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EU Plans Overhaul of Anti-Fraud Powers to Secure Taxpayer Funds

With concerns mounting over the misuse of long-term budget funds, the European Commission is preparing to bolster the European Public Prosecutor’s Office by year’s end. Democracy Commissioner Michael McGrath confirmed that a regulatory revision will modernize how the bloc monitors transactions and investigates financial crimes across its 27 member states.

EU Plans Overhaul of Anti-Fraud Powers to Secure Taxpayer Funds

The proposed changes aim to overhaul the EU’s anti-fraud architecture, integrating advanced IT systems for real-time risk analysis. The EPPO has previously lobbied for the adoption of AI-driven tools capable of flagging suspicious patterns, a move deemed necessary to protect the union's financial integrity. These reforms arrive as the bloc grapples with persistent transparency gaps, including the lack of standardized regulations governing lobbying and the 'revolving door' phenomenon.

Recent rule-of-law reports highlight that while some nations have made progress, systemic issues persist. In Hungary, the dissolution of the sovereignty protection office marks a shift, yet independent civil society remains constrained. Meanwhile, member states like Denmark and Sweden face scrutiny over their own oversight of political influence. As these legislative gaps remain, the Commission’s push for stronger enforcement underscores a broader struggle to standardize ethical conduct and financial accountability across diverse jurisdictions.

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