ATHENS 

The European Commission has fined Greece €392.2 million (approximately $453.4 million) over a large-scale agricultural subsidy fraud dating back to 2016, local media reported on Tuesday.

The fine stems from major oversight failures by OPEKEPE, the state agency responsible for managing EU agricultural subsidies in Greece.

The agency was dissolved in May after it was discovered that funds had been misused through fictitious pastures and fraudulent agricultural activities, according to the daily Kathimerini.

The report said the penalty will likely be paid from the state budget, as no individual farmers have been formally found in violation, and the government failed to conduct inspections during the relevant period.

Citing industry insiders, Kathimerini noted that the fine may only be the beginning, warning that additional EU penalties could follow as further damages are uncovered.