European auditors have raised concerns that billions of euros from the EU's post-pandemic recovery fund cannot be clearly traced, undermining transparency and accountability. The Recovery and Resilience Facility (RRF), established in 2020 to help member states rebuild their economies, has disbursed an estimated €577 billion by January this year.
In a report published on Wednesday, the European Court of Auditors said that thousands of recipients, including many businesses and large consortia, are not identified. Ivana Maletić, the court member who led the audit, stated: 'Without this information, we cannot assess whether funds are fairly distributed, whether risks of concentration exist, whether EU money delivers value for citizens.' She added that transparency is 'a core condition for trust and accountability.'
The auditors examined ten EU countries and found that the top 100 beneficiaries were almost exclusively national ministries, agencies, and local or regional governments. Almost no public information is available about private sector recipients. Maletić noted that EU lawmakers investigating potential misuse regularly request details about transfers to companies, but such information is not available.
The auditors struggled particularly to obtain details about recipients in France, where authorities said it was 'too administratively burdensome' to provide information on final recipients and amounts paid, even upon request. Cases of misuse have already emerged; two years ago, police in Italy, Austria, Romania, and Slovakia arrested 22 people suspected of siphoning €600 million in post-pandemic relief funds.
The European Commission defended the fund's management, arguing that its hands are tied by rules agreed by member states. It highlighted the use of conditions and milestones for receiving funds, and said its system of payment requests, progress reports, and engagement with countries is working. However, auditors worry that the conditions-based approach could be extended to the EU's next long-term budget, from 2028 to 2034, potentially worth around €2 trillion.
Maletić criticised the milestones system as unclear, saying it 'essentially boils down to just a number of people getting different amounts' and cannot be applied to traditional policies. The Commission dismissed these concerns, stating that the design of future legislative proposals is up to member states and the European Parliament.
