The European Commission has ordered Greece to forfeit €392.2 million in EU funding due to widespread failings in the management and oversight of agricultural subsidies from 2016 to 2023.
The European Commission has imposed a fine of €392.2 million on Greece for mismanagement of EU farm funding and inadequate controls over agricultural subsidies between 2016 and 2023. The Greek agency responsible for overseeing EU farm payments was found to have made payments without sufficient checks or on-site inspections.
This action follows a major Greek farm fraud scandal currently under investigation by the European Public Prosecutor’s Office (EPPO), which is examining cases where Greek citizens received EU funds for pastureland they did not own or lease, or for agricultural work that was never performed.
In response to the scandal, the Greek government announced last month that it would shut down OPEKEPE, the state agency under investigation. Greece’s main opposition leader, Nikos Androulakis, commented that the country’s credibility with European institutions is declining.
According to the Commission’s decision dated June 11, a flat-rate correction of 5 percent has been imposed on all Greek direct subsidies due to lack of effective supervision. For young farmer schemes from 2018 to 2020, the correction rises to 10 percent. The two largest annual penalties are €79 million for 2021 and €76 million for 2022, both targeting area-based payments.
The fines impact several types of subsidies, including direct payments, small farmer schemes, eco-schemes, and voluntary coupled support measures, all of which were found to have insufficient compliance with EU criteria.
Greece was expected to receive approximately €1.9 billion in direct payments from the EU next year, but about a quarter of that will now be withheld as a result of the fine.
In March, the General Court of the European Union dismissed a Greek appeal against similar sanctions, upholding the European Commission’s findings and ordering Greece to pay court costs. The current decision is separate from the ongoing investigations into fraudulent pastureland claims, with Greek agriculture officials indicating that more fines may be forthcoming.
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