Brussels: The estimated level of error in spending from the EU budget has decreased, but it remains a concern, according to the European Court of Auditors (ECA). In their annual report, published today, the auditors also highlight risks posed by the growing burden from borrowing obligations and the implications of these for future EU budgets and action.
According to Emirates News Agency, against the backdrop of the current discussions on the shape of the next EU budgetary period from 2028, the auditors are calling for a stronger focus on performance measurement, transparency and accountability.
‘While the reduction in the level of error is a step forward, there are still too many irregularities across EU spending,’ said ECA President Tony Murphy. ‘These are down to persistent weaknesses in oversight and accountability structures. As the post-2027 EU long-term budget takes shape, policymakers should draw lessons from our findings to ensure the sustainability and transparency of future EU budgets.’
For the period from 2028 to 2034, interest payments could reach nearly £74 billion. To safeguard the sustainability of future EU budgets, the growing burden of borrowing-related obligations needs to be seriously considered, the auditors stress, reminding the importance of solid guarantees and the need to ensure sufficient resources for the implementation of EU programmes.
The annual report also draws attention to how borrowing may increase risks for future EU budgets. By 2027, outstanding EU borrowing could surpass £900 billion, the auditors warn, nearly ten times the level before the EU’s NextGenerationEU (NGEU) pandemic recovery package was launched in 2020.