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’
Mar 23, 2026 7:07 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
State Department releases 2017 Trafficking in Persons report
This week the State Department released the 2017 Trafficking in Persons Report, a congressionally mandated report that looks at the governments around the world (including the U.S.) and what they are doing bat trafficking in persons – modern slavery – through the lens of the 3P paradigm of prevention, protection, and prosecution. “Human trafficking is one of the most tragic human rights issues of our time. It splinters families, distorts global markets, undermines the rule of law, and spurs other...
Chief Justice John Roberts tells kids they need to eat a little dirt
There’s an old proverb that says, “We must eat a peck of dirt before we die.” What this means is that just as no one can escape eating a certain amount of dirt on their food, everyone must endure a number of unpleasant things in his or her lifetime. A peck is about two gallons, which would be a lot of dirt if you had to eat it all at once. But over a lifetime the few grains of soil...
Understanding the President’s Cabinet: Director of the CIA
Note: This is the post #23 in a weekly series of explanatory posts on the officials and agencies included in the President’s Cabinet. See the series introductionhere. Cabinet position:Director of the Central Intelligence Agency (D/CIA) (Note: This office became a cabinet-level position in February 2017.) Department: Central Intelligence Agency (CIA) Current Director:Mike Pompeo Department Mission:“Preempt threats and further U.S. national security objectives by collecting intelligence that matters, producing objective all-source analysis, conducting effective covert action as directed by the President,...
Radio Free Acton: Dylan Pahman on the foundations of the free society; Upstream on horror flicks
This week, we talk with Acton Research Fellow and Managing Editor of the Journal of Markets and Morality Dylan Pahman on his new book, Foundations of a Free and Virtuous Society. Then on Upstream with Bruce Edward Walker, we catch up on current horror films and television, with discussions on Alien: Covenant, Twin Peaks, and more. 00:00-02:04 Intro 02:05-14:39 Interview with Dylan Pahman 14:40-28:40 Upstream with Bruce Edward Walker 28:41-30:14 Outro ...
The West was built on faith, family, and free markets: Trump
During a remarkable speech this morning in Warsaw, President Trump did something that many believed impossible: He spoke clearly – eloquently, even – as he passionately defined and defended transatlantic values. Unlike so many of those who parrot the phrase, he began by describing what those values are. Standing at the site of the Warsaw Uprising, he said that Western civilization is embodied in faith, family, economic vitality, limited government, national sovereignty, intellectual freedom, and the pursuit of excellence. Those...
New Yorkers can fix the subway – if we let them
Just last week, two New York City subway cars derailed, causing dozens of injuries.The situation did not improve on the next day when repairs caused delays and confusing schedule changes. In response, New York Governor Andrew Cuomo declared a state of emergency and pledged $1 billion dollars to update the subway system. This is hardly the first problem the subway system has recently faced. “The power failures that have been going on,” Cuomo began in a recent address, “that have...
How ‘economic development’ funds harm economic development
Entrepreneurs face a daunting task anywhere in the world. But in the European Union, a unique obstacle blocks the path toincreasing production and furthering human flourishing. “EU funding is closing European businesses,” writes Marcin Rzegocki in a new essay forReligion & Liberty Transatlantic. The EU Structural Funds program redistributes funds from wealthier nations to poorer EU member states. The program isintended to spur economic growth and dynamism by giving entrepreneurs start-up money and expertise. Instead,the good intentions of the EU...
Unemployment as economic-spiritual indicator — June 2017 report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Opening the American city: Toward a new urban agenda
In the mid-20th-century, American cities suffered a wave of violent crime and poverty, due in part to shifts in the economy and public policy, as well as mass suburbanization. Yet in recent decades, those same cities are experiencing somewhat of a renewal. Crime rates are falling. Prosperity is on the rise. And new opportunities for growth, diversity, and innovation abound. “We are at the dawn of the urban century,” writes Michael Hendrix in a new report from AEI’s Values &...
What the pastor taught the professor about social justice
I’m a middle-aged professor who regularly does a presentation on social justice. As a dedicated believer in the power of free markets, I tend to focus on social justice as distributive justice. In other words, what are the arguments we have about how we slice the economic pie? What kind of a statement is being made by Occupy Wall Street when they posture class conflict as a battle between “the 1%” and “the 99%?” Those are the sorts of things...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved