The European Court of Auditors has concluded that EU spending on the modernisation of agricultural holdings would provide greater value for money if the funds were better targeted.
While the measures were achieving the nominal objective of modernisation, a special report says this is almost inevitable as any investment or purchase of new equipment results in some degree of modernisation.
The performance audit examined whether EU aid for the modernisation of agricultural holdings was directed to EU priorities and specific needs in member states.
The report found that while some countries target their spending very strongly on EU priorities and their own specific needs, others do not, either because their targeting systems are weak or they do not apply in practice the good selection criteria they had established.
This lack of targeting at member state level is compounded by the fact that the Commission approved some rural development programmes that did not adequately target the aid or specify the process or criteria to be applied for selecting projects.
The Court of Auditors recommends that the EU Commission should not approve rural development programmes unless they demonstrate that the aid is targeted and include clear and relevant selection criteria addressing EU priorities and national or regional needs.
The Court also says that member states should put effective procedures in place to ensure that grants are not given to projects where the financial viability of the investment or the sustainability of the holding is in doubt.
