EP criticises spending of EIT and member states
Plenary session at the European Parliament in Strasbourg © European Union 2015 EP

EP criticises spending of EIT and member states

Auditing doubts have prompted the European Parliament to postpone approving the 2013 spending of EU funds by the European Institute for Innovation and Technology, and two EU technology partnerships, in a vote.

The decision was made on 29 April during a plenary in Strasbourg, where MEPs also declined their approval of spending by the European Council and the Council of the European Union, due to their persistent failure to supply the necessary figures. MEPs also deplored the “use it or lose it” attitude of member states, whereby spending EU funds becomes the overriding aim, regardless of the viability of the investment.

Parliament also criticised the European Commission, primarily for spending errors in agriculture, regional and employment policy. Citing a lack of proper checks, MEPs stated reservations about management in these fields and listed underperforming EU member states.

ARTEMIS and nanoelectronics project ENIAC (now merged to create the Electronic Components and Systems for European Leadership, or ECSEL) have also been asked to improve their spending checks. Spending by all other EU bodies was granted ‘discharge’ approval.

The Commission bears final responsibility for spending the EU budget, which amounted to €143.7bn in 2013, even though 80% of these funds are actually managed, spent and controlled by the EU member states. The European Court of Auditors found fault with 4.7% of spending.

Speaking during a debate on 28 April, the president of the European Court of Auditors, Vítor Manuel da Silva Caldeira, said: “There is a pressing need to improve the results achieved by EU spending. The underlying problem of the EU budgetary system is that we need to pay more attention to what results we achieve with EU funds.ˮ

The EIT also has until autumn to demonstrate that it has improved its payment verification and public procurement processes. Parliament will take its final decision on the postponed discharges in October.