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Landscape review EU accountability and public audit arrangements

Explore the complex EU accountability landscape and address gaps, overlaps, and deficits in audit and parliamentary scrutiny. Analyze challenges faced by EU institutions and propose strategies for a new accountability equilibrium.

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Landscape review EU accountability and public audit arrangements

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  1. Landscape reviewEU accountability and public audit arrangements Mr. Kevin Cardiff Reporting Member (ECA) Mr. Jacques Sciberras Project team leader ECA Conference, Brussels 14th October 2014

  2. A complex EU accountability landscape • ECA • SAIs, national, regional auditors • Audit Boards and Committees • Private External Auditors • Internal Auditors incl. Cion AUDIT SCRUTINY ECA • Accountability to: • 750+ MEPs • European Council and Council • (10 configurations) • 9,500 national parliamentarians • Regional Governments & Parliaments • >500 million people • Actors • Commission • Parliament • Council • European Council • ECB • ECA • ECJ • Committees • > 40 agencies • EIB & EIF • Partnerships of many kinds • National, regional, local authorities • Beneficiaries – 8 million for CAP alone

  3. Situation EU accountability is a complex, enormous industry… no surprise to hear that there are Gaps, Overlaps, or Deficits

  4. Questions addressed? EU Executive Parliament Audit

  5. 6 areas facing challenges Institutions, bodies and agencies have inconsistent and disproportionate levels of audit and parliamentary scrutiny Intergovernmental activities involve EU institutions, but rely on fragmented scrutiny Europe 2020, European Semester, TSCG, ESM Institutions, Agencies, JUs, ECB, EIB Different groups of MS participating in different policy areas require complex governance and scrutiny structures Particularly for expenditure under shared management frontline governance and scrutiny remains weak at MS level Euro and Eurozone, Schengen area Shared Management in MS Audit limited to stage where funds paid over. Scrutiny depends on quality of partners own governance and accountability systems Strategies, laws and regulations require a comprehensive form of assessment of impact, outcomes and results UN, World Bank, PPPs, 3rd Countries Ex-post assessments, Laws, Regulations, etc

  6. EU response to financial crisis Crisis of confidence Economic crisis Euro crisis Sovereign debt crisis Banking crisis

  7. Impact of crisis response More and new: • bodies and structures with different arrangements • uses of and demands on existing structures • sets of rules • mix of EU and non-EU instruments Public perceptions of EU (and national) systems damaged

  8. 5 tracks for reflection

  9. Way forward A • No simple solutions • Engage actors at all levels: local, member state, regional, EU and more • Address existing problems • Build new initiatives with accountability in mind – use known models where possible

  10. A loss of citizens trust occurs when… ALEU PCEU Powers and Complexity of the EU are out of balance with the Accountability and Legitimacy of the EU

  11. Citizens trust is restored when… PCEU ALEU A NEW ACCOUNTABILITY EQUILIBRIUM

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