MEPs divided over financial control plan

Date: 27/01/2000

By Simon Taylor

MEPS are divided over a key element of the plans unveiled last week to overhaul the European Commission's financial controls to stamp out fraud, prompting fears that Vice-President Neil Kinnock may not get the support he needs for his radical reform package.

Preliminary discussions on Kinnock's consultation paper have revealed that the European Parliament's two biggest political groups are split over the crucial question of whether centralised financial controls should be abolished and responsibility for funding decisions devolved to individual departments, as he has proposed.

The majority of centre-right European People's Party members are opposed to this approach, arguing in favour of retaining a separate financial control unit to guard against potential abuses of public funds.

But the Socialist Group fully supports Kinnock's proposals. Dutch MEP Michiel van Hulten, who drafted the Parliament's opinion on the committee of wise men's second report, insisted that making individual officials accountable for financial decisions was an essential part of successful reform. "The existing model does not encourage people to take responsibility," he said.

Van Hulten pointed out that in some of the most glaring instances of abuse of public funds, such as the Leonardo case and alleged tourism fraud, the decisions had been approved under the existing financial control system.

Belgian Liberal MEP Dirk Sterckx, who is drawing up his group's reaction to the reform paper, said the assembly's relationship with the new internal audit unit would be crucial. "The Parliament must control how the Commission handles money," he insisted.

Another aspect of Kinnock's proposals which is likely to spark controversy is his plan to link staff promotion to individual performance. 'How do you measure merit and prevent the system turning into favouritism?" said Van Hulten.

EPP leader Hans-Gert Pöttering said personnel management would also be a key issue for his group. "It is important for us that there is transparency on personnel issues so that there is a fair and transparent process for coming into the Commission," he added.

MEPs are also predicting clashes over Kinnock's call for proposed changes to the staff rules to apply to Parliament officials as well as those working in other EU institutions. Van Hulten said the role of the planned inter-institutional committee on standards in public life would probably have to be limited to giving advice if the idea was to be accepted by parliamentarians.

But despite such concerns, MEPs have pledged to cooperate with the Commission in the reform process, with Pöttering rejecting suggestions that the assembly was more interested in undermining the Commission to boost its own political standing.

MEPs are divided over a key element of the plans unveiled in January 1999 to overhaul the European Commission's financial controls to stamp out fraud, prompting fears that Vice-President Neil Kinnock may not get the support he needs for his radical reform package.