Court of Auditors (Hansard, 23 November 1994)

§ The Prime Minister

The United Kingdom welcomes the Court of Auditors' report for 1993; its findings and recommendations will assist in the fight against fraud and financial mismanagement and in favour of better value-for-money. The United Kingdom has been in the lead in pressing the Commission and the European Parliament to attack fraud and improve financial management. We secured important improvements in the treaty on European union, including giving the European Court of Auditors enhanced status as a full Institution of the European Union. The United Kingdom has also pushed for better value for money in Community expenditure.

Following on from the Edinburgh European Council conclusions, the 1993 structural funds regulations required, for the first time, prior appraisal of expenditure, effective monitoring and evaluation of results. In March of this year, the United Kingdom proposed a joint action to ensure that member states make legally binding commitments to take tougher action against criminal fraud. The United Kingdom also supports the principles of a proposal from the Commission for a complementary framework of financial penalty rules and wants to see these principles carried through effectively. Both proposals are currently under discussion.

The European Court of Auditors' report will be considered by the Council of the Ministers early next year. The United Kingdom will urge that its findings are followed up vigorously by the Commission and member states; that appropriate action is taken; and that the Commission reports back fully on the results.

As I said last week, following the Anglo-French summit at Chartres, we shall press for the Council of Ministers to act on the court's special reports on particular areas of the Community budget and we wish to see member states co-operate in taking tougher action against criminal fraud. We also wish to see the Commission step up its spot checks for fraud and fraudsters; the European parliament as a whole, rather than just its budgetary control committee, act on fraud; and we are in touch with the German presidency to see how we can use the Essen European Council to add further momentum to the fight against fraud.