EU: The European Court of Auditors has declined for the 11th year in succession to approve the EU's €105 billion budget for 2004, citing ineffective management and control procedures.
The financial watchdog said some progress to strengthen internal controls had been achieved by the European Commission during the year. However, the court warned it had found material errors in farm spending and several other areas of EU expenditure.
The audit shows the Republic was one of the biggest beneficiaries from the EU budget during 2004, enjoying net receipts of €1.5 billion. The biggest net beneficiary from the EU budget was Spain, which contributed €8.4 billion to the EU budget and received €16.3 billion in funding. Biggest paymasters to the EU budget in 2004 where Germany and Britain, which recorded net contributions of €8.8 billion and €4.8 billion respectively.
Ireland's member of the court, Ms Máire Geoghegan-Quinn, said yesterday there were still difficulties and problems with control procedures, particularly with member states.
The report referenced several problems it had detected in control procedures in the Republic. It highlighted that €26.3 million of funding to Irish farmers from the common agricultural policy was disallowed between 1999-2004 following audits.
The report shows that for the first time EU expenditure exceeded €100 billion, boosted by the entry of 10 new states in May 2004. Better management of funds meant that the amount not spent by the end of 2004 was €2.7 billion, about half that of 2003. Audit commissioner Siim Kallas said some of the blame for the audit's conclusions lay with member states.
The commission has proposed a new roadmap to improve the accounting system, which would force member states to provide more information about how they spend funds. However, earlier this month finance ministers from member states rejected the commission's plans.