fraud with EU funds

Brussels (dpa) — An inefficient exchange of information between EU authorities complicates the fight against fraud with EU funds, the European Court of Auditors (ECA) said in a report released on Monday.

The auditors in Luxembourg criticized in the special report the reporting system of suspected cases to the European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO). Both authorities are responsible for protecting the EU’s financial interests.

The ECA called for a new system to simplify investigations and minimize administrative effort.

“Fraud reporting requirements may lead to duplicate reporting of allegations, which increases the administrative burden,” the ECA report stated.

According to the report, a total of 27,000 allegations were received between 2022 and 2024. It should be clearly regulated to whom the cases must be reported, it said. The ECA recommended forwarding all received allegations to a central archive.

fraud with EU funds

ECA: European Commission needs more oversight

Currently, allegations can end up with either the EPPO or OLAF. Both bodies check whether they are responsible when they receive a report. The EPPO conducts criminal investigations, while OLAF examines the administrative side.

The report further criticized the fact that the system does not ensure that all reports of suspected criminal activity actually reach the EPPO. The procedures for forwarding cases from OLAF to the EPPO are cumbersome, and the exchange of information is limited, it said.

Another weakness is that the European Commission does not track the results of fraud investigations well enough, the auditors noted.