Parliament Confirms 2024 Budget Was Spent Properly

Budget Spending Review (The "Discharge")

The European Parliament reviewed how the EU spent its 2024 budget. If the spending was found to be correct, the Parliament granted a "discharge," which is a formal approval of the budget implementation.

Key Financial Points:

• The Parliament spent slightly more money in 2024 than in 2023.
• Most of the spending was allocated to staff costs, buildings, and IT systems.
• The total budget was €2.383 billion.

Oversight and Auditing

The spending was checked by several bodies:

• Court of Auditors: Found the overall spending risk to be low, and noted that the Parliament's error rate was not significant.
• Internal Auditor: Completed 24 out of 57 planned audit actions. However, 33 actions remain pending, particularly those related to cyber-security.
• Committee on Budgetary Control: Expressed satisfaction but requested greater transparency and faster follow-up on any spending irregularities.

Key Areas of Focus and Action

The Parliament addressed several specific areas in its resolution:

Political Groups and Spending

• The Identity & Democracy (ID) Group was found to have spent €4.3 million more than was allowed between 2019 and 2024.
• The Parliament is waiting for the European Public Prosecutor’s Office (EPPO) to conclude its investigation before deciding on any recovery of funds.
• Oversight of spending by political groups is being tightened.

Transparency and Ethics

• The Parliament must update its rules to fully comply with EU directives regarding whistle-blowers, as the Court of Justice noted that protection was incomplete.
• The resolution stressed the need for better monitoring of members' financial interests and a stronger culture of integrity.

Digitalization and Technology

• The Parliament is investing heavily in digital security, including building a secure data center and improving cybersecurity across all systems.
• It established an AI Governance Board and plans to make all committee debates searchable and publicly available.

Social and Financial Commitments

• Gender Equality: The Parliament must publish and monitor a Gender Action Plan, which requires considering gender perspectives in all spending.
• Pension Scheme: The Voluntary Pension Scheme (VPS) is facing financial difficulties. The Parliament has reduced future pension payments and must comply with a court ruling that dismissed a challenge to the scheme's rules.

Governance and Compliance

• European Political Parties: The Authority for European Political Parties and Foundations is strengthening rules to prevent foreign interference. New regulations require parties to check their member parties and foundations for compliance.
• Procurement: While the number of contracts awarded was lower than the previous year, the Parliament aims to improve transparency by making contracts over €15,000 publicly available in a machine-readable format.

Broader context

The discharge procedure is a key part of the EU’s financial accountability system. It ensures that EU institutions, like the European Parliament, use public funds responsibly and in line with EU laws and priorities. The 2024 discharge for the Parliament’s budget reflects the EU’s broader commitment to transparency, financial integrity, and democratic oversight.

This process is part of the EU’s annual budget cycle, where the Parliament not only approves the budget but also reviews its execution. The Court of Auditors plays a central role in this process by auditing the accounts of all EU institutions, ensuring that taxpayer money is spent correctly. The low error rate found in the Parliament’s spending aligns with the EU’s overall goal of maintaining high standards in financial management.

The Identity & Democracy (ID) Group case highlights ongoing challenges in ensuring that political groups within the Parliament adhere to financial rules. This is part of a wider effort across the EU to combat misuse of funds and foreign interference in political processes, as seen in the new regulations for European political parties and foundations.

The focus on gender equality, whistleblower protection, and digitalization reflects the EU’s modern priorities. The Gender Action Plan and AI Governance Board are examples of how the EU is integrating social and technological advancements into its operations. The push for transparency in procurement and contracts is another step toward making EU institutions more open and accountable.

The Voluntary Pension Scheme (VPS) issue underscores the financial challenges faced by EU institutions, particularly in managing long-term liabilities. The Parliament’s actions to address the deficit and comply with court rulings demonstrate its commitment to fiscal responsibility.

Impact on people living in the EU

The discharge decision and accompanying resolution have several implications for EU citizens:

Financial accountability
The approval of the Parliament’s 2024 budget spending means that EU funds—which come from taxpayers—were used appropriately. This ensures that public money is spent on intended purposes, such as staff salaries, IT systems, and parliamentary assistance, rather than being wasted or misused.

Transparency and ethics
The push for greater transparency in spending, procurement, and political group finances means citizens can have more confidence in how their money is being used. Improved whistleblower protections and ethical oversight also help ensure that corruption and misuse of funds are reported and addressed.

Gender equality
The Gender Action Plan aims to ensure that gender perspectives are considered in all spending decisions. This can lead to more inclusive policies and better representation of women in EU institutions, which ultimately benefits all citizens by promoting fairness and equality.

Digitalization and cybersecurity
Investments in secure digital tools, AI, and cybersecurity will make the Parliament’s work more efficient and accessible. For example, making committee debates searchable and publicly available allows citizens to stay informed about discussions and decisions that affect them. Better digital tools also help protect against cyber threats, which can impact the security of personal data and EU operations.

Political group oversight
Stronger oversight of political groups’ spending helps prevent misuse of funds, ensuring that resources are used for their intended purposes. This is particularly important in maintaining trust in the EU’s political processes.

Pension scheme adjustments
Changes to the Voluntary Pension Scheme (VPS) may affect current and former EU staff, but they also ensure the long-term sustainability of the scheme. This helps protect the financial stability of the EU’s administrative systems, which indirectly benefits all citizens by ensuring the EU can continue to function effectively.

European political parties and foundations
New rules to prevent foreign interference and ensure compliance with EU values help protect the integrity of European democracy. This ensures that political parties and foundations operate in the best interests of EU citizens.