The European Public Prosecutor’s Office (EPPO) is an independent judicial body of the European Union responsible for investigating, prosecuting, and bringing to judgment crimes affecting the EU budget and the Union’s financial interests. Its creation represents a decisive step in the fight against cross-border fraud and corruption within the European framework, ensuring a uniform response across all Member States.
This article provides a detailed analysis of the EPPO’s powers, the offenses it can investigate, its internal structure, its coordination with other European bodies, and how its actions may impact companies and citizens. In addition, practical examples and real cases will be included to illustrate how the EPPO operates in combating financial fraud.
What is the European Public Prosecutor’s Office (EPPO)
Origin and legal foundation
The European Public Prosecutor’s Office was formally established by Regulation (EU) 2017/1939 with the aim of ensuring the protection of the EU budget against crimes of a financial nature. Its creation responds to the need to overcome the limitations of national prosecution services, which often face difficulties in investigating cross-border cases.
The EPPO originated from the growing concern of the Member States over fraud and corruption linked to European funds, and it officially began operations on 1 June 2021 with the support of the majority of Member States.
Structure and internal organization of the European Public Prosecutor’s Office
The EPPO operates through a decentralized system composed of European Delegated Prosecutors in each participating Member State, who exercise their powers under the supervision of the EPPO’s Central Office. This central office coordinates complex investigations involving more than one country and ensures the uniformity of judicial procedures.
Furthermore, the European Public Prosecutor’s Office maintains close cooperation with Eurojust, guaranteeing coordination in cases that require judicial assistance and ensuring that cross-border investigations are conducted in accordance with European standards of legality and the protection of fundamental rights.
Main objectives of the European Public Prosecutor’s Office
The EPPO pursues clear objectives within the European judicial sphere:
- Protection of the EU budget: Prevent economic losses caused by fraud or misappropriation of EU funds.
- Investigation of cross-border financial crimes: Act in cases that transcend national borders, including money laundering and international corruption.
- Guarantee of effective and uniform sanctions: Ensure that crimes are prosecuted with equal rigor in all participating Member States, avoiding disparities in the application of the law.
Based on these objectives, the European Public Prosecutor’s Office seeks to strengthen financial transparency and institutional integrity throughout the European Union.
Powers of the European Public Prosecutor’s Office (EPPO)
Offenses under the EPPO’s Jurisdiction
The European Public Prosecutor’s Office (EPPO) has clearly defined powers to investigate and prosecute crimes that directly affect the EU budget and the Union’s financial interests, including:
- Fraud against the EU budget: This covers the embezzlement of funds, undue subsidies, or fraud involving programs financed by the European Union.
- Corruption of European or national public officials: Crimes committed by authorities that undermine public trust and cause economic damage to the EU.
- Money laundering linked to EU funds: Illegal financial operations intended to conceal the illicit origin of public funds.
- Other serious crimes with a cross-border dimension: Offenses that, due to their complexity or international scope, affect several Member States and require the intervention of a European judicial body.
These crimes are prosecuted in coordination with national authorities, ensuring a harmonized criminal procedure.
Territorial and material scope of cction
The European Public Prosecutor’s Office exercises its powers in those Member States that have chosen to participate in this European judicial system. Currently, most EU Member States fully cooperate with the EPPO, although some countries have not yet adopted full participation.
In all cases, the EPPO works in close coordination with national prosecutors to ensure that investigations are carried out in accordance with both local and European legislation, while respecting the fundamental rights of those involved.
When a crime affects more than one country, the EPPO intervenes directly to guarantee the effectiveness of the investigation and avoid duplications. For example, European Delegated Prosecutors may collaborate simultaneously with national authorities to gather evidence, request precautionary measures, and prepare judicial proceedings in all the Member States involved.
However, the EPPO’s scope of action has limits and exclusions. Not all financial crimes fall within its jurisdiction; for instance, offenses that do not affect the EU budget remain outside its competence. Likewise, Member States that do not participate directly in the EPPO require specific cooperation agreements to enable investigations.
Coordination with national authorities and European bodies
The effectiveness of the EPPO largely depends on its ability to coordinate with national authorities and other European bodies. Its key strategic partners include:
- OLAF (European Anti-Fraud Office): The EPPO receives preliminary investigations from OLAF and can initiate criminal proceedings based on administrative findings.
- Eurojust: Ensures judicial coordination among Member States, facilitating cooperation in cases involving multiple jurisdictions.
- Europol: Provides technical and operational support in complex investigations of financial and cross-border crimes.
Investigation and operational procedure of the European Public Prosecutor’s Office
The investigation and operational procedure of the EPPO (European Public Prosecutor’s Office) is an essential legal mechanism for protecting the financial interests of the European Union. Below are the main phases of the EPPO’s investigation and action process:
Initiation of Investigations
The initiation of investigations by the EPPO can occur through various channels. First, the European Public Prosecutor’s Office may receive direct reports from EU institutions, national authorities, or private individuals. In addition, irregularities detected through internal controls carried out within the EU’s financial management systems can give rise to new proceedings.
Equally important is the close cooperation with OLAF (European Anti-Fraud Office), which continues to play a preventive and administrative role. While OLAF focuses on the administrative dimension, the EPPO assumes the criminal dimension, creating a complementary relationship between the two bodies.
Competent Delegation of the European Public Prosecutor’s Office
Determining the competent delegation ensures the proper territorial allocation of cases. According to Article 26(4) of Regulation (EU) 2017/1939, a case will be assigned to the EPPO delegation in the Member State where:
- The most significant part of the offense was committed,
- Or the principal damage to the Union’s financial interests occurred,
- Or where the suspects or the majority of the relevant evidence are located.
If several Member States are involved, the Permanent Chamber of the EPPO is responsible for designating which European Delegated Prosecutor will lead the investigation, in accordance with the criteria of efficiency and concentration of evidence (Articles 26(5) and 28 of the Regulation).
In practical terms, if a fraud involving EU funds affects only one country, the EPPO delegation in that country will be competent. However, if cross-border elements are present (for example, illicit transfers between several countries), the decision will be taken by the EPPO’s central level in Luxembourg, which may assign the case to a specific delegation or order cooperation between several delegations.
Phases of the procedure
The EPPO’s investigation procedure is structured into successive phases, all characterized by a technical and coordinated approach.
Preliminary investigation
In the first stage, European Delegated Prosecutors assess the information received, determine whether the EPPO has material competence, and analyze whether the criteria of seriousness and cross-border nature of the offense are met. This preliminary phase is essential to avoid duplication and ensure procedural efficiency.
Formal investigation and evidence gathering
Once a case is accepted, a formal investigation is opened, which includes actions such as searches, account seizures, interception of communications, and witness statements. Evidence is collected in accordance with national procedural law but under the direction of the EPPO.
Coordination with National and European Courts
Finally, the EPPO submits the results of the investigation to the competent national courts, which exercise judicial authority. This aspect is fundamental, as the European Public Prosecutor’s Office does not adjudicate cases but acts as a prosecutorial body working in close coordination with the jurisdictions of the Member States.
Sanctions and legal measures
The EPPO’s sanctioning procedure culminates in the initiation of criminal proceedings in the Member States, leading to the imposition of penalties that vary depending on the offense committed. Common sanctions include imprisonment, financial fines, and professional disqualification of the responsible parties. Additionally, the recovery of defrauded public funds is prioritized, allowing the European budget to be reimbursed for resources illicitly diverted. This financial recovery objective seeks to preserve citizens’ confidence in the proper use of EU funds.
Anonymous reporting procedures and whistleblower protection
The EPPO (European Public Prosecutor’s Office) has established specific mechanisms to ensure both the confidentiality of reports and the protection of the whistleblower’s identity, fully in compliance with Regulation (EU) 2017/1939 and Directive (EU) 2019/1937 on the protection of persons reporting breaches of Union law.
First, any individual may submit information or reports to the EPPO confidentially or anonymously through its official channels, either via electronic platforms or direct communication (Article 24 of Regulation 2017/1939).
Furthermore, whistleblower rights are protected by EU rules that require the EPPO and national authorities to safeguard the identity of the reporter against retaliation, dismissal, or any form of workplace discrimination, and to guarantee confidentiality at all stages of the procedure. These protection obligations are binding for Member States.
Finally, it is important to emphasize that whistleblower protection is not limited to employees of European institutions but also extends to private individuals, contractors, and beneficiaries of EU funds, thereby broadening its scope.
Impact of the European Public Prosecutor’s Office on citizens and companies
Obligations of companies in the EU
Companies operating within the European Union play a role in preventing and detecting fraud affecting EU funds, grants, or tax resources. In this context, the actions of the EPPO require companies to strengthen their compliance policies and implement preventive measures against potential irregularities.
According to the requirements set out in Regulation (EU) 2017/1939, companies must establish internal control and audit systems that reduce the risks of fraud involving EU funds. This includes enhancing due diligence in contracts and grants, ensuring the traceability of expenditures, and implementing internal integrity protocols.
Directive (EU) 2019/1937 on whistleblowing obliges companies with more than 50 employees or with a certain turnover to establish secure and confidential internal reporting channels. These channels allow employees and collaborators to report irregularities related to the management of EU funds. The EPPO’s impact not only results in greater external oversight but also requires companies to self-regulate through internal mechanisms for preventing and detecting economic crimes.
Rights and duties of citizens
On the other hand, citizens can participate in criminal proceedings initiated by the EPPO, either as victims of economic crimes or as witnesses in cases before national courts. In such instances, their procedural rights are recognized—including the right to be informed, to access translation and interpretation services, and to claim compensation for any harm suffered—in accordance with EU law and the national procedural law of each Member State.
In conclusion, the EPPO’s impact on citizens and companies is twofold: on one hand, it imposes preventive obligations on companies to ensure the proper use of EU funds; on the other, it provides citizens with enhanced protection and procedural participation.
Recent statistics and data of the European Public Prosecutor’s Office
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Active investigations | ≈ 1,117 — €14.1 billion | ≈ 1,927 — €19.2 billion | 2,666 — €24.8 billion |
| New investigations | 865 | 1,371 | 1,504 |
| Estimated damage | €14.1 billion | €19.2 billion | €24.8 billion |
| Asset freezes | €359.1 million | €1.5 billion | €2.42 billion (assets) |
| Charges filed | – | 139 | 205 |
| Reports processed | 3,318 | 4,187 | 6,547 |
Most frequent offenses and focus countries
In addition to VAT fraud, which has a significant economic impact, offenses related to EU grants stand out, particularly within the framework of NextGenerationEU. Although the report does not provide a detailed breakdown by country, according to an external source, the Member States most affected by estimated losses in 2024 are Italy (€3.48 billion), Germany (€2.74 billion), and Romania (€2.3 billion); in contrast, Finland, Estonia, and Slovenia show the lowest levels of loss.
Success cases of our firm in European offenses
Our firm’s involvement in proceedings related to the European Public Prosecutor’s Office (EPPO) and offenses against the financial interests of the Union has solidified our expertise in this highly specialized field. Below are some success cases (described generically to preserve client confidentiality) that illustrate our advisory and coordination capabilities.
Case 1: Defense in an investigation for agricultural grant fraud
A client, a beneficiary of EU rural development funds, was subject to a preliminary investigation for alleged misuse of agricultural subsidies. Our firm handled the defense, providing documentary and expert evidence demonstrating the proper use of the funds. Thanks to coordination with the national prosecutor’s office and EPPO delegated prosecutors, the procedure was closed without formal charges being filed.
✅ Outcome: Protection of the client’s reputation and safeguarding future eligibility for European funding.
Case 2: Advisory to a company in a cross-border VAT fraud investigation
A company operating in three EU Member States was flagged in an EPPO investigation for alleged intra-community VAT fraud. Our legal team designed a European tax compliance plan, regularized past operations, and actively cooperated with the authorities.
✅ Outcome: The company avoided criminal penalties, limiting the procedure to an administrative regularization, significantly reducing economic and reputational impact.
Case 3: Recovery of diverted funds in technological innovation projects
An international consortium approached our firm after detecting possible misappropriation of EU funds in a digital innovation program financed by the EU. We acted as external advisors, facilitating the reporting to the EPPO and supporting the partners throughout the investigation phase.
✅ Outcome: Recovery of over €1.2 million intended for R&D projects, ensuring continuity of activities and strengthening the consortium’s transparency before the European Commission.
Case 4: Representation in an investigation for corruption linked to EU public contracts
A private entity was investigated by the EPPO concerning a public contract partially funded with EU structural funds, involving allegations of possible undue payments to local officials. Our firm handled procedural defense, demonstrating that the payments corresponded to legitimately provided and documented services.
✅ Outcome: The procedure concluded with a partial dismissal, avoiding criminal consequences and allowing the company to maintain participation in European tenders.
Case 5: Assistance to an executive investigated for money laundering related to EU fraud
A senior executive of a multinational was linked to a transnational money laundering scheme connected to EU grant fraud. Our legal team designed a defense strategy, coordinating actions in two Member States and ensuring the protection of the client’s procedural rights before the EPPO.
✅ Outcome: The absence of direct responsibility was demonstrated, and the client was removed from the list of suspects, preserving both personal reputation and professional career.
Frequently Asked Questions (FAQ)
What types of offenses does the European Public Prosecutor’s Office investigate?
The EPPO investigates crimes that directly affect the financial interests of the European Union, in accordance with Directive (EU) 2017/1371 (“PIF Directive”) and Regulation (EU) 2017/1939. This includes:
- Fraud involving EU grants and funds.
- Cross-border VAT fraud exceeding €10 million.
- Embezzlement, corruption, and bribery affecting the EU budget.
- Money laundering linked to offenses against the Union’s financial interests.
Are all EU countries under the jurisdiction of the European Public Prosecutor’s Office?
No. Currently, the EPPO exercises competence in 22 participating Member States. Countries such as Sweden, Hungary, Poland, Ireland, and Denmark do not participate in the enhanced cooperation. In those cases, offenses against the EU’s financial interests are investigated by national prosecutors, although the EPPO may cooperate with them.
How can the European Public Prosecutor’s Office affect my company if I operate in multiple Member States?
Companies operating in multiple EU countries must strengthen compliance and internal control mechanisms. The EPPO can investigate public contracts, EU grants, or cross-border activities suspected of fraud. A procedure may start in one Member State but extend to all jurisdictions where the company operates.
What are the differences between the European Public Prosecutor’s Office and national prosecutors?
The EPPO has exclusive competence regarding offenses against the EU budget. Its delegated prosecutors investigate within Member States but under the central direction of Luxembourg.
What exclusive powers does the EPPO have compared to other EU bodies like OLAF or Eurojust?
- OLAF conducts only administrative investigations and issues recommendations but cannot initiate criminal proceedings.
- Eurojust coordinates judicial cooperation between States but does not investigate directly.
- The EPPO is the only authority with criminal investigation and prosecutorial powers in national courts.
What are the usual sanctions resulting from an European Public Prosecutor’s Office investigation?
Sanctions depend on the criminal law of the competent Member State and usually include:
- Custodial sentences for serious offenses (fraud, corruption, money laundering).
- High financial fines.
- Disqualification from contracting with public authorities or managing EU funds.
- Recovery of defrauded public funds.
Can the EPPO investigate crimes committed outside the EU if they affect the EU budget?
Yes. Article 23 of Regulation (EU) 2017/1939 allows the EPPO to exercise its competence outside the EU as long as the offenses have a direct connection to the EU budget. In such cases, international judicial cooperation with third countries is used.
How does the European Public Prosecutor’s Office cooperate with judicial and law enforcement authorities in Member States?
The EPPO operates through European Delegated Prosecutors integrated into national judicial systems. These prosecutors can:
- Order searches, seizures, and wiretaps.
- Request assistance from police and customs authorities.
- Coordinate with Eurojust and Europol in complex investigations.
What procedural rights do suspects have in European Public Prosecutor’s Office investigations?
Suspects enjoy the same fundamental rights as in national criminal proceedings, including:
- The right to defense and legal assistance.
- Presumption of innocence (Article 48 of the Charter of Fundamental Rights of the EU).
- The right to a fair trial within a reasonable timeframe.
Are there maximum deadlines for an EPPO investigation?
Regulation (EU) 2017/1939 does not establish a fixed deadline for investigations but requires them to be conducted within a reasonable timeframe (Article 41). Duration depends on complexity, international cooperation, and the volume of evidence.
Can decisions taken by the EPPO be appealed before European or national courts?
Yes. EPPO decisions are adopted under the applicable national procedural law and can therefore be appealed in national courts. Additionally, EPPO procedural acts may be subject to review by the Court of Justice of the European Union (CJEU) in certain cases (Article 42 of Regulation 2017/1939).
How does the European Public Prosecutor’s Office ensure the effective recovery of defrauded EU funds?
The EPPO can request national judges to:
- Impose preventive freezes on assets and bank accounts.
- Confiscate unlawfully obtained assets.
- Initiate ancillary civil actions to claim restitution of funds.
In this way, it ensures that financial resources return to the EU budget.
How to prepare for an investigation by the European Public Prosecutor’s Office (EPPO)
The European Public Prosecutor’s Office (EPPO) has established itself as a key actor in the fight against fraud, corruption, and offenses affecting the financial interests of the European Union. Its powers range from investigating cross-border VAT fraud to abuses in the management of EU funds, with competence in 22 Member States and full coordination with national courts.
Having a preventive strategy and a solid legal defense is crucial to successfully facing any proceeding before the EPPO. Our team combines expertise in European Union law and European criminal law, regulatory law, corporate law, customs law, and coordination with national prosecution offices, allowing us to anticipate risks, reinforce compliance, and design an effective defense.
In this context, both companies and individuals must be aware of their rights, obligations, and risks. For companies, it is essential to have compliance programs, internal controls, and fraud prevention mechanisms to reduce exposure to EPPO investigations. Transparency in the management of contracts and grants is the best guarantee against sanctions.
For individuals, those under investigation must know their procedural rights and have specialized legal assistance from the outset to ensure a successful defense.
Do you need advice on European offenses or support in an EPPO proceeding? 🇪🇺
Contact us at info@arthurmarin.com or +32 465 345 345 for a personalized and expert assessment that protects your interests.
