In a series of votes conducted on Wednesday, Members of the European Parliament (MEPs) approved the discharge of all but two EU bodies, endorsing the financial management practices employed by the European Commission in the fiscal year 2023. The European Commission, which oversees more than 95% of the EU's expenditures, received discharge approval after a vote of 412 in favor, 245 against, and 5 abstentions.

Despite this approval, MEPs expressed serious concerns regarding systemic issues that potentially jeopardize the EU's financial integrity and operational effectiveness.

Among the primary concerns is the reported 5.6% error rate in EU spending, which has now increased for three consecutive years.

In a resolution accompanying the discharge vote for the Commission—adopted with 443 votes in favor, 202 against, and 21 abstentions—MEPs urged the Commission to deliver a specific action plan within four months aimed at addressing this high error rate.

They also insisted on enhanced fraud detection and audit protocols, precise definitions of milestones and targets, and measures to prevent double funding and the misuse of pre-existing projects under the Recovery and Resilience Facility (RRF).

Unpaid commitments reached a historic €543 billion in 2023, significantly exceeding the EU's annual budget.

MEPs cautioned that this backlog poses risks for timely project execution, advocating for more realistic budget forecasting approaches.

Additionally, the EU's borrowing by the end of 2023 stood at €458.5 billion, with anticipated increases due to rising interest rates and a lack of a repayment strategy, which MEPs claimed could undermine fiscal stability and impede future EU initiatives.

The Parliament further called for enhanced financial transparency for non-governmental organizations (NGOs) and interest groups, requesting the Commission to provide the results of its internal contract assessments to the Parliament.

It mandated that all entities seeking funding be registered in the EU Transparency Register and disclose their primary financiers.

MEPs stressed that alignment with core EU values and transparency in funding sources should be prerequisites for accessing EU institutions and financing.

Niclas Herbst, the rapporteur responsible for the Commission's discharge, highlighted the need for increased oversight of funds transferred to member states via the RRF.

Herbst pointed out that Parliament and the European Court of Auditors lacked sufficient involvement in monitoring these transfers.

Concerns were raised over the use of RRF funds to finance questionable national budget priorities, which could lead to long-term repercussions for future generations.

Discharge decisions for the Council and the EU Asylum Agency were postponed.

This continuation of delayed actions has occurred every year since 2009 for the Council, attributed to insufficient cooperation with the European Parliament.

MEPs postponed the decision regarding the Asylum Agency based on troubling findings from the European Anti-Fraud Office (OLAF), which raised significant concerns about the Agency’s operational stability and governance.

Through the discharge procedure, the European Parliament maintains democratic oversight over the execution of the EU budget, holding the Commission and other EU institutions accountable for the management of EU funds.

The Parliament’s Committee on Budgetary Control (CONT) investigates financial management based on reports from the Commission and the European Court of Auditors, facilitating hearings with officials as needed.

As the European Parliament moves forward, it also lays the groundwork for a more ambitious multiannual financial framework (MFF) for 2028-2034, calling for a spending ceiling above the current limit of 1% of the EU-27’s gross national income.

MEPs insist on an enhanced budget that addresses pressing global crises and economic competitiveness while reinforcing social cohesion and environmental goals.