The European Union’s post-COVID recovery fund, worth 650 billion euros, remains vulnerable to fraud. A recent report by the European Court of Auditors highlights gaps in the detection, reporting, and recovery of misused funds.
The Recovery and Resilience Facility (RRF), created in February 2021 to help EU countries revive their economies after the pandemic, still shows systemic weaknesses. Misused funds are not always returned to the EU budget, exposing European finances to risk.
According to the report, “Member States must recover funds misused by final recipients but are not required to return them to the EU. European finances are therefore less protected than they could be.” The Court emphasizes that both the European Commission and Member States share responsibility for combating fraud.
Katarína Kaszasová, the auditor in charge of the report, said the EU and its Member States should have implemented stronger anti-fraud systems. The RRF remains vulnerable due to gaps in recovery rules, incomplete data, and reporting challenges.
The report also notes that EU rules on national anti-fraud systems are too general. Although Brussels strengthened requirements in bilateral funding agreements, national controls remain insufficiently detailed.
Member States have taken preventive measures, often with delay. The lack of complete data makes it harder for the Commission to monitor and target anti-fraud actions. Unlike other EU programs, countries are not obliged to return recovered funds to the EU budget unless the Commission intervenes directly.
The end of the RRF, scheduled for this year, could worsen the situation. The current mechanism for reporting fraud and fund recovery will disappear, delaying corrections, while major investments are expected in the final months of the program, auditors warn.
