CALL FOR EVIDENCE

FOR AN INITIATIVE (without an impact assessment)

This document aims to inform the public and stakeholders about the Commission's work, so they can provide feedback and participate effectively in consultation activities.

We ask these groups to provide views on the Commission's understanding of the problem and possible solutions, and to give us any relevant information they may have.

Title of the initiative

Fighting against corruption in the EU – updated rules

Lead DG – responsible unit

DG HOME – HOME A4

Likely Type of initiative

Proposal for a Directive

Indicative Timing

Q2-2023

Additional Information

New initiative announced in the Commission work programme for 2023; fighting against corruption in the EU – updated rules

This document is for information purposes only. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content. All elements of the initiative described by this document, including its timing, are subject to change.

A. Political context, problem definition and subsidiarity check

Political context

Corruption is extremely widespread and entrenched in many sectors of public life. The fight against corruption continues to be among the EU’s top political priorities.

The EU Security Union strategy has identified the link between corruption and organised crime as one of the relevant strategic objectives to be taken forward in 2020-2025. Moreover, the EU strategy to tackle organised crime for 2021-2025 aims to target action on the main criminal markets and to address corruption and the financial aspects of organised crime.

Corruption contributes to the erosion of the rule of law by diminishing trust in institutions and governments. The Commission monitors significant developments - both positive and negative, in the fight against corruption in Member States in the annual Rule of Law report.

President Von der Leyen announced in the State of the Union address 2022 that the Commission would deliver in the coming year a proposal to update the EU’s legislative framework for fighting corruption.

Problem the initiative aims to tackle

The current EU legal framework on corruption is outdated and incomplete.

This initiative will update EU rules, including by making international standards such as the United Nations Convention Against Corruption (UNCAC) binding in the EU.

The aim is to ensure that all forms of corruption are criminalised in all Member States, that legal persons may also be held responsible for such offences, and that these offences incur effective, proportionate and dissuasive penalties.

The proposal will also include measures to prevent corruption and facilitate cross-border cooperation as required by the UNCAC.

Basis for EU action (legal basis and subsidiarity check)

Corruption is a particularly serious crime with a cross-border aspect addressed in Article 83(1) of the Treaty on the Functioning of the European Union (TFEU). It can only be effectively tackled by common minimum rules across the EU.

Due to the transnational nature of corruption, and taking into account existing EU legislation, EU-level action is expected be more effective and efficient than action taken by individual Member States.

Legal basis

Article 83(1) TFEU.

Practical need for EU action

Considering the highly damaging impact of corruption and its links to organised crime, it is necessary to establish one single, integrated and coherent legal framework to fight corruption in the EU.

The EU is one of the least corrupt regions in the world, but no Member State is free from corruption. The link between corruption and organised crime in the EU has also come increasingly into focus. Europol’s recent Serious Organised Crime Threat Assessment (SOCTA) 2021 shows that criminal networks in Europe increasingly use corruption to enable their crimes and abuse legal business structures as part of their criminal activities.

Corruption has been estimated to cost the EU between EUR 179 billion and EUR 990 billion per year - up to 6% of its GDP. The Eurobarometer surveys on corruption conducted in 2022 show that corruption remains a serious concern for citizens and businesses in the EU. Almost 7 in 10 Europeans (68%) believe that corruption is widespread in their country and only 31% consider that their government’s efforts to combat corruption are effective.

Why should the EU act now?

·To adapt to the ever-changing criminal environment, as illustrated by the latest findings of Europol and its SOCTA report 2021.

·To update the EU’s policy and legislative framework to respond to these emerging challenges.

·To enable a discussion among the wide range of relevant authorities and stakeholders to explore and help develop potential future legislative, policy and/or operational EU measures on corruption.

B. What does the initiative aim to achieve and how

This initiative will update the EU legislative framework, including by aligning with international standards already binding on the EU, mainly the UNCAC. EU-level action would add value by helping to ensure a level playing field between Member States, as well as coordination and common standards. The analysis of the yearly Rule of Law reports concludes that due to gaps in and limited enforcement of existing legislation and the need for cooperation and capacity to prosecute cross-border cases, stronger coordination and common standards are needed across the EU. Furthermore, given the increasingly cross-border nature of corruption cases, close collaboration is needed between Member States and fighting corruption as a broader EU issue would allow for a broader involvement of all relevant stakeholders.

Likely impacts

The legislative proposal is expected to help prevent, detect and response to corruption, notably through common definitions of criminal offences and the alignment of criminal sanctions. Measures to prevent corruption, prosecute perpetrators and reduce the crime more broadly are expected to reduce the economic and social costs of corruption, which will have a positive effect on the economy as well as on the rule of law and on sustainable development in the EU. Reducing demand and ensuring dissuasive penalties for perpetrators is likely to increase the overall level of security and disrupt activities of organised crime groups. Finally, further harmonisation in this area should allow the EU to further align with international standards and reduce the administrative burden of cross-border cooperation between law enforcement and judicial authorities.

Future monitoring

Where appropriate, this initiative will be accompanied by guiding benchmarks to make it possible to measure progress, based on information from Member States and from private, academic and civil society stakeholders. Such monitoring will look contextually at, e.g. changes in the risks and challenges posed by corruption.

C. Better regulation

Impact assessment

No impact assessment is planned, as the initiative aims to introduce existing international commitments into EU law, leaving little margin for alternative courses of action. Moreover, the initiative is not likely to have significant economic, environmental nor social impacts and costs, or impacts entailing significant spending. This initiative will build on the results of available EU studies and reported practices developed by international organisations 1 .

Consultation strategy

Stakeholders are invited to give their views and provide input through this ‘call for evidence’. Building on this, the Commission will gather views from a wide range of public and private stakeholders. It will also gather feedback during regular meetings with stakeholders including on the Rule of Law report and anti-corruption experience-sharing workshops. It will consult a range of experts, such as Local research correspondents on corruption.

Why we are consulting?

To ensure that the Commission takes account of the stakeholders’ perspective by transparently gathering their views, arguments and underlying information and analysis on the risks, gaps and measures required at EU level.

Target audience

The consultations are addressed to a wide range of public and private stakeholders, including:

·National authorities in charge of prevention and suppression of corruption, including specialist bodies such as Financial Intelligence Units 

·EU and national-level law enforcement, judicial and legal professions bodies and agencies

·Civil society.

Input will also be expected from key international partners such as:

·the United Nations Office on Drugs and Crime (UNODC)

·OECD

·the Council of Europe (GRECO).

·the OSCE.