Commission Implementing Decision (EU) 2018/1841 of 16 November 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) 7424)

Commission Implementing Decision (EU) 2018/1841 of 16 November 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) 7424) (Only the Croatian, Czech, Dutch, English, French, German, Greek, Hungarian, Italian, Polish, Portuguese, Romanian, Slovak, Spanish and Swedish texts are authentic) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to 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)5554158 . (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 21 September 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 Kingdom of Belgium, the Czech Republic, the Federal Republic of Germany, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Republic of Croatia, the Italian Republic, Hungary, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Slovak Republic, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland. Done at Brussels, 16 November 2018. For the Commission Phil Hogan Member of the Commission

Annex

ANNEX Decision: 58 Budget Item: 05040501 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHUCross-compliance2010Reimbursement following judgment in case T-505/15FLAT RATE2,00 %EUR12689,170,0012689,17Cross-compliance2011Reimbursement following judgment in case T-505/15FLAT RATE2,00 %EUR40798,580,0040798,58Total HU:EUR53487,750,0053487,75CurrencyAmountDeductionsFinancial ImpactEUR53487,750,0053487,75 Budget Item: 05070107 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactCZWine - Restructuring2010Reimbursement following judgment in case C-4/17PONE OFFEUR690350,420,00690350,42Wine - Restructuring2011Reimbursement following judgment in case C-4/17PONE OFFEUR865307,630,00865307,63Wine - Restructuring2012Reimbursement following judgment in case C-4/17PONE OFFEUR567540,990,00567540,99Total CZ:EUR2123199,040,002123199,04 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHUCross-compliance2010Reimbursement following judgment in case T-505/15FLAT RATE2,00 %EUR331308,920,00331308,92Cross-compliance2011Reimbursement following judgment in case T-505/15FLAT RATE2,00 %EUR169536,160,00169536,16Total HU:EUR500845,080,00500845,08CurrencyAmountDeductionsFinancial ImpactEUR2624044,120,002624044,12 Budget Item: 6701 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactATCertification2016CEB/2017/002/AT export refunds debt managementONE OFFEUR– 560013,800,00– 560013,80Entitlements2016Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - BPSONE OFFEUR– 11131,040,00– 11131,04Entitlements2017Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - BPSESTIMATED BY PERCENTAGE0,47 %EUR– 342311,270,00– 342311,27Decoupled Direct Aids2016Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - GreeningONE OFFEUR– 9144,070,00– 9144,07Decoupled Direct Aids2017Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - Greening & YFESTIMATED BY PERCENTAGE0,47 %EUR– 161606,010,00– 161606,01

Voluntary Coupled Support2017Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - VCSESTIMATED BY PERCENTAGE0,47 %EUR– 6670,620,00– 6670,62Entitlements2016Value of PE allocated in 2015 too high - Art (26) of R.1307/2013 - Impact on BPSONE OFFEUR– 153513,730,00– 153513,73Entitlements2017Value of PE allocated in 2015 too high - Art (26) of R.1307/2013 - Impact on BPSONE OFFEUR– 108909,330,00– 108909,33Decoupled Direct Aids2016Value of PE allocated in 2015 too high - Art (26) of R.1307/2013 - Impact on GreeningONE OFFEUR– 69228,190,00– 69228,19Decoupled Direct Aids2017Value of PE allocated in 2015 too high - Art (26) of R.1307/2013 - Impact on GreeningONE OFFEUR– 49113,490,00– 49113,49Total AT:EUR– 1471641,550,00– 1471641,55Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactBECertification2016Known errorONE OFFEUR– 1146110,050,00– 1146110,05Certification2016MLE EAGF IACS for FY 2016ESTIMATED BY AMOUNTEUR– 503815,420,00– 503815,42Certification2016MLE EAGF NON-IACS for FY 2016ESTIMATED BY AMOUNTEUR– 24246,220,00– 24246,22Total BE:EUR– 1674171,690,00– 1674171,69 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactDECertification2016EAGF - audit case no 24ONE OFFEUR– 130,090,00– 130,09Certification2016EAGF - audit case no 31ONE OFFEUR– 169,230,00– 169,23Certification2016EAGF - audit case no 4ONE OFFEUR– 413,580,00– 413,58Total DE:EUR– 712,900,00– 712,90Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactESCertification2016EAGF random errorsONE OFFEUR– 15926,150,00– 15926,15Certification2016Known error EAGFONE OFFEUR– 51,520,00– 51,52Decoupled Direct Aids2016Late classical controls - claim year 2015ONE OFFEUR– 28661,510,00– 28661,51Certification2016Random errors EAGFONE OFFEUR– 155560,070,00– 155560,07Decoupled Direct Aids2016Risk based sample - CwRS CY2015FLAT RATE5,00 %EUR– 194370,470,00– 194370,47Decoupled Direct Aids2017Risk based sample - CwRS CY2016FLAT RATE5,00 %EUR– 131651,650,00– 131651,65Total ES:EUR– 526221,370,00– 526221,37Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactFRVoluntary Coupled Support2016CY 2015 - Measure 7, 30 and 24ONE OFFEUR– 6287259,890,00– 6287259,89 Voluntary Coupled Support2017CY 2016 - VCS M30ONE OFFEUR– 31114,240,00– 31114,24Voluntary Coupled Support2017CY 2016 - VCS M7ONE OFFEUR– 28400982,410,00– 28400982,41Cross-compliance2014DP (SMR 1, 2, 5 not checked)FLAT RATE2,00 %EUR– 15559062,85– 403995,73– 15155067,12Cross-compliance2013Wine (SMR 1, 2, 5 not checked)FLAT RATE2,00 %EUR– 146334,720,00– 146334,72Total FR:EUR– 50424754,11– 403995,73– 50020758,38Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGBCross-compliance2015DP - CY 2014 - Deficient OTSCFLAT RATE2,00 %EUR– 3864246,24– 77151,09– 3787095,15Cross-compliance2016DP - CY 2015 - Deficient OTSCFLAT RATE2,00 %EUR– 3820007,23– 1269622,79– 2550384,44Cross-compliance2017DP CY 2016FLAT RATE2,00 %EUR– 3881716,38– 1261994,04– 2619722,34Total GB:EUR– 11565969,85– 2608767,92– 8957201,93Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGREntitlements2017Active farmer requirement - connected companies - CY 2016ONE OFFEUR– 19734,000,00– 19734,00

Entitlements2016CY 2015 - farmers receiving PE from NR on the basis of area leased in 2010 - BPSFLAT RATE10,00 %EUR– 45625,620,00– 45625,62Decoupled Direct Aids2016CY 2015 - Farmers receiving PE from NR on the basis of area leased in 2010 - GREENINGFLAT RATE10,00 %EUR– 21809,050,00– 21809,05Decoupled Direct Aids2016CY 2015 - Farmers receiving PE from NR on the basis of area leased in 2010 - YFFLAT RATE10,00 %EUR– 1147,730,00– 1147,73Entitlements2016CY 2015 - Farmers who did not declare sufficient eligible area for conversion - BPSONE OFFEUR– 23681,890,00– 23681,89Decoupled Direct Aids2016CY 2015 - Farmers who did not declare sufficient eligible land for conversion - GREENINGONE OFFEUR– 11319,950,00– 11319,95Entitlements2017CY 2016 - Farmers receiving PE from NR on the basis of area leased in 2010 - BPSFLAT RATE10,00 %EUR– 47341,780,00– 47341,78Decoupled Direct Aids2017CY 2016 - Farmers receiving PE from NR on the basis of area leased in 2010 - GREENINGFLAT RATE10,00 %EUR– 23339,500,00– 23339,50 Entitlements2017CY 2016 - Farmers who did not declare sufficient eligible land for conversion - BPSONE OFFEUR– 19336,090,00– 19336,09Decoupled Direct Aids2017CY 2016 - Farmers who did not declare sufficient eligible land for conversion - GREENINGONE OFFEUR– 9532,690,00– 9532,69Decoupled Direct Aids2016Weaknesses in LPIS UpdateFLAT RATE2,00 %EUR– 12342563,070,00– 12342563,07Decoupled Direct Aids2017Weaknesses in LPIS UpdateFLAT RATE2,00 %EUR– 12060282,130,00– 12060282,13Decoupled Direct Aids2017Weakness in Greening controlsONE OFFEUR– 385,10– 134,79– 250,31Decoupled Direct Aids2016Weakness in the OTSC control of parcels BPSONE OFFEUR– 541695,17– 189593,31– 352101,86Decoupled Direct Aids2017Weakness in the OTSC control of parcels BPSONE OFFEUR– 148063,37– 51822,18– 96241,19Total GR:EUR– 25315857,14– 241550,28– 25074306,86Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHRClearance of Accounts - Financial Clearance2016Errors identified by the CB in the context of financial clearance (EAGF)ONE OFFEUR– 106,700,00– 106,70Total HR:EUR– 106,700,00– 106,70 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHUCertification2016EAGF - Financial errorONE OFFEUR– 354521,310,00– 354521,31Certification2014EAGF - Known error (FY2014)ONE OFFEUR– 411055,080,00– 411055,08Certification2015EAGF - Known error (FY2015)ONE OFFEUR– 229160,000,00– 229160,00Total HU:EUR– 994736,390,00– 994736,39Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactITCertification2016Known errors for EAGF identified by the CBONE OFFEUR– 58736,480,00– 58736,48Total IT:EUR– 58736,480,00– 58736,48Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactPLFruit and Vegetables - Exceptional support measures2015Deficiency 1 in the checks to establish eligibility of the aid (key control): aid paid directly to PO membersONE OFFEUR– 862313,800,00– 862313,80Fruit and Vegetables - Exceptional support measures2016Deficiency 1 in the checks to establish eligibility of the aid (key control): aid paid directly to PO membersONE OFFEUR– 626391,410,00– 626391,41

Fruit and Vegetables - Exceptional support measures2015Deficiency 2 in the checks to establish eligibility of the aid (key control): change of operation after notification. R. 932.2014 only.ONE OFFEUR– 1225249,400,00– 1225249,40Fruit and Vegetables - Pre-recognised Producer Groups2015Known error in the EAGF non-IACS populationONE OFFEUR– 20800842,75– 20800842,750,00Total PL:EUR– 23514797,36– 20800842,75– 2713954,61Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactPTCross-compliance2014DP - CY 2013 - Deficient checks of SMRs 2, 7, 8, 9, 11, 12, 16-18 - Missing GAEC Crop rotation - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 378534,63– 1984,14– 376550,49Cross-compliance2015DP - CY 2014 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Missing GAEC Crop rotation - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 3117345,35– 103874,64– 3013470,71Cross-compliance2016DP - CY 2015 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 3042569,54– 78338,31– 2964231,23Cross-compliance2017DP - CY 2016 - Tolerances and leniency of the sanctioning systemONE OFFEUR– 152766,080,00– 152766,08 Cross-compliance2014Wine - CY 2015 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 215486,92– 4309,74– 211177,18Cross-compliance2015Wine - CY 2015 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 35761,53– 715,23– 35046,30Total PT:EUR– 6942464,05– 189222,06– 6753241,99Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactSEFruit and Vegetables - Operational programmes incl withdrawals2015Absence and one offFLAT RATE5,00 %EUR– 219136,75– 36866,25– 182270,50Fruit and Vegetables - Operational programmes incl withdrawals2015Absence and one offONE OFFEUR– 737325,020,00– 737325,02Fruit and Vegetables - Operational programmes incl withdrawals2016Absence and one offFLAT RATE5,00 %EUR– 235899,86– 36510,52– 199389,34Fruit and Vegetables - Operational programmes incl withdrawals2016Absence and one offONE OFFEUR– 730210,410,00– 730210,41Fruit and Vegetables - Operational programmes incl withdrawals2017Absence and one offFLAT RATE5,00 %EUR– 138560,74– 4203,58– 134357,16Fruit and Vegetables - Operational programmes incl withdrawals2017Absence and one offONE OFFEUR– 84071,640,00– 84071,64Total SE:EUR– 2145204,42– 77580,35– 2067624,07 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactSKCross-compliance2015DP - CY 2014 - Deficient scope of checks of GAEC 5FLAT RATE5,00 %EUR– 14259,15– 42,85– 14216,30Cross-compliance2015DP - CY 2014 - Leniency of the sanctioning systemONE OFFEUR– 1063858,340,00– 1063858,34Cross-compliance2016DP - CY 2015 - Deficient scope of checks of GAEC 5FLAT RATE5,00 %EUR– 5536,83– 38,61– 5498,22Cross-compliance2016DP - CY 2015 - Leniency of the sanctioning systemONE OFFEUR– 1176670,250,00– 1176670,25Cross-compliance2017DP - CY 2016 - Deficient scope of checks of GAEC 5FLAT RATE5,00 %EUR– 9990,33– 87,11– 9903,22Cross-compliance2017DP - CY 2016 - Leniency of the sanctioning systemONE OFFEUR– 1407765,370,00– 1407765,37Total SK:EUR– 3678080,27– 168,57– 3677911,70CurrencyAmountDeductionsFinancial ImpactEUR– 128313454,28– 24322127,66– 103991326,62

Budget Item: 6711 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactATRural Development EAFRD measures subject to IACS2016Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - EAFRDONE OFFEUR– 7474,300,00– 7474,30 Rural Development EAFRD measures subject to IACS2017Deficiency regarding active farmer status under Art. 9(2) of R.1307/2013 - EAFRDESTIMATED BY PERCENTAGE0,47 %EUR– 201955,260,00– 201955,26Total AT:EUR– 209429,56 0,00– 209429,56Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactBECertification2016Known error EARDF for FY 2016ONE OFFEUR– 630956,000,00– 630956,00Certification2016MLE EARDF IACS FOR FY 2016ESTIMATED BY AMOUNTEUR– 24973,870,00– 24973,87Certification2016MLE EARDF NON-IACS FOR FY 2016ESTIMATED BY AMOUNTEUR– 430,800,00– 430,80Total BE:EUR– 656360,67 0,00– 656360,67Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactDERural Development EAFRD Axis 4 LEADER (2007-2013)20131a-Individual error in public procurement (File 2) - Calculated correction (10 %)ONE OFFEUR– 981,310,00– 981,31Rural Development EAFRD Axis 4 LEADER (2007-2013)20141a-Individual error in public procurement (File 2) - Calculated correction (10 %)ONE OFFEUR– 1552,360,00– 1552,36Rural Development EAFRD Leader20151b-Individual error in public procurement (File 2) - Calculated correction (10 %)ONE OFFEUR– 1672,700,00– 1672,70 Rural Development EAFRD Axis 4 LEADER (2007-2013)20102a-Individual error in public procurement (File 7) - Calculated correction (10 %)ONE OFFEUR– 2568,800,00– 2568,80Rural Development EAFRD Axis 4 LEADER (2007-2013)20112a-Individual error in public procurement (File 7) - Calculated correction (10 %)ONE OFFEUR– 2115,880,00– 2115,88Rural Development EAFRD Axis 4 LEADER (2007-2013)20122a-Individual error in public procurement (File 7) - Calculated correction (10 %)ONE OFFEUR– 902,460,00– 902,46Rural Development EAFRD Axis 4 LEADER (2007-2013)20132a-Individual error in public procurement (File 7) - Calculated correction (10 %)ONE OFFEUR– 902,460,00– 902,46Rural Development EAFRD Axis 4 LEADER (2007-2013)20142a-Individual error in public procurement (File 7) - Calculated correction (10 %)ONE OFFEUR– 1216,800,00– 1216,80Rural Development EAFRD Leader20152a-Individual error in public procurement (File 7) - Calculated correction (10 %)ONE OFFEUR– 1401,010,00– 1401,01Rural Development EAFRD Axis 4 LEADER (2007-2013)20143a-Deficiencies in administrative checks on public procurementFLAT RATE3,00 %EUR– 69095,140,00– 69095,14Rural Development EAFRD Leader20153b-Deficiencies in administrative checks on public procurementFLAT RATE3,00 %EUR– 559669,26– 1557,83– 558111,43Rural Development EAFRD Leader20163b-Deficiencies in administrative checks on public procurementFLAT RATE3,00 %EUR– 365056,56– 6266,59– 358789,97Certification2016EAFRD IACS - audit case no 11ONE OFFEUR– 607,280,00– 607,28Certification2016EAFRD IACS - audit case no 129ONE OFFEUR– 16831,090,00– 16831,09

Certification2016EAFRD IACS - audit case no 6ONE OFFEUR– 477,710,00– 477,71Certification2016EAFRD IACS - audit case no 71ONE OFFEUR– 119,730,00– 119,73Certification2016EAFRD non-IACS - audit case no 2ONE OFFEUR– 35831,000,00– 35831,00Certification2016EAFRD non-IACS - audit case no 27ONE OFFEUR– 4396,500,00– 4396,50Certification2016EAFRD non-IACS - audit case no 34ONE OFFEUR– 1432,510,00– 1432,51Certification2016EAFRD non-IACS - audit case no 43ONE OFFEUR– 23887,000,00– 23887,00Certification2016EAFRD non-IACS - audit case no 51ONE OFFEUR– 848,290,00– 848,29Total DE:EUR– 1091565,85– 7824,42– 1083741,43Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactESRural Development EAFRD investment - private beneficiaries2016Deficiencies in checks of the reasonableness of the costs for M123 (FY2016 transitional)FLAT RATE5,00 %EUR– 2229,430,00– 2229,43Rural Development EAFRD investment - private beneficiaries2015Deficiencies in the evaluation of the reasonableness of the costs for M123 (FY 2015)FLAT RATE5,00 %EUR– 126999,410,00– 126999,41 Rural Development EAFRD investment - private beneficiaries2015Deficiencies in the evaluation of the reasonableness of the costs for M123 (FY2016)FLAT RATE5,00 %EUR– 17905,780,00– 17905,78Certification2016EAFRD known errorsONE OFFEUR– 46723,270,00– 46723,27Rural Development EAFRD investment - private beneficiaries2016Insufficient quality of expost checks (M121)ONE OFFEUR– 33740,920,00– 33740,92Certification2016Known errors for EAFRD - EUR 56200,38ONE OFFEUR– 56200,380,00– 56200,38Certification2016MLE for EAFRD EUR 17124,08ESTIMATED BY AMOUNTEUR– 17124,080,00– 17124,08Certification2016random errors EAFRDONE OFFEUR– 2390,500,00– 2390,50Rural Development EAFRD investment - private beneficiaries2015Verfication of the payment claimONE OFFEUR– 91814,570,00– 91814,57Total ES:EUR– 395128,34 0,00– 395128,34Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactFRCertification2016CEB/2017/046/FR - extrapolated error in EAFRDESTIMATED BY AMOUNTEUR– 1768,570,00– 1768,57Certification2016CEB/2017/046/FR - known errors in EAFRDONE OFFEUR– 27977,000,00– 27977,00Cross-compliance2013RD (SMR 1, 2, 5 not checked)FLAT RATE2,00 %EUR– 532897,40– 489608,41– 43288,99 Cross-compliance2014RD (SMR 1, 2, 5 not checked)FLAT RATE2,00 %EUR– 668690,920,00– 668690,92Total FR:EUR– 1231333,89– 489608,41– 741725,48Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGBRural Development EAFRD investment - private beneficiaries2015Lack of audit trail in relation to in-situ visits - FY2015 - Measure 216FLAT RATE3,00 %EUR– 10380,460,00– 10380,46Rural Development EAFRD forestry measures2015Lack of audit trail in relation to in-situ visits - FY2015 - Measure 221.FLAT RATE10,00 %EUR– 13254,640,00– 13254,64Rural Development EAFRD forestry measures2015Lack of audit trail in relation to in-situ visits - FY2015 - Measure 227.FLAT RATE10,00 %EUR– 148643,710,00– 148643,71Rural Development EAFRD investment - private beneficiaries2016Lack of audit trail in relation to in-situ visits - FY2016 - Measure 216 paid under M04 of the new programming period.FLAT RATE3,00 %EUR– 7565,260,00– 7565,26Rural Development EAFRD investment - private beneficiaries2017Lack of audit trail in relation to in-situ-visits - FY2017 - Measure 216 paid under M04 of the new programming period.FLAT RATE3,00 %EUR– 726,750,00– 726,75Rural Development EAFRD measures subject to IACS2016M10: Lack of systematic cross-checks against animal databases to assess the requirement on livestock density and lack of livestock assessment on the spot - CY2015FLAT RATE10,00 %EUR– 476492,210,00– 476492,21

Rural Development EAFRD measures subject to IACS2016M14: Lack of systematic cross-checks against animal databases to assess the requirement on livestock density, lack of livestock assessment on the spot and penalty system not compliant - CY2015FLAT RATE10,00 %EUR– 20700,000,00– 20700,00Rural Development EAFRD forestry measures2016M221/M08: Lack of administrative check regarding the income-foregone payments - CY2015FLAT RATE10,00 %EUR– 23435,000,00– 23435,00Rural Development EAFRD forestry measures2017M221/M08: Lack of administrative check regarding the income-foregone payments CY2016FLAT RATE10,00 %EUR– 23435,000,00– 23435,00Cross-compliance2014RD - CY 2014 - Deficient OTSCFLAT RATE2,00 %EUR– 501789,150,00– 501789,15Cross-compliance2015RD - CY 2014 - Deficient OTSCFLAT RATE2,00 %EUR– 397720,770,00– 397720,77Cross-compliance2015RD - CY 2015 - Deficient OTSCFLAT RATE2,00 %EUR– 253812,96– 257,81– 253555,15Cross-compliance2016RD - CY 2015 - Deficient OTSCFLAT RATE2,00 %EUR– 410094,330,00– 410094,33Rural Development EAFRD investment - private beneficiaries2015Self-declaration for payments including VAT - FY2015 - Measure 216.ONE OFFEUR– 88233,890,00– 88233,89Total GB:EUR– 2376284,13– 257,81– 2376026,32 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactGRRural Development EAFRD Axis 2 (2007-2013, area related measures)2009LPIS weaknessONE OFFEUR– 2397552,060,00– 2397552,06Rural Development EAFRD Axis 2 (2007-2013, area related measures)2010LPIS weaknessONE OFFEUR– 805546,960,00– 805546,96Total GR:EUR– 3203099,02 0,00– 3203099,02Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHRRural Development EAFRD measures subject to IACS2016Appropriate checks to ensure that application fulfil all eligibility criteria as laid down in the EU legislation and in the RDP of the Member State or region (M10 - M11 - CY2015 and 2016 - FY2016)ONE OFFEUR– 101099,73– 45886,85– 55212,88Clearance of Accounts - Financial Clearance2016Known error detected by CB in the context of financial clearance (EAFRD IACS)ONE OFFEUR– 53125,780,00– 53125,78Total HR:EUR– 154225,51– 45886,85– 108338,66Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactHUCertification2016EAFRD - Financial errorONE OFFEUR– 50,020,00– 50,02 Certification2016EAFRD - Known errorONE OFFEUR– 419402,550,00– 419402,55Rural Development EAFRD investment - private beneficiaries2015Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 2117,92– 2117,920,00Rural Development EAFRD investment - public beneficiaries2015Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 15280,22– 15280,220,00Rural Development EAFRD Measures with flat-rate support2015Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 12762,94– 12762,940,00Rural Development EAFRD investment - private beneficiaries2016Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 846,96– 838,29– 8,67Rural Development EAFRD investment - public beneficiaries2016Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 68740,57– 11603,59– 57136,98Rural Development EAFRD Measures with flat-rate support2016Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 15242,66– 3610,66– 11632,00Rural Development EAFRD investment - private beneficiaries2017Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 179,340,00– 179,34Rural Development EAFRD investment - public beneficiaries2017Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 249,970,00– 249,97

Rural Development EAFRD Measures with flat-rate support2017Incompliances with respect to the public procurement rulesESTIMATED BY PERCENTAGE0,10 %EUR– 22,750,00– 22,75Total HU:EUR– 534895,90– 46213,62– 488682,28Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactIECertification2016FINANCIAL ERRORS DETECTED BY THE CBONE OFFEUR– 289762,080,00– 289762,08Total IE:EUR– 289762,08 0,00– 289762,08Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactITRural Development EAFRD measures subject to IACS2016Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 10 - Operation 10.1.1.FLAT RATE2,00 %EUR– 16181,190,00– 16181,19Rural Development EAFRD measures subject to IACS2017Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 10 - Operation 10.1.1.FLAT RATE2,00 %EUR– 15722,340,00– 15722,34Rural Development EAFRD measures subject to IACS2016Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 10 - Operation 10.1.2.FLAT RATE2,00 %EUR– 11965,460,00– 11965,46Rural Development EAFRD measures subject to IACS2017Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 10 - Operation 10.1.2.FLAT RATE2,00 %EUR– 11626,160,00– 11626,16 Rural Development EAFRD measures subject to IACS2016Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 10 - Operation 10.1.3.FLAT RATE2,00 %EUR– 2414,450,00– 2414,45Rural Development EAFRD measures subject to IACS2017Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 10 - Operation 10.1.3.FLAT RATE2,00 %EUR– 2345,980,00– 2345,98Rural Development EAFRD measures subject to IACS2016Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 11 - Operation 11.1.1.FLAT RATE2,00 %EUR0,000,000,00Rural Development EAFRD measures subject to IACS2017Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 11 - Operation 11.1.1.FLAT RATE2,00 %EUR– 806,750,00– 806,75Rural Development EAFRD measures subject to IACS2016Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 11 - Operation 11.2.1.FLAT RATE2,00 %EUR0,000,000,00Rural Development EAFRD measures subject to IACS2017Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 11 - Operation 11.2.1.FLAT RATE2,00 %EUR– 1666,150,00– 1666,15Rural Development EAFRD measures subject to IACS2016Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 13 - Operation 13.1.1.FLAT RATE2,00 %EUR– 56267,290,00– 56267,29Rural Development EAFRD measures subject to IACS2017Absence of evidence of the calculation of livestock density during on-the-spot checks - FY2016 - Measure 13 - Operation 13.1.1.FLAT RATE2,00 %EUR– 26678,190,00– 26678,19Total IT:EUR– 145673,96 0,00– 145673,96

Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactPLCertification2015Financial errors in the EAFRD non-IACS populationONE OFFEUR– 10244,550,00– 10244,55Total PL:EUR– 10244,55 0,00– 10244,55Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactPTRural Development EAFRD Axis 4 LEADER (2007-2013)20141-Measure 413 (sub-measures 311, 312, 313): ineligible costs for jobs to be created/maintainedONE OFFEUR– 467842,770,00– 467842,77Rural Development EAFRD Leader20151-Measure 413 (sub-measures 311, 312, 313): ineligible costs for jobs to be created/maintainedONE OFFEUR– 1212190,330,00– 1212190,33Rural Development EAFRD Leader20161-Measure 413 (sub-measures 311, 312, 313): ineligible costs for jobs to be created/maintainedONE OFFEUR– 94360,250,00– 94360,25Rural Development EAFRD Axis 4 LEADER (2007-2013)20142-Measure 413 (sub-measures 311, 312, 313, 323): deficiencies in checks on the reasonableness of costsFLAT RATE100,00 %EUR– 301512,950,00– 301512,95Rural Development EAFRD Leader20152-Measure 413 (sub-measures 311, 312, 313, 323): deficiencies in checks on the reasonableness of costsFLAT RATE100,00 %EUR– 248459,070,00– 248459,07Rural Development EAFRD Leader20162-Measure 413 (sub-measures 311, 312, 313, 323): deficiencies in checks on the reasonableness of costsFLAT RATE100,00 %EUR– 57404,700,00– 57404,70Certification2015Clearance of accounts decision for financial year 2015 and Clearance of EAFRD accounts decision related to the last execution year (16.10.2014-31.12.2015) in respect of the 2007-2013 programming period.ONE OFFEUR– 15000,610,00– 15000,61 Cross-compliance2014correction RD CY 2013FLAT RATE5,00 %EUR10380,280,0010380,28Cross-compliance2014correction RD CY 2014FLAT RATE5,00 %EUR22589,960,0022589,96Cross-compliance2015correction RD CY 2014FLAT RATE5,00 %EUR98204,040,0098204,04Cross-compliance2015correction RD CY 2015FLAT RATE5,00 %EUR33486,890,0033486,89Cross-compliance2016correction RD CY 2015FLAT RATE5,00 %EUR90178,070,0090178,07Certification2016EAFRD - Clearance of accounts decision related to the last execution year (Q5 - 16.10.2014-31.12.2015) in respect of the 2007-2013 programming period.ONE OFFEUR– 3041420,01– 9024,71– 3032395,30Certification2015Expenditure declared in the last execution year for Rural Development measure 511 which was not declared in the financial year when the actual payment was madeESTIMATED BY AMOUNTEUR– 939516,000,00– 939516,00Certification2016Extrapolated error for the 5th quarter (Q5 - 16.10.2015-31.12.2015) of the last execution year for the EAFRD non-IACS population (EUR 63248,59)ESTIMATED BY AMOUNTEUR– 63248,59– 21747,68– 41500,91 Cross-compliance2014RD - CY 2013 - Deficient checks of SMRs 2, 7, 8, 9, 11, 12, 16-18 - Missing GAEC Crop rotation - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 129966,150,00– 129966,15Cross-compliance2014RD - CY 2014 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Missing GAEC Crop rotation - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 204951,050,00– 204951,05Cross-compliance2015RD - CY 2014 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Missing GAEC Crop rotation - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 220275,94– 881,07– 219394,87Cross-compliance2015RD - CY 2015 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 24809,88– 164,16– 24645,72Cross-compliance2016RD - CY 2015 - Deficient checks of SMRs 2, 9, 11, 12, 16-18 - Tolerances and leniency of the sanctioning systemFLAT RATE5,00 %EUR– 1626056,750,00– 1626056,75Certification2015The MLE for Q1-Q4 EAFRD populationESTIMATED BY AMOUNTEUR– 2849591,00– 257376,75– 2592214,25Total PT:EUR– 11241766,81– 289194,37– 10952572,44

Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactRORural Development EAFRD Investment - public beneficiaries2014Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 3923959,540,00– 3923959,54Rural Development EAFRD investment - private beneficiaries2015Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 3280175,580,00– 3280175,58Rural Development EAFRD investment - public beneficiaries2015Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 2755091,050,00– 2755091,05Rural Development EAFRD Measures with flat-rate support2015Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 260292,180,00– 260292,18Rural Development EAFRD investment - private beneficiaries2016Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 683995,900,00– 683995,90Rural Development EAFRD investment - public beneficiaries2016Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 452827,980,00– 452827,98Rural Development EAFRD Measures with flat-rate support2016Several non-compliances with the legal framework on Public ProcurementESTIMATED BY PERCENTAGE2,44 %EUR– 115226,970,00– 115226,97Total RO:EUR– 11471569,20 0,00– 11471569,20 Member StateMeasureFYReasonTypeCorrection %CurrencyAmountDeductionsFinancial ImpactSERural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2012absence of double financing verificationsFLAT RATE10,00 %EUR– 65461,21– 21733,12– 43728,09Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013absence of double financing verificationsFLAT RATE10,00 %EUR– 620898,88– 15648,02– 605250,86Rural Development EAFRD Investment - public beneficiaries2014absence of double financing verificationsFLAT RATE10,00 %EUR– 291505,90– 86612,45– 204893,45Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013absence of verification of the costs claimsONE OFFEUR– 6970,990,00– 6970,99Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2012absence of verification of the SME criteria and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 55086,77– 18288,81– 36797,96Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013absence of verification of the SME criteria and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 363222,290,00– 363222,29Rural Development EAFRD Investment - private beneficiaries2014absence of verification of the SME criteria and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 245246,39– 72867,78– 172378,61

Rural Development EAFRD investment - private beneficiaries2015absence of verification of the SME criteria and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 64295,860,00– 64295,86Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2008absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 751,030,00– 751,03Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2009absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 320,700,00– 320,70Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2011absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 2236,29– 67,59– 2168,70Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2012absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 113768,81– 37771,25– 75997,56Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 472874,380,00– 472874,38Rural Development EAFRD Investment - private beneficiaries2014absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 347992,77– 103395,86– 244596,91 Rural Development EAFRD Measures with flat-rate support2015absence of verification of the SME criteria and of risk of double financing and deficiencies in the application of selection criteria and in the assessment of costs reasonablenessFLAT RATE10,00 %EUR– 283956,930,00– 283956,93Rural Development EAFRD Axis 1 (2007-2013)2007deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 2143,590,00– 2143,59Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2012deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 131152,67– 87085,37– 44067,30Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2013deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 1241577,53– 2978,52– 1238599,01Rural Development EAFRD Investment - private beneficiaries2014deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 750589,53– 442938,45– 307651,08Rural Development EAFRD Investment - public beneficiaries2014deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 845717,03– 499075,16– 346641,87Rural Development EAFRD investment - private beneficiaries2015deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 264235,270,00– 264235,27Rural Development EAFRD investment - public beneficiaries2015deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 1632649,1828498,30– 1661147,48

Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2008deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 681,880,00– 681,88Rural Development EAFRD Axis 1+3 - Investment orientated measures (2007-2013)2010deficiencies in the application of selection criteria and concerning the assessment of costs reasonablenessFLAT RATE5,00 %EUR– 490,860,00– 490,86Total SE:EUR– 7803826,74– 1359964,08– 6443862,66CurrencyAmountDeductionsFinancial ImpactEUR– 40815166,21– 2238949,56– 38576216,65