The General Court of the European Union has upheld a €38 million sanction imposed on Spain in 2010 relating to irregularities in the management of European aid to the fruit and vegetable sector.
After the initial imposition of the sanction in 2010, Spain appealed the decision but the objections were dismissed and the original verdict has been upheld.
The EU has withdrawn funding of €33 million which had been claimed for packaging management costs as this item cannot be subsidised by European funds. In addition, aid of €4.9 million to the organisation of producers, SAT ROYAL , has also been suspended on the grounds that the organisation does not have a functioning democracy.
Spain failed to provide evidence that the costs generated by the environmental management of packaging were supported, either directly or indirectly, by the organisation of producers. Had this been the case, the producers would have been eligible for European aid.
In relation to the organisation SAT ROYAL, Spain was found not to have taken steps to ensure that no single member controlled more than 20% of voting rights, a situation which is deemed to jeopardise democracy within the organisation.