European Parliament demands Members States clarify EU spending

3.27.22pm GMT Thu 2nd Feb 2006

The European Parliament today called on Member States to publish annual declarations on their use of EU funds. The European Court of Auditors has not approved the EU´s discharge of the budget for 11 years in a row, indicating a lack of sound financial management in the EU. A report on the discharge of the 2004 EU budget underlined that new instruments are needed in order to enhance the Commission's insight into Member States' financial management and control systems.

London Liberal Democrat MEP Baroness Sarah Ludford said:

"Each Member State should provide an annual statement at the beginning of the year declaring that control systems are in place, and functioning. Likewise, at the end of the year they should issue a statement saying that the funds have been spent in a legal and regular fashion. The time has come to base the relationship between the Commission and Member States' administrative authorities on principles of good public administration such as transparency and accountability."

"To ensure Member States meet their obligations, the Council should name those Member States opposed to the introduction of national management declarations and explain why they are rejecting it".

Note:

Under the EU treaty Member States have an obligation to be as careful in managing EU budget as their own (article 280).

European Liberal Democrat MEPs submitted the following oral questions to the Council of Ministers for debate in plenary session of Parliament.

- How do Member States think they can improve the public opinion about the state of European Affairs when each year the European Court of Auditors gives a negative opinion on how national governments manage European Funds?

- Does the Council believe that the European Parliament will approve the new Financial Framework for 2007-2013 when no additional guarantees are agreed on the management of EU funds?

- Will the Council name the Member States that oppose the introduction of national management declarations?