Select Committee on European Scrutiny Tenth Report


10. DISCHARGE OF THE GENERAL BUDGET 2000


(24130)

15715/02

COM(02)696


Commission follow-up Report on the European Parliament Resolution on discharge for the General Budget 2000.

Legal base:
Document originated:10 December 2002
Deposited in Parliament:23 December 2002
Department:HM Treasury
Basis of consideration:EM of 21 January 2003
Previous Committee Report:None
To be discussed in Council:6 March 2003
Committee's assessment:Politically important
Committee's decision:Cleared, but relevant to the debate in European Standing Committee B on the European Court of Auditors 2001 Annual Report and the Commission's 2001 Annual Report on protecting the financial interests of the Communities


Background

  10.1  As part of the process of discharge (final closure of the accounts) of the General Budget the European Parliament and the Council make recommendations for improvements, based on the European Court of Auditors' (ECA) report on the implementation of the budget. The Commission prepares follow-up reports giving an account of actions taken in response to those recommendations. Last year for the first time the Commission published separately its response to the European Parliament's Discharge Resolution. We reported that document briefly to the House.[33]

The document

  10.2  The follow-up report to the European Parliament's Discharge Resolution for the General Budget 2000 sets out the European Parliament's recommendations, which are extensive and detailed, and follows each one with the Commission's replies. The recommendations were in four groups and the report follows that format:

  • Effectiveness;

  • Regularity, Combatting Fraud and Protection of Financial Interests;

  • Sectoral Issues; and

  • Access to documents.

  10.3  The European Parliament set its comments on the Commission's effectiveness in the context of three criteria. They are:

  • compliance with the objectives laid down by the political authority;

  • speed and simplicity of the measures taken to realise those objectives; and

  • best possible use of the budget resources deployed.

  10.4  It asked for examination of:

  • the administrative machinery of the Commission;

  • the regulatory procedures and the system of checks; and

  • the respect by the Commission of the European Parliament's political priorities and budget guidelines.

  10.5  The overall thrust of the European Parliament's comments on regularity, combatting fraud and protection of financial interests was that the present system of protection of the Communities' financial interests and prevention of fraud must be strengthened.

  10.6  In the section on sectoral issues the European Parliament comments on specific issues related to the Justice and Home Affairs sector, agencies, the Daphne programme to prevent violence against children, young people and women, trans-European transport and development aid. In the section on access to documents the European Parliament asserts its view that it, as the discharge authority, should have the same access to Commission documents as the ECA.

The Government's view

  10.7  The Financial Secretary to the Treasury (Ruth Kelly) tells us:

"The Government welcomes this report, which shows that the Commission is taking the European Parliament's recommendations seriously. It is important to review the Court of Auditors' findings and consider and take action on what is necessary. The European Parliament's comments are detailed; however the Commission's response is sensible and makes important reference to the reforms that are already in progress. However, there are no policy implications for the UK government."

Conclusion

  10.8  The European Parliament's recommendations and the Commission's comments on them in this document give additional information casting light on how the Communities' finances are managed and monitored. As such, whilst we are content to clear the document, we regard it as relevant to the debate on the ECA 2001 Annual Report we have recommended in paragraph 2 above.

            


33   (22983) 14379/01; see HC 152-xii (2001-02), paragraph 20 (16 January 2002). Back


 
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Prepared 11 February 2003