New European Commissioner to focus on fraud

The new European Commission that takes office in November will include for the first time a Commissioner specifically dedicated to fighting European Union (EU) fraud and handling audits. New Commission president Jose Manuel Barroso has appointed an Estonian, Silim Kallas, a former prime minister and finance minister to the post. As the Bank of Estonia’s first post-Soviet president, he introduced the Estonian Kroon, pegged to the Deutschmark (now it shadows the euro). His personal probity was subsequently challenged in court over allegations that he was responsible for mishandling a US$10 million investment by the North-Estonian Bank, in which US$8 million was lost. However, in a reply to a European Parliament questionnaire, Kallas stressed that he was “unconditionally cleared”, after the courts “handled (the case) in depth”. His government immediately tightened the supervision of Estonian commercial banks, with Kallas claiming “a central role”.