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EU accounts failed for 13th year EU accounts failed for 13th year
(18 minutes later)
The auditors for the EU have refused to sign off the bloc's financial accounts - for the 13th year in a row.The auditors for the EU have refused to sign off the bloc's financial accounts - for the 13th year in a row.
A report by the European Court of Auditors (ECA) criticises nearly every major area of the EU's expenditure.A report by the European Court of Auditors (ECA) criticises nearly every major area of the EU's expenditure.
However, it says there has been a big reduction in the overall level of error in Common Agricultural Policy payments. The auditors say there are weaknesses across the board and complain of neglect and presumed attempts at fraud.
The European Commission has blamed member states for audit failings, but the report identifies weaknesses across the board. The European Commission has blamed member states for audit failings, and says it has suspended £1.2bn in payments to English regions.
'Eighty per cent' failure Errors persist
In all, nearly 80% of the EU's 106bn euro annual budget (£75bn) fails the auditors' test. Errors of legality and regularity still persist in the majority of the EU's 106bn euro annual budget (£75bn), according to the Court of Auditors. Its President, Hubert Weber, calls on the commission to lead by example in making improvements.
Errors of legality and regularity still persist, the Court of Auditors says, and its President, Hubert Weber, calls on the commission to lead by example in making improvements.
HEAD TO HEAD The auditors have concluded every year since 1994 that the accounts are reliable Terry Wynn, ex-head of European Parliament budget committee There has been a lot of window-dressing but essentially the auditors' criticism has not changed Marta Andreasen, former Commission chief accountant Are the EU books a scandal? Euroblog: Extra Virgin con?HEAD TO HEAD The auditors have concluded every year since 1994 that the accounts are reliable Terry Wynn, ex-head of European Parliament budget committee There has been a lot of window-dressing but essentially the auditors' criticism has not changed Marta Andreasen, former Commission chief accountant Are the EU books a scandal? Euroblog: Extra Virgin con?
The report explains that most of the misspending is caused by complex technical requirements rather than outright fraud. The report explains that much of the misspending is caused by poor knowledge of complex rules but presumes that fraud also exists.
On the plus side, the auditors say that there has been a marked reduction in the estimated overall level of error in the Common Agricultural Policy (CAP), responsible for some 40% of all EU expenditure.On the plus side, the auditors say that there has been a marked reduction in the estimated overall level of error in the Common Agricultural Policy (CAP), responsible for some 40% of all EU expenditure.
The commission is responsible for overseeing the handling of the budget and the auditors praise the "considerable efforts" made to address the weaknesses in its management of risk to EU funding.The commission is responsible for overseeing the handling of the budget and the auditors praise the "considerable efforts" made to address the weaknesses in its management of risk to EU funding.
But the second biggest slice of the budget - structural policies (32.4bn euros in 2006) - is said to have seen little improvement. The Court singles out errors in claims for ineligible expenditure and complains of poor controls among member states and only moderately effective supervision from the commission. Payments to UK
In response to the report, the Vice-President of the European Commission, Siim Kallas, says he's "glad to see the Court now gives its green light to over 40% of total payments". He points out that around a third of the budget was approved last year and only 6% three years ago. But the second biggest slice of the budget - regional development funding (32.4bn euros in 2006) - is said to have seen little improvement. The Court singles out errors in claims and complains of poor controls among member states.
READ THE REPORT European Court of Auditors 2006 annual report [2.7MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here
The commission says it suspended 1.7bn euros (£1.2bn) in structural payments to the UK in April 2007 although that figure has now fallen to 326m euros (£229m).
In response to the report, the Vice-President of the European Commission, Siim Kallas, says he's "glad to see the Court now gives its green light to over 40% of total payments".
He points out that around a third of the budget was approved last year and only 6% three years ago.