Commission Implementing Decision of 19 December 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) 10135)

Commission Implementing Decision of 19 December 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) 10135) (Only the English, Greek and Slovenian texts are authentic) (2014/950/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 Regulation (EC) No 1258/1999 and Regulation (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 September 2014 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 Ireland, Hellenic Republic and the Republic of Slovenia. Done at Brussels, 19 December 2014. For the Commission Phil Hogan Member of the Commission

Annex

ANNEX Budget Item: 6701 MSMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGRExport refunds — Non-Annex I2008Lack of instructions related to the Regulation (EC) No 952/2006FLAT RATE5,00 %EUR– 13507,000,00– 13507,00Export refunds — Sugar and isoglucose2008Lack of instructions related to the Regulation (EC) No 952/2006FLAT RATE5,00 %EUR– 47747,490,00– 47747,49_Recoveries2009Lack of instructions related to the Regulation (EC) No 952/2006FLAT RATE2,00 %EUR– 872542,520,00– 872542,52_Recoveries2010Lack of instructions related to the Regulation (EC) No 952/2006FLAT RATE2,00 %EUR– 845323,170,00– 845323,17Wine — planting rightsReimbursement following judgement of Court of Justice in case T-367/12ONE-OFF0,00 %EUR21336120,000,0021336120,00GROther Direct Aid — Article 68-72 of Regulation (EC) No 73/20092011Non-achievement of the regulatory control rate, deficiencies in the timing and non-respect of the regulatory minimum rate of on-the-spot checks for the sheep and goat aidFLAT RATE2,00 %EUR– 476400,540,00– 476400,54GRDecoupled Direct Aids2009Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE2,00 %EUR– 34622028,32– 68359,28– 34553669,04Other Direct Aids2009Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE5,00 %EUR– 11294787,52– 97073,53– 11197713,99Decoupled Direct Aids2009Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE10,00 %EUR– 32548736,62– 64265,67– 32484470,95Other Direct Aids2009Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE100,00 %EUR0,00– 132067,09132067,09 Decoupled Direct Aids2010Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE2,00 %EUR6274,6312,556262,08Other Direct Aids2010Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE5,00 %EUR27,370,0527,32Decoupled Direct Aids2010Weaknesses in the LPIS and on-the-spot-checks, CY 2008FLAT RATE10,00 %EUR5898,8811,805887,08GRFinancial audit — Overshooting2011Exceeding of financial ceilingsONE-OFF0,00 %EUR– 21940,77– 21940,770,00Financial audit — Late payments and payment deadlines2011Late paymentsONE-OFF0,00 %EUR– 1617403,78– 1751757,38134353,60Total GR:EUR– 61012096,85– 2135439,32– 58876657,53MSMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactIEFruit and Vegetables —Operational Programmes2009Absence of checks on compliance with recognition criteriaFLAT RATE10,00 %EUR– 477165,200,00– 477165,20Fruit and Vegetables — Operational Programmes2010Absence of checks on compliance with recognition criteriaFLAT RATE10,00 %EUR– 578539,130,00– 578539,13Total IE:EUR– 1055704,330,00– 1055704,33MSMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactSISugar — Restructuring Fund2009Silos still present at the premises of the sugar factoryONE-OFF0,00 %EUR– 8700815,250,00– 8700815,25Total SI:EUR– 8700815,250,00– 8700815,25

Totals by Budget Item: 6701 AmountDeductionsFinancial Impact– 70768616,43– 2135439,32– 68633177,11 Budget Item: 6711 MSMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGRRural Development EAFRD Axis 2 (2007-2013, area related measures)2009Weaknesses in the LPIS and on-the-spot-checks, 2nd pillar, CY 2008FLAT RATE5,00 %EUR– 5007867,36– 2318055,75– 2689811,61Rural Development EAFRD Axis 2 (2007-2013, area related measures)2010Weaknesses in the LPIS and on-the-spot-checks, 2nd pillar, CY 2008FLAT RATE5,00 %EUR– 5496524,54– 270175,45– 5226349,09Total GR:EUR– 10504391,90– 2588231,20– 7916160,70 Totals by Budget Item: 6711 AmountDeductionsFinancial Impact– 10504391,90– 2588231,20– 7916160,70