European subsidies aimed at improving rural areas often do not have lasting impacts. In one-third of cases, subsidized projects did not last five years, even when large amounts of money were invested. However, large infrastructure projects such as sewage system installation, roads, bridges, and viaducts were more successful, according to a report by the European Court of Auditors.
The European Commission has spent more than 25 billion euros on rural development over the past fifteen years to diversify rural economies. The success of these efforts varies significantly by country, member state, and sector, states the Court of Auditors (ECA) in a special report.
There were issues of weak economic performance and unlawful private use. The auditors recommend that the European Commission reduce the risk of misuse by repurposing projects for private use. Investments in tourist accommodation were among the most frequently supported diversification projects.
In several EU countries, subsidies from the rural fund were granted to tourist accommodations, even when they were not viable. In some cases, legal investigations into fraud were launched.
The auditors uncovered cases where costly tourist recreation projects were closed after only a few years. Some of these projects incurred up to 9,000 EUR in EU subsidies per month during their operational period.
"The EU has made significant investments in measures to make the rural economy less dependent on agriculture and forestry, to retain and create jobs, and to improve infrastructure in rural areas," said Viorel Ștefan, the ECA member who led the audit.
Auditors found considerable differences between various sectors and member states. For example, in Poland, services for agriculture and forestry projects were less sustainable between 2007-2013 than projects in other sectors.