The EU “wrongly” spent €6.25 billion of budget funds in 2014


BRUSSELS, November 10. /Corr. Denis Dubrovin/. The degree of error in the expenditure of budgetary funds of the European Union in 2014 amounted to 4.4% from €142 billion, i.e. €6.25 billion this was announced by the President of the chamber of auditors of the EU Silva Caldeira, presenting an annual report on the audit of the EU budget in the Committee on budgetary control of the European Parliament.

“The revenue side of the EU budget met all standards, while the expenditure budget was affected by material errors in the allocation of funds at 4.4%”, – he noted. The amount of the expenditure side of the EU budget in 2014 amounted to €142 billion.

The head of the chamber particularly emphasised that the level of “wrong spending” of funds is gradually reduced during the last years. So in 2012 it was 4.6% and in 2013 to 4.5%.

The most error-prone when allocating budget money has become the EU Programme on economic, social and territorial cohesion, which provides money for the development of the most backward regions of the European States. The degree of error has reached here of 5.7%. In second place – Policies competitiveness for growth and employment, which provides financial support to socially important and economically promising projects with the level of error at 5.6%.

Caldeira also noted that the EU often does not manage to provide timely implementation of available funding from the EU budget, due to a lack of training for targeted projects or errors in the work of local authorities.

As for the revenue side of the EU budget, which consists only of direct state contributions to community, depending on the level of their GDP, value added taxes and customs duties, it is logical from year to year meets all requirements and EU law.

“Inaccurate and unacceptable bids”

The European court of auditors (ECA) revealed a number of irregularities in spending in 2014 the EU budget. This was reported in the Friday newspaper the Times, which could see annual report of the ECA.

According to experts, the EU payments of €133,6 billion were committed. “In the implementation of payments for 2014 were admitted significant mistakes, say the authors of the report. – We therefore give a negative assessment regarding their legality and compliance standards.”

“If the European Commission, heads of countries-EU members and independent auditors used all information available to them, they could prevent, detect and correct much of the errors before they were made,” reads the report.

Concerned about the auditors, as noted by The Times, urged the European Commission to “immediately review the areas persistently high levels of errors” and accused officials in Brussels and officials in several countries in abuses for years.

“Inaccurate and unacceptable bids”, according to experts, is distinguished by operations on the largest expenditure item in the EU – agriculture and rural development in the amount of €57,5 billion In one case concerning Spain, “the allowance was paid for the land recorded as arable, although in reality it was a motorcycle race track”. In Greece, Spain, Poland, Slovakia, France and the Czech Republic “the land, declared and paid for as permanent grassland”, were actually not suitable for this: “fully or partially covered by dense shrubs, trees or boulders”. Moreover, these errors “similar to those that have been identified and issued in previous years”, the report said.

Serious “violations of the rules of public procurement” were found in regional EU spending (€55.7 billion) directed, in particular, on large projects, including road construction. “Cases of serious failure that we identified in our audit work, include unjustified direct award of contracts, illegal disqualification of contractors participating in the contests, as well as cases of conflict of interests and discriminatory criteria,” say the auditors.

Such data, as indicated by The Times are for experts EFA’s an important “material”, “because it clearly shows that taxpayer funds are being spent in an inappropriate way, and raise the issue of wasteful spending and potential fraud.”

According to Robert Oxley, of the official representative was established in October of 2015 Vote Leave the organization that advocates a British exit from the EU, the British “can’t control how their money is spent by the EU”. “If we vote for an exit from the European Union, we will be able to regain control over the expenditure of taxpayers money,” added Oxley.