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Commission to recover EUR 265.02 million of CAP expenditure from the Member States
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16/07/2010 00:00:00

A total of EUR 265.02 million (GBP 223.5m) 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 CioloĊŸ, 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 Austria, Denmark, Finland,  Germany, Hungary, Luxembourg, Slovakia, Slovenia, Spain and United Kingdom. The most significant individual corrections are:

  • EUR 137.0 million[1](GBP 115.6m) charged to United Kingdom – England forweaknesses in the Land Parcel Identification System (LPIS-GIS), in the administrative procedure as regards controls and cross checks, deficiencies in the risk analysis, and for incorrect calculation of payments and sanctions;

  • EUR 52.4 million[2](GBP 45.7m)  charged to United Kingdom – England for, inter alia, insufficient checks of beneficiaries under the investors category of the National Reserve, transcription errors, absence of control with regard to new farmers;

  • EUR 33.7 million (GBP 28.4m)  charged to United Kingdom – Northern Ireland for weaknesses related to the LPIS-GIS, and in on-the-spot checks and deficiencies in the application of regulatory sanctions;

  • EUR 11.0 million(GBP 9.3m) charged to Hungary for incorrect exchange rate and value added tax incorrectly included for establishing the purchase value of white sugar into public storage.

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 below (annexes I and II).

 

For more information, please contact the London press office on 020 7973 1971.

Please note: all amounts expressed in sterling are for information purposes only.


 

[1] Taking account of other financial corrections already applied on the budget lines concerned and amounts already credited by the UK, the financial impact of the correction is EUR 104.6 million (GBP 88.2m).

[2] As part of the amounts to be corrected has already been recovered in the context of a separate enquiry, the net correction (cash effect) amounts to EUR 46.5 million (GBP 39.2m).

    Annex I

    Clearance of accounts of EAGF and EAFRD

    Decision 33: Corrections by Member state

     

    Sector and reason for correction

    Amount in million EUR

     

     

     

    Austria

     

    Livestock premiums – deficiencies in the functioning of the control systems as regards the suckler cow premium and non-application of sanctions under the slaughter scheme

    0.038

    Rural development (Measure f. 'Agri-environment' and Measure e. 'Less-Favoured areas') – not taking into account the results of checks carried out until 2004 during administrative checks, and non-verification of the use of mineral fertilizers during the on-the-spot controls

    1.049

    Financial Audit – late payments and overshooting of financial ceilings

    0.721

     

    Denmark

     

    Financial Audit – overshooting of financial ceilings and RD allocations

    1.172

    Financial Audit – overshooting of ceilings of RD allocations

    3.820

     

    Finland

     

    Financial Audit – exceeding the rural development allocations for several measures of the Rural Development Programme 2000-2006

    1.672

     

    Germany

     

    Fruits and vegetables – weaknesses in the control system concerning the recognition of producer organisations, overstatement of the value of marketed production, and ineligible expenditure as regards costs incurred for planting fruit trees

    6.879

    Area Aids – use of the inappropriate tool for area measurement during on-the-spot checks

    1.373

    Cross-compliance – weaknesses concerning the operation of key controls: farmers selected were not controlled for respect of all requirements for which they should have been controlled

    1.103

     

    Hungary

     

    Export refunds – insufficient sampling and analysis of sugar exported with refunds as the Hungarian authorities did not meet the regulatory minimum control of 5%

    0.134

    Intervention storage – failure to make the necessary quality adjustment for in-situ take-over of cereals into public storage

    0.335

    Intervention storage – incorrect exchange rate used and value added tax incorrectly included for establishing the purchase value of white sugar into public storage

    11.028

    Financial Audit – overshooting of ceilings of SAPS 2005/2006, and separate sugar payment 2006 in the financial year 2007

    1.554

     

    Luxembourg

     

    Area Aids – weaknesses in the control systems as regards LPIS-GIS and in the procedure for on-the-spot controls for the claim years 2005 and 2006

    0.832

     

    Slovakia

     

    Intervention storage – failure to make the necessary quality adjustment for in-situ take-over of cereals into public storage

    0.046

     

    Slovenia

     

    Rural Development – Measure f. 'Agri-environment' and Measure e. 'Less-Favoured areas' – late application of verifications and recovery procedure

    2.281

     

    Spain

     

    Livestock premiums – late on-the-spot checks for special beef premium, weaknesses as regards administrative checks on slaughter premium, and for not applied sanctions

    0.042

    Area Aids - weaknesses in the on-the-spot checks and for incorrect application of reductions and exclusions pursuant to Art 51 of R.796/2004

    5.739

    Area Aids - weaknesses in the control system i.e. on-the-spot checks findings are not fully used to update the information in the LPIS-GIS

    0.141

    Olive Oil and other oils and fats – financing of olive-cultivation GIS: certain work declared to the EAGGF was not eligible for EU funding

    1.297

     

    United Kingdom– England

     

    Area Aids – weaknesses in the LPIS-GIS, in the administrative procedure as regards controls and cross checks, deficiencies in the risk analysis, and for incorrect calculation of payments and sanctions

    137.024

    Area Aids – establishing single payment entitlements: inter alia, insufficient checks of beneficiaries under the investors category of the National Reserve, transcription errors, absence of control with regard to new farmers

    52.433

     

    United Kingdom– Northern Ireland

     

    Area Aids – weaknesses related to the LPIS-GIS, weaknesses related to on-the-spot checks and the application of sanctions and retro-active recoveries of undue payments

    33.722

     

    United Kingdom– Scotland

     

    Area Aids – inaccuracy of the LPIS-GIS and incorrect calculation of reductions and sanctions

    0.514

     

    United Kingdom

     

    Financial Audit – overpayments in the Land Management Contract Schemes

    0.072

     

     

     

    TOTAL

    265.021


    Annex II

    Clearance of accounts of EAGF and EAFRD

    Decision 33: Corrections by Sector

     

     

    In Million €

     

     

    Area Aid

    231.78

     

     

    Animal Premiums

    0.08

     

     

    Cross-compliance

    1.10

     

     

    Export Refunds

    0.13

     

     

    Financial Audit

    9.01

     

     

    Fruits & vegetables

    6.88

     

     

    Olive Oil

    1.30

     

     

    Public Storage

    11.41

     

     

    Rural Development

    3.33

     

     

    TOTAL

    265.02

     

     

     

    Last update: 31/10/2010  |Top