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EU transparency to cover CAP pay-outs?

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Published 04 May 2006, updated 15 May 2007

A proposal to disclose the identity of those at the receiving end of EU funds - mainly farmers and fishermen - could face opposition from member states such as France which currently claim privacy over agriculture payments.

Commission Vice-President Siim Kallas kicked-off a debate on Wednesday (3 May) over whether member states should disclose the beneficiaries of the €86.6 billion of EU money distributed every year to farmers, fishermen or NGOs carrying out humanitarian projects abroad.

Presenting his 'Green Paper' on a European Transparency Initiative, the Anti-Fraud and Administrative Affairs Commissioner from Estonia said he was "surprised" at how little information is currently made available to the public on these issues, due to "explicit confidentiality" rules.

Information on beneficiaries of EU money spent jointly with member states is currently in the hands of national governments, says the Commission, which points out that "any disclosures on the subject are left to their discretion".

At stake is the Common Agricultural Policy (CAP), which still absorbs some 40% of the Community's annual €100 billion euro budget.

France (22% of total CAP payments in 2004), Spain (15%) and Germany (14%), who currently receive the largest chunk of agriculture payments, have all decided not to publish information on beneficiaries. Of the big agricultural states, only Italy (12%) has decided to publish this information, along with the UK (9%).

Positions: 

In an analysis published last year by the Centre for European Policy Studies (CEPS), Prof. Richard Baldwin (Graduate Institute of International Studies, Geneva) links the rejection of the EU constitution in France with inequality on CAP payments. 

According to Baldwin, one-quarter of all CAP payments in France goes to a minority (5%) of farmers, who are usually the richest and largest ones. By contrast, he says, two-fifths of French farmers - the small ones - receive together only 5% of CAP subsidies.

"For decades, the French political elite have manipulated images of humble farmers to provide huge subsidies to the agricultural elite - industrial-scale farmers and wealthy landowners," Baldwin says. "It is exactly this sort of 'we-know-what-is-good-for-you' attitude that the French rejected," he adds.

According to the French permanent representation to the EU in Brussels, the list of CAP beneficiaries is not published in France due to data protection laws. Spokesperson Nicolas de la Granville said France's official reaction to the Green Paper would follow in the coming weeks.

Next steps: 
  • 31 August 2006: Closing of public consultation on the Green Paper
  • EurActiv will cover reactions to the Transparency Initiative in a forthcoming article
Background: 

In a Communication issued in November last year, Anti-Fraud and Administrative Affairs Commissioner Siim Kallas proposed to launch a European Transparency Initiative focusing on four fields (EurActiv, 14 Nov. 2005):

  • increasing information on beneficiaries of EU funds 
  • fighting fraud
  • lobbying transparency
  • ethical standards and accountability of EU lawmakers

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