Press Releases

ECA/11/42

Luxembourg, 15 November 2011

ECA issues special report No 11/2011 on whether the design and management of the geographical indications scheme allow it to be effective

The geographical indications (GI) scheme aims to protect product names which are registered as Protected Designation of Origin or Protected Geographical Indication, whose overall wholesale value is estimated at € 15 billion annually. The scheme also provides a potential economic opportunity for farmers and producers of food and can have a positive impact on the rural economies of the EU’s regions, as well as offer an impetus for safeguarding local culture and tradition and provide consumers with the opportunity to be more aware of the origin of the products they consume.

This European Court of Auditors’ (ECA) performance audit assessed whether the Commission manages the GI scheme in a way that would allow it to be effective in meeting its objectives. Three criteria were used for the audit, namely the robustness of the control system defined, the attractiveness of the scheme to potential applicants and consumers’ awareness of it.

The audit concluded that overall, clarification is needed on a number of issues concerning the control system for the GI scheme and there is no clear strategy for promoting and raising awareness of the scheme amongst both producers and consumers:

• the legal provisions do not lay down minimum requirements for Member States’ checks on product specifications;

• the regulation does not clearly define the Member States’ obligation to carry out checks to prevent and detect disallowed practices;

• with the result that most of the national authorities audited do not carry out regular checks in view of detecting and suppressing these practices;

• the Commission does not monitor closely the implementation of the GI scheme in the Member States. No audits on the GI scheme have been carried out so far;

• the potential applicants are often not aware of the scheme or are discouraged by the lengthy application procedures;

• consumer recognition of the scheme and its symbols is very low.

The ECA makes a series of recommendations to improve the effectiveness of the GI scheme. The Commission should set out minimum requirements concerning checks on product specifications and lay down clear rules for a control system that provides for regular checks to detect and suppress disallowed practices. The Commission should also develop a strategy for raising awareness of the GI scheme among potential applicants and consumers and for exploring more effective means of promoting the GI scheme to them.