Lack of transparency regarding final beneficiaries of Recovery and Resilience Facility

Subject: Lack of transparency regarding final beneficiaries of Recovery and Resilience Facility

According to ‘Follow the Money’, a platform for investigative journalism, many Member States are refusing to disclose information regarding the final beneficiaries of Recovery and Resilience funding totalling EUR 723.8 billion. This stands in stark contrast to agreements governing European farm subsidies, with Article 98 of Regulation (EU) 2021/2116 requiring Member States to disclose information regarding beneficiaries on a single website, ensuring public oversight and thereby preventing misuse of funds.

1. Does the Commission agree that refusal by Member States to disclose details regarding the final recipients of RRF funding is undesirable, given that this also encourages fraud?

2. What instruments does the Commission have at its disposal to encourage Member States to share such information?

3. Will it recommend the adoption of provisions to ensure RRF transparency similar to Article 98 of Regulation (EU) 2021/2116, requiring Member States to publish information regarding final beneficiaries of the Recovery and Resilience Facility?

Answer given by Mr Gentiloni on behalf of the European Commission

(9 September 2022)

Once Recovery and Resilience Facility (RRF) payments are made, the funds disbursed become national funds and the normal Member State obligations regarding the use of national funds apply, such as national budget rules and laws. The RRF Regulation legally obliges Member States to collect data on the final recipients of RRF funds.

The RRF Regulation does not provide a general obligation for Member States to publish this data. Specific data must, however, be provided when it is requested by the Commission, the European Anti-Fraud Office, the European Court of Auditors, or the European Public Prosecutor’s Office in the context of specific controls, audits or investigations, including when looking into cases of fraud.

In addition, we expect that such data is also requested and used by national investigative, regulatory or audit bodies where relevant.

During the negotiations on the RRF Regulation, the possibility to oblige Member States to publish and/or transfer proactively all data on final recipients was discussed between the European Parliament and Council. However, the co-legislators ultimately chose not to include this requirement.

In its proposal of May 2022 to update the Financial Regulation, the Commission has proposed that Member States that receive and implement Union funds under direct management should make available to the Commission information on final recipients.

The Commission would publish such information on a single website. Such provisions, if accepted by the co-legislators, would cover the RRF.