Oireachtas Joint and Select Committees

Wednesday, 15 December 2021

Joint Oireachtas Committee on European Union Affairs

Engagement on EU Cohesion Policy and Ireland: European Commission

Mr. Hugo Sobral:

Yes, it is true that the Court of Auditors has lately expressed some concerns with the way the expenditure will be done in the coming years. That is not just specifically on the BAR; it is also on other decisions that we have taken. For instance, the committee may be aware that we adopted a programme last year, the coronavirus risk investment initiative, which has totally flexibilised Commission policy on the way funds can be spent. Basically, we have allowed member states to transfer money between funds and between regions in order to address the problems caused by the pandemic and, indeed, Ireland has made good use of this flexibility. I think 60% of ERDF funds were used to buy personal protective equipment, a situation that was not originally foreseen. The Court of Auditors has expressed some concerns on these extra flexibilities that have been given as a reaction to the crisis and the way this will be controlled and monitored in the future. I think it is a legitimate concern but I also have to say it was a legitimate political decision to act in the way we have acted in basically giving this extra flexibility and this additional margin of discretion.

It is the same with the BAR. With that, we are dealing with a problem that we have never dealt with before - one member state going out from the EU. We do not know what the consequences are and we cannot anticipate how this will unfold. It is only natural that we entrust member states with the possibility to address this and give them the flexibility to address it because they are best placed to assess this impact.

Of course, this does not mean we are neglecting the control and management dimension. We are accountable and we always want EU taxpayers' money to be properly used. We will just have to combine both. It requires an extra effort from member states and from us, but I think the political decisions that underpin this flexibility were totally justified. It is also justified that the Court of Auditors is concerned with a new method and a new way. We need to be rigorous and member states need to understand that with this flexibility comes additional responsibility in making sure the funds are used for what they are supposed to be used for. I hope that, together, we will be able to address that.