Wednesday, December 19, 2007

EU decides not to withhold farm payments to Romania following IT improvements

18/12/2007 1

BRUSSELS (Thomson Financial) - The European Commission said it has decided not to apply the so-called ''safeguard mechanism'' to withhold farm payments in Romania following rapid progress by the Romanian authorities in putting in place the necessary controls over agricultural spending.

In November, the commission asked Romania to make further improvements to the software module designed to ensure that farm payments are made correctly, in order to avoid a provisional 25 percent cut in EU payments.

A new report from Deloitte, which is acting as an independent expert, concludes that no major deficiencies remain to be solved for this IT module.

However, the commission said the decision not to use the safeguard does not imply that everything is perfect. It said Romania still needs to increase its control rate and there are still some IT deficiencies to be solved.

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