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Europaudvalget 2025
KOM (2025) 0373
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EUROPEAN

COMMISSION

Brussels, 27.6.2025

COM(2025) 373 final

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND

THE COUNCIL

on the follow-up to the discharge for the 2023 financial year

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EPORT ON THE FOLLOW

UP TO THE REQUESTS MADE BY THE

UROPEAN

ARLIAMENT IN

ITS DISCHARGE RESOLUTIONS AND THE

OUNCIL IN ITS DISCHARGE RECOMMENDATION

FOR THE FINANCIAL YEAR

2023

Contents

Introduction ................................................................................................................................... 1

Protecting the EU’s financial interests

........................................................................................... 1

Performance of the EU budget and impact of the RRF .................................................................. 6

Transparency of EU funding ........................................................................................................... 7

The Commission’s borrowing activities and new own resources

.................................................. 9

6. Outstanding budgetary commitments

– ‘reste

à liquider’

(RAL) and measures to speed up the

implementation of EU funds ................................................................................................................... 9

Looking ahead .............................................................................................................................. 10

1. Introduction

In 2023, against the backdrop of Russia’s war of aggression against Ukraine, the energy

crisis, natural disasters and economic turmoil, the EU budget remained a source of stability,

resilience, and strategic investments for the benefit of the European public, farmers,

researchers, businesses and regions across Europe and beyond.

On 7 May 2025, taking account of a recommendation from the Council, the European

Parliament decided to

grant discharge to the Commission for its implementation of the

EU budget in 2023.

The Council recommendations and the European Parliament’s resolution

contain more general requests and specific recommendations to the Commission regarding

the implementation of the EU budget.

This report on the follow-up to the 2023 discharge requests summarises the actions taken by

the Commission in response to both: (i) requests made by the European Parliament in the

‘political priorities’ section of its discharge resolution

; and (ii) the main requests made by

the Council in its recommendation on the discharge

. The report is a part of the Integrated

Financial and Accountability Reporting of the Commission. In the last quarter of 2025, the

Commission will issue another, more detailed report that will reply to all specific

recommendations included in the discharge recommendations and resolution.

2. Protecting the EU’s financial interests

The Commission attaches the utmost importance to monitoring the use of EU funds, in

cooperation with national authorities and implementing partners.

European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the general

budget of the European Union for the financial year 2023, Section III

–

Commission, executive agencies and the

ninth, tenth and eleventh European Development Funds (2024/2019(DEC))

–

2024/2019(DEC).

Council recommendation on the discharge to be given to the Commission in respect of the implementation of

the general budget of the European Union for financial year 2023 (6179/24).

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a. Spending in line with EU values, including the rule of law

Rule of law

The Commission is acting on the Parliament’s call ‘to ensure strict and fast implementation

of all elements of the [Rule of Law Conditionality] mechanism when Member States breach

the principles of the rule of law where such breaches affect, or risk affecting, the financial

interests of the Union’

The Commission contributes to ensuring the full and effective use of the

Conditionality

Regulation

to protect the EU budget from breaches of the principles of the rule of law.

For example, Hungary is subject to measures under the Conditionality Regulation for the

protection of the EU budget since 2022, when the Council, on a proposal from the

Commission, adopted two measures: (i) a suspension of 55% of budgetary commitments

from three cohesion policy programmes and (ii) a prohibition on entering into new legal

commitments with ‘Public Interest Trusts’ (‘PITs’) and entities maintained by them for EU

funding under direct and indirect management.

On 13 December 2023, under the procedure set out in the Conditionality Regulation, the

Commission reassessed Hungary’s situation. It found that the risk to the EU budget had

remained unchanged since December 2022, and that the Council’s measures should not be

adapted or lifted. The first tranche of suspended commitments for 2022, corresponding to

approximately EUR 1.04 billion, expired at the end of 2024 and was lost for Hungary.

Similarly, a second tranche of approximately EUR 1.1 billion, corresponding to 2023

commitments, will be lost for Hungary at the end of 2025, if the related measure is not lifted

by then, and this will continue yearly on a rolling basis.

On 2 December 2024, Hungary notified the Commission that it made legislative amendments

to address conflicts of interest in the boards of PITs. However, in its decision of 16 December

2024, the Commission found that the notified legislative amendments do not adequately

address the outstanding concerns. Therefore, the Commission did not propose any lifting or

adaptation of the measure on PITs and entities maintained by them to the Council. The

Commission clearly outlined the adaptations that would be needed to sufficiently remedy the

situation.

The Commission continues to monitor developments in all 27 Member States under the

Conditionality Regulation

as well as through its

annual rule of law report

. Every situation is

assessed individually, and the Commission will not hesitate to take the necessary steps if a

particular situation meets the criteria set out in the Regulation.

Besides the Conditionality Regulation, the Commission has at its disposal two other

important instruments that contribute to protect the EU budget from breaches of the

principles of the rule of law: (i) the horizontal enabling condition on the EU Charter of

Fundamental Rights under the Common Provisions Regulation, and (ii) the milestones and

targets that address rule of law challenges under national recovery and resilience plans

(RRPs).

See paragraph 10

–

2024/2019(DEC).

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The Commission will continue to apply this set of tools and any other instruments at its

disposal. As indicated in the recent Communication on the road to the next multiannual

financial framework (MFF), respect for the rule of law will remain a condition for receiving

EU funds, and the next MFF will include strong safeguards to this end.

EU values

The Commission notes that Parliament finds ‘it is imperative for the credibility of the EU that

the Commission ensures that no EU funds are allocated to individuals or organisations linked

to any kind of terrorist movements or any other movement expressing extremist views,

inciting violence and/or hatred, that are directly in opposition to the European Union’s

fundamental values’.

The recent amendments to the Financial Regulation introduced explicit grounds under EDES

for excluding entities from receiving EU funds if they have been found to engage in activities

that are contrary to EU values. Through the Early Detection and Exclusion System (EDES),

the Commission can exclude entities linked to terrorist financing, terrorist offences or

offences linked to terrorist activities from receiving EU funding.

As regards funding to the United Nations Relief and Works Agency for Palestine Refugees in

the Near East (UNRWA) specifically, on which the Parliament expresses strong concerns in

its discharge resolution, the Commission recalls that in the aftermath of the 7 October 2023

terrorist attack in Israel, it reviewed its entire financial assistance for Palestine, including

programmes with UNRWA.

The review confirmed that UNRWA complied with its legal requirements vis-à-vis the EU,

including the requirement not to support activities that contribute to terrorism financing.

More recently, as set out in the 29 January 2024 Commission statement, UNRWA committed

to (i) allow an audit to be conducted by EU-appointed independent external experts; (ii)

strengthen its Department of Internal Investigations; and (iii) carry out a review of all

UNRWA staff to confirm that they did not participate in the attacks. UNRWA has complied

with these commitments.  

b. Protecting the EU budget from fraudsters

Revenue side

In its 2023 Annual Report, as in the past, the European Court of Auditors (ECA) provided a

clean opinion on the revenue side of the EU budget, reaffirming the stability and accuracy of

revenue collection by the Commission. Recalling the risks to the EU’s financial interests

from inadequate or ineffective customs controls of imported goods, the Parliament commends

the efforts made by the European Anti-Fraud Office (OLAF) on the fight against fraud linked

to customs duties and VAT. Furthermore, the Commission proposed an ambitious reform of

the customs union in 2023, which is currently under negotiation with the co-legislators. By

establishing an EU Customs Authority that will manage the new EU Customs Data Hub, this

reform will also facilitate the early detection of risks affecting the collection of custom duties

as part of an overall strengthening of the EU customs risk management, analytical and control

capacity.

Anti-fraud architecture

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Preparatory work has started on a review of the EU’s anti-fraud architecture (AFA). A high-

level kick-off meeting took place on 14 March 2025, bringing together the main stakeholders:

the Commission, the European Public Prosecutor’s Office (EPPO), OLAF, the ECA, the

European Union Agency for Criminal Justice Cooperation (Eurojust), and the European

Union Agency for Law Enforcement Cooperation (Europol). Technical-level working groups

have been established. The Commission is planning to issue a White Paper, proposing the

general orientations to be explored for the upcoming AFA review.

Budgetary reinforcement of the EPPO and OLAF

The Commission notes the Parliament’s repeated calls ‘for the capacities of the EPPO and

OLAF, as well as cooperation between them, to be strengthened further’.

The EPPO was originally due to reach its full size at 115 staff in 2023, and to operate

thereafter with stable staffing. The EPPO’s staff in the Central Office has, nevertheless, been

increased to 307 in 2025. In 2024 and 2025, the EPPO received additional reinforcements to

account for the participation of Poland and Sweden, address rising salary and housing costs,

and achieve full independence of its IT system from the Commission.

Notwithstanding the constraints on Commission staffing, which also impact OLAF, the

OLAF 2025 budget provides for four additional external staff to monitor the flow of funds to

Ukraine.

Merits of the revision of the Financial Regulation regarding the fight against fraud

Starting from the post-2027 MFF, the revised Financial Regulation will strengthen the

protection of the EU budget, inter alia, by: (i) extending the scope of the EDES to include

shared management, (ii) ensuring standardised electronic recording and storage of data on the

recipients of EU funding and their beneficial owners in all management modes in a single

integrated IT system; and (iii) incorporate in this single integrated IT system a data-mining

and risk-scoring tool – the use of which remains voluntary until a reassessment is made at the

end of the MFF.

Other notable changes to the Financial Regulation, which already apply since 30 September

2024, include the possibility to exclude the following entities from receiving EU funding: (i)

beneficial owners of entities found to be in an exclusion situation, (ii) entities that resist

checks or audits performed by OLAF, the EPPO or the ECA, (iii) entities that incite

discrimination, hatred, violence or violate EU values, where such actions negatively affect or

risk affecting the performance of legal commitments.

c. Limiting spending errors

Actions to reduce the level of error

The Commission is acting on the Parliament’s and Council’s calls to take action to decrease

the error rate. As acknowledged by the Parliament, Council and ECA, the complexity of the

ways funds are disbursed is a key factor behind the risk of error. Therefore, the Commission

is notably taking action to simplify spending rules.

For the

cohesion policy funds,

based on findings and recommendations from the ECA and

the Parliament, Member States’ audit authorities and the Commission agreed at the end of

December 2024 on an action plan to improve the programme authorities’ detection capacity

and the Commission will follow up on its implementation. The Commission also reviewed its

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audit strategy for a strengthened on-the-spot supervision of the audit authorities’ work for the

2021-2027 period. In parallel, the Commission continues to promote the less error-prone

simplified cost options

and

financing not linked to costs

in 2021-2027 programmes, and to

carry out audits for programmes and areas (e.g. public procurement, State aid) considered as

high risk.

The delivery model for the 2023-2027

common agricultural policy

(CAP) offers a potential

for simplification by allowing Member States to design the EU-funded interventions to

address their country-specific needs, while at the same time delivering on EU-level

objectives. The new CAP also fosters the use of new technologies

, which should help tackle

errors. The Commission will no longer determine an error rate for agricultural expenditure,

since it is performance-based. Instead, the Commission will group CAP expenditure in three

categories of risk: low, medium and high, based on the assessment of the proper functioning

of governance systems put in place by the Member States. Agricultural expenditure is

traditionally low risk and there is no indication that this would change with the new delivery

model for the CAP.

funding for research and innovation,

Horizon Europe includes greater use of simplified

forms of funding, such as lump-sum project funding and unit costs, which will significantly

reduce the administrative burden for beneficiaries, and are therefore expected to contribute to

the reduction of the error rate.

Lastly, the Commission is currently reviewing its audit and control strategy for the

Neighbourhood, Development and International Cooperation Instrument (NDICI)

reduce the overall error rate, as well as to increase the efficiency of its controls. One of the

main deliverables of this review is to develop a sound and focused risk-profile system to

better assess and address the risk of error, at both project and entity level. Moreover, the

review also addresses the methodology of

ex ante

and

ex post

controls applied under NDICI

to further increase their preventive and corrective capacities, as well as to improve the

accuracy of data generated for the risk profiling.

In relation with the

Recovery and Resilience Facility (RRF),

the Commission has put in

place a robust control and audit system and adapted it in line with its own experience and

based on findings and recommendations from the ECA and the Parliament. This included

updating the methodology on audit work on the protection of the financial interests of the EU,

reinforcing controls on the Member States’ internal control systems in the area of State aid

and public procurement, and strengthening cooperation within the Commission.

Exchanges between Commission and ECA on the level of error

The Commission also notes that the discharge resolution calls on the Commission and the

ECA ‘to find a solution to the divergent approaches before the 2024 discharge’ and to

‘continue to engage with the Court in order to increase understanding, convergence and

For example, the Member States have to set up an Area Monitoring System (AMS), which uses Copernicus

Sentinel satellite data to monitor 100% of the declared parcels in real time. This allows farmers to receive

alerts whenever a required agricultural activity or practice has not taken place (yet). The farmers then have the

possibility to fulfil the requirement (if still possible) or to amend their application, leading to fewer errors.

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comparability of the two approaches to the diverging estimates of errors in Union

expenditure’.

A full alignment of methodologies between the ECA and the Commission is challenging due

to the institutions’ distinct roles and missions. However, it is necessary for the differences to

be understood by both institutions. To this end, the Commission and ECA services organised

a series of

technical workshops

in March 2025 to foster common understanding of the

respective methodologies and explored the potential for further improvements in the

Commission’s management and control systems. As a follow-up to these workshops, the

Commission is currently developing an internal action plan that aims to lower the risk of

errors in EU spending under the MFF and to foster a common understanding with the ECA to

determine the level of error. For example, as regards cohesion policy expenditure, the

Commission and the ECA agreed to hold further technical meetings in 2025 to align on the

quantification of errors in public procurement.

The Commission also continues to engage with the ECA to address the differences in views

and interpretations in relation to the RRF. It has further clarified the operationalisation of

eligibility conditions and the concept of double funding under the RRF. The Commission

shares the Council’s wish not to introduce ‘new rules or more restrictive conditions imposed

on Member States

ex post’

, and notes that changing guidance on the interpretation of legal

concepts half-way through the instrument’s implementation would cause new legal and

practical issues for Member States.

3. Performance of the EU budget and impact of the RRF

The Commission notes the call from the Council to ‘continue the assessment of the

performance of the EU budget, which is a measure of the true value delivered to EU citizens’

and ‘where applicable, to increase the focus on result-based performance indicators that can

be directly linked to the EU actions’

The Commission is fully committed to ensuring that every euro from the EU budget is well

spent, in line with the rules and for the benefit of the European public.

Performance is monitored annually through the ‘programme-performance statements’. These

are part of the Annual Management and Performance Report, which includes the 2021-2027

core performance indicators by spending programme. 45% of these indicators are results-

based, demonstrating a strong focus on results.

In December 2024, the Commission published the second impact report on the

NextGenerationEU (NGEU) green bonds, which measured the concrete climate impact of

funded investments in terms of greenhouse gas emissions avoided.

The RRF’s delivery model provides clear incentives for Member States to address long-

standing structural challenges.

Offering direct financial support for the implementation of reforms has led to an acceleration

of the implementation of the Country-Specific Recommendations (CSRs) issued by the

See paragraph 11.4

of the Council discharge’s recommendation.

See paragraph 5

of the Council discharge’s recommendation.

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Council each year to each Member State. Overall, a higher level of CSR implementation is

reached more rapidly since the RRF has been established.

For example, in the field of employment, as concluded by ECA

, nearly all RRPs feature

reforms addressing structural challenges in Member States’ labour markets. In addition, many

reforms in other fields (e.g. education) contribute to promoting high-quality employment,

skills development, and the implementation of the European Pillar of Social Rights.

Milestones and targets, as a measure of progress in implementation of measures in RRPs, also

provide a very granular overview of Member States’ performance during the RRF’s lifetime.

The Commission takes due note of the Parliament’s opinion that “any shift to a performance-

based approach based on the RRF as a model requires addressing the many issues identified

in its implementation, as well as assessing data on its full impact, before using such a

model”

The RRF mid-term evaluation

highlighted areas for improvement, including the insufficient

involvement of local and regional authorities, social partners and civil society organisations,

or challenges in striking a balance between detailed milestones and targets and flexibility in

implementation. As the Commission prepares for the next MFF, it is drawing lessons from

the RRF and other programmes, identifying best practices and areas for improvement to

inform its future approach.

4. Transparency of EU funding

Transparency

is a guiding principle in the management of the EU budget. As an example,

today the Financial Transparency System (FTS) includes the possibility to search for

information concerning all types of recipients under direct management. The objectives and

results of the projects can be found on the EU's Funding and Tenders Portal

Thanks to the

revision of the Financial Regulation, the Commission’s commitment to transparency will

expand with the next MFF. The FTS is set to become a central point of reference, with

information published on recipients

in all management modes.

On funding to non-governmental organisations (NGOs), the Parliament notes that the recent

ECA report on transparency of EU funding granted to NGOs points to the fact that while the

Commission fully complies with all legal obligations with respect to transparency

, this

could be further improved. The Commission will follow up on the ECA report, as set out in

the Commission´s replies.

The Commission acknowledged that some work programmes submitted by beneficiaries and

annexed to operating grant agreements included specific advocacy actions and lobbying

activities entailing a reputational risk for the EU. Although the Commission’s legal analysis

of the agreements concluded that there was no breach of the contractual or Code of Conduct

obligations by the entities concerned, the Commission issued internal guidance in May 2024

to address any possible reputational risk for the EU. The Commission also updated its model

call for proposals to ensure that future projects will comply with this guidance. Furthermore,

Special report 10/2025, paragraph 20

See paragraph 11

–

2024/2019(DEC).

Mid-term evaluation of the Recovery and Resilience Facility - SWD(2024) 70 final

See paragraph 23

–

2024/2019(DEC).

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despite the lack of a legal requirement to disclose information about advocacy activities

funded through operating grants

, the Commission further promotes transparency by

proactively sharing the objectives and outcomes of funded projects on the EU Funding &

Tenders Portal. Finally, interest representatives that register in the

Transparency Register

not representing commercial interests, which would typically include NGOs, are required to

report their lobbying activities and declare their main sources of funding as well as the

amount of each contribution above EUR 10 000 exceeding 10% of their total budget and the

name of the contributor in their registrations in the Transparency Register.

In the multiannual work-programme 2025-2027 for LIFE, the Commission has included

further safeguards to ensure that operating grants do not require specific and detailed

activities that directly target EU institutions or their staff or members, and that clarify that

beneficiaries retain full responsibility for their views. In a statement published on 1 April

2025

, the Commission committed to review the transparency arrangements and the

disclosure requirements for beneficiaries under the EU transparency register. The

Commission is also committed to ensure that the LIFE evaluation committee members are

independent and free from conflicts of interest. It is mandatory for the members to sign

declarations on absence of conflict of interest before engaging with the assessment of

proposals, and mitigation measures are in place in case conflicts of interest are identified. The

European Climate, Infrastructure and Environment Executive Agency (CINEA) will review

the selection procedure for members of the LIFE evaluation committee and will implement

any necessary steps to ensure full transparency.

Support for activities related to policy development and policy implementation remains an

important and legitimate funding objective, in line with the Regulations governing certain EU

funding programmes as adopted by the European Parliament and the Council. This includes

enhancing the involvement of pluralistic civil society organisations.

The Commission also acknowledges and will follow up on the Parliament’s request to ‘make

the results of the screening of grant agreements and other contracts available to the discharge

authority’

Lastly, the revised Financial Regulation introduces (i) an

obligation for the grant

applicants (under direct management) to declare whether they are an NGO

and (ii) an

NGO definition.

With respect to

transparency under the RRF,

Member States must report on the 100 final

recipients receiving the highest amount of funding for the implementation of measures under

the Facility. The Commission published additional guidance as an annex to its 2024 RRF

Annual Report and reminded Member States of their obligations. Following the Parliament’s

request, in the context of the 2023 discharge, the Commission requested from the Member

States a list of the names of the ‘100 final entities or natural persons that have received the

largest amounts of funds under the RRF’, including contractors and sub-contractors

. To

date

[June 2025], the Commission has received lists from six Member States and has provided

them to the Parliament.

On publication of information on recipients see Article 38 of the Financial Regulation.

Commission statement on the LIFE Programme.

See paragraph 21

–

2024/2019(DEC).

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5. The Commission’s borrowing activities and new own resources

The Commission takes note of the Parliament’s concern about the level of outstanding debt

from borrowing activities and the vulnerabilities with regards to interest rates that affect the

debt level

. Since 2020, the Commission has profoundly transformed its presence on

international capital markets, making the EU ‘one

of the largest debt issuers in Europe’,

the Parliament duly points out. The Commission is using a mix of short-term and long-term

borrowing strategies to manage interest rates and repayment timelines effectively. This

includes issuing different maturities of bonds, which helps to spread repayment obligations

over time. The timeline for repayment of debt under NGEU extends until 2058, giving the

EU an extended timeline to manage repayments without causing significant disruptions or

compromising financial stability.

To better address the financial risks linked to the Commission’s borrowing activities and the

EU budget exposure, the role of the independent

Chief Risk Officer (CRO)

has been

extended in February 2025 to include oversight over all of the EU’s financial operations and

assets under management. In line with the best practices in the financial sector, the CRO –

together with a newly created ‘risk management unit’ – now acts as the second line of

defence at the corporate level for the financial risk assessment of financial operations, in full

independence from the first line

The Commission shares the view that ‘swift progress on new own resources is essential’. In

2023, the Commission presented a package of proposals amending the 2021 proposal which

is comprehensive, brings sufficient revenue, minimises additional burden on Member States’

budgets and can be implemented quickly. The Commission is also working on other

proposals. Introducing new own resources will require political will and engagement from all

sides.

6. Outstanding budgetary commitments – ‘reste

à liquider’

(RAL) and measures to

speed up the implementation of EU funds

The Commission notes that, in the discharge resolution, the Parliament ‘expresses again its

deep concern that the accumulated outstanding commitments (RAL -

reste à liquider)

have

reached a record level of EUR 543 billion […] at the end of 2023’

Outstanding commitments

are amounts that have been committed but not yet paid.

The non-repayable part of

NGEU

contributed EUR 238.6 billion, which represents almost

44% of the total RAL, most of which is channelled through the RRF. In this regard, the

Commission supports Member States to ensure a swift and effective implementation of their

RRPs without lowering their ambitions or weakening critical measures. Where measures

become unachievable due to objective circumstances, Member States may request revisions

to their RRPs to address implementation bottlenecks. Member States may also submit

payment requests if only some of the milestones and targets are fulfilled, which will allow

Member States to receive partial disbursements corresponding to the milestones and targets

See paragraph 8

–

2024/2019(DEC).

The first line of defence consists of the Commission departments managing EU borrowing, lending and asset

management operations as well as budgetary guarantees.

See paragraph 7

–

2024/2019(DEC).

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already implemented. This also contributes to the swift implementation of the RRP. In its

Communication “NextGenerationEU - The road to 2026” adopted on 4 June 2025, the

Commission provides guidance for Member States to revise and streamline their RRPs in

view of the approaching 2026 deadline. The Commission encourages Member States to

remove from their RRPs milestones and targets that cannot be implemented by the 31 August

2026 deadline and suggests existing and new options to ease implementation.

Around half of the

RAL linked to MFF programmes

at the end of 2023 stems from

cohesion policy, and, by extension, from the Member States’ implementation of funds under

shared management.

With the level of project selection on the ground reaching around half of the available

envelopes for 2021-2027 cohesion programmes, the financial implementation is also forecast

to reach cruising speed in the short term.

On 1 April 2025, the Commission adopted the legislative proposal on the

mid-term review

of cohesion policy

to align investment priorities with the evolving economic, societal and

geopolitical context as well as with the more ambitious climate and environment objectives.

It introduces greater flexibility and incentives (such as a co-financing rate of 100% to

frontload investments in housing, water resilience, energy transition, competitiveness and

defence) to facilitate the rapid deployment of resources into these reinforced priorities, thus

further speeding up absorption.

On 22 April 2025, the Commission adopted new

targeted amendments to existing EU

funding programmes

to support faster, more flexible and coordinated investments in

Europe’s defence technological and industrial base. The targeted amendments will notably

broaden the scope of the

Strategic Technologies for Europe Platform (STEP)

to cover

defence-related technologies and products. These legislative proposals, if agreed by the co-

legislators, will also accelerate the implementation of EU funds.

The Commission will continue to monitor the implementation of the overall level of

outstanding commitments. It will also continue to propose levels of payment appropriations

that adequately meet payment needs during the annual budgetary procedures

7. Looking ahead

In July 2025, the Commission will present its proposal for the next MFF.

This proposal will take account of the recommendations from the Parliament, Council and

ECA in the context of the discharge.

The EU budget, with over 50 spending programmes and numerous rules and criteria, is

currently hindered by complexity, which increases the risk of overlaps, reduces transparency,

and leads to gaps in funding for cross-cutting priorities. This complexity also makes it

difficult for beneficiaries, especially small and medium enterprises, to navigate and access

EU funds, and may result in spending errors.

A simpler EU budget would facilitate access for all beneficiaries, increase the speed and

quality of implementation, and enhance stakeholder involvement.

By streamlining the financial landscape, eliminating overlaps, and offering a single gateway

to EU funding for beneficiaries, the administrative burden, delays and errors can be reduced

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considerably. This will ultimately improve the way the EU budget is spent and make it more

effective and efficient in achieving its objectives.

***