EU to table new anti-corruption proposals by year-end, boost European Public Prosecutor's Office

The European Commission is set to table a series of new anti-corruption proposals before the end of the year, following the publication of reports examining rule-of-law issues across all 27 member states.

Key Proposals

Speaking to reporters in Brussels on Friday (17 July), EU Democracy Commissioner Michael McGrath outlined the planned measures:

• Strengthening the European Public Prosecutor's Office (EPPO): The Luxembourg-based office, which already conducts criminal investigations, will be subject to a proposed revision of its regulation later this year.
• Reviewing the EU's anti-fraud architecture: This encompasses a broad range of policies, rules, and agencies designed to prevent the misuse of EU taxpayer funds.

EPPO's Previous Calls

The EPPO had already called for greater investment in:

• Advanced IT systems capable of real-time monitoring and shared risk analysis
• AI tools to identify suspicious patterns and flag high-risk transactions

These warnings came amid broader concerns that the design of the EU's next long-term budget could leave it vulnerable to abuse.

Hungary Joins EPPO

With Hungary now joining the EPPO, the development is likely to unsettle individuals linked to former Prime Minister Viktor Orbán, amid widespread allegations of fraud involving substantial EU funds during his tenure.

Prime Minister Peter Magyar has pledged to dismantle Orbán's 16-year legacy, though the Commission's latest rule-of-law report indicates outstanding issues remain.

Progress and Remaining Concerns

According to an EU official speaking on condition of anonymity:

"Some issues that were considered as highly problematic last year have already been addressed to quite a large extent by the new government."

The official noted that Hungary has disbanded the so-called sovereignty protection office, established under Orbán, which had been used to target civil society and independent media.

However, the report also highlights:

• "Obstacles hindering the work of independent civil society organisations are yet to be removed"
• "No steps have been taken yet to adopt comprehensive legislation on lobbying and revolving doors"

Broader EU Concerns

Commissioner McGrath declined to comment on Hungary's former trade and foreign affairs minister Péter Szijjártó, who recently took a senior position at Chinese manufacturer BYD.

However, McGrath noted that the issue of lobbying rules and revolving doors—where politicians take positions in sectors they previously regulated—is a widespread problem across EU states.

Examples of Gaps in Member States

• Denmark: Despite a low perception of corruption, has no plans to introduce rules on revolving doors for ministers or on lobbying.
• Sweden: Only recently adopted legislation requiring lobbyists to register their contacts with politicians.
• Spain: A proposed law to improve lobbying rules and government transparency has not yet passed parliament.

The report states: "Shortcomings remain regarding compliance with transparency obligations related to political party financing."

It also notes that Spain's new national whistleblower authority has begun operating with limited funding and staffing.