Brussels Demands over 400 million from Greece Over Faulty Farm Subsidy Controls

07:37 19/6/2025 - Πηγή: iEfimerida

The European Commission has identified serious deficiencies in Greece’s agricultural subsidy control system, demanding the return of 415 million euros in improperly disbursed European Union funds.

The move highlights long-standing concerns in Brussels over the integrity of Greece’s farm subsidy system, a sector that annually receives billions in EU funding.

The substantial amount stems from systemic weaknesses in Greece’s application and oversight mechanisms under the Common Agricultural Policy (CAP), according to Balazs Ujvari, spokesperson for the European Commission.

"Member states are responsible for disbursing and auditing CAP funds, while the Commission ensures sound financial management of the EU budget," Mr. Ujvari said. "When the Commission detects shortcomings in a country’s control system, it takes action to recover amounts unduly paid by member states."

The sum requested from Greece follows a comprehensive EU audit covering the financial years 2016 through 2023.

The latest decision on financial clearance, issued on June 11 and published in the Official Journal on June 13, named 16 countries, with Greece facing the largest penalty.

The Commission found faults in the country’s Land Parcel Identification System (LPIS), deficiencies in on-the-spot checks for eligibility, and gaps in the cross-compliance control system.

A blanket 5% correction was applied to all Greek direct subsidies, increasing to 10% for specific categories like young farmer schemes from 2018 to 2020.

The largest annual penalties targeted area-based payments made in 2021 and 2022.

Mr. Ujvari explained that the process involves a robust verification mechanism to ensure that EU funds were used properly and that national systems guarantee the legality and regularity of payments.

"When weaknesses are found, the Commission opens a compliance clearance procedure to assess whether there is a risk to the EU budget and, if so, what amount must be recovered."

The financial correction for Greece was decided after extensive consultations with the member state, in line with standard procedures.

Mr. Ujvari also clarified that the current financial penalty is unrelated to an ongoing criminal investigation by the European Public Prosecutor’s Office (EPPO) into OPEKEPE, Greece’s agricultural payments agency.

The probe, which has led to charges against dozens of individuals and the Greek government's decision last month to shut down OPEKEPE and transfer its responsibilities to the tax authority, focuses on alleged large-scale fraud involving fictitious pasturelands and agricultural activities that never took place. However, the Commission's fine adds to the mounting pressure on Greece's agricultural sector, underscoring systemic failures that have long been under scrutiny.

By Yiorgos Pappous

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