Should grants from EU funds be returned?

The question of whether the EU subsidies granted have to be reimbursed is a concern for many people. By definition, the aid from the European Union grants is non-refundable. This means that they do not have to be repaid by the beneficiaries. However, there are strictly defined situations where grants received are reimbursable.

This concerns in particular the situation where the grant was awarded and the beneficiary did not comply with the terms of the signed agreement. Each grant agreement for a project contains a very detailed description of the conditions that have to be met in order not to have to give away the grant awarded. All those who have received such assistance should therefore read the contract very carefully in order to know what their responsibilities are. If they fail to comply with these obligations, they will have to take into account the need to reimburse the grant.

In which situations should the grant be reimbursed?

The grant awarded should be spent as intended. The appropriations may not be used for purposes other than those indicated in the proposal. As far as the subsidies granted to companies are concerned, we have to reckon with the fact that when spending money for other purposes, we will have to return it anyway. This situation must also be taken into account by people who have benefited from a grant to set up a business. The aid received from the European Union must be very carefully accounted for.

When spending subsidies, we must therefore bear in mind what we spend them on. If you are unable to account for the money you have received, you must prepare yourself for a refund. What is more, in such a situation, it will be difficult for us to obtain further funds. Where a grant is repaid, not only the amount granted but also the interest charged on it shall be reimbursed. By definition, EU grants are non-repayable aid. If we want to avoid the need to return the funds granted, we must remember, however, that all settlements must be carried out according to a schedule. We must also remember that a condition for receiving non-repayable aid is that the funds are spent in accordance with the conditions laid down in the agreement. We cannot use these funds for purposes other than those indicated in the proposal. Otherwise we run the risk of having to return them. It will certainly not be a comfortable situation for us.