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1.All or part of the pre-financing and payments of the balance may be suspended by the Commission when:
(a)there is a serious deficiency in the management and control system of the programme which affects the reliability of the procedure for certification of payments and for which corrective measures have not been taken; or
(b)expenditure in a certified declaration of expenditure is linked to a serious irregularity which has not been corrected; or
(c)a Member State has not complied with its obligations under Articles 29 and 30.
2.The Commission may decide to suspend pre-financing and payments of the balance after having given the Member State the opportunity to present its observations within a period of three months.
3.The Commission shall end the suspension of pre-financing and payments of the balance when it considers that the Member State has taken the necessary measures to enable the suspension to be lifted.
4.If the necessary measures are not taken by the Member State, the Commission may adopt a decision to cancel all or part of the Community contribution to the annual programme in accordance with Article 44.
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