L 329/68 Official Journal of the European Communities 14.12.2001 COMMISSION COMMISSION DECISION of 12 December 2001 excluding from Community financing certain expenditure incurred by Italy under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF) (notified under document number C(2001) 4008) (Only the Italian text is authentic) (2001/889/EC) 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, After consulting the Committee for the European Agricultural Guidance and Guarantee Fund, Whereas: Article 5(2)(c) of Regulation (EEC) No 729/70 stipulates that the Commission is to exclude expenditure from Community financing where it finds that it has not been incurred in accordance with Community rules. The above Article of Regulation (EEC) No 729/70 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 Regulation (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 2025/2001 (¥, 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 bilat- eral discussions to reach an agreement with the Member States concerned and formally communicate its conclu- sions to them, referring to Commission Decision 94/ 4, 28.4.1970, p. 13. 25, 8.6.1995, p. 1. 58, 8.7.1995, p. 6. 74, 17.10.2001, p. 3. N — = \O 0) ) 0] 0] 442[EC of 1 July 1994 setting up a conciliation proce- dure in the context of the clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (°), as last amended by Decision 2001/535/EC (%). The Member States have had the opportunity to request that a conciliation procedure be initiated. That proce- dure has been applied and the report issued on the outcome has been considered by the Commission. Articles 2 and 3 of Regulation (EEC) No 729/70 provide that refunds on exports to third countries and interven- tion intended to stabilise 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 Italy does not meet those conditions and cannot therefore be financed under the EAGGF Guarantee 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 Italy. L 182, 16.7.1994, p. 45. L 193, 17.7.2001, p. 25.