European Parliament approves budget implementation in 2016

On 18 April, the European Parliament gave the final approval, known as ‘discharge’, to the way in which the European Commission managed the EU budget in 2016. The annual discharge procedure allows the European Parliament and the Council to hold the Commission politically accountable for the implementation of the EU budget. It is granted by the European Parliament on a recommendation from the Council. Earlier, the European Court of Auditors signed off the EU accounts for the 10th consecutive year. The good results show that the Commission and the Member States improve financial management, effectively protect the EU budget and increase compliance. This vote also signals the European Parliament's strong support for the drive to further increase the efficiency and effectiveness of EU budgetary spending, an important element in the upcoming discussions about the future long-term EU budget.

Background

The Commission is responsible for implementing the EU budget in cooperation with Member States in line with the principles of sound financial management, i.e. funds shall be spent in an effective, efficient and economic manner. A control framework has been set up to provide reasonable assurance that EU funds are paid in accordance with the relevant rules, and that measures are taken to prevent, detect and correct errors. In addition, a performance framework has been developed for the EU budget, increasing the focus on achieving results.

The Commission reports on how it has implemented the budget in various ways, most importantly by publishing the Integrated Financial Reporting Package which consists of the annual accounts, the Annual Management and Performance Report and other accountability reports.

The annual discharge procedure allows the European Parliament and the Council to hold the Commission politically accountable for the implementation of the EU budget. It is granted by the European Parliament on a recommendation from the Council. This annual procedure enables the Council and the European Parliament to keep the management of the taxpayers’ money under democratic control.

When granted, the discharge leads to the formal closure of the accounts of the institution for a given year.

When deciding whether to grant discharge, the Parliament takes into consideration the Integrated Financial Reporting Package published by the Commission along with the European Court of Auditors' annual report on how the budget has been spent and any relevant special reports from the Court.

More information

Discharge procedure: questions and answers

Integrated Financial Reporting Package 2016

EU Results