Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-06-15-Speech-4-012"
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"Mr President, ladies and gentlemen, the Commission would first like to thank the rapporteur, Mr Bösch, for the way in which he has dedicated himself for years to the fight against fraud, and to protecting the financial interests of the European Union.
The report justifiably took up the particular problem of VAT fraud in the Community and the significant losses accruing to the Member States. All efforts aimed at intensifying cooperation between Member States and between the Commission and the Member States deserve maximum support. The proposed procedure dealing with mutual administrative assistance, to which Parliament has given a positive response, is an important initiative.
When will OLAF, as a unit of the Commission, be able to provide the Member States with added value? This initiative falls neatly into the framework of the communication on a European strategy for the fight against tax losses, adopted by the Commission on 31 May. It states that the level of tax losses is becoming an increasing concern, and that the Member States cannot act effectively in isolation. The aim of the Commission is to improve the mechanisms for practical cooperation between individual Member States and between the Member States and the Office.
As you can see, there are a whole series of important legal measures under preparation at present, or under discussion with the Council and Parliament. At many different levels, all of these measures will strengthen the protection of financial interests and secure improved cooperation between various bodies. The area of protection for financial interests is an area of shared authority, and the Member States have a decisive role to play in making it succeed. The Commission and OLAF hope that Parliament will continue to be a powerful ally in this project. An effective structure for combating the misuse of European finances is fundamental to winning the trust of citizens. The trustworthiness of our official bodies is all the more important now that it has been so difficult to reach agreement on the new financial perspectives.
Allow me to express a view on the individual amendments. The Commission can accept Amendments 1, 3, 4 and 5. In the case of Amendment 2, on Eurostat, the Commission submitted a situation report on 12 April 2006 dealing with the Eurostat affair. The report indicated that the range of measures approved should guarantee that similar discrepancies will not recur. OLAF has completed all but one of the inquiries. Concerning the financial effects of the discrepancies and reimbursement of the debts, the Commission is not able at the moment to provide any information additional to that which is in the report. Some matters are still under discussion in national courts, and it is therefore not possible to provide more exact information.
In the case of Amendment 6, the Commission believes that the internal system for excluding firms which it currently has in place answers this demand sufficiently. This system is available and is maintained by all of the Directorates General in the Commission and not just by the Directorate for Research. The idea of a blacklist as an instrument for prevention is really promising. For this reason, the Commission has proposed within the framework of the revised Financial Regulation to extend the database of excluded firms so that Member States can use it too, along with the other partners involved in administering Community funds. The problem with this amendment from the perspective of the Commission is not its abstract internal essence, but the fact that it is only a partial proposal within the framework of a wider system which is under development, which is effective, and whose further development is still an open question, in the opinion of the Commission.
We have here one of the most positive reports on this area in recent years. The report is of course a reflection of reality. The Commission welcomes this constructive report and supports most of the views expressed in it.
I would like first of all to mention the statistics and trends in respect of discrepancies reported by the Member States in 2004. We must always guard against drawing hasty conclusions from the statistics relating to these reports. Member States that report large numbers of cases are generally trying harder to meet their obligations than the States reporting fewer cases. The sums are also estimates and do not reflect budgetary losses, since correctional measures are implemented immediately.
In the areas of own resources and agriculture the sums are falling, as has already been stated, while in the area of structural activities they are increasing. As Parliament has emphasised, the IACS system has had great success in the area of agriculture. The Commission is striving not only to reduce the number of discrepancies and the steps applying to them, but has also undertaken measures in 2005 through which some of the old Member States have improved the way they report discrepancies, through the use of electronic systems.
I would now like to focus briefly on the contents of the report. Concerning the reform of OLAF, the European Anti-Fraud Office, the Commission adopted a proposal on 24 May 2006 to amend Regulation 1073/1999, under which OLAF was established. What are the main elements of the OLAF reform? It is necessary first to state that, in respect of carrying out investigations, the Office is an operationally independent unit of the Commission, and its existing structure is functioning well. The Court of Auditors confirmed this fact in its special report on the establishment of the Office. In this context the proposed legislation would make the investigative activities of the Office and its political administration more effective, while respecting procedural and individual rights during investigations and transfers of data relating to investigations, and also retaining the independence and confidentiality of the Office’s investigative activities. The Commission believes that this is a well-balanced proposal, the aim of which is to improve the way the Office operates, and the effect of which really will be to bring about such an improvement.
The Commission hopes that Parliament will be able to give some thought to this proposal as soon as possible, as the first discussions have already taken place in the Council within the framework of the relevant work group.
Turning to the fight against cigarette smuggling, I would like to say a few words on this subject, particularly on the agreement against cigarette smuggling that has been concluded with Philip Morris International. The Commission would like to thank Parliament for its unstinting support in this area. The Commission is delighted that 24 out of the 25 Member States have already backed the agreement, the only one not to do so being the United Kingdom. This fact testifies to the success and importance of an agreement which is the first in this area and which establishes cooperation between the authorities and industry.
The figures for seizures of Philip Morris International cigarettes are of particular significance to OLAF and the Member States. To give you some idea – in 2005 OLAF and the Member States notified Philip Morris of almost 300 individual seizures, amounting to more than 400 million cigarettes. Of this total, 85-90 % were counterfeit. The seizures allow us to identify key areas in the fight against smuggling and counterfeiting, and this is extremely important. In practice the agreement has shown itself to be a highly effective instrument in the fight against cigarette smuggling. The Commission hopes that it will serve as a model for other cigarette producers.
The report mentioned the issue of how to use the resources obtained. The Commission intends to put forward a proposal in the near future on changes to the Pericles Programme over the years 2007–2013, which will give an important place to the fight against smuggling and counterfeiting as an objective meriting the allocation of financial resources."@en1
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