English: disallowance

Part of speech

Noun, Feminine, Singular

Context

EU legislation for the financing of CAP has always provided that aid paid to farmers outside the predetermined payment periods will be treated as irregular and will be subject to disallowance. In practice, disallowance means that the European Commission applies a penalty and reduces the amount of aid it reimburses to Member States. A sliding scale sets the amount of the disallowance, according to the seriousness of the irregularity.