European Union Fraud — 19 May 1999

I beg to move,

That this House notes that for four successive years the European Court of Auditors has declined to provide assurance that the transactions underlying payments from the European budget are legal and regular; regrets the failure of the UK Presidency to achieve any concrete measures to tackle fraud and mismanagement in the EU budget; congratulates Mr. Paul Van Buitenen on his courageous action in exposing the incompetence and unwillingness of the European Commission to tackle fraud; condemns the action of Labour MEPs, urged on by the British Government, in seeking to protect the Commission from censure; notes that, despite the vote in the European Parliament to censure the Commission, no Commissioner has yet left office; believes that confidence will only be restored if all existing Commissioners are replaced forthwith; and calls on the Government to ensure that genuine and effective measures to tackle fraud in all of the institutions of the European Union are taken as a matter of urgency.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"welcomes the efforts of the Government to work with fellow Member States and European institutions to crack down on fraud against the EU budget; notes the real practical progress made in this regard by the Government during the United Kingdom Presidency of the EU; welcomes the Chancellor's initiative for a strong head of fraud investigations heading an independent fraud prevention office; welcomes the role played by Labour MEPs in securing the establishment of the Committee of Independent Experts; joins the Government in calling for recent events to be used as an opportunity for root and branch reform of the Commission; calls on Romano Prodi, following his recent nomination as President-elect of the European Commission, to place the fight against fraud at the top of the new Commission's agenda; and believes that the only way of reforming Europe is the Government's strong leadership and constructive engagement rather than the Opposition's weak leadership, division and isolationism."

Question put, That the original words stand part of the Question:--

The House divided: Ayes 178, Noes 326.

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