Managing conflict of interests for better use of EU funds

On 10 April 2019, the Directorate-General for Budget organized a conference focused on managing conflict of interests. The 2018 Financial Regulation strengthened the conflict of interests rules applicable to the Member States’ authorities implementing EU funds. To support effective implementation of the new rules, the conference provided a platform for more than 400 participants to exchange views and best practices.

The European Commissioner for budget and human resources Günther H. Oettinger said: “Managing conflict of interests in an effective and transparent way is essential to ensure a sound financial management of EU funds and to secure the trust of EU citizens, trust in how we manage their taxpayer’s money”. Speakers and participants came from national managing, certifying and audit authorities, from the Member States and the OECD. Representatives from other EU Institutions (European Parliament, Council, European Court of Auditor) were also present. They discussed various topics, including: the new Article 61 of the 2018 Financial Regulation dealing with conflict of interests and its implications for shared management, how to identify and address conflict of interests, practical experience with the new rules, lessons learned and an outlook to the future. They underlined the link between good management of conflict of interests and better use of EU funds. Furthermore, they highlighted the fact that conflict of interests management is an essential part of effective internal control systems. The European Commissioner for budget and human resources Günther H. Oettinger gave a keynote speech and a representative from the OECD explained to the participants the OECD best practices on conflict of interests. Finally, Gert Jan Koopman, Director-General for budget closed the conference.

Background

The new Financial Regulation that sets out all the rules and procedures for implementing the EU budget entered into force in August 2018. The rules were reduced by half, while all financial mechanisms have now been integrated in a single rule book allowing for easier access to EU funding, simpler implementation and sharper focus on results. The new architecture makes them more user-friendly for both, those receiving EU funds and those managing the money at EU, national and local levels. This significant reform addresses the main concerns expressed during EU-wide public consultations and delivers on the Commission’s priority to simplify procedures, cut red tape, increase transparency and shift the focus towards achieving results and adding European value.

Financial Regulation 2018

Financial Regulation 2018 Factsheet