A Stowaway in Unchartered Waters? Financial Accountability of the New EU Economic Governance and the European Court of Auditors

Whereas traditional conceptions of financial accountability focus almost exclusively on the financial management of the EU budget and its control by the European Court of Auditors (ECA), new and innovative solutions for coping with economic and financial crisis challenge the traditional paradigm of accountability. EU institutions have ventured into the unchartered waters of economic surveillance and financial assistance, using public money outside EU budget. From a purely legal perspective, given the limits of its legal competences, the ECA risks being left behind. The scope of the ECA’s audit power is in principle restricted to the implementation of the EU budget, and its consultative function limited to legislative proposals. This affects the way in which the EU budget is agreed and then managed. The ECA’s overall EU legitimacy will be diminished if the financial accountability of EU institutional activity is not ensured. At the same time, the ECA is experiencing its own institutional struggles to redefine its role. It is attempting to adapt to be better able to contribute to a post-crisis paradigm in which proper accountability is placed at the centre of public debate. However, the ECA itself is a prisoner of its own institutional shortcomings as a technical and consultative body, which arguably prevents it from making a more significant impact. At the same time, procedures for internal control and the recovery of funds are often missing or inadequate at national level. This paper reflects on who and how we should work to ensure financial accountability in the EU.