21.2.2001 Official Journal of the European Communities L 50/9 COMMISSION COMMISSION DECISION of 5 February 2001 excluding from Community financing certain expenditure incurred by the Member States under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (notified under document number C(2001) 198) (Only the Danish, German, Greek, Spanish, French, Italian, Dutch, Portuguese, Swedish and English texts are authentic) (2001/137EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (), as last amended by Regulation (EC) No 1287/95 (3), and in particular Article 5(2)(c) thereof, Having regard to Council Regulation (EC) No 1258/1999 of 17 May 1999 on the financing of the common agricultural policy (}), and in particular Article 7(4) thereof, After consulting the Committee of the European Agricultural Guidance and Guarantee Fund, Whereas: (1)  Article 5(2)(c) of Regulation (EEC) No 729/70 and Article 7(4) of Regulation (EC) No 1258/1999 stipulate that the Commission is to exclude expenditure from Community financing where it finds that it has not been incurred in accordance with the Community rules. (2)  Those Articles of Regulations (EEC) No 729/70 and (EC) No 1258/1999 and Article 8(1) and (2) of Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Council Regu- lation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section (%), as last amended by Regulation (EC) No 2245/ 1999 (%), provide that the Commission is to carry out the necessary checks, forward its findings to the Member States, consider any comments from the latter, enter into bilateral discussions to reach an agreement with the Member States concerned and formally communicate its 4, 28.4.1970, p. 13. 25, 8.6.1995, p. 1. 60, 26.6.1999, p. 103. 58, 8.7.1995, 73, 23.10.199 N = = = O p. 6. 9, p. 5. () () L 182, 16.7.1994, 0] 0] conclusions to them, referring to Commission Decision 94/442EC of 1 July 1994 setting up a conciliation procedure in the context of the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (%), as amended by Decision 2000/649/EC (). The Member States have had the opportunity to request that a conciliation procedure be initiated. That proce- dure has been applied in some cases and the reports issued on the outcome have been considered by the Commission. Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999 provide that refunds on exports to non-member countries and inter- vention intended to stabilise the agricultural markets may be financed only where they are, respectively, granted and undertaken in accordance with the Community rules governing the common organisation of the agricultural markets. The findings of checks performed, the results of bilateral discussions and the outcome of the conciliation proced- ures have shown that some expenditure declared by the Member States does not meet those conditions and cannot therefore be financed under the EAGGF Guar- antee Section. The Annex to this Decision sets out the amounts that are not recognised as being chargeable to the EAGGF Guarantee Section. Those amounts do not relate to expenditure incurred more than 24 months before the Commission's written notification of the results of the checks to the Member States. p. 45. L 272, 25.10.2000, p. 41.