Policies

Committee on Budgetary Control

Protecting European taxpayers' money

The Community budget is financed by taxpayers. The purpose of European policies is to implement projects of public interest. Using Community financing in the wrong way is consequently harmful to the interests of European taxpayers. The European Institutions have an obligation to guarantee the best use of their money and specifically, to fight as effectively as possible against fraud and corruption.

The objective of the EPP-ED members on the Budgetary Control Committee is to assure the citizens of the European Union that EU funds are raised and spent effectively, and that they are correctly allocated to the tasks which the Union has been asked to perform. To accomplish this aim, the EPP-ED Group strives to develop a transparent and effective EU system of public accounts which ensure sound implementation of the budget, better governance and clear accountability. We intend to increase public understanding of how EU funds are actually used, while at the same time improving the possibilities for evaluating the effectiveness of EU spending.

We want EU expenditure to be well spent and for the purposes intended, for well planned projects with a true European added-value and a better target achievement overall. We remain vigilant in ensuring that the necessary action is taken to fulfil this ambition.

The EPP-ED Group in the European Parliament gives a very high priority to budgetary control and combating fraud. European citizens justifiably demand that the European Union demonstrates that it is providing value for money by delivering programmes and policies as effectively and as efficiently as possible, including the careful management of all expenditure and a vigorous fight against fraud.

Using the discharge procedure to full effect

The Committee on Budgetary Control is one of the few committees where most of the work is focused on a cyclical programme. The main tool in the hands of our MEPs is the discharge procedure: the annual review of past expenditure, based on an assessment prepared by the European Court of Auditors, culminating in a report adopted by the Parliament. This report makes specific demands for future corrective action to be taken where necessary and the Commission and the other institutions are required to react to the criticisms made. EPP-ED members of the Budgetary Control Committee seek to ensure that the highest standards of management are sought and attained as a result of its reports. The key priority for the Committee, through the discharge procedure and the Annual Report on the Protection of the Union's Financial Interests and the Fight against Fraud, is to identify systemic problems and propose solutions in order to achieve a Positive Statement of Assurance (DAS) by the European Court of Auditors, regarding the legality and regularity of EU expenditure.

The discharge of the Parliament's budget is always a politically sensitive issue; next year's rapporteur will be from our Group. The last Commission discharge – for the budget 2007 – is given in 2009 and only a few weeks before the European Parliament election: we have the rapporteur for the Commission and the Agencies discharge.

Beyond the discharge procedure and the Annual Report on the Protection of the Union's Financial Interests and the Fight against Fraud, the EPP-ED seeks further progress in several key areas. The Group has already managed to secure the rapporteurships for the key reports between now and the end of the parliamentary term in 2009.

A new Regulation on OLAF

The EPP-ED pushes for improvements to protect the Community's financial interests by considering administrative, technical and legal possibilities with regard to detecting, preventing and prosecuting the misappropriation of Community funds. The EPP-ED Group is therefore a strong supporter of OLAF, the body responsible for internal investigations in the institutions concerning fraud or corruption. The reforms must enhance its effectiveness to make investigations more rapid - which has been a concern for the Group in the past. The need to protect the rights of those implicated in its investigations is of crucial importance. Strengthening the independence of OLAF in the Commission is also a major aim.

The ongoing implementation of the Action Plan towards an Integrated Internal Control Framework

Expenditure needs to be more effectively controlled within Member States by means of national/federated declarations of assurance. Increased attention must be given to consideration of the output of the evaluation and audit departments of the European Commission. We will prioritise certain policy areas where concerns are most acute. The EPP-ED will closely monitor the ongoing Progress Reports. Progress has been far too slow in some key areas, particularly regarding the role of member states in fulfilling the Inter-institutional Agreement (IIA), concerning their responsibility for control systems, and the legality & regularity of expenditure of funds put at their disposal, notwithstanding the overall responsibility of the European Commission.

The Transparency Initiative

The main idea of the Transparency Initiative is to increase openness and accessibility of the EU institutions, to raise awareness about the use of the EU budget and to make the Union's institutions more accountable to the public. It is essential that all institutions and agencies in their expenditure of EU funds have in place systems of openness and transparency to enable proper checks to be undertaken. A key element of this is access to documents, in which there has been important progress recently, most notably concerning disclosure of all beneficiaries receiving funds from the EU. The Commission however seems split internally about how far to go in any future reform. Much of the initiative concerns lobbying and a part of this initiative is also aimed at the European Parliament and its members. We will continue to push for improved systems to ensure that the function of the discharge authority can be fully exercised. We will monitor the implementation of the new Financial Regulation to ensure it is providing an adequate framework for our work. Through our actions we can show European citizens that we are making policies in an open and inclusive way, that their institutions are better managed and that they can see where their taxes are going.

Protection of the Financial Interests of the European Union

More must be done to protect the financial interests of the Union, particularly in the way funds from the European Union budget are spent in member states. Misuse of these funds remains at an unacceptable level and action must be taken to identify cases of abuse and to secure repayment of misspent money.

We attach a high priority to the establishment of the European Public Prosecutor as a means of protecting the financial interests of the Union. It is also vital that the European Union institutions give greater attention to instances of fraud in the collection of its own resources.

In connection with financial control measures, the EPP-ED Group has sought the adoption by the Council of measures placing greater emphasis on risk analysis, with information activities focused on risk sectors. Emphasis has also been placed on fraud prevention based on greater co-operation between Member States' customs authorities, better information and training of competent officers.

Concerning the scrutiny function, we continue to build better relationships with national parliamentary committees, with the European Court of Auditors and initiate more hearings examining areas of concern.

The Committee also draws a balance on the reform of the Commission 1999 with lessons for the future: "Good Governance" with several hearings starting in the autumn of this year.

We also have to prepare the Mid-Term-Review 2008/2009 of the implementation of all EU-programmes, specially the structural funds. Simplification of the complex and complicated European rules and regulations are a constant concern and an important point of activity for our group. In addition to the above, every year the European Court of Auditors presents more than a dozen Special Reports, all of which have to be followed closely by our group.

Ensure the reform programme is fully implemented and zero tolerance for all fraud and financial mismanagement becomes a reality

The process of reform is still far from complete but enormous strides have to date been taken; the EPP-ED is fully focused on remaining constantly vigilant to ensure this programme is implemented in full. Our ultimate aim is to reconnect Europe with its citizens and close both the physical and mental gap that makes it difficult for people to understand what Europe does and why it matters.

Within CONT there is a strong consensus about most key issues but the EPP-ED has led the way since it championed the original creation of the European Court of Auditors and the Parliament's Committee on Budgetary Control. By securing the key reports listed above, this leadership can continue.

Our work in CONT is closely watched by the Commission and by the press: we are trying to modernize our work in the Committee to get improved results. In undertaking our work, we aim to contribute to improving the financial management of European Union funds at all levels, so as to ensure maximum value for money for the citizens of the Union. We will continue our constructive moderate line in trying to fulfil the expectations of European citizens and the taxpayers whilst demonstrating our comprehension of the difficulties due to the diversity and the heterogeneity of the EU.