On Thursday 12 December 2019, the European Court of Auditors (ECA) will publish a special report on the indicators the EU uses for granting budget support to partner countries.
ABOUT THE AUDIT
The ECA assessed whether the European Commission uses relevant and reliable performance data for disbursing budget support. In particular, the auditors examined whether indicators allow sound results to be monitored and whether the Commission effectively checks the accuracy of performance data in the requests for disbursements.
Overall, the report is expected to point out to weaknesses in some indicators used and in the verification of the payment for variable tranches. Based on their findings, the auditors will make a number of recommendations to the European Commission.
ABOUT THE TOPIC
Budget support is a form of EU aid which involves transferring money to the national treasury of a partner country, subject to its compliance with agreed conditions for payment. Across the 270 ongoing budget support contracts, the EU committed for a total of €12.7 billion. Budget support payments are made in the form of either fixed or variable tranches. The amounts paid from variable tranches depend on the performance achieved by partner countries, which is measured by pre-defined indicators.
The ECA’s special reports set out the results of its audits of EU policies and programmes or management topics related to specific budgetary areas. The ECA selects and designs these audit tasks to be of maximum impact by considering the risks to performance or compliance, the level of income or spending involved, forthcoming developments and political and public interest.