WRITTEN QUESTION No. 1518/96 by Amedeo AMADEO , Cristiana MUSCARDINI to the Commission. Community fraud
Date: 1996-06-17
Institutions: AMADEO, European Parliament, MUSCARDINI
Subjects: Community budget, Structural Funds, aid to agriculture, crime, fraud, report













EUR-Lex - 91996E1518 - EN






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91996E1518

WRITTEN QUESTION No. 1518/96 by Amedeo AMADEO , Cristiana MUSCARDINI to the Commission. Community fraud  


Official Journal C 305 , 15/10/1996 P. 0105 





WRITTEN QUESTION E-1518/96 by Amedeo Amadeo (NI) and Cristiana Muscardini (NI) to the Commission (17 June 1996)Subject: Community fraudThe scale of fraud in the Community is causing concern, since it accounts for 1% of the Community budget, with instances of fraud discovered in 1995 alone accounting for more than ECU 1 billion. The proportion of fraud in the various sectors follows the same pattern as the Community budget itself - 50% accounted for by agriculture and 20-25% by the structural funds and research. In addition to this are the amounts lost as result of fraudulent operations by organized criminal organizations.Until fraud against the Community budget is considered a criminal offence the world of organized crime will continue to take advantage of European subsidies with absolute impunity. The only real deterrent would now seem to be the ratification of the Convention on penal sanctions.The Essen and Madrid summits called on the Member States to submit reports on the measures which they use to combat Community fraud.Can the Commission say how many and which States have so far forwarded such reports?Answer given by Mrs Gradin on behalf of the Commission (8 July 1996)The Essen European Council called on the Member States to submit reports on the measures they are implementing to combat wastefulness and the misuse of Community resources. The reports were submitted by the 15 Member States to the Ecofin Council on 19 June 1995 and, as requested by the Cannes European Council, the Commission presented a comparative analysis of these reports to the Madrid European Council ((COM(95)556 final. )).On this item, as well as on the question of the financial impact of fraud cases, the Commission would refer the Honourable Members to its 1995 report on the fight against fraud ((COM(96)173 final. )). The figures contained in this report show that 1 146 MECU were involved in irregularities ((The term 'irregularities' is defined in Council Regulation (EC, Euratom)2988/95; OJ L 312, 23.12.1995. )) cases in 1995. This amount covers however both evaded traditional own resources (735 MECU) and undue expenditure (411 MECU). On the basis of these figures, there is no direct correlation between the breakdown of budgetary expenditure and the budgetary impact of irregularities discovered.In its 1996 work programme on the fight against fraud ((COM(96) 17 final. )), the Commission has decided the priorities for the current year. The Commission expects all Member States to ratify rapidly the Convention on the protection of the financial interests of the European Communities. It will monitor the procedures for transposition into national systems. It will also pay particular attention to the adoption of protocols to this Convention.