Committee on Budgetary Control

Committee on Budgetary Control
Name	Committee on Budgetary Control
Chamber	European Parliament
Type	Parliamentary committee
Established	1989
Jurisdiction	European Union budgetary oversight
Members	Members of the European Parliament

Committee on Budgetary Control

The Committee on Budgetary Control is a committee of the European Parliament charged with scrutiny of the European Union budget, audit processes, and financial management. It exercises oversight through annual discharge procedures, special inquiries, and coordination with the European Court of Auditors, the European Commission, the Council of the European Union, and national audit bodies. The committee's work affects funding administered under instruments such as the Multiannual Financial Framework, MFF 2014–2020, and MFF 2021–2027.

Overview and Mandate

The committee's mandate derives from provisions in the Treaty on European Union, the Treaty on the Functioning of the European Union, and the Interinstitutional Agreement on Budgetary Discipline and Cooperation. Its remit includes examination of the annual accounts presented by the European Commission, collaboration with the European Court of Auditors, and preparation of the Parliament's position on discharge of the European Commission from implementation of the budget. The committee also monitors implementation of programs under the Cohesion Fund, European Regional Development Fund, European Social Fund, Common Agricultural Policy, and the Horizon 2020 and Horizon Europe research frameworks.

Membership and Leadership

Membership comprises Members of the European Parliament (MEPs) drawn from political groups including the European People's Party (EPP), Progressive Alliance of Socialists and Democrats (S&D), Renew Europe, Identity and Democracy (ID), Greens/European Free Alliance, and European Conservatives and Reformists (ECR). Chairs and vice-chairs have included notable MEPs who liaise with presidents of the European Parliament, rapporteurs for the annual budget, and shadow rapporteurs from groups such as The Left. The committee appoints rapporteurs for discharge reports and special scrutiny, and works with delegations to national parliaments like the Bundestag, Assemblée nationale, and Congreso de los Diputados.

Powers and Procedures

The committee can invite officials from the European Commission, commissioners such as the European Commissioner for Budget and Administration, and auditors from the European Court of Auditors to hearings. It prepares the Parliament's discharge recommendations, and can propose motions for resolutions debated in plenary sessions presided over by the President of the European Parliament. The committee exercises powers during interinstitutional negotiations with the Council of the European Union, interacts with the European Investment Bank on financial instruments, and scrutinizes implementation of funds distributed to beneficiary states including Poland, Greece, and Romania.

Role in EU Budget Cycle

Throughout the EU budget cycle the committee examines the draft budget submitted by the European Commission and coordinates amendments with standing committees responsible for policy areas such as Agriculture, Regional Development, and Industry. It assesses spending for programs like the Connecting Europe Facility, Creative Europe, and Erasmus+, and contributes to negotiations on the own resources system involving institutions such as the European Central Bank, the European Investment Bank, and national treasuries including the HM Treasury prior to Brexit. The committee's discharge process culminates in a plenary vote that can accept or reject the Commission's financial management.

Major Inquiries and Reports

The committee has led high-profile inquiries and produced reports on issues such as alleged mismanagement in the European Development Fund, irregularities in projects financed under the Instrument for Pre-accession Assistance, and fraud cases involving contractors in Bulgaria and Hungary. It has scrutinized financial implications of enlargement rounds involving Croatia and Turkey, analyzed spending during COVID-19 pandemic through the Next Generation EU recovery instrument, and issued special reports on topics tied to the Common Foreign and Security Policy and external action funds managed by the European External Action Service. The committee frequently references audit opinions of the European Court of Auditors and collaborates with OLAF, the European Anti-Fraud Office.

Interactions with Other EU Institutions

The committee maintains formal relations with the European Commission's services including DG BUDG and DG REGIO, and cooperates with the Council of the European Union during budgetary conciliation and trilogues involving the European Parliament's negotiating teams. It subpoenas witnesses and summons commissioners when necessary, coordinating with judicial bodies like the Court of Justice of the European Union on legal interpretations of budgetary law. The committee exchanges information with supranational institutions such as the Organisation for Economic Co-operation and Development and international partners including the World Bank, International Monetary Fund, and national supreme audit institutions like the Cour des comptes and the Bundesrechnungshof.

Category:European Parliament committees