EU spending fails to satisfy auditors' court

There is an unacceptably high level of error in payments made by the European Union, particularly those administered by the member-states, according to the European Court of Auditors, the body that controls EU expenditure.

For the sixth year in succession, the Court's Annual Report for 1999 has refused to make a positive statement of assurance that all EU funds were properly spent.

Most errors relate to minor overpayments to farmers or administrative irregularities in public works contracts awarded by authorities in the member-states.

But although the report calls for a tightening of controls, it stresses that very few of the payment irregularities amount to fraud.

The Common Agricultural Policy accounted for almost half of the €80 billion (£6 million) the EU spent in 1999. Ireland contributed more than €1 billion to the EU budget in 1999 (1.3 per cent of the total) but received almost three times as much from Brussels.

Despite its name, the Court of Auditors has no power to enforce its opinions, although it is entitled to take an action in the European Court of Justice.

The report is especially critical of the high level of production quotas for sugar in the EU and the low level of regulation and competition within the sugar industry.

The EU Agriculture Commissioner, Mr Franz Fischler, has promised to bring sugar quotas more closely into line with market requirements but Ms Maire Geoghegan-Quinn, the Irish member of the Court, said more action was needed.

"Franz Fischler's proposals are a small step in the right direction. But I have to question why it has taken so long for the European Commission to tackle the real issue.

"The European Commission claims that the sugar regime is self-financing when in actual fact it costs the EU €800 million a year," she said.