Belgian Presidency of the Council of the European Union

The establishment of the European Court of Auditors was laid down in the Treaty of Brussels back in 1975, although it took until 1992 and the Treaty of Maastricht before it became an official Institution of the EU.

Role

The European Court of Auditors was given the important task of monitoring the financial management of the European Union. By looking closely at the income and expenditure of the Institutions and the Member States, the members of the European Court of Auditors determine whether the European budget is well spent.

The European Court of Auditors produces a variety of reports. It produces two kinds of report every year: reports about the Institutions and also more specific reports concerning the actions of the bodies and agencies. In addition, the Court of Auditors also produces specific reports about periodic inspections that it has carried out.

Every year, the Court of Auditors produces an audit report on the preceding budget year. Having produced this report, the Court of Auditors then presents it to the Council. This always takes place two years after the budget year. If the Court of Auditors finds that the Commission has spent the budget well, it will also include a statement of assurance.The Council then orientates itself on the basis of the audit report and gives a recommendation to the European Parliament. MEPs then use the report as a basis on which to evaluate the Commission’s management of the budget.

The Court of Auditors also has an advisory function in relation to legislation with a financial impact. Furthermore, the Court of Auditors advises on anti-fraud measures.

In practice

The European Court of Auditors has 27 members – one per Member State. The members are appointed for a renewable term of six years and they elect a President from amongst their midst for a renewable term of three years. This post has been held by Vítor Caldeira since 2008.

The content-related preparatory work is carried out at a lower level by the Court of Auditors’ 800-strong support staff.

Both European and national bodies are often subject to audit visits by the Court of Auditors’ staff. In their inspections, the auditors check in detail whether EU money is spent in the proper way.

Where the auditors detect fraud, they themselves are not in a position to take legal action – they have to get the European Anti-fraud Office (OLAF) involved for that to happen.

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