European Court of Auditors

Selim Ibraimi- We have heard a lot about financial control (auditing) in recent years. The term “audit” is foreign. It relates to financial procedures to control the good and bad in an institution. Usually, auditing comes from high levels of government agencies that are legally obliged to do so. Even in the Balkans, we have audit offices, whether they work well or poorly, the issue must be followed. The Balkan states want to be similar to EU countries. Therefore, auditing must be carried out according to EU standards. In the EU, there is the European Court of Auditors (ECA). Its mission is to audit EU funds. The purpose is to ensure these funds have been collected and used correctly.
Good financial management is important. It provides a fair and worry-free audit. This applies to all institutions, whether state or private. We should note something when we discuss the College of the European Court of Auditors of the EU. This college consists of individual members. An EU member state appoints each member. The European Court of Auditors was established in 1975 in Luxembourg. It is one of the seven EU institutions. Its creation was based on the 1975 Budget Treaty. The founding document further states that “The European Court of Auditors aims to assess the economy.” It evaluates the efficiency and legality of EU actions. It works to ensure regularity and improve accountability. It also aims to enhance transparency.

The European Court of Auditors cooperates well with the member states. These members are part of the International Organization of Supreme Audit Institutions (INTOSAI). When financial experts suspect financial irregularities, they are required to inform the European Anti-Fraud Office (OLAF). In October 2024, the European Court of Auditors reported on the 2023 EU budget, which had €240 billion. Errors in this budget had risen to 5.6%. In 2023, the European Court of Auditors reported 20 cases to OLAF. The European Court of Auditors also reported that the EU’s flagship €1.5 billion defense industry program (EDIP) does not have enough budget to meet its objectives. The European Court of Auditors issues mixed opinions in areas as diverse as the food industry.

In a recent assessment, the European Court of Auditors claimed that European consumers are at risk. They may be misled by a growing number of confusing and misleading food labels. In the Balkans, audit offices are politically and financially motivated. This is due to the previous system and the challenges in building free and accountable institutions. Thus, the future of this field is in a very bad situation. Therefore, as countries aspire to join the EU, they also need to reform their state audit agencies. Audit institutions in different countries have different names. In North Macedonia, it is called the State Audit Office. In Germany, the institution is called the Bundesrechnungshof. Meanwhile, in the US, the responsible institution is called the US Government Accountability Office (GAO).
While the political struggle has continued in the US, the current Department of Digital Services has changed its name. It is now called the Department of Government Efficiency (DOGE). This department is trying to play a greater role in government finances. They are investigating the abuse of American taxpayers’ money. Ultimately, countries must have high-quality audit offices. These offices should represent the rule of law and financial justice. The current President of the European Court of Auditors is Tony Murphy, who took office in the fall of 2022.

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