Home
/
RELIGION & LIBERTY ONLINE
/
EU funds ‘the largest source of corruption in Central and Eastern Europe’
EU funds ‘the largest source of corruption in Central and Eastern Europe’
Apr 30, 2026 2:28 AM

A significant fact lies buried inside MEP Richard Sulik’s report on how subsidiarity could save the European Union: EU programs are reinforcing the very Communist-era behaviors they are intended to eradicate. Taxpayer-funded grants from the European Union are fueling cronyism and corruption, especially in its newest and most vulnerable member states.

EU funds inflict the worst corrupting of the political process in former Communist countries, Sulik, an MEP from Slovakia, writes:

Despite the good intention, European funds have e the largest source of corruption in Central and Eastern Europe, from the local level up to the political elite. Due to corruption, resources within the EU are reallocated through the funds in a very inefficient way.

His report highlights two continental programs, in particular: the European Structural and Investment Funds (ESIF) and the European Fund for Strategic Investments (EFSI).

The ESIF is supposed to drive and direct investment throughout Europe as part of its €351.8 billion “cohesion policy,” which turns most of Eastern Europe into net beneficiaries of EU largesse. But Sulik notes:

The problem with this idea is that every single euro invested by ESIF funds into the economy must first be taken out of the economy through taxes. The private sector is then left with fewer resources for its own investments. Decisions on investments from ESIF funds, including those going into the private sector, are made by bureaucrats in the ministries, which leads to distortions of the market environment, selective favouritism of panies, and considerable inefficiency in spending. (Emphasis added.)

In a similar vein:

The EFSI petition on the market, it cannot and does not create new investments and does not support the private sector as a whole. It merely diverts investments, which would have otherwise been created by the private sector, to areas chosen and approved by bureaucrats.

Thus, contract-seekers strive to sway government administratorsand, human nature being what it is, they do not always limit themselves to legal or ethical methods.

Sulik’s findings corroborate numerous other studies about the role EU funds play in enhancinggraft and bribery. For instance, the Corruption Research Centre Budapest (CRCB)foundin 2013 that “EU funds in CEE [Central and Eastern Europe] deteriorate the quality of government and increase corruption.” Transparency Internationaldiscoveredthat, while corruption is rare in Western Europe, bribery rates range as high as 42 percent in Moldova, 34 percent in Albania, 29 percent in Romania, and 24 percent in Lithuania.

As a result, taxpayers in all 27 EU member states shoulder a heavier tax burden than necessary.The Economistreportedthat corruption increased the cost of EU contracts by $5 billion a year. That further diverts productive capital – or family savings – away from useful (and self-directed) goals. It takes money from struggling families munities and places it into the pockets of the well-connected.

However, corruption’s greatest toll is extracted from the justice system. Susan Rose-Ackerman has written that, in a crony or corporatist system of government, “[o]nly those who already have a close trusting relationship with government officials and politicians may enter the bidding.” (Quoted inA Theory of Corruptionby Osvaldo Shenone and Samuel Gregg.)

Thus, EU funds have the opposite of a democratizing effect. They act as a magnet, enticing government figures to engage in bribery with vendors (or vice-versa) in exchange for contracts. Naturally, this violates numerousscriptural injunctionsagainst bribery, as well as classical notions of justice. (For more on the latter, seeShenone and Gregg.) Favoritism violates that Biblical precept that all human beings are endowed with equal dignity and thus deserve an impartial rendering of justice based on their actions.

Yet Sulik’s conclusion will be familiar to those from nations, like his own, that so recently labored under the yoke of Marxism. The greater the level of government intervention in society, the more the weak must curry favor with the powerful. In a Communist system, where the State directs all economic activity, corruption es pandemic.

The ground for bribery is never more fertile than when one’s survival, and that of one’s family, depends upon the sufferance of politicians, bureaucrats, and functionaries.

“Communism created structural incentives for engaging in corrupt behaviors, which became such a widespread fact of life that they became rooted in the culture in these societies,” according to a 2005articlein theInternational Review of Sociology. “The transitions toward democracy and market economies have not yet erased this culture of corruption.”

Far from eliminating this blight, the EU’s pursuit of an“ever-closer union”is making things worse.

Sableman. CC BY 2.0.)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Verse of the Day
  Commentary on Today's Verse   Complete Concise   Chapter Contents   Exhortations to meekness, gentleness, and humility. (1-5) To kindness towards all men, especially believers. (6-11) The Galatians guarded against the judaizing teachers. (12-15) A solemn blessing. (16-18)   Commentary on Galatians 6:1-5   (Read Galatians 6:1-5)   We are to bear one another's burdens. So we shall fulfil the law of Christ. This obliges to...
Verse of the Day
  Philippians 2:14-16 In-Context   12 Therefore, my dear friends, as you have always obeyed-not only in my presence, but now much more in my absence-continue to work out your salvation with fear and trembling,   13 for it is God who works in you to will and to act in order to fulfill his good purpose.   14 Do everything without grumbling or...
Verse of the Day
  Commentary on Today's Verse   Commentary on Philippians 4:10-19   (Read Philippians 4:10-19)   It is a good work to succour and help a good minister in trouble. The nature of true Christian sympathy, is not only to feel concern for our friends in their troubles, but to do what we can to help them. The apostle was often in bonds, imprisonments, and...
Verse of the Day
  Commentary on Today's Verse   Commentary on Psalm 27:7-14   (Read Psalm 27:7-14)   Wherever the believer is, he can find a way to the throne of grace by prayer. God calls us by his Spirit, by his word, by his worship, and by special providences, merciful and afflicting. When we are foolishly making court to lying vanities, God is, in love to...
Verse of the Day
  Romans 3:21-24 In-Context   19 Now we know that whatever the law says, it says to those who are under the law, so that every mouth may be silenced and the whole world held accountable to God.   20 Therefore no one will be declared righteous in God's sight by the works of the law; rather, through the law we become conscious...
Verse of the Day
  Commentary on Today's Verse   Commentary on Psalm 91:1-8   (Read Psalm 91:1-8)   He that by faith chooses God for his protector, shall find all in him that he needs or can desire. And those who have found the comfort of making the Lord their refuge, cannot but desire that others may do so. The spiritual life is protected by Divine grace...
Verse of the Day
  1 Timothy 6:11 In-Context   9 Those who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge people into ruin and destruction.   10 For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many...
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 11:18   (Read Proverbs 11:18)   He that makes it his business to do good, shall have a reward, as sure to him as eternal truth can make it.   Proverbs 11:18 In-Context   16 A kindhearted woman gains honor, but ruthless men gain only wealth.   17 Those who are kind benefit themselves, but the cruel bring...
Verse of the Day
  Commentary on Today's Verse   Chapter Contents   This is a hymn of praise suited to the times of the Messiah.   The song of praise in this chapter is suitable for the return of the outcasts of Israel from their long captivity, but it is especially suitable to the case of a sinner, when he first finds peace and joy in believing;...
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 31:10-31   (Read Proverbs 31:10-31)   This is the description of a virtuous woman of those days, but the general outlines equally suit every age and nation. She is very careful to recommend herself to her husband's esteem and affection, to know his mind, and is willing that he rule over her. 1. She can...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved