Strasbourg, 17/01/2001 (Agence Europe) - The Member States suffered more criticism than the European Commission, during the joint debate on the follow-up to a series of reports by the Court of Auditors which took place on Tuesday morning in plenary.
Thus, the member of the Partido Popular Jose Javier Pomes Ruiz speaking on behalf of the rapporteur on the deposit and guarantee systemS foreseen by the customs code (traditional resources), Salvador Garriga Polledo, stigmatised the lack of cooperation between the national customs authorities for the gathering of common trustworthy statistics, which would allow to assess the precisely volume of guarantees underway. Rapporteur on structural funds, the Italian Radical Gianfranco Dell'Alba revealed that the Member States do not always respect the principal of additionality that forms the basis of regional policy and considers European funds as donations. Bart Staes Belgian member of the Green group, rapporteur on the management of aid in Bosnia granted, on the contrary, a "good point for the Commission" which has started to take into account the criticisms sent to it by the Court of Auditors.
Following the debate, the Parliament adopted five reports, by rejecting the rare amendments proposed:
Guarrigua Polledo report (see EUROPE of 12 January, p.14): following his rapporteur, the Parliament notably called for more coherence in the protection of the Community's financial interests, on the one hand improving the Commission computer system to ensure a better follow-up to customs clearance operations, on the other hand establishing a single body of law putting an end to the present fragmentation of legislative provisions in this area.
Answering the rapporteur, the European Commissioner for the Budget, Michaele Schreyer, confirmed the importance of the guarantee and deposit system for Community transit, which "each year represents EUR 14 billion". She underlined that the Commission has already improved the legal foundations governing Community transit and recalled that in 2000 seven Member States joined the computerised transit system. The Commissioner also indicated that the proceedings concerning the customs procedures have already been opened against Germany and Austria and that others against Belgium and Denmark have been initiated. "In the future, it will be necessary to reinforce the checks and make the Member States financially responsible in cases of errors or losses. The Finance Ministers must adopt a decision on the issues," she underlined.
McCartin report: the Parliament here too followed in full the report by the Irish members of the EPP group, John Joseph McCartin, on aid to skimmed milk and butter, as well as on the impact of the CAP reform on the market for cereals and the fight against swine fever (see EUROPE of 10 January, p.13).
During the debate, the rapporteur underlined the inconsistencies of Common Agricultural Policy, by noting, for example, that Europe presently spends EUR 300 million in order to eliminate the surplus of skimmed milk and butter and that only 35% of the butter produced by European farmers is sold at market prices. Mrs Schreyer recognised that the reports by the Court of Auditors show that there exists a series of products, such as milk or cereals, for which the reform is urgent. The management of surplus production also poses problems in terms of financial management, she noted.
Staes report: the European member of the Volkunie, Bart Staes, who went on location to draft his report noted that the Commission had taken measures to answer the criticisms made by the Court of Auditors over the management of aid in Bosnia (see EUROPE of 11 January, p.14). The Commission has now boosted its delegation in Sarajevo with a "qualified and competent" personnel, he noted, adding that the Commission has managed to eliminate the core of the payment delays by answering the main criticisms of the Court.
Raising the case of the "Office of the High Representative" in Bosnia, 53% financed by the EU and were wastage had been noted, the EP "requires" that the Commission takes the appropriate measures to protect its financial interests when it contributes in a substantial manner to the budget of an organisation. The case of the Office of the High Representative has in fact revealed administrative failings that may also be seen in other international organisation, noted Commissioner Schreyer.
However the Commissioner has difficulty imposing its rules for administrative management on these international bodies, she added. Answering the parliamentarians, concerned by the allocation of an aid of EUR 2 million to the Open Broadcasting Network for material not normally subsidised, the Commissioner recalled the context of the 1996 elections that brought the Commission to hope that the independent media had better quality material. "Though the Commission recognises that the criticism is justified and we have drawn lessons from it", she assured.
Dell'Alba Report. With the adoption of the resolution proposed by the Italian Radical on four reports from the Court of Auditors devoted to the management of Structural Funds (see EUROPE of 11 January, p.15 for details), the Parliament essentially regretted the unwieldy administrative procedures, the lack of precise aims and the lack of controls. Gianfranco Dell'Alba was highly critical of the flippancy on the part of Member States in managing regional funds, when they "should use these funds with even greater discernment than national funds". The Commission should more carefully verify the eligibility of projects for eliminating those which "do not hold water", the Italian MEP also remarked.
European Central Bank must set an example
Without being a "fervent supporter of single currency", the rapporteur on the management of the European Monetary Institute then the ECB, British Conservative Christopher Heaton-Harris confessed he had resisted the temptation to use his report for criticising the ECB (see EUROPE of 12 January, p.13). He did, however, place emphasis on two shortcomings: the refusal of the ECB to submit itself to the control of OLAF when it is committed to cooperation with the European Anti-Fraud Office, and the premiums granted to certain members of its personnel. Nonetheless, the rapporteur granted until next year the benefit of the doubt to the Central Bank, indicating that the ECB representatives have undertaken with him to remedy the problems raised by the Court of Auditors.
Most MEPs who took the floor said they hoped that OLAF would be able to inquire within the Central Bank, stressing that the Bank must be absolutely transparent, including for the good health of the euro. Opinions are more divided, however, concerning the "exceptional premiums". Thus, Christos Folias (elected member of Nea Demokratia, Greece) noted that the exceptional premiums are a current practice in banking circles, while Giovanni Pittella (Democratici di sinistra, Italy) felt the ECB should set an example for transparency and wage moderation, in conformity with the European targets on inflation. It is not a question of manoeuvring in order to weaken the euro, but quite the contrary, said the MEP. He remarked that the Bank cannot be like those bad subjects who proclaim "do what I say, not what I do". The ECB "is a body for which public trust is indispensable. It must therefore preach rigour and not the contrary", he concluded.