Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

EU accounts qualified - again

by
8th Nov 2012
Save content
Have you found this content useful? Use the button above to save it to your profile.

The European Court of Auditors (ECA) has found substantial errors in the European Union's 2011 accounts, resulting in a qualification.

In its annual report on the implementation of the EU budget, released this week, the ECA said £89bn in spending was affected by "material error" at an estimated error rate of almost 4%, continuing a humuliating tradition for the union's finances.

This figure has remained relatively unchanged since 2010, when it was 3.7%.

The EU spent around £103bn in 2011, 80% of which went on agricultural and cohesion policies.

The ECA said it saw "too many cases of EU money not hitting the target or being used sub-optimally".

The report found the biggest issues were in outlays in fisheries, rural development and health policy, while the majority of errors arose from the "misapplication or misunderstanding" of EU rules. 

The sequence of qualifications goes back for nearly two decades, with one exception in 2008, when the EU succeeded in getting its accounts past the ECA for the first time in fourteen years

Even then, however, the accounts were riddled with "unacceptable errors", the auditors found.

The Euoprean Commission's control systems continue to be only partially effective in ensuring the regularity of payments and are failing to prevent or detect errors. 

The auditors' report, which runs to 240 pages, comes at a time when legislative proposals for the better management of EU money are being discussed.

This findings may be the ammunition needed for those who want to oppose an increase in the EU's next budget for 2014-20. 

ECA President Vítor Caldeira admitted at a press conference that EU financial management is not yet up to standard. 

He called for a greater degree of commitment from national authorities to the management and control of EU money.

"With Europe’s public finances under severe pressure, there remains scope to spend EU money more efficiently and in a better targeted manner," he said. 

Replies (1)

Please login or register to join the discussion.

avatar
By The Limey
09th Nov 2012 13:57

4% actually sounds bloody good to me. I would be amazed if the UK's error rate was that low.

Thanks (0)