The European Court of Auditors (ECA) released its revision of the 2024 EU budget, noting a good step in limiting resource waste and calculating the error rate. However, they and the Commission are in talks to create better calculation standards and avoid future disputes.
The margin of error fell from 5.6% in 2023 to 3.6% in 2024, a significant step according to ECA. The error rate does not usually indicate fraudulent or ineffective activity; instead, it suggests that expenditure is not fully compliant with the applicable rules. Reacting to ECA’s revision, the Commission highlighted the differing aims of the two institutions when revising the budget and noted how both have distinct approaches and methodologies in their calculations.
However, the two institutions are committed to identifying some areas where they can align their methodologies to avoid further discrepancies. They also agree on several areas that may need improvement in order to ensure a stronger protection of the EU budget.
As part of this push for more transparency and efficiency, the Commission pledged to keep leaving the final level of error below 2% for calculations on cost-based programmes after their end. This pledge was already fulfilled last year, but the Commission wants to make it a more permanent fixture. For performance-based programmes, the Commission plans to keep the focus on governance systems from member states. This system has already been working well with performance-based programmes like the Common Agriculture Policy (CAP).
Other preventive and corrective tools will continue to be used by the Commission. In 2024, the Commission and member states’ usage of those tools amounted to €2.66 billion. For the future budget cycle, the Commission is adding what it calls “robust and harmonised audit and control rules” that, in its view, should maintain the high level of security on the EU budget while simplifying the disbursement of funds.
