The European Parliament's Budgetary Control Committee on 24 June 2026 debated VAT fraud and the European Court of Auditors' Special Report 14/2026 on RRF traceability, with MEPs across groups calling for stronger prevention measures and accusing the Commission of blocking transparency on Recovery and Resilience Facility spending. On VAT fraud, rapporteur Andrej Knoetek noted the EU VAT compliance gap is €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, and more resources for the European Public Prosecutor's Office. Dick Erixon (ECR) demanded clear recovery figures before the next MFF, while Monika Hohlmeier (PfE) argued the VAT directive needs revision and EPPO should focus on major cases. On the RRF, ECA's Ivana Maletić stated 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 Jordan Bardella rejected ECA recommendations, arguing the financial regulation should not be reopened and 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. Consensus emerged on the need for stronger VAT fraud measures and greater RRF transparency. Amendments on the VAT report are due June 25, with voting on July 14.
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