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 5:38 PM

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
Charles Carroll and Independence Day
This weekend marks another celebration of America’s birthday of Independence from our colonial rulers. It is typical to praise the founding fathers for what they did in 1776 and the subsequent years to lay down the foundation for this country. Very often, when people talk about the founding fathers they are referring to Washington, Franklin, Adams, Jefferson, or one of the many currently well-known statesmen of the Revolution. This year though, when people sing the praises of the Founding Fathers,...
Beware of Self-Willed Religion
Last week, I wrote about the danger of self-chosen sacrifice, channeling evangelist Oswald Chambers, who warns us to “never decide the place of your own martyrdom.” “Always guard against self-chosen service for God,” he continues. “Self-sacrifice may be a disease that impairs your service.” As an example of how the process ought to go, Chambers looks to the story of Abraham and Isaac. God demanded something quite peculiar —the sacrifice of Abraham’s son —and Abraham simply obeyed.“God chose the test...
Religious Liberty, Charles Carroll, & Hobby Lobby
Bruce Edward Walker, recently wrote a column for the Morning Sun that relates the recent Supreme Court decision on Hobby Lobby with America’s Founding and Samuel Gregg’s latest, Tea Party Catholic. The piece begins by discussing the Declaration of Independence and one of its signers, Charles Carroll, “a successful Maryland businessmen,” Walker says, “who was also Roman Catholic and thus denied voting rights and the freedom to hold government office under British colonial rule. In other words, Carroll had a...
‘Theological Study’ Masks Progressive Roots
One should always worry when dollar signs replace the letter “S” in discussions related to campaign finance and theology. For example, the title of Auburn Theological Seminary’s inaugural entry in its Applied Theology Series, “Lo$ing Faith in Our Democracy,” leaves little doubt there’s an unhidden agenda lurking within. Auburn Theological is a seminary for continuing education for clergy. It doesn’t grant degrees, but seems to fancy itself a think tank of sorts. If the “scare dollar sign” in its Applied...
The Patriot’s Asterisk
We Americans have a peculiar relationship to the term “patriot.” To question someone’s patriotism is considered an insult, while to praise their patriotism is pliment. Yet strangely, the only people who refer to pletely without irony or qualification, as patriots are old veterans, old conservatives, and certainpro athletes in New England. Of course, people who do not fit into those three categories sometimes self-identify with that label. But when they do it’s almost always panied by an asterisk, denoting—whether expressed...
What Christians Should Know About Comparative Advantage
Note: This is the latest entry in the Acton blog series, “What Christians Should Know About Economics.” For other entries inthe series seethis post. The Term:Comparative advantage What it Means:The ability of an individual or group of individual (e.g., a business firm) to produce goods or services at a lower opportunity cost than other individuals or groups. Why it Matters: There is a story of the distinguished British biologist, J.B.S. Haldane, who found himself in pany of a group of...
The Declaration of Independence reminds us to put tyrants on notice
Perhaps the most enduring legacy of the Declaration of Independence is that it sought to overturn the long abuses and powers of tyrants. It revealed the truth of self-government and that power is inherent in the people. In the second introduction of the document, Jefferson declared: …That whenever any Form of Government es destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such...
When Religious Liberty Disappears, Who Remains Behind?
While you’re munching on hot dogs, chasing the kids around the yard with a Super Soaker and generally enjoying a 3-day weekend benefit of the Founding Fathers, remind yourself (at least once) what a gift religious liberty is. Come Friday night, Saturday or Sunday morning, you can (or not!) go to the mosque, synagogue or church of your choice and peacefully enjoy the service. You can sit and be a vaguely interested participant or you can go full-throttle with song...
Radio Free Acton: Walter E. Williams, Frederic Bastiat, and American Political Culture
It’s time again for another edition of Radio Free Acton, and we think this one is well worth the listen. Today, Paul Edwards talks with scholar, author, economist, occasional guest host of the nation’s largest talk radio showand all-around great guyDr. Walter E. Williams about Frederic Bastiat’s classic The Law and the insights into modern America by reading that classic defense of limited government, authentic justice and human freedom. Williams wrote the introduction for the latest edition of Bastiat’s work,...
Can We Separate Church And State? Or Church From Anything?
Thomas Jefferson believed that the practice of one’s faith should not be impinged upon by one’s government. He wrote of this in a letter or address to the Danbury Baptist Association: Believing with you that religion is a matter which lies solely between Man and his God, that he owes account to none other for his faith or his worship, that the legitimate powers of government reach actions only, and not opinions,” he wrote, “I contemplate with sovereign reverence that...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved