EC safeguard clause - Romania gets 37 days more to accredit payments agency in agriculture

Romania has until mid-December to root out any issues concerning its agency for payments in agriculture APIA or it may face trigger of the safeguard clause; EC will decide four days after the deadline expires whether to cut farm aid or not, an EC release shows.

EC today hailed the progress Romania made in implementing the payment system in agriculture yet urged the country to further improve the IT system. In the event it fails to do so, Romania will see 25 percent of its EU agriculture subsidies under lock and key.  

Romania made it clear no payment will be made until all check ups are be completed and said the new payments software is up-and-running, after being previously approved by an independent auditor.

Yet, the auditor found major flaws in the IT system for payments and if in 37days the country overhauls these deficiencies, the procedure concerning the safeguard clause will be halted.

EC discovered Romania lacks a proper computer system to track farm payments, after performing audits in June and September. EU also fears ineligible farmers or institutions could siphon off the funds.

If all goes well, Romania could benefit from a total 4.3 billion euros handouts in the form of farming subsidies, from 2008 to 2013.

Source: NewsIn