In a major blow to its agricultural sector, Greece has been ordered to forfeit €392.2 million in EU funding following years of mismanagement and regulatory violations related to farm subsidies. The European Commission’s decision marks one of the largest financial penalties imposed on an EU member state for agricultural policy infractions, leaving Greece at the top of the list of offenders—far surpassing Portugal and Hungary, who follow distantly.
According to Commission Implementing Decision (EU) 2025/1147, dated June 11, 2025, the penalties are based on systemic failings in the management of EU farm subsidies between 2016 and 2023. The Greek agency responsible for overseeing agricultural payments, OPEKEPE, was found to have made disbursements without sufficient eligibility checks or on-site inspections, a pattern that the EU has now deemed chronic and structural.
This development highlights enduring weaknesses in Greece’s agricultural funding system, with Brussels pointing to the failure of successive governments to implement reforms and ensure proper oversight. The Commission’s ruling was based on articles 52 and 55 of EU Regulations 1306/2013 and 2021/2116, which govern the financing and monitoring of CAP expenditures.
Systemic Failures and Lax Oversight
The withheld funds correspond to what the Commission classifies as ineligible or inadequately controlled expenses, primarily related to Greece’s implementation of the EU’s Common Agricultural Policy (CAP). The decision cites “persistent deficiencies” in both administrative and field-level checks. Moreover, delays in initiating recovery procedures for incorrect payments and even cases of artificially created conditions for subsidies contributed to the sanction.
The core issue, according to Brussels, is a lack of effective supervision, which prompted a flat-rate correction of 5% on all Greek direct subsidies. For specific categories such as young farmer schemes from 2018 to 2020, that correction rises to 10%. The two largest annual penalties target area-based payments made in 2021 (€79 million) and 2022 (€76 million).
Far-Reaching Financial Implications
Greece was expected to receive approximately €1.9 billion in CAP-related direct payments in the coming year. With the new correction in place, nearly one-quarter of this amount will be withheld. This could have wide-reaching consequences not only for the national budget but also for thousands of farmers relying on these subsidies.
The fines affect multiple subsidy regimes, including direct payments, small farmer schemes, eco-schemes, and voluntary coupled support measures. All were found to suffer from insufficient compliance with EU criteria.
Legal and Political Fallout
The penalty follows a March 2025 ruling by the General Court of the European Union, which dismissed a previous Greek appeal against a similar set of sanctions, upholding the European Commission’s findings and ordering Greece to pay court costs.
While the current decision does not directly pertain to ongoing investigations into fraudulent pastureland claims by self-declared “young farmers”—a scandal currently under review by the European Public Prosecutor’s Office—it may be seen as part of a broader pattern of concern surrounding Greece’s agricultural governance.
The Greek Ministry of Rural Development was reportedly aware of the risk of sanctions and had engaged in formal communication with the Commission prior to the final decision. However, the explanations offered by the Greek side were ultimately rejected by the EU executive.
