The European Court of Auditors has raised concerns over increasing errors in the allocation of EU funds. The error rate in EU spending has climbed to 5.6% in 2023, up from 4.2% the previous year. This escalation comes amid warnings from the Court's President, Tony Murphy, about the dangers of losing public trust.
The errors predominantly occur in the distribution of regional subsidies. Often, member states face tight deadlines to allocate funds from various sources, leading to mistakes. Additionally, a third of the COVID-19 relief payments do not comply with the stipulated guidelines. Some funding objectives were poorly designed, and there are persistent issues with the reliability of data from member states, making some expenditures difficult to trace.
The auditors identified 20 suspicious cases that may involve fraud. The EU's spending last year totaled 191.2 billion euros, with an additional 48 billion euros from the COVID-19 recovery package. The report also highlights 'rising financial risks' due to record debts, primarily from joint bonds issued for pandemic relief. The financial burden is further compounded by aid to Ukraine, which adds to the EU's fiscal strain.
The auditors urge stronger oversight and more stringent controls to prevent further errors. The EU must ensure that funds are used effectively to maintain public confidence and avoid exacerbating financial instability. The European Court of Auditors warns that without addressing these issues, the EU budget and its credibility could face significant challenges.
