28.6.2003 Official Journal of the European Union L 160/83 COMMISSION COMMISSION DECISION of 27 June 2003 on the financial treatment to be applied, in the context of clearance of expenditure financed by the European Agricultural Guidance and Guarantee Fund Guarantee Section, in certain cases of irregularity by operators (notified under document number C(2003) 1968) (Only the Spanish, Danish, German, Greek, English, French, Dutch and Portuguese texts are authentic) (2003/481/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), ) Having regard to Council Regulation (EEC) No 595/91 of 4 March 1991 concerning irregularities and the recovery of sums wrongly paid in connection with financing of the common agricultural policy and organisation of an information system in this field and for repealing Regulation (EEC) No 283/72 (), and in particular Article 5(2) thereof, After consulting the Fund Committee, Whereas: (1) Under Article 8(1) of Regulation (EEC) No 729/70 Member States are to take action to prevent and deal with irregularities and recover sums lost as a result of 4 () O (O 0] () O () OJ L 125, 8.6.1995, p. 1. () O () OJ L 67,14.3.1991, p. 11. () o) L 94, 28.4.1970, p. 13. irregularities or negligence. Article 8(2) specifies that in the absence of total recovery the financial losses conse- quent on irregularities or negligence are to be met by the Community unless the irregularities or negligence are attributable to administrative authorities or other bodies of the Member States. Articles 3 and 5(1) of Regulation (EEC) No 595/91 require Member States to notify the Commission of irre- gularities discovered, proceedings instituted and amounts recovered. Article 5(2) 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 application of Council Regulation (EEC) No 729/70 regarding the procedure for clearance of the accounts of the EAGGF Guarantee Section (), as last amended by Regulation (EC) No 2025/2001 (°), provide that the Commission is to make the necessary verifications, inform the Member State of its findings, consider the Member State's obser- vations, initiate bilateral discussions in the aim of reaching agreement with it and formally communicate its conclusions to the Member State, referring to Commission Decision 94[442[EC of 1 July 1994 setting up a conciliation procedure in the context of clearance of the accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (°), last amended by Decision (EC) No 2001/535/EC (). L 158, 8.7.1995, p. 6. L 274, 17.10.2001, p. 3. L 182, 16.7.2001, p. 45. L 193, 17.7.2001, p. 25.