| EUROPEAN UNION
news: Friends
of Clean Accounts Urge Greek Presidency to Watch
over Reform of Accounting System
Sir
On 18 December the
European Commission issued a communication on the reform
of its accounting system. The reform is to last at least
until 2005 and includes the appointment of a new chief
accountant as well as a new committee on accounting
within the Commission.
But the reform is
too late and too little to ensure correct handling of the
EU funds - the taxpayers money.
A group of MEPs from different national and political
backgrounds, who have gathered under the name of
Friends of Clean Accounts, will bring up the
question on the Commission Accounting system, as the
European Parliament is going to approve the 2001 accounts
of the EU. We have major reservations about the proposed
reform, and we urge the Greek Presidency to bring up the
matter in the Council. In detail we like to point out the
following problems:
The Commission is promising to have an accounting system
to support the Accounts as they are presented today, but
only for 2005. This means that the accounts that will be
presented for 2002, 2003, and 2004 will not be supported
by an official accounting system. A situation that would
not be tolerated from any organisation in the world.
The new financial regulation does not bring any formal
change into the accounts. They will be presented in
general terms as they are today. Adopting accrual
accounting only for the general accounts will not resolve
the issue. According to an independent analysis, the
introduction of an " integrated accounting
system" is needed. This requires the use of
double-entry accounting in order to ensure that the
processing of each transaction will modify the general
and the budgetary accounts at the same time.
In response to the Court of Auditor's criticism, the
Commission has been promising for years to reform the
accounting in accordance with international standards and
that the computer system will have to be adapted. But
when and how? What is new in this communication
Together with this communication the Commission announces
the New Financial Management Structure to be implemented
in line with the new Financial Regulation as of January
2003. The Financial Regulation announces the elimination
of the Financial Controller and the verification of the
invoices by the Accounting Officer before he approves
payment ( this last one being totally unacceptable in any
organisation). It is already unbelievable that the new
financial regulation - created in the context of the
massive resignation of President Jacques Santers
commission due to financial mismanagement - may weaken
the controls to such a degree.
The Friends
of Clean Accounts have serious doubts about the
proposed reform and we ask the Greek presidency to take
these doubts into consideration and to watch over the
Commissions proposed reform. The Friends of
Clean Accounts also want to approach their national
parliaments in order to point out the seriousness of the
problem to their respective national governments.
Jens-Peter Bonde,
MEP (JuniBevægelsen/EDD)
Rijk van Dam, MEP
(ChristenUnie/EDD)
Chris Heaton-Harris, MEP (Conservative Party/ PPE-DE)
Dr. Gabriele
Stauner, MEP (CSU/PPE-DE)
TO REMIND YOU OF THE CASE PREVIOUS :EUOBSERVER /
BRUSSELS - An explosive letter obtained by the EUobserver
castigates the Commission's accounting system as
"vintage public sector in the 60's" and
characterises the accounts department in DG Budget as
"haunted by a profound lack of qualified staff, a
host of vacancies/absentees in crucial functions [and] an
entrenched mindset." Dated 21 May 2002, the letter
is addressed to Neil Kinnock's cabinet, the
administrative reform commissioner. On May 27 2002, Ms
Marta Andreasen, the wayward chief accountant, whose
complaints about the Commission's accounts system are
supported in the letter, was told she was to be suspended
from her job.
Mr Muis, former vice-president and controller of the
World Bank, went on to say that Ms Andreasen's comments
on the system were "factually substantive and
correct" and that she is "raising the right
questions." The former chief accountant criticised
the Commission for not having a generalised double-entry
book-keeping system for the annual 98 billion euro
budget, for having insecure computers and for having
unqualified accountants to supervise the book-keeping -
in short for having a system massively open to fraud Ms
Andreasen was transferred from her post as chief
accountant to the personnel and administration
department, after sending a letter to Commission
president, Romano Prodi, expressing her concerns about
budget failures. From there, however, she went public
with her complaints. This led to her being suspended from
her duties.
The
"Old Europe" needs a new government
GIACOMO
FILIBECK -
"Neither France's nor Germany's government
seems to have come up with a solution to the
problem, even if both countries have offered the
old Europeans an outburst of pride." (President
of the European Youth Convention and of the
European Youth Forum.-
While the whole of Europe (including the 13
candidate countries applying for membership in
the European Union) is busy deciding its own
future within the European Convention, France and
Germany have uttered a clear and decisive NO to
the war of George W. Bush. This they have done as
they celebrate the 40th anniversary of the
signing of the Elysée Treaty marking the
reconciliation between their peoples.
The US Secretary of Defence, Donald Rumsfeld,
said there should be no concern about two
countries that were 'Old Europe'. Well, 'wise'
would have been the more appropriate word,
European Commission President Romano Prodi
replied. The Continent, he noted, was able to
emerge from the ashes of war and rebuild what is
today a Europe of peace and prosperity that does
not want to again pay the price it has already
paid. Indeed, 'wise'. In this way, we young
Europeans feel proud, for a day, to be a part of
the old, wise Europe.
The 'old'
Europe
But have France and Germany spoken on behalf of
Europeans, both young and old? Unfortunately they
have not, because more than one European leader
has already informed us that he would not
hesitate a single second to obey the orders of
the American General. These leaders represent a
variety of identities, from UK to Spain, to
Italy's Silvio Berlusconi who seems to have a
poor memory of when together with France, Germany
and the Benelux countries, Italy helped lay the
first stone to build the 'old' Europe referred to
above.
Nevertheless, we believe that the overwhelming
majority of Europeans, not just the French and
the Germans, do not at all agree with this
senseless war, which could lead to an
uncontrollable destabilisation of the entire
Middle East.
European
voice
But who gives Europeans a voice? No one. Although
in words virtually everyone seems to agree that
Europe needs a common foreign and security
policy, nobody really seems prepared to draw the
consequences of this. This boils down to saying
that Europe needs to have a government that can
decide (meaning one that responds to a majority
of States and citizens) the lines of a truly
European foreign and security policy. A real
European army also needs to be created (in the
form of a rapid intervention force) that is under
the leadership of the European government, which
gives this policy credibility and effectiveness.
Lastly, Europe has to have a single
representative on the UN Security Council.
European
leaders remain profoundly divided
Until such time, the 'old' Europe will not speak
with one voice and will continue to turn the
other cheek when 'slapped' in the face,
generating frustration and mistrust among its own
citizens. These citizens are perfectly aware that
those deciding peace and war are not the leaders
they elected but an American President satisfying
the needs of his own Administration and deaf to
the wishes of public opinion in Europe. We must
also not think that the temporary European
agreement to extend the inspections has changed
anything. European leaders remain profoundly
divided, and their apparent unity will
immediately fall apart as soon as a decision has
to be made whether or not to intervene
militarily.
Two
Presidents do not solve the problem
Neither France's nor Germany's government seems
to have come up with a solution to the problem,
even if both countries have offered the old
Europeans an outburst of pride. The joint project
that the two presented to the Convention, whereby
Europe would have two heads or two Presidents,
does not solve the problem of government and
keeps security policy in the hands of the
national governments. They decide by unanimity
and are subject to the blackmail of vetoes
dictated by national interests often at odds with
one another.
A draft
federal Constitution
Who then can fulfil the expectations of Europe's
citizens? Who can give them back the hope of
deciding our future? Only the European Convention
can do that. It was born of the desire to bring
Europe's citizens closer to the institutions, and
the Convention has to courageously act as
interpreter of this desire, adopting a draft
federal Constitution that gives life to the first
democratic government of Europe, as called for by
the European Youth Convention.
Popular referendum in all the States of Europe
Nonetheless, as the whole story of European
unification has demonstrated, for there to be
courageous and innovative decisions there needs
to be an end to unanimity. Without the
elimination of unanimity, Europeans would not
elect today a Parliament and would not be walking
around with a single currency. For this, if the
Convention is to propose a Constitution capable
of responding to the concerns and worries of
Europe's citizens, the Convention will have to
adopt its own draft by a majority and ask that it
be submitted the same day to a popular referendum
in all the States of Europe.
The States where the citizens approve the new
European Constitution will in this way form a
federal vanguard in a larger confederated Union.
This vanguard will not be a closed group but an
open community that the other European States
will be able to join at any time by ratifying the
Constitution. So out of the seed of old Europe
will grow a new Europe whose citizens will again
be able to decide their own future, supporting
wisely a future of peace.
GIACOMO FILIBECK - President
of the European Youth Convention and of the
European Youth Forum
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Written by
Giacomo Filibeck
Edited by Sharon Spiteri |
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