The Court of Accounts identified a number of irregularities and incidents in the granting of this permission. Extraordinary benefits, introduced as a relief measure for self-employed workers hit hardest by the epidemic, began in March 2020 and continued during the pandemic and quarantine period.
In a report published this Friday, the organization notes that the total excess assistance potentially allocated to about 300,000 self-employed workers who did not meet the required conditions could total around 547.1 million euros in 2020. The Court recommends reviewing the 2020 interim decisions and, where appropriate, continuing repayments of benefits that were misallocated. It also acknowledges that some irregularities identified by the Court itself may remain unresolved until the review process is completed.
From the Court of Auditors’ perspective, the extraordinary aid, which reached roughly 1.5 million self-employed individuals and involved more than 5 billion euros of public funds, served the goal of preserving employment and self-employment under extreme restrictions. Yet the Court stresses that the administration of the program was inefficient, as evidenced by the incidents and irregularities uncovered during scrutiny.
Unmet needs: 119.5 million
First, the Court explains that 125,000 self-employed workers received severance payments totaling 119.5 million euros despite not meeting legally required conditions, such as enrollment in Social Security or timely contribution payments. Many of these cases stem from procedural issues in recognizing, managing, and controlling the benefit, including duplications and non-compliances.
Activity list: 386 million
Second, the agency found that nearly 20 percent of beneficiaries who had benefits approved during the suspension of activities, about 156,000 self-employed workers, had a relevant code from the National Classification of Economic Activities not included in the official list of suspended activities tied to the extraordinary quarantine measures adopted in March 2020. The net benefit received by this group exceeded 386 million euros.
Although the Court notes an event code for all such beneficiaries who were not initially listed, they may still be eligible for the aid provided they furnish the necessary documentation to prove that their activity was indeed suspended (for example, the complete closure of shopping centers where operations were not legally suspended). The Court considers it appropriate to hold a hearing with the relevant parties to verify that the activity of these beneficiaries was effectively suspended at the time of the application.
Exemption from social contributions: 41.6 million
The report identifies non-compliances and incidents related to the management and control of exemptions from social contributions, affecting 69,269 beneficiaries for a total of 41.6 million euros.
It remains difficult to determine the total amount involved because a single beneficiary could be implicated in multiple irregularities. Regardless, the figure points to a broader scope of review, with more than 350,000 self-employed workers now under scrutiny in connection with the 547.1 million-euro excess related to the program.
Three years later
The extraordinary stoppage assistance for self-employed workers was launched on March 14, 2020, with its effects lasting through June 30 of that year, as the pandemic prompted urgent action. During the health emergency, social protection authorities temporarily recognized the right to this aid, delaying verification of compliance with access requirements until the end of the emergency period. Three years after the aid expired, as of June 30, 2023, a mandatory review of interim decisions began.
The Court of Auditors calls for this review to proceed with urgency before the four-year statute of limitations for addressing improperly received benefits in the social security system runs out. If warranted, it suggests restoring any amounts that were improperly disbursed.