Brussels announced Friday that it would seek to recover a total of €60m of EU funds claimed by the Spanish and Dutch governments under the Common Agricultural Policy (CAP). The move is part of a crackdown by auditors which will see the Commission attempt to claw back €530m from member states across the economic bloc.
Integral part
The Netherlands has been told to repay €22.69m for “ineligible costs for printing on packages and ineligible expenditure by a producer organisation with decentralised marketing in respect of fruit and vegetables”.
The financial problem was discovered during an on-the-spot check by inspectors and in part relates to costs for printing of quality labels on cardboard packaging. EU auditors said the project was ineligible for aid under Regulation 1433/2003 as it was part of the general cost of production.
A Commission memo said that regarding the use of flat rates, only “real costs are eligible” for EU cash. It added that because printing on packaging was an integral of the process, it did not qualify under EU rules.
Only if imprints are part of “promotional actions under an approved operational programme, can they be considered for EU co-financing”, said the EC. “Given the generic nature of the instructions issued by the Dutch authorities, this is clearly not the case.”
MS responsibility
The EC declared it would also be reclaiming €37.25m from Spain with regard to ineligible costs for environmental management of packaging and ineligible expenditure with regard to fruit and vegetables.
The Madrid government faces a further €70.96m reclaim after EC inspectors spotted problems with olive oil crops.
However, Greece could be forced to repay a total of €260m over “major shortcomings” in olive oil cultivation and control, along with poor scrutiny of Land Parcel Identification System.
Under its financial control system, the Commission can demand the money be paid back because the claims did not comply with EU rules or because the controls on expenditure were lax.
“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,” said Brussels.