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Budget and the Beast

Civitas, 1 September 2008

Chris Heaton-Harris, Conservative MEP and member of the Audit Committee of the European Parliament, has published a ‘rough guide to the EU budget’. The brief guide tries to make sense of the draft budgets for both the European Commission and European Parliament in 2009 and queries how MEPs can be expected to ‘tame the beast’, writes Laura Kelleher.


In light of the fact the European Court of Auditors will yet again fail to sign off the budget, Mr Heaton-Harris’ analysis highlights the following problems with the budget proposals:
1) The budget is not properly scrutinised
The report argues that budgetary proposals do not undergo sufficient scrutiny. This is due to scheduling clashes which mean that most of the European Parliament is away during the period when budget amendments should be submitted. For example, most Committees of the Parliament returned from recess on the 25th August – two days ahead of the deadline for amendments scheduled for the 27th of August. Mr Heaton-Harris believes that this scheduling clash means MEPs are denied the opportunity to properly scrutinize the proposals and submit amendments. MEPs are therefore denied the opportunity to ‘tame the beast’.
2) The budget contains excessive administration costs but no proposals to tackle over-expenditure in this area.
In 2009, the total administration costs of the Commission will rise by 5% to £6.42 billion. Ironically, the pilot project ‘Minimising Administrative Burdens’ has been removed from the budget completely. Administration costs have risen each year since 2006, and without internal reform will probably continue to do so.
3) The EU spends vast amounts of money on itself.
Mr Heaton-Harris’ report outlines the large amounts of money which the EU spends on itself. The 2009 Budget allocates £53m for ‘mission and entertainment expenses’, and a further £67.5 million for equipment and furniture for the Commission. It also allocates £171.6 million for ‘communication’, or rather the ‘European Commission’s spin machine’. Similarly, the European Parliament’s budget allocates £70.83 million for MEP travel expenses, an average of £98,000 per MEP.
4) The EU funds a number of organizations with strong policy agendas.
The analysis suggests that at least £247.5 million has been spent by the European Commission on various NGOs. Heaton-Harris condemns the Commission’s practice of consulting NGOs which it has funded. These organizations include Climate Action Network Europe, the European Movement, Socialist Education International and the Coalition for the International Criminal Court.
5) The 2009 proposals include funds for the implementation of the Lisbon Treaty.
The 2009 proposals include funds for the implementation of a treaty, which has yet to be ratified by all 27 member states. Mr Heaton-Harris draws attention to the introduction of the preliminary draft which states ‘In 2009, the EU should also see the entry into force of the Treaty of Lisbon’. He questions the legal basis of allocating funds for implementing the terms of the as yet unratified Lisbon Treaty.
Mr Heaton Harris’ account of the 2009 budget proposals does little to answer those accusations of unaccountability, waste and mismanagement, which are so frequently levelled at the EU. His analysis demonstrates the need for a more robust scrutiny process. The current budget proposals do not reflect well on the EU and if it is to make any progress over the coming years it will need to take significant steps to transform the current beast of a budget into a beauty.

1 comment on “Budget and the Beast”

  1. We got rid of the last Soviet Union to become the next! No wonder the Russian’s are suspicious.

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