Opinion of the Economic and Social Committee on the "Proposal for a Council Regulation amending Regulation (EC) No 1258/1999 on the financing of the common agricultural policy" (COM(2002) 293 final — 2002/0125 (CNS))
Date: 2002-09-18
Institutions: European Economic and Social Committee
Subjects: EU financing, closing of accounts, common agricultural policy, financial interests of members

C 61/54

EN

Official Journal of the European Union

14.3.2003

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
amending Regulation (EC) No 1258/1999 on the financing of the common agricultural policy’

(COM(2002) 293 final — 2002/0125 (CNS))

(2003/C 61/11)

On 19 July 2002 the Council decided to consult the Economic and Social Committee, under Article 152
of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 29 August 2002. The rapporteur
was Mr Strasser.

At its 393rd Plenary Session (meeting of 18 September 2002), the Committee adopted the following
opinion with 128 votes in favour and three abstentions.

1.

Introduction

2. Comments

1.1.
The proposal extends the period in which financing
from the EAGGF Guarantee Section can be refused. Under
Article 7(4) of Council Regulation (EC) No 1258/1999 on the
financing of the common agricultural policy, a decision to
refuse financing may not involve expenditure dating back
more than 24 months before the Commission’s written
communication of the results of its checks to the Member
State in question.

1.2.
The Commission is proposing that this period be
extended to 36 months. The explanatory memorandum
accompanying the proposal states, inter alia, that:

— the restriction should be applied in a manner which takes
better account of the European Union’s financial interests;

— ‘non-conform expenditure’ is to be reduced by extending

the reference period.

2.1.
It is the Committee’s firm belief that the Commission
must be able to recover money that has been spent improperly
in order to avoid financial losses to the Community budget. It
should be borne in mind that there are various reasons for the
improper use of payments. One reason could be deficiencies
which crop up when a new scheme is introduced or a
substantial change is made to a scheme, as the Commission
notes itself. Frequent changes to regulations or directives, as
has been the case in recent years, exacerbate this problem.

2.2.
The Committee would therefore urge that the Com-
mission be equipped with the requisite resources to strengthen
its preventive checks in order to, on the one hand, eliminate
deficiencies in good time and, on the other hand, improve
administration in the Member States if that should prove
necessary.

1.3.
A working group set up by the Commission in 1993
to study the reform of the clearance of the EAGGF Guarantee
Section accounts called for corrections to expenditure to be
possible over a period of 36 months. The Council did not
follow this recommendation, and came out in favour of
24 months.

2.3.
The Committee nevertheless doubts whether extending
the reference period for corrections will appreciably reduce the
number of improper payments, as more breaches of the rules
are not likely to be unearthed. It may, however, considerably
increase the danger of Member States facing accusations and
make it more difficult to collect evidence.

Brussels, 18 September 2002.

The President

of the Economic and Social Committee

Göke FRERICHS