EU General Court Judgment in Case T-56/22 United Kingdom v Commission

Wednesday 31th January 2024

EU General Court Judgment in Case T-56/22 United Kingdom v Commission

(Agriculture and fisheries – European Agricultural Guidance and Guarantee Fund (EAGGF))

The United Kingdom (UK) seeks the annulment of Commission Implementing Decision (EU) 2021/2020, on the exclusion from EU financing of some expenditure incurred by the Member States under the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD) at the General Court.

The decision was adopted on November 17, 2021, and the annulment sought concerns the expenditure allegedly incurred by the UK in 2017 amounting to €2,686,358.72.

In March 2018, the Commission had opened an inquiry into the UK’s handling of EAGF and EAFRD funds to UK farmers to verify the conformity of UK’s control of those grant funds with the EU legislation in the years 2015-2019, according to rules laid down in the EU’s common agricultural policy (CAP), Regulation (EU) No 1306/2013.

On December 22, 2020, before the date of the end of Brexit transition period, the Commission sent their final conclusions to the UK, notifying the UK that the control system on the award of EAGF and EAFRD funds to farmers by the UK was contrary to EU law. This prompted the UK to provide a detailed description of the corrective measures implemented.

After concluding the investigation, the Commission sent the UK a summary report on May 18, 2021, claiming, among other things, that the UK failed to take into account related companies in 2017 when checking the “status of active farmers” of the applicants for aid under the EAGF and EAFRD – thus breaching Regulation (EU) 1307/2013.

As a result, it proposed to apply a financial correction amounting to €2,686,358.72.

Background Documents T-56/22