Brussels, 28/11/2011 (Agence Europe) - EU countries have spent on average 79% (i.e. €178.2 million) of the funds earmarked in 2011 for compensating European vegetable and fruit growers affected by the E.coli epidemic (see EUROPE N.10429). However, a number of countries that had called for most financial support, such as Spain and Italy, have notched up a bad result when it comes to using the funds, with 66% (€47 million out of €71 million) and 44% (€15.3 million out of €34.6 million) respectively. These two countries could have penalties imposed on them for late payment.
The other countries have managed well: Portugal (100% of funds requested have been spent, i.e. €5.2 million), Belgium (100% of €3.6 million), Poland (97% of €46.3 million), the Netherlands (94% of €27.1 million), Germany (96% of €16 million), France (95% of €1.6 million), and Greece (94% of €7.8 million). This was how things stood on 15 October 2011. Member states will soon be presenting an update of their spending for the period mid-October/mid-November.
Penalties for late payment. The Commission has earmarked €11 million from the 2012 budget (beginning 16 October 2011) for this fund to help vegetable producers. If a member state awards funds under this scheme from mid-October to mid-November, there will be a penalty of 5% for late payment. The penalty rises to 10% between mid-November and mid-December (but only if the sum is more than 5% of the total budget), 25% between mid-December and mid-January, and 50% between mid-January and mid-February.
At the end of July this year, the Commission set the amount of Community aid for vegetable growers (cucumbers, lettuces, courgettes and sweet peppers) and fruit (tomato) growers at €227 million, to compensate for falls in sales. Twenty-two countries have requested aid (all except Cyprus, Lithuania, Luxemburg, Malta and Finland). According to the rules in force, the EU bears the cost of withdrawal operations, non-harvesting and green harvesting from 26 May to 30 June 2011. Compensation amounts to 50% of losses (70% for members of producer organisations). (LC/transl.jl)