Greece must repay a total of 394 million euros for wrongly paid agricultural subsidies. In addition, a fine of 78 million euros has been imposed. This combination of repayment and fine is the highest financial agricultural sanction the EU has ever imposed on an EU member state.
The European Commission accuses Greece of decades-long mismanagement in the administration of the Common Agricultural Policy (CAP). According to Brussels, Greek authorities systematically failed to properly check subsidy applications and the eligibility of beneficiaries. As a result, thousands of farmers received European funds unlawfully for years.
Reports from the European Court of Auditors show there was a “structural lack of oversight.” In some cases, subsidies were paid for land that did not even exist or that fell outside the eligible zones.
The sanctions cover the period from 2006 to 2022. The European Commission carried out multiple audits during those years, each time uncovering serious shortcomings. Various warnings to the Greek authorities did not lead to structural improvements.
The fine has not only financial but also political consequences. According to Ekathimerini and Greek City Times, the case in Athens has caused tensions between different departments. The Greek Minister of Agriculture reportedly faces pressure due to the inadequate approach to fraud and the lack of reforms.
Notably, the European Commission arrived at this sizeable sanction without intervention from the Court of Justice. According to European media, this is legally possible under the system of so-called “conformity corrections,” whereby the Commission can reclaim subsidies without a judicial ruling.
Although Greek media such as Ekathimerini and To Vima report that the government in Athens is considering filing an appeal, it is still unclear whether the country will actually take legal action. An official response from the Greek government is still lacking. The possible impact on future agricultural subsidies is not concretely addressed anywhere.
The European Commission says other EU countries should learn lessons from this case. Brussels emphasizes that the correct use of agricultural funds is essential for trust in EU policy. New audits in other countries are not ruled out but have not yet been announced.