Brussels tells EU members to pay back misused farm aid

(BRUSSELS) - Twenty EU nations, including Greece, Poland, Spain and Britain, must pay back a total of 346.5 million euros (476 million dollars) in "unduly spent" farm subsidies, the European Commission said Tuesday

Cash-strapped Greece was the worst offender and will have to hand back 105.5 million euros due to weaknesses in the control system for cotton and another 18.5 million for "severe and persistent weaknesses" in its rural development measures.

Britain was asked to return 14.2 million euros for failing to meet statutory deadlines for direct payments to farmers and a further 3.5 million euros for weaknesses in checking rural development.

The EU Commission stressed that the 27 member states are responsible for paying out and checking expenditure under the bloc's massive Common Agricultural Policy (CAP).

"This exercise remains a very important instrument in making sure that Member States have sufficient controls in place to ensure that taxpayers' money is properly spent," said EU Agriculture Commissioner Dacian Ciolos.

The CAP will this year eat up more than 40 percent of the European Union's total budget of 123 billion euros.

Reform of the system is a subject of near constant debate among EU members with the main beneficiaries, led by France, keen to avoid wholesale changes.

France was fined more than 19 million euros in total for a raft of problems.

After Greece, Poland was identified as the worst culprit, and will have to refund 92 million euros for various weaknesses in area aids for the years 2006-2007.

Spain will have to repay over 40 million euros, mainly for ineligible costs and weaknesses in the control system in the fruit and vegetables sector.

Further details - European Commission