The ECA published a briefing paper on the mid-term review of the Multiannual Financial Framework 2014-2020 which describes an opportunity for EU budget reform.
This briefing paper responds to the Commission’s communication on the mid-term review/revision of the Multi-annual financial framework 2014-2020 (MFF) as well as the proposals amending the MFF Regulation, the Interinstitutional Agreement and the decision on the mobilisation of the Contingency Margin.
The ECA focuses on the budgetary aspects of the functioning of the MFF covered by the midterm review/revision and invite the EU’s political, legislative and budgetary authorities to seize the opportunity in this legislative period to begin long-term EU budgetary reform. The ECA´s observations follow the main sections of the communication, namely those on the state of implementation of MFF 2014-2020, the proposals in the mid-term review package, and the issues to be dealt with in the proposal for the next MFF.
The mid-term review/revision of MFF 2014-2020 is an opportunity to consider how to improve financial management and accountability and move towards an EU budgetary system fit for regaining the trust of citizens.
Based on the ECA´s audit experience, as reported in its annual and special reports, the ECA believes it is time to develop a new approach to EU spending and investment. Reform should aim at improving the EU budget system’s capacity to:
- direct EU funds quickly and flexibly to where they can add most value for the EU and its citizens;
- deliver funds and results efficiently at a reasonable risk; and
- demonstrate how the EU funds policies and achieves results.
Achieving these goals is not straightforward within the current MFF framework. The Commission’s room to propose a re-prioritisation of EU spending and change financial rules at this stage is heavily constrained by:
- the current MFF reflecting the funding priorities of the Union at the time of adoption;
- the MFF regulation limiting the adjustments that can be made mid-way through the period;
- the seven year spending programmes for the 2014-2020 period only just being underway after significant delays; as well as ;
- the fact that the EU budget is operating close to the spending limits.
Against this background, the Commission presents proposals to focus more resources on current priorities, make budgetary management more flexible, and simplify aspects of the financial rules.
Full briefing paper
© ECA PRESS
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