Strasbourg, France - European Accounting Office chief Vitor Caldeira on Thursday strongly criticized irregularities and sloppiness which he said were causing billions of euros' worth of European Union funds to go into the wrong channels.

He said that last year, out of 42 billion euros (53 billion dollars) in structural subsidies provided by Brussels, at least 11 per cent should not have been paid out.

Caldeira, presenting his report for 2007, said there were serious deficencies in the EU's agricultural and rural development spending policies.

About 51 billion euros of the EU's total 2007 budget of 114 billion euros goes into the farming sector. (dpa)