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25 November 2014

ECA: A landscape review of the risks to the financial management of the EU budget


All actors dealing with the EU budget should focus on obtaining results and EU added value, while ensuring that EU money is properly accounted for and spent as intended.

In its landscape review of risks to the financial management of the EU budget, published November 25, the European Court of Auditors (ECA) identifies key issues for good financial management of the EU's finances. 

“The governments and taxpayers of the Member States want to see better value being achieved for the funds they contribute to the EU budget” stated Dr Igors Ludboržs, the ECA Member responsible for the Review. “They want to see that EU money is spent properly and is well managed, that it is used for the purposes approved by the European Parliament and Council, and that it results in the desired outcomes.”

EU auditors found that complex eligibility rules and other conditions can lead to poor targeting of EU funds and sub‑optimal use of the EU budget. In some budget areas there are too many layers of rules, which may lead to differing interpretations and thus inconsistent application of rules and increased risk of error. Many of the errors found by the auditors relate to the poor application of procurement rules and procedures – either deliberately or because the rules are not well understood.

Because of the emphasis on spending the EU budget, say the auditors, those managing the activities and projects often focus on compliance with the conditions for getting and using the money, regardless of the results achieved. The EU budget should offer clear and visible benefits for the EU and its citizens, which could not be achieved by spending only at national, regional or local level. However, in some cases the EU budget may do no more than simply increase total funds available, without adding a particular EU aspect. EU funds are sometimes used for activities that would have been carried out by the Member States and other beneficiaries anyway (‘deadweight’) or the funds may be insufficient to achieve the intended outcomes.

Full article

Full press release

Full Landscape Review

 



© European Court of Auditors


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