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OPINION (COM(2025)0565 – C100179/2025 – 2025/0240(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing the European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for the period 2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom) 2024/2509

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Committee on Budgetary Control · Rapporteur: Eero Heinäluoma

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The Committee on Budgetary Control gives its opinion on the proposed regulation setting up the European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for 2028-2034. It proposes amendments to strengthen assurance and accountability in the new performance-based delivery model, based on lessons from the Recovery and Resilience Facility. The amendments require verification of national authorities' readiness, stronger rule of law and Charter conditions, complete audit trails and traceability, and clearer rules on financial corrections and recoveries. They also add a horizontal condition on protection of the EU's financial interests, rules against double funding, and more information to the European Parliament.

Committee position. The Committee on Budgetary Control proposes amendments to the lead committees to strengthen assurance, accountability, transparency and protection of the EU's financial interests in the proposed regulation, based on lessons from the Recovery and Resilience Facility.

Key points

  1. The opinion focuses on strengthening the assurance and accountability framework of the proposed regulation within the Committee on Budgetary Control's remit.
  2. It calls for structured verification of national management and audit authorities' readiness before implementation, with capacity-building and annual updates.
  3. It reinforces horizontal conditions on the rule of law, the Charter of Fundamental Rights, the UNCRPD and protection of the EU's financial interests, and requires the Commission to block payments where conditions are not met.
  4. It insists that simplification must not reduce transparency or traceability, requiring complete audit trails, interoperable data systems and verification of underlying costs.
  5. It clarifies the definitions of recipients and final recipients to ensure traceability through procurement chains.
  6. It strengthens financial corrections and recoveries, obliging the Commission to recover amounts where final milestones or targets are not met.
  7. It adds a new horizontal condition on protection of the Union's financial interests, covering fraud, corruption and conflicts of interest.
  8. It requires Member States to prevent, detect and correct double funding, including through a unique identifier and cross-checks.
  9. It requires the Commission to keep the European Parliament informed of decisions and exchanges with Member States on horizontal conditions.
  10. It requires milestones and targets to be specific, measurable, time-bound and verifiable, and not fulfilled solely by self-certification.
  11. It requires the Commission to adopt a delegated act on a common methodology for estimating and verifying costs, after consulting the European Court of Auditors.
  12. It requires Member States to ensure full audit trails and traceability of Union funding down to final recipients, contractors and subcontractors.

Who is affected

  • Member States and their managing, paying and audit authorities, which must meet readiness, control and reporting requirements.
  • Beneficiaries, recipients, final recipients, contractors and subcontractors, who must be traceable and not face duplicate data requests.
  • The Commission, which must verify milestones, block payments, recover amounts and report to Parliament.
  • The European Parliament, which must be informed and involved in assessments of horizontal conditions.

Figures and deadlines

  • EUR 200 000: threshold below which public support may take simplified forms; above it, reimbursement based on actual costs.
  • EUR 100 000: threshold for operations under certain interventions for simplified forms.
  • Two percent: materiality threshold for residual error rate allowing additional audits.
  • Five years: period for which fulfilment of milestones and targets must remain ensured after payment.
  • Ten years: period for keeping supporting documents for the audit trail from 31 December of the year of the last payment.
  • Two months: period for the Commission to adopt a decision on non-fulfilment of horizontal conditions after receiving observations.
  • One year: period after which the Commission reduces the Union contribution if a decision on non-fulfilment is not repealed.
  • 31 January 2028: deadline for the Commission to adopt delegated acts on reporting of suspected fraud and irregularities.

Legal basis: Article 42, Article 43(3), Article 46(d), Article 91(1)(d), Article 149, Article 153(2)(a), Articles 164, 175, 177 and 178, Article 192(1), Article 194(2), Article 209(1), Article 212(2), Article 322(1)(a), Article 325(4) and Article 349 of the Treaty on the Functioning of the European Union.