Changes from report parliamentary committee draft to plenary report

EXPLANATORY STATEMENT

Under the Treaty on the Functioning of the European Union (Art. 325(5)), the Commission is required to produce an Annual Report on the Protection of the EU’s Financial Interests (PIF Report), detailing measures taken at European and national levels to combat fraud affecting the EU budget. This report, based on data provided by Member States, highlights the areas most at risk, allowing for targeted action to protect the Union’s financial interests more effectively. The PIF Report serves as a critical instrument for transparency, accountability, and policy direction.

The protection of the EU’s financial interests faces significant challenges in an increasingly complex and rapidly evolving landscape. Rapid developments in technology, financial systems, and global crime networks require the EU to adapt swiftly to emerging threats. Legislative fragmentation and under-resourced national anti-fraud institutions hamper the fight against fraud, and reinforced national frameworks are essential for effective implementation of EU anti-fraud measures. The complexity of transnational investigations, particularly in tracking financial flows, underscores the importance of a strong cooperation among the Commission, EPPO, Europol, OLAF, and national authorities. Finally, the rise in cybercrime and the use of AI by criminals pose unprecedented risks to the EU budget. For all these reasons, the Anti-Fraud Architecture must keep pace with these developments by developing cutting-edge tools and strategies.

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ChangedThe INI reportsreport emphasizesemphasises the urgent need to strengthen and modernizemodernise the EU’s Anti-Fraud Architecture (AFA) in light of new challenges and opportunities.

A central focus is given to the governance of the AFA, which must be robust and adaptable, ensuring effective coordination among its components, particularly following the arrival of the European Public Prosecutor’s Office (EPPO) and its operational experience to date. Adapting the AFA to incorporate the role of EPPO more seamlessly is essential to improve cross-border investigations and ensure consistency in protecting the EU’s financial interests.

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ChangedEqually important is the adaptation of anti-fraud measures to new technologies. As criminals increasingly exploit advanced IT tools and artificial intelligence (AI) to divert EU funds, the Anti-Fraud Architecture must invest in its own technological capacity. This includes the digitalizationdigitalisation of processes, the interoperability of databases, and the integration of AI for fraud detection and prevention.

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ChangedFurthermore, the financial impact of anti-fraud actions must be maximizedmaximised through enhanced recovery of undue payments and confiscated funds.

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ChangedAddressing these challenges will require reinforced cooperation, harmonizedharmonised systems, and unwavering commitment to transparency and integrity at both EU and national levels. By tackling organizedorganised crime, corruption, and conflicts of interest head-on, the EU can ensure that its financial interests are safeguarded for the benefit of all European citizens.