EU Audit Authority: Delay in Disbursing Coronavirus Aid
Europe introduced the COVID-19 relief fund in 2021 to cope with the pandemic's fallout. The main feature is the Recovery and Resilience Facility (RRF), worth a staggering 724 billion euros. This fund aids EU states in investing in emerging green technologies and digital advancements. However, there's a catch - these funds must be utilized by August 2026 and come with various conditions.
Two years prior to the deadline, EU nations had only utilized around a third of the allocated funds and achieved just 30% of their set objectives, as per auditor Ivana Maletic. The Commission reported that 225 billion euros had been distributed by February.
Maletic also noted that a substantial portion of the funds is allocated to impracticable measures. Delays indicate that projects like Italy's hydrogen initiatives or Romania's flood protection plans might not be completed by the stated timeline. Unfortunately, the EU Commission cannot reclaim disbursed funds, as this isn't an option provided by the regulations.
The EU aid fund primarily stems from French President Emmanuel Macron's initiative, with former German Chancellor Angela Merkel (CDU) eventually backing it. The EU Commission secures the billions through borrowing on the capital market and then disperses them to member states in the form of grants or loans.
The European Commission, overseeing the distribution of the COVID-19 relief fund, reported that 225 billion euros had been disbursed by February. Despite delays in many projects, the Commission cannot reclaim disbursed funds due to the regulations in place.
