Parliamentary question

Written question to the European Commission

​NextGenerationEU is a unique opportunity for Europe to cope with the COVID-19 pandemic while also transforming our economies through strategic investments. As the Commission reviews national recovery plans, there are growing concerns over the potential lack of transparency and fairness in the allocation of these funds. In Poland, for example, there is criticism of the controversial allocation of the Central Government Fund for Local Investments, initiated by the government to lend support to local authorities. Academic studiesshow that a very generous portion of funding under this programme was allocated to mayors and local authority representatives from the Prawo i Sprawiedliwość party and from the Prime Minister’s constituency. The committee in charge of evaluating applications was nominated by the Prime Minister, who ultimately grants the funds. Similar concerns have also been expressed in other Member States, as well as concerns over the potential lack of access for local authorities to EU funds.

1. Is the Commission aware of such shortcomings?

2. How is it assessing the potential risks while reviewing national recovery plans in the framework of NextGenerationEU, and what are the safeguards to ensure transparency and fairness in the allocation of funds?

3. Has the Commission already identified gaps in the plans submitted, and if so, what were they, and in which Member States?

Answer given by Executive Vice-President Dombrovskis on behalf of the European Commission

The control framework of the Recovery and Resilience Facility (RRF) is designed to ensure compliance with the principle of sound financial management. When designing their recovery and resilience plans (RRP), Member States may decide how to allocate funds, including to authorities, in full respect of applicable rules, including those of the Financial Regulation. The ‘Central Government Fund for Local Investments’ is financed by the Polish state budget and is not part of the Polish RRP.

The Commission will assess if the arrangements proposed by the Member States are expected to prevent, detect and correct corruption, fraud and conflicts of interests. When shortcomings were identified in the audit and control frameworks of the Member States, specific milestones have been included in the Commission’s proposal for Council Implementing Decisions. Those milestones have to be met before Member States submit their first payment request.

For each payment request, Member States must sign a ‘management declaration’, certifying, among the other things, that the control systems give the necessary assurances that the funds were managed in accordance with all applicable rules.

The Commission may reduce payments in case of serious irregularities or serious breaches of the financing agreements. For the same reasons, the Commission may recover funds after disbursement, following its ex-post controls.

Member States will have to grant the Commission, the European Anti-Fraud Office, the Court of Auditors and, in respect of its competence, the European Public Prosecutors Office access to the data collected so that they can investigate the use of funds if deemed necessary.