Mr Niclas Herbst (EPP, Germany), Chair of the Committee on Budgetary Control, issued the following statement on the Annual report 2023 by the European Court of Auditors (ECA).

"The European Court of Auditors' report presents a mixed assessment of the Commission’s use of funds. While cohesion policy is generally considered a success, it remains vulnerable to errors, and the combination with the COVID-19 recovery funds (RRF) is overwhelming for many member states.

The tracking of debt-financed RRF funds is insufficient, and the Court has identified several weaknesses in reporting and control mechanisms. The ECA also notes that the goals and milestones are too vaguely defined, a concern I fully share. The increasing interest burden is particularly troubling. Debt is incurred quickly, yet interest payments are already straining the current EU budget, and repayment is only set to begin in 2028. This must be considered in light of current calls for new debt.

Many funds have remained unspent. Therefore, we need clearer and simpler rules, not just more debt.

To prevent fraud and protect the EU’s financial interests, EPPO, OLAF, and Europol must be strengthened. The Parliament’s oversight rights must also be upheld."

Background

The presentation of the European Court of Auditors (ECA) Annual Report on Wednesday, 10 October, kicked off the scrutiny of the EU’s 2023 accounts by the European Parliament. In the report, ECA issues an opinion concerning the reliability of the accounts, and several opinions on the legality and regularity of the transactions underlying the accounts. Over the next months, CONT Committee will hold hearings and analyse relevant documents to assess the way the Commission and other EU institutions have managed the 2023 EU budget. The scrutiny will result in the annual “discharge” votes in spring 2025.