Europski ured za borbu protiv prijevara

Annual report on the protection of the EU’s financial interests

Annual report on the protection of the EU’s financial interests

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Under Article 325 of the Treaty on the Functioning of the European Union (TFEU) the Commission is required to produce an Annual Report on the Protection of the EU’s Financial Interests (the so-called "PIF-Report"). The Report is an important policy tool that presents measures taken at EU and member state level to counter fraud affecting EU funds.

What is the purpose of the PIF-Report?

Each year, the Commission, in cooperation with the EU member states submits a report to the European Parliament and the Council a report. The report presents the measures taken to protect the EU budget, and to counter fraud and any other illegal activities affecting the financial interests of the EU. EU countries are obliged by law to report all irregularities – both fraudulent and non-fraudulent – to the European Commission, which then compiles the information in this annual report.

The report:

  • provides an in-depth analysis of the approaches, procedures and tools used by EU Member States in their fight against fraud
  • details the level of fraud both on the revenue and the expenditure side of the EU budget
  • helps to assess which areas are most at risk, thereby helping to better target action at both EU and national level
  • follows on the previous year’s recommendations
  • is part of the Commission's policy of transparency for financial management.

How does the European Commission compile this annual report?

This report is compiled mainly using data and information submitted by the EU Member States, given that they are on the frontline of managing and controlling 74% of EU expenditure and they are collecting the Traditional Own Resources (customs duties). Information available at Commission level is also used.

You can consult the PIF Reports here.