The European Court of Auditors report confirms Commission’s handling of borrowing operations

On 12 June 2023, the European Court of Auditors (ECA) published the findings of its special report on NextGenerationEU debt management operations. In its report, the ECA assessed whether the Commission has developed effective systems to manage the debt raised to finance NextGenerationEU.

ECA concluded that the Commission succeeded in rapidly developing a new debt management system for NextGenerationEU– the biggest investment and borrowing programme in EU history. It also found that the Commission’s funding approach allowed the EU to borrow promptly from the capital markets and provide the funds required in good time, while meeting all key regulatory requirements concerning debt portfolio and risk management.

Alongside its endorsement of the organisation and execution of the EU-Bond execution, based on a thorough review of all aspects of the business, ECA has also issued 5 helpful recommendations to further improve the European Commission’s funding strategy. These are (i) establishing a separate middle-office function; (ii) reinforcing the role of the Chief Risk Officer; (iii) implementing a workforce strategy; (iv) formulating clear debt management objectives and related report; and (v) ensuring consistency on internal documentation.

You can read more about ECA’s report and its recommendations for next steps here: NEWS-SR-2023-16 | European Court of Auditors (europa.eu)