EU probes Greece over suspect farm payments
(BRUSSELS) - European regulators on Wednesday said they are investigating Greece amid suspicions that Athens has illegally subsidised farmers under the cover of natural hazards crop insurance payouts.
The European Commission "doubts whether the aid is compatible with the common market," a statement said.
A probe launched on Wednesday centres on payments made in 2008 and 2009 to farmers by the Greek Agricultural Insurance Organisation (ELGA). Athens has one month to reply.
Preliminary findings show that "it cannot be ruled out that the compensation paid by ELGA in 2008 and 2009 under the compulsory insurance scheme constitutes state aid."
Brussels said that the ELGA insurance scheme involves compulsory premiums.
Greece is already firmly in the commission's firing line over sky-high public deficits and debts -- as well as dodgy data reporting by Athens statistical offices.
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