EIT disputes €8.7 million audit finding over unrecoverable funds

The Budapest-based agency, which managed €435 million in taxpayer funding in 2025, faces fresh scrutiny after the European Court of Auditors (ECA) identified significant errors in its financial reporting. Auditors highlighted that the EIT overstated its net assets by €8.7 million, failing to account for potential losses tied to EIT Manufacturing, a partnership that entered liquidation in March 2026.

EIT officials dispute the severity of the findings. They argue the actual impairment is closer to €0.5 million, asserting that €5.9 million remains recoverable through a mutual insurance mechanism, with another €2.3 million recoupable by offsetting debts. Beyond the immediate accounting clash, the audit raised concerns regarding the agency’s oversight of its knowledge and innovation communities. Critics, including Kenneth Haar of the Corporate Europe Observatory, point to a broader pattern of institutional laxity toward the private entities handling these public resources.

Accountability and independence gaps

The ECA also criticized the agency's reliance on 18-month reporting cycles for grants, which it claims masks potential errors. The EIT has since committed to shifting toward 12-month intervals. These financial tensions arrive as the agency faces pressure over the sustainability of its partnerships. Although EU rules dictate that innovation communities should achieve financial independence after 15 years, records show the digital, clean energy, and climate change hubs received a combined €43 million in 2026-27 despite passing their mandated expiration dates for state support.