Brussels, 11/07/2000 (Agence Europe) - After having again taken stock, on Monday, of the "persistent financial difficulties" of the Institute for Europe-Latin America Relations (Irela), the General Affairs Council entrusted an informal ad hoc group with the task of finding solutions for these problems. The question was raised at the request of Spain and Germany, which fear the body based in Madrid will be closed down. Irela carries out studies on EU/Latin America relations for the Commission and the Parliament in particular
The case had already been raised at the General Affairs Council in April. The European Executive had then undertaken to maintain aid to Irela in order to allow it to resolve its treasury problems by the autumn. For the rest, the European Commission suspended part of the EUR 1.9 million granted annually to allow the Institute to function, pending the results of an audit on its operations which must be presented in September to the European Parliament and to the Court of Auditors. The audits carried out so far have not shown fraud but recurrent irregularities. The European Anti-Fraud Office (OLAF) has just concluded an inquiry on Irela.
The European Commission also requested that, in conformity with Community rules, at least 20% of the Institute's financing should come from sources other than the EU budget. A compromise is being discussed with Spain to transform its material aid, in the form of the loan of a building in Madrid, into financial aid through an accounting trick.
Furthermore, Irela's executive committee recently decided not to renew the mandate of the Irela director who has held his post since the institute was founded in 1985. German national Wolf Grabendorff was replaced on 1 July by acting Director Andrew Crawley.