He explained that decisions were made at the beginning of each monitoring round as to whether the budget could be spent, which ensured extra money went elsewhere to health and education.

BBC: Enterprise Committee

Chairman Andy Fergusson said new financial monitoring systems had flagged up the potential budget issue.

BBC: Dumfries and Galloway social services new deficit found

Others want to give the budget committees in national parliaments a clear role in monitoring and applying the fiscal compact.

ECONOMIST: The euro crisis: An ever-deeper democratic deficit | The

Mr Fergusson said a new financial monitoring system was designed to provide an early warning of budget problems.

BBC: Dumfries and Galloway social services new deficit found

Cooler heads say that the monitoring system (which costs relatively little in the context of the federal budget) has its uses.

ECONOMIST: Bad air from Cuba

The auditors say the European Commission, which allocates EU budget funds, should ensure that such projects undergo a thorough needs assessment first, and that proper monitoring for cost-effectiveness is done.

BBC: EU auditors criticise energy efficiency projects