As much as 30 percent of the annual Norwegian financial contributions to the EU are being wasted on bureaucracy, according to a new study.
The study conducted by PricewaterhouseCoopers (PwC), found that between 10 to 30 percent of the funds that Norway contributes to the EU simply disappears. This is due to inflation and constant fluctuations in the currency rates, and it happens while the EU tries to decide how to spend the money, according to Norwegian newspaper Nationen.
The delay means that several EU projects could be 10 to 30 percent more expensive than initial estimates.
There is a huge potential for improvement on EU’s end in this case, the study concludes.
The study is based on figures from April this year, when less than half of the EU funds were set aside for actual projects. At the time only three percent of the funds had been used.
Representative from PwC, Ivar Strand, has serious doubts as to whether the funds will be used at all if EU doesn’t speed things up.
-There is a lot of work involved in EU’s evaluation process. It is a system that is obsessed with control, and if they don’t speed up things I suspect that they will have difficulties using the money.
The annual Norwegian payments of NOK 10 billion to the EU started in 2004 and will continue until 2009.
Source: Dagbladet
The study conducted by PricewaterhouseCoopers (PwC), found that between 10 to 30 percent of the funds that Norway contributes to the EU simply disappears. This is due to inflation and constant fluctuations in the currency rates, and it happens while the EU tries to decide how to spend the money, according to Norwegian newspaper Nationen.
The delay means that several EU projects could be 10 to 30 percent more expensive than initial estimates.
There is a huge potential for improvement on EU’s end in this case, the study concludes.
The study is based on figures from April this year, when less than half of the EU funds were set aside for actual projects. At the time only three percent of the funds had been used.
Representative from PwC, Ivar Strand, has serious doubts as to whether the funds will be used at all if EU doesn’t speed things up.
-There is a lot of work involved in EU’s evaluation process. It is a system that is obsessed with control, and if they don’t speed up things I suspect that they will have difficulties using the money.
The annual Norwegian payments of NOK 10 billion to the EU started in 2004 and will continue until 2009.
Source: Dagbladet
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