The European Union's finances are unreliable and its accounting systems are weak, parliament's spending watchdog has found.

In a report released on Thursday the National Audit Office concluded that, for the eighth year in succession, Brussels' books were not in a fit enough state to endorse.

The NAO backed the findings of the independent European Court of Auditors, which last November reported "persistent weaknesses" in the management of the EU's £57.4 billion budget in 2001.

Reformers in the European Commission have been battling to clean up and modernise its huge, supranational finances.

But the NAO's report highlights the daunting task still facing bureaucrats ahead of the enlargement of the Union from 15 to 25 states in May next year.

"My report on the financial management of the EU draws attention once again to continuing problems in the management of funds," auditor general Sir John Bourn said."It is a matter of concern that, for the eighth year in succession, the Court of Auditors has qualified its opinion on the reliability of the accounts."I also endorse the Court's view that the Commission should take urgent, in-depth action to deal with the persistent weaknesses in its accounting systems."

Bourn pressed the government to continue its campaign for the reform of EU finance.

"It is vital that the UK government carries on doing all it can, through the Council of Ministers and its other links in the Community, to support the reform process put into effect by the Commission," he said."We in the NAO will continue to give a high priority to examining how community funds are managed by UK government departments."