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

The Committee on Regional Development calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Notes that, according to the Court of Auditors annual report for 2024, the estimated level of error in spending in the area of ‘Cohesion, resilience and values’ amounts to 5,7 %, down from 9.3 % in 2023; notes that the Commission estimates the risk at payment for this spending area at 2.9 %; acknowledges the different methodologies of each of the institutions and the conclusion of a recent study that the error rate and risk at payment are not directly comparable; notes that both institutions agree that spending in this area is materially affected by errors;

2. Notes that both the Commission and the Court of Auditors have repeatedly stated that the complexity of the rules governing cohesion policy is responsible for a large share of the errors in this spending area; reiterates its previous calls for further simplification, which would reduce the risk of errors and, at the same time, ease beneficiaries’ access to funding; reiterates that the partnership principle, shared management and decentralisation must be at the heart of any future simplification of the policy;

3. Recalls that in 2024, several amendments to the cohesion policy framework, namely STEP and RESTORE, entered into force; highlights the importance of these instruments to enhance EU competitiveness and addressing the consequences of natural disasters; reiterates, nevertheless, that constant amendments to the cohesion policy framework lead to legal uncertainty and instability, and could undermine the long-term structural cohesion objectives of reducing disparities across the EU;

4. Highlights the role of the European Anti-Fraud Office and the European Public Prosecutor’s Office in protecting the financial interests of the Union and defending the rule of law; reiterates the need to provide these EU bodies with sufficient resources.

5. Is deeply concerned about the current EU budget proposals for 2028-2034, which intend to deliver cohesion policy through 27 separate national and regional plans and to apply a cash for reforms approach; rejects the proposed merging of cohesion, agricultural and fisheries funds, as it would put in a direct competition both local and regional authorities and all the sectoral policies covered by the fund; firmly rejects any attempt to nationalise cohesion policy planning; is concerned about the impact of the proposed model on the placed-based approach and multilevel governance of cohesion policy; stresses that the involvement of local and regional authorities in the design and implementation of cohesion policy should be mandatory.