EU ACCOUNTS: MEMBER STATES MUST ACCEPT SOME RESPONSIBILITY - WATSON

12.51.35pm BST (GMT +0100) Wed 18th Apr 2007

The National Audit Office has produced a report into the Financial Management of the European Union. The report notes that the European Court of Auditors (ECA) last year once again failed to provide a positive Statement of Assurance on the state of the EU's finances, but also that this does not mean EU expenditure if subject to an excessive level of fraud.

Graham Watson, Leader of the Liberal and Democrat group in the European Parliament, is calling on individual Member States to conduct their own accounting reports into their spending of EU finances, particularly as Member States spend 80% of the EU budget - mainly through agricultural and structural funds.

Commenting, Graham Watson said:

"Although the NAO has recognised the fact that the European Court of Auditors has failed to sign off on the annual EU expenditure, it is clear that Sir John Bourn has noted progress in the state of the EU's finances. For example, the report states quite clearly that lack of a positive declaration is by no means evidence of fraud,.

Liberals have long called for Member States to take more responsibility in accounting for their spending of EU monies. Sir John's report quite correctly notes the progress of the UK in doing this and it is therefore to be welcomed.

"The Commission has set itself the goal of achieving a positive assessment from the Court of Auditors but this will only become possible once Member States step up and accept their own share of responsibility." concluded Watson. "We are also calling on the Court of Auditors to provide us with a breakdown of financial management by department so we can pin down outstanding difficulties without giving the impression that the whole budget is tainted."

Notes

In 2005, the total EU budget amounted to £72.3 billion of which the net UK contribution was £2.5 billion - i.e. 3.5%