Commission Implementing Decision (EU) 2018/873 of 13 June 2018 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (notified under document C(2018) 3826)

Commission Implementing Decision (EU) 2018/873 of 13 June 2018 excluding from European Union financing certain expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and under the European Agricultural Fund for Rural Development (EAFRD) (notified under document C(2018) 3826) (Only the Bulgarian, Czech, Danish, English, Finnish, French, German, Greek, Hungarian, Italian, Polish, Romanian, Spanish and Swedish texts are authentic) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 OJ L 347, 20.12.2013, p.549 , and in particular Article 52 thereof, After consulting the Committee on the Agricultural Funds, Whereas: (1) In accordance with Article 31 of Council Regulation (EC) No 1290/2005 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 as from 1 January 2015 in accordance with Article 52 of Regulation (EU) No 1306/2013 the Commission is to carry out the necessary verifications, communicate to the Member States the results of those 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) In accordance with Regulation (EU) No 1306/2013, only agricultural expenditure which has been incurred in a way that has not infringed Union law 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 EAGF and the EAFRD. (5) The amounts that are not recognised as being chargeable to 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) The amounts excluded from Union financing by the present Decision should also take into account any reductions or suspensions in accordance with Article 41 of Regulation (EU) No 1306/2013 due to the fact that such reductions or suspensions are of a provisional nature and without prejudice to decisions taken pursuant to Articles 51 or 52 of that Regulation. (7) As regards the cases covered by this decision, the assessment of the amounts to be excluded on grounds of non-compliance with Union law was notified by the Commission to the Member States in a summary report on the subject

Ares(2018) 2487854 . (8) This Decision is without prejudice to any financial conclusions that the Commission may draw from the judgments of the Court of Justice of the European Union in cases pending on 30 April 2018, HAS ADOPTED THIS DECISION:

Article 1

The amounts set out in the Annex and related to expenditure incurred by the Member States' accredited paying agencies and declared under the EAGF or the EAFRD shall be excluded from Union financing.

Article 2

This Decision is addressed to the Republic of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, Hungary, the Republic of Austria, the Republic of Poland, Romania, the Republic of Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland. Done at Brussels, 13 June 2018. For the Commission Phil Hogan Member of the Commission

Annex

ANNEX Decision: 57 Budget Item: 6701 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactATWine - Restructuring2015on-the-spot checks not in sufficient number and not of sufficient qualityFLAT RATE5,00 %EUR– 163750,830,00– 163750,83Wine - Restructuring2016on-the-spot checks not in sufficient number and not of sufficient qualityFLAT RATE5,00 %EUR– 158745,930,00– 158745,93Wine - Restructuring2017OTSC not in sufficient number and not of sufficient qualityFLAT RATE5,00 %EUR– 151661,230,00– 151661,23Total AT:EUR– 474157,990,00– 474157,99Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactBGVoluntary Coupled Support2016Absence of checks concerning animals under selection controlFLAT RATE5,00 %EUR– 8878,530,00– 8878,53Other Direct Aid - Article 68-72 of Reg.73/20092014Absence of checks for the correctness of entries in the I&R data baseFLAT RATE5,00 %EUR– 1000881,00– 26225,92– 974655,08Other Direct Aid - Article 68-72 of Reg.73/20092015Absence of checks for the correctness of entries in the I&R databaseFLAT RATE5,00 %EUR– 1658872,48– 26398,57– 1632473,91Certification2016CEB/2017/005/BG - Random errors in the EAGF populationONE OFFEUR– 59733,940,00– 59733,94 Other Direct Aid - Article 68-72 of Reg.73/20092014Weaknesses of checks of animals missing both ear-tags (considered as eligible during the on-the-spot checks) and weaknesses of checks of animals lacking passports (considered as eligible during the on-the-spot checks)ONE OFFEUR– 466343,56– 1387,61– 464955,95Other Direct Aid - Article 68-72 of Reg.73/20092015Weaknesses of checks of animals missing both ear-tags (considered as eligible during the on-the-spot checks) and weaknesses of checks of animals lacking passports (considered as eligible during the on-the-spot checks)ONE OFFEUR– 463399,04– 914,68– 462484,36Total BG:EUR– 3658108,55– 54926,78– 3603181,77Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactCZCross-compliance2015CY 2014 - Evaluation of non-compliances - Leniency in the sanctioning systemONE OFFEUR– 601669,000,00– 601669,00Certification2016CY 2015 - Evaluation of non-compliances - Leniency in the sanctioning systemONE OFFEUR– 1129089,000,00– 1129089,00Certification2017CY 2016 - Evaluation of non-compliances - Leniency in the sanctioning systemONE OFFEUR– 1260230,280,00– 1260230,28Total CZ:EUR– 2990988,280,00– 2990988,28

Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactDEWine - Restructuring2016Deficiency in key controlFLAT RATE2,00 %EUR– 275528,540,00– 275528,54Wine - Restructuring2012Deficiency in key control - Performance of on-the-spot checks covering all payment claims in sufficient numberFLAT RATE2,00 %EUR– 5,700,00– 5,70Wine - Restructuring2013Deficiency in key control - Performance of on-the-spot checks covering all payment claims in sufficient numberFLAT RATE2,00 %EUR– 6559,770,00– 6559,77Wine - Restructuring2014Deficiency in key control - Performance of on-the-spot checks covering all payment claims in sufficient numberFLAT RATE2,00 %EUR– 233087,970,00– 233087,97Wine - Restructuring2015Deficiency in key control - Performance of on-the-spot checks covering all payment claims in sufficient numberFLAT RATE2,00 %EUR– 280889,360,00– 280889,36Certification2016Financial errors in the EAGF and EAFRD populationONE OFFEUR– 472,230,00– 472,23Total DE:EUR– 796543,570,00– 796543,57Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactDKCertification2016CEB/2017/024/DK - errors in the EAGF and EAFRD populationsONE OFFEUR– 350182,63– 1625,29– 348557,34Total DK:EUR– 350182,63– 1625,29– 348557,34 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactESCertification2016CEB/2016/038/ES known errors in EAGFONE OFFEUR– 96018,450,00– 96018,45Certification2016FINANCIAL ERRORS DETECTED BY THE CBONE OFFEUR– 15009,300,00– 15009,30Entitlements2016Weakness in the administrative checks on PE when setting up the BPS - impact on BPSONE OFFEUR– 39844,180,00– 39844,18Entitlements2017Weakness in the administrative checks on PE when setting up the BPS - impact on BPSONE OFFEUR– 39794,020,00– 39794,02Decoupled Direct Aids2016Weakness in the administrative checks on PE when setting up the BPS - impact on Greening paymentsONE OFFEUR– 20601,480,00– 20601,48Decoupled Direct Aids2017Weakness in the administrative checks on PE when setting up the BPS - impact on Greening paymentsONE OFFEUR– 20567,520,00– 20567,52Decoupled Direct Aids2016Weakness in the administrative checks on PE when setting up the BPS - impact on Young Farmers paymentsONE OFFEUR– 4268,400,00– 4268,40Decoupled Direct Aids2017Weakness in the administrative checks on PE when setting up the BPS - impact on Young Farmers paymentsONE OFFEUR– 4268,400,00– 4268,40Total ES:EUR– 240371,750,00– 240371,75 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactFRFruit and Vegetables - Operational programmes incl withdrawals2015Administrative checks prior to granting payment on the elements for establishing the aid payable–VMPONE OFFEUR– 409462,150,00– 409462,15Other Direct Aid - POSEI2013Animal premium - weakness in administrative and on-the-spot checks FY 2013ONE OFFEUR– 320094,98– 640,29– 319454,69Other Direct Aid - POSEI (2014+)2014Animal premium - weakness in administrative and on-the-spot checks FY 2014ONE OFFEUR– 323719,64– 1,50– 323718,14Other Direct Aid - POSEI (2014+)2015Animal premium - weakness in administrative and on-the-spot checks FY 2015ONE OFFEUR– 314303,95– 2,18– 314301,77Other Direct Aid - POSEI (2014+)2016Animal premium - weakness in administrative and on-the-spot checks FY 2016ONE OFFEUR– 304428,930,00– 304428,93Fruit and Vegetables - Operational programmes incl withdrawals2016Control of eligibility of operational programme–soundness of estimates. Financial correction from 1.7.2016 till 15.10.2016FLAT RATE2,00 %EUR– 1056347,640,00– 1056347,64Fruit and Vegetables - Operational programmes incl withdrawals2014Control of eligibility of operational programme–soundness of estimates; Non-respect for recognition criteria by POs–Warning letters and sanctions. Financial correction from 10.3.2014 till 30.6.2016FLAT RATE5,00 %EUR– 4055381,530,00– 4055381,53

Fruit and Vegetables - Operational programmes incl withdrawals2015Control of eligibility of operational programme–soundness of estimates; Non-respect for recognition criteria by POs–Warning letters and sanctions. Financial correction from 10.3.2014 till 30.6.2016FLAT RATE5,00 %EUR– 5477578,32– 20473,11– 5457105,21Fruit and Vegetables - Operational programmes incl withdrawals2016Control of eligibility of operational programme–soundness of estimates; Non-respect for recognition criteria by POs–Warning letters and sanctions. Financial correction from 10.3.2014 till 30.6.2016FLAT RATE5,00 %EUR– 2274528,330,00– 2274528,33Fruit and Vegetables - Operational programmes incl withdrawals2017Control of eligibility of operational programmes - soundness of estimates - FY 2017 till 30.6.2017 (provisional)FLAT RATE2,00 %EUR– 1040251,200,00– 1040251,20POSEI (2007+)2013Error in recognition of producers organisatonONE OFFEUR– 680081,660,00– 680081,66POSEI (2014+)2014Error in recognition of producers organisatonONE OFFEUR– 1149556,000,00– 1149556,00POSEI (2014+)2015Error in recognition of producers organisatonONE OFFEUR– 542082,760,00– 542082,76POSEI (2014+)2016Error in recognition of producers organisatonONE OFFEUR– 537217,020,00– 537217,02Other Direct Aid - POSEI2013Inaccurate accounting for certain consignments of bananas FY 2013FLAT RATE5,00 %EUR– 646575,60– 11309,16– 635266,44Other Direct Aid - POSEI (2014+)2014Inaccurate accounting for certain consignments of bananas FY 2014FLAT RATE5,00 %EUR– 464167,98– 905,52– 463262,46 Other Direct Aid - POSEI (2014+)2015Inaccurate accounting for certain consignments of bananas FY 2015FLAT RATE5,00 %EUR– 410793,72– 11,23– 410782,49Other Direct Aid - POSEI (2014+)2016Inaccurate accounting for certain consignments of bananas FY 2016FLAT RATE5,00 %EUR– 423898,100,00– 423898,10Certification2014Lack of diligence in recoveryONE OFFEUR– 111077,560,00– 111077,56Other Direct Aid - POSEI2012Transport of sugar caneONE OFFEUR– 71021,04– 1420,42– 69600,62Other Direct Aid - POSEI2013Transport of sugar cane - weakness in administrative checksFLAT RATE5,00 %EUR– 10103,99– 202,08– 9901,91Other Direct Aid - POSEI (2014+)2014Transport of sugar cane - weakness in administrative checksFLAT RATE5,00 %EUR– 7764,370,00– 7764,37Other Direct Aid - POSEI (2014+)2015Transport of sugar cane - weakness in administrative checksFLAT RATE5,00 %EUR– 8881,290,00– 8881,29POSEI (2007+)2013TVAONE OFFEUR– 1983,230,00– 1983,23POSEI (2007+)2013Weakness in administrative checks - diversification of local production and breeding animalsFLAT RATE5,00 %EUR– 17516,820,00– 17516,82POSEI (2014+)2014Weakness in administrative checks - diversification of local production and breeding animalsFLAT RATE5,00 %EUR– 25163,930,00– 25163,93POSEI (2014+)2015Weakness in administrative checks - diversification of local production and breeding animalsFLAT RATE5,00 %EUR– 64934,160,00– 64934,16POSEI (2014+)2016Weakness in administrative checks - diversification of local production and breeding animalsFLAT RATE5,00 %EUR– 83420,370,00– 83420,37Total FR:EUR– 20832336,27– 34965,49– 20797370,78

Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGBDecoupled Direct Aids2016Greening controls - CY 2015 (CD and EFA obligations not met)FLAT RATE10,00 %EUR– 3642517,270,00– 3642517,27Decoupled Direct Aids2017Greening controls - CY 2015 (CD and EFA obligations not met)FLAT RATE10,00 %EUR– 44305,870,00– 44305,87Decoupled Direct Aids2016Greening controls - CY 2015 (EFA partially met with LLF)FLAT RATE7,00 %EUR– 3200543,020,00– 3200543,02Decoupled Direct Aids2017Greening controls - CY 2015 (EFA partially met with LLF)FLAT RATE7,00 %EUR– 38929,900,00– 38929,90Decoupled Direct Aids2017Greening controls - CY 2016 (CD and EFA obligations not met)FLAT RATE10,00 %EUR– 3621231,690,00– 3621231,69Decoupled Direct Aids2017Greening controls - CY 2016 (EFA partially met with LLF)FLAT RATE7,00 %EUR– 3136712,960,00– 3136712,96Fruit and Vegetables - Operational Programmes2013weaknesses in key controlsFLAT RATE5,00 %EUR– 109370,050,00– 109370,05 Fruit and Vegetables - Operational programmes incl withdrawals2014weaknesses in key controls (Y2014+)FLAT RATE5,00 %EUR– 1623796,790,00– 1623796,79Fruit and Vegetables - Operational programmes incl withdrawals2015weaknesses in key controls (Y2014+)FLAT RATE5,00 %EUR– 1064381,850,00– 1064381,85Decoupled Direct Aids2016Weakness in the Maximum Eligible Area for commons in LPIS - CY 2015FLAT RATE25,00 %EUR– 7258777,490,00– 7258777,49Decoupled Direct Aids2017Weakness in the Maximum Eligible Area for commons in LPIS - CY 2015FLAT RATE25,00 %EUR– 89509,950,00– 89509,95Decoupled Direct Aids2017Weakness in the Maximum Eligible Area for commons in LPIS - CY 2016FLAT RATE25,00 %EUR– 7848215,530,00– 7848215,53Total GB:EUR– 31678292,370,00– 31678292,37Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGRCertification2015EAGF Non IACS - sample reviewed in the substantive testing (one-off financial correction)ONE OFFEUR– 6894,500,00– 6894,50Cross-compliance2010Execution of overlapping amountFLAT RATE2,00 %EUR0,0016407,60– 16407,60Promotion Measures2011incorrection selection procedure of implementing bodiesFLAT RATE5,00 %EUR– 5463,44– 85,96– 5377,48 Promotion Measures2012incorrection selection procedure of implementing bodiesFLAT RATE5,00 %EUR– 56982,36– 5463,23– 51519,13Promotion Measures2013incorrection selection procedure of implementing bodiesFLAT RATE5,00 %EUR– 199382,67– 10782,20– 188600,47Promotion Measures2014incorrection selection procedure of implementing bodiesFLAT RATE5,00 %EUR– 446615,37– 31823,12– 414792,25Promotion Measures2015incorrection selection procedure of implementing bodiesFLAT RATE5,00 %EUR– 518199,290,00– 518199,29Entitlements2008national reserve allocation for investors categoryFLAT RATE10,00 %EUR– 2222531,71– 1111265,86– 1111265,85Entitlements2009national reserve allocation for investors categoryFLAT RATE10,00 %EUR– 1899562,82– 1350922,24– 548640,58Entitlements2010national reserve allocation for investors categoryFLAT RATE10,00 %EUR– 2070421,87– 582247,31– 1488174,56Total GR:EUR– 7426054,03– 3076182,32– 4349871,71Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactITAccreditation Paying Agency2016Bonifica exercise: files not yet analysed and recorded in the debt ledgerONE OFFEUR– 7904188,890,00– 7904188,89Wine - Restructuring2014Failure to apply an ancillary control established by article 81 of Regulation (EC) No 555/2008FLAT RATE2,00 %EUR– 328285,000,00– 328285,00Wine - Restructuring2015Failure to apply an ancillary control established by article 81 of Regulation (EC) No 555/2008FLAT RATE2,00 %EUR– 252870,690,00– 252870,69Wine - Restructuring2015Weaknesses in the functioning of 1 key controlFLAT RATE3,00 %EUR– 160237,000,00– 160237,00

Wine - Restructuring2016Weaknesses in the functioning of 1 key controlFLAT RATE3,00 %EUR– 115639,970,00– 115639,97Total IT:EUR– 8761221,550,00– 8761221,55Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactPLScrutiny of transactions20132013 05020401 0,5 %FLAT RATE0,50 %EUR– 267805,240,00– 267805,24Scrutiny of transactions20132013 05020812 0,5 %FLAT RATE0,50 %EUR– 11588,620,00– 11588,62Scrutiny of transactions20132013 05021001 0,5 %FLAT RATE0,50 %EUR– 26058,130,00– 26058,13Scrutiny of transactions20132013 05021204 0,5 %FLAT RATE0,50 %EUR– 18,020,00– 18,02Scrutiny of transactions20132013 05021208 0,5 %FLAT RATE0,50 %EUR– 2800,890,00– 2800,89Scrutiny of transactions20132013 05021301 0,5 %FLAT RATE0,50 %EUR– 12442,240,00– 12442,24Scrutiny of transactions20132013 05021501 0,5 %FLAT RATE0,50 %EUR– 108,610,00– 108,61Scrutiny of transactions20132013 05021505 0,5 %FLAT RATE0,50 %EUR– 326,180,00– 326,18Scrutiny of transactions20132013 05021506 0,5 %FLAT RATE0,50 %EUR– 6168,650,00– 6168,65Scrutiny of transactions20142014 05020803 0,5 %FLAT RATE0,50 %EUR– 1285,450,00– 1285,45Scrutiny of transactions20142014 05020812 0,5 %FLAT RATE0,50 %EUR– 40936,590,00– 40936,59 Scrutiny of transactions20142014 05021208 0,5 %FLAT RATE0,50 %EUR– 23250,790,00– 23250,79Scrutiny of transactions20142014 6703 0,5 %FLAT RATE0,50 %EUR– 4858,660,00– 4858,66Scrutiny of transactions20152015 05020803 0,5 %FLAT RATE0,50 %EUR– 5790,370,00– 5790,37Scrutiny of transactions20152015 05020812 0,5 %FLAT RATE0,50 %EUR– 754,340,00– 754,34Scrutiny of transactions20152015 05020899 0,5 %FLAT RATE0,50 %EUR– 33551,850,00– 33551,85Scrutiny of transactions20152015 05021208 0,5 %FLAT RATE0,50 %EUR– 261,920,00– 261,92Scrutiny of transactions20152015 6703 0,5 %FLAT RATE0,50 %EUR– 8139,180,00– 8139,18Other Direct Aid - Article 68-72 of Reg.73/20092014Quality of on-the-spot checksFLAT RATE5,00 %EUR– 1421755,790,00– 1421755,79Other Direct Aid - Article 68-72 of Reg.73/20092015Quality of on-the-spot checksFLAT RATE5,00 %EUR– 1436426,730,00– 1436426,73Total PL:EUR– 3304328,250,00– 3304328,25Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactROMilk - Schoolmilk2015Checks of the regular attendance of pupilsONE OFFEUR– 73375,140,00– 73375,14Milk - Schoolmilk2016Checks of the regular attendance of pupilsONE OFFEUR– 39829,050,00– 39829,05Certification2015Known error in EAGFONE OFFEUR– 16464,420,00– 16464,42 Certification2015MLE IN EAGF IACSESTIMATED BY AMOUNTEUR– 11570299,23– 38797,64– 11531501,59Certification2015MLE IN EAGF NON-IACSESTIMATED BY AMOUNTEUR– 618380,16– 66097,23– 552282,93Total RO:EUR– 12318348,00– 104894,87– 12213453,13Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactSEMilk - Schoolmilk2015Non exhautive administrative checks, insufficient quality of on-the-spot ckecks, incorrect calculation of the aid including administrative reductions and penaltiesFLAT RATE5,00 %EUR– 21588,100,00– 21588,10Milk - Schoolmilk2016Non exhautive administrative checks, insufficient quality of on-the-spot ckecks, incorrect calculation of the aid including administrative reductions and penaltiesFLAT RATE5,00 %EUR– 16214,010,00– 16214,01Milk - Schoolmilk2015

Stockholnm Stad Non exhautive administrative checks, insufficient quality of on-the-spot ckecks, incorrect calculation of the aid including administrative reductions and penalties ONE OFFEUR– 105766,500,00– 105766,50Total SE:EUR– 143568,610,00– 143568,61CurrencyAmountDeductionsFinancial ImpactEUR– 92974501,85– 3272594,75– 89701907,10 Budget Item: 6711 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactBGCertification2016CEB/2017/005/BG - MLE in the EAFRD populationESTIMATED BY AMOUNTEUR– 1834947,67– 160347,68– 1674599,99Rural Development EAFRD (2014-2020) measures subject to IACS2016Identification of reference parcels in a computerised LPIS-GIS with at least the requirements in Article 5 of Regulation 640/2014 (measure 12 of RDP 2014-2020).ONE OFFEUR– 1837276,900,00– 1837276,90Rural Development EAFRD (2014-2020) measures subject to IACS2016Identification of reference parcels in a computerised LPIS-GIS with at least the requirements in Article 5 of Regulation 640/2014 (measure 13 of RDP 2014-2020).ONE OFFEUR– 210464,020,00– 210464,02Rural Development EAFRD (2014-2020) measures subject to IACS2017Verification of the compliance with the rules of organic farming (measure 11 of RDP 2014-2020).EXTRAPOLATED3,35 %EUR– 606372,800,00– 606372,80Rural Development EAFRD (2014-2020) measures subject to IACS2015Verification of the compliance with the rules of organic farming (measure 214 of RDP 2007-2013 and measure 11 of RDP 2014-2020).EXTRAPOLATED3,35 %EUR– 292993,48– 5859,87– 287133,61Rural Development EAFRD (2014-2020) measures subject to IACS2016Verification of the compliance with the rules of organic farming (measure 214 of RDP 2007-2013 and measure 11 of RDP 2014-2020).EXTRAPOLATED3,35 %EUR– 571044,470,00– 571044,47Total BG:EUR– 5353099,34– 166207,55– 5186891,79Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactCZRural Development EAFRD (2014-2020) measures subject to IACS2017Pre-notification of on-the-spot checks for M214, M10, M11 and M13 in relation to claim year 2016 (paid in financial year 2017)FLAT RATE5,00 %EUR– 144617,100,00– 144617,10 Rural Development EAFRD (2014-2020) measures subject to IACS2018Pre-notification of on-the-spot checks for M214, M10, M11 and M13 in relation to claim year 2016 (paid in financial year 2018)FLAT RATE5,00 %EUR– 6499,550,00– 6499,55Total CZ:EUR– 151116,650,00– 151116,65Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactDECertification2016Financial errors in the EAGF and EAFRD populationONE OFFEUR– 56042,260,00– 56042,26Certification2015Known errors (EAFRD non-IACS)ONE OFFEUR– 20424,820,00– 20424,82Certification2015Random errors on the expenditures of EAFRD non IACSONE OFFEUR– 226246,590,00– 226246,59Total DE:EUR– 302713,670,00– 302713,67Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactDKRural Development EAFRD Axis 4 LEADER (2007-2013)20143 Key Controls deficient and 2 Ancillary Controls absentFLAT RATE10,00 %EUR– 1264137,31– 3916,77– 1260220,54Rural Development EAFRD Leader20153 Key Controls deficient and 2 Ancillary Controls absentFLAT RATE10,00 %EUR– 1205474,580,00– 1205474,58Rural Development EAFRD Leader20163 Key Controls deficient and 2 Ancillary Controls absentFLAT RATE10,00 %EUR– 897168,810,00– 897168,81Certification2016CEB/2017/024/DK - errors in the EAGF and EAFRD populationsONE OFFEUR– 3981,960,00– 3981,96Total DK:EUR– 3370762,66– 3916,77– 3366845,89

Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactESCertification2016FINANCIAL ERRORS DETECTED BY THE CBONE OFFEUR– 59731,490,00– 59731,49Rural Development EAFRD Axis 1 - Measures with flat rate support2014Non-compliance with the priority status requirementsONE OFFEUR– 63257,980,00– 63257,98Rural Development EAFRD (2014-2020) Measures with flat-rate support2015Non-compliance with the priority status requirementsONE OFFEUR– 197252,510,00– 197252,51Total ES:EUR– 320241,980,00– 320241,98Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactFIRural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2011Selection of the beneficiaries process does not prioritise in order to support only those that best fulfil the objectives of the RDPFLAT RATE5,00 %EUR– 13572,250,00– 13572,25Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2012Selection of the beneficiaries process does not prioritise in order to support only those that best fulfil the objectives of the RDPFLAT RATE5,00 %EUR– 60774,730,00– 60774,73Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013Selection of the beneficiaries process does not prioritise in order to support only those that best fulfil the objectives of the RDPFLAT RATE5,00 %EUR– 164041,550,00– 164041,55Rural Development EAFRD Investment - public beneficiaries2014Selection of the beneficiaries process does not prioritise in order to support only those that best fulfil the objectives of the RDPFLAT RATE5,00 %EUR– 395521,130,00– 395521,13 Rural Development EAFRD (2014-2020) Investment - public beneficiaries2015Selection of the beneficiaries process does not prioritise in order to support only those that best fulfil the objectives of the RDPFLAT RATE5,00 %EUR– 526480,020,00– 526480,02Rural Development EAFRD (2014-2020) Investment - public beneficiaries2016Selection of the beneficiaries process does not prioritise in order to support only those that best fulfil the objectives of the RDPFLAT RATE5,00 %EUR– 34620,080,00– 34620,08Total FI:EUR– 1195009,760,00– 1195009,76Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactFRCertification2014EAFRD financial error No 1ONE OFFEUR– 216,180,00– 216,18Certification2014EAFRD financial error No 106ONE OFFEUR– 1089,430,00– 1089,43Certification2014EAFRD financial error No 131ONE OFFEUR– 265,77– 25,45– 240,32Certification2014EAFRD financial error No 138ONE OFFEUR– 3239,400,00– 3239,40Certification2014EAFRD financial error No 150ONE OFFEUR– 5,730,00– 5,73Certification2014EAFRD financial error No 41ONE OFFEUR– 28132,450,00– 28132,45Certification2014EAFRD financial error No 49ONE OFFEUR– 11,64– 1,12– 10,52Certification2014EAFRD financial error No 50ONE OFFEUR– 2891,42– 276,81– 2614,61 Certification2014EAFRD financial error No 51ONE OFFEUR– 5600,00– 536,11– 5063,89Certification2014EAFRD financial error No 57ONE OFFEUR– 504,51– 48,30– 456,21Certification2014EAFRD financial error No 60ONE OFFEUR– 80598,000,00– 80598,00Rural Development EAFRD (2014-2020) measures subject to IACS2015ICHN 2014 - Sufficient quality of on-the-spot controls - appropriate verification of the commitments - assessment of the livestock density during the on-the-spot checksESTIMATED BY AMOUNTEUR– 12710673,46– 8651399,66– 4059273,80Certification2014Lack of diligence in recoveryONE OFFEUR– 833708,090,00– 833708,09Rural Development EAFRD (2014-2020) measures subject to IACS2015PHAE 2014 - Sufficient quality of on-the-spot controls - appropriate verification of the commitments - assessment of the livestock density during the on-the-spot checksESTIMATED BY AMOUNTEUR– 1553534,09– 1553534,090,00Total FR:EUR– 15220470,17– 10205821,54– 5014648,63Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGBRural Development EAFRD Investment - private beneficiaries2014Deficiencies in verification of Reasonableness of costs (M123, M312) and in in-situ visits (M121, transitional measures)FLAT RATE5,00 %EUR– 325626,460,00– 325626,46Rural Development EAFRD (2014-2020) Investment - private beneficiaries2015Deficiencies in verification of Reasonableness of costs (M123, M312) and in in-situ visits (M121, transitional measures)FLAT RATE5,00 %EUR– 248414,980,00– 248414,98

Rural Development EAFRD (2014-2020) forestry measures2016Deficiencies in verification of Reasonableness of costs (M123, M312) and in in-situ visits (M121, transitional measures)FLAT RATE5,00 %EUR– 3342,250,00– 3342,25Rural Development EAFRD (2014-2020) Investment - private beneficiaries2016Deficiencies in verification of Reasonableness of costs (M123, M312) and in in-situ visits (M121, transitional measures)FLAT RATE5,00 %EUR– 17320,230,00– 17320,23Rural Development EAFRD Leader2015EAFRD non-IACS: sample reviewed in the substantive testing (one-off financial correction)-RD programme 2007-2013ONE OFFEUR– 63131,310,00– 63131,31Total GB:EUR– 657835,230,00– 657835,23Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGRCertification2015EAFRD Non IACS - sample reviewed in the substantive testing (one-off financial correction)ONE OFFEUR– 99353,26– 673,55– 98679,71Total GR:EUR– 99353,26– 673,55– 98679,71Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHURural Development EAFRD Axis 1 - Measures with flat rate support (2007-2013)2011Deficiencies in key control related to management and control of M142 - duration of support.ESTIMATED BY AMOUNTEUR– 3102022,700,00– 3102022,70Rural Development EAFRD Axis 1 - Measures with flat rate support (2007-2013)2012Deficiencies in key control related to management and control of M142 - duration of support.ESTIMATED BY AMOUNTEUR– 10804018,110,00– 10804018,11 Rural Development EAFRD Axis 1 - Measures with flat rate support (2007-2013)2013Deficiencies in key control related to management and control of M142 - duration of support.ESTIMATED BY AMOUNTEUR– 5087630,410,00– 5087630,41Rural Development EAFRD (2014-2020) Measures with flat-rate support2015Deficiencies in key control related to management and control of M142 - duration of support.ESTIMATED BY AMOUNTEUR– 2330804,650,00– 2330804,65Rural Development EAFRD (2014-2020) Measures with flat-rate support2016Deficiencies in key control related to management and control of M142 - duration of support.ESTIMATED BY AMOUNTEUR– 841528,080,00– 841528,08Rural Development EAFRD Axis 1 - Measures with flat rate support (2007-2013)2011Deficiencies in key control related to management and control of M142 - eligibility criteriaFLAT RATE5,00 %EUR– 224850,19– 155101,14– 69749,05Rural Development EAFRD Axis 1 - Measures with flat rate support (2007-2013)2012Deficiencies in key control related to management and control of M142 - eligibility criteriaFLAT RATE5,00 %EUR– 695297,84– 540200,91– 155096,93Rural Development EAFRD Axis 1 - Measures with flat rate support (2007-2013)2013Deficiencies in key control related to management and control of M142 - eligibility criteriaFLAT RATE5,00 %EUR– 286488,68– 254381,52– 32107,16Rural Development EAFRD Axis 1 - Measures with flat rate support2014Deficiencies in key controls related to management and control of M142 - eligibility criteriaFLAT RATE5,00 %EUR– 382937,22– 295655,73– 87281,49Rural Development EAFRD (2014-2020) Measures with flat-rate support2015Deficiencies in key controls related to management and control of M142 - eligibility criteriaFLAT RATE5,00 %EUR– 156267,78– 116540,23– 39727,55

Rural Development EAFRD (2014-2020) Measures with flat-rate support2016Deficiencies in key controls related to management and control of M142 - eligibility criteriaFLAT RATE5,00 %EUR– 48652,30– 42076,40– 6575,90Rural Development EAFRD Axis 1 - Measures with flat rate support2014deficiency in key control - duration of supportESTIMATED BY AMOUNTEUR– 5913114,580,00– 5913114,58Total HU:EUR– 29873612,54– 1403955,93– 28469656,61Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactITAccreditation Paying Agency2014Absence of reperformance controls by Agea on EAFRD IACSFLAT RATE2,00 %EUR– 1359927,420,00– 1359927,42Accreditation Paying Agency2015Absence of reperformance controls by Agea on EAFRD IACSFLAT RATE2,00 %EUR– 5767406,830,00– 5767406,83Accreditation Paying Agency2016Absence of reperformance controls by Agea on EAFRD IACSFLAT RATE2,00 %EUR– 3720952,060,00– 3720952,06Accreditation Paying Agency2007Debt Management: paper files prior to FY2010 not recorded in the system for EAFRDONE OFFEUR– 218915,600,00– 218915,60Accreditation Paying Agency2008Debt Management: paper files prior to FY2010 not recorded in the system for EAFRDONE OFFEUR– 826684,320,00– 826684,32 Accreditation Paying Agency2009Debt Management: paper files prior to FY2010 not recorded in the system for EAFRDONE OFFEUR– 589631,900,00– 589631,90Accreditation Paying Agency2010Debt Management: paper files prior to FY2010 not recorded in the system for EAFRDONE OFFEUR– 971562,290,00– 971562,29Rural Development EAFRD (2014-2020) Investment - private beneficiaries2015Ineligible amounts (fraud) paid to beneficiary L.O. and other projects under M121 approved by the same inspectorONE OFFEUR– 1071801,220,00– 1071801,22Rural Development EAFRD (2014-2020) Measures with flat-rate support2015Ineligible amounts (fraud) paid to beneficiary L.O. under M112ONE OFFEUR– 21000,000,00– 21000,00Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2011Ineligible amounts paid for projects under M121FLAT RATE2,52 %EUR– 91005,25– 91005,250,00Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2012Ineligible amounts paid for projects under M121FLAT RATE2,52 %EUR– 30627,55– 30627,550,00Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013Ineligible amounts paid for projects under M121FLAT RATE2,52 %EUR– 236521,00– 236521,000,00Rural Development EAFRD Investment - private beneficiaries2014Ineligible amounts paid for projects under M121FLAT RATE2,52 %EUR– 21659,140,00– 21659,14 Rural Development EAFRD (2014-2020) Investment - private beneficiaries2015Ineligible amounts paid for projects under M121FLAT RATE2,52 %EUR– 514365,170,00– 514365,17Rural Development EAFRD (2014-2020) Investment - private beneficiaries2016Ineligible amounts paid for projects under M121FLAT RATE2,52 %EUR– 514416,770,00– 514416,77Rural Development EAFRD (2014-2020) Investment - private beneficiaries2016Ineligible amounts paid for transitional expenditure (follow up: projects under M121)FLAT RATE2,52 %EUR– 107498,300,00– 107498,30Rural Development EAFRD (2014-2020) Investment - private beneficiaries2017Ineligible amounts paid for transitional expenditure (follow up: projects under M121)FLAT RATE2,52 %EUR– 164372,470,00– 164372,47Total IT:EUR– 16228347,29– 358153,80– 15870193,49Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactRORural Development EAFRD Axis 2 (2007-2013, non area related measures)2014Incorrect payment rates - FY2014 - sub-measure 3aONE OFFEUR– 818013,62– 15198,83– 802814,79Rural Development EAFRD Axis 2 (2007-2013, non area related measures)2014Incorrect payment rates - FY2014 - sub-measure 3bONE OFFEUR– 4576407,630,00– 4576407,63Rural Development EAFRD Axis 2 (2007-2013, non area related measures)2014Incorrect payment rates - FY2014 - sub-measure 4bONE OFFEUR– 9560314,82– 177632,27– 9382682,55

Rural Development EAFRD Axis 2 (2007-2013, non area related measures)2014Incorrect payment rates - FY2014 - sub-measure 5aONE OFFEUR– 1727302,80– 32093,58– 1695209,22Rural Development EAFRD (2014-2020) measures subject to IACS2015Incorrect payment rates - FY2015 - sub-measure 1aESTIMATED BY AMOUNTEUR– 5533253,660,00– 5533253,66Rural Development EAFRD (2014-2020) measures subject to IACS2015Incorrect payment rates - FY2015 - sub-measure 3aONE OFFEUR– 1588178,570,00– 1588178,57Rural Development EAFRD (2014-2020) measures subject to IACS2015Incorrect payment rates - FY2015 - sub-measure 3bONE OFFEUR– 4489089,720,00– 4489089,72Rural Development EAFRD (2014-2020) measures subject to IACS2015Incorrect payment rates - FY2015 - sub-measure 4bONE OFFEUR– 10657012,370,00– 10657012,37Rural Development EAFRD (2014-2020) measures subject to IACS2015Incorrect payment rates - FY2015 - sub-measure 5aONE OFFEUR– 2969317,380,00– 2969317,38Rural Development EAFRD (2014-2020) measures subject to IACS2016Incorrect payment rates - FY2016 - sub-measure 1aESTIMATED BY AMOUNTEUR– 7651592,950,00– 7651592,95Rural Development EAFRD (2014-2020) measures subject to IACS2016Incorrect payment rates - FY2016 - sub-measure 3aONE OFFEUR7970,400,007970,40Rural Development EAFRD (2014-2020) measures subject to IACS2016Incorrect payment rates - FY2016 - sub-measure 3bONE OFFEUR– 1497,680,00– 1497,68 Rural Development EAFRD (2014-2020) measures subject to IACS2016Incorrect payment rates - FY2016 - sub-measure 4bONE OFFEUR– 8689604,280,00– 8689604,28Rural Development EAFRD (2014-2020) measures subject to IACS2016Incorrect payment rates - FY2016 - sub-measure 5aONE OFFEUR– 463232,490,00– 463232,49Certification2014Known error in EAFRD IACSONE OFFEUR– 60838,46– 304,19– 60534,27Certification2014MLE EAFRD NON-IACSESTIMATED BY AMOUNTEUR– 13424095,76– 722370,47– 12701725,29Certification2014MLE EARDF IACSESTIMATED BY AMOUNTEUR– 5447940,85– 7258,11– 5440682,74Rural Development EAFRD (2014-2020) Measures with flat-rate support2015weakness in a key controlONE OFFEUR– 100833,000,00– 100833,00Rural Development EAFRD (2014-2020) Measures with flat-rate support2016weakness in a key controlONE OFFEUR– 64467,000,00– 64467,00Total RO:EUR– 77815022,64– 954857,45– 76860165,19CurrencyAmountDeductionsFinancial ImpactEUR– 150587585,19– 13093586,59– 137493998,60 Budget Item: 05040501 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactFRRural Development EAFRD Axis 2 (2007-2013, area related measures)2011Reimbursement following judgment in case T-518/15 (audit RD2/2012/005/FR)FLAT RATE10,00 %EUR9284320,8918568,649265752,25Rural Development EAFRD Axis 2 (2007-2013, area related measures)2012Reimbursement following judgment in case T-518/15 (audit RD2/2012/005/FR)FLAT RATE10,00 %EUR17853829,2035707,6517818121,55Rural Development EAFRD Axis 2 (2007-2013, area related measures)2013Reimbursement following judgment in case T-518/15 (audit RD2/2012/005/FR)FLAT RATE10,00 %EUR20063817,8640127,6320023690,23Total FR:EUR47201967,9594403,9247107564,03Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactRORural Development EAFRD (2014-2020) measures subject to IACS2016Financial effect of Commission Decision C(2016)3342 which reduced the interim payments related to the expenditure made in the period between 16 October 2015 and 31 December 2015ONE OFFEUR– 8584818,558584818,55Rural Development EAFRD (2014-2020) measures subject to IACS2015Financial effect of Commission Decision C(2016)3342 which reduced the interim payments related to the expenditure made in the period between 1 July 2015 and 15 October 2015ONE OFFEUR– 2740099,092740099,09Total RO:EUR– 11324917,6411324917,64CurrencyAmountDeductionsFinancial ImpactEUR47201967,95– 11230513,7258432481,67