The European Court of Auditors is now recommending greater transparency in investment reporting, improvements in the calculation of mobilized funds, and enhanced disclosure of how EU guarantees impact the private sector.
A new report from the European Court of Auditors (ECA) has raised serious concerns about the effectiveness of the European Fund for Strategic Investments (EFSI), also known as the «Juncker Plan». The findings suggest that the program may have fallen short of its original goals, with significant overestimations in reported investment figures.
The EFSI was designed to mobilize €500 billion in investments across the European Union by the end of 2022. However, the audit report reveals that the actual impact may have been overstated by approximately €131 billion, or 26%. While official data indicated that €503 billion in investments had been mobilized, auditors found that a substantial portion of these funds had not yet been fully disbursed. The discrepancy is attributed to flaws in the methodology used to calculate investment multipliers, which led to an inflated assessment of the program's success.
Although the fund played a role in addressing Europe's investment shortfall, the report questions whether it genuinely drove additional private-sector investment—a key measure of its effectiveness. It also points to serious weaknesses in performance monitoring, particularly regarding job creation and sustainable development, which were not adequately tracked. Additionally, the lack of clear and reliable data on the long-term economic impact of the investments raises concerns about transparency and accountability in EU-backed financing programs.
The European Court of Auditors is now recommending greater transparency in investment reporting, improvements in the calculation of mobilized funds, and enhanced disclosure of how EU guarantees impact the private sector. The report's conclusions are expected to influence future EU investment programs, particularly InvestEU, which replaced the Juncker Plan.
One of the most striking findings of the audit is Greece's minimal participation in the program. According to the report, Greece received less than 0.1% of the total allocated funds, amounting to just €5 million in equity investments and only three supported transactions. This places Greece among the smallest beneficiaries of the fund, in stark contrast to larger economies such as France, Germany, and Italy, which absorbed significantly higher amounts. The report suggests that Greece's low absorption rate may reflect either limited participation in EU-backed initiatives or structural difficulties in attracting investment through European financial instruments.
As the EU looks to refine its approach to strategic investment, the findings of this audit are likely to shape discussions on how future programs can better ensure transparency, efficiency, and equitable distribution of funds across member states.
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