EU: Must take action on 'institutional inertia'

The Commons public accounts committee has warned the government that there must be rapid improvements in the EU's finances if public fears over fraud are to be overcome.

MPs conclude that accountability and audit arrangements of the European Union have been characterised by "inertia among the institutions".

It warns that the high levels of fraud and irregularity generally thought to exist in the European Union operations have seriously damaged the community’s reputation.

The UK’s presidency of the European Union is an "ideal opportunity for the UK to exert vigorous pressure for real improvements in financial management and audit" the committee says.

The MPs accept that the commission is committed to change but there is still a long way to go to secure the standards that European taxpayers are entitled to expect.

Committee chairman Edward Leigh said: "The task of achieving strong audit and accountability arrangements in the European Union is one Sisyphus himself, endlessly pushing his huge stone to the top of the mountain, would not envy.

"Little has changed because of institutional inertia. Ten years in a row the community’s accounts have failed to secure a clean bill of health.

"Achieving this by watering down audit standards would be unacceptable and the European Court of Auditors should resist any pressure to do so.

"Progress will remain hopeless and public confidence low without drastic simplification of European Community schemes making them easier to control."