Judgment of the General Court (Eighth Chamber) of 11 July 2018.Europa Terra Nostra e.V. v European Parliament.Law governing the institutions — European Parliament — Decision awarding a grant to a political foundation — Pre-financing amount fixed at 33% of the maximum amount of the grant awarded — Obligation to provide a pre-financing bank guarantee — Financial Regulation — Rules for the application of the Financial Regulation — Regulation (EC) No 2004/2003 on the regulations governing political parties at European level and the rules regarding their funding — Proportionality — Misuse of powers.Case T-13/17.

Judgment // 11/07/2018 // 3 min read
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Judgment of the General Court (Eighth Chamber) of 11 July 2018 –Europa Terra Nostra v Parliament

(Case T‑13/17)

(Law governing the institutions — European Parliament — Decision awarding a grant to a political foundation — Pre-financing amount fixed at 33% of the maximum amount of the grant awarded — Obligation to provide a pre-financing bank guarantee — Financial Regulation — Rules for the application of the Financial Regulation — Regulation (EC) No 2004/2003 on the regulations governing political parties at European level and the rules regarding their funding — Proportionality — Misuse of powers)

  1. EU budget — Financial regulation — Award of pre-financing — Obligation to lodge a bank guarantee — Inapplicability in the event of low value grants — Concept of low value grants

(European Parliament and Council Regulation No 966/2012, Art. 134(1) and (2); Commission Regulation No 1268/2012, Arts 185 and 206(1))

(see paras 33-37)

  1. European Parliament — Funding of European political parties — Award of pre-financing grants — Verification procedure — Conditions for starting the procedure — Requirement to produce supporting evidence — None — Requirement to show the probability of the effective exclusion of pre-financing from EU funding — None

(European Parliament and Council Regulations No 2004/2003, Art. 5(2), and No 966/2012, Art. 134(1); Commission Regulation No 1268/2012, Art. 206(1); European Parliament’s Rules of Procedure, Art. 225(1) and (2); Decision of the Bureau of the European Parliament laying down the procedures for implementing Regulation No 2004/2003, Art. 6(1))

(see paras 44-46, 52)

  1. EU law — Principles — Right to effective judicial protection — Scope

(Charter of Fundamental Rights of the European Union, Art. 47)

(see para. 58)

  1. EU law — Principles — Duty to act within a reasonable time — Administrative procedure — Criteria for assessment

(Charter of Fundamental Rights of the European Union, Art. 41(1))

(see para. 68)

  1. Judicial proceedings — Application initiating proceedings — Formal requirements — Brief summary of the pleas in law on which the application is based

(Rules of Procedure of the General Court, Art. 76(d))

(see para. 76)

  1. Plea of illegality — Plea raised at the stage of the reply — Inadmissibility

(Art. 277 TFEU; Rules of Procedure of the General Court, Art. 84(2))

(see para. 83)

  1. EU law — Principles — Protection of legitimate expectations — Conditions — Specific assurances given by the authorities

(see para. 88)

  1. EU law — Principles — Proportionality — Scope

(Art. 5(4) TEU)

(see para. 94)

  1. Judicial proceedings — Application for measures of inquiry and organisation of procedure — Conditions

(Rules of Procedure of the General Court, Art. 88(2))

(see para. 103)

  1. European Parliament — Funding of European political parties — Refusal of a grant application — Infringement of the rights of free speech and freedom of association — None

(Charter of Fundamental Rights of the European Union, Arts 11 and 12; European Parliament and Council Regulation No 2004/2003)

(see para. 115)

  1. Actions for annulment — Pleas in law — Misuse of powers — Meaning

(Art. 263 TFEU)

(see para. 119)

Re:

Action under Article 263 TFEU for the annulment in part of Decision FINS-2017-30 of the European Parliament of 12 December 2016 relating to the award of a grant to the applicant, in so far as that decision limits the pre-financing amount to 33% of the maximum amount of the grant and makes its payment conditional on the provision of a bank guarantee.

Operative part

The Court:

  1. Dismisses the action;

  2. Orders Europa Terra Nostra eV to pay the costs.

Provisions governing the Institutions