR– 3535313,88– 208399,51– 3326914,37PTCross Compliance2009Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, CY 2008FLAT RATE5,00 %EUR– 2978076,83– 151490,51– 2826586,32 PTCross Compliance2010Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, CY 2008FLAT RATE5,00 %EUR– 52701,86– 6051,95– 46649,91TOTAL PTEUR– 14778657,59– 520675,90– 14257981,69ROCross Compliance2008Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2007FLAT RATE5,00 %EUR– 634324,17– 69550,07– 564774,10ROCross Compliance2009Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2008FLAT RATE5,00 %EUR– 1579209,93– 122547,37– 1456662,56ROCross Compliance2009Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2007FLAT RATE5,00 %EUR– 7557,46– 9154,941597,48ROCross Compliance2010Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR189,500,00189,50ROCross Compliance2010Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR– 4023,090,00– 4023,09ROCross Compliance2010Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR– 1226850,84– 139,75– 1226711,09ROCross Compliance2010Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2008FLAT RATE5,00 %EUR– 10898,89– 10206,73– 692,16

ROCross Compliance2010Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2007FLAT RATE5,00 %EUR2764,61– 493,123257,73ROCross Compliance2011Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR1,350,001,35ROCross Compliance2011Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR– 250,640,00– 250,64ROCross Compliance2011Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2008FLAT RATE5,00 %EUR4873,620,004873,62TOTAL ROEUR– 3455285,94– 212091,98– 3243193,96SICross Compliance2006Lenient sanction system, 4 GAEC missing, CY 2005FLAT RATE5,00 %SIT– 10718970,58– 414437,68– 10304532,90SICross Compliance2007Lenient sanction system, 4 GAEC missing, CY 2005FLAT RATE5,00 %EUR– 147,83– 0,07– 147,76SICross Compliance2007Lenient sanction system, 4 GAEC missing, CY 2006FLAT RATE5,00 %EUR– 127940,81– 935,76– 127005,05SICross Compliance2008Lenient sanction system, 4 GAEC missing, CY 2005FLAT RATE5,00 %EUR0,050,000,05SICross Compliance2008Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR535,780,00535,78 SICross Compliance2008Lenient sanction system, 4 GAEC missing, CY 2005FLAT RATE5,00 %EUR– 23,610,00– 23,61SICross Compliance2008Lenient sanction system, 4 GAEC missing, CY 2006FLAT RATE5,00 %EUR– 393,36– 1,86– 391,50SICross Compliance2008Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR– 279213,39– 12630,25– 266583,14SICross Compliance2009Lenient sanction system, 4 GAEC missing, CY 2006FLAT RATE5,00 %EUR0,590,000,59SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR692,450,00692,45SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR68,690,0068,69SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR– 701,41– 28,05– 673,36SICross Compliance2009Lenient sanction system, 4 GAEC missing, CY 2006FLAT RATE5,00 %EUR– 44,03– 0,16– 43,87SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR– 350086,56– 6095,01– 343991,55 SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR19,550,0019,55SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR30,660,0030,66SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR958,470,00958,47SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR– 2761,46– 138,02– 2623,44SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR– 607,46– 10,74– 596,72SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 413940,70– 742,42– 413198,28SICross Compliance2011Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR– 35,310,00– 35,31SICross Compliance2011Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR2,850,002,85SICross Compliance2011Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR4,890,004,89

SICross Compliance2011Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 569,660,00– 569,66SICross Compliance2012Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR27,060,0027,06SICross Compliance2012Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 195,930,00– 195,93TOTAL SISIT– 10718970,58– 414437,68– 10304532,90TOTAL SIEUR– 1174320,48– 20582,34– 1153738,14TOTAL 6701SIT– 10718970,58– 414437,68– 10304532,90TOTAL 6701EUR– 295142609,32– 1944388,85– 293198220,47 BUDGET ITEM: 6711 DERural Development EAFRD Axis 1+3 — Investment orientated measures (2007-2013)2008Weakness in project selectionFLAT RATE10,00 %EUR– 239484,150,00– 239484,15DERural Development EAFRD Axis 1+3 — Investment orientated measures (2007-2013)2009Weakness in project selectionFLAT RATE10,00 %EUR– 1638636,950,00– 1638636,95DERural Development EAFRD Axis 1+3 — Investment orientated measures (2007-2013)2010Weakness in project selectionFLAT RATE10,00 %EUR– 781262,310,00– 781262,31 DERural Development EAFRD Axis 1+3 — Investment orientated measures (2007-2013)2011Weakness in project selectionFLAT RATE10,00 %EUR– 166944,390,00– 166944,39TOTAL DEEUR– 2826327,800,00– 2826327,80DKCross Compliance20096 GAEC missing, no check on minimum requirements for plant protection products, CY 2008FLAT RATE5,00 %EUR– 126902,55– 1356,80– 125545,75DKCross Compliance2010No control on minimum requirements for plant protection products, CY 2009FLAT RATE2,00 %EUR– 30431,43– 113,46– 30317,97DKCross Compliance20106 GAEC missing, no check on minimum requirements for plant protection products, CY 2008FLAT RATE5,00 %EUR– 2492,68– 539,23– 1953,45DKCross Compliance2010Incorrect calculation of sanctions, CY 2009ONE-OFFEUR– 24,00– 0,08– 23,92DKCross Compliance20116 GAEC missing, no check on minimum requirements for plant protection products, CY 2008FLAT RATE5,00 %EUR– 387,880,00– 387,88DKCross Compliance2011No sanction on minimum requirements for plant protection products, CY 2010ONE-OFFEUR– 133,070,00– 133,07TOTAL DKEUR– 160371,61– 2009,57– 158362,04FICross Compliance20071 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR– 401890,24– 44,84– 401845,40 FICross Compliance20081 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE2,00 %EUR– 406777,260,00– 406777,26FICross Compliance20081 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR– 13442,43– 44,89– 13397,54FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE2,00 %EUR– 16504,680,00– 16504,68FICross Compliance20091 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR123,81– 2,29126,10FICross Compliance20101 GAEC missing, lenient sanctioning system, CY 2008FLAT RATE2,00 %EUR124,790,00124,79FICross Compliance20101 GAEC missing, lenient sanctioning system, CY 2007FLAT RATE2,00 %EUR53,00– 883,33936,33TOTAL FIEUR– 838313,01– 975,35– 837337,66FRRural Development EAFRD Axis 1 — Measures with flat rate support (2007-2013)2007Not enough control on the realisation of the steps and objectives of the business planFLAT RATE5,00 %EUR– 177862,920,00– 177862,92FRRural Development EAFRD Axis 1 — Measures with flat rate support (2007-2013)2008Not enough control on the realisation of the steps and objectives of the business planFLAT RATE5,00 %EUR– 2376998,880,00– 2376998,88

FRRural Development EAFRD Axis 1 — Measures with flat rate support (2007-2013)2009Not enough control on the realisation of the steps and objectives of the business planFLAT RATE5,00 %EUR– 2527224,820,00– 2527224,82FRRural Development EAFRD Axis 1 — Measures with flat rate support (2007-2013)2010Not enough control on the realisation of the steps and objectives of the business planEXTRAPOLATEDEUR– 2127518,800,00– 2127518,80FRRural Development EAFRD Axis 1 — Measures with flat rate support (2007-2013)2010Not enough control on the realisation of the steps and objectives of the business planFLAT RATE5,00 %EUR– 2541264,350,00– 2541264,35FRRural Development EAFRD Axis 1 — Measures with flat rate support (2007-2013)2011Not enough control on the realisation of the steps and objectives of the business planFLAT RATE5,00 %EUR– 279802,330,00– 279802,33TOTAL FREUR– 10030672,100,00– 10030672,10GBCross Compliance2007Non or incorrect application of regulatory sanctions, CY 2007FLAT RATE5,00 %EUR– 81236,800,00– 81236,80GBCross Compliance2008Non or incorrect application of regulatory sanctions, CY 2008FLAT RATE5,00 %EUR– 40221,10– 3187,50– 37033,60GBCross Compliance2008Non or incorrect application of regulatory sanctions, CY 2007FLAT RATE5,00 %EUR– 86843,16– 3162,80– 83680,36 GBCross Compliance2009Non or incorrect application of regulatory sanctions, CY 2009FLAT RATE2,00 %EUR– 12481,440,00– 12481,44GBCross Compliance2009Non or incorrect application of regulatory sanctions, CY 2007FLAT RATE5,00 %EUR– 487,27– 25,57– 461,70GBCross Compliance2009Non or incorrect application of regulatory sanctions, CY 2008FLAT RATE5,00 %EUR– 51617,56– 4078,41– 47539,15GBCross Compliance2010Non or incorrect application of regulatory sanctions, CY 2009FLAT RATE2,00 %EUR– 36866,26– 2314,12– 34552,14GBCross Compliance2010Non or incorrect application of regulatory sanctions, CY 2008FLAT RATE5,00 %EUR– 3266,990,00– 3266,99GBCross Compliance2010Non or incorrect application of regulatory sanctions, CY 2007FLAT RATE5,00 %EUR– 1523,34– 83,53– 1439,81GBCross Compliance2011Non or incorrect application of regulatory sanctions, CY 2009FLAT RATE2,00 %EUR– 396,430,00– 396,43GBCross Compliance2011Non or incorrect application of regulatory sanctions, CY 2008FLAT RATE5,00 %EUR– 316,440,00– 316,44GBCross Compliance2009Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR– 1554,44– 203,30– 1351,14 GBCross Compliance2009Lenient sanctioning system for SMR 7 and 8, no follow-up of minor non-compliance, ineffective control of GAEC, CY 2008FLAT RATE5,00 %EUR– 90650,32– 4272,84– 86377,48GBCross Compliance2010Ineffective control of GAEC and SMR 2, 4 and 8, CY 2010FLAT RATE2,00 %EUR– 7752,17– 7,24– 7744,93GBCross Compliance2010Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR– 88716,38– 5117,14– 83599,24GBCross Compliance2010Lenient sanctioning system for SMR 7 and 8, no follow-up of minor non-compliance, ineffective control of GAEC, CY 2008FLAT RATE5,00 %EUR– 9809,49– 623,91– 9185,58GBCross Compliance2011Ineffective control of GAEC and SMR 2, 4 and 8, CY 2010FLAT RATE2,00 %EUR– 96480,08– 2386,95– 94093,13GBCross Compliance2011Ineffective control of GAEC and SMR 2, 4 and 8, CY 2009FLAT RATE2,00 %EUR– 17490,400,00– 17490,40GBCross Compliance2011Lenient sanctioning system for SMR 7 and 8, no follow-up of minor non-compliance, ineffective control of GAEC, CY 2008FLAT RATE5,00 %EUR– 1447,330,00– 1447,33

GBRural Development EAFRD Axis 2 (2007-2013, area related measures)2010Lack of alternative control methods to visual checkFLAT RATE5,00 %EUR– 272613,55– 272613,550,00GBRural Development EAFRD Axis 2 (2007-2013, area related measures)2010Irregularities detected following the retroactive checksONE-OFFEUR– 22801,38– 1140,06– 21661,32GBRural Development EAFRD Axis 2 (2007-2013, area related measures)2011Lack of alternative control methods to visual checkFLAT RATE5,00 %EUR– 546873,590,00– 546873,59GBRural Development EAFRD Axis 2 (2007-2013, area related measures)2011Lack of follow up for non-submission of payment claims for Natural HandicapsONE-OFFEUR– 25763,750,00– 25763,75GBRural Development EAFRD Axis 2 (2007-2013, area related measures)2011Irregularities detected following the retroactive checksONE-OFFEUR– 24094,700,00– 24094,70TOTAL GBEUR– 1521304,37– 299216,92– 1222087,45ITAccreditation Paying Agency2010deficiencies in the accreditation criteria for EAFRDFLAT RATE16,00 %EUR– 2417690,000,00– 2417690,00ITAccreditation Paying Agency2010deficiencies in the accreditation criteria for EAFRD (debtors)FLAT RATE16,00 %EUR– 7132,000,00– 7132,00TOTAL ITEUR– 2424822,000,00– 2424822,00 PTCross Compliance2008Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, CY 2008FLAT RATE5,00 %EUR– 232548,55– 118567,43– 113981,12PTCross Compliance2008Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, farmers without animals, CY 2007FLAT RATE5,00 %EUR– 352561,76– 36755,91– 315805,85PTCross Compliance2008Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11, ineffective checks on 6-8, 16-18 and lenient sanction system, farmers with animals, CY 2007FLAT RATE10,00 %EUR– 1535086,03– 163623,07– 1371462,96PTCross Compliance2009Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, CY 2008FLAT RATE5,00 %EUR– 391551,37– 45319,62– 346231,75PTCross Compliance2010Several GAEC not defined, lack of checks on SMR 1, 2, 5, 11 and lenient sanction system, CY 2008FLAT RATE5,00 %EUR– 173177,70– 18879,59– 154298,11TOTAL PTEUR– 2684925,41– 383145,62– 2301779,79 ROCross Compliance2009Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR– 3,150,00– 3,15ROCross Compliance2009Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2008FLAT RATE5,00 %EUR– 551739,74– 55909,89– 495829,85ROCross Compliance2009Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2007FLAT RATE5,00 %EUR– 52672,920,00– 52672,92ROCross Compliance2010Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR– 457003,100,00– 457003,10ROCross Compliance2010Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2008FLAT RATE5,00 %EUR– 1497,600,00– 1497,60ROCross Compliance2010Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2007FLAT RATE5,00 %EUR2259,280,002259,28ROCross Compliance2011Controls partially performed and sampling of parcels not risk based, CY 2009FLAT RATE2,00 %EUR– 2595,480,00– 2595,48ROCross Compliance2011Non-definition and control of GAECs, non-definition of criteria for evaluation, CY 2008FLAT RATE5,00 %EUR7412,840,007412,84TOTAL ROEUR– 1055839,87– 55909,89– 999929,98

SICross Compliance2008Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR– 318962,73– 6726,62– 312236,11SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 217,530,00– 217,53SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR– 317428,64– 8275,35– 309153,29SICross Compliance2009Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR66,000,0066,00SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 315177,28– 1172,19– 314005,09SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2007FLAT RATE5,00 %EUR523,440,00523,44SICross Compliance2010Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR– 385,030,00– 385,03SICross Compliance2011Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 90,490,00– 90,49SICross Compliance2011Lenient sanction system, weakness for the control of 5 GAEC, CY 2008FLAT RATE5,00 %EUR– 162,590,00– 162,59 SICross Compliance2012Lenient sanction system, weakness for the control of 5 GAEC, CY 2009FLAT RATE5,00 %EUR– 70,060,00– 70,06TOTAL SIEUR– 951904,91– 16174,16– 935730,75TOTAL 6711EUR– 22494481,08– 757431,51– 21737049,57