Debate: Protection of the EU’s financial interests - combating fraud - annual report
Date: WEDNESDAY, 18 JANUARY 2023
Speaker: Ylva Johansson
Language: EN

The EU’s crisis response to the COVID—19 pandemic, the war in Ukraine and the related energy challenges demonstrate how essential effective EU action is to the lives of EU citizens. The EU budget and NextGenerationEU aim at building resilience and at creating a more secure and sustainable future. We must all strive to ensure that EU funds are spent correctly. By doing so, we not only protect taxpayers’ money, but also our common future. Fraud and corruption are damaging to the EU as a whole, whether they occur in Member States or in EU institutions. It’s imperative that any allegations are fully investigated so that the EU and our actions do not lose credibility. We have strong tools in place to protect the Union’s financial interest. The mandate of OLAF includes serious matters relating to the discharge of professional duties, including corruption. OLAF carries out administrative investigations into serious misconduct by EU staff and members of the EU institutions, bodies, offices and agencies. The European Public Prosecutor’s Office prosecutes criminal offences affecting the financial interest of the Union, including corruption. The Union’s staff regulations establish a strict disciplinary system and enable the necessary high protection standards, including for whistle—blowers. As you know, the Commission triggered the Rule of Law Conditionality Regulation in relation to the protection of the Union budget against the consequences of breaches of the rule of law in Hungary. This is testament to the importance that the Commission attaches to the rule of law and the protection of the EU budget. Today’s report focuses on exactly those key areas. First, enhanced operational coordination. Close coordination of operational activities and effective harmonisation and transposition of the relevant directives is key. These are directives such as the Directive on the Protection of the EU’s Financial Interests, the Fifth Anti—Money Laundering Directive and the Directive on the Protection of Whistle—blowers. The Commission is following up on the corrective measures taken by the Member States following the infringement procedures launched over the past years. Secondly, digitalisation and interoperability of data. It is clear that the fight against fraud, corruption and conflict of interest must adapt to the digital world. We need tools that enable us to handle increasing amounts of data and foster a cultural change to enable those managing and protecting EU resources to use up—to—date technologies. The targeted adjustment of the financial regulation offers an opportunity to improve the reliability and quality of data, especially on recipients of Union funding and transparency on the use of EU funds. The recent Commission initiative on VAT in the digital age, in particular, the real-time digital reporting of transactions, would be key in protecting the VAT revenue source for national and EU budgets. The Commission is also revising the action plan to the anti—fraud strategy. The revision will focus on the current Multiannual Financial Framework, the Recovery and Resilience Facility, digitalisation and conflict of interest. Thirdly, fighting corruption and organised crime. As announced by President von der Leyen during the State of the Union address, we will soon present an anti—corruption package this spring. As part of the package, we will set out the priorities of the EU and the actions to fight corruption. We will also propose an update of the EU legislation to ensure that all forms of corruption are criminalised in all Member States, that legal persons may also be held responsible for offences, and that these offences incur effective, proportionate and dissuasive penalties. All the initiatives that I have mentioned today are key examples of our actions in the fight against fraud. They are part of the tremendous work that goes on to protect crucial aspects of the European project and its funding. Thank you for your attention. I look forward to a constructive debate.