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BN exclusive: New DG AGRI report on organics brings fines up to 800 million euros and clawbacks up to 100% of subsidies

BN exclusive: New DG AGRI report on organics brings fines up to 800 million euros and clawbacks up to 100% of subsidies

Received since September 22 and they are hiding it...

The new bombshell regarding organics, foreshadowed by the first letter from DG AGRI to the competent ministries and AADE, which was revealed by BN, has exploded.
And the bill, namely the sums that Greece is called upon to return solely for this report, ranges between 600 and 800 million euros.
These are shocking amounts, considering that we will be called upon to return up to more than 50% of the aid received from 2018 until today for the celebrated Measure 11, which concerns support for organic farming.

Clawbacks of up to 100%

As stated in the report-letter, which is dated September 22, 2026, and bears reference number Ares (2026) 89433938, which the Ministry of Rural Development and AADE do not dare mention (we recall the first one revealed by BN was dated September 14), a flat-rate financial correction of at least 25% is proposed, and for certain expenditures a 100% correction.
That is, in plain Greek, in certain instances we will be called upon to repay the entirety of the subsidies disbursed, a fact reflecting the tragic state prevailing over the supervision of organic farming.
Besides, the utter breakdown is described in the first document as well, without exhaustive details but indicative ones, which we have highlighted and which illustrate a state of affairs where Greece essentially audits nothing regarding organic crops, permitting fraudsters to receive subsidies.

The urgent letter from the State Legal Council

It is worth noting that the receipt of both documents, and particularly the second one, sounded the alarm at the State Legal Council, which, according to well-informed sources, has addressed an urgent letter to the Minister of Rural Development and Food, Mr. Margaritis, as well as to Secretary General Mr. Spyridon Protopsaltis.
In the letter, it sounds the alarm for immediate compliance with legislation, especially in view of the upcoming meeting with relevant EU officials next March, which will prove absolutely critical for the final determination of the fines' total.

Beyond words

Naturally, the question remains how and in what manner corrections will be implemented that were neglected for years, while the situation prevailing especially across the agencies and the Central Service of the Ministry of Rural Development and Food is beyond description.

Schinas's sharp jabs and what he left unsaid

Moreover, the remark by Margaritis Schinas during his speech in Parliament on September 24 that «I did not come here to cover for my predecessors» does not appear accidental at all.
Because the misdeeds of predecessors constitute only half the truth, and the remainder that he left unsaid is that he had received the report on organics, which we recall is dated September 22, and his indignation was overflowing.

Whistling nonchalantly

Amid this climate, of course, Deputy Prime Minister Kostis Chatzidakis pretends not to notice, even though he had supposedly undertaken to coordinate the cleanup that never materialized, pulling strings behind the scenes that obviously did not aim at an overhaul but at sweeping the scandal under the rug, a maneuver that no longer succeeds.
And he was clearly not speaking the truth when talking on ERT, where he stated that the government will not bury its head in the sand.
Because what else is it doing when sending Mr. Margaritis Schinas to plead for vague and worthless non-papers, while enormous fines resulting from governmental incompetence are looming at the gates.
Evidently, they are betting that these penalties will be finalized after the elections, leaving the Greek taxpayers as the suckers who will foot the bill after having voted under deception.

Nikos Karoutzos
nkaroutzos@gmail.com
www.bankingnews.gr

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