EU Prosecutor Accuses Commission of Cutting Crucial IT Budget

Laura Kövesi, the head of the European Public Prosecutor's Office (EPPO), has accused the European Commission of jeopardizing the EPPO's mission by cutting its €5 million IT budget. The EPPO, which investigates serious financial crimes affecting the EU's interests, claims that the Commission's decision will hinder its ability to carry out cross-border investigations into EU fraud cases.

Why this matters: The independence and effectiveness of the EPPO are crucial in combating financial crimes that affect the EU's interests, and any hindrance to its operations could have far-reaching consequences for the integrity of the EU's financial systems. The outcome of this dispute may set a precedent for the relationship between the EPPO and the European Commission, potentially impacting the EU's ability to tackle fraud and corruption.

The EPPO was launched in summer 2021, and the Commission agreed to provide IT facilities with no end date given. However, the Commission has now told the EPPO it wants to withdraw the IT support, which the EPPO estimates will cost around €5 million. In response, Kövesi has launched an "amicable settlement procedure" with the Commission, which is the last legal step before litigation.

The EPPO is currently investigating allegations of criminal wrongdoing in connection with vaccine negotiations between Ursula von der Leyen, President of the European Commission, and the CEO of Pfizer. In 2023, the number of EPPO investigations soared, with over 200 fraud investigations opened related to the EU-wide Recovery and Resilience Facility.

Kövesi stated, "The unilateral decision ... to terminate, on 31 December 2024, the provision of the mentioned services to the EPPO risks that the Union's independent prosecution office will be in the impossibility to carry out its tasks and achieve its mission." She emphasized, "It is incumbent on the Commission to abstain from any measure that could jeopardize the attainment of the Treaty objective entrusted to EPPO in combating crimes affecting the financial interests of the Union."

The EPPO is a relatively new institution, but it plays a crucial role in leading cross-border investigations into EU fraud cases. The Commission has denied any attempt to interfere in the EPPO's independence, stating that it "has been steadily supporting the EPPO's activities from the very beginning."

Kövesi launched the "amicable settlement procedure" with the Commission on April 9, 2024, following the Commission's announcement in February of its plan to cut the EPPO's IT budget. The number of EPPO fraud investigations has increased significantly, from 15 related to the EU-wide Recovery and Resilience Facility in 2022 to over 200 in 2023. As the dispute between the EPPO and the Commission continues, the impact on the EPPO's ability to effectively investigate and prosecute financial crimes affecting the EU's interests remains to be seen.

Key Takeaways

• EPPO head Laura Kövesi accuses European Commission of jeopardizing its mission by cutting €5m IT budget.
• Cut hinders EPPO's ability to investigate cross-border EU fraud cases, potentially affecting EU's financial integrity.
• EPPO launched "amicable settlement procedure" with Commission, last step before litigation.
• EPPO investigates vaccine negotiations and 200+ fraud cases related to EU's Recovery and Resilience Facility.
• Commission denies interfering with EPPO's independence, claiming steady support since its inception.