28-05-2025
Greece shutters farm aid agency amid EU fraud investigation
The Greek government has shut down the agency responsible for managing and distributing EU agricultural subsidies due to repeated scandals and fraud cases involving EU funds, in a decision announced on Tuesday.
The move comes after the European Public Prosecutor's Office (EPPO) conducted searches last week as part of an investigation into an alleged organized fraud scheme and corruption involving public officials at the agency.
Between 2019 and 2022, a "significant number of individuals presented themselves as young or new farmers" and received EU funding "based on false declarations," the EPPO wrote in a statement.
"In most cases, the pastures declared were in fact public lands," and were "often located far away" from the claimants' place of residence, it added.
Rocky terrains, forests and even areas in neighbouring North Macedonia had been declared as agricultural land, the Greek daily To Vima reported.
Around 100 suspects have been charged with wrongfully receiving a total of €2.9 million ($3.29 million), the newspaper reported. The investigations suggest that since 2017, approximately €170 million may have been unlawfully disbursed, according to Greek media.
In other instances, the agency apparently failed to disburse available funds, which were then returned to the EU. Last year, this allegedly amounted to €87 million. Due to numerous irregularities, Greece had to pay penalties to the EU.
Greek Prime Minister Kyriakos Mitsotakis announced during Tuesday's Cabinet meeting that the agency's tasks would be transferred to the central tax and finance office, AADE.
The approximately 520 employees would also be accommodated there, provided they are not proven to be involved in fraud cases. The AADE, an independent office responsible for public revenues in Greece, has recorded significant successes in the fight against tax fraud.
