How the EU Spends its Money Abroad

The European Parliament's Decision on the EEAS Budget

The European Parliament has formally approved the European External Action Service's (EEAS) 2024 budget. This approval, known as a "discharge," confirms that the EEAS spent its money correctly and in line with EU rules.

Budget Spending Overview

• Total Spending: The total EEAS budget for 2024 was €1,239 million, representing a 4.4% increase from the 2023 amount of €1,186 million.
• Key Spending Areas:
  • The EEAS headquarters budget increased by 5% to €349 million.
  • The 145 global Union delegations saw a 4.7% increase, spending €531 million.
• Payments: While 100% of the budget was committed, only 88.4% of the money was actually paid out, a decrease from 91.9% in the previous year.
• Financial Issues: The spending included late payments, which accounted for 10.7% of all payments (approximately €57 million), and associated late-interest costs of €37,000.
• Additional Funds: The EEAS also received €359 million from the Commission to cover staff working in delegations and for the European Development Fund.

Audits and Assessments

The Court of Auditors examined 70 administrative transactions and found that the overall error level was below the material-risk threshold.

• Findings: Sixteen transactions (23%) contained errors. Specific errors noted included a contract amendment that lacked proper procurement procedures and a payment that used the wrong exchange rate.
• Overall Assessment: The Court concluded that the EEAS’s spending was low risk.

Key Areas for Improvement and Recommendations

The Parliament provided a detailed list of observations and recommendations for the EEAS to improve its operations in several areas:

Staff and Human Resources

• The EEAS should improve the recruitment of permanent staff, especially in delegations.
• It should involve local staff representatives in any plans for staff redundancies.
• The service must continue to prioritize staff safety and well-being.

Money and Management

• The EEAS needs to maintain a realistic budget that matches its actual needs.
• It should set yearly goals to reduce late payments and interest costs.
• It is recommended that delegations standardize electronic invoicing.

Diversity and Ethics

• The EEAS should strengthen efforts to ensure gender-balanced recruitment and support women in senior roles.
• It must fully cooperate with investigations and publish findings to strengthen procurement safeguards.

Operations and Security

• Procurement: The EEAS should continue simplifying rules for delegations, publishing procurement results, and maintaining a clear audit trail.
• Digital: It must keep up-to-date with AI and cybersecurity tools, provide mandatory training, and report on its AI strategy.
• Buildings: The EEAS should maintain the "One Delegation" principle, avoid cutting delegations, and improve security and accessibility.

Major Concerns Raised
The Parliament highlighted several specific concerns:

• Budget Constraints: Funding levels may threaten the ability to maintain delegations and ensure staff safety.
• Staff Redundancies: There is concern that local staff in delegations may face layoffs without adequate consultation or security guarantees.
• Procurement Irregularities: The investigation into a contract involving the College of Europe could undermine trust in EU procurement.
• Transparency: The EEAS should adopt internal transparency measures similar to those required for other EU institutions.

Broader context

The discharge decision is part of the EU’s annual budgetary process, where the European Parliament reviews how EU institutions—like the European External Action Service (EEAS)—spent their allocated funds. The EEAS is the EU’s diplomatic arm, responsible for managing foreign policy, diplomatic missions (delegations), and international cooperation. This process ensures accountability and transparency in how taxpayer money is used.

The 2024 budget was shaped by global challenges, including the war in Ukraine, inflation, and currency fluctuations, which increased financial pressure on the EEAS. The 2 % cap on non-salary spending further limited flexibility, leading to a €33 million deficit for delegations. The EEAS also faced scrutiny over procurement irregularities, such as a contract with the College of Europe, and human rights concerns, particularly regarding its agreement with Cuba.

The Court of Auditors plays a key role in this process by auditing transactions. Their low-risk assessment means the EEAS generally managed funds responsibly, though errors were found in 23 % of administrative transactions.

Impact on people living in the EU

The discharge decision has indirect but meaningful effects on EU citizens:

Diplomatic representation and security
The EEAS’s network of 145 delegations worldwide protects EU interests, supports citizens abroad, and negotiates trade or political agreements. Maintaining these delegations ensures consular assistance, crisis response, and economic opportunities for EU businesses and travelers.

Transparency and trust
By addressing procurement irregularities and adopting transparency measures, the EEAS strengthens public trust in EU institutions. This is especially important for citizens who expect fair and ethical use of funds.

Environmental and digital initiatives
The EEAS’s commitment to 100 % renewable electricity and a 28 % reduction in carbon intensity aligns with the EU’s Green Deal goals, benefiting long-term sustainability. Investments in AI and cybersecurity also enhance the EU’s ability to protect data and combat disinformation, which directly impacts citizens’ digital safety.

Human rights and global values
The EEAS’s stance on human rights, such as its inaction on suspending agreements with Cuba, reflects the EU’s global values. Citizens who prioritize human rights and democracy may see this as a gap in the EU’s moral leadership.

Economic stability
The EEAS’s budget constraints and late payments (10.7 % of all payments) can affect EU-funded projects and local economies where delegations operate. Efficient spending ensures that taxpayer money is used effectively for global and domestic benefits.