A serious problem was revealed in the use of EU money – “No random cases”

More and more errors have been revealed in the European Union’s use of money. According to the Court of Auditors, which oversees the EU economy, the number of errors increased in 2025.

The auditors gave a negative assessment of the Union’s use of money for the seventh year in a row, because there are too many errors compared to the allowed limit. The error rate rose to 3.8 percent, while the materiality limit used by the EU is two percent.

The most common mistakes were financing ineligible projects and violating public procurement rules.

Finnish member of the Court of Auditors Petri Sarvamaa considers the situation serious. According to him, it is not about individual cases but about a broad structural problem.

“They are not random cases here and there, but the error level shows how much of a systemic problem there is in budgeting,” says Sarvamaa.

The most errors were found in supporting regional development, growth and employment, as well as agricultural and environmental funds.

According to Sarvamaa, the findings are important because the EU countries are currently negotiating the giant budget for the years 2028–2034.

What is the money used for?

Of particular concern is the money from the recovery fund created after the corona pandemic. According to the inspectors, of the 37 payments made last year, nine did not meet the rules or conditions. Problems were found, among other things, with procurement, state subsidies and the fact that the set goals had not been properly achieved.

According to Sarvamaa, one key problem is that it is difficult to monitor the final use of the money. He highlights the case of Spain, where it has been unclear whether the funds from the recovery fund were used to support the country’s pension system in a way that did not correspond to the original purpose of the funding. According to the Commission’s report, Spain’s payments met the conditions set for them.

The Italian Commissioner responsible for the EU’s regional and cohesion policy Raffaele Fitto said that although pensions cannot be financed with the funds of the recovery package, the member state can temporarily use the cash liquidity brought by the payment received to cover other budgetary needs, as long as this does not jeopardize the proper use of EU funds

According to Sarvamaa, the Spanish case shows that inspectors do not always have sufficient visibility into how the money ultimately moves and what it is used for.

More than 122 billion euros have yet to be paid from the recovery fund, and Sarvamaa warns that the risk of errors will increase even more in the final stages of the program, as the commission will pay the last money by the end of this year.

“It is clear that there will be a terrible rush and, according to our experience, it leads to errors that always increase in practice,” says Sarvamaa.

The inspectors are also concerned by the fact that the EU Commission wants to use a similar model in its future multi-year budget, where money is to be paid based on the results achieved by member countries.

According to Sarvamaa, the problem is that the results cannot be properly verified until the money has already been paid.

Sarvamaa says that in practice money may be paid based on assumed rather than proven results.

The debt burden is worrying

In addition to rule violations, the inspectors warn of the EU’s rapidly growing debt. The Union’s loan amount is estimated to grow to up to one thousand billion euros by 2027, largely as a result of financing the recovery package.

The interest costs of the aid portion of the recovery program alone may rise to 93 billion euros in the period 2028–2034. As interest rates rise, the EU has to spend an increasingly large part of its money on debt management instead of other activities.

According to Sarvamaa, the biggest uncertainty is related to how interest rates will develop in the coming years. If geopolitical crises raise, for example, energy and oil prices and accelerate inflation, interest rates may also rise more than expected.

“Then the effects can be really drastic. And this is a matter of great concern.”

It means, among other things, that the rapidly growing debt burden can significantly reduce the EU’s financial room for maneuver in the coming years.

Sarvamaa hopes that the auditors’ comments would be listened to and taken into account in the commission and member countries better than at present.

The Commission’s reply

The Commission responded to the European Court of Auditors’ criticism in a press release sent on Thursday.

According to the Commission, the Court of Auditors’ report confirms that there were no material errors in the collection of EU revenue, even though the Court of Auditors gave a negative opinion on the regularity of spending under the Multiannual Financial Framework.

The error level estimated by the inspectors was a total of 3.8 percent in 2025.

The Commission emphasizes that an error does not automatically mean fraud or waste of funds. Most of the errors detected are related to irregularities rather than fraud, and projects can still achieve EU policy objectives.

According to the Commission, the EU budget is protected with the help of member countries, other implementing partners and the Commission’s own audits. In cost-based programs, the Commission estimates that it has kept the final error risk below two percent after corrective measures.

In result-based programs, such as agricultural policy or, for example, the support instrument for Ukraine, the Commission assesses the budget risks separately and considers that the funds are well protected.

The Commission also reminds that last year, based on inspections, the Commission and the Member States implemented preventive and corrective actions worth a total of 9 billion euros. These included suspension of payments, freezing of payments and financial adjustments.

The Commission also considers the risks of the recovery and recovery support instrument to be low. Payments are made only after the agreed milestones and targets have been checked. If they have not been achieved satisfactorily, the commission may withhold payment in part or in full.

The matter was fixed at 9:04 am. Removed the coalition abbreviation (kok) from the connection with Petri Sarvamaa’s name, because in his current role, Sarvamaa is a non-committed Finnish member of the European Court of Auditors and no longer a representative of the coalition, as the abbreviation implied.

Added to the story at 11:17. The European Commission’s response.