The European Court of Auditors (ECA) has highlighted concerns over the slow progress of the EU’s €724bn post-Covid recovery fund in a recent report. Member states have utilized less than a third of the total grants and loans allocated, with some countries like Belgium, Finland, Hungary, Ireland, the Netherlands, Poland, and Sweden not receiving any funds by the end of 2023. Delays in payment requests have been attributed to various factors such as political instability, uncertainty over rules, and national administrative capacity.
The Netherlands, Hungary, and Sweden faced particular challenges in accessing the funds, with issues ranging from lack of political consensus to non-compliance with required milestones. The ECA emphasized the importance of timely absorption of the Recovery and Resilience Plan to avoid inefficiencies and ensure that commitments are met. However, member states are falling behind in completing the necessary reforms and investments within the specified timeframe.
As the implementation period for the post-pandemic funds is set to expire in 2026, the ECA is calling on the European Commission to provide additional support to strengthen the design of future funding programs. Despite concerns that funds could be disbursed for incomplete actions, the Commission has rejected suggestions to halt funding and recover transfers. Overall, there is a need for greater efficiency and accountability in the management of the EU’s recovery fund to maximize its impact and prevent wastage of resources.
