In a report published on Tuesday 24 October, the European Court of Auditors (ECA) identified “weaknesses” in the system for monitoring the implementation of the Recovery and Resilience Facility (RRF), which limit the European Commission’s ability to measure the overall performance of the Next Generation EU Recovery Plan.
“European citizens need to know how their money is being spent”, said Ivana Maletić, the member of the Court responsible for the report, pointing out that the RRF was the largest European fund, with more than €700 billion to be spent between now and 2026.
Ms Maletić identified several elements of the mechanism for monitoring Member States’ post-Covid-19 recovery plans that do not allow for an assessment of how well the RRF is meeting its main objectives, particularly climate and social objectives.
With regard to the milestones and targets included in the national plans, the achievement of which triggers the payment of aid, she indicated that these corresponded more to “stages of implementation” (e.g. number of training courses organised, number of m² renovated or number of electric vehicles purchased) than to a “measurement of results” (e.g. number of people finding employment, energy savings achieved or amount of CO2 not emitted into the atmosphere).
The European auditor also pointed out that certain major reforms, such as those of the labour market or the judicial system in a Member State, and certain investments in public transport infrastructure are not linked to the list of fourteen common indicators used to monitor progress in achieving the cross-cutting objectives of the RRF. Furthermore, the Court points out that there are no indicators covering areas such as the rule of law or the financial sector.
While Member States generally have adequate reporting mechanisms in place, the EU institution has nevertheless identified shortcomings, particularly in terms of the transparency of beneficiaries of European aid. Although the change in EU law introduced the obligation for each Member State to publish a list of the top 100 beneficiaries of a national recovery plan, we should all know who they are, said Ms Maletić. On the subject of reporting, she praised the example of Portugal, which has specifically set up an automatic data feedback mechanism starting at a local level.
The Commission, which has taken on board some of the Court’s recommendations, has also pointed out that it is difficult to measure the performance of a financial instrument during its lifetime, as the true impact of the RRF can be assessed only a posteriori.
To view the European Court of Auditors’ report, go to https://aeur.eu/f/98e (Original version in French by Mathieu Bion)