L 188/36 Official Journal of the European Union 20.7.2005 COMMISSION COMMISSION DECISION of 15 July 2005, 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(2005) 2685) (Only the Spanish, Danish, German, Greek, English, French, Italian, Dutch and Portuguese texts are authentic) (2005/555/EQ) 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 (1), 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 (3), and in particular Article 7(4) thereof, Having consulted the Fund Committee, Whereas: (1)  Article 5 of Regulation (EEC) No 729/70, Article 7 of Regulation (EC) No 12581999, 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 (}), provide that the Commission is to make the necessary verifications, () O] L 94, 2841970, p. 13. Regulation as last amended by Commission Regulation (EC) No 1287/95 (O] L 125, 8.6.1995, p. 1). () OJ L 160, 26.6.1999, p. 103. (®) OJ L 158, 8.7.1995, p. 6. Regulation as last amended by Regulation (EC) No 465/2005 (O] L 77, 23.3.2005, p. 6). inform the Member States of its findings, take account of the Member States comments, initiate Dbilateral discussions and then formally communicate its conclusions to the Member States, referring to Commission Decision 94/442]EC of 1 July 1994 setting up a conciliation procedure in the context of the clearance of the accounts of the European Agri- cultural Guidance and Guarantee Fund (EAGGF) Guarantee Section (*). (2)  The Member States have had an opportunity to request that a conciliation procedure be initiated. That oppor- tunity has been used in some cases and the report issued on the outcome has been examined by the Commission. (3)  Under Articles 2 and 3 of Regulation (EEC) No 729/70 and Article 2 of Regulation (EC) No 1258/1999, only refunds on exports to third countries and intervention to stabilise agricultural markets, respectively granted and undertaken according to Community rules within the framework of the common organisation of the agri- cultural markets, may be financed. (4)  In the light of the checks carried out, the outcome of the bilateral discussions and the conciliation procedures, part of the expenditure declared by the Member States does not fulfil these requirements and cannot, therefore, be financed under the EAGGF Guarantee Section. () OJ L 182, 16.7.1994, p. 45. Decision as last amended by Decision 2001/535[EC (O] L 193, 17.7.2001, p. 25).