The Treasury is aiming to get a grip on European finances after the 12th successive rejection of the EU budget accounts.
Economic secretary to the Treasury Ed Balls was on Monday outlining plans to provide provide parliament with an annual statement on all EU budget spending in the UK.
He said the rejection of EU accounts by the European court of auditors is an "annual embarrassment".
And the minister will urge all other member states to follow suit when he meets fellow finance ministers in Brussels on Tuesday to discuss the EU's budget for 2007.
The bulk of EU spending is jointly managed between the European Commission and member countries.
Balls will argue that each government should demonstrate it can account properly for the money it spend and in particular strengthen management of agricultural and structural funds and controls against fraud.
The aim is to reduce overall levels of waste and fraud across Europe and expose the main areas where EU money is not being spent properly.
This will also give the UK the authority to argue for fundamental reform of EU regulations on spending and bid for further increases in the EU budget.
In a speech to the Institute of Chartered Accountants Balls said: "Europe must do better to end this annual embarrassment.
"By giving national parliaments greater opportunity to scrutinise how EU funds are managed, I believe we can help give taxpayers the reassurances they rightly expect.
"In taking a lead on this issue and providing a model of effective budgetary supervision, the UK can help Europe make great strides to improve the quality and accuracy of the EU accounts.
"All member states must accept their responsibilities to work together to achieve the clean bill of health for the EU's accounts
that taxpayers deserve."
