EU sees fewer irregularities but higher costs in managing funds for 2025

The European Commission's annual report on financial management for 2025 reveals a complex picture of EU fund handling: while the number of reported irregularities has declined, the overall financial burden has notably increased. Authorities recorded 13,010 irregularities, a 7.6% decrease from the previous year, yet the total financial impact rose by 12.8% to 2.1 billion euros.

Cases of deliberate fraud saw a significant reduction, falling to 986 instances from 1,456 in 2024, representing 7.6% of all irregularities. The financial impact of these fraudulent cases also dropped considerably, by 49%, to 274.3 million euros. According to the European Anti-Fraud Office (OLAF), common fraud tactics include falsifying documents, misrepresenting values, and failing to meet eligibility criteria.

Conversely, non-fraudulent irregularities were primarily linked to incorrect customs declarations and procedural violations in Cohesion Policy public tenders. The report underscores the EU's strong emphasis on preventive measures and the early identification of suspicious transactions before funds are disbursed. European Commissioner for Budget, Piotr Serafin, stated, "Every euro lost to fraud is a euro stolen from European taxpayers," highlighting that preventive mechanisms have saved over 658 million euros in the last decade.

Despite these efforts, the report also points to institutional weaknesses, particularly the lengthy and complex nature of investigations. OLAF stresses the need for quicker information exchange and enhanced cooperation between administrative, auditing, and judicial authorities in member states, especially when cases proceed to legal action. Strengthening these mechanisms is deemed critical, particularly as remaining funds from the Recovery Fund are being disbursed alongside the regular EU budget for 2025.

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Every euro lost to fraud is a euro stolen from European taxpayers.