Source: European Parliament
In accordance with the Financial Regulation[1], the Commission ensures that recipients of EU funds comply with legal provisions on the protection of EU financial interests.
In case of breach of these obligations, the Commission may take several measures, as outlined in the grant agreement signed by the beneficiaries with the responsible National Agency (NA). These measures include grant reduction to payment suspension, suspension or termination of the grant agreement, and recovery of the paid grant amount.
In the event of suspicion of an exclusion situation, the Commission flags the relevant entity in the Early Detection and Exclusion System. When the Commission becomes aware of any suspected cases of fraud, corruption or any other illegal activity affecting the EU budget, it informs the European Anti-Fraud Office and, where applicable, the European Public Prosecutor’s Office (EPPO).
Since the introduction of simplified cost options, the risk of irregularity has been reduced to under 2% of the overall annual amount implemented. Accreditation of grant beneficiaries and the reduction in the maximum number of applications per beneficiary have also help lower the overall error risk.
NAs monitor Erasmus+ projects under the supervision of the Commission, which then analyses data from NAs to reinforce such monitoring mechanisms. Finally, the Commission also assists NAs in addressing recipients where there is greater financial or reputational risk, including via supervisory visits and audits.
- [1] https://eur-lex.europa.eu/eli/reg/2024/2509/oj/eng.