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OPINION (2025/2145(DEC))

On discharge in respect of the implementation of the general budget of the European Union for the financial year 2024: Section III – Commission

REGI-AD-779625

Committee on Regional Development · Rapporteur: Gabriella Gerzsenyi

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The Committee on Regional Development's opinion on the 2024 budget discharge notes the 5.7% error rate in cohesion spending, urges simplification and stronger controls, and rejects proposed post-2027 changes to cohesion policy.

Committee position. The committee suggests that the lead committee incorporate its recommendations, including concerns about error rates, calls for simplification, and rejection of proposed post-2027 changes to cohesion policy.

Key points

  1. Notes the estimated error rate of 5.7% in cohesion spending, down from 9.3% in 2023, but is concerned about weaknesses in the Commission's calculation method.
  2. Urges the Commission and member states to apply the Court of Auditors' recommendations, including individual verifications where flat-rate corrections were applied.
  3. Calls for distinguishing errors from fraud, strengthening the single audit principle, and providing advisory support and training to beneficiaries and local authorities.
  4. Notes insufficient detection capacity and calls for stronger risk analysis systems and support for whistle-blowers and civil society.
  5. Stresses the role of digitalisation and AI in detecting fraud, but warns that simplification in new national recovery plans must not weaken anti-fraud safeguards.
  6. Calls for further simplification, a single set of eligibility rules, and expansion of simplified cost options, while warning against deregulation that undermines controls.
  7. Calls for simplification of public procurement procedures and clear guidance to stakeholders, managing authorities, and auditors.
  8. Calls on the Commission to step up support to member states to speed up implementation and avoid decommitment risks.
  9. Highlights the role of OLAF and EPPO, calls for sufficient resources and improved cross-border investigation capabilities.
  10. Rejects the proposed merging of cohesion, agricultural and fisheries funds and the discontinuation of the Just Transition Fund, and insists on mandatory involvement of local and regional authorities.
  11. Warns that making funding conditional on reforms poses a risk to cohesion policy and that local authorities must not be deprived of funding due to national failures.
  12. Stresses the need to define supervisory and control responsibilities clearly and bindingly before implementation, with the Commission setting its own minimum requirements.

Who is affected

  • Beneficiaries and local authorities: receive advisory support and training to avoid errors.
  • Member states: urged to strengthen administrative capacity and apply Court recommendations.
  • Local, regional and national authorities: need strengthened administrative ability and capacity.
  • Persons with disabilities: rights must be respected in all EU-funded projects.
  • Less developed regions and outermost regions: would be harmed by proposed fund mergers and reduced support.

Figures and deadlines

  • 5.7% estimated error rate in cohesion spending for 2024, down from 9.3% in 2023.
  • 2.9% Commission estimate of risk at payment for the spending area.
  • Detection rates: 0.22% for fraud and 0.76% for irregularities.
  • Interest on NGEU loans could reach up to EUR 222 billion over the entire duration, or 0.6% of average annual EU GDP.