The bulk of the subsidy cost of European Communities (EC) credit programs is not represented in the EC budget. The cost of EC loans and guarantees are not shown, and only token entries are included for the possible activation of guarantees connected to borrowing and lending. Only in the case of credit programs which entail an interest‐rate subsidy, does the budget show an amount corresponding to the subsidy cost. EC budgeting and accounting methods, like those in most member states, hide the full cost of the EC credit programs. The lack of subsidy disclosure has political implications in terms of budget decision‐making and control; budget authorities have neither adequate information to compare the trade‐offs among the various credit assistance programs and other expenditure programs, nor to evaluate or measure the efficiency and effectiveness of credit operations. Moreover, the citizens of Europe, who are taxpayers both in their states and, to a lesser extent, in the Community, do not have a clear understanding of the costs and benefits of credit programs, either at the state or the EC level. The article refers to the US experience of federal credit reform, especially with regard to the disclosure of the cost of credit programs, as a good example of budget transparency and investigates to what extent this experience could be applied to the European Commun