GreekReporter.comGreek NewsGreece Shuts Down Agency Amid EU Farm Subsidy Fraud

Greece Shuts Down Agency Amid EU Farm Subsidy Fraud

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Greek farmers
Greek farmers have significantly benefited from EU agricultural subsidies, primarily through the Common Agricultural Policy (CAP). Credit: Greek Reporter

Nearly 25 years after its establishment, Greece has officially abolished OPEKEPE, the agency responsible for distributing and monitoring EU farm subsidies. The decision follows years of operational failures and recent explosive revelations of large-scale fraud.

The agency’s duties—and its staff—will be transferred to the Independent Authority for Public Revenue (AADE), according to an announcement from the Ministry of Rural Development. Officials assured the public that upcoming agricultural subsidy payments will proceed without disruption.

The move comes after the European Public Prosecutor’s Office (EPPO) began investigating illegal subsidy claims, including an incident in which OPEKEPE allegedly attempted to obstruct an EU audit. That led to the early dismissal of the agency’s president, Nikolaos Salatas.

European Chief Prosecutor Laura Kövesi has vowed to press ahead with the investigation, which, so far, has implicated around 100 farmers accused of fraudulently collecting €2.9 million in subsidies between 2019 and 2022. EPPO is also probing the possible involvement of OPEKEPE executives.

According to the investigation, the Greek suspects submitted false declarations of ownership or falsified lease contracts of plots of land which, in reality, they did not own or had not leased. The majority of the suspects lived in different parts of the country from what they had declared in their applications.

The Greek government said in a statement that the farm payments, along with the related checks and controls, will be conducted via the Independent Authority for Public Revenues, where the staff of OPEKEPE will also be transferred.

“After efforts to modernize OPEKEPE internally, which did not yield the expected results, the government, in cooperation with the European authorities…is proceeding with determination to address the problem once and for all,” it was said.

The goal is to have full integration completed in the second half of 2026; the relevant legislation will be submitted by July.

OPEKEPE has been under EU supervision since September 2024 because of noncompliance with operational standards and risked losing its certification to manage EU funds in July when EU authorities visit Athens to monitor progress.

Farmers in Greece have benefited from EU agricultural subsidies

EU agricultural subsidies are financial aid packages provided by the European Union to support farmers and rural development across member states. These subsidies are aimed at ensuring food security, promoting sustainable farming practices, and maintaining the economic viability of agricultural sectors within the EU.

Greek farmers have significantly benefited from EU agricultural subsidies, primarily through the Common Agricultural Policy (CAP). These subsidies have provided financial support to help sustain Greek agriculture, modernize farming practices, and improve rural development.

A large portion of CAP funds go directly to farmers, helping stabilize their income. Greek farmers, particularly in the olive oil, cotton, and livestock sectors, have received substantial direct payments.

Funds have been allocated to modernize farming equipment, improve irrigation systems, and further develop agri-tourism. Investments in infrastructure have boosted rural communities, reducing unemployment and improving living conditions.

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