Targeting of aid for the modernisation of agricultural holdings : Special Report No 8, 2012

The European Union co-finances investments that aim at modernising farms. Subsidised investments range from simple farm machinery to complex building projects. In this report, the Court identifies the importance of targeting aid to projects that address clearly identified structural needs in the member states and the priorities set out at the EU level. Effective targeting should direct the funding to viable projects that have a greater chance of achieving the objectives set, thereby providing better value for money for the European and national taxpayers. The Court found that the targeting of the funding varies significantly; whilst some member states have developed systems for selecting the best projects, others fail to target the aid effectively. The Court also underlines the important role of the commission in ensuring that member states have provided for the targeting of the aid when it approves the member states' rural development programmes.