WRITTEN QUESTION No. 1382/99 by Joan COLOM I NAVAL EU aid to the Spanish flax industry
Date: 1999-09-01
Institutions: COLOM I NAVAL, European Parliament
Subjects: European Anti-fraud Office, Spain, aid to agriculture, common agricultural policy, corruption, eligibility criteria, flax, fraud against the EU, use of aid

29.1.2000

EN

Official Journal of the European Communities

C 27 E/35

Information is not kept centrally in a comprehensive form. The information the Commission holds
indicates that deregulation has been introduced for all bus services in the United Kingdom (other than in
London and Northern Ireland), that limited competition has been introduced for some or all bus services in
Denmark, Germany, Spain, France, Portugal, Finland, Sweden and the United Kingdom (London), and that
limited competition has also been introduced for some or all conventional rail services in Germany, the
Netherlands, Sweden and the United Kingdom.

(2000/C 27 E/039)

WRITTEN QUESTION P-1382/99

by Joan Colom i Naval (PSE) to the Commission

(1 September 1999)

Subject: EU aid to the Spanish flax industry

For a number of weeks now, the Spanish press has been criticising the huge increase in EU aid to the
Spanish flax industry (cid:129) which has
risen from ESP 23 million in 1993-1994 to more than
ESP 10 000 million in 1998-1999 (cid:129) as well as the fact that a number of public officials or their relatives
have materially benefited from these large subsidies. In the wake of these reports and the ensuing political
debate, a number of senior officials have felt called on to resign.

Is the Commission aware of these facts? Can it state whether it has identified any cases of fraud or
irregularity, or whether it intends to open an investigation to determine whether the Spanish authorities
responsible for administering CAP aid can be called to account?

Answer given by Mr Fischler on behalf of the Commission

(9 September 1999)

The increase in Community expenditure on Spanish fibre flax merely reflects how the area sown to flax in
Spain has expanded over recent marketing years: 187 ha in 1993/94, 3 599 ha in 1994/95, 11 497 ha in
1995/96, 46 613 ha in 1996/97, 49 045 ha in 1997/98 and 92 202 ha in 1998/99.

The Community legislation governing the common organisation of the market in flax has developed
considerably over the period in question. Grant of the aid has been made subject to many conditions
precisely to prevent aid being paid for areas not really used to grow flax. For instance, growers are now
obliged to conclude contracts with primary processors, who must undertake to process the flax and be
granted approval. From the 1998/99 marketing year, grant of the aid is also subject to a minimum yield in
flax straw.

Checks on the expenditure declared by Spain under the fibre flax aid scheme as part of the clearance of
accounts of the European Agricultural Guidance and Guarantee Fund (EAGGF) for the 1994 and 1995
financial years revealed certain shortcomings in the current control arrangements. A flat-rate penalty of
10 % was accordingly applied to the financial years concerned. As part of the EAGGF clearance of accounts
for 1996 to 1998, the Commission asked the Spanish authorities what measures they had taken to
mitigate the shortcomings found previously. The work and procedures concerned are under way.

The Commission has learned through the press of the events referred to by Honourable Member and the
work of the committee set up by the Spanish Parliament to investigate the matter. In addition, the
European Fraud Prevention Office (OLAF) has asked the Spanish courts (the fraud-prevention prosecutor,
to be precise) to investigate whether Community aid for fibre flax has been being correctly administered
and checked by the competent authorities and, if not, whether there are likely to be criminal proceedings.
The OLAF will follow the investigation closely.