The EU Court of Auditors analyses the roll-out of the pandemic exit plan to date. In its conclusions, there are multiple warnings and dangers: that countries have used only a third of the recovery plan funding by the end of 2023, that the capacity to absorb the funds is one of the main obstacles, that most countries are accumulating delays in the payment request and, no less importantly, that there is a risk that the measures will not be completed on time, before August 2026, and therefore before the finalization of the recovery plans.
In an analysis that extends to 2023, EU auditors found widespread delays in the disbursement of funds as well as in the implementation of projects included in the recovery plans. Although the allocation for the entire plan amounts to €724 billion, member states had used only one third of the funding by the end of 2023, date which marks the halfway point of a shock plan whose deployment will end in 2026.
Such delays jeopardise the achievement of the objectives of the pandemic exit plan and, despite member states’ efforts to make progress towards their targets, the auditors warn that it may not be possible to “exhaust or absorb” all the funding in time. as well as finalizing the planned measures before the end of the recovery plan in August 2026.
The report released on Monday highlights the danger that “not all planned measures will be completed on time.” By the end of 2023, there were presented 30% of the 6,000 milestones and objectives. However, the most difficult things remain to be done, since the reforms are part of the first half of the plans and the second half, which is coming now, involves more investments. Thus, she considers that this postponement of investments could further increase the delays and further slow down the absorption of Next Generation funds.
The head of the audit, EU Court of Auditors Member Ivana Maletic, stressed the importance for Member States to be able to manage the financing of the Next Generation funds: “We highlight the risks, as EU countries have used less than a third of the funds planned and have made less than 30% progress towards their pre-defined milestones and targets.
The analysis positively values the good execution of the included pre-financing, the first allocation that was transferred to the Member States at the start of the plan. However, the rate of use of the funds has since slowed down.
213 billion euros were transferred from Brussels to the countries, even if It is difficult for them to reach the end recipients. This is one of the main obstacles highlighted by the analysis of the Luxembourg-based organisation. “Almost half of the funds paid to the fifteen Member States that provided the information necessary for the analysis (including Spain) “they had not yet reached the final recipients”say the listeners.
Far from being an exception, delays in the timing of payment requests have become a widespread problem in all EU countries. Inflation or supply shortages have made this process difficult, but also lack of administrative capacity. For example, by the end of 2023, 70% of the planned applications had been submitted, 16% less than expected. Spain, for its part, did so at the limit of what was planned and requested this fourth payment a few days before the end of the year, although, between extensions and negotiations, the payment only took place this summer.
Spain is also one of the examples. which uses the document on measures that have been complicated by external circumstances. The auditors refer to the target of renovating 231,000 homes before the end of 2023, which has been delayed due to lower-than-expected demand due to inflation and the surge in raw materials.
