EU BUDGET: MEP CALLS FOR COUNCIL TO TACKLE LACK OF SPENDING CONTROLS.

In his draft report, discussed by the EP's budgetary control committee on February 1, Wynn points out that in rejecting the EU's accounts for 2003, the Court of Auditors identified the main problems on the "legality and regularity of the underlying transactions" as being "first and foremost" at member state level and "to a lesser degree" at Commission level. The report notes the Court's findings that outstanding payments at the end of 2003 represented "five years' worth of payments", commenting that "policy is made and funds are budgeted ... but not used." This "reduces the Union's legitimacy in the eyes of the public." Wynn calls on the Commission to urgently find ways to improve accountability at member states level and to deal with the fact that the Commission, while being responsible for all its expenditure, is also required to be responsible when EU funds are spent under joint management with member states in charge of spending the majority of the EU's budget.

The report says that member states do not always give the same attention to spending EU money as they do to EU funds while member states control standards are of "heterogeneous quality." At the same time, national audit institutions are not actively involved in ensuring that EU funds are spent properly.

It concludes that these problems cannot be resolved by centrally imposed controls and calls for new instruments to improve the Commission's oversight into the member states' management and control systems. As a solution, Wynn wants member states to provide annual assurances about the quality of spending control. His report therefore asks the Commission to present a report by October 1, 2005 on ways for member states' finance ministers to give...