Stringent rules binding member states on the distribution of EU funds are to be introduced by the European Commission, which is also planning to cut red tape to make the money more readily available.
The EU executive yesterday presented proposals that strive to strike a balance between simplifying measures and ensuring effective control of taxpayers' money.
The move comes as the Commission's spotlight shines on Malta's mismanagement of its EU educational programmes.
However, a Commission spokesman assured The Times the proposals had nothing to do with its temporary suspension of funds for the programmes and the timing was just coincidental.
As some 80 per cent of the EU budget is spent at a national level, the Commission is proposing steps to improve member states' accountability and the way they manage the funds.
According to the proposals, national paying agencies in member states will now be required to issue "declarations of assurance" on EU funds subject to independent audits. Essentially the declaration means a certificate that an entire annual budget can be accounted for.
At the same time it should become less complicated to access these funds in the future as the Commission wants to cut bureaucracy.
Though six years have passed since joining the EU, many in Malta still find it difficult to gain access to the funds particularly due to the numerous documents and the interminable pages they need to fill in.
The EU executive is proposing several measures aimed at cutting costs and the workload caused by existing procedures.
For example, a company that applies for a contract to be awarded by the Commission has to submit a whole list of documents and is obliged to resend the same information with every new application. From now on, part of this information will be retrieved from previous documents.
The Commission is also proposing scrapping the obligation for beneficiaries to open a special bank account into which EU funds will be paid and to pay interest on these payments.
The proposals recommend increasing the ceiling below which simplified procedures apply to €50,000 from €25,000.