LUXEMBOURG – In return for financial support from the fund, countries committed to implementing reforms and investments aimed at improving the business environment. However, the European financial watchdog notes that these efforts have not yet produced adequate results.
Following the substantial economic damage inflicted by the COVID-19 pandemic and subsequent lockdowns, the EU established a fund providing member states with 650 billion euros in loans and grants to facilitate initiatives like digitalization and sustainability. To access these funds, EU nations were required to create plans outlining specific goals.
Prior to the pandemic, the EU had already issued numerous recommendations to its members for enhancing their business climates, including improving access to financing, streamlining tax systems, and reducing regulatory burdens. In their national recovery plans, all member states proposed over four hundred reforms and investments aligned with these recommendations, with projected costs around 109 billion euros.
According to the ERK, only a small fraction of these reforms has been effective. Most reforms have faced delays, with many results still pending, as noted by ERK member Ivana Maletić. “The fund was intended to simplify business operations, but its potential remains largely untapped.”
Earlier this year, the ERK published a critical assessment of the European coronavirus recovery fund, questioning the extent to which member states fulfilled their commitments in exchange for financial aid. The report raised concerns about potential inequalities among member states and anticipated rising costs for the coronavirus recovery fund, officially known as the Recovery and Resilience Facility (RRF).
(October 27, 2025)
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