The European Court of Auditors (ECA) expressed concerns over the insufficient execution levels of the Recovery and Resilience Facility (RRF) funds, with only about 50% executed so far. This raises doubts about the program’s completion by the 2026 deadline, noted João Leão, the Portuguese member of the ECA.
As the ECA’s annual report on EU finances was released, Leão, a former Portuguese Finance Minister, remarked that the execution of the long-term EU budget is also significantly below that of previous frameworks.
“At this stage, we highlight the relatively low execution of the RRF at the European level,” he stated.
Additionally, Leão emphasized the significant increase in EU debt, as expected due to the RRF’s implementation.
According to the report, EU debt could exceed €900 billion by 2027, nearly ten times the 2020 level, before the RRF was introduced to address the economic impacts of the COVID-19 pandemic. The RRF was established in 2021, amounting to €800 billion at current prices.
By 2024, EU debt reached €600 billion, more than doubling in three years, primarily due to the RRF.
The report also indicates that the total interest payable during the current budgetary period could surpass €30 billion, more than double the initial European Commission forecast of €14.9 billion.
Interest payments in the next budgetary frame, from 2028 to 2034, are projected to reach nearly €74 billion.
“The Union must effectively address the challenges posed by the increased debt level by establishing a clear repayment plan, specifying the reimbursement sources to prevent limitations on the Union’s budget for its functions,” advised Leão.
The ECA noted that six out of the 28 RRF payments made last year, totaling €59.9 billion, did not comply with the required rules and conditions, and two milestones await a verdict from the EU Court of Justice, resulting in a qualified opinion.
There are also instances where milestones and targets were poorly conceived, or where countries provided unreliable information in their management declarations.
Annually, the ECA audits the Union’s revenues and expenditures, ensuring the reliability of the annual accounts and compliance of revenue and expenditure operations with the rules.
