Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

▸10 unchanged paragraphs

on the protection of the European Union’s financial interests – combating fraud – annual report 2024

(2025/2238(INI))

The European Parliament,

– having regard to Articles 310(6) and 325(5) of the Treaty on the Functioning of the European Union (TFEU),

– having regard to the Commission report of 25 July 2025 entitled ‘36th Annual Report on the protection of the European Union’s financial interests and the fight against fraud – 2024’ (COM(2025)0426) (2024 PIF Report),

– having regard to the 2024 annual report of the European Anti-Fraud Office (OLAF)1 and to the 2024 activity report of the Supervisory Committee of OLAF2,

– having regard to the 2024 annual report of the European Public Prosecutor’s Office (EPPO), published on 3 March 2025,

– having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget3 (the Conditionality Regulation),

– having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union4 (the Financial Regulation),

– having regard to Regulation (EU) 2024/16245, Regulation (EU) 2024/16206 and Directive (EU) 2024/16407, all of the European Parliament and of the Council, all adopted on 31 May 2024 and all concerning the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, including through the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism,

Removed– having regard to Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law8 (the Whistleblower Directive) and to the Commission report of 3 July 2024 on its implementation and application (COM(2024)0269),

Added– having regard to Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021 laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime, Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for Border Management and Visa Policy8 (the Common Provisions Regulation),

Changed– having regard to Directive (EU) 2017/13712019/1937 of the European Parliament and of the Council of 523 JulyOctober 20172019 on the fightprotection againstof fraudpersons who report breaches of Union law9 (the Whistleblower Directive) and to the Union’sCommission financialreport interestsof by3 meansJuly of2024 criminalon law9its (theimplementation PIFand Directive),application (COM(2024)0269),

Added– having regard to Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law10 (the PIF Directive),

– having regard to the Commission report of 16 September 2022 entitled ‘Second report on the implementation of Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union’s financial interests by means of criminal law’ (COM(2022)0466),

– having regard to the joint Europol-OLAF report of 6 June 2023 entitled ‘Assessing the Threats to the NextGenerationEU (NGEU) Fund’,

Changed– having regard to the annual reports of the European Court of Auditors (ECA) on the implementation of the Union budget and the activities financed by the 9th, 10th and 11th European Development Funds (EDFs) for the financial year 202410,202411,

Changed– having regard to ECA special report 06/2023 of 13 March 2023 entitled ‘Conflict of interest in EU cohesion and agricultural spending – Framework in place but gaps in transparency and detection measures’11,measures’,

Changed– having regard to ECA special report 03/2024 of 22 February 2024 entitled ‘The rule of law in the EU – An improved framework to protect the EU’s financial interests, but risks remain’12,remain’,

Changed– having regard to ECA Review 02/2025 of 6 May2025 entitled ‘Performance-orientation, accountability and transparency – lessons to be learned from the weaknesses of the RRF’13,RRF’,

Changed– having regard to ECA special report 08/2025 of 24 March 2025 entitled ‘Value Added Tax fraud on imports – The EU’s financial interests are insufficiently protected under simplified import customs procedures’14procedures’ and to the Commission report entitled ‘VAT gap in the EU – 2024 report’15,report’12,

Changed– having regard to ECA special report 09/2025 of 10 March 2025 entitled ‘Systems for ensuring compliance of RRF spending with public procurement and state aid rules – Improving but still insufficient’ 16,insufficient’,

Changed– having regard to ECA special report 13/202515/2025 of 18 June 2025 entitled ‘EU humanitarian aid under remote management – Can save lives, but there are weaknesses in the approach’17,approach’,

Changed– having regard to the ECA special report 26/202522/2025 of 1520 DecemberNovember 2025 entitled ‘EU‘Financial bodiescorrections fightingin fraudcohesion policy – ClearA mandatescomplex butframework exchangeand ofonly informationone anddecision Commissionadopted oversightby remainthe insufficient’18,Commission so far’,

Removed– having regard to Special Eurobarometer 548 entitled ‘Citizens’ attitudes towards corruption in the EU in 2024’19,

Added– having regard to ECA special report 26/2025 of 15 December 2025 entitled ‘EU bodies fighting fraud – Clear mandates but exchange of information and Commission oversight remain insufficient’,

Removed– having regard to its resolution of 6 May 2025 on the protection of the European Union’s financial interests – combating fraud – annual report 202320,

Added– having regard to Special Eurobarometer 548 entitled ‘Citizens’ attitudes towards corruption in the EU in 2024’,

Added– having regard to its resolution of 6 May 2025 on the protection of the European Union’s financial interests – combating fraud – annual report 202313,

– having regard to Rule 55 of its Rules of Procedure,

Changed– having regard to the report of the Committee on Budgetary Control (A10-0000/2025),(A10-0080/2026),

A. whereas every year, the Commission submits a report, known as the PIF Report, to Parliament and the Council, drafted in cooperation with the Member States on the measures taken for the implementation of Article 325(5) TFEU;

Change 1

ChangedB. whereas the sound management of the EU’s resources, both for expenditure and for revenue, and the protection of the EU’s financial interests, should form key components of any EU policy, so as to foster their efficienteffective implementation, ensure that taxpayers’ money is used properlyproperly, efficiently and effectivelytransparently, and increase citizens’ confidence in the EuropeanEU institutions;

Change 2

ChangedC. whereas the annual PIF Report is mainly based on information provided by the Member States,States via the Irregularity Management System (IMS),(IMS) and by the Commission,Commission via its accounting system (ABAC), which includes data on irregularities and on fraud detection, which is analysed to identify areas deemed most exposed;

Change 3

RemovedD. whereas the description and analysis in the PIF Report of the measures adopted to combat fraud and irregularities should make it possible to identify and implement more targeted actions at both EU and national level;

AddedD. whereas on 6 May 2025, Parliament adopted its resolution on the protection of the EU’s financial interests for 2023, calling for the PIF Report to serve as a tool to strengthen the governance of the EU’s anti-fraud architecture (AFA) and to adopt a more holistic approach;

RemovedE. whereas the protection of the EU’s financial interests must be supported by an analysis based on reliable data;

AddedE. whereas the description and analysis in the PIF Report of the measures adopted to combat fraud and irregularities should make it possible to identify and implement more targeted actions at both EU and national levels; whereas the detection of fraudulent irregularities continues to improve across the EU, but recovery actions remain uneven in some Member States; whereas effective protection of the EU’s financial interests would require both comprehensive detection and consistent judicial and administrative follow-up to prevent, correct, and deter the misuse of EU funds;

RemovedF. whereas, considering the disparities between the Member States, in particular as regards the detection and reporting of irregularities, the diversity of administrative systems in the Member States hinders the implementation of the objective of a common level of national management, control and reporting systems in the Union; whereas, if the diversity of administrative systems in the Member States is not addressed in a consistent manner by enhancing interoperability and digitalisation, it risks undermining the reliability, comparability and usefulness of data and reports; whereas, to this end, it seems necessary that genuine common guidelines worthy of the name and robust standard procedures be implemented effectively and more efficiently in order to achieve a more standardised and uniform management and treatment of European funds and the protection of the Union’s financial interests in the same way in all Member States;

AddedF. whereas the protection of the EU’s financial interests must be supported by an analysis based on reliable data; whereas the potential of digital tools, including risk-scoring systems and interoperable databases to prevent and detect fraud should be promoted; whereas the deployment of advanced analytics and predictive tools remains limited; whereas fostering the development and adoption of such tools contributes to more efficient and effective management of EU funds and strengthens the protection of the EU’s financial interests;

RemovedG. whereas the EU and its Member States share responsibility for the protection of the Union’s financial interests, which covers the deployment of funds under the Recovery and Resilience Facility (RRF)21 and the implementation of the national recovery and resilience plans; whereas the role of national authorities in ensuring an adequate level of protection of the Union’s financial interests has significantly increased under NextGenerationEU (NGEU) and the proposal for the future multiannual financial framework (MFF);

AddedG. whereas considering the disparities between the Member States, in particular as regards the detection and reporting of irregularities, the diversity of administrative systems in the Member States hinders the implementation of the objective of a common level of national management, control and reporting systems in the EU; whereas a limited number of Member States have adopted fully comprehensive anti-fraud strategies covering all relevant sectors; whereas strengthening governance structures, ensuring coordination among authorities, and establishing measurable objectives at national level are essential to protect the EU budget and improve the effectiveness of EU-wide anti-fraud measures; whereas, if the diversity of administrative systems in the Member States is not addressed in a consistent manner by enhancing interoperability and digitalisation, it risks undermining the reliability, comparability and usefulness of data and reports; whereas to this end, it seems necessary that genuine common guidelines worthy of the name and robust standard procedures be implemented effectively and more efficiently in order to achieve a more standardised and uniform management and treatment of EU funds and the same protection of the EU’s financial interests in all Member States;

RemovedH. whereas criminal organisations, attracted by the unprecedented volume of resources deployed under the MFF and NGEU programmes, are particularly active in intercepting EU funds and are able to exploit the heterogeneity of Member States’ administrative, control and sanctioning systems to penetrate their economic, financial, commercial, social and political fabric, thereby undermining the financial interests of the Union;

AddedH. whereas the EU and its Member States share responsibility for the protection of the EU’s financial interests, which covers the deployment of funds under the Recovery and Resilience Facility (RRF)14 and the implementation of the national recovery and resilience plans; whereas the role of national authorities in ensuring an adequate level of protection of the EU’s financial interests has significantly increased under NextGenerationEU (NGEU) and the proposal for the future multiannual financial framework (MFF);

RemovedI. whereas the protection of the EU budget is based on an anti-fraud architecture22, involving multiple actors at EU and Member State level, and allowing for cooperation between authorities responsible for administrative and criminal investigations; whereas the actions of the EPPO, OLAF, Europol and Eurojust have contributed to the fight against crimes affecting the financial interests of the Union, but their effectiveness depends on enhanced coordination between them and with the competent national authorities and international partners;

AddedI. whereas the Commission is obliged to apply financial corrections to Member States in order to exclude from EU financing expenditure incurred in breach of the applicable law;

AddedJ. whereas criminal organisations, attracted by the unprecedented volume of resources deployed under the MFF and NGEU programmes, are particularly active in intercepting EU funds and are able to exploit the heterogeneity of Member States’ administrative, control and sanctioning systems to penetrate their economic, financial, commercial, social and political fabric, thereby undermining the EU’s financial interests;

AddedK. whereas the concerning and worrying phenomenon of entryism has been highlighted in several Member States and the Commission is expected to exercise the utmost vigilance and to put in place the necessary checks to ensure that EU funds do not indirectly encourage or support such movements that run counter to the values upheld by the EU;

AddedL. whereas the protection of the EU budget is based on an AFA, involving multiple actors15 at EU and Member State levels, and allowing for cooperation between authorities responsible for administrative and criminal investigations; whereas the actions of the EPPO, OLAF, Europol and Eurojust have contributed to the fight against crimes affecting the EU’s financial interests, but their effectiveness depends on enhanced coordination between them and with the competent national authorities and international partners;

AddedM. whereas effective protection of the EU budget requires close cooperation between authorities conducting administrative investigations and those conducting criminal investigations at both EU and Member State levels and this cooperation should be encouraged; whereas not only cooperation but also systematic coordination is needed; whereas regular information sharing and joint risk analysis would avoid fragmented protection and ensure timely and coherent action against fraud and irregularities;

N. whereas value added tax (VAT) is an important source of revenue for national budgets and VAT-based own resources, which accounted for around 14 % of the EU’s total own resources in 2024 and around 10 % in 2023; whereas the emergence of cases of VAT carousel fraud has intensified in recent years and has seen the increasing involvement of organised criminal networks;

Change 4

ChangedK.O. whereas corruption is one of the most serious crimes with a cross-border dimension and affects all Member States to varying degrees; whereas it erodes citizens’ trust in the UnionEU and undermines the Union’sEU’s financial interests and economy as a whole, as well as democracy and the rule of law in the Union;EU;

P. whereas conflicts of interest are not duly and fully reported in the current monitoring databases; whereas they deserve the highest consideration, as they represent a serious threat to the credibility of institutions and supporting authorities and a breach of taxpayers’ trust;

Change 5

ChangedM.Q. whereas the protection of the Union’sEU’s financial interests must be fully integrated into all EU external action instruments, given that financial support to non-EU countries inherently entails an increased risk of fraud, misappropriation and misuse of funds compared to direct implementation, and must therefore be accompanied by robust safeguard measures ensuring the consistent use of UnionEU funds, as well as mechanisms allowing for protective interventions at all times in order to prevent, detect and correct possible breaches; whereas transparency in the allocation of EU funds to non-governmental organisations is essential to ensure the sound management of public resources and to prevent undue influence on the EU’s decision-making processes;

General remarks on PIF reports and major issues

Change 6

Removed1. Takes note of the 2024 PIF report, endorses its four recommendations but considers them insufficiently ambitious, particularly regarding transparency and the means by which citizens and their elected representatives can monitor the use of funds, as annual reports alone offer only a partial and filtered view of the real problems;

Added1. Takes note of the 2024 PIF Report and endorses its four recommendations but considers that they are not sufficiently ambitious, in particular as regards transparency and accountability; stresses that citizens and their elected representatives must be able to effectively monitor how EU funds are used; stresses that enhanced transparency is essential and should allow for value for money to be demonstrated; notes that annual reporting alone provides only a partial overview of the real problems and does not provide the focused analysis required to tackle the issues reported; requests that the Commission keep improving the quality, consistency and analytical value of data used in the report, in order to support meaningful transparency and effective democratic scrutiny and to explore periodic reporting formats that would allow for effective parliamentary scrutiny beyond the annual PIF reporting cycle; encourages the Commission and the Member States to maximise transparency in the use of funds, including with regard to information about final beneficiaries; in this context, recalls that Parliament, as the discharge authority, has an important role to fulfil for EU citizens and considers that the Committee on Budgetary Control in particular should be able to play a more structured and continuous role in monitoring the protection of the EU’s financial interests; reiterates that communication about the use of EU funds is essential to address fraud and corruption;

Change 7

Changed2. Reiterates that the protection of the Union’sEU’s financial interests faces significant challenges in an increasingly complex and rapidly evolving context and that its effectiveness can only be achievedensured through joint and coordinated actions by judicial and administrative authorities, the EuropeanEU institutions and entities and the Member States; stresses that cooperation must include systematic information sharing, joint risk analysis and operational coordination; urges the Member States to adopt a proactive stance in safeguarding the EU’s financial interests and strengthening information exchange both among national authorities and with EU bodies and agencies, in order to detect and address emerging risks and fraud patterns promptly; recalls that all stakeholders and all the tools made available by the relevant financial regulations and EPPO operations must contribute to the protection of the EU’s financial interests;

Change 8

Removed3. Stresses that only enhanced digitalisation, including through national anti-fraud strategies, process digitalisation and the use of common digital tools, will enable knowledge sharing, accessibility and data processing, as well as the comprehensive reporting necessary for results-based governance in the protection of the Union’s financial interests; notes that only enhanced digitalisation can provide the foundation for genuine transparency to citizens and their elected representatives, which is essential when public money is at stake;