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Auditors see shortcomings in the fight against fraud involving EU funds

by AI | 16.Dec 2025 | Europe in brief AI

Not all EU funds are used properly. Two central bodies are supposed to detect cases of fraud. But the system has weaknesses, says the European Court of Auditors.

The logo of the European Public Prosecutor’s Office, EPPO, on a door to the office building. Photo: Horst Galuschka/dpa

Luxembourg (dpa) – From the perspective of the European Court of Auditors, inefficient information exchange between EU authorities is making the fight against fraud involving EU funds more difficult. In a special report, the auditors in Luxembourg criticize the system for reporting suspected cases to the anti-fraud office OLAF and the European Public Prosecutor’s Office (EPPO). The two authorities are responsible for protecting the EU’s financial interests. The Court of Auditors is calling for a new system to simplify investigations and minimize administrative burdens.

“The existing rules for reporting suspected fraud cases can lead to cases being reported twice,” the Court of Auditors notes. According to the report, a total of 27,000 reports were received between 2022 and 2024. It should be clearly regulated to whom the cases must be reported. The Court of Auditors recommends forwarding all incoming reports to a central archive.

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

Court of Auditors: EU Commission needs more oversight

The report also criticizes 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.

Another weakness, the auditors complained, is that the EU Commission does not follow up sufficiently on the results of fraud investigations. In 2024, courts instructed national authorities to confiscate illegal proceeds amounting to 232 million euros. This amount does not refer only to the damage to the EU budget, but to the total damage caused by the criminal offenses.

“The Commission does not know whether all funds owed to the EU budget are being repaid,” said Katarina Kaszasova of the Court of Auditors. The EU Commission is currently in the process of reviewing the anti-fraud system. It accepted the recommendations in the special report. (15 December)