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 19, 2026 1:06 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
5 Facts About America’s Refugee Policy
Recently a number of religious groups—including some connected to the World Council of Churches and the U.S. Conference of Catholic Bishops—have urged the U.S. government to resettle 100,000 Syrian refugees ing fiscal year, in addition to increasing the total U.S. mitment to 100,000 refugees from other parts of the world. Although President Obama has not agreed to increase the amount nearly that much, last week he ordered his administration to increase the number of Syrian refugees admitted to the United...
Video: Jonathan Witt On Tolkien’s Vision Of Freedom
As we prepare to kick off the fall portion of the 2015 Acton Lecture Series tomorrow (featuring Don Devine speaking about how America can find its way back to a harmony between freedom and tradition), we take a look back at thefinal lecture of the spring series, which was delivered on May 21 by Jonathan Witt, who aside from being aformer English professor, a Research and Media Fellow at the Acton Institute, and Managing Editor of The Stream, is also...
Samuel Gregg: Australia’s Corrosive Political Culture And The Ousting Of Tony Abbott
In today’s American Spectator, Acton’s director of research Samuel Gregg discusses the ousting of former Australian prime minister Tony Abbott and what that means for the Australian economy and beyond. Gregg points out that the Australian economy “is on the brink of substantial economic regression.” What’s especially worrying is the across-the-board decline in Australia’s economic productivity: something long masked by the resources boom but now more visible than ever. The basic problem, however, that lies at the root of what...
The Bright Side of Sharia Law
Why aren’t church leaders who are so quick to condemn capitalism, asks Rev. Jerry J. Pokorsky in this week’s Acton Commentary, decrying Big Government bureaucracy? The warnings of recent papal teachings on questions of social justice rarely – if ever – identify the dangers of a highly bureaucratized central government. Apparently most of the sinful and corrosive “love for es from private sector capitalists, not government public sector agencies. Certainly corporate capitalistic greed can and does have serious economic consequences....
Is Free Market Capitalism Moral?
Is free market capitalism moral or immoral? If it’s based on greed and selfishness, should it be rejected for an alternative economic system? And if capitalism is moral, what makes it so? Walter Williams, a economist at George Mason University, answers these questions and explains why the free market is morally superior to any other approaches to organizing economic behavior. ...
Entrepreneurship and Interdisciplinary Scholarship
Israel M. Kirzner While reading economist (and rabbi) Israel M. Kirzner’s Competition & Entrepreneurship (1973), it occurred to me that his description of what the “pure entrepreneur” does could also be applied to what a good interdisciplinary scholar, such as someone who studies faith and economics, does (or at least aspires to do). In our world of imperfect knowledge, Kirzner writes, there are likely to exist, at any given time, a multitude of opportunities that have not yet been taken...
Admiring Pope Francis Doesn’t Prohibit Disagreement
Anyone not touched by Pope Francis’ appearance on ABC television earlier this month may want to have their pulse checked for signs of a heart. Quite frankly, he knocked it out of the park in this writer’s humble opinion. Whether speaking to the plight of immigrant children, obviously enjoying a young girl’s vocal rendition of a hymn, or offering encouragement to a single mother of two, Francis was in his element. As I marveled at the Pope on primetime, national...
The New Socialists and the Social Ownership of Money
After getting home from work you get a statement in the mail from the local government saying you owe $20,000 for college tuition. You’re surprised to receive the billsince (a) you never went to college yourself and (b) your own children are still in preschool. Upon reading the fine print you discover the expected payment is not to cover any costs you’ve incurred but to pay for the tuition of college students in your neighborhood. Outraged, you turn to your...
5 Facts About the U.S. Constitution
Constitution Day is celebrated in America every year on September 17, the anniversary of the day the framers signed the document. Here are five facts you should know about the U.S. Constitution. 1. The Constitution contains 4,543 words, including the signatures and has four sheets, 28-3/4 inches by 23-5/8 inches each. It contains 7,591 words including the 27 amendments. It is the oldest and shortest written Constitution of any major government in the world. 2. Thomas Jefferson did not sign...
How Religious Institutions Help Prevent Violent Conflict
What isthe main source of violent conflict in the world? If you judged solely by media reports you might assume that religion would be at the top of the list. Today, for example, there is news that Islamic State—a terrorist group that wants to create an Islamic caliphate—set off two car bombs in Syria. But as Johannes Vüllers, Alexander De Juan and Jan H. Pierskalla explain, parison of religious with other forms of violence shows that the religious violenceis not...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved