Governments split over Kinnock’s reforms

Date: 10/02/2000

By Simon Taylor

EU GOVERNMENTS are deeply divided over European Commission Vice-President Neil Kinnock's plans to overhaul the institution's financial controls.

Most northern member states support Kinnock's proposal to abolish the current system under which decisions on spending Union funds must be cleared centrally in advance and devolve responsibility for this to individual directorates-general.

But Spain, France and other southern member states are opposed to this approach, arguing that it could weaken controls at a time when the Commission needs to demonstrate through the reform process that it can be trusted to handle taxpayers' money.

Spain's EU Ambassador Francisco Javier Elorza warned that scrapping central financial controls could rebound on the EU executive. "If you do not have controls, people can make mistakes and there will be attacks on the Commission," he told European Voice. "You need someone there to say what is acceptable and what is not."

Kinnock's proposals are aimed at tackling what the committee of wise men described last year as the lack of a sense of responsibility among Commission officials. But Elorza argues that this does not result from the way the current system of controls is structured but rather from the multiple layers of bureaucracy required for each decision. "The problem is not ex ante controls themselves but how to get rid of 33 signatures you need," he insisted.

Most northern member states are, however, in favour of Kinnock's approach because it more closely resembles their own national systems.

An aide to the Commissioner suggested that the reservations expressed by some governments could be overcome if they were given a better explanation of the key elements of the plan. "There is a misunderstanding that by suppressing central financial controls we are getting rid of them altogether," he said.

Foreign ministers are due to deliver their first formal assessment of the consultation paper published by Kinnock last month at their meeting next Monday (14 February). The vice-president is currently touring EU capitals to explain his plans to member states and gather initial reactions before completing work on a White Paper to be published on 1 March.

Governments appear to be backing away from demands for an early review of Commission staff's pay and benefits, following warnings that this could spark a backlash from unions fighting to defend their members' existing perks and jeopardise the entire reform package.

Most are now expected to support Kinnock's call for the review to be postponed for at least a year, although diplomats said this would be "hard for member states to swallow" and would depend on the outcome of the study into how Commission pay rates compare with those in other international organisations.

EU governments are deeply divided over European Commission Vice-President Neil Kinnock's plans to overhaul the institution's financial controls.