A new report released today highlights significant gaps in information exchange among EU bodies in the fight against fraud, affecting the efficacy of these efforts by slowing investigations and preventing the European Commission from having a comprehensive overview to safeguard EU funds, according to the European Court of Auditors (ECA).
The report shows that from 2022 to 2024, the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) received 27,000 suspected fraud reports, with one-third deemed worthy of investigation.
The auditors note that EU bodies report three times more suspected fraud to OLAF than to the EPPO. They further indicate that several Member States report fewer cases relative to the funds they receive from the EU.
Addressing journalists, Katarína Kaszasová, the report’s lead author and member of the court, pointed out the significant discrepancies between Member States’ EU budget shares and reported fraud cases, a gap which has not been scrutinized by the Commission.
As a result of investigations conducted by European anti-fraud bodies from 2022 to 2024, OLAF recommended over €600 million in reimbursements to the EU budget, with more than €20 million recovered by the end of 2024.
During the same period, the EPPO froze €3 billion in assets.
In 2024, Member State courts ordered the recovery of over €230 million in criminal damages from national authorities.
“The recovery of millions of euros from fraudsters following OLAF and EPPO investigations is undoubtedly positive. However, the Commission lacks a mechanism to verify whether court-imposed recoveries are executed and if the total amount owed to the EU budget is recovered. In essence, the Commission is unaware of the full recovery status of EU funds,” said Katarína Kaszasová.
Therefore, the ECA recommends the Commission to investigate when there is a notably low number of fraud reports as stated in the report.
The EU’s anti-fraud framework predominantly relies on the EPPO for criminal investigations and OLAF for administrative inquiries.
The EU and Member States have a legal obligation to combat fraud impacting the financial interests of the Union, including all revenues, expenditures, and assets.
The ECA primarily audits the work of the European Commission.
