What changed

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

P10_TA(2026)0122

on control,Control, transparency and traceability of performance-based instruments

(2025/2032(INI))

Committee on Budgetary Control

PE778.127

European Parliament resolution of 28 April 2026 on control, transparency and traceability of performance-based instruments (2025/2032(INI))

The European Parliament,

– having regard to Articles 311, 312, 319, 323 and 324 of the Treaty on the Functioning of the European Union (TFEU),

– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 202712027 and to the joint declarations agreed between Parliament, the Council and the Commission in this context and the related unilateral declarations,

– having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union2Union (the Financial Regulation),

– having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget3budget (the Rule of Law Conditionality Regulation),

– having regard to Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/974,1466/97,

– having regard to its resolution of 15 December 2022 on upscaling the 2021-2027 multiannual financial framework: a resilient EU budget fit for new challenges5,challenges,

– having regard to its position of 27 February 2024 on the draft Council regulation amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 20276,2027,

– having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources7resources (the IIA),

– having regard to its position of 16 December 2020 on the draft Council regulation laying down the multiannual financial framework for the years 2021 to 20278,2027,

– having regard to the European Court of Auditors (ECA) annual report of 10 October 2024 on the implementation of the EU budget for the 2023 financial year, together with the institutions’ replies,

– having regard to ECA review 03/2025 of 16 June 2025 entitled ‘Opportunities for the post-2027 Multiannual Financial Framework’, ECA review 04/2025 of 19 June 2025 entitled ‘The Future of EU Cohesion Policy: Drawing lessons from the past’,

– having regard to its resolution of 7 May 2025 on a revamped long-term budget for the Union in a changing world, and to the opinion of the Committee of Budgetary Control for the Committee on Budgets on a revamped long-term budget for the Union in a changing world9,world,

– having regard to the report of its Committee on Budgetary Control of 23 April 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,

– having regard to the report of September 2024 by Mario Draghi entitled ‘The future of European competitiveness’ (the Draghi report),

– having regard to the opinion of the European Committee of the Regions of 8 October 2024 entitled ‘Mid-term review of the post-COVID European recovery plan (Recovery and Resilience Facility)’10,Facility)’,

– having regard to the information published on the Recovery and Resilience Scoreboard (RRF Scoreboard),

– having regard to the political guidelines for the 2024-2029 Commission term, presented by the President-elect of the Commission on 18 July 2024,

– having regard to the opinion of the European Committee of the Regions of 20 November 2024 entitled ‘EU budget and place-based policies: proposals for new design and delivery mechanisms in the MFF post-2027’11,post-2027’,

– having regard to the Commission proposal of 16 July 2025 for a regulation of the European Parliament and of the Council establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities (COM(2025)0545),

– having regard to its resolution of 18 June 2025 on the implementation of the Recovery and Resilience Facility12,Facility,

– having regard to the report of the Committee on Budgetary Control (A10-0074/2025),

9. Takes note of the aspects related to the rule of law in the Commission proposal for the MFF for 2028-2034, and calls for a unified, coherent and comprehensive framework across all EU funding programmes under the umbrella of the Rule of Law Conditionality Regulation; calls, furthermore, for any application of FNLC to be fully compatible with the regulation;

10. Notes with concern that, at the end of 2024, the EPPO was handling 311 active cases related to the NGEU, all but four of which concerned the RRF, representing approximately 17 % of all active expenditure fraud investigations and an increase of around 51 % in NGEU-related cases compared to 2023; notes, furthermore, that the estimated damage to the EU’s financial interests amounts to EUR 2.82,8 billion, representing 30 % (compared with 25 % in 2023) of the total estimated damage resulting from all EU expenditure fraud; highlights that the reporting of cases by EU institutions remains low, thereby raising further concerns about the Commission’s ability to effectively oversee the implementation of the RRF; recalls that out of the 27 EU Member States, 24 currently participate in the EPPO;

11. Expresses its concern that performance-based instruments using FNLC focus more on system audits than on controls on actual expenditure incurred; warns that such system audits may not reveal underlying issues that can spill over and seriously undermine the sound financial management of the Union budget and the safeguarding of the financial interests of the Union; believes that even under the current financial architecture and model of implementation for EU funding, control systems of several Member States have shown systemic weaknesses, resulting in a failure to detect and prevent fraud, or other irregularities, such as in the OPEKEPE case in Greece or the cases involving rural development funds in Slovakia, as well as other recent cases in several Member States, demonstrating the need for stronger EU oversight; calls, therefore, on the Commission to take decisive corrective measures, strengthen audit and accreditation procedures, and ensure that similar systemic failures cannot recur, while respecting the principle of proportionality regarding reporting and documentation duties;

43. Instructs its President to forward this resolution to the Council and the Commission.

EXPLANATORY STATEMENT

Performance-based instruments are reshaping the way the European Union finances its policies. By linking payments to the achievement of milestones and targets, rather than to the reimbursement of eligible costs, they promise to accelerate reforms and strengthen the focus on results. The Recovery and Resilience Facility (RRF) was the first large-scale application of this model, and the Commission has proposed to embed it more widely through National and Regional Partnership Plans in the next Multiannual Financial Framework.

This shift has undeniable advantages: it simplifies procedures, emphasises outputs, and can increase political ownership of reforms. Yet it also introduces significant risks for control, transparency and accountability. The European Court of Auditors has already identified weaknesses in the design of the RRF control system, including incomplete audit trails, heavy reliance on national authorities and variability in control quality across Member States. The European Parliamentary Research Service has highlighted shortcomings in national reporting and the limits of transparency tools such as the RRF Scoreboard and expert groups. The recent European Parliament’s study on performance and mainstreaming framework for the EU budget for the Committee on Budgets has further underlined gaps in data systems, monitoring weaknesses, and the limits of the European Parliament’s engagement.

These lessons must be taken seriously. Without access to data on actual costs of EU-funded interventions, it is difficult to demonstrate value for money. Without clear thresholds for corrective action, enforcement risks becoming inconsistent or arbitrary. Without transparent methodologies for assessing milestones and targets, there is a danger of unequal treatment between Member States. And without stronger parliamentary involvement, democratic accountability is weakened.

This report therefore calls for a stronger framework of control and transparency for performance-based instruments: harmonised methodologies, interoperable data systems, robust audit trails, and clear criteria for corrections. It urges the Commission to expand transparency tools, to ensure full traceability of beneficiaries and final recipients and to strengthen safeguards for financial instruments. Most importantly, it insists on a greater role for Parliament in the governance of performance-based instruments.

The European Commission is proposing to channel hundreds of billions of euros through this model in the coming years. If designed well, performance-based instruments can deliver reforms effectively and can reinforce trust in the EU. If not, they risk eroding accountability and weakening the link between EU financing and sound financial management. This own-initiative report aims to ensure that the lessons from the RRF are fully incorporated into the next generation of instruments, so that performance is matched by integrity, transparency and democratic oversight.

ANNEX: DECLARATION OF INPUT

The rapporteur declares under her exclusive responsibility that she did not include in her report input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted

5.2.2026

Result of final vote

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22

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FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

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