Higher speed of work of all institutions responsible for the use of the EU financial assistance is needed

"It is still possible to make full use of Structural Funds assistance, which was allocated by the European Union to Lithuania in 2004-2006," said Auditor General Rasa Budbergytė presenting the summary report on the Management of European Union Financial Assistance in 2004-2008 drawn up by the NAO. By the beginning of 2009, 94 per cent of all the projects financed from the EU Structural Funds were completed. European Commission has extended the eligibility period until the end of June. However, in the opinion of Ms Budbergytė, it is essential to take certain measures as soon as possible in order to avoid repeated mistakes, which hindered the efficient use of assistance,  in  the  future.  It is extremely importance, since in

2007-2013 Lithuania is allocated still larger EU structural assistance: over LTL 23 billion. Most shortcomings in the use of EU Structural and Cohesion Funds assistance in 2004-2006 period were identified in areas of organization and execution of public procurement, selection and evaluation of projects, as well as introduction and use of computer information management and supervision system for structural assistance. Cohesion Fund's environmental projects are most lagging behind, because there was a lack of experience in municipalities, public procurement and contracts signing was lagging behind.

Concerns arise over the increased value of the drawn-out implementation of Cohesion Fund projects: in the end of the last year it increased to LTL 796 million, which would have to be paid with national funds. Therefore the risk arises that the State and municipal budgets in 2009-2010 may be insufficient to complete the projects. If the EU-financed projects are not implemented within the set period, the allocated assistance has to be recovered to the EU.

So far the use of structural assistance funds for 2007-2013 period has been slow. Until the beginning of 2009 only LTL 705 million, i.e., 2.26 per cent of all the planned funds were used. In the beginning of the programming period the use of funds was mostly impeded by the drawn-out drafting of the required legislation. The Auditor General said that in order to efficiently and timely use the EU assistance it is essential that all the institutions responsible for the use of EU funds would increase the speed of their work.

The Report also concluded that the recommendation earlier given to the Government to regularly inform the public about the use of the financial assistance received in Lithuania was not fully implemented.


Full report is available in Lithuanian: Management of the European Union Financial Assistance in 2004-2008