Tech-savvy criminal networks represent a significant challenge to the EU budget, as highlighted by Members of the European Parliament (MEPs) in a resolution assessing anti-fraud measures and financial protection efforts.
Among the primary recommendations is establishing a dedicated EU-wide initiative to develop AI-driven fraud detection mechanisms within institutions responsible for safeguarding the EU budget from financial crimes. This resolution was adopted with a substantial majority, receiving 473 votes in favour, 59 against, and 114 abstentions.
The European Commission is responsible for publishing an annual report that evaluates efforts to combat fraud against the EU’s financial interests, incorporating insights from various entities, including the European Public Prosecutor’s Office (EPPO), the European Anti-Fraud Office (OLAF), and the European Court of Auditors. The European Parliament uses this report to assess progress over the past year and identify areas requiring immediate attention.
Value Added Tax (VAT) fraud continues to be one of the most prevalent offences affecting the EU budget. MEPs have reiterated their call for the Commission to reconsider the €10 million threshold that must be surpassed before the EPPO can investigate VAT fraud cases. They argue that this threshold allows individuals to exploit legal loopholes by selecting jurisdictions with lax enforcement, thereby evading the EPPO’s oversight.
Additionally, the resolution urges the Commission to implement more stringent anti-fraud governance measures, enhance the efficiency of fund recovery mechanisms, and improve accountability to protect the financial interests of the EU. It emphasises the importance of improved coordination among key institutions—including OLAF, the EPPO, Europol, and national authorities—to effectively counter evolving threats.
In 2023, EU and national authorities reported over 13,000 cases of fraud and irregularity, amounting to a total of €1.9 billion, both of which reflect an increase from the previous year.
