The first concerns aid given to the sheep and goat sector through special support offered by Community funds, as it has been identified that there are serious gaps in the Veterinary Services database. The financial correction that the Republic is required to pay amounts to approximately € 2 million as the fine amounts to 25% of the total amount of aid granted.
The second violation has to do with the cross-compliance system in which, in addition to the KOAP, the Department of Agriculture, the Department of Environment, the Veterinary Services and the Port and Fauna Service participate. The fiscal correction that the Republic is required to pay is at a rate of 1% of the last two years and results in a total amount of around € 2 million.
It is noted that based on the Commission's findings, in some cases the CMO has no choice but to recover part of the amounts from the applicants who were illegally granted aid.
The issue was raised by the Commissioner for Agricultural Payments, Ttimis Efthymiou, during a recent visit to Brussels in a meeting with the Director of Agricultural Payments of the Directorate of Agriculture of the European Commission, Christine Borchman.
In the meeting with Mrs Borchman, reference was made to the two letters of financial correction that have recently been sent to the Agency and whether a negotiation to reduce the rate of financial correction could be negotiated. Through the discussion, it became clear that the European Commission is willing to significantly reduce the rate of financial correction, provided that the necessary explanations are given by the Cypriot authorities in the relevant process. The Commissioner has committed himself to sending any information requested by the European Commission in a timely manner, which will facilitate the review of its decision to impose financial corrections in Cyprus.
He is one of the positives of the new Agricultural Payments Commissioner and his Assistant, who, although the audits and findings of the EU Audit Authorities were carried out before taking office, nevertheless raised this very serious issue as a top priority. The fine is estimated at € 4 million, however it is expected to be reduced, as mentioned above.
Further corrective measures have been taken which on the one hand will reduce the chances of future fines being imposed on Cyprus by the EU but on the other hand will oblige Cypriot farmers and stockbreeders to strictly adhere to the provisions of the Common Agricultural Policy of the European Union.
The meeting ended with the commitment of both sides for a constructive and sincere cooperation for the benefit of Cyprus, the European Commission, but also the rural world.