EU Fraud and New Member States: Is It a Case of the Curate’s Egg?

Abstract

This chapter will consider the experiences of two countries, the Czech Republic and Romania, in seeking to establish effective anti-EU fraud structures and measures. It will examine the problems these countries encountered, how they have sought to overcome them and the support they have received. Attention will also be paid to the context within which applications to join the European Union were made, the political, economic and social circumstances of the various countries including the extent of corruption. Common issues and problems will be considered such as: existing problems of corruption and economic crime, difficulties in establishing AFCOS (Anti-Fraud Co-ordination Service) structures/networks, support offered by OLAF and the Commission. Other issues such as the weaknesses of anti-fraud institutions which encompass a lack of knowledge of EU policy programmes, lack of investigatory experience, lack of knowledge of irregularity reporting requirements, incomplete installation of AFIS (Anti-Fraud Information System—a secure communication network) are also examined. Fragmentation is a major issue in all countries which leads to duplication of effort and inefficient use of resources. Wider lessons for future accessions of countries such as Serbia, Macedonia and Bosnia will also be drawn. The chapter concludes that like the curate’s egg—it is good in places, but much work still needs to be done.