EU Prosecutor Warns of Widespread Corruption Linked to Farm Subsidies and COVID Recovery Funds

The European Public Prosecutor’s Office (EPPO) has issued a stern warning about extensive corruption linked to the European Union’s farm subsidies and the Recovery and Resilience Facility (RRF) funds. EPPO Chief Prosecutor Laura Koderu Kowesi revealed that fraudulent activities across EU member states are increasingly exploiting these funds, with Greece emerging as a striking example.

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What Happened
A large-scale fraud case in Greece recently exposed corruption involving EU farm subsidies. Investigations revealed that numerous subsidies were granted to individuals who neither farmed nor fulfilled requirements, prompting ministerial resignations. Kowesi emphasized that this problem extends far beyond Greece. Speaking to Politico, she explained: “We have seen subsidy fraud in nearly all member states. While the methods differ, the underlying issue is the same.” Farm subsidies account for about one-third of the EU budget, making them a prime target for fraud. Kowesi noted that honest farmers are being denied funds while others resort to bribery to secure subsidies.

Recovery and Resilience Facility Under Investigation
The RRF, established after the COVID-19 pandemic to aid economic recovery, is also under scrutiny. Kowesi revealed that organized crime is targeting these funds for illicit gains. EPPO is investigating hundreds of RRF-related cases across EU member states.

A Growing Challenge
Kowesi stressed that corruption undermines both the EU and national budgets. Recent investigations exposed large-scale fraud plans, such as schemes to remove anti-dumping duties on Chinese goods at the Port of Piraeus. To counter these threats, Kowesi called for increased resources, including more European prosecutors, special financial investigators, and enhanced cooperation with national police, customs, and tax authorities. Her goal is to strengthen cross-border investigations into corruption related to the EU budget.

Political and Legal Challenges
Efforts to combat corruption face political and legal hurdles. In Greece, investigations involving EU funds intersected with inquiries into the tragic Tempi train accident, which killed 57 people. However, the Greek government rejected calls to prosecute two former ministers, citing constitutional restrictions that only allow parliament to investigate such cases. Kowesi raised these concerns with the European Commission and other EU officials, who have assured her that changes to this provision may be forthcoming.

Threats and Resilience
Kowesi reported that her investigators in Greece face intimidation attempts. She emphasized: “Justice is not a TV reality show.” Despite these challenges, Kowesi expressed confidence in her team’s dedication: “The EPPO will remain steadfast, regardless of political pressure.”

Conclusion: The Fight Against Corruption
Fraud linked to EU farm subsidies and the Recovery and Resilience Facility is a persistent and growing problem across Europe. Kowesi’s call for transparency, accountability, and more resources reflects the scale of the challenge. As she stated bluntly: “There is no clean country.” The EPPO’s ongoing investigations will play a critical role in safeguarding the integrity of EU funds and ensuring justice for citizens.