18 February 2014

Main results of the ECOFIN Council: EU Budget / Portugal EAP

EU BUDGET

Discharge for 2012

The Council adopted a recommendation to the European Parliament on the discharge to be given to the Commission for implementation of the EU’s general budget for 2012. The recommendation was prepared on the basis of the Court of Auditors' annual report.

The Council reaffirmed the importance it attaches to the sound financial management of EU funds and its determination in achieving positive results. It expressed concern that the EU budget continues to be affected by an error rate above the materiality threshold of 2%. However, it also noted that the error rate in 2012 was lower than in the years prior to 2009.

As regards the funds for which management is shared by the Commission and the Member States, the Council noted that, according to the Court of Auditors' findings, for a significant part of transactions affected by error, national authorities had enough information to detect and correct the errors concerned. It invited the Commission to provide guidance to member states in order to strengthen the efficiency of their administrative and control structures. As far as the funds directly managed by the Commission are concerned, it acknowledged that the increase in the error rate was mainly due to the harmonisation of the Court's sampling methodology.

The Council called on the Commission and the member states to fully assume their responsibilities in implementing the budget, so as to reassure Europe's citizens and taxpayers that EU funds are used in a responsible and accountable manner. In its view, the EU's new multiannual financial framework and the new financial regulation provide an opportunity to achieve major progress towards simplification and thereby lower the risk of error.

Some delegations emphasised the importance of member states taking full responsibility for putting into place effective and efficient controls for the management of EU funds at a national level. Pursuant to article 319 of the Treaty on the Functioning of the European Union, the Council's recommendation serves as the basis for the European Parliament's decision on a discharge to the Commission.

The Council also adopted recommendations on the discharge to be given to the directors of 31 EU agencies, six EU executive agencies and seven joint undertakings for implementation of their 2012 budgets. In accordance with the EU's budgetary discharge procedure, the recommendations will now be submitted to the European Parliament. The President of the Council is due present them to the European Parliament's Committee on Budgetary Control on 20 February.

Commissioner Šemeta welcomed today's decision, saying: "Our citizens want to know that their money is being properly managed and well spent. That is one of the Commission's top priorities. For this new budgetary period, we have tightened the rules and strengthened the tools to ensure that the EU budget delivers quality and value to our taxpayers. I call on Member States to work with the same commitment, and assume their responsibility in protecting and defending EU funds."

The Commissioner pointed out that important simplifications, tougher correction mechanisms and incentives for good performance in the new programming period (2014-2020) will help to further decrease errors in EU spending in the years ahead.

However, he once again underlined the need for Member States to step up to the mark when it comes to the proper management of EU funds. Member States are first in line of responsibility for over 80 per cent of EU spending, and yet the Court of Auditors continues to criticize the poor level of oversight at national level. Commissioner Šemeta urged governments to sign voluntary national declarations which would be a clear sign of their political commitment to pro-actively improving the management of EU funds and tackling weaknesses in their systems at national level.

Commissioner Šemeta welcomes Council's recommendation to grant discharge on 2012 budget

Guidelines for 2015

The Council adopted conclusions setting its priorities for the EU's general budget for 2015. The conclusions can be found in document 5852/14. They will guide the presidency in negotiations with the European Parliament on the 2015 budget.

The 2015 budget will be the second in the EU's 2014-20 financial programming period. The conclusions emphasise the need to maintain budgetary discipline at all levels, given that despite an improvement of the economic outlook many member states continue to face considerable budget constraints. They call for a balance to be struck between fiscal consolidation and investments to boost growth, to be achieved through the prioritisation of objectives and the allocation of resources to measures that contribute the most to those aims.

From the Council's point of view, commitments and payments should be kept under strict control in next year's EU budget, taking into account real needs. At the same time, the 2015 budget should provide the necessary resources to respect commitments already made and to implement the EU's policy priorities for 2015. The Commission is called upon to make every effort to implement the budget within the allocations agreed in the annual budget and to keep amending budgets to the strict minimum. The conclusions also reflect the Council's concerns about the volume of outstanding commitments ("RAL") which amounted to €221.6 billion at the end of 2013.

PORTUGAL - ECONOMIC ADJUSTMENT PROGRAMME

The Council adopted a decision modifying the conditions underpinning financial assistance to Portugal under the European Financial Stabilisation Mechanism, with a view to disbursement of the next instalment (5894/14 + 5888/14 + 5928/14 + 5889/14).

The decision modifies decision 2011/344/EU as regards the economic policy conditions, taking into account a revised economic outlook, so as to ensure a smooth implementation of Portugal's economic adjustment programme.

This follows a tenth review by the Commission and the IMF, in liaison with the European Central Bank, of progress by Portugal in implementation of the programme.

Main results

© European Council