Corruption Costs EU Economy £99bn Annualy

{EU Commissioner Cecilia Malmstrom}

{{The European Commission reports that the extent of corruption in Europe is “breathtaking” and it costs the EU economy at least 120bn euros (£99bn) annually.}}

EU Home Affairs Commissioner Cecilia Malmstroem has presented a full report on the problem.

She said the true cost of corruption was “probably much higher” than 120bn.

Three-quarters of Europeans surveyed for the Commission study said that corruption was widespread, and more than half said the level had increased.

“The extent of the problem in Europe is breathtaking, although Sweden is among the countries with the least problems,” Ms Malmstroem wrote in Sweden’s Goeteborgs-Posten daily.

The cost to the EU economy is equivalent to the bloc’s annual budget.

For the report the Commission studied corruption in all 28 EU member states. The Commission says it is the first time it has done such a survey.

{{Bribes}}

In the UK only five people out of 1,115 – less than 1% – said they had been expected to pay a bribe. It was “the best result in all Europe”, the report said.

In Croatia, the Czech Republic, Lithuania, Bulgaria, Romania and Greece, between 6% and 29% of respondents said they had been asked for a bribe, or had been expected to pay one, in the past 12 months.

The EU has an anti-fraud agency, Olaf, which focuses on fraud and corruption affecting the EU budget, but it has limited resources. In 2011 its budget was just 23.5m euros.

{agencies}