Member States will have to “take all necessary measures to protect the financial interests of the European Union”, whether they receive grants and/or loans under the Recovery and Resilience Facility, the budgetary instrument at the heart of the European Recovery Plan (see EUROPE 12554/3).
This is the main change (Article 19a) introduced in the third compromise proposal on the regulation establishing the Facility, which the German Presidency of the EU Council transmitted to the national delegations on Thursday 10 September, a copy of which was obtained by EUROPE.
Member States would be required to regularly monitor the proper use of the European financial aid that the European Commission will raise on the markets on behalf of the EU27, as well as compliance with EU law for planned investment projects and reforms. In the event that fraud and/or a conflict of interest is detected, they will have to initiate legal proceedings to recover the funds concerned.
For each payment request addressed to the Commission for the implementation of a national recovery plan, a Member State will also have to provide information at the European level of the audits that are carried out and compile data allowing the recipients of financial assistance to be identified.
Finally, the Commission, OLAF, the European Public Prosecutor’s Office, and the European Court of Auditors will have to be allowed to exercise their powers to protect the EU’s financial interests.
In parallel, negotiations between the European Parliament and the EU Council on the 2021-2027 Multiannual Financial Framework (MFF) also provide for the establishment of a link between EU financial support and respect for the Rule of law (see EUROPE 12558/5).
The Commission is expected to present a communication on the implementation of the Facility on Tuesday 15 September. The goal is to provide guidance to help Member States in the preparation of their national recovery plans. The first drafts of these plans are expected in mid-October, for formal approval in early 2021, so that European financial support can be disbursed as soon as possible. (Original version in French by Mathieu Bion)