The EU’s financial watchdog has warned that the estimated level of error in EU spending “remains too high.”
This, it says, matters for citizens, because “weak spending checks can undermine confidence that funds reach eligible projects and deliver the intended results.”
“It also matters for policy makers,” adds the European Court of Auditors, as negotiations are continuing on the EU’s next long-term budget for 2028-2034.
The ECA is now urging policy makers to ensure that the new budget model being discussed “does not repeat the weaknesses” it says were identified in the Recovery and Resilience Facility (RRF), the main pillar of the EU’s pandemic recovery package.
The Court said, “The new model would largely mirror the RRF.”
The ECA also cautions that the EU’s growing debt could put increasing pressure on future budgets and policy choices.
The auditors, in their annual report which was published on 8 October, conclude that the EU’s 2025 accounts give a “true and fair view” and that revenue transactions are error-free.
However, the estimated level of error in EU spending rose to 3.8 %, from 3.6 % in 2024. They also found irregularities in the €45.4 billion spent under the RRF.
They also identified weaknesses in the design of milestones and targets, gaps in the Commission’s monitoring, and persistent problems with the reliability of member states’ control systems.
The auditors therefore issued a qualified opinion on RRF expenditure
“Ambitious budgets demand equally ambitious safeguards”, said ECA President Tony Murphy.
“If the EU moves to a new budget model where financing is no longer linked to costs, we must learn from experience and address what has not worked before, so that EU funds deliver the intended outcomes for citizens.”
On Thursday, the European Commission responded to the report by issuing a statement.
An EC spokesman said, “The Court of Auditors gives the EU’s annual accounts a clean bill of health for the 19th consecutive year. The ECA confirmed that the collection of EU revenues was free from material error.
“In a context of geopolitical uncertainty, stronger global competition and ongoing conflicts, including the continuing Russian war of aggression against Ukraine, the EU budget remained a key tool for delivering on the Union’s priorities.”
“The Commission notes the ECA’s adverse opinion on the regularity of spending under the multiannual financial framework. The ECA’s estimated error rate is 3.8%, comparable to the one of last year at 3.6% and significantly lower than in 2023 (5.6%) and in 2022 (4.2%).
“An error does not automatically mean fraud or waste. Most errors and irregularities are non-fraudulent in nature, and the projects concerned continue to deliver positive results in line with the EU’s policy objectives.
“The Commission and the ECA play complementary roles in safeguarding the transparent and accountable use of EU funds. However, their estimates of the error rate are not directly comparable due to their distinct mandates,” added the EC spokesman.
