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2012 02 29

EU suspends payments to Lithuania

The European Commission has temporarily suspended payments from the European Regional Development Fund and the Cohesion Funds to Lithuania due to irregularities in the country's use of EU money, the business daily Verslo Žinios reported on Wednesday.
Europa
Europa / Šarūno Mažeikos/BFL nuotr.

The payment freeze will be lifted after Lithuania works out a plan for dealing with such irregularities. Lithuania's authorities have been given two months to develop an action plan to prevent similar cases in the future, the paper wrote.

Lithuania estimates in its reports that irregularities, which are related to non-compliance with public procurement rules, account for 1.93 percent of the total financing, but the Commission thinks that four potential irregularities have not been in included and if they are included, the amount of irregularities will then exceed 4.36 percent.

The EU's executive body is concerned that these irregularities may be systematic, which means that they may occur in the future.

The Finance Ministry says that neither the Commission nor the European Court of Auditors imposed any financial sanctions on Lithuania during the 2007-2013 programming period.

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