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IP/07/1439

Brussels, 3 October 2007

Commission to recover € 145.2 million of CAP expenditure from the Member States

A total of € 145.2 million of EU farm money unduly spent by Member States is claimed back as a result of a decision adopted by the European Commission. The money returns to the Community budget because of inadequate control procedures or non-compliance with EU rules on agricultural expenditure. Member States are responsible for paying out and checking expenditure under the Common Agricultural Policy (CAP), and the Commission is required to ensure that Member States have made correct use of the funds.

Commenting on the decision, Mariann Fischer Boel, Commissioner for Agriculture and Rural Development, said: “We have been working very hard to ensure the best possible control over farm spending. This is taxpayers’ money and we have to ensure effective controls on how it is used. We have made great strides in improving our controls and these efforts will continue in the future.”

Main financial corrections

Under this latest decision, the 25th since the 1995 reform of the system for recovering unduly spent CAP money, funds will be recovered from Belgium, Germany, Denmark, Spain, France, Great Britain, Ireland, Italy, the Netherlands, Portugal and Sweden. The most significant individual corrections are:

  • € 76.4 million charged to Italy for insufficient quality and quantity of controls in olive oil production sector;
  • € 49.7 million charged to France for weaknesses in recognition criteria performed by the producers' organisations;
  • € 6.2 million charged to Italy for weaknesses in controls of dried fodder production and of financial documents underlying claims for payments;
  • € 3.7 million charged to Sweden for insufficient quantity and quality of the on-the-spot checks and low quality of the remote sensing checks in area aids scheme;

For details on how the clearance of annual accounts system works, see MEMO/06/178

Full details of the recoveries for the latest decision, by Member State and by sector are given in the tables attached (annexes I and II).

Annex I

Clearance of accounts of EAGGF – Guarantee section

Decision 25: Corrections by Member state


Amount in million EUR
Belgium
Financial audit: non-respect of payment deadlines
0.05
Germany
Exceptional market measures - over thirty months slaughter (OTMS) scheme: weaknesses in documentation and on-the-spot controls
1.47
Direct payments: poor follow-up of overclaims identified following the establishment of LPIS-GIS (Land Parcel Identification System)
0.03
Denmark

Financial clearance
0.01
Financial audit: overshooting of financial ceilings
0.12
Spain

Milk quota: undeclared milk deliveries
1.35
Arable crops: sanctions and exclusion due to intentional non-compliance were not applied (Art. 33 of R. 2419/2001)
0.55
Fruits and Vegetables – citrus processing: reimbursement following partial annulment of Commission Decision 2004/136/EC by the Judgment of the Court of Justice in case T-220/04
-0.98
Meat Premiums – bovines: systematic late on-the-spot controls
0.42
Public storage of butter: undue financing costs
0.21
France

Financial audit: non-respect of payment deadlines
0.70
Fruits & Vegetables – Producers' Organisations: non-respect of recognition criteria
49.72
Meat Premiums – Bovines: weaknesses regarding controls of animals identified only by tattoos
0.35
Ireland

Financial audit: non-respect of payment deadlines
1.06
Italy

Dried fodder production aid: weaknesses in controls of dried fodder production and of financial documents underlying claims for payments
6.22
Meat Premiums – Bovines: systematic late controls on the spot
0.75
Olive Oil – Production Aid: insufficient quality and quantity of controls in olive oil production sector
76.43
The Netherlands

Financial audit: non-respect of payment deadlines
0.2
Financial audit: overshooting of financial ceilings
0.06
Great Britain

Financial audit: overshooting of financial ceilings
0.80
Portugal

Wine – Restructuring Aid: weaknesses in key on-the-spot controls and in determination of the eligible areas
1.97
Sweden

Area aids: insufficient quantity and quality of the on-the-spot checks and low quality of the remote sensing checks
3.73

TOTAL
145.22

Annex II

Clearance of accounts of EAGGF – Guarantee section

Decision 25: Corrections by Sector


In Mio. €


Fruits & vegetables
48.74


Milk products
1.35


Intervention storage
1.68


Wine
1.97


Meat Premiums
1.52


Area Aids
4.31


Olive Oil and other oils and fats
76.43


Dried fodder and seeds
6.22


Financial audit: late payments
2.01


Other corrections
0.99


TOTAL
145.22


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