Enhancing Fiscal Transparency through Participatory Budgeting in the EU

Key points

The EESC:

• recognises the crucial role of fiscal transparency and participatory budgeting in enhancing democratic processes and building trust in EU institutions.
• identifies significant opportunities for improvement and standardisation across Member States.
• finds that the EU should establish a common framework for fiscal transparency across all programmes financed through the multiannual financial framework (MFF) that should:
  • a) set clear standards and guidelines for fiscal transparency
  • b) emphasise mechanisms and best practices rather than introducing new regulations;
  • c) ensure consistency in reporting and accessibility of budgetary information
• wants the EU to encourage and support Member States in publishing high-quality data sets on their budgets and the use of European funds.
• wants the EU to promote and support participatory budgeting initiatives, particularly at the local and regional levels where they have proven most effective. This includes: a) providing guidance and resources for implementation; b) encouraging knowledge-sharing and best practices; and c) integrating participatory elements into EU-level budgeting processes where appropriate through the involvement of organised civil society, such as in cohesion policy funding decisions.
• recommends that the EU develop and promote the use of digital platforms to enhance fiscal transparency and citizen engagement.
• emphasises the importance of the European Court of Auditors (ECA) in fiscal transparency and recommends strengthening its role.
• stresses the importance of prioritising efforts to increase public awareness and engagement in fiscal matters. This involves: a) comprehensive education and awareness-raising; b) providing training and capacity-building programmes for public officials and civil society organisations; and c) actively engaging young people and future leaders.
• wants to ensure that fiscal transparency and participatory budgeting initiatives support and align with critical EU objectives.
• wants to encourage greater cooperation and knowledge-sharing on fiscal transparency and participatory budgeting across EU Member.
• believes that fiscal transparency and participatory budgeting efforts will contribute to increased public trust, more effective use of public resources, and a strengthened democratic process within the existing framework of representative democracy. 

Press summary : Enhancing fiscal transparency through participatory budgeting in the EU | EESC