This is another one of the ills of European farm subsidies -- loss of taxpayer's money. A recently released special report by the European Court of Auditors (eca), the eu financial watchdog, says eu countries distributed nearly us $ 3.7 billion wrongly or fraudulently in farm subsidies from 1971 to 2002, of which us $2.8 billion is still missing.
The eca says the eu governments did not have adequate financial control over the eu money coming from the Common Agricultural Policy, which is worth us $53.4 billion a year (almost half of the total eu budget). The governments distribute most of this money to farmers and the agricultural industry as aid. The European Commission (ec) is notified if any irregularity is discovered. The eca also points out that between ec's anti-fraud office and member states, responsibilities get confused.
The report says the recovery rate of 17 per cent is pathetically low, even if it is assumed that 100 per cent recovery is not possible. The ec claims a 20 per cent recovery rate.
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