The European Court of Auditors has reported that although the estimated error rate in EU budget spending has decreased, significant concerns remain about persistent irregularities and the growing debt burden. In its annual report for 2024, the Court noted a drop in the overall error rate to 3.6%, down from 5.6% in 2023. However, it stressed that this figure still exceeds the 2% threshold above which spending is considered materially irregular.
The auditors found that while EU accounts provide a true and fair view and revenue transactions were free of errors, there are ongoing issues with customs duties due to incorrect or undeclared imports. The report also highlighted irregularities affecting part of the €59.9 billion spent under the Recovery and Resilience Facility (RRF), with an increasing financial impact from these irregularities.
“While the reduction in the level of error is a step forward, there are still too many irregularities across EU spending,” said ECA President Tony Murphy. “These are down to persistent weaknesses in oversight and accountability structures. As the post-2027 EU long-term budget takes shape, policymakers should draw lessons from our findings to ensure the sustainability and transparency of future EU budgets.”
For the sixth consecutive year, auditors issued an adverse opinion on overall EU expenditure due to material and pervasive errors. Irregular payments under Cohesion policy contributed significantly to this result, with an error rate of 5.7% in 2024 compared to 9.3% in 2023. Common issues included funding for ineligible projects or costs and failures to comply with public procurement rules.
Regarding RRF expenditure, auditors gave a qualified opinion after finding that six out of twenty-eight grant payments did not meet required rules or conditions. They also pointed out design weaknesses in milestones and targets as well as problems with reliability of information provided by member states.
The report raises concerns about increasing pressure on future EU budgets from borrowing obligations. Outstanding borrowing could exceed €900 billion by 2027—almost ten times higher than before the NextGenerationEU recovery package began in 2020—and interest payments during this period may more than double initial forecasts by reaching over €30 billion; between 2028 and 2034, interest payments could approach €74 billion.
Each year, auditors review whether EU accounts are reliable and if transactions comply with relevant rules; their estimate of errors does not refer to fraud but rather non-compliance with regulations. However, they identified nineteen cases of suspected fraud during their work and reported them to authorities.
Tony Murphy emphasized: “As the post-2027 EU long-term budget takes shape, policymakers should draw lessons from our findings to ensure the sustainability and transparency of future EU budgets.”