The European Court of Auditors warned that the European Commission's proposed overhaul of the EU's long-term budget could make it more difficult to track public money and increase the risk of misuse. President Tony Murphy stated that greater spending flexibility and consolidating funds into single pots would hinder oversight.
The EU's ability to effectively monitor and control its vast budget is crucial for ensuring taxpayer money is used efficiently and without fraud. Changes that reduce transparency could expose the bloc to greater financial risks and undermine public trust in its spending mechanisms.
The European Court of Auditors (ECA) has warned that the European Commission's proposed changes to the EU's long-term budget could make it more difficult to track public funds and potentially increase the risk of corruption and misuse. ECA President Tony Murphy stated that the plan to grant member states greater spending flexibility and consolidate funds into larger pots would obscure oversight.
Murphy explained that the proposed model, which would allow countries to shift money between objectives like migration, agriculture, and regional development, amounts to a form of self-policing. He expressed concern that this flexibility comes at a cost to transparency, making it harder to ensure public money is spent as intended. The ECA's latest report indicated that errors affected an estimated €5 billion in EU budget transactions last year, a figure Murphy warned might become even harder to estimate under the new system due to varying national auditing practices.
In response, the European Commission defended its proposal, asserting that fundamental control principles would be maintained and that national authorities are capable of managing the funds. The Commission also reserved the right to request corrections or amendments to national plans if necessary. A significant proposed change involves integrating the Common Agricultural Policy (CAP) into a broader fund for National and Regional Partnership Plans, which Murphy believes will further complicate monitoring EU funds when they are merged with national budgets.
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