Creating a Common Market for Fraud in the European Union

In: The independent review: journal of political economy, Band 8, Heft 2, S. 249-257

Abstract

Considers the phenomenon of fraud & corruption in the European Union (EU) where member states seem to have manifested a benign neglect toward it. EU & European Economic Community institutions are overviewed before looking at the EU annual budget & programs. It is contended that the EU's peculiar institutional arrangements contribute to fraud against the budget & shed light on why more & better action has not been taken against it. The Common Agricultural Policy, taker of the EU's largest budget share, is examined to demonstrate some kinds of fraud & the poor means of monitoring for it. With no commonly applied definition of fraud, which is transnational by nature, among EU members, enforcement mechanisms remain weak; national administrative & justice systems inconsistently respond to fraud. Member state reluctance to cede further sovereignty to the EU hampers efforts to provide an institutional solution (eg, an EU office of public prosecutor). Coupled with a desire to protect national economic interests, the member states have effectively created a market for fraud. 14 References. J. Zendejas