European Public Prosecutor, Laura Codruța Kövesi, has issued a stark warning about the widespread corruption across the European Union, revealing that EU farm subsidies and Recovery and Resilience Facility (RRF) funds are fueling criminal activity. The scandal in Greece, involving fraudulent farm subsidy claims, is just one example of the growing issue, with Kövesi calling for more resources and stronger action to combat these crimes.
What Happened
A major fraud scandal in Greece has put the spotlight on widespread corruption involving EU funds, particularly farm subsidies. The Greek government has faced scrutiny after many individuals improperly received farm subsidies for land they did not own or work they did not perform. Several ministers have resigned over their alleged involvement, highlighting the scale of the fraud.
However, Kövesi made it clear that this issue is not isolated to Greece. Speaking with POLITICO, she stated that similar fraudulent activities have been detected in several EU member states, though the extent and organization vary. “We have noticed fraud with the subsidies in almost all the member states,” she explained, noting that while the methods may differ, the underlying issue remains the same.
The EU’s farm subsidies, which represent one-third of the entire EU budget, have become an attractive target for corruption due to their size. Kövesi revealed that she had received complaints from honest farmers who were excluded from receiving funds because others resorted to bribery.
Recovery and Resilience Facility (RRF) Under Scrutiny
Kövesi also highlighted her office’s ongoing investigations into the EU’s RRF, which was created in the aftermath of the COVID-19 pandemic to support economic recovery. She explained that organized crime has increasingly targeted these funds, as they offer a new avenue for illicit financial gain. The European Public Prosecutor’s Office (EPPO) is currently investigating hundreds of RRF-related cases across the EU.
A Growing Problem
The message Kövesi conveyed was clear: organized crime is growing stronger by defrauding both the EU and national budgets. This expansion of criminal activity, especially involving EU funds, is becoming a serious concern, as Kövesi referred to a recent large-scale scheme to evade antidumping duties on Chinese goods, which EPPO uncovered at the port of Piraeus.
To tackle these rising challenges, Kövesi is calling for additional resources, including more European delegated prosecutors and specialized financial investigators from national police, customs, and tax authorities. Her goal is to enhance cross-border investigations to address crimes related to the EU budget more effectively.
Political Challenges and Legal Roadblocks
Kövesi’s efforts have been hampered by legal and political challenges in member states, including Greece, where her team is investigating cases involving the misappropriation of EU funds linked to a tragic train accident in Tempi that killed 57 people. Despite her team’s efforts, the Greek government rejected calls for action against two former ministers linked to the crash, citing legal and constitutional limitations.
The Greek constitution allows only the national parliament to investigate and prosecute members or former members of government, which has obstructed the full development of some investigations. Kövesi has raised the issue with the European Commission and Greek authorities, and she has received assurances that changes to this provision may be forthcoming.
Intimidation and Resilience
Kövesi also reported attempts to intimidate her investigators in Greece, emphasizing that justice cannot be treated as a “TV reality show.” Despite these challenges, she expressed pride in her team’s resilience. “EPPO is here to stay,” Kövesi asserted, underscoring her commitment to combating corruption within the EU, regardless of political pressure.
Closing
The issue of EU farm subsidy fraud and misuse of recovery funds is far-reaching, with corruption being a persistent challenge across Europe. Kövesi’s office continues to push for greater transparency and accountability, but as she stated, “There is no clean country.” The battle against corruption is ongoing, and EPPO’s role in ensuring justice remains crucial.
This story may be updated as investigations continue.
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