**Keravnos Hails EU Agreement on Budget Monitoring Mechanism**
Finance Minister Makis Keravnos expressed optimism on Friday following the European Union's agreement on a new mechanism designed to monitor and evaluate the bloc's upcoming multiannual financial framework (MFF) for the period from 2028 to 2034. This development is seen as a significant step towards ensuring effective oversight of the EU budget, which is crucial for member states, regions, beneficiaries, and citizens.
Keravnos emphasized the importance of oversight in budgeting, stating, “Every budget needs appropriate oversight and evaluation. The multiannual financial framework is no different.” He highlighted that the newly established performance regulation aims to deliver maximum transparency, accountability, and visibility for the EU budget. The minister underscored that the ultimate goal is to ensure that the budget effectively serves the interests of all stakeholders involved.
The mechanism, referred to as the "performance framework regulation," is designed to simplify the monitoring process of the MFF. According to the Council of the EU, this regulation aims to enhance coherence among budgetary programs, reduce complexity for beneficiaries, improve transparency, and lower costs across the board. The regulation will outline principles and targets, including the principle of "doing no significant harm," as well as principles related to gender equality and environmental sustainability.
A key aspect of the new framework is the harmonization of the monitoring system for EU spending, which includes the creation of a new online "single gateway" for budget performance reporting. This initiative is expected to streamline the evaluation of programs and activities funded by the EU, ultimately leading to more efficient use of resources.
The recent agreement enables the Council of the EU to begin negotiations with the European Parliament regarding the specifics of the monitoring mechanism. The Council aims to provide legal certainty, operational stability, and flexibility for member states in this context. Additionally, it seeks to enhance the monitoring of environmental compliance by requesting the European Commission to develop a methodology for assessing adherence to the principle of "no significant harm."
In an effort to improve efficiency and reduce administrative burdens, the Council has proposed that reporting requirements for member states concerning their use of EU funds should be proportionate and adhere to the "once-only principle." This approach is intended to make the reporting process less cumbersome for member states while ensuring accountability.
The agreement comes at a time when EU member states are aligning their positions on the multiannual financial framework. A partial agreement has also been reached regarding the Horizon Europe program, which is the EU's funding mechanism for research and innovation. In recent weeks, member states have made progress on funding for the EU's foreign policy arm, known as "Global Europe," as well as on competitiveness initiatives.
The Cypriot government, under the rotating presidency of the Council of the EU, submitted a budget proposal, referred to as a "negotiating box," earlier this month. President Nikos Christodoulides remarked at last week's European Council summit that Cyprus had successfully presented a negotiating box with figures and secured partial general approaches on key financial instruments and sectoral proposals. He acknowledged the differing opinions among member states regarding the proposal, stating, “I see it as a success the fact that not a single one of you is 100 percent satisfied with the figures.” This sentiment reflects the necessity for a balanced compromise among member states.
Christodoulides emphasized the importance of reaching a consensus and having the budget finalized by the end of the year. While the specific reasons for the urgency have not been publicly confirmed, it is widely believed that the EU aims to finalize the budget before potential electoral shifts in member states, particularly in France and Poland, where the rise of far-right political factions could complicate negotiations.
As the EU moves forward with these discussions, the agreement on the monitoring mechanism represents a crucial step in ensuring that the upcoming budget serves its intended purpose effectively and transparently.