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 7, 2026 7:05 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 Christian Persecution
Sunday is the International Day of Prayer for the Persecuted Church, an annual day to put special emphasis on praying for the persecuted Church. In preparation for the observance, here are five facts you should know about Christian persecution around the globe: 1. Christians are the most persecuted religious group worldwide. An average of 180 Christians around the world are killed each month for their faith. 2. According to the U.S. Department of State, in more than 60 countries Christians...
Green America’s War on Restaurants
The network of leftist shareholder activism plex and wide-ranging. In the name of progressive causes, they panies to forfeit profitability, reduce investment returns, raise costs to customers and threaten both actual and potential jobs. It’s heartbreaking that religious shareholder groups not only willingly but passionately lend their support to secular causes promoted by US SIF: The Forum for Sustainable and Responsible Investment and Ceres. As I have noted previously, both organizations count religious shareholder groups among their respective membership rosters...
Radio Free Acton: Jay Nordlinger On The Children of Monsters
Jay Nordlinger speaks at the Acton Lecture Series This week on Radio Free Acton, National Review Senior Editor Jay Nordlinger joins the podcast to talk about his latest book,Children of Monsters: An Inquiry Into the Sons and Daughters of Dictators, a book I enjoyed enough to create the “Radio Free Acton 5 Star Award of Excellence” in order to have an award to bestow upon it. Nordlinger joined us here at Acton on October 29 to deliver an Acton Lecture...
Russell Kirk: Conservative, Humanist, Christian
Reading Bradley J. Birzer’s Russell Kirk, one might quibble with the subtitle: An American Conservative, but only because the term “conservative” has been worried like a rag doll in the maw of a Doberman puppy since Kirk mitted ink to paper on the conservative matter nearly 75 years ago. In the context of his times and eventual legacy, “conservative” plete sense since Kirk’s genius for connecting the dots of political philosophy and history exploded fully formed in 1953 with his...
China Ends One-Child Policy, Still Limiting Births
The BBC reported today that China is ending its one-child policy, providing the following overview: Introduced in 1979, the policy meant that many Chinese citizens – around a third, China claimed in 2007 – could not have a second child without incurring a fineIn rural areas, families were allowed to have two children if the first was a girlOther exceptions included ethnic minorities and – since 2013 – couples where at least one was a single childCampaigners say the policy...
Review: ‘No Fear Allowed’
Fear is inevitable. We can either let it stop us in our tracks or use it as “feedback” that we have to do something to move forward. That’s the message in Laura Herring’s new book No Fear Allowed: A Story of Guts, Perseverance, & Making an Impact (Morgan James Publishing, 2015). It’s an inspiring read for entrepreneurs, aspiring entrepreneurs, and “intrapreneurs” (employees with an entrepreneurial mindset) who know they’d like to make their mark in the world through business. Laura’s...
Shareholder Activists’ Scare Tactics
Global warming alarmists at the U.S. Department of Energy are seeking to harsh Halloween’s mellow this year. The DOE’s website this week features stories on costuming children as solar panels and methane emissions from rotting jack-o’-lanterns contributing to climate change. I’m not kidding. It seems there’s no limit to the scarifying lengths some will go in their predictions for climate catastrophe. For example, Ceres – an organization that “mobilizes a powerful network of panies and public interest groups to accelerate...
Front Porch Economy: The Power of Simplicity
The global economy is ever-growing in plexity and interconnectedness, leading to a range of positive and transformative effects. Yet even as this web of human relationships expands and intensifies, many of the latest innovations are prodding us back to the simple and personal. Whether we look to the various offspring of the “sharing economy” (e.g. Uber, Airbnb) or the range of bottom-up trading tools and crowdfunding platforms (Craigslist, Kickstarter), we see an eager appetite for simple and direct exchange. In...
Pope Francis and Free Economy in the Evangelii Gaudium
1. Introduction Francis’ Apostolic ExhortationEvangelii Gaudium[1](EG) is not a text on economy: it is a fine and substantial magisterial reflection about the topic of evangelization in our days, a most extensive subject whose analysis exceeds the humble purposes of this article, and must await a later occasion. However, Francis’ diagnosis of current circumstances holds some judgments on economic issues that have once again caused admiration and adhesion among free market critics, as well as concern or outright rejection among free...
Abraham Kuyper’s Public Theology Today
Yesterday was Abraham Kuyper’s birthday, and tomorrow is Reformation Day, so it seems appropriate to note once again in this space that we have launched a new 12 volume series of Kuyper’s works. The title of the series is Abraham Kuyper Collected Works in Public Theology, and the goal is to bring more of the primary source materials from this virtuoso theologian and statesman into circulation in the Anglophone world. Mel Flikkema and I are serving as general editors of...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved