EU auditors warn of bloc's pandemic recovery fund delays

BRUSSELS

Billions of euros available for EU states to boost their economies hit hard by the coronavirus pandemic are not reaching citizens and businesses fast enough, the bloc's spending watchdog has warned.

The European Union established the 800-billion-euro ($900 billion) fund, known as the Recovery and Resilience Facility (RRF), during the pandemic, financed in large part through common EU borrowing.

"The first three years of the EU's... RRF have seen delays in funds being disbursed and projects being implemented," the European Court of Auditors (ECA) said.

EU countries had drawn down less than a third of the planned recovery funds at the end of 2023, the auditors said.

"This put at risk the achievement of goals for helping EU countries recover from the COVID-19 pandemic and making them more resilient," it added.

The bloc agreed on the unprecedented mechanism in July 2020 after bitter negotiations in the face of opposition from frugal countries led by The Netherlands.

To get the money, the 27 member states had to submit national investment plans linked to structural reforms. Money would then be disbursed by the commission if the countries achieved certain objectives.

The complex process to obtain the funding is causing delays.

"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," they said.