Greece has been hit with a record 392.2 million-euro fine by the European Union due to widespread mismanagement of agricultural subsidies. The penalty stems from a scandal involving the Greek government agency OPEKEPE, which oversaw the distribution of EU funds to farmers between 2016 and 2022.
EU Slams Greece With Historic Fine
The European Union has imposed a substantial 392.2 million-euro ($451.9 million) fine on Greece. This unprecedented penalty is a direct consequence of a major scandal involving the mismanagement of agricultural subsidies by OPEKEPE, the Greek government agency responsible for their distribution. The period under scrutiny spans from 2016 to 2022.
Key Takeaways
- The fine reflects the EU’s assessment of a lack of proper supervision and operational failures within Greece’s subsidy management model over several years.
- As a result of the fine, the European Commission has decided to reduce the agricultural subsidies Greece will receive in the coming years by 5%.
- Greece was anticipating approximately 1.9 billion euros in direct EU subsidies for the upcoming year.
The Root of the Scandal
The fine follows months of investigations by European prosecutors, who charged dozens of Greek livestock farmers. These farmers allegedly received EU financial aid through OPEKEPE by making false declarations regarding the ownership or leasing of pastureland. The European Public Prosecutor’s Office revealed that a significant number of the 100 suspects did not reside at the locations declared in their applications for funds from the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development.
Greece’s Response and Future Outlook
In response to the scandal and the subsequent fine, Greece has pledged to overhaul OPEKEPE. The proposed reforms include merging the agency into the country’s tax authorities, with international consultants providing assistance during the transition. OPEKEPE is responsible for disbursing approximately 2.4 billion euros in annual subsidies to farmers.
