HL Deb 30 July 2002 vol 638 cc162-3WA
Lord Morris of Manchester

asked Her Majesty's Government:

What improvements there have been since the findings of the European Court of Auditors that 5 per cent of the total European Union budget could not be properly accounted for each year and that a further 5 per cent is not spent on the purposes for which the funds were appropriated. [HL5571]

Lord McIntosh of Haringey

The Court of Auditors, through its annual report and special reports, plays a vital part in improving financial management in the EU. Details of recent measures and actions taken to improve financial management in the EU, including commentary on the 5 per cent error rate, are set out in the White Paper on European Community Finances published in July 2002:Statement on the 2002 EC Budget and Measures to Counter Fraud and Financial Mismanagement, Cm 5547. Actions by both the Commission's anti-fraud body, OLAF, and by member states to reduce irregularities are detailed in the Commission's report: Protecting the Communities' financial interests and the fight against fraud (2001).

The White Paper also sets out details on the introduction of activity based budgeting. This new budgeting system is designed to ensure that the allocation of EU funds is better linked to the pre-set political objectives and that the spending is properly monitored to ensure that the objectives are met. This should help to reduce waste as well as ensuring the moneys are spent for those activities for which they were appropriated.