EU budget management modes

The EU budget can be managed in three different ways: directly by the European Commission, jointly by the European Commission and national authorities, or indirectly by other bodies inside or outside the EU.

Compliance audit Financial audit Opinion Performance audit Review

Concept

Ref: 12.400

Whilst the Commission is responsible for the overall implementation of the budget, the Financial Regulation provides for three different management methods:

directly by its departments (under responsibility of the Commission's Directorates-General) including staff in the Union delegations or through executive agencies; this method is used mainly in the area of external actions and administrative expenditure;
by shared management; shared management involves the delegation of implementation tasks to member states and mainly concerns expenditure on agricultural and structural operations;
by indirect management with third countries or their designated bodies, international organisations, European Investment Bank, European Investment Fund, and other Union bodies set up under the TFEU and the Euratom Treaty; this method involves the delegation of implementation tasks to beneficiary countries and international organisations, generally in the area of external actions, or to EU agencies and public- or private-sector bodies, notably in the area of internal policies.

Each method involves a different allocation of roles and responsibilities for the implementation of the budget, which should be carefully taken into account when planning, undertaking and reporting any audit or other task.

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EU budget management modes

EU budget management modes