Yellow card from the Commission in Greece – The cord is tightening for fraud with EU funds

In measures against her Greece and her Cyprus for their inability to properly apply the rules aimed at combating fraud in relation to EU funds, the European Commission is proceeding.
According to a statement published on Wednesday, the Commission announced its decision to issue reasoned opinions to both states, citing their failure to incorporate thethe Directive on the Protection of the Union’s Financial Interests (PIF) in national law.
It is noted that the rules, outlined in the PIF, seek to standardize the definitions, penalties and limitation periods for criminal offenses affecting the EU’s financial interests.
The said move by the Commission comes after the initial notifications sent to Greece in December 2021 and to Cyprus in February 2022.
Greece is accused of insufficient definition of “passive corruption”, while Cyprus is criticized for incomplete transposition regarding the definition and responsibility of legal entities, as well as for money laundering offences.
Both countries have been given two months to remedy the deficiencies identified, or the Commission may escalate the matter to the Court of Justice of the European Union.

Referral to the European Court of Justice

In addition to the above, our country is referred to the European Court of Justice for improper application of the rules based on the Late Payments Directive (Directive 2011/7/EU), which concerns late payments.
As pointed out, delays have an impact on businesses, reducing liquidity, hindering growth.
Under the current economic environment, businesses and especially SMEs rely on regular payments to operate and invest.
The Late Payment Directive obliges public authorities to pay their invoices within 30 days (or 60 days for public health authorities).
By meeting these payment deadlines, public authorities are setting a good example in combating bad payment culture.
The Commission is therefore referring Greece to the Court of Justice of the European Communities due to poor payment practices by Greek public hospitals to their suppliers in breach of the Late Payments Directive.
Greek hospitals do not respect the obligation to repay their debts immediately when suppliers agree to waive their rights to interest, contrary to established case law.

www.bankingnews.gr