Fine of 392 million euros will pay the Greece Due to mismanagement of Community subsidies from 2016 to 2023, mainly due to inadequate controls by the Greek European funds management organization, now known OPEKEPE (Payment and Control Organization for Community Orientation Aid and Guarantees).

According to Everydaythe European Commission Article 52 of Regulation 1306/2013 and Article 52 55 of Regulation 2021/2116 states as a basis for its decision and states that European legislation has been violated that governing the funding of the Common Agricultural Policy.

The European Commission has imposed a horizontal correction on the amount of subsidies that Greece will receive in the coming years, in 5%, 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 79 million and 76 million are charged in 2021 and 2022 respectively. In the case of a fine of EUR 392 million, it is more likely that the state budget will be charged, as long as there are no specific farmers who have illegally.

Otherwise, farmers’ subsidies should be cut by 5%horizontally, which is of course unfair and will bring great political costs.

Greece was expected to collect from the EU the following year through the immediate aid of approximately € 1.9 billion. However, it seems that 1/4 of this amount, in particular EUR 392,195,733, will be cut due to the fine for payments not made on the basis of the Union criteria and the legislation or because the beneficiaries were not checked, in accordance with the foreseen.

Indeed, as officials in the agricultural area say, these fines are the beginning, as other impositions are expected. The Court of Justice of the European Union has already rejected Greece’s appeal last March, which concerned a previous decision by the Commission, even forcing our country to pay the costs.