Monday, February 03, 2014

Corruption Costs European Union 120 Billion Euros a Year, Study Finds --- PARIS — Despite its relatively clean image, the European Union is losing at least 120 billion euros a year to corruption, and more than three-quarters of citizens believe that the problem is widespread in their countries, the bloc’s home affairs commissioner said Monday. -- The awarding of government business and political party financing are two areas dogged by shady dealings, Cecilia Malmstrom, the European commissioner for home affairs, told a news conference in Brussels. But she said that less obvious sectors also had problems, including health care, where some patients were forced to pay under the table to obtain necessary treatments. -- “Corruption undermines citizens’ confidence in democratic institutions and the rule of law, it hurts the European economy and deprives states of much-needed tax revenue,” Ms. Malmstrom said in introducing the report. -- She said there were “some indications that the crisis has boosted” corrupt practices at the local level, but that the commission did not have sufficient historical data to be certain. -- The commission study found that 56 percent of Europeans believe that corruption has increased in their countries in the last three years, an increase from 47 percent the last time such a study was conducted. And more than four out of five Europeans believe “too-close links between business and politics” are a major source of problems. -- The report calls on member states to increase accountability and transparency, particularly in public procurement, which accounts for about 20 percent of the European Union economy. The ownership of bidders for public contracts is rarely checked, the report said, and at least one country allows public contracts to be awarded to companies with anonymous shareholders. - More, DAVID JOLLY, NYTimes, at: http://www.nytimes.com/2014/02/04/business/international/European-Union-Report-on-Cost-of-Corruption.html?ref=world&_r=0

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