RECOVERY FUND AND HEALTHCARE MONTHS? IT MEANS TO BE SUBJECT TO EX POST SURVEILLANCE. Word of the EU Court of Auditors

The controllers never sleep, nor go on vacation, not even in August. The European Court of Auditors just yesterday published the guidelines for post-program controls. You can find the entire document at this address .

The PPS, post program surveillance, is the program with which the Court of Auditors of the union checks, and reports to the commission, on the quality and implementation of controls for the states that have requested financial aid from the Commission. currently it applies exclusively to the 5 states that have had access to the EFSF and the MES: Greece, Spain, Portugal, Ireland and Cyprus. The Court of Auditors checks that the Commission actually assesses compliance with the indications of the "European Semester" and that the ability of these countries to repay the debt is maintained, at least until 75% of the debt is repaid. All this is confirmed by the same Court of Auditors:

The audit will examine the design, implementation and effectiveness of the Commission's post-program surveillance for the five euro area Member States concerned (Greece, Spain, Portugal, Ireland and Cyprus). In particular, it will evaluate:
– the work of the Commission has provided creditors with guarantees regarding the Member State repayment capacity;
– the Commission has drawn appropriate conclusions from its assessments / analyzes and has taken relevant measures, where necessary, to help the Member States concerned maintain a sound economic and financial position.
As far as possible, the audit will take into account the impact of the COVID-19 crisis on the Commission's assessment of Member States' public finances and the capacity reimbursement of Member States under PPS. The audit will also assess the suitability of the PPS as a monitoring tool to support the monitoring of the implementation of the recovery fund economic plan currently under negotiation. Since we have identified the issues underlying these areas of investigation before the audit work commenced, they should not be regarded as audit observations, conclusions or conclusions.
This audit complements previous work on Financial Assistance to Member States and EU Economic Governance under the Six and Two Packs

In the following press release, the Court of Auditors clearly states that the same criteria should be applied to the Recovery Fund:

Our auditors will also assess whether post-program surveillance could be a suitable monitoring tool for the economic recovery fund currently under discussion . "

It is therefore evident that the use of funds, however not very convenient, relating to the Recovery Fund, will lead to a series of very strict checks relating to the solvency of the state, which will first involve the Commission, the ECB etc., then, in the second term, the European Court of Auditors, which will assess whether the criteria used have been sufficiently narrow and adequate for the purpose. At present the controls seem to look exactly like those for the use of the MES . Not a positive sign.

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Article RECOVERY FUND AND HEALTHCARE MONTH? IT MEANS TO BE SUBJECT TO EX POST SURVEILLANCE. Word of the EU Court of Auditors comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/recovery-fund-e-mes-sanitario-vuol-dire-essere-sottoposti-alla-sorveglianza-ex-post-parola-di-corte-dei-conti-ue/ on Fri, 21 Aug 2020 13:09:12 +0000.