EU watchdog: Not enough safeguards on pandemic recovery fund – By Raf Casert (Associated Press) / Mar 8, 2023
BRUSSELS (AP) — Insufficient checks and safeguards on how EU member countries spend a massive aid program designed to help them bounce back from the crisis caused by the COVID-19 pandemic are creating possibilities for fraud and mismanagement, the bloc’s financial watchdog warned on Wednesday.
The European Court of Auditors warned of an “accountability gap in protecting the European Union’s financial interests” as the 27 member states use 724 billion euros ($763 billion) to reinvigorate their economies, which took the biggest hit since World War II during the coronavirus crisis.
“With such large amounts at stake, it’s imperative that EU taxpayers’ money is adequately protected,” ECA President Tony Murphy said.
Member states have to set up strict plans on how to use the funds and target future-oriented sectors promoting the green and digital transition of their economies, amongst others. The ECA however laid bare how such targets and milestones of the program should be better checked by the EU’s executive Commission, especially once they are rolled out. So far about 20% of the grants and loan program have been paid out.
