France takes legal action on Eurostat

By David Cronin

Date: 23/06/05

France's judicial authorities have started proceedings against a senior EU civil servant over the Eurostat scandal.

Daniel Byk, formerly a director at Eurostat, the European Commission's statistics office, was seconded to work for Luxembourg's EU presidency in February.

In 2003, the EU's anti-fraud office OLAF alleged that he and Yves Franchet, then Eurostat's director-general, were involved in the "vast looting of [European] community funds". OLAF sent a file to prosecutors in Paris over the affair, also naming Planistat, a French firm contracted to manage 'data shops' in which Eurostat publications were sold to the public.

Siim Kallas, the commissioner for administrative affairs, has now confirmed that the "French judicial authorities are bringing an action" against Byk.

Responding to a query by Austrian Socialist MEP Herbert Bösch, Kallas underlined that "the bringing of an action before a court cannot prejudge the fundamental principle that one is presumed innocent until proven guilty".

Byk, he claimed, had been transferred to Luxembourg's foreign ministry "in the interest" of Eurostat.

For the last few months, Byk has been working under Nicolas Schmit, the minister delegate for foreign affairs and immigration in the Grand Duchy. He has been tasked with carrying out analytical work on the EU's spending plans for 2007-13 and compiling data on industrial competitiveness in the 25 member states. His brief also allows him to work on the public relations strategy for Luxembourg's 10 July referendum on the EU constitution.

Separately, both Byk and Franchet have initiated legal action against the Commission for removing them from their Eurostat posts.

They have denied the accusations in the OLAF dossier, which imply they helped set up a bank account in Luxembourg, used to divert some €900,000 in funds that should have gone to Eurostat.

The controversy over Eurostat was considered by many observers of EU affairs as the most serious to arise during Romano Prodi's tenure as Commission president. Many MEPs called on Pedro Solbes, the commissioner in charge of Eurostat at the time, to resign for not pre-empting the affair. But he remained in his post until he was appointed as Spain's finance minister in 2004.

French judicial authorities have commenced legal proceedings against Daniel Byk, a former Director of Eurostat, the European Union's statistical arm. OLAF, the European Union's anti-fraud office, alleged in 2003 that there was a 'vast enterprise of looting' of EU funds at Eurostat, involving Eurostat's two most senior officials, Yves Franchet and Daniel Byk. OLAF sent French prosecutors a file naming Planistat, a French firm contracted to manage 'data shops' in which Eurostat publications were sold to the public.

Separately, both Byk and Franchet have initiated legal action against the European Commission for removing them from their Eurostat posts.