REACT-EU recovery funding: tension between swift support and value for money

Met dank overgenomen van Europese Rekenkamer i, gepubliceerd op dinsdag 14 juli 2020, 8:00.

The European Commission’s REACT-EU proposal to top up cohesion funding for EU countries by €58 billion in the crucial first few years of the Covid-19 recovery aims to mobilise investment and frontload financial support. In a new opinion published today, the European Court of Auditors i (ECA) points out a tension between the proposal’s aim of providing the extra funding as swiftly as possible and the goal of making it available where it is needed most and will have most effect. The auditors also warn that the crisis response mechanisms the Commission is proposing for the next seven-year budget lack provisions conducive to the sound financial management of EU funds.

The EU has put forward a €750 billion package known as ‘Next Generation EU’ to support Member States in their efforts to minimise the socioeconomic impact of the pandemic and get back on a path of sustainable growth. The package includes the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU), as part of the 2014-2020 budget period, intended to lay the groundwork for the EU’s recovery in 2020-2022. In addition, the Commission proposed new rules for the European Structural and Investment (ESI) funds in the 2021-2027 budget period, which aim to provide mechanisms that can be triggered quickly in the event of further shocks in the coming years. The auditors assessed both of these proposals.

After the Covid-19 outbreak, the Commission took action on a number of fronts, including quickly mobilising additional funds and proposing new funding rules,” said Iliana Ivanova i, the ECA Member responsible for the opinion. “These measures are welcome, but need to be well coordinated at EU and national levels to be effective.

Press Release: REACT-EU recovery funding: tension between swift support and value for money, say Auditors