Debate: Avoiding corruption, irregular spending and misuse of EU and national funds in case of emergency funds and crisis related spending areas
Date: MONDAY, 13 DECEMBER 2021
Speaker: Stella Kyriakides
Language: EN

The Commission intends to use the upcoming revision of the Financial Regulation as another opportunity to enhance the protection of the EU budget against irregularities, fraud, corruption and conflicts of interest, by developing the digitalisation of controls and audits and improving the quality and interoperability of the data on recipients of EU funding. It will also provide an opportunity to enhance transparency and public scrutiny with regard to the use of the EU budget.  Fighting corruption, including its prevention and repression, is a key element in the European Semester, as reflected in country-specific recommendations. The Commission encouraged Member States to address corruption-related issues in their recovery and resilience plans.  As part of the annual Rule of Law Report, we also report on anti-corruption measures in all Member States. The annual Rule of Law Report will continue in 2022 and for the first time it will include concrete recommendations to Member States. The Commission stands ready to support Member States to design and implement mechanisms to fight corruption and money laundering and to have proper safeguards for public prosecutions.  The Commission action plan accompanying the Commission Anti-Fraud Strategy includes a specific action related to fraud risks and vulnerabilities with regard to spending in emergency situations. The Commission has made a great effort to promote the adoption of national anti-fraud strategies and supported Member States with guidance and know-how. May I remind you that the Commission Provisions Regulation Article 72 for cohesion and that the Recovery and Resilience Facility Regulation Article 22 make clear that the relevant Member States are the first line of protection of the financial interests of the Union, ensuring that funds are used in full compliance with applicable Union and national law. Our rules highlight in particular Member States’ responsibility for prevention, detection and correction of fraud, corruption and conflicts of interests.  Member States are obliged to provide an effective and efficient internal control system to this effect. The role of the European Anti-Fraud Office, as well as those of the Commission, the European Court of Auditors and the European Public Prosecutor’s Office, are explicitly established in the Recovery Resilience Facility Regulation, Article 22. For these institutions and bodies to do their work, it is necessary that data are recorded and made available. We need to have clear and complete information always about the final beneficiaries of the funds.  The risk of criminal infiltration in the recovery funds is, however, only one small niche. The infiltration of organised crime in the economy as a whole is unprecedented in scale, with 80% of criminal networks using legal business structures to advance their criminal activities.  We have a comprehensive and integrated approach on corruption and security. The fight against corruption is a key priority under the EU’s union strategy, the most recent EU strategy to tackle organised crime, adopted in April 2021. The Organised Crime Strategy has a dedicated section, as well as actions on corruption, to tackle organised crime and infiltration.