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EU budget watchdog says funds were wasted last year EU budget watchdog says funds were wasted last year
(about 4 hours later)
An EU watchdog has failed to give the union's budget a clean bill of health, finding that almost 4% of allocated funds was wasted last year. An EU watchdog has failed to give the union's budget a clean bill of health, finding that almost 4% of allocated funds were wasted last year.
A fortnight before what is shaping up to be one of the most bad-tempered summits in years, with David Cameron being denounced in Brussels for taking an "extreme" position on budget negotiations, the European court of auditors criticised the administration of budget for the 18th year in a row. A fortnight before what is shaping up to be one of the most bad-tempered summits in years, with David Cameron being denounced in Brussels for taking an "extreme" position on budget negotiations, the European court of auditors criticised the administration of the budget for the 18th year in a row.
Vitor Caldeira, president of the court of auditors, which examines the EU books every year, said the message was "consistent with previous years, but this year it matters more than ever". He added: "With Europe's public finances under severe pressure, there remains scope to spend EU money more efficiently and in a better targeted manner." Vítor Caldeira, president of the court of auditors, which examines the EU books every year, said the message was "consistent with previous years, but this year it matters more than ever". He added: "With Europe's public finances under severe pressure, there remains scope to spend EU money more efficiently and in a better-targeted manner."
The court found "an estimated error rate" of 3.9% was found in payments from the €130bn budget to the 27 member states in 2011, slightly up from the waste identified for the previous year.The court found "an estimated error rate" of 3.9% was found in payments from the €130bn budget to the 27 member states in 2011, slightly up from the waste identified for the previous year.
The overall criticism of the administration of the budget was in line with the verdict delivered annually for many years, in what has become a Brussels ritual.The overall criticism of the administration of the budget was in line with the verdict delivered annually for many years, in what has become a Brussels ritual.
But with positions hardening over a mega-bout of haggling over the new trillion-euro budget for the seven-year period from 2014-2020, the timing of Tuesday's verdict was sensitive.But with positions hardening over a mega-bout of haggling over the new trillion-euro budget for the seven-year period from 2014-2020, the timing of Tuesday's verdict was sensitive.
The British government embraced the auditors' verdict in an attempt to bolster its hardline stance ahead of the summit, arguing that the report was highly damaging to the "credibility" of how the EU budget was run.The British government embraced the auditors' verdict in an attempt to bolster its hardline stance ahead of the summit, arguing that the report was highly damaging to the "credibility" of how the EU budget was run.
"For the 18th consecutive year, the European court of auditors has not been able to give a positive statement of assurance, which seriously undermines the credibility of the EU's financial management," said a government spokesman. "At a time when public spending is tight across Europe, we all need to have confidence that EU spending is being implemented as effectively as possible … the government will continue to press for urgent improvements to the way EU spending is managed." "For the 18th consecutive year, the European court of auditors has not been able to give a positive statement of assurance, which seriously undermines the credibility of the EU's financial management," said a government spokesman.
The German chancellor, Angela Merkel, reportedly angered by Cameron's stance on the seven-year budget, is to go to Downing Street on Wednesday evening to try to talk the prime minister into showing some flexibility at the summit in a fortnight's time. "At a time when public spending is tight across Europe, we all need to have confidence that EU spending is being implemented as effectively as possible … the government will continue to press for urgent improvements to the way EU spending is managed."
The German chancellor, Angela Merkel, reportedly angered by Cameron's stance on the seven-year budget, is to go to Downing Street on Wednesday evening to try to talk the prime minister into showing some flexibility at the summit in a fortnight.
Cameron's position – insisting on retaining the full UK rebate while demanding a freeze on the seven-year kitty at last year's levels and threatening to wield a veto to get his way – ran into even greater problems last week when Labour joined Tory rebels in the House of Commons and defeated the government by calling for even deeper cuts in EU spending.Cameron's position – insisting on retaining the full UK rebate while demanding a freeze on the seven-year kitty at last year's levels and threatening to wield a veto to get his way – ran into even greater problems last week when Labour joined Tory rebels in the House of Commons and defeated the government by calling for even deeper cuts in EU spending.
Diplomats in Brussels involved in the manoeuvring ahead of the summit expect the scheduled two days to run into at least three days and nights, with the odds against securing an agreement, meaning that the leaders will have to return to the fraught topic early next year. Diplomats in Brussels involved in the manoeuvring before the summit expect the scheduled two days to run into at least three days and nights, with the odds against securing an agreement, meaning that the leaders will have to return to the fraught topic early next year.
Apart from Britain, Denmark and France have also been talking of vetoing a deal unless their priorities are met, while Hungary, which would be one of the big losers under plans by the bigger richer countries to chop more than €100bn off the total proposed by the European commission, could also balk. Apart from Britain, Denmark and France have also been talking of vetoing a deal unless their priorities are met, while Hungary, which would be one of the big losers under plans by the bigger, richer countries to chop more than €100bn off the total proposed by the European commission, could also balk.
While the commission administers the budget, most payments are made to member states which then oversee the use of the money. Caldeira reserved his main criticism not for Brussels, but for the national governments.While the commission administers the budget, most payments are made to member states which then oversee the use of the money. Caldeira reserved his main criticism not for Brussels, but for the national governments.
"We found the member states are not doing their job as fully as they should. There needs to be a greater degree of commitment on the part of national authorities to the management and control of EU money, because national authorities operate the first – and most important – line of defence in protecting the financial interests of EU citizens," he said."We found the member states are not doing their job as fully as they should. There needs to be a greater degree of commitment on the part of national authorities to the management and control of EU money, because national authorities operate the first – and most important – line of defence in protecting the financial interests of EU citizens," he said.