The European Court of Auditors approved the EU executive body’s 2007 cash flows for the first time in 14 years, describing accounts a 'fair presentation' of the financial position.

However, the court criticised as 'unacceptable' spending errors in all but two of the seven policy areas covered under the €114bn (£93bn) budget, the Financial Times reports.

One of the biggest problems was the difficulty assessing whether final beneficiaries such as farmers and promoters operating EU-funded projects were eligible for the subsidies and overheads awarded to them.

Auditors were particularly concerned about the €42bn cohesion budget – covering regional policy, social affairs and rural development – which exposed errors in at least 11% of its spending when the acceptable margin for mistakes is below 2%.

Further reading:

Dutch refuse to sign off EU accounts

Read the Financial Times story