Major maneuvers underway in Brussels on the management of the funds of the National Recovery and Resilience Plan. According to what the Politico newspaper reveals, Ursula von der Leyen is evaluating a reform of the staff who manage the money attributed by the European Union to the Member States through the Recovery Fund. The EU Commission is thinking of moving the responsibilities relating to the monitoring of funds to the department which is under the direct control of the German leader.
The revelations come on a day that could be decisive for von der Leyen’s second term and above all for his new team. The meeting of the Conference of Presidents of Parliamentary Groups is scheduled for 5pm on November 20th in Brussels, which could give the green light to the seven Commissioners whose approval was postponed after last week’s hearings. At the center of the clash between the political groups there are above all two names: the Italian Raffaele Fitto and the Spanish Teresa Ribera. Fitto has been criticized by socialists and greens for the excessive powers granted with the executive vice presidency. The proposal on who will manage the Recovery Fund funds could affect the pass for the Italian commissioner.
The maneuver involves dismantling the general directorate for Reforms, the same one that in the last legislature was in the hands of the commissioner for cohesion policies, which would now fall to Fitto. The reform would take away from the Fratelli d’Italia exponent direct control over EU funding destined for Italy, as well as the coordination of a team of around 200 officials in Brussels. A weakening aimed at satisfying the groups of the official majority so that they give their yes to the politician wanted by Giorgia Meloni.
The reshuffle of the Reform department
The reshuffle wanted by von der Leyen involves the merging of almost 200 officials from the reform department (DG Reform) with the division responsible for the European Union’s post-pandemic liquidity. This revision, for now only a hypothesis, aims to facilitate the extension of the “cash-for-reforms” model desired by the Commission. Originally applied to the Recovery Fund, it could be applied to the next seven-year budget, which is expected to come into force in 2028. According to rumors circulating in Brussels, the maneuver would at the same time allow von der Leyen to strengthen his direct control over budget distribution. This is 1.2 trillion euros from the EU. In fact, it would be an upgrade of the recovery unit, which you directly supervise.
The “money for reform” model
The “cash for reforms” model includes specific rules, under which member states are required to implement key economic reforms in exchange for access to their share of EU funding. In this way, at von der Leyen’s suggestion, tailor-made national plans, such as the Italian Pnrr, link payments to reforms and investments. The department’s disbursement of money has so far helped make national and regional bureaucracies more efficient. A support appreciated by both member states and regions, as underlined by the outgoing commissioner for cohesion, Elisa Ferreira, speaking before the European Parliament.
What’s behind the row between left and right in the EU
The department has 864 million euros available for seven years, expiring in 2027. Thanks to the money provided, around 1,800 projects have been supported, ranging from tax reform to education. However, the most critical voices believe that a large part of the funds disbursed ends up in the hands of consultancy organisations, which support national and local authorities in carrying out the reforms requested by the EU. However, according to data provided by the European Commission, there was an improvement in the period between 2021 and 2024, with outsourcing to consultancy firms falling from 53 percent to 26 percent of total financing.
Less power for Raffaele Fitto at Cohesion
The EU executive’s proposal on this reform should be presented in the second half of 2025 and would still require unanimous approval from the 27 EU countries. According to officials, von der Leyen would thus gain greater direct power over the funds. However, the commissioner in charge of regional financing, who currently also controls the department for reforms, would be weakened. This is the role that von der Leyen attributed to Raffaele Fitto, following the appointment proposed by Giorgia Meloni. Fitto, who was also given the title of executive vice-president of the Commission, remained on stand-by after the hearing before the European MEPs.
The postponement stems from objections raised by both the socialists and the greens, who criticize the Italian’s membership of the Reformists and Conservatives (Ecr) group, which is officially not part of the von der Leyen majority. The reform would help reduce his role, considered too prestigious in the eyes of his detractors. A maneuver that still requires approval by the Board of Commissioners, which could become operational starting from December 1st. Everything depends on the fundamental vote on November 27, when the MEPs gathered in plenary in Strasbourg will decide whether to give the green light to von der Leyen’s team, including Fitto.
