The European Public Prosecutor’s Office (EPPO) is seeking a substantial 50% increase in its budget, aiming for nearly €125 million for 2026, up from its current allocation of approximately €86 million. This request comes in response to a significant rise in fraud cases impacting the European Union’s financial interests.
Escalating Fraud Cases
In 2024, the EPPO reported handling 2,666 active investigations, marking a 38% increase from the previous year. These cases collectively represent an estimated €24.8 billion in damages to the EU budget. Notably, over half of this amount—approximately €13.15 billion—is attributed to cross-border VAT fraud, often orchestrated by sophisticated criminal organizations.
Strain on Resources
European Chief Prosecutor Laura Kövesi highlighted the challenges faced by the EPPO, emphasizing that the agency’s current resources are insufficient to tackle the growing complexity and volume of fraud cases. She pointed out the need for enhanced cooperation with national authorities and the importance of equipping the EPPO with adequate tools and personnel to effectively combat financial crimes.
Impact on EU Recovery Funds
The EPPO’s investigations have also uncovered significant fraud involving the EU’s Recovery and Resilience Facility (RRF), part of the NextGenerationEU initiative. By the end of 2024, the agency was handling 311 active cases related to the RRF, with estimated damages exceeding €2.8 billion. These findings underscore vulnerabilities in the distribution and oversight of EU recovery funds.
Call for Enhanced Anti-Fraud Measures
The EPPO’s push for increased funding reflects a broader call for strengthening the EU’s anti-fraud architecture. Kövesi stressed the necessity of dedicated and specialized investigators across member states, as well as improved data sharing and coordination among EU institutions, to effectively address the evolving landscape of financial crime.
As the EPPO continues to confront rising fraud cases, its appeal for a budget increase aims to bolster its capacity to safeguard the EU’s financial interests and uphold the integrity of its financial systems.
