The Members of the European Parliament from twenty countries of the European Union (EU) have adopted a text endorsing the creation of a European Public Prosecutor’s Office specialized in combating VAT fraud and fraud against European subsidies by 2020.
This independent anti-fraud body will have jurisdiction only in 20 member states that have agreed to participate in an “enhanced cooperation”.
The European Public Prosecutor’s Office will have a central office in Luxembourg, where European prosecutors – one from each participating member state – will be assembled, as well as “delegated European prosecutors” in the member states.
However, the project does not provide for the creation of European criminal courts: when the European magistrates have completed their investigations, they will have to refer suspects to national courts.
The body will particularly target fraud involving European structural funds, but it will also have the authority to track cross-border VAT fraud, as long as the amount exceeds 10 million euros. According to the European Commission, at least 50 billion euros in VAT revenue elude public authorities in Europe every year due to this type of fraud.
