Budgetary control Committee MEPs call for efficiency in evaluating EU spending

Call for a results-oriented budget supported by impact-focused performance indicators

Thousands of indicators in the current framework

Streamlined indicators and full transparency for the next MFF

The EU budget should focus more on results and deliver measurable value for citizens and businesses, budgetary control MEPs say in a draft report endorsed on Monday.

The report explains how the EU should choose better, simpler, and more reliable performance indicators to monitor and audit spending aimed at improving Europe’s future competitiveness. It was supported by 13 committee MEPs, while 10 voted against and one abstained.

SMART indicators

The draft text reaffirms the need to define and use performance indicators that are specific, measurable, achievable, relevant and time-bound (SMART). MEPs say indicators on the absorption of funds or the rate of budget execution provide information on administrative progress rather than on the actual impact of EU spending. They regret that the performance framework for the EU budget for the period 2021-2027 (MFF) remains overly complex and fragmented. According to a Commission’s assessment, over 5,000 different performance indicators are used for the current MFF, in addition to around 7,000 milestones and targets under the EU’s Recovery and Resilience Facility. The excessive number and heterogeneity of indicators make it difficult to obtain a comprehensive picture of the effectiveness of EU spending, MEPs say.

Streamlined indicators for the next MFF

The next MFF must, MEPs argue, ensure comparability, aggregation and transparency of results across member states, while reducing administrative burden - especially for SMEs and local authorities - by applying streamlined indicators, simplified templates and avoiding duplicate data requests. They want the Commission and member states to establish and consistently use throughout the next MFF a harmonised set of core indicators.

Simplification not at the cost of transparency

MEPs stress that simplification cannot come at the expense of transparency and accountability. They insist that performance data and methodologies should be made publicly available in real time through a secure, interoperable monitoring and reporting system that ensures traceability down to the project and final-beneficiary level. Enhanced transparency, they argue, is essential for preventing double funding and for strengthening accountability.

Quote

“The effectiveness of EU funding measures must be carefully evaluated. Performance indicators must be carefully designed and reflect not only outputs (e.g., the number of projects financed), but also outcomes and impacts (e.g., productivity gains, reduced emissions, jobs created, ratio of private equity mobilised in EU programmes), to measure the effectiveness and efficiency of EU spending. With a comprehensive set of performance indicators, it will be possible to evaluate both the direct effects of the financing on the economy as well as the long-term sustainability and growth of European competitiveness,” rapporteur Olivier Chastel (Renew, BE) said after the vote.

Next steps

The plenary vote will take place at one of the upcoming sessions.