European auditors said Wednesday that they are unable to clearly trace the spending of billions of euros from a massive fund designed to help European Union countries recover from the COVID-19 pandemic. The Recovery and Resilience Facility (RRF), established in 2020, provided grants and loans to member states as they faced lockdowns, border closures, and vaccine shortages during the deepest recession in the bloc's history.
Funding Reaches €577 Billion
By January 2026, the fund had disbursed an estimated €577 billion ($679 billion). However, a new report from the European Court of Auditors highlights significant difficulties in tracking how countries allocated portions of this money. Thousands of recipients, including many businesses and large consortia, remain unidentified.
"Without this information, we cannot assess whether funds are fairly distributed, whether risks of concentration exist, or whether EU money delivers value for citizens," said Ivana Maletić, the court member leading the audit. "Transparency is not a technical issue. It is a core condition for trust and accountability."
How the Fund Works
The European Commission raised the money by issuing euro bonds and disbursed it for projects aimed at making economies more sustainable, environmentally friendly, and digital. Unlike previous procedures where funds were based on project costs, RRF grants and loans were tied to specific conditions and milestones. National governments are also required to publish their top 100 beneficiaries.
Yet auditors found that in the 10 EU countries examined, the top 100 beneficiaries were almost exclusively national ministries, agencies, and local or regional governments. Almost no public information is available about private sector recipients. Maletić noted that EU lawmakers investigating potential misuse regularly request information about transfers to companies, but such data is not accessible.
Challenges in France and Elsewhere
The auditors struggled particularly to obtain details about recipients in France. French authorities claimed it was "too administratively burdensome to obtain information on final recipients and amounts paid, even upon request," according to the report. "You can imagine in France we have thousands and thousands of recipients," Maletić added.
Cases of misuse have already emerged. Two years ago, police in Italy, Austria, Romania, and Slovakia arrested 22 people suspected of siphoning €600 million ($700 million) in post-pandemic relief funds.
Commission Defends System
The European Commission dismissed the auditors' concerns, arguing that the rules governing the fund were agreed upon by all 27 member states. It defended the conditions-based approach, stating that the system of payment requests, progress reports, and ongoing engagement with member countries is working effectively.
However, auditors worry that this model could be applied to the EU's next long-term budget (2028–2034), potentially totaling €2 trillion ($2.4 trillion), for areas like farm subsidies or infrastructure aid. Maletić criticized the milestones system as "not clear" and unsuitable for traditional policies. The Commission responded that future legislative proposals are a matter for member states and the European Parliament.
