Fine Greece will pay € 392 million due to mismanagement of Community subsidies from 2016 to 2023, mainly due to inadequate controls by the Hellenic Organization for European Funds Management, OPECEPE (Organization for payment and control of Community orientation and guarantees community aid), according to a report in the newspaper “Kathimerini”.
Specifically, irregularities, incomplete controls and mismanagement of Community agricultural subsidies is described in its decision by the European Commission (Commission), which imposes a fine of € 392 million on Greece for OPEKEPE. The Commission states as a basis for its decision under Article 52 of Regulation 1306/2013 and Article 55 of Regulation 2021/2116 and states that European legislation was violated by the funding of Common Agricultural Policy (CAP).
The Commission has imposed a horizontal correction on the amount of subsidies Greece will receive in the coming years, as it considers that the problem is systemic and that there is no proper supervision and operation of the subsidy management model in Greece for many years. In fact, the amount of horizontal correction is increased to 10% as a fine for aid donated in 2018, 2019 and 2020 to support young farmers.
However, the largest amounts of charges, 79 million and 76 million, relate to crops in 2021 and 2022 respectively. Most likely, the state budget will be charged to pay the fine, since there are no specific farmers who have been illegal – and checks have not been carried out. Otherwise, farmers’ subsidies should be cut by 5%horizontally, which is unfair and will bring great political costs.
In addition, according to executives in the agricultural space, this fine is only the principle.