Brussels, 20/03/2014 (Agence Europe) - On Thursday 20 March, the parliamentary committees on budgetary control and civil liberties adopted new rules to punish fraud against the EU budget, which call on the member states to punish passive and active corruption, money-laundering or dishonest bidding for public procurement contracts, as well as fraud. According to an EP press release, fraud costs the EU €600 million every year.
Fraud against the EU budget currently includes cases where applicants provide false information in order to obtain funding for agriculture or regional development or where national officials accept money in return for awarding a public contract, in breach of procurement rules, the EP states.
Under the new draft directive, as amended by the MEPs, the maximum penalty for these crimes would be at least five or ten years' imprisonment (if the infringement was committed by an organised group). EU officials are included in the scope of the draft law.
The MEPs reduced the proposed damage threshold, above which natural persons can be handed down criminal penalties, from €10,000 to €5,000 euros.
In cases of crimes below this amount, the member states of the EU will be able to impose non-criminal penalties, such as fines. For legal persons, penalties may include temporary or permanent exclusion from EU tender procedures.
The MEPs rejected the Commission's proposal, by 24 votes to 23, for a minimum penalty of six months' imprisonment. The MEPs who opposed minimum penalties argued that they do not respect the diversity of legal systems and the need for judicial discretion.
They did, however, back the Commission's proposal to include value added tax fraud in the scope of the directive. They also widened the definition of “EU financial interests” to include assets and liabilities as well as borrowing and lending activities.
The directive will be put to a plenary vote in April and the discussions will continue under the next Parliament, the EP states. (SP)