EU prosecutors report 35% rise in financial crime cases and seek stronger powers
The EU’s public prosecutor has opened investigations into an estimated €67 billion of suspected fraud and other financial crimes, as it presses Brussels and national capitals for stronger powers to recover funds.
In its annual report published on Monday, the European Public Prosecutor’s Office (EPPO) said estimated losses reached a record level in 2025, driving a 35% increase in cases. The body, which became operational in 2021 to protect the bloc’s financial interests, said the scale of alleged wrongdoing reflected the growing sophistication of organised criminal networks.
The rise comes as the EU negotiates its next long-term budget, which is expected to grant governments greater flexibility in spending – a shift that prosecutors fear could increase vulnerabilities if safeguards are not reinforced.
The European Commission is preparing a broader overhaul of the bloc’s anti-fraud architecture from 2027, including possible revisions to the regulation that defines the remit of EPPO and other watchdogs.
Laura Kövesi, EPPO’s chief prosecutor, said the expanding caseload underscored structural weaknesses in enforcement. “With 981 ongoing VAT and customs fraud cases worth €45 billion of estimated damage, both to the EU and national budgets, we are making a dent in a criminal industry that has been ignored or tolerated for far too long,” she said.
The report highlights what it describes as an “alarmingly high level” of activity by large organised crime groups running cross-border schemes that are “high-reward and relatively low-risk,” including networks with links to China.
A long way to recovery
Much of the €67 billion figure relates to ongoing investigations into customs and VAT fraud, procurement manipulation and corruption. The sums represent suspected losses rather than proven offences, and recovering funds is often protracted.
Prosecutors must secure freezing orders, convictions and confiscation rulings in national courts – a complex process when cases span multiple jurisdictions.
The EPPO’s ability to lead cross-border investigations is a key advantage. Successful cases can yield significant returns: in February, Italian authorities recovered €40 million in a VAT fraud case led by the office.
Yet the recovery of funds for the EU budget remains opaque. Although national courts granted freezing orders worth billions of euros in EPPO cases last year, only a few hundred million euros in assets were frozen with a view to confiscation. Data on how much ultimately flowed back to the EU budget are not publicly available.
The European Court of Auditors has warned that the Commission lacks effective tools to determine whether recovered funds are properly reallocated to the EU budget.
The report also questions the level of institutional backing EPPO receives. Despite overseeing programmes worth billions of euros, EU institutions filed just 143 reports or complaints with the prosecutor last year.
By contrast, overall reporting continues to rise. EPPO processed 6,966 crime reports in 2025, up 6% from a year earlier, largely from private individuals and national authorities.
Reporting patterns vary widely. Italy flagged more than 700 cases, while Germany reported fewer than 100. Several countries – including Germany, Finland, Estonia, the Netherlands, Slovenia and Sweden – recorded no corruption investigations among their active EPPO cases. In Malta, by contrast, almost 30% of cases were classified as corruption-related.
(vib, cz)


