The EU budget has helped ensure a swift and comprehensive EU response to the coronavirus crisis and its consequences, while supporting overarching EU priorities. This involved mobilising financial resources rapidly and flexibly to address the most pressing needs, without making any compromise on applying the highest standards of financial management.
Today the Commission presents two complementary pieces on EU budget performance reporting:
The first document – the Annual Management and Performance Report – has shown that, despite its relatively small size, the EU budget is capable of achieving major results, and can play a critical role in times of crisis. The robust internal control framework of the Commission ensured that the EU budget remained well and effectively protected throughout the year.
The performance framework – the subject of the second document – will make sure that the European Commission preserves the strong focus on the achieved results in the future, starting from the effective implementation of the current multiannual financial framework, complemented by the NextGenerationEU recovery instrument. Taken together, the two represent the largest stimulus package ever financed from the EU budget.
Johannes Hahn, Commissioner in charge of the EU Budget and Administration, said: “2020 was an extremely challenging year due to the coronavirus pandemic but once more, the EU demonstrated its ability to cope with this challenge. Thanks to the EU budget, the EU put forward an unprecedentedly swift and comprehensive response to help overcome the health, economic and social repercussions of the pandemic, while extending our solidarity well beyond our borders. While fighting the pandemic, we kept our focus on our priorities and met all our budgetary goals, including in terms of climate and biodiversity. As for the forthcoming years, the Commission has a great responsibility to continue to implement effectively the long-term EU budget and NextGenerationEU. Even in times of crisis it remains our objective to maximise the effectiveness of EU spending besides continuing to deliver for EU citizens and partners beyond.”
The EU’s Annual Management and Performance Report (AMPR) for the EU budget for 2020
The Annual Managament and Performance Report for the EU budget is the document through which the Commission takes overall political responsibility for the management of the previous’ year EU budget.
The 2020 Annual Managament and Performance Report demonstrates that the EU used its 2020 budget rapidly and effectively to mitigate the coronavirus crisis and its consequences.
While fighting the pandemic, the EU continued making progress on its political priorities through the EU budget:
The EU budget was able to achieve these results while at the same time safeguarding taxpayers’ interests thanks to effective measures against fraud and irregularities.
The report also shows that the EU Budget was well-managed in 2020, thanks to
In particular, the risk of mistakes when paying out funds to our partners and beneficiaries is estimated at 1.9% of the overall volume. Many of these errors, estimated to correspond to 1.0% of the overall volume, are actually found and corrected before the programmes are closed. That leaves us with a risk for actual mistakes of 0.9% of the overall volume, which is well below the 2% materiality threshold, as applied by the European Court of Auditors.
Performance Framework for the EU’s 2021-2027 long-term EU budget
Spending the EU resources effectively is all the more important given the unprecedented size and role of the EU Budget post-2020 and the creation of the Recovery Instrument NextGenerationEU.
Annual Management and Performance Report (AMPR)
Through the Annual Managament and Performance Report, the Commission takes overall political responsibility for the management of the previous’ year EU budget. It is foreseen by Article 318 TFEU and Article 247 of the Financial Regulation, and is part of the Integrated Financial and Accountability Reporting (IFAR) package, which the Commission submits in support of its request for discharge to the European Parliament. The discharge is the procedure through which the European Parliament evaluates the implementation of the EU Budget by the Commission.
The Annual Managament and Performance Report is based on:
The Commission is publishing the Annual Managament and Performance Report on the implementation of the 2020 budget at the same time as the Draft Budget for 2022. This provides stakeholders with one comprehensive set of performance information, consistent across both the draft budget and the discharge procedures. The Commission thus emphasizes its focus on performance and the role of performance information in budgetary planning.
The main report has been purposefully kept very short (10 pages) to maximize its accessibility and readership. This enhances the Commission’s accountability. The annexes provide valuable additional information. In particular:
The Commission Communication to the European Parliament and the Council on the Performance Framework for the EU Budget under the 2021-27 MFF highlights the importance the Commission attaches to the effective implementation of the budget. The Commission issues this Communication in the context of the transition between two multiannual financial frameworks, which provides an opportunity to explain the performance framework and the Commission’s plans for its further improvement.
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