Budget expenditure tracking and performance framework [EU Legislation in Progress]

Written by Alessandro D’Alfonso, Marin Mileusnic and Tim Peters.

CONTEXT

On 16 July 2025, the European Commission adopted a proposal for a regulation establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities (‘performance regulation’), as part of a wide-ranging package on the next EU long-term budget – the 2028-2034 multiannual financial framework (MFF). The proposal aims to simplify and harmonise how EU spending is tracked and its performance measured, moving towards a single system with standardised indicators. It defines horizontal spending principles with a view to streamlining their application across the EU budget: climate and biodiversity, ‘do no significant harm’ to the environment, social policies, and gender equality. Although competitiveness and preparedness play a major role in the next long-term budget, and the European Parliament had requested to include them as horizontal spending principles, the Commission did not include them.

Ahead of the proposal, Parliament had called for further improvements in performance reporting under the EU budget, while underlining that the ‘implementation of horizontal principles should not lead to an excessive administrative burden on beneficiaries’. A stronger performance framework can improve Parliament’s decision-making on EU spending through more transparency. However, increased transparency from a proposed single portal to access EU budgetary data will depend on what information is made available. A briefing requested by Parliament’s Committee on Budgetary Control underlined that improved access to information – such as exchanges between the Commission and Member States, or to information about suspended milestones – was essential for public accountability. According to the European Court of Auditors, the proposal can improve processes for performance reporting and integration of EU horizontal policy priorities, but has design weaknesses to be addressed, including vague indicators, lack of clear results-based linkages, and risks of measuring implementation rather than achievements. The Court estimates that the proposal may achieve simplification between the Commission and the Member States, but that the administrative burden at national, regional and beneficiary levels may remain unchanged or even worsen.

Legislative proposal

2025/0545(COD) – Proposal for a regulation of the European Parliament and of the Council establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities – COM(2025) 565,

NEXT STEPS IN THE EUROPEAN PARLIAMENT

For the latest developments in this legislative procedure, see the Legislative Train Schedule: 2025/0545(COD)

Read the complete briefing on ‘Budget expenditure tracking and performance framework‘ in the Think Tank pages of the European Parliament.