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States told to repay €346 million to EU farm budget

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Published 18 March 2010

European Union governments must repay €346.5 million of financial aid from the bloc's farm budget for failing to follow EU spending rules, the European Commission said on Tuesday (16 March).

EU governments are responsible for vetting payments to farmers from the bloc's Common Agricultural Policy. "Inadequate control procedures" in many countries meant that some of the money must be repaid, the Commission said.

Greece is facing the largest repayment, of €124 million, due to inadequate controls on payments for cotton production and "severe and persistent weaknesses" in its rural development payments, the Commission said.

Poland faces a bill for €92 million after the EU executive found "weaknesses" in payments made in 2006-07, while Spain must repay €47.5 million in ineligible costs paid to fruit and vegetable producers.

"This exercise remains a very important instrument in making sure that member states have sufficient controls in place to ensure that taxpayers' money is properly spent," said EU Farm Commissioner Dacian Cioloş.

All of the money repaid by governments will be returned to the EU budget, the Commission said.

(EurActiv with Reuters.)

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