European Court of Auditors

European Court of Auditors. It is the supreme audit institution of the European Union, responsible for examining the finances of the European Union and promoting accountability. The institution operates as a collegiate body of one member from each member state, appointed by the Council of the European Union. Its primary mission is to contribute to improving EU financial management and to act as the independent guardian of the financial interests of the citizens of the Union.

History

The institution was established in 1977 by the Second Budgetary Treaty, following earlier audits conducted by an external audit board. It began operating in Luxembourg the same year. Its status was significantly elevated with the Maastricht Treaty, which came into force in 1993, transforming it into a full EU institution. Subsequent treaties, including the Treaty of Amsterdam and the Treaty of Lisbon, further consolidated its role and independence, integrating it fully into the EU institutional framework.

Organisation and membership

The institution is composed of one member from each of the 27 member states, appointed for a renewable term of six years by the Council of the European Union, after consultation with the European Parliament. Members elect a President from among themselves for a three-year term; the current President is Tony Murphy. The institution is organized into chambers, each responsible for specific policy areas such as agriculture or cohesion policy. The internal administration is managed by a Secretary-General, overseeing a staff of approximately 900 auditors and administrators.

Role and responsibilities

Its central role is to conduct the external audit of the EU budget and the European Development Fund. This involves auditing the Commission's implementation of the budget, examining the accounts of all EU institutions and bodies, and assessing whether financial operations have been conducted in accordance with the principles of economy, efficiency, and effectiveness. It also provides the European Parliament and the Council of the European Union with a Statement of Assurance on the reliability of the accounts and the legality and regularity of the underlying transactions. Furthermore, it publishes special reports on specific budgetary areas and can investigate matters related to fraud against the EU budget.

Reports and opinions

The institution publishes an annual report on the implementation of the EU budget, which forms the basis for the European Parliament's decision on granting the European Commission discharge. It also issues numerous special reports throughout the year on focused audits of specific Directorates-General, programs like Erasmus+, or policies such as the European Green Deal. Additionally, it can deliver opinions at the request of other EU institutions, for instance, on proposed EU legislation with significant financial implications.

Relationship with other EU institutions

It maintains a critical, independent relationship with the European Commission, whose financial management it audits. Its reports are pivotal for the European Parliament, particularly its Committee on Budgetary Control, during the discharge procedure. It also cooperates with the Council of the European Union and regularly briefs the Economic and Financial Affairs Council. While independent, it works alongside national supreme audit institutions through the Contact Committee of the Supreme Audit Institutions of the European Union and cooperates with bodies like the European Anti-Fraud Office in the fight against fraud.

Category:European Union institutions Category:1977 establishments in Europe Category:Organizations based in Luxembourg (city)