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Tuesday, 06 November 2012

Member States and Commission must manage spending better

In 2011 the EU spent € 129.4 billion, with around 80% on agriculture and cohesion policies, where the task of implementing the EU budget is shared by the Commission and EU Member States. The European Court of Auditors (ECA)  found too many cases of EU money not hitting the target or being used sub-optimally. Member States and Commission control systems examined were only partially effective in ensuring the regularity of payments. Control systems are not realising their full potential to prevent or detect and correct errors.
The error rate estimated by the ECA for spending in rural development, environment, fisheries and health policy group (the most error prone spending area) was 7.7 %. The estimated error rate for policy group regional policy, energy and transport remained high at 6.0 %.
For many years, the ECA has called for simpler spending schemes with clearer objectives, results that are easier to measure and more cost-effective control arrangements. The ECA’s recommendations come at a time when legislative proposals for an improved management of EU money are being discussed.

Source: European Commission