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CAP subsidies: are they out of control and why can’t the EC stop th efraud?

August 1st, 1993

Myth: EC spending on agriculture is out of control, with subsidies having risen by some 6% from 1991 to 1992 when in fact they were supposed to have fallen. It is, furthermore, subject to fraud on an unprecedented scale.

Truth: In fact, EC subsidies in agriculture were lowered by 7% (in terms of ECU) for the above period. However, with sterling’s devaluation this figure was translated into a 6% rise in pounds sterling.

It has to be borne in mind that the detection of fraud is principally up to the Member States’ national authorities rather than the European Commission.

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