Financial management in the European Union

In 2006, the European Union's (EU) expenditure totalled GBP 72.7 billion, with revenue of GBP 73.9 billion; the UK's net contribution was GBP 2.9 billion.

The European Court of Auditors, for the thirteenth year in succession, did not provide a positive statement of assurance on the legality and regularity of most EU expenditure.This National Audit Office report, "Financial Management in the European Union (HC 480)", examines the state of financial management in the EU.

It is divided into three parts, with appendices: Part One examines the EU budget and the opinion of the European Court of Auditors on the 2006 financial year; Part Two outlines performance on the main expenditure areas; and, Part Three reviews developments in financial management and accountability.