Clearing up the myths
London4Europe Vice Chair Dr Monica Threlfall has produced this set of rebuttals of claims about EU institutions. Other articles on the site covering a similar theme are Is the EU Democratic?, Tony Benn's Five Questions and Let's solve Leavers' EU democracy problem.
“The EU spends millions on admin” |
The EU spent €136.4bn, or 1% of EU Gross National Income (GNI), or €267pa for every citizen in 2016; or 1 euro per day.[4] The cost of NATO membership is double the amount, over 2% of GNI.[5] Over 94% of the EU’s funds are spent on people, via spending programmes. Only 6% goes on administration. The EU uses its administrators to ensure money is spent correctly in compliance with laws and procedures previously agreed by its members. A supra-national Court of Justice enjoys delegated powers that can fine governments and bodies for non-compliance. |
||
“The EU Auditors have not signed off the accounts” |
The EU’s expenditure is scrutinised by a Court of Auditors composed of 1 member per country (including the British senior civil servant Phil Wynn Owen).[6] This Court gave its latest Statement of Assurance to the European Parliament in September 2017. In turn the Parliament’s Committee on Budgetary Control, has been issuing a Discharge of the accounts for a number of years,[7] endorsed by the member-states. In addition the Parliament votes on the Discharge for every EU institution, as each receives its own slice of the budget and returns accounts on it.[8] |
||
“Fraud is rife” |
The EU suffers from ‘accounting errors’, not ‘fraud’ - in accounting terminology.[9] Fraud (not errors) is estimated to be only 0.2%, the same as in the UK.[10] Some UK government departments experience fraud of around 5% of expenditure.[11] Most fraudulent use of EU money is committed by the member states. The EU’s Anti-Fraud Office (OLAF) forces them to pay it back. OLAF encourages reporting of fraud by the public through an on-line site: https://fns.olaf.europa.eu |
Further misinformation can be sent to [email protected]
[1]Kohll and Decker won their case about not being able to get free replacement spectacles while in another EU country, opening the way to cross-border healthcare.
[2]Vote Watch Europe, Data Annex to 2012 Annual Report ‘Agreeing to disagree: the voting records of EU member states in the Council since 2009. http://www.votewatch.eu/blog/wp-content/uploads/2012/07/data-annex-to-votewatch-europe-2012-annual-report-final.pdf
[3]Office of National Statistics (2018), Civil Service Statistics 2016, and Public Sector Employment, UK, June 2018 https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/publicsectorpersonnel/bulletins/publicsectoremployment/june2018#civil-service-employment-is-little-changed-on-the-quarter-but-up-slightly-on-the-year
[4]http://ec.europa.eu/budget/explained/myths/myths_en.cfm
[5]Adhu, A. (12.07.18) ‘NATO contributions by country’, Chart: ‘Military Spending of NATO countries and estimated share of GDP in 2017’. https://www.thesun.co.uk/news/6745786/nato-contributions-country-who-pay-most-least-2-percent-gdp-target-trump/
[6]The UK Comptroller and Auditor-General is also prone to issue ‘qualified opinions’ of the Whole of Government Accounts, referring for instance to ‘inconsistent application of accounting policies’ and disagreements over these, as well as urging improvements. See The National Audit Office’s Estimate, Whole of Government Accountsto 31.03.2017, June.
[7]It stated that the accounts presented the financial position of the [European] Union ‘fairly’, and were ‘based on internationally-accepted accounting standards for the public sector’. OJ 2017/C 322/01), p.10. Paste in https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2016/annualreports-2016-EN.pdf
6See the Court of Auditors’ Statement of Assurance, p.11 of Annual Report on the Implementation of the Budget, https://www.eca.europa.eu/Lists/ECADocuments/annualreports-2016/annualreports-2016-EN.pdf
[8]European Commission (2016) ‘Discharge Procedure’ http://ec.europa.eu/budget/explained/reports_control/discharge/faq/faq_en.cfm
[9]European Court of Auditors, Annual reports, Financial year 2017.https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=46515
[10]See UK The National Audit Office’s Estimate, Whole of Government Accounts to 31.03.2017, June, p.5.
[11]See HM Treasury, Whole of Government Accounts – year ended 31.03.2017, table p.53, §1.147-1.151
Articles on this page reflect the views of the author and not necessarily of London4Europe