BUDGET: PARLIAMENT ADOPTS REPORTS GRANTING DISCHARGE FOR 2002.

Commission.

The report by Juan Jose Bayona de Perogordo (EPP-ED, Spain) risked being the most controversial since it concerned discharge to the European Commission for the execution of the EU Budget in 2002. It was ultimately adopted by 442 votes to 69 with 4 abstentions. In the accompanying Resolution, MEPs nevertheless raised a number of financial control issues where improvement is needed, focusing in particular on problems occurring with funds administered by the Member States. The Resolution is highly critical of the "shared management" of EU funds, where the Commission decides on funding but delegates the actual payment and control to the Member States. This is the case in particular with farm spending and the Structural Funds. MEPs believe the Member States should therefore bring their supervisory control systems up to par and the Commission should ensure that these systems are working properly. They argue that Member States and the Commission should set up a single audit strategy for shared management programmes. The Commission should also be tougher in launching infringement procedures and following them through. MEPs urged that in the new Commission one Member should have particular responsibility for infringement procedures.

The administrative reforms announced by the Commission were deemed by MEPs to have shown little tangible progress. Although they did approve the efforts to establish a "whistleblower's doctrine", MEPs pointed out that this would only be truly effective if staff are aware of it. Moreover, the implementation of risk assessment as part of internal control was seen as unsatisfactory. MEPs deplored the lack of accountants in the Commission and the general high turnover of administrative staff at the Commission.

In a statement, Budget Commissioner Michaele Schreyer nevertheless welcomed Parliament's discharge for the 2002 EU Budget as an acknowledgement of Commission reforms in the area of financial management. "During the mandate of the Prodi Commission, the Parliament has been able every year to give discharge for the Budget implementation. It proves that our reform actions have been convincing and I want to thank the European Parliament for this support", said Mrs Schreyer. The Commission claims the "regulatory" aspects of its reform are in place and have started showing an impact. The reform involves internal control standards, activity-based management for the allocation of resources and for work planning, and...