Illegal appropriation by Government and banks of EU aid and subsidies to Greek farmer and stockbreeders

The inability of Greek farmers and stockbreeders impoverished by the Memorandum to pay extortionate taxes and service their bank loans has prompted the Greek Government and the banks unlawfully to appropriate EU aid and subsidies paid into their accounts by the agency responsible, these amounts being untouchable under EC law.

Under the EU legislation currently applicable (Regulations 1782/2003, 1792/2003, 795/2004, etc.), EU grants and subsidies may, under no circumstances whatsoever, be appropriated in this manner.

However, according to a written answer from the minister responsible to the Greek Parliament of November 2013 it is, under Greek legislation (Decree-Law 356/1974, Article 982(e) of the Civil Code and Law 4161/2013), perfectly admissible for the Greek Government to appropriate the abovementioned EU grants and subsidies and, under certain terms and conditions, for the banks to do the same.

In view of this:

Source: European Parliament

Answer given by Mr Ciolos on behalf of the Commission

Article 29 of Regulation 73/2009(1) and Article 11 of Regulation 1306/2013(2) entail that EU grants and subsidies shall generally be made in full to the beneficiaries.

You mention that under Greek legislation (Decree-Law 356/1974, Article 982(e) of the Civil Code and Law 4161/2013) it is admissible for the Greek Government to appropriate EU grants and subsidies and under certain conditions for the banks to do the same. The Court of Justice of the EU confirmed in Case C-132/95 (Bent Jensen) that deducting debts towards the national budget from payments to be received by the same person under the common agricultural policy is allowed, unless it would undermine the effectiveness of EC law or create unequal treatment of economic operators. Accordingly, in the cases the Commission has been dealing with, it accepted the principle of Member States offsetting EU agricultural subsidies after an analysis of the national provisions. The Commission takes the view that under the same conditions also attachments and seizures as well as duties, taxes and charges are in principle allowed under Article 29 of Regulation 73/2009 and Article 11 of Regulation 1306/2013. At this stage, the Commission is not in a position to further comment on the Greek legislation at issue.

(1) OJ L 30, 31.1.2009. (2) OJ L 347, 20.12.2013.

Source: European Parliament