EU Court of Auditors report on the 'less favoured areas system'
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CTA. 2003. EU Court of Auditors report on the 'less favoured areas system'. Agritrade, July 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52453
In a special report on EU agricultural sector aid to less favoured ...
In a special report on EU agricultural sector aid to less favoured areas of the EU, which accounts for 55.8% of the EU's agricultural holdings, the EU Court of Auditors found that: there is insufficient evidence to show that the classification of less favoured areas is valid; while the system should have been reviewed in the early 1990s no such review took place in the face of opposition from EU member states; definitions of less favoured areas vary considerably. The Court recommended: that a complete in-depth review of the existing classification of all less favoured areas be performed; development of a more appropriate set of indicators; a comprehensive review of the scheme to eliminate over-compensation; the linking of aid to 'good agricultural practices', which are clearly defined; an overall evaluation of the scheme. Comment: Since the definition of less favoured areas is a key determinant of the levels of aid which can be made available, abuses of this system can lead to substantial over-compensation of EU farmers which exacerbates the unfair trade consequences which flow from EU agricultural-support programmes.