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 10, 2026 6:36 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
Dory Rowing in the Canyon: Where Work and Wonder Meet
One day, while riding down the Colorado River, Amber Shannon suddenly realized her vocation. “I really wanted to row little wooden boats down big rapids with big canyon walls,” she says. “That was the life dream.” Although it may sound impractical to some, tour guide John Shocklee calls being a boatman in the Grand Canyon “the most coveted job in the world.” “It’s definitely easier to get a PhD than it is to get a dory here in the Grand...
Rev. Sirico: Environmental Encyclical May Fall Prey To Politics
Speaking on The Steve Malzberg Show on Newsmax TV on Friday, Rev. Robert Sirico addressed questions regarding the new papal encyclical, Laudato Si’, which reportedly will be released this week. mented on Pope Francis’ tendency to speak “off the cuff,” saying this may be exploited by the press or others who simply want to push their own agenda regarding the environment and climate change. Sirico also expressed trepidation regarding the pontiff’s plan to address a joint session of Congress during...
Corporate God-Flies Fail Miserably on 2015 Proxy Resolutions
The Manhattan Institute’s latest Proxy Monitor hit laptops this week, revealing the nature and source of the 2015 proxy resolutions. It seems the corporate “God-flies” at religious shareholder organizations such as As You Sow and the Interfaith Center on Corporate Responsibility account for 29 percent of all shareholder resolutions submitted to the nation’s top 250 publically panies. This percentage is second only to the corporate gadflies – identified by the report’s author, James R. Copland, as “individuals and their family...
Dutch Resistance Member Diet Eman Meets King and Queen of the Netherlands
King Willem-Alexander and Queen Maxima of the Netherlands visited Frederik Meijer Gardens and the Medical Mile in Grand Rapids on June 2, marking the third time in history that Dutch royalty stepped foot in Michigan. The occasion, which served as an opportunity for Michigan and the Netherlands to express gratitude for their strong economic ties and trade relations, and to continue this cooperation, also proved special in another way. As part of the day’s festivities, the King and Queen were...
Court to U.S. Army: You Allow Vampire Mickey Mouse Tattoos, Why Not a Turban?
If the Army can make an exception to its regulations for a vampire Mickey Mouse tattoo, why can it not do the same for a turban? That was part of a federal court’s thinking in a ruling ordering the Army to allow a Sikh college student to join his college’s NROTC unit without having to shave his beard, cut his hair, or remove his turban. Iknoor Singh, a junior at Hofstra University and an observant Sikh, has “long dreamed of...
Crank Up The Air Conditioning: It’s Good For The Economy
If you are of a “certain age,” you grew up without air conditioning. As unthinkable as it is now, we made due with window screens and fans. And we survived. Honestly, it was pretty miserable sometimes. Especially if your dad happened to have a vinyl recliner that you sat on during hot, humid August days watching Brady Bunch re-runs. Peeling yourself off one of those is an experience that will scar you forever. Air conditioning is more than just a...
5 Facts About the Magna Carta
Today marks the 800th anniversary of the sealing of the Magna Carta. Here are five facts about this English documentwhich helped to establish the rule of law: 1. Magna Carta (Latin for “the Great Charter”), also called Magna Carta Libertatum (Latin for “the Great Charter of the Liberties”), was a peace treaty between King John of England and rebel barons that was sealed on June 15, 1215. Magna Carta established for the first time the principle that everybody, including the...
Explainer: What You Should Know About the OPM Hack
What is the “OPM hack”? The “OPM hack” refers to a massive data breach in which hackers, believed to be based in China, acquired personnel records of federal employees from the Office of Personnel Management (OPM). What is the OPM? The OPM (Office of Personnel Management) serves as the human resource department for the federal government. Among other duties the agency conducts background investigations for prospective employees, issues security clearances, piles records of all federal government employees. How many records...
Why Family Is Central To A Healthy Society
In this short video, Allan Carlson of the Howard Center for Family, Religion & Society describes the importance and centrality of the family to a health society. Families that work together in some endeavor tend to be healthier, are able to care for themselves and thus e the foundation of a sound economy and society. ...
Are We Setting Up For A Cultural Implosion?
What does it meant to be happy, and is our culture getting that all wrong? Fr. Robert Spitzer, SJ, thinks that may be the case. A prolific author and speaker, Spitzer explores what happiness means in his latest book, Finding True Happiness: Satisfying Our Restless Hearts. First, we seek happiness in external material possessions. This can range from acquiring that sought-after gadget or enjoying a fabulous meal. There’s nothing wrong with this type of happiness, but it’s fleeting. The second...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved