• October 27, 2016
    Last updated 1 minute ago


EU misspent €5.5b, needs to regain trust: watchdog

The report said the so-called error rate for spending fell slightly to 3.8% of the EU’s 145.2b budget in 2015

16:56 October 13, 2016

Brussels: The EU misspent €5.5 billion (Dh22.3 billion, $6 billion) in 2015, the bloc’s financial watchdog said Thursday, warning that Brussels needed to regain the trust of European citizens shaken by Brexit and other crises.

Badly spent funds went on paying overcharged personnel costs for developing cloud computing services, it said.

Another example included aid earmarked for small- and medium-sized enterprises in the Czech Republic, Italy and Poland also benefiting people deemed ineligible, it added.

In issuing the report for 2015, Klaus-Heiner Lehne, the president of the European Court of Auditors, said Europeans have lost trust in EU institutions amid economic troubles, the migration crisis and the British vote to leave the EU.

“In the months and years to come, a major challenge for the EU will be to regain that trust,” Lehne said in a presentation of the report, stressing that a good start would be to ensure funds are better spent.

“People cannot even begin to trust us if they do not believe we are looking after their money properly,” Lehne said.

The report said the so-called error rate for spending fell slightly to 3.8 per cent of the EU’s €145.2-billion budget in 2015, but was still far above the acceptable level of 2.2 per cent.

That was better than the 6.3 billion euros that were estimated misspent in 2014.

EU rules

The report said the figures were not a measure of fraud, inefficiency or waste, but an estimate of the money that should not have been paid out because it did not fully comply with EU rules.

Spending managed jointly by Brussels and member states had the same level of error as that managed directly by the European Commission, the EU’s powerful executive branch, the report said.

The total EU budget amounts to around one per cent of EU gross national income and around two per cent of total public spending in member states, it said.

EU spending amounts to around 285 euros for every citizen in the bloc of around 500 million people.