Independent think tank Open Europe has published a report into what it believes are the top 100 examples of EU fraud and waste.

Open Europe is an independent think tank set up by UK business people to contribute new thinking to the debate about the direction of the European Union. In 2008, it published this report into what it believes are the top 100 examples of EU fraud and waste.

Below are its top four examples, followed by a link to the remainder of the report. The organisation believes that the “best way forward for the EU is an urgent programme of radical change driven by a consensus between member states” in order to overcome the challenges of “weak economic growth, rising global competition, insecurity and a looming demographic crisis.”

Speaking at the time, Mats Persson, Open Europe’s Research Director, said: “The EU funds are supposed to help create jobs and boost Europe’s competitiveness, but far too often money is being wasted on projects ranging from the inefficient to the downright bizarre. Surely, while facing recession, we can think of better ways to spend £100 billion a year.”

What do you think?

Fraud:

1.    The greedy dentist
A dentist in Cosenza used EU funds to buy a yellow Ferrari Testarossa, which sells at around €200,000 and a Formula One car, along with 55 other luxury cars, which he stored in warehouses. He received EU money by inventing a solar-panel business that never saw the light of day. The dentist was part of a larger fraud scheme involving a staggering €80 million, in which four business organisations siphoned off funds during a four-year period to buy luxury items such as cars, motorbikes and yachts1.

1 IlGiornale (19.08.06); Republica (23.02.06)

2.    Bibbidi-Bobbidi-Bubbico and the story of the bogus silk worms
Whilst President of the Basilicata region of Italy, Filippo Bubbico a Senator of the Social Democrat party, received €10,329 in EU funds for a silk worm breeding business which never existed. The politician, Bubbico, operated under the false name Bibbibo when he acted as president of the consortium “Seta Italia” (Silk Italy), and Bobbidi when he acted on behalf of “Seta Basilicata”. Both consortiums managed EU funds for the programme “Silkworm breeding development” but not one strand of silk was produced. As President of the region, Bubbico Basilicata was also distributing EU funds to various relatives. €300,000 ended up in the pockets of Rocco Luigi Bubbico, the Undersecretary’s father, and Antonio Clemente, his father-in-law2.

2 Corriere della sera (27.04.07)

Waste:

1.    The €1,280,000 school for TV glamour models
The EU has been giving funds for a programme to train aspiring TV showgirls in Naples, Calabria. To qualify, the girls need to show singing, dancing and reciting skills. Pietro Vittorelli, the Director of the project, said: “Up to a certain point… The essential and I would say only, entry criteria is beauty…I have to be able to see them before my eyes in a miniskirt and bra, ready to sweeten the dreams of Italians…” The 97 selected pupils were to go on to star in a specially created TV show, “Quizlotto”3.

3 IlGiornale (08.09.08); Corriere della sera (02.07.03)

2.    The Danish crocodile zoo
A 37 year old Dane – known locally as the Crocodile Man – received a grant from the EU’s Structural Funds to build a Crocodile Zoo in the Danish town of Norre Alslev. The town is home to only 10,000 people. Recently, the zoo sought to expand, as it felt that the crocodiles were lacking adequate space. However, following an unfortunate bankruptcy of one of the main investors, the £4.2 million (£750,000 from the EU) expansion plan had to be put on ice. “It’s hard to find money to preserve the crocodiles, because people hold prejudices against them. They’re not exactly cute like tiger cubs or panda bears”, the founder of the zoo said4.

4 http://www.ebst.dk/maal2proj/0/19/1043; http://www.dr.dk/Regioner/Sjaelland/Nyheder/Guldborgsund/2007/05/02/145314.htm (02.05.07);  Berlingske (29.04.07)

The rest of the report can be found here:

www.openeurope.org.uk/research/top100waste.pdf

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