Fraud controls inadequate for enlarged EU

An enlarged EU would witness increased fraud unless accountancy measures were improved within the Union, a former senior EU official said yesterday.

Ms Marta Andreasen, former EU chief accountant, claimed there was "no desire" to deal with fraud in the European Commission, and matters would get worse within an enlarged Union.

Speaking at public meeting in Dublin organised by campaigners for a No vote in the Nice Treaty referendum, she said: "If the Commission is unable to administer its €98 billion budget from 15 countries I don't see how they are going to administer a bigger budget with 25 countries."

An added element was the fact that some of the new member states would have "much weaker controls" than existing ones.

Ms Andreasen was the first accountant to be appointed to the high-level EU post in January 2001.

Last May, however, she was removed from the job after raising her concerns in public.

She noted that the European Court of Auditors had also referred to problems of accountability in recent years.

However, "no real corrective action has been implemented".

Calling for better management of EU funds, she said: "The accounting system on which the European Commission manages its funds is vulnerable. This means that fraud cannot be prevented."

She stressed that the issue shouldn't specifically be linked to the Nice treaty, adding:

"My aim is only for better accountability and better detection, and prevention of fraud. I am fighting for a better Europe, so to speak."

The meeting at which Ms Andreasen was speaking was organised by Attac na hÉireann, which is campaigning for the introduction of a tax on currency speculation as well as a No vote in the Nice Treaty referendum.

The group's spokesman, Mr Conor Ó Briain, said it was urging rejection of the treaty because of changes to Article 133 which, he said, would "further the corporate agenda".

He added that the treaty "copperfastens the European Parliament's exclusion from any role in negotiations at the World Trade Organisation.

"Furthermore, it removes from EU member states the right to veto international trade agreements on vital public services."