Anti-Fraud Measures Must Exceed Their Overall Costs to Protect EU Funds
In an effort to safeguard European Union (EU) funds from fraud and corruption, anti-fraud measures must exceed their overall costs. This principle is guided by the concept of proportionality, which demands that these measures be commensurate with the high reputational cost linked to fraud and corruption.
The Commission’s Strategy for Combating Fraud
The European Commission’s strategy for combating fraud in EU funding programs is built on a set of core guiding principles:
- Ethics
- Transparency
- Fraud prevention
- Effective investigation capacity
- Sanctions
- Good cooperation between internal and external actors
These principles aim to create an appropriate anti-fraud framework that prevents and detects fraud effectively.
Ethics: A Cornerstone of Anti-Fraud Efforts
The competent authorities are committed to observing the highest standards of ethical behavior and integrity. Staff members must comply with these standards, receive adequate training on fraud risks, and work in line with organizational values that prioritize:
- Integrity
- Accountability
- Service
- Efficiency
- Effectiveness
Enhanced Transparency: A Key Tool Against Fraud
Transparency is essential in the fight against fraud. Relevant information on EU fund use should be made available in a format that can be audited, compared, and analyzed for anti-fraud purposes, subject to data protection rules.
Fraud Prevention: A Proactive Approach
The design of spending programs is crucial in preventing fraud. Clear delineation between funding programs and operations at the design stage is essential in ensuring a coherent approach. Furthermore, internal control systems should be put in place to deter potential fraudsters and maximize staff commitment to combating fraud.
- The National Anti-Fraud Coordination System (NAFCS) Action Plan requires a National Risk Assessment (NRA).
- The results of the first NRA were published in December 2022, identifying potential fraud and corruption risks, including those related to procurement processes and government employment.
Investigative Costs Must Be Justified
The prevention of fraud is an essential component of administering EU funding programs. Investigative costs, financial losses, and reputational risk are significant concerns. Therefore, anti-fraud measures must be proportionate to the risks they aim to mitigate.
Conclusion
In conclusion, anti-fraud measures must exceed their overall costs to protect EU funds from fraud and corruption. The Commission’s strategy emphasizes ethics, transparency, fraud prevention, effective investigation capacity, sanctions, and good cooperation between internal and external actors. National authorities must prioritize these principles to safeguard public resources and maintain public trust.