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[BUSINESS] · EU · 27 sources

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European Union debt could reach €1 trillion by 2027

The European Court of Auditors (ECA) has issued a warning regarding the European Union's financial trajectory, noting that collective EU debt could reach €1 trillion by 2027. This increase is largely driven by the NextGenerationEU recovery package. The ECA also reported that 3.8% of the EU budget spending last year, excluding the recovery fund, breached established funding rules, a rise from 3.6% in 2024.

Budgetary errors were particularly high in specific sectors: cohesion policy funding error rates rose from 5.7% to 6.6%, while agriculture and environment funding increased from 2.6% to 3.9%. The ECA noted that the EU budget has received an adverse opinion for seven consecutive years due to widespread and material errors. Additionally, auditors identified 17 suspected cases of fraud.

In a separate development, EU finance ministers have reached an agreement to strengthen the European Securities and Markets Authority (ESMA). The reform aims to unify financial markets by granting ESMA enhanced supervisory powers over major market operators, including trading venues and clearing houses, to improve cross-border regulation and economic competitiveness.

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European Commission · European Court of Auditors · European Securities and Markets Authority · European Union · Germany · NextGenerationEU · Ukraine

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