The European Commission has defended its rules and controls around CAP payments on the back of an article in the New York Times on payments to eastern European leaders.

The article The money farmers: how oligarchs and populists milk the EU for millions reports that an investigation by the paper found that the Hungarian prime minister “uses European subsidies as a patronage system that enriches his friends and family, protects his political interests and punishes his rivals”.

It also found that the biggest recipient of CAP funds in the Czech Republic is prime minister Andrej Babiš. He received in the region of €38m in EU payments in 2018.

Last week, the Commission was asked at a midday press briefing by one of the authors of the article “if the Commission would support a conflict of interest provision that says if you are receiving or your family is receiving agricultural subsidies you cannot be involved in setting the agricultural policy or the rules for giving out those subsidies, much like the conflict of interest provision that applies for low level members of the commission”.

Response

In response, the European Commission’s agriculture spokesperson Daniel Rosario said: “It is for member states to put the necessary systems in place to prevent and avoid fraud.

“Of course, the Commission carries on its work to ensure that these checks and balances are state of the art and when it’s necessary we conduct our own audits to make sure that EU funds are applied correctly.

“When there are allegations on conflicts of interest, whenever we are tipped off on these kind of situations, we monitor the implementation of the rules on conflicts of interest, but, again, it’s first and foremost for member states to come up with,” he said.

On the question of the Commission supporting such a conflict of interest provision, Rosario said that he “would not be in a position to engage with you [the journalist] on that topic”.

He also said that the Commission makes “sure that the EU budget when it comes to CAP funds but also other funds, is properly managed”.

Framework

Rosario said that the Commission has a framework in place and that this framework is working.

“When it comes to fraud… European Court of Auditors is clear on how the work is being done and being implemented by the Commission when it comes to direct payments.

“When it comes to issues like conflict of interest, we are actually following up on them and some investigations are ongoing including on OLAF,” he said. OLAF is the European Anti-Fraud Office.

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