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Full speech of the European Chief Prosecutor, Laura Kövesi, at the European Parliament Committee on Civil Liberties, Justice and Home Affairs (LIBE) in Brussels, Belgium - 30 September 2024
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Honourable Members,
Ladies and Gentlemen,
Thank you for giving me the opportunity to speak to you today.
Please allow me a short introduction.
I like to be direct. I have been a prosecutor for half of my life. The kind of prosecutor who always worked cases: murders, rapes, organised crime, financial and economic crime, cybercrime, corruption.
I think I have seen it all, pretty much.
Five years ago, when I was appointed European Chief Prosecutor by the Parliament and the Council, I realised that this was a common assumption:
The European Public Prosecutor’s Office? Interesting, but very limited in scope. OK, it is the first transnational prosecution office in history.
But it will be dealing only with a very small portion of crime: fraud affecting the EU budget. Right?
Wrong. To tell you the truth, when we started operations in June 2021, we did not expect to see what we are seeing. The EPPO was created under the assumption that it would face organized crime groups from time to time.
In reality, very quickly, we found ourselves standing against criminals, who do not shy away from extreme violence. We expected our job to be about protecting the EU budget, only to find out it is about protecting our internal security.
Today, I would like to give you a more concrete insight into what the EPPO actually does.
Take investigation “Final Toast”, in Sicily. Together with the Guardia di Finanza, we arrested the son of a boss of the ‘Santapaola’ mafia clan for suspicion of VAT fraud. This is big. It means that the most dangerous organized crime groups are involved.
If there is something like a “Catalogue of Crime”, cross-border VAT fraud is in it. Prominently.
Mainly because it is considered low risk and very, very high reward.
Well, at least until the EPPO started to work. I guess the risk assessment is changing.
By the end of last year, we were investigating more than three hundred (300) cases of serious cross-border VAT fraud, with a damage estimated at more than eleven (11) billion EUR. Almost all of them with heavy involvement of organized crime.
We must be honest: as long as this remains a matter for tax and customs administrations only, we allow these groups to get richer and stronger. We make it too easy for them: if they get caught, they pay a fine, create a new company and carry on. We all have to recognize this: administrative tools are not enough to combat tax fraud. We need criminal law.
There is a transnational criminal ecosystem out there.
VAT fraud operations are funded with money from other criminal activities. Highly specialized criminal service providers launder money from VAT fraud and other criminal activities. The EPPO has evidence of money laundering operations of several organized crime groups, including for criminal activities outside of our competence.
Take investigation Admiral – a gigantic fraud, which could have never been uncovered without the EPPO. Two point two (2.2) billion Euro of damage. That is a lot of money missing to pay for teachers, nurses, police officers.
From a law enforcement perspective, what is most interesting is that we uncovered a professional money laundering criminal group. It operated across North Africa, Israel, the United Arab Emirates, France, Portugal, Italy, Serbia and Albania. We have identified its connections to drug trafficking, illicit tobacco production, investment fraud, illegal gambling, prostitution as well as different economic and financial crimes.
This is what I explained to the Police Chiefs at their annual meeting at Europol last week.
If, in the course of our investigations, we find information related to a criminal offence outside our competence, we are supposed to let national authorities know and send them all the relevant evidence.
With our limited means, based on information from the Admiral investigation alone, different competent national authorities initiated twenty-eight (28) new cases, and received key evidence for several of their ongoing, national investigations.
Now, consider this:
- Investigation Admiral: we have collected six hundred and thirty eight (638) terabytes of digital evidence.
- Investigation Silk Road: three hundred and fifty (350) terabytes.
- Investigation Midas: four hundred and eighteen (418) terabytes…
I could go on.
What is important: the EPPO gathered this information at record speed and transnationally. It is highly relevant for ongoing criminal activities and no one else could obtain it.
Over the past six months, we asked Europol to crosscheck twenty-four (24) of our cases. In more than half of them, we established connections with crimes outside our mandate.
We are talking about crimes such as drug trafficking, trafficking of weapons, terrorism financing, migrant smuggling, motor vehicle crimes, corruption or EU sanctions circumvention.
Ladies and Gentlemen,
I hear a lot of talk about how the new Commission should come with new ideas to improve the EU antifraud architecture.
I agree: there is room for improvement.
The detection and reporting of fraud affecting the EU budget still has to increase. Especially at European level.
But this can no longer be just about protecting the EU budget. Organized crime groups target the EU budget: subsidies, RRF funds… sure. But they are growing stronger in particular with massive VAT and customs fraud.
So, in my view, we must start with the most dangerous part of EU fraud – whenever organized crime is involved.
This means making the fight against VAT fraud and customs fraud a real political priority. Otherwise, we are not credible.
I understand there is a plan to reinforce Europol. Very good idea. Europol should be able to do more in support of EPPO investigations.
In addition, there should be dedicated, specialized investigators for EPPO cases in all the participating Member States.
I understand that the new Commission intends to fund national measures against corruption and EU fraud. Good. Let us ensure that this money is put to good use.
And let us not forget that great police work is not enough. You also need effective prosecution.
This means a proper budget for EPPO and a revision of our regulation.
Honorable Members, to conclude
I am convinced that we can change the way we fight organized crime groups in Europe.
I am asking for a stronger analytical capacity at EPPO, combined with a much bigger analytical power and responsibility at Europol, as well as dedicated and specialized investigators for EPPO cases in all the participating Member States.
I am not asking for a competence expansion to transnational organized crime. With just a few clarifications in our regulation, the EPPO could already contribute decisively to this fight.
If I could suggest anything, it would be to have a fresh look at the mandate of Europol.
When we talk about reinforcing the EU Antifraud architecture, we should start by giving EPPO and Europol the means to fight organized crime more efficiently.
A stronger EPPO together with a stronger Europol is the best way forward.
Thank you for your attention and I am looking forward to your questions.
You can watch the recording of the speech here.