The European Court of Justice on Tuesday required Greece’s farmers to repay 425 million euros in emergency aid to Athens authorities, confirming a decision that the money was an illegal state subsidy.
The aid was given to Greek farmers in 2009 as a subsidy after bad weather destroyed crops. About 800,000 farmers received the aid, but the European anti-trust regulator declared the funds an illegal state subsidy.
According to Europe’s top court, Greek authorities failed to demonstrate “specific exceptional circumstances in the Greek agricultural sector” as compared to other EU member states.
The commission also accused Greece of appropriating funds to its national budget that should have been set aside as insurance for farmers against bad weather and disasters.
“[The Hellenic Republic] shall take all measures necessary to recover from its beneficiaries the incompatible aid… which was granted unlawfully,” the ruling says. It is estimated that on average, each farm must return to the state about 500 euros. Greece must recover the aid “within a reasonable delay.”
The decision lands at a sensitive time for Greece, with angry farmers protesting violently over deep tax and pension reforms required in the country’s third bailout.
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