Brussels, 14/07/2006 (Agence Europe) - On 13 July, the European Commission adopted its 2005 report on protection of the Community's financial interests and the fight against fraud, showing that the EU Member States have notified over 12,076 cases of irregularities in EU budgetary expenditure, with a financial impact estimated at €1.042 billion. The 2004 report noted 9,463 cases amounting to €982 million.
Own resources: The number of cases of fraud and irregularity detected and communicated increased by 55% compared to 2004: 4,982 cases in 2005, including 1,729 in the Netherlands (+212% compared to 2004), 629 in the United Kingdom (+10%), 592 in Belgium (-24%) and 500 in Spain. The amount affected by irregularity is around €322 million in 2005 (the United Kingdom is n the lead with €62 million, followed by the Netherlands, with €61 million), compared to €212 million in 2004, i.e. a rise of 52%. According to the Commission, this rise can be explained by the fact that there is increased vigilance, mainly in the United Kingdom and the Netherlands. Cigarettes remain among the products most affected by irregularities (smuggling). The Commission also notes a rise in fraud in sugar and textile exports (declaration of origin).
Agriculture: In 2005, the number of irregularities fell slightly (3,193 cases compared to 3,401 in 2004), but their financial impact increased (€102 million in 2005, 82 million in 2004), which represents around 0.21% of the total of EAGGF-Guarantee funding. Spain is the country most concerned, with 711 cases amounting to €45 million. Italy notified 105 cases, for €14.6 million. Germany notified 521 cases (€15 million) and France 482 (€8.7 million).
Structural action: Irregularities communicated amount to €16.799 million (0.55% of amounts allocated), including 6.1 million for the Phare programmes, 3.7 million for the SAPARD programmes and 6.9 million for ISPA. The number of cases has considerably increased for PHARE and SAPARD and tends to be stabilising for ISPA actions.
Results of the global strategic approach 2001-2005: The report also presents the results of the strategic approach by the Commission for 20012005 for the protection of Community financial interests. Five years after the launching of the strategy, the Commission considers the result “positive”. Significant progress has been made in each of the main areas of protection for financial interests (legislative anti-fraud policy, new cooperation culture, prevention and fight against corruption within institutions, strengthening of the criminal law dimension.) For example, action aimed at preparing the ground for the creation of a European prosecutor has been temporarily delayed pending ratification of the constitutional treaty, the Commission deplores. Out of the actions foreseen for the whole of the programming period, 75% were fully carried out before 31 December 2005, 9% were partially conducted and are continuing, 14% were deferred in 2006, and 10% have been provisionally or definitively suspended.