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[BUSINESS] · EU, Italy · 29 sources

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European Court of Auditors warns of rising EU debt and spending errors

The European Court of Auditors (ECA) has issued a warning regarding the management of the European Union's finances. In its 2025 annual report, the ECA noted that the estimated error rate in EU spending rose to 3.8%, up from 3.6% in 2024. This includes significant irregularities in cohesion funds, where the error rate climbed from 5.7% in 2024 to 6.6% in 2025.

Auditors highlighted issues within the Recovery and Resilience Facility (RRF), noting that nine out of 37 grant payments made to Member States in 2025 did not comply with established rules. Common errors included violations of public procurement procedures and the financing of ineligible projects. The ECA also warned that EU debt could reach 1 trillion euros by 2027, with interest payments for the COVID-19 recovery fund potentially reaching 93 billion euros between 2028 and 2034.

Simultaneously, the European Parliament is debating the next Multiannual Financial Framework (2028-2034). MEPs are calling for a more ambitious budget to address structural challenges in security, climate, and competitiveness, resisting calls for reductions.

In Italy, the government's Public Finance Program Document (DPFP) projects 1% GDP growth for 2026 and a deficit of approximately 2.9%. While the document outlines a gradual decline in public debt starting in 2028, the country remains highly exposed to interest rate fluctuations.

Entities

European Commission · European Court of Auditors · European Parliament · European Union · Italian Government · Italy · National Recovery and Resilience Plan · Stef Blok · Tony Murphy

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Sources

Fazer contas à Europa [cnnportugal.iol.pt]