Brussels: In a series of votes on Wednesday, Members of the European Parliament (MEPs) approved the budget management for most EU bodies for 2023, with the exception of two. Plenary endorsed the European Commission’s financial management, which oversees more than 95% of EU expenditure, but expressed concerns over structural issues affecting EU financial credibility and policy execution. The decision was made with 412 votes in favor, 245 against, and 5 abstentions.
According to Cyprus News Agency, MEPs highlighted a 5.6% error rate in EU spending, marking the third consecutive year of increased errors. They urged the Commission to develop a comprehensive action plan within four months to address these errors and demanded enhanced fraud detection and audit mechanisms, as well as clearer definitions of milestones and targets. MEPs emphasized the need to prevent double funding and the use of pre-existing projects for the Recovery and Resilience Facility (RRF).
Unpaid commitments reached a record £543 billion in 2023, more than double the EU’s annual budget, raising concerns about potential delays in implementation. MEPs called for more accurate budget forecasting as EU borrowing stood at £458.5 billion by the end of 2023, with expectations of further increases. They warned that rising interest rates and the lack of a repayment plan could threaten fiscal stability and hinder future EU initiatives.
The Parliament also called for full financial transparency for NGOs and other interest groups, urging the Commission to share results of an internal contract screening with Parliament. Registration in the EU Transparency Register and disclosure of main funders should be mandatory for entities seeking access to EU institutions and funding, aligning with EU values and ensuring fund traceability.
Rapporteur for the Commission discharge, Niclas Herbst (EPP, DE), expressed concerns over the transfer of billions of euros to member states under the RRF, highlighting insufficient involvement of Parliament and the European Court of Auditors in oversight. Herbst criticized the use of RRF funds for debt at the expense of future generations and questioned national budget priorities, stating that the RRF should not serve as a model for future financial programs.
MEPs postponed the discharge for the Council, citing a lack of cooperation with Parliament since 2009, and for the EU Asylum Agency, following concerning findings from an investigation by the European Anti-Fraud Office (OLAF) that jeopardized the Agency’s stability, governance, and reputation. These postponed decisions will be revisited later this year for final resolution.
The discharge procedure enables the European Parliament to oversee the EU budget’s implementation, holding institutions accountable for fund management. Based on reports from the Commission and the European Court of Auditors, the Parliament’s Committee on Budgetary Control reviews financial management, addresses irregularities, and conducts hearings with officials, with potential consequences for non-compliance.