EISMEA 2024 Budget Approval: What It Means for SMEs and Startups with European Funds

Key data

If your company received European financing through EISMEA in 2024 — whether through the European Innovation Council (EIC) or the COSME programme — the European Parliament has just closed the control cycle for that fiscal year with a favourable outcome. Decision (EU, Euratom) 2026/1570, approved on 29 April 2026 and published on 10 September 2026, confirms that no serious irregularities were detected in the agency's budget execution.

This is not a minor formality: it is the highest democratic control mechanism of the EU over the use of European funds. Parliament's approval without relevant objections is a positive signal for all beneficiaries of these programmes.

What does this regulation establish?

The approval of management — known in European terminology as décharge — is the annual process by which the European Parliament verifies that an institution or agency has executed its budget correctly and in accordance with applicable regulations. In practice, it is the «democratic audit» of European funds.

In this case, the object of control is the EISMEA (Executive Agency for the European Innovation Council and SMEs), which manages two of the most relevant financing programmes for innovative companies in Europe:

• European Innovation Council (EIC): financing for startups and SMEs with disruptive technologies and high scaling potential.
• COSME programme: support for the competitiveness of European SMEs, with financing instruments, market access and business support.

The parliamentary decision confirms that EISMEA executed its 2024 fiscal year budget without incurring serious irregularities. This formally closes the control cycle for that year and generates no new obligations for fund beneficiaries.

Economic and operational impact

For beneficiary companies, the impact of this decision is mainly one of legal certainty, not additional cost. Specifically:

• Closure of the control cycle: Financing files for the 2024 fiscal year are validated at the European parliamentary level. This reduces the risk of claims or retroactive reviews of those funds.
• No new obligations: The approval does not impose additional burdens on beneficiaries. There is no need to submit new documentation or carry out additional procedures as a direct consequence of this decision.
• Positive signal for future calls: Approval without objections strengthens EISMEA's credibility as a managing agency, providing stability to the EIC and COSME programmes for future calls.
• Accredited compliance: For companies that participated in internal audits or that need to accreditate to investors or partners that their European funds were managed correctly, this parliamentary decision is a top-level institutional endorsement.

Who does it affect?

• Spanish startups that received EIC (European Innovation Council) financing during the 2024 fiscal year.
• Innovative SMEs benefiting from COSME programme instruments in 2024.
• Research and development projects financed through EISMEA in that fiscal year.
• Financial managers and CFOs of companies with active European funds who need to confirm the control status of their files.
• Advisors and consultants who support companies in managing European funds and need to know the status of control cycles.

Practical example

Imagine a Spanish technology startup that in 2024 received an EIC Accelerator grant worth 1.5 million euros to develop an artificial intelligence solution applied to logistics. During that fiscal year, the company executed the budget, submitted the required reports and passed EISMEA's internal controls.

With the approval of management by the European Parliament — Decision (EU, Euratom) 2026/1570 — the external control cycle for that fiscal year is closed favourably. The startup can accreditate to its investors, partners or financing entities that the European funds received in 2024 were managed in accordance with European regulations, without serious observations from the EU's highest democratic control body.

It does not need to carry out any additional procedures as a consequence of this decision, but it is advisable to keep the file documentation for possible future audits of other fiscal years.

What should companies do now?

1. Verify if your company was a beneficiary of EISMEA in 2024: Check if you received EIC or COSME programme funds during that fiscal year. If so, this decision directly affects you and closes the control cycle for that year.
2. Keep the 2024 file documentation: Although there are no new obligations, keep all receipts, reports and communications related to the financing received archived. European documentation retention periods usually extend several years.
3. Communicate the validation to investors or partners if relevant: If you need to accreditate the correct management of European funds to third parties (investors, financing entities, strategic partners), this parliamentary approval is a solid argument.
4. Stay alert to upcoming EIC and COSME calls: Approval without objections of 2024 management reinforces the continuity and stability of these programmes. It is a good time to review whether your company can apply for new calls.
5. Consult with your advisor if you have doubts about open files from other fiscal years: This decision only closes the 2024 fiscal year. If you have active financing from other years, the control cycle for those fiscal years will continue its normal course.

Official source

Consult full regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601570