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Monday, 9 March, 1998, 18:06 GMT
Plan to reduce European Union fraud

The British Chancellor of the Exchequer , Gordon Brown, has said Britain, which currently holds the European Union presidency, is to ask all member nations to outline how they've spent funds received from the EU, in an attempt to reduce fraud.

Mr Brown was speaking after a meeting of EU finance ministers in Brussels was presented with a report alleging widespread mismanagement of Union funds.

The report said two-billion pounds were overpaid in farm subsidies and that regional aid had been systematically misused.

A BBC correspondent in Brussels says the new procedures may to lead to some improvement, but the EU budget is so large that it'll be impossible to cut out fraud completely.

From the newsroom of the BBC World Service

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