Corruption and abuse of power are not new phenomena in Europe, but the lack of ambition from the EU institutions to address corruption is now arguably emboldening some governments, propped up in some cases by EU funds, to increase their attacks on the rule of law or to consolidate their autocratic regimes.
The headlines across Europe are increasingly full of corruption scandals – sometimes involving EU funds – embroiling politicians from across the political spectrum. Recent high-profile corruption cases have toppled the centre-right Rajoy government in Spain or triggered votes of non-confidence in Babiš’ liberal-led Czech Republic.
The latest estimates regarding the cost of corruption across the EU put the loss to GDP as a result somewhere between €179 billion and €950 billion each year.However, corruption and its costs are often hard to grasp for the ordinary citizen, who still suffers the consequences of a lack of investment in essential public services, an unfair business environment and an abusive and reckless elite.
Using the the most recent data and studies available, this document compares the costs of corruption to public investment in education, healthcare, childcare and housing, elderly care, or policing and fire services. The aim is to raise public awareness about the cost of corruption across the EU by giving tangible examples of what this could mean for the average person, and to call for a substantial increase in the fight against corruption by the European Union institutions.
WE HAVE ESTIMATED THAT THE HIT TO GDP, AS A RESULT OF CORRUPTION ACROSS THE EU, IS AROUND € 904 BILLION EVERY SINGLE YEAR (*).
This includes the indirect effects of corruption, such as loss in tax revenues and decreased foreign investment.
(*) “The Cost of Non-Europe in the area of Organised Crime and Corruption”:
http://www.europarl.europa.eu/RegData/etudes/STUD/2016/579319/EPRS_STU%282016%29579319_EN.pdf