EU: Budget

Earl Cathcart Excerpts

Monday 10th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, I said that the situation in which we find ourselves, with the European accounts not getting a clean audit opinion, is completely unacceptable. The connection between that and the regulation of financial services in Europe is somewhat tenuous. We should focus on ways of improving the budget situation. My right honourable friend the Prime Minister has already taken steps, both on this year’s budget and by talking about what we expect from the financial framework for the next seven years of the budget. Those are the ways in which we have to move forward determinedly.

[Earl Cathcart]

My Lords, my noble friend says that we have a treaty obligation to pay our contribution to Brussels. Quite so, but surely there is also a treaty obligation to ensure that all EU money is properly spent. Secondly, if Brussels blames the nation states for these financial irregularities, why do we not put pressure on the Commission to name and shame, and then block future payments to, those countries responsible for the fraud and mismanagement?

[Lord Sassoon]

My Lords, there are indeed things that we can do and will consider doing. The Council considers the budget issue in the early months of each year. It is rare—certainly it has not been done in recent years by a UK Government—to vote in Council against waving through the budget without a clean audit opinion. However, as my honourable friend the Economic Secretary has made clear in another place, the Government are ready to use our vote if we see accounts that fail to meet the standards that we think they should. She said in another place:

“If we see accounts that contain points made by the European auditors that we believe the Parliament is not taking on board, we will be ready to use our vote in future to challenge the Commission in a way that the last Government never were”.—[Official Report, Commons, 13/10/10; col. 456.]