Preventing corruption and promoting transparency in the context of recovery plan funds

Subject: Preventing corruption and promoting transparency in the context of recovery plan funds

According to Eurostat figures1, EU economies are officially entering a recession in 2020. Portugal is particularly badly affected. The recovery plan (‘Next Generation EU’) will be instrumental to economies’ recovery and to protecting businesses. It is important that Member States distribute funds quickly and intelligently, ensuring that support reaches the real economy as soon as possible.

A number of Member States are taking the lead in efforts to streamline the implementation of these funds. But this speed must be balanced with high transparency, competition and anti-corruption standards.

In Portugal, the government’s draft law2 seeking to change the rules on public procurement was roundly criticised by the Portuguese Court of Auditors in a recently published opinion3.


1. What is the Commission’s view on the Portuguese Government’s proposal, taking into account the European public procurement regime and the warnings from the Portuguese Court of Auditors? Specifically, does it believe that the proposal meets both Portugal's duty to transpose directives and the principle of competition?

2. What mechanisms could be used at EU level to prevent and detect cases of corruption, or other crimes, such as those highlighted by the Portuguese Court of Auditors, in the disbursement of the recovery funds?

1 https://ec.europa.eu/eurostat/documents/2995521/10545471/2-08092020-AP-EN.pdf/43764613-3547-2e40-

7a24-d20c30a20f64


https://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c324679595842774f6a6333 4e7a637664326c756157357059326c6864476c3259584d7657456c574c33526c65485276637939776347773 04d533159535659755a47396a&fich=ppl41-XIV.doc&Inline=true


https://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c324679626d56304c334e70 6447567a4c31684a566b786c5a793944543030764e6b4e46535539515343394562324e31625756756447397 a5357357059326c6864476c3259554e7662576c7a633246764c324d77595446684f5755304c5749344f44597 44e4441794e5331694f54517a4c5449324e44646a4f5749334d7a67305a6935775a47593d&fich=c0a1a9e4- b886-4025-b943-2647c9b7384f.pdf&Inline=true

Answer given by Mr Breton on behalf of the European Commission

(7 January 2021)

The amendments to be introduced in the Portuguese law implementing the obligations under the Public Procurement Directives will be assessed in line with the Commission’s continuous monitoring of Member State’s compliance with EC law. Furthermore, the Commission monitors public procurement also through the European Semester as well as through other means, including the Rule of Law Report (4).

The Commission acknowledges the exceptional nature of the current economic situation. It also supports EU Member States’ action to foster their economies through efficient execution of public investment projects, in full conformity with the EU acquis. The adherence to the principles of equal treatment, non-discrimination, proportionality and transparency, reflected in the Public Procurement Directives, aims at ensuring the effective use of public funds by increasing competition and minimising the risks of corruption.

The political negotiations on the legal texts related to Next Generation EU (NGEU) and the instruments under NGEU are still ongoing. Under the proposed Recovery and Resilience Facility, Member States should prevent serious irregularities, ensure audits and controls and recover misappropriated funds. The Commission would primarily rely on national control systems, but will perform additional checks to ensure that the irregularities have been corrected by Member States. As it is the case when EU funds are used, the European Court of Auditors and the European Anti-Fraud Office (OLAF) will have the right to access information and investigate the misuse of funds, and the European Public Prosecutor’s Office will investigate and prosecute any criminal conduct affecting the Union’s financial interests.

⋅1∙ https://ec.europa.eu/eurostat/documents/2995521/10545471/2-08092020-AP-EN.pdf/43764613-3547-2e40-7a24-d20c30a20f64

⋅2∙ https://app.parlamento.pt/webutils/docs/doc.pdf?

path=6148523063446f764c324679595842774f6a63334e7a637664326c756157357059326c6864476c3259584d7657456c574c33526c65485276637939 77634777304d533159535659755a47396a&fich=ppl41-XIV.doc&Inline=true ⋅3∙ https://app.parlamento.pt/webutils/docs/doc.pdf?

path=6148523063446f764c324679626d56304c334e706447567a4c31684a566b786c5a793944543030764e6b4e46535539515343394562324e31625756 756447397a5357357059326c6864476c3259554e7662576c7a633246764c324d77595446684f5755304c5749344f4459744e4441794e5331694f54517a4 c5449324e44646a4f5749334d7a67305a6935775a47593d&fich=c0a1a9e4-b886-4025-b943-2647c9b7384f.pdf&Inline=true ⋅4∙ COM(2020) 580 final.