Brussels, 15/07/2009 (Agence Europe) - On Wednesday 15 July, the European Commission adopted its annual report for 2008 on the protection of the financial interests of the Communities and the fight against fraud, which demonstrates that the number of irregularities increased in several domains (Structural Funds, Cohesion Funds, Pre-accession Funds, Direct Spending) and fell in agriculture and own resources. The total number of irregularities involving spending rose from 6,047 in 2007 to 6,595 in 2008. On the other hand, the estimated financial impact of these irregularities fell from €1.024 billion in 2007 to €783.2 million in 2008. It fell in all sectors, apart from direct spending on Pre-accession Funds.
With regard to the latter, the Commission indicates that the number of new cases and the amounts involved have never been as high as they are now.
Traditional own resources. The number of cases of irregularities reported in 2008 was 12.5% down on 2007 (5,344 cases in 2008, compared with 6,097 in 2007), while the estimated amount is 12.5% lower (from €401 million in 2007 to €351 million in 2008). Suspected fraud accounted for approximately 20% of cases of irregularities reported, with an estimated financial impact of €75 million, equivalent to approximately 0.46% of total own resources in 2008 (compared to €130.78 million, or around 0.81% in 2007). It should again be made clear that what is involved here is reported suspicions of fraud and not cases confirmed by the courts. The real financial impact can only be established at the end of the proceedings.
The goods most affected, as in previous years, were televisions and computer screens, as well as tobacco. Most of these goods came from China, Japan and the US.
Agricultural expenditure. The number of irregularities reported was down 27% (1,133 cases, compared with 1,548 in 2007). The amount involved (€102.3 million, or approximately 0.21% of total expenditure excluding advance payments for the agricultural sector was down 34%. Suspected fraud accounted for around 7% of cases of irregularities reported, with an estimated financial impact of €4 million, or 0.01% of total appropriations, in 2008 (compared with €44.8 million, or around 0.1% of total appropriations, in 2007). The highest amounts related to fruit and vegetables, rural development (2000-06 programming period) and the wine sector. These sectors together account for more than 70% of the total amount affected by irregularities. Spain (245 cases, for €14.9 million), Italy (211 cases, for 53.9 million), France (129 cases, for 11.7 million) are the countries that communicated the highest number of irregularities.
Structural measures. The number of irregularities reported concerning the Structural Funds and the Cohesion Fund was up 6.7% (4,007 cases, compared with 3756 in 2007). Their estimated financial impact (€585.2 million or around 1.25% of commitment appropriations) was down 27%. Suspected fraud accounted for approximately 7.4% of cases of irregularities reported, with a financial impact estimated at €57 million or around 0.11% of total commitment appropriations (compared with €141 million or 0.31% o, 2007). As in previous years, the European Regional Development Fund (ERDF) and the European Social Fund (ESF) accounted for most irregularities (around 88%).
Pre-accession funds. The number of irregularities reported concerning PHARE, SAPARD and ISPA funds - and including as of 2008 CARDS, Transition Facility, and the Pre-accession assistance for Turkey - increased by 58% (523 cases compared with 332 in 2007). The presumed financial impact increased from €32 million in 2007 to €61 million in 2008 (approximately 5.4% of the total committed amount). Suspected fraud accounted for approximately 21.7% of the irregular amounts reported in 2008, with a financial impact estimated at €13 million or around 0.94% of the total annual budget.
Romania (246 cases) and Bulgaria (140 cases) are the countries that have had the most irregularities. Turkey notified 18 of them.
Last year, following suspected fraud in Bulgaria, the Commission decided to temporarily suspend Pre-accession Funds and freeze payments for several financial instruments. In July 2008, the Commission decided to suspend SAPARD expenditure repayments, due to significant shortcomings in the inspection and management system. (L.C./transl.rh)