MEPs ask for urgent changes to stop the flow of EU money to pockets of oligarchs 

The EU has obligation to ensure that its funds goes to those who need it, stressed MEPs in the Tuesday afternoon plenary debate with Commissioner Hahn. Many noted that the ongoing MFF negotiations presented a chance for systemic changes that would prevent fraud and conflict of interest in the future.

Many stressed that people who decide on the EU budget should not be its direct beneficiaries, and, if Member states fail to act, the EU must be able to intervene, via the tools currently in the pipeline, such as the EU Prosecutor’s office, the “rule of law” regulation.

Watch excerpts of the debate by clicking on the links below:

With the daily presence of half-legal procedures and conflict of interest in certain member states, “we are facing problems that are beyond project level, so we need to go above this level to tackle them”, said chair of Budgetary Control committee Monika Hohlmeier (EPP,DE) in opening of the debate. She called to expand European Commission’s powers to impose preventive measures and immediate corrections “when national management and control systems fail”.

Tomáš ZDECHOVSKÝ (EPP, CZ) stressed that those who decide on the future of the EU budget should not at the same time own companies who receive the EU subsidies, by referring to the situation with the current Czech prime minister Andrej Babiš but also pointing to situations in Slovakia, Romania, Bulgaria and Malta.

Isabel GARCÍA MUÑOZ (S&D, ES) reminded that European Parliament had been asking to solve those problems since 2014 and that there was an urgent need for effective mechanisms that would prevent conflict of interests.

Martina DLABAJOVÁ (Renew, CZ) stressed that the credibility and sense of Europe in the eyes of citizens was at stake now and that the current talks on the next MFF presented chance to set clear rules and correct deficiencies in the system.

Viola VON CRAMON-TAUBADEL (Greens/EFA, DE) said that it was not acceptable for the EU budget to finance oligarchs and that suspending payments were not enough - implementing EU prosecutor’s office was needed to stop oligarchs who were currently able to evade national prosecution.

Joachim KUHS (ID, DE) said that currently only the sypmtoms and not the causes of the problem were being faught, as the whole system of EU funds management was too complicated and needed radical simplifications and improved taransparency.

Bert-Jan RUISSEN (ECR, NL) called the Commission’s attention to the fact that currently third country investors were purchasing big areas of land in the EU countries.

Luke Ming FLANAGAN (GUE/NGL, IE) said that much of the problem was “by design and not by the accident” and pointed to the convergence and significant redistribution payment was the key to change.

The Commissioner for Budget and Administration Johannes Hahn, speaking at the beginning and in the end of the debate, reassured that the European Commission “takes any allegation of fraud and misuse of funds seriously”, by monitoring transparency, involving the EU anti-fraud watchdog OLAF and conducting audits.

He however reminded of the shared responsibility that the Commission and Member states have in management of the EU funds and stressed that the European Commission can only act within the current law. Adopting the “rule of law regulation”, currently awaiting the Council’s position, would give additional tool to protect the EU’s financial interests.

You can watch the plenary debate via EP Live, and EbS+.