Farming News - ECA finds rural development funding could be better targeted
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ECA finds rural development funding could be better targeted
A report by the European Court of Auditors has concluded that European funding for “modernisation of agricultural holdings,” delivered under pillar two of the Common Agricultural Policy, could provide greater value for money if the funds available were “better targeted”. The European watchdog released its opinion in a special report this week, following an investigation into the funding.
The measure in question (number 121) allocates funding for agricultural holdings, ranging from acquiring tools to complex projects including biogas installations.
In a scathing summarisation of the measure’s success the Court of Auditors declared, “While the measure was achieving its nominal objective of modernisation, this is almost inevitable as any investment or purchase of new equipment results in some degree of modernisation.”
The auditors found that, whilst some Member States target their spending very strongly, basing allocations on EU priorities and their own specific needs and using selection procedures to choose the best projects, others do not. They concluded this was “Either because their targeting systems are weak or they do not apply in practice the good selection criteria they had established.”
They said that some of the criteria upon which the European Commission makes its decisions, including procedures for establishing the viability and sustainability of a holding or investment project, are not effective. The auditors also said the measure is not currently reflexive enough, and that not enough reliable information is generate to measure its success.
The ECA’s recommended the Commission to improve the effectiveness of the measure by only approving rural development programmes (RDPs) which demonstrate that the aid is targeted and include clear and relevant selection criteria addressing EU priorities and national or regional needs.
The auditors also Proposed introducing legislation to earmark funding for specific priorities in underlying EU Regulations to increase the impact of funding and recommended member states ensure that grants are targeted only at financially viable and sustainable holdings.