11 October 2016

Politico: New EU prosecutors will crack down on cross-border fraud

A new European public prosecutors’ office with powers to investigate fraud against EU funds and VAT cheats will get the approval of member countries this week and could be in operation by 2018, according to officials in Brussels.

The European Public Prosecutors’ Office (EPPO) will be able to prosecute the misuse of EU funds, which cost the bloc an estimated €638 million last year, and take action against VAT fraud, which currently costs EU governments at least €50 billion a year in lost revenues. [...]

The Commission needs the backing of all EU governments — except the U.K., Ireland and Denmark, which have opted out — to take the 136-page proposal further. Failing that, a group of at least nine countries can proceed via so-called “enhanced cooperation” procedure. The actual remit of the EU prosecutors — such as definitions of the crimes involved and sentencing guidelines — will need the approval of MEPs and governments before it becomes law. [...]

Only 40 percent of fraud cases investigated by OLAF are ever taken up by national prosecutors, who are often not equipped to deal with cross-border criminal activity, said one Commission official. The hope is that the EPPO can act faster on such crimes by having specific expertise and being able to bypass national criminal justice systems.

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