The Perverse Incentives of the EU Funds: L&E of The Monitoring Phase

The structural funds or the European funds in general are not the first instrument to promote economic development in the history of Europe. What have varied were the sources. Since the Roman Empire to more recently the Marshall plan and now the EU Funds, vast amounts of funding were given to zones in the need of concrete structural projects. Our hypothesis in this paper is that if the European Union funds usage is not efficiently monitored, the expected outcome can be perverted leading to wealth destruction. Being that demonstrated, I propose recommendations following which there will be less space for the existence of a perverse incentive to private appropriation of the EU funds.