A massive scam to defraud the EU has convulsed Athens this year, after many Greeks improperly received farm subsidies for pastureland they did not own, or for farm work they did not do. POLITICO first reported on the scheme in February.
Several ministers and deputy ministers resigned over their alleged involvement in the scandal, which is also under investigation by the European Public Prosecutor’s Office. The EU has already fined Athens €400 million after finding evidence of systemic failings in the handling of farm subsidies from 2016 through to 2023.
EPPO had already raided OPEKEPE headquarters in May, meeting physical resistance to its inquiries. This was followed by a raid by Greek police in July.
Greece risks losing its EU farm subsidies unless it provides an improved action plan on how it will stop funds being siphoned off into corruption. The original deadline was Oct. 2, but this has now been pushed back to Nov. 4.
“The Commission has not received the revised action plans from the Greek authorities,” a European Commission spokesperson said in response to a POLITICO inquiry. “The Commission is awaiting the submission of the revised action plan and in the meantime, it continues to be in contact with the Greek authorities.”
Meanwhile, the Greek government announced last week it canceled subsidies for organic farming retroactively for 2024, after being inundated with fake applications. The Organic Farming and Animal Husbandry Program was set to run from June 2024 to June 2027 and had a budget of €287.5 million. More than 60,000 farmers had applied for subsidies under the program and it is not clear yet whether subsidies for 2025 will be paid.
The Commission has yet to be notified of the government’s decision to pull the plug on the payments.
“The Commission expects to be informed by the Greek authorities whenever EU agricultural funds are withheld, rerouted, or intended to be. As of Oct. 13, the Commission has received no such notification,” the spokesperson said.