EU Issues Ultimatum to Greece Over Widespread Farm Subsidy Fraud

Brussels Demands Action on Fraudulent Claims

The European Union has issued a stern warning to Greece, stating that the country risks losing substantial agricultural subsidies unless it presents a significantly improved action plan to combat widespread fraud by October 2, 2025. This ultimatum from Brussels, specifically the European Commission's Directorate-General for Agriculture (DG AGRI), follows an initial plan submitted by Greece that was deemed insufficient to address the systemic deficiencies and non-compliance with EU rules.

The fraud scandal centers on the misuse of funds from the Common Agricultural Policy (CAP), which constitutes a third of the EU budget. Investigations have uncovered schemes where individuals claimed subsidies for pastureland they did not own or lease, or for agricultural work they did not perform. Other fraudulent activities include submitting fictitious information on alleged agricultural land, and declaring areas such as rocky ground, woodland, or even plots in North Macedonia as eligible for subsidies.

Scale of the Misappropriation

The financial impact of the fraud is estimated to be in the hundreds of millions of euros. Greek authorities have estimated at least €23 million ($26 million) in illegal payments from an examination of 1,036 out of 6,354 aid recipients. Media reports suggest that losses since 2017 could total €170 million in illegal payments, while other reports indicate a reputed €290 million (£249 million) in fraudulent claims. The European Commission has already imposed a fine of approximately €392.2 million (around $453.4 million) on Greece for large-scale agricultural subsidy fraud dating back to 2016, citing major oversight failures by the Greek payments agency.

The European Public Prosecutor's Office (EPPO) has been actively investigating the scandal, with one trial involving 105 defendants for subsidy fraud set to begin on September 22, 2025, in Heraklion. The EPPO has also filed indictments against 100 suspects for fraud amounting to €2.9 million.

Greek Government's Response and Political Fallout

The scandal has led to significant political repercussions in Greece, with several ministers and deputy ministers resigning over alleged involvement. The EPPO has referred information regarding the alleged involvement of two former Ministers of Rural Development and Food to the Hellenic Parliament.

Greek Agriculture Minister Kostas Tsiaras has attempted to reassure farmers, stating that EU funds are not in danger and that a more robust plan is being prepared. The Greek government has also taken steps to address the issue by dissolving or integrating OPEKEPE, the agency previously responsible for managing EU agricultural subsidies, into the Independent Authority for Public Revenue to enhance cross-checks and verification processes before payments are made. Prime Minister Kyriakos Mitsotakis acknowledged the state's inadequacy in dealing with the corruption, describing the fraud as a 'chronic problem' and establishing a special taskforce to investigate the illegal payments.