Europe Auditors flag up EU budget errors for 16th consecutive year For the 16th year running, the EU's auditing body, the European Court of Auditors (ECA), has pointed to errors in how the EU budget is spent. However, as last year, the ECA has said that the annual accounts for 2009 represent an accurate picture of how the EU spent its funds. The auditors found that 5 out of 7 of the EU's spending areas were affected by an error rate above 2%, which the Commission defines as the threshold for a "clean bill of health". In the ECA's opinion, payments in the two biggest spending areas, agriculture and regional spending, as well as in 'Research, energy and transport', 'External Aid, development and enlargement' and 'Education and Citizenship' are all "materially affected by error". The Times reports that Greece was criticised for "systematic" cheating, after it was revealed that it had overpaid farmers by €866 million over several years. TheIrish Independent notes that Ireland was singled out for "significant controlled weaknesses" over how it calculates VAT revealing a "difference of opinion over how tax rules should be applied". Kronen Zeitung reports that the Court of Auditors found that in four out of ten cases, EU officials received double the amount of social benefits they were eligible for by accepting national benefits alongside full EU benefits. The Telegraph quotes Open Europe's Mats Persson saying, "Until member states and the European Commission resolve the inherent flaws in the EU's spending there should be no talk whatsoever of budget increases". Open Europe is also quoted in the Mail, the Parliament, and Accountancy Age. Times Mail Express Irish Independent Irish Independent 2 Telegraph EP Press Release FAZ European Voice Irish Times Kronen Zeitung ECA press release FT 214 Commission officials earn as much as the German Chancellor An article in FT Deutschland looks at waste in EU expenditure, noting in particular the high costs of the expanding EU Luxembourg hub. German MEP Inge Grässle, who sits on the European Parliament's Budget Committee, complains about transport costs incurred when transporting lawyers who are based in Luxembourg. The article names her a "lone fighter" against EU waste. The article criticises the fact that of the 23,000 Commission employees, almost a quarter earn more than €10,000 per month, with 214 officials earning between €15,000 - €18,000 - as much as the German Chancellor. Austrian MEP Martin Ehrenhauser is quoted criticising EU perks saying, " these privileges cost more than €1billion each year", and adds that "the bureaucrats are so powerful that none of the politicians dares to attack their privileges". Eurozone bond spreads reach record highs; Rehn fails to win support of Irish opposition parties for austerity budget Eurozone bond spreads reached record highs yesterday as economists and bond market investors questioned the ability of 'peripheral' European economies to stay in the euro without another rescue package, notes the FT. The article reports that the ECB bought more government bonds this week, mostly from Ireland. However, opposition from Germany's Bundesbank president, Axel Weber, limits the ECB's scope for action. A separate article in the FT notes that EU leaders must work fast to clarify the conditions of the proposed EU insolvency mechanism arguing to avoid borrowing costs going up for Greece in particular. Meanwhile, EU Economic and Financial Affairs Commissioner Olli Rehn was told by Irish opposition parties yesterday that they won't sign up to the Government's four-year austerity budget if they don't agree with it. The Irish Times reports that Irish PM Brian Cowen warned the country will run out of money next July if the budget is not passed by parliament. Reuters WSJ FT FT 2 Irish Independent FT 3 FT 4 Irish Independent: Hand Eurointelligence Irish Times Euractiv Irish Independent 3 Open Europe's Pieter Cleppe was interviewed on Dutch BNR Nieuwsradio commenting on transitional payments for EU officials leaving office. "The system whereby European Commissioners profit from a minimum wage of €180,000 during the three years after they have left office is out of touch with reality", he said. He congratulated former EU Commissioner Margot Wallstrom for refusing the money. ECJ rules against transparency of EU farm subsidies to protect privacy The European Court of Justice (ECJ) yesterday ruled that current EU transparency laws, making all recipients of CAP funds publically available, contravenes individuals' rights to privacy. Germany and Ireland immediately took down the websites listing all the beneficiaries, despite the court ruling only relating to individuals, not companies or associations, reports EUobserver. Greek magazine Proto reports that up to 20 professors from two Athens universities are alleged to have misused £172m of EU research and development funds to pay for personal "luxury" villas, holidays and cars. The Times reports that extra spending on doctors needed to fill gaps in hospital rotas went up by more than £200 million last year - from £548m in 2008-09 to £758m in 2009-10 - due to the EU Working Time Directive. Van Rompuy: "We have to fight the danger of a new euro-scepticism together" Speaking in Berlin yesterday, European Council President Herman Van Rompuy said, "We have together to fight the danger of a new euro-scepticism...This is no longer the monopoly of a few countries. In every member state, there are people who believe their country can survive alone in the globalised world...It is more than an illusion: it is a lie!" Handelsblatt reports that the Council President expressed his support for German Chancellor Angela Merkel's proposals on a permanent crisis mechanism for the eurozone. He went on to criticise the European Commission's proposals for EU taxes saying, "I am personally open to new ideas, but since most alternative sources of income would risk to hit member states unequally, this would weaken the fairness of the current system", reports EUobserver. Irish Times Euobserver Deutsche Welle Handelsblatt AFP ORF The FT reports that EU Internal Market Commissioner Michel Barnier has agreed to attend a hearing in the Commons to discuss his plans for financial regulation. The article notes that Barnier had originally rejected the invitation. On his Telegraph blog, Daniel Hannan MEP reports that Douglas Carswell MP has proposed an amendment to call UK officials working in the EU to discuss EU policies with the House of Commons. Het Financieele Dagblad reports that new EU rules on trading in derivatives will cost Dutch pension funds approximately €1.5 - €4.5 billion per year. In a letter to the European Commission and the European Parliament, pension funds APG, PGGM and Mn-Services, who collectively manage €750 billion, have called for modifications to the proposed regulations as they deem the impact "disproportionate". A new report by the Institute for European Environmental Policy has found that plans for increased European biofuels use may accelerate climate change and by 2020 could take "an area the size of Iceland" out of food production, reports the Guardian. Yesterday, the EU announced that Croatia and Montenegro are ready to progress in their EU membership bids, while it cautioned Turkey to move faster to settle its border disputes and to normalise relations with Cyprus.Open Europe
Wednesday, 10 November 2010
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