Brussels, 22/07/2005 (Agence Europe) - On Wednesday, the European Commission adopted its Annual Report 2004 on the protection of EU financial interests and the fight against fraud, which mainly shows a strong rise in irregularities reported in the field of structural actions (+34% in number of cases and +44% for amounts involved). In total, compared to the report published the previous year (Annual Report 2003, EUROPE 8776), EU Member States reported 9,463 cases of irregularity in EU budget spending (+15.7% compared to 2003) amounting to EUR 982 million (+6.5% compared to data in the 2003 report). There is a general increase in the number of irregularities reported by the Member States in 2004 but a general decline in their financial impact in all sectors apart from structural measures.
Traditional own resources: The number of cases (2,735 for 2004) is constantly rising, unlike the amount concerned (EUR 205,7 million) which has fallen since 2002. Cigarettes, televisions and sugar are among the products most vulnerable to customs fraud.
Agricultural spending: In 2004, the number of irregularities reported increased slightly compared to previous years (3,401 cases). On the other hand, their financial impact fell by nearly 52% (to reach only EUR 82 million). According to Commission estimates, 11% of the irregularities reported, amounting to a total of around EUR 6.8 million, are likely to be described as fraud (criminal act as compared to an irregularity, such as fictitious declarations of surface area and falsified customs papers and aid applications).
Structural actions: The number of irregularities reported (3,339) and their financial impact (EUR 695.6 million) rose sharply compared to the year 2003: +33.8% in the number of cases and +43.9% in amounts incriminated. According to the Commission's estimate, 20% of the irregularities reported, namely 0.4% of the structural fund and cohesion fund allocations, are likely to be classified as fraud. The European Social Fund (ESF) seems to be the most affected (around 26%). The report and its annexed documents are available at the following internet address: http://www.europa.eu.int/comm/anti_fraud/reports/index_en.html