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EU Auditors Criticize Recovery Fund as Commission Proposes New Debt Plan

The European Court of Auditors warns against repeating the 650 billion euro COVID recovery fund model, citing transparency and performance issues, while the EU Commission signals plans for further debt issuance.

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Eine Person in der roten Jacke des Roten Kreuzes steht vor Menschen, die auf einem Gehweg sitzen, es liegt Schnee

Overview

  • The European Court of Auditors has highlighted significant flaws in the EU's 650 billion euro COVID recovery fund, including poor transparency, unmet milestones, and weak oversight.
  • Auditors report that 72% of the fund's milestones remain unachieved, with unclear cost reporting and no assurance that funds reached intended beneficiaries.
  • The fund, financed entirely through EU debt issuance, played a critical role in pandemic recovery but left citizens without clarity on its true costs or outcomes.
  • The auditors formally recommend against replicating the fund in its current form, emphasizing the need for stronger governance and accountability mechanisms.
  • Despite these findings, the EU Commission plans to borrow 150 billion euros for defense spending, bypassing parliamentary oversight, raising further concerns about transparency and accountability.