There has been a sustained improvement in the estimated level of error in payments from the EU budget, the latest annual report from the European Court of Auditors shows.
The report shows that about half of EU spending audited in 2016 was below the 2% threshold for material level of error.
As a result, the auditors have issued a "qualified opinion" on 2016 payments, rather than an "adverse one".
This marks the first qualified opinion since the auditors began to provide an annual statement of assurance in 1994.
The auditors have also given a clean opinion on the 2016 EU accounts' reliability, and have "signed them off", as has been the case every year since 2007.
The overall level of error for EU spending in 2016 was estimated at 3.1%, compared with 3.8% in 2015 and 4.4% in 2014.
"This year's qualified opinion reflects an important improvement in EU finances," Klaus-Heiner Lehne, the President of the European Court of Auditors said.
"Going forward, we will take a fresh look at how we audit the EU budget. We will take greater account of internal controls at the European Commission and in the member states, so we can better promote accountability and further improve the management of EU finances," he said.
"We will also increase our focus on performance to ensure EU citizens get value for their money," he added.
