Slovakia delays payments to farmers, EU can’t intervene

Slovakia delays payments to farmers, EU can’t intervene | INFBusiness.com

Slovakia’s government has delayed paying EU farm subsidies, known as direct payments, to eligible farmers who, despite joining the biggest farmers’ protests in the country’s history, risk not receiving them as the European Commission confirmed the situation is out of its hands.

In an unprecedented move, the Slovak Agricultural Paying Agency (PPA) has so far paid out less than a third of the €336 million in EU agricultural subsidies that working farmers can apply for every year and has until the end of June to pay out the annual subsidy package.

Aware of the situation, the European Commission remains in contact with national authorities to “provide advice and exchange on best practices”, as with all other member states, European Commission spokesperson Olof Gill told Euractiv Slovakia.

However, the Commission clarified that it cannot help Slovak farmers obtain the money they are entitled to. Gill explains, “EU countries are responsible for setting up a management and control system for payments that complies with EU regulations.”

“They must ensure that this system functions effectively. Payments to Slovak farmers, including direct payments, are under the responsibility of the PPA,” he added.

The Commission also confirmed that Slovakia has no time left to spend the money.

“The Paying Agency has to pay 100% of direct payments until 30 June 2024 and is responsible to achieve this objective,” he added.

Direct payments have never been delayed to this extent before and no one has yet explained the reasons behind it to the Slovak farmers. Both the Agriculture Ministry and the PPA have not answered questions from Euractiv Slovakia nor other media.

But the lack of payments has left many farms in debt to banks, selling off their assets and with no money to pay salaries, a situation described by Emil Macho, president of the Slovak Chamber of Agriculture and Food (SPPK), as “catastrophic”.

Macho warned, “We will demand financial compensation from the current government for the costs associated with financing the delayed direct payments.”

Like in other countries, Slovak farmers organised mass protests in recent weeks.

Although SPPK initially claimed that the EU’s “green fanaticism” was to blame for the problems farmers face, including the issue of direct payments, it eventually directed most of its discontent at the country’s government.

(Maroš Koreň, Natália Silenská | Euractiv.sk)

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Slovakia delays payments to farmers, EU can’t intervene | INFBusiness.com

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Source: euractiv.com

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