| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2012) 363 final (11.7.12) |
| Publication Date | 11/07/2012 |
| Content Type | Policy-making |
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Fraud and related illegal activities affecting the Union's financial interests pose a serious problem to the detriment of the Union budget and thereby of taxpayers. The objective of the Union budget to improve living conditions and to generate growth and jobs is endangered if money is misused. This especially holds true in times of fiscal consolidation and responsibility and structural reforms for growth. According to the 2010 Commission report on the protection of the Union's financial interests, suspected fraud amounts to approximately 600 million euro annually on the revenue and expenditure side despite the legal framework in place. It can be assumed that the actual amount is even higher as not all cases are detected and reported. The Union needs to defend taxpayers' money in the most efficient way, making use of all possibilities offered by the Treaty on European Union. The damage to the EU budget calls for action to ensure equivalent and effective protection of the Union's financial interests, including criminal law as far as this proves necessary. Despite the development of an EU acquis in this area which includes fraud, corruption and money laundering, Member States have adopted diverging rules and consequently often diverging levels of protection within their national legal systems. This state of affairs shows that there is no equivalent protection of the Union's financial interests, and that measures against fraud have not reached the necessary level of deterrence. Common offences in all Member States would reduce the risks of divergent practice, as they would ensure a uniform interpretation and a homogeneous way to meet all the necessary prosecution requirements. They would also strengthen the deterrent effect and enforcement potential of relevant provisions, and reduce the incentive for potential perpetrators to move to more lenient jurisdictions within the Union to exercise their intentional illegal activities. The Commission is therefore proposing this Directive. |
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| Source Link | http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0363:FIN:EN:PDF |
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| Subject Categories | Economic and Financial Affairs, Justice and Home Affairs |
| Countries / Regions | Europe |
