European Court of Auditors : PRESS BRIEFING: Audit report - Financial assistance to countries in difficulties

The European Court of Auditors (ECA) will publish its special report on the financial assistance provided to countries in difficulties at 11.30 a.m. on Tuesday 26 January 2016.

The ECA Member Baudilio Tomé Muguruza responsible for the report will present its key messages at a technical briefing for journalists that will be held at 09.30 a.m. at the International Press Centre in the Residence Palace, Brussels.

Time: TUESDAY 26 January 2016, 09h30

Venue: International Press Centre, Residence Palace, the Salon room, Brussels

BACKGROUND INFORMATION

Seven years ago, Europe faced a financial crisis which turned into a sovereign debt crisis. The sovereign debt crisis was a consequence of various factors, including weak banking supervision, poor fiscal policies, and the difficulties experienced by large financial institutions (and the consequent bailout costs borne by the general public). The crisis swept across EU Member States in two waves, first affecting the non-euro area countries in 2008-2009 and later spreading to the euro area itself. In total, eight EU Member States were forced to seek macro-financial assistance.

The EU auditors examined whether the Commission appropriately managed the financial assistance programmes. The audit covered the Commission's management of financial assistance provided under the balance-of-payments facility and the EFSM, for which the Commission borrowed on the capital markets using the EU budget as guarantee. The audit encompassed the financial assistance paid to Hungary, Latvia, Romania, Ireland and Portugal. The auditors also examined the Commission's cooperation with its partners, the ECB and the IMF.