Greece faces possible suspension of agricultural subsidies due to a significant fraud case
Greece is under scrutiny as a fraud scandal involving EU agricultural funds continues to unfold. The European Union has withheld farm subsidies from Greece due to concerns about corruption and fraud, with the European Commission's Directorate-General for Agriculture (DG AGRI) finding Greece's initial action plan inadequate and non-compliant with EU rules.
The scandal, first reported by POLITICO in February 2025, involves Greeks allegedly receiving agricultural funds for non-existent or leased pastureland, or for unperformed agricultural work. The European Public Prosecutor's Office (EPPO) is investigating the case, and the organization in charge of distributing EU farm funds in Greece, OPEKEPE, is being integrated into Greece's Independent Authority for Public Revenue for comprehensive verification of property records and cross-checks before payments.
The fraud scandal has led to multiple resignations of ministers and deputy ministers in Greece. The Greek Agriculture Minister, Konstantinos Tsiaras, has reassured farmers that there is no risk of losing EU agricultural funds. However, the entire opposition is questioning the ruling center-right New Democracy party's commitment to a thorough investigation.
On Thursday, the opposition parties accused the government of torpedoing the investigation by rejecting a list of key witnesses named in a case file sent to the parliament by the EPPO, including political figures. Milena Apostolaki, an MP from the center-left PASOK party, accused the government of using cover-up tactics, with key witnesses being excluded, whom the EPPO has used but New Democracy is protecting.
The deadline for Greece to provide an improved action plan is October 2, 2025. The European Commission sent a letter to the Greek government last month regarding the inadequacy of the initial action plan, and the Commission's DG AGRI has requested Greece to amend and strengthen its action plan.
In an effort to address the abuses of payments from the Common Agricultural Policy, Greece's parliament has convened to investigate the OPEKEPE scandal. The future distribution of EU agricultural subsidies in Greece is intended to be managed by national authorities with more responsibility, aligned with the EU's proposal from 2025 to simplify and decentralize the Common Agricultural Policy (CAP) for 2028-2034, giving member states increased responsibility for policy implementation. This shift emphasizes national management and oversight rather than centralized EU control.
The Common Agricultural Policy accounts for a third of the EU budget, making it crucial that fraud and corruption are addressed promptly and effectively. As the investigation continues, Greece faces pressure to demonstrate its commitment to transparency and accountability in the management of EU funds.
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