WRITTEN QUESTION E-0238/02

by Antonios Trakatellis (PPE-DE) and Christos Folias (PPE-DE) to the Commission

(6 February 2002)

Subject: Delays and deductions in the payment of Community agricultural aid to Greece and infringement of Community law by the Agricultural Bank of Greece

Significant delays in the payment of Community aid to farmers by the newly established payments agency (Opekepe) in Greece have caused them financial loss and triggered protest demonstrations. For example, while Community aid of EUR 924,54 million for 2001 (EUR 337,5 million for wheat, EUR 190,76 million for olive oil, EUR 249,550 million for cotton and EUR 146,73 million for tobacco) has been received by the Greek public administration, it has not yet been paid over to the farmers.

In view of the fact that the Commission has known for some years now of these delays and also of the amounts illegally and improperly withheld by the Agricultural Bank of Greece (ATE) and other agencies, and given that, according to the answer given to question E-2923/01(1), the Commission is looking into this matter within the scope of the infringement procedure laid down in Article 226 of the EC Treaty:

1. What urgent steps will the Commission take to ensure that matters are remedied and that EAGGF appropriations are paid immediately to the farmers?

2. What steps will the Commission take to ensure full payment to beneficiaries as laid down by Article 2 of Regulation (EC) No 1259/1999(2) establishing common rules for direct support schemes under the common agricultural policy?

3. What is the total financial loss (reduction), since under Regulation (EC) No 296/96(3) there is a system of financial penalties for expenditure effected after the deadlines laid down, and therefore a loss of appropriations for Greece?

4. What are the latest developments in the case concerning the ELGA premiums (case C-355/00) pending before the Court of Justice of the European Communities, since ELGA is now attempting to bring in a new increase of 50 % to insurance contributions to cover its excessive debt of EUR 102 714 million?

5. Does the Commission intend to examine the ATE's operating status as a state bank and the procedures it uses (e.g. the requirement to give power of attorney for the withdrawal of arbitrary deductions from the farmers' accounts), on the basis of allegations made about the infringement of Community rules and principles concerning the free market and fair competition, state aid and the protection of consumers (farmers) in the single market?

(1) OJ C 115 E, 16.5.2002, p. 194.

(2) OJ L 160, 26.6.1999, p. 113.

(3) OJ L 39, 17.2.1996, p. 5.

Answer given by Mr Fischler on behalf of the Commission

(22 March 2002)

As regards points 1, 2 and 5 of their question the Honourable Members are asked to refer to the Commission's answer to written question E-0128/02 from Mr Alavanos(1).

As regards point 3, the corrections for the 2001 financial year applied under Commission Regulation (EC) No 296/96 of 16 February 1996 on data to be forwarded by the Member States and the monthly booking of expenditure financed under the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF)(2) amounted to 1 708 570,96, of which 630 301,74 related to the period from 1 July 2001 to 15 October 2001.

For the current financial year (2002), Article 4 of Regulation (EC) No 296/96, as amended by Commission Regulation (EC) No 1577/2001 of 1 August 2001, provides for the calculation and application of the reductions based on a timetable covering expenditure in the period from 16 October 2001 to 31 March 2002.

The procedure for calculating, proposing and defining the corrections for this period has not started yet. It will be finished by the beginning of August 2002.

As regards point 4 of the Honourable Members' question, the Court of Justice fixed an oral hearing on case C-355/00 for 7 March 2002.

(1) OJ C 172 E, 18.7.2002, p. 148.

(2) OJ L 39, 17.2.1996.