EU defends hundreds of billions of unspent internal aid

(BRUSSELS) - European Union officials defended the bloc Tuesday from newspaper accusations that hundreds of billions of euros intended for use aiding the bloc's poorer parts were lying idle.

The Financial Times said the EU had spent just 10 percent of 347 billion euros (456 billion dollars) allocated between now and 2013 because states were unable to provide matching 50-percent funding for chosen projects.

"If national, local and regional authorities don't have the money, we will not ask for payment from member states," said a European Commission spokeswoman who insisted there is "no such thing as a European bank account where money stands idle."

States can simply "use it for something else," she said, adding that "slow take-up" at the start of multi-year programmes is "quite normal."

EU cohesion funds, a core element in the bloc's hotly-contested budget, are allocated for seven-year spending cycles, the current one running out in 2013.

The spokeswoman said that in 2009, states were still spending money set aside in the previous cycle that ended in 2006.

Asked about proof of irregularities and fraud, the spokeswoman admitted knowledge of "regrettable" instances, but said fraud accounted for only 0.2 percent of the total monies and errors five percent.