In a report published on Thursday 12 April, the European Court of Auditors indicated that a large number of projects supporting productive entrepreneurial investments, financed by the European Regional Development Fund (ERDF) between 2000 and 2013 were unsustainable.
The ERDF finances investment in capital or assets in Europe as a means of supporting job creation and the economy at local and regional levels. More than €75 billion has focused on this objective between the 2000 and 2003 period and more than €68 billion is planned for this purpose for the 2014-20 period.
EU auditors concluded that around a fifth of projects have not lasted after financing has been completed and even worse, they were unable to calculate the sustainability of almost half of the projects due to the lack of data.
The Court of Auditors acknowledges that the situation is partly due to the economic crisis as well as the lack of attention on “the sustainability of aid management", particularly at a strategic planning stage. The European auditors also highlight the defective project selection procedures, as well as a deficit in the follow-up and elaboration of the reports. The Court also registered “several applications with incoherent corrective measures" from the competent authorities when the objectives were not reached.
The Court is therefore recommending that the member states focus on risk reduction by improving the analysis of businesses' requirements. It is suggesting that the selection procedures and criteria are improved, as well as the drafting of the evaluation reports. With regard to the Commission, the auditors consider that it should deepen its analysis of the processes for approving operational programmes and attempt to ensure that the member states “coherently” apply the corrective measures, particularly with regard to recovery issues. (Original version in French by Pascal Hansens)