Commission Staff Working Document: Statistical evaluation of irregularities reported for 2016 Own Resources, Natural Resources, Cohesion Policy, Pre-accession and Direct expenditure, accompanying the document "Report from the Commission to the European Parliament and the Council: Protection of the European Union's financial interests - Fight against Fraud Annual Report 2016"

1. Tekst

Council of the European Union

Brussels, 25 July 2017 (OR. en)

11503/17 ADD 2

GAF 40 FIN 496

COVER NOTE

From: Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 24 July 2017

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union

No. Cion doc.: SWD(2017) 266 final - PART 2/2

Subject: Commission Staff Working Document: Statistical evaluation of irregularities reported for 2016 Own Resources, Natural Resources, Cohesion Policy,

Pre-accession and Direct expenditure, accompanying the document "Report from the Commission to the European Parliament and the Council: Protection of the European Union's financial interests - Fight against Fraud Annual Report 2016"

Delegations will find attached document SWD(2017) 266 final - PART 2/2.

Encl.: SWD(2017) 266 final - PART 2/2

EUROPEAN COMMISSION

Brussels, 20.7.2017 SWD(2017) 266 final

PART 2/2

COMMISSION STAFF WORKING DOCUMENT

Statistical evaluation of irregularities reported for 2016

Own Resources, Natural Resources, Cohesion Policy, Pre-accession and Direct

expenditure

Accompanying the document

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

Protection of the European Union's financial interests - Fight against Fraud

Annual Report 2016

{COM(2017) 383 final i} {SWD(2017) 267 final} {SWD(2017) 268 final} {SWD(2017) 269 final} {SWD(2017) 270 final}

COMMISSION STAFF WORKING DOCUMENT Statistical evaluation of irregularities reported for 2016 Own Resources, Natural Resources, Cohesion Policy, Pre-accession and Direct expenditure .........................................................................................................................

4.

The European Structural and Investment Funds (ESIF) ............................................. 43

4.1. Trend analysis ............................................................................................................. 44

4.1.1. Irregularities reported as fraudulent ............................................................................ 47

4.1.2. Irregularities not reported as fraudulent...................................................................... 51

4.2. Specific Analysis – Irregularities reported in relation to the Programming Period

2007-13 ....................................................................................................................... 53

4.2.1. Objectives concerned by the reported irregularities ................................................... 54

4.2.1.1. Irregularities reported as fraudulent by Objective ...................................................... 55

4.2.1.2. Fraud and Irregularity Detection Rates by Objective ................................................. 57

4.2.2. Priorities concerned by the reported irregularities ...................................................... 58

4.2.2.1. Irregularities reported as fraudulent (fisheries not included) ..................................... 58

4.2.2.2. Irregularities not reported as fraudulent (fisheries not included) ............................... 59

4.2.2.3. Irregularities related to the priority 'R&TD' ............................................................... 60

4.2.2.4. Types of irregularities / modus operandi detected related to the priority 'R&TD' ..... 62

4.2.2.5. Geographical distribution of irregularities (fraudulent and non-fraudulent) detected in relation to the 'R&TD' priority ............................................................................... 64

4.3. Anti-fraud activities by Member States – programming period 2007-13 ................... 65

4.3.1. Duration of irregularities ............................................................................................ 66

4.3.2. Detection of irregularities reported as fraudulent by Member State in relation to the programming period 2007-13 ..................................................................................... 66

4.3.3. Fraud detection rate .................................................................................................... 67

4.3.4. Irregularity Detection Rate ......................................................................................... 68

4.3.5. Ratio of established fraud (programming period 2007-13) ........................................ 69

5.

Pre-Accession Policy (Pre-Accession Assistance and Instrument for Pre-Accession I and II) .......................................................................................................................... 72

5.1. The Pre-accession Assistance (PAA), 2000-06 .......................................................... 72

5.2. The Instrument for Pre-accession 2007-13 – IPA I .................................................... 72

5.3. The Instrument for Pre-accession 2014-20 – IPA II ................................................... 74

5.4. General analysis – Trend analysis .............................................................................. 76

5.4.1. Trend analysis – Pre-accession assistance (PAA) ...................................................... 76

5.4.2. Trend analysis Instrument for Pre-Accession (IPA I) ................................................ 77 5.5. Specific analysis – Financial year 2015 ...................................................................... 77

5.5.1. Pre-Accession Assistance (PAA) ............................................................................... 77

5.5.2. Instrument for Pre-Accession (IPA) ........................................................................... 78

6.

Direct Management .................................................................................................... 80

6.1. Introduction ................................................................................................................. 80

6.2. General analysis .......................................................................................................... 81

6.2.1. Five year analysis 2012-2016 ..................................................................................... 81

6.3. Specific analysis ......................................................................................................... 82

6.3.1. Recoveries according policy areas .............................................................................. 82

6.3.2. Recoveries according to legal entity residence ........................................................... 84

6.3.3. Method of detection .................................................................................................... 85

6.3.4. Types of irregularity ................................................................................................... 85

6.3.5. Time delay .................................................................................................................. 86

6.3.6. Recovery ..................................................................................................................... 86

COUNTRY FACTSHEETS ..................................................................................................... 87

Belgium - Belgique/België ....................................................................................................... 87

Bulgaria - България .................................................................................................................. 88

Czech Republic - Česká republika ............................................................................................ 89

Denmark - Danmark ................................................................................................................. 90

Germany - Deutschland ............................................................................................................ 91

Estonia - Eesti ........................................................................................................................... 92

Ireland - Éire ............................................................................................................................. 93

Greece - Ελλάδα ....................................................................................................................... 94

Spain - España........................................................................................................................... 95

France 96

Croatia - Hrvatska ..................................................................................................................... 97

Italy - Italia ................................................................................................................................ 98

Cyprus - Κύπρος ....................................................................................................................... 99

Latvia - Latvija ........................................................................................................................ 100

Lithuania - Lietuva .................................................................................................................. 101

Luxembourg ............................................................................................................................ 102

Hungary - Magyarország ........................................................................................................ 103

Malta 104

Netherlands - Nederland ......................................................................................................... 105

Austria - Österreich ................................................................................................................. 106 Poland - Polska ....................................................................................................................... 107

Portugal 108

Romania - România ................................................................................................................ 109

Slovenia - Slovenija ................................................................................................................ 110

Slovakia - Slovensko............................................................................................................... 111

Finland – Suomi-Finland ........................................................................................................ 112

Sweden - Sverige .................................................................................................................... 113

United Kingdom...................................................................................................................... 114

ANNEXES .............................................................................................................................. 115

European Structural and Investment Funds

4.

T HE E UROPEAN S TRUCTURAL AND I NVESTMENT F UNDS (ESIF)

Over half of EU funding is channelled through the 5 European structural and investment funds (ESIF). They are jointly managed by the European Commission and

the EU countries.

The purpose of all these funds is to invest in job creation and a sustainable and healthy European economy and environment.

The ESIF mainly focus on 5 areas:

– research and innovation

– digital technologies

– supporting the low-carbon economy

– sustainable management of natural resources

– small businesses.

The European structural and investment funds are:

– European regional development fund (ERDF) – promotes balanced development in the different regions of the EU.

– European social fund (ESF) - supports employment-related projects throughout Europe and invests in Europe’s human capital – its workers, its young people and all those seeking a job.

– Cohesion fund (CF) – funds transport and environment projects in countries where the gross national income (GNI) per inhabitant is less than 90% of the EU average. In 2014-20, these are Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia.

– European agricultural fund for rural development (EAFRD) 1 – focuses on

resolving the particular challenges facing EU's rural areas.

– European maritime and fisheries fund (EMFF) – helps fishermen to adopt sustainable fishing practices and coastal communities to diversify their economies, improving quality of life along European coasts.

Due to the rules of functioning of the EMFF and EFF, which are very similar to those of the other structural funds, irregularities reported by Member States in relation to fisheries policies are treated in this chapter jointly with the funds for cohesion and

economic convergence.

All these funds are managed by the EU countries themselves, by means of partnership

agreements.

Each country prepares an agreement, in collaboration with the European Commission, setting out how the funds will be used during the current funding period

2014-20.

Partnership agreements lead to a series of investment programmes channelling the funding to the different regions and projects in policy areas concerned.

For 2014-2020, EUR 454 billion in ESIF funding has been allocated to promote job creation and growth. National co-financing is expected to amount to at least EUR 183

billion, with total investment reaching EUR 637 billion.

These resources will contribute to:

 Strengthening Research and Innovation

 Supporting the digital single market

 Supporting the growth of Europe’s small and medium-sized enterprises (SMEs)

 Supporting the energy union and the low-carbon economy

 Investing in environmental protection and resource efficiency

 Climate change and risk prevention

 Supporting sustainable transport

 Promoting sustainable and quality employment

 Promoting social inclusion

 Investing in education and training

 Support youth employment

 Strengthening institutional capacity and efficient public administration

However, the following paragraphs will be mainly dealing with previous

programming periods 2 , as only a very limited part of irregularities detected and

reported refer to the period 2014-2020.

4.1. Trend analysis

In comparison with the other budget sectors, the analysis of Cohesion policy poses a higher level of complexity, given the fact that the information received is related to

different programming periods, which are regulated by different rules.

Table CP1 offers an overview of the irregularities (both fraudulent and nonfraudulent) reported from 2012 to 2016, by programming period. The table also details, for each programming period, the funds to which irregularities were related.

The chart does not suggest any major diversion from known trends and patterns in detection and reporting of irregularities, with the exception of the year 2015 (see next

page).

2 For a description of the objectives of the programming period 2007-13, see the Commission Staff

Working Document ‘Statistical evaluation of irregularities reported for 2014 Own Resources, Natural Resources, Cohesion Policy, Pre-accession and Direct expenditure’, chapter 5, pages 48-49. 44 Table CP1: Trend of the number of irregularities reported between 2012 and 2016 by

programming period – Cohesion and Fisheries Policies

REPORTING YEAR TOTAL

FUND / PROGRAMMING PERIOD 2012 2013 2014 2015 2016 PERIOD

N N N N N N

Programming Period 2014-20 0 0 0 2 115 117

Cohesion Fund 2 2

ERDF 1 15 16

ESF 1 97 98

EMFF 1 1

Programming Period 2007-13 3 301 4 532 4 817 10 229 8 328 31 207

Cohesion Fund 242 238 281 469 453 1 683

ERDF 2 146 2 895 3 073 8 091 6 300 22 505

ESF 837 1 255 1 373 1 475 1 307 6 247

EFF 76 144 90 194 268 772

Programming Period 2000-06 930 518 330 595 53 2 426

Cohesion Fund 79 95 33 5 1 213

ERDF 678 334 196 567 45 1 820

ESF 58 43 60 15 1 177

EAGGF - Guidance 105 44 41 7 6 203

FIFG 10 2 1 13

Programming Period 1994-1999 7 1 3 1 1 13

Cohesion Fund 4 1 5

ERDF 2 1 1 1 5

ESF 1 1

EAGGF - Guidance 2 2

TOTAL 4 238 5 051 5 150 10 827 8 497 33 763

There is a sudden increase from 2014 to 2015 in the number of reported irregularities, which have doubled, but then it decreases in the following year. Two elements can be

pointed out in this respect:

45 1) The increase is mainly related to the programming period 2007-13.

a.

This increase is for the greatest part linked to the reporting of irregularities from one Member State (Spain), which covers almost half of the total number of irregularities reported in 2015.

b.

As already clarified in the PIF Report 2015, the Spanish anomalous increase is due to belated reporting of irregularities detected throughout the programming period. If they are excluded, the number of reported irregularities would still be higher than in 2014. However, this increase would follow the natural behaviour of the programming cycle of the funds.

2)

A minor, yet still striking increase of reporting is observed in relation to the irregularities related to the programming period 2000-06, whose numbers have also almost doubled between 2014 and 2015. In this respect, the explanation is again linked to a belated reporting by a single Member State (Ireland).

Table CP2 highlights the trends in terms of financial value of the irregularities detected and reported to the Commission over the last five years.

The only significant aspect to be highlighted in this respect is that, despite the minor decrease between 2015 and 2016 (-5%), the average financial amount per irregularity is significantly higher for the year 2016 (i.e. EUR 229 725 against EUR 195 496 of 2015, 17.5% more). This is mainly due to the high value of the irregularities affecting the Cohesion Fund, which finances infrastructure projects of very high value and in relation to which, sometimes, individual cases of irregularities involving very high

amounts can be detected.

Table CP2: Trend of the financial amounts related to irregularities reported between 2012 and 2016 by programming period – Cohesion and Fisheries Policies

REPORTING YEAR TOTAL FUND / PROGRAMMING PERIOD 2012 2013 2014 2015 2016 PERIOD

N N N N N N Programming Period 2014-20 0 0 0 166 544 7 022 475 7 189 019

Cohesion Fund 671 052 671 052 ERDF 15 872 5 167 516 5 183 388 ESF 150 672 1 053 200 1 203 872

EMFF 130 707 Programming Period 2007-13 1 342 093 026 983 926 279 1 406 672 589 2 047 459 280 2 047 386 385 7 827 537 559

Cohesion Fund 429 708 201 147 333 643 230 693 104 276 717 990 480 493 016 1 564 945 954 ERDF 794 704 518 716 205 334 1 049 686 064 1 611 900 112 1 398 886 846 5 571 382 874 ESF 110 513 176 98 969 297 117 502 466 132 153 248 139 984 510 599 122 697 EFF 7 167 131 21 418 005 8 790 955 26 687 930 28 022 013

Programming Period 2000-06 1 242 238 511 194 039 623 127 811 699 136 178 670 8 745 331 1 709 013 834 Cohesion Fund 334 489 374 45 987 569 18 009 026 1 325 818 568 968 400 380 755 ERDF 889 816 481 130 849 635 96 650 017 84 925 687 4 473 713 1 206 715 533 ESF 5 456 732 13 736 583 7 870 657 48 400 540 17 414 75 481 926

EAGGF - Guidance 11 149 988 3 112 155 5 281 999 669 253 3 685 236 23 898 631 FIFG 1 325 936 353 681 857 372 2 536 989

Programming Period 1994-1999 1 577 854 2 095 397 229 661 474 024 6 430 4 383 366 Cohesion Fund 1 388 806 2 095 397 3 484 203 ERDF 164 626 12 110 474 024 6 430 657 190 ESF 24 422 24 422

EAGGF - Guidance 217 551 217 551

TOTAL 2 585 909 391 1 180 061 299 1 534 713 949 2 184 278 518 2 063 160 621 9 548 123 778

4.1.1. Irregularities reported as fraudulent

4.1.1.1. Trend by programming period

Table CP3 analyses the trend linked to the communication of the irregularities reported as fraudulent in the last five years (2012-2016), making a distinction by Fund involved and the relevant programming period.

In the last five years, while the fraudulent irregularities linked to the PP2000-06 have been decreasing, those linked to the PP2007-13 follow an increasing trend, albeit

inconsistent, as they have been decreasing between 2013 – 2014, and 2015 - 2016.

These trends are linked to the current implementation of the latter period and the closure of the previous.

Irregularities reported as fraudulent have increased by 62% since 2012 and they have decreased by 10% in comparison with 2015. This decrease is due to the

reclassification of cases initially reported as non-fraudulent in 2015 .

3 The PIF Report uses the data originally reported from Member States for enhanced comparability.

Therefore, Table 1 in the report shows an increase in comparison to 2015. See also Table CP4 on page 49 of SWD(2016) 235 final, Part 2/2: http://ec.europa.eu/antifraud/sites/antifraud/files/statistical_evaluation_2015_2_en.pdf for actual data reported in 2015. The reclassified irregularities mainly concern Spain. Thus, the same remarks indicated in section 4.1 on page 46 apply.

Table CP3: trend of the number of irregularities reported as fraudulent between 2012

and 2016 by programming period – Cohesion and Fisheries Policies

REPORTING YEAR TOTAL FUND / PROGRAMMING PERIOD 2012 2013 2014 2015 2016 PERIOD

N N N N N N Programming Period 2014-20 1 3 4

Cohesion Fund 0

ERDF 0

ESF 1 3 4

EMFF

Programming Period 2007-13 177 261 241 450 400 1 529

Cohesion Fund 9 9 7 12 11 48

ERDF 92 158 141 299 288 978

ESF 72 73 83 121 91 440

EFF 4 21 10 18 10 63

Programming Period 2000-06 72 69 43 10 4 198

Cohesion Fund 1 1

ERDF 40 28 7 2 2 79

ESF 18 27 29 7 81

EAGGF - Guidance 13 13 7 1 2 36

FIFG 1 1

TOTAL 249 330 284 461 407 1 731

Table CP3 and its associated chart do not include irregularities reported as fraudulent

related to programming periods previous to 2000-06 4 .

Table CP4 provides in the same form of Table CP3 information about the trends linked to the amounts involved in cases reported as fraudulent. As already indicated on several occasions, the trend of the financial amounts is far less consistent, resulting from fluctuations which can be significant as individual cases involving

4 One case related to the European Agriculture Guidance and Guarantee Fund – Section Guidance and the

programming period 1994-99 has been reported in 2014.

high amounts can distort the overall picture. Between 2012 and 2016 the financial amounts involved in irregularities reported as fraudulent have been decreasing by 20% and by 54% in comparison to 2015. However, in 2012 the financial amounts linked to irregularities reported as fraudulent were significantly high due to cases detected in relation to projects co-financed by the Cohesion Fund, which affect, in

general, high financial amounts, as already mentioned.

Table CP4: Trend of financial amounts linked to the irregularities reported as

fraudulent between 2012 and 2016 by programming period – Cohesion and Fisheries

Policies

REPORTING YEAR TOTAL FUND / PROGRAMMING PERIOD 2012 2013 2014 2015 2016 PERIOD

N N N N N N Programming Period 2014-20 150 672 914 365 1 065 037

Cohesion Fund 0

ERDF 0

ESF 150 672 914 365 1 065 037

EMFF 0

Programming Period 2007-13 255 304 646 116 524 845 135 752 389 468 754 324 235 237 847 1 211 574 051

Cohesion Fund 133 678 103 18 674 590 46 142 624 9 717 679 10 941 115 219 154 111

ERDF 106 122 710 73 526 014 74 378 652 418 134 208 202 439 909 874 601 493

ESF 14 797 561 15 471 933 12 768 290 36 310 920 20 911 429 100 260 133

EFF 706 272 8 852 308 2 462 823 4 591 517 945 394 17 558 314

Programming Period 2000-06 41 007 989 31 313 590 23 579 871 48 102 445 752 576 144 756 471

Cohesion Fund 5 063 005 5 063 005

ERDF 35 142 387 13 191 652 18 409 407 61 297 224 147 67 028 890

ESF 2 829 664 11 011 548 4 714 960 47 822 953 66 379 125

EAGGF - Guidance 2 892 853 2 047 385 455 504 218 195 528 429 6 142 366

FIFG 143 085 143 085

TOTAL 296 312 635 147 838 435 159 332 260 517 007 441 236 904 788 1 357 395 559

4.1.1.2. Trend by Fund

The analysis of the same data presented in Table CP4 but focussed on the distribution of the irregularities reported as fraudulent by Fund (Table CP5), highlights the following situations:

(1)

The highest number of cases relates to the ERDF. The trend increases overall , despite two years when it slowed down: 2014 and 2016;

(2)

Cases related to the ESF have been constantly increasing until 2015 and their share on the total is significant;

(3)

Potential frauds affecting the Cohesion fund are now reported regularly (since 2010), and they are quite stable from one year to another. Fluctuations of the amounts, however, can be particularly significant in respect of these cases.

Table CP5: Trend of the number of irregularities reported as fraudulent between 2012

and 2016 by Fund – Cohesion and Fisheries Policies

REPORTING YEAR TOTAL

FUND 2012 2013 2014 2015 2016 PERIOD

N N N N N N

Cohesion Fund 9 10 7 12 11 49

ERDF 132 186 148 301 290 1 057

ESF 90 100 112 129 94 525

EAGGF - Guidance 13 13 7 1 2 36

FIFG - EFF - EMFF 5 21 10 18 10 64

TOTAL 249 330 284 461 407 1 731

Table CP6 analyses the trends related to the financial amounts linked to the

irregularities reported as fraudulent in the reference period.

The year 2015 appears as a special year, considering the high financial volume of irregularities linked to the most represented funds: ERDF and ESF. Considering that the number of the irregularities reported as fraudulent is only slightly lower in 2016

than in 2015, the average financial value of the detected fraudulent irregularities is

indeed significantly higher in 2015 5 .

Table CP6: Trend of financial amounts linked to the irregularities reported as

fraudulent between 2012 and 2016 by fund – Cohesion and Fisheries Policies

REPORTING YEAR TOTAL

FUND 2012 2013 2014 2015 2016 PERIOD

EUR EUR EUR EUR EUR EUR

Cohesion Fund 133 678 103 23 737 594 46 142 624 9 717 679 10 941 115 224 217 115

ERDF 141 265 097 86 717 665 92 788 058 418 195 504 202 664 055 941 630 379

ESF 17 627 225 26 483 481 17 483 250 84 284 545 21 825 794 167 704 295

EAGGF - Guidance 2 892 853 2 047 385 455 504 218 195 528 429 6 142 366

FIFG - EFF - EMFF 849 357 8 852 308 2 462 823 4 591 517 945 394 17 701 399

TOTAL 296 312 635 147 838 433 159 332 259 517 007 440 236 904 787 1 357 395 554

4.1.2. Irregularities not reported as fraudulent

Table CP7 analyses the trend linked to the communication of the irregularities not reported as fraudulent in the last five years (2012-2016), making a distinction by

Fund involved and the relevant programming period.

The reasons behind the increases related to both periods 2000-06 and 2007-13 between 2014 and 2015 have already been explained under paragraph 4.1.

5 For more details see footnote 3.

Table CP7: Trend of the number of irregularities not reported as fraudulent between

2012 and 2016 by programming period – Cohesion and Fisheries Policies

REPORTING YEAR

FUND / PROGRAMMING PERIOD 2012 2013 2014 2015 2016 TOTAL PERIOD

N N N N N N

Programming Period 2014-20 0 0 0 1 112 113

Cohesion Fund 2 2

ERDF 1 15 16

ESF 94 94

EMFF 1 1

Programming Period 2007-13 3 124 4 271 4 576 9 779 7 928 29 678

Cohesion Fund 233 229 274 457 442 1 635

ERDF 2 054 2 737 2 932 7 792 6 012 21 527

ESF 765 1 182 1 290 1 354 1 216 5 807

EFF 72 123 80 176 258 709

Programming Period 2000-06 858 449 287 585 49 2 228

Cohesion Fund 79 94 33 5 1 212

ERDF 638 306 189 565 43 1 741

ESF 40 16 31 8 1 96

EAGGF - Guidance 92 31 34 6 4 167

FIFG 9 2 1 12

Programming Period 1994-1999 7 1 2 1 1 12

Cohesion Fund 4 1 5

ERDF 2 1 1 1 5

ESF 1 1

EAGGF - Guidance 1 1

TOTAL 3 989 4 721 4 865 10 366 8 090 32 031

The sum between the totals of Tables CP7 and CP5 differ by one unit in comparison

with the total showed in Table CP1 6 .

Table CP8 shows the trend related to the financial amounts linked to the irregularities not reported as fraudulent. Once more, as already mentioned several times in relation

6 The reason for this difference is explained by the fact that the Total in Table CP5 does not include one

case reported for the programming period 1994-1999 as explained in footnote 4.

to the trends of the financial amounts, fluctuations can happen more often, as they are linked to individual irregularities or groups of irregularities of significant value, which produce distortive effects from one year to the next.

In 2016, for instance, financial amounts linked to irregularities not reported as fraudulent is higher than in 2015, despite the significant decrease in the number of notified cases. For the Cohesion Fund, programming period 2007-13, the related

financial amounts have almost doubled in comparison with the previous years. They have significantly increased also for the ESF, while, in relation to the ERDF, they have remained stable despite the decrease of reported irregularities. Considering the fact that irregularities reported as fraudulent usually imply higher financial amounts, one may wonder whether some of the cases notified as non-fraudulent will be reclassified later as potentially fraudulent.

Table CP8: Trend of financial amounts linked to the irregularities not reported as

fraudulent between 2012 and 2016 by programming period 7 – Cohesion Policy

REPORTING YEAR

FUND / PROGRAMMING PERIOD 2012 2013 2014 2015 2016 TOTAL PERIOD

N N N N N N Programming Period 2014-20 0 0 0 15 872 6 108 111 6 123 983

Cohesion Fund 671 052 671 052

ERDF 15 872 5 167 516 5 183 388

ESF 138 836 138 836 EMFF 130 707 130 707

Programming Period 2007-13 1 086 788 379 867 401 435 1 270 920 202 1 578 704 957 1 812 148 538 6 615 963 511

Cohesion Fund 296 030 097 128 659 053 184 550 480 267 000 310 469 551 901 1 345 791 841 ERDF 688 581 808 642 679 321 975 307 413 1 193 765 905 1 196 446 937 4 696 781 384

ESF 95 715 615 83 497 364 104 734 177 95 842 329 119 073 082 498 862 567 EFF 6 460 859 12 565 697 6 328 132 22 096 413 27 076 618 74 527 719

Programming Period 2000-06 1 201 230 522 162 726 032 104 231 829 88 076 225 7 992 756 1 564 257 364

Cohesion Fund 334 489 374 40 924 564 18 009 026 1 325 818 568 968 395 317 750 ERDF 854 674 094 117 657 983 78 240 611 84 864 391 4 249 567 1 139 686 646

ESF 2 627 068 2 725 034 3 155 697 577 587 17 414 9 102 800

EAGGF - Guidance 8 257 135 1 064 770 4 826 495 451 057 3 156 807 17 756 264 FIFG 1 182 851 353 681 857 372 2 393 904

Programming Period 1994-1999 1 577 854 2 095 397 83 806 474 024 6 430 4 237 511

Cohesion Fund 1 388 806 2 095 397 3 484 203 ERDF 164 626 12 110 474 024 6 430 657 190

ESF 24 422 24 422 EAGGF - Guidance 71 696 71 696

TOTAL 2 289 596 755 1 032 222 864 1 375 235 837 1 667 271 078 1 826 255 835 8 190 582 369

7 See footnote 6.

4.2. Specific Analysis – Irregularities reported in relation to the Programming

Period 2007-13

This section of the analysis focuses on the irregularities reported in relation to the programming period 2007-13 exclusively. The closure for the programming period

started in March 2017 8 ; it therefore offers an ideal opportunity to present a complete

overview of what has happened. Consequently, the analysis will cover a greater time span than the previous paragraph (2012 to 2016), to examine all information available, which dates back to 2008.

It will cover the following aspects:

 Objective;

 Priorities and themes affected;

 Types of irregularity

4.2.1. Objectives concerned by the reported irregularities

The trend by objective of the reported irregularities follows a foreseeable pattern as showed in Table CP9. The majority of the irregularities were notified over the last three years of the reference period and mainly concern the Convergence objective (70% of the total), in line with the fact that this is the objective to which the greatest financial resources are allocated and in relation to which higher risks are associated. The anomaly concerning the year 2015 has already been explained.

Table CP9: Trend of the number of irregularities reported in relation to the

programming period 2007-13 by objective – Cohesion Policy

Reporting Year TOTAL

2008 2009 2010 2011 2012 2013 2014 2015 2016 Objective

N N N N N N N N N N Convergence 8 128 721 1 511 2 170 2 729 2 958 5 298 4 996 20 519 Regional comp. and Empl. 9 352 416 498 799 907 3 193 1 635 7 809 Territorial cooperation 14 39 46 79 119 100 135 532 Multiobjective 1 30 157 235 511 781 725 1 344 1 253 5 037 Fisheries 6 30 76 144 83 182 267 788 N/A 1 25 112 42 180 TOTAL 9 167 1 250 2 232 3 301 4 532 4 817 10 229 8 328 34 865

8 The deadline for the presentation of the documents for closure was 31 March 2017. The closure process

will go on for some time.

180 irregularities do not correctly indicate the objective.

Table CP10 analyses the trend followed by the financial amounts linked to the reported irregularities, which broadly follows the same line as that showed in Table

CP9, with the exception of the amounts linked to the Convergence objective reported in 2012, which exceed those related to the following two years, and those related to 2016, which are higher than those reported in 2015.

In 2016, irregular amounts reported in relation to the Cohesion Fund are significantly high, as already showed in Table CP8 and highlighted in section 4.1.

Table CP10: Trend of the financial amounts linked to irregularities reported in

relation to the programming period 2007-13 by objective – Cohesion and Fisheries

Policies

Reporting Year TOTAL

2008 2009 2010 2011 2012 2013 2014 2015 2016 Objective

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Convergence 101 394 153 440 727 118 761 624 532 264 942 1 187 817 179 790 330 312 957 341 764 1 505 271 609 1 614 923 637 6 860 253 188 Regional comp. and Empl. 556 264 35 054 147 38 874 474 31 043 896 67 910 816 105 867 961 247 361 649 175 966 615 702 635 822 Territorial cooperation 1 142 832 1 930 949 2 487 433 5 155 265 5 250 520 5 311 978 10 148 874 31 427 851 Multiobjective 193 333 2 371 472 11 206 577 39 503 845 113 577 387 99 111 883 328 463 790 255 069 076 206 984 772 1 056 482 135 Fisheries 233 816 577 343 7 167 131 21 418 005 8 487 058 26 308 312 28 021 643 92 213 308 N/A 32 544 1 261 498 8 136 656 11 340 844 20 771 542 TOTAL 294 727 156 368 463 166 398 996 613 184 097 1 342 093 026 983 926 281 1 406 672 591 2 047 459 280 2 047 386 385 8 763 783 846

4.2.1.1. Irregularities reported as fraudulent by Objective

Table CP11 and CP12 show the trends presented in the previous paragraph taking into consideration only the irregularities reported as fraudulent during the programming period 2007-13. The trends are similar, although in relation to the financial amounts reported it is more evident the distorting impact that high profile cases can have.

The higher share represented by the Convergence objective in comparison with that presented in the previous paragraph is also significant.

Table CP11: Trend of the number of irregularities reported as fraudulent in relation

to the programming period 2007-13 by objective – Cohesion and Fisheries Policies

Reporting Year TOTAL

Objective 2008 2009 2010 2011 2012 2013 2014 2015 2016

N N N N N N N N N N Convergence 43 42 75 133 185 172 210 303 1 163 Regional comp. and Empl. 4 2 12 11 34 36 120 7 226 Territorial cooperation 3 13 4 4 3 5 8 40 Multiobjective 7 18 25 17 18 86 68 239 Fisheries 1 1 4 21 10 17 10 64 N/A 2 12 4 18 TOTAL 0 47 55 119 177 261 241 450 400 1 750

Irregularities reported as fraudulent represent about 5% of the total number of irregularities

reported for the programming period 2007-13. The highest share (Fraud Frequency Level –

FFL) is related to the Fisheries (8.1%), the European Territorial Cooperation (7.5%) and to the Convergence (5.7%) objectives. Regional competitiveness and Employment has the lowest FFL (2.9%).

Table CP12: Trend of the financial amounts linked to the irregularities reported as

fraudulent in relation to the programming period 2007-13 by objective – Cohesion

and Fisheries Policies

Reporting Year TOTAL

Objective 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR EUR EUR EUR EUR EUR EUR EUR EUR EUR Convergence 126 411 965 27 930 979 113 479 367 249 101 647 94 736 957 115 366 308 373 598 157 169 268 106 1 269 893 486 Regional comp. and Empl. 470 306 161 114 714 482 1 353 761 10 381 439 10 355 750 14 935 333 4 321 659 42 693 844 Territorial cooperation 490 534 166 072 1 204 484 299 272 120 064 702 926 2 606 946 5 590 298 Multiobjective 3 103 580 736 449 2 938 482 2 254 869 7 344 586 72 646 633 55 593 475 144 618 074 Fisheries 193 916 22 580 706 272 8 852 308 2 462 823 4 571 604 945 394 17 754 897 N/A 102 857 2 299 670 2 502 267 4 904 794 TOTAL 0 126 882 271 31 880 123 115 118 950 255 304 646 116 524 845 135 752 388 468 754 323 235 237 847 1 485 455 393

Financial amounts linked to irregularities reported as fraudulent represent about 17% of the total reported for the programming period 2007-13. The highest share (Fraud

Amount Level – FAL) is related to the Fisheries (19.3%), the Convergence (18.5%)

and the European Territorial Cooperation (17.8%) objectives. Regional

competitiveness and Employment has the lowest FFL (6.1%).

The difference between FFL and FAL, almost three times higher, indicates the higher financial impact of fraudulent irregularities compared to the non-fraudulent infringements. As a matter of fact, the average financial value linked to the irregularities reported as fraudulent is almost four times higher than that related to the non-fraudulent types.

Case study: Criminal investigation in Latvia about possible misuse of structural funds

Criminal case No. XX was started in 2014 by ECED, classified under Article 177 clause 3 of the Criminal Law (for fraud, if committed on a large scale, or in an organised group), by examining the submission of the Latvian Rural Support Service (RSS) regarding possible fraudulent activities of the Latvian company (Ltd.) responsible officials during project implementation, in order to embezzle EU structural funds on a large scale.

In 2016 the criminal proceedings were transferred to the Riga District Court Prosecutor’s Office for criminal prosecution according to the Article 15 clause 4 (for an attempted crime), Article 177 clause 3 and Article 275

clause 2 (falsification of documents for the purpose of acquiring property by an organized group) of the Criminal Law against two suspect. Loss was prevented (EUR 140 000 was to be paid in funding).

Conditions of the case:

In 2012 Ltd. X officials submitted a project for the purchase of metal processing equipment to the RSS to receive financial support amounting to EUR 140 000. When evaluating the submitted project documentation RSS employees doubted that the documents submitted were genuine.

RSS sent the obtained documentation for further inspection to ECED.

Police investigation showed and proved that Ltd. X officials had provided false information about the company’s financial condition – forged bank documentation was submitted for the project (including from a bank which is located in Russia) on the company’s financial resources in order to acquire necessary equipment and receive cofinancing from EU structural funds.

4.2.1.2. Fraud and Irregularity Detection Rates by Objective

Table CP13 shows the FDR and the IDR per objective. Further details about this calculation can be found in paragraph 4.4.2.

Looking at the overall detection rate (FDR + IDR), Regional competitiveness and employment programmes show a low level of detections. European Territorial Cooperation programmes, however, show an anomalously low level of detections (four times lower than the previous objective), especially if one considers that the previous two indicators (FFL and FAL) were high. The situation is different for Convergence, Multiobjective and Fisheries programmes. Interestingly, the "Total detection rate" is almost equal to that of rural development and market measures in

the agricultural policy. (see chapter 3.3.2).

Table CP13: FDR and IDR by Objective

Irregularities detected and reported Objective programming period 2007-13 / payments

FDR IDR Total Convergence 0.5% 2.3% 2.8% Regional comp. and Empl. 0.1% 1.5% 1.6% Territorial cooperation 0.1% 0.3% 0.4% Multiobjective 0.3% 2.0% 2.4% Fisheries 0.5% 2.1% 2.5%

Total 0.4% 2.1% 2.5%

4.2.2. Priorities concerned by the reported irregularities

4.2.2.1. Irregularities reported as fraudulent (fisheries not included)

The operational programmes financed by the Cohesion Policy are implemented in relation to the already mentioned objectives, but also along identified Priorities and

Themes.

The information provided by Member States allows for an analysis of the priority areas in relation to which Member States have identified projects affected by

potentially fraudulent practices.

Table CP14 shows the number of reported fraudulent irregularities by priority area since the beginning of the programming period 2007-13, their related financial

amounts, the average amount per irregularity, FFL and FAL.

In terms of numbers, the 'Priorities' most concerned were 'Research and Technological Development (RTD)', 'Improving access to employment and sustainability' and 'Increasing the adaptability of workers and firms, enterprises and

entrepreneurs'.

Fraudulent irregularities linked to these three priorities represent about 37% of the

total.

FFL is highest for 'Strengthening institutional capacity' and 'Tourism' (10%), while the top three priorities in the table are all between 9.1 and 9.7%.

From the financial amounts point of view, the most significant results concern ‘R&TD’, 'Transport' and 'Investment in Social Infrastructure'. ‘Transport’ retains also the highest average value, almost eight times higher than that related to R&TD and

22 times higher than the overall average.

Financial amounts linked to the irregularities reported as fraudulent in relation to

these three priorities represent 58% of the total.

FAL is highest 9 for 'Investment in social infrastructure' (41.3%), 'Tourism' (25%) and

'R&TD' (21.6%).

The FDR is highest for the same priorities and in exactly the same order: 'Investment

in social infrastructure' (0.84%), 'Tourism' (0.74%) and 'R&TD' (0.55%)

Table CP14: PP2007-13 - Irregularities reported as fraudulent by Priority

9 As a matter of fact, 'Technical Assistance – fishery' would be second with 29.3%. As these priority

seems linked to another fund (EFF) than those taken into consideration here, it may result from errors in reporting. 59

Irregularities linked to the EFF have not been included. Reference to 'Technical assistance Fisheries' and 'Measures of common interest – fisheries' in the Table may

depend on errors in encoding by Member States.

Less than one third of the irregularities used for this analysis did not provide information about the priority area concerned, decreasing in comparison with

previous years.

4.2.2.2. Irregularities not reported as fraudulent (fisheries not included)

The same analysis showed in the previous paragraph for the irregularities reported as fraudulent is presented here for the irregularities not reported as fraudulent in relation

to the programming period 2007-13.

Table CP15 shows the number of reported fraudulent irregularities by priority area since the beginning of the programming period 2007-13, their related financial

amounts and average amount per irregularity.

Again, ‘Research and Technological Development (R&TD)’ is the priority with the highest number of occurrences, followed by ‘Environmental protection and risk prevention’ and ‘Transport’. In terms of financial amounts involved, 'Transport'

comes first, followed by the other two priorities.

Therefore, irregularities linked to these three priorities together represent 21.6% of the total number and 45.4% of the total amounts.

Table CP15: PP2007-13 - Irregularities not reported as fraudulent by Priority

Irregularities linked to the EFF have not been included. Reference to priorities specific referred to this policy area, therefore, may depend on errors in encoding by

national authorities.

Also in relation to the irregularities not reported as fraudulent the constant improvement in the completeness of data is confirmed, although to a lesser extent

than for the fraudulent irregularities.

4.2.2.3. Irregularities related to the priority 'R&TD'

As showed in the previous two sub-paragraphs of this section, 'R&TD' is the priority for which the highest number of irregularities, fraudulent and non-fraudulent, have

been detected and reported: in total, 3 995 cases, involving over EUR 1.7 billion.

Figure CP1 below, details the specific priority themes which were affected by these irregularities. Please note that the larger the square, the higher the number of irregularities; the darker the colour, the higher the financial amounts involved.

Two "residual" themes are those showing the highest number of reported irregularities: 'Other investment in firms' and 'Other measures to stimulate research and innovation and entrepreneurship in SMEs'. Together they represent 46% of the reported irregularities, but only 21% of the related financial amounts. Conversely, the themes 'Investment in firms directly linked to research and innovation (innovative technologies, establishment of new firms by universities, existing R&TD centres and firms, etc.)' and 'R&TD activities in research centres' represent only 23.5% of the total number of reported irregularities, but account for almost 51% of the total financial amounts involved.

Figure CP1: PP2007-13 - Irregularities (fraudulent and non-fraudulent) reported in relation to the 'R&TD' Priority by theme

Figure CP2 shows the same level of detail for the irregularities reported as fraudulent.

Similarly to the overall picture, the two "residual" themes present the highest number of occurrences. However, again, the theme 'Investment in firms directly linked to research and innovation (innovative technologies, establishment of new firms by universities, existing R&TD centres and firms, etc.)' has the highest financial amounts, followed by the theme 'R&TD infrastructure (including physical plant, instrumentation and high-speed computer networks linking research centres) and centres of competence in a specific technology'. These two themes together represent only 24% of the number of irregularities reported as fraudulent in relation to the 'R&TD' priority, but more than 52% of the total financial volume of these cases.

Figure CP2: PP2007-13 - Irregularities reported as fraudulent in relation to the 'R&TD' Priority by theme

4.2.2.4. Types of irregularities / modus operandi detected related to the priority 'R&TD'

The analysis of categories of irregularities detected and reported in connection with the priority 'R&TD' shows a fragmented situation. Detected fraudulent attempts mainly happen during the implementation of a project and are made through falsified documents or declarations (in about 35% of the cases as the main violation or in conjunction with other types of infringement), or by infringing the commitments entered into through the signature of the financing contract (occurring in 38% of the cases, alone or with other), which implies that the project is not implemented

according to what was initially agreed.

Violation of public procurement rules in connection with irregularities reported as fraudulent have been detected in 8% of the cases but impact on 14% of the total

amounts involved.

Irregularities concerning ethics and integrity (including possible cases of corruption and conflict of interest) concern 3% of the cases and 6% of the total amounts affected by irregularities are reported as fraudulent. The related amounts for this category are particularly significant despite the low number of cases, as showed by the fact that,

associated to this category, there is the highest average irregular amount.

Table CP16: Programming Period 2007-13 - Types of irregularity/Modus operandi

detected in relation to priority "R&TD"

Typologies of irregularities Irregularities reported as fraudulent All reported Irregularities

N EUR EUR/avg N EUR EUR/avg

Infringement of contract provisions / rules 142 139 505 570 982 434 485 389 801 023 803 713 Incorrect, missing, false or falsified supporting documents 129 82 490 695 639 463 783 198 649 358 253 703 Eligibility / Legitimacy of expenditure/measure 69 82 688 433 1 198 383 738 339 522 108 460 057 Violations / breaches concerning the request 30 9 193 805 306 460 83 51 046 452 615 017 Infringement of public procurement rules 28 51 459 942 1 837 855 600 356 232 003 593 720 Incorrect, absent, falsified accounts 23 6 413 021 278 827 181 42 315 608 233 788 Violations / breaches by the operator 23 10 848 667 471 681 139 42 513 317 305 851

Other 11 8 444 452 767 677 562 289 643 036 515 379

(blank) 11 947 830 86 166 102 38 381 835 376 293 Ethics and integrity 10 22 905 360 2 290 536 22 24 924 570 1 132 935 Multiple financing 7 1 379 078 197 011 42 85 783 119 2 042 455

The data population used in this paragraph consists of all irregularities reported in relation to the priority "R&TD" and the programming period 2007-13 until the end of 2016.

The row for totals has been omitted due to the fact that the same irregularity reported may be associated with several typologies of infringements and therefore the total sum of values in Table CP16 would result in multiple counting of the same irregularity notification.

The category “Infringement of contract provision / rules” includes all irregularities related to implementation of the contract, i.e. irregularities such as ‘action not implemented’, ‘action not completed’, ‘action not carried out in accordance with rules’, ‘Failure to respect other contract provisions/rules’. The category “Eligibility / Legitimacy of expenditure / measure” refers to all

irregularities concerning the eligibility of the project or of the expenditure claimed,

such as ‘Not-eligible expenditure’, ‘Expenditure not-legitimate’, ‘Expenditure outside of eligibility period’, The category “Infringements concerning the request” refers to all types of irregularities associated with the request of aid/financing, such as ‘Incorrect request for aid’, ‘Request for aid false or falsified’. The category “Ethics and Integrity” refers to violations such as ‘Conflict of interest’, ‘Bribery – active’, ‘Bribery – passive’, ‘Corruption’, ‘Other irregularities concerning integrity and ethics’. The “other irregularities” category is a residual category to be used when all others do

not provide an adequate description of the detected irregularity.

4.2.2.5. Geographical distribution of irregularities (fraudulent and non-fraudulent) detected in relation to the 'R&TD' priority

Map CP1 shows the geographical distribution of the irregularities (fraudulent and non-fraudulent) detected and reported in relation to the theme 'R&TD'.

Map CP1: Number of irregularities (fraudulent and non-fraudulent) reported by

Member State in relation to the theme 'R&TD' – programming period 2007-13

4.3. Antifraud and control activities by Member States – programming period 2007- 2013

Previous paragraphs have examined the trend and main characteristics of the reported irregularities.

The present paragraph aims at examining some aspects linked to the antifraud and

control activities and results of Member States. Four elements are taken into account:

 the duration of irregularities, meant as the time that runs between the beginning

of the fraudulent practice and its detection/establishment by the competent authority;

 the number of irregularities reported as fraudulent by each Member State;

 the fraud detection rate (the ratio between the amounts involved in cases

reported as fraudulent and the payments occurred in relation to the programming period 2007-13) and the irregularity detection rate (the ratio between the amounts involved in cases not reported as fraudulent and the

payments occurred in relation to the programming period 2007-13;

 the ratio of cases of established fraud on the total number of irregularities

reported as fraudulent.

4.3.1. Duration of irregularities

Of the 37 110 detected irregularities (fraudulent and non-fraudulent) reported by Member States in relation to the programming period 2007-13, 18 142 (47% of the total) involve infringements that have been protracted during a given span of time. For the 1 750 irregularities reported as fraudulent this percentage is higher at 60%. The remaining part of the datasets refers to irregularities/breaches which consisted of a single act identifiable on a precise date (19% of the whole dataset and 26% of that represent exclusively by the fraudulent irregularities) or for which no information has been provided (34% of the whole dataset, but only 14% of the irregularities reported

as fraudulent).

Taking into account only those irregularities which have been protracted in time, their average duration is almost 20 months (i.e. almost 1 year and 8 months). For the

irregularities reported as fraudulent, this average is just one month less: 19.

4.3.2. Detection of irregularities reported as fraudulent by Member State in relation to the programming period 2007-13

Map CP2 shows the number of irregularities reported as fraudulent by Member State in relation to the programming period 2007-13.

Only Luxembourg has notified no irregularity as fraudulent; fourteen (14) Member States reported less than 30 fraudulent irregularities; four (4) countries reported between 30 and 60; three (3) Member States between 60 and 90 fraudulent

irregularities and six (6) more than 90.

Poland, Romania and Germany are the three countries which have reported the highest numbers.

Case study: Cohesion policy, ERDF – undue receipt of EU funds relating to a soil conservation project. Operation ‘Hulk’ carried out by the Catanzaro Guardia di Finanza

The Catanzaro Guardia di Finanza’s Tax Investigation Unit carried out a complex investigation aimed at tackling multiple offences concerning a regional body set up for the purpose of integrated implementation of all forestry and soil conservation measures in the region’s territory.

The main line of investigation concerned checking whether two project items complied with the corresponding rules. These items were co-financed with monies from the European Union budget, specifically the European Regional Development Fund (ERDF) 2007/2013, for securing riverbeds and addressing landslide risks in the region.

The investigations uncovered fraudulent conduct on the part of various persons involved in the management of the body, whereby some EUR 80 million of public funding (half of it EU funds) were unduly obtained, out of an initial allocation of more than EUR 100 million.

Against this backdrop, it was discovered that a part of the monies made available by the Union was used for purposes other than financing project targets, namely covering the ordinary expenditure of the beneficiary undertaking, including the regular and ongoing payment of the salaries of the regional body’s employees.

Further inquiries also brought to light other offences at the expense of the public administration, perpetrated over the same period by members of the body’s management team relating to, for example:

-

the use of workers for private ends (during their working hours, thus taking them away from their contractual activities), as well as of the body’s assets and funds;

-

the attribution of a remunerated task to a person lacking the necessary qualifications to carry out the duties involved.

With respect to these criminal acts, in September 2016 the above-mentioned unit of the Guardia di Finanza, authorised by the local Public Prosecutor’s office, took restraining measures against five managers, officials and

consultants of the publicly-owned entity which had been responsible to varying degrees for embezzlement of public monies, misuse of official positions, forgery and aggravated fraud.

Map CP2: Number of irregularities reported as fraudulent by Member State in relation to the programming period 2007-13 – Cohesion Policy

4.3.3. Fraud detection rate

The fraud detection rate compares the results obtained by Member States in their fight against fraud with the related commitment appropriations. Considering the multi-annual nature of the cohesion policy spending programmes, no annual analysis has been prepared, concentrating instead on the whole programming period 2007-13, for which commitment appropriations have almost reached 100% and the number of

fraudulent irregularities reported by Member States is significant.

The fraud detection rate is the highest (>0.3%) for Slovakia, Italy, Latvia, the Czech

Republic, Romania, Slovenia, Poland, Portugal and Croatia.

Table CP16: Number of irregularities reported as fraudulent, amounts involved and fraud detection rate by Member State – Programming Period 2007-13

Irregularities reported as fraudulent

Member 2007-2013 Payments 2007-2013 Fraud detection

State Reported Involved amounts rate

N EUR EUR %

AT 7 1 155 265 1 175 404 280 0.10% BE 6 3 238 250 2 084 119 208 0.16% BG 42 8 447 298 6 652 736 814 0.13% CY 7 532 224 631 910 587 0.08% CZ 149 228 389 445 25 843 724 870 0.88% DE 222 32 617 788 25 566 221 638 0.13% DK 1 201 898 631 909 007 0.03% EE 22 7 807 152 3 486 691 600 0.22% ES 118 18 771 459 35 427 318 471 0.05% FI 1 179 375 1 633 737 555 0.01% FR 6 2 886 409 13 723 561 554 0.02% GR 45 11 779 140 20 357 050 909 0.06% HR 4 2 277 409 866 162 519 0.26% HU 83 7 179 221 24 927 535 329 0.03% IE 2 15 672 791 480 398 0.00% IT 101 306 791 907 28 288 501 684 1.08% LT 14 1 818 634 6 829 310 612 0.03% LU 50 487 332 0.00% LV 89 41 964 616 4 655 284 168 0.90% MT 15 266 825 848 158 961 0.03% NL 12 3 903 370 1 699 962 581 0.23% PL 276 396 116 814 67 894 066 494 0.58% PT 47 90 392 248 21 620 834 490 0.42% RO 237 140 772 095 19 185 442 449 0.73% SE 4 66 797 1 674 073 781 0.00% SI 27 26 233 107 4 121 031 332 0.64% SK 165 140 104 764 11 493 455 618 1.22% UK 48 11 546 212 10 001 559 591 0.12% CB* 40 5 590 298 7 752 461 755 0.07% TOTAL 1 750 1 485 455 394 349 914 195 587 0.42%

Programmes under the Territorial Cooperation Programme (designated in the table under the country code 'CB', last row before the total) can involve several countries and, therefore, paid amounts are spread among the beneficiaries in various Member States. However, in general, irregularities for these programmes are reported by the Member State in which is located the managing authority. For this reason, the sums paid have been included in the total, while the irregularities reported as fraudulent and the related amounts have already been computed in relation to the country having reported them. The numbers have been included in the table to calculate the FDR related to these programmes, but they are not summed in the total row to avoid a double counting.

4.3.4. Irregularity Detection Rate

The irregularity detection rate compares the results obtained by Member States in detecting non-fraudulent irregularities with the related commitment appropriations. Considering the multi-annual nature of the cohesion policy spending programmes, no annual analysis has been prepared, concentrating instead on the whole programming period 2007-13, for which

commitment appropriations have almost reached 100% and the number of irregularities detected and reported by Member States is significant.

Table CP17: Number of irregularities not reported as fraudulent, amounts involved and irregularity detection rate by Member State – Programming Period 2007-13

Irregularities not reported as fraudulent

Member 2007-2013 Payments 2007-2013 Irregularity

State Reported Involved amounts detection rate

N EUR EUR %

AT 272 21 285 612 1 175 404 280 1.81% BE 341 22 407 928 2 084 119 208 1.08% BG 640 113 417 423 6 652 736 814 1.70% CY 24 1 197 080 631 910 587 0.19% CZ 3532 1 257 700 448 25 843 724 870 4.87% DE 1260 112 591 405 25 566 221 638 0.44% DK 48 2 151 079 631 909 007 0.34% EE 331 31 186 262 3 486 691 600 0.89% ES 8596 1 241 885 683 35 427 318 471 3.51% FI 76 3 179 233 1 633 737 555 0.19% FR 386 57 845 477 13 723 561 554 0.42% GR 1366 565 347 963 20 357 050 909 2.78% HR 8 2 222 747 866 162 519 0.26% HU 1405 226 332 617 24 927 535 329 0.91% IE 183 11 914 676 791 480 398 1.51% IT 1047 341 901 231 28 288 501 684 1.21% LT 508 127 101 925 6 829 310 612 1.86% LU 8 210 788 50 487 332 0.42% LV 462 100 356 702 4 655 284 168 2.16% MT 57 13 429 938 848 158 961 1.58% NL 359 34 040 307 1 699 962 581 2.00% PL 4901 1 128 009 941 67 894 066 494 1.66% PT 865 121 226 156 21 620 834 490 0.56% RO 1863 392 542 261 19 185 442 449 2.05% SE 144 7 459 719 1 674 073 781 0.45% SI 214 49 193 695 4 121 031 332 1.19% SK 1297 1 088 517 387 11 493 455 618 9.47% UK 2922 203 672 764 10 001 559 591 2.04% CB* 492 25 837 551 7 752 461 755 0.33% TOTAL 33 115 7 278 328 449 349 914 195 587 2.08%

Programmes under the Territorial Cooperation Programme (designated in the table under the "country-code" 'CB', last row before the total) can involve several countries and, therefore, paid amounts are spread among the beneficiaries in various Member States. However, in general, irregularities for these programmes are reported by the Member State in which is located the managing authority. For this reason, the sums paid have been included in the total, while the irregularities not reported as fraudulent and the related amounts have already been computed in relation to the country having reported them. The numbers have been included in the table to calculate the IDR related to these programmes, but they are not summed in the total row to avoid a double counting.

4.3.5. Ratio of established fraud (programming period 2007-13)

Table CP22 shows the ratio between the cases of established fraud and the total number of irregularities reported as fraudulent (including suspected and established

fraud) in the period 2009-13. Taking into account only cases reported in 2015 would be meaningless, as the criminal proceedings leading to a conviction for fraud may take several years, while using the period 2010-14 would be misleading as it will be impossible to make a sound comparison with figures published in the 2013 and 2014

Report.

Table CP18 is integrated with the ‘Dismissal ratio’, calculated by the differences between the total number of irregularities reported as fraudulent published in the corresponding table in the 2013 Report (TOTAL 2013) and the total calculated taking into account the updates received until the end of 2016. When the ratio is positive, it means that Member States have classified as ‘suspected’ or ‘established fraud’ an

irregularity appearing as non-fraudulent in 2013.

In this respect, the average ratio of established fraud at EU level is 14%, increasing from 11% of 2013. The dismissal ratio is 5%.

If one considers exclusively the “decisions” (established + dismissed), of the 128 decided cases (91 established fraud and 37 dismissals), 71% is the ‘conviction rate’

and 29% the ‘dismissal rate’.

Table CP18: Number of cases of suspected and established fraud, ratio of established fraud, dismissal ratio – cases reported until 2013

Member Suspected Established

Ratio

States fraud fraud

TOTAL established TOTAL Dismissal

fraud 2013 ratio

N N N % N %

AT 5 1 6 17% 6 0%

BE 2 2 0% 2 0%

BG 25 2 27 7% 30 -10%

CY 5 1 6 17% 4 50%

CZ 46 5 51 10% 63 -19%

DE 64 46 110 42% 125 -12%

EE 4 4 8 50% 7 14%

ES 4 4 0% 4 0%

FI 1 1 0% 3 -67%

FR 1 1 0% 1 0%

GR 18 3 21 14% 22 -5%

HU 10 10 0% 8 25%

IE 2 2 0% 2 0%

IT 69 69 0% 62 11%

LT 9 9 0% 9 0%

LV 39 6 45 13% 45 0%

MT 14 14 0% 14 0%

NL 1 1 0% 0 #DIV/0!

PL 119 14 133 11% 140 -5%

PT 13 13 0% 12 8%

RO 61 1 62 2% 60 3%

SE 1 1 0% 5 -80%

SI 7 5 12 42% 13 -8%

SK 23 3 26 12% 21 24%

UK 25 25 0% 38 -34%

TOTAL 568 91 659 14% 696 -5%

Case study: European Fisheries Fund - Use of Spain’s system of public-private partnerships to circumvent the application of public procurement rules

Spanish public procurement law, specifically the Royal Legislative Decree 3/2011 of 14 November 2011 approving the recast Law on public sector contracts, expressly excludes from its scope a specific type of legal agreement called a convenio de colaboración (public-private partnership), as laid down in Article 4(1)(c) and (d) of the aforementioned recast Law.

These legal agreements differ from public procurement contracts in that they do not relate to a mutual exchange of services between the parties for consideration, but rather they set up a partnership between the parties to achieve an objective of common interest to them both. For a legal agreement to be considered a public-private partnership in the strictest sense and for it to be exempt from public procurement rules, bearing in mind the subject of the agreement, and irrespective of the name the parties give to the agreement, the following conditions must be met:

-

both parties must be involved in actually carrying out the activity to which the agreement relates;

-

both parties must be involved in financing the activity;

-

the result of the activities to which the agreement relates must be jointly owned or used by both parties.

A public-private partnership agreement differs from a public procurement contract in all of these respects; in the latter, one of the parties (the contractor) has sole responsibility for carrying out the activities, while the other party (public body) has sole responsibility for financing these activities, and the result of these activities is owned or used exclusively by the public body.

The specific case we wish to highlight here relates to a public body that was in receipt of European funding. In order to benefit from the less stringent rules that apply to public-private partnerships in Spain (specifically, the rules do not require a competitive procedure to be held to select the public body’s partner), the public body handled a legal agreement as a public-private partnership (meaning that it selected its partner directly without a competitive procedure). However, in view of the subject of the agreement, it should have been considered as a service contract and the awarding of the contract should therefore have taken place in accordance with the competitive procedures laid down in the public procurement rules.

S ECTION II - D ECENTRALISED M ANAGEMENT

The EU as a global player / Pre-Accession Policy

The goal of the EU as a global player is also promoted through direct management. Pre-Accession Assistance (PAA) is provided through decentralised management where third countries distribute funds but account to the EU for how it is spent. In the last stages new Member States manage pre-accession funds under shared

management to help them complete the transition.

5.

P RE -A CCESSION P OLICY (P RE -A CCESSION A SSISTANCE AND I NSTRUMENT FOR P RE -A CCESSION I AND II)

The assistance in pre-accession is provided on the basis of the European Partnerships of the potential candidates and the Accession Partnerships of the candidate countries. The current candidate countries are Albania, the Former Yugoslav Republic of FYROM, Montenegro, Serbia and Turkey. Potential candidate countries are Bosnia

and Herzegovina and Kosovo 10 .

5.1. The Pre-accession Assistance (PAA), 2000-06

The old Pre-accession Assistance (PAA), regarding the period 2000-06, was financed by series of European Union programmes and financial instruments for candidate countries or potential candidate countries, namely the programmes for candidate countries, PHARE, SAPARD and ISPA, Phare Cross-Border Cooperation (CBC) and

Coordination, Pre-accession financial assistance for Turkey 11 , Assistance for

reconstruction, development and stabilisation for potential candidate countries

(CARDS) 12 13 and Transition facility .This assistance has nearly been closed except for

a few payments in CARDS.

5.2. The Instrument for Pre-accession 2007-13 – IPA I

The Instrument for Pre-Accession Assistance (IPA), which covers the period 2007- 2013, is delivered through five components. The policy and programming of IPA consists of Multi-Annual Indicative Financial Framework (MIFF) on a three year basis, established by country, component and a theme, and Multi-Annual Indicative Planning Documents (MIPDs) per country or per groups of countries (regional and horizontal programmes). The Candidate Countries submit also Strategic Coherence Frameworks (SCF) and Multi-annual Operational Programmes, both regarding IPA Components III and IV. Their principal aim is to prepare beneficiary countries for the future use of the Cohesion policy instruments by imitating closely its strategic documents, National Strategic Reference Framework (NSRF) and Operational Programmes (OP), and management modes.

10 This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ

Opinion on the Kosovo Declaration of Independence.

11 Turkey has been receiving pre-accession assistance since 2002.

12 Albania, Croatia, FYROM, Serbia, Kosovo under United Nations Security Council Resolution 1244, and

Bosnia Herzegovina, Council Regulation (EC) No 2666/2000 of 5 December 2000.

13 The EU-10 that joined European Union in 2004 received a Transition facility during 2004-2006.

However the EU-2 received a Transition facility in 2007 which is regarded as a post-accession assistance. 73

The financing of IPA is provided by the five following different components and DG

Enlargement leads in the coordination of the instrument:

(4)

Component I, Transition Assistance and Institution Building (TAIB), is managed by the European Commission's Directorate General for Enlargement;

(5)

Component II, Cross-Border Cooperation, is managed by the European Commission's Directorate General for Enlargement and part is managed, under shared management with Member States, by European Commission's Directorate General for Regional Policy;

(6)

Component III, Regional Development, is managed by the European Commission's Directorate General for Regional Policy;

(7)

Component IV, Human Resources Development, is managed by the European Commission's Directorate General for Employment and Social Affairs; and

(8)

Component V - Rural Development is managed by the European Commission's Directorate General for Agriculture.

The pre- and post-accession assistance is implemented through a variety of management modes which take into account different levels of preparedness of the beneficiary countries. The assistance under IPA is designed also to prepare the beneficiary countries to assume full responsibility for the management of financial

assistance granted by the EU.

The eligibility for IPA components differs depending on the state of preparedness. In the use of funds the IPA beneficiary countries are divided into two categories. Croatia and the EU candidate countries: the Former Yugoslav Republic of FYROM, Serbia and Turkey; are eligible for all five components of IPA. While the new candidate countries, Albania and Montenegro (candidate status awarded in 2010), currently remain outside the scope of intervention of IPA Component III, the regional development. The Potential candidate countries in the Western Balkans (Albania, Bosnia and Herzegovina, Montenegro and Kosovo under UN Security Council

Resolution 1244/99) are eligible only for the first two components. 14

Implementation of Components I and II falls under the responsibility of DG Enlargement, which initiates the components under a centralised management mode, with a view to transferring implementation management powers to the beneficiary countries as soon as their administrative capacities are considered sufficiently developed to ensure sound financial management. The EU Delegations play a major role in the delivery of IPA, in particular under the de-concentrated and decentralised

management modes. 15

The implementation can be handled:

 directly by central management: funds are managed by DG Enlargement at

headquarters;

 directly de-concentrated: funds are managed by EU Delegations under the

supervision;

14 Potential candidate countries were defined at the Santa Maria da Feira European Council of 20 June

2000.

15 Following the entry into force of the Treaty of Lisbon, Delegations have become a part of the European

External Action Service, with effect from 1 December 2010.

 directly centralised: cross-delegated when funds are managed by another

service of the Commission through cross sub-delegation;

 indirectly in a centralised indirect management: funds are managed by

executive agencies, specialised Community bodies (such as the European Investment Bank or the European Investment Fund) and national or international public-sector bodies or bodies governed by private law with a

public-service mission;

 indirectly decentralised with ex ante control: funds are managed by accredited

national authorities of the beneficiary country, but procurement is subject to ex ante control by the EC Delegation;

 decentralised without ex ante control: funds are managed by accredited national

authorities of the beneficiary country and are not subject to ex ante controls by an EC Delegation;

 joint: funds are jointly managed with International Organisations (EBRD, EIB,

Sigma, UN agencies, etc.)

5.3. The Instrument for Pre-accession 2014-20 – IPA II

Prepared in partnership with the beneficiaries, IPA II sets a new framework for

providing pre-accession assistance for the period 2014-2020.

The most important novelty of IPA II is its strategic focus. Country Strategy Papers are the specific strategic planning documents made for each beneficiary for the 7-year period. These will provide for a stronger ownership by the beneficiaries through integrating their own reform and development agendas. A Multi-Country Strategy

Paper will address priorities for regional cooperation or territorial cooperation.

IPA II targets reforms within the framework of pre-defined sectors. These sectors cover areas closely linked to the enlargement strategy, such as democracy and governance, rule of law or growth and competitiveness. This sector approach promotes structural reform that will help transform a given sector and bring it up to EU standards. It allows a move towards a more targeted assistance, ensuring

efficiency, sustainability and focus on results.

IPA II also allows for a more systematic use of sector budget support. Finally, it gives more weight to performance measurement: indicators agreed with the beneficiaries

will help assess to what extent the expected results have been achieved.

 The priorities outlined in the Strategy Papers are translated into detailed

actions, which are included in annual or multi-annual Action Programmes. IPA II Action Programmes take the form of Financing Decisions adopted by the

European Commission.

 The bulk of the assistance is channelled through the Country Action

Programmes for IPA II Beneficiaries, which are the main vehicles for addressing country-specific needs in priority sectors as identified in the

indicative Strategy Papers.

 Multi-Country Action Programmes aim at enhancing regional cooperation (in

particular in the Western Balkans) and at adding value to the Country Action Programmes through other multi-beneficiary actions.

 Cross-Border Cooperation Programmes represent the focus of assistance in the

area of territorial cooperation between IPA II beneficiaries, another important form of financial assistance.

Assistance for agriculture and rural development is also addressed via Rural Development Programmes.

IPA II funded activities are implemented and managed in various ways, in accordance with the Financial Regulation:

 Under direct management; i.e. the implementation of the budget is carried out

directly by the Commission until the relevant national authorities are accredited to manage the funds.

 Under indirect management; i.e. budget implementation tasks are delegated to

and carried out by entities entrusted by the Commission; they can be:

 the IPA II beneficiary or an entity designated by it (one of the main objectives of IPA

II is to encourage beneficiaries to take ownership and responsibility for implementation; indirect management by the IPAII beneficiary is therefore expected to

become the norm);

 an agency of a Member State or, exceptionally, of a third donor country;

 an international organisation; or

 an EU specialised (but not executive) agency.

In other words, the Commission delegates the management of certain actions to external entities, while still retaining overall final responsibility for the general

budget execution.

 Shared management; i.e. implementation tasks are delegated to EU member

states (only for cross–border cooperation programmes with EU countries).

In the context of direct management, Sector Budget Support is yet another tool for delivering pre-accession assistance and achieving sustainable results under IPA II. It consists of financial transfers to the national treasury account of an IPA II beneficiary and requires performance assessment and capacity development, based on partnership

and mutual accountability. It is delivered through Sector Reform Contracts.

Implementation of IPA II will include a comprehensive monitoring mechanism. It will contain a review of overall performance of the progress in achieving resultsat the strategic, sector and action levels (i.e. results-based performance), in addition to monitoring of financial execution. Performance measurement will be based on

indicators set out in the indicative Strategy Papers and the Programmes.

Joint monitoring committees (Commission and beneficiaries) will continue to monitor the implementation of financial assistance programmes, as was the case for

the previous period of IPA.

The Commission publishes an annual report on pre-accession assistance. This report

covers the previous budget year.

5.4. General analysis – Trend analysis

5.4.1. Trend analysis – Pre-accession assistance (PAA)

Regarding the Pre-Accession Assistance (PAA), the number of reported irregularities decreased in 2016 compared to the previous year. The downward trend, which started since 2009, is confirmed for the last five years, as showed by Table PA1.

With the phasing out of the pre-accession programmes, also the number of detected and reported fraudulent irregularities is continuously decreasing, with the only exception of the year 2013.

Table PA1 – Reported irregularities (PAA), 2012-16

Irregularities not Irregularities reported

Year reported as fraudulent as fraudulent TOTAL

N EUR N EUR N EUR

2012 188 42 967 413 20 4 031 246 208 46 998 659 2013 148 44 859 329 32 10 037 039 180 54 896 368 2014 52 7 239 952 21 6 901 593 73 14 141 545 2015 7 1 200 645 8 4 560 389 15 5 761 034 2016 5 247 894 3 1 828 769 8 2 076 663

TOTAL 400 96 515 233 84 27 359 035 484 123 874 269

In the past five years, most of the irregularities, fraudulent and non-fraudulent (97% of the total) and the highest aggregate amount (99% of the total) were reported by Romania and Bulgaria. In relation to the distribution of irregularities according to funds, the highest numbers relate to SAPARD (64%), while the most amounts concerned relate to SAPARD and ISPA (47% each).

5.4.2. Trend analysis Instrument for Pre-Accession (IPA I)

Generally it can be said that the trend of IPA reporting (financial framework 2007- 13) has begun to develop in a stable upward curve which means a continuous increase in the number of irregularities reported and involved amounts only since 2010. The increasing trend can be considered within the norm as the reporting of irregularities of IPA has only begun in recent years.

Table PA2 details the underlining data and shows the evolution of reporting of all the irregularities (reported and not reported as fraudulent) since 2012. Irregularities reported as fraudulent have been increasing over the last two years.

Table PA2 – Reported irregularities (IPA), 2012-16

Irregularities not reported Irregularities reported

Year as fraudulent as fraudulent TOTAL

N EUR N EUR N EUR

2012 13 1 032 488 6 299 247 19 1 331 735 2013 38 6 724 296 8 1 236 327 46 7 960 623 2014 86 2 555 293 6 95 051 92 2 650 344 2015 93 4 091 706 21 1 829 544 114 5 921 250 2016 86 7 095 980 25 1 195 027 111 8 291 007

TOTAL 316 21 499 763 66 4 655 196 382 26 154 959

During the last five years, the highest number of reported irregularities was

communicated by Turkey, Bulgaria and Croatia. The highest number of irregularities

was recorded in relation to IPARD and Cross-Border Cooperation. IPARD and

Regional Development score the highest in monetary value.

5.5. Specific analysis – Financial year 2015

5.5.1. Pre-Accession Assistance (PAA)

In 2016 a total number of 3 irregularities were reported as fraudulent with the amount affected of EUR 1.8 million as shown in Table PA3.

Table PA3 – Reported irregularities per country (PAA), 2016

Irregularities reported as Irregularities not

Country fraudulent reported as fraudulent TOTAL

N EUR N EUR N EUR

BG 3 101 351 3 101 351 RO 3 1 828 769 2 146 543 5 1 975 311 TOTAL 3 1 828 769 5 247 894 8 2 076 663

These fraudulent irregularities were reported by Romania. Bulgaria reported 3 nonfraudulent irregularities.

Like in the previous years, in 2015 the majority of cases concern again SAPARD, the Special Accession Programme for Agriculture and Rural Development.

The 3 irregular fraudulent cases reported are related to the SAPARD, which remains the most affected by fraud among all the PAA funds.

Table PA4 – Reported irregularities per fund (PAA), 2016

Irregularities reported as Irregularities not

FUND TOTAL fraudulent reported as fraudulent

N EUR N EUR N EUR

PHARE 3 101 351 3 101 351 SAPARD 3 1 828 769 2 146 543 5 1 975 311 TOTAL 3 1 828 769 5 247 894 8 2 076 663

5.5.2. Instrument for Pre-Accession (IPA)

In relation to IPA I (2007-13), there were 25 irregularities reported as fraudulent in 2016, for an overall financial impact of more than EUR 1.2 million. Tables PA5 and

PA6 show, respectively, the breakdown per country and per component.

Table PA5 – Reported irregularities per country (IPA), 2016

Irregularities reported as Irregularities not

Country fraudulent reported as fraudulent TOTAL

N EUR N EUR N EUR

BG 2 1 438 30 117 193 32 118 631 HR 1 1 006 8 164 783 9 165 788 MK 4 6 500 4 6 500 RS 5 29 113 7 42 018 12 71 130 TR 13 1 156 971 41 6 771 987 54 7 928 958 TOTAL 25 1 195 027 86 7 095 980 111 8 291 007

In 2016 Turkey was the country reporting the highest number of irregularities and the related financial amounts. Concerning the 20 irregularities reported as fraudulent,

these were reported by five countries.

Cross-Border Cooperation programmes record the highest number of irregularities reported, while Rural Development programmes account for the highest amounts

involved.

Table PA6 – Reported irregularities per component (IPA), 2016

Irregularities reported as Irregularities not

FUND TOTAL fraudulent reported as fraudulent

N EUR N EUR N EUR

CBC 7 30 551 39 163 297 46 193 848 HRD 2 1 006 14 1 266 733 16 1 267 739 IPARD 11 1 163 471 27 5 319 178 38 6 482 649 REGD 3 0 3 0 TAIB 2 0 6 346 771 8 346 771 TOTAL 25 1 195 027 86 7 095 980 111 8 291 007

No real pattern emerges from the analysis of the reported modus operandi for the fraudulent irregularities.

When it comes to the irregularities not reported as fraudulent, the most frequent infringements detected are related to 'irregularities concerning the operator' and the

'documentary proof'.

Section III – D IRECT M ANAGEMENT

6.

D IRECT M ANAGEMENT

6.1. Introduction

This chapter contains a descriptive analysis of the data on recovery orders issued by Commission services in relation to expenditures managed under ‘direct management’ mode, which is one of the three implementation modes the Commission can use to

implement the budget.

According to the Financial Regulation 16 , ‘direct management’ means that the

Commission implements the budget by its departments, including its staff in the Union Delegations under the authority of their respective Head of Delegation, or

through executive agencies.

For financial year 2016, a total of EUR 18.9 billion 17 has been effectively disbursed

under the ‘direct management’ mode. Table DM1 presents the actual payments made in financial year 2016 for the twenty policy areas corresponding to 97.7% of the

overall operational payments made under ‘direct management’.

Table DM1 – Payments made in financial year 2016 per policy area

16 The Financial Regulation provides for three types of management, one of them is the direct management

mode. In accordance with the European Parliament and the Council Regulation (EU, Euratom) No 2015/1929 and Commission Delegated Regulation (EU) No 2015/2462.

17 Own calculation based on ABAC data for the twenty policy areas representing 97.7% of operational

payments under the direct management mode, excluding administrative expenditure.

6.2. General analysis

In 2016, for the twenty policy areas, the Commission services registered 1910

recovery items 18 in ABAC that were qualified as irregularities for a total financial

value EUR 84.25 million. Among these recovery items, 49 have been reported as fraudulent, involving EUR 6.25 million irregular amounts.

However, it has to be underlined that qualifications attributed to recovery items may change over the years: it may happen that cases of irregularities are turned to suspicions of fraud or the other way round, suspicions of fraud are reclassified as non-fraudulent irregularities upon the closure of the OLAF investigation. As a consequence, no direct conclusion can be drawn from the data with regard to the

general trend of irregularities or fraud in this budget area.

6.2.1. Five year analysis 2012-2016

The below analysis gives an overview of recovery data recorded in the ABAC system in the last five years. From a purely statistical point of view, it can be said that between 2012 and 2016, the average number of recovery items qualified as

‘irregularities reported as fraudulent’ 19 was 43. The peak so far has been reached in

2014, when 89 recovery items were qualified as fraudulent. However, with regard to the recovery amounts, it has been 2016 when the highest overall amount of EUR 6.25 million were recorded as irregular amounts linked to recovery items qualified as

fraudulent.

Over the five year period, the ratio between the amounts related to irregularities

reported as fraudulent’ and relative expenditure 20 is very small, as it remains close to

zero (0.025%). The figures are presented in Table DM2 below.

Table DM2 – Irregularities reported as fraudulent and related amounts, financial

years 2012-2016

At the same time, we can experience a steady increase of the recorded number of ‘irregularities not reported as fraudulent’ as well as of the associated financial amounts until 2015. However, figures drop for 2016, as it is demonstrated by table

DM3 below.

18 Recovery items mean 'recovery context' elements in ABAC. There can be more recovery context

elements associated to one recovery order issued.

19 ‘Irregularities reported as fraudulent’ are cases of recovery items qualified in the ABAC system as

‘OLAF notified’.

20 Relative expenditure means that for the calculation only the effective operational payments related to the

twenty policy areas are taken into account.

Table DM3 – Irregularities not reported as fraudulent and related amounts, financial

years 2012-2016

Between 2012 and 2016, there were all together 8676 registered recovery items qualified as ‘irregularities not reported as fraudulent’ with the aggregate recovery

amount of EUR 431.31 million.

The ratio between the aggregate irregular amounts corresponding to the recovery items (classified as ‘irregularities not reported as fraudulent’ between 2012 and 2016)

and the reference figure of the related expenditure is about half a percent (0.572%).

These figures demonstrate the efficiency of the irregularity detection and recovery mechanisms in place.

6.3. Specific analysis

6.3.1. Recoveries according policy areas

Table DM4 provides a picture of irregularity statistics with a breakdown of the twenty policy areas for year 2016.

Table DM4 – Irregularities reported by policy areas and related amounts, 2016

In the financial year 2016, the highest numbers of recovery items qualified as 'irregularities not reported as fraudulent' were recorded in the ‘Research and innovation’ budget area. In terms of irregular amounts related to these irregularities, it

was also the policy field ‘Research and innovation’ that scored by far with the highest amount of EUR 22.03 million, which is followed by budget areas ‘Mobility and transport’ (EUR 8.45 million) and ‘Communications networks, content and technology’ (EUR 8.24 million). Furthermore, substantial irregular amounts have been recovered in areas of ‘Neighbourhood and enlargement negotiations’ (EUR 7.34 million), ‘International cooperation and development’ (EUR 6.54 million) and ‘Foreign Policy Instruments’ (EUR 6.26 million). These six policy areas account for 58.9 % of the total irregular amounts recovered.

Regarding ‘irregularities reported as fraudulent’, there were 49 recovery items registered mostly concerning budget area ‘Communications networks, content and technology’ (29 items), followed by ‘Foreign policy instruments’ (9 items) and ‘Research and innovation’ (7 items) budget areas.

The total relate irregular amounts were EUR 6.25 million, out of which alone policy area ‘Communications networks, content and technology’ counts for EUR 4.97 million.

The five year perspective of irregularities regarding the twenty policy fields is presented hereunder by table DM5.

Table DM5 – Irregularities reported by policy areas and related amounts, financial years 2012-2016

The above table demonstrates that ‘Communications networks, content and technology’ policy field recorded the highest aggregate recovery amounts (EUR 8.56 million) over the past five years in relation to ‘irregularities reported as fraudulent’ followed by policy areas ‘Education and culture’, ‘Foreign Policy Instruments’ and ‘Research and innovation’ (each amounting to around EUR 2 million). These four policy areas account for four fifths of the total recovery amounts related to ‘irregularities reported as fraudulent’ between 2012 and 2016.

Regarding ‘irregularities not reported as fraudulent’, the highest aggregate recovery amounts (EUR 98.56 million) were recorded in the policy area of ‘Mobility and

transport’ during the last five years. It is followed by ‘Research and innovation’ (EUR 84.52 million) and then by ‘Communications networks, content and technology’ (EUR 64.59 million) policy fields. These three policy areas account for over the half (57.4%) of the total recovery amounts related to ‘irregularities not reported as fraudulent’ over the past five years. A further one fifth (19.3%) of the aggregate recovery amounts were recorded in relation to policy fields ‘International Cooperation and Development’, ‘Education and culture’, and ‘Energy’. However, one has to bear in mind that compared to the overall payments made for the twenty policy fields, the irregularity rate remains close to zero, on average 0.572% for the period

2012-2016.

6.3.2. Recoveries according to legal entity residence

87.5% of the total number of recovery items qualified as irregular (whether reported as fraudulent or not) concerned legal entities resident of the European Union. It should be noted however, that the residence of the legal entity is not necessarily the same as that of the main beneficiary. Nevertheless, in 75.5% of these irregularities,

the main beneficiary was also an EU Member State.

Table DM6 – Recoveries per country of residence of the legal entity, 2012-2016

Irregularities not Irregularities reported LE Country name reported as fraudulent as fraudulent

EUR N EUR N Austria 7 263 372 141 0 0 Belgium 28 652 329 814 807 678 16 Bulgaria 1 217 266 71 35 779 1 Croatia 2 504 569 48 755 003 4 Cyprus 3 779 649 50 0 0 Czech Republic 5 520 278 78 1210 1 Denmark 5 185 795 149 121 404 1 Estonia 1 457 424 39 0 0 Finland 3 164 355 135 0 0 France 39 151 112 929 983 847 5 Germany 39 332 914 825 803 686 10 Greece 16 337 509 327 1 112 924 7 Hungary 3 018 012 97 1 019 932 15 Ireland 5 274 155 93 0 0 Italy 50 748 921 794 7 834 740 76 Latvia 133 921 24 0 0 Lithuania 514 097 41 0 0 Luxembourg 1 552 991 29 0 0 Malta 2 652 011 32 0 0 Netherlands 31 593 845 679 134 928 2 Poland 3 133 737 94 63 835 2 Portugal 38 051 789 151 1 002 511 10 Romania 9 630 610 96 79 658 3 Slovakia 1 331 301 25 492 599 3 Slovenia 1 358 490 37 0 0 Spain 23348771 547 1 106 103 35 Sweden 18 204 481 254 262 575 4 United Kingdom 44 143 374 995 888 246 9 Total EU 388 257 079 7 594 17 506 658 204 Total other countries 43 051 652 1082 1 403 321 13 Grand Total 431 308 731 86 76 18 909 978 217

Table DM6 above summarises the total recoveries made in the past five years according to the legal entity country to which the payment was unduly disbursed.

6.3.3. Method of detection

For each recovery item, the Commission service issuing the recovery order has to indicate how the irregularity has been detected. Six different categories are predefined for this purpose, two of which fall under the direct responsibility of the European Commission: ‘Ex-ante controls’ and ‘Ex-post controls’. Table DM7 gives a breakdown of the recoveries by source of detection and by qualification in the last five years.

Table DM7 – Irregularities reported by source of detection and by qualification,

2012-2016

Source of detection Irregularities not Irregularities reported 2012-2016 reported as fraudulent as fraudulent

EUR N EUR N Ex-ante controls 153 670 170 2 361 934 851 9 Ex-post controls 177 840 907 4 571 4 616 867 73 Other controls (ECA) 15 174 791 55 16 716 1 Other controls (Member States) 972 611 9 0 0 Other controls (OLAF) 3 287 999 23 12 707 119 126 Other controls (To identify) and n.a. 80 362 253 1 657 634 426 8 TOTAL 431 308 731 8 676 18 909 978 217

Regarding the ‘irregularities reported as fraudulent’, ‘OLAF’ has been marked as the source of detection in relation to 58.0% of recovery items corresponding to 67.2% of total recovery amounts. Meanwhile ‘Ex-post controls’ was the source of detection of

73 recovery items corresponding to also one quarter of the recovery amounts.

The 80% of ‘irregularities not reported as fraudulent’ were detected through Commission controls. There is an increasing tendency over the past five years both in terms of number and of financial value of cases detected due to the effective ex-ante and ex-post controls. Year 2016 represents so far the peak, 80.4% of recovery items (all irregularities) were detected by such controls involving 90.5% of total related

irregular amounts.

6.3.4. Types of irregularity

The Commission services also have to indicate the type of irregularity in the recovery context for the respective recovery item in question. Several types can be attributed to one recovery item. It can be observed that irregularity type ‘Amount ineligible’ appears the most frequently in the past five years, followed by types ‘Documents missing’ and ‘Under-performance / non-performance’. Table DM8 provides the full

picture regarding the frequency of occurrence of each type.

Table DM8 – Types of irregularity, 2012-2016

Irregularities not Irregularities reported as reported as

Type of irregularity 2012-2016 fraudulent fraudulent (frequency %) (frequency %)

Amount Number Amount Number Amount ineligible 53.2 72.0 61.0 50.9 Beneficiary 2.3 2.1 0.2 0.7 Documents missing 11.0 10.3 25.9 37.1 Double funding 6.9 1.3 3.2 3.1 Profit 0.4 0.4 0.6 0.3 Public procurement rules not respected 7.6 2.7 2.2 3.1 Under-performance / non-performance 16.3 8.0 3.7 3.1 (blank) 2.2 3.3 3.2 1.7

The same pattern of irregularity type frequency was observed last year taking into account the 2011-2015 periods.

6.3.5. Time delay

For the recovery items qualified as irregularities (both reported as fraudulent and not reported as fraudulent) issued between 2012 and 2016, the average delay between the occurrence of the irregularity and its detection is about 3 years. It should be noted however, that the average time delay is slightly lower for recovery items qualified as

fraudulent (2.9 years) than for other non-fraudulent irregularities (3.2 years).

6.3.6. Recovery

Once a recovery order is issued, the beneficiary is requested to pay back the amount unduly received or the amount is offset from remaining payments for the beneficiary.

For the recovery orders issued between 2012 and 2016, 63.2% of the total irregular amounts have already been recovered. This percentage is exactly the same as for period 2011-2015. This means that about EUR 284 million out of the total recovery amount EUR 450 million has already been cashed. Yet, there are differences between the recovery rates for irregularities reported as fraudulent and those not reported as fraudulent. The recovery rate for ‘irregularities reported as fraudulent’ remains well below the recovery rate for ‘irregularities not reported as fraudulent’. When looking at the five year period, the recovery rate for ‘irregularities reported as fraudulent’ is only 20.9%, meanwhile for ‘irregularities not reported as fraudulent’ it is higher,

65.0%.

COUNTRY FACTSHEETS

Belgium - Belgique/België

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 36 9 261 635 167 6 679 740 0.62%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 15 226 035 0.00% 0.04% EAFRD 5 205 982 0.00% 0.36% EAGF/EAFRD 1 10 731

TOTAL 0 0 21 442 748 0.00% 0.07%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 3 401 569 53 1 047 139 0.01% 0.03% EAFRD 25 569 716 0.00% 0.23% EAGF/EAFRD 6 161 586 TOTAL 3 401 569 84 1 778 441 0.01% 0.05%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 10 1 11 9% Irregularities reported as fraudulent 2012-16 1 2 3 67%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 1 0 60 3 239 754 n/r n/r

ERDF 0 0 35 1 462 541 n/r n/r ESF 1 0 25 1 777 214 n/r n/r

Programming Period 2007-13 -

cumulative 6 3 238 250 346 22 407 928 0.17% 1.17%

ERDF 3 1 936 127 5 403 263 0.00% 0.58% ESF 3 3 236 314 219 17 004 665 0.33% 1.71%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 3 3 0% Irregularities reported as fraudulent 2012-16* 7 7 0%

Bulgaria - България

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 11 436 567 2 52 150 0.54%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 3 1 051 320 0.14% 0.00% EAFRD 57 11 056 186 40 3 713 584 4.29% 1.44% EAGF/EAFRD

TOTAL 60 12 107 506 40 3 713 584 1.21% 0.37%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 25 2 922 163 17 2 298 022 0.10% 0.08% EAFRD 137 17 148 044 101 17 901 045 0.97% 1.02% EAGF/EAFRD 1 25 105

TOTAL 163 20 095 312 118 20 199 067 0.42% 0.43%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 167 59 226 26% Irregularities reported as fraudulent 2012-16 131 32 163 20%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 4 565 873 140 33 534 541 n/r n/r

CF 0 0 38 22 539 265 n/r n/r ERDF 2 486 021 84 10 044 524 n/r n/r

ESF 2 79 853 18 950 752 n/r n/r Programming Period 2007-13 -

cumulative 34 7 348 544 701 112 681 317 0.13% 2.00%

CF 1 5 019 507 195 52 927 499 0.27% 2.88% ERDF 11 790 358 408 52 315 677 0.03% 1.96%

ESF 22 1 538 679 98 7 438 141 0.14% 0.67%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 25 2 27 7% Irregularities reported as fraudulent 2012-16 27 1 28 4%

Czech Republic - Česká republika

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 2 140 600 80 5 298 065 1.73%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 4 18 233 5 265 107 0.00% 0.03% EAFRD 10 834 014 37 2 482 278 0.24% 0.72% EAGF/EAFRD

TOTAL 14 852 246 42 2 747 385 0.07% 0.23%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 14 5 788 304 52 26 098 347 0.14% 0.61% EAFRD 39 69 771 598 278 265 908 343 4.34% 16.55% EAGF/EAFRD

TOTAL 53 75 559 902 330 292 006 690 1.29% 4.99%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 24 1 25 4% Irregularities reported as fraudulent 2012-16 47 6 53 11%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 37 30 467 351 409 111 433 627 n/r n/r

CF 2 20 607 73 41 726 918 n/r n/r ERDF 27 28 941 805 221 53 618 457 n/r n/r

ESF 8 1 504 939 115 16 088 252 n/r n/r

Programming Period 2007-13 -

cumulative 149 228 389 445 4 027 1 256 214 563 1.04% 5.72%

CF 11 17 422 031 362 131 329 741 0.25% 1.88% ERDF 99 207 877 962 2 132 1 019 706 638 1.78% 8.75%

ESF 39 3 089 452 1 533 105 178 183 0.09% 3.13%

Established

Ratio of established fraud Suspected fraud fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 48 5 53 9% Irregularities reported as fraudulent 2012-16* 137 5 142 4%

*

Includes different programming periods

Denmark - Danmark

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 5 8 581 374 73 3 720 877 2.93%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 2 45 627 5 260 698 0.01% 0.03% EAFRD 2 209 103 18 3 271 972 0.18% 2.77% EAGF/EAFRD

TOTAL 4 254 730 23 3 532 670 0.03% 0.36% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 78 27 724 550 79 17 188 712 0.60% 0.37% EAFRD 3 212 058 55 15 306 644 0.05% 3.94% EAGF/EAFRD

TOTAL 81 27 936 608 134 32 495 357 0.56% 0.65%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 118 118 0% Irregularities reported as fraudulent 2012-16 80 1 81 1%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 13 629 008 n/r n/r

ERDF 7 383 330 n/r n/r ESF 6 245 678 n/r n/r

Programming Period 2007-13 -

cumulative 1 201 898 33 1 278 670 0.04% 0.26%

ERDF 1 201 898 18 755 591 0.08% 0.31% ESF 15 523 079 0.00% 0.22%

Established

Ratio of established fraud Suspected fraud fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 0 #DIV/0! Irregularities reported as fraudulent 2012-16 1 1 0%

Germany - Deutschland

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 93 5 112 337 1 489 67 203 731 1.39%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 1 26 079 23 637 380 0.00% 0.01% EAFRD 2 205 754 45 2 251 291 0.02% 0.20% EAGF/EAFRD 2 156 517

TOTAL 3 231 833 70 3 045 188 0.00% 0.05%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 10 1 360 843 194 4 401 979 0.01% 0.02% EAFRD 15 1 438 900 266 10 695 212 0.03% 0.20% EAGF/EAFRD 3 177 297 TOTAL 25 2 799 744 463 15 274 488 0.01% 0.05%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 17 4 21 19% Irregularities reported as fraudulent 2012-16 21 4 25 16%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 24 5 508 712 256 24 133 915 n/r n/r

ERDF 4 2 403 613 177 19 010 496 n/r n/r ESF 20 3 105 098 79 5 123 419 n/r n/r

Programming Period 2007-13 -

cumulative 221 32 603 668 1 374 112 056 581 0.14% 0.48%

ERDF 41 12 702 610 905 85 745 178 0.09% 0.58% ESF 180 19 901 059 469 26 311 403 0.23% 0.30%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 183 124 307 40% Irregularities reported as fraudulent 2012-16* 196 19 215 9%

*

Includes different programming periods

Estonia - Eesti

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 1 0 3 63 879 0.19%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0.00% 0.00% EAFRD 5 1 735 030 18 713 094 1.32% 0.54% EAGF/EAFRD

TOTAL 5 1 735 030 18 713 094 0.68% 0.28% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 12 0.00% 0.00% EAFRD 30 10 360 149 152 4 855 816 2.47% 1.16% EAGF/EAFRD

TOTAL 30 10 360 149 164 4 855 816 1.10% 0.52%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 19 4 23 17% Irregularities reported as fraudulent 2012-16 27 3 30 10%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 9 3 958 131 21 766 978 n/r n/r

CF 1 422 969 n/r n/r ERDF 7 3 346 162 20 735 022 n/r n/r

ESF 1 189 000 1 31 956 n/r n/r Programming Period 2007-13 -

cumulative 21 7 613 236 367 30 125 508 0.24% 0.93%

CF 5 2 691 616 16 2 552 499 0.25% 0.23% ERDF 14 4 700 664 296 26 274 164 0.27% 1.49%

ESF 2 220 956 55 1 298 846 0.06% 0.35%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 6 4 10 40% Irregularities reported as fraudulent 2012-16* 18 3 21 14%

*

Includes different programming periods

Ireland - Éire

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 3 445 574 28 4 561 472 1.40%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 28 523 623 0.00% 0.04% EAFRD 33 856 953 0.00% 0.21% EAGF/EAFRD

TOTAL 0 0 61 1 380 576 0.00% 0.08%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 3 77 418 402 8 377 705 0.00% 0.13% EAFRD 32 385 305 122 4 355 186 0.03% 0.32% EAGF/EAFRD

TOTAL 35 462 723 524 12 732 891 0.01% 0.17%

Suspected fraud Established Ratio of established fraud fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 4 4 0% Irregularities reported as fraudulent 2012-16 32 3 35 9%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 39 5 146 539 n/r n/r

ERDF 10 811 685 n/r n/r ESF 29 4 334 855 n/r n/r

Programming Period 2007-13 -

cumulative 2 15 672 173 11 778 216 0.00% 1.74%

ERDF 21 1 429 426 0.00% 0.42% ESF 2 15 672 152 10 348 790 0.00% 3.10%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 3 3 0% Irregularities reported as fraudulent 2012-16 0 #DIV/0!

*

Includes different programming periods

Greece - Ελλάδα

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 30 5 594 313 8 8 599 250 7.17%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 26 442 876 0.00% 0.02% EAFRD 2 38 015 93 1 608 901 0.01% 0.22% EAGF/EAFRD

TOTAL 2 38 015 119 2 051 777 0.00% 0.07% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 17 1 806 632 107 41 574 621 0.02% 0.36% EAFRD 18 752 593 313 6 556 670 0.03% 0.30% EAGF/EAFRD

TOTAL 35 2 559 226 420 48 131 291 0.02% 0.35%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 28 1 29 3% Irregularities reported as fraudulent 2012-16 34 1 35 3%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 16 3 359 857 552 180 496 798 n/r n/r

CF 28 3 173 474 n/r n/r ERDF 10 3 188 662 417 166 480 576 n/r n/r

ESF 6 171 195 107 10 842 748 n/r n/r Programming Period 2007-13 -

cumulative 45 11 779 140 1 466 562 133 471 0.06% 2.84%

CF 110 57 460 203 0.00% 1.57% ERDF 36 11 558 611 1 148 466 383 816 0.10% 3.88%

ESF 9 220 530 208 38 289 452 0.01% 0.92%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 22 7 29 24% Irregularities reported as fraudulent 2012-16* 52 7 59 12%

*

Includes different programming periods

Spain - España

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 42 2 972 087 242 41 581 643 2.36%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 1 19 319 122 8 799 350 0.00% 0.16% EAFRD 9 561 449 192 12 901 817 0.06% 1.43% EAGF/EAFRD

TOTAL 10 580 768 314 21 701 167 0.01% 0.33% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 25 1 264 429 956 38 885 003 0.00% 0.14% EAFRD 27 1 357 130 916 72 115 076 0.03% 1.54% EAGF/EAFRD

TOTAL 52 2 621 559 1872 111 000 079 0.01% 0.33%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 22 1 23 4% Irregularities reported as fraudulent 2012-16 52 52 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 7 5 213 134 2 599 304 079 926 n/r n/r

CF 47 25 460 745 n/r n/r ERDF 7 5 213 134 2 497 275 268 866 n/r n/r

ESF 55 3 350 315 n/r n/r Programming Period 2007-13 -

cumulative 117 17 036 352 8 429 1 221 684 443 0.06% 4.21%

CF 2 95 639 210 49 598 244 0.00% 1.47% ERDF 110 16 526 011 7 785 1 135 520 691 0.08% 5.77%

ESF 5 414 702 434 36 565 508 0.01% 0.61%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 17 2 19 11% Irregularities reported as fraudulent 2012-16* 116 116 0%

*

Includes different programming periods

France

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 83 28 785 027 234 21 343 994 2.45%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 18 2 533 258 76 6 743 906 0.04% 0.09% EAFRD 4 842 554 131 2 847 052 0.12% 0.41% EAGF/EAFRD

TOTAL 22 3 375 812 207 9 590 957 0.04% 0.12%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 50 28 499 420 422 56 763 975 0.07% 0.14% EAFRD 6 913 958 355 7 497 900 0.02% 0.19% EAGF/EAFRD

TOTAL 56 29 413 378 777 64 261 875 0.06% 0.14%

Suspected fraud Established Ratio of established fraud fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 13 13 0% Irregularities reported as fraudulent 2012-16 55 1 56 2%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 80 8 970 768 n/r n/r

ERDF 25 7 594 188 n/r n/r ESF 55 1 376 580 n/r n/r

Programming Period 2007-13 -

cumulative 5 2 886 409 377 56 853 843 0.02% 0.45%

ERDF 1 197 681 228 38 770 755 0.00% 0.53% ESF 4 2 688 728 149 18 083 088 0.05% 0.35%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 1 1 2 50% Irregularities reported as fraudulent 2012-16 5 5 0%

*

Includes different programming periods

Croatia - Hrvatska

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 5 342 006 12 589 781 1.60%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 6 182 252 0.00% 0.10% EAFRD 10 2 575 582 17 317 999 1.70% 0.21% EAGF/EAFRD

TOTAL 10 2 575 582 23 500 251 0.75% 0.15% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 7 317 686 0.00% 0.11% EAFRD 10 2 575 582 17 317 999 1.70% 0.21% EAGF/EAFRD

TOTAL 10 2 575 582 24 635 685 0.59% 0.15%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2012-16 10 10 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 1 92 949 7 2 220 316 n/r n/r

CF n/r n/r ERDF 1 92 949 6 2 199 748 n/r n/r

ESF 1 20 569 n/r n/r

Programming Period 2007-13 -

cumulative 4 2 277 409 8 2 222 747 0.41% 0.40%

CF 0.00% 0.00% ERDF 2 2 231 541 7 2 202 179 0.90% 0.89%

ESF 2 45 868 1 20 569 0.04% 0.02%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 0 #DIV/0! Irregularities reported as fraudulent 2012-16 4 4 0%

Italy - Italia

1.

Traditional Own Resources
OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 22 6 548 191 89 17 235 008 1.06%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 12 703 791 397 40 051 492 0.02% 0.89% EAFRD 7 1 975 382 317 20 775 502 0.20% 2.12% EAGF/EAFRD 1 27 836 20 1 436 462

TOTAL 20 2 707 009 734 62 263 456 0.05% 1.14%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 194 48 850 311 1 332 79 736 888 0.21% 0.35% EAFRD 71 7 455 768 874 42 065 039 0.13% 0.71% EAGF/EAFRD 15 2 242 771 44 4 485 185 TOTAL 280 58 548 849 2250 126 287 112 0.20% 0.44%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 301 11 312 4% Irregularities reported as fraudulent 2012-16 268 12 280 4%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 155 47 139 562 n/r n/r

ERDF 95 45 430 263 n/r n/r ESF 60 1 709 299 n/r n/r

Programming Period 2007-13 -

cumulative 77 297 900 897 1 068 341 196 237 1.34% 1.54%

ERDF 64 295 707 983 910 322 189 557 1.85% 2.02% ESF 13 2 192 915 158 19 006 679 0.04% 0.31%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 306 15 321 5% Irregularities reported as fraudulent 2012-16* 136 2 138 1%

*

Includes different programming periods

Cyprus - Κύπρος

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 7 332 446 0 0 1.26%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0 0 0.00% 0.00% EAFRD 0 0 0.00% 0.00% EAGF/EAFRD

TOTAL 0 0 0 0 0.00% 0.00% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 2 81 332 19 939 181 0.03% 0.35% EAFRD 4 170 890 26 801 282 0.17% 0.80% EAGF/EAFRD

TOTAL 6 252 222 45 1 740 463 0.07% 0.47%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 0 0 #DIV/0! Irregularities reported as fraudulent 2012-16 6 6 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 6 265 074 n/r n/r

CF 1 15 666 n/r n/r ERDF 2 32 425 n/r n/r

ESF 3 216 983 n/r n/r Programming Period 2007-13 -

cumulative 5 328 774 24 1 136 238 0.06% 0.20%

CF 1 15 666 0.00% 0.01% ERDF 3 315 249 13 257 548 0.12% 0.10%

ESF 2 13 526 10 863 024 0.01% 0.76%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 3 1 4 25% Irregularities reported as fraudulent 2012-16 4 1 5 20%

Latvia - Latvija

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 12 661 068 15 2 523 277 7.35%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0.00% 0.00% EAFRD 12 987 285 15 620 012 0.57% 0.36% EAGF/EAFRD

TOTAL 12 987 285 15 620 012 0.27% 0.17% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 2 21 143 0.00% 0.00% EAFRD 34 2 365 281 113 3 611 278 0.35% 0.53% EAGF/EAFRD

TOTAL 34 2 365 281 115 3 632 422 0.16% 0.25%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 5 2 7 29% Irregularities reported as fraudulent 2012-16 32 2 34 6%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 12 10 601 187 175 40 042 783 n/r n/r

CF 54 21 230 882 n/r n/r ERDF 12 10 601 187 118 18 452 091 n/r n/r

ESF 3 359 810 n/r n/r Programming Period 2007-13 -

cumulative 88 41 617 498 498 99 930 147 0.97% 2.32%

CF 1 504 67 22 307 584 0.00% 1.53% ERDF 76 41 460 542 380 71 937 875 1.81% 3.15%

ESF 11 156 451 51 5 684 689 0.03% 1.03%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 40 6 46 13% Irregularities reported as fraudulent 2012-16 74 8 82 10%

*

Includes different programming periods

100

Lithuania - Lietuva

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 10 266 102 16 1 055 777 1.36%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 18 270 522 0.00% 0.06% EAFRD 11 2 087 218 74 4 308 426 0.76% 1.56% EAGF/EAFRD

TOTAL 11 2 087 218 92 4 578 948 0.29% 0.64% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 138 5 725 135 0.00% 0.30% EAFRD 37 13 319 249 480 61 950 748 1.24% 5.77% EAGF/EAFRD

TOTAL 37 13 319 249 618 67 675 883 0.45% 2.26%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 5 5 0% Irregularities reported as fraudulent 2012-16 37 37 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 3 359 879 28 3 707 610 n/r n/r

CF n/r n/r ERDF 1 110 589 19 3 480 388 n/r n/r

ESF 2 249 290 9 227 222 n/r n/r Programming Period 2007-13 -

cumulative 14 1 818 634 493 126 185 765 0.03% 1.96%

CF 4 732 148 155 87 299 870 0.03% 3.99% ERDF 5 526 379 308 37 729 768 0.02% 1.15%

ESF 5 560 108 30 1 156 126 0.06% 0.12%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 12 12 0% Irregularities reported as fraudulent 2012-16 8 2 10 20%

*

Includes different programming periods

101

Luxembourg

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 0 0 0 0 0.00%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0.00% 0.00% EAFRD 0.00% 0.00% EAGF/EAFRD

TOTAL 0 0 0 0 0.00% 0.00%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 1 8 046 0.00% 0.00% EAFRD 1 252 050 0.57% 0.00% EAGF/EAFRD

TOTAL 1 252 050 1 8 046 0.12% 0.00%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 1 1 0% Irregularities reported as fraudulent 2012-16 1 1 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 0 0 n/r n/r

ERDF n/r n/r ESF n/r n/r

Programming Period 2007-13 -

cumulative 0 0 8 210 788 0.00% 0.44%

ERDF 0.00% 0.00% ESF 8 210 788 0.00% 0.88%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 0 #DIV/0!

Irregularities reported as fraudulent 2012-16 0 #DIV/0!

102

Hungary - Magyarország

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 2 88 762 14 4 126 454 2.37%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 9 813 620 28 1 867 952 0.06% 0.14% EAFRD 15 340 538 130 4 566 455 0.10% 1.33% EAGF/EAFRD

TOTAL 24 1 154 158 158 6 434 407 0.07% 0.39% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 42 8 305 217 602 10 236 723 0.13% 0.16% EAFRD 211 11 837 708 863 39 446 980 0.54% 1.79% EAGF/EAFRD

TOTAL 253 20 142 925 1465 49 683 703 0.23% 0.57%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 66 7 73 10% Irregularities reported as fraudulent 2012-16 248 5 253 2%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 21 1 844 119 555 105 640 932 n/r n/r

CF 32 8 354 209 n/r n/r ERDF 20 1 734 979 456 83 907 163 n/r n/r

ESF 1 109 140 67 13 379 559 n/r n/r Programming Period 2007-13 -

cumulative 83 7 179 221 1 582 225 870 845 0.03% 1.03%

CF 2 126 056 125 31 456 305 0.00% 0.39% ERDF 68 5 867 134 1 248 164 378 880 0.05% 1.49%

ESF 13 1 186 031 209 30 035 660 0.04% 1.02%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 12 12 0% Irregularities reported as fraudulent 2012-16 79 79 0%

*

Includes different programming periods

103

Malta

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 1 167 040 0 0 1.11%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0.00% 0.00% EAFRD 0.00% 0.00% EAGF/EAFRD

TOTAL 0 0 0 0 0.00% 0.00% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 1 75 099 0.00% 0.27% EAFRD 6 175 628 10 206 044 0.39% 0.46% EAGF/EAFRD

TOTAL 6 175 628 11 281 143 0.24% 0.39%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 5 5 0% Irregularities reported as fraudulent 2012-16 6 6 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 13 10 955 650 n/r n/r

CF 2 10 601 108 n/r n/r ERDF 3 120 049 n/r n/r

ESF 8 234 494 n/r n/r Programming Period 2007-13 -

cumulative 15 266 825 58 13 429 938 0.04% 1.96%

CF 5 10 704 824 0.00% 4.74% ERDF 15 266 825 37 2 306 126 0.07% 0.63%

ESF 16 418 988 0.00% 0.46%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 14 14 0% Irregularities reported as fraudulent 2012-16 15 15 0%

104

Netherlands - Nederland

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 6 261 626 517 147 056 822 4.96%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 25 967 117 0.00% 0.12% EAFRD 19 357 209 0.00% 0.49% EAGF/EAFRD

TOTAL 0 0 44 1 324 326 0.00% 0.15%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 4 53 250 160 272 20 881 118 1.23% 0.48% EAFRD 291 9 388 976 0.00% 2.24% EAGF/EAFRD

TOTAL 4 53 250 160 563 30 270 094 1.12% 0.64%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 5 5 0% Irregularities reported as fraudulent 2012-16 2 2 4 50%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 2 0 19 2 704 536 n/r n/r

ERDF 14 386 731 n/r n/r ESF 2 5 2 317 805 n/r n/r

Programming Period 2007-13 -

cumulative 12 3 903 370 286 25 845 430 0.26% 1.71%

ERDF 234 17 894 787 0.00% 2.44% ESF 12 3 903 370 52 7 950 643 0.50% 1.02%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 2 2 0% Irregularities reported as fraudulent 2012-16 12 12 0%

*

Includes different programming periods

105

Austria - Österreich

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 14 5 716 261 47 10 535 675 6.07%

2.

Natural Resources Irregularities reported in 2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent
Fund FDR IDR

N EUR N EUR % %

EAGF 1 13 000 0.00% 0.00% EAFRD 1 14 444 10 257 725 0.00% 0.04% EAGF/EAFRD

TOTAL 2 27 444 10 257 725 0.00% 0.02%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 4 43 030 33 917 774 0.00% 0.03% EAFRD 5 44 206 50 975 737 0.00% 0.04% EAGF/EAFRD

TOTAL 9 87 236 83 1 893 511 0.00% 0.03%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 9 1 10 10% Irregularities reported as fraudulent 2012-16 8 1 9 11%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 33 2 143 370 n/r n/r

ERDF 18 778 042 n/r n/r ESF 15 1 365 328 n/r n/r

Programming Period 2007-13 -

cumulative 7 1 155 265 271 21 267 967 0.11% 1.94%

ERDF 6 1 144 354 221 18 753 828 0.19% 3.15% ESF 1 10 911 50 2 514 139 0.00% 0.50%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 8 1 9 11% Irregularities reported as fraudulent 2012-16 1 1 2 50%

*

Includes different programming periods

106

Poland - Polska

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 92 3 101 717 74 4 084 106 0.97%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 26 5 882 034 15 902 353 0.16% 0.03% EAFRD 71 7 138 919 302 20 816 554 0.65% 1.88% EAGF/EAFRD

TOTAL 97 13 020 953 317 21 718 907 0.28% 0.46% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 117 41 444 983 236 16 124 608 0.25% 0.10% EAFRD 227 13 863 075 1 041 38 863 498 0.17% 0.49% EAGF/EAFRD 2 145 420 7 184 558

TOTAL 346 55 453 478 1284 55 172 664 0.23% 0.23%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 144 29 173 17% Irregularities reported as fraudulent 2012-16 316 30 346 9%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 52 32 314 357 1 062 302 590 368 n/r n/r

CF 36 8 962 205 n/r n/r ERDF 36 30 460 673 972 288 812 907 n/r n/r

ESF 16 1 853 685 54 4 815 256 n/r n/r Programming Period 2007-13 -

cumulative 273 394 668 263 5 017 1 121 191 504 0.62% 1.76%

CF 8 166 033 161 201 251 040 834 0.78% 1.18% ERDF 214 221 040 852 4 288 826 879 323 0.67% 2.51%

ESF 51 7 594 249 528 43 271 347 0.08% 0.46%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 139 16 155 10% Irregularities reported as fraudulent 2012-16* 211 13 224 6%

*

Includes different programming periods

107

Portugal

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 0 0 15 6 461 250 3.73%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 2 59 665 43 1 387 364 0.01% 0.18% EAFRD 2 5 974 172 416 17 339 515 0.80% 2.32% EAGF/EAFRD

TOTAL 4 6 033 837 459 18 726 879 0.40% 1.24% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 5 1 987 116 325 7 021 763 0.05% 0.19% EAFRD 12 6 556 785 944 41 259 941 0.22% 1.36% EAGF/EAFRD

TOTAL 17 8 543 901 1269 48 281 704 0.13% 0.71%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 2 1 3 33% Irregularities reported as fraudulent 2012-16 14 3 17 18%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 6 8 325 565 156 10 846 380 n/r n/r

CF 13 907 078 n/r n/r ERDF 5 8 051 757 82 7 717 424 n/r n/r

ESF 1 273 808 61 2 221 877 n/r n/r Programming Period 2007-13 -

cumulative 33 89 457 385 812 114 346 984 0.44% 0.56%

CF 1 91 452 76 7 355 299 0.00% 0.25% ERDF 14 67 959 513 422 92 386 298 0.62% 0.85%

ESF 18 21 406 419 314 14 605 388 0.33% 0.22%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 62 1 63 2% Irregularities reported as fraudulent 2012-16 31 31 0%

*

Includes different programming periods

108

Romania - România

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 16 2 943 686 41 3 243 332 3.03%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 47 1 226 209 205 11 106 728 0.08% 0.71% EAFRD 61 12 781 475 399 30 262 398 1.12% 2.65% EAGF/EAFRD

TOTAL 108 14 007 684 604 41 369 126 0.52% 1.53% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 169 17 069 014 834 134 961 491 0.26% 2.05% EAFRD 209 117 617 072 2 411 522 130 345 2.12% 9.43% EAGF/EAFRD

TOTAL 378 134 686 086 3245 657 091 836 1.11% 5.42%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 103 8 111 7% Irregularities reported as fraudulent 2012-16 320 58 378 15%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 93 47 678 111 522 101 605 519 n/r n/r

CF 60 23 655 834 n/r n/r ERDF 86 47 015 925 294 66 546 471 n/r n/r

ESF 7 662 186 168 11 403 214 n/r n/r Programming Period 2007-13 -

cumulative 233 138 338 305 1 814 375 185 388 1.04% 2.82%

CF 3 21 431 333 291 144 271 328 0.44% 2.97% ERDF 161 106 782 177 959 194 002 217 1.75% 3.18%

ESF 69 10 124 795 564 36 911 842 0.43% 1.56%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 61 1 62 2% Irregularities reported as fraudulent 2012-16 226 2 228 1%

109

Slovenia - Slovenija

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 0 0 1 25 222 0.03%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0.00% 0.00% EAFRD 11 429 072 0.00% 0.33% EAGF/EAFRD

TOTAL 0 0 11 429 072 0.00% 0.16% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 9 427 838 10 404 306 0.06% 0.06% EAFRD 5 785 522 62 1 586 511 0.15% 0.30% EAGF/EAFRD

TOTAL 14 1 213 360 72 1 990 816 0.10% 0.16%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 13 1 14 7% Irregularities reported as fraudulent 2012-16 14 14 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 2 660 070 42 4 348 776 n/r n/r

CF 1 491 175 5 1 643 083 n/r n/r ERDF 1 168 895 23 2 276 680 n/r n/r

ESF 14 429 013 n/r n/r Programming Period 2007-13 -

cumulative 27 26 233 107 247 49 183 075 0.67% 1.26%

CF 1 491 175 23 10 797 731 0.04% 0.81% ERDF 20 25 611 773 152 34 530 631 1.39% 1.88%

ESF 6 130 159 72 3 854 713 0.02% 0.54%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 7 5 12 42% Irregularities reported as fraudulent 2012-16 17 6 23 26%

110

Slovakia - Slovensko

1.

Traditional Own Resources OWNRES /

Reporting Year 2015 Irregularities reported as fraudulent Irregularities not reported as fraudulent gross TOR

N EUR N EUR % Established and estimated 3 707 196 13 292 640 0.81%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 1 1 483 9 147 109 0.00% 0.03% EAFRD 25 2 084 021 0.00% 1.00% EAGF/EAFRD 1 21 183

TOTAL 1 1 483 35 2 252 313 0.00% 0.35% Irregularities reported 2012-2016

Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 1 1 483 29 680 385 0.00% 0.03% EAFRD 23 6 853 089 154 15 549 432 0.75% 1.69% EAGF/EAFRD 2 39 994

TOTAL 24 6 854 573 185 16 269 811 0.24% 0.57%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 4 1 5 20% Irregularities reported as fraudulent 2012-16 24 24 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 96 81 982 989 496 440 010 367 n/r n/r

CF 7 10 006 365 70 301 281 433 n/r n/r ERDF 67 60 579 925 291 119 792 572 n/r n/r

ESF 22 11 396 700 135 18 936 362 n/r n/r Programming Period 2007-13 -

cumulative 162 139 777 430 1 696 1 087 574 138 1.43% 11.10%

CF 13 14 482 445 212 549 694 667 0.42% 15.81% ERDF 98 104 174 864 965 478 237 779 2.11% 9.71%

ESF 51 21 120 122 519 59 641 692 1.52% 4.28%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 31 5 36 14% Irregularities reported as fraudulent 2012-16* 141 9 150 6%

*

Includes different programming periods

111

Finland – Suomi-Finland

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 6 119 457 34 2 000 001 1.27%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 0.00% 0.00% EAFRD 21 390 814 0.00% 0.09% EAGF/EAFRD

TOTAL 0 0 21 390 814 0.00% 0.04%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 18 618 135 0.00% 0.02% EAFRD 67 1 317 279 0.00% 0.09% EAGF/EAFRD

TOTAL 0 0 85 1 935 415 0.00% 0.05%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 0 0 #DIV/0!

Irregularities reported as fraudulent 2012-16 0 0 #DIV/0!

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 17 366 745 n/r n/r

ERDF 13 193 689 n/r n/r ESF 4 173 056 n/r n/r

Programming Period 2007-13 -

cumulative 1 179 375 73 2 649 237 0.01% 0.17%

ERDF 1 179 375 52 1 823 629 0.02% 0.20% ESF 21 825 609 0.00% 0.14%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 3 1 4 25% Irregularities reported as fraudulent 2012-16* 2 2 0%

*

Includes different programming periods

112

Sweden - Sverige

1.

Traditional Own Resources OWNRES /
Irregularities reported as fraudulent Irregularities not reported as fraudulent Reporting Year 2015 gross TOR

N EUR N EUR % Established and estimated 2 101 720 96 6 360 043 1.01%

2.

Natural Resources Irregularities reported in 2016
Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 1 0.00% 0.00% EAFRD 4 93 164 0.00% 0.04% EAGF/EAFRD

TOTAL 1 0 4 93 164 0.00% 0.01%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent

Fund FDR IDR

N EUR N EUR % %

EAGF 2 71 429 39 6 905 816 0.00% 0.20% EAFRD 4 436 273 103 29 714 251 0.04% 2.74% EAGF/EAFRD 1 534 806 TOTAL 6 507 702 143 37 154 873 0.01% 0.81%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 6 6 0% Irregularities reported as fraudulent 2012-16 6 6 0%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 0 0 5 212 081 n/r n/r

ERDF 4 188 447 n/r n/r ESF 1 23 634 n/r n/r

Programming Period 2007-13 -

cumulative 4 66 797 139 7 002 764 0.00% 0.45%

ERDF 2 29 027 92 5 027 432 0.00% 0.57% ESF 2 37 770 47 1 975 333 0.01% 0.30%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 3 3 0% Irregularities reported as fraudulent 2012-16 3 3 0%

*

Includes different programming periods

113

United Kingdom

1.

Traditional Own Resources
Irregularities reported as fraudulent Irregularities not reported as fraudulent OWNRES /

Reporting Year 2015 gross TOR N EUR N EUR %

Established and estimated 9 297 577 824 89 063 434 2.26%

2.

Natural Resources Irregularities reported in 2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent
Fund FDR IDR

N EUR N EUR % %

EAGF 10 113 997 0.00% 0.00% EAFRD 3 80 766 37 1 265 774 0.01% 0.15% EAGF/EAFRD

TOTAL 3 80 766 47 1 379 771 0.00% 0.03%

Irregularities reported 2012-2016 Irregularities reported as fraudulent Irregularities not reported as fraudulent FDR IDR Fund

N EUR N EUR % %

EAGF 4 377 449 197 4 054 505 0.00% 0.03% EAFRD 14 484 244 264 5 751 366 0.01% 0.16% EAGF/EAFRD

TOTAL 18 861 693 461 9 805 871 0.00% 0.05%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13 8 2 10 20% Irregularities reported as fraudulent 2012-16 14 4 18 22%

3.

Cohesion Policy Period / Fund Irregularities reported as fraudulent Irregularities not reported as FDR IDR
N EUR N EUR % %

Programming Period 2007-13 -

reporting year 2016 5 1 360 168 616 37 839 997 n/r n/r

ERDF 2 43 633 375 20 722 162 n/r n/r ESF 3 1 316 535 241 17 117 834 n/r n/r

Programming Period 2007-13 -

cumulative 46 11 399 414 3 175 201 562 333 0.13% 2.32%

ERDF 21 2 408 293 1 869 116 409 182 0.05% 2.44% ESF 25 8 991 121 1 306 85 153 151 0.23% 2.17%

Ratio of established fraud Suspected fraud

Established

fraud TOTAL REF

N N N %

Irregularities reported as fraudulent 2009-13* 40 8 48 17% Irregularities reported as fraudulent 2012-16* 36 1 37 3%

*

Includes different programming periods

114

ANNEXES

115

ANNEX 1

TOR: Total number of fraudulent and non-fraudulent cases w ith the related estimated and established amount 2012-2016

2012 2013 2014 2015 2016 MS

N EUR N EUR N EUR N EUR N EUR

BE 205 58,319,281 185 44,082,859 147 19,188,336 245 15,194,552 203 15,941,375 BG 15 371,562 31 1,177,920 28 9,197,704 27 745,534 13 488,717 CZ 74 2,888,811 57 3,059,992 83 11,731,780 72 3,489,078 82 5,438,665 DK 60 4,935,330 42 2,326,405 71 5,352,853 91 7,581,470 78 12,302,250 DE 1,736 112,980,721 1,823 124,135,259 1,779 99,962,695 2,132 140,894,022 1,582 72,316,067 EE 5 117,895 4 1,439,374 8 249,167 9 247,557 4 63,879 IE 33 3,312,477 23 1,996,250 28 4,313,814 32 3,340,624 31 5,007,046 EL 64 7,952,936 35 3,817,406 48 12,188,688 57 16,692,582 38 14,193,563 ES 455 41,214,398 388 30,816,723 412 50,410,273 318 25,021,989 284 44,553,730 FR 343 24,594,121 371 25,496,974 424 47,872,269 372 29,510,094 317 50,129,021 HR 8 155,090 10 817,386 14 1,198,497 17 931,788 IT 235 18,981,098 274 27,622,796 155 62,508,566 152 14,017,543 111 23,783,199 CY 4 167,393 15 1,057,620 11 162,729 4 127,072 7 332,446 LV 29 2,756,706 20 1,043,657 27 1,838,210 30 1,995,004 27 3,184,345 LT 37 750,695 46 2,603,287 49 2,892,165 47 1,325,639 26 1,321,879 LU 0 0 0 0 0 0 0 0 0 0 HU 38 989,589 45 1,243,659 86 2,192,431 27 1,058,841 16 4,215,216 MT 3 447,667 4 444,171 4 1,466,945 5 623,612 1 167,040 NL 531 83,171,927 433 39,843,332 394 43,199,356 458 109,674,374 523 147,318,448 AT 57 2,977,444 63 2,598,048 81 6,389,271 74 3,783,639 61 16,251,936 PL 137 4,264,639 107 8,252,060 213 10,891,733 129 5,161,022 166 7,185,823 PT 25 1,045,111 31 1,869,964 58 3,652,681 22 3,764,190 15 6,461,250 RO 62 30,964,134 80 4,424,446 75 7,466,661 93 8,427,875 57 6,187,018 SI 23 694,717 13 382,986 19 1,201,576 12 446,511 1 25,222 SK 20 1,562,308 8 1,744,504 35 1,753,766 9 592,183 16 999,836 FI 35 3,594,054 43 2,505,185 35 1,446,295 38 1,739,021 40 2,119,459 SE 58 6,319,584 63 10,841,880 71 4,197,000 76 3,189,706 98 6,461,763 UK 1,024 64,163,322 1,178 77,514,445 1,197 72,431,915 969 45,353,460 833 89,361,012

TOTAL 5,308 479,537,920 5,390 422,496,292 5,548 484,976,265 5,514 445,195,690 4,647 536,741,991

ANNEX 2

(The number of irregularities reported as fraudulent measures the results of efforts by

Member States to counter fraud and other illegal activities affecting EU financial interests; it should not be interpreted as the level of fraud in their territories)

TOR: Total number of fraudulent cases w ith the related estimated and established amount 2012-2016

2012 2013 2014 2015 2016 MS

N EUR N EUR N EUR N EUR N EUR

BE 38 49,475,291 38 35,280,252 26 13,175,503 43 7,501,342 36 9,261,635 BG 10 87,135 17 324,233 24 9,060,924 23 648,683 11 436,567 CZ 0 0 3 27,195 0 0 2 44,774 2 140,600 DK 8 776,806 4 714,341 2 698,402 6 4,012,918 5 8,581,374 DE 193 8,761,247 194 14,937,925 143 14,982,689 158 29,195,606 93 5,112,337 EE 0 0 0 0 2 108,304 5 134,899 1 0 IE 5 1,774,699 4 519,759 4 2,249,080 8 1,544,668 3 445,574 EL 63 7,930,165 32 3,768,336 35 9,953,507 34 13,390,124 30 5,594,313 ES 337 34,891,132 144 14,237,412 121 33,845,262 75 4,956,829 42 2,972,087 FR 79 8,035,738 110 7,109,328 134 33,861,348 100 15,353,630 83 28,785,027 HR 0 0 5 98,812 8 683,949 5 439,024 5 342,006 IT 92 9,541,015 138 12,311,232 51 54,371,321 40 5,689,688 22 6,548,191 CY 0 0 1 76,603 2 22,192 3 112,709 7 332,446 LV 9 842,780 12 535,709 20 987,566 18 1,616,073 12 661,068 LT 13 379,512 24 2,117,232 14 712,907 17 559,196 10 266,102 LU 0 0 0 0 0 0 0 0 0 0 HU 3 65,386 5 90,861 8 189,941 5 184,769 2 88,762 MT 2 280,627 4 444,171 3 1,391,777 1 18,961 1 167,040 NL 10 488,158 19 951,905 7 414,169 0 0 6 261,626 AT 10 656,607 13 252,298 23 3,627,369 9 875,184 14 5,716,261 PL 24 786,133 17 2,514,843 37 3,507,557 59 1,789,473 92 3,101,717 PT 1 133,128 1 108,890 4 454,899 4 508,718 0 0 RO 19 1,850,979 15 283,216 14 449,240 21 1,086,817 16 2,943,686 SI 5 381,597 5 155,419 13 1,067,985 3 139,295 0 0 SK 1 46,323 0 0 3 256,714 3 117,282 3 707,196 FI 11 483,321 5 349,402 3 74,840 6 412,415 6 119,457 SE 0 0 1 12,380 3 236,247 0 0 2 101,720 UK 26 3,493,747 24 2,486,202 44 2,311,565 42 982,331 9 297,577

TOTAL 959 131,161,524 835 99,707,957 748 188,695,258 690 91,315,407 513 82,984,368

ANNEX 3

TOR: Total number of non-fraudulent cases w ith the related estimated and established amount 2012-2016

2012 2013 2014 2015 2016 MS

N EUR N EUR N EUR N EUR N EUR

BE 167 8,843,990 147 8,802,607 121 6,012,833 202 7,693,210 167 6,679,740 BG 5 284,427 14 853,688 4 136,779 4 96,851 2 52,150 CZ 74 2,888,811 54 3,032,798 83 11,731,780 70 3,444,303 80 5,298,065 DK 52 4,158,524 38 1,612,065 69 4,654,451 85 3,568,553 73 3,720,877 DE 1,543 104,219,474 1,629 109,197,334 1,636 84,980,005 1,974 111,698,415 1,489 67,203,731 EE 5 117,895 4 1,439,374 6 140,863 4 112,658 3 63,879 IE 28 1,537,778 19 1,476,491 24 2,064,734 24 1,795,956 28 4,561,472 EL 1 22,771 3 49,070 13 2,235,181 23 3,302,458 8 8,599,250 ES 118 6,323,266 244 16,579,311 291 16,565,011 243 20,065,160 242 41,581,643 FR 264 16,558,383 261 18,387,646 290 14,010,921 272 14,156,465 234 21,343,994 HR 0 0 3 56,279 2 133,437 9 759,473 12 589,781 IT 143 9,440,083 136 15,311,564 104 8,137,245 112 8,327,855 89 17,235,008 CY 4 167,393 14 981,017 9 140,537 1 14,363 0 0 LV 20 1,913,927 8 507,947 7 850,644 12 378,930 15 2,523,277 LT 24 371,183 22 486,055 35 2,179,258 30 766,443 16 1,055,777 LU 0 0 0 0 0 0 0 0 0 0 HU 35 924,202 40 1,152,798 78 2,002,491 22 874,072 14 4,126,454 MT 1 167,040 0 0 1 75,168 4 604,651 0 0 NL 521 82,683,769 414 38,891,427 387 42,785,187 458 109,674,374 517 147,056,822 AT 47 2,320,837 50 2,345,750 58 2,761,902 65 2,908,455 47 10,535,675 PL 113 3,478,506 90 5,737,218 176 7,384,176 70 3,371,549 74 4,084,106 PT 24 911,983 30 1,761,074 54 3,197,782 18 3,255,472 15 6,461,250 RO 43 29,113,156 65 4,141,230 61 7,017,421 72 7,341,058 41 3,243,332 SI 18 313,120 8 227,567 6 133,591 9 307,216 1 25,222 SK 19 1,515,985 8 1,744,504 32 1,497,052 6 474,901 13 292,640 FI 24 3,110,733 38 2,155,783 32 1,371,455 32 1,326,606 34 2,000,001 SE 58 6,319,584 62 10,829,499 68 3,960,753 76 3,189,706 96 6,360,043 UK 998 60,669,575 1,154 75,028,243 1,153 70,120,349 927 44,371,129 824 89,063,434

TOTAL 4,349 348,376,396 4,555 322,788,335 4,800 296,281,007 4,824 353,880,283 4,134 453,757,623

ANNEX 4

TOR: Percentage of the financial impact of OWNRES cases to the collected and made avialable TOR (gross) in 2016 per Member State

All Fraudulent Non-fraudulent

Gross amount TOR OWNRES OWNRES

MS collected (A account) established and Percentage established and Percentage OWNRES estimated OWNRES/gross estimated OWNRES/gross established and

Percentage

amount TOR amount TOR estimated amount

OWNRES/gross TOR

EUR EUR % EUR % EUR % BE 2,588,497,872 15,941,375 0.62% 9,261,635 0.36% 6,679,740 0.26% BG 89,936,823 488,717 0.54% 436,567 0.49% 52,150 0.06% CZ 313,811,270 5,438,665 1.73% 140,600 0.04% 5,298,065 1.69% DK 420,313,639 12,302,250 2.93% 8,581,374 2.04% 3,720,877 0.89% DE 5,186,809,184 72,316,067 1.39% 5,112,337 0.10% 67,203,731 1.30% EE 34,143,556 63,879 0.19% 0 0.00% 63,879 0.19% IE 356,381,933 5,007,046 1.40% 445,574 0.13% 4,561,472 1.28% EL 197,979,939 14,193,563 7.17% 5,594,313 2.83% 8,599,250 4.34% ES 1,890,050,087 44,553,730 2.36% 2,972,087 0.16% 41,581,643 2.20% FR 2,045,650,729 50,129,021 2.45% 28,785,027 1.41% 21,343,994 1.04% HR 58,321,707 931,788 1.60% 342,006 0.59% 589,781 1.01% IT 2,235,484,905 23,783,199 1.06% 6,548,191 0.29% 17,235,008 0.77% CY 26,357,565 332,446 1.26% 332,446 1.26% 0.00% LV 43,351,192 3,184,345 7.35% 661,068 1.52% 2,523,277 5.82% LT 96,925,396 1,321,879 1.36% 266,102 0.27% 1,055,777 1.09% LU 24,430,243 - 0.00% 0 0.00% 0 0.00% HU 177,894,323 4,215,216 2.37% 88,762 0.05% 4,126,454 2.32% MT 15,067,694 167,040 1.11% 167,040 1.11% 0.00% NL 2,967,179,005 147,318,448 4.96% 261,626 0.01% 147,056,822 4.96% AT 267,522,009 16,251,936 6.07% 5,716,261 2.14% 10,535,675 3.94% PL 739,115,287 7,185,823 0.97% 3,101,717 0.42% 4,084,106 0.55% PT 173,005,805 6,461,250 3.73% 0.00% 6,461,250 3.73% RO 204,022,260 6,187,018 3.03% 2,943,686 1.44% 3,243,332 1.59% SI 82,223,513 25,222 0.03% 0.00% 25,222 0.03% SK 123,886,163 999,836 0.81% 707,196 0.57% 292,640 0.24% FI 166,430,872 2,119,459 1.27% 119,457 0.07% 2,000,001 1.20% SE 641,501,996 6,461,763 1.01% 101,720 0.02% 6,360,043 0.99% UK 3,951,352,805 89,361,012 2.26% 297,577 0.01% 89,063,434 2.25% Total 25,117,647,775 536,741,992 2.14% 82,984,369 0.33% 453,757,623 1.81%

ANNEX 5

TOR: Recovery rates (RR) per cut-off date

2015 2016

Established Recovered Recovered

MS amount amount RR

Established

amount amount RR

EUR EUR % EUR EUR % 1 2 3=2/1 1 2 3=2/1

BE 13,081,299 9,689,203 74% 13,307,195 8,789,067 66% BG 679,696 320,590 47% 317,821 63,108 20%

CZ 3,489,078 2,416,179 69% 5,438,665 4,773,439 88% DK 7,581,470 5,092,619 67% 12,302,250 2,545,462 21%

DE 140,826,077 111,274,465 79% 72,290,586 66,293,458 92% EE 247,557 156,460 63% 63,879 63,879 100%

IE 1,795,956 1,704,749 95% 4,561,472 2,912,051 64% EL 3,706,175 528,464 14% 8,951,578 20,387 0%

ES 23,115,147 18,819,357 81% 43,234,529 16,961,094 39% FR 28,435,091 17,756,649 62% 49,268,291 13,218,090 27%

HR 840,075 602,734 72% 918,343 325,185 35% IT 13,809,053 6,060,254 44% 23,465,049 2,723,357 12%

CY 127,072 14,439 11% 332,446 59,925 18% LV 1,995,004 230,086 12% 3,184,345 1,755,940 55%

LT 1,325,639 647,985 49% 1,321,879 615,147 47% LU 0 0 0% 0 0 0%

HU 1,058,841 988,936 93% 4,215,216 736,490 17% MT 623,612 479,241 77% 0 0 0%

NL 109,316,803 27,615,002 25% 147,131,802 28,474,143 19% AT 3,783,639 3,394,427 90% 16,251,936 10,741,388 66%

PL 5,144,972 1,609,834 31% 7,185,823 1,823,197 25% PT 3,290,243 531,707 16% 6,461,250 236,010 4%

RO 8,427,875 3,606,740 43% 6,187,018 2,125,746 34% SI 446,511 301,927 68% 25,222 25,222 100%

SK 592,183 494,642 84% 999,836 432,958 43% FI 1,739,021 1,634,962 94% 2,091,811 1,748,519 84%

SE 3,189,706 3,189,706 100% 6,360,043 6,183,339 97% UK 44,371,129 36,412,779 82% 89,081,202 31,721,398 36%

TOTAL 423,038,926 255,574,138 60% 524,949,485 205,368,000 39%

ANNEX 6

TOR: Estimated and established amount per customs procedure per Member State 2016

Fraudulent Non-fraudulent

MS Release for Customs Inw ard Customs Inw ard

free circualtion Transit w arehousing processing Other

Release for free

circualtion Transit w arehousing processing Other

BE 9,084,740 22,468 93,464 60,963 5,264,998 362,701 534,453 421,709 95,879 BG 196,881 239,685 39,966 12,184

CZ 140,600 5,222,631 75,434

DK 8,581,374 3,324,406 54,420 39,749 302,302

DE 4,680,087 303,999 128,251 54,959,370 383,702 4,737,796 6,475,707 647,155 EE 0 63,879

IE 445,574 2,776,591 1,738,070 46,811 EL 1,087,506 247,454 4,259,353 522,610 8,076,640

ES 2,972,087 18,493,078 23,806 16,840,583 6,224,176

FR 25,760,003 1,745,665 66,526 155,295 1,057,538 19,256,334 210,453 97,497 1,631,655 148,055 HR 57,634 284,373 589,781

IT 5,220,659 1,327,532 17,075,413 159,595

CY 332,446

LV 594,190 66,878 2,490,959 32,318

LT 19,346 85,594 161,162 1,009,075 42,048 4,654

HU 88,762 4,126,454

MT 167,040

NL 98,413 127,535 35,678 89,957,050 754,255 56,111,351 234,166

AT 5,716,261 3,104,231 66,649 7,315,604 49,192 PL 1,898,159 1,131,625 71,933 2,940,734 393,713 31,950 717,709 PT 6,446,873 14,377 RO 1,779,270 1,137,508 26,907 2,769,246 204,279 269,807 SI 25,222

SK 707,196 292,640

FI 74,579 44,878 1,401,291 556,793 41,918 SE 101,720 6,250,635 109,408 UK 297,577 79,463,284 140,375 14,659 9,421,037 24,080 Total 69,489,490 6,653,439 159,990 190,973 6,490,477 327,866,750 2,476,624 86,452,727 34,920,916 2,040,606

121

ANNEX 7

TOR: Method of detection by number of cases per Member State 2016 Fraudulent Non-fraudulent

MS N Post Inspections Inspections

All Clearance controls clearance by anti-fraud Tax audit Voluntary Other All Clearance

Postclearance

by anti-fraud Tax audit Voluntary controls services admission controls controls services admission

Other

BE 203 36 7 2 25 2 167 44 85 15 1 13 9 BG 13 11 2 9 2 2

CZ 82 2 1 1 80 5 51 5 19

DK 78 5 1 3 1 73 29 34 3 7 DE 1,582 93 19 8 52 9 5 1,489 151 682 6 302 316 32 EE 4 1 1 3 3

IE 31 3 3 28 3 5 3 11 3 3 EL 38 30 15 4 11 8 2 3 3

ES 284 42 12 1 14 13 2 242 83 45 16 66 27 5 FR 317 83 35 25 22 1 234 72 93 56 13

HR 17 5 2 3 12 2 10

IT 111 22 6 5 6 1 4 89 16 46 22 1 2 2 CY 7 7 2 5 0

LV 27 12 11 1 15 10 4 1

LT 26 10 5 1 4 16 2 14

LU 0 0 0

HU 16 2 2 14 1 13

MT 1 1 1 0

NL 523 6 1 5 517 89 364 64

AT 61 14 5 7 2 47 5 24 12 6 PL 166 92 13 73 6 74 16 42 15 1

PT 15 0 15 4 10 1

RO 57 16 15 1 41 1 40

SI 1 0 1 1

SK 16 3 2 1 13 2 6 4 1 FI 40 6 5 1 34 17 11 6

SE 98 2 2 96 96

UK 833 9 7 2 824 585 239

Total 4,647 513 145 149 156 23 2 38 4,134 539 2,230 191 385 724 65

122

ANNEX 8

TOR: Method of detection by established and estimated amounts per Member state 2016

Fraudulent Non-fraudulent

MS N Post Inspections Post Inspections

All Clearance controls clearance by anti-fraud Tax audit Voluntary clearance by anti-fraud Tax audit Voluntary Other

controls services admission

Other All Clearance controls

controls services admission

BE 15,941,375 9,261,635 171,986 500,135 8,512,410 77,104 6,679,740 2,991,865 1,800,021 990,210 18,798 711,121 167,725 BG 488,717 436,567 201,514 235,053 52,150 52,150

CZ 5,438,665 140,600 22,469 118,131 5,298,065 193,551 2,704,345 288,040 2,112,129

DK 12,302,250 8,581,374 404,928 213,850 7,962,596 3,720,877 1,176,350 2,336,798 75,046 132,682 DE 72,316,067 5,112,337 350,440 422,830 2,792,163 1,257,995 288,909 67,203,731 6,552,233 32,392,197 271,994 14,207,329 12,333,955 1,446,023 EE 63,879 0 - 63,879 63,879

IE 5,007,046 445,574 445,574 4,561,472 160,942 101,206 1,716,265 582,473 1,668,852 331,734 EL 14,193,563 5,594,313 4,013,131 582,771 998,410 8,599,250 8,091,783 170,106 337,361

ES 44,553,730 2,972,087 173,946 29,693 1,745,747 564,753 457,948 41,581,643 4,395,014 15,292,789 5,798,716 10,190,539 1,177,562 4,727,023 FR 50,129,021 28,785,027 2,879,431 7,666,063 18,220,089 19,444 21,343,994 4,505,898 4,273,983 12,091,264 472,849 HR 931,788 342,006 299,043 42,963 589,781 26,838 562,943

IT 23,783,199 6,548,191 1,547,862 657,720 359,499 3,751,397 231,713 17,235,008 1,302,660 12,945,155 2,932,046 11,843 42,881 423 CY 332,446 332,446 37,580 294,866 0

LV 3,184,345 661,068 639,392 21,676 2,523,277 2,209,883 294,006 19,387

LT 1,321,879 266,102 120,412 85,594 60,096 1,055,777 44,349 1,011,428

LU 0 0

HU 4,215,216 88,762 88,762 4,126,454 132,531 3,993,923

MT 167,040 167,040 167,040 0

NL 147,318,448 261,626 10,717 250,909 147,056,822 3,483,914 142,101,362 1,471,546

AT 16,251,936 5,716,261 703,548 1,075,946 3,936,767 10,535,675 342,574 2,627,477 7,476,170 89,454 PL 7,185,823 3,101,717 1,129,903 1,874,004 97,810 4,084,106 555,971 2,384,030 1,110,586 33,520 PT 6,461,250 0 6,461,250 5,369,167 1,080,852 11,231 RO 6,187,018 2,943,686 1,806,178 1,137,508 3,243,332 204,278 3,039,054

SI 25,222 0 25,222 25,222

SK 999,836 707,196 617,264 89,932 292,640 64,856 95,205 117,740 14,839 FI 2,119,459 119,457 107,717 11,740 2,000,001 1,149,330 486,873 363,798 SE 6,461,763 101,720 101,720 6,360,043 6,360,043

UK 89,361,012 297,577 250,729 46,848 89,063,434 75,993,107 13,070,327

Total 536,741,991 82,984,368 12,592,380 13,472,816 43,792,807 5,574,145 31,184 7,521,036 453,757,623 35,170,660 315,557,570 29,656,387 25,304,988 41,158,115 6,909,904

123

ANNEX 9

TOR: Recovery rates (RR) per Member State 2016

Fraudulent Non-fraudulent

MS Established Recovered

amount, EUR amount, EUR RR, %

Established Recovered

amount, EUR amount, EUR RR, %

BE 7,116,444 3,938,536 55% 6,190,751 4,850,531 78% BG 265,670 63,108 24% 52,150 - 0%

CZ 140,600 16,704 12% 5,298,065 4,756,734 90% DK 8,581,374 483,665 6% 3,720,877 2,061,797 55%

DE 5,086,855 3,291,818 65% 67,203,730 63,001,639 94% EE 0 0 0% 63,879 63,879 100%

IE 0 0 0% 4,561,472 2,912,051 64% EL 352,328 0 0% 8,599,250 20,387 0%

ES 1,652,886 905,030 55% 41,581,643 16,056,064 39% FR 27,924,297 3,772,047 14% 21,343,994 9,446,043 44%

HR 342,006 57,634 17% 576,336 267,551 46% IT 6,475,681 712,095 11% 16,989,368 2,011,262 12%

CY 332,446 59,925 18% 0 - #DIV/0! LV 661,068 0 0% 2,523,277 1,755,940 70%

LT 266,102 1,040 0% 1,055,777 614,107 58% LU 0 0 0% 0 - #DIV/0!

HU 88,762 88,762 100% 4,126,454 647,728 16% MT 0 0 0% 0 - #DIV/0!

NL 261,626 60,826 23% 146,870,176 28,413,317 19% AT 5,716,261 1,495,680 26% 10,535,675 9,245,708 88%

PL 3,101,717 426,925 14% 4,084,106 1,396,273 34% PT 0 0 0% 6,461,250 236,010 4%

RO 2,943,686 1,272,451 43% 3,243,332 853,295 26% SI 0 0 0% 25,222 25,222 100%

SK 707,196 140,318 20% 292,640 292,640 100% FI 91,809 21,606 24% 2,000,001 1,726,914 86%

SE 0 0 0% 6,360,043 6,183,339 97% UK 17,767 0 0% 89,063,434 31,721,398 36%

TOTAL 72,126,582 16,808,170 23% 452,822,903 188,559,830 42%

124

ANNEX 10

TOR: Examination of w rite-off cases in 2016

Acceptance Reference to Article Additional information Total cases* Cases assessed Total (amounts not

MS 17.2 rejected request (AI)

Not appropriate tw ice (AI) counted tw ice)

N EUR N EUR N EUR N EUR N N EUR

BE - - 2 541,478 8 1,264,221 1 81,861 11 1 1,887,560

DK - - - - 1 159,966 - - 1 - 159,966

DE 7 2,340,444 15 12,798,462 55 15,348,467 - 550 77 22 30,487,923

EL - - 12 4,157,369 2 546,730 - - 14 - 4,704,099

ES 2 539,188 5 890,338 14 4,975,767 - - 21 - 6,405,293

FR - - 1 66,522 2 263,738 - 64,990 3 1 395,249

IT - - 15 11,752,197 6 1,148,093 - - 21 2 12,900,290

LV 1 172,173 - - 1 430,951 - - 2 - 603,125

LT 2 285,229 - - 1 55,995 - - 3 - 341,224

HU - - 1 83,597 3 273,883 - - 4 - 357,480

AT 4 869,423 5 2,590,368 9 7,871,048 - 4,481 18 4 11,335,680

PL - - 2 1,682,297 1 85,772 - - 3 - 1,768,069

PT - - 27 9,552,222 1 123,541 - 1,566,118 28 - 11,241,882

SI - - 3 779,593 - - - 3 - 779,593

SK - - 1 82,766 1 64,387 - - 2 1 147,153

SE - - - - 1 114,455 - - 1 - 114,455

UK 1 66,548 3 1,427,608 3 2,380,554 - - 7 1 3,874,710 Total 17 4,273,004 92 46,404,816 109 35,107,570 1 1,718,001 219 32 87,503,751

* i ncl udi ng ca s es a s s es s ed twi ce

125

ANNEX 11

Legenda

EAFRD: European Agricultural Fund for Rural Development

EAGF: European Agricultural Guarantee Fund

GUID: European Agricultural Guarantee and Guidance Fund – Section Guidance

EFF: European Fisheries Fund

EMFF: European Maritime and Fisheries Fund

CF: Cohesion Fund

ERDF: European Regional and Development Fund

ESF: European Social Fund

FEAD: European Fund for Aid to the most Deprived

ISF: Internal Security Fund

HRD: pre-accession, Human Resources Development component

REGD: pre-accession, Regional Development component

IPARD: Instrument for Pre-Accession for Rural Development

PHARE: Pre-accession assistance programme

SAPARD: Special Accession Programme for Agriculture and Rural Development

CBC: pre-accession, Cross-Border Cooperation component

TAIB: Transition Assistance and Institution Building

Irregularities reported by Member States and Beneficiary Countries in 2016

The number of irregularities reported measures the results of Member States’ work to counter fraud and other illegal activities affecting the EU’s financial interests. Therefore, the figures should not be interpreted as indicating the level of fraud in the Countries’ territories.

FUNDS / COMPONENTS

Countries EAFRD EAGF EAGF/EAFRD GUID EFF EMFF CF ERDF ESF FEAD ISF HRD IPARD PHARE REGD SAPARD TAIB CBC TOTAL AT 8 1 3 18 15 45 BE 5 14 2 35 25 81 BG 32 2 66 20 38 86 20 3 35 302 CY 1 1 2 3 7 CZ 42 8 6 1 14 76 248 124 519 DE 45 22 6 194 99 1 367 DK 1 4 22 1 7 6 41 EE 23 2 2 31 4 62 ES 324 89 47 2 504 55 3 019 FI 9 12 1 13 4 39 FR 229 25 55 309 GR 4 117 5 28 428 113 695 HR 27 6 7 1 1 6 2 50 HU 144 37 1 2 32 476 68 760 IE 31 8 22 37 29 127 IT 53 280 421 3 98 60 915 LT 32 8 63 1 1 21 11 3 140 LV 27 4 56 131 3 221 MT 2 3 8 13 NL 19 25 36 14 7 101 PL 372 41 1 1 19 36 1 008 74 1 552 PT 463 1 18 13 87 63 645 RO 382 252 78 38 60 380 175 5 1 370 SE 3 2 4 1 10 SI 7 4 6 24 14 55 SK 24 10 2 14 78 361 157 646 UK 32 9 9 6 392 400 848 MK 2 2 4 RS 12 12 TR 15 30 3 6 1 55 TOTAL 1 318 731 1 853 7 270 1 475 6 634 1 594 3 1 16 38 3 3 5 8 50 13 010

127

Irregular amounts related to irregularities reported by Member States and Beneficiary

Countries in 2016

FUNDS / COMPONENTS

Countries EAFRD EAGF EAGF/EAFRD GUID EFF EMFF CF ERDF ESF FEAD ISF HRD IPARD PHARE REGD SAPARD TAIB CBC TOTAL

AT 232 777 13 000 39 393 778 042 1 365 328 2 428 540 BE 205 982 208 634 28 133 1 462 541 1 777 214 3 682 502 BG 4 305 157 327 118 11 188 815 409 302 22 539 265 10 530 545 1 030 605 101 351 118 631 50 550 787 CY 49 327 15 666 32 425 216 983 314 400 CZ 2 487 999 272 366 839 266 125 479 186 767 42 316 493 82 560 262 17 610 605 146 399 237 DE 2 417 475 634 109 225 437 22 253 811 8 228 517 178 812 33 938 161 DK 16 326 250 977 3 520 097 370 383 330 245 678 4 416 778 EE 2 448 124 451 103 450 427 4 323 359 247 281 7 920 295 ES 22 281 935 8 958 605 25 460 745 280 482 000 3 350 315 340 533 599 FI 172 325 218 489 130 707 193 689 173 056 888 266 FR 12 966 770 7 594 188 1 376 580 21 937 538 GR 56 025 2 033 767 3 073 118 3 173 474 169 710 829 11 013 943 189 061 157 HR 2 893 581 182 252 2 292 697 20 569 1 006 160 696 4 086 5 554 886 HU 4 874 184 2 681 572 32 809 54 302 8 354 209 85 642 143 13 488 699 115 127 918 IE 840 029 134 633 405 914 3 852 806 4 334 855 9 568 237 IT 4 858 671 30 238 418 29 873 375 2 980 876 45 460 693 1 709 299 115 121 333 LT 3 400 475 101 333 3 164 357 50 452 43 350 3 690 990 476 512 463 921 11 391 390 LV 1 607 296 260 302 21 230 882 29 269 506 359 810 52 727 796 MT 10 601 108 120 049 234 494 10 955 650 NL 357 209 967 117 1 056 327 386 731 2 317 805 5 085 190 PL 27 927 261 6 784 387 28 213 34 226 3 213 696 8 962 205 319 273 579 7 610 498 373 834 065 PT 24 760 716 494 203 588 215 907 078 15 769 181 2 509 875 45 029 269 RO 36 530 803 12 332 937 6 513 069 8 431 937 23 655 834 113 562 396 12 065 400 1 975 311 215 067 688 SE 50 032 43 131 188 447 23 634 305 245 SI 378 878 50 194 2 134 258 2 445 575 429 013 5 437 918 SK 1 549 405 148 593 555 798 683 092 311 931 392 184 984 167 30 333 062 530 185 509 UK 1 029 120 103 311 328 106 562 201 21 290 524 18 505 498 41 818 759 MK 6 500 0 6 500 RS 71 130 71 130 TR 1 266 733 6 315 453 0 346 771 7 928 958 Grand Total 98 583 109 55 436 781 119 097 786 3 685 236 28 022 013 130 707 481 733 036 1 408 534 505 141 055 125 463 921 178 812 1 267 739 6 482 649 101 351 0 1 975 311 346 771 193 848 2 347 288 699

128

origineel bericht: 'Commission Staff Working Document: Statistical eva...'

2. Behandeld document

25 jul
'17

Report from the Commission to the European Parliament and the Council: Protection of the European Union’s financial interests — Fight against fraud 2016 Annual Report
COVER NOTE

Secretary-General of the European Commission
11503/17

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Inhoudsopgave van deze pagina:

1.

Tekst

COVER NOTE

COMMISSION STAFF WORKING DOCUMENT

Statistical evaluation of irregularities reported for 2016

Own Resources, Natural Resources, Cohesion Policy, Pre-accession and Direct

expenditure

Protection of the European Union's financial interests - Fight against Fraud

Annual Report 2016

TABLE OF CONTENTS

European Structural and Investment Funds

REPORTING YEAR

REPORTING YEAR

Period 2007-13

Irregularities reported as fraudulent

Irregularities not reported as fraudulent

Ratio

The EU as a global player / Pre-Accession Policy

Belgium - Belgique/België

Established

Programming Period 2007-13 -

Established

Bulgaria - България

Established

Established

Czech Republic - Česká republika

Established

Programming Period 2007-13 -

Established

Denmark - Danmark

Established

Programming Period 2007-13 -

Established

Germany - Deutschland

Established

Programming Period 2007-13 -

Established

Estonia - Eesti

Established

Established

Ireland - Éire

Programming Period 2007-13 -

Established

Greece - Ελλάδα

Established

Established

Spain - España

Established

Established

France

Programming Period 2007-13 -

Established

Croatia - Hrvatska

Established

Programming Period 2007-13 -

Established

Italy - Italia

OWNRES /

Established

Programming Period 2007-13 -

Established

Cyprus - Κύπρος

Established

Established

Latvia - Latvija

Established

Established

Lithuania - Lietuva

Established

Established

Luxembourg

Established

Programming Period 2007-13 -

Established

Hungary - Magyarország

Established

Established

Malta