Commission to recover €318 million of CAP expenditure from the Member States
European Commission
Press release
Brussels, 4 April 2014
Commission to recover €318 million of CAP expenditure from the Member States
A total of €318 million of EU agricultural policy funds, unduly spent by Member States, is being claimed back by the European Commission today under the so-called clearance of accounts procedure. However, because some of these amounts have already been recovered from the Member States the financial impact of today's decision will be some €315 million. 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.
Main financial corrections
Under this latest decision, funds will be recovered from 11 Member States: Denmark, Germany, Greece, Spain, France, Italy, Portugal, Romania, Slovenia, Finland and UK. The most significant individual corrections are:
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-€ 238.90 million (financial impact 1: €237.83 million) charged to France for weaknesses related to the allocation of entitlements
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-€ 12.94 million (financial impact1: €12.04 million) charged to Portugal for weaknesses related to the cross-compliance
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-€ 10.03 million charged to France for deficiencies in the Young farmer measure and in the control of the subsidised loans.
Following the European Court judgement (T-267/07) against a previous Commission decision, Italy will be reimbursed € 2.11 million.
Background
Member States are responsible for managing most CAP payments, mainly via their paying agencies. They are also in charge of controls, for example verifying the farmer's claims for direct payments. The Commission carries out over 100 audits every year, verifying that Member State controls and responses to shortcomings are sufficient, and has the power to claw back funds in arrears if the audits show that Member State management and control is not good enough to guarantee that EU funds have been spent properly.
For details on how the clearance of annual accounts system works, see MEMO/12/109 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).
Contacts :
Roger Waite (+32 2 296 14 04)
Fanny Dabertrand (+32 2 299 06 25)
For the public: Europe Direct by phone 00 800 6 7 8 9 10 11 or by email
Annex I : Conformity clearance of accounts of EAGF and EAFRD
Decision 44: Corrections by Member state (In Million €)
Sector and reason for correction
Amount of financial impact of the correction 2
Germany
Rural Development - correction proposed for weakness in the project selection process for the measure "Improving and developing infrastructure related to the development and adaptation of agriculture and forestry"
2.83
2.83
Denmark
Fruit and vegetables - correction proposed for weaknesses in control of several recognition criteria, deficiencies in administrative and on-the-spot checks and for unduly recognised producer organisation
1.02
1.02
Cross-compliance - correction proposed for 6 GAEC missing, no check on Minimum requirements for plant protection products and incorrect calculation of sanctions
5.08
5.07
Spain
Other corrections - correction proposed for negligence in the recovery of a debt case and for the incorrect reporting of irregularities
8.59
8.59
Finland
Cross-compliance - correction proposed for 1 GAEC missing and for lenient sanctioning system
3.09
3.08
France
Fruit and vegetables - correction proposed for ineligible expenditure relating to the environmental management of packaging and for unduly recognised producer organisation
5.73
5.73
Area Aids - Undue allocation of entitlements
238.90
237.83
Cross-compliance - reimbursement linked to the correction included in Decision 2013/763/EU
Reimbursement of 0.18
Reimbursement of 0.18
Rural development - correction proposed for deficiencies in the Young farmer measure and in the control of the subsidised loans
10.03
10.03
UK
Fruit and vegetables - correction proposed for bookkeeping errors
0.57
0.57
Animal Premiums - correction proposed for non-application of reductions and exclusions in respect of bovine animals
0.19
0.19
Cross-compliance - correction proposed for ineffective control of SMR and for deficiencies in application of sanctions
2.28
2.26
Cross-compliance - correction proposed for ineffective control of GAEC and SMR and for lenient sanctioning system
5.61
5.51
Rural development - correction proposed for deficiencies in Natural handicaps and Agri-environment measures
0.89
0.62
Greece
Fruit and vegetables - correction proposed for weaknesses in tomato, peaches and pears processing aid scheme
0.68
0.68
Italy
Animal Premiums - correction proposed for deficiencies in the on-the-spot checks, wrong application of sanctions and incorrect allocation of entitlements
6.91
6.89
Other corrections - correction proposed for deficiencies in the accreditation criteria
3.45
3.45
Other corrections - reimbursement following judgement in case T-267/07
Reimbursement of 2.11
Reimbursement of 2.11
Portugal
Export refunds - correction proposed for deficiencies in the physical, substitution and seal checks
0.62
0.62
Animal premiums - correction proposed for unsatisfactory quality of the on-the-spot checks and for the payments of unidentified animals
3.90
3.90
Cross-compliance - correction proposed for several GAEC not defined, lack of checks on SMR and lenient sanctioning system
12.94
12.04
Romania
Cross-compliance - correction proposed for non-definition of certain GAECs, controls partially performed and deficiencies in sanctioning system
4.51
4.24
Slovenia
Cross-compliance - correction proposed for weakness in the control of 5 GAEC and for the lenient sanctioning system
2.17
2.13
TOTAL
317.68
314.98
Annex II : Clearance of accounts of EAGF and EAFRD
Decision 44: Corrections by Sector (In Million €)
Sector
Amount of correction
Amount of financial impact of the correction 3
Area aids / Arable crops
276.25
273.84
Article 69 of Reg.1782/2003
5.04
5.03
Export Refunds
0.62
0.62
Financial Audit
1.74
1.74
Fruit and vegetables
7.60
7.60
Irregularities
8.59
8.59
Livestock premiums
3.90
3.90
Rural development
13.75
13.48
Specific support (Art.68 of Reg.73/2009)
0.19
0.19
TOTAL
317.68
314.98
The financial impact is lower due to amounts already recovered from or paid back by the Member State.
Financial impact of the correction is taking into account the previous overlapping corrections and amounts already recovered by the European Commission
Financial impact of the correction is taking into account the previous overlapping corrections and amounts already recovered by the European Commission