1. Agriculture today and tomorrow: The need for vision and visibility - The view of the EU Court of Auditors -

2. The European Court of Auditors (ECA) Within our scope: The European Agricultural Policy Special reports Vision and visability for the CAP

3. The European Court of Auditors (ECA) ECA started operating in 1977 (headquarters in Luxembourg) Mandate and composition: Articles 246 to 248 of the EC Treaty External auditor of EU finances Assessing the financial management of the budget as a whole

4. The way to achieve our mandate Mission: audit independently the collection and spending of EU funds Approach: examine whether financial operations have been properly recorded, legally and regularly executed and managed to ensure economy, efficiency and effectiveness Policy: make the results known through publication of relevant, objective and timely reports Aim: contribute to improving EU’s financial management and to ensure maximum value for money for EU’s citizens

5. Subjects of audits Recurrent audit tasks; undertaken each year including the audit of the financial statements of the EU = DAS (Statement of Assurance) audits Selected audit tasks; undertaken in specific budgetary areas or managements topics of specific interest for detailed audit. = Performance audits

6. Within ECA’s scope: The European Agricultural Policy Agriculture: by far the highest expenditure in the EU budget Direct aids and market measures remain roughly stable (2007: € 42.7 billion) Boost in Rural Development expenditure (2007: € 12.4 billion) Combination of complicate legal framework and substantial amount of money = high risk area

7. Recent Performance audits by ECA’s RD unit FG4 Less-favoured areas (2003) Forestry (2004) Agri-environment (2005) Investments in rural development (2006)

8. Less-favoured areas audit - Major findings No proper justified classification of areas considered as less-favoured Wide range of indicators leading to disparity in treatment between beneficiaries No knowledge on impact with likelyness of overcompensation Good farming practices difficult to verify

9. Forestry audit - Major findings Lack of clear Forest strategies Absence of national or regional forest programmes Implementation complex Unclear project selection criteria,decisions on eligibilty, previous land use, conditions on being farmer Very expensive (compensation for 20 years)

10. Agri-environment audit - Major findings Timing of the checks at inappropriate times Certain measures very difficult to check (reduction of intrants etc) Controls based on inconclusive visual checks No clear baseline to compare performance

11. Investments in rural development audit- Major findings No clear objectives and lacking strategies Absence of definition of rural area Insufficient focussing on highest needs No knowledge on key factors for success Data for monitoring insufficient

12. Vision and visibility for the CAP What did we learn from our audits? To safeguard a CAP even after 2013 two important issues have be taken into account: need for a clear vision: Setting clear targets based on realistic strategies need for visibility: Transparent, controllable and accountable.

13. Vision: Successful Rural Development policy in the period 2007-2013 (EAFRD) The community strategic approach should be realistic (based on realities): Focus on the areas where the use of EU support for RD creates the most surplus Be a basic part of the main EU priorities (Lisbon, Göteborg) Ensure consistency with other EU policies, in particular cohesion, consumer protection and environment Accompany the implementation of the new CAP and the necessary restructuring in both the old and the new Member States

14. Clear targets for an effective, economic and efficient RD policy Have a clear idea of what has to be achieved Use realistic indicators to assess the degree of success Monitor and evaluate closely Amend plans/schemes to guarantee successful delivery

15. Visibility – the way to achieve a transparent CAP Ensure respect of Cross-compliance Monitor respect of contract commitments Launch and implement a robust sanction system

16. Benefits of Cross-compliance Response to societal and consumers demands Improvement for environmentally- sustainable agriculture in rural areas Strengthens the CAP‘s legitimacy and public acceptance Underlines the international non trade- distorting nature of the EU’s direct payments to farmers

17. Visibility: controllability Regular and well documented controls on farm level (minimum 1% p.a) as well as sanctions in cases of infringements Risk assessment and risk parameters must be resilient Spread controls over the commitment period and share the outcome of controls with the stakeholders

18. Visibility: Feel accountable The future of the CAP depends on the success of the second pillar The money which was spent on the CAP is of public interest and serves a public good All stakeholders should feel accountable to the taxpayers and deliver an adequate added value to the society

19. THANK YOU FOR YOUR ATTENTION