€113M Fine Over Spanish Flax Subsidy Upheld

Law360, New York (July 2, 2009, 12:00 AM EDT) -- A European court has upheld the findings of an investigation into irregularities in subsidies for Spanish flax production that led the European Commission to order the country to return more than €100 million ($140 million) paid to flax farmers.

The European Court of First Instance on Wednesday rejected all but one protest Spain made against several fines the commission imposed for allegedly improperly disbursed subsidies in the flax, hemp and banana industries.

The largest penalty — €113.4 million ($159 million) — stemmed from the European Anti-Fraud...
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