MEPs call on EU budget watchdogs to use artificial intelligence

Criminal networks are taking advantage of new technologies

VAT fraud threshold for EPPO investigations should be reconsidered

Institutions need stronger coordination and should use artificial intelligence (AI)

Tech-savvy criminal networks are threatening the EU budget, warn MEPs in a resolution assessing anti-fraud and financial protection efforts and proposing enhanced safeguards.

A dedicated EU-wide initiative to develop AI-driven fraud detection mechanisms within the institutions responsible for preventing financial crimes against the EU budget. This was one of MEPs’ key demands in a resolution adopted in plenary on Tuesday, by 473 votes to 59, and with 114 abstentions.

Addressing VAT fraud

VAT fraud remains one of the most common crimes against the EU budget. MEPs reiterate their call on the Commission to reconsider the €10 million threshold that must be passed before the European Public Prosecutor’s Office (EPPO) can examine VAT fraud cases. As it currently stands, the threshold allows criminals to exploit legal loopholes by choosing jurisdictions where enforcement is weakest, thereby evading the EPPO’s intervention, they argue.

Strengthening anti-fraud governance

The resolution also urges the Commission to implement stricter anti-fraud governance measures, improve the efficiency of fund recovery mechanisms, and enhance accountability to protect EU financial interests. Better coordination among key institutions – including the European Anti-Fraud Office (OLAF), the EPPO, Europol, and national authorities – is crucial to impede evolving threats, it states.

In 2023, the number of fraud and irregularity cases reported by EU and national authorities exceeded 13,000, involving a total of €1.9 billion. Both figures represent an increase from 2022.

Background

The European Commission publishes an annual report assessing its own and member states’ efforts to combat fraud against the EU’s financial interests. Parliament draws on this report, and on input from the EPPO, the OLAF, the European Court of Auditors, and other institutions. It then adopts a resolution evaluating progress made over the past year and identifying areas requiring urgent action.