Concerns Over EU Budget Duplication Highlighted by Court of Auditors
The European Union’s budget is increasingly at risk of duplicating payments, as it transitions to a system that prioritizes rewarding reforms instead of merely reimbursing incurred costs. This alarming finding was detailed in a report released on Monday by the European Court of Auditors. This revelation adds to the ongoing debate surrounding the future of Brussels’ substantial financial framework, which amounts to €1.2 trillion over the next seven years and is set to undergo significant revisions starting next year.
Annemie Turtelboom, the head of the audit report, emphasized the seriousness of the issue, stating, “Double funding represents a misuse of EU funds and a waste of taxpayers’ money. Unfortunately, the safeguards currently in place are largely inadequate.”
The auditors specifically criticized the Recovery and Resilience Facility (RRF), a €648 billion stimulus initiative established in response to the COVID-19 pandemic. The European Commission has argued that the RRF reduces bureaucratic hurdles by granting greater autonomy to national authorities. However, Turtelboom expressed concern during a press conference, remarking, “The intended simplification has not materialized; the promise of easing processes has come at the expense of effective financial oversight.”
At a recent conference, Tony Murphy, President of the Court of Auditors, lamented the lack of transparency concerning recovery funds. Often, the final recipients of these funds remain obscured from public view, complicating efforts to verify whether there is any overlap with other EU funding streams. This issue extends to cohesion funding and other financial resources allocated for investments in critical areas such as transport and energy infrastructure, according to the Court’s findings.
The risk of duplication even extends to instances classified as “zero-cost” cases, wherein member states receive EU funds in exchange for implementing reforms that do not incur any direct expenses. The Court cited the example of Malta, which secured RRF funds after committing to adopt an economic specialization strategy—an initiative it was already required to implement a decade prior to qualify for research funding.
This situation poses significant challenges for the EU’s upcoming seven-year financial framework, which, according to leaked documents reviewed by Euronews, the Commission intends to consolidate into a single funding pot. This approach is already stirring controversy within the European Parliament.
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Despite these findings, the European Commission appears largely unperturbed, dismissing many of the auditors’ concerns and asserting that it is primarily the responsibility of member states to identify and prevent instances of duplication. A spokesperson for the EU executive stated that it “disagrees” with the Court’s assertion that there is an increased risk of double funding arising from outcome-oriented instruments like the RRF. The spokesperson further argued that requesting additional checks on zero-cost measures does not align with the “letter and spirit” of the RRF’s foundational legislation.
While the Court claims to have “not identified any specific instances of double funding” within its audit sample, Turtelboom pointed out that an example was mentioned in last year’s annual report, and two additional suspected cases have emerged since the audit was concluded.