Latest news with #EUsubsidies
Arab News
14-07-2025
- Politics
- Arab News
Greek govt calls for EU farm scandal probe
ATHENS: The Greek government on Monday called for a special parliamentary committee to probe a European Union farm subsidies scandal, reportedly involving tens of millions of euros, that has seen at least two ministers put under EU spokesman Pavlos Marinakis said the ruling conservative party would request an investigation into the 27-year operation of the Greek authority for the payment of common agricultural policy aid (OPEKEPE).'Our proposal concerns the period from the establishment of OPEKEPE in 1998 until today in order to investigate the dysfunctions, identify the problems, and ensure complete transparency,' Marinakis told investigation by EU prosecutors has shown widespread abuse of funds at OPEKEPE, which according to the government annually disburses 2.5 billion euros ($2.9 billion) to nearly 650,000 farmers. Reports said prosecutors suspect tens of millions of euros have been siphoned investigation period is mostly under the current government, which came to power in July 2019. But the government argues that the fraud has lasted nearly 30 years, the Greek state has paid more than 2.7 billion euros in fines, Marinakis ruling New Democracy party has a large enough majority in parliament to create the committee on its month, a minister who had formerly held the agriculture portfolio resigned, after the European Public Prosecutor's Office sent a case to parliament on the alleged involvement of two former ministers in Prime Minister Kyriakos Mitsotakis's government in the misappropriation of EU junior ministers and another senior government official also submitted their May, investigators searched the Athens offices of OPEKEPE and seized documents and electronic equipment. They indicated that 'a significant number' of people had gained payment rights between 2019 and 2022, mainly by falsely claiming public land.
The Guardian
30-06-2025
- Politics
- The Guardian
Greek PM vows to investigate €290m ‘fake' farmer fraud scandal
The Greek prime minister has vowed to get to the bottom of how a scheme of fraudulent EU subsidy claims could have operated undetected in the country for years, as he admitted that the scandal had revealed 'the state's inadequacy' in dealing with corruption. Faced with revelations that 'fake' farmers had been scamming designated agricultural funds to the tune of a reputed €290m (£249m), Kyriakos Mitsotakis said on Monday a special taskforce would be set up to 'immediately and exhaustively' investigate the illegal payments. The far-reaching scandal has already prompted the resignation of five senior government officials. One was the migration minister, Makis Voridis, a former far-right activist and prominent figure in the governing New Democracy party who was agriculture minister when the fraudulent scheme is alleged to have operated. In a rare display of damage control, Mitsotakis acknowledged the failings of a state apparatus that ought to have changed. 'The state's inadequacy is obvious,' he said. 'Clientelism [political patronage] cannot govern the way we conduct business.' The scheme, which allegedly saw hundreds of applications being made by nonexistent owners of pasture and grazing land over a five-year period beginning in 2017, was brought to light by the European public prosecutor's office (EPPO). The Luxembourg-based office launched its inquiry in 2021. The funds were distributed by the state subsidy agency, OPEKEPE, which has since been dissolved. On Monday the centre-right prime minister told his cabinet that the new taskforce would be expected to act speedily. 'I await results quickly. We will investigate the incidents immediately and exhaustively in line with internal and European legislation. Since OPEKEPE didn't manage to do its work the state will do it centrally.' The scandal has been described as 'one of the biggest farming frauds of recent years' according to Politico, which said the illegally siphoned funds could amount to €45m (£38.6m) a year. The misuse was such that citizens with no known links to the agriculture sector, including a lawyer based in Athens, had applied for the aid. Some had posed as the owners of fictitious plots and others making claims as fake livestock breeders. Officials who had tried to alert authorities after uncovering irregularities were either discredited, demoted or removed from top posts. OPEKEPE has had six presidents over the past five years. The revelations have fuelled public anger and come against a backdrop of disaffection with a political elite seen as inefficient, out of touch and corrupt. An MRB poll last week revealed a stunning 74.5% of Greeks believed ministers had a hand in the scandal. Sign up to This is Europe The most pressing stories and debates for Europeans – from identity to economics to the environment after newsletter promotion 'While it is very positive that at long last this abscess has been lanced it does not honour the country that [it] is being cleaned up at the initiative of the European prosecutor,' said Maximos Charakopoulos, a governing party MP from the farming region of Larissa. For Mitsotakis, a leading figure of the European centre-right who led his party to a landslide victory and second term in 2023, the scandal is as embarrassing as it is potentially damaging. A significant number of the false claims were made in his native Crete, where the prime minister's prominent political family have long held sway. EU diplomats in Athens said Mitsotakis was at risk of losing the high moral ground needed to govern effectively if he was not seen to act fast. 'This scandal is so big that he has to act decisively,' one said. 'His language and actions show us that he is aware the rot needs to be exposed.'
The Guardian
30-06-2025
- Politics
- The Guardian
Greek PM vows to investigate €290m EU farming subsidy fraud scandal
The Greek prime minister has vowed to get to the bottom of how a scheme of fraudulent EU subsidy claims could have operated undetected in the country for years, as he admitted that the scandal had revealed 'the state's inadequacy' in dealing with corruption. Faced with revelations that 'fake' farmers had been scamming designated agricultural funds to the tune of a reputed €290m (£249m), Kyriakos Mitsotakis said on Monday a special taskforce would be set up to 'immediately and exhaustively' investigate the illegal payments. The far-reaching scandal has already prompted the resignation of five senior government officials. One was the migration minister, Makis Voridis, a former far-right activist and prominent figure in the governing New Democracy party who was agriculture minister when the fraudulent scheme is alleged to have operated. In a rare display of damage control, Mitsotakis acknowledged the failings of a state apparatus that ought to have changed. 'The state's inadequacy is obvious,' he said. 'Clientelism [political patronage] cannot govern the way we conduct business.' The scheme, which allegedly saw hundreds of applications being made by non-existent owners of pasture and grazing land over a five-year period beginning in 2017, was brought to light by the European public prosecutor's office (EPPO). The Luxembourg-based office launched its inquiry in 2021. The funds were distributed by the state subsidy agency, OPEKEPE, which has since been dissolved. On Monday the centre-right prime minister told his cabinet that the new taskforce would be expected to act speedily. 'I await results quickly. We will investigate the incidents immediately and exhaustively in line with internal and European legislation. Since OPEKEPE didn't manage to do its work the state will do it centrally.' The scandal has been described as 'one of the biggest farming frauds of recent years' according to Politico, which said the illegally siphoned funds could amount to €45m (£38.6m) a year. The misuse was such that citizens with no known links to the agriculture sector, including a lawyer based in Athens, had applied for the aid. Some had posed as the owners of fictitious plots and others making claims as fake livestock breeders. Officials who had tried to alert authorities after uncovering irregularities were either discredited, demoted or removed from top posts. OPEKEPE has had six presidents over the past five years. The revelations have fuelled public anger and come against a backdrop of disaffection with a political elite seen as inefficient, out of touch and corrupt. An MRB poll last week revealed a stunning 74.5% of Greeks believed ministers had a hand in the scandal. Sign up to This is Europe The most pressing stories and debates for Europeans – from identity to economics to the environment after newsletter promotion 'While it is very positive that at long last this abscess has been lanced it does not honour the country that [it] is being cleaned up at the initiative of the European prosecutor,' said Maximos Charakopoulos, a governing party MP from the farming region of Larissa. For Mitsotakis, a leading figure of the European centre-right who led his party to a landslide victory and second term in 2023, the scandal is as embarrassing as it is potentially damaging. A significant number of the false claims were made in his native Crete, where the prime minister's prominent political family have long held sway. EU diplomats in Athens said Mitsotakis was at risk of losing the high moral ground needed to govern effectively if he was not seen to act fast. 'This scandal is so big that he has to act decisively,' one said. 'His language and actions show us that he is aware the rot needs to be exposed.'
Irish Times
30-06-2025
- Business
- Irish Times
Farm incomes are up but EU subsidies are likely to fall, along with beef farming
While last year was good for Irish farmers, with income up 36 per cent on the difficult year of 2023, there are clouds on the horizon. Over a third of farm income comes from European Union subsidies. The current structure of the EU Common Agricultural Policy (CAP) runs out in 2027 and, given the demands on the EU Budget, the next CAP will likely be less generous than today's. Preparing for a reduced subsidy regime in the future, and the need to make major changes to reduce greenhouse gas emissions, poses difficult challenges for farmers. When Ireland joined the EU (then the European Economic Community) in 1973 there was an immediate huge boost for farmers, raising their income overnight by a quarter. Substantial subsidies from Brussels, combined with access to the higher prices available in the Common Market, transformed living standards in rural Ireland. READ MORE Today, access to the EU market for Irish agricultural produce remains a huge plus, but as EU prices are generally close to those on world markets, this is less important for farming than it was in 1973. However, the subsidy regime under the CAP remains vital. [ Ireland needs multi-functional farms with biodiversity benefits. But how can they be supported? Opens in new window ] As shown in Teagasc's report last week, there is considerable diversity in incomes across the farming community. In 2024, dairy farms made an average of around €108,000, or about €80,000 excluding the EU subsidies. With an average of two people working per farm, this amounted to an income of around €54,000 per person, somewhat higher than average incomes in the non-farm sector. Dairy farms account for less than 20 per cent of all farms. For the rest of the agriculture sector, the income situation is much less satisfactory. Agriculture accounts for 35 per cent of Irish greenhouse gas emissions. Policy should not be about farmers giving up, it should be about finding better ways to use their skills and their land sustainably In 2024, the income from rearing beef cattle averaged under €14,000 and, given that EU subsidies averaged €18,000, it's clear that beef farming is fundamentally loss-making. The average age of beef farmers was over 60, and given the tiny returns from cattle, most had either off-farm jobs or were pensioners. Similarly, sheep farming did not pay its way before subsidies. Tillage farming barely earned a return above the subsidy – EU subsidies accounted for €32,000 of the average €39,000 earned by tillage farmers. [ EU commissioner says young farmers should get more CAP subsidies Opens in new window ] In 1980, three-quarters of the EU budget went on farm support, but since then the share has been whittled back. The CAP now accounts for a quarter of that budget. Over the next two years the EU will determine its medium-term budget for 2028 onwards. Faced with so many other demands, not least for security, the allocation to agriculture is likely to fall. The extensive support for Irish farmers from Brussels substantially offsets the State's contribution to the EU budget. Although Ireland is one of the richest countries in the EU, its net contribution to the EU budget is limited. This leaves Ireland in a weak position to argue that CAP measures that favour us should continue to get major funding. So subsidies will be lower. [ Hedgerows are a shining example of nature benefiting from human intervention Opens in new window ] Future EU farming policy is also likely to have a strong focus on climate measures. Agriculture accounts for 35 per cent of Irish greenhouse gas emissions. Policy should not be about farmers giving up, it should be about finding better ways to use their skills and their land sustainably. Beef farming is likely to fall over the next decade, with fewer subsidies to keep it afloat. That will leave some room for increased milk production, which is very profitable. Given how labour-intensive dairying is, with twice-daily milking, that won't suit most part-time or older farmers. Other productive alternatives to beef rearing need to be identified. Agri- forestry could be very profitable – Ireland has an excellent climate for growing trees. It would also capture carbon, helping with our climate targets, as well as providing an important future resource of timber. However, the current red tape and regulation around establishing forestry make this impossible to deliver. No other crop is subject to the onerous licensing system around planting, thinning and harvesting. Fertiliser use is responsible for major emissions of long-lived greenhouse gases. A drop in farming's emissions was achieved as a side effect of the rise in gas prices, and consequently of the cost of fertiliser, following the invasion of Ukraine. When fertiliser prices rose 50 per cent between 2021 and 2023, Ireland's use dropped by 30 per cent. In this vein, rising charges for emissions, or an emissions trading system, may also be part of the future farming environment. Emissions pricing is not an alternative to developing more appropriate land uses, rather it should complement a strategic change in how we use land, and a focus on sustainable farming activities.
Al Arabiya
27-06-2025
- Politics
- Al Arabiya
5 Greek Government Officials Resign Over EU Farming Subsidy Fraud Allegations
Five high-ranking Greek government officials, including a minister and three deputy ministers, resigned Friday following allegations of involvement in corruption over the mismanagement of European Union farming subsidies. The case stems from the alleged mismanagement of EU subsidies for agriculture between 2019 and 2022 by a government agency known by its Greek acronym OPEKEPE, tasked with handling the funds. According to the European Public Prosecutor's Office, a significant number of individuals received subsidies through the agency based on false declarations, including claims of owning or leasing pastures that were in fact public land. The suspects continued submitting false declarations of livestock until 2024, maintaining subsidy payment entitlement, it added. The prosecutor's office sent a hefty case file to Greece's parliament earlier this week, including allegations of the possible involvement of government ministers in an organized fraud scheme. Members of parliament enjoy immunity from prosecution in Greece that can only be lifted by parliamentary vote. In a resignation letter to the prime minister Friday, Migration and Asylum Minister Makis Voridis maintained his innocence, saying he was stepping down in order to concentrate on clearing his name. Voridis served as agriculture minister from mid-2019 to early 2021. Prime Minister Kyriakos Mitsotakis accepted his resignation as well as those of the deputy ministers of foreign affairs, agriculture and food, and digital governance and of the general secretary of agriculture and food. Replacements for all five will be named in the coming days, government spokesman Pavlos Marinakis said in a statement. The European Commission announced earlier this month it would reduce the amount of farm subsidies for Greece by five percent, for a total of 392 million euros.
