Press Release: Commission gives Romania one month to improve farm aid systems; welcomes progress made in Bulgaria

The European Commission wrote to Romania on 10 October 2007 to inform it that it faces a provisional 25 percent cut in European Union farm payments unless it can reverse certain serious shortcomings in its administration and financial control system before payments to farmers take place (payment year begins 1 December 2007). The Commission will not be withholding farm payments to Bulgaria because its system has been set up and is operational. Commission Regulation 1423/2006, building on Art. 37 of the Accession Treaties for Romania and Bulgaria, provides for the reduction of payments by 25 percent if the systems set up to ensure the correct payment of farm aid are so seriously deficient that they affect the proper functioning of the overall system. Romania can prevent this happening by delivering on two points of the utmost importance: putting in place and properly testing two software modules which are indispensable elements in the Integrated Administration and Control System (IACS); avoiding payments to farmers before the required controls are completed. Additional on-the-spot checks are required to compensate for the insufficient quality of the Land Parcel Identification System. Mariann Fischer Boel, Commissioner for Agriculture and Rural Development, has written to the Romanian Agriculture Minister, Mr Decebal Traian Remes, and a reply is expected by 9 November.