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ClujManifest 2016 - Numarul 14

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18<br />

I N T E R N A I O N A L<br />

Apare săptămânal, Miercuri<br />

Pre ‐ 1 leu<br />

THE TRUE ECONOMIC<br />

COST OF CORRUPTION<br />

IN EUROPE: UP TO €990<br />

BILLION ANNUALLY<br />

Pentru a înelege adevăratul cost economic al corupiei<br />

din Europa, Comisia europeană a comandat RAND<br />

Europe o analiză economică asupra impactului generat<br />

de corupie în statele UE. Rand Europe este un ONG,<br />

institut de cercetare a cărui misiune este de peste 20<br />

de ani a ajuta la implementarea politicilor și<br />

a mecanismelor de luare a deciziilor<br />

Pentru a înelege adevăratul cost economic<br />

al corupiei din Europa,<br />

Comisia europeană a comandat<br />

RAND Europe o analiză economică<br />

asupra impactului generat de corupie<br />

în statele UE. Rand Europe este un<br />

ONG, institut de cercetare a cărui misiune<br />

este de peste 20 de ani a ajuta la<br />

implementarea politicilor și a mecanismelor<br />

de luare a deciziilor prin<br />

analiză și cercetare.<br />

Iată un text referitor la această analiză<br />

a celor de la RAND Europe.<br />

The True Economic Cost of Corruption<br />

in Europe: Up to €990 Billion Annually<br />

by Marco Hafner and Jirka Taylor<br />

To fully understand the true economic<br />

costs of corruption within the European<br />

Union, the European Parliament<br />

commissioned RAND Europe to conduct<br />

an econometric analysis to estimate<br />

the potential harm of corruption<br />

on the EU and its member states.<br />

Our analysis resulted in a new estimate<br />

of up to €990 billion in GDP<br />

terms being lost annually, demonstrating<br />

the significant economic impact<br />

of corruption on the EU and its<br />

member states. Thatʹs more than eight<br />

times existing estimates.<br />

Prior to our ʹCost of non‐Europe Corruptionʹ<br />

study, the best estimates on<br />

the cost of corruption within the EU<br />

was at least €120 billion, which was<br />

provided by the European Commission<br />

in 20<strong>14</strong>. At the time, the former<br />

EU Home Affairs Commissioner Cecilia<br />

Malmström described the scale of<br />

corruption as “breathtaking” and<br />

even stated that the true cost was<br />

prin analiză și cercetare.<br />

“probably much higher” than €120<br />

billion.<br />

Our study also found that there are<br />

measures that can be put in place to<br />

claw back the financial losses happening<br />

each year, including monitoring of<br />

more member states, establishing a<br />

new office to assist in investigations,<br />

and implementing an EU‐wide procurement<br />

system. Together, these<br />

steps could retrieve up to €70 billion<br />

in losses annually.<br />

Corruption comes in many forms,<br />

from paying and receiving bribes, to<br />

exerting influence to provide privileged<br />

access to public services, goods<br />

or contracts. There are even examples<br />

of corruption during procurement,<br />

with contracts wrien to suit only one<br />

bidder or tenders not giving organisations<br />

enough time to respond. It is<br />

well known that corruption is associated<br />

with many societal disadvantages,<br />

from national governments<br />

having weaker rule of law to an increase<br />

in organised crime.<br />

Corruption across Europe appears to<br />

be a bigger problem than previously<br />

thought.<br />

Our new estimates considered both<br />

the indirect effects of corruption, such<br />

as disincentives of firms to invest due<br />

to corruption in EU member states,<br />

and the direct effects of corruption,<br />

such as money lost on tax revenues<br />

and public procurement.<br />

When looking at averages of three internationally<br />

recognised corruption<br />

indices, there were variations in levels<br />

of corruption across the 28 EU member<br />

states, with room for improvement<br />

everywhere, but especially in<br />

member states in Southern and Eastern<br />

Europe. A range of policy measures<br />

will be required to address this<br />

EU‐wide corruption and help to retrieve<br />

some of the money lost each<br />

year.<br />

One of these measures is applying the<br />

updated Cooperation and Verification<br />

Mechanism (CVM), which was applied<br />

to Bulgaria and Romania before<br />

they joined the EU in 2007, to other EU<br />

member states. Under CVM, both<br />

countries are subject to regular<br />

progress monitoring according to<br />

agreed benchmarks across a number<br />

of policy areas, with a particular focus<br />

on the fight against corruption. Failing<br />

to act in these policy areas can lead to<br />

a loss of privileges associated with EU<br />

membership.<br />

By contrast, the mechanism was not<br />

applied to other new member states<br />

that had joined the EU previously,<br />

such as Croatia, Latvia, Lithuania, Estonia,<br />

Slovakia, Czech Republic, Hungary<br />

and Poland. These member states<br />

were all found to have higher than average<br />

corruption levels. Seing aside<br />

practical and political considerations<br />

about its feasibility, our study showed<br />

that by applying a similar regime to<br />

additional member states, the EU<br />

could reduce corruption costs by up to<br />

€70 billion annually.<br />

Another option to help reduce the potential<br />

costs of corruption is the establishment<br />

of the European Public<br />

Prosecutorsʹ Office (EPPO). Its aim<br />

would be to help tackle corruption affecting<br />

the EUʹs financial interests, especially<br />

in areas where action by<br />

member states themselves may not be<br />

very effective. Our study showed that<br />

the establishment of the EPPO could<br />

help reduce corruption costs by €200<br />

million annually.<br />

The final measure focuses specifically<br />

on corruption involving public procurement<br />

since it is estimated to cost<br />

the EU up to €5 billion a year. To address<br />

this issue, the EU has recently<br />

adopted a set of regulations seing<br />

new rules for public procurement in<br />

Europe. The implementation of a<br />

transparent EU‐wide procurement<br />

system across all the member states<br />

could reduce corruption costs by<br />

nearly a fifth, up to €920 million annually.<br />

It would be fair to say that corruption<br />

across Europe appears to be a bigger<br />

problem than previously thought.<br />

Looking beyond the economics, tackling<br />

corruption also leads to many societal<br />

benefits: lower levels of<br />

organised crime, stronger rule of law<br />

and, as a result, more trust in public<br />

institutions.<br />

To have a properly functioning EU<br />

and member states that adhere to its<br />

values, the high levels of corruption<br />

urgently need to be addressed.<br />

_________________________________<br />

_______<br />

Marco Hafner is a research leader and<br />

senior economist at RAND Europe.<br />

Jirka Taylor is an analyst at RAND Europe.<br />

This commentary originally appeared<br />

on E!Sharp on March 22, <strong>2016</strong>.

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