The Treaty of Lisbon has established a new tool to protect the financial interests of the European Union. Article 86 of the Treaty on the Functioning of the European Union states

In order to combat crimes affecting the financial interests of the Union, the Council, by means of regulations adopted in accordance with a special legislative procedure, may establish a European Public Prosecutor’s Office from Eurojust…

The European Public Prosecutor’s Office shall be responsible for investigating, prosecuting and bringing to judgment, where appropriate in liaison with Europol, the perpetrators of, and accomplices in, offences against the Union’s financial interests…It shall exercise the functions of prosecutor in the competent courts of the Member States in relation to such offences.

On July 17th, 2013, the European Commission launched a proposal to improve the protection of the European Union’s financial interests. The proposal sets out specific objectives that the European Union would like to achieve through the establishment of the European Public Prosecutor’s Office (EPPO). One of the objectives is to establish a system that will investigate and prosecute offenses against the financial interests  of the European Union. The  drafters of the proposal also believe that it  will lead to an increase in the number of prosecutions which will lead to more convictions and dependable avenues to recover Union funds through the EPPO for fraud against the EU.

The EPPO will be independent and will work with each Member State’s law enforcement and European law enforcement to ensure an efficient way to deter EU fraud. The body was created because currently only national authorities can investigate any allegations of EU fraud of financial interests which caused the enforcement of the laws to end at the border of each state. Before the creation of the EPPO the entities which had the authority to investigate fraud did not have the ability to conduct criminal investigations. The treaty created the EPPO to authorize criminal convictions against fraud beyond national borders.

The EPPO is going to be led by the European Public Prosecutor (EPP) and will also consist of at least one European Delegated Prosecutor (EDP) for each member state. The types of crimes that will be under the jurisdiction of the EPPO include fraud, corruption, money laundering, and misappropriation. Other crimes that are “inextricably linked” with those crimes may be under the discretion of the EPPO.

It is estimated that 500 million euro  ($600 million) of the EU budget is lost to fraud every year and the EPPO is expected to effectively deal with this problem.

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