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Commission to recover € 578.5 million of CAP expenditure from the Member States

European Commission - IP/10/1470   05/11/2010

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IP/10/1470

Brussels, 5 November 2010

Commission to recover 578.5 million of CAP expenditure from the Member States

A total of € 578.5 million of EU farm money unduly spent by Member States is claimed back as a result of a decision adopted today by the European Commission. This money returns to the EU budget because of non-compliance with EU rules or inadequate control procedures 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, Dacian Cioloş, Commissioner for Agriculture and Rural Development, said: “We are working hard to achieve the best possible control of farm spending in order to verify that taxpayers money is not being misspent"

Main financial corrections

Under this latest decision, funds will be recovered from Bulgaria, Cyprus, Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, Ireland, Lithuania Poland, Portugal, Romania, Slovenia, Spain, Sweden, the Netherlands, and United Kingdom. The most significant individual corrections are:

  • € 210.9 million charged to Greece for poor LPIS-GIS and deficiencies in on-the spot controls in respect of claim year 2006 for area-aids expenditure, including area-based rural development measures;

  • € 54.7 million charged to Greece with regard to dried grapes for reductions in the minimum yield, plot specialisation, ineffective vineyard register and weaknesses in scheme management and control for the financial years 2003-2007;

  • € 50.16 million charged to Greece for failure to reduce aid payments for non respect of veterinary requirements regarding the maintenance of sheep registers, for deficiencies in on-the-spot and administrative checks and for absence of specific risk criteria for Less Favoured Area additional premium controls;

  • € 41.7 million charged to Romania for weaknesses in the LPIS-GIS, administrative controls and sanctions application;

  • € 40.69 million charged to Portugal for weaknesses in the LPIS-GIS, deficiencies in the risk analysis for control, insufficient number and quality of on-the-spot checks, incorrect application of sanctions, inadequate guidelines and deficiencies in administrative checks for area-aids expenditure including area-based rural development measures;

  • € 28.94 million charged to The Netherlands for the absence of a key control concerning payment of minimum price to producers in financial years 2003 to 2008;

  • € 20.2 million charged to Bulgaria for poor LPIS-GIS and deficiencies in on-the spot controls in respect of claim year 2006 for area-aids expenditure, including area-based rural development measures;

  • € 19.76 million charged to Greece for tobacco deliveries after the regulatory deadlines, incorrect approval of first processors and transfer of cultivation contracts.

For more information:

For details on how the clearance of annual accounts system works, see MEMO/06/178 and the factsheet "Managing the agriculture budget wisely", available on the internet at: http://ec.europa.eu/agriculture/fin/clearance/factsheet_en.pdf.

Details of the individual corrections, by Member State and by sector, are given in the tables attached (annexes I and II).

Annex I

Clearance of accounts of EAGF and EAFRD

Decision 34: Corrections by Member state

Sector and reason for correction

Amount in million EU

Czech Republic

 

Export refunds - correction proposed for insufficient sampling for physical checks resulting in the Czech authorities not meeting the regulatory minimum control of 5% for a number of customs offices and product sectors in calendars years 2004 and 2005.

0.67

France

 

Export refunds - for deficiencies in the checks on the transport of live animals for export.

0.359

Milk and Milk Products - the supplementary levy due on 22 000 tonnes of under-declared milk deliveries for the 2002-2003 milk year.

7.647

Livestock Premiums - for incorrect application of sanctions with regard to aid for the fisheries and aquaculture sector in respect to financial years 2005 to 2007.

0.119

Area aid - for weakness in the method used to select parcels for inspection and in the procedure to establish the exact size of areas for claim years 2005 and 2006.

7.945

Financial audit - late payments, overshooting of financial ceilings, certification

1.303

Financial audit - financial clearance

3.667

Greece

 

Fruit and vegetables: corrections proposed with regard to dried grapes for reductions in the minimum yield, plot specialisation, ineffective vineyard register and weaknesses in scheme management and control for the financial years 2003-2007

54.702

Tobacco - for tobacco deliveries after the regulatory deadlines, incorrect approval of first processors and transfer of cultivation contracts between first processors for the 2006 financial year.

19.761

Posei - deficient controls of specific measures for the smaller Aegean Islands for financial years 1999-2001 (continuation of an earlier conformity clearance procedure annulled by the Court of Justice at a lower flat rate correction).

3.97

Livestock premium - for the financial years 2004 to 2006 for failure to reduce aid payments for non respect of veterinary requirements regarding the maintenance of ovine registers, for deficiencies in on-the-spot and administrative checks and for absence of specific risk criteria for Less Favoured Area additional premium controls.

50.166

Area aid - for poor LPIS-GIS and deficiencies in on-the spot controls in respect of claim year 2006 for area-aids expenditure, including area-based rural development measures.

210.913

Cross Compliance - for inadequate documentation of and deficiencies in the controls carried out, for incomplete control instructions, for non-application of sanctions for non-compliance and for absence of a risk analysis in respect of the 2005 claim year.

4.168

Financial audit - for late payments, overshooting of financial ceilings, rural development allocations and ineligible expenditure for the financial year 2007.

3.778

Financial audit - correction proposed for overshooting of financial ceilings in 2008.

0.012

Italy

 

Milk and Milk Products - incorrect application of sanctions with regard to the skimmed milk powder content of animal feed for financial years 2003-2005.

1.688

Area Aid - for deficiencies in area aid controls carried out and poor LPIS-GIS for claim year 2006, for incorrect application of reductions and exclusions for 2007 and for failure to increase the level of control for the nut sector for 2004/2005 in reaction to a high level of anomalies found.

22.814

Financial audit - for deficiencies in debt management for financial year 2009.

14.257

Poland

 

Intervention Storage - for incorrect booking of sugar and cereals movements in 2006 and 2007.

1.021

Rural Development - Less Favoured Areas (LFAs) and Agri-Environmental Measures for financial year 2006 for weaknesses in cross-checks on-the-spot controls and for incorrect application of sanctions.

15.282

Hungary

 

Intervention Storage - reimbursement of technical, financial and other costs in respect of intervention maize due to incorrect booking.

-3.069

Rural development Recovery of amount over-reimbursed due to exchange rate differences following double correction (under Commission Decisions 2009/721/CE, 2010/152/EU and recover order GFO.09.025 concerning TRDI programme 2004HU06GDO001).

0.002

The Netherlands

 

Potato Starch - the absence of a key control concerning payment of minimum price to producers in financial years 2003 to 2008.

28.947

Dried Fodder and Seeds - for weaknesses in the sampling and weighing procedure and for non-application of sanction in respect of financial years 2005 to 2007.

0.356

Portugal

 

Posei - for weaknesses in area checks by the authorities of Madeira with regard to financial years 2005 to 2007.

0.743

Livestock Premiums - for financial years 2004 to 2006 for payment of ovine premium to farmers without the minimum number of entitlements, for weakness in the on-farm registers and the non application of sanctions for irregularities found therein.

2.761

Area aid - weaknesses in the LPIS-GIS, deficiencies in the risk analysis for control, insufficient number and quality of on-the-spot checks, incorrect application of sanctions, inadequate guidelines and deficiencies in administrative checks for area-aids expenditure including area-based rural development measures.

40.691

Financial audit - for late payments and for overshooting of financial ceilings

0.531

Financial audit - financial clearance

1.009

Slovenia

 

Livestock Premiums - for special beef premium unduly paid for animals slaughtered prior to Accession, for deficiencies in or absence of various on-the-spot controls, for payment of ovine premium to farmers without the minimum number of entitlements.

3.812

Spain

 

Livestock Premiums - for failure of slaughterhouses to transmit slaughter dates to the database with regard to financial years 2006 and 2007.

0.153

Financial audit - for late payments, for overshooting of financial ceilings, for ineligible expenditure and for recovery of milk levy for 2009.

4.759

Romania

 

Area Aid - for weaknesses in the LPIS-GIS, administrative controls and sanctions application in respect of claim year 2008.

41.707

Financial audit - for late payments for 2008.

4.659

Bulgaria

 

Area Aid - for poor LPIS-GIS and deficiencies in on-the spot controls in respect of claim year 2008 for area-aids expenditure, including area-based rural development measures.

20.202

Cyprus

 

Rural Development - Less Favoured Areas (LFAs) and Agri-Environmental Measures for claim year 2004 for failure to increase the level of control in reaction to the high level of anomalies found.

0.341

Financial audit - for overshooting of financial ceilings for 2009.

0.32

Germany

 

Financial audit - for late payments, overshooting of financial ceilings and ineligible expenditure for the financial year 2009.

1.989

Financial audit - financial clearance

0.413

Ireland

 

Financial audit - for late payments

0.133

United Kingdom

 

Financial audit - for late payments and for overshooting of financial ceilings for 2009

3.779

Denmark

 

Financial audit - for overshooting of financial ceilings for 2009.

0.004

Lithuania

 

Financial audit - financial clearance

0.043

Sweden

 

Financial audit - for overshooting of financial ceilings for 2009.

0.013

TOTAL

578.54

Annex II

Clearance of accounts of EAGF and EAFRD

Decision 34: Corrections by Sector

In Million €

Area Aid

313.866

 

 

Livestock Premiums

57.011

Cross-compliance

4.168

Export Refunds

1.029

Fruit & vegetables

54.702

Potato Starch

28.947

Milk and Milk Products

9.335

Intervention Storage

1.021

Tobacco

19.761

 

 

Posei

4.713

Dried Fodder and Seeds

0.356

Rural Development & RD Guarantee

46.029

Financial Audit & Accounting corrections

37.607

TOTAL

578.545


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