Member states fined over 54 mn euro for misspent CAP funds
By Ed Bray | Thursday 16 February 2012
The European Commission has called on member states to recover some €54.3 million in EU agricultural funds that have been misspent, with the UK, the Netherlands and Italy facing the highest fines. In an announcement, on 16 February, the Commission said Common Agricultural Policy (CAP) funds worth some €115.2 million had been unduly spent by member states, but they will have to recover less than half this amount when previous funding corrections are factored in.
The UK will have to pay back almost €30 million to the Commission for failing to enforce EU environmental rules for farmers in the period between 2007 and 2010. A similar fine of €14.5 million was handed out to the Dutch authorities for the same reason. Italy was fined €21.5 million for poor controls on mills and compatibility of yields for olive oil during the period between 2005 and 2006. Meanwhile, Lithuania was hit by a fine of just over €8.5 million for weaknesses in its mapping of land areas and on-the-spot checks. Greece received some welcome news that the Commission would reimburse Athens to the tune of €34.5 million, after it mistakenly fined Athens for CAP funding errors.
Commission officials said the decision followed a ruling by the EU Court of Justice, on 9 September 2011, which partially annulled fines imposed in 2005 over irregularities in EU payments to Greek livestock and fruit farmers.
Member states are responsible for managing the majority of CAP payments through their paying agencies. Still, the EU executive carries out over 100 audits per year to oversee member state controls. The average correction rate per financial year has been 1.5%. The money returned will be reclaimed as part of the EU budget.