300 / 448
GAZETTE
OCTOBER 1996
Keeping an eye on
Euro cash
E v e r y y e a r t he E u r o p e an C o m m u n i t y
l o s es m i l l i o ns of p o u n d s t h r o u gh
f r a u d . H e r e J u d g e P a ul C a r n e y
e x p l a i ns h o w A s s o c i a t i o ns of
E u r o p e a n L a w y e r s in e v e r y M e m b e r
S t a te c a n h e l p to p r o t e ct t he
C o m m u n i t y ' s b u d g e t.
T h e e s t i m a t es of f r a u d p e r p e t r a t ed o n
the E u r o p e an C o m m u n i t y h a v e r a n g ed
f r o m 1 % of its b u d g e t to 1 0% - n o
d o u b t t he t r u th lies s o m e w h e r e in
b e t w e e n, b ut p r o b a b ly t o w a r d s t he
l o w e r e n d of t h at s c a l e. W h a t is n ot in
d o u b t is t he e n o r m o u s v u l n e r a b i l i ty of
t he C o m m u n i t y ' s m a s s i ve b u d g et to
b e i n g f r a u d u l e n t ly s i p h o n ed o f f.
T h e r e a re n o E u r o p e an p o l i c e m e n,
p r o s e c u t o r s, c r i m i n al c o u r t s,
m a g i s t r a t es o r p r i s o n s. T h e i r f u n c t i o ns
in r e l a t i on to C o m m u n i t y f u n d s m u s t
b e c a r r i ed o ut by t he n a t i o n al
a u t h o r i t i es w h o m u s t b e m a d e a w a r e of
t h e ir r e s p o n s i b i l i t i es in t h is r e g a r d.
I N 1 9 8 9, t he E C ' s D i r e c t o r a te G e n e r al
f o r F i n a n c i al C o n t r ol ( k n o wn as
D G 2 0 ) o r g a n i s ed a s e m i n a r o n t h e
legal p r o t e c t i on of f i n a n c i al i n t e r e s ts
of t he C o m m u n i t y.
T h e m o s t p r a c t i c al r e s u lt of t he
s e m i n a r w a s t he e s t a b l i s h m e nt in e a c h
M e m b e r S t a te of an A s s o c i a t i on of
E u r o p e a n L a w y e r s. A s t he titles of the
A s s o c i a t i o ns h a v e c o m e to us by w a y
of t r a n s l a t i o n, t h ey t e nd to be
c u m b e r s o m e. T h e Irish A s s o c i a t i o n,
f o u n d e d u n d e r t he P r e s i d e n cy of D r.
R o b e r t C l a r k of U C D is k n o w n as t he
Irish A s s o c i a t i on f o r t he P r o t e c t i on of
t h e F i n a n c i al I n t e r e s ts of t he E u r o p e an
C o m m u n i t i e s.
T h e m o s t i m p o r t a nt p r a c t i c al f u n c t i on
c a r r i ed o ut b y t he A s s o c i a t i o ns is, in
m y v i e w , c o m m i s s i o n i ng s t u d i e s.
W h e n it i n t e n ds to i n t r o d u ce a
D i r e c t i ve in t he f i n a n c i al c o n t r ol a r e a,
t he C o m m i s s i o n h a s c o m m i s s i o n ed
s t u d i es f r o m e a c h of t h e n a t i o n al
a s s o c i a t i o n s. T h e a u t h o rs of t he
n a t i o n al s t u d i es m e e t f r o m t i me to
The Hon. Mr. Justice Paul Carney
t i m e a n d t he c o m m o n g r o u n d b e t w e en
t he M e m b e r S t a t es is i d e n t i f i e d. M o r e
i m p o r t a n t l y, p e r h a p s, t he o b s t a c l es to
h a r m o n i s a t i on c o n t a i n ed in t he
n a t i o n al l a w s of t he M e m b e r S t a t es are
a l s o i d e n t i f i e d.
T h e first s t u dy r e l a t ed to t he l aw o n
w h i s t l e - b l o w i ng a n d s o u g ht to i d e n t i fy
t h e c o n s t r a i n t s, if a n y, w h i c h m i g h t
e x i st in t he M e m b e r S t a t es a g a i n s t, f o r
e x a m p l e , a C i v il S e r v a nt m a k i n g
p u b l i c a f r a u d u l e nt p r a c t i ce a n d a n y
p r o b l em of a d m i s s i b i l i ty in e v i d e n ce
w h i c h m i g h t a t t a ch to s u ch a
d i s c l o s u r e.
T h e s e c o n d s t u dy c u r r e n t ly b e i n g
u n d e r t a k en on b e h a lf of t he Irish
A s s o c i a t i on l o o ks at t he l aw of e a c h
M e m b e r S t a te w i th r e g a rd to
c o m p r o m i s e s e t t l e m e n ts as an
a l t e r n a t i ve to c r i m i n a l, civil or
a d m i n i s t r a t i ve s a n c t i o ns w i th
r e f e r e n c es to f r a u d in r e l a t i on to
C o m m u n i t y e x p e n d i t u re in t he c o n t e xt
of b o t h t he c o m m o n a g r i c u l t u r al p o l i cy
a n d s t r u c t u r al f u n d s .
T h e t h i rd s t u d y, n o w in its e a r ly
p l a n n i ng s t a g e, will b e t he m o s t
i n t e r e s t i ng a n d p e r h a ps p r o b l e m a t i c al
f r o m t he p o i nt of v i e w of t he Irish
C o n s t i t u t i o n. It will c o n s i d er t he
f e a s i b i l i ty of t he c r e a t i on of w h a t is
b e i n g t e r m e d a " E u r o p e an J u d i c i al
S p a c é " in w h i c h t he m a g i s t r a t es of
t he M e m b e r S t a t es will b e a b le to
p u r s u e t h e ir i n v e s t i g a t i o ns w i t h o ut
h a v i n g to s t op at l i m i ts of t h e ir
n a t i o n al b o r d e r s. M o r e o v e r,
s e a r ch w a r r a n ts a n d O r d e r s f o r
D i s c o v e ry w o u l d h a v e d i r e ct e f f e c t
a n d e n f o r c e a b i l i ty t h r o u g h o ut
t he U n i o n.
A t r ue E u r o p e an l aw e n f o r c e m e nt a r ea
will o n l y g r a d u a l ly c o m e to p a ss a n d
t h e e s t a b l i s h m e nt of c o m m o n r u l es f o r
j u s t i ce a n d h o m e a f f a i rs a m o n g t he 15
M e m b e r S t a t es will t a k e t i me to
a c h i e v e. In t he m e a n t i m e, t he N a t i o n al
A s s o c i a t i o ns of E u r o p e an L a w y e r s
p r o v i d e a u n i q u e i n f r a s t r u c t u re of
n e t w o r k i ng b e t w e e n t h o se c h a r g ed
w i th a c h i e v i ng it.
The Hon. Mr. Justice Paul Carney is a
Judge of the High Court and President
of the Irish Association for the
Protection of the Financial Interests of
the European
Communities.
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I R I S H
D O C U M E N T
E X C H A N G E
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