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The Rule of Law and Antifraud Measures in the Allocation of Next Generation Eu Funds

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  • David Blanco‐Alcántara
  • Teresa Elvira‐Lorilla
  • Cristina Sierra‐Calvo

Abstract

This study analyses the different factors that influence the allocation of Next Generation EU (NGEU) Funds among European Union (EU) Member States, particularly on the Recovery and Resilience Facility. We used a sample of the 27 EU countries and applied Fuzzy‐set Qualitative Comparative Analysis (fsQCA) to carry out our analysis. Our results show that the EU considers informal criteria when making allocation decisions in the context of the NGEU Funds. Particularly, the quality of the Rule of Law and the presence of robust anti‐fraud measures significantly impact the distribution of funds. In addition, there is no single path to receiving higher levels of funding; rather, multiple combinations of institutional and demographic conditions can lead to greater allocations. In fact, the informal governance indicators are especially considered for more populous Member States. The contributions of this study are twofold. It contributes to the literature by introducing a novel methodological approach and highlighting the importance of informal criteria in EU fund distribution. On the other hand, it has some practical implications since it offers practical insights for Member States seeking funding as well as guidelines for designing more effective allocation strategies for policymakers.

Suggested Citation

  • David Blanco‐Alcántara & Teresa Elvira‐Lorilla & Cristina Sierra‐Calvo, 2026. "The Rule of Law and Antifraud Measures in the Allocation of Next Generation Eu Funds," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 35(3), pages 1335-1345, July.
    • Handle: RePEc:wly:buseth:v:35:y:2026:i:3:p:1335-1345
    DOI: 10.1111/beer.12832
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