EU seeks powers to spot-check accounts

The European Commission sought yesterday to establish itself as the EU's chief auditing authority, demanding new powers to police the budget offices of member states.

'Under the proposed law, the Commission could carry out spot checks and "in-depth monitoring visits" anywhere in the EU, at any time, to ensure that Brussels was not being fed bogus data by member states.

Eurostat inspectors would be able to demand access to debt figures and "underlying government accounts" to safeguard the "credibility" of monetary union. Findings would be made public if national data was found to be misleading.

This follows revelations last year that Greece had cooked its budget books by more than 2pc of GDP every year from 1997 onwards to meet the deficit limit for the euro. The Commission said Greece would never have been allowed to join the single currency had the truth been known.

Britain could also be the target of raids, even though it is not a member of the euro. The Government attacked the plan yesterday, insisting that there was no need for further bureaucracy.

"Our statistical body has a worldwide reputation for excellence and doesn't need Eurostat officials marching in," said a British official. "Brussels should be focusing on countries that have problems."

France and Germany are expected to give the proposal a frosty reception when it reaches EU ministers in coming months.

In January, EU finance ministers voted for sanctions against Athens, which now admits to a budget deficit of 5.5pc of GDP in 2004, far above the legal limit of 3pc.

Italy also came clean this week, admitting that it had understated its deficit by as much as 0.5pc of GDP for the past three years.

While Eurostat officials have railed privately in the past at "statistical alchemy" by offending states, they have been powerless to police the abuses or bring the culprits to book. Forced to rely on figures provided by national capitals, their only recourse has been to add footnotes hinting at possible error.

Ironically, Eurostat is itself embroiled in scandal. A leaked memo by investigators described a "vast enterprise of looting" by top officials, entailing the disappearance of €5m (£3.4m) of taxpayer funds in illegal black accounts. Contracts were awarded off-books to a shadowy network of suppliers linked to the officials and their families.

A report today by Britain's National Audit Office will say that investigators were still investigating nine cases of abuse by Eurostat officials.

Thanks for the comments.

I didn't recognise the quote but Google helped me out. You learn a lot here on FR.

I went over to the sargent, said, "Sargeant, you got a lot a damn gall to ask me if I've rehabilitated myself, I mean, I mean, I mean that just, I'm sittin' here on the bench, I mean I'm sittin here on the Group W bench 'cause you want to know if I'm moral enough join the army, burn women, kids, houses and villages after bein' a litterbug." He looked at me and said, "Kid, we don't like your kind, and we're gonna send you fingerprints off to Washington."

I thought your latest column was a very good read. Isn't it time for some new judges? (It looks like Rehnquist, unfortunately, will have to retire, but how about some of the "liberals"?)

Most Europeans will deny this. They don't even comprehend the concept when confronted with it. But they are centralist thinking people. Some central body per committee makes all decisions at echelons beyond reality.

The idea of a decentralized system where there is a high degree of autonomy is foreign. Again, France and Germany are perfect examples. How much power, money, and influence does the state legislature really have? Little. It’s all centrally decided in Berlin or Paris. EVEN THEIR LANGUAGE is reformed by a panel of experts and government officials who per committee decide the changes. So a kid in Cameroon used to get his school curriculum dictated by a bureaucrat out of Paris. The content of instruction may not even be tailored to the needs anymore, but more important that “function” is “form” or in this case “process”.

Why the US works as a nation yet have different religions, races, political movements, culture and more? Because we are a decentralized nation that allows these differences to persist yet harmonizes those aspects only that are necessary to succeed economically and in the collective defense of our nation. WHO DOES A HEADSCARF AFFECT AN AVERAGE FRENCH PERSON? Why is there a need for such a law? How are my rights limited, the security of the nation threatened, trade hampered or ANY thing else if some woman wants to wear a headscarf? This law is a perfect example of when all power is at the top, when some morals or values are viewed as lesser than others. You CAN NOT bring many different people together under one umbrella with such a world view. There is a connection between centralized thought, headscarves and the problems plaguing Europe today. But the European does not see this.

In parts of the US there is more Spanish-Chinese-French/Cajun spoken than English. Who cares? We are still all bound together and we know this. We intentionally give 40% of the whole US defense to the states to manage (National Guard). We intentionally allow the states to make their OWN laws (abortion-death penalty-gun control-what’s illegal and not), hire and train their police and version of FBI. The states run the schools, teacher’s certification and curriculum. Unemployment and other aspects of social services (example WIC) are state managed. The Europeans when they come to the US (And then claim to be experts on us) have no concept of how varied we are, how decentralized we are. Fact is; my governor in Alaska affects my life MORE in my day to day routine than the President of the US. My state elected officials have MORE influence than the Federal Government in near every aspect (My kids school to the taxes I pay to the building codes my home must meet, even the inspection standards of my car). Who has the money? In Germany the Federal government gives the states (Bundeslaender) their money. Their FED also transfers money from one state to another. Those states that are poor basically get subsidized. In the US the State has its OWN income tax which the Fed does not get or control. The state levies its own sales tax which goes straight to the state without FED control. The states in Germany are powerless, their governors powerless compared to ours. The fact that we allow for the differences in Utah, Texas, or New York makes it possible that we survive as a nation of such varied people. France and Germany do not see it this way. It MUST be one way. And of course they are sitting behind the wheel, so guess which way it’ll be? Eventually this will lead to problems.

Red6

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