EU orders repayment of euro346.5 million

EU orders repayment of euro346.5 million

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BRUSSELS

The European Union told EU nations Tuesday to repay euro346.5 million ($476.8 million) in farm subsidies they granted illegally in the past decade.

More than a third -- euro132.4 million ($182 million) -- must be recouped from Greece, which the EU head office blamed for "severe and persistent weaknesses" in data keeping in cotton, olive oil and fruit and vegetable production as well as rural development.

In all, the European Commission is seeking reimbursements from 20 of the 27 EU nations. Under EU rules they pay income and other subsidies to their farmers on the EU's behalf.

The worst offenders in paying undeserved benefits to farmers are Poland, which must repay euro92 million ($126.5 million), Spain (euro49 million, or $67 million) and Britain and the Netherlands (both euro18 million, or $25 million).

The EU said irregular payments were found in a wide range of areas -- from fruit and vegetable subsidies to payments for dried fodder and flawed refunds for farm produce exports.

Although the EU has over the years made deep cuts in agricultural subsidies, these still account for 40 percent of the EU's overall budget this year, or euro55 billion ($76 billion).

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/284&format=HTML&aged=0&language=EN&guiLanguage=en

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