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Image header Agence Europe
Europe Daily Bulletin No. 10897
SECTORAL POLICIES / (ae) agriculture

Sugar producers to be reimbursed €295 million

Brussels, 26/07/2013 (Agence Europe) - The European Commission has recently adopted a proposal aimed at reimbursing EU sugar producers €295.5 million in application of the EU Court of Justice ruling that the calculation of contributions paid by the sector from 2001/2002 to 2005/2006 was not valid.

On 27 September 2012, on the basis of a procedure initiated by the sugar producers, the European judges said that the method for calculating contributions for sugar production was incorrect as it led to an over-assessment of the “losses” to be covered (export refunds and refunds for the production of chemical products) and hence the level of contribution to be determined. The judges' decision implied that a corrected contribution should be calculated for the 2002/2003 to 2005/2006 harvest years and that the companies concerned should be reimbursed by member states for the difference between the excessive contribution and the corrected contribution, with retroactive effect.

The Commission is now proposing that the EU28 implement this reimbursement totalling €295.541 million and for a period that begins in 2001/2002 and ends in 2005/2006. In addition to this amount must be added the payment of interests to producers, who should, moreover, reimburse a proportionate amount to sugar beet producers. Member states may recover the amounts effectively reimbursed from the Community budget. (LC/transl.jl)