MNI BRIEF: EU Auditors Warn On NGEU Absorption Delays

MNI (BRUSSELS) - The EU’s Court of Auditors has criticised the slow absorption rate of funds disbursed to member states under the NGEU post pandemic instrument, noting that the at the end of last year only €213bn had been transferred to states and data showed only half of that had reached final recipients, with a risk that not all planned measures will be completed in time.

“We are flagging risks, as EU countries had drawn down less than a third of the planned funds at the halfway point and made less than 30% progress towards reaching their pre-defined milestones and targets,” the report said.

Most countries experienced delays in submitting payment requests to the Commission, with states citing inflation or supply shortages, uncertainty about environmental rules, and insufficient administrative capacity, the Auditors' report said. By the end of 2023, less than 30% of over 6,000 milestones and targets were presented for payment.