EU Auditors Can't Trace Billions in Recovery Funds

European auditors reported Wednesday that they cannot clearly trace billions of euros disbursed from a major fund designed to aid European Union countries in recovering from the COVID-19 pandemic.

The Recovery and Resilience Facility, established in 2020, provides grants and loans totaling an estimated 577 billion euros as of January this year. The program emerged as the 27 member states closed borders, imposed lockdowns and accelerated vaccine rollouts amid the bloc's deepest recession on record. Funds, raised by the European Commission through capital market borrowing, support projects promoting sustainability, environmental goals and digital innovation. Unlike past practices, payments are released only after recipients meet specific conditions and milestones.

A new report from the European Court of Auditors highlighted significant tracking difficulties across member states. Thousands of recipients, including businesses and large consortia, remain unidentified, the auditors found after reviewing 10 countries. National governments are required to publicly list their top 100 beneficiaries, yet those lists consist almost entirely of ministries, agencies and local or regional...