One variant of a well-known law of bureaucracy says that the amount of time spent discussing a budgetary decision is inversely proportional to the magnitude of the budget in question. Judging by what I witnessed on March 20 at the European Parliament—at the Committee on Budgets’ hearing on the “Financing of the Eastern Partnership”—the Brussels machine functions entirely in accordance with this adage.

The money involved is substantial: 2.8 billion euros ($3.6 billion) over 5 years. The project’s stated purpose is to promote “shared values”—democracy, human rights and the rule of law—in six former Soviet states deemed to be of “strategic importance” to the European Union: Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine. Promoting the principles of market economy, sustainable development, civic society and “good governance” is also among the objectives.

In their opening remarks, the officials involved in running the Eastern Partnership Program were self-congratulatory about its alleged achievements. That much was to be expected: lots of sinecures, cushy jobs and expense-padded missions can be extracted from a few billion. Nevertheless, the entire construct’s numerous problems and shortcomings could not be concealed:

  • Conceptually, there is no clear consensus within the EU on what exactly it is trying to promote in its eastern neighborhood under the bombastic slogans of “shared values, collective norms and joint ownership.” What does it all mean, if anything, in the real world?
  • Empirically, the program has followed, and still follows, a “top-down” approach of deciding in Brussels what are the goals, then telling the eastern “partners” what they need to do, and finally rewarding them accordingly—rather than developing genuine partnerships based on those countries’ real needs and attainable objectives.
  • Managerially, in order for the funds allocated to the “Partnership” to be optimally utilized, they would require elaborate apparatuses of deployment, supervision and evaluation. On the basis of the presentations last Wednesday, it is clear that the EU has neither the institutional mechanisms nor the supervisory bodies capable of insuring that this is the case.
  • Substantially, the elephant in the room was the issue of EU enlargement—or, rather, the extreme unlikelihood of further enlargement after Croatia’s accession next July. Without the realistic prospect of an eventual path to full membership, the EU lacks meaningful leverage over the political elites in the six eastern countries to make them change their ways.

Far from being addressed, these problems are bypassed by the tendency of the EU bureaucracy to close its eyes to the reality on the ground in the countries concerned—or, worse, still, to misrepresent that reality for reasons of institutional self-preservations. The result, to put it succinctly, is that billions of European taxpayers’ cash are poured into a bottomless pit of post-Soviet corruption, graft, and pork-barrel politics. “We pretend to work, and they pretend to pay us,” went the old Soviet joke. Its modern-day “Eastern” equivalent should be “We pretend to reform, and they pretend that we are doing a good job.” Instead of being properly perceived as part of the problem, terminally corrupt political “elites” are treated as partners in finding solutions.

Moldova is the prime example. On per-capita basis, this backwater squeezed between Romania and Ukraine—the poorest country in Europe—has received far more money than the other five “partners,” and the EU pretends that its objectives are being met. While I was at the European Parliament, the European Commission presented its own regional report on the implementation of the Eastern Partnership. It asserted that “significant progress was made in the implementation of the Eastern Partnership” and singled out Moldova for “showing significant progress,” “stepping up efforts to implement judicial and law enforcement reform,” and “continuing to implement reforms in the areas of social assistance, health and education, energy, competition, state aid and regulatory approximation to the EU acquis.” Moldova’s government was asked to “continue to vigorously advance reforms in the justice and law enforcement systems” as well as intensify the fight against corruption.

This is surreal, on par with the Soviet Communist Party congresses exalting the great and glorious achievements of socialism in the years of terminal decline under Brezhnev. In reality, Moldova is one of the most corrupt countries in Europe, according to independent analysts, who also claim that the majority of EU assistance is being misused by local officials. The Warsaw-based EaP Institute warns that the EU is devoting considerable sums to Moldova for very little return in terms of progress in the country’s reform process: “It begs the question: Why is the EU throwing money like this at a black hole of corruption, when there is so much to do in the EU’s own member states?”

It does, indeed. Moldova has already received some €482m from the EU Eastern Partnership, which is about 110 euros ($145) for every man, woman and child in the dirt-poor country—the equivalent of an average two-weekly wage. Nobody knows for certain where it went, but we have a fair idea. Recent opinion polls say that the majority of citizens of Moldova consider their current coalition government as “totally corrupt.” According to the Transparency International 2012 report, Moldova is among the most corrupt places in Europe, with Kosovo, Albania and Bosnia topping the list. But the EU says it is doing well, because an unhealthy symbiotic relationship has been developed between the unelected and mostly unaccountable bureaucrats managing enormous funds earmarked for nebulous purposes and their foreign “clients” who gloat at the mouth-watering prospect of placing a major portion of those funds into their own pockets.

After last Wednesday’s introductory presentations, several experts and members of European Parliament (MEPs) expressed misgivings about the Eastern Partnership policy. Olaf Osica, director of the centre for eastern studies in Warsaw, declared that “in four years the policy had failed to produce any tangible political or social results.” A prominent Polish MEP and former senior government minister, Jacek Saryusz-Wolski, said the entire edifice should be “completely revised”:

There are a whole multitude of projects which, as we have heard at the hearing, no one seems able to follow or understand… What we are doing is creating the illusion that the EU is helping to transform these eastern European countries when, in fact, the naked truth is that the EU is losing its eastern neighbors. What is actually needed is for the EU—and that means both the Commission and Parliament—to totally revise and revisit its Eastern Partnership policy.

All this was in stark contrast to the earlier assurances by senior officials that the current picture was “confused,” but the EU was nevertheless “doing quite well” in addressing concerns about the transparency and accountability of its funding for the six countries (Marcus Cornaro); or that the EU was determined to push ahead with closer cooperation with those countries that have “demonstrated a commitment to the reform process” (Richard Tibbels).

The lenient attitude of EU officials regarding the patchy record of their “Eastern partners” on corruption, democratisation, and the rule of law is in stark contrast with the ever-moving goal posts for a half-dozen aspiring EU members in the Western Balkans. None of them will join the EU for a decade at least, of course, and a realistic reassessment of their political and economic policies is long overdue. The EU is in a state of chronic institutional and financial crisis, and trying to get on board at this point is equal to betting on Romney last November 5. Alternatives do exist, but they call for the cold-blooded diversification of long-term strategies. Belgrade and Kiev in particular should take note.