Lithuanian farmers prove EU’s direct payments were cut unlawfully

The Court stated that the requirement to reduce additional national direct payments for 2012 to farmers in Lithuania was unlawful. Total amount of national and EU’s direct payments was from EUR 5,000 to EUR 300,000.

In accordance with the Court’s ruling, authorities will now look into the lawfulness of legislative acts adopted by Lithuanian institutions, which were basing their legislative acts on a relevant decision of the European Commission and which included a requirement to reduce payments to farmers. Lithuanian farmers, meanwhile, have been given an opportunity to recover part of their direct support which was cut. Lithuania’s farmers were denied over LTL 40 million (EUR 11.5 million) in payments for 2012.

The Government of Lithuania has also brought an analogous lawsuit to the EU’s judicial authorities regarding the unlawful reduction of payments to farmers for 2013. The recent ruling of the Court of Justice of the EU in 135 cases brought by farmers is likely to influence a decision in the Lithuanian Government’s action.