EU Budget: error rate for EU funding increases for the third time in a row

The error rates in European structural funding increased for the third time in a row in 2012. At a rate of 4.8%, the European Court of Auditors has denied the statement of assurance in dealing with EU funds to the European Commission.

In 2011, the error rate was 3.9 % (2010: 3.7%, 2009: 3.3%). The main reason for the increase is in particular the negligent behaviour of EU Member States with EU structural and agricultural funds. The auditors particularly criticised illegal tendering procedures. For agricultural funds, more and frequently false indications of area sizes have been made. In addition, many farmers do not follow the environmental requirements necessary to receive EU funding.

According to the European Commission, 80% of the incorrect use is down to three Member States: Spain, Greece and Italy. For the past few years, the Commission has also found increasing error rates in the Czech Republic, Poland and Romania. As a consequence, the European Parliament Rapporteur for the budgetary discharge procedure, Markus Pieper MEP, is calling for a greater direct responsibility of the Commission in the use of EU funds. In Member States showing a problematic record, the Commission must take responsibility for the certification of the national audit bodies. There must eventually be effective financial sanctions for Member States continuously in violation of rules. Pieper has called repeatedly for "a financial correcting mechanism, including a freeze of EU funds" for States with high error rates. He said: "We have to prevent the same Member States which always have the same errors from bringing the whole funding policy of the Community into discredit. The European Commission must intervene directly here."