EU Fines Greece €392 Million Over Agricultural Subsidy Fraud

The European Union has imposed a €392.2 million fine on Greece for systemic mismanagement and fraud related to agricultural subsidies from 2016 to 2023, linked to the Greek agency OPEKEPE, which was dissolved following revelations of misuse involving fictitious pastures and sham activities. The European Commission applied a 5% horizontal correction to all Greek direct subsidies, increasing to 10% for young farmer schemes from 2018 to 2020, with the largest penalties targeting area-based payments in 2021 and 2022. These penalties reflect persistent failures in subsidy oversight, with no individual farmers formally identified, leading the Greek government to plan covering the fine via the state budget rather than cutting farmers’ payments directly to avoid political fallout. The scandal has triggered investigations by the European Public Prosecutor’s Office targeting about 100 individuals accused of fraudulent claims, while Greece is reorganizing its subsidy payment system by merging OPEKEPE with tax authorities to prevent future fraud. Industry insiders warn that further EU penalties may follow as additional damages are uncovered, underscoring the ongoing severity of the subsidy fraud issue. Greek opposition leaders have criticized the reputational damage from the scandal, while EU prosecutors affirm continuing efforts to pursue justice despite reported intimidation attempts.