8. El Tribunal de Cuentas y otros organismos de control

Overview of the European Union's Control Mechanisms

Introduction to EU Control Bodies

• The European Court of Justice holds judicial power and plays a significant role in oversight, but it is not the only control body within the EU.

• This video will explore other important control organs in the European Union, starting with the Court of Auditors.

The Court of Auditors

• Located in Luxembourg, the Court of Auditors serves as an external control body that audits all institutions managing EU funds.

• It examines all income and expenditure accounts to ensure legality and proper financial management, although it lacks jurisdictional authority over these matters.

Composition and Appointment

• Composed of one member from each EU member state, members are selected from individuals with experience in external auditing.

• Members serve a six-year term appointed by the Council of Ministers after consulting Parliament; this mandate can be renewed.

Leadership Structure

• A president is elected by members for a renewable three-year term to coordinate daily activities and represent the court externally.

• The president also oversees internal divisions responsible for specific reports and opinions.

Functions of the Court

Audit Function

• The Court has two main functions: audit (fiscalizadora) and advisory (consultiva).

Audit Responsibilities

• Its audit function involves verifying both income and expenditure legality before closing budgetary accounts based on accounting documentation.

• It assesses operations against principles of effectiveness and efficiency across various entities receiving EU funds.

Reporting Mechanism

• The Court produces three types of audit reports: annual, specific annual, or special reports.

• Annual reports summarize yearly activities post-budget closure.

• Specific annual reports focus on financial audits for agencies or decentralized bodies.

Interaction with Other Institutions

Legislative Oversight

• Annual reports are sent to relevant institutions including national parliaments, Council, and European Parliament which exercises political control over EU finances.

Recommendations vs. Decision-Making Power

• While providing recommendations regarding budget execution by the Commission, neither Parliament nor Council has decisive power over these actions.

Special Reports

Functions of the European Court of Auditors

Overview of Responsibilities

• The European Court of Auditors has a consultative role, allowing it to express observations on the financial accounts of the European Union (EU).

• It can issue opinions on legislative proposals that impact EU financial management, requiring majority approval from its members for these opinions.

Legislative Consultation

• The Court can be consulted by EU institutions regarding fraud prevention and financial regulations affecting budget execution.

• A significant function is to publish audit results in reports assessing compliance and management within EU agencies.

Other Control Bodies in the EU

Role of the European Ombudsman

• The European Ombudsman investigates complaints about mismanagement within EU institutions, elected for a renewable five-year term.

• They address issues like administrative irregularities, discrimination, and lack of response from institutions.

Complaint Handling Process

• The Ombudsman can act on their initiative or at the request of citizens or organizations based in the EU.

• They receive thousands of complaints annually, primarily concerning the Commission's administration, with a success rate in assisting complainants around 70%.

Investigative Procedures and Recommendations

Addressing Mismanagement

• When mismanagement is identified, recommendations are sent to relevant institutions which have three months to respond.

• If recommendations are ignored, a special report may be drafted for presentation to the European Parliament.

Office for Fraud Prevention (OLAF)

Establishment and Purpose

• OLAF was established in 1999 following serious allegations against commissioners regarding misappropriation and negligence.

• It operates under the responsibility of a Commissioner focused on taxation and fraud prevention but lacks judicial powers.

Investigative Authority

• OLAF conducts internal investigations into fraud affecting the EU budget while coordinating with national authorities for technical support.

Addressing Illegal Use of Funds and Professional Misconduct

Focus on Irregularities in Procurement Processes

• The discussion highlights the fight against illegal use of funds, particularly concerning non-existent products and evasion of customs duties by importers.

• Emphasis is placed on addressing professional misconduct, especially in relation to bidding processes and conflicts of interest.

• The conversation also touches upon issues related to information leaks during European Union procurement tests.

Oversight Mechanisms within Institutions

• Institutions are equipped with numerous control bodies aimed at ensuring significant supervision over areas requiring it.