WRITTEN QUESTION P-0479/01

by María Izquierdo Rojo (PSE) to the Commission

(13 February 2001)

Subject: Request for repayment by Spain of ESP 55 000 million ( 331,1 million) for unduly paid agricultural aid

The media have reported that the European Commission is asking Spain to repay 331,1 million (ESP 55 000 million) for unduly paid agricultural aid. It refers in particular to:

- failure to apply the special set-aside scheme for herbaceous crops: 167,2 million;

- deficiencies regarding the production and consumption of olive oil: 71,1 million;

- additional levy in the milk sector: 61 million;

- inadequate control system for the herbaceous crops sector: 22,1 million;

- failure to respect deadlines for aid: 4,2 million.

Can the Commission provide detailed and full information concerning the basic data on which it is basing its claim, together with details of the headings from which amounts were unduly paid and the possible irregularities?

Answer given by Mr Fischler on behalf of the Commission

(20 March 2001)

The correction relating to arable crops was arrived at by excluding, for the 1995 marketing year, all areas set aside on which allowances were paid where a special set-aside measure not attracting allowances should have been applied, and by taking account of the financial consequences resulting from the effect that the rightful application of a special set-aside measure would have had on other crops.

The effect of the failure to apply a special set-aside measure in respect of irrigated and non-irrigated areas amounts to:

- Budget heading 1060: ESP 8 967 561 774

The effect on other crops of the failure to apply a special set-aside measure in respect of irrigated and non-irrigated areas amounts to:

- Budget heading 1052: ESP 6 990 851 920

- Budget heading 1050: ESP 11 865 361 513

In the case of production aid for olive oil, the correction amounted to 5 % of the expenditure declared under budget heading 1210 in the 1997 and 1998 financial years, i.e.:

- 5 % of ESP 75 170 366 600, and

- 5 % of ESP 161 351 956 820 respectively.

In the case of the additional milk levy, the correction was arrived at as follows:

- Budget heading 2071-102: additional levy payable: ESP 8 020 335 291

- Budget heading 2071-122: interest on arrears: ESP 2 426 259 870

- Budget heading 2071-102: additional levy paid: + ESP 301 976 829

With regard to the shortcomings in controls concerning areas taken into account, the correction was based principally on the tramitada areas of three autonomous communities (Castile-La Mancha, Castile-Leon and Andalusia), i.e. ESP 201 858 648, budget heading 1040 (1996 harvest).

A 25 % correction was made to expenditure under budget heading 1052 (ESP 3 283 310 250), i.e. ESP 820 827 563.

A 5 % correction was made to expenditure declared under the arable crops scheme in Andalusia (1996 and 1997 harvests) in respect of the following budget headings:

- 1040, 1041, 1042, 1043, 1044, 1050, 1051, 1052, 1053, 1054, 1055 and 1060: i.e. ESP 585 106 511 (1996) and ESP 2 668 866 704 (1997).

The failure to meet deadlines for payment relates to the following budget headings:

- 1053-004, 1210-063, 1210-064, 1210-074, 1858-001, 2540-001, 3100-054, 3100-114, i.e. a total of ESP 718 317 392.

These corrections are given in detail in Summary Report AGRI-24491-2000 of 16 October 2000, which was forwarded to Parliament on 19 February 2001.