European Commission To Fine Romania For Overdue Agriculture Payments

The European Commission will penalize Romania for delayed payments per hectare, possibly with EUR40-60 million, and the employees of the Agency for Payments and Intervention in Agriculture (APIA) will have to pay back part of tehir salaries, agriculture minister Ilie Sarbu said Tuesday.
Sarbu said that despite the 75% wage bonus for public servants working with EU funds and various other bonuses, many payments to farmers are overdue, even by as much as one year. As they have not fulfilled their duties, APIA employees will have to return their bonuses.

Sarbu stated that he is not sure of the amount of the fine. “Some say it will be EUR40 million or EUR60 million. Sure, we will not recover all that money, but the least we can do is implement a sense of responsibility. People who work with EU funds receive this 75% bonus, and other bonuses, but they must understand that they must work accordingly. This 75% bonus is not all they will have to give back,” Sarbu said.

European laws state that the deadline for payments to farmers is June 30 of the following year, in this case June 30, 2008, for 2007 payments. After this date, the member state is fined a certain percentage of the leftover sum, which means that a part of the subsidies paid after the deadline will not be refunded by the EU. After October 1, the payments must be fully sustained by the member state.

APIA started paying 2007 subsidies per hectare in April 2008 and completed the bulk of payemnts by September. Farmers received an EU subsidy of EUR50.5 per hectare, plus a complementary EUR47 from the state budget.

Sarbu said that payments due for 2008 will start on March 15. Last year’s campaign saw around 1.16 million farmers submit requests for subsidies, in the amount of EUR 60.75 per hectare, payable in Romanina lei at the rate of 3.7413 lei to the euro, plus complementary payments of EUR 46.71 per hectare.