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European Court of Auditors: Delay in Corona Recovery Fund

by AI | 03.Sep 2024 | Europe in brief AI

The European Court of Auditors is concerned that the funds of the Corona Recovery Fund are not being utilized quickly enough. Reforms and investments that should have been supported with the money may not be implemented or may be implemented late. The goals of the fund would thus be in jeopardy.

Archive image - By the middle of the term at the end of 2023, however, the EU countries would have taken up less than a third of the funds from the recovery fund. EFE/EPA/Olivier Hoslet/Archive

EU-wide/Brussels – The Recovery and Resilience Facility (RRF) of the European Union (EU), launched in 2021, was intended to boost the economy in EU member states after the coronavirus pandemic and promote important investments and reforms for the future. However, there are significant delays in implementation, criticizes the European Court of Auditors (ECA), based in Luxembourg, in a report published on Monday. The goals of the Recovery Fund would thus be at risk.

The RRF’s term ends in August 2026. Until then, EU states can receive money from the fund, but in return, they must implement the reforms and investment projects agreed upon in advance with the European Commission. By mid-2023, only less than a third of the funds from the Recovery Fund had been used by EU countries, and less than 30 percent of the milestones had been reached, according to the auditors. A similar situation exists in Austria: By the end of 2023, the country had applied for only 23 percent of the funds earmarked for the Alpine republic and had met only 44 of the total 171 milestones and targets.

“It is of utmost importance that the RRF funds are used in a timely manner. This will avoid bottlenecks in the implementation of measures towards the end of the facility’s term, which in turn reduces the risk of inefficient and flawed expenditures,” said Ivana Maletić, the member of the Court of Auditors responsible for the audit, in a press release.

The reasons for the delay vary from country to country. These include “inflation or supply shortages, uncertainties in environmental regulations, and insufficient administrative capacities.” Both the Commission and the Member States have meanwhile taken measures to address the issue, “but it is still too early to assess whether they will have a positive impact,” the report says. (02.09.2024)