The European Parliament's Committee on Budgetary Control debated VAT fraud and the European Court of Auditors' Special Report 14/2026 on RRF traceability on 24 June 2026, with MEPs across groups calling for stronger prevention measures and greater transparency, while the Commission representative rejected the ECA's recommendations on RRF cost reporting.
On VAT fraud, rapporteur Andrej Knoetek noted the EU VAT compliance gap stands at €128 billion annually, with carousel fraud costing €12.5–32 billion. MEPs Tomáš Zdechovský (EPP), Eero Heinäluoma (S&D), and Daniel Freund (Greens-EFA) called for stronger prevention, real-time data exchange, AI tools, and more resources for the European Public Prosecutor's Office (EPPO). Dick Erixon (ECR) demanded clear recovery figures before the next Multiannual Financial Framework (MFF). Monika Hohlmeier (PfE) argued the VAT directive needs revision and that EPPO should focus on major cases. Consensus emerged on the need for stronger VAT fraud measures.
On the RRF, ECA member Ivana Maletić stated that traceability fails in practice, with 15 of 19 sampled measures showing cost savings of 7–25% and 80% of funds going to public bodies. The Commission's representative, Jordan Bardella, rejected the ECA recommendations, arguing the financial regulation should not be reopened and that the RRF is performance-based, not cost-based. MEPs strongly pushed back: Carla Tavares (S&D) asked for minimum data requirements; J. Sanchez (EPP) noted €160 billion disbursed without knowing actual costs; Monika Hohlmeier (EPP) said the Commission contradicts earlier statements by Commissioners; Daniel Freund (Greens-EFA) accused the Commission of illegal interpretation of Article 22 and threatened court action if data is not provided by year-end. B.j. Ruissen called the findings shocking and urged recovery of overpayments. The Commission representative noted the future MFF proposal includes transparency changes but faces Council resistance.
Amendments on the VAT report are due June 25, with voting on July 14.