Thursday

28th Mar 2024

Romania told to reform farm system or face aid cuts

  • If Romania does not improve its oversight over farm aid payments, its farmers could feel the pinch. (Photo: EUobserver)

The European Commission has threatened to cut agricultural subsidies to Romania, unless the country solves the shortcomings in its farm aid system.

Mariann Fischer Boel, the EU's agriculture commissioner, said on Wednesday (10 October) that Romania should overhaul its farm payment system or face a provisional 25% cut in EU funds - equal to more than a hundred million euros.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The warning comes after two recent audits discovered several serious irregularities in the administration and financial control part of the payment system.

"Romania has made progress in setting up its administration and control systems, but has not yet done everything required to ensure that the system works properly," Mrs Fischer Boel said.

The fact that the Romanian software system in place does not sufficiently control payments and is unable to guarantee the prevention of fraud and misuse of funds is worrying Brussels.

The country has now been given a one month period to fix the problem. The country, which joined the EU in January, has the largest number of registered farm plots in the bloc and is already facing serious delays.

"Operations to check the registered farming acreage are delayed because of a lack of equipment. Public acquisitions are so slow, so we are in a huge delay," Romania's prime minister Calin Tariceanu said according to the International Herald Tribune.

But he promised the commission that Romania will put its house in order by the end of the month.

By contrast, Bulgaria, which joined the EU together with Romania in January, has set up a functioning system and does not risk losing farm funds.

Romania is budgeted to receive €4.3 billion in farm aid from 2008 to 2013.

'Swiftly dial back' interest rates, ECB told

Italian central banker Piero Cipollone in his first monetary policy speech since joining the ECB's board in November, said that the bank should be ready to "swiftly dial back our restrictive monetary policy stance."

Latest News

  1. 'Swiftly dial back' interest rates, ECB told
  2. Moscow's terror attack, security and Gaza
  3. Why UK-EU defence and security deal may be difficult
  4. EU unveils plan to create a European cross-border degree
  5. How migrants risk becoming drug addicts along Balkan route
  6. 2024: A Space Odyssey — why the galaxy needs regulating
  7. Syrian mayor in Germany speaks out against AfD
  8. Asian workers pay price for EU ship recycling

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us