On Thursday 8 December, the EU institutions agreed on a directive on protecting the EU’s financial interests with the aim of improving the fight against crimes such as fraud against the European budget and to facilitate the recovery of swindled EU funding.
The directive introduces common definitions for a number of crimes against the EU budget such as fraud, passive and active corruption and money-laundering. The dossier had been in deadlock over whether to include VAT fraud in the scope of the directive. Member states were reluctant to do so because that would mean covering tax questions in legislation negotiated using the usual legislative procedure although tax issues are the prerogative of the Council, which decides on such issues using unanimous voting.
As explained by Justice Commissioner Vera Jourova, the final agreement gives the future European prosecutor a mandate to cover serious cases of cross-border VAT fraud (cases of above 10 million euros).
The directive also introduces minimum rules on periods of prescription and penalties, including prison sentences for the most serious cases.
Slovak justice minister Lucia Žitňanská said that the protection of the EU’s financial interests is key for ensuring the most efficient use of European taxpayers’ money. She added that common definitions, common rules and minimum common sanctions are of the greatest importance for fighting fraud in the EU. (Original version in French by Élodie Lamer)