Brussels, 16/04/2014 (Agence Europe) - On Wednesday 16 April, the European Parliament adopted its position on new rules to sanction fraud against the Community budget, which were adopted by the budget control and civil liberties committees on 20 March (see EUROPE 11043).
The draft directive calls on the member states to penalise passive or active corruption, money-laundering and dishonest tenders in public procurement procedures, in addition to fraud. Fraud against the EU budget currently covers cases in which applicants supply false information with a view to obtaining funds for agriculture or regional development, or if national civil servants accept money in exchange for awarding a public contract, in violation of the public procurement rules.
Under the text amended by the MEPs, the maximum penalty for all these crimes should be at least five or ten years' imprisonment (if the violation was committed by an organised group). The scope of application of the directive also covers EU civil servants.
The damage thresholds (or value of the advantage obtained by the offender) above which prison sentences kick in are defined in financial terms: €50,000 (instead of the €100,000 proposed by the Commission) and €30,000 for cases of corruption and money-laundering. The EP lowered the proposed threshold above which physical persons can be hit by criminal sanctions (€5,000 instead of €10,000). At the Council, the member states are in favour of this threshold of €10,000. For offences below this threshold, the state may impose administrative sanctions, such as fines. For legal persons, sanctions would go up to the temporary or permanent exclusion from EU calls for tender.
The MEPs rejected the provision requiring a minimum prison sentence of six months, invoking the difference between the legal systems and respect for legal discretion. On the other hand, they supported the inclusion of VAT fraud in the scope of the directive. The member states, however, are in favour of excluding VAT revenue.
It is worth noting that the definition of the “financial interests of the EU” has been extended to assets and liabilities as well as borrowing and lending activities. Discussions will continue under the next legislative period of the EP. (EL)