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Europe Daily Bulletin No. 8905
Contents Publication in full By article 20 / 26
GENERAL NEWS / (eu) eu/budget 2003

Council approves Commission discharge

Brussels, 09/03/2005 (Agence Europe) - On Tuesday finance ministers of the EU decided to recommend the European Parliament giving the European Commission a discharge for the execution of the EU budget for 2003 and for the Communities agencies.

In an annex to its decision, the Council regrets, however, that the Court of Auditors annual report (EUROPE 17 November 2004 p 18) is not always able to give a Statement of Assurance (SOA) for most of the spending (agricultural aid, structural measures, internal policies, external action and pre-accession aid). The Council take note of the Commission's intention to elaborate as soon as possible a road map for obtaining a SOA. Farming: ministers share the concerns of the Court and indicated that no purely financial decision was taken for 43% of spending declared for 2003. They also call on the Commission to redouble its efforts to reduce tax evasion in the area of export subsidies and check that inspections are carried out correctly in the olive oil sector. Structural action: the Council invites the Commission to “fully assume its responsibility in executing the budget” and to take all measures necessary for “correcting the insufficiencies” identified by the Court. Internal policies: the Council, like the Court, is concerned at the weaknesses in the management and inspection systems for the European Refugee Fund.

The Council is pleased with the strengthening of the internal inspection system at the Commission for the 2003 exercise but regrets that declarations by the Directors General has not yet been used as a basis for the Statement of Assurance by the Court.

The Council recognises that this is due to a certain number of shortcomings which the Commission has worked to rectify. The Council welcomes the transition to the new accounting system and notes that the Commission has taken measures to contain the serious risks of perturbation to its own financial operations.

The Council calls on the Commission to immediately step up its efforts to apply monitoring and inspection systems efficiently, in close collaboration with Member States. The Council has again expressed its “deep concern” at the commitments outstanding for differentiated expenditure. At the end of 2003 commitments outstanding represented 2.5 years at the current rate of spending, warned the Council, which said that this trend could undermine the credibility of healthy Community budget management.

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