The European Commission’s expenditure on diversifying the EU rural economy and improving rural infrastructure has exceeded € 25 billion since 2007. However, in a special report published today, the European Court of Auditors (ECA) argues that measures they have not been as successful in all Member States and in all sectors. For example, the meager income of accommodation and the fact that in some cases it is used illegally as private housing is not particularly conducive to the sustainability and viability of EU-funded agritourism projects.
The auditors’ recommendations to the European Commission concern the dissemination of best practices for the more efficient channeling of available resources to sustainable projects, mitigating the risk of projects being diverted and used for private purposes, as well as exploiting the potential they offer the large databases.
“The EU has made significant investments in measures aimed at reducing the rural economy ‘s dependence on agriculture and forestry, maintaining and creating jobs and improving rural infrastructure,” said Viorel fantefan, Member of the ECA. and responsible for control. “However, EU-funded projects in rural areas must stand the test of time. We believe the EU must do more to ensure that the projects it supports bring long-term benefits and prove the value of the support it provides.”
The auditors analyzed projects with different characteristics, which were funded by the European Agricultural Fund for Rural Development (EAFRD), and found that most were still in operation at the end of the five-year period provided by law. This was especially the case for infrastructure projects, which are usually designed to be long-lasting. These included, inter alia, the rehabilitation of villages, the opening or improvement of roads and the construction or modernization of water supply and sewerage networks. However, one third of the diversification projects, ie projects aimed at turning rural people into non-agricultural activities or financing new business opportunities, were no longer in operation at the time of the audit. This was even found in cases of extremely large investments. One of the most common types of projects of this kind was investing in tourist accommodation.
The auditors identified significant differences between sectors and between Member States. In Poland, for example, in the period 2007-2013, projects for the provision of services in the fields of agriculture or forestry were shorter in time than projects in other sectors. At the same time, tourist accommodation was funded in several Member States, even in cases where they did not appear to have prospects for economic viability. In other cases, buildings funded to operate as hostels were used as private residences, prompting authorities to launch investigations. The auditors also brought to light cases in which tourist accommodation that had cost dearly as projects only operated for a few years. It was estimated that each month of operation of certain projects cost the EU up to € 9,000 in grants.
The auditors are making a series of recommendations to the Commission, with a view to launching the next Common Agricultural Policy (CAP) programming period, which will cover the period 2023-2027. In particular, they recommend that it contribute to the dissemination of best practices for:
– ensuring the sustainability of projects, taking into account the different types of investments it supports;
– the collection of evidence that the funded activities are still operational;
– the imposition of conditions on grant agreements, which require the funded projects to be used for the purpose for which they are intended.
General information
The ECA has also analyzed the issue of EU support for rural infrastructure in Special Report 25/2015, and has identified problems with the sustainability of EU-funded cohesion investment in Special Report 08/2018 and special report 06/2011.
The special report 12/2022, “Sustainability of rural development projects – Most remain in operation throughout the forecast period, but there is potential for more long-term results”, is available on the ECA website.
Source: Capital
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