The European Court of Auditors has raised concerns over the EU’s new streamlined spending approach, which rewards reforms over reimbursing costs, potentially leading to double funding and misuse of EU funds. The auditors specifically highlighted issues with the €648 billion Recovery and Resilience Facility (RRF), criticizing the lack of financial safeguards and traceability of funds, making it difficult to detect duplication with other EU funding streams. They pointed to cases like Malta, where funds were received for reforms that were already supposed to have been implemented years ago.
The findings come at a crucial time as the EU plans wider reforms to its €1.2 trillion budget over the next seven years. The European Commission, however, has largely rejected the auditors’ concerns, stating that it is primarily up to member states to detect and prevent any duplication. The Commission disagreed with the higher risk of double funding with outcome-focused instruments like the RRF and stated that requesting extra checks on zero-cost measures was not aligned with the legislation.
Despite the Commission’s pushback, the Court of Auditors’ concerns continue to highlight the need for stronger financial safeguards and transparency in the EU’s spending programs. With the upcoming overhaul of the EU budget, the issue of potential double funding and misuse of funds remains a critical challenge that needs to be addressed to ensure the effective and efficient allocation of resources within the bloc.
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