EU Accounts

The European Court of Auditors have for the 18th year in a row unearthed a series of major errors in European Union spending fuelling the ire of those who want to block increases in its next long-term budget.

The official auditing body revealed it had unearthed irregularities affecting around €5.2bn or some 4% of total spending during 2011.

Rural development, fisheries and health were dubbed the worst offending areas, according to the Luxembourg-based court’s 240-page annual report.

While there were several cases of suspected fraud reported to the EU's anti-fraud office, most were errors from "misapplication or misunderstanding" of the EU's complex rules, the auditor said.

Court president Vitor Caldeira, said: ‘With Europe's public finances under severe pressure, there remains scope to spend EU money more efficiently and in a better-targeted manner.

‘Member states must agree on better rules for how EU money is spent, and member states and the Commission must enforce them properly.’

The European Commission wants to impose a 5% budget hike which would see it rise to £826bn for the five year period up to 2020, compared to the current 2007-2013 cycle.

In a statement, EU audit and anti-fraud commissioner Algirdas Semeta, said: ‘A little more effort by member states to control projects properly and retrieve misused funds could go a long way, particularly in this time of economic difficulty.’

Prime Minister David Cameron was defeated in the Commons last week in his bid to see the EU budget remain at its current levels while many Tory and Labour MPs backed an amendment supporting a reduction.

British MPs are on the cusp of thrashing out their views on the EU's 2014-2020 budget proposals - known as the Multiannual Financial Framework (MFF) – with both the UK and other EU countries calling for a reduction due the tough austerity measures in place across the continent.

A budget summit for EU chiefs is set to take place on 22 - 23 November. Should no agreement be forthcoming by the end of 2013, that year’s budget will be extended into 2014 with a provision for a 2% rise to cover inflation.

The UK contributed some £5.85bn to the EU budget in 2011.