EU's record recovery fund at risk as countries struggle to meet deadline

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EU's record recovery fund at risk as countries struggle to meet deadline
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The risk that European Union governments will not be able to spend the largest aid package in its history is growing as members struggle to meet deadlines imposed by the bloc, officials from four countries have told Reuters.

Extending the implementation period faces "a major problem – the decision on own resources would have to be reopened, which requires unanimity, which is almost unthinkable", said Czech EU Affairs Ministry spokesperson Marek Zeman.

Portugal had disbursed 1.4 billion euros, or 8.5% of the total recovery funds assigned to it, to project promoters by the end of 2022. Italy expects talks to review some aspects of the plan to conclude by February, although it has so far not asked for a deadline extension beyond 2026, a source in the Italian government said. Rome wants Brussels to take into account the negative impact of sky-high raw material costs on public works, the person said.

The EC may delay granting extensions for as long as possible in an effort to push countries to complete as much of the original schedule as possible, according to a source at the European Commission.

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