The European Union is preparing to shape its next long-term budget, focusing on enhancing impact and accountability. The European Court of Auditors (ECA) has released an analysis highlighting key areas for improvement in the post-2027 multiannual financial framework. These include simplifying the EU budget, increasing flexibility and financing, and ensuring accountability through independent external audits.
In February 2025, the European Commission issued a communication titled “The road to the next multiannual financial framework (MFF),” addressing policy challenges and priorities after 2027. The ECA reviewed this document, offering insights based on their audit experience with EU budgetary revenue and expenditure.
Jan Gregor, the ECA Member responsible for the review, stated: “Reaching an agreement on the next long-term EU budget will require striking the right balance between spending priorities and the resources available to finance them. We identified various opportunities for EU revenue and budgetary design and rules, and believe they can contribute to the decisions to be taken.”
The upcoming budget must address growing demands such as repaying funds borrowed for NextGenerationEU during COVID recovery. From 2028 onwards, repayments are estimated at €25-30 billion annually. Stable revenue streams are essential; new borrowing should involve risk mitigation and clear repayment plans.
Auditors advocate for consolidating financial landscapes with simpler spending rules to enhance efficiency while reducing irregularities. However, they warn that simplification should not compromise accountability or oversight.
A stronger link between EU funds supporting reforms is crucial for addressing structural challenges in member states. Lessons from COVID recovery fund audits emphasize linking funding with results where possible or avoiding systems lacking this connection. Full traceability of funding alongside clear supervision ensures proper accountability.
Independent external audits remain vital for maintaining transparency. The auditors call for a mandate allowing ECA audits on all spending under future budgets down to final recipients, including bodies outside EU legal orders implementing policies.
The MFF sets spending priorities over seven years impacting how effectively emerging challenges are addressed by shaping proposals expected from July 2025 onward as part of ongoing preparations supported by reviews like ECA’s March 2025 report titled “Opportunities for post-2027 Multiannual Financial Framework.”