Financial Crime World

Budget Fraud in Hungary: An Analysis of EU Law and Cooperation

Introduction

Budget fraud is a significant problem in many countries, including Hungary. This article will provide an in-depth analysis of budget fraud in Hungary, its prevalence, and the role of the European Public Prosecutor’s Office (EPPO) in combating it.

Prevalence of Budget Fraud in Hungary

  • High incidence: Budget fraud accounts for nearly two-thirds of economic crimes committed in Hungary.
  • Significant problem: The high incidence of budget fraud highlights the need for effective measures to combat this crime.

The Role of the European Public Prosecutor’s Office (EPPO)

  • Key player: The EPPO plays a crucial role in combating budget fraud, particularly in non-EPPO Member States where it has enhanced cooperation with national authorities.
  • Instrumental in shaping work: The EU’s Directive on the protection of the European Union’s financial interests is key to combating budget fraud and has been instrumental in shaping the work of the EPPO.

Cooperation between Tax Administration and Criminal Proceedings

  • Essential for effective investigation: Cooperation between tax administration and criminal proceedings is essential for effective investigation of budget fraud cases, as many cases involve both tax infringement and criminal offenses.
  • Raises various questions and problems: The relationship between tax administration and criminal proceedings raises various questions and problems, including mutually exclusive effects of procedures, applicability of sanctions, and applicability of evidence.

Notable Quotes

  • Quote 1: “It is extremely difficult to fight against budget fraud… Therefore, crime prevention may be necessary to fight off the number of criminal offenses as well as diverting law enforcement agencies into the right direction regarding ongoing procedures.” (Balláné Szentpáli, 2020)
  • Quote 2: “By now, the European criminal law became a reality, in which – in addition to the protection of common interests – the legal practitioners cannot omit the legal harmonisation of criminal procedural law and the consideration of procedures conducted in the other Member States.” (Elek, 2019b)

Conclusion

Budget fraud is a significant problem in Hungary, and its treatment under EU law requires effective cooperation between tax administration and criminal proceedings. The EPPO plays a crucial role in combating budget fraud, and the EU’s Directive on the protection of the European Union’s financial interests has been instrumental in shaping the work of the EPPO. However, the relationship between tax administration and criminal proceedings raises various questions and problems that need to be addressed for effective investigation of budget fraud cases.