A total of €436 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.
As some of these amounts have already been recovered from the Member States, the financial impact is somewhat lower at €426 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. In order to take account of the financial pressures being felt by some Member States due to the financial crisis, the Commission has adopted a regulation allowing Member States under financial assistance to delay, on certain conditions, the reimbursement of disallowed funds for up to 18 months. This comes in addition to existing options to request that the reimbursement be spread over a limited number of years. The first Member State to apply for this facility is Greece.