Budgetary control represents a fundamental dimension of the European Union (EU) financing process, ensuring that the EU’s financial resources are managed effectively, transparently and in accordance with established objectives. This is about defending the appropriate use of European taxpayers’ money. In this context, the European Parliament plays a central role, acting as guardian of citizens’ interests and ensuring the correct use of the budget.
As I have already explained in this column, the EU budget, structured by the Multiannual Financial Framework (MFF) and annual budgets, allocates resources to strategic areas such as innovation, cohesion, agriculture and fisheries, environment, migration and security and defense. This investment is fundamental to boosting Europe’s economic development, social resilience and strategic autonomy. However, taking into account the distribution of funds across different programs and multiple government structures – both at European, national and local level – it becomes essential to carry out a rigorous and continuous analysis, not only of the way in which they are allocated, but also of the its effectiveness and efficiency in achieving the proposed objectives.
Efficient budget execution requires a robust monitoring and control system, which involves the cooperation of several institutions. The European Commission is responsible for managing and implementing the budget, while the European Court of Auditors (ECA) assumes the role of external auditor, meticulously evaluating the regularity and legality of expenditure. The European Parliament, through the Budgetary Control Committee, carries out a detailed inspection of the EU’s annual accounts and decides, based on the ECA’s reports, whether or not to approve the financial reports of the European Commission and other institutions, bodies and Union agencies. This annual process is crucial as it allows Parliament to assess compliance with objectives, identify any irregularities and demand corrections, thus reinforcing the transparency and accountability of organizations that receive and manage EU funds.
The European Parliament also has the responsibility for overseeing the use of funds by the various EU agencies and programs, which include initiatives as diverse as Horizon Europe, Erasmus+ and InvestEU. These programs, which represent a significant investment in fundamental areas such as innovation, education, employment and competitiveness, are subject to rigorous evaluation to ensure that the funds are applied effectively and in line with the proposed objectives. In cases of misuse, mismanagement or fraud, the European Parliament works with the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) to ensure that the necessary measures are taken to prevent and correct irregularities, thus protecting EU financial interests.
Managing the Union’s budget presents significant challenges, mainly due to its complexity and size, largely operating under a shared management regime between the European Commission and the Member States. In this model, Member States are responsible for implementing the majority of the budget, applying funds to projects that contribute to the Union’s common objectives – from territorial cohesion to the ecological and digital transition. While the European Commission retains ultimate responsibility for financial administration, Member States play a key role in program management, carrying out audits and reporting regularly on the use of funds.
However, one of the main challenges in budgetary supervision lies in the fragmentation and complexity of financial instruments, particularly when it comes to hybrid instruments – which combine EU funds with resources from Member States or other sources – created to respond to crisis situations. , such as the migration issue or post-pandemic recovery. To face these challenges, the EU has implemented simplification measures and promoted greater budgetary flexibility, allowing for more agile management of resources, in response to emerging crises. This flexibility, however, must be balanced with rigorous control mechanisms that ensure integrity and responsibility in the use of funds, ensuring that each euro invested contributes significantly to the Union’s objectives and the well-being of its citizens.
In conclusion, EU budgetary control, under the leadership of the European Parliament, constitutes a fundamental pillar for safeguarding the financial interests of the EU and European taxpayers and for strengthening public confidence in its institutions. By ensuring that resources are applied responsibly and efficiently, Parliament makes a decisive contribution to building a more cohesive and resilient Europe, where the management of taxpayers’ money is guided by rigor and transparency, promoting a Union based on values and objectives shared.
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