BETA


2019/2128(INI) Protection of the European Union's finacial interests - combating fraud - annual report 2018

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead CONT KUHS Joachim (icon: ID ID) LENAERS Jeroen (icon: EPP EPP), CREȚU Corina (icon: S&D S&D), STRUGARIU Ramona (icon: Renew Renew), PEKSA Mikuláš (icon: Verts/ALE Verts/ALE), CZARNECKI Ryszard (icon: ECR ECR), FLANAGAN Luke Ming (icon: GUE/NGL GUE/NGL)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2020/12/08
   EC - Commission response to text adopted in plenary
Documents
2020/07/10
   EP - Decision by Parliament
Details

The European Parliament adopted by 421 votes to 167, with 93 abstentions, a resolution on the protection of the financial interests of the European Union - fight against fraud - annual report 2018.

Detecting and reporting irregularities

Parliament noted that the total number of fraudulent and non-fraudulent irregularities reported in 2018 (11 638 cases) was down by 25% compared to 2017 (15 213 cases) and that the value involved remained stable compared to the previous year (EUR 2.5 billion in 2018 compared to EUR 2.58 billion in 2017).

While the number of fraudulent irregularities reported in 2018 (1152 cases) remained stable compared to 2017, Members regretted that the amounts involved increased by 183%, the increase being largely due to two fraudulent irregularities concerning cohesion policy expenditure. They insisted on the need to recover these high amounts as soon as possible.

The Commission was invited to develop a methodology to improve reliability and provide more accurate estimates of the scale of fraud in the Union. Parliament also regretted that many Member States do not have specific legislation on the fight against organised crime. It called on the Member States to cooperate more closely on the exchange of information.

Parliament condemned the large-scale misuse of European structural and investment funds by high-level government officials in the Czech Republic and by other public actors in Hungary, Greece, Poland, Romania and Italy. It also condemned the misuse of the Cohesion Funds.

Recalling the transparency requirements for the CAP and cohesion policies, Members called on Member States to publish lists of the main beneficiaries of each fund in each Member State. They also called on the Commission to propose a specific complaint mechanism at EU level to support farmers facing, for example, abusive land-grabbing practices or pressure from criminal structures or organisations.

Revenue – own resources

Parliament noted the rise of 1 % in the number of fraudulent registered cases for the TOR collected (to 473 in 2018), and regretted the rise of 116 % in the financial amounts involved. It is deeply concerned that according to the Commission’s ‘fast estimates’ statistics, the VAT gap in 2018 amounted to approximately EUR 130 billion, which represents approximately 10 % of total expected VAT revenue, and that the Commission estimates that intra-Community VAT fraud cases cost around EUR 50 billion annually.

Parliament reiterated its position that OLAF’s competences in the field of value added tax investigations should in no way be limited or subject to any further administrative conditions. It called on the Commission to report annually on the amount of the Union's own resources recovered following the recommendations made by OLAF and to communicate the amounts still to be recovered.

Expenditure

Members noted the decrease of 3 % in the number of cases (679) reported as fraudulent irregularities in 2018 affecting expenditure. However, they stressed the alarming rate, of the opposite trend occurring in the financial amounts involved (EUR 1,032 billion), resulting in an increase of 198 %. They stressed the importance of respective management and close surveillance of the grants distributed under the programmes of the ESIFs (the European Structural and Investment Funds in the interests of efficient non-inflationary budgeting of the Funds and fraud avoidance.

The Commission's anti-fraud strategy

Parliament welcomed the adoption, in April 2019, of the Commission's anti-fraud strategy, which has been adapted following the Directive on the fight against fraud affecting the Union's financial interests through criminal law (PIF Directive) and the Regulation establishing the European Public Prosecutor's Office (EPPO).

Members reiterated the need to ensure close and effective cooperation between OLAF and the European Public Prosecutor's Office. They deplored the fact that only 12 Member States have so far implemented the new PIF Directive, that eight others have partially implemented it and that the remaining Member States have not yet done so. They asked the Commission to monitor closely the transposition process in all Member States and to launch infringement procedures where necessary.

Deploring the fact that only 11 Member States have adopted a National Anti-Fraud Strategy (NAFS), Members called on the Commission to consider the adoption of national anti-fraud strategies as a condition for access to EU funds.

Parliament also stressed that the under-funding and understaffing of the European Public Prosecutor's Office during its development phase was unacceptable. Regretting that the necessary resources had been largely underestimated by the Commission, it called on Member States to appoint full-time prosecutors as soon as possible and encouraged the Commission to present a draft amending budget.

Areas for improvement

Parliament has highlighted two areas for improvement:

1. the Commission and the Member States should strengthen their analytical capacity to better identify data on fraud patterns, fraudsters’ profiles and vulnerabilities in EU internal control systems;

2. the assessment and management of fraud risks should be well coordinated and monitored.

The Commission was invited to:

- develop a systematic approach to respond to the ‘revolving doors’ phenomenon;

- consider the creation of a network of corruption prevention authorities within the European Union and to establish an internal corruption assessment mechanism for the EU institutions;

- develop a European-wide strategy to prevent, at an early stage, conflicts of interest of all financial actors implementing the EU budget;

- adopt new initiatives to measure the customs gap and develop an effective methodology for such measurement;

- adapt customs controls to new fraud risks and to the rapid expansion of cross-border trade facilitated by e-commerce as well as by paperless business.

Documents
2020/07/10
   EP - End of procedure in Parliament
2020/07/09
   EP - Results of vote in Parliament
2020/05/19
   EP - Committee report tabled for plenary, single reading
Documents
2020/05/19
   EP - Committee report tabled for plenary
Documents
2020/05/07
   EP - Vote in committee
2020/03/10
   EP - Amendments tabled in committee
Documents
2020/02/10
   EP - Committee draft report
Documents
2019/10/24
   EP - Committee referral announced in Parliament
2019/10/16
   EP - KUHS Joachim (ID) appointed as rapporteur in CONT

Documents

Votes

A9-0103/2020 - Joachim Kuhs - § 14 #

2020/07/08 Outcome: +: 397, -: 190, 0: 98
DE FR NL SE BE IE ES FI DK EL RO AT SI LT CZ PT SK LU LV EE CY BG HR MT HU PL IT
Total
92
78
29
20
21
13
57
14
14
21
29
19
8
11
21
21
14
6
8
7
6
16
11
6
19
50
74
icon: PPE PPE
179

Denmark PPE

For (1)

1

Luxembourg PPE

2

Latvia PPE

2

Estonia PPE

For (1)

1

Cyprus PPE

For (1)

Abstain (1)

2

Malta PPE

2
icon: Renew Renew
98

Ireland Renew

2

Finland Renew

3

Austria Renew

For (1)

1

Slovenia Renew

2

Lithuania Renew

2

Slovakia Renew

2

Luxembourg Renew

2

Latvia Renew

For (1)

1

Estonia Renew

3

Croatia Renew

For (1)

1

Hungary Renew

2

Italy Renew

Against (1)

1
icon: Verts/ALE Verts/ALE
64

Netherlands Verts/ALE

3

Sweden Verts/ALE

2

Belgium Verts/ALE

3

Ireland Verts/ALE

2

Spain Verts/ALE

2

Finland Verts/ALE

3

Denmark Verts/ALE

2

Austria Verts/ALE

3

Lithuania Verts/ALE

2

Czechia Verts/ALE

3

Portugal Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1

Latvia Verts/ALE

1
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Belgium GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

1

Czechia GUE/NGL

1

Cyprus GUE/NGL

2
icon: ID ID
75

Netherlands ID

Against (1)

1

Finland ID

2

Denmark ID

For (1)

1
3

Czechia ID

Against (2)

2

Estonia ID

Abstain (1)

1
icon: NI NI
28

Germany NI

1

Netherlands NI

1

Slovakia NI

Against (1)

Abstain (1)

2

Croatia NI

Abstain (1)

2

Hungary NI

1
icon: ECR ECR
61

Germany ECR

Against (1)

1

Netherlands ECR

Abstain (1)

4

Greece ECR

Against (1)

1

Romania ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Slovakia ECR

2

Latvia ECR

For (1)

Against (1)

2

Bulgaria ECR

2

Croatia ECR

Against (1)

1
icon: S&D S&D
143

Belgium S&D

Abstain (1)

3

Finland S&D

2

Greece S&D

Against (1)

2

Slovenia S&D

2

Lithuania S&D

For (1)

2

Slovakia S&D

3

Luxembourg S&D

Abstain (1)

1

Latvia S&D

2

Estonia S&D

2

Cyprus S&D

2

A9-0103/2020 - Joachim Kuhs - § 18/1 #

2020/07/08 Outcome: +: 586, 0: 75, -: 27
DE ES IT FR RO NL PL BE PT SE EL CZ AT HU FI DK IE BG SK HR LT SI LV EE CY MT LU
Total
92
57
74
78
31
29
50
21
21
20
21
21
19
19
14
14
13
16
14
12
11
8
8
7
6
6
6
icon: PPE PPE
182

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1
2

Malta PPE

2

Luxembourg PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Slovenia S&D

2

Latvia S&D

2

Estonia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Italy Renew

For (1)

1

Austria Renew

For (1)

1

Hungary Renew

2

Finland Renew

3

Ireland Renew

2

Slovakia Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

2

Slovenia Renew

2

Latvia Renew

For (1)

1

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
64

Spain Verts/ALE

2

Netherlands Verts/ALE

3

Belgium Verts/ALE

3

Portugal Verts/ALE

1

Sweden Verts/ALE

2

Czechia Verts/ALE

3

Austria Verts/ALE

3

Finland Verts/ALE

3

Denmark Verts/ALE

2

Ireland Verts/ALE

2

Lithuania Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

For (1)

1

Belgium GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Czechia GUE/NGL

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

1

Cyprus GUE/NGL

2
icon: NI NI
28

Germany NI

1

Netherlands NI

1

Hungary NI

1

Slovakia NI

Abstain (1)

2

Croatia NI

Abstain (1)

2
icon: ECR ECR
61

Germany ECR

Abstain (1)

1

Romania ECR

Abstain (1)

1

Greece ECR

Abstain (1)

1

Bulgaria ECR

2

Slovakia ECR

Abstain (1)

2

Croatia ECR

Abstain (1)

1

Lithuania ECR

Abstain (1)

1

Latvia ECR

For (1)

Abstain (1)

2
icon: ID ID
75

Netherlands ID

Against (1)

1

Czechia ID

For (1)

Against (1)

2
3

Finland ID

2

Denmark ID

For (1)

1

Estonia ID

For (1)

1

A9-0103/2020 - Joachim Kuhs - § 18/2 #

2020/07/08 Outcome: +: 548, -: 116, 0: 24
DE ES FR RO NL AT HU BE PT EL FI CZ IE IT BG SE SK DK HR LT SI EE LV CY MT LU PL
Total
92
57
78
31
29
19
19
21
21
21
14
21
13
74
16
20
14
14
12
11
8
7
8
6
6
6
50
icon: PPE PPE
182

Denmark PPE

For (1)

1

Estonia PPE

For (1)

1

Latvia PPE

2
2

Malta PPE

2

Luxembourg PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Slovenia S&D

2

Estonia S&D

2

Latvia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Austria Renew

For (1)

1

Hungary Renew

2

Finland Renew

3

Ireland Renew

2

Italy Renew

For (1)

1

Slovakia Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

2

Slovenia Renew

2

Estonia Renew

3

Latvia Renew

For (1)

1

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
64

Spain Verts/ALE

2

Netherlands Verts/ALE

3

Austria Verts/ALE

3

Belgium Verts/ALE

3

Portugal Verts/ALE

1

Finland Verts/ALE

3

Czechia Verts/ALE

3

Ireland Verts/ALE

2

Sweden Verts/ALE

2

Denmark Verts/ALE

2

Lithuania Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

Against (1)

1

Belgium GUE/NGL

For (1)

1

Portugal GUE/NGL

4

Finland GUE/NGL

For (1)

1

Czechia GUE/NGL

1

Ireland GUE/NGL

Abstain (1)

4

Sweden GUE/NGL

Against (1)

1

Denmark GUE/NGL

Against (1)

1

Cyprus GUE/NGL

2
icon: NI NI
28

Germany NI

1

Netherlands NI

Against (1)

1

Hungary NI

1

Slovakia NI

Against (1)

Abstain (1)

2

Croatia NI

Abstain (1)

2
icon: ECR ECR
61

Germany ECR

Against (1)

1

Romania ECR

Against (1)

1

Greece ECR

Against (1)

1

Bulgaria ECR

2
3

Croatia ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Latvia ECR

For (1)

Against (1)

2
icon: ID ID
75

Netherlands ID

Against (1)

1
3

Finland ID

2

Czechia ID

Against (2)

2

Denmark ID

For (1)

1

Estonia ID

For (1)

1

A9-0103/2020 - Joachim Kuhs - § 23 #

2020/07/08 Outcome: +: 588, -: 90, 0: 9
DE IT ES FR RO NL BE PT AT HU EL SE FI DK IE SK BG CZ HR LT SI EE CY MT LV LU PL
Total
92
74
57
78
30
29
21
21
19
19
21
20
14
14
13
14
16
21
12
11
8
7
6
6
8
6
50
icon: PPE PPE
181

Denmark PPE

For (1)

1

Estonia PPE

For (1)

1
2

Malta PPE

2

Latvia PPE

2

Luxembourg PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Slovenia S&D

2

Estonia S&D

2

Cyprus S&D

2

Latvia S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Italy Renew

For (1)

1

Austria Renew

For (1)

1

Hungary Renew

2

Finland Renew

3

Ireland Renew

2

Slovakia Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

2

Slovenia Renew

2

Estonia Renew

3

Latvia Renew

For (1)

1

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
64

Spain Verts/ALE

2

Netherlands Verts/ALE

3

Belgium Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Sweden Verts/ALE

2

Finland Verts/ALE

3

Denmark Verts/ALE

2

Ireland Verts/ALE

2

Czechia Verts/ALE

3

Lithuania Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

For (1)

1

Belgium GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

1

Czechia GUE/NGL

1

Cyprus GUE/NGL

2
icon: NI NI
28

Germany NI

1

Netherlands NI

1

Hungary NI

1

Slovakia NI

Against (1)

2

Croatia NI

Abstain (1)

2
icon: ID ID
75

Netherlands ID

Against (1)

1
3

Finland ID

2

Denmark ID

For (1)

1

Czechia ID

For (1)

Against (1)

2

Estonia ID

For (1)

1
icon: ECR ECR
61

Germany ECR

Against (1)

1

Romania ECR

Against (1)

1

Netherlands ECR

4

Greece ECR

Against (1)

1
3

Bulgaria ECR

2

Croatia ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Latvia ECR

Against (1)

Abstain (1)

2

A9-0103/2020 - Joachim Kuhs - § 52 #

2020/07/08 Outcome: +: 562, 0: 81, -: 45
DE ES IT FR RO PL NL CZ PT AT HU BE EL SE FI DK BG IE SK HR LT SI LV EE CY MT LU
Total
92
57
74
78
31
50
29
21
21
19
19
21
21
20
14
14
16
13
14
12
11
8
8
7
6
6
6
icon: PPE PPE
182

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1
2

Malta PPE

2

Luxembourg PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Slovenia S&D

2

Latvia S&D

2

Estonia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Italy Renew

For (1)

1

Austria Renew

For (1)

1

Hungary Renew

2

Finland Renew

3

Ireland Renew

2

Slovakia Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

2

Slovenia Renew

2

Latvia Renew

For (1)

1

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
64

Spain Verts/ALE

2

Netherlands Verts/ALE

3

Czechia Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Belgium Verts/ALE

3

Sweden Verts/ALE

2

Finland Verts/ALE

3

Denmark Verts/ALE

2

Ireland Verts/ALE

2

Lithuania Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

For (1)

1

Czechia GUE/NGL

1

Portugal GUE/NGL

4

Belgium GUE/NGL

For (1)

1

Sweden GUE/NGL

For (1)

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

1

Cyprus GUE/NGL

2
icon: NI NI
28

Germany NI

1

Netherlands NI

1

Hungary NI

1

Slovakia NI

Against (1)

2

Croatia NI

Abstain (1)

2
icon: ECR ECR
61

Germany ECR

Abstain (1)

1

Romania ECR

Abstain (1)

1

Netherlands ECR

4

Greece ECR

Abstain (1)

1

Sweden ECR

Against (1)

3

Bulgaria ECR

2

Croatia ECR

Abstain (1)

1

Lithuania ECR

Abstain (1)

1

Latvia ECR

For (1)

Abstain (1)

2
icon: ID ID
75

Netherlands ID

Against (1)

1

Czechia ID

For (1)

Against (1)

2
3

Belgium ID

For (1)

3

Finland ID

2

Denmark ID

For (1)

1

Estonia ID

For (1)

1

A9-0103/2020 - Joachim Kuhs - § 53 #

2020/07/08 Outcome: +: 555, -: 114, 0: 19
DE ES RO NL FR BE PT AT HU SE EL CZ FI IE BG SK HR LT DK SI EE LV CY IT MT LU PL
Total
92
57
31
29
78
21
21
19
19
20
21
21
14
13
16
14
12
11
14
8
7
8
6
74
6
6
50
icon: PPE PPE
182

Denmark PPE

For (1)

1

Estonia PPE

For (1)

1

Latvia PPE

2
2

Malta PPE

2

Luxembourg PPE

2
icon: S&D S&D
143

Greece S&D

2

Lithuania S&D

2

Slovenia S&D

2

Estonia S&D

2

Latvia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Austria Renew

For (1)

1

Hungary Renew

2

Finland Renew

3

Ireland Renew

2

Slovakia Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

2

Slovenia Renew

2

Estonia Renew

3

Latvia Renew

For (1)

1

Italy Renew

For (1)

1

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
64

Spain Verts/ALE

2

Netherlands Verts/ALE

3

Belgium Verts/ALE

3

Portugal Verts/ALE

1

Austria Verts/ALE

3

Sweden Verts/ALE

2

Czechia Verts/ALE

3

Finland Verts/ALE

3

Ireland Verts/ALE

2

Lithuania Verts/ALE

2

Denmark Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
37

Netherlands GUE/NGL

For (1)

1

Belgium GUE/NGL

For (1)

1

Sweden GUE/NGL

Abstain (1)

1

Czechia GUE/NGL

1

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

Abstain (1)

1

Cyprus GUE/NGL

2
icon: NI NI
28

Germany NI

1

Netherlands NI

1

Hungary NI

1

Slovakia NI

2

Croatia NI

Abstain (1)

2
icon: ECR ECR
61

Germany ECR

Against (1)

1

Romania ECR

Against (1)

1

Sweden ECR

For (1)

3

Greece ECR

Against (1)

1

Bulgaria ECR

2

Slovakia ECR

Abstain (1)

2

Croatia ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Latvia ECR

For (1)

Against (1)

2
icon: ID ID
75

Netherlands ID

Against (1)

1
3

Czechia ID

Against (1)

Abstain (1)

2

Finland ID

2

Denmark ID

Abstain (1)

1

Estonia ID

For (1)

1

A9-0103/2020 - Joachim Kuhs - § 57 #

2020/07/08 Outcome: +: 654, -: 25, 0: 9
DE IT ES PL FR RO NL BE PT SE EL CZ AT HU BG FI DK SK IE LT HR LV SI EE CY MT LU
Total
92
74
57
50
78
31
29
21
21
20
21
21
19
19
16
14
14
14
13
11
12
8
8
7
6
6
6
icon: PPE PPE
182