European auditors notify the lack of costs on costs to evaluate the recovery fund Economy
The EU Court of Auditors warns that The recovery fund I suffer from lack of quality in your data and also information on real costs. “The information is based on estimated costs or unit values rather than on real costs and the (European) commission carries out only probability basic patches”, explains the auditors of the report published on Tuesday on the fund as a contribution to the debate on the next Union budget, which is currently being prepared. According to this control bodyThe lack makes it difficult to evaluate an extraordinary program that has been approved with unusual management in European institutions.
The recovery fund was an extraordinary tool to revive the economyMainly of the most punished countries of pandemic, such as Spain and Italy, which in the end amounted to 650,000 million euros to invest before August 31 2026. To accelerate its management, the money delivery system was adopted on the basis of the results and not to costs, which is more common but usually requires enough bureaucratic efforts. “However, the financing not connected to the costs not converted MRR into a performance -based tool. We consider that MRR (recovery and resilience mechanism, official name) is not a performance based on performance, since it focuses on progress in the execution and not on performance”, underline the auditors.
Both the report of this budget control body, based in Luxembourg, and its authors in appearance before the press, have placed a lot of emphasis on data as a need to evaluate the performance of the fund’s investment. “How to make the calculation without cost data? How to know the impact?” Jorg K. Petrovic, Analysis co -uthor wondered.
“EU’s political leaders must extract Mrr lessons and do not allow a similar tool in the future without having information on real costs, the final recipients and a clear answer to the question of what citizens really get their money”, abounds the other writer of the document, Ivana Maletic.
Given these conclusions, the report contains a series of recommendations that should be part of the debate that is currently taking place on the new multiannual budget framework of the European Union, whose first project will present next summer. Therefore, they include suggestions “for future (financial) tools based on the performance” of the investments. One of these is that “the orientation to services does not simply consist in the specific payment conditions, such as milestones and objectives, but includes all the elements necessary to evaluate efficiency and efficiency, including information on real costs”.
In addition to these warnings, the Court of Auditors underlines that despite the changes they have made to accelerate payments for payments by Member States and Fire States “Execution faces delays”. “Most of the MRR measures must end no later than the period of execution of the Mrr. This can be further complicated by the fact that the subsequent stages of the execution, and in particular the completion of a measure, usually present greater difficulties than the previous ones”, abound.
The auditors echoed in their document on the increase in costs in financing the recovery fund. To pay it, the 27 decided to issue debt. “The Commission has quickly and satisfactorily established a mechanism to raise funds,” recognize. The price of these emissions of European bonds was low at the beginning because expansive monetary policy aimed to combat the crisis caused by the highly reduced interest rates of the pandemic. But the stage has changed radically when gas prices have started to collect and Russia invaded Ukraine. This caused an inflationary crisis that ended up forcing the European Central Bank to increase interest rates. This ended up making the debt more expensive and, by extension, the cost of financing the fund. And this, as underlined to the auditors’ court, will exert a pressure on the EU’s future budgets and the loan through loans generates further risks “. “Nextgeneu loans can be duplicated by 2026, while the reimbursement of these funds has been referred to future multiannual financial paintings,” hit.
A surprising detail that stands out from Luxembourg is what will happen in the future with the reforms that Member States have distributed to receive money from the bottom. “The regulation establishes that the corrective measures for revocation can only be carried out until 31 December 2026, the date on which the Commission will pay the latest payment requests. The regulation does not specify the consequences of a possible revocation after the evaluation of the final payment application”, explain. That is, there is no legal way for Brussels to ask the capital to return the money if the government or Parliament revokes what is done.
