Tuesday, February 26, 2013

EU Reclaims EUR414 Million in Misspent Agricultural Funds


By Michael Haddon
The European Union's executive arm said Tuesday it is claiming back 414 million euros ($541 million) from member states to recoup misspent agricultural funds that formed part of the bloc's farming subsidies scheme.


National governments are responsible for paying out and checking expenditure under the $75 billion-a-year Common Agricultural Policy, with the European Commission bound to ensure they have made correct use of the funds.
The money is being claimed back from 22 member states and will be returned to the EU budget because of non-compliance with rules, or inadequate control procedures on agricultural expenditure, the commission said.
Because some funds have already been recovered, the net financial impact will be around EUR393 million, it added.
The biggest offender was the U.K., which has had to return EUR111.7 million for weaknesses in the checking of land areas eligible for aid, the processing of applications, administrative cross checks and on-the-spot controls.
The net financial impact for the country is EUR99.4 million due to amounts already recovered, or paid back.
Italy has been told to return a total of EUR48.3 million for infringements in cross compliance, including incorrect application of sanctions. The country's net financial impact is EUR48.1 million.
Spain was charged EUR40.6 million for shortcomings in the management and control of export refunds, with weaknesses in execution of physical checks and inadequate checks on sugar production and stocks, while advance notice of physical checks was given.
Other significant individual amounts were EUR34.4 million charged to Poland and EUR29 million charged to France.
Smaller payments were also requested from Belgium, Bulgaria, the Czech Republic, Denmark, Germany, Ireland, Greece, Cyprus, Lithuania, Hungary, Malta, the Netherlands, Romania, Slovenia, Slovakia, Finland and Sweden.


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