EU corruption costs €120bn a year
The cost of corruption to European Union has reached a staggering €120bn (£99bn), according to the European Commission's first bi-annual anti-corruption report.
EU Home Affairs Commissioner Cecilia Malmstroem, who delivered the report, wrote in the Swedish newspaper Goeteborgs-Posten, "The extent of the problem in Europe is breathtaking, although Sweden is among the countries with the least problems."
Malmstroem drew attention to the fact that the public procurement process in many member states had huge potential for fraud. The Commission studied corruption in all 28 member states and included two opinion polls on perceptions of fraud amongst EU citizens and businesses.
76 per cent of Europeans believe corruption is widespread in their own country. Greece topped the poll, with 99 per cent of citizens assuming widespread corruption, with Sweden the most optimistic at 54 per cent.
Most Europeans believe the situation has deteriorated, with over half saying corruption has risen in the past three years. Eight per cent reported witnessing a case of corruption but only 12 per cent of those who encounter it informed the relevant authorities.
European businesses are just as pessimistic as citizens. 75 per cent of companies said corruption was widespread in their country, with 43 per cent saying corruption was an obstacle to doing business.
The report came six months later than originally planned and excluded EU institutions.
The report said of the UK:
Petty corruption does not appear to pose a challenge. Moreover, the UK has made strides in encouraging its companies to refrain from bribing officials abroad, through stringent legislation and detailed guidelines. Traditionally, the UK promotes high ethical standards of public service.
However, it did suggest there were a number of areas in which the UK could make progress such as ensuring transparency in out-of-court settlements in corruption cases.