Luxembourg, 2 September 2024
- By the end of 2023, EU countries had drawn down less than a third of the planned EU COVID-19 recovery funds
- Only around half of the money transferred from Brussels to national capitals reportedly reached final recipients
- Auditors flag risks of funding absorption slowing further and projects not being completed as planned
The first three years of the EU’s€724 billion Recovery and Resilience Facility (RRF) have seen delays in funds being disbursed and projects being implemented. This put at risk the achievement of goals for helping EU countries recover from the COVID-19 pandemic and making them more resilient, according to a report by the European Court of Auditors. Even though the rate of payments from the European Commission is progressing, member states might not be able to draw down or absorb the funds in time, complete their planned measures before the RRF expires in August 2026, and thus gain the expected economic and social benefits.
Established in February 2021, the RRF finances reforms and investments in EU countries, starting with the onset of the pandemic in February 2020 and ending in August 2026. It centres on six priority areas, including the green transition and digital transformation. Countries can receive the money based on the progress they make.
“Timely absorption of the RRF is essential: it helps to avoid bottlenecks in carrying out the measures towards the end of the Facility’s lifespan, and reduces the risk of inefficient and erroneous spending,” said Ivana Maletić, the ECAMember in charge of the audit. “We are flagging risks, as EU countries had drawn down less than a third of the planned funds at the halfway point and made less than 30 % progress towards reaching their pre-defined milestones and targets.”
On a positive note, pre-financing of up to 13 % of the amount the member states could receive allowed more funds to be paid out quickly at the start, which was in line with the goal of responding to the crises. However, the auditors are critical of the pace at which the bulk of the funds have being drawn down since. By the end of 2023, only €213 billion had been transferred from the Commission to national coffers. These funds have not necessarily reached final recipients, including private businesses, public energy companies, and schools. In fact, almost half of the RRF funds disbursed to the 15 member states that provided the necessary information had not yet reached final recipients.
Almost all countries experienced delays in submitting payment requests to the Commission, often because of inflation or supply shortages, uncertainty about environmental rules, and insufficient administrative capacity. By the end of 2023, they had submitted 70 % of their planned requests, and for around 16 % less money than expected; for different reasons, seven countries had not received any funds for the satisfactory fulfilment of milestones and targets.The Commission and member states took action, particularly in 2023, to facilitate absorption, though it is too early to assess any impact.
There is a risk that not all planned measures will be completed in time. By the end of 2023, less than 30 % of the total of over 6 000 milestones and targets (i.e. indicators of progress) were presented for payment, meaning that a significant number – possibly the most difficult ones – are yet to be fulfilled. Most countries frontloaded reforms before proceeding with investments. However, backloading investments is likely to increase delays further and slow down absorption.
Lastly, disbursements do not necessarily reflect the quantity and importance of the milestones and targets, meaning that significant funds could be paid without member states completing the corresponding measures. The auditors stress that the rules make no provision for recovering funds when milestones and targets are fulfilled, but measures are ultimately not completed.
Background information
The RRF is a novel funding mechanism that is not based on actual costs incurred. The Commission implements it under direct management, and bears ultimate responsibility. The RRF had a maximum total value of €723.8 billion, including up to €338 billion in grants and up to €385.8 billion in loans. By the end of 2023, the Commission had committed €648 billion in grants and loans to all 27 member states. The auditors define absorption as EU funding paid out by the Commission to the member states as beneficiaries and borrowers. They carried out on-the-spot visits to four countries: Spain, Italy, Slovakia, Romania.
Special report 13/2024, “Absorption of funds from the Recovery and Resilience Facility: progressing with delays and risks remain regarding the completion of measures and therefore the achievement of RRF objectives”, is available on theECA website. The ECA has previously issuedseveral reportson the RRF and the NextGenerationEU funds.
Read the report of the EU Auditors
Read the replies of the EU Commission
Related links
Europa-Abgeordneter Markus Ferber (CSU) zum Aufbaufonds: keine Blaupause für die Zukunft
„Der Rechnungshofbericht zieht ein ernüchterndes Fazit: Zielmarken werden oft nicht erreicht, der Mittelabruf ist schleppend und die Kontrolle gestaltet sich schwierig. Der Bericht zeigt, dass der schuldenfinanzierte RRF keine Blaupause für die Zukunft sein kann“, so der CSU-Europaabgeordnete und wirtschaftspolitische Sprecher der EVP-Fraktion, Markus Ferber, anlässlich des heute vom Europäischen Rechnungshof vorgestellten Sonderberichts zum Abruf der Mittel aus der sogenannten Aufbau- und Resilienzfazilität.
Mangel an administrativen Kapazitäten
Ferber erkennt bei den Befunden des Rechnungshofs auch bekannte Probleme aus der Kohäsionspolitik wieder: „Es zeigt sich einmal mehr, dass viele Mitgliedstaaten schlichtweg nicht die administrativen Ressourcen haben, um einen derartigen Mittelzufluss adäquat und fristgerecht zu managen. Das zeigt auch, dass eine gute Wirtschaftspolitik eben doch mehr beinhaltet, als massive schuldenfinanzierte Investitionsprogramme aufzulegen.“
Keine Blaupause für die Zukunft
Angesichts der immer wieder aufkommenden Diskussionen um ein Folgeprogramm oder einen neuen europäischen Investitionsfonds für die grüne Transformation ist für Ferber klar: „Der RRF ist kein Modell für die Zukunft. Die Probleme beim – vom Mittelabruf bis zur Nachvollziehbarkeit der Ausgaben – sind offenkundig, ob es wirklich einen Mehrwert gab, ist hingegen viel weniger klar. In Zukunft sollte die EU von schuldenfinanzierten Programmen Abstand nehmen.“
Neben den vom Rechnungshof monierten Aspekten ist für den CSU-Finanzexperten auch immer noch die Finanzierungsfrage ein offenes Problem. „Die Frage der Refinanzierung schwebt noch immer wie ein Damoklesschwert über dem Aufbaufonds und dem EU-Haushalt. Das Versprechen, dass die Rückzahlung der Schulden über neue Eigenmittel finanziert würden, wurde bislang nicht eingelöst. Wenn die Mitgliedstaaten hier nicht bald eine Einigung finden, wird der Schuldendienst zu einer erheblichen Belastung für den EU-Haushalt.“
Quelle: Markus Ferber (per E-Mail)