EU auditors sound alarm over billions in COVID recovery funds that can’t be clearly traced
Auditors said thousands of recipients are unidentified, with almost no public information on private-sector beneficiaries and top beneficiary lists dominated by public bodies.
- On Wednesday, auditors reported they cannot clearly trace how countries spent portions of the €577 billion pandemic recovery fund, with thousands of recipients remaining unidentified.
- Established in 2020 during COVID-19, the Recovery and Resilience Facility distributes funds based on 'milestones' rather than project costs, a break from traditional spending procedures.
- Police in Italy, Austria, Romania, and Slovakia arrested 22 people two years ago for suspected siphoning of €600 million in relief funds, while French authorities claimed gathering recipient data was 'too administratively burdensome.'
- The European Commission defended its system of progress reports and 'engagement' with member countries to 'address inconsistencies,' arguing the oversight mechanisms are working across the 27 members.
- Auditors worry the conditions-based approach could extend to the next 7-year spending package, which could total around 2 trillion euros as the European Parliament weighs future legislative proposals.
34 Articles
34 Articles
The European Court of Auditors deplores a lack of transparency in the use of funds from a billion-dollar Corona reconstruction fund.
European Union auditors said on Wednesday that they are unable to clearly monitor how billions of euros are being spent from a huge fund helping EU countries rebuild their economies from the damage caused by the Covid-19 pandemic.
The main fund of the European Union (EU) for the recovery of the pandemic (the Recovery and Resilience Mechanism, or MRR) has shortcomings in the transparency and tracking of money. The alert is given by a new report from the European Court of Auditors (ECA), which also points to the fact that there is not enough information about who receives the money, the actual cost of the projects and the results achieved. The European Union auditor's criti…
The auditors report that "public information on the recipients of the money, the actual costs of the measures and the results achieved is insufficient" for all the countries examined.More information: Brussels questions the government about why it used 'Next Generation' funds to pay pensions in 2024
With a rescue fund, the EU Commission wanted to support the recession-stricken economy in the state federation during the Corona period. Where the money went is uncertain.
The EU fund for recovery following the VOCID-19 pandemic, also known as the Recovery and Resilience Mechanism (RRM), is affected by an insufficient level of traceability and transparency of expenditure, shows a new report from the European Court of Auditors (ECA), consulted by Agerpres.
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