Mr President, I should first like to thank President Karlsson for introducing the 1998 Annual Report. We Members of the European Parliament have now been able to take an initial look at the report, which is almost 500 pages long, after having been alarmed by premature press reports. Not knowing the content of the Court of Auditors' report, we were unable either to confirm or to deny these reports. The issue of the Court of Auditors providing Parliament with information in good time is one which the two institutions need to resolve as a matter of urgency. President Karlsson, I am sure that you agree with this request and that for your part you will see to it that Parliament – in its capacity as the people's representative and as the control authority – is given information first, before the results of the Court's audit reach the press. I also refer to the report of my colleague, Mr Wynn, which the European Parliament adopted in spring 1998. Since then, I hear that the Court has identified the office in its house from which the report – and possibly also the confidential preliminary report – was clearly leaked. There has also been a suspension. In this case, the pressure exerted by the European Parliament to find out where the leaks had occurred has led to success. The audit report on the table will not only provide us with a basis for our forthcoming work on the 1998 discharge; it will also serve as an important document for reforming the administrative structures in the Commission and will be used constructively to bring about the necessary improvements. We now have the opportunity in this Parliament to monitor this significant process of reform in the Commission constructively, but critically. Once again, the Court criticises the unacceptably high incidence of errors in budgetary management in 1998. It refuses to confirm the legality and regularity of the Commission's accounts and thus – for the fifth time in succession – does not give its statement of assurance. This is very serious. On examining the report, it is striking that once again cases of mismanagement, irregularities and fraud are described, and that they occur in nearly all of the areas investigated, on both the revenue and expenditure sides. Every year evasion of duties and VAT payments causes significant losses to the Community budget. There are serious shortcomings in the Member States' management and control systems here. We ask, when does the Commission finally intend to remind the Member States of their duty? And, do the Member States not realise that by allowing funds to decline, they are cutting off their nose to spite their face? In the agricultural sector, the situation remains disturbing. Overall, it is here that the most serious cases of incorrect utilisation of funds are found. Here too, the Court refers to the Member States' carelessness. In the important sector of research and development, mismanagement and a lack of transparency associated with advance payments and the final account caused losses. Over 50% of payments are said to be incorrect, with around two thirds even containing serious errors. The same applies to the Structural Funds. Let us get down to work, together with the Court of Auditors and the Commission. In the on-going enlargement process this is absolutely essential! (Applause)

Political group: PPE-DE