The European Court of Auditors (ECA) has warned that the EU’s €650bn pandemic recovery fund remains highly vulnerable to fraud due to weak accountability and oversight mechanisms. Unlike traditional EU programs, this fund links payments to policy milestones rather than actual costs, a structure that the European Public Prosecutor’s Office (EPPO) estimates has allowed fraudsters to steal nearly €3bn. Watchdogs highlighted that member states are not required to return recovered stolen money to the EU budget, and systematic reporting on fraud is set to end this year, leaving the commission in the dark about clawed-back funds.
Date: February 11, 2026. Source: euobserver.com