Introduction

• Author: European Court of Auditors
• Pages: 6-13

6

Introduction

The fight against fraud in the EU

01 EU legislation distinguishes between1:

o 'Non-fraudulent irregularities', defined as any infringement of a provision of EU

law resulting from an act or omission by an economic operator which has, or

would have, the effect of prejudicing the general budget of the EU or budgets

managed by them because of an unjustified item of expenditure2.

o ‘Fraudulent irregularities’ (or ‘fraud’), defined3 as any intentional act or omission

relating to:

— the use or presentation of false, incorrect or incomplete statements or

documents, which has as its effect the misappropriation or wrongful

retention of funds from the general budget of the EU or budgets managed

by, or on behalf of, the EU,

— non-disclosure of information in violation of a specific obligation, with the

same effect, or

— the misapplication of such funds for purposes other than those for which

they were originally granted.

02 Article 325 of the Treaty on the Functioning of the European Union (TFEU)

stipulates that it is the joint responsibility of the EU (represented by the Commission)

and the Member States to counter fraud and any other illegal activities affecting the

EU’s financial interests. This obligation covers all EU revenue and expenditure

programmes and all policy areas.

1 We have removed references to EU revenue from these definitions.

2 Article 1(2) of Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the

protection of the European Communities’ financial interests (the ‘PIF Regulation’) (OJ L 312,

23.12.1995, p. 1).

3 Article 1(a) of the Annex to the Council Act of 26 July 1995 drawing up the Conventio n on

the protection of the European Communities’ financial interests (the ‘PIF Convention’).