Brussels, 22/01/2016 (Agence Europe) - Three-quarters of common agricultural policy (CAP) investment between 2007 and 2013 for improving the environment were too costly, says a report published by European Court of Auditors on Thursday 21 January.
The Court audited 28 projects in four member states (Denmark, Italy, Portugal, and United Kingdom) which between them spent 80% of the €850 million allocated by the CAP over the period from 2007 to 2013 for investment in environmental protection (such as hedge planting and restoration of wetlands). “Only five of the 28 audited projects proved to be cost-effective”, the Court states in a press release. It adds: “The majority of the so-called 'non-productive investments' (NPIs) did contribute to landscape and biodiversity protection. But the auditors found clear indications in 75 % of cases that costs were either unreasonably high or insufficiently justified”.
The problems, the Court says, stemmed from weaknesses in member states' management and control systems. The member states did not appropriately verify the reality of the costs claimed, or accepted the most expensive offer without justification. In several cases, projects which would clearly have increased the value of the holding were fully funded with public money or benefitted from much higher aid rates than those normally granted to productive investments.
Given that the support system has been continued for the 2014-2020 period, the Court recommends that in future member states should, inter alia: - assess the extent to which NPIs are implemented in synergy with other environmental schemes; - systematically verify supporting documentation for cost claims; - define specific results indicators and report on them in their annual implementation reports; - establish criteria to determine the potential returns on NPIs benefitting from the highest aid rates and modulate the levels of support; - ensure that costs do not exceed the costs of similar work on the open market. The Commission should monitor implementation of NPIs through their annual implementation reports and provide guidance on selection criteria. (Original version in French by Mathieu Bion)