European Commission recovering CAP funds from Malta

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European Commission recovering CAP funds from MaltaA total of € 214 million of EU agricultural policy funds unduly spent by Member States, which includes Malta, is being claimed back by the European Commission today under the so-called clearance of accounts procedure. 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.

Main financial corrections

Under this latest decision, funds will be recovered from Denmark, Germany, Greece, Spain, Italy, Cyprus, Malta, Netherlands, Austria, Poland, Portugal, Finland, Sweden and the United Kingdom. The most significant individual corrections are:

€ 76.6 million charged to Sweden for the weaknesses in the Land Parcel Identification System – Geographical Information System (LPIS-GIS), administrative controls and sanctions for area-aids expenditures, including area-based Rural Development measures;

€ 70.9 million charged to Italy with regard to the late controls in the sector of milk;

€ 22.3 million charged to Denmark for the weaknesses in LPIS-GIS, in the on-the-spot checks and in the calculation of sanctions;

Malta

€ 0.222 correction proposed for deficiencies in LPIS (Land Parcel Information System) and in respect of the financial year 2007 for area-aids expenditure, including area-based Rural Development measures.

€ 0.039 correction proposed for irregularities and debts in the financial year 2007.

Member States are responsible for managing most CAP payments, mainly via their paying agencies. They are also in charge of controls, for example verifying the farmer’s claims for direct payments. The Commission carries out over 100 audits every year, verifying that Member State controls and responses to shortcomings are sufficient, and has the power to claw back funds in arrears if the audits show that Member State responses are not good enough to guarantee that EU funds have been spent properly.

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