Annual management and performance report for the EU budget : financial year 2022. Volume 2, Annexes.
Date: 2023-06-22
Institutions: Directorate-General for Budget
Subjects: EU budget, EU expenditure, EU financing, EU investment, EU policy, activity report, financial planning, revenue

Annual  
Management  
and Performance  
Report for  
the EU Budget
Volume II
Annexes

FINANCIAL YEAR

2022

#EUBUDGET

INTEGRATED FINANCIAL AND  
ACCOUNTABILITY REPORTING 2022

Budget

The European Commission is not liable for any consequence stemming from the reuse of this publication.

Luxembourg: Publications Office of the European Union, 2023

© European Union, 2023

The reuse policy of European Commission documents is implemented based on Commission Decision 2011/833/EU of  
12 December 2011 on the reuse of Commission documents (OJ L 330, 14.12.2011, p. 39). Except otherwise noted, the  
reuse of this document is authorised under a Creative Commons Attribution 4.0 International (CC-BY 4.0) licence 
(https://creativecommons.org/licenses/by/4.0/). This means that reuse is allowed provided appropriate credit is given and any 
changes are indicated.

For any use or reproduction of elements that are not owned by the European Union, permission may need to be sought directly 
from the respective rightholders.

All photos © European Union, unless otherwise stated.

Annual Management and Performance Report for the EU Budget – Volume II – Annexes – Financial year 2022

ISBN 978-92-68-02053-1

ISSN 2599-7084

doi:10.2761/638785

KV-AQ-23-002-EN-C

ISBN 978-92-68-02054-8

ISSN 2599-7092

doi:10.2761/903188

KV-AQ-23-002-EN-N

Print

PDF

Also available:

Annual Management and Performance Report for the EU Budget – Volume I – Financial year 2022

Print

PDF

ISBN 978-92-68-01596-4

ISSN 2599-7084

doi:10.2761/137553

KV-AQ-23-001-EN-C

ISBN 978-92-68-01579-7

ISSN 2599-7092

doi:10.2761/195493

KV-AQ-23-001-EN-N

Annual Management and Performance Report for the EU Budget – Volume III – Technical annexes – Financial year 2022

Print

PDF

ISBN 978-92-68-02119-4

ISSN 2599-7084

doi:10.2761/25896

KV-AQ-23-003-EN-C

ISBN 978-92-68-02120-0

ISSN 2599-7092

doi:10.2761/184845

KV-AQ-23-003-EN-N

EUROPEAN 
COMMISSION 

Brussels, 20.6.2023  
COM(2023) 401 final 

ANNEXES 1 to 3 

ANNEXES 

to the 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 

COUNCIL AND THE COURT OF AUDITORS        

Annual Management and Performance Report for the EU Budget - Financial Year 2022 

EN 

  EN 

 
 
 
 
 
 
       
       
 
 
 
 
Content 

ANNEX

1

 PERFORMANCE ACHIEVEMENTS IN 2022 ............................................................................................ 5 

1.  A European Green Deal ......................................................................................................................................................................... 9 

2.  A Europe fit for the digital age .......................................................................................................................................................13 

3.  An economy that works for people ...............................................................................................................................................20 

4.  A stronger Europe in the world .......................................................................................................................................................28 

5.  Promoting our European way of life ............................................................................................................................................34 

6.  A new push for European democracy .........................................................................................................................................37 

ANNEX

2

 INTERNAL CONTROL AND FINANCIAL MANAGEMENT .................................................................... 41 

1.  Strong tools to manage the EU budget in a complex environment ...........................................................................43 

2.  Cost-effective controls protecting the EU budget ................................................................................................................58 

3.  Management assurance .....................................................................................................................................................................74 

ANNEX

3

 THE RECOVERY AND RESILIENCE FACILITY ...................................................................................... 79 

1.  The Recovery and Resilience Facility

 an innovative and successful crisis-response tool ..........................81 

2.  A dedicated control environment to ensure the protection of EU funds .................................................................84 

3.  Control results confirm the satisfactory fulfilment of all milestones and targets for the payments 

made in 2022 ...........................................................................................................................................................................................89 

3 

 
 
 
 
 
 
 
 
 
 
 
1

Annex
 Performance 
achievements in 2022  

 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

. Through its programmes, the 

added value by delivering results that 

would not be achievable through uncoordinated national spending. EU programmes are tailored to unlock 
synergies, catalyse private and public funding and provide a coordinated boost to the political priorities of the 
von der Leyen Commission

1
). 
(

2022 saw an acceleration of the roll-out of the budget, with an allocation of EUR
commitment appropriations, l
by investing in a green and digital recovery. This will allow the EU social economy to become more resilient 
and strengthen job creation.  

billion in 

178

Multiannual financial framework: 2022 EU budget commitment appropriations by budget heading (in million EUR). 

Source: European Commission. 

The 2022 budget was also at the heart of the EU support for Ukraine, in the face of 

nt needs. 

1
)  https://commission.europa.eu/system/files/2020-04/political-guidelines-next-commission_en_0.pdf 
(

7 

 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

The EU budget is boosted by NextGenerationEU to address the economic and social impact of the 
COVID-19 pandemic. NextGenerationEU is a temporary recovery instrument, with a focus on the crucial first 
years of recovery. From 2021 to 2026, NextGenerationEU will provide EUR
several programmes and priorities, which are described in this annex. 

2
) of funding across 
(

billion

807

NextGenerationEU total budget by heading (in million EUR) in 2022. 

Source: European Commission. 

The performance analysis in this annex describes how EU programmes have contributed to the political 
priorities of President von der Leyen. This summary complements the programme-by-programme reporting in 
annex

4, which is presented as a website to enhance reader friendliness. 

807

billion in current prices, EUR

750

billion in 2018 prices. 

2
)  EUR
(

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
1.  A European Green Deal 

Annex

1

 Performance achievements in 2022 

We want to leave the next generation a healthy planet as well as good jobs and 
growth that do not hurt our nature. 

Ursula von der Leyen 
President of the European Commission 

The green transition is at the core of EU policy and its recovery strategy. Ensuring the protection of 
the climate and biodiversity is essential to guarantee our future. In order to achieve the 2050 climate 
neutrality and the 55% reduction in greenhouse gas emissions by 2030, there is a need to unleash innovative 
and low-carbon technologies, while deploying adaptation measures. Protecting and restoring our ecosystem 
with nature-based solutions will not only support the environment but also reinforce the fight against climate 
change. The EU budget plays a vital role in these areas. 

119

billion (36% of the EU budget) contributed to 

In 2022, EUR
climate mainstreaming objectives, and this is expected to reach 33% 
of the EU budget for the 2021-2027 period. 

Contribution to climate mainstreaming objectives for the EU budget (including NextGenerationEU) and the Recovery and Resilience Facility.  

Source: European Commission. 

The EU is committed to devoting a significant share of its budget to finance climate-relevant 
interventions. For the 2021-2027 period, the Commission has committed to contributing 30% of its budget 
(including NextGenerationEU) to climate mainstreaming. This target is supported by most of the EU 
programmes, with important contributions from the cohesion policy, the common agricultural policy, and the 
Recovery and Resilience Facility. Research and innovation also play a pivotal role in developing the 
technologies needed to reach our objectives. For instance, Horizon Europe will support 100 European cities in 
their path towards climate neutrality through the EU new mission instrument. A methodology is in place to 
calculate the budgetary contribution of these efforts and monitor the achievement of this target.  

9 

 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

programmes

3
). 
(

ous spending 

Climate contribution in 2022 (in million EUR). 

Note: Cohesion policy funds include the European Regional Development Fund, the Cohesion Fund, and the European Social Fund Plus. 
Source: European Commission. 

The green transition is one of the six main pillars of the Recovery and Resilience Facility. The 
facility contributes to climate action and environmental sustainability. Member States have put forward 
reforms and investments in green technologies and capacities, including in sustainable mobility, energy 
efficiency, renewable energy, climate change adaptation, the circular economy and biodiversity. Each Member 
State must dedicate at least 37% 

allocation to measures 

With all 27 national resilience and recovery plans now adopted, Member States are exceeding 
the planned climate expenditure ambition. Approximately 40% (EUR
allocation finance measures are supporting climate objectives. Progress under the green transition pillar of 
the facility is measured by four common indicators set out in the legal basis

billion)

5
): 
(

4
) 
(

203

• 

• 

• 

• 

savings in annual primary energy consumption; 

additional operational capacity installed for renewable energy; 

alternative fuels infrastructure (refuelling/charging points); 

population benefiting from protection measures against floods, wildfires and other climate-related 
natural disasters. 

Member States first reported on the common indicators in February 2022 and will continue to do so twice per 
year. The latest information on the national plans, including their contribution to the six pillars and the 
achievement of climate targets (as well as digital and social expenditure), is available in the recovery and 
resilience scoreboard. 

3
)  
(
4
) 
(
5
)  Delegated Regulation (EU) 2021/2106. 
(

'Figures are based using the methodology set out in Annex

-

VI of the RRF Regulation.' 

. 

10 

 
 
  
 
 
 
 
 
 
 
19
In 2022, EUR
preservation of biodiversity 

billion (6% of the EU budget) contributed to the 

Annex

1

 Performance achievements in 2022 

The preservation of biodiversity ensures the long-term stability of ecosystems. It also enables 
the sustainable preservation of natural resources for future generations. Tackling biodiversity loss 
and restoring ecosystems is key to ensuring a more resilient society and to combatting the emergence of 
diseases linked to ecosystem degradation and wildlife trade. They also require significant investments. In 
2020, the Commission adopted the EU biodiversity strategy for 2030, with the target of unlocking 
EUR
6
the Commission adopted the Nature Restoration Law
(
for the international biodiversity framework negotiations at the United Nations Biodiversity Conference of the 
Parties to the UN Convention on Biological Diversity. These negotiations resulted in the Kunming Montreal 
framework, where all parties committed to increased financing for biodiversity.  

billion per year towards biodiversity financing by the public and private sectors. Furthermore, in 2022 

20

Biodiversity contribution in 2022 (in million EUR).Source: European Commission. 

• 

• 

The EU Copernicus programme, including the Sentinel earth observation satellites, is a 
clear  example of synergies between climate, biodiversity and digital  objectives.  Through its land 
monitoring  services,  Copernicus  follows  land  degradation  and  monitors  ecosystems  or  forest 
change. Copernicus helps to monitor biodiversity and pollination, improve air, soil or water quality, 
reduce greenhouse gas emissions and support climate change adaptation. 

The European Maritime and Fisheries Fund supports actions for the protection and restoration 
of marine and coastal biodiversity and ecosystems, including in inland waters. This includes spatial 
protection measures under the EU marine strategy framework directive, as well as the management, 
restoration and monitoring of Natura 2000 areas and the protection of species under habitats and 
birds directives. With the help of the programme, a stakeholder platform was established in Sweden, 
fostering dialogue to achieve sustainable fishing in biologically important areas.  

6
)   COM(2022) 304 Proposal for a Regulation on Nature Restoration. 
(

11 

 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Towards a more resilient energy system 

aggression against Ukraine pu

economy. REPowerEU puts forward actions to save energy, produce clean energy and diversify our 
energy supplies, aiming at achieving a more resilient energy system and a true energy union. 
REPowerEU allows Member States to add a REPowerEU chapter to their national recovery and resilience plans, 
in order to finance investments and reforms to diversify energy supplies and reduce dependence on Russian 
fossil fuels. In addition to tackling climate change, it will help reduce energy bills and dependence on fossil 

months of the 
The EU managed to replace over 80% of Russian pipeline gas in the first 8
war. It filled its gas storage facilities to record levels (over 95% in November). The EU cut 
gas consumption by 18% between August 2022 and Mars 2023 (compared to the 
previous 5
years) and increased the deployment of renewables by over 40%. This allowed 
the EU to impose stronger sanctions in response to the Russian war of aggression. The sanctions aim 

. 

A fair transition towards a climate-neutral economy 

The EU budget also addresses the societal and economic effects of the transition towards a 
climate-neutral economy need, in line with the European Green Deal and the European Pillar of 
Social Rights action plan. The Just Transition Mechanism helps ensure that the transition towards a 
climate-neutral economy happens in a fair way, leaving no one behind. It progressed towards its objective to 
mobilise up to EUR
alleviate the socioeconomic impact of the transition. These regions were defined by the Member States in the 
Territorial Just Transition Plans that set out the transition challenges in each territory, as well as the 
development needs, governance mechanisms and climate objectives to be met by 2030. Approval of these 
plans opens the doors to the dedicated financing under the Just Transition Mechanism. 

billion in investment over the 2021-2027 period in the most affected regions, to 

55

A new rare-earth magnet factory in Ida-Virumaa (Estonia) was the first project to secure financing from 
the Just Transition Fund. Other coal- and carbon-fuel-intensive regions are also implementing their first 
investments under the fund. 

12 

 
 
 
 
 
 
2.  A Europe fit for the digital age 

Annex

1

 Performance achievements in 2022 

We should harness this transformative power of the twin digital and climate transition 
to strengthen our own industrial base and innovation potential. 

Ursula von der Leyen 
President of the European Commission 

The roll-out of digital technologies offers significant growth opportunities for the EU. The 
Commission wants to equip citizens, businesses and administrations with a new generation of digital 
technologies, empowering them via appropriate upskilling and reskilling. A fair digital transformation has the 
potential to increase the innovation and productivity of the EU economy, offering new opportunities for people 
and businesses. The digital transition will also contribute to the Green Deal objectives, with synergies for 
instance in the circular economy.  

 To 
The Digital Compas
achieve these ambitions, the EU will step up investments in key digital technologies, including cybersecurity, 
artificial intelligence, data spaces and semiconductors, and in the relevant skills. 

Over 2021 and 2022, EUR
two

years) contributed to the digital transition 

132

billion (17% of the EU budget for the 

This year, the Commission conducted a first stock-taking
the digital transition, encompassing both 2021 and 2022. Although the individual contributions were 
calculated based on programme-specific methodologies, which may not always be fully comparable, the 
preliminary findings indicate that the EU budget, including NextGenerationEU, channels significant 
contributions to all the key dimensions of the digital transition. 

7
) exercise of the contribution of EU programmes to 
(

This stock-taking exercise is a stepping stone towards a dedicated, uniform tracking methodology for digital 
expenditure, to be applied across all programmes. The aim of such a methodology will be to provide a solid 
measure of the aggregate
multiannual financial framework.  

8
) budgetary contribution, including a projection for the full 2021-2027 
(

7
)  Almost all programmes that are part of the EU budget contribute to the digital transition. However, constraints on 
(
data availability only allowed digital-relevant expenditure for the 2021-2022 period to be tracked for 27 spending 
4 to this report explains in more detail the approach followed for this stock-taking 
programmes (out of 48). Annex
and explains that currently the methodology is not yet harmonised across all programmes. 

8
)  For methodological reasons, the contribution of the external action programmes and the common agricultural policy 
(

could not be measured with the required accuracy in this first stock-taking exercise. They are therefore excluded from 
subsequent numbers. 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

The  Digital  Europe  programme  was  launched  in  2021.  It  focuses  on  bringing  digital  technology  to 
businesses,  citizens  and  public  administrations.  It  supports  projects  in  five  key  capacity  areas: 
supercomputing, artificial intelligence, cybersecurity, advanced digital skills and the wide use of digital 
technologies across the economy and society, including through digital innovation hubs.  

800  digital  solutions  were  already  made  available  to  governments  on  the  Join

In  2021-2022,  2
platform,  which  receives  500
announcements were detected with the help of eLab, also funded by the digital Europe programme. 

000  visits  per  year.  In  addition,  in  2022  over  2

000  misleading  price 

Digital contribution in 2021 and 2022 (in million EUR). 
1
(
) European Regional Development Fund and Cohesion Fund, and European Social Fund Plus (including the Fund for the Most Deprived 
and Employment and Social innovation). 
2
(
) Neighbourhood, Development and International Cooperation Instrument
Overseas Countries and Territories (including Greenland). 
Note: For shared management programmes and the Recovery and Resilience Facility, the digital contribution can be calculated for the 
entire implementation period of the programme, i.e. not at the level of individual year. The amount presented for each year is obtained by 
comparing the total digital contribution over the entire implementation period to the share of the programme envelope committed for 
that year. 
Source: European Commission. 

 Global Europe, Instrument for Pre-accession Assistance and 

Digital transformation is one of the six main pillars of the Recovery and Resilience Facility. It 
supports reforms and investments in digital technologies, infrastructures and processes, which are essential 

the total allocation of its plan to measures contributing to the digital transition or to addressing the 
challenges resulting from it. In practice, with all 27 national resilience and recovery plans now adopted, the 
9
) of 
billion)  (
Member States are exceeding the planned digital expenditure ambition. Almost 26% (EUR

130

set to finance measures supporting digital objectives.

9
)  Figures are based using the methodology set out in Annex
(

VII of the recovery and resilience facility regulation. 

14 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

the recovery and resilience facility regulation. 

Source: European Commission. 

digital transition. Calculations are based on the methodologies set out in Annexes VI and VII of 

The contribution by the Recovery and Resilience Facility to digital transition supports various 
dimensions such as: 

• 

• 

• 

• 

• 

connectivity, with support for the roll-out of very high-capacity networks (13% of the digital 
support);  

the digitalisation of public services and government processes, including health and justice systems 
(37%);  

the digitalisation of businesses, in particular small and medium-sized enterprises (19%);  

the development of basic and advanced digital skills (18%);  

digital-related research (3%) and the development and deployment of advanced technologies 
(11%). 

10

Under  the  Recovery  and  Resilience  Facility
),  payments  disbursed  in  2022  contributed  to  the 
implementation of 93 milestones and targets in the field of the digital transition were reached in 2022. 
Prominent  examples  include  the  adoption  of  a  new  2021-2025  plan  on  digitalisation  of  small  and 
medium-sized  enterprises  and  a  digital  competences  plan  by  Spain,  the  development  of  broadband 
infrastructure in Latvia and the purchase of 600

000 laptops for teachers and pupils in Portugal.  

(

Some important reforms already progressed during the first 2
such as reforms to digitalise public administration (Slovakia) and ensure cybersecurity (Romania). 

years of implementation of the facility, 

million households gained access to very high-
  networks  and  gigabit  speed.  Overall, 
million users were using improved public digital services by the end of 2022, thanks to the Recovery 

Thanks to the Recovery and Resilience Facility, over 9.2
capacity  internet  networks  by  the  end  of  2022,  including 
123
and Resilience Facility  (

). 

11

The stock-taking exercise allowed us to produce the first estimated contributions of the EU budget, including 
NextGenerationEU, to the digital transition by key digital dimensions, as summarised in the graph below: 

10
(

11
(

)  The latest information on the national plans and their contribution to the six pillars, achievement of digital targets (as 
well as climate and social expenditure) is available in https://ec.europa.eu/economy_finance/recovery-and-resilience-
scoreboard/. 

)  The same person can use the service multiple times, in which case they would be counted multiple times.  

15 

 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Estimated digital contribution in 2021 and 2022 (in billion EUR) by key digital dimensions, excluding external action programmes and the common 
agricultural policy.  

Source: European Commission, based on the first stock-taking exercise in 2023. 

Supporting the development and deployment of digital technologies 
and investing in digital skills 

In 2022, the Digital Europe programme supported the development and deployment of key digital 
technologies such as artificial intelligence, blockchain and cybersecurity in order to accelerate the digital 
transformation of businesses and industries. In particular, the programme supported the deployment of 
common data spaces built on innovative, secure and energy efficient cloud-to-edge capabilities. It promoted 
the testing and adoption of trustworthy artificial intelligence technologies with world-class testing and 
experimentation facilities. Additionally, the programme invested in the area of cybersecurity, including in the 
deployment of a secure quantum communication infrastructure. 

The  Digital  Europe  programme  is  also  contributing  to  the 
,  aimed  at 
developing a highly accurate digital model of our planet. This model will monitor, simulate and predict 
the interaction between natural phenomena and human activities. 2022 saw the deployment of the open 
core  platform  (giving  access  to  decision-making  tools)  and  the  first  digital  replicas  of  the 
systems. 

In 2021 and 2022, first estimates indicate that the EU contributed EUR
digital capacities and the deployment of advanced technologies, and EUR
including EUR
Resilience Facility, Horizon Europe, the Space programme, the European Regional Development Fund and 
Cohesion Fund and the Just Transition Mechanism. 

billion from Horizon Europe. The main contributing programmes are the Recovery and 

billion to investment in 

13.3

12.8

billion in research, 

9

Throughout 2022, Erasmus+ 

-reflection on effective learning by fostering 
a free tool designed to help schools 
embed digital technologies into teaching, learning and assessment. The tool has by now been used by 
4.6
829 schools in 84 countries. The European digital education hub was launched 
on 23

million users in 33
June 2022. 

16 

 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

The contribution from the EU budget to space policy in 2022 demonstrates the EU s commitment to 
maintaining its position as a global leader in space technology and exploration. The EU Space programme 
developed technological applications benefiting our daily lives. Galileo
system, and Copernicus
high-quality performance of the services provided.  

s global satellite navigation 
, have been consistently delivering reliable and 

In 2022, thanks to the EU Space programme: 

• 

• 

• 

• 

• 

billion Galileo-enabled devices (such as smartphones) were in use, with this number 

3.8
continuing to grow; 

the positioning accuracy performance of Galileo was three times better than other global 
navigation satellite systems, with excellent availability; 

28 Galileo and 7 Copernicus satellites were in orbit; 

7.9 petabytes of Copernicus satellite observation data were published; 

000 registered users of the Copernicus Climate Change Service had access to about 76 

160
terabytes of quality-controlled climate data per day. The Sentinel Data Access System 
supported over 490

000 registered users. 

The European Union Agency for the Space Programme launched a platform to put space 
at the service of the Ukrainian people. This platform aims to match innovators, start-
ups and companies with non-profit organisations and other helpers on the ground. It 
gathers applications that leverage freely accessible data from Galileo and Copernicus, in 
order to enhance humanitarian support for the Ukrainian people. Galileo provides positioning and 
navigation services and Copernicus supplies Earth observation data and information. The applications 
published on this platform cover a wide range of uses, from helping non-profit organisations deliver 
medical goods via drones, to supporting the integration in the EU of people fleeing the war.  

Making a significant contribution to the digitalisation of businesses 
and public services 

The result of the 2023 first stock-taking exercise shows that the EU budget (including NextGenerationEU) is 
making a significant contribution to the digitalisation of the private and public sectors. Our first estimates 
for 2021 and 2022 set at EUR
billion the support of the EU budget for e-government 
(including the digitalisation of health and justice systems, or of the transport and energy 
network) and at EUR
Resilience Facility as well as the European Regional Development Fund and Cohesion Fund are important 

billion the support for the digitalisation of businesses. The Recovery and 

42.3

22.8

amounts from the European Regional Development Fund and Cohesion Fund will be used to finance 
interventions that advance the digital transition, particularly supporting small and medium-sized enterprises. 

17 

 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Support of the EU budget including NextGenerationEU to the digitalisation of public services, in billion EUR. These amounts are the result of the first 
stock-taking exercise conduced for the years 2021 and 2022, and exclude the external action programmes and the common agricultural policy due to 
methodological limitations. 

Source: European Commission. 

The EU budget is also contributing significantly to the digitalisation of transport systems, with an estimated 
EUR
Resilience Facility and EUR

billion dedicated to this in 2021 and 2022, of which almost EUR

billion from the Connecting Europe Facility. 

billion comes from the Recovery and 

0.7

6

7

The Connecting Europe Facility
systems. 

12
(

) contributed to the digitalisation of transport and energy 

334 electric charging supply 

1
points for road were completed 
along the trans-European 
transport network by the end of 
2022 and supported through the 
2014-2020 programme budget, 
contributing to the greening of 
road transport, in line with the 

tive. 

326 kilometres of European 
Rail Traffic Management System 
track-side infrastructure were 
deployed by the end of 2022 
thanks to the Connecting Europe 
Facility 2014-2020, and more 
000 kilometres will be 
than 6
deployed in the coming years 
(based on signed projects). 

15
000 megawatts of 
electricity transmission capacity 
were added to interconnect 
electricity networks and to 
facilitate the integration of 
renewable energy. 

12
(

)  The digitalisation of transport systems is part of the digitalisation of public services (based on the digital strategy for 

the Digital Decade and the Digital Compass, as well as the Recovery and Resilience Facility). 

18 

 
 
 
 
 
 
 
 
 
 
 
 
 
Connecting Europeans: enhancing digital connectivity 

Annex

1

 Performance achievements in 2022 

The EU budget, including NextGenerationEU, is enhancing digital connectivity, which will give all citizens 
and businesses new opportunities to benefit fully from the digital single market and accelerate economic 
growth. The amounts dedicated to connectivity, including investments in very high-capacity broadband 
13
(
network and 5G network coverage, are estimated to have reached EUR

billion for 2021-2022

13.8

). 

The main contributing programmes are the Recovery and Resilience Facility (with EUR
European Regional Development Fund and Cohesion Fund (EUR
Europe Facility. The common agricultural policy is also playing a key role in improving broadband access 
in rural areas, by supporting broadband infrastructure and improved access to e-government. Based on the 
latest rural development programmes, over the course of the current programming period, the common 
agricultural policy will have helped nearly 13
million people living in rural areas to benefit from 
improved access to information, communication and technological services and infrastructure. 

billion) and the Connecting 

billion), the 

2.3

13

Thanks to the European Regional Development Fund and Cohesion Fund, 6.3
given broadband access of at least 30 megabits per second between 2014 and 2021. During the 
same period, 550

000 additional energy users were connected to smart electricity grids. 

million households were 

13
(

)  This amount does not include any contributions from the common agricultural policy, due to methodological 

limitations. 

19 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

3.  An economy that works for 

people 

We choose to not only repair and recover for the here and now, but to shape a better 
way of living for the world of tomorrow. 

Ursula von der Leyen 
President of the European Commission 

The 2022 EU budget supports sustainable growth by investing in research and innovation, education and 
infrastructure. The EU budget is also used to foster equality for all, in every sense of the term. Many 
programmes are contributing to this priority. Among the biggest are the Recovery and Resilience Facility 
(EUR
74.4
Fund (EUR
Social Fund Plus (EUR
made in 2022), and Erasmus+ (EUR

billion of payments made in 2022), the European Regional Development Fund and the Cohesion 
billion for the 2014-2020 period, European 
38.7
4.1
billion of payments 
7.9

billion of payments made in 2022), Horizon Europe (EUR

billion for the 2021-2027 period plus EUR

billion of payments made in 2022)

14
(

3.0

1.5

). 

97% of the 2021-2027 cohesion policy programmes were adopted before the end of 2022, paving 
the way for countries and communities to benefit from the 
more digital and sustainable economy, and to leave no one behind. The adoption process of these 
programmes has been slower than expected, due to the COVID-19 crisis and the implementation of the 
respective crisis and recovery measures requiring priority, the war in Ukraine and the late adoption of the 
multiannual financial framework and programme legislations. 

Towards a stronger and fairer economy 

The programmes with a European Social Fund Plus contribution that were adopted,  represent a 
). The fund promotes social inclusion and 
total amount of EUR
improving employment opportunities by supporting projects focused, among others, on job-search assistance, 
training, education, social inclusion, reduction of youth employment, better work life balance for women and 
reintegration into the labour market for those who are disadvantaged or excluded from the labour market.  

billion for the 2021-2027 period

91.5

15
(

Despite the slow start in implementation of the 2021-2027 European Social Fund Plus 
programmes in 2022, as a result of the late adoption of the European Social Fund Plus 
regulation, a smooth transition between the 2014-2020 programmes and the new programmes 
was ensured. At the same time, maximum use was made of flexibilities to adjust to national specificities. 

14
(

)  Committed appropriations stemming from the annual voted budget by the budget authorities. For the Recovery and 

Resilience Facility and Horizon Europe, NextGenerationEU appropriations are also taken into account. External 
contributions, notably from non-EU countries or recoveries, are not taken into account.  

)  Total financial programming of the European Social Fund Plus managed in shared management, excluding EUR 3.5 

15
(

billion Technical Assistance at Member State initiative and external contributions. 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

This included budget transfers from the European Social Fund Plus, for instance to other cohesion policy 
funds

), to the Border Management and Visa Instrument

) and to the Just Transition Fund

18
(

16
(

17
(

). 

55.2

million 

6.4

million 

8.8

million 

3.7

million 

people had been 
supported by the 
European Social Fund 
and by Youth 
Employment Initiative 
actions by the end of 
2021. 

people had found a job 
(including being self-
employed) thanks to the 
European Social Fund 
and Youth Employment 
Initiative actions by the 
end of 2021. 

people had gained a 
qualification thanks to 
the European Social Fund 
and Youth Employment 
Initiative actions by the 
end of 2021. 

participants were in 
education or training 
thanks to the European 
Social Fund and Youth 
Employment Initiative 
support by the end of 
2021. 

15

million 

2.1

million 

people benefited from 
food assistance in 2021 
under the Fund for 
European Aid to the 
Most Deprived. 

people received material 
assistance under the 
Fund for European Aid to 
the Most Deprived in 
2021. 

14
559 job 
placements 

‘

had been obtained since 
the start of the targeted 
mobility schemes in 
2015 (including 
Your 
first EURES job ) by the 
end of the first semester 
of 2022 under the 
employment and social 
innovation programme. 

EUR

3.1

billion 

worth of loans were 
awarded to 182
425 
microenterprises 
between their launch and 
30
September 2022, 
thanks to 
EUR
guarantees for 114 
microfinance 
intermediaries under the 
employment and social 
innovation programme. 

million in 

417

 On 4
full-scale invasion of Ukraine, the EU 
activated the temporary protection directive to support Member States in providing 
people fleeing Ukraine access to education and training, the labour market, healthcare, 
housing and social welfare. So far, almost 4
temporary protection. 

million Ukrainians have registered for 

In 2022, the European Globalisation Adjustment Fund for Displaced Workers received three 
applications by three Member States requesting a total of EUR
made redundant, helping them to find new jobs, retrain or start their own businesses
supports workers in all sectors who have been affected by the transition to a greener economy, but also 
workers affected by the latest crises, such as the COVID-19 pandemic coupled with the energy crisis. In 2022, 
the European Globalisation Adjustment Fund supported 559 Belgian workers from the logistics sector, 

million to support workers 

). The fund 

19
(

21

16
(

)  Nine countries transferred EUR

3.9

billion

from the European Social Fund Plus budget to the European Regional 

Development Fund and the Cohesion Fund: Czechia, Greece, Croatia, Lithuania, Hungary, Poland, Romania, Slovenia 
and Slovakia. 
175
109

million. 
million. 

)  EUR
)  EUR
)  Only one case was mobilised in 2022 (EUR

17.7

million), while the remaining two, received in the second half of 

17
(
18
(
19
(

2022, will benefit from support from the European Globalisation Adjustment Fund in the first half of 2023 
(EUR

million). 

3.2

21 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

580

French workers from an airline and 303 Spanish workers from the manufacturing sector in Spain. The 

1
restructuring of the economy can have even more of an impact on low-skilled workers and workers aged 
above 50 that are already in disadvantage in the labour market. Thanks to this fund, they will be provided 
with additional support such as training, support toward business creation, incentives and allowances or 
outplacement assistance to overcome these issues in their regional labour market.  

Addressing economic and social inequalities while responding to the 
pandemic 

The COVID-19 pandemic has had a significant impact on the EU economy. The cohesion policy funds are 
instrumental in avoiding an asymmetric recovery with widening disparities, where some regions would bounce 
back while others stagnate or decline. The Commission, therefore, launched in April 2020 two packages 
of measures: the Coronavirus Response Investment Initiative and the Coronavirus Response 
Investment Initiative Plus, which were supplemented in May 2020 with the Recovery Assistance for 
Cohesion and the Territories of Europe (REACT-EU) package to support crisis-repair capacities, including 
employment measures, support to healthcare systems and small and medium-sized enterprises and prepare 
the green, digital and resilient recovery of the economy. This swift response contributed to the overall 
economic recovery of Member States and to a more inclusive and resilient European Union. 

25 Member States and the United Kingdom have requested 239 amendments to their existing 
cohesion policy programmes using the flexibilities offered by the Coronavirus Response 
Investment Initiative and the Coronavirus Response Investment Initiative Plus. The Commission has 
modified its internal procedures to allow for swift treatment of all requests under lighter and faster 
procedures. The administrative burden has been alleviated through extension of deadlines, enlargement of 
project scope and other simplifications.  

Following the thematic reprogramming, the main focuses of investments are: the health sector
to secure personal protective equipment, finance testing and support hospitals by purchasing additional 
medical equipment; the business sector
enterprises, facilitating digitalisation and setting up or redesigning financial instruments; and supporting 
people

 by implementing employment retention schemes and supporting vulnerable groups. 

 by providing working capital to small and medium-sized 

 (20)

The headline figures
Response Investment Initiative and the Coronavirus Response Investment Initiative Plus 
are as follows: 

 on the volume of resources mobilised under the Coronavirus 

billion in EU reallocations for health actions, resulting in a net increase of 

billion in EU reallocations in business support, resulting in a net increase of 

EUR
EUR

EUR
EUR

8.3
8

12.5
4.2

billion at the EU level; 

billion at the EU level; 

EUR

5.1

billion of direct support for people, including workers and vulnerable groups (the 

European Social Fund 

health and enterprise reprogramming). 

September 2022 (https://cohesiondata.ec.europa.eu/stories/s/4e2z-pw8r). 

• 

• 

• 

20
(

)  As of 15

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

At the end of December 2022, an estimated total of EUR
planned total of EUR
2020, was incurred on the ground as investment spending
investment spending by the end of 2021. The national and regional programmes have until the end of 2023 
to deliver the remaining planned investment.  

billion, accounting for 76% of the 
billion of EU and national expenditure under cohesion policy for 2014-
21
(

), compared to EUR

billion 

405

532

331

million 

6.3
households had broadband 
access of at least 30 
megabits per second between 
22
(
2014 and 2021

). 

000 

310
jobs were directly created in 
supported enterprises 
between 2014 and 2021. 

million 

60
people benefited from new or 
modernised health services 
between 2014 and 2021. 

000 

550
additional energy users 
connected to smart electricity 
grids between 2014 and 
2021. 

million 

22
citizens benefited from flood 
protection between 2014 and 
2021. 

million people  
30
lived in areas with integrated 
urban development strategies 
between 2014 and 2021. 

The Cohesion s Action for Refugees in Europe and the Flexible Assistance to Territories 
initiatives, adopted by the Commission in March and June 2022 respectively, helped Member 
States and regions to provide emergency support to people fleeing Russia s war of aggression 
against Ukraine. The 
rules of the 2014-2020 cohesion policy to allow the swift reallocation of available funding for those 
welcoming and integrating displaced people. In particular, they provided the possibility of a 100% co-
financing option for priorities promoting the socioeconomic integration of non-EU nationals and introduced 
EUR

billion of additional pre-financing available to Member States in 2022 and 2023. 

 initiative introduced further flexibility to the 

3.5

21
(
22
(

)  Cohesion policy 2014-2020: estimating investment progress. 
)  The reporting mechanism allows achievements up to 2021 to be reported on. The most recent information on 
cohesion achievements is available through the cohesion open data portal (https://cohesiondata.ec.europa.eu/). 

23 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

The cohesion programmes were among the first to provide flexibility for responding to 
the different crises. The Cohesion s Action for Refugees in Europe and Flexible 
Assistance to Territories initiatives make it possible for funding from the 
Recovery Assistance for Cohesion and the Territories of Europe package to 
provide vital aid for people from Ukraine. Their aim is to allow Member States and regions to 
mobilise cohesion policy funds to help people fleeing the war. Emergency support covering the basic 
needs of people fleeing the Russian invasion of Ukraine includes, for instance, access to services such 
as temporary accommodation, food and water supplies or medical care. Some funds were used to 
enhance the administrative capacity of Member States to cater for the needs of refugees by 
supporting, for instance, additional infrastructure equipment or staff necessary to cater for the needs 
of refugees or develop tailor-made solutions for the long-term integration of people with a migrant 
background, through investments in housing, education, employment, health, social inclusion and care 
or other social services. 

Thanks to the 
Assistance for Cohesion and the Territories of Europe package was 

 initiative, EUR

4

million from the Recovery 

-Palatinate to help 

23
(

). The pilot is part of a programme launched on 1

Ukrainians integrate into German society
2022, with six projects operating across the state. The primary goal of the pilot is to create regional 
structures to support training and labour-market integration. The employment pilots provide tailored 
support and advice on how to best navigate social services. Displaced people from Ukraine also receive 
support on how to file direct applications to municipal services across the country, and receive 
 such as creating a curriculum vitae or finishing a 
assistance with many administrative issues
residency, medical or housing application. After making sure that families are safe and stable, the 
centres assist adults in finding suitable employment through skills mapping and liaising with the local 
job centre or employment agency to further assist with help in applying for a job. 

July 

This cohesion policy assistance complements support from the Asylum, Migration and Integration 
Fund and other funding sources. The Commission also adapted its European Neighbourhood Instrument 
Cross-Border Cooperation programme to better reflect the new realities in the neighbourhood. It proposed 
Supporting Affordable Energy to address the consequences of the high energy prices. All of these were 
adopted without changes and in record time. 

23
(

)  Communication from the Commission to the European Parliament, the Council, the European Economic and Social 

Committee and the Committee of the Regions
(COM/2020/152, 5

March 2020). 

 A Union of Equality: Gender Equality Strategy 2020-2025 

24 

 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

Supporting research and innovation to tackle global challenges  

Through its policies, the EU strengthens the impact of research and innovation and facilitates 
collaboration. The EU actively supports creating and spreading excellent knowledge and 
technologies. 

12 

9 

37 

5 

Nobel Prize winners 
were supported by EU 
funds between 2007 
and 2022. 

Knowledge and 
Innovation 
Communities were 
established between 
2010 and 2022. 

EU Horizon Europe 
Partnerships were 
launched in 2021
2022. 

EU missions have 
been established to 
solve the greatest 
identified challenges 
facing the world. 

By the end of 2022, 24 Horizon Europe mission calls were launched and evaluated. They attracted 8
eligible proposals, out of which 137 were retained for funding for a total EU requested contribution of 
EUR
1.0
of EUR

billion. At the end of 2022, 71 grants involving 1
0.6

525 participants had been signed for a total amount 

billion. 

167 

47.4

billion for the duration of the facility

The Recovery and Resilience Facility will contribute to research, development and innovation with around 
EUR
). By the end of 2022, Member States have implemented key 
reforms and investments to support industrial research, innovation in the medical sector and the development 
of national artificial intelligence strategies. 

24
(

The 
address skills shortages in advanced manufacturing and prevent disruptions like the recent global chip 
shortage, so that the EU remains an attractive pl
Chips Act is mobilising EUR
amount, EUR
from Horizon Europe will be committed to research and innovation, and the funding from the Digital Europe 
programme will finance capacity-building activities. 

billion in public and private investments focusing on three pillars. Of that 
2

billion will be dedicated to the Chips for Europe Initiative (pillar

1), while almost EUR

3.3

43

billion 

363

million of funding for breakthrough innovations. In 2022, 43 new calls for 

In 2021-2022, the European Innovation Council selected 65 innovative start-ups and small and medium-sized 
enterprises to receive EUR
proposals were launched under Horizon 
under 160 calls for proposals and 195 other actions were launched for a total budget of around 
EUR
challenges, namely: (i) adaptation to climate change, (ii) cancer; (iii) 100 climate-neutral and smart cities by 
2030; (iv) restoring our oceans and waters by 2030; and (v) a soil deal for Europe.  

billion. In 2022 Horizon Europe established five EU Missions to address the most urgent societal 

-2022: overall, 855 topics 

16

Another focus in 2022 was to establish European partnerships. These deliver on global challenges and 
modernise industry through concerted research and innovation initiatives, and bring together Member States 
and associated countries, the private sector, foundations and other stakeholders. The Commission released its 
first report on performance, which stated that the pa

 the ability to engage major, 

Photonics partnership, with the help of 3
innovations for a digital, green and healthy future in Europe, as it contributes to six sustainable development 
goals of the United Nations. 

349 partners from the EU and beyond, aims to speed up photonic 

24
(

)  This estimate is calculated by the Commission and corresponds to measures attributed either as primary or 
secondary assignment to research, development and innovation, including in the green and digital sectors. 

25 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

-

which supports displaced researchers from Ukraine. In all, 13 doctoral candidates 
and 111 postdoctoral researchers from Ukraine will, as of 2023, be able to continue their 
work in Member States and countries associated with Horizon Europe. The selected 
researchers will be hosted by academic and non-academic organisations in 21 countries. 

The Commission decided that it will open a new Horizon Europe programme office in Kyiv in 
2023. The office will provide support to the National Contact Points across Ukraine and strengthen 
research and innovation networks between Ukrainian and European institutions. Hosted by the 

cipation in Horizon Europe to a new level. 

Supporting education and training 

competitiveness and social cohesion. The EU is committed to ensuring that all citizens have access to 
high-quality education and training. The EU provides funding for education and training programmes through 
several channels. The primary sources of funding include the European Social Fund Plus and the European 
Regional Development Fund. T
citizens, regardless of their background or socioeconomic status. It also helped to improve education and 
training systems and enhance the skills of the workforce. The funded in
to improving the quality of education and training, increasing employability and reducing unemployment rates 
while also promoting cultural exchange and contributing to the development of a more cohesive and 
integrated Europe.  

Within the Erasmus+ 2021-2027 programme, the European universities initiative will provide better and more 
inclusive education and research. Meanwhile, the EU is promoting several initiatives in favour of innovation, 
especially toward the green transition, like the European urban initiative to support urban innovation and 

The Recovery and Resilience Facility is another important source of funding, contributing to education and 
skills with around EUR
implemented a wide range of reforms and investments which cover education
education

billion for the duration of the facility

 along with green and digital skills.  

). By the end of 2022, Member States have 

 from early childhood to adult 

25
(

73

Learning mobility opportunities aim to encourage the mobility of students, staff, trainees, apprentices, 
youth workers and young people. By the end of 2022, the Erasmus+ programme supported 1.5
million 
participants in learning mobility activities.  

25
(

)  This estimate is calculated by the Commission and corresponds to measures attributed either as primary or 

secondary assignment to early childhood education, general, vocational and higher education, adult education, green 
skills and human capital in digitalisation. 

26 

 
 
 
 
 
 
 
 
 
Improving the integration of the gender-equality dimension into the 
EU budget 

Annex

1

 Performance achievements in 2022 

The EU is a global front runner in promoting gender equality. The Commission applies gender 
mainstreaming across all policies and action. The EU gender equality strategy
) delivers 
on the von der Leyen Commission commitment to achieving a Union of Equality. The strategy presents policy 
objectives and actions to make significant progress towards a gender-equal Europe by 2025.  

2020-2025

26
(

In line with the gender equality strategy, in November 2020 the EU adopted its third Gender Action plan for 
2021-

tions, as well as for Member States. The Commission developed a pilot 

multiannual framework and applied it for the first time already in the context of the draft budget 2023. 

-2027 

In line with the methodology, a programme may qualify for one or more scores based on the objectives 
pursued by its respective interventions. The total EU budget, based on the aggregation of the 2022 
interventions qualifying for each score, has been allocated as follows: 

• 

• 

• 

• 

score 2: interventions whose principal objective is to improve gender equality are included in 12 
programmes and correspond to 2% of the total Commission budget; 

score 1: interventions having gender equality as an important and deliberate objective (but not as 
the main reason for the intervention) follow with 9% of the total budget and are included in 15 
programmes; 

score 0*: interventions having the potential to contribute to gender equality correspond to 73% of 
the total budget and are included in 31 programmes; 

score 0: interventions not having a significant bearing on gender equality correspond to 16% of the 
EU budget and are included in 26 programmes.  

Further information on the pilot methodology, which has been implemented since the 2023 draft budget, is 
described in Annex

4 to this report. 

The EU also has a 
empowerment, contributing to advancing this agenda in international forums. At the same time, the 
Commission is promoting awareness and building capacity, both across its services and in the Member States, 
on the integration of the gender-equality dimension in EU spending programmes by means of specialised 
trainings and active participation in relevant forums. 

26
(

)  https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020DC0152 

27 

 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

4.  A stronger Europe in the world  

We can be the shapers of a better global order. 

Ursula von der Leyen 
President of the European Commission 

In a year of increasing uncertainty, the EU led the response to global challenges and remained a 
driving force for multilateralism, pursuing an ambitious neighbourhood policy, showcasing solidarity and 
developing comprehensive partnerships to secure and promote global peace, stability, democracy and 
human

rights. 

ensuing energy and food crises, the EU and its Member States provided humanitarian aid, 
financial assistance and military support. The EU budget is playing a crucial role in this response, in the 
form of payment flexibilities in several programmes, macro-financial assistance and budget support, 
emergency assistance, crisis response and humanitarian aid, not least through reprioritisations under EU 
spending programmes. In 2022, overall assistance to Ukraine and its people from the EU budget amounted to 
EUR 11.6 billion
aggression, by launching the Team Europe Response to Global Food Insecurity and by increasing funding. EUR 
2.6 billion were disbursed for global food security in 2022. 

27
(

). 

million people in the country had received humanitarian assistance. 

levels. By the end of 2022, 14
The Commission has also deployed an emergency package to provide humanitarian and emergency 
assistance to secure access to education, healthcare and food. Out of the total amount of financial assistance 
provided to Ukraine, humanitarian support included EUR
programmes supporting civilians affected by the war in Ukraine and EUR
also hit hard by the war. This vital support includes access to basic goods and services, such as education, 
healthcare and food.  

million allocated for humanitarian aid 

million for Moldova, which was 

485

38

cedented 

Working with Ukrainian civil protection authorities, the Commission began the biggest and most 
complex operation under the EU Civil Protection Mechanism in its history to ensure the delivery of the 
most urgent non-monetary assistance, such as medical supplies and equipment, to Ukraine and neighbouring 
countries, and the safe evacuation of those fleeing the armed conflict. By the end of the year, the value of the 
almost 78
000 tonnes of assistance provided by the Member States and non-EU countries contributing to the 
mechanism, combined with assistance coming from rescEU reserves, amounted to around half a billion euro. 

27
(

)  This amount corresponds to the committed appropriations in 2022 stemming from the annual voted budget by the 

budget authorities on Heading
Neighbourhood, Development and International Cooperation Instrument
accession assistance, the common foreign and security policy, macro-financial assistance, the European Instrument 
for Nuclear Safety Cooperation and the overseas countries and territories (including Greenland). 

6 of the 2021-2027 multiannual financial framework, which includes the 

 Global Europe, humanitarian aid, pre-

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

All 27 Member States (plus Iceland, North Macedonia, Norway, Serbia and Türkiye) have 
offered assistance, ranging from medical supplies and shelter items to vehicles and 
energy equipment. The EU has established logistical hubs in Poland, Romania and 
Slovakia to channel the items to Ukraine more efficiently. The EU Civil Protection 
Mechanism provided food, water, shelter, energy and healthcare. The EU has mobilised medical and 
specialised equipment for public health risks such as chemical, biological, radiological and nuclear 
threats via the Health Emergency Preparedness and Response Authority and rescEU emergency 
stockpiles.  

Emergency macro-financial assistance helps Ukraine address its financing needs and strengthen 
economic stability. In addition to the EUR
EUR
concessional loans. This stable and predictable financial assistance will help cover a significant part of 

billion support provided in 2022, the EU will provide up to 
+ Instrument, in the form of highly 

billion to Ukraine in 2023 through the Macro-Financial Assistance

7.2

18

public services, such as hospitals, schools and housing for relocated people. It will also help to ensure 

in order to pay wages and pensions and maintain the operation of essential 

aggression, such as energy infrastructure, water systems, transport networks, roads and bridges. 

In 2022, the Commission mobilised or guaranteed EUR
economic, social and financial resilience. It also committed to provide highly concessional 
loans of up to EUR

billion in 2023. 

11.6

18

The Commission has stood at the forefront of global pledging events to support internally displaced 
people and refugees.  

For example, as part of its pledge to support the future reconstruction of the country, the 
EU already contributed EUR
schools. The Commission also allocated around EUR
and bring Ukrainian children safely to school and launched an EU-wide solidarity 
campaign to donate school buses for Ukraine, channelled through the EU Civil Protection Mechanism. 

for the rehabilitation of damaged Ukrainian 

million to purchase school buses 

million

100

14

energy system. The EU, together with its Member States and private companies, delivered several 
million euro worth of emergency energy equipment to Ukraine.  

The EU also delivered more than EUR
40
countermeasures and equipment from rescEU reserves and allocated EUR
laboratories damaged by Russian occupiers at Chernobyl. 

million of chemical, biological, radiological and nuclear threat 
million for the restoration of 

13

The EU
global trading partners via rail, road and inland waterways. At the time of the decision, it was 
estimated that this would bring back more than EUR
and businesses and help Ukraine export its goods

billion in much-needed income to Ukrainian farmers 
 to ensure food security in developing 

 particularly grain

15

29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

countries. It also allowed Ukraine to import what it needed, from humanitarian aid to animal feed and 
fertilisers. 

Outside of the EU budget, the European Peace Facility facilitates the provision of military 
equipment and security infrastructure to the Ukrainian armed forces and protects the civilian 

This is the first time that the EU 

has supported the delivery by its Member States of this type of equipment to a country to defend itself 
against an aggression.  

Mobilising humanitarian aid for those in need and supporting 
cooperation on civil protection to improve prevention, preparedness 
and response to disasters. 

2.6

billion of humanitarian aid to help address the most pressing needs 

In 2022, the EU mobilised EUR
of affected 
rights, dignity and security around the world. In 2022, the EU budget responded not only to humanitarian 
crises attracting widespread attention, such as Afghanistan or Ukraine, but also forgotten crises where 
affected populations are receiving insufficient international aid. In the context of the Rohingya crisis in 
Myanmar, for example, the Commission has delivered basic life-saving humanitarian aid, addressing the 
needs of the most vulnerable people affected by the violence and conflict. 
provided relief to millions of affected people in some of t

. 

The EU Civil Protection Mechanism responded to many crises 

Heavy  monsoon  rainfall  and  floods  have  been  affecting  Pakistan  since  June  2022.  On  29
August 
2022,  the  EU  Civil  Protection  Mechanism  was  activated  following  a  request  for  assistance  from  the 
Pakistani authorities. By the end of October 2022, French and Belgian water purification modules had 
November, the teams completed 
arrived in the country and produced 729
their mission. All of the equipment was donated and would continue to run for at least 6

000 litres of clean water. By 5

months.  

Europe  faced  a  very  intense  wildfire  season  in  2022.  The  EU  mobilised  assistance  for  Albania, 
Czechia, France, Portugal and Slovenia. The EU and its Member States provided firefighting teams and 
a rescEU fleet including firefighting airplanes, emergency vehicles and helicopters. 

30 

 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

EU humanitarian aid in 2022 

EUR

891

million 

EUR

587

million 

EUR

469

million 

EUR

530

million 

EUR

149

million 

Africa 

Middle East and 
Türkiye 

Asia, Latin 
America, Pacific 
and Caribbean 
regions 

Ukraine, 
western Balkans 
and Caucasus 

Non-geographical 
allocations 

Geographical presentation of the EU s humanitarian aid in 2022 throughout the world 
Source: European Commission. 

The EU budget also continued in 2022 to provide humanitarian funding in support of 4
refugees in Türkiye, mostly fleeing the war in Syria. A further EUR
EUR
programme in Türkiye, bringing the total EU humanitarian funding for Türkiye since 2012 to close to 
EUR

million humanitarian aid already announced at the end of 2021 for the emergency social safety net 

million came in addition to the 

million 

billion. 

325

3.4

50

In Türkiye, the EU funded several initiatives for the benefit of refugee children (e.g. conditional cash 
transfers for education programmes). Funding contributed to almost quadrupling the overall 
enrolment rate of the refugee school-age population over 2014-2022. The project was extended to 
include Afghan and Iraqi refugees and host communities. 

31 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

In 2022 a new tool, the European Humanitarian Response Capacity, was set up to fill gaps, mainly 
in logistics, in the humanitarian response to sudden-onset natural hazards and human-induced disasters. 

In 2022 the Commission deployed 9 European Humanitarian Response Capacity (EHRC) operations in 
Madagascar (twice), Ukraine, Moldova, Somalia, Afghanistan, Mozambique, Uganda and Burkina Faso, 
continued the Humanitarian Air Bridge Flight operations in Kenya, DR Congo and Mali and organised 60 
EU Humanitarian Air Bridge flights, supporting 24 partners in 4 countries (Afghanistan, Somalia, 
Madagascar and Moldova) and transporting 842 tonnes of humanitarian material. Finally, in Ukraine 
and Moldova, common logistics services were offered free of charge to all humanitarian partners: 660 
road transport operations were organised in Ukraine, mainly last mile deliveries close to the frontline; 
3 warehouses with temperature control for medical items and kitting services were opened and 
supported 49 humanitarian partners (both international and local NGOs). 

Cooperating with partner countries overcoming development 
challenges and pursuing EU values and interests 

The Neighbourhood, Development and International Cooperation 
international commitments and the objectives that it has agreed to, in particular the United Nations 2030 
Agenda, its sustainable development goals and the Paris Agreement. 

28
(

), which provides partners with a 

2022 marked the first year of delivery for the Global Gateway strategy
plan for major investment in physical infrastructure development, in alignment with EU values and standards. 
Global Gateway is implemented in a  Team Europe  approach: the EU and Member States work together to 
boost investments in physical infrastructure, human development and the enabling environment to ensure 
that projects deliver socioeconomic impacts to local communities across Africa, Asia, Latin America and the 
Caribbean and Pacific regions. In 2022, more than EUR
billion (in grants) from the EU budget supported the 
implementation of the five key areas under the Global Gateway strategy: digital, climate change and energy, 
transport, education and research. Key events for the delivery of the Global Gateway strategy included the 
AU-EU Summit in February 2022, launching the Africa   Europe Investment Package, as well as the EU-ASEAN 
Summit in December 2022 and the EU   Central Asia Connectivity Conference in November 2022. 

9

As part of the Global Gateway strategy and through the Neighbourhood, Development and International 

-

, the rollout of the European Fund for Sustainable Development 

Plus continued, backed by the External Action Guarantee of up to EUR
European Investment Bank signed 49 operations globally for a total amount of almost EUR
European Fund for Sustainable Development Plus guarantee, mobilising total investments of between EUR
9
billion. This instrument helps the EU to significantly increase the profile, scale and impact of its external 
engagement. 

billion. By the end of 2022, the 
3

53.45

billion under the 

6-

The Commission continued to support its priorities in cooperation with partner countries. This included EUR 1.7 
billion of disbursed support to sustainable agriculture and food systems globally, the EU s reconfirmed 
commitment to provide EUR
2027, the adoption of the Global Health Strategy
Pandemic Fund, the adoption of the first-ever Youth Action Pla

billion in support of biodiversity as part of its external cooperation in 2021-

 and engagement in the establishment of the new 

, and the 

 (29)

 (30)

7

28

)  https://ec.europa.eu/info/strategy/priorities-2019-2024/stronger-europe-world/global-gateway_en 

29

)  EU Global Health Strategy  

30

)  EU adopts the first Youth Action Plan in EU External Action. 

(

(

(

32 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

 which already involves 13 Member States
global  Digital for Development Hub Team Europe initiative
and strengthens coordination among Member States to foster an EU human-centric approach in digital 
transformation. 

 –

31
(

) 

A recent strategic evaluation of EU support for the rule of law and anti-corruption measures in partner 
countries found that the EU has been able to programme relevant rule-of-law interventions and add value in 
the justice sector, and also in relation to other EU values (e.g., human rights, gender equality, non-
discrimination). The EU aligned with national priorities when they were in place or, when they were not, was 
able to identify feasible entry points. EU support for the rule of law scored high in applying inclusive 
approaches, choosing an appropriate mix of aid types, providing critical support to civil-society organisations, 
ensuring flexibility during implementation and adapting to evolving situations.  

Strengthening sustainable growth and job creation in our 
neighbourhood  

The EU budget supports neighbourhood countries with specific programmes and actions, which are aligned 
with the political guidelines of President von der Leyen, the Paris Agreement on Climate Change and the 
United Nations 2030 Agenda.  

For instance, the Commission provided substantial support to Moldova to address the energy 
crisis and to the Southern Neighbourhood partner countries to mitigate the socioeconomic 

Resilience Facility. It also increased the provisioning of external lending mandate and macro-financial 
assistance legacy loans. Despite this, there has been no major impact on the implementation of the 
multiannual indicative programmes for 2021-2024 and the economic and investment plan flagship projects. 

225

million Food and 

environment. Since 2021, EUR
3.3
to almost half of the expected EUR

billion in grants has been committed (EUR
7

billion pledged within the framework of the joint communication 

1.6

billion for 2022), amounting 

31
(

)  Belgium, Germany, Estonia, Spain, France, Italy, Lithuania, Luxembourg, Netherlands, Portugal, Romania, Slovenia, 

Finland and Sweden. 

33 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

5.  Promoting our European way of 

life 

We will strengthen our partners through cooperation, because strong partners make 
Europe strong too. 

Ursula von der Leyen 
President of the European Commission 

As a Europe that protects, the EU and its Member States are building a strong European Health Union to 
better protect the health of EU citizens, prevent and prepare for future pandemics and improve Europe s 
overall health systems.  

A Europe that protects must also stand up for justice and for the EU s core values. 
aggression against Ukraine triggered the largest forced displacement of people in Europe since the Second 
World War. This happened against a background of increased irregular migration via routes across the 

cal purposes. 

The EU continued to improve on the long-term management of migration based on strong borders, 
modernisation of the EU s asylum system and cooperation with partner countries. 

EU funding programmes, such as Creative Europe, directly support European and Ukrainian cultural and 
creative organisations. The 2022 Creative Europe annual work programme allocated around EUR 400 million 
to the promotion of the diversity and competitiveness of the cultural and creative sectors across Europe, 
contributing to their recovery and resilience in the context of the Russian invasion of Ukraine and its 
consequences on the European economy. A special EUR 5 million call to support to Ukrainian displaced people 
and the Ukrainian cultural and creative sectors was launched in 2022. 

In 2022, the EU continued its work on developing tools to impose political, economic and reputational costs on 
the perpetrators of harmful information manipulation and interference, including those who target elections 
and open media environments. 

Preventing, detecting and rapidly responding to health emergencies. 

The COVID-19 pandemic and its consequences persisted in 2022. The EU, together with its Member 
States, is building a strong European Health Union to better protect the health of EU citizens, prevent 

The 2022 work programme for EU4Health foresaw EUR
pandemic. This financed, for example, resources to ensure capacity for the continuous production of vaccines 

million for the fight against the COVID-19 

381

-gathering function.  

The EU continued to support vaccination campaigns in the EU and beyond to mitigate the harmful 
effects of the virus. 
strategy proved successful. In total, since the start of the pandemic, 
almost 1  billion doses have been administered to people in the EU. However, evolving COVID-19 variants call 
for adapted vaccines. In 2022, the EU authorised adapted vaccines to be used in a new booster programme to 
prevent a rise in cases. 

34 

 
 
 
 
 
In 2022, the 
authority for preventing, preparing for and rapidly responding to cross-border health emergencies. It is 
another important component of a robust health union, which the EU continues to build to better protect the 

Annex

1

 Performance achievements in 2022 

The Health Emergency Preparedness and Response Authority helped provide
boosters against evolving COVID-19 variants for Member States until the end of 2022. To enhance 
the roll-out of COVID-19 vaccines in non-EU countries and to ensure the continuity of the fight against the 
human immunodeficiency virus, tuberculosis and malaria, the EU contributed through the Emergency Support 
Instrument. To improve access to vaccines in lower-income countries, the EU, with its Member States 
and financing institutions, contributed over EUR
initiative. 

billion through the 

) vaccines and 

5

-

32
(

The EU is also tackling the long-term effects of COVID-19 infection, such as long COVID. To this 
end, the EU budget funds large cohort studies that follow populations from around the world over a long 
period of time. Furthermore, research projects funded under Horizon 2020 and Horizon Europe are also 
looking into instances of long-term conditions that may appear following a COVID-19 infection.  

The EU Digital COVID Certificate
extended for another year and will continue to apply until 30
use their certificates to travel across the EU if the epidemiological situation worsens and travel restrictions 
are reintroduced. 

 an important tool during the height of the pandemic

June 2023. This extension will allow people to 

 was 

The crisis and the subsequent recovery have revealed vulnerabilities in the healthcare system. That is why 
the EU continued to sup
Facility, enabling them to emerge stronger from the COVID-19 pandemic. The recovery and resilience 
plans will support healthcare with more than EUR
billion for the duration of the facility. At the end of 2022, 
the Member States had fulfilled 33 out of 539 milestones and targets linked to measures contributing to 
healthcare. 

43

providing equal access to cancer diagnosis and treatment. It is another important building block of the 
European Health Union. The plan not only sets out to deliver concrete improvements for patients, but also 
aims to provide extra support for cancer survivors and healthcare professionals across Europe. The actions 
under this plan are supported under programmes such as EU4Health and the Horizon Europe Mission on 
Cancer
inter-speciality cancer training programme and a network for young cancer survivors. 

 earmarked for research and initiatives that address cancer. Examples include the development of an 

32
(

)  Using commitments made in 2021 via the Emergency Support Instrument. 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Addressing migration and asylum 

Asylum, Migration and 
Integration Fund 

Integrated Border 
Management Fund 

Emergency assistance under 
funds managed by DG 
Migration and Home Affairs 

1.4

billion in 2022 under this 

The EU budget committed 
EUR
fund, which promotes the 
efficient management of 
migration flows and the 
implementation, strengthening 
and development of a common 
approach to asylum and 
immigration in the EU. 

The EU budget committed 
1.0
billion in 2022 under this 
fund, which addresses challenges 
in the areas of the management 
of the external borders and 
common visa policy.  

400

The EU allocated EUR
million 
to provide emergency assistance 
to the Member States most 
affected by the initial reception of 
Ukrainian refugees and 
assistance to early integration. 

The Commission committed to mobilising EUR

400

million for emergency assistance during the global 

 of 9

April 2022. The EU contribution is meant to support the Member 

States in the reinforcement of their first-reception systems, capacity to manage the external borders and 
capacity to bridge first reception and early integration. The overall objective is to support the efforts of the 
Member States most affected by the unprecedented flows of displaced people from Ukraine. In this context, 
the programme and underlying emergency assistance were reinforced in 2022 by EUR
commitment appropriations and EUR

million in payment appropriations.  

million in 

181.7

150

400

million envelope, EUR

Moreover, as part of this EUR
exceptional efforts of the Member States in addressing the needs of the beneficiaries of the temporary 
protection directive. In practical terms, this means funding for the reinforcement of first-reception capacity to 
address the immediate and urgent needs of displaced persons from Ukraine and to bridge the gap between 
first reception and early integration.  

million has been allocated to support the 

261

An EU Support Hub for Internal Security and Border Management was set up in Moldova. 
The European Border and Coast Guard 
Russia and Ukraine to assist local authorities in dealing with arrivals of large numbers of 
refugees. The European Union Agency for Law Enforcement Cooperation also worked 
closely with all Member States to prevent and counter crimes such as human trafficking, firearms 
trafficking, money laundering and labour exploitation. 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

6.  A new push for European 

democracy 

Democracy has the power to quickly spread. But its erosion can happen just as fast. 
Democracy is freedom. We need to stand up for it. 

Ursula von der Leyen 
President of the European Commission 

ainst Ukraine is a war against 

democracy itself. Our democracy cannot be taken for granted. The EU budget is mobilised to strengthen 
democratic institutions. 

The general regime of conditionality continued to protect the EU budget from breaches of the principles of the 
rule of law.  

The EU budget was mobilised to strengthen democratic institutions, 
foster civic engagement and promote European values  

The EU budget is a critical tool for strengthening democratic institutions, fostering civic engagement and 
promoting European values. Through its support for a wide range of initiatives and programmes, the budget 
helps to promote democratic values and practices, to support civil-society organisations to promote 
democratic participation, and to protect human rights and social justice. By investing in these initiatives, the 
EU budget helps to create a more inclusive, democratic and prosperous Europe. 

The EU budget supports a range of programmes aimed at strengthening democratic institutions across the 
EU. These programmes include support for electoral reform, civil society development and overall help to 
promote transparency and accountability.  

The EU budget also supports initiatives aimed at fostering civic engagement across the EU. These initiatives 
include support for civil-society organisations and their work, and programmes to promote citizen participation 
 financed by the EU budget was the Conference on 
in political processes. 
the Future of Europe that concluded its work in May 2022, presenting 49 concrete proposals. Through these 
initiatives, the EU budget helps to promote active citizenship and promote democratic participation of citizens 
in policymaking.  

The EU budget plays a critical role in promoting European values, such as human rights, social justice and the 
rule of law. The budget supports a range of initiatives supporting marginalised communities, promoting 
gender equality and protecting the rights of refugees and migrants. Through these initiatives, the EU budget 
helps to promote a more inclusive and tolerant Europe.  

Erasmus+ supports student and staff mobility programmes, which allowed individuals to study and work in 
different Member States. The programmes promote cultural exchange and enhance the quality of education 
and training. The programme places a strong focus on social inclusion, the green and digital transitions, and 
cipation in democratic life. The outcomes of Erasmus+ are managed through 

37 

 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

the Erasmus+ projects platform. This includes most of the initiatives funded by the programme and a 
selection of good practices and success stories.  

Promoting the rule of law and preventing and mitigating emerging 
challenges 

Systematically upholding the rule of law across all Member States was an objective formulated by the 
Conference on the Future of Europe. For the first time, the annual Rule of Law Report 2022, published in July 
2022, contained recommendations addressing all Member States. Respect for the rule of law is also key 
for the sound financial management of the EU budget and the effective use of EU funding.  

December 2022, based on a proposal from the Commission, the Council 

In 2022, the Commission continued to implement the regulation on a general regime of 
conditionality for the protection of the EU budget (the  conditionality regulation ). It opened a 
procedure to protect the EU budget against rule of law breaches in Hungary, specifically concerning public 
procurement, the use of EU funds by public interest trusts, the effectiveness of prosecutorial action and the 
fight against corruption. On 15
adopted measures to protect the EU budget from breaches of the principles of the rule of law in Hungary. The 
Council decided to suspend 55% of the commitments for three programmes in cohesion policy, which 
6.3
corresponds to an amount of approximately EUR
also prohibited entering into new legal commitments with public interest trusts or entities maintained by them 
(many of which are universities) under any EU programme directly or indirectly managed by the Commission. 
Pursuant to the conditionality regulation, Hungary can submit further remedial measures to demonstrate that 
the conditions for budgetary measures are no longer fulfilled. The Commission will continue to lead the 
implementation and enforcement of the regulation, to identify possible breaches of the rule of law that affect 
or seriously risk affecting the EU budget in a sufficiently direct way and assess whether the conditions to 
launch the procedure set out in the regulation are fulfilled.  

billion in total for the 2021-2027 period. The Council 

1.6 in Annex

Section
of the EU budget. 

2 describes the implementation of the general regime of conditionality for the protection 

Fighting disinformation 

The exposure of citizens to large-scale disinformation, including misleading or outright false 
information, is a major challenge. The EU has taken significant steps to combat disinformation. In 
2022, the EU continued its work on developing tools to impose political, economic and reputational costs on 
the perpetrators of harmful information manipulation and interference, including those who target elections 
and open media environments. 
are well-informed and protected from the harmful effects of disinformation. 

 continued efforts in this area are crucial to ensure that its citizens 

In 2022, the Europe Direct contact centre assumed the role of an  EU solidarity with 
Ukraine  helpline, introducing a service in Ukrainian and Russian, in addition to the 24 EU 
official languages, and a selection of Europe Direct centres also began answering 
questions in Ukrainian and Russian. In 2022, DG Communication designed and 
implemented the  You are EU  campaign that showcased how the EU advances and accelerates the 
necessary transition to renewables and energy independence from Russia.  

38 

 
 
 
 
 
 
 
Annex

1

 Performance achievements in 2022 

• 

The  East  StratCom  Task  Force  has  successfully  exposed  and  countered  numerous  disinformation 
campaigns targeting the EU, and its work has received recognition from other countries and international 
organisations. 

•  Additionally, in line with the Commission guidance, major technology companies signed a strengthened 
Code  of  Practice  on  Disinformation.  The  code  of  practice  requires  these  companies  to  take  steps  to 
prevent  the  spread  of  disinformation  on  their  platforms,  such  as  improving  transparency  in  political 
advertising and promoting authoritative content. 

• 

• 

Furthermore,  the  EU  has  established  a  Rapid  Alert  System,  which  allows  Member  States  to  quickly 
exchange information and coordinate their responses to disinformation campaigns. This system was used 
to respond to numerous disinformation campaigns, including those related to the COVID-19 pandemic. 

The EU extended direct sup
international and like-minded partners, in particular the Group of Seven and the North Atlantic Treaty 
disinformation 
monitored  and  analysed  false  narratives  and  recommended  actions  and  counter-narratives  in  weekly 
reports prepared by the Commission. 

39 

 
 
 
 
 
 
 
2

Annex
and financial management  

 Internal control 

 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

1.  Strong tools to manage the EU budget in 

a complex environment  

It is the European 

beneficiaries in an effective, efficient and economical manner, while complying with the applicable rules. The 
Commission strives to achieve the highest standards of financial management while striking the right balance 
between a low level of error, fast payments and reasonable costs of controls. 

1.1. 

The EU budget: a wide variety of areas, recipients and 
spending in a complex environment 

In 2022, the expenditure managed by the Commission amounted to EUR
This encompasses the share of the EU budget managed by the Commission, along with the European 
Development Fund
ranging from a few hundred euro (for Erasmus+ mobility grants) to hundreds of millions of euros (for large 
projects such as the International Thermonuclear Experimental Reactor or Galileo and Copernicus, along with 
budgetary support for developing countries)

) and the EU trust funds. This expenditure corresponds to more than 260

). The recipients of EU funds are very diverse and numerous. 

) (see figure below). 

billion

000 payments, 

169

35
(

34
(

33
(

Single 
market, 
innovation 
and digital  

Cohesion, resilience 
and values  

Natural 
resources 
and 
environment  

Migration and 
border 
management 

Security and 
defence 

Neighbourhood 
and the world 

EUR
20.4
billion (12%) 

EUR
67.5
billion (40%) 

EUR
57.7
billion (34%) 

2.5

EUR
(1%) 

billion 

EUR
0.03
billion (0%) 

EUR
13.6
billion (7%) 

More than 
500 grants 
5
were signed 
under the 
Horizon Europe 
research 
programme by 
31
December 
2022 

million 

Around 3.7
enterprises have been 
supported and almost 
60
million people have 
been covered by 
improved health 
services, social care, 
education skills and 
housings since 2014 

6.3
million 
beneficiaries 
have been 
supported with 
agricultural 
funds under a 
variety of 
different 
schemes 

million legal 

More than 
1.9
migrants 
benefited from 
integration 
measures at the 
national, local and 
regional level 

The European 
Defense Fund 
awarded a total EU 
support of 
EUR
1.17
60 defence 
industrial 
cooperation projects 
by December 2022 

billion in 

Relevant expenditure of the EU budget implemented by the Commission in 2022, by policy area, in % and billion EUR 
Source: European Commission annual activity reports.  

Assistance was 
provided to 
around 130
non-
EU countries on 
five continents 

n
o
i
t
a
r
t
s
i
n
m
d
a

i

c
i
l
b
u
p

n
a
e
p
o
r
u
E

33
(

) 

34
(

) 

financing paid out in 2022, plus the pre-financing paid out in previous years and cleared in 2022 (for definitions and 
more details, see Annex
Resilience Facility, which is covered in Annex

5). This amount does not include the payments made in the context of the Recovery and 

3. 

diture corresponds to the payments made in 2022 minus the pre-

2021-2027 multiannual financial framework. 

)  The amo

35
(

-

financing paid out in 2022, plus the pre-financing paid out in previous years and cleared in 2022 (for definitions and 
more details, see Annex

5). 

43 

)

%
5
4
(

.

n
o

i
l
l
i

.

b
7
7
R
U
E

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Similar to previous years, about three quarters of the budget
natural resources) is implemented under shared management. This means that once programmes are 
negotiated and decided by the Commission, Member States, or bodies designated by them, select projects, 
distribute funds and manage expenditure in accordance with EU and national law, and share this responsibility 
with the Commission. The rest of the budget is spent either directly by the Commission or indirectly in 
cooperation with entrusted entities. The table below describes the three management modes. 

) (e.g. expenditure on cohesion policy and 

36
(

Examples of 
programmes/spending 

Other actors 
involved, in 
cooperation with 
the Commission 

Horizon 2020; Connecting 
Europe Facility; administrative 
expenditure 

N/A (funding goes 
directly to the 
beneficiaries) 

Erasmus+; part of development 
and humanitarian aid;  
pre-accession assistance 

Agencies, joint 
undertakings, 
United Nations, 
World Bank, 
European 
Investment Bank, 
European Bank for 
Reconstruction 
and Development, 
non-EU countries 

Agricultural funds; Maritime 
and Fisheries Fund; European 
Regional Development Fund; 
Cohesion Fund; European 
Social Fund and Youth 
Employment Initiative; 
migration, border management 
and security funds 

Paying agencies 
for common 
agricultural policy: 
76; operational 
programmes for 
cohesion policy 
funds: 492, in all 
Member States 

Direct 
management  
Funds are 
implemented by the 
Commission 

Indirect 
management 
Funds are 
implemented in 
cooperation with 
external entities 

Shared 
management 
Funds are 
implemented in 
cooperation with 
Member States  
national and/or 
regional authorities, 
which have a first 
level of 
responsibility in 
budget 
implementation. 

2022 expenses by management mode - Recovery and Resilience Facility excluded 

Source: European Commission draft annual accounts 2022

 Statement of financial performance. 

36
(

)  Not including the Recovery and Resilience Facility. 

44 

 
 
 
  
 
 
 
 
Annex

2

 Internal control and financial management 

2022 was the second year of the new 7-year financial framework. In practice, there are still very few 
payments related to that new programming period in 2022 because of the late adoption of the legal bases 
(all funding programmes) and the subsequently late adoption of the programmes under cohesion policy (until 
the end of 2022). Payments related to the 2021-2027 programming period are expected to reach significant 
levels in the years to come. In 2022, the pandemic no longer affected the way the Commission and its 
implementing partners  work. However, the new crises that emerged in 2022 and the resulting high inflation 
put more pressure on resources that are already scarce and require an effective internal control to ensure the 
strict application of the principles of economy, efficiency and effectiveness when spending the EU budget. 

45 

 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

1.2. 

responsibility 

As the authorising officer of the Commission, the College of Commissioners is politically responsible for the 
management of the EU budget

 underpinned by a clear division of 

responsibilities between the political and management levels, a strong commitment to performance 
management and compliance with the legal framework, transparency and high standards of ethical 
behaviour, and well-defined reporting

 lead to a solid chain of assurance building and accountability. 

The governance system and chain of accountability used by the Commission are tailored to its unique model 
of decentralised decision-making in budget implementation; the College of Commissioners delegates the day-
to-day operational management to the 51 authorising officers by delegation
) who manage and steer their 
departments towards delivering on their objectives as defined in their strategic plans, taking into account 
available resources. The authorising officers by delegation are accountable for the share of the EU budget 
implemented in their department. 

37
(

In their annual activity reports, the authorising officers by delegation report in a transparent way on the 
performance and results achieved, on the functioning of their internal control systems and on the financial 
 taking account of the assurance provided by Member States 
management of their share of the EU budget
under shared management. Each annual activity report contains the Director-
assurance. The latter may be qualified with a reservation if authorising officers by delegation identify any 
weaknesses that have a significant impact. In parallel, they put in place action plans to mitigate future risks 
and to strengthen their control systems. 

 declaration of 

The annual management and performance report presents the synthesis of the annual results for the EU 
budget at the Commission level, based on the assurance and reservations contained in all the annual activity 
), 

38
(

which is adopted by the College of Commissioners. 

The ensuing annual budgetary discharge procedure allows the European Parliament and the Council of the 
European Union to hold the Commission politically responsible for the implementation of the EU budget. The 

reporting; the annual and special reports of the European Court of Auditors, along with its statement of 
assurance on the reliability of the accounts and the legality and regularity of underlying transactions; the 
hearings of Commissioners and Directors-General; and a recommendation from the Council. 

objectives, to use resources efficiently and effectively and to ensure that the EU budget is implemented in 
accordance with the principles of sound financial management. An overview is presented in the chart on the 
following page. 

37
(

) 

-General of Commission DGs, heads of executive 

agencies, offices, services, task forces, etc. Article
officer shall be responsible in the Union institution concerned for implementing revenue and expenditure in 
accordance with the principle of sound financial management, including through ensuring reporting on performance, 
and for ens

74(1) of the financial regulation states 

)  As required by Article

247 of the financial regulation, the integrated financial and accountability reporting package 

38
(

also includes the consolidated annual accounts of the EU, the report on the follow-up to the budgetary discharge for 
the previous financial year, the annual report to the discharge authority on internal audits carried out and the long-
term forecast of future inflows and outflows of the EU budget. 

46 

 
 
 
 
 
 
 
 
 
 
e
ng  
r
r
a
a
h
e
c
y
s
i f
D
o

e
g
r
a

  l
t i
c
n
n
a n
e
e u
p m o h
ao
C
c
i  
s
r
l
d
i
r
u
Da n
E
P a

l
a  
i y
c t
i
n
l
a i
b
n
i a
t )
f
*
n
(
d u  
e ot
g
n
c i
a
c tr
a r
g  
oe
d p
t n
e
n
I a r

Annex

2

 Internal control and financial management 

t e o t
r
ec t
o
n   g
g
p
a d
e r n u
r i
u
  t b
l a
s
a l
s
ea
u
n r
n f s
oA t
r
o
n p
e e
m
e l
t a
a i
c
t
e
S
p
S

r

t

2
e
+
g
n
r
a
r
h
a
c e
s
i Y
D

n  
f s
a r
o
e  
o
p t t
r i
o u d
r
o uu
AE
C

t
i
d
u
a

l

a
n
r
e
t
x
E

f n
o o
  i
n
s
t U
n  
  u
n
d
o
ae
t c
e
c p
a
d a
o
i  
rl
l
a u
o
u E
s
n  
n
e
o n h
C a t

n
g
o
n
n
i
a i r
s
t e
e
s
p i n
c
i
u f
o m
r o f
m O
c
u
co
E
AC

t
n
a
t
n
u
o
c
c
A 1
+
n
r
a
e
Y

s
e
i
t
i
l
i
b
i
s
n
o
p
s
e
r

d
n
a

s
e
l
o
r

r
a
e
l
c

:
t
e
g
d
u
b
U
E

e
h
t

r
o
f

y
t
i
l
i
b
a
t
n
u
o
c
c
a
d
n
a

g
n
i
d
l
i
u
b
-

s
e
g
a
k
c
a
p

e
c
n
a
r
u
s
s
A

i

i

s
r
e
n
r y
o e t
c l
i
s
i bf i
s
i f s
m o n
m o
g
p
o n
s
e
C s
r
i  
f r
l
o a
o
c
  h
e i
t t
g i
u l
o
e
l A P
l
o
C

i

i

s
s
n
e
e
o e
n
r
i
a
g t
s
e s
o t
p
mm
r
o
P
mm
r  
u t
i oo d
E
CC u
A

i

e
c
n
a
r
u
s
s
A

  y
s
l
t
a t
i
r
u v
n i o
t p
n c e
A a r

d
r
a
  o
B
e
t
t  
h
t
a
r n
g
e i
o s
p m
r
e
r e
o v
g OC
a
n
a
M

  t
n i d
n y
  d
n o u
a
c
i e
a
n
A e
s
c
a
e
s
  i c
t
p l
i v
n
l
a r a
o m n
u
m e s
r
r
u r
n
S u
eE
s o
o
t s c
C
n
I

A

i

l s
a r
d
e
r
n
y
c n
t
e
a
t
i
n
o   i
n
f
e
y l
i
f t
e
b
m
o
t
a i
G
a
g
g
e
-
s e b t
n
g
n
ilr
i
s u
a
e
s
o i
n
n o
t r d
o   o c
a
y
c
M p
c
h
b
e
s
a
t
r u
e
r
D A

l
i

i

d
n
a
  l
o
t
n
r
s t
e
r
n
m
o o
t c
e
c  
g
l
e a
a
r n
n
r
i
a
e
D
m
t
n
k i
s
i
R

l

s o
e r

tt na or

co  
t t
c n
e e
i m
r
e
d
g
/
s
a
t
i n
n a
M
U

s
e
n c
o i
n
i v
a
s
r
e
e
s
p i
s
m l
o  
r m a
u r
E
o
t
n
C
e
c

d
n
a
t
  r
e
o
c
p
n
p
a
u
d
s
u
G

i

i

s
t
e
m
c
i e
t r ti
o
d
n
r  
t
d
f r n
e
n
n
e
a e i
m
e
b
  d
e
c
s
m d
n
g
n
e e
a
a
a t  
e
n
t d
a s
r M
a
e
u t uS r
m
r
s
a
s
h
S
A

t
n
e

t
i
d
u
a

l

a
n
r
e
t
n
I

l

o
r
t
n
o
c

l

a
n
r
e
t
n

i

d
n
a
t
n
e
m
e n
g
a r
a
n e
a Y
M

e
n

i
l

e
m
T

i

i

i

l

r

n
o
s
n
w
U
o
n l
f
a t
t
r u
e
o
o
p
p
o e
d
e
r
n
u
g
a
e
E  
r
a
c s
e
n
w h
h
a
c
t m o s
f f
d
o r n
  o i
e
s f
h
rf e
t
e
n
t
r
t  
u
p
u
r
t oo t
o
u
p  
c
c n e
f
p
a f r
u
a
t o -
t
i w
n  
d
t
e
o
s
u
a
m
a
c
e
e
r a
g
e
o n
a
h
n f r
  e
t
a
m  t
nn
m
r i
  o
e
 lt
a t
o - r
u
s g o
n n n n
p
o n o n e
A L A R
C

a
u
n
n
a

d
e
t
a
d

a
u

o
f

d

l
l

i
l

l

l

l

-

:

g
n

i
t
r
o
p
e
r

y
t
i
l
i
b
a
t
n
u
o
c
c
a

d
n
a
l
a
i
c
n
a
n

i
f
d
e
t
a
r
g
e
t
n
I

)
*
(

47 

 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

1.3. 

A robust internal control framework contributing to the 

1.3.1.  The internal control framework continued to evolve with its 

environment 

The Commission can rely on a strong corporate internal control framework based on the highest international 
standards

39
(

).  

Risk management and control mechanisms have been further streamlined and reinforced regarding the 
implementation of the NextGenerationEU recovery plan. Since its endorsement in 2020, a particular focus has 
been put on adapting the internal control systems to the needs of the related operations. At the end of 2021, 
the Commission issued the NextGenerationEU high-level risk and compliance policy in line with the 
d 

compliance framework to protect the financial interests of the EU and to ensure the probity, integrity and 
transparency of NextGenerationEU operations such as borrowing, debt management and lending operations. 
In 2022, the Commission continued to develop the governance and control frameworks by putting in place 
processes and control points across all the core borrowing and lending activities, including funding planning, 
execution of borrowing transactions, liquidity management, cost calculation and allocation. These processes 
ensured that all aspects of borrowing and lending operations were implemented in accordance with a robust 
set of risk controls, fully documented and implemented consistently by the responsible teams subject to 
rigorous oversight by a second line of defence (an independent chief risk officer).  

In December 2022, the Commission also established the framework for EU borrowing and debt management 
operations in 2023 under a unified funding approach, i.e. the diversified funding strategy
the arrangements for the implementation of the diversified funding strategy for borrowing and debt 
management operations within the scope of Article 220a of the financial regulation, as well as to the related 
lending operations
). The asset management governance guarantees a clear delegation of decision-making 
and lines of accountability, adequate segregation of duties between front office, risk and back office, clearly 
defined roles and well-framed and documented procedures and processes and checks and balances at all 
levels. The compliance procedures provide the framework for adequate rules for codes of conduct to manage 
potential personal conflicts of interest and rules to manage risks of insider trading. 

), together with 

40
(

41
(

For the implementation of the Recovery and Resilience Facility, on the expenditure side, in 2022, the 
Commission further fine-tuned and completed the specific audit and control strategies put in place in 2021. 
These build on the experience gained in 2022 with a higher number of payment requests received and the 
ensuing intensification of the 

3). 

Already in 2021, the Commission adopted guidance on the avoidance and management of conflicts of 
interest under the financial regulation
(direct, indirect and shared management). It 

). This guidance covers all methods of EU budget implementation 

42
(

interpretation and application of the rules on avoidance of conflicts of interest among staff of the EU 

promoting the uniform 

39
(
40
(

41
(

42
(

)  As established by the Committee of Sponsoring Organizations of the Treadway Commission. 
)  Commission Implementing Decision establishing the framework for EU borrowing and debt management operations 

in 2023 under the diversified funding strategy (C(2022)

9701).  

)  Commission Implementing Decision (EU, Euratom) 2022/2544 of 19 December 2022 establishing the arrangements 

for the administration and implementation of the EU borrowing and debt management operations under the 
diversified funding strategy and related lending operations (C(2022) 9700). 

)  Commission Notice

 Guidance on the avoidance and management of conflicts of interest under the Financial 

Regulation 2021/C 121/01. 

48 

 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

institutions and Member State authorities, along with any person involved in the implementation of EU funds. 
The Commission is continuing to deliver targeted awareness-raising measures on conflict of interest and 
presentations of this guidance to Member State authorities and related expert networks, and its internal 
specialised networks. Such targeted measures and presentations will continue to take place over the course of 
2023 and beyond. They aim at raising awareness and promoting the uniform interpretation and application of 
the rules on avoidance of conflicts of interest among staff of the EU institutions and Member State 
authorities, along with any person involved in the implementation of EU funds. 

In 2022, the Commission continued to provide new or updated guidance. This was namely focused on ways to 
address the impact of increased inflation and on how to implement the EU restrictive measures among 
others. As regards indirect management, DG Budget continued to provide horizontal guidance and support to 
Commission services by issuing instruction notes on key aspects of the process (e.g. on supervisory 
measures). 

1.3.2.  A mature internal control framework adapted to the functioning of the 

Commission departments 

Overall, for 2022, the internal control principles are present and working as intended. Departments assess the 
functioning of their internal control according to a common methodology and summarise their conclusions in 
the annual activity reports. This assessment confirms that the Commission departments have continued to 
make efforts to address the deficiencies identified in 2021 in their internal control systems, namely for the 
control environment and the risk assessment components. 

The Commission acknowledges that for some internal control principles some improvements are still needed, 
corresponding to mostly minor deficiencies that have been identified and reported in the annual activity 
reports of the departments. This mainly concerns control activities, where the assessment is mostly based on 
control results (i.e. where residual error rates are above 2%), the progress made for the establishment of an 
internal control system in the case of a new entity taking also into account audit findings. On these points, the 
relevant departments put measures in place to address the weaknesses identified. They are supported by the 
corporate services that regularly monitor the progress made. The overall situation is presented in the chart 
below. 

49 

 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Assessment of the functioning of the 17 internal control principles: number of Commission departments that reported that internal control principles 
were upheld and functioned properly in 2021 and 2022. 
Source: European Commission annual activity reports. 

1.4.  Multiannual control strategies to ensure that expenditure is 

legal and regular 

1.4.1.  Control strategies are multiannual and risk differentiated 

Within their internal control systems, the authorising officers, as managers of the EU budget, put in place 
multiannual control strategies designed to prevent errors and, if they cannot be prevented, detect and correct 
them. In line with their responsibility to carry out individual payments, they need to build their assurance from 
the bottom up and in detail, i.e. by programme or other relevant segment of expenditure. This allows the 
Commission to detect weaknesses and errors in a detailed and differentiated manner for each programme or 
segment of expenditure, to identify the root causes of systemic errors (e.g. the complexity of rules in certain 
policy areas, such as research and cohesion), to take targeted and proportionate corrective actions and to 
ensure that any lessons learned are used to improve the management and control systems and are factored 
into the design of future financial programmes. 

EU spending programmes are multiannual by design, and so are the related control strategies. This implies 
that the detection and correction of errors may happen at any time, up to the point of closure at the end of 
a
the
associated

different management modes, actors involved, policy areas and/or funding arrangements and 

risk differentiated, i.e. they are adjusted to 

risks. 

50 

 
 
 
 
 
 
Annex

2

 Internal control and financial management 

For the 2022 results mentioned in the circles, see Section
Source: European Commission. 

2.1. 

1.4.2.  Prevention is the first line of defence against errors 

ex ante controls and audits (see Annex

5), including 

under shared management, along with audits to d
management and control systems. These preventive controls lead to the rejection of ineligible amounts before 
the Commission makes (final) payments and to the interruption and/or suspension of payments until the 
deficiencies in the systems are fixed. In addition, guidance provided to beneficiaries and implementing 
partners helps to prevent errors. 

51 

 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

•  Under shared management, the corrections implemented by the Member States before declaring 
their  expenditure  to  the  Commission  result  from  management  verifications,  controls  and  audits, 
including systems and operations audits, that they carry out ex ante and ex post at their level (before 
and  after  they  make  payments  at  their  level).  Such  corrections  are  mostly  applied  by  way  of 
deductions of ineligible expenditure from payment claims to the Commission or certified accounts. 

• 

The amounts corrected at the Member State level may be reused, under certain circumstances. This 
serves as an incentive for Member States to carry out the necessary verifications and audits and 
correct irregular expenditure before they submit their cost claims to the Commission. 

1.4.3.  The detection and correction of errors complements prevention 

Where preventive mechanisms have not been effective, it is important that errors affecting EU expenditure 
are detected a posteriori, through ex post audits and controls that the Commission carries out on amounts it 
has accepted and paid out (see Annex
III). These errors are then corrected by the Commission 
during the same year or in subsequent years, by way of recoveries or offsetting from final recipients under 
direct and indirect management or from the Member States under shared management. Under shared 
management, Member States also carry out controls 
controls also lead to corrections a posteriori. 

5 in Volume

• 

• 

In relation to agriculture, the bulk of the corrections correspond to cases where systemic errors have 
been identified and corrections applied to the relevant expenditure for a given paying agency or 
programme  (financial  corrections).  The  remainder  of  the  corrections  correspond  to  amounts 

payments;  these  are  partially  reimbursed  to  the  EU  budget  and  partially  reused  for  regular 
expenditure by the Member States. 

In  relation  to  cohesion,  until  now,  for  the  2014-2020  programming  period,  all  the  corrections, 
ex post audits 
ex post audits and controls or t
and  controls  (including  the  follow-up  of  the  Commission  on  audits  of  the  Court  of  Auditors  and 
investigations of the European Anti-Fraud Office), were implemented by the Member States. This 
allows the Member States to reuse the corresponding amounts for eligible expenditure since the 
strict conditions for net corrections set in the regulatory framework were not deemed fulfilled. If 
control  systems  work  properly  at  the  Member  State  level,  the  need  for  net  financial  corrections 
implemented at the Commission level is much more limited. 

Furthermore, weaknesses in control systems, detected through risk-based and/or system audits, are also 
addressed, and systems are corrected. In the context of shared and indirect management, this is done in the 
first place by the implementing Member States and partners. For more information on the protection of the 
EU budget, see Annex

5 in Volume

III. 

52 

 
 
 
 
 
further proposals 

1.5. 

1.5.1. 

Annex

2

 Internal control and financial management 

-fraud strategy and 

-fraud strategy 

The Commission has zero tolerance for fraud. Pursuant to Article
325 of the Treaty on the Functioning 
of the European Union, the Commission and the Member States protect the EU budget from fraud and other 
illegal activities.  

At the corporate level, by the end of 2022, the implementation of the action plan connected to the current 
corporate anti-fraud strategy adopted in April 2019 has been almost fully achieved, with 60 out of the 63 
measures completed. The strategy and its action plan play a significant role in preventing the possible misuse 
of EU money. The European Anti-Fraud Office coordinates and monitors its implementation. To ensure 
sustained anti-fraud efforts in the Commission and address new challenges, the Commission started 
preparations in 2022 for a revision of the plan. 

At the department level, by the end of 2022, 94% of all local anti-fraud strategies had been updated since 
the adoption of the Commission Anti-Fraud strategy in 2019. In line with its Anti-Fraud strategy, the 
Commission has reinforced coordination and cooperation, notably through the Fraud Prevention and Detection 
Network which brings together anti-fraud correspondents of Commission services and executive agencies and 
is coordinated by the European Anti-Fraud Office. In this context, several Commission services updated their 
local anti-fraud strategies in cooperation with the European Anti-Fraud Office in 2022.  

In 2022, the European Anti-Fraud Office further continued its analytical work, for example by 
finalising a comprehensive risk framework for the Recovery and Resilience Facility and analysing 
the reasons for the decrease in the reporting of non-fraudulent irregularities between the 2007-
2013 and 2014-2020 programming periods in the cohesion policy area. The Recovery and Resilience 
Facility risk framework develops a three-dimensional model which takes into account risks linked to: (i) the 
nature and complexity of the investments; (ii) the achievement of the targets; and (iii) th
capability. It is meant as a tool for national authorities, which, within this framework, should develop their risk 
assessments based on the type of investment they are responsible for. The analysis of the reasons for the 
decrease in the reporting of non-fraudulent irregularities highlights a number of potential causes (such as 
delays in the implementation of the programmes; increased use of simplified costs option; changes in the 
reporting practices; introduction of annual accounts and the exclusion of ongoing assessments; and increased 
administrative capacity) to explain this decrease, but underlines that these do not explain the entirety of the 

interests in September 2022

43
(

). 

l 

In 2022, the European Anti-Fraud Office also continued to perform investigative activities, reporting on them 
in its annual reports. 

43
(

)  COM(2022) 482, 23.9.2022. 

53 

 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Highway to fraud 

The European Anti-Fraud Office opened an investigation, together with the European Investment Bank, 
into a EUR 100 million alleged fraud linked to irregularities during the tender phase of the 
construction of a highway in Bosnia and Herzegovina.  

The investigation focused on possible corrupt practices involving a publicly owned economic operator, 
relating to the process of awarding a tender (which was fully funded by a loan from the European 
Investment Bank) to manage, construct and maintain the highway. The tender process was part of a 
larger construction project with a total value of over EUR 200 million.  

The European Anti-Fraud Office and investigators of the European Investment Bank cooperated 
closely during the investigation. The European Anti-Fraud Office proved that members of the 
management of the economic operator exerted undue influence on the members of the tender 
evaluation committee to exclude one bidder from the process and select a preferred bidder. The 
European Anti-Fraud Office also proved that both the rules set out in the finance contract between the 
European Investment Bank and the candidate country and the guidelines on procurement procedures 
were breached. 

Thanks to the investigation, which was completed in less than 1
stopped before they really got going, thereby preventing EUR

97.8

year, the practices were spotted and 
million from being unduly spent. 

1.5.2.  Other tools to increase the efficiency of the fight against fraud 

44
(

). This proposal establishes a framework for ensuring common cybersecurity rules 

March 2022, the Commission adopted a proposal for a regulation of the European Parliament and of 

On 22
the Council laying down measures for a high common level of cybersecurity at the institutions, bodies, offices 
and agencies of the EU
and measures among the EU institutions, bodies and agencies. It aims at further improving the resilience and 
incident-response capacities of 
the digital age and to build a future-ready economy that works for the people. Moreover, ensuring a secure 
and resilient public administration is a cornerstone in the digital transformation of society as a whole. This 
cybersecurity strategy for 
proposal builds on the EU security union strategy (COM(2020)
the digital decade (JOIN(2020)

18). 

Fraud prevention and sanctioning also continued through the early detection and exclusion 
system, which allows for the early detection of fraudulent or unreliable economic operators, their blacklisting 
(exclusion) by banning them from obtaining EU funds and possible imposition of financial penalties. The 
exclusion decisions contained in the early detection and exclusion system database are also currently made 
available to all entities implementing the budget in all management modes. The early detection and exclusion 
system proceedings are based on information collected through audits and checks carried out by authorising 
officers by delegation, final judgments or administrative decisions by national authorities, decisions by 
international organisations and, for the most part, European Anti-Fraud Office investigations. The early 
detection and exclusion system works based on a strong and fruitful interaction between the authorising 
officers responsible and the early detection and exclusion system panel.  

In 2022, the Commission put forward several measures in order to: (i) promote the use of the early detection 
and exclusion system; (ii) enhance its effectiveness; and (iii) make the system more efficient. In particular, in 
the context of the proposal for the amendment to the financial regulation, the Commission proposed to 

44
(

)  Proposal for a regulation of the European Parliament and of the Council laying down measures for a high common 

level of cybersecurity at the institutions, bodies, offices and agencies of the Union (COM(2022)

122). 

54 

 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

extend the early detection and exclusion system to beneficiaries under shared management with a 
proportionate and targeted approach. Moreover, the Commission proposed to allow the exclusion of affiliated 
entities and/or beneficial owners of a primary excluded entity from bidding for public contracts and ultimately 
from obtaining EU funds. 

1.6. 

The conditionality regime is being implemented 

 in December 2020, the EU has had, for the first time, a specific tool to 

Since the adoption of the regulation on a general regime of conditionality for the protection of the EU budget 
(the 
protect its budget from breaches of the principles of the rule of law. The conditionality regulation 
January 2021 and complements other procedures established by EU legislation for the 
came into effect on 1
protection of the EU budget. It aims at protecting the EU budget against breaches of the principles of the rule 
of law that affect or seriously risk affecting its sound financial management or the protection of the financial 
interests of the EU in a sufficiently direct way. The validity of the conditionality regulation was fully upheld by 
the Court of Justice in two judgements (cases C-156/21
on 2
2020/2092 on a general regime of conditionality for the protection of the EU budget.  

March 2022, the Commission adopted its guidelines on the application of Regulation (EU, EURATOM) 

)). Following those judgements, 

) and C-157/21

46
(

45
(

The conditionality regulation is yet another tool in the wider  rule of law toolbox  that includes different 
instruments aimed at safeguarding the respect of rule of law principles in Member States. The conditionality 
regulation, in particular, protects the Union budget from breaches of the principles of the rule of law. Although 
not aimed at protecting the EU budget as such, some other instruments of the toolbox are also key to protect 
the rule of law in the EU: the annual rule of law report, for example, includes recommendations to Member 
States since 2022. Finally, the national recovery and resilience plans adopted in 2021 and 2022 under the 
recovery and resilience facility regulation also reinforce the respect of the rule of law and the protection of 
the EU budget, insofar as they contain milestones addressing country-specific recommendations linked to rule 
of law issues. For example, in the case of Hungary, the remedial measures submitted by Hungary in the 
context of the procedure under the conditionality regulation have been transposed into corresponding 
milestones under the Hungarian recovery and resilience plans. 

Since January 2021, the Commission has constantly monitored the situation across Member 
States. It will trigger the procedure under the conditionality regulation if the conditions are 
fulfilled. In 2022, the Commission adopted guidelines on the application of the regulation on a 
general regime of conditionality for the protection of the EU budget. 

December 2022, following a proposal from the Commission, the Council adopted measures 

On 15
for the protection of the EU budget under the conditionality regulation. This concludes a procedure 
launched by the Commission in April 2022 after the Court of Justice had upheld the validity of the 
conditionality regulation, which had been contested by Hungary and Poland. The Council decided to suspend 
55% of the funds for three programmes under cohesion policy (Environmental and Energy Efficiency 
Operational Programme Plus, Integrated Transport Operational Programme Plus, Territorial and Settlement 
billion in 
Development Operational Programme Plus), corresponding to an amount of approximately EUR
total for the 2021-2027 period. The Council also prohibited entering into new legal commitments with public 
interest trusts or entities maintained by them, under any EU programme directly or indirectly managed by the 
Commission as from 16
were proposed by Hungary but not yet completely, adequately or correctly implemented, including the set-up 
of an independent integrity authority with extensive powers to ensure a level playing field in public 
procurement procedure and to contribute to the prevention, detection and correction of fraud, corruption and 
conflict of interest (including important powers to verify asset declarations). It is worth noting that the Council 
implementing decision has not been challenged by Hungary before the Court of Justice. However, the 

December 2022. The Council decision takes into account remedial measures that 

6.3

45
(
46
(

)  See judgement of 16
)  See judgement of 16

February 2022, Hungary v Parliament and Council, C-156/21, ECLI:EU:C:2022:97. 
February 2022, Poland v Parliament and Council, C-157/21, ECLI:EU:C:2022:98. 

55 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

prohibition regarding public interest trusts and entities maintained by has been challenged before the General 
Court. The Commission intervenes in support of the Council to defend the Council implementing decision. 

Following the Council implementing decision of December 2022, in line with the conditionality regulation, 
Hungary can propose further remedial measures to address the remaining concerns with a view to lifting the 
measures imposed by the Council. If the Commission considers that the issues have been remedied partly or 
in full, it must then submit to the Council a proposal for an implementing decision to adapt or lift the adopted 
measures.  

1.7. 

Proposal for a recast of the financial regulation: the process is 
ongoing 

The proposal for a targeted recast of the financial regulation was adopted on 16
) following an 
extensive consultation process within the EU institutions and bodies, and a public consultation. The proposal 
focuses on alignment with the 2020/2021 multiannual financial framework  2021-2027 package, certain 
improvements in crisis management (lessons learned during the COVID-19 crisis), enhanced protection of EU 
financial interests (e.g. compulsory use of data mining for audit and control and extension of the early 
detection and exclusion system to shared management, to exclude untrustworthy operators from all funding) 
as well as necessary simplification. The Commission prepared extensive supporting material for the ongoing 
discussions with the European Parliament and the Council. The Court of Auditors issued an overall supportive 
opinion in October 2022. 

May 2022

47
(

In parallel, the Commission adopted two other proposals for amending the financial regulation. The first one 
addresses the budgetary impact of recent case-law on annulled or reduced fines
together with the targeted recast, awaiting the outcome of relevant Court cases. The second one was urgently 
adopted by the European Parliament and Council in December 2022 in the context of mobilising financial 
). 
support for Ukraine and established the diversified funding strategy as a general borrowing method

). It is being discussed 

49
(

48
(

The Commission will continue to provide support to the European Parliament and the Council on the two 
pending proposals. The respective mandates on the recast are expected by June 2023. The Commission is 
committed to facilitating political agreement by the end of 2023. The new rules making the budget more 
agile, transparent and better protected should enter into force in early 2024. 

47
(

)  Proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the 

general budget of the Union (recast) (COM(2022)

223). 
)  Proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) 

48
(

49
(

2018/1046 on the financial rules applicable to the general budget of the Union (COM(2022)

184). 

)  Regulation (EU, Euratom) 2022/2434

of the European Parliament and of the Council of 6

December 2022 amending 

Regulation (EU, Euratom) 2018/1046 as regards the establishment of a diversified funding strategy as a general 
borrowing method. 

56 

 
 
 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

Use of the single data mining and risk-scoring tool 

In  its  2022  proposal  for  a  financial  regulation  recast,  the  Commission  proposed  to  reinforce  the 

-

of  EU  budget  implementation  (shared,  direct  and  indirect  management),  the  standardised  electronic 
recording  and  storing  of  data  on  the  recipients  of  EU  funding,  including  their  beneficial  owners.  The 
proposed measures require the use of a single integrated information technology system for data mining 
and  risk-scoring  (provided  by  the  Commission)  to  access  and  analyse  data  on  the  recipients  of  EU 
funding and allow the identification of contracts and recipients which might be susceptible to risks. The 
information technology system should facilitate risk assessment for the purposes of selection, award, 
financial  management,  monitoring,  investigation,  control  and  audit  and  contribute  to  the  effective 
prevention, detection, correction and follow-up of fraud, corruption, conflicts of interest, double funding 
and other irregularities. 

The Commission proposal contains a provision making the use of the tool compulsory. This provision 
may  prove  difficult  to  accept  for  the  Member  States.  In  line  with  Part  IV  of  the  Inter-Institutional 
Agreement of 16
December 2020, the Commission continued promoting the use of the tool for control 
and audit purposes and proposing its compulsory use in several basic acts, with a view to a generalised 
application by Member States. 

In parallel, DG Budget cooperated with other DGs in 2022 on the establishment of the corporate data 
mining and risk-scoring tool that would meet the above requirements and the user needs of the Member 
States and Commission services. 

57 

 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

2.  Cost-effective controls protecting the EU 

budget 

In line with the Internal Control Framework of the Commission, all departments apply the common control 
features described above independently from the source of funding. Measures to prevent, detect and correct 
irregularities are applied on a multiannual basis at the level of specific programmes or other expenditure 
segments. As individual spending programmes may be very diverse, control strategies need to be adapted to 
different management modes, policy areas, beneficiaries and/or funding methods and their associated risks. 

The Commission aims to strike the right balance between: 

• 

• 

• 

a low level of error, 

fast payments, 

reasonable control costs for all actors and reasonable administrative burden on beneficiaries. 

This differentiation of the control strategies is needed to ensure that the controls remain cost-effective, i.e. 
that they strike the right balance between ensuring a low level of error (effectiveness), fast payments 
(efficiency) and reasonable costs (economy). Riskier areas will trigger a higher level of scrutiny and/or 
frequency of controls, whereas low-risk areas should lead to less-intensive, less-costly and less-burdensome 
controls. In addition, the actual recovery potential of unduly spent EU funds will be considered when setting 
up the control strategy (e.g. through the cost benefit analysis of on-site audits). 

Other ways to ensure the cost-effectiveness of controls include reducing the risk of errors through simplified 
rules and/or processes (such as simplified cost options, i.e. lump sums, flat rates and unit costs), cross-
reliance on existing assessments and/or audits and controls performed by other entities and achieving 
economies of scale by pooling the control functions. 

In order to measure the cost-effectiveness of its controls, the Commission uses the following indicators. 

• 

• 

• 

Effectiveness. The level of error found based on the controls 
carried out, which allows the expenditure to be grouped into 
different risk categories. 

Efficiency. The average time taken to make a payment. 
Beyond this, the Commission is also constantly looking for 
and developing new ways to increase efficiency, notably 
by creating synergies wherever possible. 

Economy. The proportionality between the costs of 
controls and the funds managed. 

58 

 
 
 
Annex

2

 Internal control and financial management 

2.1. 

well protected 

2.1.1.  Overall results for 2022 

Based on the audits and controls carried out, each year the Commission departments estimate the level of 
risk to the legality and regularity of EU spending at two stages of the multiannual control cycle: at payment 
and at the closure of the programmes. It allows the Commission to take further action to further reduce error 
rates. 

For 2022
both being below the materiality threshold of 2%. 

1, with 

Risk at payment: 1.9% (2021
Risk at closure: 0.9% (2021
Total preventive and corrective measures implemented by the Commission and the Member States: 
EUR

billion (2021

billion)  

 0.8%) 

 1.9%) 

 EUR

4.9

5.2

Reservations: 15 reservations with a total financial impact of EUR
(2021

 16, with a total financial impact of EUR

million) 

987

877

million. 

The risk at payment is an estimate of the errors that could not be 
prevented despite ex ante controls and that affect the payments 
made. These errors are detected through ex post controls and 
audits  (

). The risk at closure is an estimate of the errors that will 

50

controls and corrections have been made. It is equal to the risk at 
payment minus a conservative estimate of the future corrections, 
which will take place between the reporting year and the end of the 

ex post 

The Commission considers that the budget is effectively protected 
when, by the closure of the programmes at the latest
controls, corrections, recoveries, etc. have been implemented
 the 
risk at closure is below 2%. This is the same materiality threshold 
used by the European Court of Auditors. For more details on these 
concepts and the methodology used to determine these estimates, 
along with the control results for each policy area, see Annex

 i.e. when all 

5. 

50
(

)  For shared management, this also includes errors detected but not corrected by the Member States before the 

payment by the Commission. 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

The Annual Management and Performance Report for the EU Budget is a summary of the 51 annual activity 
reports. The spending covered in each of these reports is allocated in its entirety to one of the seven 
multiannual financial framework headings. Similarly to what has been reported in 2021, the spending for 

DG Defence Industry and Space, considering the importance of this expenditure, has 
been isolated from the other expenditure and brought under the relevant heading. For comparison purposes, 
the risk at payment and risk at closure for 2020 have been recalculated on the basis of this new structure. 
The situation for each policy area is described below. 

2.1.2.  Control results per lower-, medium- and higher-risk programme 

segments 

/ segments of expenditure are higher risk, allowing it to focus 

The Commission identifies which programmes
its action where it matters most. Given its in-depth empirical approach, the Commission has reliable data 
 before 
showing the diversified situation of managed funds (see chart below). Based on the risk at payment
 the Commission can divide the annual expenditure precisely into lower 
any future correction is implemented
risk at payment (where the risk is below 2.0%), medium risk at payment (between 2.0% and 2.5%) and higher 
risk at payment (above 2.5%). For natural resources and cohesion, this analysis is also applied at the level of 
individual paying agencies and programmes in the Member States. This allows the Commission to identify 
which programmes/segments of expenditure are higher risk and to efficiently provide its support and address 
specific weaknesses even for policies that, taken globally, are lower risk, such as the common agricultural 
policy. 

The European Commission categorisation of expenditure into higher-; medium- and lower-risk segments, as percentages of the total of relevant 
expenditure for 2022  
Source: European Commission. 

-, medium- and higher-risk categories as follows. 

107

billion in 2022 (63.1% of expenditure in 2022 

Lower risk. This segment amounted to EUR
compared to 55.1% of expenditure last year). More specifically, this lower-risk category includes: the 
expenditure managed by paying agencies under the common agricultural policy (51 out of 66 in 
direct payments and 34 out of 74 in rural development), along with 21 out of 25 operational 
programmes for the European Maritime and Fisheries Fund and 151 out of 448 programmes under 
cohesion policy funds with a lower risk at payment; expenditure relating to the Connecting Europe 
Facility Transport; contributions to agencies (the European Union Agency for the Space Programme, 

• 

60 

 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

-Curie actions; European Research Council 
grants; Erasmus+; the main part of the Emergency Support Instrument; the Asylum, Migration and 
Integration Fund; the Internal Security Fund; humanitarian aid and civil protection; expenditure to 
entities entrusted with the implementation of EU funds or budgetary guarantees which have passed 
a pillar assessment (or, exceptionally, to EU decentralised agencies which may be exempted from 
passing a pillar assessment); and administrative expenditure. 

•  Medium risk. This amounted to EUR

20.2

billion in 2022 (12.0% of expenditure compared to 22.6% 

in 2021). This includes: the expenditure of some paying agencies under the common agricultural 
policy (6 in direct payments and 8 in rural development) and 2 operational programmes for the 
European Maritime and Fisheries Fund and 169 out of 448 programmes under cohesion policy funds 
with a medium risk at payment; grants in programmes in development aid and neighbourhood 
programmes; and expenditure relating to the Connecting Europe Facility Energy.  

•  Higher risk. This amounted to EUR

42.2

billion in 2022 (24.9% of expenditure, similar to 2021 

(22.3%)). This also includes the expenditure of 9 out of 66 paying agencies in direct payments, or 32 
out of 74 in rural development under the common agricultural policy; 128 out of 448 programmes 
); and 
under cohesion policy funds with a higher risk at payment or with serious deficiencies
expenditure from the European Maritime and Fisheries Fund (2 programmes). Although efforts in the 
simplification of the rules have been introduced in Horizon 2020, this segment of expenditure 
presented a level of risk in 2022 similar to the years before 2021. 

51
)
(

52
(

detailed analysis confirms that the level of error is closely related to the nature of the 

relevant expenditure, have relatively lower risk at payment because they encompass more entitlement-based 
payments. On the other hand, some programmes or segments of expenditure where rather complex 
reimbursement-based schemes are used appear with relatively higher risk at payment (as it is typically the 
case under cohesion policy, with many applicable national, regional or programme rules in addition to EU 
rules). Nevertheless, the control systems in place allow the risks related to some of the more complex 
programmes to be mitigated and, as a result, the level of risk at payment to be reduced. 

The Commission is closely monitoring the risk at payment and risk at closure for the different programmes
/ 
segments of expenditure and is taking further action to reduce error rates. For the medium- and higher-risk 
categories in particular, the Commission will continue to work towards a further decrease in the error rates by 

necessary, applying the lessons learned to future programmes and simplifying rules wherever possible. 

51
(

52
(

)  In the case of the European Regional Development Fund, the Cohesion Fund and the European Maritime and Fisheries 

Fund, the level of risk has also been considered high, irrespective of the risk at payment, when the audit opinion 
issued in the annual activity reports on the functioning of the management and control system of the programmes 
was either adverse or qualified. 

)  There are 441 programmes under cohesion policy funds, out of which seven have two different segments of risks, 

which result in the number of 448. 

61 

 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

2.1.3.  Control results by policy areas 

Heading 1

 Single market, innovation and digital 

17.3

 EUR

billion (2021

20.4
 1.3%) 

Total relevant expenditure: EUR
Risk at payment: 1.5% (2021
Risk at closure: 1.1% (2021
Total preventive and corrective measures: EUR
* Preventive measures: EUR
million (2021
* Corrective measures: EUR
Reservations: 2 reputational reservations without financial impact. 

million (2021
million) 

million (2021

171
 EUR

144
27

million) 

 1%) 

 EUR

142

20

billion) 

 EUR

162

million) 

In 2022, the risks at payment (1.5%) and at closure (1.1%) 
increased in comparison to 2021. This is due to the increase of 
the risk at payment for the Horizon 2020 programme, which 
corresponds to the main payments in 2022. 

As in previous years, the research departments have not qualified 
their declarations of assurance with any reservations in relation 
53
). The higher risk of Horizon 
(
to the Horizon 2020 programme
2020 is inherent in this type of expenditure, where payments are 
still largely based on the reimbursement of actual eligible costs 
and where the rules of reimbursement, as per the related legal 
bases, remain complex. To decrease the risk of Horizon 2020, the 
Commission defined actions aimed at significantly simplifying 
the rules, focused communication campaigns and enhanced 
training for external audit firms performing audits on behalf of 
the Commission. These actions should pave the way for a 
significant reduction of the error rate in Horizon Europe.  

For Horizon Europe, the late adoption of the Horizon Europe 
regulation, compared to the initial plan, delayed the start of the 
implementation of the programme. Due to the late 
implementation of the programme, the amounts of payments are 
very low and ex post controls have not started yet. As a 
consequence, a conservative estimate for the risk at payment, 
set at 2%, has been used.  

53
(

)  This is because the risk at payment minus corrections implemented remains within the agreed materiality threshold 

of 2% and 5% envisaged in 

under Horizon 2020, a risk of error, on an annual basis, within a range between 2 5% is a realistic objective taking 
into account the costs of controls, the simplification measures proposed to reduce the complexity of rules and the 
related inherent risk associated to the reimbursement of costs of the research project. The ultimate aim for the 
residual level of error at the closure of the programmes after the financial impact of all audits, correction and 
recovery measures will have been taken into a
lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A52011PC0811). 

https://eur-

pending 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

54
(

). For 2022, two reputational 

Regarding the other programmes, a small number of segments have a residual error rate above 2%. However, 
this has no impact on the assurance due to the minor financial impact
reservations were issued by the European Innovation Council and SMEs Executive Agency and DG Research 
and Innovation regarding the insufficiently defined and implemented governance framework related to the 
European Innovation Council programme and other internal control weaknesses. For both reservations, action 
plans have been put in place by the responsible departments which will be implemented by the end of 2023 
at the latest. These actions include, amongst others: the signing of a memorandum of understanding that sets 
out responsibilities and supervision between the European Innovation Council and SMEs Executive Agency and 
DG Research and Innovation; the revision of the delegation instrument clarifying tasks and roles; and the 
assessment of the internal control components to support the update of the anti-fraud and control strategies. 
Finally, the 2021 reservations related to Connecting Europe Facility (covering energy and telecommunications) 
have been lifted by the European Climate, Infrastructure and Environment Executive Agency and the new 
European Health and Digital Executive Agency.  

Heading 2

 Cohesion, resilience and values 

 EUR

175.8

 1.2%) 

billion) 

billion (2021

67.5
 2.3%) 

Total relevant expenditure: EUR
Risk at payment: 2.6% (2021
Risk at closure: 1.3% (2021
Total preventive and corrective measures Member States & Commission: EUR
EUR
* Preventive measures: EUR
* Corrective measures: EUR
Reservations: 4 reservations with financial impact. EUR

billion (2021
million (2021

 EUR
 EUR

2.7
769

2.3
789

million) 

million 

billion) 

billion) 

310

3.5

3.1

billion (2021

Under this heading, the risk at payment at 2.6% increased compared to 2021 (2.3%). Under this heading, the 
risk at payment and risk at closure are mostly related to the level observed for cohesion policy funds
given the volume of relevant expenditure: around 94% of the total managed under the shared management 
mode. The European Regional Development Fund and the Cohesion Fund show a stable lower value of the 
range presented for the risk at payment
) and an increase in its upper value, from a range of 1.9% to 2.5% 
in 2021 to a range of 1.9% to 2.7% in 2022. For the European Social Fund, the range for the risk at payment 
in 2022, 1.9% to 2.8%, represents a slight increase from the range in 2021 (1.7% to 2.5%)

55
(

57
(

56
(

).  

), 

For all cohesion policy funds, despite continuous efforts and improvements in the functioning of the control 
systems, the risk at payment remains material. It is estimated to be in the range of 1.9% to 2.7%

), higher 

58
(

54
(

55
(

56
(

57
(

58
(

)  As of 2019, a de minimis threshold for financial reservations was introduced. Quantified annual activity report 

reservations relating to residual error rates above the 2% materiality threshold are deemed not to be substantial for 

 payments and with a financial impact below EUR

5

million. In 

such cases, quantified reservations are no longer needed. 

)  The European Regional Development Fund, Cohesion Fund, European Social Fund, Youth Employment Initiative and 

Fund for European Aid to the Most Deprived. 

)  This range contains a conservative assessment of the error rates reported by programme authorities based on all 

audit results available (including under contradictory procedure for Commission or European Court of Auditors audits 
or flat rates, if needed), along with possible additional risks taken into account for the upper value (including based 
on experience from past audits or the fact that not all programmes can be audited every year and over time, based 
on flat rates). The upper value of the range is therefore considered a worst-case scenario that, in many instances, 
is not confirmed when further audit work is carried out.  

)  This increase reflects the consideration of preliminary findings reported by the European Court of Auditors, pending 

contradictory procedure. 

)  This is within the error-level range of between 2.1% and 6.1% estimated by the European Court of Auditors in its 

2021 annual reports on the implementation of the EU budget for the 2021 financial year and on the activities funded 

63 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

than in 2021 (1.8% to 2.5%). The estimated future corrections are the amounts necessary to reduce the error 
rate of each programme that is above 2% to at least 2%. In total, they correspond to a range of 0.5% to 
1.4%, leading to a risk at closure of 1.3%. 

In relation to the 2014-2020 programming period, Member 
States implemented preventive measures for an amount of 
EUR
EUR

million and corrective measures for an amount of 

million. The latter amount is attributed on the one 
million) 

2
656

518

297

investigations of the European Anti-Fraud Office and audits of 

-ups to 

138

million). This is overall 
in line with the amounts implemented in previous years. The 
corrective measures implemented show an increasing trend 
which is consistent with the mature stage of the 2014-2020 
programming period implementation. In addition, for the 2007-
2013 and previous programming periods, the Commission 
implemented corrective measures for an amount of 
EUR

million. 

130

2022 was the second year of the new multiannual financial 
framework. However, the common provisions regulation for 
cohesion policy funds for 2021-2027 was adopted in June 
2021 and, for 2022, no payments other than pre-financing 
took place. One specific feature of the 2021-2027 period is 
the need for Member States to comply with a set of thematic 
and horizontal enabling conditions to allow for the effective 
implementation of the funds during the period. To date, 22% 
of the allocation for jobs and growth
reimbursed due to unfulfilled thematic enabling conditions. 

) has not yet been 

59
(

Despite the continuous efforts and improvements in the functioning of the control systems, the risk at 
payment for cohesion remains above the 2% materiality threshold. This is mainly due to the inherent 
complexity of the projects financed by these funds, the multiplicity of actors concerned and the difficulty of 
tackling some complex rules, notably relating to national rules added to European Union rules, public 
procurement or State aid. Weaknesses remain mainly at the level of managing authorities or their 
intermediate bodies, despite the improved situation over the years as a result of the continuous efforts by 

are similar to those identified by the Court of Auditors: ineligible expenditure, public procurement errors and 
the absence of essential supporting documents. This shows that most programme audit authorities 
appropriately, but not always entirely, detect the various types of irregularities contributing to the risk at 
payment

). There are inherent risks of error due to complex projects and rules. In some cases, the 

60
(

by the 8th, 9th, 10th and 11th European Development Funds (EDFs) for the 2021 financial year (p.
level of error estimated by the Court can sometimes be explained by divergences in the interpretation of national 
rules and in the method used to determine the amount of error, and by the fact that there is no legal basis that 
would allow financial corrections to be applied. 

165). The higher 

)  For 152 European Regional Development Fund, Cohesion Fund or European Social Fund Plus programmes in 22 

59
(

Member States in total.  

work of the 

60
(

) 

64 

 Root causes of the weaknesses in the 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

weaknesses detected are systemic, and with the remedial actions requested by the Commission and put in 
place the situation of the relevant (parts of) systems usually becomes satisfactory again. Unless such 
improvements are put in place, the Commissions stops making payments to the relevant (parts of) 
programmes, to protect the EU budget. In addition, errors or weaknesses found in one programme do not 
mean that similar errors or weaknesses are present everywhere in the Member State concerned (and even 
less in programmes of other Member States)
results, a nuanced and differentiated picture by programme and by authority is obtained. This allows the 
Commission to conclude that most programmes function well or sufficiently well
), and that a limited 
number of programmes present systemic and recurrent deficiencies over years, on which the Commission 
then focuses its actions. In the latter category of programmes, these are transparently reported in the 
reservations issued in the respective annual activity reports. 

61
(

In relation to previous accounting years of the 2014-2020 programming period, after the finalisation of strict 
contradictory procedures, additional financial corrections have been implemented by the Member States. This 
has led to a risk at closure of under 2% for each of the last accounting years and confirms the corrective 
capacity for cohesion policy funds. The risk at closure will continue to drop until the closure and the final 
assessment of the legality and regularity of the underlying expenditure of all programmes, once follow-ups to 
all audit results will be completed. 

At the end of 2022, four reservations were issued in relation to cohesion policy funds. 

• 

• 

• 

Two reservations for the 2014-2020 period that include all the operational programmes that, during 
the year, presented significant weaknesses in their management and control systems or for which 
the error rate was above the materiality threshold, or, less frequently, for which the audit work at 
the Member State level was deemed insufficient or unsatisfactory. 

423

million to EUR

The number of programmes under reservation for the 2014-2020 period (81) is higher than the 
number of programmes under reservation in 2021 (68). This is mainly due to systemic deficiencies 
considered for several programmes. The financial impact has nevertheless decreased from 
EUR
the fact that many of the operational programmes in question have low levels of relevant 
expenditure in 2022. Reservations are only lifted once sufficient corrective measures have been 
years for a 
taken. Usually, the reasons for the reservations are not structural, and it takes 1 to 2
reservation to be lifted. For more details on reservations, see Volume

million, which is in line with the decrease in relevant expenditure and 

III, Annex

310

5. 

Two reservations for the 2007-2013 period, in relation to seven programmes that are still not 
closed. The reservations are not quantified because no payments were made in 2022. 

The Commission continues to take action to support programme authorities in improving their management 
and control systems and to bring the risk at closure for cohesion below 2%. In 2022, the Commission, in close 
collaboration with the Member States, took various types of actions to further improve the effectiveness of 
the management and control systems and to boost the prevention, detection and correction of errors, 
including the following. 

• 

Continuous monitoring, analysis and addressing of the root causes of errors that remained 
undetected at the Member State level. 

Notwithstanding the identified shortcomings in the implementation and control of EU expenditure, overall, the work 

61
(

)  88% of programmes both under the European Regional Development Fund and the Cohesion Fund and of 

programmes under the European Social Fund, the Youth Employment Initiative and the Fund for European Aid to the 
Most Deprived. 

65 

 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

• 

• 

• 

Capacity-
and audit authorities and better equip them to deal with the most complex parts of fund 
implementation. This includes, for instance, the provision, free of charge, of the ARACHNE data 
mining tool to help detect irregularities, fraud and possible conflicts of interest, along with the 
professionalisation of procurers. 

Providing online guidance, examples of good practice and explanations and promoting peer-to-peer 
exchanges to support contracting and programme authorities. 

Promoting simplified cost options, which are less error-prone, by providing assistance and support to 
national authorities to prepare and assess the simplified cost options schemes for 2021-2027 
programmes. The Commission has worked relentlessly on designing and implementing appropriate 
processes to support these new features, including measures to enhance the uptake of simplified 
cost options and financing not linked to costs schemes, more proportionate control and audits, more 
compliance-based reporting and enhanced flexibility to adapt programmes to new socioeconomic 
and territorial contexts. 

Heading 3

 Natural resources and environment 

56.5

57.7

 EUR

 1.8%) 

 0.3%) 

billion (2021

Total amount of relevant expenditure: EUR
Risk at payment: 1.7% (2021
Risk at closure: 0.4% (2021
Total preventive and corrective measures Commission and Member States: EUR
EUR
* Preventive measures: EUR
* Corrective measures: EUR
Reservations: 5 reservations, financial impact EUR

million (2021
million (2021

million) 
million) 

 EUR
 EUR

551
877

561
956

million. 

billion) 

556

1.4

billion) 

1.5

billion (2021 

, the risk at payment remains below the materiality threshold of 2%, 

For 
rounded at 1.7%, and in fact slightly decreased compared to 2021 (1.74% from 1.82%). The estimated future 
corrections have also slightly decreased to 1.4% of 2022 expenditure (1.5% in 2021), keeping the risk at 
closure
) stable compared to 2021. This also corresponds to the control results for expenditure for 
agriculture, which represents the bulk of the expenditure in this policy area (98%), the rest being dedicated to 
maritime and fisheries

), environment and climate expenditure. 

63
(

62
(

corrective measures amounted to EUR
956
implemented by the Commission and EUR
implemented by the Commission (EUR
220
the bulk, EUR

557

million, being the result of Member 

 controls. 

-protected by both the Commission and the Member States. In 2022, 
million was net financial corrections 

615

million, of which EUR
341
million). Preventive measures amounted to EUR

million was based on the Member 

561

million, with 

 controls but partially 

62
(

)  As there is no closure for the European Agricultural Guarantee Fund measures, in the area of agricultural expenditure 

the risk at closure is replaced by the final amount at risk. 

the same delivery mechanism as cohesion expenditure. 

63
(

) 

66 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

For the common agricultural policy, the risk at payment 
continued the downward trend observed over the past several 
years. The risk at payment for direct payments under the 
European Agricultural Guarantee Fund, which account for 67% 
of payments, further declined to 1.3% from 1.4% in 2021. For 
rural development and market measures, the risk at payment 
remains above the materiality threshold due to complex 
eligibility rules. For rural development, it remained rather stable 
at 2.7% compared to 2021 (2.8%), while for market measures it 
increased from 2.1% in 2021 to 2.9% in 2022. The increase is 
partially explained by the fact that for those measures for which 
there was neither statistical nor audit information available, an 
assessment was made of the maximum amount of the 
expenditure that might be at risk. For 2022, this was necessary 
in respect of around 19% of the expenditure for the market 
measures, corresponding mainly to the exceptional adjustment 
aid that was adopted under Regulation (EU) 2022/467 following 

February 2022. In addition, 
improvements to the management and control systems in the 
Member States are continuous and the Commission actively 
supports Member States in their transition to digital-based 
governance systems, using automation and artificial intelligence 
solutions. Notably, the integrated administration and control 
system secondary legislation adopted in 2022 emphasises the 
mandatory use of technological tools based on earth 

observation (e.g. Copernicus satellite imagery) and geotagged photos. The integrated administration and 
control system, including its elements (area monitoring system, geo-spatial aid application system and land 
parcels identification system), when implemented in accordance with applicable rules and guidelines, 
effectively limits the risk of irregular expenditure.  

Expenditures relating to fisheries and the environment and climate initiatives continue to be inherently low 
risk. The risk at payment for the European Maritime and Fisheries Fund increased slightly from 1.03% in 2021 
to 1.38% in 2022 mainly due to one programme under reservation for which corresponding financial 
corrections and safeguard measures are being implemented. 

At the end of 2022, there were five recurrent reservations for segments of expenditure or programmes where 
control weaknesses and/or error rates above 2% had been identified. 

• 

Three reservations for agriculture, on European Agricultural Guarantee Fund market 
measures (affecting three Member States), direct payments (affecting 14 paying agencies in 11 
Member States) and European Agricultural Fund for Rural Development measures (affecting 
29 paying agencies in 15 Member States and the United Kingdom that (temporarily) experienced 
control weaknesses and/or high error rates). 

•  One reservation for control weaknesses in one Member State in relation to the European Maritime 

and Fisheries Fund. 

•  One non-quantified reservation for the EU emissions trading system registry. 

In all cases where the deficiencies identified have led to reservations, close follow-ups are in place: 
conformity clearance procedures to ultimately protect the EU budget, monitoring of the implementation of 
remedial actions taken by Member States and, where necessary, interruption or reduction/suspension of 
payments to the Member States. This systematic and precisely targeted approach ultimately enables the 
protection of the EU budget (for more details, see Volume

III, Annex

5). 

67 

 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Heading 4

 Migration and border management 

billion (2021

 EUR

2.5

billion) 

2.5

 1.9%) 

Total amount of relevant expenditure: EUR
Risk at payment: 1.4% (2021
Risk at closure: 1.3% (2021
Total corrective and preventive measures: EUR
8
* Preventive measures: EUR
 EUR
 EUR
* Corrective measures: EUR
Reservations: 2 reservations; financial impact EUR

million (2021
million (2021

 1.3%) 

5
3

million (2021
million) 
million) 
million 

8
9
9

 EUR

17

million) 

64

), the risk at payment 

For  Migration and border management   (
(1.4%) decreased compared to 2021 (1.9%) and the risk at 
closure (1.3%) was stable. Both remaining below 2%. In 2022, 
the amount of preventive and corrective measures was lower at 
EUR  8.3  million
million 
corrective. The decrease is mainly explained by the fact that in 
2021 there were still corrections related to the funds for the 
of the 2007-

million preventive and EUR

 EUR

5.5

2.8

2013 programming period. 

This policy area consists mostly of low-risk segments of 
expenditure. Contributions to decentralised agencies and 
delegation agreements represented 50% of the relevant 
expenditure for 2022, with an error rate at 0.5%, while shared 
management and the implementation of the Internal Security 
Fund and the Asylum, Migration and Integration Fund represent 
38% of the relevant expenditure, with a risk at payment of 1.1%. 
For the latter, reservations are issued when, at the Member 
State level, the residual error rate is above 2% or serious 
deficiencies in management and control systems have been 
identified. The higher-risk expenditure segment consists of EU 
actions and emergency assistance grants under direct 
management to support Member States in the fields of 
migration and border management, with an error rate at 6.8%. 
In 2022, the share of this segment in the total relevant 
expenditure has decreased to 10.6% from 13.8% in 2021.  

At the end of 2022, two reservations were issued. 

•  One reservation concerning the Asylum, Migration and Integration Fund and the Internal Security 
Fund (2014-2020 programming period), quantified for one Member State and Iceland and non-
quantified for five Member States.  

•  One reservation for the EU initiatives and emergency assistance grants. The Commission continues 
in its endeavours to apply measures for reducing errors. The implementation rules for grants under 
direct management have been greatly simplified while action has been taken to streamline and 
harmonise procedures regarding monitoring and final payment. For the 2021-2027 generation of 
grants, DG Migration and Home Affairs is applying to a large extent decisions on unit costs 
concerning volunteers, travel, subsistence and accommodation. In addition, for the recently awarded 
emergency assistance, the use of financing not linked to costs minimised the administrative burden 
for beneficiaries and simplified the implementation of these projects. 

64
(

)  Heading

4 also includes the Internal Security Fund of heading

5, since all Home Affairs Funds are audited and 

controlled on the basis of management mode and expenditure and risk cannot be split between the budget headings. 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading 5

 Security and defence 

Annex

2

 Internal control and financial management 

Total amount of relevant expenditure: EUR
Risk at payment: 0.5% (2021
Risk at closure: 0.5% (2021
Total preventive measures: EUR
Reservations: None (2021

 0.5%) 
3
 none) 

 0.5%) 

million (2021

 EUR

0) 

30.1

million (2021

 EUR

13.8

million) 

4.3

30.1

million corresponds to EUR

million in contribution to the Organisation for Joint 

For 
closure, which are both at 0.5%, are very low, and well below 
2%. This is because the types of payments for this activity are 
very low risk, mostly payments to agencies. The relevant 
expenditure of EUR
18.7
in contribution to the European Defence Agency, and to 
EUR
Armament Cooperation, whereas EUR
expenditures managed directly by the Commission through 
procurements and grants. All these activities have a low risk at 
payment, of 0.5%. To achieve its objective, the Commission 
largely relies on entrusted entities and regulatory agencies, and 
on close cooperation with various partners and international 
organisations. 

million corresponds to 

million 

7.2

Heading 6

 Neighbourhood and the world 

13.6

 1.1%) 

billion (2021

Total amount of relevant expenditure: EUR
Risk at payment: 1.1% (2021
Risk at closure: 1.0% (2021
Total corrective and preventive measures: EUR
* Preventive measures: EUR
million (2021
* Corrective measures: EUR
Reservations: 1 reservation without financial impact (1 in 2021 with slightly different scope). 

million (2021
million) 

million (2021

141
 EUR

125
16

million) 

million) 

billion) 

 0.9%) 

 EUR

 EUR

 EUR

12.7

131

110

21

69 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

, both the risk at 
In 2022, for 
payment (1.1%) and the risk at closure (1.0%) are similar to 
2021 
preventive and corrective measures amounted to 
million preventive and 
125
EUR
EUR

million corrective, which is also similar to 2021. 

141
16

million

 EUR

Notwithstanding the low level of error rate in most of the 
expenditure segments, the Commission continues to take 
measures to further improve its financial management, given 
the complex operational environment characterised by 
unpredictability, volatility and insecurity and where some 
programmes may also be governed by complex funding 
modalities. This includes measures to simplify and clarify 
procedures and contractual conditions for grants, to enhance 
cooperation with international organisations, to clarify and 
promote the use of results-based funding and to reinforce the 
Terms of Reference for expenditure verifications

65
(

).  

In 2022 the completion of additional ex ante checks on 

66
)
(

 continued and at the end of 

also called pillar assessments
2022 very few still had to be finalised. New contribution 
agreements cannot be concluded before the complementary 
pillar assessments are finalised and few Financial Framework 
Partnership Agreements are still being negotiated. When 
needed, mitigating measures were put in place to minimise the 
impact on the implementation of indirect management 
interventions. 

The efforts made in 2021and previous years by DG Neighbourhood and Enlargement Negotiations, to address 
the causes of errors for grants under direct management continued to have a positive impact in 2022. In 
particular, awareness of the (new) grantees on the most frequent sources of errors in grant management has 
been increased with information sessions to explain their contractual obligations and provide clear 
information on the related requirements. Additional guidance on checking the occurrence of such errors has 
been provided to the relevant staff. Detailed analyses of the types of errors have been shared with all 
authorising officers by delegation to monitor and enhance the controls on the implementation of grants. 

At the end of 2022, there was one reservation, non-quantified, under this heading. In 2022, DG 
Neighbourhood and Enlargement Negotiations  reservation concerning projects in Libya and Syria was 
extended to include Ukraine, which represents a significant share of the 
these countries, the delegations cannot implement standard monitoring and evaluation activities. It is 
impossible to send staff to conduct on-site project visits or other similar verifications due to security and 
political constraints. Several measures have been put in place, such as remote monitoring, contracts with 
independent experts to monitor projects in the field, a risk-based review of the contract portfolio and cross-
checking of information from different sources. This has improved the understanding of local dynamics and 
reduced reaction time to address a very unstable and erratic environment. However, the countries remain 
active conflict zones and the reservation is justified. 

 expenditure in 2022. In 

65
(
66
(

)  For more information, please see the annual activity report of DG International Partnerships, p.
)  This is required by Regulation (EU, Euratom) 2018/1046, the financial regulation. 

34. 

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading 7

 European public administration 

Annex

2

 Internal control and financial management 

7.7

 0.5%) 

Total amount of relevant expenditure: EUR
Risk at payment: 0.5% (2021
Risk at closure: 0.5% (2021
Total corrective and preventive measures: EUR
* Preventive measures: EUR
* Corrective measures: EUR
Reservations: no reservations (1 in 2021) 

million (2021

million (2021

3
0.6

 0.5%) 

billion (2021

 EUR

7

billion) 

3.6
 EUR

million (2021
4
million) 
 0 
 EUR

million)  

 EUR

4

million)  

This heading groups together the services and departments 

the direct management mode, such as the Office for the 
Administration and Payment of Individual Entitlements, which 
represents approximately 80% of the relevant expenditure of 
this heading. The risk at payment is prudently set at 0.5% for 
this low-risk type of expenditure. As most of the corresponding 
control systems involve predominantly ex ante controls, the 
estimated future corrections are often set at a conservative 
0.0%. Thus, the risk at closure is equal to the risk at payment 
and remains very low at 0.5%. 
preventive measures amounted to EUR
4
than in 2021 (EUR

million, slightly less 

million). 

3

From the revenue side, in 2022 there were significant positive 
developments. The reservation resulting from the loss of 
traditional own resources due to undervalued imports of textiles 
and shoes imported from China into the United Kingdom 
between November 2011 and October 2017 has been lifted. 
Based on the European Court of Justice judgment delivered in 
March 2022
), the Commission quantified the final amount 
due by the United Kingdom. The amount has been paid 
(including interest), while 26 Member States, where similar 
shortcomings where identified, have made significant 
provisional payments. The Commission will recalculate

) the 

68
(

67
(

final amounts due by Member States, which will lead to lower amounts ultimately due to the EU budget than 
those paid by Member States under reservation. The overpaid amounts will be returned.  

67
(

68
(

)  A European Anti-Fraud Office investigation report and several traditional own resources inspections by DG Budget on 
the undervaluation of textiles and footwear imported in the United Kingdom concluded that the United Kingdom had 
failed, even after repeated warnings and requests to that effect by the Commission services and the European Anti-
Fraud Office, to apply the appropriate measures to prevent systematically undervalued imports of textiles and 
footwear from China from entering the EU through the United Kingdom. As from October 2017, the United Kingdom 
gradually implemented the measures requested by the Commission. As the United Kingdom refused to make 
available the traditional own resources lost in this regard, the Commission referred the case to the Court of Justice of 
the European Union on 7
March 2022, confirming 
March 2019 (case C-213/19). The Court delivered its judgment on 8
the position of the Commission. 

)  In line with the Court of Justice judgment and based on the United Kingdom case methodology. 

71 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

2.1.4.  Efficiency measures have been taken 

The Commission is continuously striving to improve the efficiency of its operations in order to deliver on its 
objectives under tight budgetary constraints and to achieve the objectives set in its digital agenda. Processes 
are being streamlined to ensure the most efficient use of limited resources. 

Against a backdrop of unprecedented challenges, the Commission s digital transformation is moving forwards 
by continuing the development of more efficient corporate information technology tools with a view to 
increasing the potential efficiency in its business processes and offering increasing data management and 
reporting capabilities. 

 financial business processes. By replacing the current central 

 next-generation corporate financial system. The system will modernise, 

SUMMA is the 
harmonise and standardise 
accounting, budgetary and treasury system, SUMMA will contribute to the rationalisation and 
modernisation of the EU administration and to a sound Commission corporate information technology 
landscape, in line with the 
flexibility with integrated real-time analytics, and decreasing cost of ownership and future 
maintenance costs. 

, offering a significant increase in business efficiency, 

Since January 2022, SUMMA has been used by three pilot agencies as their new financial system, in 
line with the programme timeline. The system was also rolled out to an additional pilot entity at the 
end of 2022, also incorporating the integration of the eGrants suite and the functionalities needed for 
the management of grants. The development of the system for the Commission has progressed in line 
with the objective of going live at beginning of 2024. When fully implemented, the system will serve a 
community of over 13
manage an annual budget of over EUR
2

000 users, used by all Commission DGs and around 50 other EU entities, 

000 contracts and process over 

million payments per year. 

billion, support some 295

150

Regarding eProcurement, the Commission continued to be closely involved in the ongoing 
developments for building a corporate eProcurement solution which will be integrated into SUMMA.  

As far as indirect management mode is concerned, in 2022 DG Budget and DG Informatics also 
developed the pillar assessment automated workflow with the aim of automating the pillar 
assessment process of entities working under indirect management with the Commission. The new 
corporate information technology tool was launched in December 2022 in the form of an online 
repository which provides up-to-date information on pillar-assessed entities. 

In terms of internal control systems, the Commission is also currently developing a corporate web-
based central register for internal control systems. This application focuses on the digitalisation and 
centralisation of internal control related information in line with the current Comm
. 
It will provide responsible authorising officers with a central tool for registering, monitoring and 
reporting on risks, exceptions, non-compliance events and other components of the 
Internal Control Framework. Furthermore, it will provide an aggregated overview of the strengths and 
weaknesses of its internal control systems. In due time, the central register for internal control 
systems will become an essential tool for improving and providing guidance, reporting and decision-
making and for continuous enhancement of internal control. This risk register module was rolled out in 
2022, while the remaining four modules are planned to be rolled out in 2023. 

72 

 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

In addition, the Commission is moving towards a paperless administration. In this context, the Commission is 
currently working on the extension of the use of electronic signatures, including qualified electronic 
signatures. While a full integration of elec
information technology systems cannot be guaranteed, the Commission already provides web-based qualified 
electronic signatures to authorising officers by delegation and will expand the use of qualified electronic 
signatures to every system/process identified as able to benefit from their use. 

In 2022, 98% of payments (in terms of amounts) 
were made within the legal payment deadline (see 
graph), despite the fact that the working 
environment was still strongly impacted by the 
various crisis, and thanks to the abovementioned 
initiatives. This is of paramount importance, as 
many beneficiaries rely on these payments to carry 
out their activities and projects, which, in turn, 
contribute to the Commissio

2.1.5.  The costs of controls are proportionate to the associated risks 

In 2022, following the combined assessment of their effectiveness, efficiency and economy, all Commission 
departments reached a positive conclusion on the cost-effectiveness of their controls. The resources allocated 
to controls are aligned with the risks relating to the nature of the programmes and/or the context in which 
they are implemented. The cost of controls remains generally stable over time. Some departments reported a 
slight decrease in relative terms, which was due to an increased volume of payments in 2022 compared to 
the previous period of the COVID-19 crisis. The variety of spending programmes and their different features 
do not allow for a meaningful comparison of their control costs. However, some common cost drivers can be 
identified, as shown in the box below. 

Examples of common cost drivers 

• 

• 

• 

• 

The intrinsic complexity of the programmes managed. Grants based on the 
reimbursement of real costs imply labour-intensive controls as opposed to financing based 
on lump sums or simplified cost options or in the case of performance-based instruments.  

The complexity of the environment in which the programmes are implemented. 
The cost of controls is likely to be higher in the case of a multi-site organisational structure 
or when partners and/or beneficiaries are 

The volumes and amounts to be processed. A high number of low-value payments will 
generate higher control costs than recurrent mass payments, while the regulatory 
framework requires certain incompressible controls. This results in diseconomies of scale.  

The type of budget implementation mode. Under indirect and shared management 
mode, the cost of controls is shared between the Commission and its implementing partners, 
while for direct management mode the burden is entirely borne by the Commission. 

For the sake of transparency and completeness, those departments dealing with shared and/or indirect 
management have also reported on the cost of controls in Member States and entrusted entities separately 
from the 

73 

 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

3.  Management assurance 

As part of the governance system explained above, the overall management assurance is ensured through the 
assurance given by the Directors-General, the Internal Audit Service and the Audit Progress Committee. It is 
completed with the opinion of the European Court of Auditors and points on the 2021 discharge given by the 
budgetary authority and the follow-up of the discharge and external audit recommendations. 

3.1. 

Assessments, assurance and reservations declared by 
authorising officers 

69
(

), all 51 authorising officers by delegation

the information contained in their reports 

In their 2022 declarations of assurance
reasonable assurance that: (i)
reliable, complete and correct) of the state of affairs in their departments; (ii)
activities were used for their intended purpose and in accordance with the principle of sound financial 
management; and (iii)
legality and regularity of the underlying transactions, taking into account the multiannual character of some 
programmes and the nature of the payments concerned.  

the control procedures put in place give the necessary guarantees concerning the 

the resources assigned to their 

) declared they had 

70
(

Within the context of their overall assurance-building processes and from their management perspectives, the 
authorising officers by delegation also perform a more detailed analysis for each programme or segment of 
their portfolio. They use all available information, especially the results of their controls, to spot any potential 
significant weakness in quantitative or qualitative terms. At the end of each financial year, they determine 
whether the financial impact of such a weakness is likely to be above the materiality threshold of 2% and/or 
whether the reputational impact is significant. If so, they qualify their declaration of assurance with a 
reservation for the specific segment affected. 

For 2022, 10 authorising officers issued a qualified declaration of assurance, resulting in a total 
of 15 reservations as follows. Likewise in 2021, 10 authorising officers reported 16 reservations. 

• 

• 

• 

A total of 12 reservations have been maintained from previous years. These reservations have 
been maintained mainly because the root causes of the material level of error can be partially 

recurrent reservations concern programmes under shared management with weaknesses identified 
at the Member State, paying agencies or programmes levels that rarely persist for more than 1
year 
thanks to the remedial action plans in place.  

1.8

million, due to a material level of error. The other two are non-quantified reservations 

Three reservations are new but only one is quantified, albeit with a limited financial impact of 
EUR
related to the investment component of the European Innovation Council accelerator scheme and 
have been issued by both the parent DG and the executive agency, covering all aspects of the 
weakness found in the governance and internal control system of the two entities. The action plan 
to address these weaknesses is being implemented. 

Four reservations issued in 2021 were lifted in 2022. In three cases, the underlying issues 
have been resolved, while in one case the weakness is no longer considered substantial (application 
of the de minimis rule). 

69
(
70
(

)  Annual activity reports. 
) 

executive agencies, offices, services and task forces. 

-General of Commission departments and heads of 

74 

 
 
 
 
 
 
 
 
 
 
Annex

2

 Internal control and financial management 

• 

Six reservations were not issued by virtue of the de minimis rule, whereby reservations are not 
considered meaningful where limited expenditure is involved (less than 5% of the payments of the 
DG or service) and the resulting financial impact is low (less than EUR
million). The total financial 
impact of these cases is very limited at EUR

million

71
(

4.8

). 

5

987

million in 2021. This decrease is linked to the lower level of expenditure in the policy area of 

The total financial impact of all reservations is EUR
EUR
cohesion, resilience and values and the fact that the programmes under reservation have lower relevant 
expenditure (for details, see Section

million for 2022, i.e. 11% lower than the 

2.1.3). 

877

5 in Volume

Annex
and details. 

III provides a complete list of the reservations for 2022, along with further explanations 

3.2.  Work of the Internal Audit Service and overall opinion 

The Commission DGs and services also base their assurance on the work done by the Internal Audit Service. 
The Internal Audit Service audits the management and control systems within the Commission and the 
executive agencies, providing independent and objective assurance on their adequacy and effectiveness. As 
required by its mission charter, the Internal Audit Service issued an annual overall opinion on the 

 financial 

management in the Commission covering the previous 3
into account information from other sources, namely the reports from the European Court of Auditors. 

years (2020-2022). The overall opinion also takes 

Based on this audit information, the internal auditor considered that, in 2022, the Commission 
put into place governance, risk management and internal control procedures which, taken as a 
whole, are adequate to give reasonable assurance over the achievement of its financial 
objectives. However, the overall opinion is qualified with regard to the reservations the authorising officers 
by delegation made in their declarations of assurance, issued in their respective annual activity reports. As 
regards the overall opinion, the internal auditor also considered the combined impact of all amounts 
estimated to be at risk at payment as these go beyond the amounts put under reservation. Given these 
elements, the Internal Audit Service considers that the EU budget is adequately protected in total and over 
time. 

described in Annex

6 to this report, regarding: 

• 

• 

• 

implementation of the EU budget in the context of unpredictable and repetitive crises; 

implementation of the Recovery and Resilience Facility; 

supervision strategies to ensure the sound financial management for the implementation of policies 
and programmes by third parties. 

The resulting recommendations concern aspects related to performance management, EU policy 
implementation, legality and regularity in relation to internal control systems, preparedness for and early 
implementation of the EU budget, cooperation with third parties implementing policies and programmes and 
information technology. For all accepted recommendations, the auditees drafted action plans, which were 
submitted to the Internal Audit Service, who subsequentially assessed them as being satisfactory or 
requested a revised action plan. Finally, the Internal Audit Service pursued its strict follow-up policy and 
assessed t
basis. The audit work confirmed that 96% of the recommendations issued between 2018 and 2022 and 
followed up by the Internal Audit Service were adequately and effectively implemented by the auditees. This 

71
(

)  It should be noted that the de minimis rule for reservations is not applied for cohesion policy funds, since 
reservations are made for individual (parts of) programmes and then aggregated by programming period. 

75 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

result indicates that the Commission services are diligent in implementing the recommendations and 
mitigating the risks identified by the Internal Audit Service. 

6 includes more information on the assurance provided by the Internal Audit Service. In addition, a 

118(8) of the financial regulation, as part of the integrated financial and accountability reporting 

Annex
report on the 
with Article
package.  

3.3. 

Assurance obtained through the work of the Audit Progress 
Committee 

The Audit Progress Committee oversees audit matters within the Commission, and reports 
annually to the College of Commissioners. It ensures the independence of the Internal Audit Service, 
monitors the quality of internal audit work and ensures that internal and external (i.e. from the European 

services and that they receive appropriate follow-up.  

During this reporting year, which was marked by the effects of the post-COVID-19 pandemic, the Russian war 
of aggression against Ukraine and the ensuing energy and supply-chain crises, the committee continued to 
play its important role in enhancing governance, organisational performance and accountability 
across the entire organisation. It held four rounds of meetings, focusing on the key objectives set out in 
the 2022 and 2023 work programmes. In connection with its areas of responsibility, the committee continued 
to receive information from management and the Internal Audit Service about the mitigation and appropriate 
audit coverage of high risks, with a particular focus on cross-cutting risk themes. 

The committee discussed critical audit findings raised by the Internal Audit Service with relevant 
auditees and urged completion of mitigating actions as soon as possible. It also held a thematic 
 its crucial importance in the 

of the underlying transactions to the discharge authorities.  

The committee was satisfied with the independence and quality of the internal audit work and 
, which adequately covers the audit universe and the key risk 

covering 96% of recommendations issued and followed up during 2018-2022), and only three very important 
audit recommendations were overdue by more than 6

months as of January 2023. 

The committee continued its exchanges with the European Court of Auditors and held a 
discussion with the external auditor on its annual work programme for 2023. The committee also 

when, for the 15th time in a row, the Court of Auditors gave a clean opinion on the reliability of the 
consolidated EU accounts. 

7 to this annual management and performance report includes more information on the work and 

Annex
conclusions of the committee. 

76 

 
 
 
 
 
Annex

2

 Internal control and financial management 

3.4. 

The opinions of the European Court of Auditors on the 2021 
accounts and on the legality and regularity of transactions 

year, published in October 2022, once again gave a clean opinion on the EU accounts, for the 15th year in a 
row. Revenue also continues to be free from material error. 

Annual report on the implementation of the EU budget for the 2021 financial 

As regards legality and regularity of expenditure, the Court of Auditors issued for the first time an audit 
opinion on the Recovery and Resilience Facility. It concluded that Recovery and Resilience Facility expenditure 
for 2021 was legal and regular in all material respects, hence providing a clean opinion. As regards 
expenditure under the multiannual financial framework, the Court of Auditors maintained an adverse opinion. 
The overall estimated level of error for the EU budget (3.0%) slightly increased compared to 2020 (2.7%). 

-risk expenditure. 
High-risk expenditure, which is often subject to complex rules and is mainly based on reimbursement of costs, 
covers in particular cohesion, research expenditure, rural development, market measures under the European 
Agricultural Guarantee Fund and some parts of external initiatives. The Court of Auditors concludes that high-
risk expenditure represented 63% of the audited population for 2021, an increase compared to 2020 which is 
consistent with the increase in cohesion payments at this stage of the 2014-2020 multiannual financial 
framework cycle.  

72
(

), accounting for 39.7% of the audited population. Administrative expenditure 

On the other hand, 
case of natural resources
remained free from material error. More generally, the Court confirmed again that the risk of error is lower for 
expenditure subject to simplified rules, mainly the entitlement-based payments (as opposed to 
reimbursement-based payments), for which beneficiaries must meet certain
well as some parts of administrative expenditure (mostly salaries and pensions of EU civil servants). 

/ below the level of materiality in the 

 conditions, as 

 often simple

from special reports. It reports on the measures taken in the annual activity reports. Moreover, it reports on a 

mendations, stemming both from the annual reports and 

Committee, which performs certain monitoring activities in this respect under its updated mandate

dit Progress 
73
(

). 

provides feedback, helping the Commission to enhance its follow-up activities. In the Report of the European 
Court of Auditors on the performance of the EU budget 
 Status at the end of 2021, the Court reviewed the 
extent to which the Commission had pursued the implementation of 255 audit recommendations addressed 
to it in 28 special reports published in 2018. The Court noted that the Commission had implemented 85% of 
the recommendations either fully (62%) or in most respects (13%), and another 11% in some respects. In 2% 
of the cases, the Court considered the recommendations as no longer relevant. Of the 27 recommendations 
(11%) that the Court considered not to have been implemented, the Commission had initially not accepted 16 
and partially accepted two. These results are in line with previous years. 

72
(
73
(

)  1.8% for 2021, compared to 2.0% for 2020. 
)  Communication to the Commission from Commissioner Reynders in agreement with the President

 Update of the 

charter of the Audit Progress Committee of the European Commission (C(2020)

1165). 

77 

 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

3.5.  Discharge of the budget for 2021 

The European Parliament granted discharge to the Commission for the 2021 financial year on 10

May

2023, 

 focused on how to ensure 

a
Committee on Budgetary Control also invited selected Commissioners and Directors-General for exchanges of 
views during the discharge procedure. During the procedure, the key stakeholders
 the European Parliament, 
the Council of the European Union and the European Court of Auditors
transparency over the use of the EU budget, how to improve its results and how to further reduce the level of 
error. The Recovery and Resilience Facility, which became operational in 2021, was one of the key elements of 
the discharge discussions, due to its financial firepower and the specific nature of its delivery mode, which is 
performance-based rather than based on costs incurred. In particular, several interinstitutional exchanges 
covered the issue of the traceability of the funds disbursed under the facility and information on its final 
recipients. The discussions on discharge also touched upon issues such as the rule of law and fundamental 
rights, smoother implementation and absorption of EU funds, the mainstreaming of the E
priorities throughout the EU budget, the simplification of rules and procedures to spend EU funds, the use of 
information technology tools for the management, control and audit of the funds, and the methodologies to 
estimate the level of error and the level of risk. As usual, the Commission is taking appropriate action to 
implement these recommendations and report on the follow-up in a dedicated report. 

78 

 
 
 
 
 
3

Annex
Resilience Facility 

 The Recovery and 

 
 
 
 
 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

1.  The Recovery and Resilience Facility

 an 
innovative and successful crisis-response 
tool 

The Recovery and Resilience Facility is at the heart of the NextGenerationEU recovery plan for Europe and was 
established in the midst of the COVID-19 pandemic to help the Member States recover faster and become 
more resilient. It provides a powerful tool at the European level to support an accelerated and ambitious 
green and digital transition. In 2022, it was expanded to accommodate the REPowerEU plan, the European 

unprovoked invasion of Ukraine. 

1.1. 

Implementation is being rolled out 

165.3

All 27 national recovery and resilience plans had been approved by the end of 2022, as the 
Commission endorsed the five remaining plans of Bulgaria, Hungary, Poland, Netherlands and 
Sweden. The 27 plans account for a total allocation of EUR
billion in non-repayable financing and 
EUR
proposed by the Member States have exceeded the objective to dedicate at least 37% of the expenditure to 
measures contributing to climate objectives and at least 20% of the expenditure to digital objectives. For the 
facility as a whole, the estimated climate expenditure amounts to about 40% and the digital expenditure 
to

billion in loans. In support of the green and digital transitions, the reforms and investments 

335.1

26%. 

74,4

In 2022, the Commission disbursed 13 payments to 11 Member States, amounting to a total of 
billion including pre-financing, following the satisfactory fulfilment of 366 milestones 
EUR
and targets. Out of this amount, EUR 27.2 billion correspond to loans. While in many cases the Commission 
sought additional information to enable a comprehensive assessment, all payment requests were assessed 
positively in 2022. The overall state of play of the implementation of the Recovery and Resilience Facility, as 
of 31

December 2022, is summarised below. 

81 

 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Disbursements to Member States in 2022 without pre-financing (billion EUR)  
(1) Spain  - second payment request (first payment request took place in 2021) 
(2) Croatia   first and second payment requests 
(3) Italy   first and second payment requests 

Source: European Commission 

1.2.  Delivering on the REPowerEU plan 

The REPowerEU plan, proposed in May 2022, is the Commission s response to economic hardship 
and the energy market disruptions caused by Russia s invasion of Ukraine. The plan aims at 
reducing 
more resilient energy system. The regulation
resilience plans was adopted by the co-legislators on 27 February 2023, following the political agreement 
reached on 14
the objectives of the REPowerEU plan. The Recovery and Resilience Facility provides financing for the 
REPowerEU plan in the form of EUR
EUR
the Brexit Adjustment Reserve. 

billion already available in loans under the facility, new grants worth 
billion from 

December, making the Recovery and Resilience Facility better equipped to effectively address 

billion funded by the auctioning of Emission Trading System allowances and up to EUR

introducing REPowerEU chapters in the recovery and 

accelerating the green transition and achieving a 

 (74) 

225

5.4

20

1.3. 

Achieving the first performance results 

Overall, the implementation of the recovery and resilience plans in 2022 was broadly on track. In 
total, 934 milestones and targets had already been achieved

) by the end of 2022, in line with 

75
(

74
(

75
(

)  Regulation (EU) 2023/435 of the European Parliament and of the Council of 27 February 2023 amending Regulation 
(EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) No 
1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC. 

)  Reported as completed by Member States in the scoreboard, but not yet necessarily assessed by the Commission as 

fulfilled. 

82 

 
 
 
 
 
 
 
 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

initial expectations. The first results obtained indicate that the facility is making a key difference in the life 
of our citizens. Some of the major achievements are shown below

76
(

). 

Green transition. By the end of 2022, thanks to the facility, annual energy consumption had been reduced 
by 14
vehicles had been installed or upgraded. 

million refuelling and recharging stations for clean 

million megawatt per year and more than 0.4

•  Digital transition. More than 9.2

million dwellings gained access to very high-capacity internet 

networks and 123

). 
•  Healthcare. Healthcare capacity has been increased, including hospitals, clinics, outpatient care 

million users were already using new or improved public digital services

77
(

million was the 
centres and specialised care centres. By the end of 2022, approximately 28
maximum annual number of people that can be served by a new or modernised health care 
facility, thanks to the facility. 
•  Education and training. In all, 2.6

million people had participated in education and training and 

million young people aged 15 29 had received support, whether monetary or in-kind (i.e. 
2.7
education, training and employment support), thanks to measures supported by the facility by the 
end of 2022. 

•  Support to businesses. Almost 413

000 enterprises had received support

 whether monetary 

or in-kind

 under the facility by the end of 2022. 

Thanks to the Recovery and Resilience Facility, progress was already made on some key reforms 
during the first two years of implementation of the facility. This ranges from reforms of civil and criminal 
justice systems to make them more efficient by reducing the length of proceedings and by improving the 
organisation of courts, to improving affordable housing or supporting the roll-out of renewable energy and 
sustainable transport. In addition, the facility unlocks the full potential of structural reforms by 
complementing them with key investments. Some of the major investments with key steps already completed 
include the decarbonisation and energy efficiency of industry, investments to support vulnerable people or the 
selection of digital innovation hubs to support companies in their digitisation efforts. An overview of Member 

accessible in the recovery and resilience scoreboard
), a public online platform set up by the Commission. It 
also shows common indicators to report on progress and to evaluate the Recovery and Resilience Facility and 
the national plans. Information about concrete projects supported under the Recovery and Resilience Facility, 
including details on their implementation and their geo-
 is available 
in an interactive map that is regularly updated  (

). 

79

78
(

76
(

)  This data is based on data reported by the Member States in the context of the bi-annual reporting on the common 

indicators. More information and data are available on the recovery and resilience scoreboard. 

)  The same person can use the service multiple times, in which case they would be counted multiple times. 
)  https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/ 
)  https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility_en#rrf-

77
(
78
(
79
(

supported-projects-in-the-member-states 

83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

2.  A dedicated control environment to 
ensure the protection of EU funds 

80
(

) sets out the respective roles 
The regulation establishing the Recovery and Resilience Facility
and responsibilities of Member States and of the Commission for protecting the EU budget. The 
facility is a fully performance-based instrument and, unlike other EU funding programmes, the Commission 
does not reimburse Member States based on actual costs incurred for the reforms and investments included 
in the recovery and resilience plans. Instead, the Commission pays pre-defined instalments solely when 
agreed milestones and targets are satisfactorily fulfilled. The funds of the Recovery and Resilience Facility, 
once disbursed, enter the national budget with no direct link to the expenditure incurred to finance the 
reforms and investments.  

2.1. 

At the Member State level 

As per the regulation, Member States are responsible for ensuring that the facility is implemented in 
compliance with EU and national rules and with the principles of sound financial management. The 
Commission should be able to receive sufficient assurance from them in that regard. 

Member States must put in place suitable monitoring and control systems to protect the 
financial interests of the EU and to ensure that the use of funds complies with EU and national 
law. These systems are described in detail in the recovery and resilience plans and are assessed by the 
Commission before each plan is adopted. During the lifetime of the facility, Member States must implement 
these control systems. Notably, they must undertake systematic work to ensure that the systems prevent, 
detect and correct irregularities. If a Member State detects any specific irregularities, it must take action to 
correct them and inform the Commission of the irregularities. If a Member State does not undertake the 
necessary corrections in case of fraud, corruption or double funding, the Commission will recover funds from 
the Member State. Moreover, if a Member State seriously breaches its obligations, the Commission can apply 
a flat-

facility funds.  

The Member States  control systems were assessed as adequate overall by the Commission, but 
further improvements were needed in most cases. As a consequence, the Commission required that 
milestones on audits and controls be included in the Council implementing decisions. Deficiencies in the 

not being fully in place at the time of the assessment, as required by the recovery and resilience facility 
regulation; the absence of formal legal mandates for the various bodies in charge of implementing and 
auditing the funds; insufficient administrative capacity on the part of the implementing and audit bodies in 
charge of implementing the plan; and the lack of a clear audit strategy or anti-fraud measures. 

assurance on the proper functioning of the internal control system implementing the Recovery 
and Resilience Plan, resulting in an audit summary accompanying each payment request and considered for 
the management declaration. This document should contain the summary of audits conducted during the 
implementation period, in particular the system audits carried out on national control systems. The audit 
summary should reflect the assessment of the impact of the identified weaknesses and the adequacy of the 
corrective action taken.  

80
(

)  Regulation (EU) 2021/241 of the European Parliament and of the Council of 12

February 2021 establishing the 

Recovery and Resilience Facility. 

84 

 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

Regarding the achievement of the milestones and targets, Member States must check that the 
pre-defined milestones and targets are completed and that the evidence submitted to the 
Commission is complete and accurate. This forms the basis for the management declaration to be 
submitted by the Member States for each payment request. In the management declaration, the Member 
States must confirm that the control systems in place give the necessary assurances that the funds were 
managed in accordance with the principle of sound financial management and with all applicable rules, in 
particular rules on avoidance of conflict of interest, as well as prevention of fraud, corruption and double 
funding. 

The recovery and resilience facility regulation obliges the Member States to collect data on final 
recipients, which the Commission and other competent authorities can request for specific audit 
and control purposes. The entry into force of the amended Recovery and Resilience Facility regulation on 1 
March 2023 further strengthened the transparency of the facility framework by requiring national authorities 
to publish information on the 100 final recipients receiving the highest amounts of funding per Member State. 

2.2. 

At the Commission level 

The Commission has designed its control strategy to fully comply with its responsibilities 
stemming from the regulation. 

• 

• 

The Commission must ensure the legality and regularity of payments to the Member 
States which are solely linked to the satisfactory fulfilment of the milestones and 
targets. For this purpose, the Commission carries out an ex ante assessment of all the 
payment requests received from the Member States, and ex post audits on the spot for a 
selection of payment requests, milestones and targets. 

The Commission has the right to reduce and recover any amount, or ask for early 
repayment of the loan, in cases of fraud, corruption and conflicts of interests affecting the 
financial interests of the EU that have not been corrected and recovered by the Member State, or for 
a serious breach of an obligation resulting from the financial and/or loan agreement signed with the 
Member States. For this purpose, the Commission makes an assessment of the control systems 
described in the plans submitted to the Commission before their adoption. In addition, the 
Commission carries out system audits in the Member States over the entire duration of the 
facility. 

Assessment of the plans 

Before their adoption, the Commission assesses the recovery and resilience plans submitted by 
the Member States as regards their relevance, effectiveness, efficiency and coherence, along 

Given the 
EU and national rules and in the protection of the 
in the plan is a critical contribution to the reasonable assurance over payment requests that will materialise in 
the future. In addition, the Commission relies on national arrangements and information systems to make its 
assessment of the payment requests received.  

 financial interests, their control framework as defined 

The Commission is thus assessing whether the arrangements proposed by the Member State in their recovery 
and resilience plans are expected to prevent, detect and avoid double funding from other EU programmes, to 
correct corruption, fraud and conflicts of interest, and to provide an adequate protection of the financial 
interests of the EU when using the funds provided under the facility.  

85 

 
  
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Where the Commission identifies inadequacies in these arrangements, it will require the Member State to 
include in the plan, before its adoption by the Council, the relevant measures and associated milestones and 
targets necessary for complying with the requirements of the regulation on these aspects. The Commission 
proposal for a Council implementing decision will include these relevant measures and the associated 
milestones and targets necessary for complying with the requirements of the regulation on the issues that 
need to be attained before the first disbursement can be made (except for pre-financing).  

Ex ante controls at the payment stage 

Assessment of the satisfactory fulfilment of the milestones and targets 

Upon receiving a payment request, the Commission checks the documentation provided as 
supporting evidence where relevant, by using sampling methods and establishes whether the 
milestones and/or targets have been satisfactorily fulfilled. The Member State needs to provide due 
justification that the milestones and/or targets have been fulfilled, specifying their reasoning and providing 
the underpinning evidence. The Commission verifies that the justification demonstrates that the requirements 
of the Council implementing decision are fulfilled. These controls are designed to prevent, detect and correct 
errors and irregularities in the evidence that is provided, to establish that the milestones and targets have 

82
(

), formal requirements

determine the relevant amounts, while retaining a margin of discretion where, in a limited number of 
circumstances and in line with the application of the de minimis principle, minimal deviations
84
amounts
(
for additional information and may decide to carry out additional controls in order to obtain the necessary 
complementary assurance on the achievement of the milestones and targets before making the payment. The 
evidence considered and the rationale followed by the Commission for each milestone and target assessment 
is systematically recorded in specific assessment fiches, to ensure an audit trail of the key contributions and 
evidence. 

) linked to the 
) can be accepted. The Commission may ask 

) or substance

), timing

85
(

83
(

81
(

compliance as part of the assessment of the satisfactory fulfilment of a milestone or target in the context of 
payment requests. As for any other requirement, this is done based on evidence provided by the Member 
States.  

To foster transparency, in February 2023, the Commission published its framework for assessing 
the satisfactory fulfilment of the milestones and targets
gained during a full year of implementation. The Commission strongly believes that by making this framework 
public, national authorities, stakeholders and the wider public will gain a better understanding of how the 
implementation of measures supported by the Recovery and Resilience Facility is evaluated before each 
disbursement. It reflects the experience that the Commission has gained so far in the assessment of 
milestones and targets under the recovery and resilience facility regulation. 

), taking into account the experience 

86
(

81
(
82
(
83
(

)  Minimal deviation as specified in COM (2023) 99 final
)  A minimal deviation from amounts specified in that milestone/target is defined as a deviation of around 5% or less. 
)  A minimal deviation from a formal requirement of the milestone/target related to the internal procedures of Member 

 Annex

1. 

States, which does not affect the progress towards the achievement of the reform or investment that the 
milestone/target represents. 

)  Limited and proportional delays between the publication of regulatory measures and their effective entry into force, 

provided that the certainty of their application and the beginning of legal effects are respected. 

)  A minimal deviation from a formal requirement of the milestone/target related to the internal procedures of Member 

States, which does not affect the progress towards the achievement of the reform or investment that the 
milestone/target represents. 

)  COM(2023) 99 final. 

84
(

85
(

86
(

86 

 
 
 
 
 
 
 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

Assessment of the specific milestones on audit and control 

The specific milestones on audit and control are assessed during the assessment of the first 
payment request. No payment can be made unless these milestones have been satisfactorily 
achieved. 

Analysis of the management declarations and audit summaries 

The Commission performs a systematic analysis of the management declarations and summaries 
of audits accompanying each payment request. The objective is to identify any information that puts the 
fulfilment of milestones and targets into doubt, for instance cases in which the management declaration or 
the summary of audit indicate that inconsistencies or data errors were found in relation to data which is 
provided for one of the milestones and targets. Similarly, if the documents highlight possible or actual 
fraudulent procurement procedures for a measure, the Commission will closely investigate the evidence 
provided for the related milestones and targets. 

Ex post audits 

Based on a risk assessment of all the milestones and targets included in the payment requests 
of each plan, the Commission selects all payments entailing milestones and targets it considers 
as potentially high-risk. Where resources allow for it, some medium-risk milestones and targets will also 
be audited. Depending on the outcome of the risk assessment, a number of ex post audits on specific 
milestones and targets are performed in the Member States.  

System audits 

-ups during 
the entire lifetime of the facility. These audits on the protection of the financial interest of the EU are 
carried out to ensure that Member States comply with their obligations to have processes in place to prevent 
and detect serious irregularities (i.e. fraud, corruption or conflicts of interest) or serious breaches of 
obligations of the financing agreement (including double funding) and to allow the Commission to exert its 
right of reduction and/or early repayment. In line with its audit strategy for the Recovery and Resilience 
Facility, the Commission will carry out system audits in all Member States by the end of 2023. In the context 
of these system audits, the Commission also checks that 
and check compliance with EU and national rules, including specific elements of the public procurement 
procedure. Furthermore, on a risk-based approach, the Commission performs system audits to check if the 
data collection system of Member States is reliable. 

Assessment of checks carried out by Member States on compliance with public 
procurement and State aid rules 

r the Recovery and Resilience Facility and concerns expressed by the 
Committee on Budgetary Control of the European Parliament, the Commission conducted additional work to 

special report on the design 

with public procurement and State aid rules pursuant to Article
regulation. 

22(2)a of the recovery and resilience facility 

oncerning compliance 

This analysis is mainly based on the audit work carried out by Commission audit services and on the results of 
national audit work. 

87 

 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Audits of national authorities 

The Commission also carries out audits on the work done by national audit authorities on the 
Recovery and Resilience Facility. The objective is to assess the reliability of the work performed at the 
national level, in particular regarding audits carried out on national control systems to ensure that national 
and EU rules are complied with and that the EU budget is protected. 

2.3. 

Suspension of payments in case of non-implementation 

87
(

) that allows 

In February 2023, the Commission adopted a payment suspension methodology
for partial or full suspension of payments in case of implementation shortcomings. The 
Commission will determine the amount to be suspended if a milestone or target is not satisfactorily fulfilled, 
in full respect of the principles of equal treatment and proportionality. The methodology provides a clear and 
consistent approach to determine the amounts of reduction and/or repayments, while retaining a margin of 
discretion. The methodology fully reflects the performance-based nature of the Recovery and Resilience 
Facility and the unique combination of reforms and investments. Consequently, the suspended amount will 
reflect the fact that not all measures contribute equally to the realisation of the objectives of a recovery and 
resilience plan. A contradictory procedure will ensure that the Member States can submit observations 
regarding the negative assessment by the Commission underpinning the suspension decision. The payment 
suspension procedure favours the continued implementation of the plan and provides time for Member States 
to lift the suspension by fulfilling the relevant milestone(s) or target(s) within a period of 6

months. 

87
(

)  COM(2023) 99 final. 

88 

 
 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

3.  Control results confirm the satisfactory 
fulfilment of all milestones and targets 
for the payments made in 2022 

3.1.  Main results 

Assessment of the plans 

The Commission positively concluded its assessment of the five plans received at the end of 
2021 and the beginning of 2022 (Bulgaria, Hungary, Netherlands, Poland and Sweden). 
Nevertheless, the Commission requested to include additional milestones on audit and control for all of them.  

Ex ante controls at the payment stage 

Assessment of the satisfactory fulfilment of the milestones and targets 

The Commission positively concluded its assessment of satisfactory fulfilment for all of the 13 
payment requests received in 2022, covering 366 milestones and targets (328 milestones, 38 
targets). As a result, no suspension or reduction of payments were needed in 2022. 

Assessment of the specific milestones on audit and control 

In all, 9 out of 11 Member States for which the first payment already took place since the 
beginning of the implementation were concerned by audit and control milestones. In most cases, 
Member States had to ensure that a repository system for monitoring the implementation of the Recovery 
and Resilience Facility had been set up, along with the entry into force of laws or decrees setting out legal 
mandates or defining audit and control procedures. 
milestones positively, based on desk reviews and in-depth assessments of the evidence provided by each 
Member State. In addition, commitments were made by seven Member States to ensuring the continuous 
respect of the audit and control milestones. 

Based on the current audit work, the Commission identified mixed situations regarding the 
implementation of internal control systems across the audited implementing and coordinating bodies. 
The main issues encountered, for which the Commission issued recommendations and agreed deadlines for 
their implementation, concern: the lack of sufficient coordination/supervision by the coordinating bodies; 
incomplete anti-fraud strategies for the protection of the financial interests of the EU; missing elements in 
the fraud risk assessments; the need to improve the ex ante controls carried out to prevent conflict of 
interests; low participation in training sessions organised to raise fraud awareness; and deficiencies in 
reporting of irregularities to the European Anti-Fraud Office. Nevertheless, good practices for some of the 
auditees were also identified, such as: existence of risk assessment for sensitive staff; procedures in place for 
detection of possible fraud and corruption, notably using data-mining tools such as ARACHNE; existence of 
procedures for preventive detection of possible conflict of interests; and procedures in place for verification of 
possible double funding before the grant award decision. 

89 

 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

Analysis of management and audit summaries 

The Commission reviewed the 13 management declarations and audit summaries accompanying 
the 13 payment requests submitted and paid in 2022. Based on the audit summaries, the Commission 
requested the corresponding audit reports and analysed them. None of the information included in the 
corresponding reports puts into question the satisfactory fulfilment of milestones and targets included in the 
payments made in 2022. The analysis of the management declaration and the summary of audits was also 
used to update the risk assessments to determine the upcoming audit plans and to establish the audit and 
management opinions. 

Ex post audits on milestones and targets 

In line with its audit strategy, the Commission has carried out seven audits on milestones and 
targets regarding the first payment requests submitted by Spain, France, Croatia, Italy, Portugal and 
Romania and the second payment request submitted by Croatia. The ex post audits on milestones and targets 
were conducted using a risk-based approach. The Commission has reached its objective to audit all of 
the 15 high-risk milestones and targets and 12 out of 22 deemed as medium-risk. The non-audited 
payment requests contained mainly low-risk milestones
) for which an ex post audit was not relevant. The 
Commission concluded that the audited milestones and targets have been satisfactorily achieved, hence no 
suspension or reduction of payments were needed in 2022. The discrepancies identified between the data 
declared and the data audited remain within the margin of 5% considered by the Commission for its 
assessment.  

88
(

Audits of the national audit authorities 

In 2022, the Commission also reviewed, with a positive outcome, the audit work carried out by two national 
audit authorities (France and Croatia) in the context of two audits on milestones and targets. 

System audits on the protection of the financial interests of the European Union 

In 2022, the Commission already carried out 16 system audits on the protection of financial 
interests of the EU
). The system audits covered 16 coordinating bodies and 48 implementing bodies, 
such as ministries or agencies. By the end of 2023, all the Member States will have been audited at least 
once. 

89
(

In the context of these system audits, the Commission carried out targeted checks on compliance with public 
procurement procedures, covering both the procedures in place to prevent fraud, corruption and conflict of 
interests in public procurement procedures, and actual implementation of these procedures on a few sampled 
measures. For the main issues encountered, the Commission issued recommendations and agreed with the 
Member States on deadlines for their implementation. Member States have started to implement the 
necessary improvements stemming from the audit findings in the audited implementing bodies, but also in 
other relevant bodies.  

88
(
89
(

)  For example, the entry into force or publication of a law are considered as low risk. 
)  Bulgaria, Czechia, Denmark, Estonia, Ireland, Greece, Spain, Italy, Cyprus, Latvia, Lithuania, Malta, Poland, Slovenia, 

Slovakia and Finland. 

90 

 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

Assessment of checks carried out by Member States on compliance with public 
procurement and State aid rules 

According to Article
check that the financing provided has been properly used in accordance with all applicable rules and that any 
measure for the implementation of reforms and investment projects under the recovery and resilience plan 
has been properly implemented in accordance with all applicable rules regarding the prevention, detection, 
and correction of fraud, corruption and conflict of interests. 

To support its declaration of assurance, the Commission conducted an assessment of the respect by the 
Member States of their obligation to regularly check that State aid and public procurement rules have been 
complied with. This risk assessment covered 11 Member States (Bulgaria, Greece, Spain, France, Croatia, Italy, 
Cyprus, Latvia, Portugal, Romania and Slovakia), corresponding to the 13 payments made by the 
Commission in 2022. 

The Commission mainly relied on the results of national audit work (reported in the audit summaries or 
transmitted as complementary information), but also the audit work carried out by the Commission in the 
context of compliance audits on public procurement and State aid rules carried out in common bodies. In 
addition, in the absence of sufficient evidence from a desk review, the Commission conducted a fact-finding 
mission in one Member State. 

Based on the evidence collected and assessed and to the best of its knowledge, the Commission considers 
that the control procedures put in place give the necessary guarantees concerning, notably for public 
procurement and State aid, the respect of the obligation of Member States to regularly check that the 
financing provided in the context of the 2022 transactions has been properly used and implemented in 
accordance with all applicable rules. 

Annual audit and management opinions 

Based on its audit work, the Commission provided 11 annual audit opinions covering the 13 payments made 
in 2022. These audit opinions have complemented other available information to provide the management 
opinion for the payments made to the 11 Member States in 2022. These opinions were used to support the 
declaration of assurance of the authorising officer by delegation. 

Ongoing work of the European Court of Auditors in the context of the Statement of 
Assurance 2022 

risk for each payment done in 2022. By the cut-off date of 30
April 2023, the Commission had received 
12 clearing letters from the Court. With respect to five clearing letters, after careful analysis the Commission 
maintained its position (based on its ex ante and ex post controls) that the milestones and targets included in 
the corresponding payment requests have been satisfactorily achieved. This implies a low level of risk. For the 
other clearing letters, the assessment is still on-going at the time of signature of the DG Economic and 
Financial Affairs 2022 annual activity report. 

91 

 
 
 
 
Annual Management and Performance Report for the EU Budget

 Financial year 2022 

t
s
e
u
q
e
r

t
n
e
m
y
a
P

r
e
b
m
u
n

1st 

1st 

2nd 

1st 

1st 

2nd 

1st 

2nd 

1st 

1st 

1st 

1st 

1st 

Country 

 Bulgaria 

 Greece 

 Spain 

 France 

 Croatia 

 Italy 

 Cyprus 

 Latvia 

 Portugal 

 Romania 

 Slovakia 

Commission Legality and regularity audits 

Level of risk 

Total number of 
milestones and targets 

Number of audited 
milestones and targets 

high 

medi-
um 

low 

high 

medi-
um 

low 

n
o
i

n

i
p
o

t
i
d
u
A

t
n
e
m
e
g
a
n
a
M

n
o
i

n

i
p
o

l
l
a
r
e
v
O

k
s
i
r

f
o

l
e
v
e
L

5 

6 

0 

3 

1 

0 

0 

0 

8 

2 

4 

3 

3 

2 

35 

24 

32 

5 

47 

35 

19 

5 

6 

0 

3 

1 

0 

0 

0 

2 

1 

3 

1 

3 

2 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

Low 

0 

0 

1 

0 

0 

0 

0 

Total 

Control results 

13 

15 

22 

197 

15 

12 

1 

Qualitative assessment of the legality and regularity of payments 

The Commission makes a qualitative assessment of the control results and the level of risk 
associated with the operations. Unlike other EU programmes, this assessment cannot be 
quantified with an error rate. Error rates reflect a quantitative assessment, which is pertinent when the 
expenditure can be directly attributed to a quantitative criterion. Payments in the context of the Recovery and 
Resilience Facility are based on a qualitative assessment of the fulfilment of milestones and targets, which is 
difficult to translate into quantitative terms. Even when milestones and targets have not been satisfactorily 
fulfilled and a reduction will be made, this reduction cannot correspond to an amount of ineligible 
expenditure. In addition, the investments and reforms included in the recovery and resilience plans are very 
diverse, both within a Member State and between Member States, which prevents any statistical 
extrapolation. In this context, a meaningful error rate cannot be determined.  

 (1) the 

audits that has to accompany each payment request; (3
carried out by the Commission at the Member State level in the context of other funding programmes such as 
cohesion policy funds. As a result, the Commission determines for each payment a level of risk to the legality 
and regularity of the payment, which can be low, medium or high. 

92 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 3

 The Recovery and Resilience Facility 

On the basis of the work carried out, the Commission concludes that all 13 payments made in 2022 have a 
low level of risk, in line with the materiality criteria, since: 

• 

on the basis 
assessed as satisfactorily fulfilled; 

ex ante and ex post controls, all the milestones and targets have been 

•  Member States are taking the required actions to address the weaknesses identified during the 

systems audits; 

• 

3.2. 

the Commission caref
payments made in 2022 and maintained its position that the milestones and targets included in the 
s preliminary 

audit results were not yet available at the time of signature of the DG Economic and Financial 
Affairs 2022 annual activity report. 

The authorising officer by delegation for the facility confirmed 
that they had reasonable assurance 

The Colleg
the facility. It relies for this on the work of the authorising officer by delegation for the facility. In their 
conclusions on the assurance for the Recovery and Resilience Facility, the officer
reasonable assurance on: 

90
(

) confirmed that they had 

• 

• 

• 

the legality and regularity of the payments made in 2022 for the Recovery and Resilience Facility, 
based on the positive assessment of the evidence of the satisfactory fulfilment of the milestones 
and targets provided in the payment requests, on ex post audit work on the milestones and targets 
and also considering the outcomes of the audit work carried by the European Court of Auditors in 
the context of its statement of assurance 2022 (for clearing letters received and assessed by the 
cut-off date);  

22(2)(a) of the regulation establishing the Recovery and Resilience Facility to 

notably for public procurement and State aid, the respect of the obligation of Member States laid 
down in Article
regularly check that the financing provided in the context of the underlying transactions has been 
properly used in accordance with all applicable rules, and that any measure for the implementation 
of reforms and investment projects under the recovery and resilience plan has been properly 
implemented in accordance with all applicable rules, in particular regarding the prevention, detection 
and correction of fraud, corruption and conflicts of interests; and 

the implementation of Article
22(5) of the regulation on the proportionate reduction of the support 
under the Recovery and Resilience Facility and recovery of any amount due to the EU budget or the 
request for early repayment of the loan, in cases of fraud, corruption, and conflicts of interests 
affecting the financial interests of the EU that have not been corrected by the Member State, or a 
serious breach of an obligation resulting from the agreements referred to in Articles
of the recovery and resilience facility regulation. 

15(2) and 23(1) 

90
(

)  The Director-General for Economic and Financial Affairs has been designated as the authorising officer by delegation 

for the Recovery and Resilience Facility. 

93 

 
 
 
 
 
 
 
 
 
 
Getting in touch with the EU

In person
All over the European Union there are hundreds of Europe Direct centres. You can find the address of the centre nearest 
you online (european-union.europa.eu/contact-eu/meet-us_en).

On the phone or in writing
Europe Direct is a service that answers your questions about the European Union. You can contact this service: 

̋
̋
̋

by freephone: 00 800 6 7 8 9 10 11 (certain operators may charge for these calls), 
at the following standard number: +32 22999696, 
via the following form: european-union.europa.eu/contact-eu/write-us_en.

Finding information about the EU

Online
Information about the European Union in all the official languages of the EU is available on the Europa website 
(european-union.europa.eu).

EU publications
You can view or order EU publications at op.europa.eu/en/publications. Multiple copies of free publications can be 
obtained by contacting Europe Direct or your local documentation centre (european-union.europa.eu/contact-eu/
meet-us_en).

EU law and related documents
For access to legal information from the EU, including all EU law since 1951 in all the official language versions, go to 
EUR-Lex (eur-lex.europa.eu).

EU open data
The portal data.europa.eu provides access to open datasets from the EU institutions, bodies and agencies. These can be 
downloaded and reused for free, for both commercial and non-commercial purposes. The portal also provides access to 
a wealth of datasets from European countries.