| Author (Person) | Cronin, David |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.9, No.39, 20.11.03, p18 |
| Publication Date | 20/11/2003 |
| Content Type | News |
|
By David Cronin Date: 20/11/03 A LACK of effective controls on the provision of EU cotton subsidies has resulted in Greek farmers receiving twice as much aid as they were entitled to, according to the European Court of Auditors. After studying the funding of subsidies in four Greek regions, the Luxembourg-based watchdog found that too much was paid out in almost 17% of cases checked for the 2001-2002 period. "Significant differences were found between the areas declared and those cultivated with cotton," said the Court. Greece and Spain are the two main cotton producers in the Union, with farmers growing the crop receiving some €600 million and €200 million respectively in EU aid. But the auditors say mistakes have been made because the computer-based integrated administration and control system (IACS) for managing EU subsidies has "not been properly applied" in Greece. The auditors cite research by the Greek authorities indicating that 10% of land where cotton was grown in 2001 had either not been declared under IACS or was also declared as being eligible for EU aid for other crops. "This finding is an indicator that producers submit aid applications for arable crops for areas on which they produce cotton," the auditors remark. "In such circumstances, and if not detected, growers receive EU aid twice for the same parcels of land, once on the basis of the arable crop declaration and again on the basis of the actual production of cotton." Furthermore, the auditors criticize a clause in a 2001 EU regulation, which states that ginners (who separate cotton fibre from seeds and waste material) can obtain a 3% increase in the aid that has been earmarked for them if the quality of ginned cotton in a particular year is above average. But the European Commission "has no specific knowledge about the success or otherwise of this provision in improving the quality of the cotton produced", the report's authors admit. "While the wish to promote quality is laudable, the market place, through increased revenues, already offers the incentive to improve the quality and the quantity of the fibres produced. On the basis of the evidence available, it appears that the incentive paid to improve quality is little more than an additional source of revenue for the ginners." Responding to the report, the Commission has pledged to take account of the Court's observation in proposing reforms to cotton aid. The EU executive also acknowledges "the present regime is highly complicated and not in line with the recent evolution of the CAP [Common Agricultural Policy]". The European Court of Auditors published a report in November 2003 which finds that Greek cotton farmers have been receiving twice as much aid as they are entitled to. |
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| Subject Categories | Business and Industry, Economic and Financial Affairs |
| Countries / Regions | Greece |
